Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-37774 | |
Entity Registrant Name | AdvanSix Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-2525089 | |
Entity Address, Address Line One | 300 Kimball Drive | |
Entity Address, Address Line Two | Suite 101 | |
Entity Address, City or Town | Parsippany | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07054 | |
City Area Code | 973 | |
Local Phone Number | 526-1800 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ASIX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,564,614 | |
Amendment Flag | false | |
Entity Central Index Key | 0001673985 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Sales | $ 400,544 | $ 479,073 |
Costs, expenses and other: | ||
Costs of goods sold | 330,042 | 375,646 |
Selling, general and administrative expenses | 25,114 | 21,210 |
Interest expense, net | 1,267 | 563 |
Other non-operating (income) expense, net | (108) | (603) |
Total costs, expenses and other | 356,315 | 396,816 |
Income before taxes | 44,229 | 82,257 |
Income tax expense | 9,275 | 19,184 |
Net income | $ 34,954 | $ 63,073 |
Earnings per common share | ||
Basic (in dollars per share) | $ 1.27 | $ 2.24 |
Diluted (in dollars per share) | $ 1.22 | $ 2.15 |
Weighted average common shares outstanding | ||
Basic (in shares) | 27,601,784 | 28,199,871 |
Diluted (in shares) | 28,586,563 | 29,371,051 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 34,954 | $ 63,073 |
Foreign exchange translation adjustment | (33) | 57 |
Cash-flow hedges | (150) | 512 |
Other comprehensive income (loss), net of tax | (183) | 569 |
Comprehensive income | $ 34,771 | $ 63,642 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,826 | $ 30,985 |
Accounts and other receivables – net | 161,389 | 175,429 |
Inventories – net | 224,635 | 215,502 |
Taxes receivable | 1,023 | 9,771 |
Other current assets | 6,295 | 9,241 |
Total current assets | 395,168 | 440,928 |
Property, plant and equipment – net | 812,518 | 811,065 |
Operating lease right-of-use assets | 113,225 | 114,688 |
Goodwill | 56,192 | 56,192 |
Intangible assets | 48,480 | 49,242 |
Other assets | 23,232 | 23,216 |
Total assets | 1,448,815 | 1,495,331 |
Current liabilities: | ||
Accounts payable | 212,506 | 272,770 |
Accrued liabilities | 40,611 | 48,820 |
Operating lease liabilities – short-term | 36,171 | 37,472 |
Deferred income and customer advances | 25,672 | 34,430 |
Total current liabilities | 314,960 | 393,492 |
Deferred income taxes | 160,192 | 160,409 |
Operating lease liabilities – long-term | 77,418 | 77,571 |
Line of credit – long-term | 127,000 | 115,000 |
Postretirement benefit obligations | 1,139 | 0 |
Other liabilities | 10,039 | 10,679 |
Total liabilities | 690,748 | 757,151 |
COMMITMENTS AND CONTINGENCIES (Note 9) | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.01; 200,000,000 shares authorized; 32,532,842 shares issued and 27,668,715 outstanding at March 31, 2023; 31,977,593 shares issued and 27,446,520 outstanding at December 31, 2022 | 325 | 320 |
Preferred stock, par value $0.01; 50,000,000 shares authorized and 0 shares issued and outstanding at March 31, 2023 and December 31, 2022 | 0 | 0 |
Treasury stock at par (4,864,127 shares at March 31, 2023; 4,531,073 shares at December 31, 2022) | (48) | (45) |
Additional paid-in capital | 163,831 | 174,585 |
Retained earnings | 598,339 | 567,517 |
Accumulated other comprehensive loss | (4,380) | (4,197) |
Total stockholders' equity | 758,067 | 738,180 |
Total liabilities and stockholders' equity | $ 1,448,815 | $ 1,495,331 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 32,532,842 | 31,977,593 |
Common stock, shares outstanding (in shares) | 27,668,715 | 27,446,520 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 4,864,127 | 4,531,073 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 34,954 | $ 63,073 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,845 | 16,692 |
Loss on disposal of assets | 168 | 359 |
Deferred income taxes | (170) | (519) |
Stock-based compensation | 2,013 | 3,374 |
Amortization of deferred financing fees | 155 | 155 |
Changes in assets and liabilities, net of business acquisitions: | ||
Accounts and other receivables | 14,007 | (28,402) |
Inventories | (9,133) | (1,889) |
Taxes receivable | 8,748 | 0 |
Accounts payable | (53,388) | 9,904 |
Accrued liabilities | (8,408) | (11,718) |
Deferred income and customer advances | (8,758) | (315) |
Other assets and liabilities | 3,542 | (1,552) |
Net cash provided by operating activities | 1,575 | 49,162 |
Cash flows from investing activities: | ||
Expenditures for property, plant and equipment | (24,603) | (21,019) |
Acquisition of businesses | 0 | (98,589) |
Other investing activities | (1,003) | (296) |
Net cash used for investing activities | (25,606) | (119,904) |
Cash flows from financing activities: | ||
Borrowings from line of credit | 78,000 | 148,500 |
Payments of line of credit | (66,000) | (63,500) |
Principal payments of finance leases | (231) | (237) |
Dividend payments | (4,020) | (3,517) |
Purchase of treasury stock | (13,499) | (7,012) |
Issuance of common stock | 622 | 714 |
Net cash (used for) provided by financing activities | (5,128) | 74,948 |
Net change in cash and cash equivalents | (29,159) | 4,206 |
Cash and cash equivalents at beginning of period | 30,985 | 15,100 |
Cash and cash equivalents at the end of period | 1,826 | 19,306 |
Supplemental non-cash investing activities: | ||
Capital expenditures included in accounts payable | 8,193 | 7,335 |
Supplemental cash activities: | ||
Cash paid for interest | 1,191 | 408 |
Cash paid for income taxes | $ 91 | $ 22 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2021 | 31,755,430 | |||||
Beginning balance at Dec. 31, 2021 | $ 601,190 | $ 318 | $ 195,931 | $ 411,516 | $ (36) | $ (6,539) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 63,073 | 63,073 | ||||
Comprehensive income | ||||||
Foreign exchange translation adjustments | 57 | 57 | ||||
Cash-flow hedges | 512 | 512 | ||||
Pension obligation adjustments | 0 | |||||
Other comprehensive income (loss), net of tax | 569 | 569 | ||||
Issuance of common stock (in shares) | 144,875 | |||||
Issuance of common stock | 714 | $ 1 | 713 | |||
Purchase of treasury stock | (7,012) | (7,010) | (2) | |||
Stock-based compensation | 3,374 | 3,374 | ||||
Dividends | (3,517) | 313 | (3,830) | |||
Ending balance (in shares) at Mar. 31, 2022 | 31,900,305 | |||||
Ending balance at Mar. 31, 2022 | $ 658,391 | $ 319 | 193,321 | 470,759 | (38) | (5,970) |
Comprehensive income | ||||||
Stock repurchased during period (in shares) | 181,536 | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 27,446,520 | 31,977,593 | ||||
Beginning balance at Dec. 31, 2022 | $ 738,180 | $ 320 | 174,585 | 567,517 | (45) | (4,197) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 34,954 | 34,954 | ||||
Comprehensive income | ||||||
Foreign exchange translation adjustments | (33) | (33) | ||||
Cash-flow hedges | (150) | (150) | ||||
Pension obligation adjustments | 0 | |||||
Other comprehensive income (loss), net of tax | (183) | (183) | ||||
Issuance of common stock (in shares) | 555,249 | |||||
Issuance of common stock | 622 | $ 5 | 617 | |||
Purchase of treasury stock | (13,499) | (13,496) | (3) | |||
Stock-based compensation | 2,013 | 2,013 | ||||
Dividends | $ (4,020) | 112 | (4,132) | |||
Ending balance (in shares) at Mar. 31, 2023 | 27,668,715 | 32,532,842 | ||||
Ending balance at Mar. 31, 2023 | $ 758,067 | $ 325 | $ 163,831 | $ 598,339 | $ (48) | $ (4,380) |
Comprehensive income | ||||||
Stock repurchased during period (in shares) | 333,054 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 3 Months Ended | 59 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | |||
Stock repurchased during period (in shares) | 333,054 | 181,536 | 4,864,127 |
Organization, Operations and Ba
Organization, Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization, Operations and Basis of Presentation | Organization, Operations and Basis of Presentation Description of Business AdvanSix Inc. ("AdvanSix," the "Company," "we" or "our") is a diversified chemistry company playing 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. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of March 31, 2023, and its results of operations for the three months ended March 31, 2023 and 2022 and cash flows for the three months ended March 31, 2023 and 2022. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Form 10-K"). All intercompany transactions have been eliminated. Certain prior period amounts have been reclassified for consistency with the current period presentation. It is our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. Historically, the effects of this practice have generally not been significant to reported results for any quarter and only existed within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide the appropriate disclosures. Our actual closing dates for the three months ended March 31, 2023 and 2022 were April 1, 2023 and April 2, 2022, respectively. Liabilities to creditors to whom we have issued checks that remained outstanding at March 31, 2023 and December 31, 2022 aggregated to $5.2 million and $9.0 million, respectively, and were included in Cash and cash equivalents and Accounts payable in the Condensed Consolidated Balance Sheets. The Company's Board of Directors (the "Board") has authorized share repurchase programs to repurchase shares of the Company's common stock as follows: Date of Authorization Authorized Amount (millions) Authorized Amount Remaining as of March 31, 2023 (millions) May 4, 2018 $ 75.0 $ — February 22, 2019 75.0 25.2 February 17, 2023 75.0 75.0 Totals $ 225.0 $ 100.2 Repurchases may be made from time to time on the open market in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including through the use of trading plans intended to qualify under Rule 10b5-1 of 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 share repurchase program has no expiration date and may be modified, suspended or discontinued at any time. The par value of the shares repurchased is applied to Treasury stock and the excess of the purchase price over par value is applied to Additional paid-in capital. As of March 31, 2023, the Company has repurchased a total of 4,864,127 shares of common stock, including 841,354 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $149.6 million at a weighted average market price of $30.75 per share. As of March 31, 2023, $100.2 million remained available for share repurchases under the current authorization. During the period April 1, 2023 through April 28, 2023, the Company repurchased an additional 105,573 shares at a weighted average market price of $38.95 per share primarily under the current authorized repurchase program. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Accounting Pronouncements – The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The amendments in this ASU require that a buyer in a supplier finance program disclose sufficient quantitative and qualitative information about its supplier finance programs to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. On a retrospective basis, for each annual reporting period, an entity should disclose the key terms of the program, including a description of the payment terms, assets pledged as security or other forms of guarantees, the confirmed amount outstanding that remains unpaid, a description of where the obligations are presented in the balance sheet and a roll-forward of those obligations confirmed as well as the amount of obligations subsequently paid. In each interim reporting period, an entity should disclose the amount of confirmed obligations outstanding. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption of the amendments in this update is permitted. The Company adopted ASU 2022-04, effective January 1, 2023, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue Recognition We serve approximately 450 customers annually in more than 40 countries across a wide variety of industries. For the three months ended March 31, 2023 and 2022, the Company's ten largest customers accounted for approximately 37% of total sales during both periods. We typically sell to customers under master service agreements, with primarily one-year terms, or by purchase orders. We have historically experienced low customer turnover and have long-standing customer relationships, which span decades. Our largest customer is Shaw Industries Group, Inc. (“Shaw”), a significant consumer of caprolactam and Nylon 6 resin, to whom we sell under a long-term agreement. For the three months ended March 31, 2023 and 2022, the Company's sales to Shaw were 10% and 9% of our total sales, respectively. The Company's revenue by product line, and related approximate percentage of total sales, for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended 2023 2022 Nylon $ 99,372 25% $ 118,609 25% Caprolactam 72,390 18% 70,005 15% Chemical Intermediates 114,564 29% 135,690 28% Ammonium Sulfate 114,218 28% 154,769 32% Total $ 400,544 100% $ 479,073 100% The Company's revenues by geographic area, and related approximate percentage of total sales, for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended 2023 2022 United States $ 320,926 80% $ 403,018 84% International 79,618 20% 76,055 16% Total $ 400,544 100% $ 479,073 100% Deferred Income and Customer Advances The Company defers revenues when cash payments are received in advance of our performance. Below is a roll-forward of Deferred income and customer advances for the three months ended March 31, 2023: Opening balance January 1, 2023 $ 34,430 Additional cash advances 5,771 Less amounts recognized in revenues (14,529) Ending balance March 31, 2023 $ 25,672 The Company expects to recognize as revenue the March 31, 2023 ending balance of Deferred income and customer advances within one year or less. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of basic and diluted earnings per share ("EPS") is based on Net income divided by the basic weighted average number of common shares outstanding and diluted weighted average number of common shares outstanding, respectively. The details of the basic and diluted EPS calculations for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended 2023 2022 Basic Net income $ 34,954 $ 63,073 Weighted average common shares outstanding 27,601,784 28,199,871 EPS – Basic $ 1.27 $ 2.24 Diluted Dilutive effect of equity awards and other stock-based holdings 984,779 1,171,180 Weighted average common shares outstanding 28,586,563 29,371,051 EPS – Diluted $ 1.22 $ 2.15 Diluted EPS is computed based upon the weighted average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the period. The diluted EPS calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. The anti-dilutive common stock equivalents outstanding at the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended 2023 2022 Options and stock equivalents 266,644 120,316 Dividend activity for the three months ended March 31, 2023 and 2022 was as follows: Three Months Ended 2023 2022 Cash dividends declared per share $ 0.145 $ 0.125 Aggregate dividends paid to shareholders $ 4,020 $ 3,517 |
Accounts and Other Receivables
Accounts and Other Receivables – Net | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Accounts and Other Receivables – Net | Accounts and Other Receivables – Net March 31, December 31, Accounts receivables $ 158,193 $ 171,923 Other 4,086 4,100 Total accounts and other receivables 162,279 176,023 Less – allowance for doubtful accounts (890) (594) Total accounts and other receivables – net $ 161,389 $ 175,429 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories March 31, December 31, Raw materials $ 142,851 $ 126,060 Work in progress 67,917 64,669 Finished goods 80,819 60,711 Spares and other 29,458 28,892 321,045 280,332 Reduction to LIFO cost basis (96,410) (64,830) Total inventories $ 224,635 $ 215,502 Substantially all of the Company’s inventories at March 31, 2023 and December 31, 2022 are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method. However, approximately 5% was valued at average cost using the first-in, first-out (“FIFO”) method at March 31, 2023. The excess of replacement cost over the carrying value of total inventories subject to LIFO was $77.4 million and $58.2 million at March 31, 2023 and December 31, 2022, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | LeasesWe determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets ("ROU"), Operating lease liabilities – short-term, and Operating lease liabilities – long-term in our Condensed Consolidated Balance Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Condensed Consolidated Balance Sheets. The components of lease expense were as follows: Three Months Ended 2023 2022 Finance lease cost: Amortization of right-of-use asset $ 221 $ 236 Interest on lease liabilities 18 14 Total finance lease cost 239 250 Operating lease cost 11,356 10,339 Short-term lease cost 1,026 1,353 Total lease cost $ 12,621 $ 11,942 As of March 31, 2023, we have additional operating and finance leases that have not yet commenced for approximately $0.2 million and approximately $0.3 million, respectively. These leases will commence during 2023 with lease terms of up to 7 years. |
Leases | LeasesWe determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets ("ROU"), Operating lease liabilities – short-term, and Operating lease liabilities – long-term in our Condensed Consolidated Balance Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Condensed Consolidated Balance Sheets. The components of lease expense were as follows: Three Months Ended 2023 2022 Finance lease cost: Amortization of right-of-use asset $ 221 $ 236 Interest on lease liabilities 18 14 Total finance lease cost 239 250 Operating lease cost 11,356 10,339 Short-term lease cost 1,026 1,353 Total lease cost $ 12,621 $ 11,942 As of March 31, 2023, we have additional operating and finance leases that have not yet commenced for approximately $0.2 million and approximately $0.3 million, respectively. These leases will commence during 2023 with lease terms of up to 7 years. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets with finite lives acquired through a business combination are recorded at fair value, less accumulated amortization. Customer relationships and trade-names are amortized on a straight-line basis over their expected useful lives of 15 to 20 years and 5 years, respectively. Goodwill There was no change in the carrying amount of goodwill for the three months ended March 31, 2023. Finite-Lived Intangible Assets Intangible assets subject to amortization were as follows: March 31, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 36,820 $ (2,330) $ 34,490 $ 36,820 $ (1,854) $ 34,966 Licenses 18,451 (5,305) 13,146 18,451 (5,074) 13,377 Trade names 1,100 (256) 844 1,100 (201) 899 Total $ 56,371 $ (7,891) $ 48,480 $ 56,371 $ (7,129) $ 49,242 For the three months ended March 31, 2023 and March 31, 2022, the Company recorded amortization expense on intangible assets of $0.8 million and $0.4 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to a number of lawsuits, investigations and disputes, some of which may involve substantial amounts claimed, arising out of the conduct of the Company or other third-parties in the normal and ordinary course of business. A liability is recognized for any contingency that is probable of occurrence and reasonably estimable. The Company continually assesses the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses, based on an analysis of each matter with the assistance of legal counsel and, if applicable, other experts. aggregate, to have a material adverse effect on the Company’s consolidated financial position or results of operations. Potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause the Company to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Company’s consolidated results of operations, balance sheet and/or operating cash flows in the periods recognized or paid. We assumed from Honeywell International Inc. ("Honeywell") all health, safety and environmental (“HSE”) liabilities and compliance obligations related to the past and future operations of our current business as of the spin-off, as well as all HSE liabilities associated with the three manufacturing locations assumed from Honeywell that are used in our current operations, including any cleanup or other liabilities related to any contamination that may have occurred at such locations in the past. Honeywell retained all HSE liabilities related to former business locations or the operation of our former businesses. Although we have ongoing environmental remedial obligations at certain of our facilities, in the past three years, the associated remediation costs have not been material, and we do not expect our known remediation costs to have a material adverse effect on the Company's consolidated financial position or results of operations. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes was $9.3 million and $19.2 million for the three months ended March 31, 2023 and 2022, respectively, resulting in an effective tax rate of 21.0% and 23.3%, respectively. The Company’s provision for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income before taxes for the period in addition to recording any tax effects of discrete items for the quarter. The Company’s effective tax rate for the three months ended March 31, 2023 approximated the U.S. federal statutory rate, due to the impacts of state taxes and executive compensation deduction limitations which generally increase the tax rate, offset by tax credits and the foreign-derived intangible income deduction which generally decrease the tax rate. Additionally, a current period discrete tax adjustment was recorded relating to the vesting of equity compensation that resulted in a 2.3% decrease to the Company's quarterly effective tax rate. The Company's effective tax rate for the three months ended March 31, 2022 differed from the U.S. federal statutory rate, due primarily to state taxes and executive compensation deduction limitations which generally increase the tax rate, partially offset by tax credits and the foreign-derived intangible income deduction which generally decrease the tax rate. On August 16, 2022, the Inflation Reduction Act of 2022 (the "IRA") was signed into law. This legislation includes significant changes relating to tax, climate change, energy and health care. Among other provisions, the IRA introduces a corporate alternative minimum tax (CAMT) on adjusted financial statement income of certain large corporations and a 1% excise tax on share repurchases. The Company is not currently subject to the CAMT which became effective for tax years beginning after December 31, 2022. The 1% excise tax is generally applicable to publicly traded corporations for the net value of certain stock that the corporation repurchases during the year and is also effective for tax years beginning after December 31, 2022. The impact of any excise tax imposed on the Company for share repurchases is generally accounted for as an equity transaction with no consequences to the Company's results in operations, and this provision of the law is not expected to have a material impact on the Company's financial condition. The IRA also includes significant extensions, expansions and enhancements related to climate and energy tax credits designed to encourage investment in the adoption and expansion of renewable and alternative energy sources. The Company continues to evaluate these energy credit provisions of the law in relation to our sustainability and environmental, social and governance initiatives. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. In July 2019, the Company entered into an interest rate swap transaction related to its credit agreement. The interest rate swap, considered a Level 2 liability, expired February 21, 2023. The pension plan assets are invested in collective investment trust funds. These investments are measured at fair value using the net asset value per share as a practical expedient. Investments valued using the net asset value method (NAV) (or its equivalent) practical expedient are excluded from the fair value hierarchy disclosure. The Company’s Condensed Consolidated Balance Sheets also include Cash and cash equivalents, Accounts receivable and Accounts payable all of which are recorded at amounts which approximate fair value. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Instruments | Derivative and Hedging Instruments The specific credit and market, commodity price and interest rate risks to which the Company is exposed in connection with its ongoing business operations are described below. This discussion includes an explanation of any hedging instrument and interest rate swap agreement, used to manage the Company’s interest rate risk associated with a fixed and floating-rate borrowing. For cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in Other comprehensive income. Those amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. Credit and Market Risk – Financial instruments, including derivatives, expose the Company to counterparty credit risk for non-performance and to market risk related to changes in commodity prices, interest rates and foreign currency exchange rates. The Company manages its exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. The Company’s counterparties in derivative transactions are substantial investment and commercial banks with significant experience using such derivative instruments. The Company monitors the impact of market risk on the fair value and cash flows of its derivative and other financial instruments considering reasonably possible changes in commodity prices, interest rates and foreign currency exchange rates and restricts the use of derivative financial instruments to hedging activities. The Company continually monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. The terms and conditions of credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. The Company did not have any customers with significant concentrations of trade accounts receivable – net at March 31, 2023 or December 31, 2022. Allowance for doubtful accounts is calculated based upon the Company's estimate of expected credit losses over the life of exposure based upon both historical information as well as future expected losses. Commodity Price Risk Management – The Company's exposure to market risk for commodity prices can result in changes in the cost of production. We primarily mitigate our exposure to commodity price risk by using long-term, formula-based price contracts with our suppliers and formula-based price agreements with customers. Our customer agreements provide for price adjustments based on relevant market indices and raw material prices and generally do not include take-or-pay terms. We may also enter into forward commodity contracts with third-parties designated as hedges of anticipated purchases of several commodities. Forward commodity contracts are marked-to-market, with the resulting gains and losses recognized in earnings, in the same category as the items being hedged, when the hedged transaction is recognized. At March 31, 2023 and 2022, we had no financial contracts related to forward commodity agreements. Interest Rate Risk Management – The Company had entered into one interest rate swap agreement for a total notional amount of $50 million to exchange floating for fixed rate interest payments for our LIBOR-based borrowings. The interest rate swap had a fair value of zero at inception and was effective July 31, 2019 and matured on February 21, 2023. In accordance with ASC 815, the Company designated the interest rate swap as a cash flow hedge of floating-rate borrowings. The interest rate swap converted the Company’s interest rate payments on the first $50 million of variable-rate, 1-month LIBOR-based debt to a fixed interest rate. The interest rate swap involved the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the interest rate swap without an exchange of the underlying principal amount. Asset (Liability) Derivatives March 31, 2023 December 31, 2022 Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments under ASC 815: Interest Rate Contracts Accounts and other receivables, net $ — Accounts and other receivables, net $ 197 Total Derivatives $ — $ 197 The following table summarizes adjustments related to cash flow hedge included in Cash-flow hedges, in the Condensed Consolidated Statements of Comprehensive Income: March 31, Gain on derivative instruments included in Accumulated other comprehensive loss at December 31, 2022 $ 197 Fair value adjustment (197) Gain (Loss) on derivative instruments included in Accumulated other comprehensive loss at March 31, 2023 $ — At March 31, 2023, the Company expects no reclassifications of net gains or losses on derivative instruments from Accumulated other comprehensive income ("AOCI") to earnings during the next 12 months as the interest rate swap agreement matured on February 21, 2023. The following table summarizes the reclassification of net (gains) losses on derivative instruments from AOCI into earnings: Amount of (Gain) Loss Recognized in Earnings Three Months Ended 2023 2022 Derivatives: Interest Rate Contracts $ — $ 12 Total Derivatives $ — $ 12 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions In February 2022, the Company acquired the stock of U.S. Amines, a leading North American producer of alkyl and specialty amines serving high-value end markets such as agrochemicals and pharmaceuticals for a purchase price of approximately $97.5 million, net of cash acquired. In January 2021, the Company acquired certain assets associated with ammonium sulfate packaging, warehousing and logistics services in Virginia from Commonwealth Industrial Services, Inc. ("CIS") for approximately $9.5 million. |
Supplier Finance Program
Supplier Finance Program | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | Supplier Finance ProgramsThe Company has entered into a supply chain finance program with a financial intermediary providing participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. AdvanSix’s responsibility is limited to making payments to the intermediary based upon payment terms negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The Company’s payment terms with suppliers are consistent, regardless of whether a vendor participates in the supply chain finance program or not. All related agreements are terminable by either party upon at least 30 days’ notice.The total amount due to the financial intermediaries to settle supplier invoices under the supplier finance programs was approximately $12 million and approximately $17 million as of March 31, 2023 and December 31, 2022, respectively. These amounts outstanding are included in Accounts payable |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events As announced on May 5, 2023, the Board declared a quarterly cash dividend of $0.145 per share on the Company's common stock, payable on May 30, 2023 to stockholders of record as of the close of business on May 16, 2023. On April 7, 2023, the Company issued a press release announcing that a labor strike had been initiated by the Hopewell South bargaining unit, consisting of the International Chemical Workers Union Council/the United Food and Commercial Workers, Local 591-C, the International Brotherhood of Electrical Workers, Local 666, the International Association of Machinists and Aerospace Workers, Local No. 10, and the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry, Local 851, affecting approximately 340 workers at the Company's manufacturing facility in Hopewell, Virginia. The Company has robust contingency measures in place and is well prepared to support safe, stable and sustainable operations during this period. While AdvanSix continues to operate, we do not currently have an estimate of timing for completion of negotiations with the Hopewell South bargaining unit. The strike is not expected to have a material impact on the Company's financial condition. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of March 31, 2023, and its results of operations for the three months ended March 31, 2023 and 2022 and cash flows for the three months ended March 31, 2023 and 2022. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Form 10-K"). All intercompany transactions have been eliminated. Certain prior period amounts have been reclassified for consistency with the current period presentation. It is our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. Historically, the effects of this practice have generally not been significant to reported results for any quarter and only existed within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide the appropriate disclosures. Our actual closing dates for the three months ended March 31, 2023 and 2022 were April 1, 2023 and April 2, 2022, respectively. |
New Accounting Pronouncements | Recent Accounting Pronouncements – The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The amendments in this ASU require that a buyer in a supplier finance program disclose sufficient quantitative and qualitative information about its supplier finance programs to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. On a retrospective basis, for each annual reporting period, an entity should disclose the key terms of the program, including a description of the payment terms, assets pledged as security or other forms of guarantees, the confirmed amount outstanding that remains unpaid, a description of where the obligations are presented in the balance sheet and a roll-forward of those obligations confirmed as well as the amount of obligations subsequently paid. In each interim reporting period, an entity should disclose the amount of confirmed obligations outstanding. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption of the amendments in this update is permitted. The Company adopted ASU 2022-04, effective January 1, 2023, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. |
Organization, Operations and _2
Organization, Operations and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Authorized Share Repurchase Programs | The Company's Board of Directors (the "Board") has authorized share repurchase programs to repurchase shares of the Company's common stock as follows: Date of Authorization Authorized Amount (millions) Authorized Amount Remaining as of March 31, 2023 (millions) May 4, 2018 $ 75.0 $ — February 22, 2019 75.0 25.2 February 17, 2023 75.0 75.0 Totals $ 225.0 $ 100.2 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company's revenue by product line, and related approximate percentage of total sales, for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended 2023 2022 Nylon $ 99,372 25% $ 118,609 25% Caprolactam 72,390 18% 70,005 15% Chemical Intermediates 114,564 29% 135,690 28% Ammonium Sulfate 114,218 28% 154,769 32% Total $ 400,544 100% $ 479,073 100% The Company's revenues by geographic area, and related approximate percentage of total sales, for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended 2023 2022 United States $ 320,926 80% $ 403,018 84% International 79,618 20% 76,055 16% Total $ 400,544 100% $ 479,073 100% |
Summary of Deferred Income and Customer Advances | Below is a roll-forward of Deferred income and customer advances for the three months ended March 31, 2023: Opening balance January 1, 2023 $ 34,430 Additional cash advances 5,771 Less amounts recognized in revenues (14,529) Ending balance March 31, 2023 $ 25,672 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The details of the basic and diluted EPS calculations for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended 2023 2022 Basic Net income $ 34,954 $ 63,073 Weighted average common shares outstanding 27,601,784 28,199,871 EPS – Basic $ 1.27 $ 2.24 Diluted Dilutive effect of equity awards and other stock-based holdings 984,779 1,171,180 Weighted average common shares outstanding 28,586,563 29,371,051 EPS – Diluted $ 1.22 $ 2.15 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The anti-dilutive common stock equivalents outstanding at the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended 2023 2022 Options and stock equivalents 266,644 120,316 |
Schedule of Dividends Declared | Dividend activity for the three months ended March 31, 2023 and 2022 was as follows: Three Months Ended 2023 2022 Cash dividends declared per share $ 0.145 $ 0.125 Aggregate dividends paid to shareholders $ 4,020 $ 3,517 |
Accounts and Other Receivable_2
Accounts and Other Receivables - Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables Net | March 31, December 31, Accounts receivables $ 158,193 $ 171,923 Other 4,086 4,100 Total accounts and other receivables 162,279 176,023 Less – allowance for doubtful accounts (890) (594) Total accounts and other receivables – net $ 161,389 $ 175,429 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | March 31, December 31, Raw materials $ 142,851 $ 126,060 Work in progress 67,917 64,669 Finished goods 80,819 60,711 Spares and other 29,458 28,892 321,045 280,332 Reduction to LIFO cost basis (96,410) (64,830) Total inventories $ 224,635 $ 215,502 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended 2023 2022 Finance lease cost: Amortization of right-of-use asset $ 221 $ 236 Interest on lease liabilities 18 14 Total finance lease cost 239 250 Operating lease cost 11,356 10,339 Short-term lease cost 1,026 1,353 Total lease cost $ 12,621 $ 11,942 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets subject to amortization were as follows: March 31, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 36,820 $ (2,330) $ 34,490 $ 36,820 $ (1,854) $ 34,966 Licenses 18,451 (5,305) 13,146 18,451 (5,074) 13,377 Trade names 1,100 (256) 844 1,100 (201) 899 Total $ 56,371 $ (7,891) $ 48,480 $ 56,371 $ (7,129) $ 49,242 |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Asset (Liability) Derivatives March 31, 2023 December 31, 2022 Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments under ASC 815: Interest Rate Contracts Accounts and other receivables, net $ — Accounts and other receivables, net $ 197 Total Derivatives $ — $ 197 |
Derivative Instruments, Gain (Loss) | The following table summarizes adjustments related to cash flow hedge included in Cash-flow hedges, in the Condensed Consolidated Statements of Comprehensive Income: March 31, Gain on derivative instruments included in Accumulated other comprehensive loss at December 31, 2022 $ 197 Fair value adjustment (197) Gain (Loss) on derivative instruments included in Accumulated other comprehensive loss at March 31, 2023 $ — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the reclassification of net (gains) losses on derivative instruments from AOCI into earnings: Amount of (Gain) Loss Recognized in Earnings Three Months Ended 2023 2022 Derivatives: Interest Rate Contracts $ — $ 12 Total Derivatives $ — $ 12 |
Organization, Operations and _3
Organization, Operations and Basis of Presentation (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 59 Months Ended | ||
Apr. 28, 2023 $ / shares shares | Mar. 31, 2023 USD ($) manufacuringSite shares | Mar. 31, 2022 shares | Mar. 31, 2023 USD ($) manufacuringSite $ / shares shares | Dec. 31, 2022 USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of manufacturing sites | manufacuringSite | 5 | 5 | |||
Checks outstanding | $ | $ 5,200 | $ 5,200 | $ 9,000 | ||
Stock repurchased during period (in shares) | shares | 333,054 | 181,536 | 4,864,127 | ||
Shares of common stock covering the tax withholding obligations (in shares) | shares | 841,354 | ||||
Stock repurchased during period, value | $ | $ 149,600 | ||||
Treasury stock acquired, weighted average cost per share (in dollars per share) | $ / shares | $ 30.75 | ||||
Authorized Amount Remaining | $ | $ 100,200 | $ 100,200 | |||
Subsequent Event | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchased during period (in shares) | shares | 105,573 | ||||
Treasury stock acquired, weighted average cost per share (in dollars per share) | $ / shares | $ 38.95 |
Organization, Operations and _4
Organization, Operations and Basis of Presentation - Schedule of Authorized Share Repurchase Programs (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Equity, Class of Treasury Stock [Line Items] | |
Authorized Amount | $ 225,000 |
Authorized Amount Remaining | 100,200 |
May 2018 Repurchase Program | |
Equity, Class of Treasury Stock [Line Items] | |
Authorized Amount | 75,000 |
Authorized Amount Remaining | 0 |
February 2019 Repurchase Program | |
Equity, Class of Treasury Stock [Line Items] | |
Authorized Amount | 75,000 |
Authorized Amount Remaining | 25,200 |
February 2023 Repurchase Program | |
Equity, Class of Treasury Stock [Line Items] | |
Authorized Amount | 75,000 |
Authorized Amount Remaining | $ 75,000 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2023 country customer | Mar. 31, 2022 | |
Concentration Risk [Line Items] | ||
Number of customers | customer | 450 | |
Number of countries in which customers are located (more than) | country | 40 | |
Length of contract terms | We typically sell to customers under master service agreements, with primarily one-year terms, or by purchase orders. | |
10 Largest Customers | Customer Concentration Risk | Revenue from Contract with Customer | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 37% | 37% |
Shaw Industries Group Inc | Customer Concentration Risk | Revenue from Contract with Customer | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10% | 9% |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 400,544 | $ 479,073 |
Revenue from Contract with Customer | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 100% | 100% |
Revenue from Contract with Customer | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 100% | 100% |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 320,926 | $ 403,018 |
United States | Revenue from Contract with Customer | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 80% | 84% |
International | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 79,618 | $ 76,055 |
International | Revenue from Contract with Customer | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 20% | 16% |
Nylon | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 99,372 | $ 118,609 |
Nylon | Revenue from Contract with Customer | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 25% | 25% |
Caprolactam | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 72,390 | $ 70,005 |
Caprolactam | Revenue from Contract with Customer | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 18% | 15% |
Chemical Intermediates | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 114,564 | $ 135,690 |
Chemical Intermediates | Revenue from Contract with Customer | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 29% | 28% |
Ammonium Sulfate | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 114,218 | $ 154,769 |
Ammonium Sulfate | Revenue from Contract with Customer | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 28% | 32% |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue and Customer Advances (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Opening balance | $ 34,430 |
Additional cash advances | 5,771 |
Less amounts recognized in revenues | (14,529) |
Ending balance | $ 25,672 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic | ||
Net income | $ 34,954 | $ 63,073 |
Weighted average common shares outstanding (in shares) | 27,601,784 | 28,199,871 |
EPS – Basic (in dollars per share) | $ 1.27 | $ 2.24 |
Diluted | ||
Dilutive effect of equity awards and other stock-based holdings (in shares) | 984,779 | 1,171,180 |
Weighted average common shares outstanding (in shares) | 28,586,563 | 29,371,051 |
EPS – Diluted (in dollars per share) | $ 1.22 | $ 2.15 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Common Stock Equivalents (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Options and stock equivalents (in shares) | 266,644 | 120,316 |
Earnings Per Share - Dividend A
Earnings Per Share - Dividend Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Cash dividends declared per share (in dollars per share) | $ 0.145 | $ 0.125 |
Aggregate dividends paid to shareholders | $ 4,020 | $ 3,517 |
Accounts and Other Receivable_3
Accounts and Other Receivables - Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accounts receivables | $ 158,193 | $ 171,923 |
Other | 4,086 | 4,100 |
Total accounts and other receivables | 162,279 | 176,023 |
Less – allowance for doubtful accounts | (890) | (594) |
Total accounts and other receivables – net | $ 161,389 | $ 175,429 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 142,851 | $ 126,060 |
Work in progress | 67,917 | 64,669 |
Finished goods | 80,819 | 60,711 |
Spares and other | 29,458 | 28,892 |
Inventory gross | 321,045 | 280,332 |
Reduction to LIFO cost basis | (96,410) | (64,830) |
Total inventories | $ 224,635 | 215,502 |
Percentage of FIFO inventory | 5% | |
Excess of replacement or current costs over stated LIFO value | $ 77,400 | $ 58,200 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Finance Lease Cost | ||
Amortization of right-of-use asset | $ 221 | $ 236 |
Interest on lease liabilities | 18 | 14 |
Total finance lease cost | 239 | 250 |
Operating lease cost | 11,356 | 10,339 |
Short-term lease cost | 1,026 | 1,353 |
Total lease cost | $ 12,621 | $ 11,942 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease that have not yet commenced | $ 0.2 |
Finance lease that have not yet commenced | $ 0.3 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 7 years |
Finance lease, term of contract | 7 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 0.8 | $ 0.4 |
Amortization of intangible assets | $ 0.8 | $ 0.4 |
Customer relationships | U.S. Amines, Ltd. | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 15 years | |
Customer relationships | U.S. Amines, Ltd. | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 20 years | |
Trade names | U.S. Amines, Ltd. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Gross Carrying Value and Accumulated Amortization for Each Major Class of Intangible Asset (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 56,371 | $ 56,371 |
Accumulated Amortization | (7,891) | (7,129) |
Net Book Value | 48,480 | 49,242 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,820 | 36,820 |
Accumulated Amortization | (2,330) | (1,854) |
Net Book Value | 34,490 | 34,966 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 18,451 | 18,451 |
Accumulated Amortization | (5,305) | (5,074) |
Net Book Value | 13,146 | 13,377 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,100 | 1,100 |
Accumulated Amortization | (256) | (201) |
Net Book Value | $ 844 | $ 899 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Mar. 31, 2023 location | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of manufacturing locations | 3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 9,275 | $ 19,184 |
Effective income tax rate | 21% | 23.30% |
Discrete tax adjustment relating to vesting of equity compensation, percent | 2.30% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | Mar. 31, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Impairment for goodwill | $ 0 |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) derivative_instrument | Jul. 31, 2019 USD ($) | Nov. 30, 2018 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gain reclassification from AOCI to income | $ 0 | ||
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of instruments held | derivative_instrument | 1 | ||
Derivative, notional amount | $ 50,000,000 | ||
Derivative liability, fair value | $ 0 | $ 0 |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments - Balance Sheet Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Net income | $ 34,954 | $ 63,073 | |
Amount of (Gain) Loss Recognized in Earnings | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
Derivative [Line Items] | |||
Net income | 0 | 12 | |
Interest Rate Contracts | Amount of (Gain) Loss Recognized in Earnings | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
Derivative [Line Items] | |||
Net income | 0 | $ 12 | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Asset Derivatives, Fair Value | 0 | ||
Derivative liability, fair value | $ 197 | ||
Designated as Hedging Instrument | Interest Rate Contracts | |||
Derivative [Line Items] | |||
Asset Derivatives, Fair Value | $ 0 | ||
Derivative liability, fair value | $ 197 |
Derivative and Hedging Instru_5
Derivative and Hedging Instruments - Adjustments Related to Cash Flow Hedges on the Comprehensive Income Statement (Details) - Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
AOCI Attributable To Parent, Before Tax [Roll Forward] | |
Gain on derivative instruments included in Accumulated other comprehensive loss at December 31, 2022 | $ 197 |
Fair value adjustment | (197) |
Gain (Loss) on derivative instruments included in Accumulated other comprehensive loss at March 31, 2023 | $ 0 |
Derivative and Hedging Instru_6
Derivative and Hedging Instruments - Amount of Loss Recognized in Earning (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Derivatives | $ 34,954 | $ 63,073 |
Amount of (Gain) Loss Recognized in Earnings | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Derivatives | 0 | 12 |
Amount of (Gain) Loss Recognized in Earnings | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Interest Rate Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Derivatives | $ 0 | $ 12 |
Acquisitions - Business Combina
Acquisitions - Business Combination (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | |||
Acquisition of businesses | $ 0 | $ 98,589 | |
U.S. Amines, Ltd. | |||
Business Acquisition [Line Items] | |||
Acquisition of businesses | $ 97,500 |
Acquisitions - Asset Acquisitio
Acquisitions - Asset Acquisition (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2021 USD ($) | |
Commonwealth Industrial Services, Inc. | |
Asset Acquisition [Line Items] | |
Consideration transferred | $ 9.5 |
Supplier Finance Program (Detai
Supplier Finance Program (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Amount due to the financial intermediaries | $ 12,000 | $ 17,000 |
Subsequent Events (Details)
Subsequent Events (Details) | 3 Months Ended | |||
May 05, 2023 $ / shares | Mar. 31, 2023 $ / shares | Mar. 31, 2022 $ / shares | Apr. 07, 2023 employee | |
Subsequent Event [Line Items] | ||||
Cash dividends declared per share (in dollars per share) | $ 0.145 | $ 0.125 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared per share (in dollars per share) | $ 0.145 | |||
Number of workers affected by strike | employee | 340 |