AdvanSix, Parsippany, N.J., reported record sales, earnings, and cash flow for the year ending Dec. 31, 2021. Net income was $139.8 million ($4.81 per diluted share) on sales of $1.68 billion, up from 2020’s $46.1 million ($1.64 per share) and $1.16 billion, respectively. EBITDA more than doubled, at $255.5 million versus 2020’s $123.6 million. Free cash flow was $162 million, up from $28.9 million.
“In 2021, we once again differentiated our performance by delivering outstanding results and supporting our customers, all while continuing to successfully navigate the ongoing COVID-19 pandemic, significant industry supply chain disruptions, and an inflationary cost environment,” said Erin Kane, AdvanSix President and CEO.
“We achieved a post-spin record annual EBITDA and free cash flow, executed our first acquisition, initiated a quarterly dividend, entered into a new revolving credit facility, and significantly reduced our debt levels to provide optionality for further value creation,” she continued. “Our strong results reflect the resilience and strength of our execution and business model, as well as our leadership positions across our diverse product portfolio.”
Fourth-quarter results were not quite as robust, as the company endured an $18 million turnaround during the quarter. Net income was $23.6 million ($0.80 per share) on sales of $424.1 million, down from the year-ago $26.8 million ($0.94 per share) and $340.3 million, respectively. EBITDA, however, was up at $49.3 million from $48.5 million. Free cash flow was down at $14 million from $32.4 million.
The company said fourth-quarter sales volumes were off 12 percent, primarily due to the turnaround, as well as a strong year-ago quarter. However, sales were up 25 percent and market-based pricing was favorable by 25 percent, driven by higher pricing in ammonium sulfate and nylon.
Kane noted that the company is in the midst of the strongest fertilizer environment that it has seen in over a decade. The company is targeting significant earnings growth in 2022, supported by strong execution and robust ammonium sulfate fertilizer performance. It also expects strong North American demand for nylon and chemical intermediate products.
The company has declared a quarterly cash dividend of $0.125 per share on common stock, payable on March 15, 2022, to shareholders of record on March 1, 2022.