Slide 1: 2Q 2023 Earnings Presentation
August 4, 2023 2Q 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 Diverse Portfolio and Advantaged Business Model Supporting Through-Cycle Profitability 2Q23 Adjusted EBITDA ✓ Delivered solid earnings and cash flow results against record prior year comparison – Sales of $428M, Net Income of $33M, Cash Flow from Operations of $35M $66M – Executed on strong
Slide 4: 2Q 2023 Financial Summary
2Q 2023 Financial Summary Solid Performance Against Record Prior Year Comparison ($M, except per share amounts) Sales Adjusted EBITDA Adjusted Diluted EPS Free Cash Flow (27%) (38%) (46%) ($62M) $584 $105 $2.30 $78 $428 $66 $1.25 $16 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 Adjusted EBITDA 18.1% 15.4
Slide 5: 2Q 2023 Adjusted EBITDA Bridge
2Q 2023 Adjusted EBITDA Bridge Executing Within a Mixed Set of Dynamics Across the Portfolio ($M) ($44) ($4) ($1) $2 $105 • Ammonium Sulfate • Higher domestic plant nutrients sales volume $66 • Caprolactam / Nylon driven by stronger in- season demand • Chemical Intermediates compared to prior year 2
Slide 6: Industry Pricing and Spreads
Industry Pricing and Spreads Nylon Ammonium Sulfate Chemical Intermediates Global Pricing Pressured by Increasing China Lower Energy Costs, Ag Fundamentals Remain Strong Balanced North America Acetone Supply and Demand Exports ($/ston N content 80 (cents per ($/MT) 4000 basis) 2000 pound) 1600 3600
Slide 7: Ammonium Sulfate Seasonality
Ammonium Sulfate Seasonality Typically See Seasonal Decline 2Q to 3Q Cornbelt AS Price (Avg sequential price change 2010-2023) 8% 7% 7% • New North America fertilizer season commencing 3Q 6% 5% • Pricing typically declines with new season fill in 3Q and 4% strengthens into Spring planting season 2%
Slide 8: 100% Post-Industrial and Post-Consumer Recycled Nylon
100% Post-Industrial and Post-Consumer Recycled Nylon PIR Providing our Customers With a Cost-Effective Path to Sustainability PCR • Launched 100% Aegis® Post-Industrial Recycled (PIR) Nylon 6 resin & Capran® PIR BOPA films in 2021; Introduced new line of Aegis® Nylon 6 resin products that are certi
Slide 9: Outlook
Outlook Executing on Strategic Priorities to Continue Driving Shareholder Value • Expect favorable underlying agriculture industry fundamentals to continue; Typical North American ammonium sulfate seasonality expected to drive 3Q23 sequential domestic Sales by End Market pricing decline Other • Expe
Slide 10: Appendix
AovaNSix APPENDIX Good chemistry,
Slide 11: 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 12: Planned Plant Turnarounds
Planned Plant Turnarounds Pre-Tax Income Impact by Quarter (1) 1Q 2Q 3Q 4Q FY 2017 -- ~$10M ~$4M ~$20M ~$34M • Timing driven by compliance, inspection and sustaining 2018 ~$2M ~$10M ~$30M -- ~$42M asset base 2019 -- ~$5M ~$5M ~$25M ~$35M • Critical to supporting high utilization rates 2020 ~$2M ~$7M
Slide 13: Reconciliation of Non-GAAP Measures to GAAP Measures
Reconciliation of Non-GAAP Measures to GAAP Measures
Slide 14: 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 15: 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 16: 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