ASIX AdvanSix Inc

4Q24 Sales of $329 million, down 14% versus prior year

4Q24 Earnings Per Share of $0.01; Adjusted Earnings Per Share of $0.09

4Q24 Cash Flow from Operations of $64 million, up $4 million versus prior year

Progressing 45Q carbon capture tax credits with initial $9.7 million claimed in 4Q24

Final insurance settlement proceeds related to 2019 PES supplier shutdown

AdvanSix (NYSE: ASIX), a diversified chemistry company, today announced its financial results for the fourth quarter and full year ending December 31, 2024. Overall, in 2024, the Company achieved commercial success and advanced targeted growth initiatives, while navigating operational challenges in the year.

Full Year 2024 Summary

• Sales down approximately 1% versus prior year driven by an approximately 2% decrease in volume primarily as a result of disclosed operational disruptions, partially offset by a 1% favorable net pricing impact
• Net Income of $44.1 million, a decrease of $10.5 million versus the prior year
• Adjusted EBITDA of $142.1 million, a decrease of $11.4 million versus the prior year
• Adjusted EBITDA Margin of 9.4%, down 60 bps versus the prior year
• Cash Flow from Operations of $135.4 million, an increase of $17.9 million versus the prior year
• Capital Expenditures of $133.7 million, an increase of $26.3 million versus the prior year
• Free Cash Flow of $1.7 million, a decrease of $8.5 million versus the prior year

Summary full year 2024 financial results for the Company are included below:

($ in Thousands, Except Earnings Per Share)

FY 2024

 

FY 2023

Sales

$1,517,557

 

$1,533,599

Net Income

$44,149

 

$54,623

Diluted Earnings Per Share

$1.62

 

$1.95

Adjusted Diluted Earnings Per Share (1)

$1.96

 

$2.14

Adjusted EBITDA (1)

142,116

 

153,559

Adjusted EBITDA Margin % (1)

9.4%

 

10.0%

Cash Flow from Operations

135,413

 

117,550

Free Cash Flow (1)(2)

1,691

 

10,173

(1) See “Non-GAAP Measures” included in this press release for non-GAAP reconciliations

(2) Net cash provided by operating activities less capital expenditures

Sales by product line and approximate percentage of total sales are included below:

($ in Thousands)

FY 2024

 

FY 2023 (1)

 

Sales

 

% of Total

 

Sales

 

% of Total

Nylon

$

348,501

 

23%

 

$

356,632

 

23%

Caprolactam

 

276,303

 

18%

 

 

298,375

 

20%

Plant Nutrients

 

458,152

 

30%

 

 

477,929

 

31%

Chemical Intermediates

 

434,601

 

29%

 

 

400,663

 

26%

Total

$

1,517,557

 

100%

 

$

1,533,599

 

100%

(1) Previously reported amounts have been updated for a reclassification to align more closely with the Company's current sales structure, resulting in an increase to Plant Nutrients and a decrease to Chemical Intermediates for FY 2023. Total revenue amounts were not impacted.

“Our diverse portfolio, advantage of our business model and favorable industry dynamics - particularly in Plant Nutrients and Acetone - enabled us to successfully navigate a challenging operational year and deliver full year Adjusted EBITDA of $142 million, Adjusted Earnings Per Share of $1.96, and positive Free Cash Flow,” said Erin Kane, president and CEO of AdvanSix. “We funded key growth and enterprise initiatives including our SUSTAIN (Sustainable U.S. Sulfate to Accelerate Increased Nutrition) program, returned cash to shareholders and maintained our healthy balance sheet. As we worked to deliver outcomes in the year, we also made significant progress on two key enterprise developments. First, we have successfully concluded our multi-year efforts to recover losses associated with the 2019 PES cumene supplier shutdown, including $5.3 million of insurance proceeds in the fourth quarter of 2024 and a final omnibus settlement of approximately $26 million in the first quarter of 2025. Second, we were pleased to be one of the first industrial companies to be recognized for our use of carbon capture technologies in our manufacturing process, claiming $9.7 million in 45Q tax credits for the 2018 and 2019 tax years, representing a meaningful medium- to long-term value driver as we continue to pursue these credits for subsequent periods."

Fourth Quarter 2024 Summary

• Sales down approximately 14% versus prior year driven by an approximately 16% decrease in volume primarily as a result of the extended plant turnaround, partially offset by 2% favorable impact of market-based pricing
• Net Income of $0.4 million, an increase of $5.4 million versus the prior year
• Adjusted EBITDA of $10.2 million, a decrease of $4.9 million versus the prior year
• Adjusted EBITDA Margin of 3.1%, down 90 bps versus the prior year
• Cash Flow from Operations of $64.2 million, an increase of $4.0 million versus the prior year
• Capital Expenditures of $34.3 million, a decrease of $4.0 million versus the prior year
• Free Cash Flow of $29.8 million, an increase of $8.0 million versus the prior year
• $9.7 million in 45Q carbon capture tax credits for the 2018 and 2019 tax periods

Summary fourth quarter 2024 financial results for the Company are included below:

($ in Thousands, Except Earnings Per Share)

4Q 2024

 

4Q 2023

Sales

$329,063

 

$382,208

Net Income (Loss)

352

 

(5,082)

Diluted Earnings Per Share

$0.01

 

($0.19)

Adjusted Diluted Earnings Per Share (1)

$0.09

 

($0.10)

Adjusted EBITDA (1)

10,219

 

15,099

Adjusted EBITDA Margin % (1)

3.1%

 

4.0%

Cash Flow from Operations

64,165

 

60,169

Free Cash Flow (1)(2)

29,816

 

21,817

(1) See “Non-GAAP Measures” included in this press release for non-GAAP reconciliations

(2) Net cash provided by operating activities less capital expenditures

Sales of $329 million in the quarter decreased approximately 14% versus the prior year. Sales volume decreased approximately 16% primarily driven by the delayed ramp to full operating rates following our fourth quarter 2024 planned plant turnaround. Market-based pricing was favorable by 2%, including continued strength in ammonium sulfate and acetone.

Sales by product line and approximate percentage of total sales are included below:

($ in Thousands)

4Q 2024

 

4Q 2023 (1)

 

Sales

 

% of Total

 

Sales

 

% of Total

Nylon

$

67,172

 

21%

 

$

78,251

 

20%

Caprolactam

 

57,216

 

17%

 

 

82,508

 

22%

Plant Nutrients

 

102,566

 

31%

 

 

119,119

 

31%

Chemical Intermediates

 

102,109

 

31%

 

 

102,330

 

27%

Total

$

329,063

 

100%

 

$

382,209

 

100%

(1) Previously reported amounts have been updated for a reclassification to align more closely with the Company's current sales structure, resulting in an increase to Plant Nutrients and a decrease to Chemical Intermediates for 4Q 2023. Total revenue amounts were not impacted.

Adjusted EBITDA of $10.2 million in the quarter decreased $4.9 million versus the prior year primarily driven by the timing and impact of plant turnarounds, partially offset by changes in sales mix including lower export volumes, favorable pricing, net of raw material costs, and insurance claim proceeds.

Adjusted earnings per share of $0.09 increased $0.19 versus the prior year driven primarily by the factors discussed above as well as $9.7 million in 45Q carbon capture tax credits for the 2018 and 2019 tax periods.

Cash flow from operations of $64.2 million in the quarter increased $4.0 million versus the prior year primarily due to the favorable impact of changes in working capital, including higher ammonium sulfate pre-buy cash advances. Capital expenditures of $34.3 million in the quarter decreased $4.0 million versus the prior year.

Outlook

• Strong sulfur nutrition demand and tight North American ammonium sulfate supply expected to support sulfur premiums at or near high end of historical range; Anticipated higher raw material prices impacting fertilizer margins
• Balanced global acetone supply and demand conditions expected to support industry spreads above cycle averages
• Expect slower recovery off the trough for North American nylon industry conditions amid stable end market demand and increased domestic competitive pressure
• Expect Capital Expenditures of $140 to $160 million in 2025, reflecting the planned progression of growth projects including our SUSTAIN (Sustainable U.S. Sulfate to Accelerate Increased Nutrition) program, and refined execution timing to address critical enterprise risk mitigation
• Expect pre-tax income impact of plant turnarounds to be $25 to $30 million in 2025 versus approximately $58 million in 2024
• Final omnibus settlement of approximately $26 million in 1Q25 related to PES supplier shutdown; Total of approximately $39 million aggregated insurance proceeds since 2019 event

“While the year has been off to a slower start, particularly with approximately 25% of our portfolio exposed to domestic building and construction which remains subdued, we anticipate meaningful year-over-year earnings improvement in 2025. This is underpinned by operational and commercial excellence, with an expected approximately 10% sales volume increase for the year. We remain focused on improving through-cycle profitability, which requires us to drive productivity, optimize our regional and product sales mix and continue to promote the value proposition of our differentiated product portfolio. The broader macro backdrop for the industries we serve remains largely favorable overall with strong sulfur premiums supporting Plant Nutrients and a constructive global acetone supply and demand environment, which should serve as a counterbalance to an anticipated slower recovery across our Nylon Solutions business. We continue to protect our healthy balance sheet enabling our capital allocation framework to provide optionality for further value creation. We remain confident in the future prospects for AdvanSix and are committed to delivering sustainable long-term value to our shareholders,” concluded Kane.

Dividend

The Company's Board of Directors declared a quarterly cash dividend of $0.16 per share on the Company's common stock. The dividend is payable on March 24, 2025 to stockholders of record as of the close of business on March 10, 2025.

Conference Call Information

AdvanSix will discuss its results during its investor conference call today starting at 9:30 a.m. ET. To participate on the conference call, dial (844) 855-9494 (domestic) or (412) 858-4602 (international) approximately 10 minutes before the 9:30 a.m. ET start, and tell the operator that you are dialing in for AdvanSix’s fourth quarter 2024 earnings call. The live webcast of the investor call as well as related presentation materials can be accessed at http://investors.advansix.com. Investors can hear a replay of the conference call from 12 noon ET on February 21 until 12 noon ET on February 28 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international). The access code is 6798006.

About AdvanSix

AdvanSix is a diversified chemistry company that produces essential materials for our customers in a wide variety of end markets and applications that touch people’s lives. Our integrated value chain of our five U.S.-based manufacturing facilities plays a critical role in global supply chains and enables us to innovate and deliver essential products for our customers across building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives, electronics and other end markets. Guided by our core values of Safety, Integrity, Accountability and Respect, AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, plant nutrients, and chemical intermediates. More information on AdvanSix can be found at http://www.advansix.com.

Forward Looking Statements

This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or developments that our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements may be identified by words such as "expect," "anticipate," "estimate," “outlook,” "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" and other variations or similar terminology and expressions. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and difficult to predict, which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: general economic and financial conditions in the U.S. and globally; the potential effects of inflationary pressures, changes in interest rates, labor market shortages and supply chain issues; instability or volatility in financial markets or other unfavorable economic or business conditions caused by geopolitical concerns, including as a result of uncertainty resulting from new or proposed regulatory, trade or other policies of the new U.S. presidential administration, and the conflict between Russia and Ukraine, the conflict in Israel and Gaza and related uncertainty in the surrounding area, and the possible expansion of such conflicts; the effect of any of the foregoing on our customers’ demand for our products and our suppliers’ ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.; our ability to sell and provide our goods and services; the ability of our customers to pay for our products; any closures of our and our customers’ offices and facilities; risks associated with increased phishing, compromised business emails and other cybersecurity attacks, data privacy incidents and disruptions to our technology infrastructure; risks associated with operating with a reduced workforce; risks associated with our indebtedness including compliance with financial and restrictive covenants, and our ability to access capital on reasonable terms, at a reasonable cost, or at all, due to economic conditions or otherwise; the impact of scheduled turnarounds and significant unplanned downtime and interruptions of production or logistics operations as a result of mechanical issues or other unanticipated events such as fires, severe weather conditions, natural disasters, pandemics and geopolitical conflicts and related events; price fluctuations, cost increases and supply of raw materials; our operations and growth projects requiring substantial capital; growth rates and cyclicality of the industries we serve including global changes in supply and demand; failure to develop and commercialize new products or technologies; loss of significant customer relationships; adverse trade and tax policies; extensive environmental, health and safety laws that apply to our operations; hazards associated with chemical manufacturing, storage and transportation; litigation associated with chemical manufacturing and our business operations generally; inability to acquire and integrate businesses, assets, products or technologies; protection of our intellectual property and proprietary information; prolonged work stoppages as a result of labor difficulties or otherwise; failure to maintain effective internal controls; our ability to declare and pay quarterly cash dividends and the amounts and timing of any future dividends; our ability to repurchase our common stock and the amount and timing of any future repurchases; disruptions in supply chain, transportation and logistics; potential for uncertainty regarding qualification for tax treatment of our spin-off; fluctuations in our stock price; and changes in laws or regulations applicable to our business. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our filings with the Securities and Exchange Commission (SEC), including the risk factors in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, as updated in subsequent reports filed with the SEC.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures intended to supplement, not to act as substitutes for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in this press release. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. Non-GAAP measures in this press release may be calculated in a way that is not comparable to similarly-titled measures reported by other companies.

AdvanSix Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands, except share and per share amounts)

 

 

December 31, 2024

 

December 31, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

19,564

 

 

$

29,768

 

Accounts and other receivables – net

 

145,673

 

 

 

165,393

 

Inventories – net

 

212,386

 

 

 

211,831

 

Taxes receivable

 

503

 

 

 

1,434

 

Other current assets

 

8,990

 

 

 

11,378

 

Total current assets

 

387,116

 

 

 

419,804

 

 

 

 

 

Property, plant and equipment – net

 

917,858

 

 

 

852,642

 

Operating lease right-of-use assets

 

153,438

 

 

 

95,805

 

Goodwill

 

56,192

 

 

 

56,192

 

Intangible assets

 

43,144

 

 

 

46,193

 

Other assets

 

37,172

 

 

 

25,384

 

Total assets

$

1,594,920

 

 

$

1,496,020

 

 

 

 

 

LIABILITIES

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

228,761

 

 

$

259,068

 

Accrued liabilities

 

47,264

 

 

 

44,086

 

Operating lease liabilities – short-term

 

42,493

 

 

 

32,053

 

Income taxes payable

 

1,047

 

 

 

8,033

 

Deferred income and customer advances

 

37,538

 

 

 

15,678

 

Total current liabilities

 

357,103

 

 

 

358,918

 

 

 

 

 

Deferred income taxes

 

145,299

 

 

 

151,059

 

Operating lease liabilities – long-term

 

111,400

 

 

 

63,961

 

Line of credit – long-term

 

195,000

 

 

 

170,000

 

Postretirement benefit obligations

 

—

 

 

 

3,660

 

Other liabilities

 

11,468

 

 

 

9,185

 

Total liabilities

 

820,270

 

 

 

756,783

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

Common stock, par value $0.01; 200,000,000 shares authorized; 32,989,165 shares issued and 26,737,036 outstanding at December 31, 2024; 32,598,946 shares issued and 26,750,471 outstanding at December 31, 2023

 

330

 

 

 

326

 

Preferred stock, par value $0.01; 50,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2024 and December 31, 2023

 

—

 

 

 

—

 

Treasury stock at par (6,252,129 shares at December 31, 2024; 5,848,475 shares at December 31, 2023)

 

(63

)

 

 

(58

)

Additional paid-in capital

 

136,872

 

 

 

138,046

 

Retained earnings

 

631,541

 

 

 

605,067

 

Accumulated other comprehensive income (loss)

 

5,970

 

 

 

(4,144

)

Total stockholders' equity

 

774,650

 

 

 

739,237

 

Total liabilities and stockholders' equity

$

1,594,920

 

 

$

1,496,020

 

AdvanSix Inc.

Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except share and per share amounts)

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

2023

 

Sales

$

329,063

 

 

$

382,208

 

 

$

1,517,557

 

$

1,533,599

 

 

 

 

 

 

 

 

 

Costs, expenses and other:

 

 

 

 

 

 

 

Costs of goods sold

 

317,762

 

 

 

363,667

 

 

 

1,364,621

 

 

1,368,511

 

Selling, general and administrative expenses

 

21,734

 

 

 

24,828

 

 

 

94,023

 

 

95,538

 

Interest expense, net

 

2,174

 

 

 

2,189

 

 

 

11,311

 

 

7,485

 

Other non-operating (income) expense, net

 

218

 

 

 

(240

)

 

 

2,027

 

 

(7,158

)

Total costs, expenses and other

 

341,888

 

 

 

390,444

 

 

 

1,471,982

 

 

1,464,376

 

 

 

 

 

 

 

 

 

Income (loss) before taxes

 

(12,825

)

 

 

(8,236

)

 

 

45,575

 

 

69,223

 

Income tax expense (benefit)

 

(13,177

)

 

 

(3,154

)

 

 

1,426

 

 

14,600

 

Net income (loss)

$

352

 

 

$

(5,082

)

 

$

44,149

 

$

54,623

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

Basic

$

0.01

 

 

$

(0.19

)

 

$

1.65

 

$

2.00

 

Diluted

$

0.01

 

 

$

(0.19

)

 

$

1.62

 

$

1.95

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

Basic

 

26,805,182

 

 

 

26,911,754

 

 

 

26,828,338

 

 

27,302,254

 

Diluted

 

27,234,784

 

 

 

26,911,754

 

 

 

27,255,213

 

 

28,007,630

 

AdvanSix Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in thousands)

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income (loss)

$

352

 

 

$

(5,082

)

 

$

44,149

 

 

$

54,623

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

18,979

 

 

 

18,673

 

 

 

76,176

 

 

 

73,010

 

Loss on disposal of assets

 

358

 

 

 

342

 

 

 

773

 

 

 

1,281

 

Deferred income taxes

 

(12,629

)

 

 

(10,416

)

 

 

(8,991

)

 

 

(9,347

)

Stock-based compensation

 

1,891

 

 

 

2,473

 

 

 

7,854

 

 

 

8,313

 

Amortization of deferred financing fees

 

154

 

 

 

154

 

 

 

618

 

 

 

618

 

Operational asset adjustments

 

—

 

 

 

—

 

 

 

1,200

 

 

 

(4,472

)

Changes in assets and liabilities, net of business acquisitions:

 

 

 

 

 

 

 

Accounts and other receivables

 

3,342

 

 

 

(20,696

)

 

 

18,411

 

 

 

21,489

 

Inventories

 

1,048

 

 

 

17,368

 

 

 

(555

)

 

 

3,286

 

Taxes receivable

 

(128

)

 

 

64

 

 

 

931

 

 

 

8,337

 

Accounts payable

 

13,077

 

 

 

29,367

 

 

 

(30,610

)

 

 

(20,756

)

Income taxes payable

 

612

 

 

 

5,867

 

 

 

(6,986

)

 

 

8,003

 

Accrued liabilities

 

(8,562

)

 

 

2,218

 

 

 

2,426

 

 

 

(5,569

)

Deferred income and customer advances

 

36,021

 

 

 

13,263

 

 

 

21,860

 

 

 

(18,752

)

Other assets and liabilities

 

9,650

 

 

 

6,574

 

 

 

8,157

 

 

 

(2,514

)

Net cash provided by operating activities

 

64,165

 

 

 

60,169

 

 

 

135,413

 

 

 

117,550

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Expenditures for property, plant and equipment

 

(34,349

)

 

 

(38,352

)

 

 

(133,722

)

 

 

(107,377

)

Other investing activities

 

(3,127

)

 

 

(1,116

)

 

 

(9,180

)

 

 

(3,520

)

Net cash used for investing activities

 

(37,476

)

 

 

(39,468

)

 

 

(142,902

)

 

 

(110,897

)

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Borrowings from line of credit

 

94,500

 

 

 

66,000

 

 

 

406,000

 

 

 

437,000

 

Payments of line of credit

 

(114,500

)

 

 

(66,000

)

 

 

(381,000

)

 

 

(382,000

)

Principal payments of finance leases

 

(249

)

 

 

(240

)

 

 

(1,011

)

 

 

(938

)

Dividend payments

 

(4,277

)

 

 

(4,303

)

 

 

(17,135

)

 

 

(16,657

)

Purchase of treasury stock

 

(1

)

 

 

(8,500

)

 

 

(10,428

)

 

 

(46,151

)

Issuance of common stock

 

104

 

 

 

—

 

 

 

859

 

 

 

876

 

Net cash used for financing activities

 

(24,423

)

 

 

(13,043

)

 

 

(2,715

)

 

 

(7,870

)

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

2,266

 

 

 

7,658

 

 

 

(10,204

)

 

 

(1,217

)

Cash and cash equivalents at beginning of period

 

17,298

 

 

 

22,110

 

 

 

29,768

 

 

 

30,985

 

Cash and cash equivalents at the end of period

$

19,564

 

 

$

29,768

 

 

$

19,564

 

 

$

29,768

 

 

 

 

 

 

 

 

 

Supplemental non-cash investing activities:

 

 

 

 

 

 

 

Capital expenditures included in accounts payable

 

 

 

 

$

23,645

 

 

$

22,660

 

AdvanSix Inc.

Non-GAAP Measures

(Dollars in thousands, except share and per share amounts)

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net cash provided by operating activities

$

64,165

 

 

$

60,169

 

 

$

135,413

 

 

$

117,550

 

Expenditures for property, plant and equipment

 

(34,349

)

 

 

(38,352

)

 

 

(133,722

)

 

 

(107,377

)

Free cash flow (1)

$

29,816

 

 

$

21,817

 

 

$

1,691

 

 

$

10,173

 

 

 

 

 

 

 

 

 

(1) Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment

 

The Company believes that this metric is useful to investors and management as a measure to evaluate our ability to generate cash flow from business operations and the impact that this cash flow has on our liquidity.

Reconciliation of Net Income to Adjusted EBITDA and Earnings Per Share to Adjusted Earnings Per Share

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income (loss)

$

352

 

 

$

(5,082

)

 

$

44,149

 

 

$

54,623

 

Non-cash stock-based compensation

 

1,891

 

 

 

2,473

 

 

 

7,854

 

 

 

8,313

 

Non-recurring, unusual or extraordinary (income) expense (2)

 

—

 

 

 

—

 

 

 

1,200

 

 

 

(4,472

)

Non-cash amortization from acquisitions

 

531

 

 

 

530

 

 

 

2,126

 

 

 

2,126

 

Non-recurring M&A costs

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Income tax benefit relating to reconciling items

 

(417

)

 

 

(504

)

 

 

(2,011

)

 

 

(661

)

Adjusted Net income (loss) (non-GAAP)

 

2,357

 

 

 

(2,583

)

 

 

53,318

 

 

 

59,929

 

Interest expense, net

 

2,174

 

 

 

2,189

 

 

 

11,311

 

 

 

7,485

 

Income tax expense (benefit) - Adjusted

 

(12,760

)

 

 

(2,650

)

 

 

3,437

 

 

 

15,261

 

Depreciation and amortization - Adjusted

 

18,448

 

 

 

18,143

 

 

 

74,050

 

 

 

70,884

 

Adjusted EBITDA (non-GAAP)

$

10,219

 

 

$

15,099

 

 

$

142,116

 

 

$

153,559

 

 

 

 

 

 

 

 

 

Sales

$

329,063

 

 

$

382,208

 

 

$

1,517,557

 

 

$

1,533,599

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin (non-GAAP) (3)

 

3.1

%

 

 

4.0

%

 

 

9.4

%

 

 

10.0

%

 

 

 

 

 

 

 

 

(2) 2024 includes a pre-tax loss of approximately $1.2 million from the reduction of the Company’s anticipated receivable related to the gain on the termination fee recorded upon the exit from the Oben Holding Group S.A. alliance during the third quarter of 2023. During 2023, there were several transactions including the exit from the Oben Holding Group S.A. alliance, licensee exit of legacy technology and exit of certain low-margin oximes products that resulted in a $4.5 million net pre-tax loss.

(3) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

2024

 

 

2023

 

 

2024

 

2023

Net income (loss)

$

352

 

$

(5,082

)

 

$

44,149

 

$

54,623

Adjusted Net income (loss) (non-GAAP)

 

2,357

 

 

(2,583

)

 

 

53,318

 

 

59,929

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding - basic

 

26,805,182

 

 

26,911,754

 

 

 

26,828,338

 

 

27,302,254

Dilutive effect of equity awards and other stock-based holdings

 

429,602

 

 

—

 

 

 

426,875

 

 

705,376

Weighted-average number of common shares outstanding - diluted

 

27,234,784

 

 

26,911,754

 

 

 

27,255,213

 

 

28,007,630

 

 

 

 

 

 

 

 

EPS - Basic

$

0.01

 

$

(0.19

)

 

$

1.65

 

$

2.00

EPS - Diluted

$

0.01

 

$

(0.19

)

 

$

1.62

 

$

1.95

Adjusted EPS - Basic (non-GAAP)

$

0.09

 

$

(0.10

)

 

$

1.99

 

$

2.20

Adjusted EPS - Diluted (non-GAAP)

$

0.09

 

$

(0.10

)

 

$

1.96

 

$

2.14

 

The Company believes the non-GAAP financial measures presented in this release provide meaningful supplemental information as they are used by the Company’s management to evaluate the Company’s operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to its competitors, as these non-GAAP measures exclude items that are not considered core to the Company’s operations.

AdvanSix Inc.

Appendix

(Pre-tax income impact, Dollars in millions)

Planned Plant Turnaround Schedule (4)

 

 

1Q

2Q

3Q

4Q

FY

Primary Unit Operation

2017

—

~$10

~$4

~$20

~$34

Sulfuric Acid

2018

~$2

~$10

~$30

—

~$42

Ammonia

2019

—

~$5

~$5

~$25

~$35

Sulfuric Acid

2020

~$2

~$7

~$20

~$2

~$31

Ammonia

2021

~$3

~$8

—

~$18

~$29

Sulfuric Acid

2022

~$1

~$5

~$44(5)

—

~$50

Ammonia

2023

~$2

~$1

~$27

—

~$30

Sulfuric Acid

2024

~$5

~$3

~$3

~$47(6)

~$58

Ammonia

2025E

~$3

~$7

—

$15-$20

$25-$30

Sulfuric Acid

(4) Primarily reflects the impact of fixed cost absorption, maintenance expense, and the purchase of feedstocks which are normally manufactured by the Company.

(5) During the multi-site planned plant turnaround, additional required maintenance at our Frankford phenol plant contributed to reduced production across our integrated value chain and a delayed ramp to full operating rates at our Hopewell and Chesterfield sites, resulting in an incremental $15 million unfavorable impact to pre-tax income inclusive of fixed cost absorption, higher maintenance expense and lost sales.

(6) During the multi-site planned plant turnaround, additional required maintenance at our Hopewell plant contributed to reduced production across our integrated value chain and a delayed ramp to full operating rates, resulting in an incremental approximately $17 million unfavorable impact to pre-tax income inclusive of fixed cost absorption, higher maintenance expense, and lost sales

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250220498902/en/

Media Janeen Lawlor (973) 526-1615 janeen.lawlor@advansix.com Investors Adam Kressel (973) 526-1700 adam.kressel@advansix.com