NYSE$ASIX

Advansix Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

AdvanSix's Q2 2021 financial results were announced, showcasing record sales and earnings driven by strong execution amidst a tight supply and demand environment.

AdvanSix reported record sales, earnings, and margin in Q2 2021, driven by strong execution amid improved end market demand and tight industry supply conditions. Sales reached $438 million, up 88% year-over-year, with earnings per share at $1.53, a 273% increase. Cash flow from operations was $52 million, reflecting a significant rise from the previous year.

  • Sales increased by approximately 88% compared to the prior year, driven by higher volume, raw material pass-through pricing, and favorable market-based pricing.
  • Net income reached $44.1 million, marking a $32.7 million increase from the prior year.
  • EBITDA was $76.0 million, a $45.2 million increase versus the prior year, with an EBITDA margin of 17.4%, up 420 bps.
  • Cash flow from operations totaled $51.9 million, reflecting a $43.1 million increase compared to the prior year.

Headline financials

Total Revenue

$438M

Previous: $233M+87.8%
EPS (adj)

$1.53

Previous: $0.41+273.2%
Adjusted EBITDA

$76M

Previous: $30.7M+147.4%
Adjusted EBITDA Margin

17.4%

Previous: 13.2%+31.8%
Cash Flow from Operations

$51.9M

Previous: $8.83M+488.0%
Capital Expenditures

$10.3M

Previous: $17.5M-41.1%
Free Cash Flow

$19.7M

Previous: -$40.2M+148.9%
Net Income

$44.1M

Previous: $11.4M+286.1%
Operating Income

-$378M

Previous: -$217M-74.5%
Gross Profit

$80.8M

Previous: $34.3M+135.7%
Cash & Equivalents

$4.25M

Previous: $72.7M-94.1%
Total Assets

$1.25B

Previous: $1.29B-3.2%
Stock-Based Comp

$3.74M

Previous: $1.7M+120.0%

Revenue & EPS history

Advansix · Revenue · Quarterly

$438M

Q2 2021+87.8%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Advansix · $337M total across 3 segments · Q2 2021

  • Chemical Intermediates
    $144M+113.7%
  • Nylon
    $109M+113.4%
  • Caprolactam
    $83.2M+138.1%

Forward guidance

The outlook for AdvanSix's business remains favorable, supported by strong underlying demand trends, benefits from high-return capital projects, a differentiated product portfolio, and operational agility, all contributing to expected record earnings and cash flow in 2021.

Tailwinds

  • Expect steady North America nylon demand amid favorable end market conditions and tight industry supply.
  • Expect strong agricultural industry fundamentals to continue; Typical North America ammonium sulfate seasonality expected to drive 3Q21 higher export mix sequentially.
  • Expect robust demand for chemical intermediates to continue; Acetone industry fundamentals to remain strong with continued balancing of supply and demand in 2H 2021.
  • Expect Capital Expenditures to be $65 to $70 million in 2021 reflecting timing of project execution.
  • Driving efficiencies in planned plant turnaround programs - expect pre-tax income impact of $24 to $27 million in 2021.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.8%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+0.8%

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 2026-15.1%-6.6%
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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro