NYSE$ASIX

Advansix Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Generated significantly higher sales, earnings and cash flow due to improved end market conditions and strong execution.

AdvanSix reported a strong first quarter in 2021 with sales up 24% year-over-year, driven by higher raw material pass-through pricing, volume, and market-based pricing. Net income and cash flow from operations also saw significant increases compared to the prior year.

  • Sales increased by approximately 24% versus prior year, driven by higher raw material pass-through pricing, volume, and market-based pricing.
  • Net Income increased by $19.6 million versus the prior year.
  • Cash Flow from Operations increased by $37.4 million versus the prior year.
  • Awarded 2021 Platinum Rating for corporate social responsibility from EcoVadis.

Headline financials

Total Revenue

$376M

Previous: $303M+24.3%
EPS (adj)

$0.98

Previous: $0.31+216.1%
Adjusted EBITDA

$55.1M

Previous: $28.6M+92.3%
Adjusted EBITDA Margin

14.6%

Previous: 9.5%+53.7%
Cash Flow from Operations

$57.1M

No prior period
Capital Expenditures

$14.2M

No prior period
Free Cash Flow

$14M

Previous: -$25.5M+154.7%
Net Income

$28.1M

Previous: $8.58M+228.0%
Operating Income

-$337M

Previous: -$289M-16.8%
Gross Profit

$58.5M

Previous: $30.7M+90.5%
Cash & Equivalents

$14.1M

Previous: $30.8M-54.1%
Total Assets

$1.24B

Previous: $1.26B-1.6%
Stock-Based Comp

$2.36M

Previous: $1.2M+97.2%

Revenue & EPS history

Advansix · Revenue · Quarterly

$376M

Q1 2021+24.3%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Advansix · $305M total across 3 segments · Q1 2021

  • Chemical Intermediates
    $143M+62.9%
  • Nylon
    $82.8M+5.2%
  • Caprolactam
    $78.9M+18.5%

Forward guidance

AdvanSix expects near-term North America nylon supply tightness and steady demand to continue, improved ammonium sulfate fertilizer results, and a favorable acetone industry supply and demand balance. They are focused on mitigating expected higher raw material input costs and expect capital expenditures to be $70 to $80 million in 2021. They continue to expect pre-tax income impact of planned plant turnarounds to be $25 to $30 million in 2021.

Tailwinds

  • Expect near-term North America nylon supply tightness and steady demand to continue
  • Expect improved ammonium sulfate fertilizer results through 2021 planting season supported by improving agricultural industry fundamentals
  • Expect favorable acetone industry supply and demand balance to continue

Headwinds

  • Focused on mitigating expected higher raw material input costs
  • Expect Capital Expenditures to be $70 to $80 million in 2021
  • Continue to expect pre-tax income impact of planned plant turnarounds to be $25 to $30 million in 2021

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.8%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+0.6%

Avg return

30 days after

52%

23 / 44 earnings

Positive

+15.6%

Q1 2016

Best reaction

-15.5%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-14.5%-6.0%-9.9%
Q4 2025+3.9%+0.8%+12.5%
Q3 2025-15.0%-10.9%-11.7%
Q1 2025+6.1%+6.9%+10.4%
Q3 2024+5.0%+11.8%+14.5%
Q2 2024+2.7%+4.0%+10.5%
Q1 2024-9.9%-6.3%-8.0%
Q4 2023+0.8%-0.6%-4.2%
Q3 2023-9.5%-13.2%-5.0%
Q2 2023-8.1%-5.3%-14.0%
Q1 2023-0.7%-1.2%+1.1%
Q4 2022-3.3%-0.9%-17.7%
Q3 2022+3.7%+1.7%+14.9%
Q2 2022+1.6%+2.0%-8.2%
Q1 2022-3.9%-4.2%-2.2%
Q4 2021-11.0%-14.7%+30.5%
Q3 2021+5.4%+8.3%+2.4%
Q2 2021+2.6%+6.9%+11.5%
Q1 2021+3.3%+6.7%+3.4%
Q4 2020+11.5%+8.1%+2.8%
Q3 2020+4.4%-1.3%+23.6%
Q2 2020+1.5%+5.2%+16.4%
Q1 2020-6.0%-7.2%-2.8%
Q4 2019-15.5%-27.0%-34.1%
Q3 2019+3.4%+4.0%-11.1%
Q2 2019-2.3%-10.3%-12.9%
Q1 2019+8.1%+1.6%-18.7%
Q4 2018+2.0%-1.2%-15.6%
Q3 2018-8.9%-2.9%-2.5%
Q2 2018-13.2%-13.5%-15.0%
Q1 2018-5.5%+2.0%+2.9%
Q4 2017+4.5%+6.6%-12.2%
Q3 2017-6.7%-7.2%-11.4%
Q2 2017-4.6%-4.0%+3.2%
Q2 2016-4.6%-4.0%+3.2%
Q1 2017+15.6%+13.7%+11.3%
Q1 2016+15.6%+13.7%+11.3%
Q1 2015-7.1%-9.9%-11.7%
Q2 2015-7.1%-9.9%-11.7%
Q4 2014-7.1%-9.9%-11.7%
Q4 2016+1.3%-2.2%+1.3%
Q4 2015+8.5%+6.9%+30.4%
Q3 2016+8.5%+6.9%+30.4%
Q3 2015+8.5%+6.9%+30.4%

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