Advansix Inc. · NYSE:ASIX
Advansix — Q4 2021 Earnings Presentation
18 slides from Advansix's earnings presentation, Feb 18, 2022
Slide 1: 4Q 2021 Earnings Presentation
4Q 2021 Earnings Presentation February 18, 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: Record Performance In 2021, Significant Momentum Into 2022
Overview Record Performance In 2021, Significant Momentum Into 2022 ✓ Record annual sales, earnings and cash flow in 2021 FY 2021 Sales up YoY – FY 2021 sales of $1.7B, net income of $140M and cash flow from operations of $219M ✓ Executing on strategic priorities to deliver robust total +45% shareho
Slide 4: FY 2021 Financial Summary
FY 2021 Financial Summary Record Annual Sales, Earnings and Cash Flow as a Public Company ($M, except per share amounts) Sales EBITDA Highlights +45% +107% • Sales: Price +38%, Volume +7% – Market Pricing +20% – Raw Material Pass Through +18% $1,685 $255 $1,158 $124 • EBITDA increase driven by impro
Slide 5: 4Q 2021 Financial Summary
4Q 2021 Financial Summary Market-Based Pricing Supports Performance in Turnaround Quarter ($M, except per share amounts) Sales EBITDA Highlights +25% +2% • Sales: Price +37%, Volume (12%) – Market Pricing +25% – Raw Material Pass Through +12% $424 $48 $49 $340 • EBITDA increase driven by improved ma
Slide 6: 4Q 2021 EBITDA Bridge
4Q 2021 EBITDA Bridge Strong Commercial Performance Offset Turnarounds, Inflation and Volume ($M) Driving value through strong commercial excellence ($16) • (~$18M) in 4Q21 vs. ($2M) in $49 4Q20 ($32) • Ammonium Sulfate • Lower production volume compared to robust operational • CPL/Nylon performance
Slide 7: Cash Flow And Capital Deployment
Cash Flow And Capital Deployment Robust Cash Flow, Adding Value Through Capital Deployment Cash Flow ($M) Capital Deployment ($M) 4Q21 FY21 $250 $200 Net Income $24 $140 62 $150 Depreciation & 39 57 $16 $65 Amortization $100 36 9 17 ~100 10 $50 4 Total Working Capital* ($16) ($21) 93 77 73 66 53 ~4
Slide 8: Industry Pricing And Spreads
Industry Pricing And Spreads Nylon Ammonium Sulfate Chemical Intermediates Year-over-Year Improvement in Industry Spreads Strong Ag Fundamentals and Higher Energy Costs Continued Balancing of Supply and Demand 1600 120 (cents per ($/MT) 4000 $/ston N 2000 pound) content basis 3600 1800 100 1200 3200
Slide 9: Acquisition Of U.S. Amines
Acquisition Of U.S. Amines Leading Producer Serving Diverse Set of High-Value End Markets and Applications • U.S. based producer of a range of amines – 2022 estimated sales of ~$70M – ~70% of sales in U.S. – Stable margin and cash flow profile – ~50 employees based in the U.S., locations in Bucks, A
Slide 10: U.S. Amines – Strategic Rationale
U.S. Amines – Strategic Rationale Enhancing Presence in Agrochemicals; Accretive and Stable Margin and Cash Flow Profile AdvanSix M&A Framework U.S. Amines – Strategic Rationale Value chain integration • Enhances advantaged position through internal supply of products/raw materials • Unique platform
Slide 11: 2022 Considerations
2022 Considerations Continued Momentum Into 2022 • Targeting significant earnings growth in 2022 supported by expected strong execution and robust ammonium sulfate fertilizer performance • Expect strong North America demand for nylon and chemical intermediates to continue • Continue to expect Capex
Slide 12: 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 13: Appendix
APPENDIX 13 4Q 2021 Earnings Presentation – February 18, 2022
Slide 14: 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 15: Reconciliation of Non-GAAP Measures to GAAP Measures
APPENDIX Reconciliation of Non-GAAP Measures to GAAP Measures 15 4Q 2021 Earnings Presentation – February 18, 2022
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 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
Slide 18: Historical Reconciliation Of Net Income To Adjusted EBITDA And Adjusted EPS
Historical Reconciliation Of Net Income To Adjusted EBITDA And 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