Core strategies aligned with sustainable and robust total shareholder return
Launch of a quarterly dividend of $ 0.125 per share
3Q 2021 outlook reflects strong expected earnings and cash flow results
PARSIPPANY, New Jersey, September 28, 2021– (COMMERCIAL THREAD) – AdvanSix (NYSE: ASIX) announced that it will host an Investor Day today to highlight the company’s strategies for delivering sustainable and strong returns to shareholders. The update coincides with the company’s fifth anniversary as an independent state-owned enterprise, a milestone marked by significant value creation for its key stakeholders since the spin-off.
“It is remarkable how much our organization has achieved over the past five years. We are delighted to speak with the investment community about our accomplishments to date as well as our priorities for driving performance and growth, ”said Erin Kane, President and CEO. AdvanSix. “We executed a focused strategy that dramatically improved the underlying earnings potential of our business and positioned the business for long-term success. Our integrated business model and the diversity of our product portfolio and end-market exposure aligns with favorable demand trends for our success. Our ability to innovate through differentiated products, an unwavering commitment to sustainability and the improvement of our capital allocation strategy each support continued attractive returns for shareholders. We are convinced that the best is yet to come for AdvanSix.
Company initiating the first dividend
The company also announced that its board of directors declared a quarterly cash dividend of $ 0.125 per share on the company’s common shares, payable on November 23, 2021 to shareholders of record at the close of business on November 9, 2021.
“AdvanSix’s first cash dividend supports our commitment to an enhanced, disciplined and balanced capital deployment strategy and marks another important step in creating long-term value for our shareholders. The launch of a quarterly dividend reflects confidence in the financial strength of our business and our ability to generate strong and sustained free cash flow going forward, ”added Kane.
3Q 2021 outlook
As part of the conference, the company shares its outlook for expected 3Q 2021 financial results, including:
How to participate in the conference
The Investor Day presentation will be webcast live starting at 9:00 a.m. ET today. The audio webcast and accompanying presentation materials can be viewed at http://investors.advansix.com. A replay of the webcast will be available on the AdvanSix Investor website following the presentation.
AdvanSix plays a vital role in global supply chains, innovating and delivering essential products to our customers in a wide variety of end markets and applications that touch people’s lives, such as building and construction, fertilizers, plastics, solvents, packaging, paints, coatings, adhesives and electronics. Our reliable and sustainable supply of quality products emerges from the vertically integrated value chain of our three US-based manufacturing facilities. AdvanSix strives to deliver the best customer experiences and differentiated products in the areas of nylon solutions, chemical intermediates and plant nutrients, guided by our core values of safety, integrity, responsibility and respect. You can find more information about AdvanSix at http://www.advansix.com.
This press release contains certain statements which may be considered “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that deal with activities, events or developments that our management intends, expects, projects, believes or anticipates will occur or may occur in the future are forward-looking statements. Forward-looking statements may be identified by words such as “expect”, “anticipate”, “estimate”, “outlook”, “project”, “strategy”, “intention”, “plan”, “target”, ” “may”, “will”, “should” and “believe” and other variations or similar terminologies and expressions. Although we believe that forward-looking statements are based on 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 actual results or performance of the Company to be materially different from future results or performance expressed or implied by such statements These risks and uncertainties include, but are not limited to: general economic and financial conditions in the United States and around the world, including the impact of the coronavirus pandemic (COVID-19) and any resur gence; the extent, duration and pace of the resumption of the pandemic; the timing and effectiveness of any COVID-19 vaccines or treatments that are currently available or may be available in the future and the associated vaccination rates; the severity and transmissibility of newly identified strains of COVID-19; government, business and individual actions in response to the pandemic, including our business continuity and cash flow optimization plans that have been and may be implemented in the future; the impact of social and economic restrictions and other containment measures taken to combat the transmission of the virus; the effect on our customers’ demand for our products and the ability of our suppliers to manufacture and deliver our raw materials, including the implications of reduced refinery use in the United States; our ability to sell and provide our goods and services, including as a result of travel and other COVID-19 related restrictions; the ability of our customers to pay for our products; any closure of our offices and facilities and those of our clients; risks associated with increased phishing, compromised commercial emails and other cybersecurity attacks and disruptions to our technology infrastructure; risks associated with employees working remotely or operating with a small workforce; risks associated with our indebtedness, including compliance with financial and restrictive covenants, and our ability to access capital on reasonable terms, at reasonable cost, or not at all due to economic conditions resulting from COVID-19 or otherwise ; the impact of scheduled shutdowns and significant unplanned downtime and interruptions to production or logistics operations due to mechanical problems or other unforeseen events such as fires, extreme weather conditions, natural disasters and pandemics; price fluctuations, cost increases and the supply of raw materials; our operations and growth projects requiring significant capital; the growth rates and cyclicality of the industries we serve, including global changes in supply and demand; the inability to develop and commercialize new products or technologies; loss of meaningful customer relationships; unfavorable trade and fiscal policies; the extensive environmental, health and safety laws that apply to our operations; hazards associated with the manufacture, storage and transportation of chemicals; litigation relating to the manufacture of chemicals and our general business operations; the inability to acquire and integrate businesses, assets, products or technologies; protecting our intellectual property and proprietary information; prolonged work stoppages due to work or other difficulties; cybersecurity, data privacy incidents and disruptions to our technology infrastructure; failure to maintain effective internal controls; disruptions in transport and logistics; the potential for uncertainty regarding the qualification for tax treatment of our spin-off; fluctuations in the price of our shares; and changes in laws or regulations applicable to our business. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. These forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those contemplated by such forward-looking statements. We identify the main risks and uncertainties that affect our performance in our filings with the Securities and Exchange Commission (SEC), including risk factors in Part 1, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31. 2020, as updated in subsequent reports filed with the SEC.
Non-GAAP financial measures
This press release contains forward-looking non-GAAP financial measures intended to supplement, not replace, measures comparable to GAAP. These forward-looking non-GAAP financial measures are provided only on a non-GAAP basis as these reconciliations are not available without unreasonable efforts as the Company is unable to predict with reasonable certainty the occurrence or amount of any adjustments or other potential adjustments that may occur, which may depend on future events. Non-GAAP measures in this press release may be calculated in a manner that is not comparable to measures with the same name and reported by other companies.
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