Slide 1: 3Q 2022 Earnings Presentation
3Q 2022 Earnings Presentation November 4, 2022
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: Navigated Challenging 3Q; Robust Cash Generation
Overview Navigated Challenging 3Q; Robust Cash Generation, Enhancing Capital Deployment ✓ 3Q22 results unfavorably impacted by extended planned plant turnaround 3Q22 Sales up YoY – Sales of $479M, net income of $10M and cash flow from operations of $59M +7% ✓ Robust cash generation, enabling previou
Slide 4: 3Q 2022 Financial Summary
3Q 2022 Financial Summary Extended Plant Planned Turnaround Impacted Top and Bottom-Line Results ($M, except per share amounts) Sales Adjusted EBITDA Highlights +7% (57%) • Sales: Price +22%, M&A +3%, Volume (18%) – Market-Based Pricing +18% – Raw Material Pass Through +4% $446 $479 $78 • EBITDA dec
Slide 5: 3Q 2022 Adjusted EBITDA Bridge
3Q 2022 Adjusted EBITDA Bridge Commercial Execution More Than Offset by Operational Performance ($M) Driving value through commercial excellence ($16) $49 • Increased plant spend primarily driven by utilities due to higher ($34) natural gas prices • Non-raw material • CPL/Nylon inflation • Lower sal
Slide 6: 3Q 2022 Cash Flow Generation and Use
3Q 2022 Cash Flow Generation and Use Robust Cash Generation, Enhancing Capital Deployment Cash Flow Generation ($M) Capital Allocation ($M) 3Q22 $210 $180 Net Income $10 $150 97 $120 Depreciation & Amortization $18 $90 11 10 24 $60 Accounts Receivable $59 83 4 $30 57 61 Accounts Payable ($19) $0 202
Slide 7: Industry Pricing And Spreads
Industry Pricing And Spreads Nylon Ammonium Sulfate Chemical Intermediates Balanced North America Supply and Demand Seasonality Drives Sequential Pricing Declines Continued Balancing of Acetone Supply and Demand (cents per pound) 4000 $/ston N 2000 120 ($/MT) 1600 content basis 3600 1800 100 3200 16
Slide 8: Outlook
Outlook Business Model, Diverse Product Portfolio, and Strong Ag Fundamentals Support Future Performance • 4Q22 expected performance rebounding towards results demonstrated in 1Q22 and 2Q22 as well as continued strong cash flow generation • Expect strong underlying agriculture and fertilizer industr
Slide 9: Well Positioned To Deliver Attractive Returns Over Long-Term
Well Positioned To Deliver Attractive Returns Over Long-Term • Integrated, efficient and low-cost business model supported by unique combination of assets Leading North American Position and Advantaged • Security of raw material supply strengthened through contracts with long-term qualified supplier
Slide 10: Appendix
APPENDIX 10 3Q 2022 Earnings Presentation – November 4, 2022
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 2022 Earnings Presentation – November 4, 2022
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 and Free Cash Flow Conversion (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 (2) Free cash flow conversion
Slide 14: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in $ thousands) (1) 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 15: 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