AdvanSix posted second-quarter net income of $38.9 million on sales of $453.5 million, up from the year-ago $32.7 million and $427.9 million, respectively, citing a 5% increase in sales volume and a 1% increase in net pricing driven by higher sales of nylon and ammonium sulfate amid favorable North American supply and demand conditions. Adjusted EBITDA for the quarter was $78.1 million, up from $65.8 million.
“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.”
Kane said the company delivered its “second-highest quarter of granular ammonium sulfate production ever” as plant output returned to targeted utilization rates after a first-quarter operational disruption (GM Jan. 19, p. 1). Second-quarter ammonium sulfate sales were $139.7 million, representing 31% of total company sales, versus the year-ago $138.9 million, or 32%.
AdvanSix said it anticipates higher ammonium sulfate pricing in the third quarter compared with last year, reflecting robust demand entering fall fill, though it noted that “typical North American ammonium sulfate seasonality” is expected to drive sequential pricing declines in the third quarter.
“While we anticipate typical North American ammonium sulfate seasonality, we are starting the third quarter with a strong fall fill program at higher pricing levels compared to the prior year,” Kane said. “Over the long-term, we continue to positively position the enterprise through high-return growth and cost savings programs, an improved portfolio mix, and disciplined capital deployment to fuel future earnings, cash flow performance and robust total shareholder returns.”
Cash flow from operations was reported at $50.2 million for the quarter, up $15.2 million from last year due to higher net income the favorable impact of changes in working capital, while capital expenditures were up $14.2 million, to $33.5 million, primarily due to maintenance and enterprise programs.
AdvanSix continues to expect capital expenditures of $140-$150 million in 2024 to address critical enterprise risk mitigation and growth projects, including the company’s SUSTAIN (Sustainable U.S. Sulfate to Accelerate Increased Nutrition) program. The company anticipates a pre-tax income impact of $38-$43 million in 2024 due to planned plant turnarounds.
The company’s Board of Directors declared a quarterly cash dividend of $0.16 per share on the company’s common stock, payable on Aug. 27, 2024, to stockholders of record as of the close of business on Aug. 13, 2024.