Exhibit 99.1

ascentlogo.jpg

Ascent Industries Reports Second Quarter 2023 Results
Oak Brook, Illinois, August 8, 2023 – Ascent Industries Co. (Nasdaq: ACNT) (“Ascent” or the “Company”), an industrials company focused on the production and distribution of industrial tubular products and specialty chemicals, is reporting its results for the second quarter ended June 30, 2023.

Second Quarter 2023 Summary - Continuing Operations1
(in millions, except per share and margin)Q2 2023Q2 2022Change
Net Sales$60.7$84.6-28.3%
Gross Profit$3.2$20.2-84.0%
Gross Profit Margin5.3%23.9%-1860bps
Net Income (Loss)$(3.7)$10.8-134.8%
Diluted Earnings (Loss) per Share$(0.37)$1.04-135.6%
Adjusted EBITDA$(1.5)$14.8-110.0%
Adjusted EBITDA Margin(2.4)%17.4%-1980bps
________________
1On 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 or around August 31, 2023. As a result, financial results from Munhall have been categorized into discontinued operations.

Management Commentary
“Challenges related to the strategic changes we’ve implemented over the last several quarters, along with difficult end market conditions impacting demand, continued to persist in the second quarter,” said Chris Hutter, president and CEO of Ascent. “Despite this difficult environment, our organization took action by finalizing the permanent closure of our Munhall operations, as well as managing working capital effectively to generate cash and pay down debt. We believe our tubular products segment is on a path to improve through the remainder of the year, while we continue to work on expanding our sales pipeline within the specialty chemicals segment to drive long-term, profitable growth.

“We remain highly committed to executing our strategic goals and believe the operational changes we’ve made will significantly benefit the Company’s value proposition over the long-term. Although the work is never done, we have made tangible progress to right-size our operational footprint, create a more efficient organization, and implement a refreshed culture based on accountability and performance-based results. We believe the largest hurdles are now behind us and expect to begin seeing improvements through the remainder of the year.”

Second Quarter 2023 Financial Results
Net sales from continuing operations were $60.7 million compared to $84.6 million in the prior year period. The decrease is primarily due to lower overall sales volumes and lower average selling prices within both the tubular products and specialty chemicals segments.

Gross profit from continuing operations was $3.2 million, or 5.3% of net sales, compared to $20.2 million, or 23.9% of net sales, in the second quarter of 2022. The decrease is primarily attributable to the decline in net sales in addition to increased raw material and labor costs.

Net loss from continuing operations was $3.7 million, or $(0.37) diluted loss per share, compared to net income from continuing operations of $10.8 million, or $1.04 diluted earnings per share, in the second quarter of 2022. The decrease is primarily attributable to the aforementioned decline in gross profit and higher interest expense.


1

Adjusted EBITDA was $(1.5) million compared to $14.8 million in the second quarter of 2022. Adjusted EBITDA margin was (2.4)% compared to 17.4% in the prior year period. The decrease is primarily attributable to the Company’s aforementioned decline in net sales.

Segment Results
Ascent Tubular – net sales from continuing operations in the second quarter of 2023 were $39.3 million compared to $55.6 million in the second quarter of 2022. Operating loss from continuing operations in the second quarter was $0.1 million compared to operating income from continuing operations of $13.0 million in the prior year period. Adjusted EBITDA from continuing operations in the second quarter was $0.8 million compared to $14.2 million in the prior year period. As a percentage of segment net sales, adjusted EBITDA was 2.1% compared to 25.6% in the second quarter of 2022.

Ascent Chemicals – net sales in the second quarter of 2023 were $21.4 million compared to $29.0 million in the second quarter of 2022. Operating loss in the second quarter was $0.8 million compared to operating income of $2.6 million in the prior year period. Adjusted EBITDA in the second quarter was $0.3 million compared to $3.6 million in the prior year period. As a percentage of segment net sales, adjusted EBITDA was 1.5% compared to 12.6% in the second quarter of 2022.

Liquidity
As of June 30, 2023, total debt was $54.5 million under the Company’s revolving credit facility, compared to $71.5 million in debt at December 31, 2022. As of June 30, 2023, the Company had $45.4 million of remaining available borrowing capacity under its revolving credit facility, compared to $37.6 million at December 31, 2022.

During the second quarter of 2023, the Company repurchased 18,843 shares at an average cost of $9.34 per share for approximately $0.2 million, bringing total year-to-date repurchases for 2023 to 51,156 shares. The Company currently has 628,823 shares remaining under its share repurchase authorization.

Conference Call
Ascent will conduct a conference call today at 5:00 p.m. Eastern time to discuss its results for the second quarter ended June 30, 2023.

Ascent management will host the conference call, followed by a question-and-answer period.
Date: Tuesday, August 8, 2023
Time: 5:00 p.m. Eastern time
Live Call Registration Link: Here
Webcast Registration Link: Here

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. 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 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 stainless steel, the master distribution of seamless carbon pipe and tube, and the production of specialty chemicals. For more information about Ascent, please visit its web site 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.
2

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 (including change in fair value of interest rate swap), 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, proxy contest costs and recoveries, loss on extinguishment of debt, earn-out adjustments, realized and unrealized (gains) and losses on investments in equity securities and other investments, 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.
Company Contact
Bill Steckel
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
3
Ascent Industries Co.
Condensed Consolidated Balance Sheets
(in thousands, except par value and share data)
    
(Unaudited)
 June 30, 2023December 31, 2022
Assets 
Current assets: 
Cash and cash equivalents$717 $1,440 
Accounts receivable, net of allowance for credit losses of $734 and $762, respectively35,053 37,062 
Inventories74,300 85,572 
Prepaid expenses and other current assets9,186 7,802 
Assets held for sale17,398 380 
Current assets of discontinued operations3,441 38,120 
Total current assets140,095 170,376 
Property, plant and equipment, net34,364 37,045 
Right-of-use assets, operating leases, net28,509 29,198 
Goodwill11,389 11,389 
Intangible assets, net9,248 10,001 
Deferred income taxes6,869 1,353 
Deferred charges, net153 203 
Other non-current assets, net1,782 1,861 
Long-term assets of discontinued operations13 7,617 
Total assets$232,422 $269,043 
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable$22,242 $19,623 
Accrued expenses and other current liabilities5,504 6,039 
Current portion of note payable900 387 
Current portion of long-term debt2,464 2,464 
Current portion of operating lease liabilities1,093 1,029 
Current portion of finance lease liabilities283 280 
Current liabilities of discontinued operations1,839 3,656 
Total current liabilities34,325 33,478 
Long-term debt52,056 69,085 
Long-term portion of operating lease liabilities30,338 30,911 
Long-term portion of finance lease liabilities1,313 1,242 
Other long-term liabilities64 68 
Total non-current liabilities83,771 101,306 
Total liabilities$118,096 $134,784 
Commitments and contingencies
Shareholders' equity:
Common stock, par value $1 per share; 24,000,000 shares authorized; 11,085,103 and 10,158,219 shares issued and outstanding, respectively$11,085 $11,085 
Capital in excess of par value46,951 47,021 
Retained earnings65,311 85,146 
 123,347 143,252 
Less: cost of common stock in treasury - 926,884 and 924,504 shares, respectively(9,021)(8,993)
Total shareholders' equity114,326 134,259 
Total liabilities and shareholders' equity$232,422 $269,043 
Note: The condensed consolidated balance sheets at December 31, 2022 have been derived from the audited consolidated financial statements at that date.
4
Ascent Industries Co.
Condensed Consolidated Statements of Income (Loss) - Comparative Analysis (Unaudited)
($ in thousands, except per share data)
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Net sales
Tubular Products$39,302 $55,580 $82,922 $111,454 
Specialty Chemicals21,363 29,020 45,112 56,741 
All Other— — 50 114 
60,665 84,600 128,084 168,309 
Operating income (loss) from continuing operations
Tubular Products(105)12,992 1,560 27,120 
Specialty Chemicals(806)2,627 546 5,014 
All Other(74)(235)(552)(317)
Corporate
Unallocated corporate expenses(2,750)(3,322)(6,455)(6,351)
Acquisition costs and other(17)(157)(274)(688)
Total Corporate(2,767)(3,479)(6,729)(7,039)
Operating income (loss)(3,752)11,905 (5,175)24,778 
Interest expense1,047 407 2,154 810 
Other, net(154)(23)(247)(58)
Income (loss) from continuing operations before income taxes(4,645)11,521 (7,082)24,026 
Income tax provision (benefit)(897)699 (1,385)3,197 
Income (loss) from continuing operations(3,748)10,822 (5,697)20,829 
Income (loss) from discontinued operations, net of tax(10,888)235 (14,138)488 
Net income (loss)$(14,636)$11,057 $(19,835)$21,317 
Net income (loss) per common share from continuing operations
Basic$(0.37)$1.06 $(0.56)$2.04 
Diluted$(0.37)$1.04 $(0.56)$2.01 
Net income (loss) per common share from discontinued operations
Basic$(1.07)$0.02 $(1.39)$0.05 
Diluted$(1.07)$0.02 $(1.39)$0.05 
Net income (loss) per common share
Basic$(1.44)$1.08 $(1.95)$2.08 
Diluted$(1.44)$1.06 $(1.95)$2.05 
Average shares outstanding
Basic10,170 10,244 10,159 10,226 
Diluted10,170 10,431 10,159 10,377 
Other data:
Adjusted EBITDA1
$(1,471)$14,751 $(166)$30,680 
1The term Adjusted EBITDA is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results to determine the value of a company. An item is excluded in the measure if its periodic value is inconsistent and sufficiently material that not identifying the item would render period comparability less meaningful to the reader or if including the item provides a clearer representation of normalized periodic earnings. The Company excludes in Adjusted EBITDA two categories of items: 1) Base EBITDA components, including: interest expense (including change in fair value of interest rate swap), income taxes, depreciation and amortization, and 2) Material transaction costs including: goodwill impairment, asset impairment, gain on lease modification, stock-based compensation, non-cash lease cost, acquisition costs and other fees, proxy contest costs and recoveries, loss on extinguishment of debt, earn-out adjustments, realized and unrealized (gains) and losses on investments in equity securities and other investments, retention costs and restructuring & severance costs from net income. For a reconciliation of this non-GAAP measure to the most comparable GAAP equivalent, refer to the Reconciliation of Net Income (Loss) to Adjusted EBITDA.
5
Ascent Industries Co.
Consolidated Statements of Cash Flows (Unaudited)
($ in thousands)
Six Months Ended June 30,
20232022
Operating activities  
Net income (loss)$(19,835)$21,317 
Net income (loss) from discontinued operations, net of tax(14,138)488 
Net income (loss) from continuing operations(5,697)20,829 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:  
Depreciation expense3,243 3,201 
Amortization expense753 1,343 
Amortization of debt issuance costs50 49 
Deferred income taxes(5,515)(642)
Payments of earn-out liabilities in excess of acquisition date fair value
— (372)
(Reduction of) provision for losses on accounts receivable(28)459 
Provision for losses on inventories1,190 863 
Loss (gain) on disposal of property, plant and equipment182 (5)
Non-cash lease expense137 214 
Issuance of treasury stock for director fees— 364 
Stock-based compensation expense414 446 
Changes in operating assets and liabilities: 
Accounts receivable2,037 (10,173)
Inventories10,279 (27,738)
Other assets and liabilities(295)(755)
Accounts payable2,095 14,476 
Accrued expenses(587)(1,980)
Accrued income taxes(743)110 
Net cash provided by operating activities - continuing operations7,515 689 
Net cash provided by operating activities - discontinued operations10,557 2,200 
Net cash provided by operating activities18,072 2,889 
Investing activities  
Purchases of property, plant and equipment(1,483)(1,981)
Proceeds from disposal of property, plant and equipment— 5 
Net cash used in investing activities - continuing operations(1,483)(1,976)
Net cash used in investing activities - discontinued operations(142)(349)
Net cash used in investing activities(1,625)(2,325)
Financing activities  
Borrowings from long-term debt139,137 237,938 
Proceeds from note payable900 967 
Proceeds from the exercise of stock options— 161 
Payments on long-term debt(156,166)(240,017)
Payments on note payable(387)(96)
Principal payments on finance lease obligations(151)(126)
Payments on earn-out liabilities— (484)
Repurchase of common stock(504)— 
Net cash used in financing activities - continuing operations(17,171)(1,657)
Net cash used in financing activities - discontinued operations— (683)
Net cash used in financing activities(17,171)(2,340)
Decrease in cash and cash equivalents(724)(1,776)
Less: Cash and cash equivalents of discontinued operations1 4 
Cash and cash equivalents, beginning of period1,440 2,017 
Cash and cash equivalents, end of period$717 $245 
6
Ascent Industries Co.
Non-GAAP Financial Measures Reconciliation
Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited)
($ in thousands)

Three Months Ended
June 30,		Six Months Ended
June 30,
($ in thousands)2023202220232022
Consolidated
Net income (loss) from continuing operations$(3,748)$10,822 $(5,697)$20,687 
Adjustments:
Interest expense1,047 407 2,154 810 
Income taxes(897)699 (1,385)3,339 
Depreciation1,632 1,621 3,243 3,201 
Amortization376 672 753 1,343 
EBITDA(1,590)14,221 (932)29,380 
Acquisition costs and other20 157 280 688 
Gain on lease modification— (2)— (2)
Stock-based compensation24 258 246 390 
Non-cash lease expense68 107 137 214 
Restructuring and severance costs7 10 103 10 
Adjusted EBITDA$(1,471)$14,751 $(166)$30,680 
% sales(2.4)%17.4 %(0.1)%18.2 %
Tubular Products
Net income (loss) from continuing operations$(105)$12,993 $1,560 $27,120 
Adjustments:
Depreciation expense653 688 1,290 1,363 
Amortization expense218 576 436 1,152 
EBITDA766 14,257 3,286 29,635 
Acquisition costs and other4 — 4 — 
Stock-based compensation10 (16)(9)19 
Non-cash lease expense36 (1)72 (1)
Restructuring and severance costs— — 97 — 
Tubular Products Adjusted EBITDA$816 $14,240 $3,450 $29,653 
% segment sales2.1 %25.6 %4.2 %26.6 %
Specialty Chemicals
Net income (loss)$(818)$2,617 $523 $4,995 
Adjustments:
Interest expense18 9 31 18 
Depreciation expense956 915 1,908 1,800 
Amortization expense158 96 317 192 
EBITDA314 3,637 2,779 7,005 
Acquisition costs and other— — 2 — 
Stock-based compensation(23)11 (16)18 
Non-cash lease expense22 — 46 — 
Specialty Chemicals Adjusted EBITDA$313 $3,648 $2,811 $7,023 
% segment sales1.5 %12.6 %6.2 %12.4 %
7