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Mar 31, 2023
Advansix Q1 2023 Earnings Report
Delivered solid earnings results amid a dynamic macro environment.
Key Takeaways
AdvanSix reported sales of $401 million, a 16% decrease compared to the prior year. Earnings per share (EPS) was $1.22, and adjusted EPS was $1.30. The company returned $18 million of cash to shareholders through repurchases and dividends and announced a planned multi-year investment to expand granular ammonium sulfate production.
Sales decreased by approximately 16% versus prior year, driven by lower volume and unfavorable market-based pricing.
Net Income decreased to $35.0 million, a decrease of $28.1 million versus the prior year.
Adjusted EBITDA decreased to $65.4 million, a decrease of $37.8 million versus the prior year.
Free Cash Flow was ($23.0) million, a decrease of $51.2 million versus the prior year.
Revenue by Segment
Forward Guidance
AdvanSix anticipates strong agriculture and fertilizer industry fundamentals through the domestic planting season and expects improvement in 2Q23 ammonium sulfate domestic sales volume. They also foresee balanced supply and demand for North American acetone and continued headwinds in consumer durables and building and construction end markets. Capital expenditures are expected to be $110 million to $120 million in 2023, and the pre-tax income impact of planned plant turnarounds is projected to be $28 million to $33 million.
Positive Outlook
- Expect strong underlying agriculture and fertilizer industry fundamentals to continue through the domestic planting season
- Anticipate improvement in 2Q23 ammonium sulfate domestic sales volume in a lower nitrogen and raw material pricing environment
- Expect balanced supply and demand conditions for North American acetone to continue
Challenges Ahead
- Expect continued headwinds in consumer durables and building and construction end markets across nylon and other chemical intermediates
- Continue to expect Capital Expenditures of $110 million to $120 million in 2023, reflecting increased spend due to critical infrastructure, other maintenance, and growth and cost savings projects
- Continue to expect pre-tax income impact of planned plant turnarounds to be $28 million to $33 million in 2023 versus approximately $50 million in 2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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