Ascent Industries Reports Fourth Quarter and Full Year 2024 Results
Ascent Industries (ACNT) reported its Q4 and full-year 2024 results, demonstrating significant earnings growth despite muted sales. Q4 net sales were $40.7M, slightly down from $41.2M in Q4 2023, while gross profit increased 438% to $7.3M. Full-year 2024 net sales decreased to $177.9M from $193.2M in 2023.
The company achieved four consecutive quarters of adjusted EBITDA margin expansion through cost management and operational efficiencies. Q4 adjusted EBITDA improved to $2.6M compared to $(5.9)M in Q4 2023. For the full year, adjusted EBITDA reached $4.0M versus $(15.9)M in 2023.
Notably, Ascent ended 2024 debt-free with $16.1M in cash, generated nearly $15M in free cash flow, and maintained $47.4M in credit facility availability. The company also repurchased 101,263 shares at an average cost of $10.21 per share, totaling approximately $1.0M.
Ascent Industries (ACNT) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, dimostrando una significativa crescita degli utili nonostante vendite contenute. Le vendite nette del quarto trimestre sono state di 40,7 milioni di dollari, leggermente inferiori rispetto ai 41,2 milioni di dollari del quarto trimestre 2023, mentre il profitto lordo è aumentato del 438% a 7,3 milioni di dollari. Le vendite nette per l'intero anno 2024 sono diminuite a 177,9 milioni di dollari rispetto ai 193,2 milioni di dollari del 2023.
L'azienda ha raggiunto quattro trimestri consecutivi di espansione del margine EBITDA rettificato grazie alla gestione dei costi e all'efficienza operativa. L'EBITDA rettificato del quarto trimestre è migliorato a 2,6 milioni di dollari rispetto a (5,9) milioni di dollari nel quarto trimestre 2023. Per l'intero anno, l'EBITDA rettificato ha raggiunto 4,0 milioni di dollari rispetto a (15,9) milioni di dollari nel 2023.
È importante notare che Ascent ha concluso il 2024 senza debiti e con 16,1 milioni di dollari in contante, ha generato quasi 15 milioni di dollari di flusso di cassa libero e ha mantenuto 47,4 milioni di dollari di disponibilità nella linea di credito. L'azienda ha anche riacquistato 101.263 azioni a un costo medio di 10,21 dollari per azione, per un totale di circa 1,0 milione di dollari.
Ascent Industries (ACNT) reportó sus resultados del cuarto trimestre y del año completo 2024, demostrando un crecimiento significativo en las ganancias a pesar de ventas moderadas. Las ventas netas del cuarto trimestre fueron de 40,7 millones de dólares, ligeramente inferiores a los 41,2 millones de dólares del cuarto trimestre de 2023, mientras que la ganancia bruta aumentó un 438% a 7,3 millones de dólares. Las ventas netas del año completo 2024 disminuyeron a 177,9 millones de dólares desde 193,2 millones de dólares en 2023.
La compañía logró cuatro trimestres consecutivos de expansión del margen EBITDA ajustado a través de la gestión de costos y eficiencias operativas. El EBITDA ajustado del cuarto trimestre mejoró a 2,6 millones de dólares en comparación con (5,9) millones de dólares en el cuarto trimestre de 2023. Para el año completo, el EBITDA ajustado alcanzó 4,0 millones de dólares frente a (15,9) millones de dólares en 2023.
Es notable que Ascent terminó 2024 sin deudas y con 16,1 millones de dólares en efectivo, generando casi 15 millones de dólares en flujo de caja libre y manteniendo 47,4 millones de dólares en disponibilidad de línea de crédito. La compañía también recompró 101,263 acciones a un costo promedio de 10,21 dólares por acción, totalizando aproximadamente 1,0 millón de dólares.
Ascent Industries (ACNT)는 2024년 4분기 및 연간 실적을 보고하며, 판매가 부진했음에도 불구하고 상당한 수익 성장을 보여주었습니다. 4분기 순매출은 4070만 달러로, 2023년 4분기의 4120만 달러에서 소폭 감소했으며, 총 이익은 438% 증가하여 730만 달러에 달했습니다. 2024년 전체 순매출은 2023년의 193억 달러에서 177억 달러로 감소했습니다.
회사는 비용 관리와 운영 효율성을 통해 조정된 EBITDA 마진을 4분기 연속으로 확장했습니다. 4분기 조정된 EBITDA는 260만 달러로 개선되었으며, 이는 2023년 4분기의 (590만 달러)와 비교됩니다. 전체 연도에 대한 조정된 EBITDA는 400만 달러에 도달했으며, 이는 2023년의 (1590만 달러)와 비교됩니다.
특히 Ascent는 2024년을 부채 없이 1610만 달러의 현금을 보유한 상태로 마감했습니다, 거의 1500만 달러의 자유 현금 흐름을 생성했으며, 4740만 달러의 신용 한도를 유지했습니다. 또한 회사는 주당 평균 10.21달러에 101,263주를 재매입하여 총 약 100만 달러에 달했습니다.
Ascent Industries (ACNT) a annoncé ses résultats du quatrième trimestre et de l'année 2024, démontrant une croissance significative des bénéfices malgré des ventes modérées. Les ventes nettes du quatrième trimestre se sont élevées à 40,7 millions de dollars, légèrement en baisse par rapport à 41,2 millions de dollars au quatrième trimestre 2023, tandis que le bénéfice brut a augmenté de 438 % pour atteindre 7,3 millions de dollars. Les ventes nettes pour l'année 2024 ont diminué à 177,9 millions de dollars par rapport à 193,2 millions de dollars en 2023.
L'entreprise a réalisé quatre trimestres consécutifs d'expansion de la marge EBITDA ajustée grâce à la gestion des coûts et à l'efficacité opérationnelle. L'EBITDA ajusté du quatrième trimestre a progressé à 2,6 millions de dollars contre (5,9) millions de dollars au quatrième trimestre 2023. Pour l'année entière, l'EBITDA ajusté a atteint 4,0 millions de dollars contre (15,9) millions de dollars en 2023.
Il est à noter qu'Ascent a terminé 2024 sans dettes et avec 16,1 millions de dollars en liquidités, a généré près de 15 millions de dollars de flux de trésorerie libre et a maintenu 47,4 millions de dollars de disponibilité de ligne de crédit. L'entreprise a également racheté 101 263 actions à un coût moyen de 10,21 dollars par action, totalisant environ 1,0 million de dollars.
Ascent Industries (ACNT) hat seine Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 veröffentlicht und dabei ein signifikantes Wachstum der Erträge trotz gedämpfter Verkäufe gezeigt. Die Nettoumsätze im 4. Quartal betrugen 40,7 Millionen Dollar, leicht rückläufig von 41,2 Millionen Dollar im 4. Quartal 2023, während der Bruttogewinn um 438% auf 7,3 Millionen Dollar anstieg. Die Nettoumsätze für das gesamte Jahr 2024 sanken auf 177,9 Millionen Dollar von 193,2 Millionen Dollar im Jahr 2023.
Das Unternehmen erzielte vier aufeinanderfolgende Quartale mit einer Expansion der bereinigten EBITDA-Marge durch Kostenmanagement und operative Effizienz. Das bereinigte EBITDA im 4. Quartal verbesserte sich auf 2,6 Millionen Dollar im Vergleich zu (5,9) Millionen Dollar im 4. Quartal 2023. Für das gesamte Jahr erreichte das bereinigte EBITDA 4,0 Millionen Dollar gegenüber (15,9) Millionen Dollar im Jahr 2023.
Bemerkenswert ist, dass Ascent 2024 ohne Schulden und mit 16,1 Millionen Dollar in bar abgeschlossen hat, fast 15 Millionen Dollar an freiem Cashflow generiert hat und 47,4 Millionen Dollar an Kreditlinienverfügbarkeit aufrechterhalten hat. Das Unternehmen hat außerdem 101.263 Aktien zu einem durchschnittlichen Preis von 10,21 Dollar pro Aktie zurückgekauft, was insgesamt etwa 1,0 Millionen Dollar ausmacht.
- 438% increase in Q4 gross profit to $7.3M
- Q4 adjusted EBITDA improved to $2.6M from -$5.9M
- Debt-free status with $16.1M cash balance
- Generated $15M free cash flow in 2024
- $47.4M available credit facility
- Significant margin expansion across both segments
- Full-year net sales declined 7.9% to $177.9M
- Net loss of $11.2M for full-year 2024
- $6.2M non-cash tax charge for deferred tax assets
- Muted sales volume and demand across segments
Insights
Ascent Industries' Q4 and FY 2024 results highlight a successful operational turnaround despite persistent demand weakness. The company delivered four consecutive quarters of adjusted EBITDA margin expansion while building a $16.1 million cash position and operating debt-free.
The financial transformation is impressive - Q4 gross margins jumped to
Both segments showed remarkable improvement. The Chemicals segment's Q4 adjusted EBITDA margin reached
These gains were achieved through aggressive cost management, improved sourcing, and product line optimization - not through revenue growth, as net sales actually declined by
With
Ascent Industries has executed a textbook operational turnaround in 2024, successfully converting lower revenues into higher profits through strategic process reengineering. The company's ability to expand margins while sales declined demonstrates exceptional operational discipline.
The most telling metric is the dramatic improvement in gross profit - from a
First, the company optimized its product mix, likely eliminating low-margin offerings that were consuming disproportionate resources. Second, they implemented strategic sourcing improvements that reduced input costs. Third, they executed labor and material cost reductions without sacrificing output quality.
The segment-level data reveals the operational improvements were company-wide rather than isolated. The Chemicals segment's adjusted EBITDA margin expanded by 370 basis points for the full year, while the Tubular segment overcame significant challenges to achieve positive EBITDA margins.
Management's reference to "stabilizing the operations of both segments" suggests they've eliminated the volatility that previously plagued manufacturing efficiency. The consistent quarterly improvement in margins indicates these aren't one-time gains but rather sustainable operational enhancements.
Looking ahead, the streamlined cost structure positions Ascent to convert any revenue increases into substantial profit growth, creating strong operational leverage. With operations now stabilized, management can shift focus from firefighting to strategic growth initiatives.
Ascent Finishes the Year with Strong Earnings Growth, a Healthy Cash Balance, Debt Free, and Nearly
Fourth Quarter 2024 Summary1 |
|||
(in millions, except per share and margin) |
Q4 2024 |
Q4 2023 |
Change |
Net Sales |
|
|
(1.3)% |
Gross Profit |
|
|
|
Gross Profit Margin |
|
(5.2)% |
2310 bps |
Net Income (Loss) |
|
|
|
Diluted Earnings (Loss) per Share |
|
|
|
Adjusted EBITDA |
|
|
|
Adjusted EBITDA Margin |
|
(14.4)% |
2070 bps |
Full Year 2024 Summary1 |
|||
(in millions, except per share and margin) |
2024 |
2023 |
Change |
Net Sales |
|
|
(7.9)% |
Gross Profit |
|
|
|
Gross Profit Margin |
|
|
1160 bps |
Net (Loss) |
|
|
|
Diluted (Loss) per share |
|
|
|
Adjusted EBITDA |
|
|
|
Adjusted EBITDA Margin |
|
(8.2)% |
1050 bps |
| ____________________________ |
1 On December 22, 2023, the Company closed on a transaction to sell substantially all of the assets of Specialty Pipe & Tube (“SPT”). As a result, financial results from SPT have been categorized into discontinued operations. |
Management Commentary
“We closed out the year generating strong earnings growth and our fourth consecutive quarter of adjusted EBITDA margin expansion, primarily driven by the strategic self-improvement initiatives we implemented at the beginning of the year,” said Ascent CEO Bryan Kitchen. “As we expected, sales volume and overall demand in the fourth quarter remained muted across both segments. However, through aggressive cost management, product line optimization, and better operational efficiencies, we were still able to expand our gross margin on a lower sales base and deliver an improved bottom line.
“Overall, we’re proud of the transformation efforts we’ve implemented and executed throughout 2024. Through the intentional recapitalization of SG&A combined with stabilizing the operations of both segments, we have established a stronger foundation to build off of in 2025. We are entering the new year with positive momentum on our side as we are seeing more favorable post-election market dynamics and a growing pipeline of opportunities that we believe can deliver organic growth in the coming quarters. We remain on track towards our goal of delivering a more predictable, reliable, and profitable business model that creates durable value for our shareholders.”
Fourth Quarter 2024 Financial Results
Net sales from continuing operations were
Gross profit from continuing operations increased
Net income from continuing operations improved to
Adjusted EBITDA increased significantly to
Full Year 2024 Financial Results
Net sales from continuing operations were
Gross profit from continuing operations improved significantly to
Net loss from continuing operations was
Adjusted EBITDA increased significantly to
Segment Results
Ascent Chemicals – net sales in the fourth quarter of 2024 were
Net sales in 2024 were
Ascent Tubular – net sales from continuing operations in the fourth quarter of 2024 were
Net sales from continuing operations in 2024 were
Liquidity
As of December 31, 2024, the Company had
For the year ended December 31, 2024, the Company repurchased 101,263 shares at an average cost of
Conference Call
Ascent will hold a conference call today at 5:00 p.m. Eastern time to discuss its financial results for the fourth quarter and full year ended December 31, 2024.
Ascent management will host the conference call, followed by a question and answer period.
Date: Tuesday, March 4, 2025
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, retention costs and restructuring & severance costs from net income (loss).
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, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
16,108 |
|
|
$ |
1,851 |
|
Accounts receivable, net of allowance for credit losses of |
|
23,880 |
|
|
|
26,604 |
|
Inventories |
|
40,962 |
|
|
|
52,306 |
|
Prepaid expenses and other current assets |
|
2,075 |
|
|
|
4,879 |
|
Assets held for sale |
|
— |
|
|
|
2,912 |
|
Current assets of discontinued operations |
|
46 |
|
|
|
861 |
|
Total current assets |
|
83,071 |
|
|
|
89,413 |
|
Property, plant and equipment, net |
|
25,462 |
|
|
|
29,755 |
|
Right-of-use assets, operating leases, net |
|
28,225 |
|
|
|
27,784 |
|
Intangible assets, net |
|
7,009 |
|
|
|
8,496 |
|
Deferred income taxes |
|
— |
|
|
|
5,808 |
|
Deferred charges, net |
|
309 |
|
|
|
104 |
|
Other non-current assets, net |
|
3,174 |
|
|
|
1,935 |
|
Total assets |
$ |
147,250 |
|
|
$ |
163,295 |
|
|
|
|
|
||||
Liabilities and Shareholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
13,072 |
|
|
$ |
16,416 |
|
Accrued expenses and other current liabilities |
|
5,042 |
|
|
|
5,046 |
|
Deferred revenue |
|
1,360 |
|
|
|
62 |
|
Current portion of note payable |
|
369 |
|
|
|
360 |
|
Current portion of operating lease liabilities |
|
1,513 |
|
|
|
1,140 |
|
Current portion of finance lease liabilities |
|
334 |
|
|
|
292 |
|
Current liabilities of discontinued operations |
|
590 |
|
|
|
1,473 |
|
Total current liabilities |
|
22,280 |
|
|
|
24,789 |
|
Long-term portion of operating lease liabilities |
|
30,039 |
|
|
|
29,729 |
|
Long-term portion of finance lease liabilities |
|
1,015 |
|
|
|
1,307 |
|
Deferred income taxes |
|
320 |
|
|
|
— |
|
Other long-term liabilities |
|
51 |
|
|
|
60 |
|
Total non-current liabilities |
|
31,425 |
|
|
|
31,096 |
|
Total liabilities |
$ |
53,705 |
|
|
$ |
55,885 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Shareholders' equity: |
|
|
|
||||
Common stock, par value |
$ |
11,085 |
|
|
$ |
11,085 |
|
Capital in excess of par value |
|
47,339 |
|
|
|
47,333 |
|
Retained earnings |
|
44,919 |
|
|
|
58,517 |
|
|
|
103,343 |
|
|
|
116,935 |
|
Less: cost of common stock in treasury - 1,012,513 and 990,282 shares, respectively |
|
(9,798 |
) |
|
|
(9,525 |
) |
Total shareholders' equity |
|
93,545 |
|
|
|
107,410 |
|
Total liabilities and shareholders' equity |
$ |
147,250 |
|
|
$ |
163,295 |
|
Note: The condensed consolidated balance sheets at December 31, 2024 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 December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
|
|
|
|
|
|
|
||||||||
Tubular Products |
$ |
22,549 |
|
|
$ |
22,765 |
|
|
$ |
97,108 |
|
|
$ |
109,513 |
|
Specialty Chemicals |
|
18,122 |
|
|
|
18,451 |
|
|
|
80,764 |
|
|
|
83,616 |
|
All Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
|
|
40,671 |
|
|
|
41,216 |
|
|
|
177,872 |
|
|
|
193,179 |
|
Operating income (loss) from continuing operations |
|
|
|
|
|
|
|||||||||
Tubular Products |
|
1,610 |
|
|
|
(3,995 |
) |
|
|
2,650 |
|
|
|
(11,210 |
) |
Specialty Chemicals |
|
1,791 |
|
|
|
(1,623 |
) |
|
|
1,166 |
|
|
|
(12,558 |
) |
All Other |
|
(49 |
) |
|
|
(116 |
) |
|
|
(427 |
) |
|
|
(801 |
) |
|
|
|
|
|
|
|
|
||||||||
Corporate |
|
|
|
|
|
|
|
||||||||
Unallocated corporate expenses |
|
(3,297 |
) |
|
|
(2,704 |
) |
|
|
(8,367 |
) |
|
|
(12,018 |
) |
Acquisition costs and other |
|
(132 |
) |
|
|
(569 |
) |
|
|
(185 |
) |
|
|
(843 |
) |
Gain on lease modification |
|
— |
|
|
|
— |
|
|
|
67 |
|
|
|
— |
|
Total Corporate |
|
(3,429 |
) |
|
|
(3,273 |
) |
|
|
(8,485 |
) |
|
|
(12,861 |
) |
Operating loss |
|
(77 |
) |
|
|
(9,007 |
) |
|
|
(5,096 |
) |
|
|
(37,430 |
) |
Interest expense, net |
|
95 |
|
|
|
1,021 |
|
|
|
418 |
|
|
|
4,238 |
|
Other, net |
|
(145 |
) |
|
|
(249 |
) |
|
|
(448 |
) |
|
|
(593 |
) |
Loss from continuing operations before income taxes |
|
(27 |
) |
|
|
(9,779 |
) |
|
|
(5,066 |
) |
|
|
(41,075 |
) |
Income tax (benefit) provision |
|
(111 |
) |
|
|
(2,244 |
) |
|
|
6,159 |
|
|
|
(6,924 |
) |
Income (loss) from continuing operations |
|
84 |
|
|
|
(7,535 |
) |
|
|
(11,225 |
) |
|
|
(34,151 |
) |
(Loss) income from discontinued operations, net of tax |
|
(1,111 |
) |
|
|
18,674 |
|
|
|
(2,373 |
) |
|
|
7,522 |
|
Net (loss) income |
$ |
(1,027 |
) |
|
$ |
11,139 |
|
|
$ |
(13,598 |
) |
|
$ |
(26,629 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share from continuing operations |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.01 |
|
|
$ |
(0.75 |
) |
|
$ |
(1.11 |
) |
|
$ |
(3.37 |
) |
Diluted |
$ |
0.01 |
|
|
$ |
(0.73 |
) |
|
$ |
(1.11 |
) |
|
$ |
(3.37 |
) |
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per common share from discontinued operations |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.11 |
) |
|
$ |
1.85 |
|
|
$ |
(0.23 |
) |
|
$ |
0.74 |
|
Diluted |
$ |
(0.11 |
) |
|
$ |
1.80 |
|
|
$ |
(0.23 |
) |
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per common share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.10 |
) |
|
$ |
1.10 |
|
|
$ |
(1.34 |
) |
|
$ |
(2.63 |
) |
Diluted |
$ |
(0.10 |
) |
|
$ |
1.07 |
|
|
$ |
(1.34 |
) |
|
$ |
(2.63 |
) |
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
10,090 |
|
|
|
10,107 |
|
|
|
10,106 |
|
|
|
10,140 |
|
Diluted |
|
10,337 |
|
|
|
10,374 |
|
|
|
10,106 |
|
|
|
10,140 |
|
|
|
|
|
|
|
|
|
||||||||
Other data: |
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA1 |
$ |
2,567 |
|
|
$ |
(5,941 |
) |
|
$ |
4,013 |
|
|
$ |
(15,934 |
) |
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, 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, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Operating activities |
|
|
|
||||
Net loss |
$ |
(13,598 |
) |
|
$ |
(26,629 |
) |
(Loss) income from discontinued operations, net of tax |
|
(2,373 |
) |
|
|
7,522 |
|
Net loss from continuing operations |
|
(11,225 |
) |
|
|
(34,151 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation expense |
|
5,936 |
|
|
|
6,161 |
|
Amortization expense |
|
1,488 |
|
|
|
1,505 |
|
Amortization of debt issuance costs |
|
105 |
|
|
|
99 |
|
Goodwill impairment |
|
— |
|
|
|
11,389 |
|
Deferred income taxes |
|
6,159 |
|
|
|
(6,924 |
) |
Reduction of losses on accounts receivable |
|
(118 |
) |
|
|
(180 |
) |
Loss on disposal of property, plant and equipment |
|
517 |
|
|
|
246 |
|
Non-cash lease expense |
|
198 |
|
|
|
242 |
|
Stock-based compensation expense |
|
767 |
|
|
|
1,023 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
2,842 |
|
|
|
6,778 |
|
Inventories |
|
11,344 |
|
|
|
15,563 |
|
Other assets and liabilities |
|
1,187 |
|
|
|
515 |
|
Accounts payable |
|
(3,612 |
) |
|
|
1,650 |
|
Accrued expenses |
|
(66 |
) |
|
|
(401 |
) |
Accrued income taxes |
|
1,485 |
|
|
|
3,129 |
|
Net cash provided by operating activities - continuing operations |
|
17,007 |
|
|
|
6,644 |
|
Net cash (used in) provided by operating activities - discontinued operations |
|
(2,326 |
) |
|
|
16,434 |
|
Net cash provided by operating activities |
|
14,681 |
|
|
|
23,078 |
|
Investing activities |
|
|
|
||||
Purchases of property, plant and equipment |
|
(1,892 |
) |
|
|
(2,885 |
) |
Net cash used in investing activities - continuing operations |
|
(1,892 |
) |
|
|
(2,885 |
) |
Net cash provided by investing activities - discontinued operations |
|
2,797 |
|
|
|
53,386 |
|
Net cash provided by investing activities |
|
905 |
|
|
|
50,501 |
|
Financing activities |
|
|
|
||||
Borrowings from credit facilities |
|
197,898 |
|
|
|
256,606 |
|
Proceeds from note payable |
|
914 |
|
|
|
900 |
|
Payments on credit facilities |
|
(197,898 |
) |
|
|
(328,155 |
) |
Payments on note payable |
|
(906 |
) |
|
|
(928 |
) |
Principal payments on finance lease obligations |
|
(300 |
) |
|
|
(305 |
) |
Repurchase of common stock |
|
(1,037 |
) |
|
|
(1,287 |
) |
Net cash used in financing activities |
|
(1,329 |
) |
|
|
(73,169 |
) |
Increase in cash and cash equivalents |
|
14,257 |
|
|
|
410 |
|
Cash and cash equivalents, beginning of period |
|
1,851 |
|
|
|
1,441 |
|
Cash and cash equivalents, end of period |
$ |
16,108 |
|
|
$ |
1,851 |
|
Ascent Industries Co. Non-GAAP Financial Measures Reconciliation Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited) ($ in thousands) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
($ in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Consolidated |
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations |
$ |
84 |
|
|
$ |
(7,535 |
) |
|
$ |
(11,225 |
) |
|
$ |
(34,151 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
95 |
|
|
|
1,021 |
|
|
|
418 |
|
|
|
4,238 |
|
Income taxes |
|
(111 |
) |
|
|
(2,244 |
) |
|
|
6,159 |
|
|
|
(6,924 |
) |
Depreciation |
|
1,447 |
|
|
|
1,527 |
|
|
|
5,936 |
|
|
|
6,161 |
|
Amortization |
|
372 |
|
|
|
376 |
|
|
|
1,487 |
|
|
|
1,505 |
|
EBITDA |
|
1,887 |
|
|
|
(6,855 |
) |
|
|
2,775 |
|
|
|
(29,171 |
) |
Acquisition costs and other |
|
608 |
|
|
|
579 |
|
|
|
692 |
|
|
|
856 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,389 |
|
Gain on lease modification |
|
— |
|
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
Stock-based compensation |
|
45 |
|
|
|
224 |
|
|
|
204 |
|
|
|
594 |
|
Non-cash lease expense |
|
27 |
|
|
|
52 |
|
|
|
198 |
|
|
|
242 |
|
Retention expense |
|
— |
|
|
|
20 |
|
|
|
3 |
|
|
|
26 |
|
Restructuring and severance costs |
|
— |
|
|
|
39 |
|
|
|
208 |
|
|
|
130 |
|
Adjusted EBITDA |
$ |
2,567 |
|
|
$ |
(5,941 |
) |
|
$ |
4,013 |
|
|
$ |
(15,934 |
) |
% sales |
|
6.3 |
% |
|
|
(14.4 |
)% |
|
|
2.3 |
% |
|
|
(8.2 |
)% |
Specialty Chemicals |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
1,775 |
|
|
$ |
(1,644 |
) |
|
$ |
1,093 |
|
|
$ |
(12,619 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
17 |
|
|
|
22 |
|
|
|
75 |
|
|
|
74 |
|
Depreciation expense |
|
946 |
|
|
|
948 |
|
|
|
3,809 |
|
|
|
3,798 |
|
Amortization expense |
|
174 |
|
|
|
158 |
|
|
|
695 |
|
|
|
634 |
|
EBITDA |
|
2,912 |
|
|
|
(516 |
) |
|
|
5,672 |
|
|
|
(8,113 |
) |
Acquisition costs and other |
|
477 |
|
|
|
10 |
|
|
|
477 |
|
|
|
12 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,389 |
|
Stock-based compensation |
|
— |
|
|
|
21 |
|
|
|
7 |
|
|
|
8 |
|
Non-cash lease expense |
|
9 |
|
|
|
19 |
|
|
|
66 |
|
|
|
88 |
|
Restructuring and severance costs |
|
— |
|
|
|
40 |
|
|
|
110 |
|
|
|
40 |
|
Specialty Chemicals Adjusted EBITDA |
$ |
3,398 |
|
|
$ |
(426 |
) |
|
$ |
6,332 |
|
|
$ |
3,424 |
|
% segment sales |
|
18.7 |
% |
|
|
(2.3 |
)% |
|
|
7.8 |
% |
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
||||||||
Tubular Products |
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations |
$ |
1,609 |
|
|
$ |
(3,995 |
) |
|
$ |
2,649 |
|
|
$ |
(11,210 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Depreciation expense |
|
485 |
|
|
|
557 |
|
|
|
2,052 |
|
|
|
2,274 |
|
Amortization expense |
|
198 |
|
|
|
217 |
|
|
|
792 |
|
|
|
871 |
|
EBITDA |
|
2,293 |
|
|
|
(3,221 |
) |
|
|
5,494 |
|
|
|
(8,065 |
) |
Acquisition costs and other |
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
— |
|
Stock-based compensation |
|
— |
|
|
|
74 |
|
|
|
10 |
|
|
|
58 |
|
Non-cash lease expense |
|
13 |
|
|
|
25 |
|
|
|
88 |
|
|
|
118 |
|
Retention expense |
|
|
|
8 |
|
|
|
— |
|
|
|
8 |
|
||
Restructuring and severance costs |
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
84 |
|
Tubular Products Adjusted EBITDA |
$ |
2,306 |
|
|
$ |
(3,114 |
) |
|
$ |
5,652 |
|
|
$ |
(7,797 |
) |
% segment sales |
|
10.2 |
% |
|
|
(13.7 |
)% |
|
|
5.8 |
% |
|
|
(7.1 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250304998451/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 were Ascent Industries (ACNT) Q4 2024 earnings results?
How much cash did ACNT generate in free cash flow during 2024?
What was ACNT's share repurchase activity in 2024?
How did ACNT's segments perform in Q4 2024?
What is ACNT's current debt and cash position?
