ASIX - AdvanSix shares rise 5% after earnings topper: Q3 Results

• AdvanSix ( NYSE: ASIX ) shares are up 5% on Friday after the company reported easy beat on top and bottom lines in its third quarter results .
• Revenue of $478.77M (+7.2% Y/Y) beats consensus by $15.3M.
• The materials company focused on manufacturing of polymer resigns said this revenue growth was driven  by 18% favorable impact of market-based pricing, 4% higher raw material pass-through pricing, and 3% contribution from acquisitions, partially offset by 18% lower volume.
• However, Adjusted EBITDA declined significantly to $33.13M (-57.11% Y/Y) with margin reaching 7% vs. 17.4% in a year ago quarter.
• Cash flow operations was $58.9M, down $17.6M from Q3 2021. Free cash flow fell $26.8M to stand at $36.7M.
• The company incurred capital expenditure of $22.2M, up $9.2M from what it spent in the same quarter last year.
• Non-GAAP EPS of $0.43 beats consensus by $0.10.
• "Despite the unfavorable impact of the extended plant turnaround as previously announced on October 7, sales grew year-over-year as our commercial execution offset lower sales volume. Our healthy cash flow performance continued to support smart and disciplined deployment of capital in the quarter into reinvestment in the business, $17 million of cash returned to shareholders in the form of dividends and share repurchases, and further debt reduction," commented CEO Erin Kane.
• Outlook: The company expects pre-tax income impact of planned plant turnarounds to be $28 - $33M in 2023 vs.  ~$50M in 2022.
• Capital Expenditures tracking to approximately $95M for the full year 2022.
• Also the company has declared $0.145/share quarterly dividend, in line with previous.

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