Erin Kane: Yes, I think the easiest way to think about this, Vincent, here, is just like in all of our supply agreements and considerations that all options are open. We have a good relationship and partnership with the current supplier. The flexibility works. There is, as you could imagine, in this space, co-producer relationships given shutdowns, operations, whatever it may be, swaps come into play. And so I think it’s simple to say we keep all of our options open relative to being able to drive the best decisions, profitability and growth for the company.
Vincent Anderson: Okay. Fair enough. And then coming back to the move and the turnaround schedule for this year, I’m just curious if any of that was driven by, like, a need to have more time to rebuild inventory ahead of it. And kind of given where it sits in the year, should we anticipate maybe a little bit less participation in the export markets in the third quarter for ammonium sulfate compared to a typical year?
Erin Kane: Yes. So, when we moved it, it’s subtle, Vincent. It’s about two weeks. So when we think about September into October, there were some customer accommodations that were – that we manage because we do impact folks like our CO2 customers and others. So, AS mix shouldn’t really change significantly, but it’s just a matter of just lining this thing up, and it’s a modest move.
Vincent Anderson: Got you. Okay, that makes sense. And then just last one. Since you brought up your recycled nylon again, I wanted to maybe just touch base on how you’re thinking about the commercial strategy there. If it’s something you think you can basically place into a nice long-term supply agreement at attractive margins, or is this going to have to be a bit more nimble just based on how much demand there is for recycled nylon today?
Erin Kane: Yes. So I think it’s probably going to be a bit of a mix as we move forward. Certainly we have customers that have been quicker adopters and have kind of layered those into their contracts. But certainly this is a lot of targeted selling with our customers that have strong interest with consumer-facing requests and commitments. And certainly the ISCC PLUS was a significant, I would think, step forward because there were customers in the packaging industry, and to some extent, those in engineering plastics as well that have been requesting this verification and certification as a substantiation of PCR and PIR. Well, that will allow them to now really assess this into their chain. So I think it’s the right step forward. A lot of interest in these types of products, but a lot of work that has to go through the value chain to earn the premiums.
Vincent Anderson: Got you. And can you — can we actually take like one step back and explain from an AdvanSix point of view, how PIR versus PCR works? Just because I only think of you as a virgin nylon producer, and so PIR makes sense. But I’m not entirely sure how PCR fits in.
Erin Kane: Yes. So certainly the post-industrial plays in through our asset base, right, and our capturing and recirculation looks. The PCR, by the certification, takes into consideration the materials we bring back from our partners.
Vincent Anderson: So basically wastes from their own manufacturing lines?
Erin Kane: Yes. Anything that lets a lot of this is oligomer recapture and we reincorporate that back into our system from our downstream customers.
Vincent Anderson: That’s very interesting. Okay, I’ll chew on that and maybe we’ll circle back on it next quarter.
Erin Kane: You got it. Thank you.
Vincent Anderson: Thank you.
Operator: Our last question comes from Charles Neivert of Piper Sandler. Go ahead, please.
Charles Neivert: Dealers have had issues in the inventories, not their own, necessarily, but within the chain, and a lot of destocking. And largely, it seems that most of them commented that, that destocking was over with and they could sort of resume a more normal pace of sales. Did you guys run into any major destocking issues over the last few quarters? And if so, have they basically dissipated at this point? Are we done with them? And then going forward, we should see more regular cadence of sales going forward?
Erin Kane: Yes. Our sense is, again, we probably saw a variety of things here, depending on which line of business. I think certainly in nylon, we saw that predominantly through last year. And I think we would view that most of that value chain is sorted. And what we’re seeing now is, I think, more typical demand signals that we would expect. In intermediates where we play, I think likewise there as well, with the outstanding consideration of ag chemicals, because where our materials get pulled through is in combination with other materials and until kind of those downstream materials are pulled through. But I would say we’re — we believe we’re really kind of mostly done. And then ag, the goal there, as you well know, is to make sure that we have the inventories as low as possible at the end of the season, and that allows us for a strong reset into the fall, which would be our intent and expectation for this year as well.
Charles Neivert: That really clears it. And then whatever I missed on the last go around, the perils of working at home sometimes.
Erin Kane: Okay. Well, if there’s anything we need to follow…
Charles Neivert: You guys could come back to me on…
Erin Kane: Yes. If there’s anything that we need to follow up on, I tried my best to ensure that I tackled all three parts of your question, but I think we might have had some connectivity issues. But if there’s anything that we can help to clarify, certainly reach out.
Charles Neivert: Okay. Very good. So I’ll clear up anything I have missed. Thank you.
Erin Kane: Perfect. You bet.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Erin Kane for any closing remarks.
Erin Kane: Thank you all again for your time and interest this morning. We hope this call and discussion that clarify the operational and commercial tailwinds that are constructive and supportive to our anticipated rebound in earnings and cash flow performance as we head into the second quarter. We feel very good about the strategies we’ve implemented and our continued investments to support expectations for AdvanSix’s long-term sustainable performance. I am confident this year presents a great opportunity to further maximize our value to shareholders. With that, we look forward to speaking with you again next quarter. Stay safe and be well.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
