Ascent Industries (ACNT) - 2024 Q2 - Quarterly Report

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]