AdvanSix Provides Business Update in Response to Coronavirus (COVID-19) Impact
March 31 2020 - 5:30AM
Business Wire
First quarter financial results progressed as
planned
Shifting majority of second quarter planned
turnaround to second half 2020
Company to release first quarter financial
results and hold earnings conference call on May 1
AdvanSix (NYSE: ASIX) today provided an update on its business
and the impact of the ongoing coronavirus pandemic and shared
actions the Company is taking to protect its employees, customers,
suppliers, shareholders and surrounding communities. To date, no
employees have a confirmed case of COVID-19 and the Company has
protocols in place including on-site medical personnel to actively
monitor employees.
A summary of updates and actions taken follows:
Health and Safety
- Implemented thermal screening process at all manufacturing
facilities, with restrictions on non-essential visitors
- Instituted telecommuting across all sites, where possible
- Prohibited all non-essential domestic and international
business travel
- Established social distancing measures limiting the number of
employees in control rooms, labs and meetings
- Maintaining policies and practices consistent with CDC and
government guidelines
Plant Operations
- Operations at the Company’s manufacturing locations in
Frankford, PA, Hopewell, VA and Chesterfield, VA continue to run at
robust production rates necessary to meet customer orders
- Business continuity plans in place to ensure safe and stable
operations, while continuing to serve our customers by adjusting
output to changes in mix and demand
- The previously scheduled 2Q 2020 planned plant turnaround has
been de-risked – a majority of the work has been shifted into the
second half of the year in order to limit the number of contractors
on site and ensure operational continuity in the current
environment
Financial Position
- $425 million revolving credit facility in place maturing in
2023
- As of the end of 1Q 2020, the Company has approximately $30
million of cash on hand with approximately $90 million of
additional capacity available under the revolving credit
facility
- Additional liquidity potential of up to $175 million under the
credit facility’s accordion feature
- Previously announced credit facility amendment executed in the
first quarter provides 2020 covenant flexibility
- Disciplined working capital and cost management including
discretionary spending
- Assessing opportunities to maximize free cash flow including a
further reduction of capital expenditures, which are currently
targeted at the low-end of our previously communicated range of $90
to $100 million in 2020
“The health and safety of our employees is our top priority,”
said Erin Kane, president and CEO of AdvanSix. “We are monitoring
the situation closely while executing our business continuity plans
so we can continue to be a trusted partner for reliable supply to
our customers. The U.S. Department of Homeland Security has
designated our industry as ‘life sustaining and essential’ during
the response to coronavirus for both public health and safety as
well as community well-being. I want to thank the entire AdvanSix
organization for their extraordinary efforts during this
challenging time to keep our business moving forward.”
“I’m pleased to share that our first quarter results progressed
as planned despite the challenging macro conditions, highlighting
the resilience and strength of our vertically integrated asset base
and global low-cost advantage. We look forward to providing another
update during our first quarter 2020 earnings conference call,”
added Kane.
First Quarter 2020 Earnings Conference
Call
The Company announced that it will issue its first quarter 2020
financial results before the opening of the New York Stock Exchange
on Friday, May 1. The Company will hold a conference call with
investors at 9:00 a.m. ET that day.
Conference Call Details
To participate on the conference call, dial (334) 777-6978
(domestic) or (800) 367-2403 (international) approximately 10
minutes before the 9:00 a.m. ET start, and tell the operator that
you are dialing in for AdvanSix’s first quarter 2020 earnings call.
A replay of the conference call will be available from 12 noon ET
on May 1 until 12 noon ET on May 8. You can listen to the replay by
dialing (719) 457-0820 (domestic) or (888) 203-1112
(international). The access code is 1073556.
Presentation Materials / Webcast
Details
A real-time audio webcast of the presentation can be accessed at
http://investors.advansix.com. Related materials will be posted
prior to the presentation at that site, and a replay of the webcast
will be available on the AdvanSix investor website for 90 days
following the presentation.
About AdvanSix
AdvanSix is a leading manufacturer of Nylon 6, a polymer resin
which is a synthetic material used by our customers to produce
fibers, filaments, engineered plastics and films that, in turn, are
used in such end-products as carpets, automotive and electronic
components, sports apparel, food packaging and other industrial
applications. As a result of our backward integration and the
configuration of our manufacturing facilities, we also sell
caprolactam, ammonium sulfate fertilizer, acetone and other
intermediate chemicals, all of which are produced as part of our
integrated manufacturing value chain. More information on AdvanSix
can be found at http://www.advansix.com.
Forward Looking Statements
This release contains certain statements that may be deemed
“forward-looking statements” within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended. All statements,
other than statements of historical fact, that address activities,
events or developments that our management intends, expects,
projects, believes or anticipates will or may occur in the future
are forward-looking statements. Forward-looking statements may be
identified by words like "expect," "anticipate," "estimate,"
“outlook”, "project," "strategy," "intend," "plan," "target,"
"goal," "may," "will," "should" and "believe" or other variations
or similar terminology. Although we believe forward-looking
statements are based upon reasonable assumptions, such statements
involve known and unknown risks, uncertainties and other factors,
many of which are beyond our control and difficult to predict,
which may cause the actual results or performance of the Company to
be materially different from any future results or performance
expressed or implied by such forward-looking statements. Such risks
and uncertainties include, but are not limited to: the impact of
scheduled turnarounds and significant unplanned downtime and
interruptions of production or logistics operations as a result of
mechanical issues or other unanticipated events such as fires,
severe weather conditions, natural disasters and pandemics
including the coronavirus; price fluctuations and supply of raw
materials; our operations and growth projects requiring substantial
capital; general economic and financial conditions in the U.S. and
globally, including the impact of the coronavirus; growth rates and
cyclicality of the industries we serve including global changes in
supply and demand; risks associated with our indebtedness including
with respect to restrictive covenants; failure to develop and
commercialize new products or technologies; loss of significant
customer relationships; adverse trade and tax policies; extensive
environmental, health and safety laws that apply to our operations;
hazards associated with chemical manufacturing, storage and
transportation; litigation associated with chemical manufacturing
and our business operations generally; inability to acquire and
integrate businesses, assets, products or technologies; protection
of our intellectual property and proprietary information; prolonged
work stoppages as a result of labor difficulties; cybersecurity and
data privacy incidents; failure to maintain effective internal
controls; disruptions in transportation and logistics; our
inability to achieve some or all of the anticipated benefits of our
spin-off including uncertainty regarding qualification for expected
tax treatment; fluctuations in our stock price; and changes in laws
or regulations applicable to our business. You are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date of this release. Such forward-looking
statements are not guarantees of future performance, and actual
results, developments and business decisions may differ from those
envisaged by such forward-looking statements. We identify the
principal risks and uncertainties that affect our performance in
our filings with the Securities and Exchange Commission, including
our Annual Report on Form 10-K for the year ended December 31,
2019.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200331005220/en/
Media: Debra Lewis, (973) 526-1767 debra.lewis@advansix.com
Investors: Adam Kressel, (973) 526-1700
adam.kressel@advansix.com
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