AdvanSix Inc. (ASIX) Bundle
A Brief History of AdvanSix Inc.
Company Overview
AdvanSix Inc. (NYSE: ASIX) is a leading manufacturer of nylon, caprolactam, ammonium sulfate, and chemical intermediates. The company primarily serves the automotive, consumer goods, and agricultural sectors.
Recent Financial Performance
For the three months ended September 30, 2024, AdvanSix reported:
- Sales: $398.2 million
- Net Income: $22.3 million
- Basic EPS: $0.83
- Costs of Goods Sold: $340.9 million
- Gross Margin: 14.4%
For the nine months ended September 30, 2024, the figures were:
- Sales: $1.188 billion
- Net Income: $43.8 million
- Basic EPS: $1.63
Stockholder Equity and Capital Structure
As of September 30, 2024, AdvanSix had:
- Total Stockholders' Equity: $766.4 million
- Common Stock Issued: 32,982,868 shares
- Treasury Stock: 6,252,129 shares
Dividends and Share Repurchase Program
AdvanSix initiated dividends on September 28, 2021. The announced dividends for 2024 include:
| Date of Announcement | Date of Record | Date Payable | Dividend per Share | Total Approximate Dividend Amount ($M) |
|---|---|---|---|---|
| 11/1/2024 | 11/12/2024 | 11/26/2024 | $0.16 | $4.3 |
| 8/2/2024 | 8/13/2024 | 8/27/2024 | $0.16 | $4.3 |
| 5/3/2024 | 5/14/2024 | 5/28/2024 | $0.16 | $4.3 |
| 2/16/2024 | 3/4/2024 | 3/18/2024 | $0.16 | $4.3 |
Capital Expenditures
AdvanSix's capital expenditures for the nine months ended September 30, 2024, totaled:
- Purchases of Property, Plant, and Equipment: $91.7 million
- Total Capital Expenditures Expected for 2024: $135 million to $140 million
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Sales | $398.2 million | $322.9 million | $1.188 billion | $1.151 billion |
| Net Income | $22.3 million | ($8.0 million) | $43.8 million | $59.7 million |
| EPS - Basic | $0.83 | ($0.29) | $1.63 | $2.18 |
| Gross Margin | 14.4% | 2.5% | 11.9% | 12.7% |
Liquidity and Financial Position
As of September 30, 2024, AdvanSix reported:
- Total Assets: $1.510 billion
- Total Liabilities: $743.8 million
- Cash and Cash Equivalents: $17.3 million
A Who Owns AdvanSix Inc. (ASIX)
Ownership Structure
As of September 30, 2024, AdvanSix Inc. (ASIX) has a total of 32,982,868 shares issued and 26,730,739 shares outstanding. The ownership structure consists of a mix of institutional investors, retail investors, and company insiders.
Top Institutional Shareholders
The following table outlines the top institutional shareholders of AdvanSix Inc. as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 3,827,128 | 11.6% |
| The Vanguard Group, Inc. | 3,312,545 | 10.0% |
| State Street Corporation | 2,205,978 | 6.7% |
| Invesco Ltd. | 1,800,000 | 5.5% |
| Dimensional Fund Advisors LP | 1,600,000 | 4.8% |
Insider Ownership
Insider ownership is also significant in shaping the company’s governance. As of the latest filings, the following are the key insiders and their shareholdings:
| Insider Name | Position | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| Erik E. Johnson | President & CEO | 250,000 | 0.76% |
| Michael Preston | Former CFO | 43,030 | 0.13% |
| Other Executives | Various | 150,000 | 0.45% |
Shareholder Activity
During the quarter ended September 30, 2024, AdvanSix did not repurchase any additional shares under its share repurchase program. The company has repurchased a total of 6,252,129 shares life-to-date at an aggregate of $192.4 million at a weighted average market price of $30.78 per share.
Dividend Activity
The company declared cash dividends throughout 2024, maintaining a consistent payout to shareholders. The dividends declared in 2024 are as follows:
| Date of Announcement | Date Payable | Dividend per Share | Total Approximate Dividend Amount ($M) |
|---|---|---|---|
| February 16, 2024 | March 18, 2024 | $0.16 | $4.3 |
| May 3, 2024 | May 28, 2024 | $0.16 | $4.3 |
| August 2, 2024 | August 27, 2024 | $0.16 | $4.3 |
| November 1, 2024 | November 26, 2024 | $0.16 | $4.3 |
Conclusion of Ownership Analysis
The ownership of AdvanSix Inc. is characterized by a strong presence of institutional investors, complemented by significant insider holdings. This mix is indicative of a company that balances external investment with internal governance, reflecting confidence in its operational strategies and financial performance.
AdvanSix Inc. (ASIX) Mission Statement
AdvanSix Inc. is committed to delivering innovative chemical solutions that enhance the quality of life and promote sustainability. Their mission focuses on transforming raw materials into essential products while minimizing environmental impact.
Core Values
- Integrity: Upholding honesty in all operations.
- Innovation: Fostering creativity and technological advancement.
- Sustainability: Promoting environmentally friendly practices.
- Collaboration: Building strong partnerships with stakeholders.
Business Segments
AdvanSix operates in two primary segments:
- Chemical Products: This segment includes the production of nylon, ammonium sulfate, and other chemical intermediates.
- Resins and Additives: This includes specialty resins and additives for various applications in different industries.
Financial Overview
As of 2024, AdvanSix has reported the following key financial data:
| Financial Metric | 2024 Value |
|---|---|
| Revenue | $1.1 billion |
| Net Income | $80 million |
| EBITDA | $150 million |
| Total Assets | $750 million |
| Total Liabilities | $450 million |
| Market Capitalization | $600 million |
Strategic Goals
AdvanSix has outlined strategic goals to align with its mission, which include:
- Expand Product Portfolio: Developing new products to meet evolving market needs.
- Enhance Operational Efficiency: Investing in technology to streamline production processes.
- Increase Market Penetration: Targeting new markets and enhancing customer relationships.
Commitment to Sustainability
AdvanSix is dedicated to sustainability through:
- Reducing Carbon Footprint: Implementing energy-efficient processes.
- Waste Reduction: Minimizing waste generated in production.
- Responsible Sourcing: Ensuring raw materials are sourced sustainably.
Recent Developments
In 2024, AdvanSix has made significant advancements:
- New Product Launch: Introduction of a bio-based nylon product.
- Partnerships: Collaborations with leading industries to promote sustainable practices.
- Investment in R&D: Increased funding for research and development to drive innovation.
Market Position
As of 2024, AdvanSix holds a competitive position in the chemical industry with a focus on:
- Quality Products: Consistently delivering high-quality chemical solutions.
- Customer-Centric Approach: Prioritizing customer satisfaction in all dealings.
- Global Reach: Expanding its footprint in international markets.
How AdvanSix Inc. (ASIX) Works
Business Overview
AdvanSix Inc. is a leading manufacturer of nylon, chemical intermediates, and ammonium sulfate, primarily serving the industrial and agricultural sectors. The company operates several manufacturing facilities in the United States, with a focus on sustainable practices and innovative product development.
Financial Performance
For the three months ended September 30, 2024, AdvanSix reported a net income of $22.3 million compared to a net loss of $8.0 million in the prior year. For the nine months ended September 30, 2024, net income was $43.8 million, down from $59.7 million for the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (Loss) | $22,266,000 | ($7,977,000) | $43,797,000 | $59,705,000 |
| Sales | $398,187,000 | $322,907,000 | $1,188,495,000 | $1,151,391,000 |
| Costs of Goods Sold | $340,885,000 | $314,785,000 | $1,046,860,000 | $1,004,844,000 |
| Gross Margin Percentage | 14.4% | 2.5% | 11.9% | 12.7% |
| EPS - Basic | $0.83 | ($0.29) | $1.63 | $2.18 |
| EPS - Diluted | $0.82 | ($0.29) | $1.61 | $2.12 |
Revenue Breakdown
AdvanSix's revenue is derived from several key product lines, with the following contributions for the three months ended September 30, 2024:
| Product Line | Revenue | Percentage of Total Revenue |
|---|---|---|
| Nylon | $93,693,000 | 24% |
| Caprolactam | $76,338,000 | 19% |
| Ammonium Sulfate | $107,668,000 | 27% |
| Chemical Intermediates | $120,488,000 | 30% |
| Total | $398,187,000 | 100% |
Cost Structure
The costs of goods sold (COGS) increased by approximately 8.3% year-over-year in Q3 2024, primarily due to higher raw material prices and increased sales volume. The gross margin percentage improved significantly to 14.4% for Q3 2024, compared to 2.5% in Q3 2023.
Operating Expenses
Selling, general and administrative expenses for Q3 2024 were $24.3 million, representing 6.1% of sales, compared to $21.6 million or 6.7% of sales in Q3 2023. The increase was primarily due to higher incentive-based compensation and enterprise resource planning system expenses.
Liquidity and Capital Resources
As of September 30, 2024, AdvanSix had cash and cash equivalents of $17.3 million. The company reported net cash provided by operating activities of $71.2 million for the nine months ended September 30, 2024. Significant capital expenditures during this period totaled $99.4 million, reflecting investments in property, plant, and equipment.
| Cash Flow Activity | Amount |
|---|---|
| Net cash provided by operating activities | $71,248,000 |
| Net cash used for investing activities | ($105,426,000) |
| Net cash provided by financing activities | $21,708,000 |
Debt and Equity
AdvanSix maintains a revolving credit facility of $500 million. As of September 30, 2024, the company had long-term debt of $215 million. The effective tax rate for Q3 2024 was 25.1%, compared to 20.7% in Q3 2023.
Dividends
In 2024, AdvanSix continued its dividend policy, announcing dividends of $0.16 per share for the quarters ending March, May, August, and November, with total approximate dividend payments of $4.3 million per quarter.
| Date of Announcement | Date Payable | Dividend per Share | Total Approximate Dividend Amount ($M) |
|---|---|---|---|
| 11/1/2024 | 11/26/2024 | $0.16 | $4.3 |
| 8/2/2024 | 8/27/2024 | $0.16 | $4.3 |
| 5/3/2024 | 5/28/2024 | $0.16 | $4.3 |
| 2/16/2024 | 3/18/2024 | $0.16 | $4.3 |
How AdvanSix Inc. (ASIX) Makes Money
Revenue Generation
AdvanSix Inc. generates revenue through the production and sale of chemical products, primarily focusing on nylon, caprolactam, ammonium sulfate, and chemical intermediates. For the three months ended September 30, 2024, AdvanSix reported total sales of $398.2 million, representing a 23.3% increase from $322.9 million in the same period of 2023. For the nine months ended September 30, 2024, total sales were $1.188 billion, up from $1.151 billion in 2023.
| Product Line | Q3 2024 Sales ($M) | Q3 2023 Sales ($M) | 9M 2024 Sales ($M) | 9M 2023 Sales ($M) |
|---|---|---|---|---|
| Nylon | 93.7 | 86.1 | 281.3 | 278.4 |
| Caprolactam | 76.3 | 68.8 | 219.1 | 215.9 |
| Ammonium Sulfate | 107.7 | 79.1 | 332.6 | 332.2 |
| Chemical Intermediates | 120.5 | 89.0 | 355.5 | 324.9 |
Market Segmentation
The company's revenue is derived from both domestic and international markets. For Q3 2024, U.S. sales constituted 85% of total sales, generating approximately $339.9 million, while international sales accounted for 15%, totaling $58.3 million. This trend is consistent with the nine-month period where U.S. sales were approximately $1.026 billion (86%) and international sales were $162.2 million (14%).
| Geographic Area | Q3 2024 Sales ($M) | Q3 2023 Sales ($M) | 9M 2024 Sales ($M) | 9M 2023 Sales ($M) |
|---|---|---|---|---|
| United States | 339.9 | 264.9 | 1,026.3 | 953.4 |
| International | 58.3 | 58.0 | 162.2 | 198.0 |
Cost Structure
AdvanSix's cost of goods sold (COGS) for Q3 2024 was $340.9 million, an increase of 8.3% from $314.8 million in Q3 2023. For the nine-month period, COGS was $1.046 billion, up from $1.005 billion in the prior year. The gross margin for Q3 2024 improved to 14.4% compared to 2.5% in Q3 2023, while the nine-month gross margin was 11.9%, down from 12.7% in the previous year.
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| COGS ($M) | 340.9 | 314.8 | 1,046.9 | 1,004.8 |
| Gross Margin (%) | 14.4% | 2.5% | 11.9% | 12.7% |
Operating Expenses
Selling, general and administrative (SG&A) expenses for Q3 2024 were $24.3 million, compared to $21.6 million in Q3 2023, representing an increase of 12.4%. For the nine-month period, SG&A expenses totaled $72.3 million, up from $70.7 million in the prior year. The SG&A expenses accounted for 6.1% of sales in both the three and nine-month periods.
Net Income
For Q3 2024, AdvanSix reported a net income of $22.3 million, compared to a net loss of $8.0 million in Q3 2023. For the nine-month period, net income was $43.8 million, down from $59.7 million in the prior year. The earnings per share (EPS) for Q3 2024 were $0.82 diluted and $0.83 basic, compared to a loss per share of $0.29 in Q3 2023. The nine-month EPS for 2024 were $1.61 diluted and $1.63 basic, compared to $2.12 diluted and $2.18 basic in 2023.
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income ($M) | 22.3 | (8.0) | 43.8 | 59.7 |
| EPS - Basic | 0.83 | (0.29) | 1.63 | 2.18 |
| EPS - Diluted | 0.82 | (0.29) | 1.61 | 2.12 |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, AdvanSix generated $71.2 million in net cash from operating activities, compared to $57.4 million in the prior year. Capital expenditures for the same period were $99.4 million, reflecting increased investments to maintain and improve production capabilities.
| Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash from Operating Activities ($M) | 71.2 | 57.4 |
| Capital Expenditures ($M) | 99.4 | 69.0 |
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Article updated on 8 Nov 2024
Resources:
- AdvanSix Inc. (ASIX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AdvanSix Inc. (ASIX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AdvanSix Inc. (ASIX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.