Quarterly report pursuant to Section 13 or 15(d)

Industry Segments

v3.23.3
Industry Segments
 9 Months Ended
Sep. 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 September 30, Nine Months Ended September 30,
(in thousands) 2023 2022 2023 2022
Net sales
Tubular Products $ 36,061  $ 50,606  $ 118,983  $ 162,059 
Specialty Chemicals 20,052  27,328  65,164  84,070 
All Other —  287  50  401 
$ 56,113  $ 78,221  $ 184,197  $ 246,530 
Operating income (loss)
Tubular Products $ 1,705  $ 7,640  $ 3,264  $ 34,761 
Specialty Chemicals (11,481) 1,097  (10,935) 6,111 
All Other (132) (13) (684) (330)
Corporate
Unallocated corporate expenses (2,859) (3,890) (9,314) (10,241)
Acquisition costs and other —  (149) (274) (837)
Total Corporate (2,859) (4,039) (9,588) (11,078)
Operating income (loss) (12,767) 4,685  (17,943) 29,464 
Interest expense 1,063  827  3,217  1,637 
Other, net (97) (118) (344) (176)
Income (loss) from continuing operations before income taxes $ (13,733) $ 3,976  $ (20,816) $ 28,003 
As of
(in thousands) September 30, 2023 December 31, 2022
Identifiable assets
Tubular Products $ 106,968  $ 112,926 
Specialty Chemicals 53,529  72,990 
Corporate and other 54,694  83,127 
$ 215,191  $ 269,043