- Chemicals company AdvanSix (ASIX +7.2%) is trading higher after reporting record sales and earnings for Q2 2021.
- Sales grew ~88% Y/Y to $437.68M, reflecting 32% higher volume, 31% higher raw material pass-through pricing and favorable pricing. Sales exceeded estimates by $19.88M.
- Chemical intermediates accounted for a third of sales, while nylon and ammonium sulfate lines made up 25% and 23% of sales, respectively.
- Net income was $44.1M vs $11.4M in Q220, and GAAP EPS of $1.53 (273% Y/Y) beat estimates by $0.45. EBITDA was ~$76M and margin was 17.4%, compared with $30.7M and 13.2% a year earlier.
- AdvanSix ended Q2 with ~$52M in cash flow from operations, vs $8.8M the prior year. Free cash flow was $41.6M, a $50.3M increase from Q220.
- 1H21: sales $814M vs $535.7M in 1H20; net profit $72.3M vs $20M; EPS $2.51 vs $0.71.
- CEO comment: "Our record performance is attributable to strong volume and pricing improvement including continued growth in differentiated products amid favorable end market conditions and tight industry supply. Demand has improved across a number of the diverse end markets we serve including building and construction, auto, electronics, packaging, paints and coatings, and solvents as well as the strongest set of agricultural industry fundamentals seen in the last decade."
- Outlook: AdvanSix expects the driving factors for its Q2 and H1 performance to continue. Tight industry supply and favorable market conditions will keep North America nylon demand steady, and strong agricultural industry fundamentals will continue.
- The company expects $65M-70M in capital expenditure in 2021 (compared to prior expectations of $70M-$80M), and a $24M-27M pre-tax income impact from planned plant turnaround programs (compared to prior expectations of $25M-$30M).
- Press Release