Advansix Inc. · NYSE:ASIX
Advansix — Q3 2021 Earnings Presentation
14 slides from Advansix's earnings presentation, Oct 29, 2021
Slide 1: 3Q 2021 Earnings Presentation
3Q 2021 Earnings Presentation October 29, 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: Strong Execution in Dynamic Market Environment
Overview Strong Execution in Dynamic Market Environment ✓ Terrific 3Q21 results including robust sales, earnings and 3Q21 YoY margin growth as well as record quarterly cash flow Variance generation since spin Sales +58% ✓ Outlook remains favorable – expecting strong execution amid tight supply and d
Slide 4: 3Q 2021 Financial Summary
3Q 2021 Financial Summary Terrific Performance Across The Board ($ Millions, Except Per Share Amounts) 3Q 2020 3Q 2021 Comments • Sales Up 58%: Volume +8%, Price +50% Sales $281.9 $446.5 – Market Pricing +28%, Raw Material Pass Through +22% • Improved Market-Based Pricing, Net of Increased Raw Mater
Slide 5: 3Q 2021 EBITDA Bridge
3Q 2021 EBITDA Bridge Strong Commercial and Operational Execution ($M) $1 • Increased plant spend and sales $20 freight to support volume growth Driving value through strong • Higher incentive compensation commercial excellence expense • (~$20M) in 3Q20 vs. $0 in • ~$2M favorability from additional
Slide 6: Cash Flow
Cash Flow Continued Robust Free Cash Flow Generation 3Q21 Cash Flow ($M) Cash Flow Outlook / Deployment Net Income $44 • Focused on driving robust earnings through superior commercial and operational performance Depreciation & Amortization $16 • 4Q21 cash flow considerations: timing of working capit
Slide 7: Industry Pricing And Spreads
Industry Pricing And Spreads Nylon Ammonium Sulfate Chemical Intermediates Year-over-Year Improvement in Industry Spreads Strong Ag Fundamentals and Higher Energy Costs Continued Balancing of Supply and Demand 3Q21 YOY 3Q21 vs. 2Q21 3Q21 YOY 3Q21 vs. 2Q21 3Q21 YOY 3Q21 vs. 2Q21 Global Composite 42%
Slide 8: 2022 Considerations
2022 Considerations Continued Momentum Into 2022 • Continued navigation of industry supply chain disruptions • Expect steady North America nylon demand amid favorable end market conditions and tight industry supply • Robust agricultural industry fundamentals expected to continue through 2022 plantin
Slide 9: Compelling Investment Thesis
Compelling Investment Thesis Strong & Sustainable Shareholder Return Advantaged Asset Base Leading Product Portfolio Aligned to Diverse Compelling ROI and Growing Applications Durable FCF Yield and Top Quartile Conversion Improved Through Cycle Profitability and Enhanced Portfolio Resiliency Increas
Slide 10: APPENDIX
APPENDIX 10 3Q 2021 Earnings Presentation – October 29, 2021
Slide 11: Planned Plant Turnarounds
Planned Plant Turnarounds Pre-Tax Income Impact by Quarter (1) 1Q 2Q 3Q 4Q FY • Timing driven by compliance, inspection and sustaining asset base 2017 -- ~$10M ~$4M ~$20M ~$34M • Critical to supporting high utilization rates 2018 ~$2M ~$10M ~$30M -- ~$42M • Dedicated teams to improve effectiveness 2
Slide 12: Reconciliation of Non-GAAP Measures to GAAP Measures
APPENDIX Reconciliation of Non-GAAP Measures to GAAP Measures 12 3Q 2021 Earnings Presentation – October 29, 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