NYSE$ASIX

Advansix Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

AdvanSix reported Q4 2021 financial results with a sales increase, but a decrease in net income and earnings per share compared to the prior year.

AdvanSix reported Q4 2021 sales of $424 million, a 25% increase compared to the prior year. However, net income decreased to $23.6 million, and earnings per share decreased to $0.80. The company's cash flow from operations was $33.3 million.

  • Sales increased by approximately 25% versus prior year, driven by market-based pricing and raw material pass-through pricing, partially offset by lower volume.
  • Net income decreased by $3.2 million versus the prior year.
  • EBITDA increased by $0.8 million versus the prior year, including a net unfavorable impact of planned plant turnarounds.
  • Cash flow from operations decreased by $14.4 million versus the prior year.

Headline financials

Total Revenue

$424M

Previous: $340M+24.6%
EPS (adj)

$0.80

Previous: $0.94-14.9%
Adjusted EBITDA

$49.3M

Previous: $48.5M+1.6%
Adjusted EBITDA Margin

11.6%

Previous: 14.3%-18.9%
Capital Expenditures

$19.3M

Previous: $15.4M+26.0%
Free Cash Flow

$14M

Previous: $32.4M-56.8%
Net Income

$23.6M

Previous: $26.8M-11.9%
Operating Income

$32.1M

Previous: $30.8M+4.3%
Gross Profit

$54.5M

Previous: $52.6M+3.6%
Cash & Equivalents

$15.1M

Previous: $10.6M+42.4%
Total Assets

$1.31B

Previous: $1.26B+3.8%
Stock-Based Comp

$2.69M

Previous: $1.4M+92.5%

Revenue & EPS history

Advansix · Revenue · Quarterly

$424M

Q4 2021+24.6%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Advansix · $307M total across 3 segments · Q4 2021

  • Chemical Intermediates
    $128M+7.4%
  • Nylon
    $105M+34.5%
  • Caprolactam
    $73.7M+14.0%

Forward guidance

AdvanSix is targeting significant earnings growth in 2022, supported by strong execution and robust ammonium sulfate fertilizer performance. The company expects strong North America demand for nylon and chemical intermediates to continue and anticipates that the successful integration of U.S. Amines will deliver year one earnings accretion.

Tailwinds

  • Targeting significant earnings growth in 2022
  • Expected strong execution
  • Robust ammonium sulfate fertilizer performance
  • Expect strong North America demand for nylon and chemical intermediates to continue
  • Successful integration of U.S. Amines expected to deliver year one earnings accretion

Headwinds

  • Continue to expect Capital Expenditures to be $95 to $105 million in 2022 reflecting scope of planned plant turnarounds and timing of project execution
  • Expect pre-tax income impact of planned plant turnarounds to be approximately $33 to $38 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 Q4 2021

Historical avgQ4 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%

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