Financial Data and Key Metrics Changes - First quarter GAAP-based income was a net loss of $1.2 million or $0.13 diluted loss per share, compared to a net loss of $0.9 million or $0.10 diluted loss per share in Q1 2019 [6] - First quarter non-GAAP adjusted net loss was $0.7 million or $0.08 adjusted diluted loss per share, compared to adjusted net income of $0.6 million or $0.07 adjusted diluted earnings per share in Q1 2019 [6] - First quarter non-GAAP adjusted EBITDA totaled $2.6 million or 3.5% of sales, down from $4.8 million or 5.6% of sales in the prior year's first quarter [6][8] Business Line Data and Key Metrics Changes - In the welded pipe and tube business, pounds shipped were up almost 6% year-over-year, but pricing was down 10% [11] - Material margin for the welded pipe and tube segment fell by $0.14 per pound and was down $2.9 million in absolute dollar terms [11] - The Chemicals segment saw pounds shipped decline by 7% year-over-year, while prices increased by 10.2% [15] Market Data and Key Metrics Changes - The company gained 3.4 points of North American market share in the welded stainless steel pipe category [11] - Order activity softened in April, indicating a potential decline in demand moving forward [13] Company Strategy and Development Direction - The company is focused on improving liquidity and reducing debt, with plans for inventory reductions of approximately $7 million and responsible constraints on capital spending [9] - Cost-cutting initiatives have resulted in a reduction of costs by $1.54 million year-over-year, with expectations for further savings in the coming quarters [10] Management Comments on Operating Environment and Future Outlook - Management noted weaker year-over-year demand, particularly in the metals segment, and pricing pressure negatively impacted material margins [10] - The company expects to extract several million dollars of capital from the Palmer facility as accounts receivables are collected and remaining inventory is sold [14] - The CARES Act is expected to generate an estimated $2 million in tax refunds over the next two quarters [16] Other Important Information - The company is pursuing a cash settlement in excess of $1 million related to a property and business interruption claim [16] - A lawsuit has been filed against a supplier for overcharging approximately $1 million over the last three years [17] Q&A Session Summary Question: Inquiry about Bristol Metals segment profit for Q1 and Q2 - Management did not disclose specific profit numbers for competitive reasons [18] Question: Follow-up on the previous inquiry - The analyst acknowledged the response and thanked management [19]
Ascent Industries (ACNT) - 2020 Q1 - Earnings Call Transcript