OAK BROOK, Ill.–(BUSINESS WIRE)–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 second quarter ended June 30, 2024.
Second Quarter 2024 Summary1
|
(in millions, except per share and margin) |
Q2 2024 |
Q2 2023 |
Change |
|
Net Sales |
$50.2 |
$50.4 |
(0.3)% |
|
Gross Profit |
$5.9 |
$(0.8) |
854.2% |
|
Gross Profit Margin |
11.7% |
(1.5)% |
1320bps |
|
Net Loss |
$(0.2) |
$(6.1) |
96.8% |
|
Diluted Loss per Share |
$(0.02) |
$(0.60) |
96.7% |
|
Adjusted EBITDA |
$2.1 |
$(4.8) |
144.1% |
|
Adjusted EBITDA Margin |
4.2% |
(9.4)% |
1360bps |
|
_____ 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
Our stabilization efforts and aggressive self-help have started to yield tangible results in Q2 2024, despite continued soft market conditions, said Ascent CEO Bryan Kitchen. Our relentless efforts to reduce costs, improve strategic sourcing and optimize our product mix have led to a significant year-over-year improvement in adjusted EBITDA and bottom-line results, while also right-sizing the organization for long-term growth.
It has been our goal to create a more predictable, reliable, and profitable operating model, and I am proud that we are beginning to deliver on that goal. Momentum is building, and we are optimistic about our ability to achieve incremental financial improvements throughout the year while enhancing the quality of our business development pipeline. With a healthy balance sheet and no outstanding debt, we continue to build the foundation for long-term growth. Our actions are positioning Ascent to fully execute our growth strategy, delivering durable value for our shareholders.
Second Quarter 2024 Financial Results
Net sales from continuing operations were $50.2 million compared to $50.4 million in the second quarter of 2023. The slight decline is primarily attributable to a decrease in pricing partially offset by an increase in volume across both segments.
Gross profit from continuing operations increased to $5.9 million, or 11.7% of net sales, compared to $(0.8) million, or (1.5)% of net sales, in the second quarter of 2023. The increase was primarily attributable to continued cost and product mix optimization initiatives leading to cost improvements across both segments.
Net loss from continuing operations…
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