Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 1-37774


AdvanSix Inc.
(Exact name of registrant as specified in its charter)


Delaware						81-2525089
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


300 Kimball Drive, Suite 101, Parsippany, New Jersey						07054
(Address of principal executive offices)						(Zip Code)

(973) 526-1800

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	ASIX	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer ý	Accelerated filer o	Non-accelerated filer o	Smaller reporting company ☐
			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

The Registrant had 26,712,936 shares of common stock, $0.01 par value, outstanding at July 26, 2024.

ADVANSIX INC.

FORM 10-Q

TABLE OF CONTENTS


Part I.	FINANCIAL INFORMATION

Item 1.	Financial Statements	3
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 (unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 (unaudited)	4
	Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (unaudited)	6
	Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and 2023 (unaudited)	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26

Part II.	OTHER INFORMATION	26
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 5.	Other Information	27
Item 6.	Exhibits	28
	Signature	29

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ADVANSIX INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except share and per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Sales	$	453,479	$	427,940	$	790,308	$	828,484
Costs, expenses and other:
Costs of goods sold	372,111		360,017		705,975		690,059
Selling, general and administrative expenses	24,431		24,011		48,024		49,126
Interest expense, net	3,514		1,954		6,213		3,221
Other non-operating (income) expense, net	1,351		(1,325)		1,441		(1,433)
Total costs, expenses and other	401,407		384,657		761,653		740,973

Income before taxes	52,072		43,283		28,655		87,511
Income tax expense	13,145		10,555		7,124		19,829
Net income	$	38,927	$	32,728	$	21,531	$	67,682

Earnings per common share
Basic	$	1.45	$	1.19	$	0.80	$	2.46
Diluted	$	1.43	$	1.16	$	0.79	$	2.39
Weighted average common shares outstanding
Basic	26,839,429		27,494,555		26,859,044		27,547,874
Diluted	27,150,347		28,113,402		27,251,326		28,348,266

See accompanying notes to Condensed Consolidated Financial Statements.

ADVANSIX INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(Dollars in thousands)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	38,927	$	32,728	$	21,531	$	67,682
Foreign exchange translation adjustment	(27)		(125)		(42)		(158)
Cash-flow hedges	—		—		7		(150)

Other comprehensive loss, net of tax	(27)		(125)		(35)		(308)
Comprehensive income	$	38,900	$	32,603	$	21,496	$	67,374

See accompanying notes to Condensed Consolidated Financial Statements.

ADVANSIX INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands, except share and per share amounts)


	June 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	12,105	$	29,768
Accounts and other receivables – net	170,155		165,393
Inventories – net	175,827		211,831
Taxes receivable	179		1,434
Other current assets	20,326		11,378
Total current assets	378,592		419,804
Property, plant and equipment – net	878,491		852,642
Operating lease right-of-use assets	91,876		95,805
Goodwill	56,192		56,192
Intangible assets	44,668		46,193
Other assets	28,131		25,384
Total assets	$	1,477,950	$	1,496,020

LIABILITIES
Current liabilities:
Accounts payable	$	189,326	$	259,068
Accrued liabilities	50,223		44,086
Income taxes payable	1,007		8,033
Operating lease liabilities – short-term	31,250		32,053
Deferred income and customer advances	1,148		15,678


Total current liabilities	272,954		358,918
Deferred income taxes	151,803		151,059
Operating lease liabilities – long-term	60,783		63,961
Line of credit – long-term	230,000		170,000

Postretirement benefit obligations	5,919		3,660
Other liabilities	9,894		9,185
Total liabilities	731,353		756,783

COMMITMENTS AND CONTINGENCIES (Note 9)

STOCKHOLDERS' EQUITY
Common stock, par value $0.01; 200,000,000 shares authorized; 32,959,588 shares issued and 26,709,407 outstanding at June 30, 2024; 32,598,946 shares issued and 26,750,471 outstanding at December 31, 2023	330		326
Preferred stock, par value $0.01; 50,000,000 shares authorized and 0 shares issued and outstanding at June 30, 2024 and December 31, 2023	—		—
Treasury stock at par (6,250,181 shares at June 30, 2024; 5,848,475 shares at December 31, 2023)	(63)		(58)
Additional paid-in capital	132,786		138,046
Retained earnings	617,723		605,067
Accumulated other comprehensive loss	(4,179)		(4,144)
Total stockholders' equity	746,597		739,237
Total liabilities and stockholders' equity	$	1,477,950	$	1,496,020

See accompanying notes to Condensed Consolidated Financial Statements.

ADVANSIX INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)


	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income	$	21,531	$	67,682
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	38,264		35,958
Loss on disposal of assets	261		568
Deferred income taxes	751		3,894
Stock-based compensation	4,404		4,449
Amortization of deferred financing fees	309		309
Operational asset adjustments	1,200		—

Changes in assets and liabilities, net of business acquisitions:
Accounts and other receivables	(6,004)		22,123
Inventories	36,004		(10,484)
Taxes receivable	1,255		8,329
Accounts payable	(61,681)		(45,878)
Income taxes payable	(7,026)		(1,338)
Accrued liabilities	6,149		(5,744)
Deferred income and customer advances	(14,530)		(32,097)
Other assets and liabilities	(6,889)		(11,192)
Net cash provided by operating activities	13,998		36,579

Cash flows from investing activities:
Expenditures for property, plant and equipment	(68,883)		(43,894)


Other investing activities	(3,736)		(2,034)
Net cash used for investing activities	(72,619)		(45,928)

Cash flows from financing activities:



Borrowings from line of credit	257,500		230,500
Payments of line of credit	(197,500)		(205,500)

Principal payments of finance leases	(502)		(456)
Dividend payments	(8,582)		(8,004)
Purchase of treasury stock	(10,385)		(28,385)
Issuance of common stock	427		745

Net cash provided by (used for) financing activities	40,958		(11,100)

Net change in cash and cash equivalents	(17,663)		(20,449)
Cash and cash equivalents at beginning of period	29,768		30,985
Cash and cash equivalents at the end of period	$	12,105	$	10,536

Supplemental non-cash investing activities:
Capital expenditures included in accounts payable	$	14,932	$	9,832

Supplemental cash activities:
Cash paid for interest	$	6,015	$	3,027
Cash paid for income taxes	$	13,587	$	7,024

See accompanying notes to Condensed Consolidated Financial Statements.

ADVANSIX INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

(Dollars in thousands)


	Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Equity
	Shares	Amount
Balance at December 31, 2023	32,598,946	$	326	$	138,046	$	605,067	$	(58)	$	(4,144)	$	739,237

Net loss	—	—		—		(17,396)		—		—		(17,396)
Comprehensive income
Foreign exchange translation adjustments	—	—		—		—		—		(15)		(15)
Cash-flow hedges	—	—		—		—		—		7		7

Other comprehensive loss, net of tax	—	—		—		—		—		(8)		(8)
Issuance of common stock	323,989	3		423		—		—		—		426
Purchase of treasury stock (260,464 shares)	—	—		(7,020)		—		(3)		—		(7,023)
Stock-based compensation	—	—		2,211		—		—		—		2,211
Dividends	—	—		163		(4,453)		—		—		(4,290)
Balance at March 31, 2024	32,922,935	329		133,823		583,218		(61)		(4,152)		713,157

Net income	—	—		—		38,927		—		—		38,927
Comprehensive income
Foreign exchange translation adjustments	—	—		—		—		—		(27)		(27)


Other comprehensive loss, net of tax	—	—		—		—		—		(27)		(27)
Issuance of common stock	36,653	1		—		—		—		—		1
Purchase of treasury stock (141,242 shares)	—	—		(3,360)		—		(2)		—		(3,362)
Stock-based compensation	—	—		2,193		—		—		—		2,193
Dividends	—	—		130		(4,422)		—		—		(4,292)
Balance at June 30, 2024	32,959,588	$	330	$	132,786	$	617,723	$	(63)	$	(4,179)	$	746,597

ADVANSIX INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

(Dollars in thousands)


	Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Equity
	Shares	Amount
Balance at December 31, 2022	31,977,593	$	320	$	174,585	$	567,517	$	(45)	$	(4,197)	$	738,180

Net income	—	—		—		34,954		—		—		34,954
Comprehensive income
Foreign exchange translation adjustments	—	—		—		—		—		(33)		(33)
Cash-flow hedges	—	—		—		—		—		(150)		(150)

Other comprehensive loss, net of tax	—	—		—		—		—		(183)		(183)
Issuance of common stock	555,249	5		617		—		—		—		622
Purchase of treasury stock (333,054 shares)	—	—		(13,496)		—		(3)		—		(13,499)
Stock-based compensation	—	—		2,013		—		—		—		2,013
Dividends	—	—		112		(4,132)		—		—		(4,020)
Balance at March 31, 2023	32,532,842	325		163,831		598,339		(48)		(4,380)		758,067

Net income	—	—		—		32,728		—		—		32,728
Comprehensive income
Foreign exchange translation adjustments	—	—		—		—		—		(125)		(125)


Other comprehensive loss, net of tax	—	—		—		—		—		(125)		(125)
Issuance of common stock	45,020	1		122		—		—		—		123
Purchase of treasury stock (410,862 shares)	—	—		(14,881)		—		(5)		—		(14,886)
Stock-based compensation	—	—		2,436		—		—		—		2,436
Dividends	—	—		198		(4,182)		—		—		(3,984)
Balance at June 30, 2023	32,577,862	$	326	$	151,706	$	626,885	$	(53)	$	(4,505)	$	774,359

See accompanying notes to Condensed Consolidated Financial Statements.

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

1. Organization, Operations and Basis of Presentation

Description of Business

AdvanSix Inc. ("AdvanSix," the "Company," "we" or "our") is a diversified chemistry company playing a critical role in global supply chains, innovating and delivering essential products for our customers in a wide variety of end markets and applications that touch people’s lives, such as building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives and electronics. Our reliable and sustainable supply of quality products emerges from the integrated value chain of our five U.S.-based manufacturing facilities. AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, plant nutrients and chemical intermediates, guided by our core values of Safety, Integrity, Accountability and Respect.

Basis of Presentation

The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of June 30, 2024, and its results of operations for the three and six months ended June 30, 2024 and 2023 and cash flows for the six months ended June 30, 2024 and 2023. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"). All intercompany transactions have been eliminated.

Certain prior period amounts have been reclassified for consistency with the current period presentation.

It is our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. Historically, the effects of this practice have generally not been significant to reported results for any quarter and only existed within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide the appropriate disclosures. Our actual closing dates for the three and six months ended June 30, 2024 and 2023 were June 29, 2024 and July 1, 2023, respectively.

Liabilities to creditors to whom we have issued checks that remained outstanding at June 30, 2024 and December 31, 2023 aggregated to $3.4 million and $2.9 million, respectively, and were included in Cash and cash equivalents and Accounts payable in the Condensed Consolidated Balance Sheets.

The Company's Board of Directors (the "Board") has authorized share repurchase programs to repurchase shares of the Company's common stock as follows:


Date of Authorization	Authorized Amount (millions)		Authorized Amount Remaining as of June 30, 2024 (millions)
May 4, 2018	$	75.0	$	—
February 22, 2019	75.0		—
February 17, 2023	75.0		62.0
Totals	$	225.0	$	62.0

Repurchases may be made from time to time on the open market in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including through the use of trading plans intended to qualify under Rule 10b5-1 of the Exchange Act. The size and timing of these repurchases will depend on pricing, market and economic conditions,

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

legal and contractual requirements and other factors. The share repurchase program has no expiration date and may be modified, suspended or discontinued at any time. The par value of the shares repurchased is applied to Treasury stock and the excess of the purchase price over par value is applied to Additional paid-in capital.

As of June 30, 2024, the Company has repurchased a total of 6,250,181 shares of common stock, including 1,004,725 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $192.4 million at a weighted average market price of $30.78 per share. As of June 30, 2024, $62.0 million remained available for share repurchases under the current authorization. During the period July 1, 2024 through July 26, 2024, 1,933 additional shares were repurchased for tax withholding obligations in connection with the vesting of equity awards at a weighted average market price of $21.64, and no additional shares were repurchased under the currently authorized repurchase program.

2. Recent Accounting Pronouncements

Recent Accounting Pronouncements – The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations.

On December 13, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require that public business entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that are equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate. The amendments also require that the Company disclose the following (net of refunds received): (1) the amount of income taxes paid disaggregated by federal (national), state, and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. Additionally, the amendments in this update eliminate the requirement for all entities to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or to make a statement that an estimate of the range cannot be made, and remove the requirement to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures. The guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption of the amendments in this update are permitted for annual financial statements that have not yet been issued. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). The amendments in this ASU require incremental disclosures about the Company's reportable segments, but do not change the definition of a segment or the guidance for determining reportable segments. The incremental disclosures should include (1) significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, (2) an amount for other segment items by reportable segment and a description of its composition, (3) profit or loss and assets currently required by Topic 280 in interim periods, (4) clarification if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources and (5) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The guidance is effective for public entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Additionally, public entities should apply the amendments retrospectively to all prior periods presented in the financial statements, unless impractical. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations.

3. Revenues

Revenue Recognition

We serve approximately 400 customers annually in approximately 45 countries across a wide variety of industries. For the three months ended June 30, 2024 and 2023, the Company's ten largest customers accounted for approximately 39% and 40% of total sales, respectively. For each of the six months ended June 30, 2024 and 2023, the Company's ten largest customers accounted for approximately 38% of total sales.

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

We typically sell to customers under master service agreements, with primarily one-year terms, or by purchase orders. We have historically experienced low customer turnover and have long-standing customer relationships, which span decades. Our largest customer is Shaw Industries Group, Inc. (“Shaw”), a significant consumer of caprolactam and Nylon 6 resin, to whom we sell under a long-term agreement. For the three months ended June 30, 2024 and 2023 the Company's sales to Shaw were 9% and 10% of our total sales, respectively. For the six months ended June 30, 2024 and 2023, the Company's sales to Shaw were 9% and 10% of our total sales, respectively.

The Company's revenue by product line, and related approximate percentage of total sales, for the three and six months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Nylon	$	103,217	23%	$	92,953	22%	$	187,606	24%	$	192,325	23%
Caprolactam	81,303		18%	74,682		18%	142,779		18%	147,073		18%
Ammonium Sulfate	139,674		31%	138,940		32%	224,936		28%	253,157		31%
Chemical Intermediates	129,285		28%	121,365		28%	234,987		30%	235,929		28%
Total	$	453,479	100%	$	427,940	100%	$	790,308	100%	$	828,484	100%

The Company's revenues by geographic area, and related approximate percentage of total sales, for the three and six months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024				2023
United States	$	401,859	89%	$	367,608	86%	$	686,447	87	%	$	688,534	83	%
International	51,620		11%	60,332		14%	103,861		13	%	139,950		17	%
Total	$	453,479	100%	$	427,940	100%	$	790,308	100	%	$	828,484	100	%

Deferred Income and Customer Advances

The Company defers revenues when cash payments are received in advance of our performance. Below is a roll-forward of Deferred income and customer advances for the six months ended June 30, 2024:



Opening balance January 1, 2024	$	15,678
Additional cash advances	393
Less amounts recognized in revenues	(14,923)
Ending balance June 30, 2024	$	1,148

The Company expects to recognize as revenue the June 30, 2024 ending balance of Deferred income and customer advances within one year or less.

4. Earnings Per Share

The computation of basic and diluted earnings per share ("EPS") is based on Net income divided by the basic weighted average number of common shares outstanding and diluted weighted average number of common shares outstanding, respectively. The details of the basic and diluted EPS calculations for the three and six months ended June 30, 2024 and 2023 were as follows:

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Basic
Net income	$	38,927	$	32,728	$	21,531	$	67,682
Weighted average common shares outstanding	26,839,429		27,494,555		26,859,044		27,547,874
EPS – Basic	$	1.45	$	1.19	$	0.80	$	2.46
Diluted
Dilutive effect of equity awards and other stock-based holdings	310,918		618,847		392,282		800,392
Weighted average common shares outstanding	27,150,347		28,113,402		27,251,326		28,348,266
EPS – Diluted	$	1.43	$	1.16	$	0.79	$	2.39

Diluted EPS is computed based upon the weighted average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the period.

The diluted EPS calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. The anti-dilutive common stock equivalents outstanding at the three and six months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Options and stock equivalents	1,057,349	503,354	1,127,661	404,009

Dividend activity for the three and six months ended June 30, 2024 and 2023 was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cash dividends declared per share	$	0.16	$	0.145	$	0.32	$	0.29
Aggregate dividends paid to shareholders	$	4,292	$	3,984	$	8,582	$	8,004

5. Accounts and Other Receivables – Net


	June 30, 2024		December 31, 2023
Accounts receivables	$	161,279	$	155,267
Other	9,554		10,959
Total accounts and other receivables	170,833		166,226
Less – allowance for doubtful accounts	(678)		(833)
Total accounts and other receivables – net	$	170,155	$	165,393

6. Inventories

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)


	June 30, 2024		December 31, 2023
Raw materials	$	100,565	$	159,240
Work in progress	45,557		54,936
Finished goods	61,130		61,891
Spares and other	32,626		30,931
	239,878		306,998
Reduction to LIFO cost basis	(64,051)		(95,167)
Total inventories	$	175,827	$	211,831

Substantially all of the Company’s inventories at June 30, 2024 and December 31, 2023 are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method. However, approximately 11% was valued at average cost using the first-in, first-out (“FIFO”) method at June 30, 2024.

The excess of replacement cost over the carrying value of total inventories subject to LIFO was $65.7 million and $65.3 million at June 30, 2024 and December 31, 2023, respectively.

7. Leases

We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets ("ROU"), Operating lease liabilities – short-term, and Operating lease liabilities – long-term in our Condensed Consolidated Balance Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Condensed Consolidated Balance Sheets.

The components of lease expense were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Finance lease cost:
Amortization of right-of-use asset	$	264	$	216	$	508	$	438
Interest on lease liabilities	39		23		77		41
Total finance lease cost	303		239		585		479
Operating lease cost	10,797		11,592		22,483		22,841
Short-term lease cost	1,141		1,511		2,334		2,537

Total lease cost	$	12,241	$	13,342	$	25,402	$	25,857

As of June 30, 2024, we have additional operating leases that have not yet commenced for approximately $99.2 million. These leases are expected to commence during the second half of 2024 and in 2025 with lease terms of up to 6 Years.

8. Goodwill and Intangible Assets

Intangible assets with finite lives acquired through a business combination are recorded at fair value, less accumulated amortization. Customer relationships and trade-names are amortized on a straight-line basis over their expected useful lives of 15 to 20 years and 5 years, respectively.

Goodwill

There was no change in the carrying amount of goodwill for the six months ended June 30, 2024.

Finite-Lived Intangible Assets

Intangible assets subject to amortization were as follows:

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)


	June 30, 2024						December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	36,820	$	(4,713)	$	32,107	$	36,820	$	(3,760)	$	33,060
Licenses	18,451		(6,458)		11,993		18,451		(5,996)		12,455
Trade names	1,100		(532)		568		1,100		(422)		678
Total	$	56,371	$	(11,703)	$	44,668	$	56,371	$	(10,178)	$	46,193

For each of the three months ended June 30, 2024 and June 30, 2023, the Company recorded amortization expense on intangible assets of $0.8 million. For each of the six months ended June 30, 2024 and June 30, 2023, the Company recorded amortization expense on intangible assets of $1.5 million.

9. Commitments and Contingencies

The Company is subject to a number of lawsuits, investigations and disputes, some of which may involve substantial amounts claimed, arising out of the conduct of the Company or other third-parties in the normal and ordinary course of business. A liability is recognized for any contingency that is probable of occurrence and reasonably estimable. The Company continually assesses the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses, based on an analysis of each matter with the assistance of legal counsel and, if applicable, other experts.

Given the uncertainty inherent in such lawsuits, investigations and disputes, the Company does not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters. Considering the Company’s past experience and existing accruals, the Company does not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on the Company’s consolidated financial position or results of operations. Potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause the Company to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Company’s consolidated results of operations, balance sheet and/or operating cash flows in the periods recognized or paid.

We assumed from Honeywell International Inc. ("Honeywell") all health, safety and environmental (“HSE”) liabilities and compliance obligations related to the past and future operations of our current business as of the spin-off, as well as all HSE liabilities associated with the three manufacturing locations assumed from Honeywell that are used in our current operations, including any cleanup or other liabilities related to any contamination that may have occurred at such locations in the past. Honeywell retained all HSE liabilities related to former business locations or the operation of our former businesses. Although we have ongoing environmental remedial obligations at certain of our facilities, in the past three years, the associated remediation costs have not been material, and we do not expect our known remediation costs to have a material adverse effect on the Company's consolidated financial position or results of operations.

10. Income Taxes

The provision for income taxes was $13.1 million and $10.6 million for the three months ended June 30, 2024 and 2023, respectively, resulting in an effective tax rate of 25.2% and 24.4%, respectively. The provision for income taxes was $7.1 million and $19.8 million for the six months ended June 30, 2024 and 2023, respectively, resulting in an effective tax rate of 24.9% and 22.7%, respectively.

The Company’s provision for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income before taxes for the period in addition to recording any tax effects of discrete items for the quarter. The Company’s effective tax rate for the three and six months ended June 30, 2024 was higher than the U.S. federal statutory rate, due to the impacts of state taxes and executive compensation deduction limitations which generally increase the tax rate, partially offset by tax credits which generally decrease the tax rate. The Company’s effective tax rate for the three and six months ended June 30, 2023 differed from the U.S. federal statutory rate, due to the impacts of state taxes and executive compensation deduction limitations which generally increase the tax rate, offset by tax credits and the foreign-derived intangible income deduction which generally decrease the tax rate. Additionally, discrete tax adjustments recorded in the first

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

half of 2023 relating to the vesting of equity compensation and changes in state tax legislation resulted in a net 0.9% decrease to the year-to-date effective tax rate.

11. Fair Value Measurements

Financial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The pension plan assets are invested in collective investment trust funds. These investments are measured at fair value using the net asset value per share as a practical expedient. Investments valued using the net asset value method (NAV) (or its equivalent) practical expedient are excluded from the fair value hierarchy disclosure.

The Company’s Condensed Consolidated Balance Sheets also include Cash and cash equivalents, Accounts receivable and Accounts payable all of which are recorded at amounts which approximate fair value.

The Company also has assets that are required to be recorded at fair value on a non-recurring basis. These assets are evaluated when certain triggering events occur (including a decrease in estimated future cash flows) that indicate the asset should be evaluated for impairment which could result in such assets being measured at fair value. Goodwill must be evaluated at least annually. Our annual evaluation occurred on October 28, 2023 and we concluded that an impairment for goodwill did not occur.

12. Supplier Finance Programs

The Company has entered into a supply chain finance program with a financial intermediary providing participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. AdvanSix’s responsibility is limited to making payments to the intermediary based upon payment terms negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The Company’s payment terms with suppliers are consistent, regardless of whether a vendor participates in the supply chain finance program or not. All related agreements are terminable by either party upon at least 30 days’ notice.

The total amount due to the financial intermediaries to settle supplier invoices under the supplier finance programs was approximately $14 million as of June 30, 2024 and approximately $17 million as of December 31, 2023. These amounts outstanding are included in Accounts payable.

13. Subsequent Events

As announced on August 2, 2024, the Board declared a quarterly cash dividend of $0.16 per share on the Company's common stock, payable on August 27, 2024 to stockholders of record as of the close of business on August 13, 2024.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of the Company’s financial condition and results of operations, which we refer to as our “MD&A,” should be read in conjunction with the Condensed Consolidated Financial Statements and the notes thereto contained in this Quarterly Report on Form 10-Q (this "Form 10-Q"), as well as the MD&A section included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”) on February 16, 2024 (the “2023 Form 10-K”). Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors that can affect our performance in both the near- and long-term, including those incorporated by reference in Item 1A of Part II of this Form 10-Q as such factors may be revised or supplemented in subsequent filings with the SEC, as well as those discussed in the section entitled “Note Regarding Forward-Looking Statements” below.

Note Regarding Forward-Looking Statements

All statements other than statements of historical fact included in this Form 10-Q including, without limitation, statements in this MD&A regarding our financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). When used in this Form 10-Q, words such as "expect," “anticipate,” "estimate," "outlook," "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should," and “believe,” and other variations or similar terminology and expressions identify forward-looking statements. 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: general economic and financial conditions in the U.S. and globally; the potential effects of inflationary pressures, labor market shortages and supply chain issues; instability or volatility in financial markets or other unfavorable economic or business conditions caused by geopolitical concerns, including as a result of the conflict between Russia and Ukraine, the conflict in Israel and Gaza and the possible expansion of such conflicts; the effect of the foregoing on our customers’ demand for our products and our suppliers’ ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.; our ability to sell and provide our goods and services; the ability of our customers to pay for our products; any closures of our and our customers’ offices and facilities; risks associated with increased phishing, compromised business emails and other cybersecurity attacks, data privacy incidents and disruptions to our technology infrastructure; risks associated with operating with a reduced workforce; risks associated with our indebtedness including compliance with financial and restrictive covenants, and our ability to access capital on reasonable terms, at a reasonable cost, or at all, due to economic conditions or otherwise; 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, pandemics and, geopolitical conflicts and related events; price fluctuations, cost increases and supply of raw materials; our operations and growth projects requiring substantial capital; growth rates and cyclicality of the industries we serve including global changes in supply and demand; 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 or otherwise; failure to maintain effective internal controls; our ability to declare and pay quarterly cash dividends and the amounts and timing of any future dividends; our ability to repurchase our common stock and the amount and timing of any future repurchases; disruptions in supply chain, transportation and logistics; potential for uncertainty regarding qualification for tax treatment of our spin-off; fluctuations in our stock price; and changes in laws or regulations applicable to our business. Forward-looking statements are not guarantees of future performance and actual results could differ materially from those contemplated by the forward-looking statements as a result of a number of risks, uncertainties and other factors including those noted above and those detailed in Item 1A of Part I and elsewhere in our 2023 Form 10-K, and subsequent reports filed with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph. We do not undertake to update or revise any of our forward-looking statements.

Business Overview

AdvanSix is a diversified chemistry company playing a critical role in global supply chains, innovating and delivering essential products for our customers in a wide variety of end markets and applications that touch people’s lives, such as building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives and electronics. Our reliable and sustainable supply of quality products emerges from the integrated value chain of our five U.S.-based manufacturing facilities. AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, plant nutrients and chemical intermediates, guided by our core values of Safety, Integrity, Accountability and Respect. Our four key product lines are as follows:

•Nylon Solutions

◦Nylon – We sell our Nylon 6 resin globally, primarily under the Aegis® brand name. Nylon 6 is 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 electric components, sports apparel, food packaging and other industrial applications.

◦Caprolactam – Caprolactam is the key monomer used in the production of Nylon 6 resin. We internally polymerize caprolactam into Aegis® Nylon 6 Resins, and we also market and sell the caprolactam that is not consumed internally to customers who use it to manufacture polymer resins to produce fibers, compounds and other nylon products. Our Hopewell, VA manufacturing facility is one of the world’s largest single-site producers of caprolactam as of June 30, 2024.

•Ammonium Sulfate – Our ammonium sulfate is used by customers as a fertilizer containing nitrogen and sulfur, two key plant nutrients. Ammonium sulfate fertilizer is derived from the integrated operations at the Hopewell manufacturing facility. Because of our Hopewell facility’s size, scale and technology design, we are the world’s largest single-site producer of ammonium sulfate fertilizer as of June 30, 2024. We market and sell ammonium sulfate primarily to North American and South American distributors, farm cooperatives and retailers to fertilize crops.

•Chemical Intermediates – We manufacture, market and sell a number of other chemical intermediate products that are derived from the manufacturing processes within our integrated supply chain. Most significant is acetone which is used by our customers in the production of adhesives, paints, coatings, solvents, herbicides and engineered plastic resins. Other intermediate chemicals that we manufacture, market and sell include phenol, alpha-methylstyrene (“AMS”), cyclohexanone, 2-pentanone oxime, cyclohexanol, sulfuric acid, ammonia and carbon dioxide. With the acquisition of U.S. Amines Limited (“U.S. Amines”), we now produce alkyl and specialty amines serving high-value end markets such as agrochemicals and pharmaceuticals.

Global demand for Nylon 6 resin spans a variety of end-uses such as textiles, engineered plastics, industrial filament, food and industrial films, and carpet. The market growth typically tracks global GDP growth over the long-term but varies by end-use. We produce and sell caprolactam as a commodity product and produce and sell our Nylon 6 resin as both a commoditized and differentiated resin product. Our results of operations are primarily driven by production volume and the spread between the sales prices of our products and the costs of the underlying raw materials built into market-based and value-based pricing models. The global prices for nylon resin typically track a spread over the price of caprolactam, which in turn tracks as a spread over benzene because the key feedstock materials for caprolactam, phenol or cyclohexane, are derived from benzene. This price spread has historically experienced cyclicality as a result of global changes in supply and demand. Generally, Nylon 6 resin prices track the cyclicality of caprolactam prices, although prices set above the spread are achievable when nylon resin manufacturers, like AdvanSix, formulate and produce differentiated nylon resin products for current and new customer applications, such as our wire and cable and co-polymer offerings.

Global prices for ammonium sulfate fertilizer are influenced by several factors including the price of urea, which sets the nutrient value for nitrogen as it is the most widely used source of nitrogen-based fertilizer in the world. Other global factors driving ammonium sulfate fertilizer demand are general agriculture trends, including planted acres and the price of crops. Our ammonium sulfate product is positioned with the added value proposition of sulfur nutrition to increase yields of key crops. In addition, due to its nutrient density, the typical ammonium sulfate product delivers pound for pound the most readily available sulfur and nitrogen to crops as compared to other fertilizers. We also directly supply packaged ammonium sulfate to customers, primarily in North and South America, and have diversified and optimized our offerings to include spray-grade adjuvants to support crop protection, as well as other specialty fertilizers and products for industrial use.

We produce ammonium sulfate fertilizer continuously throughout the year as part of our manufacturing process, but quarterly sales fluctuate reflecting both geographical and product sales mix considerations based on the timing and length of the growing seasons in North and South America. North American ammonium sulfate demand and pricing, particularly for our higher-value granular product, are typically strongest during second quarter fertilizer application and then typically decline seasonally with new season fill in the third quarter. Ammonium sulfate industry prices in the corn belt have declined approximately 10% from

the second quarter to the third quarter, on average, since 2016. Due to the ammonium sulfate fertilizer sales cycle, we occasionally build up higher inventory balances because our production is continuous and not tied to seasonal demand for fertilizers. Sales of most of our other products have generally been subject to minimal, or no, seasonality.

We also manufacture, market and sell a number of chemical intermediate products that are derived from the manufacturing processes within our integrated supply chain. Most significant is acetone, the price of which is influenced by its own supply and demand dynamics but can also be influenced by the underlying move in propylene input costs. Our differentiated product offerings include high-purity applications and high-value intermediates including our U.S. Amines portfolio as well as our oximes-based EZ-Blox™ anti-skinning agent used in paints and Nadone® cyclohexanone, which is a solvent used in various high-value applications.

We seek to run our production facilities on a nearly continuous basis for maximum efficiency as several of our intermediate products are key feedstock materials for other products in our integrated manufacturing chain. While our integration, scale and range of product offerings make us one of the most efficient manufacturers in our industry, these attributes also expose us to increased risk associated with material disruptions at any one of our production facilities or logistics operations which could impact the overall manufacturing supply chain. Further, although we believe that our sources of supply for our raw materials, including cumene, natural gas and sulfur, are generally robust, it is difficult to predict the impact that shortages, increased costs and related supply chain logistics considerations may have in the future. In order to mitigate the risk of unplanned interruptions, we schedule several planned plant turnarounds each year to conduct routine and major maintenance across our facilities. We also utilize maintenance excellence and mechanical integrity programs, targeted buffer inventory of intermediate chemicals necessary for our manufacturing process, and co-producer swap arrangements, which are intended to mitigate the extent of any production losses as a result of planned and unplanned downtime; however, the mitigation of all or part of any such production impact cannot be assured.

Recent Developments

Business Operations

In January 2024, the Company experienced a process-based operational disruption at its Frankford, Pennsylvania manufacturing site temporarily reducing phenol and acetone production at the facility, as well as production at its Hopewell and Chesterfield, Virginia facilities. As a result of a delayed ramp to targeted utilization rates, the Company recognized an unfavorable impact to pre-tax income in the first quarter 2024 of approximately $27 million, comprised of the impact of lost sales and other additional costs including purchases of replacement product and incremental plant spend. The Company returned to targeted utilization rates at its Frankford, Pennsylvania manufacturing site, as well as across its value chain, prior to the end of the first quarter of 2024.

Chesterfield, VA Collective Bargaining Agreement

On May 9, 2024, the Company’s Chesterfield bargaining unit, represented by the Teamsters Local 592, ratified a new five-year labor agreement in advance of the prior agreement’s anticipated expiration date of May 14, 2024. The ratified labor agreement affected approximately 160 workers at the Company’s manufacturing facility in Chesterfield, Virginia.

Results of Operations

(Dollars in thousands, unless otherwise noted)

Sales


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Sales	$	453,479	$	427,940	$	790,308	$	828,484
% change compared with prior year period	6.0%				(4.6)%

The change in sales compared to the prior year period is attributable to the following:


	Three Months Ended June 30, 2024	Six Months Ended June 30, 2024
Volume	5.5%	(0.7)%
Price	0.5%	(3.9)%

	6.0%	(4.6)%

Sales increased in the three months ended June 30, 2024 compared to the prior year period by $25.5 million (approximately 6%) due to (i) increased volume primarily driven by higher sales of nylon and ammonium sulfate (approximately 5%) due to favorable North American supply and demand conditions, and (ii) net favorable pricing including continued strength in acetone (approximately 1%).

Sales decreased in the six months ended June 30, 2024 compared to the prior year period by $38.2 million (approximately 5%) due to (i) net unfavorable impact of market-based and raw material pass-through pricing (approximately 4%) primarily reflecting reduced ammonium sulfate pricing amid lower raw material input costs and a more stable global nitrogen supply environment, as well as lower nylon pricing due to unfavorable supply and demand conditions, and (ii) a decrease in sales volume (approximately 1%) primarily driven by lost sales resulting from the first quarter operational disruption partially offset by strong second quarter sales volume.

Costs of Goods Sold


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Costs of goods sold	$	372,111	$	360,017	$	705,975	$	690,059
% change compared with prior year period	3.4%				2.3%
Gross Margin percentage	17.9%		15.9%		10.7%		16.7%

Costs of goods sold increased in the three months ended June 30, 2024 compared to the prior year period by $12.1 million (approximately 3%) due to increased sales volume (approximately 4%).

Costs of goods sold increased in the six months ended June 30, 2024 compared to the prior year period by $16.0 million (approximately 2%) due to increased second quarter 2024 sales volume (approximately 2%), the impact of lower production volumes primarily driven by the process-based operational disruption at the Frankford, Pennsylvania manufacturing site (approximately 1%), partially offset by a decrease in raw material costs driven by natural gas and sulfur (approximately 2%).

Gross margin percentage increased in the three months ended June 30, 2024 compared to the prior year period (approximately 2%) due primarily to higher sales volume (approximately 1%) and lower plant costs (approximately 2%).

Gross margin percentage decreased in the six months ended June 30, 2024 compared to the prior year period (approximately 6%) due primarily to (i) the net impact of lower sales volume and changes in sales mix (approximately 2%) as well as lower production volumes (approximately 1%), primarily driven by the process-based operational disruption at the Frankford, Pennsylvania manufacturing site and (ii) the impact of market-based pricing, net of raw material costs (approximately 2%).

Selling, General and Administrative Expenses


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Selling, general and administrative expenses	$	24,431	$	24,011	$	48,024	$	49,126
Percentage of Sales	5.4%		5.6%		6.1%		5.9%

Selling, general and administrative expenses remained relatively flat in the three months ended June 30, 2024 compared to the prior year period.

Selling, general and administrative expenses decreased by $1.1 million in the six months ended June 30, 2024 compared to the prior year period due to lower bad debt expense and a decline in functional support costs, including a moderation of enterprise resource planning system expense from the prior year.

Income Tax Expense


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Income tax expense	$	13,145	$	10,555	$	7,124	$	19,829
Effective tax rate	25.2%		24.4%		24.9%		22.7%

The Company's effective tax rate for the three months ended June 30, 2024 was higher than the prior year period due primarily to impacts of executive compensation deduction limitations and a decrease in the projected foreign-derived intangible income deduction. The Company's effective tax rate for the six months ended June 30, 2024 was higher than the prior year period due primarily to the larger benefit from the vesting of equity compensation in the prior year period versus the current year period and a decrease in the projected foreign-derived intangible income deduction.

On January 31, 2024, the U.S. House of Representatives approved a tax bill, which among other provisions, aims to reinstate 100% bonus depreciation for property placed in service after December 31, 2022 until January 1, 2026 and to allow taxpayers to expense domestic research costs retroactively back to 2022 and prospectively through tax years beginning before 2026. Enactment remains highly uncertain, but the Company continues to monitor ongoing developments in the proposed legislation.

Net Income


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	38,927	$	32,728	$	21,531	$	67,682

As a result of the factors described above, Net income was $38.9 million for the three months ended June 30, 2024 as compared to $32.7 million in the corresponding prior year period.

As a result of the factors described above, Net income was $21.5 million for the six months ended June 30, 2024 as compared to $67.7 million in the corresponding prior year period.

Non-GAAP Measures

(Dollars in thousands, unless otherwise noted)

The following tables set forth the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net income and Adjusted Earnings Per Share. Adjusted EBITDA is defined as Net income before Interest, Income taxes, Depreciation and amortization, Non-cash stock-based compensation, Non-recurring, unusual or extraordinary expenses, Non-cash amortization from acquisitions and One-time merger and acquisition costs. Adjusted EBITDA Margin is equal to Adjusted EBITDA divided by Sales. The Company believes these non-GAAP financial measures provide meaningful supplemental information as they are used by the Company’s management to evaluate the Company’s operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to its competitors, as the non-GAAP measures exclude items that management believes do not reflect the Company’s ongoing operations.

These non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for the financial information presented in accordance with U.S. GAAP. Non-GAAP financial measures should be read only in

conjunction with the comparable U.S. GAAP financial measures. The Company's non-GAAP measures may not be comparable to other companies' non-GAAP measures.

The following is a reconciliation between the non-GAAP financial measures of Adjusted Net income, Adjusted EBITDA and Adjusted EBITDA Margin to their most directly comparable U.S. GAAP financial measure:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	38,927	$	32,728	$	21,531	$	67,682
Non-cash stock-based compensation	2,193		2,436		4,404		4,449
Non-recurring, unusual or extraordinary expenses*	1,200		—		1,200		—
Non-cash amortization from acquisitions	532		532		1,064		1,064
Non-recurring M&A costs	—		—		—		—
Benefit from income taxes relating to reconciling items	(762)		(498)		(1,227)		(933)
Adjusted Net income (non-GAAP)	42,090		35,198		26,972		72,262
Interest expense, net	3,514		1,954		6,213		3,221
Income tax expense - Adjusted	13,907		11,053		8,351		20,763
Depreciation and amortization - Adjusted	18,630		17,580		37,200		34,893
Adjusted EBITDA (non-GAAP)	$	78,141	$	65,785	78,736		131,139



Sales	$	453,479	$	427,940	$	790,308	$	828,484

Adjusted EBITDA Margin** (non-GAAP)	17.2%		15.4%		10.0%		15.8%

* Includes a pre-tax loss of approximately $1.2 million related to the reduction of the Company's anticipated receivable related to the gain on the termination fee recorded upon the exit from the Oben alliance during the third quarter of 2023.

** Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales

The following is a reconciliation between the non-GAAP financial measures of Adjusted Earnings Per Share to its most directly comparable U.S. GAAP financial measure:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Net income	$	38,927	$	32,728	$	21,531	$	67,682
Adjusted Net income (non-GAAP)	42,090		35,198		26,972		72,262


Weighted-average number of common shares outstanding - basic	26,839,429		27,494,555		26,859,044		27,547,874
Dilutive effect of equity awards and other stock-based holdings	310,918		618,847		392,282		800,392
Weighted-average number of common shares outstanding - diluted	27,150,347		28,113,402		27,251,326		28,348,266

EPS - Basic	$	1.45	$	1.19	$	0.80	$	2.46
EPS - Diluted	$	1.43	$	1.16	$	0.79	$	2.39
Adjusted EPS - Basic (non-GAAP)	$	1.57	$	1.28	$	1.00	$	2.62
Adjusted EPS - Diluted (non-GAAP)	$	1.55	$	1.25	$	0.99	$	2.55

Liquidity and Capital Resources

(Dollars in thousands, unless otherwise noted)

Liquidity

We believe that cash balances and operating cash flows, together with available capacity under our credit agreement, as utilized in the second quarter of 2024, will provide adequate funds to support our current short-term operating objectives as well as our longer-term strategic plans, subject to the risks and uncertainties outlined below, in our "Note Regarding Forward-Looking Statements" above, and in the risk factors previously disclosed in Item 1A of Part I of our 2023 Form 10-K. Our principal source of liquidity is our cash flow generated from operating activities, which is expected to provide us with the ability to meet the majority of our short-term funding requirements. Our cash flows are affected by capital requirements and production volume, which may be materially impacted by unanticipated events such as unplanned downtime, material disruptions at our production facilities, the prices of our raw materials, general economic and industry trends and customer demand. The Company applies a proactive and disciplined approach to working capital management to optimize cash flow and to enable capital allocation options in support of the Company’s strategy. We utilize supply chain financing and trade receivables discount arrangements with third-party financial institutions which optimize terms and conditions related to accounts receivable and accounts payable in order to enhance liquidity and enable us to efficiently manage our working capital needs. Although we continue to optimize supply chain financing and trade receivable programs in the ordinary course, our utilization of these arrangements has not had a material impact on our liquidity. In addition, we monitor the third-party depository institutions that hold our cash and cash equivalents. Our emphasis is primarily on the safety of principal and secondarily on maximizing yield on those funds. We diversify our cash and cash equivalents among counterparties to minimize exposure to any one of these entities.

On a recurring basis, our primary future cash needs will be centered on operating activities, working capital, capital expenditures, dividends and liquidity reflecting disciplined capital deployment. Capital expenditures are deployed for various ongoing investments and initiatives to improve reliability, yield and quality, expand production capacity and comply with health, safety and environmental ("HSE") regulations. We believe that our future cash from operations, cash on hand and available capacity under our credit agreement, as well as our access to credit and capital markets, will provide adequate resources to fund our expected operating and financing needs and obligations. Our ability to fund our capital needs, however, will depend on our ongoing ability to generate cash from operations and access to credit and capital markets, both of which are subject to the risk factors previously disclosed in Item 1A of Part I of our 2023 Form 10-K, as well as general economic, financial, competitive, regulatory and other factors that are beyond our control.

As of the end of the second quarter of 2024, the Company had approximately $12.1 million of cash on hand with approximately $269 million of additional capacity available under the revolving credit facility. The Company’s Consolidated Leverage Ratio financial covenant of its credit facility allows it to net up to $75 million of cash with debt. Capital expenditures are expected to be approximately $140 million to $150 million in 2024 compared to $107 million in 2023, reflecting increased spend due to replacement maintenance, growth and cost savings projects and enterprise programs.

We assumed from Honeywell International Inc. ("Honeywell") all HSE liabilities and compliance obligations related to the past and future operations of our current business as of the spin-off, as well as all HSE liabilities associated with the three manufacturing locations assumed from Honeywell that are used in our current operations, including any cleanup or other liabilities related to any contamination that may have occurred at such locations in the past. Honeywell retained all HSE liabilities related to former business locations or the operation of our former businesses. Although we have ongoing environmental remedial obligations at certain of our facilities, in the past three years, the associated remediation costs have not been material, and we do not expect our known remediation costs to have a material adverse effect on the Company's consolidated financial position or results of operations.

We expect that our primary cash requirements for 2024 will be to fund costs associated with ongoing operations, capital expenditures, and amounts related to other contractual obligations.

The Company made no cash contributions to the defined benefit pension plan during the six months ended June 30, 2024. The Company expects aggregate cash contributions of $0 to $2 million in 2024 and additional contributions in future years sufficient to satisfy pension funding requirements in those periods.

The Company's Board of Directors (the "Board") has authorized share repurchase programs to repurchase shares of the Company's common stock as follows:


Date of Authorization	Authorized Amount (millions)		Authorized Amount Remaining as of June 30, 2024 (millions)
May 4, 2018	$	75.0	$	—
February 22, 2019	75.0		—
February 17, 2023	75.0		62.0
Totals	$	225.0	$	62.0

Repurchases may be made from time to time on the open market in accordance with Rule 10b-18 of the Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Exchange Act. The size and timing of these repurchases will depend on pricing, market and economic conditions, legal and contractual requirements and other factors. The share repurchase program has no expiration date and may be modified, suspended or discontinued at any time. The par value of the shares repurchased is applied to Treasury stock and the excess of the purchase price over par value is applied to Additional paid-in capital.

As of June 30, 2024, the Company has repurchased a total of 6,250,181 shares of common stock life-to-date, including 1,004,725 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $192.4 million at a weighted average market price of $30.78 per share. As of June 30, 2024, $62.0 million remained available for share repurchases under the current authorization. During the period from July 1, 2024 through July 26, 2024, 1,933 additional shares were repurchased for tax withholding obligations in connection with the vesting of equity awards at a weighted average market price of $21.64, and no additional shares were repurchased under the currently authorized repurchase program.

As of June 30, 2024, the Company did not have any off-balance sheet arrangements as described in Instruction 8 to Item 303(b) of Regulation S-K and did not have any material changes in the commitments or contractual obligations detailed in the Company's 2023 Form 10-K (see Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" under "Liquidity and Capital Resources - Liquidity"). The Company has not guaranteed any debt or commitments of other entities or entered into any options on non-financial assets.

Dividends

The Company commenced the declaration of dividends on September 28, 2021.

Dividends announced during 2024 are as follows:

Date of Announcement

Date of Record

Date Payable

Dividend per Share

Total Approximate Dividend Amount ($M)

8/2/2024

8/13/2024

8/27/2024

$0.16

$4.3

5/3/2024

5/14/2024

5/28/2024

$0.16

$4.3

2/16/2024

3/4/2024

3/18/2024

$0.16

$4.3

The timing, declaration, amount and payment of future dividends to stockholders, if any, will fall within the discretion of our Board. Holders of shares of our common stock will be entitled to receive dividends when, and if, declared by our Board at its discretion out of funds legally available for that purpose, subject to the terms of our indebtedness, the preferential rights of any preferred stock that may be outstanding, legal requirements, regulatory constraints, industry practice and other factors that our Board deems relevant.

Credit Agreement

On September 30, 2016, the Company as the borrower, entered into a Credit Agreement with Bank of America, as administrative agent (the "Original Credit Agreement"), which was amended on February 21, 2018 (the "First Amended and Restated Credit Agreement"), and further amended on February 19, 2020 (the “Second Amended and Restated Credit

Agreement”). The Second Amended and Restated Credit Agreement had a five-year term with a scheduled maturity date of February 21, 2023.

On October 27, 2021, the Company completed a refinancing of the Second Amended and Restated Credit Agreement by entering into a new Credit Agreement (the “Credit Agreement”), among the Company, the lenders party thereto, the swing line lenders party thereto, the letter of credit issuers party thereto and Truist Bank, as administrative agent, which provides for a new senior secured revolving credit facility in an aggregate principal amount of $500 million (the “Revolving Credit Facility”).

Borrowings under the Revolving Credit Facility are subject to customary borrowing conditions.

The Revolving Credit Facility has a scheduled maturity date of October 27, 2026. The Credit Agreement permits the Company to utilize up to $40 million of the Revolving Credit Facility for the issuance of letters of credit and up to $40 million for swing line loans. The Company has the option to establish a new class of term loans and/or increase the amount of the Revolving Credit Facility in an aggregate principal amount for all such incremental term loans and increases of the Revolving Credit Facility of up to the sum of (x) $175 million plus (y) an amount such that the Company’s Consolidated First Lien Secured Leverage Ratio (as defined in the Credit Agreement) would not be greater than 2.75 to 1.00, in each case, to the extent that any one or more lenders, whether or not currently party to the Credit Agreement, commits to be a lender for such amount or any portion thereof.

With the cessation of LIBOR on June 30, 2023 and subject to the First Amendment to the Credit Agreement, dated as of June 27, 2023, the Eurodollar Rate was replaced with the Adjusted Term SOFR as an alternative benchmark rate for purposes of the Credit Agreement. The transition was effective July 1, 2023. Borrowings under the Credit Agreement bear interest at a rate equal to either the sum of a base rate plus a margin ranging from 0.25% to 1.25% or the sum of an Adjusted Term SOFR rate plus a margin ranging from 1.25% to 2.25%, with either such margin varying according to the Company’s Consolidated Leverage Ratio (as defined in the Credit Agreement). The Company is also required to pay a commitment fee in respect of unused commitments under the Revolving Credit Facility, if any, at a rate ranging from 0.15% to 0.35% per annum depending on the Company’s Consolidated Leverage Ratio. In conjunction with the cessation of LIBOR, as of July 1, 2023, the applicable margin under the Credit Agreement was 0.25% for base rate loans and 1.25% for Adjusted Term SOFR loans and the applicable commitment fee rate was 0.15% per annum.

Substantially all tangible and intangible assets of the Company and its domestic subsidiaries are pledged as collateral to secure the Company's obligations under the Credit Agreement.

The Credit Agreement contains customary covenants limiting the ability of the Company and its subsidiaries to, among other things, pay cash dividends, incur debt or liens, redeem or repurchase stock of the Company, enter into transactions with affiliates, make investments, make capital expenditures, merge or consolidate with others or dispose of assets. The Credit Agreement also contains financial covenants that require the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of not less than 3.00 to 1.00 and to maintain a Consolidated Leverage Ratio of (i) 4.00 to 1.00 or less for the fiscal quarter ending December 31, 2021, through and including the fiscal quarter ending September 30, 2023 and (ii) 3.75 to 1.00 or less for each fiscal quarter thereafter (subject to the Company’s option to elect a consolidated leverage ratio increase in connection with certain acquisitions). If the Company does not comply with the covenants in the Credit Agreement, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Revolving Credit Facility. We were in compliance with all of our covenants at June 30, 2024 and through the date of the filing of this Form 10-Q.

We had a borrowed balance of $170 million under the Revolving Credit Facility at December 31, 2023. We borrowed an incremental net amount of $60 million during the six months ended June 30, 2024, bringing the balance under the Revolving Credit Facility to $230 million, and available credit for use of approximately $269 million as of June 30, 2024. We expect that Cash provided by operating activities will fund future interest payments on the Company's outstanding indebtedness.

Cash Flow Summary


	Six Months Ended June 30,
	2024		2023
Cash provided by (used for):
Operating activities	$	13,998	$	36,579
Investing activities	(72,619)		(45,928)
Financing activities	40,958		(11,100)
Net change in cash and cash equivalents	$	(17,663)	$	(20,449)

Cash provided by operating activities decreased by $22.6 million for the six months ended June 30, 2024 versus the prior year period due primarily to (i) a $46.2 million decrease in Net income and (ii) the unfavorable cash impact of $12.8 million from Taxes receivable and Income taxes payable combined, driven by the timing of tax payments. These net unfavorable impacts were partially offset by (i) a $20.1 million favorable cash impact from working capital (comprised of Accounts and other receivables, Inventories, Accounts payable and Deferred income and customer advances) with a $46.2 million unfavorable cash impact from working capital for the six months ended June 30, 2024 compared to a $66.3 million unfavorable cash impact in the prior year period due primarily to the favorable impact of Inventory and Deferred income and customer advances partially offset by Accounts and other receivables and Accounts payable, (ii) a $11.9 million favorable cash impact from accrued liabilities due primarily to the timing of payments during the six months ended June 30, 2023 compared to the prior year period and (iii) a $4.3 million favorable impact from other assets and liabilities.

Cash used for investing activities increased by $26.7 million for the six months ended June 30, 2024 versus the prior year period due primarily to higher cash payments for capital expenditures of approximately $25.0 million during the current year period primarily reflecting increased spend on replacement maintenance and enterprise programs.

Cash provided by financing activities increased by $52.1 million for the six months ended June 30, 2024 versus the prior year period due primarily to net borrowings of $60.0 million during the six months ended June 30, 2024 compared to net borrowings of $25.0 million during the prior year period, partially offset by payments for share repurchases of $10.4 million and cash paid for dividends of approximately $8.6 million during the six months ended June 30, 2024 compared to $28.4 million and $8.0 million during the prior year period, respectively.

Capital Expenditures

(Dollars in thousands, unless otherwise noted)

Our operations are capital intensive, requiring ongoing investments that have consisted, and are expected to continue to consist, primarily of capital expenditures required to maintain and improve equipment reliability, expand production output, further improve mix, yield and cost position, and comply with environmental and safety regulations.

The following table summarizes ongoing and expansion capital expenditures:


	Six Months Ended June 30, 2024
Capital expenditures in Accounts payable at December 31, 2023	$	22,660
Purchases of property, plant and equipment	61,155
Less: Capital expenditures in Accounts payable at June 30, 2024	(14,932)
Cash paid for capital expenditures	$	68,883

For 2024, we expect our total capital expenditures to be approximately $140 million to $150 million compared to $107 million in 2023, reflecting increased spend to address critical enterprise risk mitigation and growth projects including our SUSTAIN (Sustainable U.S. Sulfate to Accelerate Increased Nutrition) program.

Critical Accounting Policies and Estimates

The preparation of our Condensed Consolidated Financial Statements in accordance with U.S. GAAP is based on the selection and application of accounting policies that require us to make significant estimates and assumptions about the effects of matters that are inherently uncertain. We consider these accounting policies to be critical to the understanding of our Condensed Consolidated Financial Statements. For a full description of our critical accounting policies, refer to Management’s Discussion

and Analysis of Financial Condition and Results of Operations contained in our 2023 Form 10-K. While there have been no material changes to our critical accounting policies, or the methodologies or assumptions we apply under them since the filing of the 2023 Form 10-K, we continue to monitor such methodologies and assumptions.

Recent Accounting Pronouncements

See “Note 2. Recent Accounting Pronouncements” to the Condensed Consolidated Financial Statements included in Part I. Item 1 of this Form 10-Q.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

Our exposure to risk based on changes in interest rates during the six-month period ended June 30, 2024 relates primarily to the Revolving Credit Facility. The Revolving Credit Facility bears interest at floating rates. For variable rate debt, interest rate changes generally do not affect the fair market value of such debt assuming all other factors remain constant but do impact future earnings and cash flows. Accordingly, we may be exposed to interest rate risk on borrowings under the Credit Agreement.

Based on current borrowing levels at June 30, 2024, a 25-basis point fluctuation in interest rates for the six months ended June 30, 2024 would have resulted in an increase or decrease to our interest expense of approximately $0.6 million.

See “Note 12. Derivative and Hedging Instruments” to the Consolidated Financial Statements included in Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 for a discussion relating to credit and market, commodity price and interest rate risk management.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Management recognizes that any disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives. Because there are inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud have been, or will be, detected.

Our Chief Executive Officer and Chief Financial Officer, with the assistance of other members of our management, conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report. Based upon such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective at a reasonable assurance level as of June 30, 2024, the end of the period covered by this quarterly report.

Changes in Internal Control over Financial Reporting

Management has not identified any change in the Company's internal control over financial reporting that occurred during the quarter ended June 30, 2024 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are involved in litigation relating to claims arising outside of the ordinary course of our business operations. We are not a party to, and, to our knowledge, there are no pending claims or actions against us, the ultimate disposition of which could be expected to have a material adverse effect on our consolidated financial position, results of operations or operating cash flows.

ITEM 1A. RISK FACTORS

There have been no material changes to our risk factors as previously disclosed in Item 1A of Part I of the Company’s 2023 Form 10-K, which are hereby incorporated by reference.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On May 4, 2018, the Company announced that the Board authorized a share repurchase program of up to $75 million of the Company’s common stock. On February 22, 2019, the Company announced that the Board authorized a share repurchase program of up to an additional $75 million of the Company's common stock, which was in addition to the remaining capacity authorized under the May 2018 share repurchase program. On February 17, 2023, the Company announced that the Board authorized a share repurchase program of up to an additional $75 million of the Company's common stock, which was in addition to the remaining capacity available under the previously approved share repurchase program. Repurchases may be made from time to time on the open market in accordance with Rule 10b-18 of the Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Exchange Act. The size and timing of these repurchases will depend on pricing, market and economic conditions, legal and contractual requirements and other factors. The repurchase program has no expiration date and may be modified, suspended or discontinued at any time.

The below table sets forth the repurchases of Company common stock, by month, for the quarter ended June 30, 2024. During the quarter ended June 30, 2024, 135,628 shares were purchased under our share repurchase program and 5,614 shares were withheld to cover tax withholding obligations in connection with the vesting of equity awards.

ISSUER PURCHASES OF EQUITY SECURITIES


Period		Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan
April 2024	(1)	2,869	$	27.15	—	$	65,167,589
May 2024		21,985	22.70		21,985	64,668,447
June 2024	(2)	116,388	23.85		113,643	61,957,898
Total		141,242	$	23.74	135,628

(1) Total number of shares purchased includes 2,869 shares covering tax withholding obligations in connection with the vesting of equity awards

(2) Total number of shares purchased includes 2,745 shares covering tax withholding obligations in connection with the vesting of equity awards

During the period July 1, 2024 through July 26, 2024, 1,933 additional shares were repurchased for tax withholding obligations in connection with the vesting of equity awards at a weighted average market price of $21.64, and no additional shares were repurchased under the currently authorized repurchase program.

ITEM 5. OTHER INFORMATION

Insider Rule 10b5-1 Trading Plans

During the quarter ended June 30, 2024, none of our directors and executive officers adopted or terminated a "Rule 10b5-1 trading arrangement," as those terms are defined in Item 408 of Regulation S-K.

ITEM 6. EXHIBITS


Exhibit						Description
3.1						Amended and Restated Certificate of Incorporation of AdvanSix Inc. (conformed copy) (incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q filed on August 1, 2019).
3.2						Amended and Restated By-laws of AdvanSix Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on June 20, 2023).
10.1						Amendment No. 3 to Amended and Restated Caprolactam and Polymer Supply Agreement, dated as of May 1, 2024, by and between AdvanSix Resins and Chemicals LLC and Shaw Industries Group, Inc.*
31.1						Rule 13a-14(a)/15d-14(a) Certification of the Company’s Principal Executive Officer.
31.2						Rule 13a-14(a)/15d-14(a) Certification of the Company’s Principal Financial Officer.
32.1						Section 1350 Certification of the Company’s Principal Executive Officer. The information contained in this Exhibit shall not be deemed filed with the SEC nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended.
32.2						Section 1350 Certification of the Company’s Principal Financial Officer. The information contained in this Exhibit shall not be deemed filed with the SEC nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended.
101.INS						Inline XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and included in Exhibit 101)

* Portions of this exhibit have been redacted in compliance with Item 601(b)(10) of Regulation S-K.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	ADVANSIX INC.

Date: August 2, 2024	By:	/s/ Michael Preston
		Michael Preston
		Senior Vice President and Chief Financial Officer

Exhibit 10.1

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. REDACTED INFORMATION IS INDICATED BY [***].

AMENDMENT NO. 3 TO AMENDED & RESTATED

CAPROLACTAM & POLYMER SUPPLY AGREEMENT

This AMENDMENT NO. 3 TO AMENDED AND RESTATED CAPROLACTAM AND POLYMER SUPPLY AGREEMENT (“Am. No. 3”) is dated as of May 1, 2024 (“Am. No. 3 Effective Date”) and is made by and between AdvanSix Resins & Chemicals LLC (“Seller”) and Shaw Industries Group, Inc. (“Buyer”). Seller and Buyer are collectively referred to as the “Parties”.

WHEREAS, the Parties entered into that certain Amended and Restated Caprolactam and Polymer Supply Agreement effective January 1, 2019 (the “Agreement”);

WHEREAS, the Parties amended the Agreement effective October 1, 2021 to revise the [***] definition in accordance with Section 9.4 therein (“Am. No. 1”);

WHEREAS, the Parties amended the Agreement effective January 1, 2023 to agree upon certain terms concerning [***] in accordance with Section 9.4 therein (“Am. No. 2”);

WHEREAS, Buyer and Seller wish to amend the Agreement in accordance with Section 9.4 therein and agree upon certain additional terms with respect to [***] as described below, as set forth in this Am. No. 3.

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Buyer and Seller agree as follows:

1. [***]. Effective January 1, 2024 through the end of the Initial Term, the definition for “[***]” as set forth in Schedule 2.1(I) Caprolactam Index Amount of the Agreement shall be deleted and replaced with the following in its entirety:

[***]

2. Miscellaneous.

a. Defined Terms. Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Agreement.

b. Effect on the Agreement. The Agreement shall continue in full force and effect as amended by this Am. No. 3 and this Am. No. 3, together with the Agreement and Am. Nos. 1 and 2, constitutes the entire agreement of the Parties with respect to the matters set forth herein and there are no other agreements, commitments or understandings among the Parties with respect to the matters set forth herein. In the event of any conflict or inconsistency between the provisions of this Am. No. 3 and the provisions of the Agreement and Am. Nos. 1 and 2, the provisions of this Am. No. 3 shall govern and control. Each and every other term, condition, covenant, representation, warranty and provision set forth in the Agreement shall remain in full force and effect in accordance with the terms of the Agreement. From and after the date hereof, all references in the Agreement to the “Agreement” shall be deemed to mean the Agreement as amended by Am. Nos. 1, 2 and 3.

c. Counterparts. This Am. No. 3 may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. A signed copy of this Am. No. 3 delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Am. No. 3.

NOW THEREFORE, Buyer and Seller have signed this Am. No. 3 as of the Am. No. 3 Effective Date.

Seller:

AdvanSix Resins & Chemicals LLC

Buyer:

Shaw Industries Group, Inc.

By:

/s/ Erin Kane

By:

/s/ Jane Stahl

Name:

Erin Kane

Name:

Jane Stahl

Title:

President & CEO

Title:

General Counsel

Exhibit 31.1

CERTIFICATIONS

I, Erin N. Kane, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of AdvanSix Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2024


			/s/ Erin N. Kane
			Erin N. Kane
			President and Chief Executive Officer

Exhibit 31.2

CERTIFICATIONS

I, Michael Preston, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of AdvanSix Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2024


			/s/ Michael Preston
			Michael Preston
			Chief Financial Officer

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AdvanSix Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of her knowledge:

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 2, 2024


			/s/ Erin N. Kane
			Erin N. Kane
			President and Chief Executive Officer

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 2, 2024


			/s/ Michael Preston
			Michael Preston
			Chief Financial Officer

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2024	Jul. 26, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	1-37774
Entity Registrant Name	AdvanSix Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-2525089
Entity Address, Address Line One	300 Kimball Drive
Entity Address, Address Line Two	Suite 101
Entity Address, City or Town	Parsippany
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07054
City Area Code	973
Local Phone Number	526-1800
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	ASIX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,712,936
Amendment Flag	false
Entity Central Index Key	0001673985
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Sales	$ 453,479	$ 427,940	$ 790,308	$ 828,484
Costs, expenses and other:
Costs of goods sold	372,111	360,017	705,975	690,059
Selling, general and administrative expenses	24,431	24,011	48,024	49,126
Interest expense, net	3,514	1,954	6,213	3,221
Other non-operating (income) expense, net	1,351	(1,325)	1,441	(1,433)
Total costs, expenses and other	401,407	384,657	761,653	740,973
Income before taxes	52,072	43,283	28,655	87,511
Income tax expense	13,145	10,555	7,124	19,829
Net income	$ 38,927	$ 32,728	$ 21,531	$ 67,682
Earnings per common share
Basic (in dollars per share)	$ 1.45	$ 1.19	$ 0.80	$ 2.46
Diluted (in dollars per share)	$ 1.43	$ 1.16	$ 0.79	$ 2.39
Weighted average common shares outstanding
Basic (in shares)	26,839,429	27,494,555	26,859,044	27,547,874
Diluted (in shares)	27,150,347	28,113,402	27,251,326	28,348,266

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 38,927	$ 32,728	$ 21,531	$ 67,682
Foreign exchange translation adjustment	(27)	(125)	(42)	(158)
Cash-flow hedges	0	0	7	(150)
Other comprehensive loss, net of tax	(27)	(125)	(35)	(308)
Comprehensive income	$ 38,900	$ 32,603	$ 21,496	$ 67,374

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 12,105	$ 29,768
Accounts and other receivables – net	170,155	165,393
Inventories – net	175,827	211,831
Taxes receivable	179	1,434
Other current assets	20,326	11,378
Total current assets	378,592	419,804
Property, plant and equipment – net	878,491	852,642
Operating lease right-of-use assets	91,876	95,805
Goodwill	56,192	56,192
Intangible assets	44,668	46,193
Other assets	28,131	25,384
Total assets	1,477,950	1,496,020
Current liabilities:
Accounts payable	189,326	259,068
Accrued liabilities	50,223	44,086
Income taxes payable	1,007	8,033
Operating lease liabilities – short-term	31,250	32,053
Deferred income and customer advances	1,148	15,678
Total current liabilities	272,954	358,918
Deferred income taxes	151,803	151,059
Operating lease liabilities – long-term	60,783	63,961
Line of credit – long-term	230,000	170,000
Postretirement benefit obligations	5,919	3,660
Other liabilities	9,894	9,185
Total liabilities	731,353	756,783
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS' EQUITY
Common stock, par value $0.01; 200,000,000 shares authorized; 32,959,588 shares issued and 26,709,407 outstanding at June 30, 2024; 32,598,946 shares issued and 26,750,471 outstanding at December 31, 2023	330	326
Preferred stock, par value $0.01; 50,000,000 shares authorized and 0 shares issued and outstanding at June 30, 2024 and December 31, 2023	0	0
Treasury stock at par (6,250,181 shares at June 30, 2024; 5,848,475 shares at December 31, 2023)	(63)	(58)
Additional paid-in capital	132,786	138,046
Retained earnings	617,723	605,067
Accumulated other comprehensive loss	(4,179)	(4,144)
Total stockholders' equity	746,597	739,237
Total liabilities and stockholders' equity	$ 1,477,950	$ 1,496,020

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	32,959,588	32,598,946
Common stock, shares outstanding (in shares)	26,709,407	26,750,471
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Treasury stock (in shares)	6,250,181	5,848,475

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income	$ 21,531	$ 67,682
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	38,264	35,958
Loss on disposal of assets	261	568
Deferred income taxes	751	3,894
Stock-based compensation	4,404	4,449
Amortization of deferred financing fees	309	309
Operational asset adjustments	1,200	0
Changes in assets and liabilities, net of business acquisitions:
Accounts and other receivables	(6,004)	22,123
Inventories	36,004	(10,484)
Taxes receivable	1,255	8,329
Accounts payable	(61,681)	(45,878)
Income taxes payable	(7,026)	(1,338)
Accrued liabilities	6,149	(5,744)
Deferred income and customer advances	(14,530)	(32,097)
Other assets and liabilities	(6,889)	(11,192)
Net cash provided by operating activities	13,998	36,579
Cash flows from investing activities:
Expenditures for property, plant and equipment	(68,883)	(43,894)
Other investing activities	(3,736)	(2,034)
Net cash used for investing activities	(72,619)	(45,928)
Cash flows from financing activities:
Borrowings from line of credit	257,500	230,500
Payments of line of credit	(197,500)	(205,500)
Principal payments of finance leases	(502)	(456)
Dividend payments	(8,582)	(8,004)
Purchase of treasury stock	(10,385)	(28,385)
Issuance of common stock	427	745
Net cash provided by (used for) financing activities	40,958	(11,100)
Net change in cash and cash equivalents	(17,663)	(20,449)
Cash and cash equivalents at beginning of period	29,768	30,985
Cash and cash equivalents at the end of period	12,105	10,536
Supplemental non-cash investing activities:
Capital expenditures included in accounts payable	14,932	9,832
Supplemental cash activities:
Cash paid for interest	6,015	3,027
Cash paid for income taxes	$ 13,587	$ 7,024

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2022		31,977,593
Beginning balance at Dec. 31, 2022	$ 738,180	$ 320	$ 174,585	$ 567,517	$ (45)	$ (4,197)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	34,954			34,954
Comprehensive income
Foreign exchange translation adjustments	(33)					(33)
Cash-flow hedges	(150)					(150)
Other comprehensive loss, net of tax	(183)					(183)
Issuance of common stock (in shares)		555,249
Issuance of common stock	622	$ 5	617
Purchase of treasury stock	(13,499)		(13,496)		(3)
Stock-based compensation	2,013		2,013
Dividends	(4,020)		112	(4,132)
Ending balance (in shares) at Mar. 31, 2023		32,532,842
Ending balance at Mar. 31, 2023	758,067	$ 325	163,831	598,339	(48)	(4,380)
Beginning balance (in shares) at Dec. 31, 2022		31,977,593
Beginning balance at Dec. 31, 2022	738,180	$ 320	174,585	567,517	(45)	(4,197)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	67,682
Comprehensive income
Foreign exchange translation adjustments	(158)
Cash-flow hedges	(150)
Ending balance (in shares) at Jun. 30, 2023		32,577,862
Ending balance at Jun. 30, 2023	774,359	$ 326	151,706	626,885	(53)	(4,505)
Beginning balance (in shares) at Mar. 31, 2023		32,532,842
Beginning balance at Mar. 31, 2023	758,067	$ 325	163,831	598,339	(48)	(4,380)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	32,728			32,728
Comprehensive income
Foreign exchange translation adjustments	(125)					(125)
Cash-flow hedges	0
Other comprehensive loss, net of tax	(125)					(125)
Issuance of common stock (in shares)		45,020
Issuance of common stock	123	$ 1	122
Purchase of treasury stock	(14,886)		(14,881)		(5)
Stock-based compensation	2,436		2,436
Dividends	(3,984)		198	(4,182)
Ending balance (in shares) at Jun. 30, 2023		32,577,862
Ending balance at Jun. 30, 2023	$ 774,359	$ 326	151,706	626,885	(53)	(4,505)
Beginning balance (in shares) at Dec. 31, 2023	26,750,471	32,598,946
Beginning balance at Dec. 31, 2023	$ 739,237	$ 326	138,046	605,067	(58)	(4,144)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(17,396)			(17,396)
Comprehensive income
Foreign exchange translation adjustments	(15)					(15)
Cash-flow hedges	7					7
Other comprehensive loss, net of tax	(8)					(8)
Issuance of common stock (in shares)		323,989
Issuance of common stock	426	$ 3	423
Purchase of treasury stock	(7,023)		(7,020)		(3)
Stock-based compensation	2,211		2,211
Dividends	(4,290)		163	(4,453)
Ending balance (in shares) at Mar. 31, 2024		32,922,935
Ending balance at Mar. 31, 2024	$ 713,157	$ 329	133,823	583,218	(61)	(4,152)
Beginning balance (in shares) at Dec. 31, 2023	26,750,471	32,598,946
Beginning balance at Dec. 31, 2023	$ 739,237	$ 326	138,046	605,067	(58)	(4,144)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	21,531
Comprehensive income
Foreign exchange translation adjustments	(42)
Cash-flow hedges	$ 7
Ending balance (in shares) at Jun. 30, 2024	26,709,407	32,959,588
Ending balance at Jun. 30, 2024	$ 746,597	$ 330	132,786	617,723	(63)	(4,179)
Beginning balance (in shares) at Mar. 31, 2024		32,922,935
Beginning balance at Mar. 31, 2024	713,157	$ 329	133,823	583,218	(61)	(4,152)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	38,927			38,927
Comprehensive income
Foreign exchange translation adjustments	(27)					(27)
Cash-flow hedges	0
Other comprehensive loss, net of tax	(27)					(27)
Issuance of common stock (in shares)		36,653
Issuance of common stock	1	$ 1	0
Purchase of treasury stock	(3,362)		(3,360)		(2)
Stock-based compensation	2,193		2,193
Dividends	$ (4,292)		130	(4,422)
Ending balance (in shares) at Jun. 30, 2024	26,709,407	32,959,588
Ending balance at Jun. 30, 2024	$ 746,597	$ 330	$ 132,786	$ 617,723	$ (63)	$ (4,179)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares	3 Months Ended				74 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024
Statement of Stockholders' Equity [Abstract]
Stock repurchased during period (in shares)	141,242	260,464	410,862	333,054	6,250,181

Organization, Operations and Basis of Presentation

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Organization, Operations and Basis of Presentation

Description of Business

Basis of Presentation

Certain prior period amounts have been reclassified for consistency with the current period presentation.

The Company's Board of Directors (the "Board") has authorized share repurchase programs to repurchase shares of the Company's common stock as follows:


Date of Authorization	Authorized Amount (millions)		Authorized Amount Remaining as of June 30, 2024 (millions)
May 4, 2018	$	75.0	$	—
February 22, 2019	75.0		—
February 17, 2023	75.0		62.0
Totals	$	225.0	$	62.0

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Jun. 30, 2024
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recent Accounting Pronouncements – The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. On December 13, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require that public business entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that are equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate. The amendments also require that the Company disclose the following (net of refunds received): (1) the amount of income taxes paid disaggregated by federal (national), state, and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. Additionally, the amendments in this update eliminate the requirement for all entities to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or to make a statement that an estimate of the range cannot be made, and remove the requirement to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures. The guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption of the amendments in this update are permitted for annual financial statements that have not yet been issued. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). The amendments in this ASU require incremental disclosures about the Company's reportable segments, but do not change the definition of a segment or the guidance for determining reportable segments. The incremental disclosures should include (1) significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, (2) an amount for other segment items by reportable segment and a description of its composition, (3) profit or loss and assets currently required by Topic 280 in interim periods, (4) clarification if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources and (5) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The guidance is effective for public entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Additionally, public entities should apply the amendments retrospectively to all prior periods presented in the financial statements, unless impractical. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations.

Revenues

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenues

Revenue Recognition

The Company's revenue by product line, and related approximate percentage of total sales, for the three and six months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Nylon	$	103,217	23%	$	92,953	22%	$	187,606	24%	$	192,325	23%
Caprolactam	81,303		18%	74,682		18%	142,779		18%	147,073		18%
Ammonium Sulfate	139,674		31%	138,940		32%	224,936		28%	253,157		31%
Chemical Intermediates	129,285		28%	121,365		28%	234,987		30%	235,929		28%
Total	$	453,479	100%	$	427,940	100%	$	790,308	100%	$	828,484	100%

The Company's revenues by geographic area, and related approximate percentage of total sales, for the three and six months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024				2023
United States	$	401,859	89%	$	367,608	86%	$	686,447	87	%	$	688,534	83	%
International	51,620		11%	60,332		14%	103,861		13	%	139,950		17	%
Total	$	453,479	100%	$	427,940	100%	$	790,308	100	%	$	828,484	100	%

Deferred Income and Customer Advances

The Company defers revenues when cash payments are received in advance of our performance. Below is a roll-forward of Deferred income and customer advances for the six months ended June 30, 2024:



Opening balance January 1, 2024	$	15,678
Additional cash advances	393
Less amounts recognized in revenues	(14,923)
Ending balance June 30, 2024	$	1,148

The Company expects to recognize as revenue the June 30, 2024 ending balance of Deferred income and customer advances within one year or less.

Earnings Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Basic
Net income	$	38,927	$	32,728	$	21,531	$	67,682
Weighted average common shares outstanding	26,839,429		27,494,555		26,859,044		27,547,874
EPS – Basic	$	1.45	$	1.19	$	0.80	$	2.46
Diluted
Dilutive effect of equity awards and other stock-based holdings	310,918		618,847		392,282		800,392
Weighted average common shares outstanding	27,150,347		28,113,402		27,251,326		28,348,266
EPS – Diluted	$	1.43	$	1.16	$	0.79	$	2.39


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Options and stock equivalents	1,057,349	503,354	1,127,661	404,009

Dividend activity for the three and six months ended June 30, 2024 and 2023 was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cash dividends declared per share	$	0.16	$	0.145	$	0.32	$	0.29
Aggregate dividends paid to shareholders	$	4,292	$	3,984	$	8,582	$	8,004

Accounts and Other Receivables - Net

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Accounts and Other Receivables - Net

Accounts and Other Receivables – Net


	June 30, 2024		December 31, 2023
Accounts receivables	$	161,279	$	155,267
Other	9,554		10,959
Total accounts and other receivables	170,833		166,226
Less – allowance for doubtful accounts	(678)		(833)
Total accounts and other receivables – net	$	170,155	$	165,393

Inventories

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Inventories


	June 30, 2024		December 31, 2023
Raw materials	$	100,565	$	159,240
Work in progress	45,557		54,936
Finished goods	61,130		61,891
Spares and other	32,626		30,931
	239,878		306,998
Reduction to LIFO cost basis	(64,051)		(95,167)
Total inventories	$	175,827	$	211,831

The excess of replacement cost over the carrying value of total inventories subject to LIFO was $65.7 million and $65.3 million at June 30, 2024 and December 31, 2023, respectively.

Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

The components of lease expense were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Finance lease cost:
Amortization of right-of-use asset	$	264	$	216	$	508	$	438
Interest on lease liabilities	39		23		77		41
Total finance lease cost	303		239		585		479
Operating lease cost	10,797		11,592		22,483		22,841
Short-term lease cost	1,141		1,511		2,334		2,537

Total lease cost	$	12,241	$	13,342	$	25,402	$	25,857

Leases

The components of lease expense were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Finance lease cost:
Amortization of right-of-use asset	$	264	$	216	$	508	$	438
Interest on lease liabilities	39		23		77		41
Total finance lease cost	303		239		585		479
Operating lease cost	10,797		11,592		22,483		22,841
Short-term lease cost	1,141		1,511		2,334		2,537

Total lease cost	$	12,241	$	13,342	$	25,402	$	25,857

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

There was no change in the carrying amount of goodwill for the six months ended June 30, 2024.

Finite-Lived Intangible Assets

Intangible assets subject to amortization were as follows:


	June 30, 2024						December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	36,820	$	(4,713)	$	32,107	$	36,820	$	(3,760)	$	33,060
Licenses	18,451		(6,458)		11,993		18,451		(5,996)		12,455
Trade names	1,100		(532)		568		1,100		(422)		678
Total	$	56,371	$	(11,703)	$	44,668	$	56,371	$	(10,178)	$	46,193

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is subject to a number of lawsuits, investigations and disputes, some of which may involve substantial amounts claimed, arising out of the conduct of the Company or other third-parties in the normal and ordinary course of business. A liability is recognized for any contingency that is probable of occurrence and reasonably estimable. The Company continually assesses the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses, based on an analysis of each matter with the assistance of legal counsel and, if applicable, other experts. Given the uncertainty inherent in such lawsuits, investigations and disputes, the Company does not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters. Considering the Company’s past experience and existing accruals, the Company does not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on the Company’s consolidated financial position or results of operations. Potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause the Company to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Company’s consolidated results of operations, balance sheet and/or operating cash flows in the periods recognized or paid. We assumed from Honeywell International Inc. ("Honeywell") all health, safety and environmental (“HSE”) liabilities and compliance obligations related to the past and future operations of our current business as of the spin-off, as well as all HSE liabilities associated with the three manufacturing locations assumed from Honeywell that are used in our current operations, including any cleanup or other liabilities related to any contamination that may have occurred at such locations in the past. Honeywell retained all HSE liabilities related to former business locations or the operation of our former businesses. Although we have ongoing environmental remedial obligations at certain of our facilities, in the past three years, the associated remediation costs have not been material, and we do not expect our known remediation costs to have a material adverse effect on the Company's consolidated financial position or results of operations.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes was $13.1 million and $10.6 million for the three months ended June 30, 2024 and 2023, respectively, resulting in an effective tax rate of 25.2% and 24.4%, respectively. The provision for income taxes was $7.1 million and $19.8 million for the six months ended June 30, 2024 and 2023, respectively, resulting in an effective tax rate of 24.9% and 22.7%, respectively. The Company’s provision for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income before taxes for the period in addition to recording any tax effects of discrete items for the quarter. The Company’s effective tax rate for the three and six months ended June 30, 2024 was higher than the U.S. federal statutory rate, due to the impacts of state taxes and executive compensation deduction limitations which generally increase the tax rate, partially offset by tax credits which generally decrease the tax rate. The Company’s effective tax rate for the three and six months ended June 30, 2023 differed from the U.S. federal statutory rate, due to the impacts of state taxes and executive compensation deduction limitations which generally increase the tax rate, offset by tax credits and the foreign-derived intangible income deduction which generally decrease the tax rate. Additionally, discrete tax adjustments recorded in the first half of 2023 relating to the vesting of equity compensation and changes in state tax legislation resulted in a net 0.9% decrease to the year-to-date effective tax rate.

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Financial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The pension plan assets are invested in collective investment trust funds. These investments are measured at fair value using the net asset value per share as a practical expedient. Investments valued using the net asset value method (NAV) (or its equivalent) practical expedient are excluded from the fair value hierarchy disclosure. The Company’s Condensed Consolidated Balance Sheets also include Cash and cash equivalents, Accounts receivable and Accounts payable all of which are recorded at amounts which approximate fair value. The Company also has assets that are required to be recorded at fair value on a non-recurring basis. These assets are evaluated when certain triggering events occur (including a decrease in estimated future cash flows) that indicate the asset should be evaluated for impairment which could result in such assets being measured at fair value. Goodwill must be evaluated at least annually. Our annual evaluation occurred on October 28, 2023 and we concluded that an impairment for goodwill did not occur.

Supplier Finance Program	6 Months Ended
Supplier Finance Program	Jun. 30, 2024
Payables and Accruals [Abstract]
Supplier Finance Program	Supplier Finance Programs The Company has entered into a supply chain finance program with a financial intermediary providing participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. AdvanSix’s responsibility is limited to making payments to the intermediary based upon payment terms negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The Company’s payment terms with suppliers are consistent, regardless of whether a vendor participates in the supply chain finance program or not. All related agreements are terminable by either party upon at least 30 days’ notice. The total amount due to the financial intermediaries to settle supplier invoices under the supplier finance programs was approximately $14 million as of June 30, 2024 and approximately $17 million as of December 31, 2023. These amounts outstanding are included in Accounts payable

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events As announced on August 2, 2024, the Board declared a quarterly cash dividend of $0.16 per share on the Company's common stock, payable on August 27, 2024 to stockholders of record as of the close of business on August 13, 2024.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 38,927	$ (17,396)	$ 32,728	$ 34,954	$ 21,531	$ 67,682

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Recent Accounting Pronouncements (Policies)	6 Months Ended
Recent Accounting Pronouncements (Policies)	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of June 30, 2024, and its results of operations for the three and six months ended June 30, 2024 and 2023 and cash flows for the six months ended June 30, 2024 and 2023. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"). All intercompany transactions have been eliminated. Certain prior period amounts have been reclassified for consistency with the current period presentation. It is our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. Historically, the effects of this practice have generally not been significant to reported results for any quarter and only existed within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide the appropriate disclosures. Our actual closing dates for the three and six months ended June 30, 2024 and 2023 were June 29, 2024 and July 1, 2023, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements – The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. On December 13, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require that public business entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that are equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate. The amendments also require that the Company disclose the following (net of refunds received): (1) the amount of income taxes paid disaggregated by federal (national), state, and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. Additionally, the amendments in this update eliminate the requirement for all entities to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or to make a statement that an estimate of the range cannot be made, and remove the requirement to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures. The guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption of the amendments in this update are permitted for annual financial statements that have not yet been issued. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). The amendments in this ASU require incremental disclosures about the Company's reportable segments, but do not change the definition of a segment or the guidance for determining reportable segments. The incremental disclosures should include (1) significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, (2) an amount for other segment items by reportable segment and a description of its composition, (3) profit or loss and assets currently required by Topic 280 in interim periods, (4) clarification if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources and (5) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The guidance is effective for public entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Additionally, public entities should apply the amendments retrospectively to all prior periods presented in the financial statements, unless impractical. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations.

Organization, Operations and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of Authorized Share Repurchase Programs

The Company's Board of Directors (the "Board") has authorized share repurchase programs to repurchase shares of the Company's common stock as follows:


Date of Authorization	Authorized Amount (millions)		Authorized Amount Remaining as of June 30, 2024 (millions)
May 4, 2018	$	75.0	$	—
February 22, 2019	75.0		—
February 17, 2023	75.0		62.0
Totals	$	225.0	$	62.0

Revenues (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Summary of Disaggregation of Revenue

The Company's revenue by product line, and related approximate percentage of total sales, for the three and six months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Nylon	$	103,217	23%	$	92,953	22%	$	187,606	24%	$	192,325	23%
Caprolactam	81,303		18%	74,682		18%	142,779		18%	147,073		18%
Ammonium Sulfate	139,674		31%	138,940		32%	224,936		28%	253,157		31%
Chemical Intermediates	129,285		28%	121,365		28%	234,987		30%	235,929		28%
Total	$	453,479	100%	$	427,940	100%	$	790,308	100%	$	828,484	100%

The Company's revenues by geographic area, and related approximate percentage of total sales, for the three and six months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024				2023
United States	$	401,859	89%	$	367,608	86%	$	686,447	87	%	$	688,534	83	%
International	51,620		11%	60,332		14%	103,861		13	%	139,950		17	%
Total	$	453,479	100%	$	427,940	100%	$	790,308	100	%	$	828,484	100	%

Summary of Deferred Income and Customer Advances

Below is a roll-forward of Deferred income and customer advances for the six months ended June 30, 2024:



Opening balance January 1, 2024	$	15,678
Additional cash advances	393
Less amounts recognized in revenues	(14,923)
Ending balance June 30, 2024	$	1,148

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

The details of the basic and diluted EPS calculations for the three and six months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Basic
Net income	$	38,927	$	32,728	$	21,531	$	67,682
Weighted average common shares outstanding	26,839,429		27,494,555		26,859,044		27,547,874
EPS – Basic	$	1.45	$	1.19	$	0.80	$	2.46
Diluted
Dilutive effect of equity awards and other stock-based holdings	310,918		618,847		392,282		800,392
Weighted average common shares outstanding	27,150,347		28,113,402		27,251,326		28,348,266
EPS – Diluted	$	1.43	$	1.16	$	0.79	$	2.39

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The anti-dilutive common stock equivalents outstanding at the three and six months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Options and stock equivalents	1,057,349	503,354	1,127,661	404,009

Schedule of Dividends Declared

Dividend activity for the three and six months ended June 30, 2024 and 2023 was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cash dividends declared per share	$	0.16	$	0.145	$	0.32	$	0.29
Aggregate dividends paid to shareholders	$	4,292	$	3,984	$	8,582	$	8,004

Accounts and Other Receivables - Net (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Accounts and Other Receivables Net


	June 30, 2024		December 31, 2023
Accounts receivables	$	161,279	$	155,267
Other	9,554		10,959
Total accounts and other receivables	170,833		166,226
Less – allowance for doubtful accounts	(678)		(833)
Total accounts and other receivables – net	$	170,155	$	165,393

Inventories (Tables)

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Inventory, Current


	June 30, 2024		December 31, 2023
Raw materials	$	100,565	$	159,240
Work in progress	45,557		54,936
Finished goods	61,130		61,891
Spares and other	32,626		30,931
	239,878		306,998
Reduction to LIFO cost basis	(64,051)		(95,167)
Total inventories	$	175,827	$	211,831

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Finance lease cost:
Amortization of right-of-use asset	$	264	$	216	$	508	$	438
Interest on lease liabilities	39		23		77		41
Total finance lease cost	303		239		585		479
Operating lease cost	10,797		11,592		22,483		22,841
Short-term lease cost	1,141		1,511		2,334		2,537

Total lease cost	$	12,241	$	13,342	$	25,402	$	25,857

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Intangible assets subject to amortization were as follows:


	June 30, 2024						December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	36,820	$	(4,713)	$	32,107	$	36,820	$	(3,760)	$	33,060
Licenses	18,451		(6,458)		11,993		18,451		(5,996)		12,455
Trade names	1,100		(532)		568		1,100		(422)		678
Total	$	56,371	$	(11,703)	$	44,668	$	56,371	$	(10,178)	$	46,193

Organization, Operations and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended				74 Months Ended
	Jul. 26, 2024 $ / shares shares	Jun. 30, 2024 USD ($) manufacuringSite shares	Mar. 31, 2024 shares	Jun. 30, 2023 shares	Mar. 31, 2023 shares	Jun. 30, 2024 USD ($) manufacuringSite $ / shares shares	Dec. 31, 2023 USD ($)
Equity, Class of Treasury Stock [Line Items]
Number of manufacturing sites \| manufacuringSite		5				5
Checks outstanding \| $		$ 3.4				$ 3.4	$ 2.9
Stock repurchased during period (in shares)		141,242	260,464	410,862	333,054	6,250,181
Shares of common stock covering the tax withholding obligations (in shares)						1,004,725
Stock repurchased during period, value \| $						$ 192.4
Treasury stock acquired, weighted average cost per share (in dollars per share) \| $ / shares						$ 30.78
Authorized amount remaining \| $		$ 62.0				$ 62.0
Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Stock repurchased during period (in shares)	0
Shares of common stock covering the tax withholding obligations (in shares)	1,933
Treasury stock acquired, weighted average cost per share (in dollars per share) \| $ / shares	$ 21.64

Organization, Operations and Basis of Presentation - Schedule of Authorized Share Repurchase Programs (Details) $ in Millions	Jun. 30, 2024 USD ($)
Equity, Class of Treasury Stock [Line Items]
Authorized Amount	$ 225.0
Authorized amount remaining	62.0
May 2018 Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Authorized Amount	75.0
Authorized amount remaining	0.0
February 2019 Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Authorized Amount	75.0
Authorized amount remaining	0.0
February 2023 Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Authorized Amount	75.0
Authorized amount remaining	$ 62.0

Revenues - Narrative (Details)	3 Months Ended		6 Months Ended
Revenues - Narrative (Details)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024 customer country	Jun. 30, 2023
Concentration Risk [Line Items]
Number of customers \| customer			400
Number of countries in which customers are located (more than) \| country			45
Length of contract terms			We typically sell to customers under master service agreements, with primarily one-year terms, or by purchase orders.
10 Largest Customers \| Customer Concentration Risk \| Revenue from Contract with Customer
Concentration Risk [Line Items]
Concentration risk percentage	39.00%	40.00%	38.00%	38.00%
Shaw Industries Group Inc \| Customer Concentration Risk \| Revenue from Contract with Customer
Concentration Risk [Line Items]
Concentration risk percentage	9.00%	10.00%	9.00%	10.00%

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Sales	$ 453,479	$ 427,940	$ 790,308	$ 828,484
Revenue from Contract with Customer \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk percentage	100.00%	100.00%	100.00%	100.00%
Revenue from Contract with Customer \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk percentage	100.00%	100.00%	100.00%	100.00%
United States
Disaggregation of Revenue [Line Items]
Sales	$ 401,859	$ 367,608	$ 686,447	$ 688,534
United States \| Revenue from Contract with Customer \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk percentage	89.00%	86.00%	87.00%	83.00%
International
Disaggregation of Revenue [Line Items]
Sales	$ 51,620	$ 60,332	$ 103,861	$ 139,950
International \| Revenue from Contract with Customer \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk percentage	11.00%	14.00%	13.00%	17.00%
Nylon
Disaggregation of Revenue [Line Items]
Sales	$ 103,217	$ 92,953	$ 187,606	$ 192,325
Nylon \| Revenue from Contract with Customer \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk percentage	23.00%	22.00%	24.00%	23.00%
Caprolactam
Disaggregation of Revenue [Line Items]
Sales	$ 81,303	$ 74,682	$ 142,779	$ 147,073
Caprolactam \| Revenue from Contract with Customer \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk percentage	18.00%	18.00%	18.00%	18.00%
Ammonium Sulfate
Disaggregation of Revenue [Line Items]
Sales	$ 139,674	$ 138,940	$ 224,936	$ 253,157
Ammonium Sulfate \| Revenue from Contract with Customer \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk percentage	31.00%	32.00%	28.00%	31.00%
Chemical Intermediates
Disaggregation of Revenue [Line Items]
Sales	$ 129,285	$ 121,365	$ 234,987	$ 235,929
Chemical Intermediates \| Revenue from Contract with Customer \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk percentage	28.00%	28.00%	30.00%	28.00%

Revenues - Summary of Deferred Revenue and Customer Advances (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Change in Contract with Customer, Liability [Roll Forward]
Opening balance	$ 15,678
Additional cash advances	393
Less amounts recognized in revenues	(14,923)
Ending balance	$ 1,148

Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Basic
Net income	$ 38,927	$ (17,396)	$ 32,728	$ 34,954	$ 21,531	$ 67,682
Weighted average common shares outstanding (in shares)	26,839,429		27,494,555		26,859,044	27,547,874
EPS – Basic (in dollars per share)	$ 1.45		$ 1.19		$ 0.80	$ 2.46
Diluted
Dilutive effect of equity awards and other stock-based holdings (in shares)	310,918		618,847		392,282	800,392
Weighted average common shares outstanding (in shares)	27,150,347		28,113,402		27,251,326	28,348,266
EPS – Diluted (in dollars per share)	$ 1.43		$ 1.16		$ 0.79	$ 2.39

Earnings Per Share - Antidilutive Common Stock Equivalents (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Options and stock equivalents (in shares)	1,057,349	503,354	1,127,661	404,009

Earnings Per Share - Dividend Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Cash dividends declared per share (in dollars per share)	$ 0.16	$ 0.145	$ 0.32	$ 0.29
Aggregate dividends paid to shareholders	$ 4,292	$ 3,984	$ 8,582	$ 8,004

Accounts and Other Receivables - Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivables	$ 161,279	$ 155,267
Other	9,554	10,959
Total accounts and other receivables	170,833	166,226
Less – allowance for doubtful accounts	(678)	(833)
Total accounts and other receivables – net	$ 170,155	$ 165,393

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 100,565	$ 159,240
Work in progress	45,557	54,936
Finished goods	61,130	61,891
Spares and other	32,626	30,931
Inventory gross	239,878	306,998
Reduction to LIFO cost basis	(64,051)	(95,167)
Total inventories	$ 175,827	211,831
Percentage of FIFO inventory	11.00%
Excess of replacement or current costs over stated LIFO value	$ 65,700	$ 65,300

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Finance Lease Cost
Amortization of right-of-use asset	$ 264	$ 216	$ 508	$ 438
Interest on lease liabilities	39	23	77	41
Total finance lease cost	303	239	585	479
Operating lease cost	10,797	11,592	22,483	22,841
Short-term lease cost	1,141	1,511	2,334	2,537
Total lease cost	$ 12,241	$ 13,342	$ 25,402	$ 25,857

Leases - Narrative (Details) $ in Millions	Jun. 30, 2024 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	6 years
Operating Lease
Lessee, Lease, Description [Line Items]
Including lease not yet commenced	$ 99.2

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 800	$ 800	$ 1,500	$ 1,500
Customer relationships \| U.S. Amines, Ltd. \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life	15 years		15 years
Customer relationships \| U.S. Amines, Ltd. \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life	20 years		20 years
Trade names \| U.S. Amines, Ltd.
Finite-Lived Intangible Assets [Line Items]
Useful life	5 years		5 years

Goodwill and Intangible Assets - Schedule of Gross Carrying Value and Accumulated Amortization for Each Major Class of Intangible Asset (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 56,371	$ 56,371
Accumulated Amortization	(11,703)	(10,178)
Net Book Value	44,668	46,193
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	36,820	36,820
Accumulated Amortization	(4,713)	(3,760)
Net Book Value	32,107	33,060
Licenses
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	18,451	18,451
Accumulated Amortization	(6,458)	(5,996)
Net Book Value	11,993	12,455
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,100	1,100
Accumulated Amortization	(532)	(422)
Net Book Value	$ 568	$ 678

Commitments and Contingencies (Details)	6 Months Ended
Commitments and Contingencies (Details)	Jun. 30, 2024 location
Commitments and Contingencies Disclosure [Abstract]
Number of manufacturing locations	3

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 13,145	$ 10,555	$ 7,124	$ 19,829
Effective income tax rate	25.20%	24.40%	24.90%	22.70%
Discrete tax adjustment relating to changes in state tax legislation				0.90%

Fair Value Measurements (Details)	Oct. 28, 2023 USD ($)
Fair Value Disclosures [Abstract]
Impairment for goodwill	$ 0

Supplier Finance Program (Details) - USD ($) $ in Millions	6 Months Ended
Supplier Finance Program (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Period of termination	30 days
Supplier finance program	$ 14	$ 17
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration]	Accounts payable	Accounts payable

Subsequent Events (Details) - $ / shares		3 Months Ended		6 Months Ended
Subsequent Events (Details) - $ / shares	Aug. 02, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Subsequent Event [Line Items]
Cash dividends declared per share (in dollars per share)		$ 0.16	$ 0.145	$ 0.32	$ 0.29
Subsequent Event
Subsequent Event [Line Items]
Cash dividends declared per share (in dollars per share)	$ 0.16

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