AdvanSix, a diversified chemistry company, has announced its financial results for the third quarter ending September 30, 2024, highlighting robust sales, earnings, and cash flow performance while maintaining its commitment to long-term sustainable growth.
Third Quarter 2024 Highlights:
- Sales: Increased by approximately 23% year-over-year to $398.2 million, driven by an 11% rise in volume, an 8% increase in raw material pass-through pricing, and a 5% positive impact from market-based pricing.
- Net Income: Reported at $22.3 million, marking a $30.2 million improvement from the previous year.
- Adjusted EBITDA: Reached $53.2 million, up $45.8 million year-over-year, with an adjusted EBITDA margin of 13.4%, an increase of 1,110 basis points from last year.
- Cash Flow from Operations: Rose to $57.3 million, an increase of $36.4 million compared to last year.
- Free Cash Flow: Improved significantly to $26.8 million, up $31.1 million from the prior year.
Erin Kane, president and CEO of AdvanSix, emphasized the company’s strong competitive position and effective execution across its diverse product portfolio, which contributed to top and bottom-line growth. The company benefitted from a robust ammonium sulfate market and improving conditions in the North American nylon industry. Additionally, AdvanSix was awarded a $12 million grant from the U.S. Department of Agriculture to enhance production capacity for premium-grade products under its SUSTAIN program.
Financial Summary:
- Sales: $398,187 (3Q 2024) vs. $322,907 (3Q 2023)
- Net Income: $22,266 (3Q 2024) vs. $(7,977) (3Q 2023)
- Diluted Earnings Per Share: $0.82 (3Q 2024) vs. $(0.29) (3Q 2023)
- Adjusted EBITDA: $53,161 (3Q 2024) vs. $7,321 (3Q 2023)
- Cash Flow from Operations: $57,250 (3Q 2024) vs. $20,802 (3Q 2023)
- Free Cash Flow: $26,760 (3Q 2024) vs. $(4,329) (3Q 2023)
Outlook:
AdvanSix expects strong demand for ammonium sulfate to continue through the fourth quarter of 2024, alongside balanced conditions in global acetone supply and demand. The company anticipates capital expenditures between $135 million and $140 million in 2024 to support critical projects, including its SUSTAIN initiative.
The company’s board has declared a quarterly cash dividend of $0.16 per share, payable on November 26, 2024.
Conference Call:
AdvanSix will host a conference call today at 9:00 a.m. ET to discuss these results. Participants can join by calling the provided numbers, and a live webcast will be available on the company’s investor relations website.
For more details about AdvanSix and its operations, visit AdvanSix.
