AdvanSix(ASIX) - 2024 Q2 - Quarterly Results

Financial Performance - Sales for Q2 2024 were $453 million, a 6% increase compared to the prior year, driven by a 5% increase in volume and 1% favorable net pricing[2]. - Net income reached$ 38.9 million, up $6.2 million from the previous year, with adjusted earnings per share of$ 1.55, a 24% increase year-over-year[2][6]. - Adjusted EBITDA was $78.1 million, reflecting a 19% increase from the prior year, with an adjusted EBITDA margin of 17.2%, up 180 basis points[2][3]. - Total sales for the three months ended June 30, 2024, were$ 453,479,000, an increase of 5.8% compared to $427,940,000 for the same period in 2023[19]. - Net income for the three months ended June 30, 2024, was$ 38,927,000, representing a 19% increase from $32,728,000 in the prior year[19]. - Basic earnings per share for the three months ended June 30, 2024, were$ 1.45, up from $1.19 for the same period in 2023, reflecting a 21.8% increase[19]. - Adjusted Net Income for the three months ended June 30, 2024, was$ 42,090 million, compared to $35,198 million in the prior year, reflecting a 19% increase[28]. - Adjusted EBITDA for the three months ended June 30, 2024, was$ 78,141 million, compared to $65,785 million in the same period last year, marking a 19% increase[27]. - Adjusted EBITDA Margin improved to 17.2% for the three months ended June 30, 2024, up from 15.4% in the same quarter of 2023[27]. - Basic EPS for the three months ended June 30, 2024, was$ 1.45, an increase from $1.19 in the same period of 2023, representing a growth of 22%[28]. - Diluted EPS for the three months ended June 30, 2024, was$ 1.43, compared to $1.16 in the prior year, reflecting a 23% increase[28]. - Adjusted EPS - Basic for the three months ended June 30, 2024, was$ 1.57, up from $1.28 in the same period of 2023, reflecting a growth of 23%[28]. Cash Flow and Capital Expenditures - Cash flow from operations was$ 50.2 million, an increase of 43% year-over-year, while free cash flow was $16.7 million, up$ 1.0 million[2][6]. - Capital expenditures for the quarter were $33.5 million, an increase of$ 14.2 million compared to the prior year, reflecting planned spending on maintenance and growth projects[2][6]. - Capital expenditures for 2024 are expected to be between $140 million and$ 150 million, focusing on risk mitigation and growth projects[7]. - Free cash flow for the three months ended June 30, 2024, was $16,705,000, compared to$ 15,713,000 for the same period in 2023, an increase of 6.3%[25]. Shareholder Returns - The company returned $8 million to shareholders through dividends and stock repurchases in Q2 2024[2]. - The Board of Directors declared a quarterly cash dividend of$ 0.16 per share, payable on August 27, 2024[8]. Assets and Liabilities - Total current assets decreased to $378,592,000 as of June 30, 2024, down from$ 419,804,000 at December 31, 2023, a decline of 9.8%[16]. - Total liabilities decreased to $731,353,000 as of June 30, 2024, compared to$ 756,783,000 at December 31, 2023, a reduction of 3.4%[16]. - Cash and cash equivalents at the end of the period were $12,105,000, down from$ 29,768,000 at the end of 2023, a decrease of 59.3%[16]. - The company’s retained earnings increased to $617,723,000 as of June 30, 2024, up from$ 605,067,000 at December 31, 2023, reflecting a growth of 2.7%[16]. Market Outlook - The company anticipates higher ammonium sulfate pricing in Q3 2024 due to robust demand, although a sequential pricing decline is expected due to typical seasonality[7]. - The company is positioned for favorable second-half performance, supported by a constructive global acetone supply and demand environment[7]. Expenses - Total costs and expenses for the three months ended June 30, 2024, were $401,407,000, up from$ 384,657,000 in the same period last year, an increase of 4.3%[19]. - The company reported a net cash provided by operating activities of $50,200,000 for the three months ended June 30, 2024, compared to$ 35,004,000 for the same period in 2023, an increase of 43.4%[22]. - The company reported an interest expense of $3,514 million for the three months ended June 30, 2024, compared to$ 1,954 million in the same period last year, indicating a significant increase[27].