Ascent Industries Reports Fourth Quarter and Full Year 2023 Results
- Debt elimination through asset sales and new leadership focus on profitable growth and value maximization.
- Net sales decreased by 23.9% in Q4 and 26.3% for the full year.
- Gross profit margin declined significantly, with a net loss of $7.5 million in Q4 and $34.2 million for the full year.
- Adjusted EBITDA declined in both Q4 and the full year.
- A $55 million asset sale was used to clear remaining debt, positioning the company favorably for 2024.
- Significant decline in gross profit margin and net sales.
- Net loss of $34.2 million for the full year.
- Adjusted EBITDA decline in both Q4 and the full year.
Insights
The financial results disclosed by Ascent Industries Co. reflect a significant downturn in performance year-over-year. The reported net loss and decrease in gross profit margins are indicative of operational challenges and market pressures. Specifically, the contraction in Adjusted EBITDA margins from 9.8% to (8.2)% suggests a substantial impact on the company's operational efficiency and profitability.
In analyzing these results, it's important to consider the broader industry context. The decline in net sales could be reflective of macroeconomic conditions such as decreased demand or increased competition. The sale of Specialty Pipe & Tube and the subsequent debt elimination can be seen as a strategic move to improve liquidity and reduce financial risk. However, this also raises questions about the company's future revenue streams and its ability to generate profit from its remaining operations.
Investors may view the repurchase of shares as a signal of management's confidence in the company's intrinsic value, despite the poor financial performance. However, it's important to monitor whether this confidence translates into a turnaround strategy that can reverse the negative trends observed in the reported financials.
The reported decrease in net sales and gross profit margin is a clear indicator of market headwinds faced by Ascent Industries. The industry-wide destocking trends mentioned in the report could be a result of shifts in the supply chain, potentially caused by overproduction or a reduction in end-user demand. Such trends can have a cascading effect on companies like Ascent, which operate in the specialty chemicals and industrial tubular products sectors, both of which are sensitive to industrial demand cycles.
It is also important to consider the competitive landscape and how Ascent's product mix is positioned within it. The unfavorable product mix mentioned could suggest that Ascent's offerings are not aligning with current market demands or that there are pricing pressures from competitors. The operating losses in both the chemicals and tubular segments raise concerns about the company's market competitiveness and the effectiveness of its current business model.
From a market perspective, the efforts to onboard new customers and improve operational efficiencies will be key to watch. The extent to which these initiatives can offset the negative trends will be critical in assessing Ascent's potential for recovery and growth.
The cessation of operations at the Munhall facility and the sale of Specialty Pipe & Tube are strategic decisions that likely aim to streamline operations and focus on more profitable segments. However, these moves also suggest a significant reorganization within Ascent's operational structure. The impact on production capabilities and the potential loss of customer base associated with these facilities must be carefully evaluated.
Moreover, the industrial tubular products and specialty chemicals sectors are heavily influenced by global economic trends, regulatory changes and technological advancements. The company's ability to adapt to these changes while managing costs will be important in determining its long-term viability.
Investors and stakeholders should consider the company's strategic plan to drive sustainable earnings growth. The management's focus on operational efficiencies and the drive to maximize value from its tubular segment could be positive if executed effectively. However, the substantial net losses and negative margins reported raise questions about the immediate feasibility of these plans.
Eliminated All Outstanding Debt with Cash Proceeds from the Sale of Specialty Pipe & Tube
New Leadership Focused on Accelerating Profitable Growth and Maximizing Value
Fourth Quarter 2023 Summary1 |
|||
(in millions, except per share and margin) |
Q4 2023 |
Q4 2022 |
Change |
Net Sales |
|
|
(23.9)% |
Gross Profit |
|
|
(143.9)% |
Gross Profit Margin |
(5.2)% |
|
(1,420)bps |
Net (Loss) Income |
|
|
(267.4)% |
Diluted (Loss) Earnings per Share |
|
|
(269.8)% |
Adjusted EBITDA |
|
|
(460.5)% |
Adjusted EBITDA Margin |
(14.4)% |
|
(1,740)bps |
Full Year 2023 Summary1 |
|||
(in millions, except per share and margin) |
2023 |
2022 |
Change |
Net Sales |
|
|
(26.3)% |
Gross Profit |
|
|
(96.5)% |
Gross Profit Margin |
|
|
(1,570)bps |
Net (Loss) Income |
|
|
(294.3)% |
Diluted (Loss) Earnings per share |
|
|
(299.4)% |
Adjusted EBITDA |
|
|
(162.3)% |
Adjusted EBITDA Margin |
(8.2)% |
|
(1,800)bps |
| ____________________________ | ||
1 |
On June 2, 2023, the Board of Directors of Ascent made the decision to permanently cease operations at the Company’s welded pipe and tube facility located in |
|
Management Commentary
“The Ascent team made notable progress towards our long-term strategic goals in 2023, despite continued market headwinds,” said Ascent CEO Bryan Kitchen. “This progress was driven by meaningful initiatives to onboard new customers and unlock operational efficiencies that we expect to bear fruit next year. However, our momentum in the fourth quarter was not sufficient to fully mitigate the adverse effects of industry-wide destocking trends that impacted both business segments. Prior to year-end, Ascent closed on a sale of substantially all of the assets of Specialty Pipe and Tube, generating
“We moved into 2024 with a healthy financial position and a commitment to driving sustainable earnings-growth across the enterprise. This commitment is underscored by purposeful initiatives to recapitalize talent and capabilities, aimed to maximize the value derived from the unique strengths within our tubular segment while simultaneously investing in the growth potential of the specialty chemicals segment. We believe our newly-assembled management team has already begun to make progress towards our long-term goals focused on creating durable shareholder value.”
Fourth Quarter 2023 Financial Results
Net sales from continuing operations were
Gross profit from continuing operations was
Net loss from continuing operations was
Adjusted EBITDA was
Full Year 2023 Financial Results
Net sales from continuing operations were
Gross profit from continuing operations was
Net loss from continuing operations was
Adjusted EBITDA was
Segment Results
Ascent Chemicals – net sales in the fourth quarter of 2023 were
Net sales in 2023 were
Ascent Tubular – net sales from continuing operations in the fourth quarter of 2023 were
Net sales from continuing operations in 2023 was
Liquidity
During the fourth quarter of 2023, Ascent announced the sale of substantially all the assets of Specialty Pipe & Tube for approximately
For the year ended December 31, 2023, the Company repurchased 143,108 shares at an average cost of
Conference Call
Ascent will conduct a conference call today at 5:00 p.m. Eastern time to discuss its results for the fourth quarter and full year ended December 31, 2023.
Ascent management will host the conference call, followed by a question and answer period.
Date: Thursday, March 28, 2024
Time: 5:00 p.m. Eastern time
Live Call Registration Link: Here
Webcast Registration Link: Here
To access the call by phone, please register via the live call registration link above or here and you will be provided with dial-in instructions and details. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.
The conference call will also be broadcast live and available for replay via the webcast registration link above or here. The webcast will be archived for one year in the investor relations section of the Company’s website at www.ascentco.com.
About Ascent Industries Co.
Ascent Industries Co. (Nasdaq: ACNT) is a company that engages in a number of diverse business activities including the production of specialty chemicals and industrial tubular products. For more information about Ascent, please visit its website at www.ascentco.com.
Forward-Looking Statements
This press release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable federal securities laws. All statements that are not historical facts are forward-looking statements. Forward looking statements can be identified through the use of words such as "estimate," "project," "intend," "expect," "believe," "should," "anticipate," "hope," "optimistic," "plan," "outlook," "should," "could," "may" and similar expressions. The forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from historical results or those anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements and to review the risks as set forth in more detail in Ascent Industries Co.’s Securities and Exchange Commission filings, including our Annual Report on Form 10-K, which filings are available from the SEC or on our website. Ascent Industries Co. assumes no obligation to update any forward-looking information included in this release.
Non-GAAP Financial Information
Financial statement information included in this earnings release includes non-GAAP (Generally Accepted Accounting Principles) measures and should be read along with the accompanying tables which provide a reconciliation of non-GAAP measures to GAAP measures.
Adjusted EBITDA is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results to determine the value of a company. An item is excluded in the measure if its periodic value is inconsistent and sufficiently material that not identifying the item would render period comparability less meaningful to the reader or if including the item provides a clearer representation of normalized periodic earnings. The Company excludes in Adjusted EBITDA two categories of items: 1) Base EBITDA components, including: interest expense, income taxes, depreciation and amortization, and 2) Material transaction costs including: goodwill impairment, asset impairment, gain on lease modification, stock-based compensation, non-cash lease cost, acquisition costs and other fees, , shelf registration costs, loss on extinguishment of debt, earn-out adjustments, , retention costs and restructuring & severance costs from net income.
Management believes that these non-GAAP measures are useful because they are key measures used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions as well as allow readers to compare the financial results between periods. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.
Ascent Industries Co. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands, except par value and share data) |
|||||||
|
|
|
|
||||
|
December 31, 2023 |
|
December 31, 2022 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,851 |
|
|
$ |
1,440 |
|
Accounts receivable, net of allowance for credit losses of |
|
26,604 |
|
|
|
33,202 |
|
Inventories |
|
52,306 |
|
|
|
67,671 |
|
Prepaid expenses and other current assets |
|
4,879 |
|
|
|
7,770 |
|
Assets held for sale |
|
2,912 |
|
|
|
380 |
|
Current assets of discontinued operations |
|
861 |
|
|
|
59,912 |
|
Total current assets |
|
89,413 |
|
|
|
170,375 |
|
Property, plant and equipment, net |
|
29,755 |
|
|
|
35,534 |
|
Right-of-use assets, operating leases, net |
|
27,784 |
|
|
|
29,142 |
|
Goodwill |
|
— |
|
|
|
11,389 |
|
Intangible assets, net |
|
8,496 |
|
|
|
10,001 |
|
Deferred income taxes |
|
5,808 |
|
|
|
1,353 |
|
Deferred charges, net |
|
104 |
|
|
|
203 |
|
Other non-current assets, net |
|
1,935 |
|
|
|
1,862 |
|
Long-term assets of discontinued operations |
|
— |
|
|
|
9,184 |
|
Total assets |
$ |
163,295 |
|
|
$ |
269,043 |
|
|
|
|
|
||||
Liabilities and Shareholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
16,416 |
|
|
$ |
14,114 |
|
Accrued expenses and other current liabilities |
|
5,108 |
|
|
|
5,509 |
|
Current portion of note payable |
|
360 |
|
|
|
387 |
|
Current portion of long-term debt |
|
— |
|
|
|
2,464 |
|
Current portion of operating lease liabilities |
|
1,140 |
|
|
|
1,015 |
|
Current portion of finance lease liabilities |
|
292 |
|
|
|
280 |
|
Current liabilities of discontinued operations |
|
1,473 |
|
|
|
9,709 |
|
Total current liabilities |
|
24,789 |
|
|
|
33,478 |
|
Long-term debt |
|
— |
|
|
|
69,085 |
|
Long-term portion of operating lease liabilities |
|
29,729 |
|
|
|
30,869 |
|
Long-term portion of finance lease liabilities |
|
1,307 |
|
|
|
1,242 |
|
Other long-term liabilities |
|
60 |
|
|
|
68 |
|
Long-term liabilities of discontinued operations |
|
— |
|
|
|
42 |
|
Total non-current liabilities |
|
31,096 |
|
|
|
101,306 |
|
Total liabilities |
$ |
55,885 |
|
|
$ |
134,784 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Shareholders' equity: |
|
|
|
||||
Common stock, par value |
$ |
11,085 |
|
|
$ |
11,085 |
|
Capital in excess of par value |
|
47,333 |
|
|
|
47,021 |
|
Retained earnings |
|
58,517 |
|
|
|
85,146 |
|
|
|
116,935 |
|
|
|
143,252 |
|
Less: cost of common stock in treasury - 990,282 and 924,504 shares, respectively |
|
(9,525 |
) |
|
|
(8,993 |
) |
Total shareholders' equity |
|
107,410 |
|
|
|
134,259 |
|
Total liabilities and shareholders' equity |
$ |
163,295 |
|
|
$ |
269,043 |
|
Note: The condensed consolidated balance sheets at December 31, 2023 and 2022 have been derived from the audited consolidated financial statements at that date. |
|||||||
Ascent Industries Co. |
|||||||||||||||
Condensed Consolidated Statements of Income (Loss) - Comparative Analysis (Unaudited) |
|||||||||||||||
($ in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net sales |
|
|
|
|
|
|
|
||||||||
Tubular Products |
$ |
22,765 |
|
|
$ |
30,697 |
|
|
$ |
109,513 |
|
|
$ |
154,040 |
|
Specialty Chemicals |
|
18,451 |
|
|
|
23,473 |
|
|
|
83,616 |
|
|
|
107,542 |
|
All Other |
|
— |
|
|
|
10 |
|
|
|
50 |
|
|
|
411 |
|
|
|
41,216 |
|
|
|
54,180 |
|
|
|
193,179 |
|
|
|
261,993 |
|
Operating income (loss) from continuing operations |
|
|
|
|
|
|
|||||||||
Tubular Products |
|
(3,995 |
) |
|
|
1,232 |
|
|
|
(11,210 |
) |
|
|
22,182 |
|
Specialty Chemicals |
|
(1,623 |
) |
|
|
860 |
|
|
|
(12,558 |
) |
|
|
6,971 |
|
All Other |
|
(116 |
) |
|
|
(175 |
) |
|
|
(801 |
) |
|
|
(508 |
) |
|
|
|
|
|
|
|
|
||||||||
Corporate |
|
|
|
|
|
|
|
||||||||
Unallocated corporate expenses |
|
(2,704 |
) |
|
|
(2,761 |
) |
|
|
(12,018 |
) |
|
|
(12,997 |
) |
Acquisition costs and other |
|
(569 |
) |
|
|
(266 |
) |
|
|
(843 |
) |
|
|
(1,105 |
) |
Total Corporate |
|
(3,273 |
) |
|
|
(3,027 |
) |
|
|
(12,861 |
) |
|
|
(14,102 |
) |
Operating (loss) income |
|
(9,007 |
) |
|
|
(1,110 |
) |
|
|
(37,430 |
) |
|
|
14,543 |
|
Interest expense |
|
1,021 |
|
|
|
1,104 |
|
|
|
4,238 |
|
|
|
2,742 |
|
Other, net |
|
(249 |
) |
|
|
(34 |
) |
|
|
(593 |
) |
|
|
(209 |
) |
(Loss) income from continuing operations before income taxes |
|
(9,779 |
) |
|
|
(2,180 |
) |
|
|
(41,075 |
) |
|
|
12,010 |
|
Income tax benefit |
|
(2,244 |
) |
|
|
(6,681 |
) |
|
|
(6,924 |
) |
|
|
(5,568 |
) |
(Loss) income from continuing operations |
|
(7,535 |
) |
|
|
4,501 |
|
|
|
(34,151 |
) |
|
|
17,578 |
|
Income (loss) from discontinued operations, net of tax |
|
18,674 |
|
|
|
(4,374 |
) |
|
|
7,522 |
|
|
|
4,488 |
|
Net income (loss) |
$ |
11,139 |
|
|
$ |
127 |
|
|
$ |
(26,629 |
) |
|
$ |
22,066 |
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per common share from continuing operations |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.75 |
) |
|
$ |
0.44 |
|
|
$ |
(3.37 |
) |
|
$ |
1.72 |
|
Diluted |
$ |
(0.73 |
) |
|
$ |
0.43 |
|
|
$ |
(3.37 |
) |
|
$ |
1.69 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share from discontinued operations |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.85 |
|
|
$ |
(0.43 |
) |
|
$ |
0.74 |
|
|
$ |
0.44 |
|
Diluted |
$ |
1.80 |
|
|
$ |
(0.42 |
) |
|
$ |
0.74 |
|
|
$ |
0.43 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.10 |
|
|
$ |
0.01 |
|
|
$ |
(2.63 |
) |
|
$ |
2.16 |
|
Diluted |
$ |
1.07 |
|
|
$ |
0.01 |
|
|
$ |
(2.63 |
) |
|
$ |
2.12 |
|
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
10,107 |
|
|
|
10,213 |
|
|
|
10,140 |
|
|
|
10,230 |
|
Diluted |
|
10,374 |
|
|
|
10,416 |
|
|
|
10,140 |
|
|
|
10,410 |
|
|
|
|
|
|
|
|
|
||||||||
Other data: |
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA1 |
$ |
(5,941 |
) |
|
$ |
1,648 |
|
|
$ |
(15,934 |
) |
|
$ |
25,590 |
|
1 |
The term Adjusted EBITDA is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results to determine the value of a company. An item is excluded in the measure if its periodic value is inconsistent and sufficiently material that not identifying the item would render period comparability less meaningful to the reader or if including the item provides a clearer representation of normalized periodic earnings. The Company excludes in Adjusted EBITDA two categories of items: 1) Base EBITDA components, including: interest expense, income taxes, depreciation and amortization, and 2) Material transaction costs including: goodwill impairment, asset impairment, gain on lease modification, stock-based compensation, non-cash lease cost, acquisition costs and other fees, loss on extinguishment of debt, earn-out adjustments, retention costs and restructuring & severance costs from net income. For a reconciliation of this non-GAAP measure to the most comparable GAAP equivalent, refer to the Reconciliation of Net Income (Loss) to Adjusted EBITDA. |
|
Ascent Industries Co. |
|||||||
Consolidated Statements of Cash Flows |
|||||||
($ in thousands) |
|||||||
|
Year Ended December 31, |
||||||
|
2023 |
|
2022 |
||||
Operating activities |
|
|
|
||||
Net (loss) income |
$ |
(26,629 |
) |
|
$ |
22,066 |
|
Net income from discontinued operations, net of tax |
|
7,522 |
|
|
|
4,488 |
|
Net (loss) income from continuing operations |
|
(34,151 |
) |
|
|
17,578 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
||||
Depreciation expense |
|
6,161 |
|
|
|
6,421 |
|
Amortization expense |
|
1,505 |
|
|
|
1,853 |
|
Amortization of debt issuance costs |
|
99 |
|
|
|
99 |
|
Goodwill impairment |
|
11,389 |
|
|
|
— |
|
Deferred income taxes |
|
(6,924 |
) |
|
|
(5,568 |
) |
Payments of earn-out liabilities in excess of acquisition date fair value |
|
— |
|
|
|
(372 |
) |
Provision for losses on accounts receivable |
|
(180 |
) |
|
|
478 |
|
Provision for losses on inventories |
|
3,318 |
|
|
|
2,615 |
|
Loss (gain) on disposal of property, plant and equipment |
|
246 |
|
|
|
(18 |
) |
Non-cash lease expense |
|
242 |
|
|
|
414 |
|
Issuance of treasury stock for director fees |
|
— |
|
|
|
364 |
|
Stock-based compensation expense |
|
1,023 |
|
|
|
1,355 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
6,778 |
|
|
|
(264 |
) |
Inventories |
|
12,245 |
|
|
|
(13,685 |
) |
Other assets and liabilities |
|
515 |
|
|
|
(211 |
) |
Accounts payable |
|
1,650 |
|
|
|
(6,269 |
) |
Accounts payable - related parties |
|
— |
|
|
|
(2 |
) |
Accrued expenses |
|
(401 |
) |
|
|
(2,127 |
) |
Accrued income taxes |
|
3,129 |
|
|
|
(7,923 |
) |
Net cash provided by (used in) operating activities - continuing operations |
|
6,644 |
|
|
|
(5,262 |
) |
Net cash provided by operating activities - discontinued operations |
|
16,434 |
|
|
|
10,839 |
|
Net cash provided by operating activities |
|
23,078 |
|
|
|
5,577 |
|
Investing activities |
|
|
|
||||
Purchases of property, plant and equipment |
|
(2,885 |
) |
|
|
(3,394 |
) |
Proceeds from disposal of property, plant and equipment |
|
— |
|
|
|
99 |
|
Net cash used in investing activities - continuing operations |
|
(2,885 |
) |
|
|
(3,295 |
) |
Net cash provided by (used in) investing activities - discontinued operations |
|
53,386 |
|
|
|
(1,680 |
) |
Net cash provided by (used in) investing activities |
|
50,501 |
|
|
|
(4,975 |
) |
Financing activities |
|
|
|
||||
Borrowings from long-term debt |
|
256,606 |
|
|
|
443,363 |
|
Proceeds from note payable |
|
900 |
|
|
|
967 |
|
Proceeds from the exercise of stock options |
|
— |
|
|
|
175 |
|
Payments on long-term debt |
|
(328,155 |
) |
|
|
(442,206 |
) |
Payments on note payable |
|
(928 |
) |
|
|
(580 |
) |
Principal payments on finance lease obligations |
|
(305 |
) |
|
|
(266 |
) |
Payments on earn-out liabilities |
|
— |
|
|
|
(484 |
) |
Repurchase of common stock |
|
(1,287 |
) |
|
|
(1,343 |
) |
Net cash used in financing activities - continuing operations |
|
(73,169 |
) |
|
|
(374 |
) |
Net cash used in financing activities - discontinued operations |
|
— |
|
|
|
(808 |
) |
Net cash used in financing activities |
|
(73,169 |
) |
|
|
(1,182 |
) |
Increase (decrease) in cash and cash equivalents |
|
410 |
|
|
|
(580 |
) |
Less: Cash and cash equivalents of discontinued operations |
|
— |
|
|
|
4 |
|
Cash and cash equivalents, beginning of period |
|
1,441 |
|
|
|
2,017 |
|
Cash and cash equivalents, end of period |
$ |
1,851 |
|
|
$ |
1,441 |
|
Ascent Industries Co. |
|||||||||||||||
Non-GAAP Financial Measures Reconciliation |
|||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited) |
|||||||||||||||
($ in thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
($ in thousands) |
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Consolidated |
|
|
|
|
|
|
|
||||||||
Net (loss) income from continuing operations |
$ |
(7,535 |
) |
|
$ |
4,501 |
|
|
$ |
(34,151 |
) |
|
$ |
17,578 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
1,021 |
|
|
|
1,104 |
|
|
|
4,238 |
|
|
|
2,742 |
|
Income taxes |
|
(2,244 |
) |
|
|
(6,681 |
) |
|
|
(6,924 |
) |
|
|
(5,568 |
) |
Depreciation |
|
1,527 |
|
|
|
1,579 |
|
|
|
6,161 |
|
|
|
6,421 |
|
Amortization |
|
376 |
|
|
|
429 |
|
|
|
1,505 |
|
|
|
1,853 |
|
EBITDA |
|
(6,855 |
) |
|
|
932 |
|
|
|
(29,171 |
) |
|
|
23,026 |
|
Acquisition costs and other |
|
579 |
|
|
|
266 |
|
|
|
856 |
|
|
|
1,104 |
|
Shelf registration costs |
|
— |
|
|
|
12 |
|
|
|
— |
|
|
|
12 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
11,389 |
|
|
|
— |
|
Gain on lease modification |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Stock-based compensation |
|
224 |
|
|
|
283 |
|
|
|
594 |
|
|
|
962 |
|
Non-cash lease expense |
|
52 |
|
|
|
91 |
|
|
|
242 |
|
|
|
414 |
|
Retention expense |
|
20 |
|
|
|
— |
|
|
|
26 |
|
|
|
— |
|
Restructuring and severance costs |
|
39 |
|
|
|
64 |
|
|
|
130 |
|
|
|
74 |
|
Adjusted EBITDA |
$ |
(5,941 |
) |
|
$ |
1,648 |
|
|
$ |
(15,934 |
) |
|
$ |
25,590 |
|
% sales |
|
(14.4 |
)% |
|
|
3.0 |
% |
|
|
(8.2 |
)% |
|
|
9.8 |
% |
Tubular Products |
|
|
|
|
|
|
|
||||||||
Net (loss) income from continuing operations |
$ |
(3,995 |
) |
|
$ |
1,232 |
|
|
$ |
(11,210 |
) |
|
$ |
22,182 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation expense |
|
557 |
|
|
|
609 |
|
|
|
2,274 |
|
|
|
2,500 |
|
Amortization expense |
|
217 |
|
|
|
238 |
|
|
|
871 |
|
|
|
951 |
|
EBITDA |
|
(3,221 |
) |
|
|
2,079 |
|
|
|
(8,065 |
) |
|
|
25,633 |
|
Stock-based compensation |
|
74 |
|
|
|
11 |
|
|
|
58 |
|
|
|
46 |
|
Non-cash lease expense |
|
25 |
|
|
|
— |
|
|
|
118 |
|
|
|
— |
|
Retention expense |
|
8 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
Restructuring and severance costs |
|
— |
|
|
|
20 |
|
|
|
84 |
|
|
|
20 |
|
Tubular Products Adjusted EBITDA |
$ |
(3,114 |
) |
|
$ |
2,110 |
|
|
$ |
(7,797 |
) |
|
$ |
25,699 |
|
% segment sales |
|
(13.7 |
)% |
|
|
6.9 |
% |
|
|
(7.1 |
)% |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Specialty Chemicals |
|
|
|
|
|
|
|
||||||||
Net (loss) income |
$ |
(1,644 |
) |
|
$ |
852 |
|
|
$ |
(12,619 |
) |
|
$ |
6,935 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
22 |
|
|
|
9 |
|
|
|
74 |
|
|
|
36 |
|
Depreciation expense |
|
948 |
|
|
|
949 |
|
|
|
3,798 |
|
|
|
3,846 |
|
Amortization expense |
|
158 |
|
|
|
191 |
|
|
|
634 |
|
|
|
903 |
|
EBITDA |
|
(516 |
) |
|
|
2,001 |
|
|
|
(8,113 |
) |
|
|
11,720 |
|
Acquisition costs and other |
|
10 |
|
|
|
— |
|
|
|
12 |
|
|
|
— |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
11,389 |
|
|
|
— |
|
Stock-based compensation |
|
21 |
|
|
|
12 |
|
|
|
8 |
|
|
|
41 |
|
Non-cash lease expense |
|
19 |
|
|
|
— |
|
|
|
88 |
|
|
|
2 |
|
Restructuring and severance costs |
|
40 |
|
|
|
8 |
|
|
|
40 |
|
|
|
8 |
|
Specialty Chemicals Adjusted EBITDA |
$ |
(426 |
) |
|
$ |
2,021 |
|
|
$ |
3,424 |
|
|
$ |
11,771 |
|
% segment sales |
|
(2.3 |
)% |
|
|
8.6 |
% |
|
|
4.1 |
% |
|
|
10.9 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240328924168/en/
Company Contact
Ryan Kavalauskas
Chief Financial Officer
1-630-884-9181
Investor Relations
Cody Slach and Cody Cree
Gateway Group, Inc.
1-949-574-3860
ACNT@gateway-grp.com
Source: Ascent Industries Co.
FAQ
What was the percentage change in net sales for Ascent in Q4 2023 compared to Q4 2022?
How much was the net loss for Ascent in Q4 2023?
What was the purpose of the $55 million asset sale by Ascent?
What was the adjusted EBITDA margin for Ascent in the full year 2023?
How did Ascent's gross profit margin change from 2022 to 2023?
What was the operating loss for Ascent Tubular in Q4 2023?
When did Ascent close on the sale of substantially all the assets of Specialty Pipe & Tube?
