(Mark One) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| ||
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip 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 | ||||||
Accelerated filer o | Non-accelerated filer o | Smaller reporting company | |||||||||
Emerging growth company |
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022 (unaudited) | ||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2023 and 2022 (unaudited) | ||||||||
Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022 (unaudited) | ||||||||
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 (unaudited) | ||||||||
Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2023 and 2022 (unaudited) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Sales | $ | $ | $ | $ | |||||||||||||||||||
Costs, expenses and other: | |||||||||||||||||||||||
Costs of goods sold | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Other non-operating (income) expense, net | ( | ( | ( | ( | |||||||||||||||||||
Total costs, expenses and other | |||||||||||||||||||||||
Income (loss) before taxes | ( | ||||||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | $ | ||||||||||||||||||
Earnings per common share | |||||||||||||||||||||||
Basic | $ | ( | $ | $ | $ | ||||||||||||||||||
Diluted | $ | ( | $ | $ | $ | ||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | $ | ||||||||||||||||||
Foreign exchange translation adjustment | ( | ( | |||||||||||||||||||||
Cash-flow hedges | ( | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||
Comprehensive income (loss) | $ | ( | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts and other receivables – net | |||||||||||
Inventories – net | |||||||||||
Taxes receivable | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment – net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Operating lease liabilities – short-term | |||||||||||
Deferred income and customer advances | |||||||||||
Total current liabilities | |||||||||||
Deferred income taxes | |||||||||||
Operating lease liabilities – long-term | |||||||||||
Line of credit – long-term | |||||||||||
Postretirement benefit obligations | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
COMMITMENTS AND CONTINGENCIES (Note 9) | |||||||||||
STOCKHOLDERS' EQUITY | |||||||||||
Common stock, par value $ | |||||||||||
Preferred stock, par value $ | |||||||||||
Treasury stock at par ( | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Loss on disposal of assets | |||||||||||
Deferred income taxes | |||||||||||
Stock-based compensation | |||||||||||
Amortization of deferred financing fees | |||||||||||
Operational asset adjustments | ( | ||||||||||
Changes in assets and liabilities, net of business acquisitions: | |||||||||||
Accounts and other receivables | |||||||||||
Inventories | ( | ||||||||||
Taxes receivable | ( | ||||||||||
Accounts payable | ( | ||||||||||
Accrued liabilities | ( | ( | |||||||||
Deferred income and customer advances | ( | ( | |||||||||
Other assets and liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Expenditures for property, plant and equipment | ( | ( | |||||||||
Acquisition of businesses | ( | ||||||||||
Other investing activities | ( | ( | |||||||||
Net cash used for investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings from line of credit | |||||||||||
Payments of line of credit | ( | ( | |||||||||
Principal payments of finance leases | ( | ( | |||||||||
Dividend payments | ( | ( | |||||||||
Purchase of treasury stock | ( | ( | |||||||||
Issuance of common stock | |||||||||||
Net cash (used for) provided by financing activities | ( | ||||||||||
Net change in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at the end of period | $ | $ | |||||||||
Supplemental non-cash investing activities: | |||||||||||
Capital expenditures included in accounts payable | $ | $ | |||||||||
Supplemental cash activities: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation adjustments | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Cash-flow hedges | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock ( | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation adjustments | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Cash-flow hedges | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock ( | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net Income (loss) | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Comprehensive income | — | ||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation adjustments | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash-flow hedges | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Purchase of treasury stock ( | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation adjustments | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash-flow hedges | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock ( | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation adjustments | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Cash-flow hedges | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock ( | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation adjustments | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Cash-flow hedges | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Pension obligation adjustments | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Purchase of treasury stock ( | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ |
Date of Authorization | Authorized Amount (millions) | Authorized Amount Remaining as of September 30, 2023 (millions) | ||||||||||||
May 4, 2018 | $ | $ | ||||||||||||
February 22, 2019 | ||||||||||||||
February 17, 2023 | ||||||||||||||
Totals | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Nylon | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Caprolactam | |||||||||||||||||||||||||||||||||||||||||||||||
Chemical Intermediates | |||||||||||||||||||||||||||||||||||||||||||||||
Ammonium Sulfate | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
United States | $ | $ | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||
International | % | % | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | % | $ | % |
Opening balance January 1, 2023 | $ | ||||
Additional cash advances | |||||
Less amounts recognized in revenues | ( | ||||
Ending balance September 30, 2023 | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Basic | |||||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | $ | ||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
EPS – Basic | $ | ( | $ | $ | $ | ||||||||||||||||||
Diluted | |||||||||||||||||||||||
Dilutive effect of equity awards and other stock-based holdings | |||||||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
EPS – Diluted | $ | ( | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Options and stock equivalents |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cash dividends declared per share | $ | $ | $ | $ | |||||||||||||||||||
Aggregate dividends paid to shareholders | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Accounts receivables | $ | $ | |||||||||
Other | |||||||||||
Total accounts and other receivables | |||||||||||
Less – allowance for doubtful accounts | ( | ( | |||||||||
Total accounts and other receivables – net | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in progress | |||||||||||
Finished goods | |||||||||||
Spares and other | |||||||||||
Reduction to LIFO cost basis | ( | ( | |||||||||
Total inventories | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of right-of-use asset | $ | $ | $ | $ | |||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||
Total finance lease cost | |||||||||||||||||||||||
Operating lease cost | |||||||||||||||||||||||
Short-term lease cost | |||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Licenses | ( | ( | |||||||||||||||||||||||||||||||||
Trade names | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ( | $ |
Asset (Liability) Derivatives | |||||||||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||||||||
Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||||||||
Derivatives designated as hedging instruments under ASC 815: | |||||||||||||||||
Interest Rate Contracts | Accounts and other receivables, net | $ | Accounts and other receivables, net | $ | |||||||||||||
Total Derivatives | $ | $ |
September 30, 2023 | ||||||||||||||
Gain on derivative instruments included in Accumulated other comprehensive loss at December 31, 2022 | $ | |||||||||||||
Fair value adjustment | ( | |||||||||||||
Gain (Loss) on derivative instruments included in Accumulated other comprehensive loss at September 30, 2023 | $ |
Amount of (Gain) Loss Recognized in Earnings | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||
Interest Rate Contracts | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Total Derivatives | $ | $ | ( | $ | $ | ( |
Date of Announcement | Date of Record | Date Payable | Dividend per Share | |||||||||||||||||
11/3/2023 | 11/14/2023 | 11/28/2023 | $0.160 | |||||||||||||||||
8/4/2023 | 8/15/2023 | 8/29/2023 | $0.160 | |||||||||||||||||
5/5/2023 | 5/16/2023 | 5/30/2023 | $0.145 | |||||||||||||||||
2/17/2023 | 3/3/2023 | 3/17/2023 | $0.145 | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Sales | $ | 322,907 | $ | 478,769 | $ | 1,151,391 | $ | 1,541,578 | |||||||||||||||
% change compared with prior year period | (32.6)% | (25.3)% |
Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | ||||||||||
Volume | (1.0)% | (3.6)% | |||||||||
Price | (31.6)% | (22.5)% | |||||||||
Acquisition | —% | 0.8% | |||||||||
(32.6)% | (25.3)% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Costs of goods sold | $ | 314,785 | $ | 443,646 | $ | 1,004,844 | $ | 1,296,128 | |||||||||||||||
% change compared with prior year period | (29.0)% | (22.5)% | |||||||||||||||||||||
Gross Margin percentage | 2.5% | 7.3% | 12.7% | 15.9% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Selling, general and administrative expenses | $ | 21,585 | $ | 23,069 | $ | 70,711 | $ | 65,120 | |||||||||||||||
Percentage of Sales | 6.7% | 4.8% | 6.1% | 4.2% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Income tax expense (benefit) | $ | (2,076) | $ | 2,730 | $ | 17,753 | $ | 41,876 | |||||||||||||||
Effective tax rate | 20.7% | 21.4% | 22.9% | 23.2% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income (loss) | $ | (7,977) | $ | 10,032 | $ | 59,705 | $ | 138,262 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net Income (loss) | $ | (7,977) | $ | 10,032 | $ | 59,705 | $ | 138,262 | |||||||||||||||
Non-cash stock-based compensation | 1,391 | 2,220 | 5,840 | 7,599 | |||||||||||||||||||
Non-recurring, unusual or extraordinary expenses (income) * | (4,472) | — | (4,472) | — | |||||||||||||||||||
Non-cash amortization from acquisitions | 532 | 532 | 1,596 | 1,284 | |||||||||||||||||||
Non-recurring M&A costs | — | — | — | 277 | |||||||||||||||||||
Expense (benefit) from income taxes relating to reconciling items | 776 | (466) | (157) | (1,461) | |||||||||||||||||||
Adjusted Net Income (loss) (non-GAAP) | (9,750) | 12,318 | 62,512 | 145,961 | |||||||||||||||||||
Interest expense, net | 2,075 | 686 | 5,296 | 2,017 | |||||||||||||||||||
Income tax expense (benefit) - Adjusted | (2,852) | 3,196 | 17,911 | 43,337 | |||||||||||||||||||
Depreciation and amortization - Adjusted | 17,848 | 17,113 | 52,741 | 50,586 | |||||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 7,321 | $ | 33,313 | 138,460 | 241,901 | |||||||||||||||||
Sales | $ | 322,907 | $ | 478,769 | $ | 1,151,391 | $ | 1,541,578 | |||||||||||||||
Adjusted EBITDA Margin** (non-GAAP) | 2.3% | 7.0% | 12.0% | 15.7% | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net Income (loss) | $ | (7,977) | $ | 10,032 | $ | 59,705 | $ | 138,262 | ||||||||||||||||||
Adjusted Net Income (loss) (non-GAAP) | (9,750) | 12,318 | 62,512 | 145,961 | ||||||||||||||||||||||
Weighted-average number of common shares outstanding - basic | 27,209,521 | 27,944,494 | 27,433,851 | 28,103,255 | ||||||||||||||||||||||
Dilutive effect of equity awards and other stock-based holdings | — | 945,164 | 759,870 | 1,070,282 | ||||||||||||||||||||||
Weighted-average number of common shares outstanding - diluted | 27,209,521 | 28,889,658 | 28,193,721 | 29,173,537 | ||||||||||||||||||||||
EPS - Basic | $ | (0.29) | $ | 0.36 | $ | 2.18 | $ | 4.92 | ||||||||||||||||||
EPS - Diluted | $ | (0.29) | $ | 0.35 | $ | 2.12 | $ | 4.74 | ||||||||||||||||||
Adjusted EPS - Basic (non-GAAP) | $ | (0.36) | $ | 0.44 | $ | 2.28 | $ | 5.19 | ||||||||||||||||||
Adjusted EPS - Diluted (non-GAAP) | $ | (0.36) | $ | 0.43 | $ | 2.22 | $ | 5.00 |
Date of Authorization | Authorized Amount (millions) | Authorized Amount Remaining as of September 30, 2023 (millions) | ||||||||||||
May 4, 2018 | $ | 75.0 | $ | — | ||||||||||
February 22, 2019 | 75.0 | 1.6 | ||||||||||||
February 17, 2023 | 75.0 | 75.0 | ||||||||||||
Totals | $ | 225.0 | $ | 76.6 |
Date of Announcement | Date of Record | Date Payable | Dividend per Share | Total Approximate Dividend Amount ($M) | ||||||||||||||||||||||
11/3/2023 | 11/14/2023 | 11/28/2023 | $0.160 | $ | 4.3 | |||||||||||||||||||||
8/4/2023 | 8/15/2023 | 8/29/2023 | $0.160 | $ | 4.4 | |||||||||||||||||||||
5/5/2023 | 5/16/2023 | 5/30/2023 | $0.145 | $ | 4.0 | |||||||||||||||||||||
2/17/2023 | 3/3/2023 | 3/17/2023 | $0.145 | $ | 4.0 | |||||||||||||||||||||
11/4/2022 | 11/15/2022 | 11/29/2022 | $0.145 | $ | 4.0 | |||||||||||||||||||||
8/5/2022 | 8/16/2022 | 8/30/2022 | $0.145 | $ | 4.1 | |||||||||||||||||||||
5/6/2022 | 5/17/2022 | 5/31/2022 | $0.125 | $ | 3.5 | |||||||||||||||||||||
2/18/2022 | 3/1/2022 | 3/15/2022 | $0.125 | $ | 3.5 | |||||||||||||||||||||
9/28/2021 | 11/9/2021 | 11/23/2021 | $0.125 | $ | 3.5 |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash provided by (used for): | |||||||||||
Operating activities | $ | 57,381 | $ | 203,987 | |||||||
Investing activities | (71,429) | (160,053) | |||||||||
Financing activities | 5,173 | (34,340) | |||||||||
Net change in cash and cash equivalents | $ | (8,875) | $ | 9,594 |
Nine Months Ended September 30, 2023 | |||||
Capital expenditures in Accounts payable at December 31, 2022 | $ | 14,879 | |||
Purchases of property, plant and equipment | 75,334 | ||||
Less: Capital expenditures in Accounts payable at September 30, 2023 | (21,188) | ||||
Cash paid for capital expenditures | $ | 69,025 |
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 | ||||||||||||||||||||||
July 2023 | 97,215 | $ | 36.54 | 97,215 | $ | 82,074,017 | ||||||||||||||||||||
August 2023 | (1) | 77,483 | 35.34 | 72,408 | 79,503,677 | |||||||||||||||||||||
September 2023 | 92,261 | 31.26 | 92,261 | 76,619,954 | ||||||||||||||||||||||
Total | 266,959 | $ | 34.37 | 261,884 |
Exhibit | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
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) | |||||||
ADVANSIX INC. | |||||||||||
Date: November 3, 2023 | By: | /s/ Michael Preston | |||||||||
Michael Preston | |||||||||||
Senior Vice President and Chief Financial Officer |
/s/ Erin N. Kane | ||||||||
Erin N. Kane | ||||||||
President and Chief Executive Officer |
/s/ Michael Preston | ||||||||
Michael Preston | ||||||||
Chief Financial Officer |
/s/ Erin N. Kane | |||||
Erin N. Kane | |||||
President and Chief Executive Officer |
/s/ Michael Preston | |||||
Michael Preston | |||||
Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Statement [Abstract] | ||||
Sales | $ 322,907 | $ 478,769 | $ 1,151,391 | $ 1,541,578 |
Costs, expenses and other: | ||||
Costs of goods sold | 314,785 | 443,646 | 1,004,844 | 1,296,128 |
Selling, general and administrative expenses | 21,585 | 23,069 | 70,711 | 65,120 |
Interest expense, net | 2,075 | 686 | 5,296 | 2,017 |
Other non-operating (income) expense, net | (5,485) | (1,394) | (6,918) | (1,825) |
Total costs, expenses and other | 332,960 | 466,007 | 1,073,933 | 1,361,440 |
Income (loss) before taxes | (10,053) | 12,762 | 77,458 | 180,138 |
Income tax expense (benefit) | (2,076) | 2,730 | 17,753 | 41,876 |
Net income (loss) | $ (7,977) | $ 10,032 | $ 59,705 | $ 138,262 |
Earnings per common share | ||||
Basic (in dollars per share) | $ (0.29) | $ 0.36 | $ 2.18 | $ 4.92 |
Diluted (in dollars per share) | $ (0.29) | $ 0.35 | $ 2.12 | $ 4.74 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 27,209,521 | 27,944,494 | 27,433,851 | 28,103,255 |
Diluted (in shares) | 27,209,521 | 28,889,658 | 28,193,721 | 29,173,537 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (7,977) | $ 10,032 | $ 59,705 | $ 138,262 |
Foreign exchange translation adjustment | 197 | (32) | 39 | (10) |
Cash-flow hedges | 0 | 57 | (150) | 864 |
Other comprehensive income (loss), net of tax | 197 | 25 | (111) | 854 |
Comprehensive income (loss) | $ (7,780) | $ 10,057 | $ 59,594 | $ 139,116 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
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) | 32,597,015 | 31,977,593 |
Common stock, shares outstanding (in shares) | 27,055,067 | 27,446,520 |
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) | 5,541,948 | 4,531,073 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares |
3 Months Ended | 65 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
|
Statement of Stockholders' Equity [Abstract] | |||||||
Stock repurchased during period (in shares) | 266,959 | 410,862 | 333,054 | 362,609 | 87,251 | 181,536 | 5,541,948 |
Organization, Operations and Basis of Presentation |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Operations and Basis of Presentation | 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, chemical intermediates and plant nutrients, 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 September 30, 2023, and its results of operations for the three and nine months ended September 30, 2023 and 2022 and cash flows for the nine months ended September 30, 2023 and 2022. 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, 2022 (the "2022 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 nine months ended September 30, 2023 and 2022 were September 30, 2023 and October 1, 2022, respectively. Liabilities to creditors to whom we have issued checks that remained outstanding at September 30, 2023 and December 31, 2022 aggregated to $5.0 million and $9.0 million, respectively, and were included in Cash and cash equivalents and Accounts payable in the Condensed Consolidated Balance Sheets. The Company was party to three transactions during the third quarter of 2023: (i) exit from its alliance with Oben Holding Group S.A. resulting in a pre-tax gain of approximately $11.4 million, (ii) notification from a licensee of certain legacy ammonium sulfate technology assets operated at the licensee’s fertilizer manufacturing facility, that it intends to close its facility no later than August 2024, resulting in a non-cash, pre-tax charge of approximately $4.5 million and (iii) a strategic decision to exit production of certain low-margin oximes products resulting in a non-cash, pre-tax charge of approximately $2.4 million. Each of these transactions, totaling a net pre-tax gain of approximately $4.5 million, was recorded during the third quarter of 2023 and included as a component of Other non-operating (income) expense, net on the Condensed Consolidated Statements of Operations and a non-cash transaction on the Condensed Consolidated Statements of Cash Flows. The Company's Board of Directors (the "Board") has authorized share repurchase programs to repurchase shares of the Company's common stock as follows:
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, 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 September 30, 2023, the Company has repurchased a total of 5,541,948 shares of common stock, including 854,340 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $173.6 million at a weighted average market price of $31.33 per share. As of September 30, 2023, $76.6 million remained available for share repurchases under the current authorization. During the period October 1, 2023 through October 27, 2023, the Company repurchased an additional 101,387 shares at a weighted average market price of $29.07 per share primarily under the current authorized repurchase program.
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Recent Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2023 | |
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. In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The amendments in this ASU require that a buyer in a supplier finance program disclose sufficient quantitative and qualitative information about its supplier finance programs to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. On a retrospective basis, for each annual reporting period, an entity should disclose the key terms of the program, including a description of the payment terms, assets pledged as security or other forms of guarantees, the confirmed amount outstanding that remains unpaid, a description of where the obligations are presented in the balance sheet and a roll-forward of those obligations confirmed as well as the amount of obligations subsequently paid. In each interim reporting period, an entity should disclose the amount of confirmed obligations outstanding. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption of the amendments in this update is permitted. The Company adopted ASU 2022-04, effective January 1, 2023, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption.
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Revenues |
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Revenues | Revenues Revenue Recognition We serve approximately 400 customers annually in approximately 40 countries across a wide variety of industries. For the three months ended September 30, 2023 and 2022, the Company's ten largest customers accounted for approximately 41% and 43% of total sales, respectively. For the nine months ended September 30, 2023 and 2022, the Company's ten largest customers accounted for approximately 39% and 39% of total sales, respectively. 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 September 30, 2023 and 2022, the Company's sales to Shaw were 12% and 16% of our total sales, respectively. For the nine months ended September 30, 2023 and 2022, the Company's sales to Shaw were 11% and 12% of our total sales, respectively. The Company's revenue by product line, and related approximate percentage of total sales, for the three and nine months ended September 30, 2023 and 2022 were as follows:
The Company's revenues by geographic area, and related approximate percentage of total sales, for the three and nine months ended September 30, 2023 and 2022 were as follows:
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 nine months ended September 30, 2023:
The Company expects to recognize as revenue the September 30, 2023 ending balance of Deferred income and customer advances within one year or less.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The computation of basic and diluted earnings per share ("EPS") is based on Net income (loss) 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 nine months ended September 30, 2023 and 2022 were as follows:
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 nine months ended September 30, 2023 and 2022 were as follows:
Dividend activity for the three and nine months ended September 30, 2023 and 2022 was as follows:
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Accounts and Other Receivables - Net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts and Other Receivables - Net | Accounts and Other Receivables – Net
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Inventories |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories
Substantially all of the Company’s inventories at September 30, 2023 and December 31, 2022 are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method. However, approximately 9% was valued at average cost using the first-in, first-out (“FIFO”) method at September 30, 2023. The excess of replacement cost over the carrying value of total inventories subject to LIFO was $61.4 million and $58.2 million at September 30, 2023 and December 31, 2022, respectively.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | 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:
As of September 30, 2023, we have additional operating leases that have not yet commenced for approximately $1.4 million. These leases will commence during December 2023 and January 2024 with lease terms of up to 7 years.
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Leases | 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:
As of September 30, 2023, we have additional operating leases that have not yet commenced for approximately $1.4 million. These leases will commence during December 2023 and January 2024 with lease terms of up to 7 years.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | 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 nine months ended September 30, 2023. Finite-Lived Intangible Assets Intangible assets subject to amortization were as follows:
For each of the three months ended September 30, 2023 and September 30, 2022, the Company recorded amortization expense on intangible assets of $0.8 million. For the nine months ended September 30, 2023 and September 30, 2022, the Company recorded amortization expense on intangible assets of $2.3 million and $2.0 million, respectively.
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2023 | |
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.
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Income Taxes |
9 Months Ended |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The (benefit) provision for income taxes was ($2.1 million) and $2.7 million for the three months ended September 30, 2023 and 2022, respectively, resulting in an effective tax rate of 20.7% and 21.4%, respectively. The provision for income taxes was $17.8 million and $41.9 million for the nine months ended September 30, 2023 and 2022, respectively, resulting in an effective tax rate of 22.9% and 23.2%, 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 nine months ended September 30, 2023 and 2022 differed from the U.S. federal statutory rate, due to the impacts of state taxes and executive compensation deduction limitations, offset by tax credits and the foreign-derived intangible income deduction. Additionally for 2023, discrete tax adjustments relating to the vesting of equity compensation, changes in state tax legislation and return to provision adjustments related to the filing of the Company's 2022 U.S. federal income tax return resulted in a net 4.4% increase to the quarterly effective tax rate and a net 1.6% decrease to the year-to-date effective tax rate. On August 16, 2022, the Inflation Reduction Act of 2022 (the "IRA") was signed into law. This legislation includes significant changes relating to tax, climate change, energy and health care. Among other provisions, the IRA introduces a corporate alternative minimum tax (CAMT) on adjusted financial statement income of certain large corporations and a 1% excise tax on share repurchases. The Company is not currently subject to the CAMT which became effective for tax years beginning after December 31, 2022. The 1% excise tax is generally applicable to publicly traded corporations for the net value of certain stock that the corporation repurchases during the year and is also effective for tax years beginning after December 31, 2022. The impact of any excise tax imposed on the Company for share repurchases is generally accounted for as an equity transaction with no consequences to the Company's results in operations, and this provision of the law is not expected to have a material impact on the Company's financial condition. The IRA also includes significant extensions, expansions and enhancements related to climate and energy tax credits designed to encourage investment in the adoption and expansion of renewable and alternative energy sources. The Company continues to evaluate these energy credit provisions of the law in relation to our sustainability and environmental, social and governance initiatives.
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Fair Value Measurements |
9 Months Ended |
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Sep. 30, 2023 | |
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. In July 2019, the Company entered into an interest rate swap transaction related to its credit agreement. The interest rate swap, considered a Level 2 liability, expired February 21, 2023. 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 March 31, 2023 and we concluded that an impairment for goodwill did not occur.
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Derivative and Hedging Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative and Hedging Instruments | Derivative and Hedging Instruments The specific credit and market, commodity price and interest rate risks to which the Company is exposed in connection with its ongoing business operations are described below. This discussion includes an explanation of any hedging instrument and interest rate swap agreement, used to manage the Company’s interest rate risk associated with a fixed and floating-rate borrowing. For cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in Other comprehensive income. Those amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. Credit and Market Risk – Financial instruments, including derivatives, expose the Company to counterparty credit risk for non-performance and to market risk related to changes in commodity prices, interest rates and foreign currency exchange rates. The Company manages its exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. The Company’s counterparties in derivative transactions are substantial investment and commercial banks with significant experience using such derivative instruments. The Company monitors the impact of market risk on the fair value and cash flows of its derivative and other financial instruments considering reasonably possible changes in commodity prices, interest rates and foreign currency exchange rates and restricts the use of derivative financial instruments to hedging activities. The Company continually monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. The terms and conditions of credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. The Company did not have any customers with significant concentrations of trade accounts receivable – net at September 30, 2023 or December 31, 2022. Allowance for doubtful accounts is calculated based upon the Company's estimate of expected credit losses over the life of exposure based upon both historical information as well as future expected losses. Commodity Price Risk Management – The Company's exposure to market risk for commodity prices can result in changes in the cost of production. We primarily mitigate our exposure to commodity price risk by using long-term, formula-based price contracts with our suppliers and formula-based price agreements with customers. Our customer agreements provide for price adjustments based on relevant market indices and raw material prices and generally do not include take-or-pay terms. We may also enter into forward commodity contracts with third-parties designated as hedges of anticipated purchases of several commodities. Forward commodity contracts are marked-to-market, with the resulting gains and losses recognized in earnings, in the same category as the items being hedged, when the hedged transaction is recognized. At September 30, 2023 and 2022, we had no financial contracts related to forward commodity agreements. Interest Rate Risk Management – The Company had entered into one interest rate swap agreement for a total notional amount of $50 million to exchange floating for fixed rate interest payments for our LIBOR-based borrowings. The interest rate swap had a fair value of zero at inception and was effective July 31, 2019 and matured on February 21, 2023. In accordance with ASC 815, the Company designated the interest rate swap as a cash flow hedge of floating-rate borrowings. The interest rate swap converted the Company’s interest rate payments on the first $50 million of variable-rate, 1-month LIBOR-based debt to a fixed interest rate. The interest rate swap involved the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the interest rate swap without an exchange of the underlying principal amount.
The following table summarizes adjustments related to cash flow hedge included in Cash-flow hedges, in the Condensed Consolidated Statements of Comprehensive Income:
At September 30, 2023, the Company expects no reclassifications of net gains or losses on derivative instruments from Accumulated other comprehensive income ("AOCI") to earnings during the next 12 months as the interest rate swap agreement matured on February 21, 2023. The following table summarizes the reclassification of net (gains) losses on derivative instruments from AOCI into earnings:
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Acquisitions |
9 Months Ended |
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Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions In February 2022, the Company acquired the stock of U.S. Amines, a leading North American producer of alkyl and specialty amines serving high-value end markets such as agrochemicals and pharmaceuticals for a purchase price of approximately $97.5 million, net of cash acquired. In January 2021, the Company acquired certain assets associated with ammonium sulfate packaging, warehousing and logistics services in Virginia from Commonwealth Industrial Services, Inc. ("CIS") for approximately $9.5 million.
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Supplier Finance Program |
9 Months Ended |
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Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | Supplier Finance ProgramsThe 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 $17 million as of September 30, 2023 and December 31, 2022. These amounts outstanding are included in Accounts payable |
Subsequent Events |
9 Months Ended |
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Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsAs announced on November 3, 2023, the Board declared a quarterly cash dividend of $0.160 per share on the Company's common stock, payable on November 28, 2023 to stockholders of record as of the close of business on November 14, 2023. |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
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Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Pay vs Performance Disclosure | ||||||||
Net income | $ (7,977) | $ 32,728 | $ 34,954 | $ 10,032 | $ 65,157 | $ 63,073 | $ 59,705 | $ 138,262 |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
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) |
9 Months Ended |
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Sep. 30, 2023 | |
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 September 30, 2023, and its results of operations for the three and nine months ended September 30, 2023 and 2022 and cash flows for the nine months ended September 30, 2023 and 2022. 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, 2022 (the "2022 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 nine months ended September 30, 2023 and 2022 were September 30, 2023 and October 1, 2022, respectively.
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New 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. In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The amendments in this ASU require that a buyer in a supplier finance program disclose sufficient quantitative and qualitative information about its supplier finance programs to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. On a retrospective basis, for each annual reporting period, an entity should disclose the key terms of the program, including a description of the payment terms, assets pledged as security or other forms of guarantees, the confirmed amount outstanding that remains unpaid, a description of where the obligations are presented in the balance sheet and a roll-forward of those obligations confirmed as well as the amount of obligations subsequently paid. In each interim reporting period, an entity should disclose the amount of confirmed obligations outstanding. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption of the amendments in this update is permitted. The Company adopted ASU 2022-04, effective January 1, 2023, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption.
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Organization, Operations and Basis of Presentation (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Revenues (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The Company's revenue by product line, and related approximate percentage of total sales, for the three and nine months ended September 30, 2023 and 2022 were as follows:
The Company's revenues by geographic area, and related approximate percentage of total sales, for the three and nine months ended September 30, 2023 and 2022 were as follows:
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Summary of Deferred Income and Customer Advances | Below is a roll-forward of Deferred income and customer advances for the nine months ended September 30, 2023:
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Earnings Per Share (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The details of the basic and diluted EPS calculations for the three and nine months ended September 30, 2023 and 2022 were as follows:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The anti-dilutive common stock equivalents outstanding at the three and nine months ended September 30, 2023 and 2022 were as follows:
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Schedule of Dividends Declared | Dividend activity for the three and nine months ended September 30, 2023 and 2022 was as follows:
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Accounts and Other Receivables - Net (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts and Other Receivables Net |
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Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current |
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Leases (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Expense | The components of lease expense were as follows:
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Intangible assets subject to amortization were as follows:
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Derivative and Hedging Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
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Derivative Instruments, Gain (Loss) | The following table summarizes adjustments related to cash flow hedge included in Cash-flow hedges, in the Condensed Consolidated Statements of Comprehensive Income:
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Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the reclassification of net (gains) losses on derivative instruments from AOCI into earnings:
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Organization, Operations and Basis of Presentation - Schedule of Authorized Share Repurchase Programs (Details) $ in Millions |
Sep. 30, 2023
USD ($)
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Equity, Class of Treasury Stock [Line Items] | |
Authorized Amount | $ 225.0 |
Authorized Amount Remaining | 76.6 |
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 | 1.6 |
February 2023 Repurchase Program | |
Equity, Class of Treasury Stock [Line Items] | |
Authorized Amount | 75.0 |
Authorized Amount Remaining | $ 75.0 |
Revenues - Narrative (Details) |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023
customer
country
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Sep. 30, 2022 |
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Concentration Risk [Line Items] | ||||
Number of customers | customer | 400 | |||
Number of countries in which customers are located (more than) | country | 40 | |||
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 | 41.00% | 43.00% | 39.00% | 39.00% |
Shaw Industries Group Inc | Customer Concentration Risk | Revenue from Contract with Customer | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 12.00% | 16.00% | 11.00% | 12.00% |
Revenues - Summary of Deferred Revenue and Customer Advances (Details) $ in Thousands |
9 Months Ended |
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Sep. 30, 2023
USD ($)
| |
Change in Contract with Customer, Liability [Roll Forward] | |
Opening balance | $ 34,430 |
Additional cash advances | 7,307 |
Less amounts recognized in revenues | (39,322) |
Ending balance | $ 2,415 |
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
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Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Basic | ||||||||
Net income (loss) | $ (7,977) | $ 32,728 | $ 34,954 | $ 10,032 | $ 65,157 | $ 63,073 | $ 59,705 | $ 138,262 |
Weighted average common shares outstanding (in shares) | 27,209,521 | 27,944,494 | 27,433,851 | 28,103,255 | ||||
EPS – Basic (in dollars per share) | $ (0.29) | $ 0.36 | $ 2.18 | $ 4.92 | ||||
Diluted | ||||||||
Dilutive effect of equity awards and other stock-based holdings (in shares) | 0 | 945,164 | 759,870 | 1,070,282 | ||||
Weighted average common shares outstanding (in shares) | 27,209,521 | 28,889,658 | 28,193,721 | 29,173,537 | ||||
EPS – Diluted (in dollars per share) | $ (0.29) | $ 0.35 | $ 2.12 | $ 4.74 |
Earnings Per Share - Antidilutive Common Stock Equivalents (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share [Abstract] | ||||
Options and stock equivalents (in shares) | 498,652 | 227,144 | 447,950 | 156,418 |
Earnings Per Share - Dividend Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share [Abstract] | ||||
Cash dividends declared per share (in dollars per share) | $ 0.16 | $ 0.145 | $ 0.465 | $ 0.395 |
Aggregate dividends paid to shareholders | $ 4,349 | $ 4,051 | $ 12,354 | $ 11,083 |
Accounts and Other Receivables - Net (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivables | $ 134,664 | $ 171,923 |
Other | 10,987 | 4,100 |
Total accounts and other receivables | 145,651 | 176,023 |
Less – allowance for doubtful accounts | (978) | (594) |
Total accounts and other receivables – net | $ 144,673 | $ 175,429 |
Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 133,103 | $ 126,060 |
Work in progress | 64,368 | 64,669 |
Finished goods | 97,310 | 60,711 |
Spares and other | 30,730 | 28,892 |
Inventory gross | 325,511 | 280,332 |
Reduction to LIFO cost basis | (96,312) | (64,830) |
Total inventories | $ 229,199 | 215,502 |
Percentage of FIFO inventory | 9.00% | |
Excess of replacement or current costs over stated LIFO value | $ 61,400 | $ 58,200 |
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Finance Lease Cost | ||||
Amortization of right-of-use asset | $ 237 | $ 229 | $ 675 | $ 703 |
Interest on lease liabilities | 28 | 15 | 69 | 37 |
Total finance lease cost | 265 | 244 | 744 | 740 |
Operating lease cost | 12,032 | 11,711 | 34,873 | 32,321 |
Short-term lease cost | 1,572 | 1,541 | 4,109 | 4,091 |
Total lease cost | $ 13,869 | $ 13,496 | $ 39,726 | $ 37,152 |
Leases - Narrative (Details) $ in Millions |
Sep. 30, 2023
USD ($)
|
---|---|
Lessee, Lease, Description [Line Items] | |
Operating lease that have not yet commenced | $ 1.4 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 7 years |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 0.8 | $ 0.8 | $ 2.3 | $ 2.0 |
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 |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 56,371 | $ 56,371 |
Accumulated Amortization | (9,416) | (7,129) |
Net Book Value | 46,955 | 49,242 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,820 | 36,820 |
Accumulated Amortization | (3,283) | (1,854) |
Net Book Value | 33,537 | 34,966 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 18,451 | 18,451 |
Accumulated Amortization | (5,766) | (5,074) |
Net Book Value | 12,685 | 13,377 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,100 | 1,100 |
Accumulated Amortization | (367) | (201) |
Net Book Value | $ 733 | $ 899 |
Commitments and Contingencies (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
location
| |
Commitments and Contingencies Disclosure [Abstract] | |
Number of manufacturing locations | 3 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
(Benefit) provision for income taxes | $ (2,076) | $ 2,730 | $ 17,753 | $ 41,876 |
Effective income tax rate | 20.70% | 21.40% | 22.90% | 23.20% |
Discrete tax adjustment relating to vesting of equity compensation, percent | 4.40% | |||
Discrete tax adjustment relating to changes in state tax legislation | 1.60% |
Fair Value Measurements (Details) |
Mar. 31, 2023
USD ($)
|
---|---|
Fair Value Disclosures [Abstract] | |
Impairment for goodwill | $ 0 |
Derivative and Hedging Instruments - Narrative (Details) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2023
USD ($)
derivative_instrument
|
Jul. 31, 2019
USD ($)
|
Nov. 30, 2018
USD ($)
|
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gain reclassification from AOCI to income | $ 0 | ||
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of instruments held | derivative_instrument | 1 | ||
Derivative, notional amount | $ 50,000,000 | ||
Derivative liability, fair value | $ 0 | $ 0 |
Derivative and Hedging Instruments - Balance Sheet Classification (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative [Line Items] | ||
Asset Derivatives, Fair Value | $ 0 | |
Derivative liability, fair value | $ 197 | |
Interest Rate Contracts | ||
Derivative [Line Items] | ||
Asset Derivatives, Fair Value | $ 0 | |
Derivative liability, fair value | $ 197 |
Derivative and Hedging Instruments - Adjustments Related to Cash Flow Hedges on the Comprehensive Income Statement (Details) - Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
AOCI Attributable To Parent, Before Tax [Roll Forward] | |
Gain on derivative instruments included in Accumulated other comprehensive loss at December 31, 2022 | $ 197 |
Fair value adjustment | (197) |
Gain (Loss) on derivative instruments included in Accumulated other comprehensive loss at September 30, 2023 | $ 0 |
Derivative and Hedging Instruments - Amount of Loss Recognized in Earning (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Total Derivatives | $ (7,977) | $ 32,728 | $ 34,954 | $ 10,032 | $ 65,157 | $ 63,073 | $ 59,705 | $ 138,262 |
Amount of (Gain) Loss Recognized in Earnings | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Total Derivatives | 0 | (256) | 0 | (375) | ||||
Amount of (Gain) Loss Recognized in Earnings | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Interest Rate Contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Total Derivatives | $ 0 | $ (256) | $ 0 | $ (375) |
Acquisitions - Business Combination (Details) - USD ($) $ in Thousands |
1 Months Ended | 9 Months Ended | |
---|---|---|---|
Feb. 28, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Business Acquisition [Line Items] | |||
Acquisition of businesses | $ 0 | $ 97,456 | |
U.S. Amines, Ltd. | |||
Business Acquisition [Line Items] | |||
Acquisition of businesses | $ 97,500 |
Acquisitions - Asset Acquisition (Details) $ in Millions |
1 Months Ended |
---|---|
Jan. 31, 2021
USD ($)
| |
Commonwealth Industrial Services, Inc. | |
Asset Acquisition [Line Items] | |
Consideration transferred | $ 9.5 |
Supplier Finance Program (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Payables and Accruals [Abstract] | ||
Amount due to financial intermediaries | $ 17 | $ 17 |
Period of termination | 30 days |
Subsequent Events (Details) - $ / shares |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Nov. 03, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Subsequent Event [Line Items] | |||||
Cash dividends declared per share (in dollars per share) | $ 0.16 | $ 0.145 | $ 0.465 | $ 0.395 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividends declared per share (in dollars per share) | $ 0.16 |
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