AdvanSix Inc. 10-K

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on the New York Stock Exchange under the symbol “ASIX”. On February 1, 2021, there were 19,845 holders of record of our common stock and the closing price of our common stock on the New York Stock Exchange was $22.29 per share. As of February 1, 2021, 28,033,935 shares of our common stock and 0 shares of our preferred stock were outstanding. On May 4, 2018, the Company announced that the Board of Directors (the "Board") authorized a share repurchase program of up to $75 million of the Company’s common stock. On February 22, 2019, the Company announced that the Board authorized a share repurchase program of up to an additional $75 million of the Company's common stock, which was in addition to the remaining capacity available under the May 2018 share repurchase program. Repurchases may be made, from time to time, on the open market, 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 below table sets forth the repurchases of Company common stock, by month, for the quarter ended December 31, 2020: Period Total Number of Shares Purchased (1) 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 October 2020 — $ — — $ 59,581,679 November 2020 1,273 17.50 — 59,581,679 December 2020 — — — $ 59,581,679 Total 1,273 $ 17.50 — (1) Total number of shares purchased includes 1,273 shares withheld to cover tax withholding obligations in connection with the vesting of equity awards. As of December 31, 2020, the Company had repurchased 3,593,912 shares of common stock, including 504,150 shares withheld to cover tax withholding obligations in connection with the vesting of equity awards, for an aggregate of $101.7 million at a weighted average market price of $28.30 per share. During the period January 1, 2021 through February 1, 2021, no additional shares were repurchased under the currently authorized repurchase program. Dividends We evaluate the payment of cash dividends to our stockholders and the timing, declaration, amount and payment of future dividends to stockholders, if any, will fall within the discretion of our Board. Holders of shares of our common stock will be entitled to receive dividends when, and if, declared by our Board at its discretion out of funds legally available for that purpose, subject to the preferential rights of any preferred stock that may be outstanding. The timing, declaration, amount and payment of the future dividends will depend on our financial condition, earnings, capital requirements and debt service obligations, as well as legal requirements, regulatory constraints, industry practice and other factors that our Board deems relevant. There can be no assurance that payment of a dividend will occur in the future. We did not declare or pay any dividends during the years ended December 31, 2020, December 31, 2019 and December 31, 2018. Performance Graph The following graph compares the cumulative total stockholder return on the Company’s common stock to the total returns on the Standard & Poor’s ("S&P") Small Cap 600 Stock Index, the S&P Small Cap 600 Chemicals Index and the S&P Small Cap 600 Materials Index. The changes for the periods shown in the graph assume that $100 had been invested in AdvanSix stock and each index on October 3, 2016, the date that AdvanSix common stock began “regular-way” trading on the New York Stock Exchange, and that all dividends, if any, were reinvested. The share price performance in the graph is not necessarily indicative of future price performance. 25 COMPARISON OF CUMULATIVE TOTAL RETURN October 3, 2016 December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 AdvanSix Inc. 100 135 256 148 122 122 S&P Small Cap 600 100 112 126 116 142 158 S&P Small Cap 600 Chemicals 100 116 131 111 129 153 S&P Small Cap 600 Materials 100 120 132 103 124 152 Item 6. Selected Financial Data Selected Historical Consolidated Financial Data The following tables present certain selected historical consolidated financial information as of and for each of the years in the five-year period ended December 31, 2020. The selected historical consolidated financial data as of and for the years ended December 31, 2020, 2019, 2018, 2017 and 2016 are derived from our historical audited Consolidated Financial Statements. The selected historical data related to the balance sheet information for December 31, 2020 and 2019 and the statement of operations information for the years ended December 31, 2020, 2019 and 2018 are included in this Form 10-K. The selected historical data related to the balance sheet information for December 31, 2018, 2017 and 2016 and statement of operations information for the years ended December 31, 2017 and 2016 are not included in this Form 10-K. The selected historical consolidated financial data presented below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our historical Consolidated Financial Statements and the accompanying Notes thereto included elsewhere in this Annual Report. For the periods presented, our business was wholly owned by Honeywell through October 1, 2016. The financial information included herein may not necessarily reflect our financial position, results of operations and cash flows in the future or what our financial position, results of operations and cash flows would have been 26 had we been an independent, publicly-traded company during the periods presented prior to October 1, 2016. In addition, our historical consolidated financial information does not reflect changes as a result of our separation from Honeywell, including changes in the financing, operations, cost structure and personnel needs of our business. Further, the historical consolidated financial information includes allocations of certain Honeywell corporate expenses to the historical Consolidated Financial Statements. We believe the assumptions and methodologies underlying the allocation of these expenses are reasonable. However, such expenses may not be indicative of the actual level of expenses that we would have incurred if we had operated as an independent, publicly-traded company or of the costs expected to be incurred in the future. Years Ended December 31, Selected Statement of Operations Information (Dollars in thousands): 2020 2019 2018 2017 (2) 2016 Sales $ 1,157,917 $ 1,297,393 $ 1,514,984 $ 1,475,194 $ 1,191,524 Net Income 46,077 41,347 66,244 146,699 34,147 Earnings Per Common Share (1) Basic: $ 1.64 $ 1.47 $ 2.20 $ 4.81 $ 1.12 Diluted: 1.64 1.43 2.14 4.72 1.12 Weighted average common shares (1) Basic: 28,048,726 28,122,288 30,172,050 30,482,966 30,482,966 Diluted: 28,157,062 28,898,836 30,978,291 31,091,601 30,503,587 As of December 31, Selected Balance Sheet Information (Dollars in thousands): 2020 2019 2018 2017 2016 Total assets $ 1,263,407 $ 1,235,969 $ 1,034,626 $ 1,050,274 $ 904,957 Total liabilities 819,284 835,091 614,288 673,949 689,595 Total equity 444,123 400,878 420,338 376,325 215,362 (1) On October 1, 2016, the date of consummation of the Spin-Off, 30,482,966 shares of the Company’s common stock were distributed to Honeywell stockholders of record as of September 16, 2016. Basic and Diluted Earnings Per Share ("EPS") for all periods prior to the Spin-Off reflect the number of distributed shares, or 30,482,966 shares. These shares were treated as issued and outstanding from January 1, 2016 for purposes of calculating historical Basic and Diluted EPS. No dividends have been paid by the Company from October 1, 2016 through December 31, 2020. (2) Reflects a net tax benefit of $53,424 primarily related to the reduction in the federal corporate tax rate to 21% pursuant to the Tax Cuts and Jobs Act.