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AdvanSix Inc.
10/29/2021
Good morning and welcome to the Advance 6 Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Adam Kressel, Director of Investor Relations. Please go ahead.
Thank you, Andrea. Good morning and welcome to Advance Six's third quarter 2021 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.advancix.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 as further updated in subsequent filings of the SEC. This morning, we will review our financial results for the third quarter of 2021 and share 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 Advancix's president and CEO, Erin Kane.
Thanks, Adam, and good morning, everyone. Thank you for joining us this morning and for your continued interest in Advancix. Advancix continued to execute well in the third quarter while supporting our customers to successfully navigate the current set of industry dynamics. We delivered robust sales, earnings, and margin performance, as well as record quarterly cash flows and spins amid improving end market demand and tight industry supply conditions. Mike will cover the details of our financials in a moment. It's important to note that our integrated business model and unique combination of assets, coupled with our leading North American positions across our diverse product portfolio, are paying significant dividends for the business. The industries in which we participate were once again presented with supply chain and logistics disruptions, escalating raw material inputs, and inflationary costs. Our team continued to demonstrate that we can perform in all environments, and this quarter was no exception. Our performance was supported by strong pricing and volume improvement, including contributions from differentiated products and our continued execution to capitalize on near-term opportunities while driving our long-term strategies. Building off of what we shared at our recent investor day, we feel very good about the foundation we've built in the last five years and how we are positioning the company going forward to drive performance and growth. We are highly focused on executing what is in our control, driving superior operational and commercial performance to meet the evolving needs of our customers, building capabilities to strengthen our innovation and portfolio resiliency, and maturing our capital stewardship to enhance attractive total shareholder returns. There is a lot to be excited about. This past quarter, we continued to expand our digital presence with our Node storefront featuring a number of chemical intermediates and nylon products across our portfolio. We received our first commercial order of our newly introduced 100% post-industrial recycled nylon resins. We maintained conversion of roughly 65% of our ammonium sulfate into our higher-value granular grades to meet the growth demands of our customers. We were ranked 30th in Investor's Business Daily Best 100 ESG Companies of 2021. We initiated a 12.5 cent per share quarterly dividend, reflecting our confidence in free cash flow generation. And we completed a refinancing of our existing credit facility by entering into a new five-year, $500 million revolving credit facility, providing increased liquidity and flexibility at lower barring costs. As we look ahead, the outlook for our business remains favorable. We're focused on strong execution to close out an expected post-spin record year in 2021 and taking that momentum into 2022 as we align our long-term strategies with strong and sustainable shareholder returns. With that, I'll turn it over to Mike to discuss the details of the quarter.
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