NASDAQ:ACNT Ascent Industries Q1 2025 Earnings Report $12.09 0.00 (0.00%) As of 10:18 AM Eastern This is a fair market value price provided by Polygon.io. Learn more. ProfileEarnings History Ascent Industries EPS ResultsActual EPS-$0.08Consensus EPS $0.12Beat/MissMissed by -$0.20One Year Ago EPSN/AAscent Industries Revenue ResultsActual Revenue$24.73 millionExpected Revenue$48.90 millionBeat/MissMissed by -$24.17 millionYoY Revenue GrowthN/AAscent Industries Announcement DetailsQuarterQ1 2025Date5/12/2025TimeAfter Market ClosesConference Call DateMonday, May 12, 2025Conference Call Time5:00PM ETUpcoming EarningsAscent Industries' Q2 2025 earnings is scheduled for Tuesday, August 5, 2025, with a conference call scheduled at 5:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Ascent Industries Q1 2025 Earnings Call TranscriptProvided by QuartrMay 12, 2025 ShareLink copied to clipboard.Key Takeaways Adjusted EBITDA swung from a $2.7 M loss to an $843 K profit in Q1, marking a $3.5 M turnaround driven by operational discipline and cost control. Net sales totaled $24.7 M, down 11.5% year-over-year as the company intentionally exited lower-margin volumes to focus on higher-value opportunities. Specialty Chemicals segment delivered a gross margin expansion to 21% and swung to $2 M in adjusted EBITDA, reflecting tight sourcing and a shift to higher-margin product mix. The sale of Bristol Metals for $45 M closed in April, and the remaining tubular asset, ASCI, saw gross margin nearly double to 24.8% with adjusted EBITDA up fivefold. The balance sheet remains robust with $14.3 M in cash, zero debt pre-divestiture, and the company repurchased ~17 K shares, providing capital flexibility for growth or M&A. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallAscent Industries Q1 202500:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipantsPresentationSkip to Participants Operator00:00:00Good afternoon, and welcome to Ascent Industries Q1 twenty twenty five earnings call. Today's speakers are CEO, Brian Kitchen CFO, Ryan Kovalowskas and the company's on-site investor relations adviser, Ralph Esper. We'll begin with prepared remarks followed by q and a. Before we go further, I would like to turn the call over to Ralph Esper as he reads the company's safe harbor statement within the meaning of Private Security Litigation Reform Act of 1995 that provides important cautions regarding forward looking statements. Ralph? Ralf EsperDirector - IR at Gateway Group00:00:33Thanks, Marvin. Before we continue, I would like to remind all participants that the discussion today may contain certain forward looking statements pursuant to the Safe Harbor provisions of the federal securities laws. These statements are based on information currently available to us and are subject to various risks and uncertainties that could cause actual results to differ materially. Ascent advises all of those listening to this call to review the latest 10 Q and 10 ks posted on its website for a summary of these risks and uncertainties. Ascent does not undertake the responsibility to update any forward looking statements. Ralf EsperDirector - IR at Gateway Group00:01:09Further, discussion today may include non GAAP measures. In accordance with Regulation G, the company has reconciled these amounts back to closest GAAP based measurement. The reconciliations can be found in the earnings release issued earlier today and posted on the Investors section of the company's website at snco.com. Please note that this call is available for replay via webcast link that is also posted on the Investors section of the company's website. Now I'll turn it over to our CEO, Brian Kishan, to walk you through the results and what's driving continued momentum. Brian? J. Bryan KitchenCEO at Ascent Industries00:01:48Thanks, Ralph. Let's start with the headline. Despite ongoing soft market conditions, we delivered another sharp quarter of operating improvement. We controlled what we could, we stayed disciplined, and we drove measurable improvements through aggressive self help. Net sales from continuing operations totaled $24,700,000 down from $28,000,000 in Q1 of twenty twenty four, reflecting broader market softness. J. Bryan KitchenCEO at Ascent Industries00:02:13But that's where the similarities end. Adjusted EBITDA from continuing operations meaningfully improved, swinging from a loss of $2,700,000 in the prior year to a positive $843,000 this quarter, a $3,500,000 turnaround. The structural changes that we implemented across the organization over the last year are working as evidenced in the results that we are discussing today. It's a clear reflection of a more profitable book of business, enhanced operating discipline, and better sourcing. Let's dive into the details with an update on the Tubular Segments. J. Bryan KitchenCEO at Ascent Industries00:02:47On April 4, we closed on the sale of substantially all of the assets of Bristol Metals to Taichen International for $45,000,000 subject to certain closing adjustments. With the Bristol divestiture, ASCI remains our final tubular asset in continuing operations, and it performed well in Q1. In Q1, ASCI delivered $6,900,000 in revenue, down slightly year over year. However, gross margin jumped from 12.3% to 24.8%, and adjusted EBITDA rose nearly five times to 1,300,000.0 The story here is disciplined execution, tight cost control, sharper pricing, and operational efficiency. Even in a tough demand environment, we're proving that value can be created through focus and fundamentals. J. Bryan KitchenCEO at Ascent Industries00:03:37Let's talk about specialty chemicals. First, the macro. We continue to monitor the tariff environment. Over the last year, our strategic sourcing team has done an exceptional job improving our cost structure and building resilience in our supply chain. Because of these efforts, approximately 95% of our revenue is supported by domestically sourced raw materials. J. Bryan KitchenCEO at Ascent Industries00:03:57That's by design, and it's a major competitive advantage. As tariffs loom, customers are looking for reliable domestic partners, and we're stepping in to fill that need. In fact, we are currently working with customers to onshore essential ingredient supply chains from Asia, Europe, and Canada. ASCEND is proud to play an active role in domestic manufacturing renaissance in specialty chemicals, and we believe that tailwind is just beginning. Pivoting to our financial performance in q one, our Specialty Chemicals segment continues to deliver in a difficult demand environment. J. Bryan KitchenCEO at Ascent Industries00:04:31While revenue declined year over year to $17,800,000 gross profit increased by $2,100,000 rising from 1,600,000.0 in q one of twenty twenty four to '3 point '7 million dollars in Q1 of twenty twenty five, a 131% improvement, with gross margin expanding from 7.6% to 21%. Adjusted EBITDA improved by $2,300,000 swinging from a loss of 300,000 in the prior year to positive $2,000,000 this quarter. This strong improvement reflects the underlying muscle of our sourcing, manufacturing, and commercial efforts beginning to strike as one. The story here is about quality over quantity. We're deliberately shifting our mix to higher margin opportunities, tightening our commercial focus, and aligning our resources around opportunities where we have the right to win. J. Bryan KitchenCEO at Ascent Industries00:05:24And it's working. Throughout 2024, we invested in our ability to be a more capable, more responsive, and more integrated partner to our customers. We've aligned technical sales, applications development, operations, and supply chain to deliver a more holistic customer experience. That includes branded offerings in oil and gas and H and I and I, stronger quoting agility, and measured improvements in customer response time and solution delivery. It's early, but the model is showing traction, and we're building from here. J. Bryan KitchenCEO at Ascent Industries00:05:55In q one, our commercial and technical sales team secured an annualized $7,500,000 of net new business with EBITDA margins in excess of 20%. Importantly, this growth was well dispersed across key end markets, including oil and gas, case, lubricants, textiles, and other industrial applications. What's even more encouraging is the balance of that growth. 25% came from net new customer relationships. We are winning new customers. J. Bryan KitchenCEO at Ascent Industries00:06:2575% was an expansion within our existing customer base, a clear sign that our value proposition is resonating and our service execution is driving an increased share of wallet. We're not just selling a product. We're solving problems, creating formulations, and delivering it with speed, reliability, and compliance. We're customizing product products in quantities both large and small in ways that traditional manufacturers simply won't and delivering that customization with the level of flexibility and technical depth that classical distribution models can't match. It's a hybrid of custom manufacturing and high service distribution, and it's working. J. Bryan KitchenCEO at Ascent Industries00:07:06This is what sets us apart. It's not just what we make, it's how we make it work for each customer. Momentum is building not only in our operational performance, but also in market engagement. Average daily trading volume jumped to roughly 63,000 shares in q one of twenty twenty five, a 60% lift versus q one of twenty twenty four. That surge is proof that the market is beginning to tune into our story. J. Bryan KitchenCEO at Ascent Industries00:07:30In March, Brian and I joined the Planet Microcap podcast to unpack our story and our transformation roadmap. The reaction was immediate, new conversations, fresh inbound interest, and a broader audience tracking Ascent progress. Before I pass it off to Ryan, I want to thank our entire team at Ascent who has continued to demonstrate incredible grit, hustle, and the drive to win. I would also like to thank our investors for the confidence that they have placed in both Ryan and I and the team that we've assembled. With that, I'll turn it over to Ryan to provide a bit more context behind our financial performance. Ryan? Ryan KavalauskasChief Financial Officer at Ascent Industries00:08:05Thanks, Brian, and good afternoon, everyone. Let me take a few minutes to walk through our first quarter financials, highlighting many of the points Brian touched operational discipline and the structural changes we've been driving across the business. In the first quarter, revenue from continuing operations was $24,700,000 a year over year decline of $3,200,000 or 11.5% from Q1 twenty twenty four. It's important to note that this top line contraction was not only anticipated, it was largely intentional. As Brian alluded to, as part of our strategic repositioning, we actively chose to exit certain low margin, low value volume streams in favor of higher value, more technically demanding business. Ryan KavalauskasChief Financial Officer at Ascent Industries00:08:55That decision contributed to reduction in pounds shipped, but was offset in part by a 13.5 increase in average selling prices. The result is a leaner, more profitable commercial base that better aligns with our long term margin and return profile. Further evidence of our progress can be seen in gross profit, which nearly doubled to $4,800,000 or 19.3 percent of sales, compared to $2,300,000 or 8.3% last year, an expansion of over 1,100 basis points. This improvement reflects not just better pricing discipline and product mix, but also structural tailwinds from lower raw material costs, a continued focus on strategic sourcing, and improving throughput at our plants. These margin gains are not episodic. Ryan KavalauskasChief Financial Officer at Ascent Industries00:09:48They represent real progress in repositioning the business for sustainable profitability. Turning to our cost structure, we've made disciplined progress in enhancing operating efficiency, an outcome that reflects not only our internal focus on talent and process, but also tangible reductions in external spend. As a result, SG and A declined to $5,600,000 a reduction of $1,100,000 year over year. Efficiency increased as we saw SG and A representing 22.5% of sales, down from 23.9% in Q1 twenty twenty four. Importantly, this improvement did not stem simply from broad cost cutting. Ryan KavalauskasChief Financial Officer at Ascent Industries00:10:33Rather, it reflects the intentional allocation resources into people and processes that are now delivering leverage. Throughout 2024, we made precise, targeted investments in commercial, technical, and operational roles, designed not to simplistically grow the org chart, but to extract value from underutilized assets, improve workflow discipline, and accelerate decision velocity. This is a deliberate approach. We invest where we see measurable return, and we structure our organization to remain lean, agile, and performance driven. The outcome underscores our commitment to building a scalable, performance driven organization, one where cost efficiency is a function of execution, not austerity. Ryan KavalauskasChief Financial Officer at Ascent Industries00:11:22That same discipline and focus is beginning to show up in our financial results. Most notably, on a consolidated basis, adjusted EBITDA turned positive at $843,000 an increase of $3,500,000 from the $2,700,000 loss in Q1 of last year. This milestone reflects a combination of gross margin recovery, cost discipline, and early leverage on a more productive revenue base. This is the beginning of a more durable trend in operating performance, and we believe the underlying earning powers of this business is only just starting to show through. Finally, our balance sheet remains a key strategic advantage. Ryan KavalauskasChief Financial Officer at Ascent Industries00:12:02We ended the quarter with $14,300,000 in cash and no debt before the divestiture of substantially all of the Bristol assets for $45,000,000 providing significant flexibility as we evaluate capital deployment options. On a trailing basis, our cash burn has improved significantly, and we continue to target self funded growth where possible. During the quarter, we also repurchased approximately 17,000 shares at an average price of $12.73 reinforcing our conviction in intrinsic value and long term fundamentals. From an inorganic growth standpoint, we remain highly selective and disciplined. While market activity has remained muted, our strength in balance sheet gives us the optionality to act when the right opportunity presents itself without compromising on return thresholds or integration fit. Ryan KavalauskasChief Financial Officer at Ascent Industries00:12:56We're focused on businesses that complement our platform capabilities and growth aspirations, those with enhanced margin profiles, or portfolios that bring differentiated customer relationships. Until then, capital preservation and disciplined execution remain our default posture. To summarize, the revenue contraction this quarter reflects strategic pruning of lower margin business and repositioning for profitable growth. We delivered over a 1,000 basis point increase in gross margin expansion and achieved positive adjusted EBITDA, driven by efficiencies in our structural cost basis and mix improvements. We're operating with discipline, improving cash conversion, and have $14,300,000 in cash and no debt before the Bristol Sale, giving us real flexibility. Ryan KavalauskasChief Financial Officer at Ascent Industries00:13:43Foundation is stronger, our focus is sharper, and our optionality is increasing. With that, I'll turn it back over to the operator for questions. Thanks. Operator00:13:53Thank you, sir. At this time, we'll conduct a question and answer session. As a reminder, to ask a question, you will need to press 11 on your telephone and wait for your name to be announced. And our first question comes from the line of David Siegfried of Private Investor. Your line is now open. Analyst00:14:24Hey, guys. Congratulations on the momentum and the gross margin and on the Bristol sale. Ralf EsperDirector - IR at Gateway Group00:14:29Thank you. Analyst00:14:31I think I know I've appreciated the investor conferences and the transparency from that. I think that's been really good. A question though on the ASTI business. So that's doing well right now, 1,300,000.0 adjusted EBITDA in Q1. So let's say you get 4,000,000 to $6,000,000 in adjusted EBITDA in 2025 and get a 4 to 6,000,000 multiple on that. Analyst00:14:59Would you say that in this climate ornamental stainless domestic manufacturer is a more attractive target than it was, we'll say even six months ago? J. Bryan KitchenCEO at Ascent Industries00:15:12Yeah, David, hey, it's Brian. Appreciate the comments. And regarding your question, I wouldn't say it's materially changed. The demand has remained incredibly soft. We're seeing things pick up obviously in Q1, but it's still relatively soft market conditions. J. Bryan KitchenCEO at Ascent Industries00:15:30Related to the tariffs, we're getting some additional looks, but the barn doors are not being blown off at this stage. Analyst00:15:38Got it. Is that still a possibility that it could be sold in 2025? J. Bryan KitchenCEO at Ascent Industries00:15:45Yes, we're always evaluating options to monetize the value out of all of our assets. Analyst00:15:51Okay. I think it was mentioned that the goal for 2025 in chemicals is not top line, but profitability. And obviously, you're there now. Do you think that with the sticky revenue and the earnings profile that we can begin to get guidance going forward? J. Bryan KitchenCEO at Ascent Industries00:16:12Yes, I'll let Ryan comment on that further, but I would suggest that that's not going to happen inside of 2025. We're still while we stabilized significantly in 2024, there's still some stabilization activities happening in 2025. I think it's just a little bit too premature to start flashing guidance. Ryan KavalauskasChief Financial Officer at Ascent Industries00:16:29Yeah, like O'Brien's comments. I think as we continue to reevaluate the portfolio and the customers and the mix of products, I think until we get a more stable base, I think we're going to continue to kind of withhold forward looking guidance, just until we get a better handle on switching the business to this more higher margin style business that we're looking for. Analyst00:16:54Okay. Now you did mention that in one of the conferences that the goal is essentially 80,000,000 a year now chemicals to 120,000,000 by 02/1930 with your existing asset base. So that growth would start happening 2026. Is that the plan? J. Bryan KitchenCEO at Ascent Industries00:17:16Yeah, I think we'll start to see some element of growth certainly in the second half of the year. The team has developed a really strong and compelling selling project pipeline. As you know from our prior conversations, the sell cycle is not instantaneous. It does take some time, even for branded product sales. So we'll start to see a ramp in the second half of the year and bridging into a much more compelling top line in 2026. Analyst00:17:44Okay, good to hear. And did I hear that correctly that in 2024 I think it was 75% commodity, 25% blended in your chemicals and that 2025 would be like 60 fivethirty five mix. If you want to get to a fifty fifty split. Yeah. J. Bryan KitchenCEO at Ascent Industries00:18:03Yeah. Yeah. That's right. So twenty twenty twenty four, we ended the year with 75, 20 five split between custom manufacturing and branded product sales. I'll tell you that from a Q1 standpoint, we're in that same genre today. J. Bryan KitchenCEO at Ascent Industries00:18:16But we do have hopes that we'll be able to drive that towards a sixty fivethirty five split by the end of this year. Analyst00:18:23Got it. And this can all be done with the existing capacity and minimal CapEx? J. Bryan KitchenCEO at Ascent Industries00:18:28Absolutely. Yeah. So I mean, our our run rate CapEx is between 1 to $3,000,000 a year for the past, you know, four years. We believe that that's, reasonable, a reasonable assumption moving forward in our asset utilization today is is incredibly low. We have tons of runway for organic growth. Analyst00:18:46Okay, good. And then, 17,000 shares essentially bought in Q1. Was the board limited or was the buyback limited because of the Bristol transaction just wasn't able to be in the market the way you wanted to be? J. Bryan KitchenCEO at Ascent Industries00:19:03Yeah. I think from a q one standpoint, we executed against the buyback within the confines of the existing buyback program that we have. Certainly, our option out our optionality has increased with the personal sale, and we'll be looking at that moving forward. Analyst00:19:19Got it. Do you still feel the stock's undervalued at these levels? J. Bryan KitchenCEO at Ascent Industries00:19:25My personal opinion, yes. Analyst00:19:28And so with that expanded stock buyback that was announced on February 18, so you have the ability to buy at higher prices and a greater amount. Is that what's being said? J. Bryan KitchenCEO at Ascent Industries00:19:40We do. Obviously, they're limited on a daily basis on the number of shares that we can acquire at certain price points, but yes. Analyst00:19:47Got it. Okay. Well, thank you. Very good. Good to see the progress. J. Bryan KitchenCEO at Ascent Industries00:19:51Appreciate the questions, David. Operator00:19:54Thank you. At this time, this concludes the question and answer session. I'll now turn the call back over to Mr. Kitchen for closing remarks. J. Bryan KitchenCEO at Ascent Industries00:20:02Okay. Great. Thank you, Marvin. We'd like to thank everyone for listening to today's call, and we look forward to speaking with you again when we report our second quarter twenty twenty five results. Operator00:20:14Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.Read moreParticipantsExecutivesJ. Bryan KitchenCEORyan KavalauskasChief Financial OfficerAnalystsRalf EsperDirector - IR at Gateway GroupAnalystPowered by Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Ascent Industries Earnings HeadlinesHead to Head Analysis: Ascent Industries (ACNT) & Its CompetitorsJune 20 at 2:09 AM | americanbankingnews.comWith 36% ownership, Ascent Industries Co. (NASDAQ:ACNT) has piqued the interest of institutional investorsJune 17, 2025 | uk.finance.yahoo.comTrump wipes out trillions overnight…Is there anybody more powerful than Donald Trump right now? In a single tariff announcement, he wiped out nearly $5 trillion in wealth from the S&P 500 and $6.4 trillion from the Dow Jones… Not to mention the countless trillions of dollars lost in every market around the world… leaving the major political powers scrambling in fear of Trump’s next move.June 23, 2025 | Porter & Company (Ad)Ascent Industries Co. (NASDAQ:ACNT) Short Interest Up 81.5% in MayJune 16, 2025 | americanbankingnews.comInsider Spends US$63k Buying More Shares In Ascent IndustriesMay 22, 2025 | finance.yahoo.comAscent Industries Executes Significant Share BuybackMay 19, 2025 | tipranks.comSee More Ascent Industries Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Ascent Industries? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Ascent Industries and other key companies, straight to your email. Email Address About Ascent IndustriesAscent Industries (NASDAQ:ACNT) Co. an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries. The company also produces defoamers, surfactants, and lubricating agents for end users, including companies that supply agrochemical paper, metal working, coatings, water treatment, paint, mining, oil and gas, and janitorial and other applications. In addition, it provides contract manufacturing services, as well as operates as a multi-purpose plant to process various difficult to handle materials, including flammable solvents, viscous liquids, and granular solids. The company was formerly known as Synalloy Corporation and changed its name to Ascent Industries Co. in August 2022. Ascent Industries Co. was founded in 1945 and is based in Oak Brook, Illinois.View Ascent Industries ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Smith & Wesson Stock Falls on Earnings Miss, Tariff WoesBroadcom Slides on Solid Earnings, AI Outlook Still StrongFive Below Pops on Strong Earnings, But Rally May StallRed Robin's Comeback: Q1 Earnings Spark Investor HopesOllie’s Q1 Earnings: The Good, the Bad, and What’s NextBroadcom Earnings Preview: AVGO Stock Near Record HighsUlta’s Beautiful Q1 Earnings Report Points to More Gains Ahead Upcoming Earnings FedEx (6/24/2025)Micron Technology (6/25/2025)Paychex (6/25/2025)NIKE (6/26/2025)Bank of America (7/14/2025)Interactive Brokers Group (7/15/2025)America Movil (7/15/2025)Wells Fargo & Company (7/15/2025)Citigroup (7/15/2025)Charles Schwab (7/15/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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PresentationSkip to Participants Operator00:00:00Good afternoon, and welcome to Ascent Industries Q1 twenty twenty five earnings call. Today's speakers are CEO, Brian Kitchen CFO, Ryan Kovalowskas and the company's on-site investor relations adviser, Ralph Esper. We'll begin with prepared remarks followed by q and a. Before we go further, I would like to turn the call over to Ralph Esper as he reads the company's safe harbor statement within the meaning of Private Security Litigation Reform Act of 1995 that provides important cautions regarding forward looking statements. Ralph? Ralf EsperDirector - IR at Gateway Group00:00:33Thanks, Marvin. Before we continue, I would like to remind all participants that the discussion today may contain certain forward looking statements pursuant to the Safe Harbor provisions of the federal securities laws. These statements are based on information currently available to us and are subject to various risks and uncertainties that could cause actual results to differ materially. Ascent advises all of those listening to this call to review the latest 10 Q and 10 ks posted on its website for a summary of these risks and uncertainties. Ascent does not undertake the responsibility to update any forward looking statements. Ralf EsperDirector - IR at Gateway Group00:01:09Further, discussion today may include non GAAP measures. In accordance with Regulation G, the company has reconciled these amounts back to closest GAAP based measurement. The reconciliations can be found in the earnings release issued earlier today and posted on the Investors section of the company's website at snco.com. Please note that this call is available for replay via webcast link that is also posted on the Investors section of the company's website. Now I'll turn it over to our CEO, Brian Kishan, to walk you through the results and what's driving continued momentum. Brian? J. Bryan KitchenCEO at Ascent Industries00:01:48Thanks, Ralph. Let's start with the headline. Despite ongoing soft market conditions, we delivered another sharp quarter of operating improvement. We controlled what we could, we stayed disciplined, and we drove measurable improvements through aggressive self help. Net sales from continuing operations totaled $24,700,000 down from $28,000,000 in Q1 of twenty twenty four, reflecting broader market softness. J. Bryan KitchenCEO at Ascent Industries00:02:13But that's where the similarities end. Adjusted EBITDA from continuing operations meaningfully improved, swinging from a loss of $2,700,000 in the prior year to a positive $843,000 this quarter, a $3,500,000 turnaround. The structural changes that we implemented across the organization over the last year are working as evidenced in the results that we are discussing today. It's a clear reflection of a more profitable book of business, enhanced operating discipline, and better sourcing. Let's dive into the details with an update on the Tubular Segments. J. Bryan KitchenCEO at Ascent Industries00:02:47On April 4, we closed on the sale of substantially all of the assets of Bristol Metals to Taichen International for $45,000,000 subject to certain closing adjustments. With the Bristol divestiture, ASCI remains our final tubular asset in continuing operations, and it performed well in Q1. In Q1, ASCI delivered $6,900,000 in revenue, down slightly year over year. However, gross margin jumped from 12.3% to 24.8%, and adjusted EBITDA rose nearly five times to 1,300,000.0 The story here is disciplined execution, tight cost control, sharper pricing, and operational efficiency. Even in a tough demand environment, we're proving that value can be created through focus and fundamentals. J. Bryan KitchenCEO at Ascent Industries00:03:37Let's talk about specialty chemicals. First, the macro. We continue to monitor the tariff environment. Over the last year, our strategic sourcing team has done an exceptional job improving our cost structure and building resilience in our supply chain. Because of these efforts, approximately 95% of our revenue is supported by domestically sourced raw materials. J. Bryan KitchenCEO at Ascent Industries00:03:57That's by design, and it's a major competitive advantage. As tariffs loom, customers are looking for reliable domestic partners, and we're stepping in to fill that need. In fact, we are currently working with customers to onshore essential ingredient supply chains from Asia, Europe, and Canada. ASCEND is proud to play an active role in domestic manufacturing renaissance in specialty chemicals, and we believe that tailwind is just beginning. Pivoting to our financial performance in q one, our Specialty Chemicals segment continues to deliver in a difficult demand environment. J. Bryan KitchenCEO at Ascent Industries00:04:31While revenue declined year over year to $17,800,000 gross profit increased by $2,100,000 rising from 1,600,000.0 in q one of twenty twenty four to '3 point '7 million dollars in Q1 of twenty twenty five, a 131% improvement, with gross margin expanding from 7.6% to 21%. Adjusted EBITDA improved by $2,300,000 swinging from a loss of 300,000 in the prior year to positive $2,000,000 this quarter. This strong improvement reflects the underlying muscle of our sourcing, manufacturing, and commercial efforts beginning to strike as one. The story here is about quality over quantity. We're deliberately shifting our mix to higher margin opportunities, tightening our commercial focus, and aligning our resources around opportunities where we have the right to win. J. Bryan KitchenCEO at Ascent Industries00:05:24And it's working. Throughout 2024, we invested in our ability to be a more capable, more responsive, and more integrated partner to our customers. We've aligned technical sales, applications development, operations, and supply chain to deliver a more holistic customer experience. That includes branded offerings in oil and gas and H and I and I, stronger quoting agility, and measured improvements in customer response time and solution delivery. It's early, but the model is showing traction, and we're building from here. J. Bryan KitchenCEO at Ascent Industries00:05:55In q one, our commercial and technical sales team secured an annualized $7,500,000 of net new business with EBITDA margins in excess of 20%. Importantly, this growth was well dispersed across key end markets, including oil and gas, case, lubricants, textiles, and other industrial applications. What's even more encouraging is the balance of that growth. 25% came from net new customer relationships. We are winning new customers. J. Bryan KitchenCEO at Ascent Industries00:06:2575% was an expansion within our existing customer base, a clear sign that our value proposition is resonating and our service execution is driving an increased share of wallet. We're not just selling a product. We're solving problems, creating formulations, and delivering it with speed, reliability, and compliance. We're customizing product products in quantities both large and small in ways that traditional manufacturers simply won't and delivering that customization with the level of flexibility and technical depth that classical distribution models can't match. It's a hybrid of custom manufacturing and high service distribution, and it's working. J. Bryan KitchenCEO at Ascent Industries00:07:06This is what sets us apart. It's not just what we make, it's how we make it work for each customer. Momentum is building not only in our operational performance, but also in market engagement. Average daily trading volume jumped to roughly 63,000 shares in q one of twenty twenty five, a 60% lift versus q one of twenty twenty four. That surge is proof that the market is beginning to tune into our story. J. Bryan KitchenCEO at Ascent Industries00:07:30In March, Brian and I joined the Planet Microcap podcast to unpack our story and our transformation roadmap. The reaction was immediate, new conversations, fresh inbound interest, and a broader audience tracking Ascent progress. Before I pass it off to Ryan, I want to thank our entire team at Ascent who has continued to demonstrate incredible grit, hustle, and the drive to win. I would also like to thank our investors for the confidence that they have placed in both Ryan and I and the team that we've assembled. With that, I'll turn it over to Ryan to provide a bit more context behind our financial performance. Ryan? Ryan KavalauskasChief Financial Officer at Ascent Industries00:08:05Thanks, Brian, and good afternoon, everyone. Let me take a few minutes to walk through our first quarter financials, highlighting many of the points Brian touched operational discipline and the structural changes we've been driving across the business. In the first quarter, revenue from continuing operations was $24,700,000 a year over year decline of $3,200,000 or 11.5% from Q1 twenty twenty four. It's important to note that this top line contraction was not only anticipated, it was largely intentional. As Brian alluded to, as part of our strategic repositioning, we actively chose to exit certain low margin, low value volume streams in favor of higher value, more technically demanding business. Ryan KavalauskasChief Financial Officer at Ascent Industries00:08:55That decision contributed to reduction in pounds shipped, but was offset in part by a 13.5 increase in average selling prices. The result is a leaner, more profitable commercial base that better aligns with our long term margin and return profile. Further evidence of our progress can be seen in gross profit, which nearly doubled to $4,800,000 or 19.3 percent of sales, compared to $2,300,000 or 8.3% last year, an expansion of over 1,100 basis points. This improvement reflects not just better pricing discipline and product mix, but also structural tailwinds from lower raw material costs, a continued focus on strategic sourcing, and improving throughput at our plants. These margin gains are not episodic. Ryan KavalauskasChief Financial Officer at Ascent Industries00:09:48They represent real progress in repositioning the business for sustainable profitability. Turning to our cost structure, we've made disciplined progress in enhancing operating efficiency, an outcome that reflects not only our internal focus on talent and process, but also tangible reductions in external spend. As a result, SG and A declined to $5,600,000 a reduction of $1,100,000 year over year. Efficiency increased as we saw SG and A representing 22.5% of sales, down from 23.9% in Q1 twenty twenty four. Importantly, this improvement did not stem simply from broad cost cutting. Ryan KavalauskasChief Financial Officer at Ascent Industries00:10:33Rather, it reflects the intentional allocation resources into people and processes that are now delivering leverage. Throughout 2024, we made precise, targeted investments in commercial, technical, and operational roles, designed not to simplistically grow the org chart, but to extract value from underutilized assets, improve workflow discipline, and accelerate decision velocity. This is a deliberate approach. We invest where we see measurable return, and we structure our organization to remain lean, agile, and performance driven. The outcome underscores our commitment to building a scalable, performance driven organization, one where cost efficiency is a function of execution, not austerity. Ryan KavalauskasChief Financial Officer at Ascent Industries00:11:22That same discipline and focus is beginning to show up in our financial results. Most notably, on a consolidated basis, adjusted EBITDA turned positive at $843,000 an increase of $3,500,000 from the $2,700,000 loss in Q1 of last year. This milestone reflects a combination of gross margin recovery, cost discipline, and early leverage on a more productive revenue base. This is the beginning of a more durable trend in operating performance, and we believe the underlying earning powers of this business is only just starting to show through. Finally, our balance sheet remains a key strategic advantage. Ryan KavalauskasChief Financial Officer at Ascent Industries00:12:02We ended the quarter with $14,300,000 in cash and no debt before the divestiture of substantially all of the Bristol assets for $45,000,000 providing significant flexibility as we evaluate capital deployment options. On a trailing basis, our cash burn has improved significantly, and we continue to target self funded growth where possible. During the quarter, we also repurchased approximately 17,000 shares at an average price of $12.73 reinforcing our conviction in intrinsic value and long term fundamentals. From an inorganic growth standpoint, we remain highly selective and disciplined. While market activity has remained muted, our strength in balance sheet gives us the optionality to act when the right opportunity presents itself without compromising on return thresholds or integration fit. Ryan KavalauskasChief Financial Officer at Ascent Industries00:12:56We're focused on businesses that complement our platform capabilities and growth aspirations, those with enhanced margin profiles, or portfolios that bring differentiated customer relationships. Until then, capital preservation and disciplined execution remain our default posture. To summarize, the revenue contraction this quarter reflects strategic pruning of lower margin business and repositioning for profitable growth. We delivered over a 1,000 basis point increase in gross margin expansion and achieved positive adjusted EBITDA, driven by efficiencies in our structural cost basis and mix improvements. We're operating with discipline, improving cash conversion, and have $14,300,000 in cash and no debt before the Bristol Sale, giving us real flexibility. Ryan KavalauskasChief Financial Officer at Ascent Industries00:13:43Foundation is stronger, our focus is sharper, and our optionality is increasing. With that, I'll turn it back over to the operator for questions. Thanks. Operator00:13:53Thank you, sir. At this time, we'll conduct a question and answer session. As a reminder, to ask a question, you will need to press 11 on your telephone and wait for your name to be announced. And our first question comes from the line of David Siegfried of Private Investor. Your line is now open. Analyst00:14:24Hey, guys. Congratulations on the momentum and the gross margin and on the Bristol sale. Ralf EsperDirector - IR at Gateway Group00:14:29Thank you. Analyst00:14:31I think I know I've appreciated the investor conferences and the transparency from that. I think that's been really good. A question though on the ASTI business. So that's doing well right now, 1,300,000.0 adjusted EBITDA in Q1. So let's say you get 4,000,000 to $6,000,000 in adjusted EBITDA in 2025 and get a 4 to 6,000,000 multiple on that. Analyst00:14:59Would you say that in this climate ornamental stainless domestic manufacturer is a more attractive target than it was, we'll say even six months ago? J. Bryan KitchenCEO at Ascent Industries00:15:12Yeah, David, hey, it's Brian. Appreciate the comments. And regarding your question, I wouldn't say it's materially changed. The demand has remained incredibly soft. We're seeing things pick up obviously in Q1, but it's still relatively soft market conditions. J. Bryan KitchenCEO at Ascent Industries00:15:30Related to the tariffs, we're getting some additional looks, but the barn doors are not being blown off at this stage. Analyst00:15:38Got it. Is that still a possibility that it could be sold in 2025? J. Bryan KitchenCEO at Ascent Industries00:15:45Yes, we're always evaluating options to monetize the value out of all of our assets. Analyst00:15:51Okay. I think it was mentioned that the goal for 2025 in chemicals is not top line, but profitability. And obviously, you're there now. Do you think that with the sticky revenue and the earnings profile that we can begin to get guidance going forward? J. Bryan KitchenCEO at Ascent Industries00:16:12Yes, I'll let Ryan comment on that further, but I would suggest that that's not going to happen inside of 2025. We're still while we stabilized significantly in 2024, there's still some stabilization activities happening in 2025. I think it's just a little bit too premature to start flashing guidance. Ryan KavalauskasChief Financial Officer at Ascent Industries00:16:29Yeah, like O'Brien's comments. I think as we continue to reevaluate the portfolio and the customers and the mix of products, I think until we get a more stable base, I think we're going to continue to kind of withhold forward looking guidance, just until we get a better handle on switching the business to this more higher margin style business that we're looking for. Analyst00:16:54Okay. Now you did mention that in one of the conferences that the goal is essentially 80,000,000 a year now chemicals to 120,000,000 by 02/1930 with your existing asset base. So that growth would start happening 2026. Is that the plan? J. Bryan KitchenCEO at Ascent Industries00:17:16Yeah, I think we'll start to see some element of growth certainly in the second half of the year. The team has developed a really strong and compelling selling project pipeline. As you know from our prior conversations, the sell cycle is not instantaneous. It does take some time, even for branded product sales. So we'll start to see a ramp in the second half of the year and bridging into a much more compelling top line in 2026. Analyst00:17:44Okay, good to hear. And did I hear that correctly that in 2024 I think it was 75% commodity, 25% blended in your chemicals and that 2025 would be like 60 fivethirty five mix. If you want to get to a fifty fifty split. Yeah. J. Bryan KitchenCEO at Ascent Industries00:18:03Yeah. Yeah. That's right. So twenty twenty twenty four, we ended the year with 75, 20 five split between custom manufacturing and branded product sales. I'll tell you that from a Q1 standpoint, we're in that same genre today. J. Bryan KitchenCEO at Ascent Industries00:18:16But we do have hopes that we'll be able to drive that towards a sixty fivethirty five split by the end of this year. Analyst00:18:23Got it. And this can all be done with the existing capacity and minimal CapEx? J. Bryan KitchenCEO at Ascent Industries00:18:28Absolutely. Yeah. So I mean, our our run rate CapEx is between 1 to $3,000,000 a year for the past, you know, four years. We believe that that's, reasonable, a reasonable assumption moving forward in our asset utilization today is is incredibly low. We have tons of runway for organic growth. Analyst00:18:46Okay, good. And then, 17,000 shares essentially bought in Q1. Was the board limited or was the buyback limited because of the Bristol transaction just wasn't able to be in the market the way you wanted to be? J. Bryan KitchenCEO at Ascent Industries00:19:03Yeah. I think from a q one standpoint, we executed against the buyback within the confines of the existing buyback program that we have. Certainly, our option out our optionality has increased with the personal sale, and we'll be looking at that moving forward. Analyst00:19:19Got it. Do you still feel the stock's undervalued at these levels? J. Bryan KitchenCEO at Ascent Industries00:19:25My personal opinion, yes. Analyst00:19:28And so with that expanded stock buyback that was announced on February 18, so you have the ability to buy at higher prices and a greater amount. Is that what's being said? J. Bryan KitchenCEO at Ascent Industries00:19:40We do. Obviously, they're limited on a daily basis on the number of shares that we can acquire at certain price points, but yes. Analyst00:19:47Got it. Okay. Well, thank you. Very good. Good to see the progress. J. Bryan KitchenCEO at Ascent Industries00:19:51Appreciate the questions, David. Operator00:19:54Thank you. At this time, this concludes the question and answer session. I'll now turn the call back over to Mr. Kitchen for closing remarks. J. Bryan KitchenCEO at Ascent Industries00:20:02Okay. Great. Thank you, Marvin. We'd like to thank everyone for listening to today's call, and we look forward to speaking with you again when we report our second quarter twenty twenty five results. Operator00:20:14Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.Read moreParticipantsExecutivesJ. Bryan KitchenCEORyan KavalauskasChief Financial OfficerAnalystsRalf EsperDirector - IR at Gateway GroupAnalystPowered by