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Ascent Industries (ACNT) - 2024 Q3 - Quarterly Results
ACNTAscent Industries (ACNT)2024-11-12 22:05

Financial Performance - Net sales for Q3 2024 were 42.9million,adecreaseof8.242.9 million, a decrease of 8.2% from 46.7 million in Q3 2023[2] - Gross profit increased by 116.5% to 6.5million,withagrossprofitmarginof15.16.5 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,comparedtoanetlossof0.69, compared to a net loss of 14.7 million, or 1.45pershare,inQ32023[2][7]−AdjustedEBITDAroseto1.45 per share, in Q3 2023[2][7] - Adjusted EBITDA rose to 2.5 million from a loss of 1.5millioninQ32023,withanadjustedEBITDAmarginof5.71.5 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 37,767thousandinthesameperiodof2023[25]−Thecompanyreportedalossfromcontinuingoperationsof37,767 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 14,678thousandinQ32023[24]−AdjustedEBITDAforthesameperiodwas14,678 thousand in Q3 2023[24] - Adjusted EBITDA for the same period was 2,450,000, compared to an adjusted EBITDA loss of 1,505,000intheprioryear,representingasignificantturnaround[27]−Thecompany′sadjustedEBITDAasapercentageofsalesimprovedto5.71,505,000 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 1.5million[9]−AscentTubularsegmentnetsalesdecreasedto1.5 million[9] - Ascent Tubular segment net sales decreased to 22.0 million from 26.7million,butadjustedEBITDAincreasedsignificantlyto26.7 million, but adjusted EBITDA increased significantly to 2.4 million[10] - Specialty Chemicals sales increased by 4.1% to 20,878thousandinQ32024comparedto20,878 thousand in Q3 2024 compared to 20,052 thousand in Q3 2023[24] - Operating income from Tubular Products improved to 1,653thousandinQ32024fromalossof1,653 thousand in Q3 2024 from a loss of 620 thousand in Q3 2023[24] - Specialty Chemicals segment reported a net income of 367,000,arecoveryfromanetlossof367,000, 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,comparedtoanetlossof1,653,000, compared to a net loss of 620,000 in the same quarter of 2023[27] Cash and Assets - The company had 8.5millionincashandcashequivalentsandnodebtoutstandingasofSeptember30,2024[11]−Cashandcashequivalentsattheendoftheperiodincreasedto8.5 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 730thousandinQ32023[25]−Totalassetsdecreasedto730 thousand in Q3 2023[25] - Total assets decreased to 148.6 million from 163.3millionattheendof2023[22]CostManagementandStrategy−Thecompanyhasimplementedaggressivecostmanagementandproductlineoptimizationstrategiestoimproveprofitability[4]−Interestexpensedecreasedsignificantlyto163.3 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 1,063thousandinQ32023[24]−Thecompanyincurredacquisitioncostsof1,063 thousand in Q3 2023[24] - The company incurred acquisition costs of 2 thousand in Q3 2024, compared to 274thousandinQ32023[24]−Totaldepreciationexpenseforthethreemonthswas274 thousand in Q3 2023[24] - Total depreciation expense for the three months was 1,438,000, slightly down from 1,522,000inthesamequarterof2023[27]−Thecompanyincurredgoodwillimpairmentof1,522,000 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 60,000innon−cashleaseexpensesforthequarter,downfrom60,000 in non-cash lease expenses for the quarter, down from 63,000 in the prior year[27] - Restructuring and severance costs were recorded at 208,000fortheninemonthsendedSeptember30,2024,comparedto208,000 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]