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Dec 31, 2022
Advansix Q4 2022 Earnings Report
Reported a decrease in sales but an increase in net income and adjusted EBITDA compared to the prior year.
Key Takeaways
AdvanSix reported Q4 2022 financial results, with sales of $404 million, a 5% decrease year-over-year. However, net income increased to $33.6 million, and adjusted EBITDA rose to $66.6 million. The company's cash flow from operations was $69.6 million, and it repurchased 284,201 shares for approximately $10 million during the quarter. The Board of Directors authorized an additional $75 million share repurchase program.
Sales decreased by 5% year-over-year to $404 million due to lower volume, partially offset by favorable market-based pricing and contributions from acquisitions.
Net income increased to $33.6 million, up from $23.6 million in the prior year.
Adjusted EBITDA increased to $66.6 million, driven by higher market-based pricing and the favorable impact of planned plant turnarounds.
Cash flow from operations increased to $69.6 million, primarily due to higher net income.
Forward Guidance
AdvanSix expects strong agriculture and fertilizer industry fundamentals to continue, along with balanced supply and demand conditions for North American acetone. However, they anticipate 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
- Expect balanced supply and demand conditions for North American acetone
- Diverse product portfolio
- Resilience of business model
- Healthy balance sheet to deploy capital and maximize shareholder value
Challenges Ahead
- Expect headwinds in consumer durables and building and construction end markets across nylon and other chemical intermediates
- 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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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