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Mar 31, 2024
Advansix Q1 2024 Earnings Report
AdvanSix's first quarter results were impacted by an operational disruption, resulting in decreased sales and profitability.
Key Takeaways
AdvanSix reported a decrease in sales by 16% compared to the prior year, primarily due to unfavorable market-based pricing and a decrease in volume caused by an operational disruption. This led to a net loss of $17.4 million and a decrease in adjusted EBITDA to $0.6 million.
Sales decreased by 16% due to unfavorable pricing and reduced volume from operational disruption.
Net loss was ($17.4) million, a decrease of $52.4 million year-over-year.
Adjusted EBITDA decreased by $64.8 million to $0.6 million.
Free cash flow was ($71.6) million, a decrease of $48.6 million year-over-year.
Revenue by Segment
Forward Guidance
AdvanSix anticipates improvements in ammonium sulfate pricing, balanced to tight acetone supply, and modest improvement in nylon industry spreads. Capital expenditures are expected to be $140 to $150 million, and the pre-tax income impact of plant turnarounds is projected to be $38 to $43 million.
Positive Outlook
- Expect second quarter 2024 ammonium sulfate sequential pricing improvement amid continued sulfur demand growth and tight North American supply
- Expect balanced to tight global acetone supply and demand conditions
- Expect nylon industry spreads to modestly improve through 2024 off 2023 trough levels
Challenges Ahead
- Continue to expect Capital Expenditures of $140 million to $150 million in 2024, reflecting increased spend to address critical enterprise risk mitigation and growth projects including our SUSTAIN (Sustainable U.S. Sulfate to Accelerate Increased Nutrition) program
- Continue to expect pre-tax income impact of planned plant turnarounds to be $38 to $43 million in 2024; Shifting larger planned turnaround to 4Q24 from 3Q24
Historical Earnings Impact
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Avg. Return Before/After Earnings
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