Ascent Industries Co. reported a decline in net sales for the third quarter and the first nine months of fiscal 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $42.9 million, down 8.2% from $46.7 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $137.2 million, a decrease of 9.7% from $152.0 million in the prior year. The decline was attributed to a 14.2% decrease in average selling prices, although this was partially offset by a 3.0% increase in pounds shipped.
Despite the drop in sales, the company experienced a significant improvement in profitability. Gross profit for Q3 2024 was $6.5 million, representing 15.1% of sales, compared to $3.0 million (6.4% of sales) in Q3 2023. For the nine months, gross profit surged to $14.8 million (10.8% of sales), up from $3.7 million (2.4% of sales) in the same period last year. This improvement was driven by better cost management and operational efficiencies.
Operating income from continuing operations showed a notable turnaround, with a profit of $496,000 in Q3 2024, compared to a loss of $15.1 million in Q3 2023. For the nine months, the operating loss narrowed to $5.0 million from $28.4 million in the previous year. The net loss for Q3 2024 was $6.2 million, a significant reduction from a loss of $17.9 million in Q3 2023. The nine-month net loss also improved to $12.6 million from $37.8 million in the prior year.
Strategically, Ascent Industries ceased operations at its Munhall facility effective August 31, 2023, leading to asset impairment charges totaling $10.9 million across several quarters. The remaining assets at the Munhall facility were sold for approximately $2.8 million, resulting in a gain of $1.5 million recognized in Q3 2024. Additionally, the company divested its Specialty Pipe & Tube, Inc. assets for about $55 million in December 2023, with results classified under discontinued operations.
Cash flow from operating activities for the nine months ended September 30, 2024, was $7.4 million, an increase from $4.0 million in the same period in 2023. The company ended the period with cash and cash equivalents of $8.5 million, a significant increase from $730,000 at the end of Q3 2023. Ascent Industries also maintained compliance with all financial debt covenants and had no outstanding debt under its credit facilities as of September 30, 2024.
About ASCENT INDUSTRIES CO.
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