Quarterly report pursuant to Section 13 or 15(d)

Industry Segments

v3.23.1
Industry Segments
 3 Months Ended
Mar. 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 and distribution of stainless steel, galvanized steel and seamless carbon 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.

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:
Three Months Ended March 31,
(in thousands) 2023 2022
Net sales
Tubular Products $ 58,653  $ 88,383 
Specialty Chemicals 23,749  27,721 
All Other 50  114 
$ 82,452  $ 116,218 
Operating income (loss)
Tubular Products $ (2,504) $ 14,574 
Specialty Chemicals 1,352  2,387 
All Other (479) (82)
Corporate
Unallocated corporate expenses (3,704) (3,029)
Acquisition costs and other (259) (531)
Earn-out adjustments —  (102)
Total Corporate (3,963) (3,662)
Operating income (loss) (5,594) 13,217 
Interest expense 1,107  403 
Other, net (95) (35)
Income (loss) before income taxes $ (6,606) $ 12,849 
As of
(in thousands) March 31, 2023 December 31, 2022
Identifiable assets
Tubular Products $ 145,416  $ 158,664 
Specialty Chemicals 70,406  72,990 
Corporate 39,210  37,389 
$ 255,032  $ 269,043