Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 $0.01 per share | |
Trading Symbol | ASIX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,818,944 | |
Amendment Flag | false | |
Entity Central Index Key | 0001673985 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Sales | $ 336,829 | $ 400,544 |
Costs, expenses and other: | ||
Costs of goods sold | 333,864 | 330,042 |
Selling, general and administrative expenses | 23,593 | 25,114 |
Interest expense, net | 2,699 | 1,267 |
Other non-operating (income) expense, net | 90 | (108) |
Total costs, expenses and other | 360,246 | 356,315 |
Income (loss) before taxes | (23,417) | 44,229 |
Income tax expense (benefit) | (6,021) | 9,275 |
Net Income (Loss) | $ (17,396) | $ 34,954 |
Earnings per common share | ||
Basic (in dollars per share) | $ (0.65) | $ 1.27 |
Diluted (in dollars per share) | $ (0.65) | $ 1.22 |
Weighted average common shares outstanding | ||
Basic (in shares) | 26,878,660 | 27,601,784 |
Diluted (in shares) | 26,878,660 | 28,586,563 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (17,396) | $ 34,954 |
Foreign exchange translation adjustment | (15) | (33) |
Cash-flow hedges | 7 | (150) |
Other comprehensive income (loss), net of tax | (8) | (183) |
Comprehensive income (loss) | $ (17,404) | $ 34,771 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 20,633 | $ 29,768 |
Accounts and other receivables – net | 171,196 | 165,393 |
Inventories – net | 190,921 | 211,831 |
Taxes receivable | 8 | 1,434 |
Other current assets | 8,549 | 11,378 |
Total current assets | 391,307 | 419,804 |
Property, plant and equipment – net | 861,982 | 852,642 |
Operating lease right-of-use assets | 86,835 | 95,805 |
Goodwill | 56,192 | 56,192 |
Intangible assets | 45,431 | 46,193 |
Other assets | 26,236 | 25,384 |
Total assets | 1,467,983 | 1,496,020 |
Current liabilities: | ||
Accounts payable | 196,772 | 259,068 |
Accrued liabilities | 46,771 | 44,086 |
Income taxes payable | 935 | 8,033 |
Operating lease liabilities – short-term | 28,358 | 32,053 |
Deferred income and customer advances | 11,286 | 15,678 |
Total current liabilities | 284,122 | 358,918 |
Deferred income taxes | 152,160 | 151,059 |
Operating lease liabilities – long-term | 58,621 | 63,961 |
Line of credit – long-term | 245,000 | 170,000 |
Postretirement benefit obligations | 4,790 | 3,660 |
Other liabilities | 10,133 | 9,185 |
Total liabilities | 754,826 | 756,783 |
COMMITMENTS AND CONTINGENCIES (Note 9) | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.01; 200,000,000 shares authorized; 32,922,935 shares issued and 26,813,996 outstanding at March 31, 2024; 32,598,946 shares issued and 26,750,471 outstanding at December 31, 2023 | 329 | 326 |
Preferred stock, par value $0.01; 50,000,000 shares authorized and 0 shares issued and outstanding at March 31, 2024 and December 31, 2023 | 0 | 0 |
Treasury stock at par (6,108,939 shares at March 31, 2024; 5,848,475 shares at December 31, 2023) | (61) | (58) |
Additional paid-in capital | 133,823 | 138,046 |
Retained earnings | 583,218 | 605,067 |
Accumulated other comprehensive loss | (4,152) | (4,144) |
Total stockholders' equity | 713,157 | 739,237 |
Total liabilities and stockholders' equity | $ 1,467,983 | $ 1,496,020 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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) | 32,922,935 | 32,598,946 |
Common stock, shares outstanding (in shares) | 26,813,996 | 26,750,471 |
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) | 6,108,939 | 5,848,475 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (17,396) | $ 34,954 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 19,102 | 17,845 |
Loss on disposal of assets | 89 | 168 |
Deferred income taxes | 1,108 | (170) |
Stock-based compensation | 2,211 | 2,013 |
Amortization of deferred financing fees | 155 | 155 |
Changes in assets and liabilities, net of business acquisitions: | ||
Accounts and other receivables | (5,818) | 14,007 |
Inventories | 20,910 | (9,133) |
Taxes receivable | 1,426 | 8,748 |
Accounts payable | (52,995) | (54,489) |
Income taxes payable | (7,098) | 1,101 |
Accrued liabilities | 2,150 | (8,408) |
Deferred income and customer advances | (4,392) | (8,758) |
Other assets and liabilities | 4,346 | 3,542 |
Net cash provided by (used for) operating activities | (36,202) | 1,575 |
Cash flows from investing activities: | ||
Expenditures for property, plant and equipment | (35,388) | (24,603) |
Other investing activities | (1,419) | (1,003) |
Net cash used for investing activities | (36,807) | (25,606) |
Cash flows from financing activities: | ||
Borrowings from line of credit | 184,500 | 78,000 |
Payments of line of credit | (109,500) | (66,000) |
Principal payments of finance leases | (239) | (231) |
Dividend payments | (4,290) | (4,020) |
Purchase of treasury stock | (7,023) | (13,499) |
Issuance of common stock | 426 | 622 |
Net cash provided by (used for) financing activities | 63,874 | (5,128) |
Net change in cash and cash equivalents | (9,135) | (29,159) |
Cash and cash equivalents at beginning of period | 29,768 | 30,985 |
Cash and cash equivalents at the end of period | 20,633 | 1,826 |
Supplemental non-cash investing activities: | ||
Capital expenditures included in accounts payable | 13,442 | 8,193 |
Supplemental cash activities: | ||
Cash paid for interest | 2,594 | 1,191 |
Cash paid for income taxes | $ 36 | $ 91 |
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, 2022 | 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 (Loss) | 34,954 | 34,954 | ||||
Comprehensive income | ||||||
Foreign exchange translation adjustments | (33) | (33) | ||||
Cash-flow hedges | (150) | (150) | ||||
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 | 32,532,842 | |||||
Ending balance at Mar. 31, 2023 | $ 758,067 | $ 325 | 163,831 | 598,339 | (48) | (4,380) |
Beginning balance (in shares) at Dec. 31, 2023 | 26,750,471 | 32,598,946 | ||||
Beginning balance at Dec. 31, 2023 | $ 739,237 | $ 326 | 138,046 | 605,067 | (58) | (4,144) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | (17,396) | (17,396) | ||||
Comprehensive income | ||||||
Foreign exchange translation adjustments | (15) | (15) | ||||
Cash-flow hedges | 7 | 7 | ||||
Other comprehensive income (loss), net of tax | (8) | (8) | ||||
Issuance of common stock (in shares) | 323,989 | |||||
Issuance of common stock | 426 | $ 3 | 423 | |||
Purchase of treasury stock | (7,023) | (7,020) | (3) | |||
Stock-based compensation | 2,211 | 2,211 | ||||
Dividends | $ (4,290) | 163 | (4,453) | |||
Ending balance (in shares) at Mar. 31, 2024 | 26,813,996 | 32,922,935 | ||||
Ending balance at Mar. 31, 2024 | $ 713,157 | $ 329 | $ 133,823 | $ 583,218 | $ (61) | $ (4,152) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 3 Months Ended | 71 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | |
Statement of Stockholders' Equity [Abstract] | |||
Stock repurchased during period (in shares) | 260,464 | 333,054 | 6,108,939 |
Organization, Operations and Ba
Organization, Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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, plant nutrients and chemical intermediates, 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, 2024, and its results of operations for the three months ended March 31, 2024 and 2023 and cash flows for the three months ended March 31, 2024 and 2023. 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, 2023 (the "2023 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, 2024 and 2023 were March 30, 2024 and April 1, 2023, respectively. Liabilities to creditors to whom we have issued checks that remained outstanding at March 31, 2024 and December 31, 2023 aggregated to $5.0 million and $2.9 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, 2024 (millions) May 4, 2018 $ 75.0 $ — February 22, 2019 75.0 — February 17, 2023 75.0 65.2 Totals $ 225.0 $ 65.2 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, 2024, the Company has repurchased a total of 6,108,939 shares of common stock, including 999,111 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $189.0 million at a weighted average market price of $30.94 per share. As of March 31, 2024, $65.2 million remained available for share repurchases under the current authorization. During the period April 1, 2024 through April 26, 2024, the Company repurchased 2,865 shares covering tax withholding obligations in connection with the vesting of equity awards at a weighted average market price of $27.15, and no additional shares were repurchased under the currently authorized repurchase program. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
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. On December 13, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require that public business entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that are equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate. The amendments also require that the Company disclose the following (net of refunds received): (1) the amount of income taxes paid disaggregated by federal (national), state, and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. Additionally, the amendments in this update eliminate the requirement for all entities to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or to make a statement that an estimate of the range cannot be made, and remove the requirement to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures. The guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption of the amendments in this update are permitted for annual financial statements that have not yet been issued. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). The amendments in this ASU require incremental disclosures about the Company's reportable segments, but do not change the definition of a segment or the guidance for determining reportable segments. The incremental disclosures should include (1) significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, (2) an amount for other segment items by reportable segment and a description of its composition, (3) profit or loss and assets currently required by Topic 280 in interim periods, (4) clarification if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources and (5) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The guidance is effective for public entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Additionally, public entities should apply the amendments retrospectively to all prior periods presented in the financial statements, unless impractical. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue Recognition We serve approximately 400 customers annually in approximately 45 countries across a wide variety of industries. For each of the three months ended March 31, 2024 and 2023, the Company's ten largest customers accounted for approximately 37% of total sales. 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, 2024 and 2023, the Company's sales to Shaw were 9% and 10% 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, 2024 and 2023 were as follows: Three Months Ended 2024 2023 Nylon $ 84,389 25% $ 99,372 25% Caprolactam 61,476 18% 72,390 18% Ammonium Sulfate 85,263 25% 114,218 28% Chemical Intermediates 105,701 32% 114,564 29% Total $ 336,829 100% $ 400,544 100% The Company's revenues by geographic area, and related approximate percentage of total sales, for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended 2024 2023 United States $ 284,587 84% $ 320,926 80% International 52,242 16% 79,618 20% Total $ 336,829 100% $ 400,544 100% 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, 2024: Opening balance January 1, 2024 $ 15,678 Additional cash advances 393 Less amounts recognized in revenues (4,785) Ending balance March 31, 2024 $ 11,286 The Company expects to recognize as revenue the March 31, 2024 ending balance of Deferred income and customer advances within one year or less. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
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 (loss) 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, 2024 and 2023 were as follows: Three Months Ended 2024 2023 Basic Net Income (Loss) $ (17,396) $ 34,954 Weighted average common shares outstanding 26,878,660 27,601,784 EPS – Basic $ (0.65) $ 1.27 Diluted Dilutive effect of equity awards and other stock-based holdings — 984,779 Weighted average common shares outstanding 26,878,660 28,586,563 EPS – Diluted $ (0.65) $ 1.22 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, 2024 and 2023 were as follows: Three Months Ended 2024 2023 Options and stock equivalents 909,231 266,644 Dividend activity for the three months ended March 31, 2024 and 2023 was as follows: Three Months Ended 2024 2023 Cash dividends declared per share $ 0.16 $ 0.145 Aggregate dividends paid to shareholders $ 4,290 $ 4,020 |
Accounts and Other Receivables
Accounts and Other Receivables - Net | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Accounts and Other Receivables - Net | Accounts and Other Receivables – Net March 31, December 31, Accounts receivables $ 161,189 $ 155,267 Other 10,766 10,959 Total accounts and other receivables 171,955 166,226 Less – allowance for doubtful accounts (759) (833) Total accounts and other receivables – net $ 171,196 $ 165,393 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories March 31, December 31, Raw materials $ 103,227 $ 159,240 Work in progress 58,620 54,936 Finished goods 60,893 61,891 Spares and other 32,232 30,931 254,972 306,998 Reduction to LIFO cost basis (64,051) (95,167) Total inventories $ 190,921 $ 211,831 Substantially all of the Company’s inventories at March 31, 2024 and December 31, 2023 are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method. However, approximately 8% was valued at average cost using the first-in, first-out (“FIFO”) method at March 31, 2024. The excess of replacement cost over the carrying value of total inventories subject to LIFO was $62.2 million and $65.3 million at March 31, 2024 and December 31, 2023, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases We 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 2024 2023 Finance lease cost: Amortization of right-of-use asset $ 243 $ 221 Interest on lease liabilities 38 18 Total finance lease cost 281 239 Operating lease cost 12,252 11,356 Short-term lease cost 1,193 1,026 Total lease cost $ 13,726 $ 12,621 As of March 31, 2024, we have additional operating and finance leases that have not yet commenced for approximately $126.7 million and approximately $0.4 million. These leases will commence during 2024 with lease terms of up to 7 years. |
Leases | Leases We 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 2024 2023 Finance lease cost: Amortization of right-of-use asset $ 243 $ 221 Interest on lease liabilities 38 18 Total finance lease cost 281 239 Operating lease cost 12,252 11,356 Short-term lease cost 1,193 1,026 Total lease cost $ 13,726 $ 12,621 As of March 31, 2024, we have additional operating and finance leases that have not yet commenced for approximately $126.7 million and approximately $0.4 million. These leases will commence during 2024 with lease terms of up to 7 years. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024. Finite-Lived Intangible Assets Intangible assets subject to amortization were as follows: March 31, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 36,820 $ (4,236) $ 32,584 $ 36,820 $ (3,760) $ 33,060 Licenses 18,451 (6,227) 12,224 18,451 (5,996) 12,455 Trade names 1,100 (477) 623 1,100 (422) 678 Total $ 56,371 $ (10,940) $ 45,431 $ 56,371 $ (10,178) $ 46,193 For each of the three months ended March 31, 2024 and March 31, 2023, the Company recorded amortization expense on intangible assets of $0.8 million. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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. 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, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The (benefit) provision for income taxes was ($6.0 million) and $9.3 million for the three months ended March 31, 2024 and 2023, respectively, resulting in an effective tax rate of 25.7% and 21.0%, respectively. The Company’s provision for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income (Loss) 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, 2024 was higher than the U.S. federal statutory rate, due to the impacts of state taxes and executive compensation deduction limitations, partially offset by tax credits. 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 discrete tax adjustment was recorded in the first quarter of 2023 related to the vesting of equity compensation that resulted in a 2.3% decrease to the Company's quarterly effective tax rate. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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. 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. The Company also has assets that are required to be recorded at fair value on a non-recurring basis. These assets are evaluated when certain triggering events occur (including a decrease in estimated future cash flows) that indicate the asset should be evaluated for impairment which could result in such assets being measured at fair value. Goodwill must be evaluated at least annually. Our annual evaluation occurred on October 28, 2023 and we concluded that an impairment for goodwill did not occur. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Instruments | Derivative and Hedging Instruments The Company had entered into an 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. At March 31, 2024, the Company had no derivatives designated as hedging instruments under ASC 815 and had no fair value adjustments related to cash flow hedging for the three months ended March 31, 2024. |
Supplier Finance Program
Supplier Finance Program | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | Supplier Finance Programs The 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. Accounts payable |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events As announced on May 3, 2024, the Board declared a quarterly cash dividend of $0.160 per share on the Company's common stock, payable on May 28, 2024 to stockholders of record as of the close of business on May 14, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income (loss) | $ (17,396) | $ 34,954 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Christopher Gramm [Member] | |
Trading Arrangements, by Individual | |
Name | Christopher Gramm |
Title | Vice President and Controller |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 13, 2024 |
Arrangement Duration | 462 days |
Christopher Gramm, Shares [Member] | Christopher Gramm [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 14,000 |
Christopher Gramm, Stock Options [Member] | Christopher Gramm [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 10,374 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, and its results of operations for the three months ended March 31, 2024 and 2023 and cash flows for the three months ended March 31, 2024 and 2023. 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, 2023 (the "2023 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, 2024 and 2023 were March 30, 2024 and April 1, 2023, respectively. |
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. On December 13, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require that public business entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that are equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate. The amendments also require that the Company disclose the following (net of refunds received): (1) the amount of income taxes paid disaggregated by federal (national), state, and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. Additionally, the amendments in this update eliminate the requirement for all entities to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or to make a statement that an estimate of the range cannot be made, and remove the requirement to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures. The guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption of the amendments in this update are permitted for annual financial statements that have not yet been issued. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). The amendments in this ASU require incremental disclosures about the Company's reportable segments, but do not change the definition of a segment or the guidance for determining reportable segments. The incremental disclosures should include (1) significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, (2) an amount for other segment items by reportable segment and a description of its composition, (3) profit or loss and assets currently required by Topic 280 in interim periods, (4) clarification if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources and (5) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The guidance is effective for public entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Additionally, public entities should apply the amendments retrospectively to all prior periods presented in the financial statements, unless impractical. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations. |
Organization, Operations and _2
Organization, Operations and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 (millions) May 4, 2018 $ 75.0 $ — February 22, 2019 75.0 — February 17, 2023 75.0 65.2 Totals $ 225.0 $ 65.2 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023 were as follows: Three Months Ended 2024 2023 Nylon $ 84,389 25% $ 99,372 25% Caprolactam 61,476 18% 72,390 18% Ammonium Sulfate 85,263 25% 114,218 28% Chemical Intermediates 105,701 32% 114,564 29% Total $ 336,829 100% $ 400,544 100% The Company's revenues by geographic area, and related approximate percentage of total sales, for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended 2024 2023 United States $ 284,587 84% $ 320,926 80% International 52,242 16% 79,618 20% Total $ 336,829 100% $ 400,544 100% |
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, 2024: Opening balance January 1, 2024 $ 15,678 Additional cash advances 393 Less amounts recognized in revenues (4,785) Ending balance March 31, 2024 $ 11,286 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023 were as follows: Three Months Ended 2024 2023 Basic Net Income (Loss) $ (17,396) $ 34,954 Weighted average common shares outstanding 26,878,660 27,601,784 EPS – Basic $ (0.65) $ 1.27 Diluted Dilutive effect of equity awards and other stock-based holdings — 984,779 Weighted average common shares outstanding 26,878,660 28,586,563 EPS – Diluted $ (0.65) $ 1.22 |
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, 2024 and 2023 were as follows: Three Months Ended 2024 2023 Options and stock equivalents 909,231 266,644 |
Schedule of Dividends Declared | Dividend activity for the three months ended March 31, 2024 and 2023 was as follows: Three Months Ended 2024 2023 Cash dividends declared per share $ 0.16 $ 0.145 Aggregate dividends paid to shareholders $ 4,290 $ 4,020 |
Accounts and Other Receivable_2
Accounts and Other Receivables - Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables Net | March 31, December 31, Accounts receivables $ 161,189 $ 155,267 Other 10,766 10,959 Total accounts and other receivables 171,955 166,226 Less – allowance for doubtful accounts (759) (833) Total accounts and other receivables – net $ 171,196 $ 165,393 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | March 31, December 31, Raw materials $ 103,227 $ 159,240 Work in progress 58,620 54,936 Finished goods 60,893 61,891 Spares and other 32,232 30,931 254,972 306,998 Reduction to LIFO cost basis (64,051) (95,167) Total inventories $ 190,921 $ 211,831 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended 2024 2023 Finance lease cost: Amortization of right-of-use asset $ 243 $ 221 Interest on lease liabilities 38 18 Total finance lease cost 281 239 Operating lease cost 12,252 11,356 Short-term lease cost 1,193 1,026 Total lease cost $ 13,726 $ 12,621 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets subject to amortization were as follows: March 31, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 36,820 $ (4,236) $ 32,584 $ 36,820 $ (3,760) $ 33,060 Licenses 18,451 (6,227) 12,224 18,451 (5,996) 12,455 Trade names 1,100 (477) 623 1,100 (422) 678 Total $ 56,371 $ (10,940) $ 45,431 $ 56,371 $ (10,178) $ 46,193 |
Organization, Operations and _3
Organization, Operations and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 71 Months Ended | ||
Apr. 26, 2024 $ / shares shares | Mar. 31, 2024 USD ($) manufacuringSite shares | Mar. 31, 2023 shares | Mar. 31, 2024 USD ($) manufacuringSite $ / shares shares | Dec. 31, 2023 USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of manufacturing sites | manufacuringSite | 5 | 5 | |||
Checks outstanding | $ | $ 5 | $ 5 | $ 2.9 | ||
Stock repurchased during period (in shares) | 260,464 | 333,054 | 6,108,939 | ||
Shares of common stock covering the tax withholding obligations (in shares) | 999,111 | ||||
Stock repurchased during period, value | $ | $ 189 | ||||
Treasury stock acquired, weighted average cost per share (in dollars per share) | $ / shares | $ 30.94 | ||||
Remaining authorized repurchase amount | $ | $ 65.2 | $ 65.2 | |||
Subsequent Event | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchased during period (in shares) | 0 | ||||
Shares of common stock covering the tax withholding obligations (in shares) | 2,865 | ||||
Treasury stock acquired, weighted average cost per share (in dollars per share) | $ / shares | $ 27.15 |
Organization, Operations and _4
Organization, Operations and Basis of Presentation - Schedule of Authorized Share Repurchase Programs (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Equity, Class of Treasury Stock [Line Items] | |
Authorized Amount | $ 225 |
Authorized Amount Remaining | 65.2 |
May 2018 Repurchase Program | |
Equity, Class of Treasury Stock [Line Items] | |
Authorized Amount | 75 |
Authorized Amount Remaining | 0 |
February 2019 Repurchase Program | |
Equity, Class of Treasury Stock [Line Items] | |
Authorized Amount | 75 |
Authorized Amount Remaining | 0 |
February 2023 Repurchase Program | |
Equity, Class of Treasury Stock [Line Items] | |
Authorized Amount | 75 |
Authorized Amount Remaining | $ 65.2 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2024 country customer | Mar. 31, 2023 | |
Concentration Risk [Line Items] | ||
Number of customers | customer | 400 | |
Number of countries in which customers are located (more than) | country | 45 | |
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 | 9% | 10% |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 336,829 | $ 400,544 |
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 | $ 284,587 | $ 320,926 |
United States | Revenue from Contract with Customer | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 84% | 80% |
International | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 52,242 | $ 79,618 |
International | Revenue from Contract with Customer | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 16% | 20% |
Nylon | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 84,389 | $ 99,372 |
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 | $ 61,476 | $ 72,390 |
Caprolactam | Revenue from Contract with Customer | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 18% | 18% |
Ammonium Sulfate | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 85,263 | $ 114,218 |
Ammonium Sulfate | Revenue from Contract with Customer | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 25% | 28% |
Chemical Intermediates | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 105,701 | $ 114,564 |
Chemical Intermediates | Revenue from Contract with Customer | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 32% | 29% |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue and Customer Advances (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Opening balance | $ 15,678 |
Additional cash advances | 393 |
Less amounts recognized in revenues | (4,785) |
Ending balance | $ 11,286 |
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, 2024 | Mar. 31, 2023 | |
Basic | ||
Net Income (Loss) | $ (17,396) | $ 34,954 |
Weighted average common shares outstanding (in shares) | 26,878,660 | 27,601,784 |
EPS – Basic (in dollars per share) | $ (0.65) | $ 1.27 |
Diluted | ||
Dilutive effect of equity awards and other stock-based holdings (in shares) | 0 | 984,779 |
Weighted average common shares outstanding (in shares) | 26,878,660 | 28,586,563 |
EPS – Diluted (in dollars per share) | $ (0.65) | $ 1.22 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Common Stock Equivalents (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Options and stock equivalents (in shares) | 909,231 | 266,644 |
Earnings Per Share - Dividend A
Earnings Per Share - Dividend Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Cash dividends declared per share (in dollars per share) | $ 0.16 | $ 0.145 |
Aggregate dividends paid to shareholders | $ 4,290 | $ 4,020 |
Accounts and Other Receivable_3
Accounts and Other Receivables - Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Accounts receivables | $ 161,189 | $ 155,267 |
Other | 10,766 | 10,959 |
Total accounts and other receivables | 171,955 | 166,226 |
Less – allowance for doubtful accounts | (759) | (833) |
Total accounts and other receivables – net | $ 171,196 | $ 165,393 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 103,227 | $ 159,240 |
Work in progress | 58,620 | 54,936 |
Finished goods | 60,893 | 61,891 |
Spares and other | 32,232 | 30,931 |
Inventory gross | 254,972 | 306,998 |
Reduction to LIFO cost basis | (64,051) | (95,167) |
Total inventories | $ 190,921 | 211,831 |
Percentage of FIFO inventory | 8% | |
Excess of replacement or current costs over stated LIFO value | $ 62,200 | $ 65,300 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Finance Lease Cost | ||
Amortization of right-of-use asset | $ 243 | $ 221 |
Interest on lease liabilities | 38 | 18 |
Total finance lease cost | 281 | 239 |
Operating lease cost | 12,252 | 11,356 |
Short-term lease cost | 1,193 | 1,026 |
Total lease cost | $ 13,726 | $ 12,621 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease that have not yet commenced | $ 126.7 |
Finance lease, lease not yet commenced | $ 0.4 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating 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, 2024 | Mar. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 0.8 | $ 0.8 |
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, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 56,371 | $ 56,371 |
Accumulated Amortization | (10,940) | (10,178) |
Net Book Value | 45,431 | 46,193 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,820 | 36,820 |
Accumulated Amortization | (4,236) | (3,760) |
Net Book Value | 32,584 | 33,060 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 18,451 | 18,451 |
Accumulated Amortization | (6,227) | (5,996) |
Net Book Value | 12,224 | 12,455 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,100 | 1,100 |
Accumulated Amortization | (477) | (422) |
Net Book Value | $ 623 | $ 678 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Mar. 31, 2024 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, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
(Benefit) provision for income taxes | $ (6,021) | $ 9,275 |
Effective income tax rate | 25.70% | 21% |
Discrete tax adjustment relating to changes in state tax legislation | 2.30% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | Oct. 28, 2023 USD ($) |
Fair Value Disclosures [Abstract] | |
Impairment for goodwill | $ 0 |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Details) - Interest Rate Swap | Jul. 31, 2019 USD ($) |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative, notional amount | $ 50,000,000 |
Derivative liability, fair value | $ 0 |
Supplier Finance Program (Detai
Supplier Finance Program (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Payables and Accruals [Abstract] | ||
Period of termination | 30 days | |
Supplier finance program | $ 13 | $ 17 |
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | ||
May 03, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Subsequent Event [Line Items] | |||
Cash dividends declared per share (in dollars per share) | $ 0.16 | $ 0.145 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash dividends declared per share (in dollars per share) | $ 0.16 |