Quarterly report [Sections 13 or 15(d)]

Discontinued Operations

v3.25.3
Discontinued Operations
 9 Months Ended
Sep. 30, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
Divestiture of Bristol Metals
On March 12, 2025, the Company and its wholly-owned subsidiaries Synalloy Metals, Inc. ("Synalloy Metals") and Bristol Metals, LLC. ("BRISMET"), entered into an Asset Purchase Agreement (the “Purchase Agreement”) pursuant to which they sold substantially all of the assets related to BRISMET to Bristol Pipe and Tube, Inc., a Delaware corporation and wholly-owned subsidiary of Ta Chen International, Inc. (the “Purchaser”). Ascent and Purchaser also entered into a Transition Services Agreement (the “TSA”) dated March 12, 2025, pursuant to which Ascent has agreed to provide certain transition services to Purchaser immediately after the closing for certain agreed upon transition periods. On April 4, 2025, the Company and Purchaser completed the transaction contemplated by the Purchase Agreement. The consideration for the transaction was approximately $45 million of cash proceeds, of which $4.5 million was placed in an escrow account to be received in 18 months from the closing date. The escrow amount is presented within "Advances and other receivables" on the condensed consolidated balance sheets. During the three months ended September 30, 2025, the Company and Purchaser completed the measurement period closing adjustments under the terms of the Purchase Agreement resulting in a pretax gain on sale of $2.5 million. As result of the sale, BRISMET results of operations are classified under discontinued operations for all periods presented. Prior to the divestiture, BRISMET was reported under the Company's former Tubular Products segment.

Divestiture of American Stainless Tubing
On June 23, 2025, the Company and its wholly-owned subsidiary American Stainless Tubing, Inc. ("ASTI"), entered into an Asset Purchase Agreement (the “Purchase Agreement”) pursuant to which they sold substantially all of the assets related to ASTI to First Tube, LLC., a Texas limited liability company and wholly-owned subsidiary of Triple-S Steel Holdings, Inc (the “Purchaser”). On June 30, 2025, the Company and Purchaser completed the transaction contemplated by the Purchase Agreement. The consideration for the transaction was approximately $16 million of cash proceeds, of which $0.8 million was placed in an escrow account to be received in 12 months from the closing date. The escrow amount is presented within "Advances and other receivables" on the condensed consolidated balance sheets. The sale resulted in a preliminary, pretax gain on sale of $4.6 million, subject to certain measurement period closing adjustments. ASTI's results of operations are classified under discontinued operations for all periods presented. Prior to the divestiture, ASTI was reported under the Company's former Tubular Products segment.
The following table presents the aggregate carrying amounts of the classes of assets and liabilities of the Company's discontinued operations:
(in thousands) September 30, 2025 December 31, 2024
Carrying amounts of assets included as part of discontinued operations:
Cash and cash equivalents $ —  $ 10 
Accounts receivable, net —  11,597 
Inventories —  35,236 
Prepaid expenses and other current assets —  998 
Current assets classified as discontinued operations —  47,841 
Property, plant and equipment, net —  7,873 
Right-of-use assets, operating leases, net —  85 
Intangible assets, net —  3,564 
Other non-current assets, net —  2,661 
Long-term assets classified as discontinued operations —  14,183 
Total assets classified as discontinued operations $ —  $ 62,024 
Carrying amounts of current liabilities included as part of discontinued operations:
Accounts payable —  6,252 
Deferred revenue —  1,360 
Accrued expenses and other current liabilities —  2,019 
Current portion of operating lease liabilities —  84 
Current portion of finance lease liabilities 41 
Current liabilities classified as discontinued operations —  9,756 
Total liabilities classified as discontinued operations $ —  $ 9,756 

The financial results are presented as income (loss) from discontinued operations, net of tax on the unaudited condensed consolidated statements of income (loss). The following table summarizes the results of the Company's discontinued operations:
Three Months Ended September 30, Nine Months Ended
September 30,
(in thousands) 2025 2024 2025 2024
Net sales $ —  $ 22,051  $ 34,460  $ 74,848 
Cost of sales —  19,037  29,770  68,982 
Gross profit —  3,014  4,690  5,866 
Selling, general and administrative expense —  632  1,888  4,115 
Loss (gain) on sale of assets 1,900  (1,541) (7,094) (1,541)
Acquisition costs and other —  8  3,421  153 
Asset impairments —  —  —  1,115 
Income (loss) on discontinued operations before income taxes (1,900) 3,915  6,475  2,024 
Income tax expense (benefit) 62  2,266  (8) 1,864 
Net income (loss) from discontinued operations $ (1,962) $ 1,649  $ 6,483  $ 160