NYSE$ASIX

Advansix Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported robust sales, earnings, and cash flow, driven by strong commercial performance and the integration of U.S. Amines.

AdvanSix announced strong second-quarter results with sales up 33% year-over-year to $584 million and earnings per share of $2.23. The company highlighted the strength of its business model and diverse product portfolio, with strong commercial performance offsetting higher inflation and lower sales volume due to unfavorable weather conditions.

  • Sales increased by approximately 33% compared to the prior year, influenced by market-based pricing, raw material pass-through pricing, and contributions from acquisitions.
  • Net income reached $65.2 million, marking a $21.0 million increase from the previous year.
  • Cash flow from operations totaled $95.9 million, reflecting a $43.9 million increase compared to the prior year.
  • The company announced a 16% increase in the quarterly dividend, raising it to $0.145 per share.

Headline financials

Total Revenue

$584M

Previous: $438M+33.4%
EPS (adj)

$2.30

Previous: $1.53+50.3%
Capital Expenditures

$17.8M

Previous: $10.3M+72.8%
Free Cash Flow

$26.4M

Previous: $19.7M+34.2%
Net Income

$65.2M

Previous: $44.1M+47.6%
Operating Income

-$498M

Previous: -$378M-31.6%
Gross Profit

$107M

Previous: $80.8M+32.3%
Cash & Equivalents

$17.3M

Previous: $4.25M+306.9%
Total Assets

$1.48B

Previous: $1.25B+19.1%
Stock-Based Comp

$2.01M

Previous: $3.74M-46.4%

Revenue & EPS history

Advansix · Revenue · Quarterly

$584M

Q2 2022+33.4%vs Q2 2021
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Revenue by segment

Advansix · $378M total across 3 segments · Q2 2022

  • Chemical Intermediates
    $159M+9.8%
  • Nylon
    $132M+20.7%
  • Caprolactam
    $87.2M+4.7%

Forward guidance

AdvanSix is targeting significant earnings growth in 2022, supported by its integrated business model and diverse end-market exposure. The company anticipates continued healthy demand in North America for nylon and chemical intermediates, along with favorable conditions in the agriculture industry.

Tailwinds

  • Targeting significant earnings growth in 2022 supported by strength of our integrated business model and diverse end market exposure
  • Expect continued healthy North America demand for nylon and chemical intermediates
  • Expect favorable underlying agriculture industry fundamentals to continue; North America ammonium sulfate seasonality expected to drive 3Q22 higher export mix sequentially
  • Successful integration of U.S. Amines expected to deliver year one earnings accretion
  • Continue to expect Capital Expenditures to be $95 to $105 million in 2022

Headwinds

  • Continue to expect pre-tax income impact of planned plant turnarounds to be approximately $32 to $37 million in 2022

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 2022

Historical avgQ2 2022

-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%

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