NYSE$ASIX

Advansix Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Navigated challenging nylon market conditions while executing planned plant turnaround.

AdvanSix reported a decrease in sales by 33% compared to the prior year, with sales totaling $323 million. The company experienced a net loss of $8.0 million, and adjusted earnings per share were reported as ($0.36). They returned $14 million of cash to shareholders through repurchases and dividends.

  • Sales decreased by approximately 33% versus prior year driven by unfavorable market-based pricing, lower raw material pass-through pricing, and lower volume.
  • Net Loss was ($8.0) million, a decrease of $18.0 million versus the prior year.
  • Adjusted EBITDA was $7.3 million, a decrease of $26.0 million versus the prior year.
  • Free Cash Flow was ($4.3) million, a decrease of $41.0 million versus the prior year.

Headline financials

Total Revenue

$323M

Previous: $479M-32.6%
EPS (adj)

-$0.36

Previous: $0.43-183.7%
Cash Flow from Operations

$20.8M

No prior period
Capital Expenditures

$25.1M

No prior period
Free Cash Flow

-$77M

Previous: -$51M-51.0%
Net Income

-$7.98M

Previous: $10M-179.5%
Operating Income

-$336M

Previous: -$466M+27.9%
Gross Profit

$8.12M

Previous: $35.1M-76.9%
Cash & Equivalents

$22.1M

Previous: $24.7M-10.5%
Total Assets

$1.48B

Previous: $1.46B+1.4%
Stock-Based Comp

$1.39M

Previous: $2.22M-37.3%

Revenue & EPS history

Advansix · Revenue · Quarterly

$323M

Q3 2023-32.6%vs Q3 2022
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Revenue by segment

Advansix · $238M total across 3 segments · Q3 2023

  • Nylon
    $86.1M-39.0%
  • Chemical Intermediates
    $83.5M-27.6%
  • Caprolactam
    $68.8M-24.3%

Forward guidance

The company expects nylon industry margins to remain at prior trough levels through year-end due to unfavorable supply and demand conditions and anticipates continued higher Nylon Solutions exports in near-term.

Tailwinds

  • Expect favorable underlying agriculture industry fundamentals to continue
  • Expect balanced supply and demand conditions for North American acetone to continue

Headwinds

  • Expect nylon industry margins to remain at prior trough levels through year-end due to unfavorable supply and demand conditions
  • Anticipate continued higher Nylon Solutions exports in near-term

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 Q3 2023

Historical avgQ3 2023

-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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