AdvanSix(ASIX) - 2024 Q4 - Annual Results

Sales Performance - 4Q24 sales were $329 million, down 14% year-over-year, primarily due to a 16% decrease in sales volume[8] - Full year 2024 sales totaled $1.52 billion, a decrease of approximately 1% compared to 2023, driven by a 2% decrease in volume[4] - Total sales for the three months ended December 31, 2024, were $329,063,000, a decrease from $382,208,000 in the same period of 2023, representing a decline of approximately 13.9%[26] Net Income and Earnings - Net income for FY 2024 was $44.1 million, down $10.5 million from the prior year, with diluted earnings per share of $1.62[5] - Net income for the twelve months ended December 31, 2024, was $44,149,000, down from $54,623,000 in 2023, indicating a decrease of about 19.2%[26] - Net income for Q4 2024 was $352 million, a significant recovery from a loss of $5,082 million in Q4 2023[34] - Adjusted net income for the twelve months ended December 31, 2024, was $53,318 million, compared to $59,929 million in 2023[35] - Basic EPS for the twelve months ended December 31, 2024, was $1.65, down from $2.00 in 2023, while diluted EPS was $1.62 compared to $1.95[35] EBITDA and Margins - Adjusted EBITDA for FY 2024 was $142.1 million, a decrease of $11.4 million year-over-year, resulting in an adjusted EBITDA margin of 9.4%[4] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $142,116 million, down from $153,559 million in 2023, reflecting a margin of 9.4% compared to 10.0%[34] Cash Flow and Liquidity - Cash flow from operations for FY 2024 increased to $135.4 million, up $17.9 million from the previous year[4] - Cash and cash equivalents at the end of the period were $19,564,000, down from $29,768,000 at the end of 2023, reflecting a decrease of approximately 34.3%[30] - Free cash flow for the three months ended December 31, 2024, was $29,816,000, compared to $21,817,000 in the same period of 2023, showing an increase of about 36.5%[32] - The company reported a net cash provided by operating activities of $64,165,000 for the three months ended December 31, 2024, compared to $60,169,000 in the same period of 2023, an increase of approximately 3.3%[30] Expenses and Liabilities - The company’s selling, general and administrative expenses for the twelve months ended December 31, 2024, were $94,023,000, slightly down from $95,538,000 in 2023, indicating a decrease of about 1.6%[26] - The company’s interest expense for the twelve months ended December 31, 2024, was $11,311,000, up from $7,485,000 in 2023, reflecting an increase of approximately 51.5%[26] - Total liabilities rose to $820,270,000 as of December 31, 2024, compared to $756,783,000 in 2023, representing an increase of about 8.4%[25] Future Projections - The company expects a 10% increase in sales volume for 2025, despite a slower start to the year[14] - Capital expenditures are projected to be between $140 million and $160 million in 2025, reflecting growth projects including the SUSTAIN program[14] - The anticipated pre-tax income impact of plant turnarounds is expected to be $25 to $30 million in 2025, down from approximately $58 million in 2024[14] Dividends - A quarterly cash dividend of $0.16 per share was declared, payable on March 24, 2025[16] Assets and Retained Earnings - Total assets increased to $1,594,920,000 as of December 31, 2024, from $1,496,020,000 in 2023, marking an increase of approximately 6.6%[25] - The company’s retained earnings increased to $631,541,000 as of December 31, 2024, from $605,067,000 in 2023, showing an increase of about 4.4%[25] Other Financial Impacts - The company incurred a pre-tax loss of approximately $1.2 million related to the exit from the Oben Holding Group S.A. alliance in Q3 2023[34] - The company reported a net pre-tax loss of $4.5 million from several transactions in 2023, including the exit from low-margin oximes products[34] - The company experienced an incremental unfavorable impact of approximately $15 million to pre-tax income due to maintenance expenses during a planned plant turnaround[40]