Financial Performance - Consolidated net sales for Q3 2024 were $42.9 million, a decrease of $3.8 million, or 8.2%, compared to Q3 2023, primarily due to a 7.3% decrease in average selling prices and a 2.0% decrease in pounds shipped [93]. - For the first nine months of 2024, consolidated net sales were $137.2 million, a decrease of $14.8 million, or 9.7%, driven by a 14.2% decrease in average selling prices, partially offset by a 3.0% increase in pounds shipped [94]. - Consolidated gross profit for Q3 2024 increased 116.5% to $6.5 million, or 15.1% of sales, compared to $3.0 million, or 6.4% of sales in Q3 2023 [95]. - Operating income for Q3 2024 was $0.5 million, compared to an operating loss of $15.1 million in Q3 2023, driven by increased gross profit and reduced prior year goodwill impairment [97]. - Specialty Chemicals segment net sales for Q3 2024 totaled $20.9 million, an increase of $0.8 million, or 4.1%, from Q3 2023, driven by a 6.1% increase in average selling prices [98]. - Tubular Products segment net sales for Q3 2024 totaled $22.0 million, a decrease of $4.7 million, or 17.5%, primarily due to a 17.2% decrease in average selling prices [105]. Expenses and Income - SG&A expenses for Q3 2024 decreased to $6.0 million, or 14.0% of sales, compared to $6.7 million, or 14.3% of sales in Q3 2023 [97]. - Interest expense for Q3 2024 decreased to $0.1 million, down from $1.1 million in Q3 2023, primarily due to lower outstanding debt [113]. - Unallocated corporate expenses for Q3 2024 decreased by $1.4 million, or 46.2%, to $1.6 million, or 3.7% of sales, compared to $3.0 million, or 6.4% of sales in the prior year [111]. - For the three months ended September 30, 2024, the company reported an EBITDA of $2,397,000, compared to a loss of $13,097,000 for the same period in 2023 [118]. - The adjusted EBITDA for the nine months ended September 30, 2024, was $1,446,000, a significant improvement from a loss of $9,993,000 in the same period of 2023 [118]. - The company achieved a net income of $367,000 in the specialty chemicals segment for the three months ended September 30, 2024, compared to a net loss of $11,498,000 in the same period of 2023 [119]. - Tubular products segment reported an EBITDA of $2,327,000 for the three months ended September 30, 2024, compared to $156,000 in the same period of 2023 [120]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2024, was $7,445,000, an increase from $4,002,000 in the same period of 2023 [123]. - As of September 30, 2024, the company held $8.5 million in cash and cash equivalents and had $57.5 million available on its revolving line of credit [122]. - The company experienced a net increase in cash and cash equivalents of $5,486,000 for the nine months ended September 30, 2024, compared to a decrease of $17,842,000 in the same period of 2023 [123]. - The company had no debt outstanding under its credit facilities as of September 30, 2024 [129]. - The company is in compliance with all financial debt covenants as of September 30, 2024 [130]. - Current ratio improved to 3.8 as of September 30, 2024, compared to 3.7 on December 31, 2023 [135]. - Operating and finance lease obligations totaled $33.3 million, with $1.7 million payable within the next 12 months [136]. Capital Expenditures and Financial Position - Capital spending is expected to be as much as $0.8 million for the remainder of fiscal 2024 [137]. - No off-balance sheet arrangements are expected to materially affect the company's financial position [137]. - There have been no significant changes in accounting policies or critical estimates since the end of fiscal 2023 [138]. - Return on average equity (ROAE) improved to (14.4)% as of September 30, 2024, from (38.6)% on December 31, 2023 [135]. - The company repurchased 42,623 shares at an average price of $9.79 during the three months ended September 30, 2024, totaling $418,563 [132].
Ascent Industries (ACNT) - 2024 Q3 - Quarterly Report