Advansix Inc. · NYSE:ASIX
Advansix — Q1 2021 Earnings Presentation
16 slides from Advansix's earnings presentation, Apr 30, 2021
Slide 1: 1Q 2021 Earnings Presentation
1Q 2021 Earnings Presentation April 30, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or
Slide 3: Overview
Overview Strong Volume Growth, Margin Improvement and Cash Flow Generation • Delivered Strong 1Q21 Results to Start 2021 1Q21 YoY – Higher pricing and sales volume growth reflecting strength of our Variance business model, portfolio diversity and improved industry conditions – Expanded margins and g
Slide 4: 1Q 2021 Financial Summary
1Q 2021 Financial Summary Strong Start to 2021 ($ Millions, Except Per Share Amounts) 1Q 2020 1Q 2021 Comments • Sales Up 24%: Volume +8%, Price +16% Sales $302.7 $376.4 – Market Pricing +5%, Raw Material Pass Through +11% • Higher Volume and Improved Market-Based Pricing EBITDA $28.6 $55.1 • Unfavo
Slide 5: 1Q 2021 EBITDA Bridge
1Q 2021 EBITDA Bridge Higher Volume and Market-Based Pricing ($M) $1 • (~$3M) in 1Q21 vs. $7 $16 (~$2M) in 1Q20 • Increased volume across all major product lines $18 $55 • Chemical Intermediates • CPL/Nylon $29 • Ammonium Sulfate 1Q20 Price - Raws Spread Volume / Other Planned Plant Turnaround LIFO
Slide 6: Cash Flow / Leverage
Cash Flow / Leverage Robust Free Cash Flow Generation Supporting Further Reduction in Leverage 1Q21 Cash Flow ($M) Net Debt / Trailing 12-Month (TTM) Adjusted EBITDA Ratios Net Income $28 4 Net Debt / TTM Adjusted EBITDA Depreciation & Amortization $16 3 Inventories $39 Target Range 2 Accounts Recei
Slide 7: Industry Pricing And Spreads
Industry Pricing And Spreads Nylon Ammonium Sulfate Chemical Intermediates Further Improvement in Industry Spreads Improving Ag Fundamentals, Higher Input Costs Tight Supply and Demand Conditions 1Q21 YOY 1Q21 vs. 4Q20 1Q21 YOY 1Q21 vs. 4Q20 1Q21 YOY 1Q21 vs. 4Q20 Global Composite 17% 12% Acetone, S
Slide 8: 2021 Industry Update
2021 Industry Update Improved End Market Conditions Overall Nylon Ammonium Sulfate Chemical Intermediates • Improved North America carpet demand • Expect improved ammonium sulfate • Expect favorable acetone industry from residential applications; Expect fertilizer results through 2021 planting suppl
Slide 9: 2021 Priorities
2021 Priorities Executing Roadmap to Deliver Long-Term Shareholder Value Enhance Day-to-Day Execution By Strengthening Our Culture and Core Foundations of Excellence • Targeting record year of production output to support higher earnings and robust cash flow generation • Safety a top priority – zero
Slide 10: Appendix
APPENDIX 10 1Q 2021 Earnings Presentation – April 30, 2021
Slide 11: Planned Plant Turnarounds
Planned Plant Turnarounds Pre-Tax Income Impact by Quarter (1) 1Q 2Q 3Q 4Q FY 2017 -- ~$10M ~$4M ~$20M ~$34M 2018 ~$2M ~$10M ~$30M -- ~$42M 2019 -- ~$5M ~$5M ~$25M ~$35M 2020 ~$2M ~$7M ~$20M ~$2M ~$31M 2021E ~$3M $9-$11M -- $13-$16M $25-$30M • Timing driven by compliance, inspection and sustaining a
Slide 12: Reconciliation of Non-GAAP Measures to GAAP Measures
APPENDIX Reconciliation of Non-GAAP Measures to GAAP Measures 12 1Q 2021 Earnings Presentation – April 30, 2021
Slide 13: Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow
Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow (in $ thousands) (1) Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment The Company believes that this metric is useful to investor
Slide 14: Reconciliation Of Net Income To EBITDA
Reconciliation Of Net Income To EBITDA (in $ thousands) (2) EBITDA is a non-GAAP measure defined as Net Income before Interest, Income Taxes, Depreciation and Amortization (3) EBITDA margin is defined as EBITDA divided by Sales The Company believes the non-GAAP financial measures included in this pr
Slide 15: Reconciliation Of Net Income To Adjusted EBITDA
Reconciliation Of Net Income To Adjusted EBITDA (in $ thousands) (4) EBITDA is a non-GAAP measure defined as Net Income before Interest, Income Taxes, Depreciation and Amortization (5) Adjusted EBITDA is defined as EBITDA plus Non-cash stock based compensation, non-recurring, unusual or extraordinar
Slide 16: Reconciliation Of Net Debt To TTM Adjusted EBITDA Ratio
Reconciliation Of Net Debt And Calculation Of Net Debt To Trailing 12-Months (TTM) Adjusted EBITDA Ratio (in $ thousands) The leverage ratio of Net debt to TTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating the Company’s l