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Mar 31, 2020
Advansix Q1 2020 Earnings Report
AdvanSix's Q1 2020 financial results were announced, showing resilience despite challenging nylon industry conditions.
Key Takeaways
AdvanSix reported a 4% decrease in sales compared to the prior year, with sales totaling $303 million. Earnings per share were $0.31, and the company generated $20 million in cash flow from operations. The business was designated as essential during the COVID-19 response, and proactive measures were taken to mitigate its impacts.
Sales decreased by approximately 4% versus the prior year, with higher volume and raw material pass-through pricing offset by unfavorable market-based pricing.
Net income was $8.6 million, a decrease of $11.6 million versus the prior year.
EBITDA was $28.6 million, a decrease of $13.4 million versus the prior year.
Cash flow from operations was $19.7 million, a decrease of $22.4 million versus the prior year.
Revenue by Segment
Forward Guidance
Nylon demand weakness is expected to continue, while ammonium sulfate and acetone demand are expected to remain firm. Capital expenditures are expected to be $80 to $90 million in 2020. The pre-tax income impact of planned plant turnarounds is expected to be $30 to $35 million in 2020.
Positive Outlook
- Steady ammonium sulfate fertilizer demand expected through domestic planting season
- Improved acetone industry supply and demand balance following final, affirmative anti-dumping duties
Challenges Ahead
- Nylon demand weakness expected to continue; COVID-19 further challenging industry conditions
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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