Ascent Industries (US:ACNT)2021-11-08 16:00Financial Performance - Consolidated net sales for Q3 2021 were $86.2 million, an increase of $26.9 million, or 45.4%, compared to Q3 2020[108]. - Consolidated gross profit for Q3 2021 increased 260.5% to $18.0 million, representing 20.9% of sales, compared to $5.0 million, or 8.4% of sales in Q3 2020[108]. - Net income for Q3 2021 was $8.2 million, or $0.87 diluted earnings per share, compared to a net loss of $10.5 million, or $1.16 diluted loss per share in Q3 2020[109]. - Consolidated net sales for the first nine months of 2021 were $239.0 million, an increase of $38.9 million, or 19.5%, compared to the first nine months of 2020[117]. - Consolidated gross profit for the first nine months of 2021 increased 147.3% to $40.8 million, or 17.1% of sales, compared to $16.5 million, or 8.2% of sales in the first nine months of 2020[117]. - For the first nine months of 2021, operating income increased by $41.6 million, or 210.2%, to $21.8 million compared to an operating loss of $19.8 million in the same period of 2020[123]. - Consolidated EBITDA for the first nine months of 2021 was $23.98 million, compared to a loss of $14.86 million in the same period of 2020[130]. - Adjusted EBITDA for the first nine months of 2021 was $29.45 million, or 12.3% of sales, compared to $6.23 million, or 3.1% of sales, in the first nine months of 2020[130]. Segment Performance - Metals Segment net sales for Q3 2021 totaled $70.1 million, an increase of $23.0 million, or 49.0%, compared to Q3 2020[110]. - Specialty Chemicals Segment net sales for Q3 2021 were $16.1 million, a $3.9 million, or 31.7%, increase from Q3 2020[113]. - The Metals Segment net sales for the first nine months of 2021 totaled $193.4 million, an increase of $33.7 million, or 21.1%, compared to the first nine months of 2020[120]. - Net sales for the Specialty Chemicals Segment totaled $45.6 million, an increase of $5.3 million, or 13.1%, compared to the first nine months of 2020, driven by a 10.8% increase in average selling prices and a 2.7% increase in pounds shipped[124]. - The Metals Segment reported an EBITDA of $26.79 million for the first nine months of 2021, compared to a loss of $11.01 million in the same period of 2020[131]. - The Specialty Chemicals Segment Adjusted EBITDA was $3.99 million for the first nine months of 2021, down from $4.88 million in the same period of 2020[132]. Expenses and Liabilities - Selling, general, and administrative expenses for the first nine months of 2021 were $13.1 million, or 6.8% of sales, down from $13.7 million, or 8.6% of sales, in the first nine months of 2020[124]. - Interest expense decreased to $1.1 million for the first nine months of 2021 from $1.7 million in the same period of 2020, due to lower debt outstanding and favorable interest rates[127]. - Unallocated corporate expenses for the first nine months of 2021 were $5.1 million, or 2.1% of sales, compared to $5.1 million, or 2.6% of sales, in the first nine months of 2020[126]. - The company paid $2.9 million related to earn-out liabilities from previous acquisitions during the first nine months of 2021[127]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2021 was $16.2 million, a significant increase from $6.0 million for the same period in 2020[136]. - Accounts receivable increased by $15.5 million in the first nine months of 2021, leading to a reduction of $16.9 million in operating cash flows[137]. - As of September 30, 2021, the company held $1.2 million in cash and cash equivalents and had $56.0 million available on its revolving line of credit, indicating sufficient liquidity to fund operations and capital expenditures over the next 12 months[135]. - The current ratio decreased from 4.1 as of December 31, 2020 to 3.0 as of September 30, 2021, indicating a tighter liquidity position[144]. - The debt to capital ratio improved from 43% at the end of 2020 to 34% as of September 30, 2021, reflecting a stronger capital structure[144]. - The net cash used in financing activities increased to $15.5 million for the nine months ended September 30, 2021, compared to $8.1 million for the same period in 2020, primarily due to increased payments towards the company's line of credit[139]. Corporate Actions - The Company expects to permanently cease operations at the Palmer facility by December 31, 2021[105]. - The Company refinanced and expanded its revolving line of credit to improve liquidity and financial position[105]. - The company's long-term debt as of September 30, 2021 was $49.0 million, a decrease of $12.4 million from December 31, 2020[140]. - The return on average equity increased to 13.4% for the nine months ended September 30, 2021, compared to a negative 29.2% for the same period in 2020[144]. - The company repurchased 59,617 shares at an average price of $10.65 per share during the nine months ended September 30, 2021[142]. - The company has no off-balance sheet arrangements that could materially affect its financial position or liquidity[146].