AdvanSix, a diversified chemistry company, announced its financial results for the second quarter ending June 30, 2024. The company achieved its targeted utilization rates across its integrated value chain and delivered strong earnings and cash flow results while continuing to invest in long-term sustainable growth.
Second Quarter 2024 Summary:
- Sales increased by approximately 6% compared to the prior year, driven by a 5% increase in volume and a 1% favorable net pricing.
- Net income was $38.9 million, up $6.2 million from the previous year.
- Adjusted EBITDA reached $78.1 million, an increase of $12.4 million compared to the prior year.
- Adjusted EBITDA margin was 17.2%, up 180 basis points from the previous year.
- Cash flow from operations was $50.2 million, up $15.2 million from the prior year.
- Capital expenditures were $33.5 million, an increase of $14.2 million from the previous year.
- Free cash flow was $16.7 million, an increase of $1.0 million from the previous year.
- The company returned $8 million to shareholders through dividends and repurchases in Q2 2024.
“Our strong second quarter results, featuring top and bottom line growth as well as year-over-year cash flow improvement, reflect our collective organization’s execution and the advantages of our business model and diverse product portfolio,” said Erin Kane, president and CEO of AdvanSix. “We realized a 6% improvement in sales reflecting higher domestic nylon sales volume, a robust domestic application season for ammonium sulfate, and continued strength in acetone pricing. Plant output returned to targeted utilization rates across our integrated value chain as expected, and we delivered our second-highest quarter of granular ammonium sulfate production ever. This performance occurred while continuing to invest in long-term sustainable growth, including our SUSTAIN (Sustainable U.S. Sulfate to Accelerate Increased Nutrition) program.”
Sales for the quarter were $453 million, up approximately 6% from the previous year. The sales volume increased by approximately 5%, primarily driven by higher sales of nylon and ammonium sulfate due to favorable North American supply and demand conditions. Net pricing was favorable by 1%, including continued strength in acetone. Adjusted EBITDA of $78.1 million increased by $12.4 million, or 19%, from the previous year, primarily due to higher sales volume and favorable pricing, net of raw material costs.
Adjusted earnings per share were $1.55, an increase of $0.30, or 24%, from the prior year, driven primarily by the aforementioned factors.
Cash flow from operations was $50.2 million, up $15.2 million from the previous year, primarily driven by higher net income and the favorable impact of changes in working capital. Capital expenditures for the quarter were $33.5 million, an increase of $14.2 million from the prior year, reflecting planned increased spending on maintenance and enterprise programs.
