2018 annual report - advansix

Annual Report2018

To My Fellow Stockholders,

The AdvanSix Purpose is clear: to be our customers’ trusted partner for Advantaged Chemistries by caring, innovating and advancing together. Taken together with our values of Safety, Accountability, Integrity and Respect, our team of nearly 1,500 employees is charting a roadmap for sustained performance and execution of our strategic priorities.

2018 was another year of progress for AdvanSix. While it began with a significant weather event, which we successfully navigated, our relentless focus on safe and stable operations culminated in fourth quarter plant utilization rates reaching the highest level of any quarter since our spin-off in 2016.

Health, safety and environmental performance is – and will always be – our top priority. Doing the right thing not only for ourselves but for each other and the communities in which we operate is what it means to Live Safety at AdvanSix. While our safety performance is improving, we aspire to a zero-incident culture and strive to continuously reduce risk. During 2018, we published our inaugural Sustainability Report, sharing our commitment to an economic, social and environmentally sustainable future and the many ongoing initiatives at AdvanSix.

Cash flow generation has also been a consistent and positive outcome of our focused efforts, helping to fund high-return investments in the business, reduce debt and repurchase shares. We initiated our first two high-return capital projects in 2018 to further enhance our integrated value chain, which we expect to provide benefits beginning in 2019 and beyond. We continue to prioritize organic investments and are executing against our multi-year project pipeline focused on delivering benefits through growth, cost savings and asset flexibility.

We continue to maintain our focus on operational, commercial and functional excellence strategies, higher value product mix, and smart, disciplined capital deployment. Since the spin-off through the end of 2018, AdvanSix delivered a 48% total shareholder return or three times the return of the S&P 600 over that period. We remain confident in our ability to drive value creation for our shareholders over the long-term.

Over the past year, our employees maintained their active and collaborative participation in our communities. We expanded volunteer opportunities with local schools to promote STEM education and the importance of manufacturing careers in the chemical industry. Our employees generously contributed their time, talent and treasure to help those in need, doing everything from rebuilding homes to holiday toy drives to cleaning up local parks, among other projects. In addition, we lend our expertise to industry groups that advocate for our business community and our environment, and we are always proud to support our local first responders. It’s all part of how we say thank you and give back, an attitude that runs through our organization and is fundamental to our culture.

I am very proud of the progress we are making toward realizing the AdvanSix Purpose, and I am excited for what we can accomplish for all our key stakeholders in 2019 and beyond. Thank you for your continued interest in AdvanSix and your confidence in taking this journey with us.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR

15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

or

□ TRANSITION REPORT PURSUANT TO SECTION 13 OR

15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to ______

Commission file number 1-37774

AdvanSix Inc.(Exact name of registrant as specified in its charter)

Delaware 81-2525089

(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

300 Kimball Drive, Suite 101 Parsippany, New Jersey 07054

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code (973) 526-1800

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Name of each exchange on which registered

Common Stock, par value $0.01 per share New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No □Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes □ No ☒ Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No □Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No □Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. □Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of ″accelerated filer″, ″large accelerated filer″, ″smaller reporting company″and ″emerging growth company″ in Rule 12b-2 of the Exchange Act. (Check One):

Large accelerated filer ☒ Accelerated filer □ Non-accelerated filer □ Smaller reporting company □ Emerging growth company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes □ No ☒The aggregate market value of common stock held by non-affiliates of the Registrant was approximately $1.1 billion as of June 29, 2018. The market value held by non-affiliates excludes the value of those shares held by executive officers and directors of the Registrant.

There were 29,026,465 shares of common stock outstanding at February 1, 2019.

Documents Incorporated by Reference

Part III: Proxy Statement for Annual Meeting of Stockholders to be held June 11, 2019.