Ascent Industries Co. Reports Third Quarter 2024 Results

Ascent Industries Co., an industrials company specializing in specialty chemicals and industrial tubular products, has released its financial results for the third quarter ending September 30, 2024. The company has shown significant improvements in several key financial metrics despite facing challenging market conditions.

Financial Highlights

For the third quarter of 2024, Ascent Industries reported net sales of $42.9 million, a decrease of 8.2% compared to $46.7 million in the same period last year. The gross profit increased by 116.5% to $6.5 million, with a gross profit margin of 15.1%, up from 6.4% in Q3 2023. The net loss from continuing operations improved to $7.0 million, or $0.69 per diluted share, compared to a net loss of $14.7 million, or $1.45 per diluted share, in the third quarter of 2023. Adjusted EBITDA also saw a significant increase to $2.5 million from a negative $1.5 million in the prior year period.

Business and Operational Highlights

Ascent's specialty chemicals segment reported a 4% increase in net sales to $20.9 million, with operating income improving to $0.4 million from a loss of $11.5 million in Q3 2023. The tubular products segment, however, saw a decline in net sales to $22.0 million from $26.7 million in the previous year. Despite this, operating income for the segment improved to $1.7 million from a loss of $0.6 million in Q3 2023.

Strategic Initiatives and Corporate Developments

During the quarter, Ascent Industries repurchased 42,623 shares at an average cost of $9.79 per share, totaling approximately $0.4 million. The company also reported having $8.5 million in cash and cash equivalents, with no debt outstanding under its revolving credit facilities and $57.5 million in availability under its revolving credit facility.

Management's Perspective

CEO Bryan Kitchen commented on the results, stating, "The third quarter marked another period of positive momentum as we generated our third straight quarter of improving results. Although market conditions remained soft across both segments, we continued to strip out unnecessary costs and operate more efficiently through aggressive self-help initiatives, leading to both year-over-year and quarter-over-quarter improvements to our bottom line."

Future Outlook

Looking ahead, Ascent Industries is optimistic about the potential for revenue growth in its specialty chemicals segment in 2025. The company remains committed to unlocking the full potential of this segment and is focused on creating a more predictable, reliable, and profitable operating model.

SEC Filing: ASCENT INDUSTRIES CO. [ ACNT ] - 8-K - Nov. 12, 2024