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].

Financial Performance - Net sales for Q1 2025 were $24.7 million, a decrease of 11.8% compared to $28.0 million in Q1 2024[3]. - Net sales for Q1 2025 were $24,732, a decrease of 11.3% from $27,952 in Q1 2024[27]. - Gross profit increased by 108.7% to $4.8 million, with a gross profit margin of 19.4%, up 1,120 basis points from 8.2% in Q1 2024[3][7]. - Net loss improved to $1.0 million, or a diluted loss per share of $0.10, compared to a net loss of $5.5 million, or $0.37 per share, in Q1 2024[3][8]. - Operating loss from continuing operations was $1,035 in Q1 2025, improved from a loss of $4,343 in Q1 2024[27]. - Net loss for Q1 2025 was $2,293, a reduction from a net loss of $5,493 in Q1 2024[28]. - Interest expense, net for Q1 2025 was $115, slightly down from $127 in Q1 2024[29]. Adjusted EBITDA - Adjusted EBITDA rose to $0.8 million from a loss of $2.7 million in Q1 2024, with an adjusted EBITDA margin of 3.4% compared to (9.6)% in the prior year[3][9]. - Adjusted EBITDA for Q1 2025 was $844, representing 3.4% of sales, compared to a negative 9.6% in Q1 2024[29]. - Specialty Chemicals segment reported an Adjusted EBITDA of $1,970, which is 11.0% of segment sales, compared to a negative 1.4% in Q1 2024[29]. - Tubular Products segment achieved an Adjusted EBITDA of $1,309, representing 19.0% of segment sales, up from 3.5% in Q1 2024[29]. - Ascent Chemicals segment net sales were $17.8 million, down 12.3% from $20.3 million in Q1 2024, but adjusted EBITDA increased to $2.0 million from a loss of $0.3 million[10][11]. - Ascent Tubular segment net sales were $6.9 million, down from $7.7 million in Q1 2024, with adjusted EBITDA increasing to $1.3 million from $0.3 million[12]. Cash and Debt Position - As of March 31, 2025, the company had $14.3 million in cash and cash equivalents, with no debt outstanding under its revolving credit facilities[14]. - Cash and cash equivalents at the end of Q1 2025 were $14,272, up from $1,299 at the end of Q1 2024[28]. - The company repurchased 16,822 shares at an average cost of $12.73 per share for approximately $0.2 million during the quarter[15]. Strategic Focus - Management emphasized a shift from stabilization to growth mode, focusing on high-quality organic growth opportunities[5]. - The company sold substantially all assets of Bristol Metals, LLC for $45 million in cash, impacting its financial results[13]. - The company incurred acquisition costs of $3 in Q1 2025, with no such costs reported in Q1 2024[27]. Share Information - Average shares outstanding remained stable at 10,076 for both basic and diluted shares in Q1 2025[27].

Summary of Ascent Industries (ACNT) FY Conference Call - May 05, 2025 Company Overview - Ascent Industries is a 75-year-old industrial manufacturing company with two operating segments: Specialty Chemicals and Stainless Steel Tubular Assets [6][8] - The management team, including Brian and Ryan, has a history of successfully turning around companies, previously achieving a turnaround from a loss of $8 million to an adjusted EBITDA of $35 million at Clearon [4][5] Financial Performance - In 2024, Ascent Industries achieved a turnaround of approximately $20 million in adjusted EBITDA, with significant improvements in gross profit and working capital [9][10] - The company sold one of its stainless steel tubular holdings for $45 million, which is a 10% premium on book value [12][13] - Ascent currently has $55 million in cash on hand and aims to build a scalable, high-quality business [16][34] Strategic Focus - The company is in the final stages of a turnaround and portfolio optimization, with a focus on organic growth and the final divestiture of its remaining stainless steel asset [8][31] - Ascent aims to shift its product mix from 75% custom manufacturing and 25% branded products to a target of 65% branded products over time [20][46] - The total addressable market (TAM) for Ascent's branded products is approximately $9.2 billion, covering various sectors including oil and gas, personal care, and coatings [37][38] Market Dynamics - Ascent's competitive landscape is intense in custom manufacturing, but the company can compete effectively in the branded products space by targeting small to mid-tier customers [48][50] - The company is actively working on reshoring supply chains for critical ingredients, which is seen as a potential tailwind for future growth [45] Margin Improvement - The gross margin was improved from sub-10% to low teens, with a target of achieving gross margins of no less than 30% in the long term [24][26] - The company plans to maintain SG&A expenses at no higher than 15% and target adjusted EBITDA of around 15% [26] Capital Allocation and Growth Strategy - Ascent is considering share repurchases as an option but is focused on maintaining flexibility for organic and inorganic growth opportunities [55][60] - The company is selective in pursuing M&A opportunities, emphasizing the importance of not acquiring assets that could exacerbate existing underutilization issues [61][63] - The remaining tubular asset is expected to generate $4-6 million in adjusted EBITDA annually, with plans to divest it ideally within the year [64][66] Conclusion - Ascent Industries is positioned for growth with a strong balance sheet and a clear focus on enhancing its specialty chemicals business while optimizing its portfolio [34][35] - The management team is optimistic about the future, citing a disciplined approach to growth and a commitment to improving operational efficiency [70][72]

Group 1 - The introduction of 25% tariffs on steel and aluminium will take effect from March 12, 2025, with no exceptions granted to any countries [1] - Investors are encouraged to monitor local steel manufacturers as potential investment opportunities due to the impact of these tariffs [1]

Financial Data and Key Metrics Changes - The company reported a net sales decline to $40.7 million in Q4 2024 from $41.2 million in Q4 2023, attributed to lower volume but higher pricing in specialty chemicals [32] - Adjusted EBITDA increased to $2.6 million in Q4 2024 from negative $5.9 million in Q4 2023, with an adjusted EBITDA margin of 6.3% compared to negative 14.4% in the prior year [35] - For the full year 2024, net sales were $177.9 million, down from $193.2 million in 2023, while gross profit increased significantly to $22.1 million or 12.4% of net sales compared to $1.5 million or 0.8% in 2023 [36] Business Segment Data and Key Metrics Changes - The tubular products segment experienced a year-over-year sales decline of $12.4 million but increased segment-level gross profit by approximately $15 million due to cost management and product line optimization [16] - The specialty chemicals segment achieved its highest quarterly adjusted EBITDA since Q2 2022, driven by a 14% increase in gross margin despite moderate top-line compression [19] Market Data and Key Metrics Changes - The company noted that domestic investments in energy and infrastructure are beginning to translate into increased demand, with a stronger order backlog than in the past four years [17] - The total addressable market for the specialty chemicals segment is over $9 billion, with a focus on branded products that recorded a double-digit year-over-year increase in sales [20][22] Company Strategy and Development Direction - The company aims to maximize asset value in the tubular product segment while investing in profitable growth in specialty chemicals [7] - There is a commitment to organic growth through branded product sales and a disciplined approach to potential acquisitions [25] Management's Comments on Operating Environment and Future Outlook - Management expressed pragmatic optimism for 2025, indicating that while market dynamics are improving, significant changes are not expected in the first half of the year [17] - The company is focused on driving growth while maintaining operational excellence and has a strong liquidity position with over $16 million in cash [8][39] Other Important Information - The company has initiated a stock repurchase program, allowing for the acquisition of up to an additional one million shares over the next 24 months [9] - The company remains debt-free and generated nearly $15 million in free cash flow throughout the year [15][39] Q&A Session Summary Question: What are the expectations for top-line growth in 2025? - Management indicated that top-line growth is more likely to be a second-half opportunity, with no material changes expected in the first half [44] Question: What contributed to the significant cash growth from Q3 to Q4? - The increase in cash was primarily driven by optimizing idle inventory and improved cash conversion cycles [48][49] Question: How is the new cleaning portfolio being received in the market? - The reception was positive, with new opportunities being pursued following the launch at a cleaning conference [55] Question: What is the outlook for margin improvement in the chemicals segment? - There is potential for ongoing margin improvement as branded product sales increase, although further price increases may not be anticipated [61] Question: Is the share repurchase goal achievable given past buyback trends? - Management clarified that the buyback program provides flexibility and is contingent on market conditions and share price [64] Question: Where does management see the company a year from now? - The focus is on pivoting to growth, both organically and inorganically, with plans to fill underutilized assets with high-value applications [68]

Financial Data and Key Metrics Changes - The company reported a 125% year-over-year increase in adjusted EBITDA, reaching $19.9 million, while gross profit increased by 1,349% to $20.5 million despite a top-line compression of $15.3 million or 7.9% [14][36] - For the fourth quarter, net sales from continuing operations were $40.7 million, slightly down from $41.2 million in the same quarter of 2023, with gross profit increasing to $7.3 million from a loss of $2.1 million [32][33] - The full-year net sales decreased to $177.9 million from $193.2 million in 2023, but gross profit rose significantly to $22.1 million from $1.5 million [36][37] Business Segment Data and Key Metrics Changes - In the tubular products segment, there was a year-over-year sales decline of $12.4 million, but segment-level gross profit increased by approximately $15 million due to cost management and product line optimization [16] - The specialty chemicals segment achieved its highest quarterly adjusted EBITDA since Q2 2022, driven by a 14% increase in gross margin despite moderate top-line compression [19][20] - Branded product sales in the specialty chemicals segment recorded a double-digit year-over-year increase, primarily driven by efforts in the oil and gas market [22] Market Data and Key Metrics Changes - The total addressable market for the specialty chemicals segment is over $9 billion, with a specific focus on branded products that offer faster cycle times and predictable demand [20] - The company noted a stronger order backlog in the tubular segment than it has seen in four years, indicating improving market dynamics [17] Company Strategy and Development Direction - The company plans to maximize the value of its assets in the tubular product segment while investing in profitable growth in the specialty chemicals segment [7][8] - There is a focus on organic growth within existing product portfolios and underutilized capabilities, with a commitment to high-potential strategic initiatives [25][24] - The company has expanded its stock repurchase program, allowing for the acquisition of up to an additional one million shares over the next 24 months [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's foundation and its ability to drive growth while maintaining operational excellence [8][10] - The outlook for top-line growth is more optimistic for the second half of 2025, with expectations of market share gains rather than market-driven growth [44] - Management highlighted the importance of domestic sourcing and supply chain optimization as a competitive advantage [57][58] Other Important Information - The company remains debt-free with $16 million in cash and $47 million available on its revolving credit facility, positioning it well for future investments [39] - A total of 101,263 shares were repurchased for approximately $1 million during the year [40] Q&A Session Summary Question: Where do you see top-line growth starting? - Management indicated that top-line growth is expected more in the second half of 2025, with any uptick likely due to market share gains rather than market recovery [44] Question: What contributed to the growth in cash from Q3 to Q4? - The increase in cash was primarily driven by optimizing idle inventory and improved cash conversion cycles [48][49] Question: Any updates on underutilized assets? - Management confirmed the sale of a smaller warehouse and mentioned ongoing efforts to find a permanent solution for other underutilized assets [52] Question: How is the new cleaning portfolio being accepted? - The reception was positive, with new opportunities being pursued following the launch at a cleaning conference [55] Question: Is there potential for further margin improvement in chemicals? - Management believes there is potential for ongoing margin improvement as branded product sales increase, although significant price increases are not anticipated for 2025 [61] Question: Is the share repurchase plan feasible? - Management stated that the plan provides optionality and is contingent on market conditions and share price [64] Question: Where do you see the company a year from now? - Management emphasized a pivot to growth, focusing on filling underutilized assets with high-value applications [68]

Revenue and Sales Performance - Specialty Chemicals segment generated approximately 12% of its revenues from one customer in 2024, down from 24% in 2023[20] - Tubular Products segment had one customer accounting for approximately 18% of revenues in 2024 and 17% in 2023[21] - Net sales from continuing operations for the full-year 2024 decreased by $15.3 million, or 7.9%, to $177.9 million compared to 2023, primarily due to an 8.8% decrease in average selling prices and a 0.9% decrease in pounds shipped[98] - Net sales for the Specialty Chemicals segment decreased by 3.4%, or $2.9 million, to $80.8 million in 2024, driven by a 3.4% decrease in pounds shipped and a 2.6% decrease in average selling prices[101] - Net sales for the Tubular Products segment decreased by 11.3% to $97.1 million in 2024, primarily due to a 16.8% decrease in average selling prices, despite a 5.5% increase in pounds shipped[106] - Ascent Industries Co. reported net sales of $177.872 million for the year ended December 31, 2024, a decrease of 7.1% from $193.179 million in 2023[166] Financial Position and Liquidity - The company ended fiscal 2024 with no outstanding debt, $16.1 million in cash and cash equivalents, and $47.4 million of remaining available capacity on its revolving line of credit, providing flexibility for future growth opportunities[95] - Cash provided by operating activities increased to $17.0 million in 2024 from $6.6 million in 2023, driven by changes in working capital[120] - Cash and cash equivalents increased significantly to $16.108 million in 2024, up from $1.851 million in 2023, indicating better liquidity[165] - Total current assets decreased to $83.071 million in 2024, down from $89.413 million in 2023, primarily due to a reduction in inventories[165] - Total liabilities decreased to $53.705 million in 2024, compared to $55.885 million in 2023, reflecting improved financial management[165] - The Company had a current ratio of 3.8 for the year ended December 31, 2024, compared to 3.7 in 2023[132] Profitability and Operating Results - Full-year 2024 gross profit from continuing operations increased by 1349.1% to $22.1 million, or 12.4% of sales, compared to $1.5 million, or 0.8% of sales, in 2023, driven by improved strategic sourcing initiatives and lower raw material costs[99] - Operating loss from continuing operations improved to $5.1 million in 2024 compared to a loss of $37.4 million in 2023, primarily due to increased gross profit and absence of prior year goodwill impairment[100] - The company reported a net loss of $13.598 million for 2024, an improvement from a net loss of $26.629 million in 2023[166] - The return on average equity (ROAE) improved to (11.3)% in 2024 from (38.6)% in 2023[132] Operational Challenges and Risks - The Specialty Chemicals segment is vulnerable to supply chain disruptions, which could adversely affect sales and earnings due to reliance on key suppliers[47] - Operating results are sensitive to energy and freight costs, with potential increases in operating costs that may not be recoverable through price increases[48] - Production facilities are subject to hazards that could lead to material shutdowns or reduced production, impacting the ability to fulfill customer orders[49] - The company faces significant risks of injury and liabilities associated with industrial activities, despite compliance with safety regulations[50] - The company faces significant competition in all areas of its business, which may adversely affect profitability and market share due to larger competitors with greater financial resources[73] Employee and Labor Relations - The company had 452 employees as of December 31, 2024, with a voluntary turnover rate of approximately 22%[28][29] - The company has 181 employees represented by unions, approximately 40% of total employees, with collective bargaining agreements expiring in 2027[62] Corporate Governance and Compliance - Material weaknesses in internal controls over financial reporting have been identified, potentially affecting investor confidence and the market price of securities[75] - The company identified material weaknesses in internal controls, particularly in information technology and revenue recognition processes, which could affect financial reporting[158] - Cybersecurity risks and incidents could disrupt operations and adversely affect financial data, despite the implementation of internal control and security measures[77] - The company has a cybersecurity risk management program in place, overseen by the Board of Directors and the Audit Committee, to protect critical systems and infrastructure[81] Capital Expenditures and Investments - The Company expects capital spending in fiscal 2025 to be as much as $7.6 million[133] - Capital expenditures not yet paid amounted to $267,000 in 2024, down from $653,000 in 2023, reflecting a decrease in investment commitments[168] Shareholder Activities - The Company repurchased 101,263 shares of common stock in 2024 at an average price of $10.21 per share, totaling $1,037,346[131] - The previous share repurchase program allowed for the repurchase of up to 790,383 shares, which expired on February 17, 2025; a new program allows for up to 1.0 million shares over 24 months[130] - The company has not declared or paid dividends in 2024 or 2023, with a credit agreement restricting dividend payments[89] Asset Management - The Company recorded an obsolete inventory reserve of $5.5 million as of December 31, 2024, a decrease of approximately $0.1 million during the year[140] - The company experienced a reduction in accounts receivable from $26,604,000 in 2023 to $23,880,000 in 2024, a decrease of approximately 10%[179] - The allowance for credit losses decreased from $463,000 in 2023 to $345,000 in 2024, representing a 25% reduction[181] Acquisitions and Divestitures - On December 22, 2023, the Company sold substantially all assets of Specialty Pipe & Tube, Inc. for approximately $55 million[24] - The Company engages in acquisitions and divestitures, which may present integration challenges and affect anticipated financial benefits[69]

Financial Performance - Q4 2024 net sales were $40.7 million, a decrease of 1.3% from $41.2 million in Q4 2023[2] - Q4 2024 gross profit increased to $7.3 million, a 438.4% improvement from a gross loss of $2.1 million in Q4 2023, resulting in a gross profit margin of 17.9%[2][7] - Q4 2024 net income improved to $0.1 million, compared to a net loss of $7.5 million in Q4 2023, with diluted earnings per share of $0.01[2][8] - Full year 2024 net sales were $177.9 million, down 7.9% from $193.2 million in 2023[3][10] - Full year 2024 gross profit rose to $22.1 million, a 1349.3% increase from $1.5 million in 2023, with a gross profit margin of 12.4%[3][11] - Full year 2024 net loss was $11.2 million, significantly improved from a net loss of $34.2 million in 2023, with diluted loss per share of $1.11[3][12] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $2.6 million, compared to a loss of $5.9 million in Q4 2023, with an adjusted EBITDA margin of 6.3%[2][9] - Full year 2024 adjusted EBITDA increased to $4.0 million from a loss of $15.9 million in 2023, representing an adjusted EBITDA margin of 2.3%[3][13] - Adjusted EBITDA for the year ended December 31, 2024 was $4,013,000, compared to a loss of $15,934,000 in 2023, indicating a turnaround in operational performance[29] Cash and Assets - As of December 31, 2024, the company had $16.1 million in cash and cash equivalents, with no debt outstanding[18] - Cash and cash equivalents increased from $1,851,000 at the end of 2023 to $16,108,000 at the end of 2024, representing a growth of 769.5%[30] - Total assets decreased from $163,295,000 in December 31, 2023 to $147,250,000 in December 31, 2024, a decline of approximately 9.8%[28] Liabilities and Retained Earnings - Total current liabilities decreased from $24,789,000 in 2023 to $22,280,000 in 2024, a reduction of approximately 10.1%[28] - Retained earnings decreased from $58,517,000 in 2023 to $44,919,000 in 2024, a decline of about 23.3%[28] Segment Performance - Specialty Chemicals segment achieved an adjusted EBITDA of $6,332 for the year ended December 31, 2024, up from $3,424 in 2023, with a segment sales margin of 7.8%[31] - Tubular Products segment reported an adjusted EBITDA of $5,652 for the year ended December 31, 2024, compared to a loss of $7,797 in 2023, with a segment sales margin of 5.8%[31] - The company’s net income from continuing operations for the Tubular Products segment improved to $2,649 in 2024, compared to a loss of $11,210 in 2023[31] Other Financial Metrics - Operating loss for the year ended December 31, 2024 was $5,096,000, compared to an operating loss of $37,430,000 in 2023, showing significant improvement[29] - Net loss for the year ended December 31, 2024 was $13,598,000, an improvement from a net loss of $26,629,000 in 2023[30] - Interest expense for the three months ended December 31, 2024, was $95, a decrease from $1,021 in the same period of 2023[31] - Depreciation expense for the year ended December 31, 2024, totaled $5,936, slightly down from $6,161 in 2023[31] - The company incurred acquisition costs of $692 for the year ended December 31, 2024, down from $856 in 2023[31] - Stock-based compensation for the year ended December 31, 2024, was $204, down from $594 in 2023[31] - The company reported a goodwill impairment of $11,389 in 2023, which was not repeated in 2024[31] Future Outlook - The company anticipates positive momentum in 2025 due to favorable market dynamics and a growing pipeline of opportunities for organic growth[5]

Financial Data and Key Metrics Changes - Net sales from continuing operations were $42.9 million, down from $46.7 million in the prior year period, primarily due to lower volumes across both segments and lower pricing within Tubular Products [28] - Gross profit from continuing operations increased 117% to $6.5 million compared to $3 million in the third quarter of 2023, with gross margin rising to 15.1% from 6.4% [29] - Net loss from continuing operations improved to $7 million or $0.69 diluted loss per share, compared to a net loss of $14.7 million or $1.45 diluted loss per share for the same quarter last year [30] - Adjusted EBITDA increased significantly to $2.5 million compared to negative $1.5 million in the same period last year, with adjusted EBITDA margin improving to 5.7% from negative 3.2% [32] - The company remains debt-free with $8.5 million in cash and access to $57.5 million in borrowing availability under its revolving credit facility [33] Business Line Data and Key Metrics Changes - Tubular Products segment outperformed its prior seven quarters despite reduced demand, indicating operational profitability even in challenging market conditions [20] - Specialty Chemicals segment matched Q2 earnings with 25% less volume, achieving a 67% year-over-year improvement in gross margin [22][23] - The Specialty Chemicals segment delivered a 30% gain in average sales price versus Q2 and a 27% gain versus Q3 of 2023 [24] Market Data and Key Metrics Changes - The company experienced soft demand throughout the quarter, leading to a decline in volumes across both segments [10] - There are indications of increasing inbound quotation opportunities across several markets, suggesting a potential market recovery [36] Company Strategy and Development Direction - The company plans to optimize operations, drive efficiencies, and increase margins within the Tubular Products segment while investing for growth in the Specialty Chemicals segment [11] - Capital allocation priorities remain focused on maintaining a strong liquidity position and repurchasing shares while evaluating growth opportunities [12][13] - The company aims to stabilize the Specialty Chemicals segment ahead of schedule and is looking beyond organic growth [25] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding market conditions, noting improvements in quotation opportunities [36] - The company is focused on continuous improvement and operational discipline, with plans for incremental growth in the future [44][45] - Management highlighted the importance of agility and resilience in overcoming challenges, particularly in response to Hurricane Helene [18][26] Other Important Information - The company has been actively working on restoring credibility within the market, attending investor conferences, and engaging with stakeholders [14] - A one-time non-cash tax charge of $6.2 million related to deferred tax assets was noted, which does not affect overall operating profit [30] Q&A Session Summary Question: Observations on Tubular business and market bottom - Management is cautiously optimistic about an increase in inbound quotation opportunities across several markets [36] Question: Increase in cash on the books - The cash increase is attributed to operational efficiencies and monetizing slow-moving inventory, along with asset sales [37] Question: Future asset sales or purchases - The focus will be on right-sizing inventory and generating cash rather than pursuing additional asset sales [38] Question: M&A environment in specialty chemicals - Activity levels for M&A are picking up, but pricing remains uncertain [41] Question: Onshoring opportunities - There is potential for the company to participate in domestic manufacturing opportunities [43] Question: Margin targets and cash flow guidance for 2025 - The company is in the process of budgeting for 2025, aiming for continuous improvement and cash growth [44][45] Question: Potential for larger buybacks - Management indicated that increased liquidity and operational confidence could lead to more options for share buybacks [48]