AdvanSix Inc.

Today and welcome to the Advance 6 Third Quarter 2022 Earnings Conference Call. All participants will be in a 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 a touchtone phone. 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, Vice President of Investor Relations and Treasurer. Please go ahead.

Thank you, Betsy. Good morning and welcome to Advance Six's third quarter 2022 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 with the SEC. This morning, we'll review our financial results for the third quarter of 2022 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 and for your continued interest in Advancix. As you saw in our press release, Advancix delivered third-quarter results consistent with our update in October that reflect the resilience of our business model and our ability to navigate challenging conditions. Let me share a few highlights on slide three before Mike covers the details of our financials in a moment. Despite the unfavorable impact of the previously announced extended plant turnaround, our sales grew year over year as our commercial execution captured higher pricing, particularly across our ammonium sulfate and nylon product lines, to offset continued higher inflation and lower production output. Our healthy cash flow performance continued to support smart and disciplined deployment of capital in the quarter including reinvestment in the business, approximately $17 million of cash returned to shareholders in the form of dividends and share repurchases, as well as further debt reduction. With the turnarounds complete, our facilities are now focused on operating at our typical high utilization rates, which we expect to continue into 2023. Looking forward, we expect strong underlying agricultural fundamentals to support robust nitrogen and sulfur fertilizer industry demand into the heart of the 2023 domestic planting season. Nearly a third of our portfolio is in the agricultural sector, including ag chemicals, and our position in this attractive market has extended even further through our acquisitions of U.S. Amines as well as CIS. We know this space well, and we continue to invest for growth. As we have shared previously, we are today producing more high-quality, granular-grade ammonium sulfate to meet the growing demands of our customers. Overall, this is a core and critical product line for our business. Like every company, we are also closely monitoring the heightened macro uncertainty and concerns of an economic slowdown or recession and any potential impacts on the industries we serve. We would now characterize the North American demand for nylon and chemical intermediates as mixed overall. While some end markets like commercial construction and solvents are holding up, we are seeing softness in consumer durables and residential applications. We've consistently demonstrated our ability to navigate, perform, and execute in a multitude of environments. Our low-cost position, diverse portfolio, significant exposure to the North American region in terms of sales and operations, and our ability to stay highly disciplined around cost provides us with a solid foundation and proven track record to perform through all conditions. In this environment, we continue to be highly focused on executing what is in our control, including driving superior operational and commercial performance to meet the evolving needs of our customers, building capabilities to strengthen our innovation and portfolio resiliency, and enhancing our capital deployment. For the fourth quarter of 2022, we expect performance to rebound towards results demonstrated in the first and second quarters of this year and remain confident in our ability to build sustainable long-term shareholder value. With that, I'll turn it over to Mike to discuss the financial details of the quarter.