Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Ascent Industries Reports Second Quarter 2024 Results By: Ascent Industries Co. via Business Wire August 06, 2024 at 16:05 PM EDT Ascent Industries Co. (Nasdaq: ACNT) (“Ascent” or the “Company”), an industrials company focused on the production of specialty chemicals and industrial tubular products, is reporting its results for the second quarter ended June 30, 2024. Second Quarter 2024 Summary1 (in millions, except per share and margin) Q2 2024 Q2 2023 Change Net Sales $50.2 $50.4 (0.3)% Gross Profit $5.9 $(0.8) 854.2% Gross Profit Margin 11.7% (1.5)% 1320bps Net Loss $(0.2) $(6.1) 96.8% Diluted Loss per Share $(0.02) $(0.60) 96.7% Adjusted EBITDA $2.1 $(4.8) 144.1% Adjusted EBITDA Margin 4.2% (9.4)% 1360bps _________________________ 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 “Our stabilization efforts and aggressive self-help have started to yield tangible results in Q2 2024, despite continued soft market conditions,” said Ascent CEO Bryan Kitchen. “Our relentless efforts to reduce costs, improve strategic sourcing and optimize our product mix have led to a significant year-over-year improvement in adjusted EBITDA and bottom-line results, while also right-sizing the organization for long-term growth. “It has been our goal to create a more predictable, reliable, and profitable operating model, and I am proud that we are beginning to deliver on that goal. Momentum is building, and we are optimistic about our ability to achieve incremental financial improvements throughout the year while enhancing the quality of our business development pipeline. With a healthy balance sheet and no outstanding debt, we continue to build the foundation for long-term growth. Our actions are positioning Ascent to fully execute our growth strategy, delivering durable value for our shareholders.” Second Quarter 2024 Financial Results Net sales from continuing operations were $50.2 million compared to $50.4 million in the second quarter of 2023. The slight decline is primarily attributable to a decrease in pricing partially offset by an increase in volume across both segments. Gross profit from continuing operations increased to $5.9 million, or 11.7% of net sales, compared to $(0.8) million, or (1.5)% of net sales, in the second quarter of 2023. The increase was primarily attributable to continued cost and product mix optimization initiatives leading to cost improvements across both segments. Net loss from continuing operations improved to $(0.2) million, or $(0.02) diluted loss per share, compared to net loss from continuing operations of $(6.1) million, or $(0.60) diluted loss per share, in the second quarter of 2023. The improvement was primarily attributable to the aforementioned increase in gross profit and a year-over-year decrease in interest expense due to lower debt outstanding. Adjusted EBITDA increased to $2.1 million compared to $(4.8) million in the second quarter of 2023, with adjusted EBITDA margin increasing significantly to 4.2% compared to (9.4)% in the prior year period. The improvement was primarily driven by the aforementioned cost and product mix optimization initiatives. Segment Results Ascent Chemicals – net sales in the second quarter of 2024 increased slightly to $21.5 million compared to $21.4 million in the second quarter of 2023. Operating income in the second quarter improved to $0.4 million compared to operating loss of $0.8 million in the prior year period. Adjusted EBITDA in the second quarter increased significantly to $1.7 million compared to $0.3 million in the prior year period. As a percentage of segment net sales, adjusted EBITDA increased significantly to 7.9% compared to 1.5% in the second quarter of 2023. Ascent Tubular – net sales from continuing operations in the second quarter of 2024 were $28.7 million compared to $29.0 million in the second quarter of 2023. Operating income from continuing operations in the second quarter increased to $0.9 million compared to operating loss from continuing operations of $3.3 million in the prior year period. Adjusted EBITDA from continuing operations in the second quarter increased significantly to $1.7 million compared to $(2.5) million in the prior year period. As a percentage of segment net sales, adjusted EBITDA was 5.9% compared to (8.5)% in the second quarter of 2023. Liquidity As of June 30, 2024, the Company had no debt outstanding under its revolving credit facilities and had $62.7 million in availability under its revolving credit facility. For the quarter ended June 30, 2024, the Company repurchased 15,233 shares at an average cost of $10.25 per share for approximately $0.2 million. Conference Call Ascent will conduct a conference call today at 5:00 p.m. Eastern time to discuss its results for the second quarter ended June 30, 2024. Ascent management will host the conference call, followed by a question-and-answer period. Date: Tuesday, August 6, 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, 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) (Unaudited) June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 3,595 $ 1,851 Accounts receivable, net of allowance for credit losses of $808 and $463, respectively 30,154 26,604 Inventories 45,917 52,306 Prepaid expenses and other current assets 3,988 4,879 Assets held for sale 1,259 2,912 Current assets of discontinued operations 65 861 Total current assets 84,978 89,413 Property, plant and equipment, net 27,643 29,755 Right-of-use assets, operating leases, net 27,073 27,784 Intangible assets, net 7,752 8,496 Deferred income taxes 7,663 5,808 Deferred charges, net 54 104 Other non-current assets, net 3,075 1,935 Total assets $ 158,238 $ 163,295 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 16,790 $ 16,416 Accrued expenses and other current liabilities 6,472 5,108 Current portion of note payable 914 360 Current portion of operating lease liabilities 1,194 1,140 Current portion of finance lease liabilities 286 292 Current liabilities of discontinued operations 1,213 1,473 Total current liabilities 26,869 24,789 Long-term portion of operating lease liabilities 29,110 29,729 Long-term portion of finance lease liabilities 1,163 1,307 Other long-term liabilities 54 60 Total non-current liabilities 30,327 31,096 Total liabilities $ 57,196 $ 55,885 Commitments and contingencies Shareholders' equity: Common stock, par value $1 per share; 24,000,000 shares authorized; 11,085,103 and 10,124,737 shares issued and outstanding, respectively $ 11,085 $ 11,085 Capital in excess of par value 47,111 47,333 Retained earnings 52,098 58,517 110,294 116,935 Less: cost of common stock in treasury - 960,366 and 990,282 shares, respectively (9,252 ) (9,525 ) Total shareholders' equity 101,042 107,410 Total liabilities and shareholders' equity $ 158,238 $ 163,295 Note: The condensed consolidated balance sheets at December 31, 2023 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net sales Tubular Products $ 28,721 $ 28,992 $ 52,536 $ 60,053 Specialty Chemicals 21,468 21,363 41,764 45,112 All Other — — — 50 50,189 50,355 94,300 105,215 Operating income (loss) from continuing operations Tubular Products 889 (3,302 ) (613 ) (6,596 ) Specialty Chemicals 429 (806 ) (1,010 ) 546 All Other (100 ) (74 ) (261 ) (552 ) Corporate Unallocated corporate expenses (1,429 ) (2,750 ) (3,579 ) (6,455 ) Acquisition costs and other (52 ) (17 ) (52 ) (274 ) Total Corporate (1,481 ) (2,767 ) (3,631 ) (6,729 ) Operating loss (263 ) (6,949 ) (5,515 ) (13,331 ) Interest expense, net 72 1,047 199 2,154 Other, net (93 ) (154 ) (212 ) (247 ) Loss from continuing operations before income taxes (242 ) (7,842 ) (5,502 ) (15,238 ) Income tax benefit (44 ) (1,693 ) (1,210 ) (3,301 ) Loss from continuing operations (198 ) (6,149 ) (4,292 ) (11,937 ) Loss from discontinued operations, net of tax (728 ) (8,487 ) (2,127 ) (7,898 ) Net loss $ (926 ) $ (14,636 ) $ (6,419 ) $ (19,835 ) Net loss per common share from continuing operations Basic $ (0.02 ) $ (0.60 ) $ (0.42 ) $ (1.18 ) Diluted $ (0.02 ) $ (0.60 ) $ (0.42 ) $ (1.18 ) Net loss per common share from discontinued operations Basic $ (0.07 ) $ (0.84 ) $ (0.21 ) $ (0.77 ) Diluted $ (0.07 ) $ (0.84 ) $ (0.21 ) $ (0.77 ) Net loss per common share Basic $ (0.09 ) $ (1.44 ) $ (0.63 ) $ (1.95 ) Diluted $ (0.09 ) $ (1.44 ) $ (0.63 ) $ (1.95 ) Average shares outstanding Basic 10,126 10,170 10,110 10,159 Diluted 10,126 10,170 10,110 10,159 Other data: Adjusted EBITDA1 $ 2,112 $ (4,754 ) $ (1,003 ) $ (8,489 ) 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 (Unaudited) ($ in thousands) Six Months Ended June 30, 2024 2023 Operating activities Net loss $ (6,419 ) $ (19,835 ) Loss from discontinued operations, net of tax (2,127 ) (7,898 ) Net loss from continuing operations (4,292 ) (11,937 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation expense 3,051 3,112 Amortization expense 744 752 Amortization of debt issuance costs 50 50 Deferred income taxes (1,210 ) (5,515 ) Provision for losses on accounts receivable 264 32 Provision for losses on inventories 906 1,194 Loss on disposal of property, plant and equipment — 182 Non-cash lease expense 111 126 Stock-based compensation expense 368 404 Changes in operating assets and liabilities: Accounts receivable (3,813 ) 2,286 Inventories 5,483 16,086 Other assets and liabilities (907 ) (251 ) Accounts payable 202 4,780 Accrued expenses 1,364 (402 ) Accrued income taxes 630 (743 ) Net cash provided by operating activities - continuing operations 2,951 10,156 Net cash (used in) provided by operating activities - discontinued operations (521 ) 7,916 Net cash provided by operating activities 2,430 18,072 Investing activities Purchases of property, plant and equipment (770 ) (1,235 ) Net cash used in investing activities - continuing operations (770 ) (1,235 ) Net cash used in investing activities - discontinued operations — (390 ) Net cash used in investing activities (770 ) (1,625 ) Financing activities Borrowings from long-term debt 107,700 139,137 Proceeds from note payable 914 900 Payments on long-term debt (107,700 ) (156,166 ) Payments on note payable (359 ) (387 ) Principal payments on finance lease obligations (151 ) (151 ) Repurchase of common stock (320 ) (504 ) Net cash provided by (used in) financing activities 84 (17,171 ) Increase (decrease) in cash and cash equivalents 1,744 (724 ) Less: Cash and cash equivalents of discontinued operations — 1 Cash and cash equivalents, beginning of period 1,851 1,440 Cash and cash equivalents, end of period $ 3,595 $ 717 Ascent Industries Co. Non-GAAP Financial Measures Reconciliation Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited) ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2024 2023 2024 2023 Consolidated Net loss from continuing operations $ (198 ) $ (6,149 ) $ (4,292 ) $ (11,937 ) Adjustments: Interest expense 72 1,047 199 2,154 Income taxes (44 ) (1,693 ) (1,210 ) (3,301 ) Depreciation 1,531 1,563 3,051 3,112 Amortization 377 376 744 752 EBITDA 1,738 (4,856 ) (1,508 ) (9,220 ) Acquisition costs and other 67 16 79 277 Stock-based compensation 44 16 104 237 Non-cash lease expense 55 63 111 126 Retention expense — — 3 — Restructuring and severance costs 208 7 208 91 Adjusted EBITDA $ 2,112 $ (4,754 ) $ (1,003 ) $ (8,489 ) % sales 4.2 % (9.4 )% (1.1 )% (8.1 )% Specialty Chemicals Net income (loss) $ 409 $ (818 ) $ (1,049 ) $ 523 Adjustments: Interest expense 20 18 39 31 Depreciation expense 964 956 1,918 1,908 Amortization expense 179 158 348 317 EBITDA 1,572 314 1,256 2,779 Acquisition costs and other — — — 2 Stock-based compensation — (23 ) 7 (16 ) Non-cash lease expense 19 22 38 46 Restructuring and severance costs 109 — 109 — Specialty Chemicals Adjusted EBITDA $ 1,700 $ 313 $ 1,410 $ 2,811 % segment sales 7.9 % 1.5 % 3.4 % 6.2 % Tubular Products Net income (loss) from continuing operations $ 889 $ (3,303 ) $ (613 ) $ (6,595 ) Adjustments: Depreciation expense 546 585 1,091 1,160 Amortization expense 198 218 396 436 EBITDA 1,633 (2,500 ) 874 (4,999 ) Acquisition costs and other 15 — 26 — Stock-based compensation — 2 11 (18 ) Non-cash lease expense 25 31 50 61 Restructuring and severance costs 31 — 31 84 Tubular Products Adjusted EBITDA $ 1,704 $ (2,467 ) $ 992 $ (4,872 ) % segment sales 5.9 % (8.5 )% 1.9 % (8.1 )% View source version on businesswire.com: https://www.businesswire.com/news/home/20240806610529/en/Contacts 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 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Ascent Industries Reports Second Quarter 2024 Results By: Ascent Industries Co. via Business Wire August 06, 2024 at 16:05 PM EDT Ascent Industries Co. (Nasdaq: ACNT) (“Ascent” or the “Company”), an industrials company focused on the production of specialty chemicals and industrial tubular products, is reporting its results for the second quarter ended June 30, 2024. Second Quarter 2024 Summary1 (in millions, except per share and margin) Q2 2024 Q2 2023 Change Net Sales $50.2 $50.4 (0.3)% Gross Profit $5.9 $(0.8) 854.2% Gross Profit Margin 11.7% (1.5)% 1320bps Net Loss $(0.2) $(6.1) 96.8% Diluted Loss per Share $(0.02) $(0.60) 96.7% Adjusted EBITDA $2.1 $(4.8) 144.1% Adjusted EBITDA Margin 4.2% (9.4)% 1360bps _________________________ 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 “Our stabilization efforts and aggressive self-help have started to yield tangible results in Q2 2024, despite continued soft market conditions,” said Ascent CEO Bryan Kitchen. “Our relentless efforts to reduce costs, improve strategic sourcing and optimize our product mix have led to a significant year-over-year improvement in adjusted EBITDA and bottom-line results, while also right-sizing the organization for long-term growth. “It has been our goal to create a more predictable, reliable, and profitable operating model, and I am proud that we are beginning to deliver on that goal. Momentum is building, and we are optimistic about our ability to achieve incremental financial improvements throughout the year while enhancing the quality of our business development pipeline. With a healthy balance sheet and no outstanding debt, we continue to build the foundation for long-term growth. Our actions are positioning Ascent to fully execute our growth strategy, delivering durable value for our shareholders.” Second Quarter 2024 Financial Results Net sales from continuing operations were $50.2 million compared to $50.4 million in the second quarter of 2023. The slight decline is primarily attributable to a decrease in pricing partially offset by an increase in volume across both segments. Gross profit from continuing operations increased to $5.9 million, or 11.7% of net sales, compared to $(0.8) million, or (1.5)% of net sales, in the second quarter of 2023. The increase was primarily attributable to continued cost and product mix optimization initiatives leading to cost improvements across both segments. Net loss from continuing operations improved to $(0.2) million, or $(0.02) diluted loss per share, compared to net loss from continuing operations of $(6.1) million, or $(0.60) diluted loss per share, in the second quarter of 2023. The improvement was primarily attributable to the aforementioned increase in gross profit and a year-over-year decrease in interest expense due to lower debt outstanding. Adjusted EBITDA increased to $2.1 million compared to $(4.8) million in the second quarter of 2023, with adjusted EBITDA margin increasing significantly to 4.2% compared to (9.4)% in the prior year period. The improvement was primarily driven by the aforementioned cost and product mix optimization initiatives. Segment Results Ascent Chemicals – net sales in the second quarter of 2024 increased slightly to $21.5 million compared to $21.4 million in the second quarter of 2023. Operating income in the second quarter improved to $0.4 million compared to operating loss of $0.8 million in the prior year period. Adjusted EBITDA in the second quarter increased significantly to $1.7 million compared to $0.3 million in the prior year period. As a percentage of segment net sales, adjusted EBITDA increased significantly to 7.9% compared to 1.5% in the second quarter of 2023. Ascent Tubular – net sales from continuing operations in the second quarter of 2024 were $28.7 million compared to $29.0 million in the second quarter of 2023. Operating income from continuing operations in the second quarter increased to $0.9 million compared to operating loss from continuing operations of $3.3 million in the prior year period. Adjusted EBITDA from continuing operations in the second quarter increased significantly to $1.7 million compared to $(2.5) million in the prior year period. As a percentage of segment net sales, adjusted EBITDA was 5.9% compared to (8.5)% in the second quarter of 2023. Liquidity As of June 30, 2024, the Company had no debt outstanding under its revolving credit facilities and had $62.7 million in availability under its revolving credit facility. For the quarter ended June 30, 2024, the Company repurchased 15,233 shares at an average cost of $10.25 per share for approximately $0.2 million. Conference Call Ascent will conduct a conference call today at 5:00 p.m. Eastern time to discuss its results for the second quarter ended June 30, 2024. Ascent management will host the conference call, followed by a question-and-answer period. Date: Tuesday, August 6, 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, 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) (Unaudited) June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 3,595 $ 1,851 Accounts receivable, net of allowance for credit losses of $808 and $463, respectively 30,154 26,604 Inventories 45,917 52,306 Prepaid expenses and other current assets 3,988 4,879 Assets held for sale 1,259 2,912 Current assets of discontinued operations 65 861 Total current assets 84,978 89,413 Property, plant and equipment, net 27,643 29,755 Right-of-use assets, operating leases, net 27,073 27,784 Intangible assets, net 7,752 8,496 Deferred income taxes 7,663 5,808 Deferred charges, net 54 104 Other non-current assets, net 3,075 1,935 Total assets $ 158,238 $ 163,295 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 16,790 $ 16,416 Accrued expenses and other current liabilities 6,472 5,108 Current portion of note payable 914 360 Current portion of operating lease liabilities 1,194 1,140 Current portion of finance lease liabilities 286 292 Current liabilities of discontinued operations 1,213 1,473 Total current liabilities 26,869 24,789 Long-term portion of operating lease liabilities 29,110 29,729 Long-term portion of finance lease liabilities 1,163 1,307 Other long-term liabilities 54 60 Total non-current liabilities 30,327 31,096 Total liabilities $ 57,196 $ 55,885 Commitments and contingencies Shareholders' equity: Common stock, par value $1 per share; 24,000,000 shares authorized; 11,085,103 and 10,124,737 shares issued and outstanding, respectively $ 11,085 $ 11,085 Capital in excess of par value 47,111 47,333 Retained earnings 52,098 58,517 110,294 116,935 Less: cost of common stock in treasury - 960,366 and 990,282 shares, respectively (9,252 ) (9,525 ) Total shareholders' equity 101,042 107,410 Total liabilities and shareholders' equity $ 158,238 $ 163,295 Note: The condensed consolidated balance sheets at December 31, 2023 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net sales Tubular Products $ 28,721 $ 28,992 $ 52,536 $ 60,053 Specialty Chemicals 21,468 21,363 41,764 45,112 All Other — — — 50 50,189 50,355 94,300 105,215 Operating income (loss) from continuing operations Tubular Products 889 (3,302 ) (613 ) (6,596 ) Specialty Chemicals 429 (806 ) (1,010 ) 546 All Other (100 ) (74 ) (261 ) (552 ) Corporate Unallocated corporate expenses (1,429 ) (2,750 ) (3,579 ) (6,455 ) Acquisition costs and other (52 ) (17 ) (52 ) (274 ) Total Corporate (1,481 ) (2,767 ) (3,631 ) (6,729 ) Operating loss (263 ) (6,949 ) (5,515 ) (13,331 ) Interest expense, net 72 1,047 199 2,154 Other, net (93 ) (154 ) (212 ) (247 ) Loss from continuing operations before income taxes (242 ) (7,842 ) (5,502 ) (15,238 ) Income tax benefit (44 ) (1,693 ) (1,210 ) (3,301 ) Loss from continuing operations (198 ) (6,149 ) (4,292 ) (11,937 ) Loss from discontinued operations, net of tax (728 ) (8,487 ) (2,127 ) (7,898 ) Net loss $ (926 ) $ (14,636 ) $ (6,419 ) $ (19,835 ) Net loss per common share from continuing operations Basic $ (0.02 ) $ (0.60 ) $ (0.42 ) $ (1.18 ) Diluted $ (0.02 ) $ (0.60 ) $ (0.42 ) $ (1.18 ) Net loss per common share from discontinued operations Basic $ (0.07 ) $ (0.84 ) $ (0.21 ) $ (0.77 ) Diluted $ (0.07 ) $ (0.84 ) $ (0.21 ) $ (0.77 ) Net loss per common share Basic $ (0.09 ) $ (1.44 ) $ (0.63 ) $ (1.95 ) Diluted $ (0.09 ) $ (1.44 ) $ (0.63 ) $ (1.95 ) Average shares outstanding Basic 10,126 10,170 10,110 10,159 Diluted 10,126 10,170 10,110 10,159 Other data: Adjusted EBITDA1 $ 2,112 $ (4,754 ) $ (1,003 ) $ (8,489 ) 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 (Unaudited) ($ in thousands) Six Months Ended June 30, 2024 2023 Operating activities Net loss $ (6,419 ) $ (19,835 ) Loss from discontinued operations, net of tax (2,127 ) (7,898 ) Net loss from continuing operations (4,292 ) (11,937 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation expense 3,051 3,112 Amortization expense 744 752 Amortization of debt issuance costs 50 50 Deferred income taxes (1,210 ) (5,515 ) Provision for losses on accounts receivable 264 32 Provision for losses on inventories 906 1,194 Loss on disposal of property, plant and equipment — 182 Non-cash lease expense 111 126 Stock-based compensation expense 368 404 Changes in operating assets and liabilities: Accounts receivable (3,813 ) 2,286 Inventories 5,483 16,086 Other assets and liabilities (907 ) (251 ) Accounts payable 202 4,780 Accrued expenses 1,364 (402 ) Accrued income taxes 630 (743 ) Net cash provided by operating activities - continuing operations 2,951 10,156 Net cash (used in) provided by operating activities - discontinued operations (521 ) 7,916 Net cash provided by operating activities 2,430 18,072 Investing activities Purchases of property, plant and equipment (770 ) (1,235 ) Net cash used in investing activities - continuing operations (770 ) (1,235 ) Net cash used in investing activities - discontinued operations — (390 ) Net cash used in investing activities (770 ) (1,625 ) Financing activities Borrowings from long-term debt 107,700 139,137 Proceeds from note payable 914 900 Payments on long-term debt (107,700 ) (156,166 ) Payments on note payable (359 ) (387 ) Principal payments on finance lease obligations (151 ) (151 ) Repurchase of common stock (320 ) (504 ) Net cash provided by (used in) financing activities 84 (17,171 ) Increase (decrease) in cash and cash equivalents 1,744 (724 ) Less: Cash and cash equivalents of discontinued operations — 1 Cash and cash equivalents, beginning of period 1,851 1,440 Cash and cash equivalents, end of period $ 3,595 $ 717 Ascent Industries Co. Non-GAAP Financial Measures Reconciliation Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited) ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2024 2023 2024 2023 Consolidated Net loss from continuing operations $ (198 ) $ (6,149 ) $ (4,292 ) $ (11,937 ) Adjustments: Interest expense 72 1,047 199 2,154 Income taxes (44 ) (1,693 ) (1,210 ) (3,301 ) Depreciation 1,531 1,563 3,051 3,112 Amortization 377 376 744 752 EBITDA 1,738 (4,856 ) (1,508 ) (9,220 ) Acquisition costs and other 67 16 79 277 Stock-based compensation 44 16 104 237 Non-cash lease expense 55 63 111 126 Retention expense — — 3 — Restructuring and severance costs 208 7 208 91 Adjusted EBITDA $ 2,112 $ (4,754 ) $ (1,003 ) $ (8,489 ) % sales 4.2 % (9.4 )% (1.1 )% (8.1 )% Specialty Chemicals Net income (loss) $ 409 $ (818 ) $ (1,049 ) $ 523 Adjustments: Interest expense 20 18 39 31 Depreciation expense 964 956 1,918 1,908 Amortization expense 179 158 348 317 EBITDA 1,572 314 1,256 2,779 Acquisition costs and other — — — 2 Stock-based compensation — (23 ) 7 (16 ) Non-cash lease expense 19 22 38 46 Restructuring and severance costs 109 — 109 — Specialty Chemicals Adjusted EBITDA $ 1,700 $ 313 $ 1,410 $ 2,811 % segment sales 7.9 % 1.5 % 3.4 % 6.2 % Tubular Products Net income (loss) from continuing operations $ 889 $ (3,303 ) $ (613 ) $ (6,595 ) Adjustments: Depreciation expense 546 585 1,091 1,160 Amortization expense 198 218 396 436 EBITDA 1,633 (2,500 ) 874 (4,999 ) Acquisition costs and other 15 — 26 — Stock-based compensation — 2 11 (18 ) Non-cash lease expense 25 31 50 61 Restructuring and severance costs 31 — 31 84 Tubular Products Adjusted EBITDA $ 1,704 $ (2,467 ) $ 992 $ (4,872 ) % segment sales 5.9 % (8.5 )% 1.9 % (8.1 )% View source version on businesswire.com: https://www.businesswire.com/news/home/20240806610529/en/Contacts 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
Ascent Industries Co. (Nasdaq: ACNT) (“Ascent” or the “Company”), an industrials company focused on the production of specialty chemicals and industrial tubular products, is reporting its results for the second quarter ended June 30, 2024. Second Quarter 2024 Summary1 (in millions, except per share and margin) Q2 2024 Q2 2023 Change Net Sales $50.2 $50.4 (0.3)% Gross Profit $5.9 $(0.8) 854.2% Gross Profit Margin 11.7% (1.5)% 1320bps Net Loss $(0.2) $(6.1) 96.8% Diluted Loss per Share $(0.02) $(0.60) 96.7% Adjusted EBITDA $2.1 $(4.8) 144.1% Adjusted EBITDA Margin 4.2% (9.4)% 1360bps _________________________ 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 “Our stabilization efforts and aggressive self-help have started to yield tangible results in Q2 2024, despite continued soft market conditions,” said Ascent CEO Bryan Kitchen. “Our relentless efforts to reduce costs, improve strategic sourcing and optimize our product mix have led to a significant year-over-year improvement in adjusted EBITDA and bottom-line results, while also right-sizing the organization for long-term growth. “It has been our goal to create a more predictable, reliable, and profitable operating model, and I am proud that we are beginning to deliver on that goal. Momentum is building, and we are optimistic about our ability to achieve incremental financial improvements throughout the year while enhancing the quality of our business development pipeline. With a healthy balance sheet and no outstanding debt, we continue to build the foundation for long-term growth. Our actions are positioning Ascent to fully execute our growth strategy, delivering durable value for our shareholders.” Second Quarter 2024 Financial Results Net sales from continuing operations were $50.2 million compared to $50.4 million in the second quarter of 2023. The slight decline is primarily attributable to a decrease in pricing partially offset by an increase in volume across both segments. Gross profit from continuing operations increased to $5.9 million, or 11.7% of net sales, compared to $(0.8) million, or (1.5)% of net sales, in the second quarter of 2023. The increase was primarily attributable to continued cost and product mix optimization initiatives leading to cost improvements across both segments. Net loss from continuing operations improved to $(0.2) million, or $(0.02) diluted loss per share, compared to net loss from continuing operations of $(6.1) million, or $(0.60) diluted loss per share, in the second quarter of 2023. The improvement was primarily attributable to the aforementioned increase in gross profit and a year-over-year decrease in interest expense due to lower debt outstanding. Adjusted EBITDA increased to $2.1 million compared to $(4.8) million in the second quarter of 2023, with adjusted EBITDA margin increasing significantly to 4.2% compared to (9.4)% in the prior year period. The improvement was primarily driven by the aforementioned cost and product mix optimization initiatives. Segment Results Ascent Chemicals – net sales in the second quarter of 2024 increased slightly to $21.5 million compared to $21.4 million in the second quarter of 2023. Operating income in the second quarter improved to $0.4 million compared to operating loss of $0.8 million in the prior year period. Adjusted EBITDA in the second quarter increased significantly to $1.7 million compared to $0.3 million in the prior year period. As a percentage of segment net sales, adjusted EBITDA increased significantly to 7.9% compared to 1.5% in the second quarter of 2023. Ascent Tubular – net sales from continuing operations in the second quarter of 2024 were $28.7 million compared to $29.0 million in the second quarter of 2023. Operating income from continuing operations in the second quarter increased to $0.9 million compared to operating loss from continuing operations of $3.3 million in the prior year period. Adjusted EBITDA from continuing operations in the second quarter increased significantly to $1.7 million compared to $(2.5) million in the prior year period. As a percentage of segment net sales, adjusted EBITDA was 5.9% compared to (8.5)% in the second quarter of 2023. Liquidity As of June 30, 2024, the Company had no debt outstanding under its revolving credit facilities and had $62.7 million in availability under its revolving credit facility. For the quarter ended June 30, 2024, the Company repurchased 15,233 shares at an average cost of $10.25 per share for approximately $0.2 million. Conference Call Ascent will conduct a conference call today at 5:00 p.m. Eastern time to discuss its results for the second quarter ended June 30, 2024. Ascent management will host the conference call, followed by a question-and-answer period. Date: Tuesday, August 6, 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, 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) (Unaudited) June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 3,595 $ 1,851 Accounts receivable, net of allowance for credit losses of $808 and $463, respectively 30,154 26,604 Inventories 45,917 52,306 Prepaid expenses and other current assets 3,988 4,879 Assets held for sale 1,259 2,912 Current assets of discontinued operations 65 861 Total current assets 84,978 89,413 Property, plant and equipment, net 27,643 29,755 Right-of-use assets, operating leases, net 27,073 27,784 Intangible assets, net 7,752 8,496 Deferred income taxes 7,663 5,808 Deferred charges, net 54 104 Other non-current assets, net 3,075 1,935 Total assets $ 158,238 $ 163,295 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 16,790 $ 16,416 Accrued expenses and other current liabilities 6,472 5,108 Current portion of note payable 914 360 Current portion of operating lease liabilities 1,194 1,140 Current portion of finance lease liabilities 286 292 Current liabilities of discontinued operations 1,213 1,473 Total current liabilities 26,869 24,789 Long-term portion of operating lease liabilities 29,110 29,729 Long-term portion of finance lease liabilities 1,163 1,307 Other long-term liabilities 54 60 Total non-current liabilities 30,327 31,096 Total liabilities $ 57,196 $ 55,885 Commitments and contingencies Shareholders' equity: Common stock, par value $1 per share; 24,000,000 shares authorized; 11,085,103 and 10,124,737 shares issued and outstanding, respectively $ 11,085 $ 11,085 Capital in excess of par value 47,111 47,333 Retained earnings 52,098 58,517 110,294 116,935 Less: cost of common stock in treasury - 960,366 and 990,282 shares, respectively (9,252 ) (9,525 ) Total shareholders' equity 101,042 107,410 Total liabilities and shareholders' equity $ 158,238 $ 163,295 Note: The condensed consolidated balance sheets at December 31, 2023 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net sales Tubular Products $ 28,721 $ 28,992 $ 52,536 $ 60,053 Specialty Chemicals 21,468 21,363 41,764 45,112 All Other — — — 50 50,189 50,355 94,300 105,215 Operating income (loss) from continuing operations Tubular Products 889 (3,302 ) (613 ) (6,596 ) Specialty Chemicals 429 (806 ) (1,010 ) 546 All Other (100 ) (74 ) (261 ) (552 ) Corporate Unallocated corporate expenses (1,429 ) (2,750 ) (3,579 ) (6,455 ) Acquisition costs and other (52 ) (17 ) (52 ) (274 ) Total Corporate (1,481 ) (2,767 ) (3,631 ) (6,729 ) Operating loss (263 ) (6,949 ) (5,515 ) (13,331 ) Interest expense, net 72 1,047 199 2,154 Other, net (93 ) (154 ) (212 ) (247 ) Loss from continuing operations before income taxes (242 ) (7,842 ) (5,502 ) (15,238 ) Income tax benefit (44 ) (1,693 ) (1,210 ) (3,301 ) Loss from continuing operations (198 ) (6,149 ) (4,292 ) (11,937 ) Loss from discontinued operations, net of tax (728 ) (8,487 ) (2,127 ) (7,898 ) Net loss $ (926 ) $ (14,636 ) $ (6,419 ) $ (19,835 ) Net loss per common share from continuing operations Basic $ (0.02 ) $ (0.60 ) $ (0.42 ) $ (1.18 ) Diluted $ (0.02 ) $ (0.60 ) $ (0.42 ) $ (1.18 ) Net loss per common share from discontinued operations Basic $ (0.07 ) $ (0.84 ) $ (0.21 ) $ (0.77 ) Diluted $ (0.07 ) $ (0.84 ) $ (0.21 ) $ (0.77 ) Net loss per common share Basic $ (0.09 ) $ (1.44 ) $ (0.63 ) $ (1.95 ) Diluted $ (0.09 ) $ (1.44 ) $ (0.63 ) $ (1.95 ) Average shares outstanding Basic 10,126 10,170 10,110 10,159 Diluted 10,126 10,170 10,110 10,159 Other data: Adjusted EBITDA1 $ 2,112 $ (4,754 ) $ (1,003 ) $ (8,489 ) 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 (Unaudited) ($ in thousands) Six Months Ended June 30, 2024 2023 Operating activities Net loss $ (6,419 ) $ (19,835 ) Loss from discontinued operations, net of tax (2,127 ) (7,898 ) Net loss from continuing operations (4,292 ) (11,937 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation expense 3,051 3,112 Amortization expense 744 752 Amortization of debt issuance costs 50 50 Deferred income taxes (1,210 ) (5,515 ) Provision for losses on accounts receivable 264 32 Provision for losses on inventories 906 1,194 Loss on disposal of property, plant and equipment — 182 Non-cash lease expense 111 126 Stock-based compensation expense 368 404 Changes in operating assets and liabilities: Accounts receivable (3,813 ) 2,286 Inventories 5,483 16,086 Other assets and liabilities (907 ) (251 ) Accounts payable 202 4,780 Accrued expenses 1,364 (402 ) Accrued income taxes 630 (743 ) Net cash provided by operating activities - continuing operations 2,951 10,156 Net cash (used in) provided by operating activities - discontinued operations (521 ) 7,916 Net cash provided by operating activities 2,430 18,072 Investing activities Purchases of property, plant and equipment (770 ) (1,235 ) Net cash used in investing activities - continuing operations (770 ) (1,235 ) Net cash used in investing activities - discontinued operations — (390 ) Net cash used in investing activities (770 ) (1,625 ) Financing activities Borrowings from long-term debt 107,700 139,137 Proceeds from note payable 914 900 Payments on long-term debt (107,700 ) (156,166 ) Payments on note payable (359 ) (387 ) Principal payments on finance lease obligations (151 ) (151 ) Repurchase of common stock (320 ) (504 ) Net cash provided by (used in) financing activities 84 (17,171 ) Increase (decrease) in cash and cash equivalents 1,744 (724 ) Less: Cash and cash equivalents of discontinued operations — 1 Cash and cash equivalents, beginning of period 1,851 1,440 Cash and cash equivalents, end of period $ 3,595 $ 717 Ascent Industries Co. Non-GAAP Financial Measures Reconciliation Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited) ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2024 2023 2024 2023 Consolidated Net loss from continuing operations $ (198 ) $ (6,149 ) $ (4,292 ) $ (11,937 ) Adjustments: Interest expense 72 1,047 199 2,154 Income taxes (44 ) (1,693 ) (1,210 ) (3,301 ) Depreciation 1,531 1,563 3,051 3,112 Amortization 377 376 744 752 EBITDA 1,738 (4,856 ) (1,508 ) (9,220 ) Acquisition costs and other 67 16 79 277 Stock-based compensation 44 16 104 237 Non-cash lease expense 55 63 111 126 Retention expense — — 3 — Restructuring and severance costs 208 7 208 91 Adjusted EBITDA $ 2,112 $ (4,754 ) $ (1,003 ) $ (8,489 ) % sales 4.2 % (9.4 )% (1.1 )% (8.1 )% Specialty Chemicals Net income (loss) $ 409 $ (818 ) $ (1,049 ) $ 523 Adjustments: Interest expense 20 18 39 31 Depreciation expense 964 956 1,918 1,908 Amortization expense 179 158 348 317 EBITDA 1,572 314 1,256 2,779 Acquisition costs and other — — — 2 Stock-based compensation — (23 ) 7 (16 ) Non-cash lease expense 19 22 38 46 Restructuring and severance costs 109 — 109 — Specialty Chemicals Adjusted EBITDA $ 1,700 $ 313 $ 1,410 $ 2,811 % segment sales 7.9 % 1.5 % 3.4 % 6.2 % Tubular Products Net income (loss) from continuing operations $ 889 $ (3,303 ) $ (613 ) $ (6,595 ) Adjustments: Depreciation expense 546 585 1,091 1,160 Amortization expense 198 218 396 436 EBITDA 1,633 (2,500 ) 874 (4,999 ) Acquisition costs and other 15 — 26 — Stock-based compensation — 2 11 (18 ) Non-cash lease expense 25 31 50 61 Restructuring and severance costs 31 — 31 84 Tubular Products Adjusted EBITDA $ 1,704 $ (2,467 ) $ 992 $ (4,872 ) % segment sales 5.9 % (8.5 )% 1.9 % (8.1 )% View source version on businesswire.com: https://www.businesswire.com/news/home/20240806610529/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