Advansix Inc. · NYSE:ASIX
Advansix — Q1 2018 Earnings Presentation
14 slides from Advansix's earnings presentation, May 4, 2018
Slide 1: 1Q 2018 Earnings Presentation
May 4, 2018 1Q 2018 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 • Successfully Navigated Through 1Q18 Weather-Related Production Issue (~$30M Unfavorable Impact to 1Q18 Pre-Tax Income) and Improved Free Cash Flow Generation • 1Q18 Favorable Market Pricing Supported by Improved Industry Supply and Demand Environment Across Nylon and Chemical Intermedia
Slide 4: 1Q 2018 Financial Summary
1Q 2018 Financial Summary 4 Strong Underlying Performance While Managing Through Weather-Related Event ($ Millions, Except Per Share Amounts) 1Q 2017 1Q 2018 Comments • Sales Down (5%): Volume (8%), Price +3% Sales $376.7 $359.2 – Market Pricing +2%, Raw Material Pass Through +1% – (9%) Unfavorable
Slide 5: Nylon Industry Outlook
Nylon Industry Outlook 5 Industry Spreads Fluctuating Near Marginal Producer Cost Nylon Key Industry Spreads (1) 1Q18 YoY 1Q18 vs. 4Q17 • North America supply/demand generally in balance following Global Composite BNZ-CPL 12% 3% industry outages Asia BNZ-CPL (6%) (1%) What We’re Asia CPL-Resin 4% 6%
Slide 6: Ammonium Sulfate (AS) Industry Outlook
Ammonium Sulfate (AS) Industry Outlook 6 1Q Seasonal Improvement; Late Start to Planting Season Due to Weather Ammonium Sulfate Key Industry Prices (1) 1Q18 YoY 1Q18 vs. 4Q17 • Cold / wet weather in U.S. Corn Belt Granular AS 5% 8% driving late start to planting Corn Belt Urea 4% 5% What We’re seaso
Slide 7: Chemical Intermediates Industry Outlook
Chemical Intermediates Industry Outlook 7 Stabilizing End Market Environment – Continuing to Track Input Costs Chemical Intermediates Key Industry Prices (1) 1Q18 YoY 1Q18 vs. 4Q17 • Global phenol demand strengthens Acetone, Large Buyer 1% (6%) What We’re Refinery Grade Propylene 4% (6%) Seeing • No
Slide 8: Cash Flow
Cash Flow 8 Maturing Deployment Strategies Trailing 12-Month Cash Flow Cash Generation and Deployment ($ Millions) • Improved free cash flow generation expected to continue 170 – High plant operating rates – Driving higher-value product mix 150 – Efficient working capital performance 130 – Amended c
Slide 9: 2018 Outlook
2018 Outlook 9 Expect Current Industry Conditions to Continue • Nylon: industry spreads fluctuating near marginal producer cost Commercial • Ammonium Sulfate: cold/wet weather in U.S. drives late start to planting season • Chemical Intermediates: stabilizing North America market environment • Planne
Slide 10: Appendix: Reconciliation of non-GAAP Measures to GAAP Measures
10 Appendix: Reconciliation of non-GAAP Measures to GAAP Measures 1Q 2018 Earnings Presentation – May 4, 2018
Slide 11: Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow
Reconciliation Of Net Cash Provided By Operating 11 Activities To Free Cash Flow (in $ thousands) The Company believes that this metric is useful to investors and management as a measure to evaluate our ability to generate cash flow from business operations and the impact that this cash flow has on
Slide 12: Reconciliation Of Net Income To EBITDA
Reconciliation Of Net Income To EBITDA 12 (in $ thousands) The Company believes these non-GAAP financial measures provide meaningful supplemental information as they are used by the Company’s management to evaluate the Company’s operating performance, enhance a reader’s understanding of the financia
Slide 13: Appendix
13 Appendix 1Q 2018 Earnings Presentation – May 4, 2018
Slide 14: Operational Performance
Operational Performance 14 Weather-Related Production Issue Resolved as Expected 1Q18 Pre-Tax Income Impact Comments ~$30M • Experienced a temporary production issue in our ammonia plant at Hopewell, VA facility related to severe winter weather – Caprolactam and resin production rates were reduced a