The sales decline was due to a 24% unfavorable impact of market-based pricing, 8% lower raw material pass-through pricing, and 1% lower volume.

Adjusted EPS was $(0.36), down from $0.43 a year ago, missing the consensus of $(0.03).

Adjusted EBITDA declined to $7.32 million from $33.31 million a year ago, with margin contracting to 2.3% from 7% the prior year. 

Operating cash flow declined to $20.8 million from $58.93 million a year ago. Free cash flow was negative $(4.33) million.

Dividend: ASIX declared a quarterly cash dividend of $0.16 per share, payable on Nov. 28, 2023, to stockholders of record as of the close of business on Nov. 14, 2023.

The company returned $14 million of cash to shareholders through repurchases.

FY23 Outlook: The company expects capital expenditures guidance at $115 million, reflecting increased spend due to critical infrastructure, other maintenance, and growth and cost savings projects.

ASIX expects nylon industry margins to remain at prior trough levels through year-end; Anticipate continued higher Nylon Solutions exports in the near-term.

The company expects balanced supply and demand conditions for North American acetone to continue; it anticipates North American ammonium sulfate seasonality to drive Q3 domestic pricing decline Q/Q.

Price Action: ASIX shares were down 8.6% to $25.64 at the time of publication Friday.

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