Annual report pursuant to Section 13 and 15(d)

Industry Segments

v3.24.1
Industry Segments
 12 Months Ended
Dec. 31, 2023
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 of stainless steel pipe and tube. 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.

On January 1, 2023, the Company changed the grouping of certain immaterial revenue and expenses associated with the ceased Palmer operations. As a result, certain prior period Tubular Products segment results have been reclassified to All Other to be comparable to the current period's presentation. During the second quarter of 2023, the Board of Directors made the decision to permanently cease operations at the Company’s Munhall facility, which was effective August 31, 2023. As a result, certain prior period Tubular Products segment results have been reclassified to remove Munhall's results from continuing operations to discontinued operations. On December 22, 2023, the Company and its wholly-owned subsidiary Specialty Pipe & Tube, Inc. (“SPT”) entered into an Asset Purchase Agreement pursuant to which Ascent and SPT sold substantially all of the assets primarily related to SPT to Specialty Pipe & Tube Operations, LLC, a Delaware limited liability company. The transaction closed on December 22, 2023. As a result, prior period Tubular Products segment results have been reclassified to remove SPT's results from continuing operations to discontinued operations.

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 continuing operations:
(in thousands) 2023 2022
Net sales    
Tubular Products $ 109,513  $ 154,040 
Specialty Chemicals 83,616  107,542 
All Other 50  411 
  $ 193,179  $ 261,993 
Operating (loss) income    
Tubular Products $ (11,210) $ 22,182 
Specialty Chemicals (12,558) 6,971 
All Other (801) (509)
  (24,569) 28,644 
Corporate
Unallocated corporate expenses (12,018) (12,997)
Acquisition costs and other (843) (1,104)
Total Corporate (12,861) (14,101)
Operating (loss) income (37,430) 14,543 
Interest expense 4,238  2,742 
Other income, net (593) (209)
(Loss) income before income taxes $ (41,075) $ 12,010 
Identifiable assets    
Tubular Products $ 70,548  $ 89,050 
Specialty Chemicals 49,547  72,990 
Corporate & Other 42,339  37,907 
  $ 162,434  $ 199,947 
Depreciation and amortization    
Tubular Products $ 3,145  $ 3,451 
Specialty Chemicals 4,432  4,749 
Corporate & Other 89  74 
  $ 7,666  $ 8,274 
Capital expenditures    
Tubular Products $ 1,104  $ 2,076 
Specialty Chemicals 1,519  1,140 
Corporate & Other 262  178 
  $ 2,885  $ 3,394 
Sales by product group
Fiberglass and steel liquid storage tanks and separation equipment $ 50  $ 411 
Stainless steel pipe and tube 109,513  154,040 
Specialty chemicals 83,616  107,542 
$ 193,179  $ 261,993 
Geographic sales    
United States $ 188,241  $ 253,693 
Elsewhere 4,938  8,300 
  $ 193,179  $ 261,993