Advansix Inc. · NYSE:ASIX
Advansix — Q1 2024 Earnings Presentation
14 slides from Advansix's earnings presentation, May 3, 2024
Slide 1: 1Q 2024 Earnings Presentation
May 3, 2024 1Q 2024 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 1Q24 Performance Impacted by Operational Disruption, Anticipating Rebound in 2Q24 • 1Q24 Results Unfavorably Impacted by Process-Based Operational Disruption at Our 1Q24 Sales Frankford, PA Manufacturing Site $337M – 1Q24 Net Loss of ($17M); 1Q24 results include ~$27M unfavorable pre-tax in
Slide 4: 1Q 2024 Financial Summary
1Q 2024 Financial Summary Results Impacted by Operational Disruption, Unfavorable Market-Based Pricing YoY ($M, except per share amounts) Sales Adjusted EBITDA Adjusted Diluted EPS Free Cash Flow (16%) ($65) ($1.86) ($49) $1.30 $401 $65 $337 ($23) ($72) $1 ($0.56) 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 1Q23
Slide 5: 1Q 2024 Adjusted EBITDA Sequential Bridge
1Q 2024 Adjusted EBITDA Sequential Bridge Operational Disruption Impact Partially Offset By Sequential Commercial Tailwinds ($M) • Ammonium Sulfate • Lower export volume supporting more • Chemical Intermediates favorable sales mix • Caprolactam • Lower SG&A costs • Nylon ($5) $7 $11 ($27) $15 $1 4Q2
Slide 6: Industry Pricing and Spreads
Industry Pricing and Spreads Nylon Ammonium Sulfate Chemical Intermediates Global Pricing Stable Sequentially Ammonium Sulfate Pricing Strengthening Into Tight Global Acetone Supply and Demand Domestic Season ($/ston N (cents per 1200 ($/MT) 2400 1200 80 content basis) pound) 1000 2000 1000 60 800 1
Slide 7: Outlook Considerations
Outlook Considerations Operational and Commercial Tailwinds Supporting Earnings Outlook Improvement Operational Commercial Return to expected robust plant utilization rates Anticipate 2Q24 AS sequential pricing improvement amid continued sulfur demand growth and tight North American supply followed
Slide 8: Sustainability Initiatives and Performance
Sustainability Initiatives and Performance Delivering Results For All Stakeholders and Driving Customer Outcomes EcoVadis Platinum Rating CDP Rating ISCC PLUS Certification • Third consecutive Platinum rating is a continued • Recognized in the top “Leadership” category with • Certified to the Intern
Slide 9: Appendix
AovaNSix APPENDIX Good chemistry,
Slide 10: 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 2018 ~$2M ~$10M ~$30M -- ~$42M Ammonia sustaining asset base 2019 -- ~$5M ~$5M ~$25M ~$35M Sulfuric Acid • C
Slide 11: Reconciliation of Non-GAAP Measures to GAAP Measures
Reconciliation of Non-GAAP Measures to GAAP Measures
Slide 12: 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 13: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in $ thousands) (2) Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Sales The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company’s
Slide 14: 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