AdvanSix Inc. reported significant financial performance improvements for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, sales reached $398.2 million, a 23.3% increase from $322.9 million in Q3 2023. The nine-month sales also rose by 3.2%, totaling $1.19 billion compared to $1.15 billion in the prior year. The sales growth was attributed to a 10.6% increase in volume and a 12.7% rise in prices for the third quarter.
Total costs and expenses for Q3 2024 were $368.4 million, up from $333.0 million in Q3 2023, primarily due to higher raw material prices and increased sales volume. The gross margin percentage improved by approximately 12% in Q3 2024, benefiting from favorable plant turnaround timing and market-based pricing. However, for the nine months ended September 30, 2024, the gross margin percentage decreased by about 1% due to lower production volumes and market pricing impacts.
AdvanSix reported a net income of $22.3 million for Q3 2024, a turnaround from a net loss of $8.0 million in the same quarter of 2023. For the nine months, net income was $43.8 million, down from $59.7 million in the prior year. Basic earnings per share for Q3 2024 were $0.83, compared to a loss of $0.29 per share in Q3 2023.
The company’s cash and cash equivalents decreased to $17.3 million as of September 30, 2024, from $29.8 million at the end of 2023. Total current assets also declined to $395.8 million from $419.8 million, while total liabilities decreased to $743.8 million from $756.8 million. Total stockholders' equity increased to $766.4 million from $739.2 million.
Strategically, AdvanSix has been active in share repurchases, having repurchased 6.25 million shares for $192.4 million, with $62.0 million remaining under the current authorization. The company also faced operational challenges, including maintenance delays at its Hopewell, VA facility, which are expected to negatively impact Q4 2024 pre-tax income by approximately $17 million.
In terms of leadership changes, Michael Preston retired as Senior Vice President and Chief Financial Officer on October 1, 2024, with Siddharth Manjeshwar appointed as his successor. The company continues to focus on its core values of safety, integrity, accountability, and respect while navigating market dynamics and operational challenges.
About AdvanSix Inc.
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