Ascent Industries (US:ACNT)2021-05-09 16:00Financial Performance - Consolidated net sales for Q1 2021 were $69.8 million, a decrease of $4.9 million, or 6.6%, compared to Q1 2020[96] - Consolidated gross profit increased 22.2% to $8.7 million, representing 12.5% of sales in Q1 2021, up from 9.6% in Q1 2020[96] - Net income for Q1 2021 was $1.1 million, or $0.12 diluted earnings per share, compared to a net loss of $1.2 million, or $0.13 diluted loss per share in Q1 2020[98] - Metals Segment net sales totaled $55.2 million in Q1 2021, a decrease of $5.5 million, or 9.0%, from Q1 2020[99] - Specialty Chemicals Segment net sales increased by $0.5 million, or 3.8%, to $14.6 million in Q1 2021, driven by a 7.0% increase in pounds shipped[102] Operating Income and Expenses - Operating income for the Metals Segment increased 175.8% to $2.5 million in Q1 2021, influenced by higher surcharges for alloys[101] - Selling, general, and administrative expenses decreased to $6.9 million, or 9.8% of sales, in Q1 2021, down from $7.8 million, or 10.4% in Q1 2020[97] Tax and Cash Flow - The effective tax rate for Q1 2021 was 18.1%, significantly lower than 54.0% in Q1 2020, due to valuation allowances[105] - Cash balance increased by $0.2 million to $0.4 million as of March 31, 2021, compared to $0.2 million at December 31, 2020[105] - Total cash provided by financing activities for Q1 2021 was $1,157,000, an increase from $625,000 in Q1 2020, indicating improved financing operations[113] Inventory and Liquidity - Net inventories increased by $3.7 million at March 31, 2021, primarily due to purchases to support increased customer demand[105] - As of March 31, 2021, the company had $0.4 million in cash and cash equivalents and $41.2 million available on its revolving line of credit, indicating strong liquidity[112] - The current ratio decreased to 3.8 as of March 31, 2021, down from 4.1 at the end of 2020, suggesting a slight decline in short-term financial health[121] EBITDA Performance - Consolidated EBITDA for Q1 2021 was $4,217,000, a significant increase from $1,014,000 in Q1 2020, representing a growth of 316%[108] - Adjusted EBITDA for Q1 2021 reached $4,875,000, up from $2,638,000 in Q1 2020, reflecting an increase of 85%[108] - Metals Segment Adjusted EBITDA was $4,874,000 for Q1 2021, compared to $3,300,000 in Q1 2020, marking a 48% increase[109] - Specialty Chemicals Segment Adjusted EBITDA increased to $1,472,000 in Q1 2021 from $929,000 in Q1 2020, a rise of 58%[110] Debt and Share Repurchase - Long-term debt as of March 31, 2021, was $63.8 million, reflecting an increase of $2.4 million from December 31, 2020[117] - The company repurchased 59,617 shares at an average price of $10.65 during Q1 2020, totaling $636,940[119]