Slide 1: 3Q 2017 Earnings Presentation
November 7, 2017 3Q 2017 Earnings Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements 2 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 o
Slide 3: Overview
Overview 3 • Strong 3Q17 Results: Sales $367M, Net Income $21M, Cash Flow from Operations $38M • Favorable Conditions Across Nylon and Intermediates; Ammonium Sulfate Price Movement Modest Relative to Recent Nitrogen Pricing • Expect 4Q17 Planned Turnaround Impact to Pre-Tax Income of ~$20M, Consist
Slide 4: 3Q 2017 Financial Summary
3Q 2017 Financial Summary 4 Continued High Utilization Rates, Favorable Market Conditions ($ Millions, Except Per Share Amounts) 3Q 2016 3Q 2017 Comments • Volume +5%, Price +8% Sales $324.0 $366.7 – Market Pricing +4%, Raw Material Pass Through +4% • Favorable Market Pricing EBITDA $38.1 $50.3 • Un
Slide 5: Nylon Industry Outlook
Nylon Industry Outlook 5 Industry Conditions Remain Improved Year-Over-Year Nylon Key Industry Spreads (1) • Tightened supply environment – 3Q17 YoY 3Q17 vs. 2Q17 North America and Europe Global Composite BNZ-CPL 38% 17% What We’re • China announced capacity adds, Asia BNZ-CPL 23% 3% utilization imp
Slide 6: Ammonium Sulfate (AS) Industry Outlook
Ammonium Sulfate (AS) Industry Outlook 6 Nitrogen Prices Recently Firmed, Fundamentals Remain Challenging Ammonium Sulfate Key Industry Prices (1) 3Q17 YoY 3Q17 vs. 2Q17 • Nitrogen prices firmed due to supply availability / China costs Corn Belt Granular AS (-3%) (-9%) Corn Belt Urea 4% 4% What We’r
Slide 7: Chemical Intermediates Industry Outlook
Chemical Intermediates Industry Outlook 7 Phenol and Acetone Tightened Supply Environment Chemical Intermediates Key Industry Prices (1) • Competitors’ force majeure 3Q17 YoY 3Q17 vs. 2Q17 announcements largely resolved Acetone, Large Buyer 22% 1% What We’re Refinery Grade Propylene 18% 1% Seeing •
Slide 8: Operational Excellence
Operational Excellence 8 Driving Improved Reliability, Increased Output and Higher Returns Annualized Plant Production • Continuing to Benefit from Upgrades and Reliability Improvements – 3Q17 YTD Production Up 3% vs. Prior Year and 8% Above 2012-2015 Average – Focused Maintenance Capex Drives More
Slide 9: 4Q 2017 Outlook
4Q 2017 Outlook 9 ~$20M Impact to Pre-Tax Income from Planned Turnaround Consistent With Prior Expectations • Anticipate similar supply/demand environment to 3Q17 across major product lines Commercial • Monitoring China environmental considerations into Winter months • Executing planned turnaround o
Slide 10: 2018 Outlook
2018 Outlook 10 Expect Current Industry Conditions to Continue, Focus on Organic Investments • Anticipate similar supply/demand environment to 2017 across major product lines – Nylon: industry spreads fluctuating near marginal producer cost Commercial – Ammonium Sulfate: seasonal industry pricing, c
Slide 11: AdvanSix Strategy And Priorities
AdvanSix Strategy And Priorities 11 Well Positioned for Strong Operational and Financial Performance Over Long Term Focused Strategy Delivering In 2017 2018 Priorities • Rigorous commitment to • Robust sales and production volume • High operating rates to continue operational excellence • Trending t
Slide 12: Appendix: Reconciliation of non-GAAP Measures to GAAP Measures
12 Appendix: Reconciliation of non-GAAP Measures to GAAP Measures 3Q 2017 Earnings Presentation – November 7, 2017
Slide 13: Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow
Reconciliation Of Net Cash Provided By Operating 13 Activities To Free Cash Flow Three Months Ended Nine Months Ended September 30, September 30, (in $ thousands) 2017 2016 2017 2016 Net Cash Provided by Operating Activities $ 37,679 $ 24,614 $ 98,471 $ 66,467 Expenditures for Property, Plant and Eq
Slide 14: Reconciliation Of Net Income To EBITDA
Reconciliation Of Net Income To EBITDA 14 Three Months Ended Nine Months Ended September 30, September 30, (in $ thousands) 2017 2016 2017 2016 Net Income $ 21,274 $ 16,460 $ 74,331 $ 58,861 Interest Expense 1,961 — 5,373 — Income Taxes 14,538 11,342 46,803 36,712 Depreciation and Amortization 12,56