Ascent Industries (ACNT) - 2025 Q1 - Quarterly Report

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$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$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$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)$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].