AdvanSix Inc (ASIX) Reports Q3 2023 Earnings: Sales Down 33% YoY, Net Loss of $8 Million
AdvanSix Inc (NYSE:ASIX) reports Q3 2023 sales of $323 million, a decrease of 33% compared to the prior year.
The company reports a net loss of $8 million, a decrease of $18 million versus the prior year.
AdvanSix Inc (NYSE:ASIX) returned $14 million of cash to shareholders through repurchases and dividends in Q3 2023.
The company continues to execute its multi-year SUSTAIN program while progressing on a USDA grant.
AdvanSix Inc (NYSE:ASIX) released its Q3 2023 earnings report on November 3, 2023. The company reported a decrease in sales and net income, navigating challenging market conditions while executing its larger planned plant turnaround for the year.
Financial Performance
AdvanSix Inc (NYSE:ASIX) reported sales of $323 million in Q3 2023, a decrease of 33% compared to the prior year. This decrease was driven by a 24% unfavorable impact of market-based pricing, 8% lower raw material pass-through pricing, and 1% lower volume. The company reported a net loss of $8 million, a decrease of $18 million versus the prior year.
Shareholder Returns
The company returned $14 million of cash to shareholders through repurchases and dividends in Q3 2023. During the quarter, AdvanSix repurchased 266,959 shares for approximately $9.3 million.
Financial Tables
AdvanSix Inc (NYSE:ASIX) reported Adjusted EBITDA of $7.3 million, a decrease of $26.0 million versus the prior year. Cash Flow from Operations was reported at $20.8 million, a decrease of $38.1 million versus the prior year. The company reported Capital Expenditures of $25.1 million, an increase of $2.9 million versus the prior year.
Company Outlook
AdvanSix Inc (NYSE:ASIX) expects nylon industry margins to remain at prior trough levels through year-end due to unfavorable supply and demand conditions. The company anticipates continued higher Nylon Solutions exports in the near term. Capital Expenditures are tracking to approximately $115 million for the full year 2023, reflecting increased spend due to critical infrastructure, other maintenance, and growth and cost savings projects.
Company Commentary
Erin Kane, president and CEO of AdvanSix, commented on the company's performance, stating:
In the third quarter, AdvanSix navigated continued challenging market conditions in Nylon Solutions while executing its larger planned multi-plant turnaround for the year. These factors overshadowed resilient performance within our acetone portfolio and solid results from our plant nutrients business in the seasonally slowest quarter of the year and amid lower nitrogen nutrient values and raw material input costs."
Explore the complete 8-K earnings release (here) from AdvanSix Inc for further details.
This article first appeared on GuruFocus.
