# EDGAR Filing Document

**Accession Number:** 0001673985
**File Stem:** 0001673985-23-000004
**Filing Date:** 2023-2
**Character Count:** 36021
**Document Hash:** ccfc492d44d61db148661602537df5d8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001673985-23-000004.hdr.sgml**: 20230217

**ACCESSION NUMBER**: 0001673985-23-000004

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230217

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230217

**DATE AS OF CHANGE**: 20230217

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AdvanSix Inc.
- **CENTRAL INDEX KEY:** 0001673985
- **STANDARD INDUSTRIAL CLASSIFICATION:** PLASTICS, MATERIALS, SYNTH RESINS & NONVULCAN ELASTOMERS [2821]
- **IRS NUMBER:** 812525089
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37774
- **FILM NUMBER:** 23640232

**BUSINESS ADDRESS:**
- **STREET 1:** 300 KIMBALL DRIVE
- **STREET 2:** SUITE 101
- **CITY:** PARSIPPANY
- **STATE:** NJ
- **ZIP:** 07054
- **BUSINESS PHONE:** (973) 526-1800

**MAIL ADDRESS:**
- **STREET 1:** 300 KIMBALL DRIVE
- **STREET 2:** SUITE 101
- **CITY:** PARSIPPANY
- **STATE:** NJ
- **ZIP:** 07054

?xml version="1.0" ? asix-20230217

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

_____________________________________

**Form 8-K**

_____________________________________

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 17, 2023**

**ADVANSIX INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware**<br>(State or other jurisdiction<br>of incorporation) | **1-37774**<br>(Commission File Number) | **81-2525089**<br>(I.R.S. Employer<br>Identification No.) |

---

**300 Kimball Drive, Suite 101**

**Parsippany, New Jersey 07054**

(Address of principal executive offices)

Registrant's telephone number, including area code: **(973) 526-1800**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, par value $0.01 per share | ASIX | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**ITEM 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On February 17, 2023, AdvanSix Inc. (the "Company") issued a press release announcing its financial results for the quarter and full year ended December 31, 2022. A copy of the press release is furnished herewith as Exhibit 99.1.

**ITEM 8.01&nbsp;&nbsp;&nbsp;&nbsp;Other Events.**

*Dividend*

On February 17, 2023, the Company announced that its Board of Directors ("Board") declared a cash dividend of $0.145 per share on the Company's common stock. The dividend will be paid on March 17, 2023 to stockholders of record as of the close of business on March 3, 2023.

*Share Repurchase Authorization*

On February 17, 2023, the Company announced that its Board authorized a share repurchase program of up to an additional $75 million of the Company's common stock. This authorization is in addition to the remaining capacity authorized under the $75 million share repurchase program announced in February 2019. Repurchases may be made from time to time on the open market, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act. The size and timing of these repurchases will depend on pricing, market and economic conditions, legal and contractual requirements and other factors. The repurchase program has no expiration date and may be modified, suspended or discontinued at any time.

The Company's announcement of the dividend and the share repurchase authorization is included in the press release furnished herewith as Exhibit 99.1.

**ITEM 9.01 &nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.** 

**(d) Exhibits** 

---

| | |
|:---|:---|
| Exhibit<br>Number | Description |
| 99.1 | <u>[Press Release dated February 17, 2023](exhibit99q42022prearningsf.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**<u>SIGNATURE</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 17, 2023

---

| | |
|:---|:---|
| AdvanSix Inc. | AdvanSix Inc. |
| By: | <u>/s/ Achilles B. Kintiroglou</u> |
| Name: | Achilles B. Kintiroglou |
| Title: | Senior Vice President, General<br>Counsel and Corporate Secretary |

---

## Exhibit 99.1

 **Exhibit 99.1**

![image1a.jpg](image1a.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**AdvanSix.com&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

News Release

**ADVANSIX ANNOUNCES FOURTH QUARTER AND FULL YEAR 2022 FINANCIAL RESULTS**

*Record annual sales, earnings and cash flow in 2022*

*4Q22 Sales of $404 million, down 5% versus prior year*

*4Q22 Earnings Per Share of $1.18; Adjusted Earnings Per Share of $1.27*

*4Q22 Cash Flow from Operations of $70 million, up 109% versus prior year*

*Returned $49 million of cash to shareholders through repurchases and dividends in 2022*

*Board of Directors authorizes additional $75 million share repurchase program*

*Awarded Platinum Rating for corporate social responsibility from EcoVadis*

**Parsippany, N.J., February 17, 2023** - AdvanSix **(NYSE: ASIX)** today announced its financial results for the fourth quarter and full year ending December 31, 2022. In 2022, the Company generated record annual sales, earnings and cash flow reflecting strong commercial execution. In addition, the Company enhanced its capital deployment with the acquisition of U.S. Amines and an increase in return of cash to shareholders through opportunistic share repurchases and an increased dividend, while further reducing debt.

**<u>Full Year 2022 Summary</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales up approximately 15% versus prior year driven by 20% favorable impact of market-based pricing, 2% higher raw material pass-through pricing and 4% contribution from acquisitions, offset by 10% lower volume

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net Income of $171.9 million, an increase of $32.1 million versus the prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA of $308.5 million, an increase of $41.5 million versus the prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash Flow from Operations of $273.6 million, an increase of $54.8 million versus the prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital Expenditures of $89.4 million, an increase of $32.6 million versus the prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Free Cash Flow of $184.2 million, an increase of $22.1 million versus the prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Returned $49 million of cash to shareholders through share repurchases and an increased dividend

Summary full year 2022 financial results for the Company are included below:

------

---

| | | |
|:---|:---|:---|
| (*$ in Thousands, Except Earnings Per Share)* | **FY 2022** | **FY 2021** |
| Sales | $1945640 | $1684625 |
| Net Income | 171886 | 139791 |
| Diluted Earnings Per Share | $5.92 | $4.81 |
| Adjusted Diluted Earnings Per Share <sup>(1)</sup> | $6.28 | $5.15 |
| Adjusted EBITDA <sup>(1)</sup> | 308481 | 266950 |
| *Adjusted EBITDA Margin %* <sup>(1)</sup> | *15.9%* | *15.8%* |
| Cash Flow from Operations | 273601 | 218849 |
| Free Cash Flow <sup>(1)(2)</sup> | 184152 | 162038 |

---

*(1) See "Non-GAAP Measures" included in this press release for non-GAAP reconciliations*

*(2) Net cash provided by operating activities less capital expenditures*

"In 2022, AdvanSix built upon our track record of performance with earnings growth for the third consecutive year," said Erin Kane, president and CEO of AdvanSix. "We continue to progress our core strategies and in the fourth quarter our strong commercial performance helped to offset pockets of soft end market demand, customer destocking, and operational challenges. Cash flow generation was robust in the quarter as well supporting disciplined and value-accretive capital deployment. Our additional $75 million share repurchase authorization reinforces the flexibility we've built into our capital allocation strategy. In addition, we were recently honored with our second consecutive Platinum Rating from EcoVadis in recognition of our strengthening corporate social responsibility performance and ranking us among the top 1% of all companies assessed."

**<u>Fourth Quarter 2022 Summary</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales down approximately 5% versus prior year including a 10% favorable impact of market-based pricing and 4% contribution from acquisitions, offset by 15% lower volume and 4% lower raw material pass-through pricing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net Income of $33.6 million, an increase of $10.0 million versus the prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA of $66.6 million, an increase of $14.6 million versus the prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA margin of 16.5%, up 420 bps versus the prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash Flow from Operations of $69.6 million, an increase of $36.3 million versus the prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital Expenditures of $28.4 million, an increase of $9.1 million versus the prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Free Cash Flow of $41.2 million, an increase of $27.2 million versus the prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Repurchased 284,201 shares for approximately $10 million in 4Q22

Summary fourth quarter 2022 financial results for the Company are included below:

------

---

| | | |
|:---|:---|:---|
| (*$ in Thousands, Except Earnings Per Share)* | **4Q 2022** | **4Q 2021** |
| Sales | $404062 | $424064 |
| Net Income | 33625 | 23587 |
| Diluted Earnings Per Share | $1.18 | $0.80 |
| Adjusted Diluted Earnings Per Share <sup>(1)</sup> | $1.27 | $0.88 |
| Adjusted EBITDA <sup>(1)</sup> | 66580 | 51980 |
| *Adjusted EBITDA Margin %* <sup>(1)</sup> | *16.5%* | *12.3%* |
| Cash Flow from Operations | 69614 | 33326 |
| Free Cash Flow <sup>(1)(2)</sup> | 41175 | 13986 |

---

*(1) See "Non-GAAP Measures" included in this press release for non-GAAP reconciliations*

*(2) Net cash provided by operating activities less capital expenditures*

Sales of $404 million in the quarter decreased approximately 5% versus the prior year. Sales volume decreased approximately 15% driven primarily by soft end market demand and customer destocking. Raw material pass-through pricing was unfavorable by 4% following a net cost decrease in benzene and propylene (inputs to cumene which is a key feedstock to our products). Market-based pricing was favorable by 10% compared to the prior year primarily driven by higher ammonium sulfate pricing. The acquisition of U.S. Amines contributed approximately 4% to sales in the quarter.

Sales by product line and approximate percentage of total sales are included below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *($ in Thousands)* | **FY 2022** | **FY 2022** | **FY 2021** | **FY 2021** |
|  | **Sales** | **% of Total** | **Sales** | **% of Total** |
| Nylon | $485241 | 25% | $422897 | 25% |
| Caprolactam | 319863 | 16% | 316132 | 19% |
| Chemical Intermediates | 511515 | 26% | 544504 | 32% |
| Ammonium Sulfate | 629021 | 33% | 401092 | 24% |
|  | $1945640 | 100% | $1684625 | 100% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *($ in Thousands)* | **4Q 2022** | **4Q 2022** | **4Q 2021** | **4Q 2021** |
|  | **Sales** | **% of Total** | **Sales** | **% of Total** |
| Nylon | $93510 | 23% | $105288 | 25% |
| Caprolactam | 71871 | 18% | 73673 | 17% |
| Chemical Intermediates | 101947 | 25% | 127862 | 30% |
| Ammonium Sulfate | 136734 | 34% | 117241 | 28% |
|  | $404062 | 100% | $424064 | 100% |

---

Adjusted EBITDA of $66.6 million in the quarter increased $14.6 million versus the prior year primarily due to higher market-based pricing and the favorable year-over-year impact of planned plant turnarounds, partially offset by lower sales volume and operational performance.

------

Adjusted earnings per share of $1.27 increased $0.39 versus the prior year driven primarily by the factors discussed above.

Cash flow from operations of $69.6 million in the quarter increased $36.3 million versus the prior year primarily due to higher net income. Capital expenditures of $28.4 million in the quarter increased $9.1 million versus the prior year.

**<u>Dividend</u>**

The Company's Board of Directors declared a quarterly cash dividend of $0.145 per share on the Company's common stock. The dividend is payable on March 17, 2023 to stockholders of record as of the close of business on March 3, 2023.

**<u>Outlook</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expect strong underlying agriculture and fertilizer industry fundamentals to continue

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expect balanced supply and demand conditions for North American acetone

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expect headwinds in consumer durables and building and construction end markets across nylon and other chemical intermediates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expect Capital Expenditures of $110 million to $120 million in 2023, reflecting increased spend due to critical infrastructure, other maintenance, and growth and cost savings projects

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expect pre-tax income impact of planned plant turnarounds to be $28 million to $33 million in 2023 versus approximately $50 million in 2022

"With our diverse product portfolio, continued strong agricultural and fertilizer industry fundamentals and the resilience of our business model, AdvanSix is well positioned for another year of differentiated performance in 2023. While we anticipate the challenges of an uncertain environment to impact several end applications within our nylon and chemical intermediates product lines, we remain confident in our demonstrated ability to perform through various business and macroeconomic cycles. We have structurally improved the earnings power of this business and are targeting a return to higher plant production rates in 2023 to complement our strong commercial performance. Our healthy balance sheet will serve us well and continues to support our ability to deploy capital and maximize shareholder value," concluded Kane.

**<u>Conference Call Information</u>**

AdvanSix will discuss its results during its investor conference call today starting at 9:00 a.m. ET. To participate on the conference call, dial (844) 855-9494 (domestic) or (412) 858-4602 (international) approximately 10 minutes before the 9:00 a.m. ET start, and tell the operator that you are dialing in for AdvanSix's fourth quarter 2022 earnings call. The live webcast of the investor call as well as related presentation materials can be accessed at <u>http://investors.advansix.com</u>. Investors can hear a replay of the conference call from 12 noon ET on February 17 until 12 noon ET on February 24 by dialing (877)

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344-7529 (domestic) or (412) 317-0088 (international). The access code is 2764385.

**About AdvanSix**

AdvanSix plays a critical role in global supply chains, innovating and delivering essential products for our customers in a wide variety of end markets and applications that touch people's lives, such as building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives and electronics. Our reliable and sustainable supply of quality products emerges from the integrated value chain of our five U.S.-based manufacturing facilities. AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, chemical intermediates, and plant nutrients, guided by our core values of Safety, Integrity, Accountability and Respect. More information on AdvanSix can be found at <u>http://www.advansix.com</u>.

**Forward Looking Statements**

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or developments that our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements may be identified by words such as "expect," "anticipate," "estimate," "outlook," "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" and other variations or similar terminology and expressions. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and difficult to predict, which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: general economic and financial conditions in the U.S. and globally, including the impact of the coronavirus (COVID-19) pandemic and any resurgences; the potential effects of inflationary pressures, labor market shortages and supply chain issues; instability or volatility in financial markets or other unfavorable economic or business conditions caused by geopolitical concerns, including as a result of the conflict between Russia and Ukraine; the scope, shape and pace of recovery of the pandemic including the impact of social and economic restrictions and other containment measures taken to combat virus transmission; the effect on our customers' demand for our products and our suppliers' ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.; our ability to sell and provide our goods and services; the ability of our customers to pay for our products; any closures of our and our customers' offices and facilities; risks associated with increased phishing, compromised business emails and other cybersecurity attacks and disruptions to our technology infrastructure; risks associated with employees working remotely or operating with a reduced workforce; risks associated with our indebtedness including compliance with financial and restrictive covenants, and our ability to access capital on reasonable terms, at a reasonable cost, or at all, due to economic conditions or otherwise; the impact of scheduled turnarounds and significant unplanned downtime and interruptions of production or logistics operations as a result of mechanical issues or other unanticipated events such as fires, severe weather conditions, natural disasters, pandemics and geopolitical conflicts and related events; price fluctuations, cost increases and supply of raw materials; our operations and growth projects requiring substantial capital; growth rates and cyclicality of the industries we serve including global changes in supply and demand; failure to develop and commercialize new products or technologies; loss of significant customer relationships; adverse trade and tax policies; extensive environmental, health and safety laws that apply to our operations; hazards associated with chemical manufacturing, storage and transportation; litigation associated with chemical manufacturing and our business operations generally; inability to acquire and integrate businesses, assets, products or technologies; protection of our intellectual property and proprietary information; prolonged work stoppages as a result of labor difficulties or otherwise; cybersecurity, data privacy incidents and disruptions to our technology infrastructure; failure to maintain effective internal controls; our ability to declare and pay quarterly cash dividends and the amounts and timing of any future dividends; our ability to repurchase our common stock and the amount and timing of any future repurchases; disruptions in supply chain, transportation and logistics; potential for uncertainty regarding qualification for tax treatment of our spin-off; fluctuations in our stock price; and changes in laws or regulations applicable to our business. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our filings with the Securities and Exchange Commission (SEC), including the risk factors in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, as updated in subsequent reports filed with the SEC.

**Non-GAAP Financial Measures**

This press release includes certain non-GAAP financial measures intended to supplement, not to act as substitutes for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in this press release. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. Non-GAAP measures in this press release may be calculated in a way that is not comparable to similarly-titled measures reported by other companies.

\# \# \#

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| | |
|:---|:---|
| **Contacts:** | |
| **Media** | **Investors** |
| Janeen Lawlor | Adam Kressel |
| (973) 526-1615 | (973) 526-1700 |
| janeen.lawlor@advansix.com | adam.kressel@advansix.com |

---

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**AdvanSix Inc.**

**Consolidated Balance Sheets**

**(Unaudited)**

**(Dollars in thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $30985 | $15100 |
| &nbsp;&nbsp;&nbsp;Accounts and other receivables – net | 175429 | 178140 |
| &nbsp;&nbsp;&nbsp;Inventories – net | 215502 | 149570 |
| &nbsp;&nbsp;&nbsp;Taxes receivable | 9771 | 947 |
| &nbsp;&nbsp;&nbsp;Other current assets | 9241 | 6097 |
| Total current assets | 440928 | 349854 |
| Property, plant and equipment – net | 811065 | 767964 |
| Operating lease right-of-use assets | 114688 | 136207 |
| Goodwill | 56192 | 17592 |
| Intangible assets | 49242 | 17980 |
| Other assets | 23216 | 22402 |
| Total assets | $1495331 | $1311999 |
| **LIABILITIES** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $272770 | $221234 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 48820 | 49712 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities – short-term | 37472 | 36127 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income and customer advances | 34430 | 2749 |
| Total current liabilities | 393492 | 309822 |
| Deferred income taxes | 160409 | 133330 |
| Operating lease liabilities – long-term | 77571 | 100580 |
| Line of credit – long-term | 115000 | 135000 |
| Postretirement benefit obligations |  | 18243 |
| Other liabilities | 10679 | 13834 |
| Total liabilities | 757151 | 710809 |
| **STOCKHOLDERS' EQUITY** |  |  |
| Common stock, par value $0.01; 200,000,000 shares authorized; 31,977,593 shares issued and 27,446,520 outstanding at December 31, 2022; 31,755,430 shares issued and 28,139,954 outstanding at December 31, 2021 | 320 | 318 |
| Preferred stock, par value $0.01; 50,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2022 and 2021 |  |  |
| Treasury stock at par (4,531,073 shares at December 31, 2022; 3,615,476 shares at December 31, 2021) | (45) | (36) |
| Additional paid-in capital | 174585 | 195931 |
| Retained earnings | 567517 | 411516 |
| Accumulated other comprehensive loss | (4197) | (6539) |
| Total stockholders' equity | 738180 | 601190 |
| Total liabilities and stockholders' equity | $1495331 | $1311999 |

---

------

**AdvanSix Inc.**

**Consolidated Statements of Operations**

**(Unaudited)**

**(Dollars in thousands, except share and per share amounts)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Twelve Months Ended<br>December 31,** | **Twelve Months Ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Sales | $404062 | $424064 | $1945640 | $1684625 |
| Costs, expenses and other: |  |  |  |  |
| &nbsp;&nbsp;Costs of goods sold | 335033 | 369538 | 1631161 | 1410503 |
| &nbsp;&nbsp;Selling, general and administrative expenses | 22628 | 20873 | 87748 | 82985 |
| &nbsp;&nbsp;Interest expense, net | 763 | 927 | 2781 | 5023 |
| &nbsp;&nbsp;Other non-operating (income) expense, net | (16) | 648 | (1841) | 998 |
| Total costs, expenses and other | 358408 | 391986 | 1719849 | 1499509 |
| Income before taxes | 45654 | 32078 | 225791 | 185116 |
| Income tax expense | 12029 | 8491 | 53905 | 45325 |
| Net income | $33625 | $23587 | $171886 | $139791 |
| Earnings per common share |  |  |  |  |
| &nbsp;&nbsp;Basic | $1.22 | $0.84 | $6.15 | $4.97 |
| &nbsp;&nbsp;Diluted | $1.18 | $0.80 | $5.92 | $4.81 |
| Weighted average common shares outstanding |  |  |  |  |
| &nbsp;&nbsp;Basic | 27572344 | 28201439 | 27969436 | 28152876 |
| &nbsp;&nbsp;Diluted | 28608181 | 29417713 | 29031107 | 29045186 |

---

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**AdvanSix Inc.**

**Consolidated Statements of Cash Flows**

**(Unaudited)**

**(Dollars in thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Twelve Months Ended<br>December 31,** | **Twelve Months Ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Cash flows from operating activities:** |  |  |  |  |
| Net income | $33625 | $23587 | $171886 | $139791 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 17483 | 16282 | 69353 | 65340 |
| &nbsp;&nbsp;&nbsp;Loss on disposal of assets | 218 | 869 | 1521 | 1711 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 7532 | (6533) | 16228 | 4702 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 2680 | 2693 | 10279 | 11299 |
| &nbsp;&nbsp;&nbsp;Amortization of deferred financing fees | 154 | 253 | 618 | 677 |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities, net of business acquisitions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts and other receivables | 10496 | (7223) | 17842 | (53772) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (57070) | (6658) | (57043) | 31227 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes receivable | 5159 | (610) | (8824) | 11342 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 12401 | (1654) | 46170 | 25393 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 4544 | 8236 | (3122) | 14654 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income and customer advances | 31869 | (389) | 31681 | (23630) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets and liabilities | 523 | 4473 | (22988) | (9885) |
| Net cash provided by operating activities | 69614 | 33326 | 273601 | 218849 |
| **Cash flows from investing activities:** |  |  |  |  |
| Expenditures for property, plant and equipment | (28439) | (19340) | (89449) | (56811) |
| Acquisition of businesses |  |  | (97456) | (9523) |
| Other investing activities | (781) | (253) | (2368) | (1228) |
| Net cash used for investing activities | (29220) | (19593) | (189273) | (67562) |
| **Cash flows from financing activities:** |  |  |  |  |
| Borrowings from line of credit | 80500 | 42500 | 434500 | 176000 |
| Payments of line of credit | (100500) | (42500) | (454500) | (316000) |
| Payment of line of credit facility fees |  | (2442) |  | (2442) |
| Principal payments of finance leases | (214) | (201) | (926) | (735) |
| Dividend payments | (3990) | (3518) | (15073) | (3518) |
| Purchase of treasury stock | (10157) | (63) | (33748) | (652) |
| Issuance of common stock | 258 | 352 | 1304 | 554 |
| Net cash used for financing activities | (34103) | (5872) | (68443) | (146793) |
| Net change in cash and cash equivalents | 6291 | 7861 | 15885 | 4494 |
| Cash and cash equivalents at beginning of period | 24694 | 7239 | 15100 | 10606 |
| Cash and cash equivalents at the end of period | $30985 | $15100 | $30985 | $15100 |
| Supplemental non-cash investing activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures included in accounts payable |  |  | $14879 | $11720 |

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**AdvanSix Inc.**

**Non-GAAP Measures**

**(Dollars in thousands, except share and per share amounts)**

**Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Twelve Months Ended<br>December 31,** | **Twelve Months Ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Net cash provided by operating activities | $69614 | $33326 | $273601 | $218849 |
| Expenditures for property, plant and equipment | (28439) | (19340) | (89449) | (56811) |
| Free cash flow <sup>(1)</sup> | $41175 | $13986 | $184152 | $162038 |
| <sup>(1)</sup> Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment | <sup>(1)</sup> Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment | <sup>(1)</sup> Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment | <sup>(1)</sup> Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment | <sup>(1)</sup> Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment |

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*The Company believes that this metric is useful to investors and management as a measure to evaluate our ability to generate cash flow from business operations and the impact that this cash flow has on our liquidity.*

**Reconciliation of Net Income to Adjusted EBITDA and Earnings Per Share to Adjusted Earnings Per Share**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Twelve Months Ended<br>December 31,** | **Twelve Months Ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Net income | 33625 | 23587 | 171886 | 139791 |
| Non-cash stock-based compensation | 2680 | 2693 | 10279 | 11299 |
| Non-recurring, unusual or extraordinary expenses |  |  |  |  |
| Non-cash amortization from acquisitions | 532 | 65 | 1815 | 239 |
| Non-recurring M&A costs |  |  | 277 | 172 |
| Benefit from income taxes relating to reconciling items | (535) | (420) | (1996) | (1798) |
| Adjusted Net Income | 36302 | 25925 | 182261 | 149703 |
| Interest expense, net | 763 | 927 | 2781 | 5023 |
| Income tax expense - adjusted | 12564 | 8911 | 55901 | 47123 |
| Depreciation and amortization - adjusted | 16951 | 16217 | 67538 | 65101 |
| Adjusted EBITDA | 66580 | 51980 | 308481 | 266950 |
| Sales | 404062 | 424064 | 1945640 | 1684625 |
| Adjusted EBITDA Margin <sup>(2)</sup> | 16.5% | 12.3% | 15.9% | 15.8% |
| <sup>(2)</sup> Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales | <sup>(2)</sup> Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales | <sup>(2)</sup> Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales |  |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Twelve Months Ended<br>December 31,** | **Twelve Months Ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Net Income | $33625 | $23587 | $171886 | $139791 |
| Adjusted Net Income | 36302 | 25925 | 182261 | 149703 |
| Weighted-average number of common shares outstanding - basic | 27572344 | 28201439 | 27969436 | 28152876 |
| Dilutive effect of equity awards and other stock-based holdings | 1035837 | 1216274 | 1061671 | 892310 |
| Weighted-average number of common shares outstanding - diluted | 28608181 | 29417713 | 29031107 | 29045186 |
| EPS - Basic | $1.22 | $0.84 | $6.15 | $4.97 |
| EPS - Diluted | $1.18 | $0.80 | $5.92 | $4.81 |
| Adjusted EPS - Basic | $1.32 | $0.92 | $6.52 | $5.32 |
| Adjusted EPS - Diluted | $1.27 | $0.88 | $6.28 | $5.15 |

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*The Company believes the non-GAAP financial measures presented in this release provide meaningful supplemental information as they are used by the Company's management to evaluate the Company's operating performance, enhance a reader's understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to its competitors, as these non-GAAP measures exclude items that are not considered core to the Company's operations.*

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**AdvanSix Inc.**

**Appendix**

**(Pre-tax income impact, Dollars in millions)**

**<u>Planned Plant Turnaround Schedule</u>** <sup>(3)</sup>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **<u>1Q</u>** | **<u>2Q</u>** | **<u>3Q</u>** | **<u>4Q</u>** | **<u>FY</u>** |
| **2017** |  | ~$10 | ~$4 | ~$20 | ~$34 |
| **2018** | ~$2 | ~$10 | ~$30 |  | ~$42 |
| **2019** |  | ~$5 | ~$5 | ~$25 | ~$35 |
| **2020** | ~$2 | ~$7 | ~$20 | ~$2 | ~$31 |
| **2021** | ~$3 | ~$8 |  | ~$18 | ~$29 |
| **2022** | ~$1 | ~$5 | ~$44 |  | ~$50 |
| **2023E** | ~$3 |  | $25-$30 |  | $28-$33 |

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<sup>(3)</sup> Primarily reflects the impact of fixed cost absorption, maintenance expense, and the purchase of feedstocks which are normally manufactured by the Company.