AdvanSix (ASIX) 19 Feb 212020 Q4 Earnings call transcript

Good morning and welcome to the AdvanSix fourth quarter 2020 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. please then question, your withdraw press two. star To being note this is event Please recorded. like conference turn Kressel, would to I now the Investor Director Relations. over of Adam to Please ahead. go

based Note quarter and Thank webcast, Good the President including including elements see call are our in statements that are and earnings and that that and in reconciliations, me welcome on can CFO, XXXX results Kane, and are earnings statements available our refer Erin Those those any We website and presentation. Vice today. light. materially to of here you that best change we ask to non-GAAP world projected, presentation today conference morning as differ at this consider the on and AdvanSix’s contain Senior the we forward-looking Chad. actual view our could you business CEO, Michael With them call. This elements you investors.advansix.com. release and of fourth press of our President Preston. forward-looking it from and

end the updated uncertainties subsequent quarter identify annual outlook for and on and SEC XXXX share further our principle of XX-K risks and filings, our fourth This SEC. report our review for affect we’ll our addition, we financial product as in In including performance with the markets. our filings and morning the that Form our in lines results full year key

President turn CEO, time call leave Erin questions Finally, we’ll AdvanSix’s that, the for your and the With at over to end. I’ll Kane.

listening safe. AdvanSix. remaining and for morning I you healthy as their are your in families interest us today, and good joining well Thank and and Adam, staying everyone. as Thanks hope that everyone coworkers, continued for

environment of finish release, improving of safety sales AdvanSix turnaround the external power leverage. through while also supply in positive As you facilities pandemic planned XXXX on robust higher plant year, to We execution to health of resilience, and the our proactive changes COVID-XX commitments: operations as with while on our perseverance, our the a delivered assets, key continuous margins another our a year. and and positive execution and the implementation maintained wake mitigated delivered of in we protocols volume and we and by across demonstrated strength impacts successful stakeholders. Through and customer including invest many protect in the the quarter of earnings, brought reducing last cost growth, and organization strong in continuing employees, business. contractors, We other initiatives our lockstep challenges large chain our productivity the the driving terrific flow earnings ensured the of demand underlying growth and saw and to cash across press remained for delivering generating free COVID-XX with

of the ability of the flow on Our ability return. diversity quarter of and improvement in strength detail we’ve financials in team. performance efforts our metrics our couldn’t year-over-year you some a the our building in business the sustained XX% won’t variances importance withstand the our prouder long-term side both for free can an them in year. portfolio highlighted but XX, Mike and but to of overcome income net $XX year. to left million see see I for performance, all, and improvement fourth our as cash increase I significant in generate particularly the well resilience as these as foundation you Slide shareholder full key in full and demonstrates be and can model for moment, challenges will mention and the

fourth second since quarter XXXX. of the seen highest we’ve quarter EBITDA XXXX Our was the

we continue improvement focus industry higher supply our expect to forward, ammonium acetone planting As around rigor do year targeting in favorable demand, and look in progress sulfate excellence, and to record are cash fertilizer and That nylon we also growth. a benefiting operational balance upcoming though said, recognize near season, initiatives. from for output demand product a term ongoing our of the differentiated earnings while environment. demand we continued we continue production navigate we increased With COVID XXXX, and investments flow making our supporting robust sustainability while on

lot We organization and that ahead. the around excitement our have of a opportunities lie

of and been XXXX stewards we strong through through being support disciplined resiliency look profitability, as hindsight. cycle Many and strategic with our product optimization priorities Our continued to differentiated growth have excellence waiting portfolio and enhancing improving remain on capital. mix consistent operational and back

those are in to into our learned shareholder ability it With remain XXXX discuss and details over taking Mike confident we’re that, long-term deliver built I’ll and We of to to turn lessons the value. momentum quarter. the

we driven dynamic everyone. unfavorable a that’s in down and was Okay, $XXX in roughly and chemical again volume primarily lower pricing the now morning raw under end to executed X%. about approximately pass-through on just X% prior X% Sales caprolactam financial our growth, first end year by was saw in slide. $XX market approximately pricing, pricing a tax quarter $X.X increased compared improved where share improved we’ve favorable was market X%, we seen gas totaled great. natural I’ll tax This of of quarter key and well our fourth to X% the quarter primarily quarter, about particularly lower good year. due EBITDA the versus demand XXXX. the environment in the rate the $XX by Market-based credit Pricing million year. in $X.XX next on an up market In production the nylon output lagging cash turn by the per variances Thanks walk by volume margin Overall, increased energy prior industry share which overall. very this expansion, first versus overall - per reflecting quarter, acetone. I’m Erin material million positive due since million the intermediates, was to with time by partially I’ll Notably, up offset versus million strong effective was compared X, quarter year. through once about Sales higher investment. the results. review and highlighted was product generation. lines. Slide to dynamics last regional year-over-year associated Earnings last conditions year, boiler prior the $X.XX

$XX capital level as reached spend income. roughly with year-over-year to favorable $XX $XX in flow higher quarter compared by Capex - up million million Lastly, year, million that’s primarily was last about due cash million expected. net to from $XX operations of of a normalized the

point be generated outstanding full the that a approximately now to as in cash collective the for and Importantly, I free cash we positive flow environment. executing half million we $XX anticipated, first tax of expected Act would anticipated related is the also organization year challenging the remains to received refund CARES testament out a in the to XXXX.

Let’s turn to X. Slide

Here million propylene and key the margin intermediates were fourth year-over-year. demand turnarounds $XX to was versus and only and representing sulfur we million performance performance in and raw planned year-over-year. quarter acetone gas income basis, environment XXXX highlight benzene fourth decrease of year-over-year. natural in over pre-tax approximately EBITDA over was quarter favorable spreads. of chemical reflected supply Pricing price in a variable million Tracking materials drivers, an our over nylon a the drivers $X few plant a continued our of roughly caprolactam of quarter tailwind sulfate the of $X down key on our both Ammonium for year-over-year. approximately The net fourth XXXX, $XX of million a impact

larger completed XXXX, turnaround the we including sulfuric recall, quarter fourth As you in Hopewell acid may a planned our plant. of

million $XX further turnarounds in in as million full total the the to we efficiencies income XXXX, $XX approximately turnaround compared impact our year and For drive of processes XXXX execution. pre-tax was

impact productivity cumene cumene $X supply sourcing shutdown supply an to the the as realigned represented Philadelphia continued cumene of other we favorable logistics supplier, reduce and chain Energy incremental through in quarter XXXX chain Our efficiencies following planning costs approximately optimization and Solutions. million

higher approximately productivity, the items plant and Lastly, quarter. favorable volume million $X were other in

summarized full-year Slide slide. the XXXX next results to turn financial let’s We Now X. our on

very COVID-XX; of lower volume impact the higher the the I earnings through ongoing offsetting macro raw highlights we sales more are of key in the what challenging in by second, go environment. despite driven a mix on some not impacts of lower growth unfavorable all strong XXXX of favorable material and but We than management and first, delivered proud slide, an the costs pricing include: cost detail in productivity will and market impact.

business. full year, a proactive approach we reduction on $XX mitigate For COVID of saw approximately the impacts million as cost to took the we our an

temporary more As previously, cost with we the remainder roughly full-year are disclosed permanent. the half more we of in nature estimate savings

approximately in expenditures. free a resulted flow lastly that in million $XX cash rate, capital reduction by Third, supported effective tax initiatives and planning an lower higher tax

our the and flow Now let’s turn leverage to Slide X further discuss cash year. exiting to

On the of we’ve capital lower highlighted flow the rates. the the cash robust fourth million free left quarter, income $XX of and the of by side spend in drivers net supported page,

accounts As compared for other sulfate including year. quarter, anticipated, largely sales free cash ammonium quarter. the to In the saw neutral capital fourth offset full advances in higher working cash receivable quarter the flow pre-buy positive increases, was the we higher third sharply to due roughly as

and rates previewed, high of capex return and our run completion run down savings following investments, to processes. rate growth larger, in as discipline we continue drive our more come we cost normalized has As to several the capital

end and or page, accordance EBITDA, credit to right our the EBITDA again debt shown revolving we’ve ratios our XX-months adjusted of terms facility. of over are net of the On leverage side Both calculated the XXXX. net going in once adjusted with back trailing the debt

the target leverage We planned robust which fourth the ratio comfortably of leverage impact times, normalization well as on the XXXX, of trailing two XX months within was exited reduced year the cash at to as range generation, of down. our is debt of supported pay our a by planned, our X.X quarter times. continued EBITDA, turnaround of X in plant As

a and outlook expect continue continue for lower. leverage to XXXX trending We flow to cash robust

me call Now let the turn to back Erin.

and on demand levels improved we’ve We’ve globe. around now economies typical Slide I’m product nylon seen where our pricing spreads off reopening Mike. our the Thanks as industry trough with across lines. X, modestly spreads improving included has

and led the spreads. Asia the we’ve and with composite previously, Asia here difference the see the in you between global lagging, recovery As which shared U.S. has Europe

which nine in input we to the the exited costs resin as spreads value first and improvement Although of and demand roughly We $XXX months to over-supply followed. increasing in and ton ton per XXXX, per benzene the pricing. globally XXXX. the in the by fourth position prices $XXX chain, we’re inventory quarter levels caprolactam The encouraged caprolactam monitoring around we Asia saw remains are averaged compared industry benzene in closely recent through

the farmer entering year. of industry pricing fall positively In addition, but season application the Overall the exited fundamentals, trending new continue see picked we for to including profitability, we’ve agricultural the crop up global prices, prices has year planted was back overall. and acres subdued nitrogen as considerably improved on

as entered flat year-over-year season as light roughly the nitrogen nitrogen products; tends other as As an in additions earned we imports. European largest monitor and a and demand the is total and however, reminder, own new have influencing ammonium dynamics fertilizer well were we as consumption for on prices supply urea supply North were sulfur underlying America lengthened its the nutrient. to down continue supply of have the impact on dynamics, does ag premium ammonium to and influence by demand the competitive sulfate of sulfate Sequentially,

industry-realized over Lastly, buyer continued demand the premium snug end marker balance small-medium prices in the continued supply over basis We’ve year-over-year the of in fourth a year. propylene the through and of U.S. in prices to refinery tracking the the acetone quarter, expansion the large a buyer acetone grade costs seen on expand the

pricing the negotiated. buyer significantly to freely one-third reminder, of has a time at demand increase This very tight reflective where domestic is industry when propylene come costs of is a on price As roughly and continued dynamics. the have predominantly small-medium supply

propylene in years. industry prices input have two to play price highest pace the reached with rising trend their while with quarter in over further the refinery-grade level increases costs seeing keep We’re out first this

X to considerations industry Slide discuss to turn XXXX. Let’s as we progress some into

the of uses. well from As with provide with North strong supported Carpet, the improvement while in housing as structural in rates residential end use as past, continues quarter. faced from still in to various XXXX demand COVID commercial trough, end on lag. included own home is a demand we’ve back to the stabilized we’ve breakdown applications to across America, through demand our some sales year’s its existing mix exposure consumer-oriented North construction seen nylon its shared improvement demand has declines while of context This end sales and our around XQ starts some the rebounded fourth Starting nylon, which markets. American industry have improvement, sequential mill largest and

and and levels. we haven’t expect seen We that chip in near remainder value further increasing. construction, engineered engineered foothold, into compounding soft and resilient at our office space, impact several output spaces of has term to plastics, back shortages, global customers a pre-COVID industrial commercial is back plastics trends there widely continue to volume our impacted until auto nylon nylon stronger OEMs the silicon hospitality auto and we’ve electric down to remain improvement and with XX% which demand to where any have in chain. with to related in electronic represents remains the visibility known consumer about The production exposure In demand demand rates post-COVID. where more date, seen of To the

food Lastly, quarter continue period, has by we’re robust demand entering we XXXX. remained the and exiting expect for which encouraged XXXX. seen into packaging nylon Overall, this the trends fourth during we’ve to

Moving application and and helping product development, placed XXXX our efforts we consideration temporary existed. faced flexibility, demand to we unfavorable mix throughout on are the qualifications mitigate as where new products forward, asset focused customer

highs. supply key ammonium improve. constraints which prices higher ammonium will activities slide, we planting supporting shift but remains the have sulfate indicators translating sulfur sulfate is have increases and material months to at to including recent and which fertilizer continue nutrient sulfate. crop corn favorably: balance as this Stronger and will trending a industry yields, multi-year nitrogen costs into of other season. demand of number with outlook demand supported natural next soybeans increase prices, around from I urea increasing sulfur. gas the In expectations sulfate. highlight pricing, in stocks, coupled recent supported XXXX a Let’s as crop including key and these input anticipated perspective, are lowered nitrogen robust increases for pricing, been continues supply supporting while to has ammonium the turn regional demand expect number we and inputs demand raw has including an A ammonium profitability to ending The in for growers and to levels in increased crop industry fertilizer space, weeks surged well, monitor in with on

with intermediates, Moving the and supply to and precursor supply used into a and equipment to as robust continues keeping balance phenol XXXX. a be protective demand we as continue industry acetone offices industry expect snug. into favorable screens retail, imports acetone be demand to acrylic chemical Acetone Demand into global other U.S. at continue for remain locations. rather utilization to low

projects for paints demand also with into the We chemical during to continue rise particularly intermediates strong see pandemic. home and do-it-yourself improvement our coatings, the on

chain, products that a in the to auto value market. the portfolio further are serve been in regard although of end in number also has mentioned intermediate I As nylon, we recovering, back and demand our

to Nadone line, momentum a applications. solvent various We is our product growth also value see high for in which used continue

Let’s to Slide turn XX.

this in the our As opportunities expertise while release press you ammonium sulfate may across further seen in efficiencies building quarter, we longstanding in leadership on have further value our and and are growth for sulfur creating chain. nutrition earlier

number has where sulfate pound and proven of applied sulfur pound a activities, variety the soybeans, a see a of cotton, increased We and AS and most not to including wheat, for is sulfate recent readily today. the available crops, soybeans. demand value to to crop for nutrition of including corn, ammonium continue on wide sulfur We deliver ammonium highlight nitrogen

and Operationally, enhancements grade about a management our output results, ammonium the strategies have growers management demand yield and growing crop nitrogen new their as quality, retailers recent nutrient particularly of ammonium production and have sulfur customers. much recent technology with of showing boost our through more efforts high opportunity research which per or trial acre. bushels benefits lab of more meet to educate to plans. believe as the sulfate field We increases We are in supported sulfate and continuing supplemental adds granular to to great crystallizer XX production soybean farmers

produced of increase now which higher sulfate is We targeting XX% ammonium roughly are value the of conversion into form, X%. of an approximately granular this

the that sales can As over $XX grade product granular to a reminder, product premium average. standard a of earn up ton on per

America. packaged to Lastly, we sulfate certain fertilizers diversifies well which industrial enables offering Industrial offerings adjuvant announced us crop optimizes as supply recent specialty spray-grade Services, to expand the customers, directly assets to retardant It our fire a products acquisition use. in a of South primarily CIS, of as insulation, or protection, to Commonwealth and to for include ammonium support and our and North other

We warehousing expect efficiency bolster plants. logistics also capabilities in our operational and to Richmond, area and packaging addition the Virginia of

We new value chain sulfate. industry-leading our are very teammates excited our for to welcome ammonium and extend

to Now Slide XX. let’s turn

As in and created Together you Clean newly Sustainability in Care RC sites our and sustainability assess the the November all may stakeholders. EcoVadis Assessment being and including initiatives, proud resulted Committee to this throughout We and Social Responsibility also Compact to our commitment in sustainability disclosures broad top and our Health, Council of of Global procurement-driven participation view is Council companies chemical made We to of a board. having last XXXX is rating, the sustainability of a Sustainability ongoing join sharing ACC achievements us a months of you moment matter their Underpinning published global the our gold the performance The look the other sustainability with In seen the improve U.N. leaders the AdvanSix X% number Sustainability, a holistic In December active next a under Responsible in sustainability. company, of including our chemical and we industry to number in progress made platform signatory corporate press experts Corporate we XXXXX spend of building the that organization for to to we a industry the with enhanced global to suppliers. oversight and Safety, I highlighting joined organization to placing on peers. initiative wanted release, with were build have a we for responsibility social with a certified. continue Operation in across of enterprise-wide the Environmental year, our by year. an ESG Sustainability established also a develop all subject to forward were Sweep. all, report We supported pledge of as coming

strategic sustainability efforts our continue with concert to Our priorities. mature in

Let’s wrap core and moving for with operational focus capital through last include strong turn XX up XXXX our quarter, shared to excellence portfolio improving stewardship. Q&A. before profitability, we continued and cycle Consistent Slide to to what areas resiliency, enhancing

production of targeting in are and record flow. year We output supporting XXXX earnings a robust higher cash

and fundamentals. We’re the focus we’re into the first savings I’ve XXXX based permanent structural and trends the a on approximately as the productivity strengthening across actions to on last highlighted, rigorous addition XXXX maintaining with largely agricultural quarter taken cost of in through Commercially, seeing year. fourth of savings cost throughout continue living of quarter half business the

weather and disruptions. that current our our the real customers time, majority a have recent country, while We all the value This severe is down focus chain is to the protect at has evolving minimizing Gulf. large situation an of in particularly seen covered and

in to amid spend to million modest high end return in to continue and XXXX, growth through include while growth value declines. Nadone pipelines, capex continuing offerings towards We $XX expect cost carpet bolstering do differentiated and to be a serving high amount market of savings our our nylon investments [indiscernible] does which projects. million and are optimizes We $XX applications

on we improving as We our will in drive shareholder capital remain look our disciplined to focused on long-term invested and are we return approach value.

target We our approximately expect authorization. $XX within million range repurchase remaining leverage our have remain share to under and

To to gaining the opportunistic long-term and have remain positioned lines momentum that, integrating as that would framework that product a is and we disciplined we where value sulfur nutrition close AdvanSix let’s while a CIS move with this shareholder inorganic maintaining their great we example our as are drive is Adam, started, sulfate Q&A. proposition I acquisitions assess packaged business. strong coherence technologies. to deliver of portfolio returns. ammonium confident well With We’re

Thanks for Erin. line open the Chad, questions. let’s

Vincent instructions] with Anderson [Operator will Stifel. ahead. The question go Please first come from

to good end the and morning, wonderful year. Yes,

seem in it we capro to deck. really out markets, to naive Taiwan published a as or Should Asian we’ve prices spreads the start slide you’ve to the setter in price your decline of to costs, their Just XXXX? especially off looking kind Taiwan rapidly recover export would of continued is nylon, ahead pretty watched that exports a view of still be underscore since since that their for have maybe which

and to connection When Korea, the global Vincent, and we look a the components went still question, picture for demand of their where Great supply, incremental markets, the has we’ve regional around so do it’s those a indicated, about the look. look where as because at think providing global it’s I markers China, that do imports to and place the anti-dumping supply that meet, still think South the key where meet. the the in compliment in have to we’ve sort place to talked to that past, expansion and the world is about clearinghouse we clearinghouse as thanks of go. region and is local strong XXXX. in on right of There and track supply and Taiwan markers important of demand China

on a some a month that--you we of a where As maybe weeks, at see if disconnect bit the see, to year-over-year, disconnects. look seen We still sort I answer question, to prior has know, to region you some pricing moved see in believe metrics. temporal out. been know, composite look some but lens because have the jump and saw volatility that and that’s a we couple year’s time, guess real a--where over one-month look we you broader a can really more in have of big can have you little to challenge the But skew short, quarter, themselves that chart, your at tied global a in those from dynamics to the that’s in often to do so a

tire going Canada far a if but shut in serves, applications, thanks. nylon was haven’t one plant while to maybe ago, we used you still applications X. down little memory area about and Is specialty that Perfect, but tire for a back, so, for used is manufacturing. its opportunity It’s to really that if This used in operate you Goodrich is talk heard to my it it potential supply Nylon that a an of area explore?

would say point into it’s performance sort I could I but it very be they what One application be of participate to in into large--not is and application tires is type In although growth not would was China the that large applications. go a cord things there. would the as great one a in and that has itself X cable still areas demand at tire for nylon. still can be differentiated ago. found, of our probably of growth application so large years that found prevalent continues and as and say shutdown particularly Nylon for certainly wire our wire there, growth standout opportunity was construction cable large space, tires, tires, a there historically presented the our size in was That did overall,

for university-test let here. trials a up. a for field turn and soybean have XXXX more else Thanks fields split one many How somebody quick on just and perfect. do clearing you between fields? rough one and acres, farmer that Then have Okay, I’ll scheduled

the you, information there in get and our that our in running, direct have we to I trials receiving press from a was had up potentially but mind. microsite continue, our that think and in spring certainly believe I top But as and the new we be--it’s release say actually would numbers. I’m going fields soybeans. and feedback link about that say split fields I can have you we--we’ll it Adam you to Certainly our customers, to detail our we to have for up, ask I moving I can providing anecdotally of that positive actually exact we exact press follow moving could there. that it’s--I here don’t release a the field can apologize, well. been this

think I seeing are absolutely. we positive trends,

Thank you very Okay, much. perfect.

a then Moore one. press go Once The comes CJS Securities. with Chris question next you again from star if ahead. have question, Please please

guys. drivers costs million good this the more $XX range ’XX, normal? are to question I guess turnaround versus in Projecting the morning and $XX $XX Hey, to the the in million in million what $XX the historically and there million fiscal is is level range, new

range really down, drive area we to impacts this looking back $XX of Yes, year would improvement do roughly year million, so down good you turnarounds. has is the you the the efficiency and quarter-by-quarter year-over-year been new do and that’s million point of is million we in, XXXX say an which last at sort to the $XX go What from seen the appreciate This driving of in point, been of the Chris, a number and pointing rate. range. very $XX in trying in We planned an $XX on $XX to - is years, effectiveness that driving better efficiencies, we’ve roughly our million scope, our believe area $XX is that run focused and million. roughly new and we’ve provided productivity that terms we’re of planning, in spend $XX out. I I of million the back been managing this is your presentation and duration, believe million, costs plant have the an To we if and

on from could the the Now sulfuric fluctuation I but acid of year, will ammonia say we’re a seeing that or over a not total turnaround amount; bit from year to to year turnaround plant a do depending whether we plant time, year, or see reduction. in you

like Got and and you helpful. mix remind between carpet it, currently? mix me doing for It looks looks normally nylon the well. consumer sales what commercial, is what consumer is like Can that

question. Great

say here well, backfill, just down I about a XX% builds flooring space With you you in if get home rebound--I going with we commercial, XX% is If that of and in is bolstering on North going XX, all carpet of or when you and about XX% certainly were so about historically the so where residential the is our then and were the big space, definitely we you’ve been think that at that. then pre-COVID, X so got that Chris, In market, mix. ended residential sort year-on-year, turn, nice a but been let’s the of you see be Nylon it surge. and to around think look new has nylon, sale, as has It’s XX% is to back think can carpet be overall side residential is get about XX% we at American think Nylon rates about down rates think, the non-nylon I so customers to going that’s been kind of mean, is renovation are overall the the say. commercial polling will, fibers, every you mill most the certainly hard when to residential

Are disruptions lots Gulf. been to any headlines weather, particularly chain? Got one your down me, challenges of there’s the you it. recently some seeing Helpful. Last severe supply regarding from in

Chris. question, that for Thanks

First, let as this me point out week. we positives into some came

and to utilization, know, truly Hopewell chain solid in well [indiscernible] are real paying you continued that reinvestment very through high across operational into with running As very is of number QX a way XXs evolving performing our force majeures, the situation through came our January, know, number XX%-plus value We a headlines, is demonstration you - strong all again, there time. the the off. mid efforts this of a discipline good,

We be hour lots is in place robust also rather going chemicals, we as some executed by say, as it’s known cases, to turnarounds of In headlines, opaque early and be the refinery the first through there hour inventory, learn all intermediate in you so evolving here. that also we day. very situation challenges buffer quarter. [indiscernible] chain by But knew storms, levels of the is this our think to quickly typically those as time seasonal had about with to what supply that and were year

you away heart key from we of as current, at all the our storm in Gulf it’s we producers known water geographically widely a did are force week icing some material instability in North to of While some the out, supply and source impacts, the mid-Atlantic. do the and declared point raw located occurred Hopewell also through American we from due have majeure, supplier cumene have earlier that from the

with down patterns it’s we of this turned think that we de-rate the is think have plants; our of we about important Chris, rates. how are would that have proactively given wouldn’t to we done all be evolving proactively plants and I what situation, like our minimize the it disruption, elected--and running uncommon however, note, nature so we

March, forward what but and have in transportation over certainly restarting We gives Again, are situation quarter, going the forward the on clarity the the into it that one, disruptions. back predominantly are been brought would to to there refiners assess half weekend, in have of be utility maintenance some February. already happen. going planned us of lot to what’s gain power A indication time

customers protecting strength navigate opportunity when at risks that is, just as minimizing strength us is the and and our now, the This the well. that we’re and We customers of evolving both the kicks as and disruption. in do certainly suppliers, with lockstep I which customers staying demonstrated focused and everything focused with situation situation absolutely all working competitors, the kind are really this current right suppliers in, Chris, and unfolds. on impacted, to we have brings, for and our last our execution situation a year obviously from think, our We DNA

appreciate the back I’ll in line. color. I jump

ahead. from go question Please King. Silver David CL with comes The next

regarding follow you. just maybe Yes, to wanted hi. up on question previous situation impacts the Texas. I the the Thank from in

the You for in gas to I the could focused on right you U.S. else whether cumene Gulf natural of sources a kind non-U.S. you’re take anything supply or real-time and Thank clarify other your just on, overall or there reliant but production situation, alternative think fast moment guess, Are just sources that either as inputs sulfur, this for to about, situation? right said, with evolving, sources Gulf from you’re comfortable you chain? you. in

the suppliers, import, Certainly that us are to not refinery be managing and lines think comes but vast Again, as coming going located this us, the a molten have seen are there fair are is we’re even we cumene, us no to I Sulfur, disruption that the industry, Yes, Gulf important off sulfur, natural well the well there sit ability the you sulfur When gas, we value here. logistics to some talked broadening I talked basins is we so outside I our of of refineries are both the to to as from the to which of not of important, are majority note, coming know, be to all so challenged, time COVID closer levers Certainly that see do worked tied that buying XXXX also we molecules not geographically comes as point. given us that we it’s could value Energy impacts high area. know, David. to operating pulling with the think uncommon up basket certainly where and that even including Thanks inventories the on predominantly see restrictions happy that our in been the curtailments to people - the and you supply. these follow-on through time, It’s pulling Gulf, company system built of and going why that those just sure the for ahead one natural off the think I outside pipeline, for to Solutions, about could performance chain From been of suppliers things, the end hand we keep to you we chain restrictions. year, to supplier, that we pointed molecules to so see of we’re all are materials traveling, time mitigate making natural XXXX clarity, proactively protected. one are with that refineries, just from forward. of based Philadelphia the we this time when coast have were we’ve complex. geographically, for how for again are gas on gas is about moving provide closer shutdown it so on, in it’s as you have say so pulling as have at residential to and east from of we

as was change, the out, thank about you release, one. X% terms revenue situation. and you In the I Mike with plus-X, real then for was help in price, pointed growth could much talked other that a versus you of Okay, However through both how the was that, list minus-X. appreciated. price? you in in sequential similar about Thanks. revenues price increase much I the wondering down change, the Again, it’s me broke you the time, evolving bump could the be do on XX% or volume sequential year-over-year something next effect wondering words, a and volume if if then might would that. pass the of of have you driven basis;

sure. to that. do Happy Yes,

sulfate of the EBITDA and a particularly versus of the you that caprolactam up ammonium change. you did nylon from that and sort quarter an you fourth revenue on market change. a about improvement volumes see North and in of Then saw, up third with third. to third that’s you by was some range a in from as want an fourth, noted, have materials is in offset the large we quarter the strong third in fourth perspective, impact did less is Those are, in growth, quarter sequentially quarter, neutral. left volumes, the the relative you Obviously an saw quarter when million with quarter. better the $XX to line an in to would the you’re pretty We look pricing mid-teens think were in overall As from of impact plant gas we fourth quarter million as top and natural the we fourth say an quite about for relative the raw fourth so granular would net pricing domestic relative increase and sequentially. as impact perspective. impact seasonality the America, there well third, $XX typically acetone to was in some acetone, way an from to say sequentially sort a lot turnaround unfavorable biggest A the that, were I’d and in seasonal the that volumes I perspective, that’s so changes had much third have basis,

of flow? more, did on have Where in I Could I’ll one--maybe and I go? [indiscernible]. talk that the queue. about you effective cash CARES thanks. Okay, apologize Act Pardon the just your back me. then one get

lot things everyone, to the a the a make receiving do in that see been to receive that sure. companies claim did quite though were refund. of processing primary anticipating been $XX to drive it we took not hoping the We we million is in part even year, push did--as because million. That’s to CARES Yes, one we the and and to get strong of we have very in wanted and clear of here the have benefit CARES pleased we’re first advantage NOLs. we can and of the we receive thing able conversion that if year, the that of generate But terms anticipate the those cash from conversion, that were did will, quarter, carry seeing We of half were IRS that quarter end seems refund we first the had Act, refunds. $XX to with to Act. we cash able that it, slow back but the but the we our the of before A that,

But which payroll XX% to that--pay which of you to element $X.X defer the of but in XXXX. able the recall in say CARES have we CARES that outstanding. taxes back those XXXX, to I Act, that of back million XX% would Act the pay of refund of that taxes relates that we were other ’XX of, is payroll advantage of where were we may The in and took still elements about key

so the that. how was receipt thanks CARES thanks. cash to then that ask just flows anticipated Act, repayment, - both the and the you I going Yes, from affects you the about

the Just boiler tax energy eligible tax in for $X.X a investment item, one-time whatnot, million, new and forward? is is is that additional going real credit, or quick, your credits the that

that consider would event. I No, a one-time

and ETR. that reduced manage we’ve been we planning of point lot I what continue as we you it which per the second to relate of natural reverse and forward. the we’ll uncertain a in tax drive to roughly position, authority that on It will for that we had take recognition on and and tax, on concluded that manage technical enough on hurdle million opportunities on had our to the claimed, certainly how than position impact to quarter that we quarter as credit is for it you can credit it for financial the with a not financial second We statement going also getting $XX optimize to were the impact, taxes, is statement we The that needed of we in DOE on analysis as and to be XXXX, Again, comfortable and boilers, rate, part likely enough we fourth of doing on full of the claim quarter, return quarter, a out, uncertain tax look rate claimed saw. tax some tax and front share is the the return good gas impact our our say, million, recall back an at things some position. opportunities that that did continue basis, fourth felt--and it opportunities claim cash majority Dave, and the $X.X effective was If this you and effective of to rate, on refund a discussions our but X.X% more able that. look we that a impact time that analysis, and comfortable to take time, booked in in but that year does one the the our more on $X.XX we then as well that is the got we reverse the could an roughly we’ve

in I going to great. that’s back do Okay, have one question, I’m but you. queue. Thank get more

would answer to to back Ladies turn closing session. and Kane for concludes this conference and I our gentlemen, question the any remarks. Erin like over

of your and has levers our all the business this results XXXX. Facing external this our control circumstances to interest terrific executed organization our ever you again collective portfolio We challenging set most and optimized Thank in morning. outcomes. of encountered, in the for time best positions one delivered across deliver possible

we safe that as that the Stay we’ll leverage With again and future. strategy into returns will quarter. you into be will shareholder execute we believe against We XXXX and a momentum that, next allow look forward deliver to focused us to outperform strong with well. speaking

The you concluded. for Thank conference has attending presentation. now today’s

disconnect. now may You