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]

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]

Financial Performance - Consolidated net sales for Q3 2024 were $42.9 million, a decrease of $3.8 million, or 8.2%, compared to Q3 2023, primarily due to a 7.3% decrease in average selling prices and a 2.0% decrease in pounds shipped [93]. - For the first nine months of 2024, consolidated net sales were $137.2 million, a decrease of $14.8 million, or 9.7%, driven by a 14.2% decrease in average selling prices, partially offset by a 3.0% increase in pounds shipped [94]. - Consolidated gross profit for Q3 2024 increased 116.5% to $6.5 million, or 15.1% of sales, compared to $3.0 million, or 6.4% of sales in Q3 2023 [95]. - Operating income for Q3 2024 was $0.5 million, compared to an operating loss of $15.1 million in Q3 2023, driven by increased gross profit and reduced prior year goodwill impairment [97]. - Specialty Chemicals segment net sales for Q3 2024 totaled $20.9 million, an increase of $0.8 million, or 4.1%, from Q3 2023, driven by a 6.1% increase in average selling prices [98]. - Tubular Products segment net sales for Q3 2024 totaled $22.0 million, a decrease of $4.7 million, or 17.5%, primarily due to a 17.2% decrease in average selling prices [105]. Expenses and Income - SG&A expenses for Q3 2024 decreased to $6.0 million, or 14.0% of sales, compared to $6.7 million, or 14.3% of sales in Q3 2023 [97]. - Interest expense for Q3 2024 decreased to $0.1 million, down from $1.1 million in Q3 2023, primarily due to lower outstanding debt [113]. - Unallocated corporate expenses for Q3 2024 decreased by $1.4 million, or 46.2%, to $1.6 million, or 3.7% of sales, compared to $3.0 million, or 6.4% of sales in the prior year [111]. - For the three months ended September 30, 2024, the company reported an EBITDA of $2,397,000, compared to a loss of $13,097,000 for the same period in 2023 [118]. - The adjusted EBITDA for the nine months ended September 30, 2024, was $1,446,000, a significant improvement from a loss of $9,993,000 in the same period of 2023 [118]. - The company achieved a net income of $367,000 in the specialty chemicals segment for the three months ended September 30, 2024, compared to a net loss of $11,498,000 in the same period of 2023 [119]. - Tubular products segment reported an EBITDA of $2,327,000 for the three months ended September 30, 2024, compared to $156,000 in the same period of 2023 [120]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2024, was $7,445,000, an increase from $4,002,000 in the same period of 2023 [123]. - As of September 30, 2024, the company held $8.5 million in cash and cash equivalents and had $57.5 million available on its revolving line of credit [122]. - The company experienced a net increase in cash and cash equivalents of $5,486,000 for the nine months ended September 30, 2024, compared to a decrease of $17,842,000 in the same period of 2023 [123]. - The company had no debt outstanding under its credit facilities as of September 30, 2024 [129]. - The company is in compliance with all financial debt covenants as of September 30, 2024 [130]. - Current ratio improved to 3.8 as of September 30, 2024, compared to 3.7 on December 31, 2023 [135]. - Operating and finance lease obligations totaled $33.3 million, with $1.7 million payable within the next 12 months [136]. Capital Expenditures and Financial Position - Capital spending is expected to be as much as $0.8 million for the remainder of fiscal 2024 [137]. - No off-balance sheet arrangements are expected to materially affect the company's financial position [137]. - There have been no significant changes in accounting policies or critical estimates since the end of fiscal 2023 [138]. - Return on average equity (ROAE) improved to (14.4)% as of September 30, 2024, from (38.6)% on December 31, 2023 [135]. - The company repurchased 42,623 shares at an average price of $9.79 during the three months ended September 30, 2024, totaling $418,563 [132].

Financial Performance - Net sales for Q3 2024 were $42.9 million, a decrease of 8.2% from $46.7 million in Q3 2023[2] - Gross profit increased by 116.5% to $6.5 million, with a gross profit margin of 15.1%, up from 6.4% in the prior year[2][6] - Net loss improved to $7.0 million, or a diluted loss per share of $0.69, compared to a net loss of $14.7 million, or $1.45 per share, in Q3 2023[2][7] - Adjusted EBITDA rose to $2.5 million from a loss of $1.5 million in Q3 2023, with an adjusted EBITDA margin of 5.7% compared to (3.2)% in the prior year[2][8] - Net loss for the nine months ended September 30, 2024, was $12,571 thousand, an improvement from a net loss of $37,767 thousand in the same period of 2023[25] - The company reported a loss from continuing operations of $7,016 thousand in Q3 2024, an improvement from a loss of $14,678 thousand in Q3 2023[24] - Adjusted EBITDA for the same period was $2,450,000, compared to an adjusted EBITDA loss of $1,505,000 in the prior year, representing a significant turnaround[27] - The company's adjusted EBITDA as a percentage of sales improved to 5.7% from a negative 3.2% year-over-year[27] Segment Performance - Ascent Chemicals segment net sales increased by 4% to $20.9 million, with adjusted EBITDA rising 47% to $1.5 million[9] - Ascent Tubular segment net sales decreased to $22.0 million from $26.7 million, but adjusted EBITDA increased significantly to $2.4 million[10] - Specialty Chemicals sales increased by 4.1% to $20,878 thousand in Q3 2024 compared to $20,052 thousand in Q3 2023[24] - Operating income from Tubular Products improved to $1,653 thousand in Q3 2024 from a loss of $620 thousand in Q3 2023[24] - Specialty Chemicals segment reported a net income of $367,000, a recovery from a net loss of $11,498,000 in the previous year[27] - Tubular Products segment achieved a net income of $1,653,000, compared to a net loss of $620,000 in the same quarter of 2023[27] Cash and Assets - The company had $8.5 million in cash and cash equivalents and no debt outstanding as of September 30, 2024[11] - Cash and cash equivalents at the end of the period increased to $8,547 thousand in Q3 2024 from $730 thousand in Q3 2023[25] - Total assets decreased to $148.6 million from $163.3 million at the end of 2023[22] Cost Management and Strategy - The company has implemented aggressive cost management and product line optimization strategies to improve profitability[4] - Interest expense decreased significantly to $124 thousand in Q3 2024 from $1,063 thousand in Q3 2023[24] - The company incurred acquisition costs of $2 thousand in Q3 2024, compared to $274 thousand in Q3 2023[24] - Total depreciation expense for the three months was $1,438,000, slightly down from $1,522,000 in the same quarter of 2023[27] - The company incurred goodwill impairment of $11,389,000 in the previous year, which did not recur in the current quarter[27] - The company reported a total of $60,000 in non-cash lease expenses for the quarter, down from $63,000 in the prior year[27] - Restructuring and severance costs were recorded at $208,000 for the nine months ended September 30, 2024, compared to $90,000 in the same period of 2023[27] Future Outlook - Management expects revenue growth in the specialty chemicals segment to begin in 2025 due to ongoing business development efforts[3]

Financial Data and Key Metrics Changes - Net sales from continuing operations were $50.2 million, slightly down from $50.4 million in the prior year period, primarily due to decreased pricing across both segments [19] - Gross profit from continuing operations increased to $5.9 million compared to negative $0.8 million in the second quarter of 2023, with gross margin rising to 11.7% from negative 1.5% [20] - Net loss from continuing operations improved to $0.2 million, or $0.02 diluted loss per share, compared to a net loss of $6.1 million, or $0.60 diluted loss per share for the same quarter last year [20] - Adjusted EBITDA increased significantly to $2.1 million from negative $4.8 million in the same period last year, with adjusted EBITDA margin improving to 4.2% from negative 9.4% [21] Business Line Data and Key Metrics Changes - Tubular Products segment saw an 18% quarter-on-quarter volume growth, but unfavorable pricing impacted overall performance [12] - Specialty Chemicals segment achieved a 20% year-over-year volume gain, attributed to monetizing slow-moving inventory and new business wins [15] - Gross profit in the Tubular segment improved by 311% compared to the prior year, while the Specialty Chemicals segment saw a 466% increase in gross profit [13][18] Market Data and Key Metrics Changes - Demand across end markets remains soft, influenced by higher financing costs and tight management of working capital [12] - The company experienced a volume pickup due to efforts to clear slow-moving inventory, despite the broader demand environment remaining weak [6] Company Strategy and Development Direction - The company is focused on cost-cutting, operational efficiencies, and optimizing product mix across both segments [7] - Capital allocation priorities include maintaining liquidity while exploring opportunities for accretive investments [8] - The company aims to restore credibility with the market and enhance investor relations efforts [9] Management's Comments on Operating Environment and Future Outlook - Management expects demand to slowly improve through the remainder of the year, with more substantial growth opportunities anticipated in 2025 and beyond [6] - The company is optimistic about its strategic direction and believes it is on the right track to create durable value for shareholders [9] Other Important Information - The company ended the quarter with no outstanding debt under its revolving credit facility, providing $62.7 million in availability for future growth [22] - A definitive agreement was made to monetize certain assets associated with Munhall, generating $2.8 million in cash proceeds [14] Q&A Session Summary Question: Is it safe to assume that there will be margin improvement sequentially going forward? - Management confirmed that margin improvement is expected to continue as they evaluate product portfolios and optimize costs [24][25] Question: How's the cadence of the branded product sales and chemicals? - Management reported meaningful traction in branded product sales, with progress towards run rate volumes [26][27] Question: Regarding the $2.8 million asset sale for Munhall, will the cash be allowed to build until a decision is made on its use? - Management indicated that they will let the cash build while focusing on cost management and strategic reinvestments [30][31] Question: Is the potential for the company more than initially perceived? - Management expressed strong optimism about the company's prospects and foundational capabilities, indicating significant potential for improvement [33][34]

Financial Performance - Consolidated net sales for Q2 2024 were $50.2 million, a decrease of $0.2 million, or 0.3%, compared to Q2 2023, primarily due to a 19.1% decrease in average selling prices[95] - Consolidated gross profit for Q2 2024 increased 854.7% to $5.9 million, or 11.7% of sales, compared to a gross loss of $0.8 million in Q2 2023[96] - The operating loss for Q2 2024 was $0.3 million, significantly improved from an operating loss of $6.9 million in Q2 2023[97] - Consolidated net loss from continuing operations for Q2 2024 was $198, significantly improved from a loss of $6,149 in Q2 2023[109] - Adjusted EBITDA for Q2 2024 was $2,112, representing 4.2% of sales, compared to an adjusted EBITDA loss of $4,754 in Q2 2023[109] Segment Performance - Specialty Chemicals segment net sales for Q2 2024 totaled $21.5 million, an increase of $0.1 million, or 0.5%, driven by a 20.6% increase in pounds shipped[98] - Tubular Products segment net sales for Q2 2024 totaled $28.7 million, a decrease of $0.3 million, or 0.9%, primarily due to a 17.7% decrease in average selling prices[101] - Specialty Chemicals segment reported adjusted EBITDA of $1,700 for Q2 2024, which is 7.9% of segment sales, up from 1.5% in Q2 2023[110] - Tubular Products segment achieved adjusted EBITDA of $1,704 in Q2 2024, compared to an adjusted EBITDA loss of $2,467 in Q2 2023, with 5.9% of segment sales[112] Expenses and Charges - SG&A expenses for Q2 2024 decreased to $6.1 million, or 12.1% of sales, compared to $6.2 million, or 12.2% of sales in Q2 2023[97] - Interest expense for Q2 2024 decreased to $0.1 million from $1.0 million in Q2 2023, attributed to lower outstanding debt[106] - The company incurred asset impairment charges of $1.1 million related to the Munhall facility closure during the first half of 2024[92] Cash and Liquidity - Total cash provided by operating activities decreased to $2,951 in the first half of 2024 from $10,156 in the same period of 2023[111] - As of June 30, 2024, the company held $3.6 million in cash and cash equivalents and had $62.7 million available on its revolving line of credit[113] - The company had no long-term debt outstanding as of June 30, 2024, following a reduction in the maximum revolving loan commitment from $105 million to $80 million[119] - The current ratio decreased to 3.3 as of June 30, 2024, from 3.7 at the end of 2023, indicating a slight decline in liquidity[124] Capital and Shareholder Activities - The company expects capital spending to be as much as $4.8 million for the remainder of fiscal 2024[125] - Share repurchases for the first half of 2024 totaled 31,563 shares at an average price of $10.10, costing $319,798[122] Taxation - The effective tax rate for continuing operations was 18.0% for Q2 2024, higher than the U.S. statutory rate of 21.0% due to state tax benefits relative to pretax losses[106] Discontinued Operations - The divestiture of Specialty Pipe & Tube, Inc. resulted in approximately $55 million in cash proceeds, classified under discontinued operations[93]

Financial Performance - Net sales from continuing operations for Q2 2024 were $50.2 million, a slight decline of 0.4% compared to $50.4 million in Q2 2023[5]. - Gross profit increased to $5.9 million, representing a gross profit margin of 11.7%, compared to a gross loss of $(0.8) million and a margin of (1.5)% in Q2 2023[6]. - Adjusted EBITDA improved significantly to $2.1 million with an adjusted EBITDA margin of 4.2%, compared to $(4.8) million and (9.4)% in the prior year period[7]. - The net loss from continuing operations improved to $(0.2) million, or $(0.02) diluted loss per share, compared to a net loss of $(6.1) million, or $(0.60) diluted loss per share in Q2 2023[6]. - For the six months ended June 30, 2024, Ascent Industries reported a net loss of $6,419,000, a significant improvement from a net loss of $19,835,000 in the same period of 2023, indicating a reduction of approximately 67.6%[29]. - Adjusted EBITDA for the six months ended June 30, 2024, was $(1,003,000), an improvement from $(8,489,000) in the same period of 2023, showing a reduction in losses of approximately 88.2%[31]. - The Tubular Products segment achieved an Adjusted EBITDA of $992,000 for the six months ended June 30, 2024, compared to $(4,872,000) in the same period of 2023, marking a significant turnaround[31]. - Specialty Chemicals segment reported an Adjusted EBITDA of $1,410,000 for the six months ended June 30, 2024, compared to $2,811,000 in the same period of 2023, indicating a decline of approximately 50.1%[31]. Segment Performance - Ascent Chemicals segment net sales increased slightly to $21.5 million, with adjusted EBITDA rising to $1.7 million, or 7.9% of segment net sales, compared to 1.5% in the prior year[10]. - Ascent Tubular segment net sales were $28.7 million, with adjusted EBITDA increasing to $1.7 million, or 5.9% of segment net sales, compared to (8.5)% in Q2 2023[11]. Cash Flow and Debt - Net cash provided by operating activities for continuing operations was $2,951,000, down from $10,156,000 in the prior year, reflecting a decrease of about 70.9%[29]. - Cash and cash equivalents at the end of the period increased to $3,595,000 from $717,000 year-over-year, representing a substantial increase of approximately 401.4%[29]. - The company incurred $107,700,000 in borrowings from long-term debt during the six months ended June 30, 2024, compared to $139,137,000 in the same period of 2023, reflecting a decrease of about 22.6%[29]. - The company had no debt outstanding as of June 30, 2024, and $62.7 million available under its revolving credit facility[12]. Shareholder Actions - The company repurchased 15,233 shares at an average cost of $10.25 per share for approximately $0.2 million during the quarter[12]. Management Outlook - Management expressed optimism about achieving incremental financial improvements throughout the year while enhancing the quality of the business development pipeline[5]. - The company is focused on creating a more predictable and profitable operating model, with ongoing efforts to reduce costs and optimize product mix[4]. Inventory and Investment - The provision for losses on inventories was $906,000 for the six months ended June 30, 2024, down from $1,194,000 in the same period of 2023, indicating a reduction of approximately 24.1%[29]. - The company reported a net cash used in investing activities of $770,000 for the six months ended June 30, 2024, compared to $1,625,000 in the same period of 2023, showing a decrease of about 52.7%[29]. - The net cash provided by (used in) financing activities was $84,000 for the six months ended June 30, 2024, a significant improvement from $(17,171,000) in the same period of 2023[29].