Ascent Industries (ACNT) - 2024 Q2 - Quarterly Results

Financial Performance - Net sales from continuing operations for Q2 2024 were $50.2 million, a slight decline of 0.4$50.4 million in Q2 2023[5]. - Gross profit increased to $5.9 million, representing a gross profit margin of 11.7$(0.8) million and a margin of (1.5)% in Q2 2023[6]. - Adjusted EBITDA improved significantly to $2.1 million with an adjusted EBITDA margin of 4.2$(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$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$84,000 for the six months ended June 30, 2024, a significant improvement from $(17,171,000) in the same period of 2023[29].