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Ascent Industries (ACNT) - 2024 Q1 - Quarterly Results
ACNTAscent Industries (ACNT)2024-05-08 20:19

Financial Performance - Net sales for Q1 2024 were 44.1million,downfrom44.1 million, down from 54.9 million in Q1 2023, representing a decline of 19.6%[2] - Gross profit increased to 2.5million,withagrossprofitmarginof5.72.5 million, with a gross profit margin of 5.7%, compared to 1.5 million and 2.7% in Q1 2023, reflecting a 300 basis points improvement[2] - Net loss from continuing operations decreased to 4.7million,or4.7 million, or (0.47) diluted loss per share, compared to a net loss of 5.8million,or5.8 million, or (0.57) diluted loss per share in the prior year, a year-over-year improvement of 18.6%[2][4] - Adjusted EBITDA improved to (3.1)millionfrom(3.1) million from (3.7) million in Q1 2023, with an adjusted EBITDA margin of (7.1)% compared to (6.8)% in the prior year[6] - Net loss from continuing operations for Q1 2024 was 4,094,000,animprovementfromalossof4,094,000, an improvement from a loss of 5,788,000 in Q1 2023, representing a 29.3% reduction[33] - Adjusted EBITDA for Q1 2024 was (3,115,000),comparedto(3,115,000), compared to (3,735,000) in Q1 2023, indicating a 16.6% improvement year-over-year[33] - Specialty Chemicals segment reported a net loss of 1,458,000inQ12024,comparedtoanetincomeof1,458,000 in Q1 2024, compared to a net income of 1,342,000 in Q1 2023, reflecting a significant decline[34] - Tubular Products segment net loss from continuing operations was 1,502,000inQ12024,animprovementfromalossof1,502,000 in Q1 2024, an improvement from a loss of 3,293,000 in Q1 2023, marking a 54.4% reduction[35] Segment Performance - Ascent Chemicals segment net sales were 20.3million,downfrom20.3 million, down from 23.7 million in Q1 2023, with an operating loss of 1.4millioncomparedtoanoperatingincomeof1.4 million compared to an operating income of 1.4 million in the prior year[7] - Ascent Tubular segment net sales were 23.8million,downfrom23.8 million, down from 31.1 million in Q1 2023, with an operating loss decreasing to 1.5millionfrom1.5 million from 3.3 million in the prior year[8] Cash Management - Cash and cash equivalents at the end of Q1 2024 were 1,299,000,upfrom1,299,000, up from 421,000 at the end of Q1 2023, showing a significant increase[30] - Net cash provided by operating activities for continuing operations was 216,000inQ12024,adecreaseof98.3216,000 in Q1 2024, a decrease of 98.3% from 12,410,000 in Q1 2023[30] - Total cash used in financing activities decreased to 510,000inQ12024from510,000 in Q1 2024 from 13,586,000 in Q1 2023, indicating improved cash management[30] Operational Changes - The company has ceased operations at its welded pipe and tube facility in Munhall, PA, effective August 31, 2023, and categorized related financial results into discontinued operations[2] Shareholder Actions - The company repurchased 16,330 shares at an average cost of 9.97pershareforapproximately9.97 per share for approximately 0.2 million during the quarter[9] Management Outlook - Management expects continued improvements in financial results throughout 2024, driven by cost optimization and product mix adjustments[3] Accounts Receivable and Risk - Accounts receivable increased by 1,885,000inQ12024,comparedtoanincreaseof1,885,000 in Q1 2024, compared to an increase of 1,072,000 in Q1 2023, suggesting a growing sales volume[30] - The provision for losses on accounts receivable was 330,000inQ12024,comparedtoareductionof330,000 in Q1 2024, compared to a reduction of 57,000 in Q1 2023, indicating potential credit risk concerns[30] Cost Control - The company incurred stock-based compensation expenses of 209,000inQ12024,downfrom209,000 in Q1 2024, down from 319,000 in Q1 2023, reflecting cost control measures[30]