Slide 1: 3Q 2023 Earnings Presentation
November 3, 2023 3Q 2023 Earnings Presentation
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 Navigated Challenging Nylon Market Conditions, Executing on Long-Term Strategies • 3Q23 results pressured by unfavorable nylon industry supply and demand conditions 3Q23 Sales – Net Loss of ($8M), Cash Flow from Operations of $21M – Nylon environment pressured by unfavorable global industry
Slide 4: 3Q 2023 Financial Summary
3Q 2023 Financial Summary Unfavorable Nylon Industry Supply and Demand Conditions Pressuring 3Q23 Results ($M, except per share amounts) Sales Adjusted EBITDA Adjusted Diluted EPS Free Cash Flow (33%) (78%) ($0.79) ($41) $479 $33 $37 $323 $7 $0.43 ($0.36) ($4) 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23
Slide 5: 3Q 2023 Adjusted EBITDA Bridge
3Q 2023 Adjusted EBITDA Bridge Lower Pricing, Net of Raws, Partially Offset By Favorable YoY Impact of Planned Plant Turnarounds ($M) $6 • Lower plant spend $17 including utilities costs • Lower functional spend ($45) $33 ($4) • Nylon / Caprolactam • Higher nylon export $7 • Chemical Intermediates s
Slide 6: Industry Pricing and Spreads
Industry Pricing and Spreads Nylon Ammonium Sulfate Chemical Intermediates Global Pricing Pressured by Unfavorable Seasonality Drives Sequential Pricing Declines Balanced North America Acetone Supply and Demand Supply and Demand ($/ston N content basis) (cents per ($/MT) 4000 2000 80 pound) 1600 360
Slide 7: Nylon Industry Update
Nylon Industry Update What We’re Seeing Actions We’re Taking • Global nylon demand declines across most major end-uses • Driving productivity opportunities to reinforce cost position – Higher interest rate environment unfavorably impacting building and construction end markets as well as consumer sp
Slide 8: Key Industry Cycles
Key Industry Cycles Portfolio Diversification Provides a Benefit Given Short and Long Cycle Dynamics Caprolactam Ammonium Sulfate Chemical Intermediates ($/MT) ($/ston) (cents per pound) 600 50 1,800 1,500 500 40 1,200 400 30 900 Avg 300 Avg 20 Avg 600 200 10 300 100 0 - - Corn Belt AS Less Natural
Slide 9: Executing to Accelerate Profitable Growth
Executing to Accelerate Profitable Growth We are focusing our resources and production in the most profitable areas of our business, differentiated through our strength in execution, security of supply, best in class delivery and quality, and continued innovation to solve customer challenges. Portfo
Slide 10: Outlook
Outlook Diverse Portfolio and Advantaged Business Model to Support Through-Cycle Profitability • Expect nylon industry margins to remain at prior trough levels through year-end due to Sales by End Market unfavorable supply and demand conditions; Anticipate continued higher Nylon Solutions Coatings,
Slide 11: Appendix
AovaNSix APPENDIX Good chemistry,
Slide 12: Well Positioned To Deliver Attractive Returns Over Long-Term as a Diversified Chemistry Company
Well Positioned To Deliver Attractive Returns Over Long-Term as a Diversified Chemistry Company • Three product lines to support near and long-term performance Leading Product Portfolio Aligned to Diverse and • Customer focus on reliable, local supply; Supportive of onshoring of manufacturing/supply
Slide 13: Planned Plant Turnarounds
Planned Plant Turnarounds Pre-Tax Income Impact by Quarter (1) Primary Unit 1Q 2Q 3Q 4Q FY Operation 2017 -- ~$10M ~$4M ~$20M ~$34M Sulfuric Acid • Timing driven by compliance, inspection and sustaining asset base 2018 ~$2M ~$10M ~$30M -- ~$42M Ammonia • Critical to supporting high utilization rates
Slide 14: Third Quarter 2023 Transactions
Third Quarter 2023 Transactions 3Q23 Transactions Financial Impact (in $ thousands except per share amounts) © 2023 AdvanSix Inc. All Rights Reserved. 14
Slide 15: Reconciliation of Non-GAAP Measures to GAAP Measures
Reconciliation of Non-GAAP Measures to GAAP Measures
Slide 16: 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 17: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in $ thousands) (2) Includes a pre-tax gain of approximately $11.4 million related to the Company's exit from the Oben alliance, the unfavorable impact to pre-tax income of approximately $4.5 million associated with a licensee of certain legacy ammoni
Slide 18: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share to Adjusted Earnings Per Share (in $ thousands except share and per share amounts) The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company’s management to evalu