Quarterly report pursuant to Section 13 or 15(d)

Industry Segments

v3.23.2
Industry Segments
 6 Months Ended
Jun. 30, 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 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. During the second quarter of 2023, the Board of Directors made the decision to permanently cease operations at the Company’s Munhall facility effective on or around 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.

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:
Three Months Ended June 30, Six Months Ended June 30,
(in thousands) 2023 2022 2023 2022
Net sales
Tubular Products $ 39,302  $ 55,580  $ 82,922  $ 111,454 
Specialty Chemicals 21,363  29,020  45,112  56,741 
All Other —  —  50  114 
$ 60,665  $ 84,600  $ 128,084  $ 168,309 
Operating income (loss)
Tubular Products $ (105) $ 12,992  $ 1,560  $ 27,120 
Specialty Chemicals (806) 2,627  546  5,014 
All Other (74) (235) (552) (317)
Corporate
Unallocated corporate expenses (2,750) (3,322) (6,455) (6,351)
Acquisition costs and other (17) (157) (274) (688)
Total Corporate (2,767) (3,479) (6,729) (7,039)
Operating income (loss) (3,752) 11,905  (5,175) 24,778 
Interest expense 1,047  407  2,154  810 
Other, net (154) (23) (247) (58)
Income (loss) before income taxes $ (4,645) $ 11,521  $ (7,082) $ 24,026 
As of
(in thousands) June 30, 2023 December 31, 2022
Identifiable assets
Tubular Products $ 99,380  $ 112,926 
Specialty Chemicals 67,269  72,990 
Corporate and other 65,773  83,127 
$ 232,422  $ 269,043