Slide 1: 4Q 2024 Earnings Presentation
February 21, 2025 4Q 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 Navigated Extended Plant Turnaround, Well Positioned for 2025 ✓ Year-over-year commercial performance largely offsets impact of plant turnaround in 4Q24 4Q24 Sales – 4Q24 Net Income of $0.4M, EPS of $0.01, Cash Flow from Operations of $64M $329M – Continue to benefit from diverse product po
Slide 4: 4Q 2024 Financial Summary
4Q 2024 Financial Summary Delivered Strong Cash Flow Performance, Earnings Impacted by Plant Turnaround Activity ($M, except per share amounts) Sales Adjusted EBITDA Adjusted Diluted EPS Free Cash Flow (14%) ($5M) +$0.19 +$8M $30 $382 $22 $329 $15 $10 $0.09 ($0.10) 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 4Q23
Slide 5: FY 2024 Financial Summary
FY 2024 Financial Summary Achieving Commercial Success While Navigating Operational Performance ($M, except per share amounts) Sales Adjusted EBITDA Adjusted Diluted EPS Free Cash Flow (1%) ($11M) ($0.18) ($8M) $1,534 $1,518 $154 $142 $2.14 $1.96 $10 $2 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Plant
Slide 6: Cash Flow Generation and Use
Cash Flow Generation and Use Generated Positive Free Cash Flow for FY24 While Continuing to Support Organic Reinvestment Cash Flow Generation 2024 Highlights: • Achieved positive H e aFree l t h yCash B a l Flow a n c edespite S h e eoperational t and ($M) challenges P r u d e n t L e v e r a g e R
Slide 7: 45Q Carbon Capture Tax Credits
45Q Carbon Capture Tax Credits Significant Value Driver Over Medium to Long Term • 45Q allows a federal tax credit over a 12-year period based on the amount of CO2 captured that would otherwise be emitted into the atmosphere beginning in February 2018 for AdvanSix Background • Requires submission of
Slide 8: Plant Nutrients Update
Plant Nutrients Update Industry Pricing Outlook Considerations Continued Strong AS Premium Over Urea • Strong sulfur nutrition demand and tight North American ammonium sulfate supply expected to support sulfur premiums at or near high end of historical range – Continuing to see tighter urea environm
Slide 9: Nylon Solutions Update
Nylon Solutions Update Industry Spreads Outlook Considerations Global Oversupply Conditions Pressuring Pricing • Expect slower recovery off the trough for North American nylon industry conditions amid stable end market demand and increased domestic competitive pressure – Lower interest rate environm
Slide 10: Chemical Intermediates Update
Chemical Intermediates Update Industry Pricing Outlook Considerations Balanced Global Acetone Supply and Demand • Expect balanced global acetone supply and demand conditions – Global phenol operating rates expected to remain low; lower interest rate environment would favorably impact building and co
Slide 11: KPIs and Industry Pricing Metrics
KPIs and Industry Pricing Metrics Broader Industry Backdrop Remains Constructive; Anticipate Higher Raw Material Prices in 2025 KPIs / Industry Metrics 1Q24 4Q24 1Q25E • Significant year-over-year increases estimated for natural gas and sulfur based NYMEX Natural Gas ($/MMBtu) $2.24 $2.79 $3.74(1) o
Slide 12: 2025 Outlook
2025 Outlook Operational and Commercial Excellence Support Favorable Earnings Outlook • Strong sulfur nutrition demand and tight North American ammonium sulfate supply expected to support sulfur premiums at or near high end of historical range; Anticipated higher raw Sales by End Market material pri
Slide 13: Appendix
AovanSix APPENDIX Good chemistry,
Slide 14: 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 sustaining asset base 2018 ~$2M ~$10M ~$30M -- ~$42M Ammonia 2019 -- ~$5M ~$5M ~$25M ~$35M Sulfuric Acid • C
Slide 15: Reconciliation of Non-GAAP Measures to GAAP Measures
Reconciliation of Non-GAAP Measures to GAAP Measures
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 investo
Slide 17: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in $ thousands) (2) 2024 includes a pre-tax loss of approximately $1.2 million from the reduction of the Company’s anticipated receivable related to the gain on the termination fee recorded upon the exit from the Oben Holding Group S.A. alliance durin
Slide 18: 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