Summary of Ascent Industries Conference Call Company Overview - **Company Name**: Ascent Industries - **Ticker Symbol**: ACNT (NASDAQ) - **Industry**: Specialty Chemicals - **Historical Context**: The company has undergone significant transformation since early 2024, with leadership experienced in turnaround situations from previous roles at ClearOn, a specialty chemical manufacturer that improved from a loss of $8 million in adjusted EBITDA to $36 million over four years [3][4]. Key Points and Arguments Financial Performance - **Turnaround Achievements**: In the past year, Ascent Industries achieved a turnaround of approximately $19.9 million in adjusted EBITDA and $20 million in gross margin improvements, alongside generating $70 million in cash [6]. - **Divestitures**: The company divested its stainless steel assets, including Bristol Metals for $45 million and ASTI for $17 million, transitioning to a pure play specialty chemical company [7]. - **Current Financials**: The company reported a cash drag of $2.1 million from an idle facility, which is expected to be resolved by year-end [8]. Business Strategy - **Chemicals as a Service**: Ascent focuses on providing customized chemical solutions rather than traditional manufacturing, with a shift from 90% custom manufacturing to 75% product sales [10][11]. - **Market Segments**: The company targets four key segments: hygiene and industrial cleaning, oil and gas, water treatment, and coatings, adhesives, sealants, and elastomers [10][15]. - **Growth Potential**: The U.S. specialty chemical market is valued at $200 billion, with Ascent's addressable market at $300 million, indicating significant growth potential [16][17]. Operational Efficiency - **Utilization Rates**: Current asset utilization is around 50%, presenting opportunities for growth with minimal capital investment [12][18]. - **Cost Management**: The company has focused on reducing costs and improving margins, with a target of achieving a 35% gross margin and 15% adjusted EBITDA by 2030 [26][27]. Future Growth Plans - **Revenue Goals**: Ascent aims to reach $120 million to $130 million in revenue from existing assets by 2030, with a long-term goal of $500 million [61][62]. - **M&A Strategy**: The company is exploring small acquisitions to enhance its capabilities and address organic growth challenges, focusing on orphan products and complementary capabilities [30][31]. Market Position and Brand Recognition - **Rebranding Efforts**: Ascent has undergone a rebranding to improve market perception, moving away from a reputation of custom manufacturing to being recognized for innovative solutions [42][45]. - **Sales Strategy**: The company has revamped its sales organization and marketing efforts, resulting in a 45% improvement in the selling project pipeline [24][60]. Additional Important Insights - **R&D Focus**: Ascent is enhancing its R&D capabilities to develop custom solutions and improve product offerings [55]. - **Share Buyback**: The company has been active in share buybacks, utilizing proceeds from asset sales to strengthen its balance sheet [34]. - **Investor Confidence**: Leadership expresses confidence in the company's undervalued status and future growth potential, emphasizing disciplined capital management [39][40]. This summary encapsulates the key points discussed during the conference call, highlighting Ascent Industries' strategic direction, financial performance, and growth opportunities within the specialty chemicals sector.

Financial Data and Key Metrics Changes - Revenue increased sequentially by $817,000 to $18,700,000, but decreased by 13% compared to the prior year [7][18] - Gross profit rose by $1,800,000 from Q1 and $2,100,000 year over year, with gross margin expanding to 26.1% [7][19] - Adjusted EBITDA showed a loss of $335,000 for the quarter, which is a sequential improvement of $131,000 but fell short by $53,000 compared to the prior year [7][22] Business Line Data and Key Metrics Changes - The Tubular segment has been fully divested, with only the idle facility in Munhall remaining as a financial drag [4] - The company is now a pure play specialty chemical company, focusing on higher margin opportunities and operational efficiencies [5][10] Market Data and Key Metrics Changes - The broader chemical market has shown softness, with manufacturing activity remaining below expansion territory, impacting overall demand [18][19] - Despite a 29.6% year-over-year decline in volume, pricing actions have helped mitigate some of the impacts [20] Company Strategy and Development Direction - The company is focused on organic and inorganic growth, with a disciplined approach to capital allocation and share repurchases [6][22] - A significant increase in the selling project pipeline by $25,000,000 indicates a strong focus on higher value commercial engagements [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving adjusted EBITDA margins of 15% by targeting $120,000,000 to $130,000,000 in revenue [28] - The company aims to maintain momentum through disciplined execution and capital stewardship, with expectations for continued improvement in profitability [23][41] Other Important Information - The company ended Q2 with $60,500,000 in cash, no debt, and $13,400,000 available under its revolver, indicating a strong financial position [22] - The share buyback program is not linked to any equity compensation plan but reflects the belief in the company's undervaluation [32] Q&A Session Summary Question: What revenue number is contemplated for the 2030 adjusted EBITDA margin target? - Management is confident in reaching $120,000,000 to $130,000,000 in revenue within the existing asset base [28] Question: How should the near to intermediate term new business pipeline be quantified? - The selling project pipeline increased by $25,000,000, spread across various market segments, indicating a mix of product sales and custom manufacturing [30] Question: Has the executive management equity compensation plan been presented to the board? - The share buyback was based on the belief that the company is undervalued, not related to any equity program for senior leaders [32] Question: What catalysts are expected for a rerating of the company? - Growth is seen as the primary catalyst, with a focus on both organic and inorganic growth [38] Question: Is a return to profitability expected in the near term? - Management is targeting profitability, excluding the Munhall aspect, and is optimistic about achieving this [41] Question: Will the company consider acquisitions in the future? - The company is looking for smaller transactions that can demonstrate growth synergies before pursuing larger acquisitions [46][58] Question: What multiples are expected for potential acquisitions? - The company aims to acquire assets at a lower end of the 6 to 8 times EBITDA range, focusing on disciplined growth [56][60]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _____ to _____ Ascent Industries Co. (Exact name of registrant as specified in its charter) Delaware 57-0426694 (State or other jurisdiction of incorporation or organizat ...

[Executive Summary](index=1&type=section&id=1.%20Executive%20Summary) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=1.1.%20Second%20Quarter%202025%20Financial%20Highlights) The company reported decreased net sales but achieved significant gross profit and margin improvement in Q2 2025 Q2 2025 vs Q2 2024 Financial Summary (Continuing Operations) | (in millions, except per share and margin) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $18.7 | $21.5 | (13.0)% | | Gross Profit | $4.9 | $2.8 | 73.0% | | Gross Profit Margin | 26.1% | 13.1% | 1,298bps | | Net Loss | $(2.4) | $(1.5) | 60.0% | | Diluted Loss per Share | $(0.25) | $(0.14) | 78.6% | | Adjusted EBITDA | $(0.3) | $(0.3) | -$52K | | Adjusted EBITDA Margin | (1.8)% | (1.3)% | -50bps | - Financial results from BRISMET and ASTI have been categorized into discontinued operations due to recent sales[3](index=3&type=chunk) [Management Commentary & Strategic Overview](index=1&type=section&id=1.2.%20Management%20Commentary%20%26%20Strategic%20Overview) Management highlighted successful divestitures that transformed Ascent into a pure-play specialty chemicals company - Completed the sale of BRISMET in April and ASTI in June, transforming Ascent into a **pure-play specialty chemicals company**[4](index=4&type=chunk) - Gross margin improved to **26.1%** in Q2 2025, up **1,298 basis points** versus Q2 2024, driven by cost management, strategic sourcing, and product-line optimization[5](index=5&type=chunk) - Repurchased **644,171 shares** (approximately 6% of outstanding stock) in Q2 2025, returning cash directly to shareholders[5](index=5&type=chunk) [Financial Performance (Continuing Operations)](index=1&type=section&id=2.%20Financial%20Performance%20(Continuing%20Operations)) [Net Sales](index=1&type=section&id=2.1.%20Net%20Sales) Net sales from continuing operations decreased by 13.0% to $18.7 million in Q2 2025 due to lower volume Net Sales (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $18.7M | $21.5M | (13.0)% | - The decline in net sales was a result of lower volume partially offset by increased average selling prices[6](index=6&type=chunk) [Gross Profit and Margin](index=1&type=section&id=2.2.%20Gross%20Profit%20and%20Margin) Gross profit significantly increased by 73.0% to $4.9 million, with the margin expanding to 26.1% due to cost management Gross Profit and Margin (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | $4.9M | $2.8M | 73.0% | | Gross Profit Margin | 26.1% | 13.1% | 1,298bps | - The increase in gross profit was primarily driven by continued cost management, improved strategic sourcing, and continued product line optimization[7](index=7&type=chunk) [Net Loss and Diluted Loss Per Share](index=1&type=section&id=2.3.%20Net%20Loss%20and%20Diluted%20Loss%20Per%20Share) Net loss from continuing operations increased to $(2.4) million, influenced by a one-time asset impairment charge Net Loss and Diluted Loss per Share (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Loss | $(2.4)M | $(1.5)M | 60.0% | | Diluted Loss per Share | $(0.25) | $(0.14) | 78.6% | - Excluding a one-time asset impairment charge in the quarter, net loss from continuing operations decreased to **($0.8) million**[8](index=8&type=chunk) [Adjusted EBITDA](index=1&type=section&id=2.4.%20Adjusted%20EBITDA) Adjusted EBITDA from continuing operations remained flat at $(0.3) million, with the margin declining due to lower sales Adjusted EBITDA and Margin (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $(0.3)M | $(0.3)M | -$52K | | Adjusted EBITDA Margin | (1.8)% | (1.3)% | -50bps | - The decrease in Adjusted EBITDA margin was primarily driven by the aforementioned decline in sales in the quarter[9](index=9&type=chunk) [Business Transformation & Capital Allocation](index=3&type=section&id=3.%20Business%20Transformation%20%26%20Capital%20Allocation) [Divestitures of Discontinued Operations](index=3&type=section&id=3.1.%20Divestitures%20of%20Discontinued%20Operations) The company completed the sales of BRISMET and ASTI, finalizing its transformation into a specialty chemicals company - Sold substantially all assets of Bristol Metals, LLC (BRISMET) for **$45 million** in cash on April 4, 2025[10](index=10&type=chunk) - Sold substantially all assets of American Stainless Tubing, Inc (ASTI) for **$16 million** in cash on June 30, 2025[10](index=10&type=chunk) - As a result of these transactions, the company no longer has any operating tubular assets, transforming into a **pure-play specialty chemicals company**[4](index=4&type=chunk)[10](index=10&type=chunk) [Liquidity and Share Repurchase Program](index=3&type=section&id=3.2.%20Liquidity%20and%20Share%20Repurchase%20Program) The company maintained a strong liquidity position with $60.5 million in cash and repurchased $7.8 million of its stock Liquidity Position (as of June 30, 2025) | Metric | Amount | | :--- | :--- | | Cash and cash equivalents | $60.5 million | | Debt outstanding (revolving credit facilities) | $0 | | Availability (revolving credit facility) | $13.4 million | - Repurchased **644,171 shares** at an average cost of $12.15 per share for approximately **$7.8 million** in Q2 2025[11](index=11&type=chunk) [Corporate Information](index=3&type=section&id=4.%20Corporate%20Information) [About Ascent Industries Co.](index=3&type=section&id=4.1.%20About%20Ascent%20Industries%20Co.) Ascent Industries Co. is a specialty chemicals platform focused on performance-driven chemical solutions - Ascent Industries Co. is a specialty chemicals platform focused on the development, production, and distribution of tailored, performance-driven chemical solutions[14](index=14&type=chunk) [Non-GAAP Financial Measures Explanation](index=4&type=section&id=4.2.%20Non-GAAP%20Financial%20Measures%20Explanation) The report uses Adjusted EBITDA, a non-GAAP measure, to evaluate operating performance and enhance comparability - Adjusted EBITDA is a non-GAAP financial measure useful for evaluating results, generating future operating plans, and making strategic decisions[17](index=17&type=chunk)[18](index=18&type=chunk) - Adjusted EBITDA excludes base EBITDA components (interest expense, income taxes, depreciation and amortization) and material transaction costs (goodwill impairment, asset impairment, acquisition costs, stock-based compensation, etc)[17](index=17&type=chunk) [Forward-Looking Statements](index=3&type=section&id=4.3.%20Forward-Looking%20Statements) The report contains forward-looking statements that are subject to risks and uncertainties detailed in SEC filings - This press release may include forward-looking statements subject to certain risks and uncertainties which could cause actual results to differ materially[15](index=15&type=chunk) - Readers are cautioned not to place undue reliance on these statements and to review risks as set forth in Ascent Industries Co.'s SEC filings[15](index=15&type=chunk) [Conference Call Details](index=3&type=section&id=4.4.%20Conference%20Call%20Details) A conference call to discuss Q2 2025 financial results is scheduled for August 6, 2025, at 5:00 p.m. Eastern time - Ascent will hold a conference call on Wednesday, August 6, 2025, at 5:00 p.m. Eastern time to discuss its financial results for the second quarter ended June 30, 2025[12](index=12&type=chunk)[13](index=13&type=chunk) - Live Call Registration Link and Webcast Registration Link are provided for participation[13](index=13&type=chunk) [Company and Investor Relations Contacts](index=4&type=section&id=4.5.%20Company%20and%20Investor%20Relations%20Contacts) Contact information for the company's CFO and Investor Relations representatives is provided - Company Contact: Ryan Kavalauskas, Chief Financial Officer, 1-630-884-9181[19](index=19&type=chunk) - Investor Relations: Ralf Esper, Gateway Group, Inc., 1-949-574-3860, ACNT@gateway-grp.com[19](index=19&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=5.%20Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=5.1.%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects decreased total assets due to divestitures and a significant increase in cash and cash equivalents Key Balance Sheet Items (June 30, 2025 vs Dec 31, 2024) | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $122,580 | $147,250 | | Cash and cash equivalents | $60,479 | $16,098 | | Current assets of discontinued operations | $— | $47,841 | | Total Liabilities | $32,864 | $53,705 | | Total Shareholders' Equity | $89,716 | $93,545 | [Condensed Consolidated Statements of Income (Loss)](index=6&type=section&id=5.2.%20Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) The company reported a net income of $6.3 million for Q2 2025, driven by income from discontinued operations Key Income Statement Items (Three Months Ended June 30, 2025 vs 2024) | Metric (in thousands, except per share) | 2025 | 2024 | | :--- | :--- | :--- | | Net sales | $18,652 | $21,468 | | Gross profit | $4,866 | $2,813 | | Operating loss from continuing operations | $(2,687) | $(1,843) | | Loss from continuing operations | $(2,447) | $(1,450) | | Income (loss) from discontinued operations, net of tax | $8,733 | $524 | | Net income (loss) | $6,286 | $(926) | | Diluted Net income (loss) per common share | $0.65 | $(0.09) | [Consolidated Statements of Cash Flows](index=7&type=section&id=5.3.%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from investing activities increased significantly due to divestiture proceeds, boosting total cash by $44.4 million Key Cash Flow Items (Six Months Ended June 30, 2025 vs 2024) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(2,096) | $2,430 | | Net cash provided by (used in) investing activities | $53,959 | $(770) | | Net cash (used in) provided by financing activities | $(7,492) | $84 | | Decrease in cash and cash equivalents | $44,371 | $1,744 | | Cash and cash equivalents, end of period | $60,479 | $3,595 | [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=5.4.%20Non-GAAP%20Financial%20Measures%20Reconciliation) The reconciliation details the calculation of Adjusted EBITDA, which was $(0.3) million for Q2 2025 from continuing operations Consolidated Adjusted EBITDA (Three Months Ended June 30, 2025 vs 2024) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net loss from continuing operations | $(2,447) | $(1,450) | | Adjusted EBITDA | $(335) | $(283) | | % sales | (1.8)% | (1.3)% | Specialty Chemicals Adjusted EBITDA (Three Months Ended June 30, 2025 vs 2024) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Specialty Chemicals Adjusted EBITDA | $2,540 | $1,700 | | % segment sales | 13.6% | 7.9% |

Group 1 - Ascent Industries Co. has transformed into a vertically integrated pure-play chemical firm after divesting its legacy metal businesses in 2025 [1] - The company now operates solely through its chemical segment, indicating a focused strategy on chemical production and services [1]

Financial Data and Key Metrics Changes - The company reported a quorum present for the transaction of business at the meeting, with 10,034,875 shares issued and outstanding [3] - The voting results indicated sufficient votes to elect directors and approve executive compensation, reflecting shareholder support [7] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting [8] Market Data and Key Metrics Changes - No specific market data or key metrics were provided in the meeting [8] Company Strategy and Development Direction and Industry Competition - The company is focused on maintaining strong governance through the election of directors and the approval of executive compensation, which is crucial for strategic alignment and operational effectiveness [6][7] Management's Comments on Operating Environment and Future Outlook - Management cautioned that remarks may contain forward-looking statements involving risks and uncertainties, advising investors to consult the risk factors described in the annual report [8] Other Important Information - The appointment of Baker Tilley LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified [6][7] Q&A Session All Questions and Answers Question: Are there any questions from the attendees? - There were no questions from the attendees during the meeting [9]

Planet Microcap Showcase Ascent Industries Co. | Nasdaq: ACNT Forward Looking Statement Safe Harbor and Non-GAAP Information Forward-Looking Statements This presentation includes "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," "inte ...

Financial Data and Key Metrics Changes - Net sales from continuing operations totaled $24.7 million, down from $28 million in Q1 2024, reflecting broader market softness [4] - Adjusted EBITDA from continuing operations improved significantly, swinging from a loss of $2.7 million in the prior year to a positive $843,000 this quarter, marking a $3.5 million turnaround [5][20] - Gross profit nearly doubled to $4.8 million, or 19.3% of sales, compared to $2.3 million, or 8.3% last year, an expansion of over 1,100 basis points [17] Business Line Data and Key Metrics Changes - Tubular Segments generated $6.9 million in revenue, down slightly year over year, but gross margin increased from 12.3% to 24.8%, with adjusted EBITDA rising nearly five times to $1.3 million [6] - Specialty Chemicals segment revenue declined year over year to $17.8 million, but gross profit increased by $2.1 million, rising from $1.6 million to $3.7 million, a 131% improvement, with gross margin expanding from 7.6% to 21% [9] Market Data and Key Metrics Changes - Average daily trading volume increased to approximately 63,000 shares in Q1 2025, a 60% lift compared to Q1 2024, indicating growing market interest [13] Company Strategy and Development Direction - The company is focused on strategic repositioning, actively choosing to exit low-margin business in favor of higher value, more technically demanding opportunities [15][16] - The goal for the Specialty Chemicals segment is to shift from a 75% commodity and 25% blended mix to a 60% and 40% mix by the end of 2025, aiming for a more balanced portfolio [35] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of improvement, demand remains soft, and they are still evaluating options to monetize the value of their assets [28][29] - The company is not ready to provide forward-looking guidance for 2025, as they are still stabilizing their operations [30][31] Other Important Information - The company ended the quarter with $14.3 million in cash and no debt before the divestiture of Bristol assets for $45 million, providing significant flexibility for capital deployment [21][22] - The company repurchased approximately 17,000 shares at an average price of $12.73, reinforcing confidence in intrinsic value and long-term fundamentals [21] Q&A Session Summary Question: Comments on the ASTI business and its attractiveness as a target - Management indicated that while there are additional looks due to tariffs, demand remains incredibly soft, and the market conditions have not materially changed [28] Question: Possibility of selling ASTI in 2025 - Management confirmed they are always evaluating options to monetize the value of all assets [29] Question: Guidance for profitability in chemicals - Management stated it is premature to provide guidance as they are still stabilizing operations [30][31] Question: Growth plans for chemicals by 2026 - Management expects to see some growth in the second half of the year, with a more compelling top line anticipated in 2026 [33] Question: Capacity and CapEx for growth - Management confirmed that growth can be achieved with existing capacity and minimal CapEx, with a run rate of $1 to $3 million per year [36] Question: Stock buyback limitations - Management explained that the buyback was executed within the confines of the existing program, and optionality has increased post-Bristol sale [37] Question: Perception of stock valuation - Management expressed the opinion that the stock remains undervalued at current levels [38]

Financial Data and Key Metrics Changes - Net sales from continuing operations totaled $24.7 million, down from $28 million in Q1 2024, reflecting broader market softness [4] - Adjusted EBITDA from continuing operations improved significantly, swinging from a loss of $2.7 million in the prior year to a positive $843,000 this quarter, a $3.5 million turnaround [5][21] - Gross profit nearly doubled to $4.8 million, or 19.3% of sales, compared to $2.3 million, or 8.3% last year, an expansion of over 1,100 basis points [17] Business Line Data and Key Metrics Changes - Tubular Segments generated $6.9 million in revenue, down slightly year over year, but gross margin increased from 12.3% to 24.8%, with adjusted EBITDA rising nearly five times to $1.3 million [6] - Specialty Chemicals segment revenue declined year over year to $17.8 million, but gross profit increased by $2.1 million, rising from $1.6 million to $3.7 million, a 131% improvement, with gross margin expanding from 7.6% to 21% [10] Market Data and Key Metrics Changes - Approximately 95% of revenue is supported by domestically sourced raw materials, providing a competitive advantage as tariffs loom [7] - Average daily trading volume increased to roughly 63,000 shares in Q1 2025, a 60% lift compared to Q1 2024, indicating growing market interest [14] Company Strategy and Development Direction - The company is focused on strategic repositioning, actively choosing to exit low-margin business in favor of higher value, technically demanding business [16] - The goal for the Specialty Chemicals segment is to grow from $80 million a year to $120 million by 2030, with growth expected to start in the second half of 2025 [34] Management's Comments on Operating Environment and Future Outlook - Management noted that while there has been some improvement in Q1, demand remains soft, and stabilization activities are still ongoing [30] - The company is committed to capital preservation and disciplined execution while evaluating capital deployment options post-divestiture [22] Other Important Information - The company ended the quarter with $14.3 million in cash and no debt before the divestiture of Bristol assets for $45 million, providing significant flexibility [22] - The company repurchased approximately 17,000 shares at an average price of $12.73, reinforcing confidence in intrinsic value and long-term fundamentals [22] Q&A Session Summary Question: Is the ornamental stainless domestic manufacturer a more attractive target now? - Management indicated that while there are additional looks due to tariffs, demand remains incredibly soft and has not materially changed [30] Question: Will guidance be provided for 2025? - Management stated that it is too premature to provide guidance as stabilization activities are still ongoing [32][33] Question: Is the growth plan for chemicals to reach $120 million by 2030? - Management confirmed that growth is expected to start in the second half of the year, leading to a more compelling top line in 2026 [34] Question: Can this growth be achieved with existing capacity and minimal CapEx? - Management affirmed that organic growth can be achieved with current capacity and a reasonable CapEx assumption of $1 to $3 million per year [37] Question: Is the stock still considered undervalued? - Management expressed a personal opinion that the stock is indeed undervalued at current levels [39]

Financial Performance - Consolidated net sales for Q1 2025 were $24.7 million, a decrease of $3.2 million, or 11.5%, compared to Q1 2024, primarily due to a 22.8% decrease in pounds shipped [90]. - Consolidated gross profit increased 105.5% to $4.8 million, or 19.3% of sales, compared to $2.3 million, or 8.3% of sales in Q1 2024, driven by lower raw material costs [91]. - Consolidated SG&A expenses decreased by $1.1 million to $5.6 million, or 22.5% of sales, compared to $6.7 million, or 23.9% of sales in Q1 2024 [92]. - Operating loss for Q1 2025 was $1.0 million, an improvement from an operating loss of $4.3 million in Q1 2024, due to increased gross profit and reduced SG&A expenses [93]. - Consolidated EBITDA for Q1 2025 was $543,000, compared to a negative EBITDA of $2.8 million in Q1 2024, with Adjusted EBITDA at $844,000 [106]. Segment Performance - Specialty Chemicals segment net sales decreased by $2.5 million, or 12.1%, to $17.8 million in Q1 2025, driven by a 24.8% decrease in pounds shipped [94]. - Tubular Products segment net sales totaled $6.9 million, a decrease of $0.8 million, or 9.9%, from Q1 2024, primarily due to a 5.9% decrease in pounds shipped [98]. Cash Flow and Liquidity - Cash flows from operating activities for Q1 2025 were negative $262,000, compared to positive cash flow of $584,000 in Q1 2024 [110]. - Operating cash flows decreased by $1.2 million in Q1 2025 compared to an increase of $3.8 million in Q1 2024, primarily due to inventory changes [111]. - Accounts payable increased operating cash flows by $1.5 million in Q1 2025, compared to $1.2 million in Q1 2024 [111]. - As of March 31, 2025, the company held $14.3 million in cash and cash equivalents and had $53.3 million of remaining available capacity on its revolving line of credit [109]. Investment and Financing Activities - The divestiture of Bristol Metals, LLC was completed on April 4, 2025, for approximately $45 million in cash proceeds [87]. - Net cash used in investing activities increased due to higher capital expenditures in Q1 2025 compared to Q1 2024 [112]. - Cash used in financing activities increased due to higher common stock repurchases in Q1 2025 [113]. - The company had no debt outstanding as of March 31, 2025, and December 31, 2024 [113]. Financial Ratios and Obligations - The current ratio decreased from 3.1 as of December 31, 2024, to 2.5 as of March 31, 2025 [119]. - Return on average equity improved from (25.8)% in Q4 2024 to (1.9)% in Q1 2025 [119]. - The company has $32.5 million in operating and finance lease obligations, with $1.9 million payable within 12 months [120]. - Capital spending is expected to be as much as $2.0 million for the remainder of fiscal 2025 [120]. - As of March 31, 2025, the company has 983,923 shares remaining under its share repurchase authorization [117].