AdvanSix, Parsippany, N.J., reported record sales, earnings, and margins for the first quarter, reflecting what the company described as “robust ammonium sulfate fertilizer performance.” Sales for the quarter were up 27 percent from last year’s first quarter, to $479.1 million, driven by higher pricing across the company’s ammonium sulfate and nylon product lines.
Net Income for the quarter was $63.1 million, up $34.9 million from last year’s first quarter. Adjusted EBITDA came in at $103.2 million, reflecting an increase of $45.6 million from last year, and adjusted earnings per share of $2.26 increased $1.21 versus the prior year. Ammonium sulfate sales totaled $154.7 million during the quarter, representing 32 percent of total sales and more than double the $70.8 million sales posted in last year’s first quarter.
“AdvanSix delivered robust first-quarter results to start 2022, delivering both sequential and year-over-year top and bottom line growth,” said Erin Kane, AdvanSix President and CEO. “Our collective organization contributed to achieving record sales, earnings, and margins in the quarter reflecting the advantage of our diverse portfolio, as well as disciplined execution to serve our key customers and meet strong end market demand amid a tightened supply environment.”
AdvanSix said it is targeting significant earnings growth in 2022, with continued healthy North American demand for nylon and chemical intermediates. The company noted that it closed the acquisition of U.S. Amines in the first quarter (GM Feb. 18, p. 1), a North American producer of high-value intermediates used in agrochemicals, pharmaceuticals, and other applications, and expects to successfully integrate that business to deliver year-one earnings accretion.
Capital expenditures of $21.0 million in the quarter increased $6.8 million versus the prior year, AdvanSix reported. AdvanSix expects capital expenditures to be $95-$105 million in 2022, and it expects the pre-tax income impact of planned plant turnarounds to be approximately $32-$37 million for the year.
“Looking forward, we see healthy to strong demand across our end markets, and in particular a set of constructive industry factors in agriculture and nitrogen and sulfur fertilizers,” Kane said. “While the macro environment remains dynamic on a number of fronts, our cost-advantaged asset base and diverse product portfolio continue to support our expectations for significant earnings growth and robust cash flow in 2022.”
The company’s Board of Directors declared a quarterly cash dividend of $0.125 per share on the company’s common stock, payable on May 31, 2022, to stockholders of record as of the close of business on May 17, 2022.