Ascent Industries (US:ACNT)2025-11-04 22:13Financial Performance - Consolidated net sales for Q3 2025 were $19.7 million, a decrease of $1.2 million, or 5.7%, compared to Q3 2024, primarily due to a 12.4% decrease in pounds shipped [100]. - Consolidated gross profit for Q3 2025 increased 94.2% to $5.8 million, or 29.7% of sales, compared to $3.0 million, or 14.4% of sales in Q3 2024 [102]. - Consolidated SG&A expenses for Q3 2025 increased to $6.3 million, or 31.7% of sales, compared to $5.0 million, or 24.1% of sales in Q3 2024 [103]. - Consolidated operating loss for Q3 2025 was $0.8 million, an improvement from an operating loss of $2.0 million in Q3 2024 [105]. - Consolidated net sales for the nine months ended September 30, 2025 were $56.2 million, a decrease of $6.5 million, or 10.3%, compared to the same period in 2024 [101]. - The company experienced a net loss from continuing operations of $(125,000) for the three months ended September 30, 2025, compared to $(7,801,000) in the same period of 2024 [116]. Cash Flow and Liquidity - The divestiture of American Stainless Tubing generated approximately $16 million in cash proceeds, with a preliminary pretax gain on sale of $4.6 million [95]. - The divestiture of Bristol Metals resulted in approximately $45 million in cash proceeds, with a pretax gain on sale of $2.5 million recognized in Q3 2025 [96][98]. - As of September 30, 2025, the company held $58.0 million in cash and cash equivalents and had $13.7 million of remaining available capacity on its revolving line of credit [118]. - Cash used in operating activities for the nine months ended September 30, 2025, was $(7,568,000), compared to $924,000 in the same period of 2024 [119]. - The company had no debt outstanding as of September 30, 2025, and December 31, 2024 [126]. - The current ratio improved to 6.4 as of September 30, 2025, compared to 2.8 at the end of 2024 [129]. Capital Management - The company repurchased 725,775 shares for a total cost of $8,897,903 during the nine months ended September 30, 2025, at an average price of $12.23 per share [128]. - Capital expenditures are expected to be as much as $1.6 million for the remainder of fiscal 2025 [130]. - The company’s liquidity management strategy includes a disciplined approach to capital allocation, focusing on investments that support business growth [117]. Tax and Economic Factors - The effective tax rate for continuing operations was 0.7% for Q3 2025, significantly lower than the U.S. statutory rate of 21.0% [113]. - The company continues to monitor macroeconomic trends, including material inflation and tariffs, which may impact future net sales and profitability [99]. Performance Metrics - EBITDA and Adjusted EBITDA are used as key measures for evaluating operating performance, although they are non-GAAP measures [114][115]. - Consolidated Adjusted EBITDA for the three months ended September 30, 2025, was $1,376,000, representing 7.0% of sales, compared to a loss of $709,000 and (3.4)% of sales in the same period of 2024 [116]. - Specialty Chemicals Adjusted EBITDA for the three months ended September 30, 2025, was $3,158,000, or 16.0% of segment sales, compared to $1,524,000 and 7.3% in the same period of 2024 [116].