Annual report pursuant to Section 13 and 15(d)

Industry Segments

v3.23.1
Industry Segments
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Industry Segments Industry Segments
Ascent Industries Co. has two reportable segments: Tubular Products and Specialty Chemicals. The Tubular Products segment includes the operating results of the Company’s plants involved in the production and distribution of stainless steel, galvanized steel and seamless carbon pipe and tube. The Tubular Products segment includes the operating results of our Palmer business in Andrews, Texas currently held for sale, which will be removed from the segment beginning in 2023. The Tubular Products segment serves markets through pipe and tube and customers in the appliance, architectural, automotive and commercial transportation, brewery, chemical, petrochemical, pulp and paper, mining, power generation (including nuclear), water and waste-water treatment, liquid natural gas ("LNG"), food processing, pharmaceutical, oil and gas and other industries.

The Specialty Chemicals segment includes the operating results of the Company’s plants involved in the production of specialty chemicals. The Specialty Chemicals segment produces products for the pulp and paper, coatings, adhesives, sealants and elastomers (CASE), textile, automotive, household, industrial and institutional ("HII"), agricultural, water and waste-water treatment, construction, oil and gas and other industries.

The chief operating decision maker evaluates performance and determines resource allocations based on a number of factors, the primary measures being operating income and Adjusted earnings (loss) before interest, income taxes, depreciation and amortization. Adjusted earnings (loss) before interest, income taxes, depreciation and amortization excludes certain items that management believes are not indicative of future results.

The accounting principles applied at the operating segment level are the same as those applied at the consolidated financial statement level. Intersegment sales and transfers are eliminated at the corporate consolidation level.
The following table summarizes certain information regarding segments of the Company's operations:
(in thousands) 2022 2021
Net sales    
Tubular Products $ 306,605  $ 267,238 
Specialty Chemicals 107,542  67,477 
  $ 414,147  $ 334,715 
Operating income    
Tubular Products $ 27,607  $ 33,561 
Specialty Chemicals 6,971  3,656 
  34,578  37,217 
Corporate
Unallocated corporate expenses (12,997) (6,828)
Acquisition costs and other (1,200) (1,001)
Proxy contest costs and recoveries —  (168)
Earn-out adjustments 7  (1,872)
Total Corporate (14,190) (9,869)
Operating income 20,388  27,348 
Interest expense 2,742  1,486 
Change in fair value of interest rate swap —  (2)
Loss on extinguishment of debt —  223 
Other income, net (209) 143 
Income before income taxes $ 17,855  $ 25,498 
Identifiable assets    
Tubular Products $ 158,664  $ 160,625 
Specialty Chemicals 72,990  72,908 
Corporate 37,389  32,469 
  $ 269,043  $ 266,002 
Depreciation and amortization    
Tubular Products $ 7,906  $ 8,206 
Specialty Chemicals 4,749  2,005 
Corporate 62  130 
  $ 12,717  $ 10,341 
Capital expenditures    
Tubular Products $ 3,756  $ 1,011 
Specialty Chemicals 1,140  486 
Corporate 178  — 
  $ 5,074  $ 1,497 
Sales by product group
Fiberglass and steel liquid storage tanks and separation equipment $ 411  $ 1,343 
Heavy wall seamless carbon steel pipe and tube 48,227  40,539 
Stainless steel pipe and tube 222,892  186,651 
Galvanized pipe and tube 35,075  38,705 
Specialty chemicals 107,542  67,477 
$ 414,147  $ 334,715 
Geographic sales    
United States $ 403,956  $ 325,335 
Elsewhere 10,191  9,380 
  $ 414,147  $ 334,715