PART I [Business](index=4&type=section&id=Item%201.%20Business) AdvanSix is a vertically integrated manufacturer of nylon solutions, chemical intermediates, and plant nutrients serving diverse end markets [Description of Business and Manufacturing](index=4&type=section&id=Description%20of%20Business%20and%20Manufacturing) The company operates as a key supplier with vertically integrated manufacturing across four main product lines Sales by Product Line (2020-2022) | Product Line | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Nylon | 25% | 25% | 24% | | Caprolactam | 16% | 19% | 19% | | Chemical Intermediates | 26% | 32% | 32% | | Ammonium Sulfate | 33% | 24% | 25% | - The company's manufacturing process is vertically integrated, starting with cumene to produce phenol and acetone, which are then used to create caprolactam and ammonium sulfate[16](index=16&type=chunk) Key Financial Performance (2020-2022) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Sales | $1,946 million | $1,685 million | $1,158 million | | Net Income | $172 million | $140 million | $46 million | | International Sales | $323 million | $302 million | $267 million | - In 2022, AdvanSix **acquired U.S. Amines**, which added two manufacturing facilities and expanded its product line to include alkyl and specialty amines[9](index=9&type=chunk)[16](index=16&type=chunk) [Competitive Strengths and Business Strategies](index=6&type=section&id=Competitive%20Strengths%20and%20Business%20Strategies) The company's competitive edge lies in its low-cost position, diverse revenues, and global reach, with a focus on operational excellence - The company's low-cost position is attributed to its **vertically integrated manufacturing**, large scale, and access to low-cost natural gas[19](index=19&type=chunk) - Revenue is diversified through the sale of co-products; in 2022, ammonium sulfate sales were **$629 million** and acetone sales were **$227 million**[20](index=20&type=chunk) - Business strategies focus on operational excellence, enhancing the product portfolio, and disciplined capital deployment including acquisitions and shareholder returns[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) [Industry Overview and Competition](index=7&type=section&id=Industry%20Overview%20and%20Competition) The company operates in cyclical industries, competing with large global manufacturers across its Nylon, Chemical, and Plant Nutrient markets - The global market for Nylon 6 and caprolactam is cyclical, influenced by global supply/demand dynamics and raw material costs[28](index=28&type=chunk)[30](index=30&type=chunk) - The U.S. acetone market saw **favorable conditions in 2022**, with balanced supply and demand supporting industry margins[31](index=31&type=chunk) - Ammonium sulfate prices are influenced by the price of urea and general agricultural trends[32](index=32&type=chunk) - Key competitors include integrated manufacturers like **Highsun Group, BASF, Sinopec, and LANXESS**[33](index=33&type=chunk) [Product and Operations Overview](index=9&type=section&id=Product%20and%20Operations%20Overview) The company's four product lines serve approximately 400 customers, with notable customer concentration and seasonality in its fertilizer business 2022 Sales by Product Line | Product Line | 2022 Sales | % of Total Sales | | :--- | :--- | :--- | | Nylon | $485 million | 25% | | Caprolactam | $320 million | 16% | | Chemical Intermediates | $512 million | 26% | | Ammonium Sulfate | $629 million | 33% | - The company's primary raw material is cumene, and it manages supply through contracts with multiple suppliers[39](index=39&type=chunk)[40](index=40&type=chunk) - Customer concentration is notable, with the **10 largest customers accounting for 39% of total sales** in 2022[43](index=43&type=chunk) - Ammonium sulfate sales are seasonal, fluctuating with agricultural growing seasons in North and South America[44](index=44&type=chunk) [Human Capital Management](index=13&type=section&id=Human%20Capital%20Management) The company prioritizes safety, diversity, and employee development for its workforce of approximately 1,458 people - As of year-end 2022, the company had **1,458 employees**, with approximately 744 unionized[55](index=55&type=chunk) Total Case Incident Rate (TCIR) | Year | TCIR | | :--- | :--- | | 2022 | 1.15 | | 2021 | 0.48 | | 2020 | 0.91 | - The company demonstrates a commitment to diversity, with **45% of its senior leadership team being women** in 2022[65](index=65&type=chunk) - AdvanSix supports STEM education and diversity through programs like the Future of STEM Scholars Initiative (FOSSI)[63](index=63&type=chunk) [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks related to its business operations, indebtedness, regulatory environment, and common stock [Risks Relating to Our Business](index=19&type=section&id=Risks%20Relating%20to%20Our%20Business) Business risks include economic volatility, industry cyclicality, potential production downtime, and reliance on key customers - The business is subject to **volatile economic conditions**, including inflation and potential recession, which could reduce demand[79](index=79&type=chunk)[80](index=80&type=chunk) - The industries served are cyclical, which can cause **significant fluctuations in operating results and cash flows**[81](index=81&type=chunk)[83](index=83&type=chunk) - Significant unplanned downtime at any of the **highly integrated production facilities** could adversely affect earnings[84](index=84&type=chunk)[86](index=86&type=chunk) - The loss of significant customers could adversely affect results, as the **10 largest customers accounted for 39% of total sales** in 2022[102](index=102&type=chunk) [Risks Relating to Our Indebtedness](index=26&type=section&id=Risks%20Relating%20to%20Our%20Indebtedness) Indebtedness risks stem from restrictive covenants in its credit facility and the ongoing transition away from LIBOR - The company's credit facility contains **restrictive covenants** that impose significant operating and financial restrictions[124](index=124&type=chunk) - A breach of covenants could result in an event of default, allowing lenders to **accelerate repayment**[125](index=125&type=chunk) - The **phase-out of LIBOR** could result in an increase in the cost of variable rate debt[127](index=127&type=chunk) [Risks Relating to Legal and Regulatory Matters](index=27&type=section&id=Risks%20Relating%20to%20Legal%20and%20Regulatory%20Matters) The company is subject to extensive environmental, health, and safety regulations that can result in substantial costs and liabilities - The company is subject to extensive EHS laws which may result in **substantial costs, fines, and operational interruptions**[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) - Climate change poses significant risks, including **more stringent regulations** on greenhouse gas emissions and physical risks from extreme weather[131](index=131&type=chunk)[132](index=132&type=chunk) - Operations are dependent on numerous governmental permits, and a delay or denial could adversely affect the ability to operate[137](index=137&type=chunk) - The company faces risks from adverse international trade policies, including **tariffs and anti-dumping duties**[138](index=138&type=chunk) [Risks Relating to Our Common Stock](index=29&type=section&id=Risks%20Relating%20to%20Our%20Common%20Stock) Investment in the company's common stock carries risks including price volatility and uncertainty regarding future dividends - The market price of the company's common stock may **fluctuate significantly** due to a variety of factors[146](index=146&type=chunk) - There is **no guarantee of the timing, amount, or payment of future dividends**, which may be limited by the terms of the company's indebtedness[149](index=149&type=chunk) - Certain provisions in the company's corporate governance documents and Delaware law may **discourage, delay, or prevent a merger or acquisition**[151](index=151&type=chunk) [Unresolved Staff Comments](index=31&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None[152](index=152&type=chunk) [Properties](index=31&type=section&id=Item%202.%20Properties) The company owns five manufacturing sites and leases its principal executive offices in New Jersey - The company owns five manufacturing sites in Pennsylvania, Virginia, and Alabama, and leases its principal executive offices in New Jersey[152](index=152&type=chunk) [Legal Proceedings](index=31&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course litigation and regulatory negotiations not expected to have a material adverse effect - The company is in ongoing negotiations with the EPA regarding alleged violations at its Hopewell, Virginia facility, which were self-reported[153](index=153&type=chunk)[154](index=154&type=chunk) - The company is also in negotiations with Philadelphia Air Management Services (PAMS) to resolve alleged violations at its Philadelphia, Pennsylvania facility[155](index=155&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[156](index=156&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on the NYSE, with active share repurchase and dividend programs in place Share Repurchases (Q4 2022) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining Under Plan (as of end of month) | | :--- | :--- | :--- | :--- | | October 2022 | 155,500 | $33.50 | $33,394,158 | | November 2022 | 111,403 | $38.07 | $29,153,293 | | December 2022 | 17,298 | $40.56 | $28,451,601 | - On February 17, 2023, the Board authorized an **additional $75 million** for the share repurchase program[158](index=158&type=chunk) Declared Dividends per Share (2022-2023) | Announcement Date | Dividend per Share | | :--- | :--- | | 2/17/2023 | $0.145 | | 11/4/2022 | $0.145 | | 8/5/2022 | $0.145 | | 5/6/2022 | $0.125 | | 2/18/2022 | $0.125 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Sales and net income grew in 2022, driven by favorable pricing and an acquisition, alongside strong cash flow and shareholder returns [Recent Developments](index=36&type=section&id=Recent%20Developments) Key developments include the U.S. Amines acquisition, the extension of anti-dumping duties, and an ongoing insurance claim - In February 2022, the company **acquired U.S. Amines** for approximately **$97 million** net of cash acquired[177](index=177&type=chunk) - **Anti-dumping and countervailing duty orders** on ammonium sulfate imports from China were extended for another five years[178](index=178&type=chunk) - The company continues to pursue a business interruption insurance claim related to the 2019 shutdown of the Philadelphia Energy Solutions (PES) refinery[179](index=179&type=chunk) [Consolidated Results of Operations](index=38&type=section&id=Consolidated%20Results%20of%20Operations) Sales increased 15.5% in 2022 due to higher pricing and an acquisition, which offset lower volumes and led to higher net income Sales Change Attribution (2022 vs. 2021) | Factor | Contribution to Sales Change | | :--- | :--- | | Volume | (10.2)% | | Price | 22.2% | | Acquisition | 3.5% | | **Total** | **15.5%** | Key Financial Metrics (2021-2022) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Sales | $1,945.6 M | $1,684.6 M | | Gross Margin % | 16.2% | 16.3% | | Net Income | $171.9 M | $139.8 M | | Adjusted EBITDA | $308.5 M | $267.0 M | | Adjusted EBITDA Margin | 15.9% | 15.8% | | Diluted EPS | $5.92 | $4.81 | | Adjusted Diluted EPS | $6.28 | $5.15 | - The increase in Cost of Goods Sold was driven by **higher raw material prices**, the U.S. Amines acquisition, and increased plant spend[187](index=187&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with significant cash from operations and availability under its credit facility Cash Flow Summary (2021-2022) | (In thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Cash from Operating Activities | $273,601 | $218,849 | | Cash for Investing Activities | ($189,273) | ($67,562) | | Cash for Financing Activities | ($68,443) | ($146,793) | - As of December 31, 2022, the company had **$31 million in cash** and **$384 million of available capacity** under its revolving credit facility[206](index=206&type=chunk) - Capital expenditures were **$89.4 million in 2022**, with a forecast for 2023 of approximately **$110 million to $120 million**[227](index=227&type=chunk) - The company made cash contributions of **$20.0 million** to its defined benefit pension plan in 2022[209](index=209&type=chunk) [Critical Accounting Policies and Estimates](index=47&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management identifies several critical accounting policies requiring significant estimates, including inventory valuation, goodwill, and pensions - Inventories are primarily valued using the LIFO method; at year-end 2022, the carrying value was **$64.8 million lower than current costs**[230](index=230&type=chunk) - Goodwill stood at **$56.2 million** as of December 31, 2022, primarily due to the U.S. Amines acquisition[231](index=231&type=chunk) - The U.S. Amines acquisition added **$34 million in intangible assets**, primarily customer relationships[232](index=232&type=chunk) - Pension benefit calculations rely on actuarial assumptions, where a **25 basis point change in the discount rate** would impact the pension benefit obligation by about **$2.6-$2.7 million**[238](index=238&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate changes on its variable-rate debt, which is partially hedged with an interest rate swap - The company's main market risk is from **interest rate fluctuations** on its floating-rate Revolving Credit Facility[245](index=245&type=chunk) - AdvanSix utilizes a **$50 million notional value interest rate swap** to hedge its interest rate risk on approximately 43% of its borrowings[246](index=246&type=chunk) - A **25-basis point fluctuation** in interest rates would change the company's annual interest expense by approximately **$0.2 million**[247](index=247&type=chunk) [Financial Statements and Supplementary Data](index=51&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements and the independent auditor's unqualified opinion [Consolidated Financial Statements](index=54&type=section&id=Consolidated%20Financial%20Statements) The financial statements present the company's performance, showing sales of $1.95 billion and net income of $171.9 million for 2022 Consolidated Statement of Operations Highlights (Year Ended Dec 31, 2022) | Metric | Amount (in thousands) | | :--- | :--- | | Sales | $1,945,640 | | Cost of Goods Sold | $1,631,161 | | Gross Profit | $314,479 | | Income Before Taxes | $225,791 | | Net Income | $171,886 | | Diluted EPS | $5.92 | Consolidated Balance Sheet Highlights (As of Dec 31, 2022) | Metric | Amount (in thousands) | | :--- | :--- | | Total Current Assets | $440,928 | | Total Assets | $1,495,331 | | Total Current Liabilities | $393,492 | | Total Liabilities | $757,151 | | Total Stockholders' Equity | $738,180 | Consolidated Statement of Cash Flows Highlights (Year Ended Dec 31, 2022) | Metric | Amount (in thousands) | | :--- | :--- | | Net cash provided by operating activities | $273,601 | | Net cash used for investing activities | ($189,273) | | Net cash used for financing activities | ($68,443) | [Notes to Consolidated Financial Statements](index=59&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, customer concentration, debt, taxes, and the U.S. Amines acquisition - The company's largest customer, Shaw Industries Group Inc., accounted for **12% of total sales in 2022**[323](index=323&type=chunk) - The effective income tax rate was **23.9% in 2022**, compared to 24.5% in 2021[332](index=332&type=chunk) - As of December 31, 2022, the company had **$115 million outstanding** under its $500 million Revolving Credit Facility[353](index=353&type=chunk)[358](index=358&type=chunk) - The acquisition of U.S. Amines resulted in the recognition of **$38.6 million in goodwill** and **$34.0 million in intangible assets**[421](index=421&type=chunk)[422](index=422&type=chunk)[425](index=425&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=93&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable, indicating no changes in or disagreements with the company's accountants - Not Applicable[429](index=429&type=chunk) [Controls and Procedures](index=93&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of year-end 2022 - Management concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2022[430](index=430&type=chunk) - Management determined that the company maintained **effective internal control over financial reporting** as of December 31, 2022[433](index=433&type=chunk)[434](index=434&type=chunk) - The assessment of internal control over financial reporting **excluded the recently acquired U.S. Amines**[431](index=431&type=chunk) [Other Information](index=95&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[436](index=436&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=95&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[436](index=436&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=96&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2023 Proxy Statement - Required information regarding directors, executive officers, and corporate governance is **incorporated by reference** from the forthcoming 2023 Proxy Statement[438](index=438&type=chunk) [Executive Compensation](index=96&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's 2023 Proxy Statement - Required information on executive compensation is **incorporated by reference** from the forthcoming 2023 Proxy Statement[441](index=441&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=96&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's 2023 Proxy Statement - Required information on security ownership is **incorporated by reference** from the forthcoming 2023 Proxy Statement[442](index=442&type=chunk) [Certain Relationships and Related Transactions and Director Independence](index=96&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Information regarding related transactions and director independence is incorporated by reference from the 2023 Proxy Statement - Required information on related transactions and director independence is **incorporated by reference** from the forthcoming 2023 Proxy Statement[443](index=443&type=chunk) [Principal Accounting Fees and Services](index=96&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the 2023 Proxy Statement - Required information on principal accounting fees and services is **incorporated by reference** from the forthcoming 2023 Proxy Statement[444](index=444&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=97&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements and provides an index of all exhibits filed with the Form 10-K - This section provides an index of the financial statements and exhibits filed with the Form 10-K[446](index=446&type=chunk)[449](index=449&type=chunk) [Form 10-K Summary](index=97&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has elected not to include a Form 10-K summary - The Company has elected not to include a Form 10-K summary[447](index=447&type=chunk)

AdvanSix Inc. (NYSE:ASIX) Q3 2022 Earnings Conference Call November 4, 2022 9:00 AM ET Company Participants Erin Kane - President, Chief Executive Officer Michael Preston - Senior Vice President, Chief Financial Officer Adam Kressel - Vice President, Investor Relations and Treasurer Conference Call Participants Vincent Anderson - Stifel Charles Neivert - Piper Sandler David Silver - CL King Operator Good day and welcome to the AdvanSix third quarter 2022 earnings conference call. All participants will be ...

AdvanSix, Inc. (NYSE:ASIX) Q2 2022 Earnings Conference Call August 5, 2022 9:00 AM ET Company Participants Adam Kressel - Director, IR Erin Kane - CEO, President & Director Michael Preston - CFO & SVP Conference Call Participants Vincent Anderson - Stifel David Silver - CL King & Associates Charles Neivert - Piper Sandler & Co. Operator Good day and welcome to the AdvanSix Second Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a ...

Acquisition and Market Position - The company acquired U.S. Amines for approximately $97 million, enhancing its position in high-value markets such as agrochemicals and pharmaceuticals [97]. - The acquisition of U.S. Amines contributed approximately 5% to sales growth in the three months ended June 30, 2022 [100]. - Sales for the three months ended June 30, 2022, increased by $146.1 million (approximately 33.4%) compared to the prior year period, driven by favorable market-based pricing and the acquisition of U.S. Amines [100]. - Sales for the six months ended June 30, 2022, increased by $248.7 million (approximately 31%) compared to the prior year period, primarily due to favorable market-based pricing and the acquisition of U.S. Amines [101]. Financial Performance - Net income for the three months ended June 30, 2022, was $65.2 million, compared to $44.1 million in the prior year period, reflecting a significant increase [112]. - Adjusted net income (non-GAAP) for the six months ended June 30, 2022, was $133.6 million, up 72.0% from $77.7 million in the prior year [116]. - Basic EPS for the three months ended June 30, 2022, was $2.31, representing a 47.1% increase from $1.57 in the same quarter of 2021 [116]. - Adjusted EBITDA for the three months ended June 30, 2022, was $105.4 million, compared to $79.7 million in the prior year period, indicating improved operational performance [115]. - Gross margin percentage for the three months ended June 30, 2022, was 19.8%, an increase from 18.5% in the prior year period, attributed to favorable pricing impacts [105]. Costs and Expenses - Costs of goods sold for the three months ended June 30, 2022, increased by $120.0 million (approximately 34%) compared to the prior year period, mainly due to increased raw material prices and the impact of the U.S. Amines acquisition [103]. - Selling, general and administrative expenses for the three months ended June 30, 2022, decreased to $20.8 million, representing 3.6% of sales, down from 5.0% in the prior year period [106]. Cash Flow and Capital Expenditures - Cash provided by operating activities rose by $36 million year-over-year, driven by a $56 million increase in net income and a $16.8 million favorable cash impact from working capital [137]. - Cash used for investing activities surged by $103 million, primarily due to the acquisition of U.S. Amines for approximately $97 million [139]. - Capital expenditures are projected to be between $95 million and $105 million in 2022, compared to $57 million in 2021 [120]. - Capital expenditures for the six months ended June 30, 2022, amounted to $38.8 million, with total capital expenditures expected to be between $95 million and $105 million for the year [142]. Dividends and Share Repurchase - The company declared dividends totaling $0.145, $0.125, and $0.125 per share in August, May, and February 2022 respectively [99]. - The company declared a dividend of $0.145 per share on August 5, 2022, totaling approximately $4.1 million [127]. - The company repurchased a total of 3,884,263 shares for $112.8 million at an average price of $29.04 per share as of June 30, 2022 [124]. Tax and Regulatory Considerations - The effective tax rate for the three months ended June 30, 2022, was 23.5%, slightly lower than 23.8% in the prior year period, due to state tax adjustments [108]. - The company continues to monitor potential changes in U.S. tax laws that could impact its effective tax rate and cash flows from operations [111]. Operational Insights - The company is the world's largest single-site producer of ammonium sulfate fertilizer as of June 30, 2022, leveraging its Hopewell facility's scale and technology [87]. - The company’s ammonium sulfate product is positioned to deliver the most readily available sulfur and nitrogen to crops compared to other fertilizers [92]. - The company’s Nylon 6 resin prices are influenced by supply and demand trends, tracking global GDP growth over the long term [88]. - The company aims to develop higher-value, differentiated Nylon 6 products to capture growth in engineered plastics and packaging applications [89]. - The company’s production facilities are designed for maximum efficiency, but they face risks associated with material disruptions that could impact the overall supply chain [94]. - The company’s ammonium sulfate sales experience seasonality, with peak demand typically occurring in the first half of the year [93]. - The company’s integrated supply chain allows for the production of various chemical intermediates, with acetone being a significant product influenced by supply and demand dynamics [90]. Interest Rate and Debt Management - The company had one interest rate swap agreement with a notional amount of $50 million, converting floating rate payments to fixed rate for approximately 34% of borrowings [146]. - A 25-basis point fluctuation in interest rates would have resulted in an increase or decrease to interest expense of approximately $0.2 million [147]. - The company has a Consolidated Leverage Ratio financial covenant allowing it to net up to $75 million of cash with debt [120]. - The company is required to maintain a Consolidated Interest Coverage Ratio of not less than 3.00 to 1.00 under its credit agreement [134].