AdvanSix(US:ASIX)2023-08-04 15:01Financial Performance - AdvanSix reported sales of $428 million for 2Q23 [4], a decrease of 27% compared to the prior year [6, 8] - Adjusted EBITDA for 2Q23 was $66 million, with an Adjusted EBITDA Margin of 154% [4] This represents a 38% decrease in Adjusted EBITDA compared to 2Q22 [8] - The company's Net Income for 2Q23 was $327 million, a 46% decrease compared to $652 million in 2Q22 [4, 8] - Adjusted Diluted EPS for 2Q23 was $125, compared to $230 in 2Q22 [8] - Free Cash Flow for 2Q23 was $16 million [4] Market Dynamics - Global nylon pricing remains pressured due to soft industry conditions and unfavorable supply and demand [4] - North American acetone supply and demand continues to be balanced [4] - Global Composite CPL-BNZ Spread decreased by 31% year-over-year in 2Q23, while Asia CPL-BNZ Spread decreased by 21% [14] - Corn Belt Ammonium Sulfate (AS) price decreased by 45% year-over-year in 2Q23 [14] - Acetone prices also experienced declines, with Sm/Med Buyer Price down 23% and Large Buyer Price down 28% year-over-year [14] Capital Allocation and Sustainability - AdvanSix returned approximately $19 million of cash to shareholders in 2Q23, including ~$15 million in share repurchases and ~$4 million in dividends [4] - The quarterly cash dividend was increased by 10% to $016 per share [4] - The company introduced a new line of Aegis® Nylon 6 resin products certified as 100% Post-Consumer Recycled (PCR) [4, 21] Outlook - AdvanSix anticipates a sequential domestic pricing decline for North American ammonium sulfate in 3Q23 due to typical seasonality [24] - The company expects pre-tax income impact of planned plant turnarounds to be $25 million to $30 million in 3Q23, totaling $28 million to $33 million for the full year [24] - Capex is expected to be $110 million to $120 million for 2023 [24]