AdvanSix (NYSE: ASIX) has released its financial performance for the fourth quarter and full year ending December 31, 2023. Despite facing challenges in the end market environment, the company remained focused on its long-term priorities, including portfolio simplification and investments aimed at enhancing through-cycle profitability.
Here’s a summary of the key highlights for the full year 2023:
- Sales decreased by 21% compared to the prior year, driven by a 17% unfavorable impact of market-based pricing and a 5% decrease in raw material pass-through pricing. This was partially offset by a 1% contribution from acquisitions and flat volume.
- Net Income was $54.6 million, marking a decrease of $117.3 million from the previous year.
- Adjusted EBITDA stood at $153.6 million, down by $154.9 million compared to the prior year.
- Cash Flow from Operations amounted to $117.6 million, reflecting a decrease of $156.1 million compared to the previous year.
- Capital Expenditures totaled $107.4 million, representing an increase of $17.9 million from the prior year.
- Free Cash Flow was $10.2 million, marking a decrease of $174.0 million compared to the previous year.
- The company repurchased 1,317,402 shares for approximately $46.2 million in 2023.
Erin Kane, President and CEO of AdvanSix, commented on the results, stating, “I’m proud of the team and our continued commitment to driving improved through-cycle profitability. Our healthy balance sheet helped to support our performance through challenging market conditions, particularly in Nylon Solutions, while maintaining organic investments and return of cash to our shareholders.”
Regarding the fourth quarter of 2023, here are the key points:
- Sales decreased by 5% compared to the prior year, primarily due to a 22% unfavorable impact of market-based pricing. This was partially offset by a 16% increase in volume and a 1% higher raw materials pass-through pricing.
- The company reported a net loss of ($5.1) million, marking a decrease of $38.7 million from the previous year.
- Adjusted EBITDA was $15.1 million, down by $51.5 million compared to the prior year.
- Cash Flow from Operations amounted to $60.2 million, reflecting a decrease of $9.4 million compared to the previous year.
- Capital Expenditures totaled $38.4 million, representing an increase of $9.9 million from the prior year.
- Free Cash Flow was $21.8 million, marking a decrease of $19.4 million compared to the previous year.
- The company repurchased 306,527 shares for approximately $8.5 million in the fourth quarter of 2023.
Sales for the quarter amounted to $382 million, down approximately 5% compared to the prior year. Market-based pricing was unfavorably impacted by 22%, primarily due to reduced ammonium sulfate pricing and lower nylon pricing. However, sales volume increased by approximately 16%, driven by higher export shipments in both Ammonium Sulfate and Nylon. Raw material pass-through pricing was favorable by 1% due to a net cost increase in benzene and propylene, key inputs to the company’s products.
