Exhibit 99.1
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Ascent Industries Reports Fourth Quarter and Full Year 2023 Results

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

New Leadership Focused on Accelerating Profitable Growth and Maximizing Value

Oak Brook, Illinois, March 28, 2024 – 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 2023Q4 2022Change
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)20232022Change
Net Sales$193.2$262.0(26.3)%
Gross Profit$1.5$43.3(96.5)%
Gross Profit Margin0.8%16.5%(1,570)bps
Net (Loss) Income$(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
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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 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.”
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Exhibit 99.1
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 $1.5million, 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
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Exhibit 99.1
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.
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Exhibit 99.1
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
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
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Ascent Industries Co.
Condensed Consolidated Balance Sheets
(in thousands, except par value and share data)
    
 December 31, 2023December 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, respectively26,604 33,202 
Inventories52,306 67,671 
Prepaid expenses and other current assets4,879 7,770 
Assets held for sale2,912 380 
Current assets of discontinued operations861 59,912 
Total current assets89,413 170,375 
Property, plant and equipment, net29,755 35,534 
Right-of-use assets, operating leases, net27,784 29,142 
Goodwill— 11,389 
Intangible assets, net8,496 10,001 
Deferred income taxes5,808 1,353 
Deferred charges, net104 203 
Other non-current assets, net1,935 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 liabilities5,108 5,509 
Current portion of note payable360 387 
Current portion of long-term debt— 2,464 
Current portion of operating lease liabilities1,140 1,015 
Current portion of finance lease liabilities292 280 
Current liabilities of discontinued operations1,473 9,709 
Total current liabilities24,789 33,478 
Long-term debt— 69,085 
Long-term portion of operating lease liabilities29,729 30,869 
Long-term portion of finance lease liabilities1,307 1,242 
Other long-term liabilities60 68 
Long-term liabilities of discontinued operations— 42 
Total non-current liabilities31,096 101,306 
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 value47,333 47,021 
Retained earnings58,517 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' equity107,410 134,259 
Total liabilities and shareholders' equity$163,295 $269,043 
Note: The condensed consolidated balance sheets at December 31, 2023 and 2022 have been derived from the audited consolidated financial statements at that date.
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Ascent Industries Co.
Condensed Consolidated Statements of Income (Loss) - Comparative Analysis (Unaudited)
($ in thousands, except per share data)
Three Months Ended
December 31,		Year Ended
December 31,
2023202220232022
Net sales
Tubular Products$22,765 $30,697 $109,513 $154,040 
Specialty Chemicals18,451 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 expense1,021 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 tax18,674 (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
Basic10,107 10,213 10,140 10,230 
Diluted10,374 10,416 10,140 10,410 
Other data:
Adjusted EBITDA1
$(5,941)$1,648 $(15,934)$25,590 
1The term Adjusted EBITDA is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results to determine the value of a company. An item is excluded in the measure if its periodic value is inconsistent and sufficiently material that not identifying the item would render period comparability less meaningful to the reader or if including the item provides a clearer representation of normalized periodic earnings. The Company excludes in Adjusted EBITDA two categories of items: 1) Base EBITDA components, including: interest expense, income taxes, depreciation and amortization, and 2) Material transaction costs including: goodwill impairment, asset impairment, gain on lease modification, stock-based compensation, non-cash lease cost, acquisition costs and other fees, loss on extinguishment of debt, earn-out adjustments, retention costs and restructuring & severance costs from net income. For a reconciliation of this non-GAAP measure to the most comparable GAAP equivalent, refer to the Reconciliation of Net Income (Loss) to Adjusted EBITDA.
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Ascent Industries Co.
Consolidated Statements of Cash Flows
($ in thousands)
Year Ended December 31,
20232022
Operating activities  
Net (loss) income$(26,629)$22,066 
Net income from discontinued operations, net of tax7,522 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 expense6,161 6,421 
Amortization expense1,505 1,853 
Amortization of debt issuance costs99 99 
Goodwill impairment11,389 — 
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 inventories3,318 2,615 
Loss (gain) on disposal of property, plant and equipment246 (18)
Non-cash lease expense242 414 
Issuance of treasury stock for director fees— 364 
Stock-based compensation expense1,023 1,355 
Changes in operating assets and liabilities:
Accounts receivable6,778 (264)
Inventories12,245 (13,685)
Other assets and liabilities515 (211)
Accounts payable1,650 (6,269)
Accounts payable - related parties— (2)
Accrued expenses(401)(2,127)
Accrued income taxes3,129 (7,923)
Net cash provided by (used in) operating activities - continuing operations6,644 (5,262)
Net cash provided by operating activities - discontinued operations16,434 10,839 
Net cash provided by operating activities23,078 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 operations53,386 (1,680)
Net cash provided by (used in) investing activities50,501 (4,975)
Financing activities  
Borrowings from long-term debt256,606 443,363 
Proceeds from note payable900 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 equivalents410 (580)
Less: Cash and cash equivalents of discontinued operations— 4 
Cash and cash equivalents, beginning of period1,441 2,017 
Cash and cash equivalents, end of period$1,851 $1,441 
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Ascent Industries Co.
Non-GAAP Financial Measures Reconciliation
Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited)
($ in thousands)

Three Months Ended
December 31,		Year Ended
December 31,
($ in thousands)2023202220232022
Consolidated
Net (loss) income from continuing operations$(7,535)$4,501 $(34,151)$17,578 
Adjustments:
Interest expense1,021 1,104 4,238 2,742 
Income taxes(2,244)(6,681)(6,924)(5,568)
Depreciation1,527 1,579 6,161 6,421 
Amortization376 429 1,505 1,853 
EBITDA(6,855)932 (29,171)23,026 
Acquisition costs and other579 266 856 1,104 
Shelf registration costs— 12 — 12 
Goodwill impairment— — 11,389 — 
Gain on lease modification— — — (2)
Stock-based compensation224 283 594 962 
Non-cash lease expense52 91 242 414 
Retention expense20 — 26 — 
Restructuring and severance costs39 64 130 74 
Adjusted EBITDA$(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)$22,182 
Adjustments:
Depreciation expense557 609 2,274 2,500 
Amortization expense217 238 871 951 
EBITDA(3,221)2,079 (8,065)25,633 
Stock-based compensation74 11 58 46 
Non-cash lease expense25 — 118 — 
Retention expense8 — 8 — 
Restructuring and severance costs— 20 84 20 
Tubular Products Adjusted EBITDA$(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)$6,935 
Adjustments:
Interest expense22 9 74 36 
Depreciation expense948 949 3,798 3,846 
Amortization expense158 191 634 903 
EBITDA(516)2,001 (8,113)11,720 
Acquisition costs and other10 — 12 — 
Goodwill impairment— — 11,389 — 
Stock-based compensation21 12 8 41 
Non-cash lease expense19 — 88 2 
Restructuring and severance costs40 8 40 8 
Specialty Chemicals Adjusted EBITDA$(426)$2,021 $3,424 $11,771 
% segment sales(2.3)%8.6 %4.1 %10.9 %
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