Ascent Industries Reports Fourth Quarter and Full Year 2024 Results
Ascent Finishes the Year with Strong Earnings Growth, a Healthy Cash Balance, Debt Free, and Nearly $15 Million of Free Cash Flow Generated in 2024
SCHAUMBURG, Ill.--(BUSINESS WIRE)--March 04, 2025--
Ascent Industries Co. (Nasdaq: ACNT) ("Ascent" or the "Company"), an industrial company focused on the production of specialty chemicals and industrial tubular products, is reporting its results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Summary(1)
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(in millions, except per share and margin) Q4 2024 Q4 2023 Change
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Net Sales $40.7 $41.2 (1.3)%
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Gross Profit $7.3 $(2.1) 438.4%
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Gross Profit Margin 17.9% (5.2)% 2310 bps
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Net Income (Loss) $0.1 $(7.5) 101.1%
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Diluted Earnings (Loss) per Share $0.01 $(0.73) 101.4%
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Adjusted EBITDA $2.6 $(5.9) 143.2%
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Adjusted EBITDA Margin 6.3% (14.4)% 2070 bps
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Full Year 2024 Summary(1)
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(in millions, except per share and margin) 2024 2023 Change
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Net Sales $177.9 $193.2 (7.9)%
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Gross Profit $22.1 $1.5 1349.3%
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Gross Profit Margin 12.4% 0.8% 1160 bps
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Net (Loss) $(11.2) $(34.2) 67.1%
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Diluted (Loss) per share $(1.11) $(3.37) 67.1%
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Adjusted EBITDA $4.0 $(15.9) 125.2%
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Adjusted EBITDA Margin 2.3% (8.2)% 1050 bps
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(1) On December 22, 2023, the Company closed on a transaction to sell
substantially all of the assets of Specialty Pipe & Tube ("SPT"). As a result,
financial results from SPT have been categorized into discontinued
operations.
Management Commentary
"We closed out the year generating strong earnings growth and our fourth consecutive quarter of adjusted EBITDA margin expansion, primarily driven by the strategic self-improvement initiatives we implemented at the beginning of the year," said Ascent CEO Bryan Kitchen. "As we expected, sales volume and overall demand in the fourth quarter remained muted across both segments. However, through aggressive cost management, product line optimization, and better operational efficiencies, we were still able to expand our gross margin on a lower sales base and deliver an improved bottom line.
"Overall, we're proud of the transformation efforts we've implemented and executed throughout 2024. Through the intentional recapitalization of SG&A combined with stabilizing the operations of both segments, we have established a stronger foundation to build off of in 2025. We are entering the new year with positive momentum on our side as we are seeing more favorable post-election market dynamics and a growing pipeline of opportunities that we believe can deliver organic growth in the coming quarters. We remain on track towards our goal of delivering a more predictable, reliable, and profitable business model that creates durable value for our shareholders."
Fourth Quarter 2024 Financial Results
Net sales from continuing operations were $40.7 million compared to $41.2 million in the fourth quarter of 2023. The slight decline was a result of lower volume with higher pricing within the specialty chemicals segment, along with higher volume but lower pricing within the tubular products segment.
Gross profit from continuing operations increased 438% to $7.3 million, or 17.9% of net sales, compared to $(2.1) million, or (5.2)% of net sales, in the fourth quarter of 2023. The increase was primarily driven by continued cost management, improved strategic sourcing, and product line optimization.
Net income from continuing operations improved to $0.1 million, or $0.01 diluted earnings per share, compared to a net loss from continuing operations of $7.5 million, or $0.73 diluted loss per share, in the fourth quarter of 2023.
Adjusted EBITDA increased significantly to $2.6 million compared to $(5.9) million in the fourth quarter of 2023, with adjusted EBITDA margin increasing to 6.3% compared to (14.4)% in the prior year period. The improvement was primarily driven by the aforementioned cost and product mix optimization initiatives.
Full Year 2024 Financial Results
Net sales from continuing operations were $177.9 million compared to $193.2 million in 2023. The decrease was primarily attributable to soft demand dynamics throughout much of the year across both segments.
Gross profit from continuing operations improved significantly to $22.1 million, or 12.4% of net sales, compared to $1.5 million or 0.8% of net sales in 2023. The increase in gross profit was primarily driven by cost reduction measures for labor and materials combined with product line optimization, which the Company implemented throughout 2024.
Net loss from continuing operations was $11.2 million, or $1.11 diluted loss per share, compared to a net loss from continuing operations of $34.2 million, or $3.37 diluted loss per share, in 2023. During the year, the Company recorded a $6.2 million non-cash, one-time tax charge related to a valuation allowance against the Company's deferred tax assets.
Adjusted EBITDA increased significantly to $4.0 million compared to $(15.9) million in 2023. Adjusted EBITDA as a percentage of net sales was 2.3% compared to (8.2)% in the prior year. The increase is primarily attributable to continued gains in operational efficiencies and the aforementioned cost and product mix optimization initiatives.
Segment Results
Ascent Chemicals -- net sales in the fourth quarter of 2024 were $18.1 million compared to $18.5 million in the fourth quarter of 2023. Operating income in the fourth quarter improved significantly to $1.8 million compared to an operating loss of $1.6 million in the prior year period. Adjusted EBITDA in the fourth quarter increased significantly to $3.4 million compared to $(0.4) million in the prior year period. As a percentage of segment net sales, adjusted EBITDA increased significantly to 18.7% compared to (2.3)% in the fourth quarter of 2023.
Net sales in 2024 were $80.8 million compared to $83.6 million in 2023. Operating income in 2024 increased significantly to $1.1 million compared to an operating loss of $12.6 million in the prior year. Adjusted EBITDA in 2024 increased 85% to $6.3 million compared to $3.4 million in the prior year. As a percentage of segment net sales, adjusted EBITDA increased 370 basis points to 7.8% compared to 4.1% in 2023.
Ascent Tubular -- net sales from continuing operations in the fourth quarter of 2024 were $22.5 million compared to $22.8 million in the fourth quarter of 2023. Operating income from continuing operations in the fourth quarter increased significantly to $1.6 million compared to an operating loss from continuing operations of $4.0 million in the prior year period. Adjusted EBITDA from continuing operations in the fourth quarter increased significantly to $2.3 million compared to $(3.1) million in the prior year period. As a percentage of segment net sales, adjusted EBITDA increased significantly to 10.2% compared to (13.7)% in the fourth quarter of 2023.
Net sales from continuing operations in 2024 were $97.1 million compared to $109.5 million in 2023. Operating income from continuing operations in 2024 increased significantly to $2.6 million compared to an operating loss of $11.2 million in the prior year. Adjusted EBITDA from continuing operations in 2024 increased significantly to $5.7 million compared to $(7.8) million in the prior year. As a percentage of segment net sales, adjusted EBITDA increased significantly to 5.8% compared to (7.1)% in 2023.
Liquidity
As of December 31, 2024, the Company had $16.1 million in cash and cash equivalents, no debt outstanding under its revolving credit facilities and had $47.4 million in availability under its revolving credit facility.
For the year ended December 31, 2024, the Company repurchased 101,263 shares at an average cost of $10.21 per share for approximately $1.0 million.
Conference Call
Ascent will hold a conference call today at 5:00 p.m. Eastern time to discuss its financial results for the fourth quarter and full year ended December 31, 2024.
Ascent management will host the conference call, followed by a question and answer period.
Date: Tuesday, March 4, 2025
Time: 5:00 p.m. Eastern time
Live Call Registration Link: Here
Webcast Registration Link: Here
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