AdvanSix (ASIX) Tops Q4 EPS by 45c, Revenues Beat

AdvanSix (NYSE: ASIX) reported Q4 EPS of $0.94, $0.45 better than the analyst estimate of $0.49. Revenue for the quarter came in at $340 million versus the consensus estimate of $292 million.

Fourth Quarter 2020 Results

• Sales up 4.2% versus prior year, as 7.9% higher volume and 0.7% favorable impact of market-based pricing were partially offset by 4.4% lower raw material pass-through pricing
• Net Income of $26.8 million, an increase of $28.9 million versus the prior year
• EBITDA of $48.5 million, an increase of $35.8 million versus the prior year
• Cash Flow from Operations of $47.8 million, an increase of $27.9 million versus the prior year
• Capital Expenditures of $15.4 million, a decrease of $28.6 million versus the prior year
• Free Cash Flow of $32.4 million, an increase of $56.5 million versus the prior year

“Our strong fourth quarter and full year results demonstrate our team's resilience, perseverance and strength of execution. For the full year, we expanded margins, generated higher earnings and cash flow, and reduced leverage levels as we navigated the challenging macro environment," said Erin Kane, president and CEO of AdvanSix. "Sales volume grew compared to the prior year reflecting the strength of our business model, low-cost position and diversity of our product portfolio. In 2020, we proactively drove approximately $26 million of productivity and cost savings to mitigate the impact of COVID on our business while continuing to invest for future growth in differentiated products and high-return capital projects."

Outlook

• Expect near-term improvement in nylon demand while navigating COVID environment
• Expect increased ammonium sulfate fertilizer demand through 2021 planting season supported by improvement in agricultural industry fundamentals
• Expect favorable acetone industry supply and demand balance to continue
• Continue to expect Capital Expenditures to be $80 to $90 million in 2021
• Continue to expect pre-tax income impact of planned plant turnarounds to be $25 to $30 million in 2021
• Expect to receive approximately $12 million cash tax refund in the first half of 2021 related to CARES Act

"We are targeting a record year of production output in 2021 supporting higher earnings and robust cash flow while making continued progress on our sustainability initiatives. Our strategic priorities remain consistent as we support continued operational excellence and improving through-cycle profitability, enhancing our portfolio resiliency through differentiated product growth and mix optimization, and being strong and disciplined stewards of capital. We are gaining momentum and remain confident that AdvanSix is well positioned to deliver attractive long-term shareholder value,” added Kane.

For earnings history and earnings-related data on AdvanSix (ASIX) click here.

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