- AdvanSix (ASIX +11.8%) reported Q4 sales increase of 4.2% Y/Y to $340.27M, reflecting 7.9% higher volume and 0.7% favorable impact of market-based pricing.
- Net income was $26.74M, compared to loss of $2.09M a year ago.
- Q4 EBITDA increased by 280.4% Y/Y to $48.5M, and margin improved by 1,035 bps to 14.3%.
- Cash flow from operations of $47.8M in the quarter, an increase of $27.9M as compared to last year, due to higher net income; and Free cash flow was $32.41M.
- FY21 Outlook: Company expects near-term improvement in nylon demand; increased ammonium sulfate fertilizer demand through 2021 planting season supported by improvement in agricultural industry fundamentals; and expects favorable acetone industry supply and demand balance to continue.
- Capital expenditures to be $80M to $90M in FY21; and pre-tax income impact of planned plant turnarounds to be $25M to $30M.
- “Increased focus on ESG may likely result in AdvanSix facing a continued uphill battle. The valuation is not dirt low enough to create appeal given this dynamic in my eyes,” mentions SA contributor The Value Investor, with a Neutral rating.
- Previously (Feb. 16): AdvanSix gains after Delphi's Scott Black pitches in interview.
- Previously (Feb. 19): AdvanSix EPS beats by $0.45, beats on revenue.