AdvanSix (ASIX) Tops Q1 EPS by 27c, Revenues Beat

AdvanSix (NYSE: ASIX) reported Q1 EPS of $0.98, $0.27 better than the analyst estimate of $0.71. Revenue for the quarter came in at $376 million versus the consensus estimate of $352.55 million.

First Quarter 2021 Results

• Sales up approximately 24% versus prior year driven by 11% higher raw material pass-through pricing, 8% higher volume and 5% favorable impact of market-based pricing
• Net Income of $28.1 million, an increase of $19.6 million versus the prior year
• EBITDA of $55.1 million, an increase of $26.4 million versus the prior year
• EBITDA Margin of 14.6%, an increase of 510 bps versus the prior year
• Cash Flow from Operations of $57.1 million, an increase of $37.4 million versus the prior year
• Capital Expenditures of $14.2 million, a decrease of $19.9 million versus the prior year
• Free Cash Flow of $42.9 million, an increase of $57.3 million versus the prior year

“It's been a terrific start to 2021. The diversity of our product portfolio and strength of our business model and execution is reflected in the strong year-over-year results. We captured sales volume growth and pricing to achieve significant margin expansion, higher earnings and robust cash flow amid recovering demand and a tightened supply environment overall," said Erin Kane, president and CEO of AdvanSix. "We also continued to progress our core strategies. As previously announced, we closed the acquisition of certain assets of Commonwealth Industrial Services (CIS) in January to expand our offerings in sulfur nutrition and the integration and synergy realization are progressing well ahead of plan. This week we were also honored in being awarded a 2021 EcoVadis Platinum Rating in recognition of our strengthening corporate social responsibility performance and ranking us among the top 1% of all companies assessed."

Outlook

• Expect near-term North America nylon supply tightness and steady demand to continue
• Expect improved ammonium sulfate fertilizer results through 2021 planting season supported by improving agricultural industry fundamentals
• Expect favorable acetone industry supply and demand balance to continue
• Focused on mitigating expected higher raw material input costs
• Expect Capital Expenditures to be $70 to $80 million in 2021
• Continue to expect pre-tax income impact of planned plant turnarounds to be $25 to $30 million in 2021

"We are performing well in the current set of industry conditions and the outlook for our business remains favorable. We are targeting a record year of production output supporting higher earnings and robust cash flow in 2021, all while progressing our sustainability initiatives and growth in differentiated products. We are leveraging the momentum built in 2020 as we execute against a focused strategy and continue to strengthen our ability to deliver strong and sustainable shareholder returns over the long-term,” added Kane.

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

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