AdvanSix Inc.

Good day and welcome to the AdvanFix first quarter 2019 earnings conference call. Today's conference is being recorded. And after today's presentation, there will be an opportunity to ask questions. And to ask a question, you may press star then one on your telephone keypad. And to withdraw your questions, please press star then two. I would now like to turn the conference over to Adam Kressel, Director of Investor Relations. Please go ahead, sir.

Thank you, Riley. Good morning and welcome to Advance6's first quarter 2019 earnings conference call. With me here today are President and CEO Aaron Kane and Senior Vice President and CFO Michael Preston. This call and webcast, including any non-GAAP reconciliations, are available on our website at investors.advance6.com. Note that elements of this presentation contain forward-looking statements that are based on our best view of the world and of our business as we see it today. Those elements can change, and the actual results could differ materially from those projected, and we ask that you consider them in that light. We refer you to the forward-looking statements included in our press release and earnings presentation. In addition, we identify the principal risks and uncertainties that affect our performance in our SEC filings, including our annual report on Form 10-K. This morning, we'll review our financial results for the first quarter of 2019 and share with you our outlook for our key product lines and end markets. Finally, we'll leave time for your questions at the end. So with that, I'll turn the call over to AdvanSix's President and CEO, Erin King.

Thank you, Adam, and good morning, everyone. Thank you for joining us and for your continued interest in AdvanSix. It was a dynamic first quarter to kick off 2019. As you saw in our press release, AdvanSix successfully navigated through shortages and delivery delays of QME, our key raw material, while maintaining our focus on safe and stable operations. Mike will detail the full results in a moment, but overall, we captured the benefits of favorable market-based pricing despite ongoing challenges in the acetone industry. We drove higher earnings versus the prior year and generated $42 million of operating cash flow, funding high return investments in the business while we continue to share repurchases. There were two one-time considerations in the results this quarter to note, however. First, we had an approximately $8 billion unfavorable pre-tax income impact from the final force majeure event that stemmed from the shortages and delays of queuing. As a result of this reduced production in Frankfurt and Hopewell in Q1, we anticipate an additional $2 million of unfavorable impact in the second quarter of 2019 as carryover associated with the resulting lost sales. That will bring the total first half 2019 impact from the force majeure to approximately $10 million, consistent with our previously disclosed estimates. Secondly, we recorded a $6.6 million benefit in the quarter from business interruption insurance proceeds related to the first quarter 2018 weather event claim. We expect $1 to $3 million of additional insurance proceeds. However, the timing remains uncertain as we do continue to progress with the insurance carriers. We're operating in what continues to be a mixed-end market environment. Given our global cost advantage, we're driving nylon plant utilization rates above industry averages despite continued uncertainty in carpet and automotive applications. In fertilizer markets, wet weather in the U.S. has driven a late start to the planting season as well as disruptions across industry logistics. And in our chemical intermediates product line, we expect global acetone supply to further lengthen into the second quarter. Operationally, while 2019 began with a force majeure event, the organization continues to demonstrate its resilience and ability to succeed. In addition, safety, performance, and compliance are core to how we operate. We recently published our second annual sustainability report reflecting activities and performance from 2018. Among other accomplishments, we were pleased to highlight certificates of achievement, honor, and excellence across three of our sites from the American Chemistry Council. These 2018 Responsible Care Facility Safety Awards were based in part on having no lost work days to injuries or other incidents. As we look towards the remainder of 2019, we expect our full-year CapEx to be in the range of $140 to $150 million, and full-year pre-tax income impact of planned plant turnarounds to be in the range of $35 to $40 million. Reinvestment in the business remains our top priority as we execute on our high-growth and cost-savings capital project pipeline. The commissioning of our first project, which we initiated in 2018 to convert from coal-fired to natural gas-fired boilers, remains on track, and we expect to be online in the third quarter of this year. Lastly, we announced this morning a new strategic alliance with Oven Group, a leading producer of films for the flexible packaging industry, to sell BOPA, or bioactively-oriented polyamide films, in North America. In addition, we announced the closure of our Pottsville, Pennsylvania, films manufacturing by the third quarter of this year. Today's announcement reflects a thorough strategic review. This capital-efficient and highly synergistic combination best positions us for success in the nylon films industry. We are extremely thankful for the hard work and dedication of the POTSville team and are committed to ensuring a seamless transition for our employees and our nylon films customers. So overall, we continue to build momentum across the organization and are excited about the prospects for the remainder of 2019 and beyond. With our focused strategies and global cost advantage, we're confident in our ability to drive shareholder value over the long term. So with that, I'll turn it over to Mike to discuss the details of the quarter.