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AdvanSix(ASIX) - 2024 Q3 - Quarterly Results
ASIXAdvanSix(ASIX)2024-11-01 10:30

Financial Performance - Sales for Q3 2024 reached 398million,a23398 million, a 23% increase compared to the prior year, driven by an 11% increase in volume, 8% higher raw material pass-through pricing, and a 5% favorable impact from market-based pricing[2]. - Net income for Q3 2024 was 22.3 million, an increase of 30.2millionfromtheprioryear,withadjustedEBITDAof30.2 million from the prior year, with adjusted EBITDA of 53.2 million, up 45.8millionyear−over−year[2][3].−AdjustedEBITDAmarginimprovedto13.445.8 million year-over-year[2][3]. - Adjusted EBITDA margin improved to 13.4%, an increase of 1,110 basis points compared to the prior year[2]. - Total sales for the three months ended September 30, 2024, increased to 398,187 thousand, up 23.4% from 322,907thousandinthesameperiodof2023[20].−NetincomeforthethreemonthsendedSeptember30,2024,was322,907 thousand in the same period of 2023[20]. - Net income for the three months ended September 30, 2024, was 22,266 thousand, compared to a net loss of 7,977thousandinthesameperiodof2023[20].−BasicearningspershareforthethreemonthsendedSeptember30,2024,was7,977 thousand in the same period of 2023[20]. - Basic earnings per share for the three months ended September 30, 2024, was 0.83, a significant improvement from a loss of 0.29pershareinthesameperiodof2023[20].−AdjustedEBITDAforthethreemonthsendedSeptember30,2024,was0.29 per share in the same period of 2023[20]. - Adjusted EBITDA for the three months ended September 30, 2024, was 53.161 million, significantly up from 7.321millionintheprioryear[24].−AdjustedNetincomefortheninemonthsendedSeptember30,2024,was7.321 million in the prior year[24]. - Adjusted Net income for the nine months ended September 30, 2024, was 50.961 million, down from 62.512millioninthepreviousyear[25].−BasicEPSforthethreemonthsendedSeptember30,2024,was62.512 million in the previous year[25]. - Basic EPS for the three months ended September 30, 2024, was 0.83, a recovery from a loss of 0.29inthesameperiodlastyear[25].CashFlowandAssets−Cashflowfromoperationswas0.29 in the same period last year[25]. Cash Flow and Assets - Cash flow from operations was 57.3 million, up 36.4millionfromtheprioryear,whilefreecashflowincreasedto36.4 million from the prior year, while free cash flow increased to 26.8 million, a 31.1millionimprovement[2][6].−FreecashflowfortheninemonthsendedSeptember30,2024,was31.1 million improvement[2][6]. - Free cash flow for the nine months ended September 30, 2024, was 26,760 thousand, compared to a negative free cash flow of (4,329)thousandinthesameperiodof2023[23].−Cashandcashequivalentsattheendoftheperiodwere(4,329) thousand in the same period of 2023[23]. - Cash and cash equivalents at the end of the period were 17,298 thousand, down from 22,110thousandattheendofthesameperiodin2023[21].−Totalcurrentassetsdecreasedto22,110 thousand at the end of the same period in 2023[21]. - Total current assets decreased to 395,773 thousand as of September 30, 2024, from 419,804thousandasofDecember31,2023[18].−Totalliabilitiesdecreasedto419,804 thousand as of December 31, 2023[18]. - Total liabilities decreased to 743,827 thousand as of September 30, 2024, from 756,783thousandasofDecember31,2023[18].−Totalstockholders′equityincreasedto756,783 thousand as of December 31, 2023[18]. - Total stockholders' equity increased to 766,408 thousand as of September 30, 2024, from 739,237thousandasofDecember31,2023[18].−Thecompany’snetcashprovidedbyoperatingactivitiesforthethreemonthsendedSeptember30,2024,was739,237 thousand as of December 31, 2023[18]. - The company’s net cash provided by operating activities for the three months ended September 30, 2024, was 57,250 thousand, compared to 20,802thousandinthesameperiodof2023[21].CapitalExpendituresandInvestments−CapitalexpendituresforQ32024were20,802 thousand in the same period of 2023[21]. Capital Expenditures and Investments - Capital expenditures for Q3 2024 were 30.5 million, an increase of 5.4millionfromtheprioryear,reflectingplannedincreasedspendingonmaintenanceandenterpriseprograms[6].−Thecompanyexpectscapitalexpendituresforthefullyeartobebetween5.4 million from the prior year, reflecting planned increased spending on maintenance and enterprise programs[6]. - The company expects capital expenditures for the full year to be between 135 million and 140million,influencedbymaintenanceandgrowthprojects[7].−Thecompanyreportedcapitalexpendituresincludedinaccountspayableof140 million, influenced by maintenance and growth projects[7]. - The company reported capital expenditures included in accounts payable of 15,018 thousand for the three months ended September 30, 2024[21]. - The company was awarded a 12milliongrantfromtheUSDAtosupporttheexpansionofgranularammoniumsulfateproduction[1][3].FutureOutlook−TheoutlookforQ42024includesabalancedtotightglobalacetonesupplyanddemand,withexpectationsformodestimprovementinNorthAmericannylonindustryconditions[7].−Theplannedplantturnaroundin2024isexpectedtohaveapre−taxincomeimpactofapproximately12 million grant from the USDA to support the expansion of granular ammonium sulfate production[1][3]. Future Outlook - The outlook for Q4 2024 includes a balanced to tight global acetone supply and demand, with expectations for modest improvement in North American nylon industry conditions[7]. - The planned plant turnaround in 2024 is expected to have a pre-tax income impact of approximately 58 million, primarily from ammonia operations[27]. - The company experienced a pre-tax loss of approximately 1.2millionrelatedtotheexitfromtheObenHoldingGroupS.A.allianceduringQ32023[24].−Thecompanyreportedanincrementalunfavorableimpactofapproximately1.2 million related to the exit from the Oben Holding Group S.A. alliance during Q3 2023[24]. - The company reported an incremental unfavorable impact of approximately 15 million to pre-tax income due to maintenance at the Frankford phenol plant during the multi-site planned plant turnaround[27]. Shareholder Returns - A quarterly cash dividend of $0.16 per share was declared, payable on November 26, 2024[10]. - The company remains confident in its growth prospects and is committed to delivering sustainable long-term value to shareholders[8].