AdvanSix Inc. (NYSE:ASIX) Q3 2019 Earnings Conference Call - Final Transcript

Nov 01, 2019 • 09:00 am ET

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AdvanSix Inc. (NYSE:ASIX) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, good day, and welcome to the AdvanSix Third Quarter 2019 Earnings Conference Call. Today's conference is being recorded. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the conference over to Mr. Adam Kressel, Director of Investor Relations. Please go ahead, sir.

Executive
Adam Kressel

Thank you, David. Good morning and welcome to AdvanSix's third quarter 2019 earnings conference call. With me here today are President and CEO, Erin Kane; and Senior Vice President and CFO, Michael Preston.

This call and webcast, including any non-GAAP reconciliations, are available on our website at investors.advansix.com. Note that elements of this presentation contain forward-looking statements that are based on our best view of the world and of our business as we see it today. Those elements can change and the actual results could differ materially from those projected, and we ask that you consider them in that light.

We refer you to the forward-looking statements included in our press release and earnings presentation. In addition, we identified the principal risks and uncertainties that affect our performance in our SEC filings, including our annual report on Form 10-K. This morning, we'll review our financial results for the third quarter of 2019 and share with you our outlook for our key product lines and end markets. Finally, we'll leave time for your questions at the end.

So, with that, I'll turn the call over to AdvanSix's President and CEO, Erin Kane.

Executive
Erin N. Kane

Thanks, Adam, and good morning, everyone. Thank you for joining us and for your continued interest in AdvanSix. As you saw in our press release, AdvanSix navigated a third quarter characterized by a challenging end market environment as we saw a further slowdown in demand on a global basis. Nylon industry conditions in particular remain lackluster with the sequential decline in industry spreads that began in June persisting through the third quarter.

Mike will detail the full results in a moment, but overall the third quarter results were pressured by challenging industry conditions and an unfavorable product mix. Given our global low cost position, we continue to benefit from strong plant utilization rates, at Hopewell in particular, in the face of slowing nylon demand, continued acetone oversupply conditions, and mixed fertilizer industry dynamics. We have remained committed to the deployment of capex this year in high-return growth and cost savings projects. Our new natural gas boilers are fully on stream, which coupled with low natural gas prices are delivering immediate productivity benefits for our business. And lastly, we repurchased approximately $13 million of shares in the third quarter.

I'm also proud to announce that our Frankford facility was awarded RC14001 certification in September. With that certification, all AdvanSix facilities are now third-party certified to RC14001 and adheres the Responsible Care guiding principles set forth by the American Chemistry Council. We continue to have a sharp focus on safety and advancing a sustainable enterprise. We're in the midst of completing our planning for 2020 with a