ACNT Ascent Industries Company

Eliminated All Outstanding Debt with Cash Proceeds from the Sale of Specialty Pipe & Tube

New Leadership Focused on Accelerating Profitable Growth and Maximizing Value

Ascent Industries Co. (Nasdaq: ACNT) (“Ascent” or the “Company”), an industrials 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, 2023.

 

Fourth Quarter 2023 Summary1

 

(in millions, except per share and margin)

Q4 2023

Q4 2022

Change

Net Sales

$41.2

$54.2

(23.9)%

Gross Profit

$(2.1)

$4.9

(143.9)%

Gross Profit Margin

(5.2)%

9.0%

(1,420)bps

Net (Loss) Income

$(7.5)

$4.5

(267.4)%

Diluted (Loss) Earnings per Share

$(0.73)

$0.43

(269.8)%

Adjusted EBITDA

$(5.9)

$1.7

(460.5)%

Adjusted EBITDA Margin

(14.4)%

3.0%

(1,740)bps

 

Full Year 2023 Summary1

 

(in millions, except per share and margin)

2023

2022

Change

Net Sales

$193.2

$262.0

(26.3)%

Gross Profit

$1.5

$43.3

(96.5)%

Gross Profit Margin

0.8%

16.5%

(1,570)bps

Net (Loss) Income

$(34.2)

$17.6

(294.3)%

Diluted (Loss) Earnings per share

$(3.37)

$1.69

(299.4)%

Adjusted EBITDA

$(15.9)

$25.6

(162.3)%

Adjusted EBITDA Margin

(8.2)%

9.8%

(1,800)bps

  ____________________________

1

On June 2, 2023, the Board of Directors of Ascent made the decision to permanently cease operations at the Company’s welded pipe and tube facility located in Munhall, PA (“Munhall”) effective on August 31, 2023. 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 Munhall & SPT have been categorized into discontinued operations.

 

Management Commentary

“The Ascent team made notable progress towards our long-term strategic goals in 2023, despite continued market headwinds,” said Ascent CEO Bryan Kitchen. “This progress was driven by meaningful initiatives to onboard new customers and unlock operational efficiencies that we expect to bear fruit next year. However, our momentum in the fourth quarter was not sufficient to fully mitigate the adverse effects of industry-wide destocking trends that impacted both business segments. Prior to year-end, Ascent closed on a sale of substantially all of the assets of Specialty Pipe and Tube, generating $55 million in an all-cash transaction. These proceeds were utilized to clear remaining debt, positioning the Company favorably as it entered 2024.

“We moved into 2024 with a healthy financial position and a commitment to driving sustainable earnings-growth across the enterprise. This commitment is underscored by purposeful initiatives to recapitalize talent and capabilities, aimed to maximize the value derived from the unique strengths within our tubular segment while simultaneously investing in the growth potential of the specialty chemicals segment. We believe our newly-assembled management team has already begun to make progress towards our long-term goals focused on creating durable shareholder value.”

Fourth Quarter 2023 Financial Results

Net sales from continuing operations were $41.2 million compared to $54.2 million in the prior year period, primarily attributable to decreased end-market demand and de-stocking trends across both segments.

Gross profit from continuing operations was $(2.1) million, or (5.2%) of net sales, compared to $4.9 million, or 9.0% of net sales, in the fourth quarter of 2022. The decrease was primarily attributable to elevated costs and unfavorable product mix.

Net loss from continuing operations was $7.5 million, or $(0.73) diluted loss per share, compared to net income from continuing operations of $4.5 million, or $0.43 diluted earnings per share, in the fourth quarter of 2022. The decrease was primarily attributable to the aforementioned lower net sales, along with an increase in administrative expenses.

Adjusted EBITDA was $(5.9) million compared to $1.7 million in the fourth quarter of 2022. Adjusted EBITDA margin was (14.4)% compared to 3.0% in the prior year period. The decrease was primarily attributable to the aforementioned lower net sales.

Full Year 2023 Financial Results

Net sales from continuing operations were $193.2 million compared to $262.0 million in 2022. The decrease was primarily attributable to decreases in volume throughout the year as a result of industry-wide de-stocking trends and challenging end market fundamentals.

Gross profit from continuing operations was $1.5 million, or 0.8% of net sales, compared to $43.3 million or 16.5% of net sales in 2022. The decrease was primary attributable to the aforementioned decline in net sales across both segments, along with unfavorable product mix over the prior year.

Net loss from continuing operations was $34.2 million, or $(3.37) diluted loss per share, compared to $17.6 million, or $1.69 diluted earnings per share in 2022. The decrease was primarily attributable to the aforementioned decline in net sales and gross margin.

Adjusted EBITDA was $(15.9) million compared to $25.6 million in 2022. Adjusted EBITDA as a percentage of net sales was (8.2)% compared to 9.8% in the prior year. The decline is primarily attributable to lower operating margins across both segments compared to the prior year.

Segment Results

Ascent Chemicals – net sales in the fourth quarter of 2023 were $18.5 million compared to $23.5 million in the fourth quarter of 2022. Operating loss in the fourth quarter was $1.6 million compared to operating income of $0.9 million in the prior year period. Adjusted EBITDA in the fourth quarter was $(0.4) million compared to $2.0 million in the prior year period. As a percentage of segment net sales, adjusted EBITDA was (2.3)% compared to 8.6% in the fourth quarter of 2022.

Net sales in 2023 were $83.6 million compared to $107.5 million in 2022. Operating loss in 2023 was $12.6 million compared to operating income of $7.0 million in the prior year. Adjusted EBITDA in 2023 was $3.4 million compared to $11.8 million in the prior year. As a percentage of segment net sales, adjusted EBITDA was 4.1% compared to 10.9% in 2022.

Ascent Tubular – net sales from continuing operations in the fourth quarter of 2023 were $22.8 million compared to $30.7 million in the fourth quarter of 2022. Operating loss from continuing operations in the fourth quarter was $4.0 million compared to operating income from continuing operations of $1.2 million in the prior year period. Adjusted EBITDA from continuing operations in the fourth quarter was $(3.1) million compared to $2.1 million in the prior year period. As a percentage of segment net sales, adjusted EBITDA was (13.7)% compared to 6.9% in the fourth quarter of 2022.

Net sales from continuing operations in 2023 was $109.5 million compared to $154.0 million in 2022. Operating loss from continuing operations in 2023 was $11.2 million compared to $22.2 million in the prior year. Adjusted EBITDA from continuing operations in 2023 was $(7.8) million compared to $25.7 million in the prior year. As a percentage of segment net sales, adjusted EBITDA was (7.1)% compared to 16.7% in 2022.

Liquidity

During the fourth quarter of 2023, Ascent announced the sale of substantially all the assets of Specialty Pipe & Tube for approximately $55 million in an all-cash transaction that closed on December 22, 2023. As a result of the sale, the Company paid off its remaining balance on the revolving credit facility in the fourth quarter of 2023. As of December 31, 2023, the Company did not have any outstanding debt on its balance sheet and had $61.8 million in availability under its revolving credit facility.

For the year ended December 31, 2023, the Company repurchased 143,108 shares at an average cost of $8.97 per share for approximately $1.3 million.

Conference Call

Ascent will conduct a conference call today at 5:00 p.m. Eastern time to discuss its results for the fourth quarter and full year ended December 31, 2023.

Ascent management will host the conference call, followed by a question and answer period.

Date: Thursday, March 28, 2024 Time: 5:00 p.m. Eastern time Live Call Registration Link: Here Webcast Registration Link: Here

To access the call by phone, please register via the live call registration link above or here and you will be provided with dial-in instructions and details. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.

The conference call will also be broadcast live and available for replay via the webcast registration link above or here. The webcast will be archived for one year in the investor relations section of the Company’s website at www.ascentco.com.

About Ascent Industries Co.

Ascent Industries Co. (Nasdaq: ACNT) is a company that engages in a number of diverse business activities including the production of specialty chemicals and industrial tubular products. For more information about Ascent, please visit its website at www.ascentco.com.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable federal securities laws. All statements that are not historical facts are forward-looking statements. Forward looking statements can be identified through the use of words such as "estimate," "project," "intend," "expect," "believe," "should," "anticipate," "hope," "optimistic," "plan," "outlook," "should," "could," "may" and similar expressions. The forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from historical results or those anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements and to review the risks as set forth in more detail in Ascent Industries Co.’s Securities and Exchange Commission filings, including our Annual Report on Form 10-K, which filings are available from the SEC or on our website. Ascent Industries Co. assumes no obligation to update any forward-looking information included in this release.

Non-GAAP Financial Information

Financial statement information included in this earnings release includes non-GAAP (Generally Accepted Accounting Principles) measures and should be read along with the accompanying tables which provide a reconciliation of non-GAAP measures to GAAP measures.

Adjusted EBITDA is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results to determine the value of a company. An item is excluded in the measure if its periodic value is inconsistent and sufficiently material that not identifying the item would render period comparability less meaningful to the reader or if including the item provides a clearer representation of normalized periodic earnings. The Company excludes in Adjusted EBITDA two categories of items: 1) Base EBITDA components, including: interest expense, income taxes, depreciation and amortization, and 2) Material transaction costs including: goodwill impairment, asset impairment, gain on lease modification, stock-based compensation, non-cash lease cost, acquisition costs and other fees, , shelf registration costs, loss on extinguishment of debt, earn-out adjustments, , retention costs and restructuring & severance costs from net income.

Management believes that these non-GAAP measures are useful because they are key measures used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions as well as allow readers to compare the financial results between periods. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.

 

Ascent Industries Co.

Condensed Consolidated Balance Sheets

(in thousands, except par value and share data)

 

 

 

 

 

December 31, 2023

 

December 31, 2022

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,851

 

 

$

1,440

 

Accounts receivable, net of allowance for credit losses of $463 and $643, respectively

 

26,604

 

 

 

33,202

 

Inventories

 

52,306

 

 

 

67,671

 

Prepaid expenses and other current assets

 

4,879

 

 

 

7,770

 

Assets held for sale

 

2,912

 

 

 

380

 

Current assets of discontinued operations

 

861

 

 

 

59,912

 

Total current assets

 

89,413

 

 

 

170,375

 

Property, plant and equipment, net

 

29,755

 

 

 

35,534

 

Right-of-use assets, operating leases, net

 

27,784

 

 

 

29,142

 

Goodwill

 

—

 

 

 

11,389

 

Intangible assets, net

 

8,496

 

 

 

10,001

 

Deferred income taxes

 

5,808

 

 

 

1,353

 

Deferred charges, net

 

104

 

 

 

203

 

Other non-current assets, net

 

1,935

 

 

 

1,862

 

Long-term assets of discontinued operations

 

—

 

 

 

9,184

 

Total assets

$

163,295

 

 

$

269,043

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

16,416

 

 

$

14,114

 

Accrued expenses and other current liabilities

 

5,108

 

 

 

5,509

 

Current portion of note payable

 

360

 

 

 

387

 

Current portion of long-term debt

 

—

 

 

 

2,464

 

Current portion of operating lease liabilities

 

1,140

 

 

 

1,015

 

Current portion of finance lease liabilities

 

292

 

 

 

280

 

Current liabilities of discontinued operations

 

1,473

 

 

 

9,709

 

Total current liabilities

 

24,789

 

 

 

33,478

 

Long-term debt

 

—

 

 

 

69,085

 

Long-term portion of operating lease liabilities

 

29,729

 

 

 

30,869

 

Long-term portion of finance lease liabilities

 

1,307

 

 

 

1,242

 

Other long-term liabilities

 

60

 

 

 

68

 

Long-term liabilities of discontinued operations

 

—

 

 

 

42

 

Total non-current liabilities

 

31,096

 

 

 

101,306

 

Total liabilities

$

55,885

 

 

$

134,784

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

Common stock, par value $1 per share; 24,000,000 shares authorized; 11,085,103 and 10,094,821 shares issued and outstanding, respectively

$

11,085

 

 

$

11,085

 

Capital in excess of par value

 

47,333

 

 

 

47,021

 

Retained earnings

 

58,517

 

 

 

85,146

 

 

 

116,935

 

 

 

143,252

 

Less: cost of common stock in treasury - 990,282 and 924,504 shares, respectively

 

(9,525

)

 

 

(8,993

)

Total shareholders' equity

 

107,410

 

 

 

134,259

 

Total liabilities and shareholders' equity

$

163,295

 

 

$

269,043

 

 

Note: The condensed consolidated balance sheets at December 31, 2023 and 2022 have been derived from the audited consolidated financial statements at that date.

 

Ascent Industries Co.

Condensed Consolidated Statements of Income (Loss) - Comparative Analysis (Unaudited)

($ in thousands, except per share data)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Net sales

 

 

 

 

 

 

 

Tubular Products

$

22,765

 

 

$

30,697

 

 

$

109,513

 

 

$

154,040

 

Specialty Chemicals

 

18,451

 

 

 

23,473

 

 

 

83,616

 

 

 

107,542

 

All Other

 

—

 

 

 

10

 

 

 

50

 

 

 

411

 

 

 

41,216

 

 

 

54,180

 

 

 

193,179

 

 

 

261,993

 

Operating income (loss) from continuing operations

 

 

 

 

 

 

Tubular Products

 

(3,995

)

 

 

1,232

 

 

 

(11,210

)

 

 

22,182

 

Specialty Chemicals

 

(1,623

)

 

 

860

 

 

 

(12,558

)

 

 

6,971

 

All Other

 

(116

)

 

 

(175

)

 

 

(801

)

 

 

(508

)

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

Unallocated corporate expenses

 

(2,704

)

 

 

(2,761

)

 

 

(12,018

)

 

 

(12,997

)

Acquisition costs and other

 

(569

)

 

 

(266

)

 

 

(843

)

 

 

(1,105

)

Total Corporate

 

(3,273

)

 

 

(3,027

)

 

 

(12,861

)

 

 

(14,102

)

Operating (loss) income

 

(9,007

)

 

 

(1,110

)

 

 

(37,430

)

 

 

14,543

 

Interest expense

 

1,021

 

 

 

1,104

 

 

 

4,238

 

 

 

2,742

 

Other, net

 

(249

)

 

 

(34

)

 

 

(593

)

 

 

(209

)

(Loss) income from continuing operations before income taxes

 

(9,779

)

 

 

(2,180

)

 

 

(41,075

)

 

 

12,010

 

Income tax benefit

 

(2,244

)

 

 

(6,681

)

 

 

(6,924

)

 

 

(5,568

)

(Loss) income from continuing operations

 

(7,535

)

 

 

4,501

 

 

 

(34,151

)

 

 

17,578

 

Income (loss) from discontinued operations, net of tax

 

18,674

 

 

 

(4,374

)

 

 

7,522

 

 

 

4,488

 

Net income (loss)

$

11,139

 

 

$

127

 

 

$

(26,629

)

 

$

22,066

 

 

 

 

 

 

 

 

 

Net (loss) income per common share from continuing operations

 

 

 

 

 

 

 

Basic

$

(0.75

)

 

$

0.44

 

 

$

(3.37

)

 

$

1.72

 

Diluted

$

(0.73

)

 

$

0.43

 

 

$

(3.37

)

 

$

1.69

 

 

 

 

 

 

 

 

 

Net income (loss) per common share from discontinued operations

 

 

 

 

 

 

 

Basic

$

1.85

 

 

$

(0.43

)

 

$

0.74

 

 

$

0.44

 

Diluted

$

1.80

 

 

$

(0.42

)

 

$

0.74

 

 

$

0.43

 

 

 

 

 

 

 

 

 

Net income (loss) per common share

 

 

 

 

 

 

 

Basic

$

1.10

 

 

$

0.01

 

 

$

(2.63

)

 

$

2.16

 

Diluted

$

1.07

 

 

$

0.01

 

 

$

(2.63

)

 

$

2.12

 

 

 

 

 

 

 

 

 

Average shares outstanding

 

 

 

 

 

 

 

Basic

 

10,107

 

 

 

10,213

 

 

 

10,140

 

 

 

10,230

 

Diluted

 

10,374

 

 

 

10,416

 

 

 

10,140

 

 

 

10,410

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

Adjusted EBITDA1

$

(5,941

)

 

$

1,648

 

 

$

(15,934

)

 

$

25,590

 

1

The term Adjusted EBITDA is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results to determine the value of a company. An item is excluded in the measure if its periodic value is inconsistent and sufficiently material that not identifying the item would render period comparability less meaningful to the reader or if including the item provides a clearer representation of normalized periodic earnings. The Company excludes in Adjusted EBITDA two categories of items: 1) Base EBITDA components, including: interest expense, income taxes, depreciation and amortization, and 2) Material transaction costs including: goodwill impairment, asset impairment, gain on lease modification, stock-based compensation, non-cash lease cost, acquisition costs and other fees, loss on extinguishment of debt, earn-out adjustments, retention costs and restructuring & severance costs from net income. For a reconciliation of this non-GAAP measure to the most comparable GAAP equivalent, refer to the Reconciliation of Net Income (Loss) to Adjusted EBITDA.

 

Ascent Industries Co.

Consolidated Statements of Cash Flows

($ in thousands)

 

 

Year Ended December 31,

 

2023

 

2022

Operating activities

 

 

 

Net (loss) income

$

(26,629

)

 

$

22,066

 

Net income from discontinued operations, net of tax

 

7,522

 

 

 

4,488

 

Net (loss) income from continuing operations

 

(34,151

)

 

 

17,578

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

Depreciation expense

 

6,161

 

 

 

6,421

 

Amortization expense

 

1,505

 

 

 

1,853

 

Amortization of debt issuance costs

 

99

 

 

 

99

 

Goodwill impairment

 

11,389

 

 

 

—

 

Deferred income taxes

 

(6,924

)

 

 

(5,568

)

Payments of earn-out liabilities in excess of acquisition date fair value

 

—

 

 

 

(372

)

Provision for losses on accounts receivable

 

(180

)

 

 

478

 

Provision for losses on inventories

 

3,318

 

 

 

2,615

 

Loss (gain) on disposal of property, plant and equipment

 

246

 

 

 

(18

)

Non-cash lease expense

 

242

 

 

 

414

 

Issuance of treasury stock for director fees

 

—

 

 

 

364

 

Stock-based compensation expense

 

1,023

 

 

 

1,355

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

6,778

 

 

 

(264

)

Inventories

 

12,245

 

 

 

(13,685

)

Other assets and liabilities

 

515

 

 

 

(211

)

Accounts payable

 

1,650

 

 

 

(6,269

)

Accounts payable - related parties

 

—

 

 

 

(2

)

Accrued expenses

 

(401

)

 

 

(2,127

)

Accrued income taxes

 

3,129

 

 

 

(7,923

)

Net cash provided by (used in) operating activities - continuing operations

 

6,644

 

 

 

(5,262

)

Net cash provided by operating activities - discontinued operations

 

16,434

 

 

 

10,839

 

Net cash provided by operating activities

 

23,078

 

 

 

5,577

 

Investing activities

 

 

 

Purchases of property, plant and equipment

 

(2,885

)

 

 

(3,394

)

Proceeds from disposal of property, plant and equipment

 

—

 

 

 

99

 

Net cash used in investing activities - continuing operations

 

(2,885

)

 

 

(3,295

)

Net cash provided by (used in) investing activities - discontinued operations

 

53,386

 

 

 

(1,680

)

Net cash provided by (used in) investing activities

 

50,501

 

 

 

(4,975

)

Financing activities

 

 

 

Borrowings from long-term debt

 

256,606

 

 

 

443,363

 

Proceeds from note payable

 

900

 

 

 

967

 

Proceeds from the exercise of stock options

 

—

 

 

 

175

 

Payments on long-term debt

 

(328,155

)

 

 

(442,206

)

Payments on note payable

 

(928

)

 

 

(580

)

Principal payments on finance lease obligations

 

(305

)

 

 

(266

)

Payments on earn-out liabilities

 

—

 

 

 

(484

)

Repurchase of common stock

 

(1,287

)

 

 

(1,343

)

Net cash used in financing activities - continuing operations

 

(73,169

)

 

 

(374

)

Net cash used in financing activities - discontinued operations

 

—

 

 

 

(808

)

Net cash used in financing activities

 

(73,169

)

 

 

(1,182

)

Increase (decrease) in cash and cash equivalents

 

410

 

 

 

(580

)

Less: Cash and cash equivalents of discontinued operations

 

—

 

 

 

4

 

Cash and cash equivalents, beginning of period

 

1,441

 

 

 

2,017

 

Cash and cash equivalents, end of period

$

1,851

 

 

$

1,441

 

 

Ascent Industries Co.

Non-GAAP Financial Measures Reconciliation

Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited)

($ in thousands)

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

($ in thousands)

2023

 

2022

 

2023

 

2022

Consolidated

 

 

 

 

 

 

 

Net (loss) income from continuing operations

$

(7,535

)

 

$

4,501

 

 

$

(34,151

)

 

$

17,578

 

Adjustments:

 

 

 

 

 

 

 

Interest expense

 

1,021

 

 

 

1,104

 

 

 

4,238

 

 

 

2,742

 

Income taxes

 

(2,244

)

 

 

(6,681

)

 

 

(6,924

)

 

 

(5,568

)

Depreciation

 

1,527

 

 

 

1,579

 

 

 

6,161

 

 

 

6,421

 

Amortization

 

376

 

 

 

429

 

 

 

1,505

 

 

 

1,853

 

EBITDA

 

(6,855

)

 

 

932

 

 

 

(29,171

)

 

 

23,026

 

Acquisition costs and other

 

579

 

 

 

266

 

 

 

856

 

 

 

1,104

 

Shelf registration costs

 

—

 

 

 

12

 

 

 

—

 

 

 

12

 

Goodwill impairment

 

—

 

 

 

—

 

 

 

11,389

 

 

 

—

 

Gain on lease modification

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

Stock-based compensation

 

224

 

 

 

283

 

 

 

594

 

 

 

962

 

Non-cash lease expense

 

52

 

 

 

91

 

 

 

242

 

 

 

414

 

Retention expense

 

20

 

 

 

—

 

 

 

26

 

 

 

—

 

Restructuring and severance costs

 

39

 

 

 

64

 

 

 

130

 

 

 

74

 

Adjusted EBITDA

$

(5,941

)

 

$

1,648

 

 

$

(15,934

)

 

$

25,590

 

% sales

 

(14.4

)%

 

 

3.0

%

 

 

(8.2

)%

 

 

9.8

%

Tubular Products

 

 

 

 

 

 

 

Net (loss) income from continuing operations

$

(3,995

)

 

$

1,232

 

 

$

(11,210

)

 

$

22,182

 

Adjustments:

 

 

 

 

 

 

 

Depreciation expense

 

557

 

 

 

609

 

 

 

2,274

 

 

 

2,500

 

Amortization expense

 

217

 

 

 

238

 

 

 

871

 

 

 

951

 

EBITDA

 

(3,221

)

 

 

2,079

 

 

 

(8,065

)

 

 

25,633

 

Stock-based compensation

 

74

 

 

 

11

 

 

 

58

 

 

 

46

 

Non-cash lease expense

 

25

 

 

 

—

 

 

 

118

 

 

 

—

 

Retention expense

 

8

 

 

 

—

 

 

 

8

 

 

 

—

 

Restructuring and severance costs

 

—

 

 

 

20

 

 

 

84

 

 

 

20

 

Tubular Products Adjusted EBITDA

$

(3,114

)

 

$

2,110

 

 

$

(7,797

)

 

$

25,699

 

% segment sales

 

(13.7

)%

 

 

6.9

%

 

 

(7.1

)%

 

 

16.7

%

 

 

 

 

 

 

 

 

Specialty Chemicals

 

 

 

 

 

 

 

Net (loss) income

$

(1,644

)

 

$

852

 

 

$

(12,619

)

 

$

6,935

 

Adjustments:

 

 

 

 

 

 

 

Interest expense

 

22

 

 

 

9

 

 

 

74

 

 

 

36

 

Depreciation expense

 

948

 

 

 

949

 

 

 

3,798

 

 

 

3,846

 

Amortization expense

 

158

 

 

 

191

 

 

 

634

 

 

 

903

 

EBITDA

 

(516

)

 

 

2,001

 

 

 

(8,113

)

 

 

11,720

 

Acquisition costs and other

 

10

 

 

 

—

 

 

 

12

 

 

 

—

 

Goodwill impairment

 

—

 

 

 

—

 

 

 

11,389

 

 

 

—

 

Stock-based compensation

 

21

 

 

 

12

 

 

 

8

 

 

 

41

 

Non-cash lease expense

 

19

 

 

 

—

 

 

 

88

 

 

 

2

 

Restructuring and severance costs

 

40

 

 

 

8

 

 

 

40

 

 

 

8

 

Specialty Chemicals Adjusted EBITDA

$

(426

)

 

$

2,021

 

 

$

3,424

 

 

$

11,771

 

% segment sales

 

(2.3

)%

 

 

8.6

%

 

 

4.1

%

 

 

10.9

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240328924168/en/

Company Contact Ryan Kavalauskas Chief Financial Officer 1-630-884-9181 Investor Relations Cody Slach and Cody Cree Gateway Group, Inc. 1-949-574-3860 ACNT@gateway-grp.com