Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.3
Leases
 9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025.
On April 4, 2025, Ascent and Store entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the unaudited consolidated statements of income (loss).
On June 30, 2025, Ascent and Store entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI.
As of September 30, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $19.1 million, or 92% of the total lease liabilities on the consolidated balance sheet.
During the three and nine months ended September 30, 2025, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification Financial Statement Line Item September 30, 2025 December 31, 2024
Long-term Assets Right-of-use assets, operating leases $ 15,075  $ 28,140 
Long-term Assets Property, plant and equipment 1,001  1,227 
Current liabilities Current portion of lease liabilities, operating leases 1,035  1,495 
Current liabilities Current portion of lease liabilities, finance leases 306  293 
Non-current liabilities Non-current portion of lease liabilities, operating leases 18,563  29,972 
Non-current liabilities Non-current portion of lease liabilities, finance leases 784  1,015 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended September 30, Nine Months Ended
September 30,
(in thousands) 2025 2024 2025 2024
Operating lease cost1
$ 702  $ 1,002  $ 2,423  $ 2,963 
Finance lease cost:
Amortization of right-of-use assets 75  78  226  235 
Interest on finance lease liabilities 17  22  53  65 
Sublease income (145) (92) (406) (276)
Total lease cost $ 649  $ 1,010  $ 2,296  $ 2,987 
1Includes short term leases, which are immaterial
Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of September 30, 2025 are as follows:
(in thousands) Sublease Receipts
Remainder of 2025 $ 148 
2026 594 
2027 606 
2028 618 
2029 631 
Thereafter 4,597 
Total sublease receipts $ 7,194 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of September 30, 2025 are as follows:
(in thousands) Operating Finance
Remainder of 2025 $ 630  $ 90 
2026 2,481  361 
2027 2,532  361 
2028 2,584  303 
2029 2,637  85 
Thereafter 18,310  — 
Total undiscounted minimum future lease payments 29,174  1,200 
Imputed interest (9,576) (110)
Present value of lease liabilities $ 19,598  $ 1,090 
Lease Term and Discount Rate
Weighted-average remaining lease term September 30, 2025 December 31, 2024
Operating leases 10.83 years 11.59 years
Finance leases 3.39 years 4.13 years
Weighted-average discount rate
Operating leases 7.64  % 7.15  %
Finance leases 5.93  % 5.75  %
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025.
On April 4, 2025, Ascent and Store entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the unaudited consolidated statements of income (loss).
On June 30, 2025, Ascent and Store entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI.
As of September 30, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $19.1 million, or 92% of the total lease liabilities on the consolidated balance sheet.
During the three and nine months ended September 30, 2025, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification Financial Statement Line Item September 30, 2025 December 31, 2024
Long-term Assets Right-of-use assets, operating leases $ 15,075  $ 28,140 
Long-term Assets Property, plant and equipment 1,001  1,227 
Current liabilities Current portion of lease liabilities, operating leases 1,035  1,495 
Current liabilities Current portion of lease liabilities, finance leases 306  293 
Non-current liabilities Non-current portion of lease liabilities, operating leases 18,563  29,972 
Non-current liabilities Non-current portion of lease liabilities, finance leases 784  1,015 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended September 30, Nine Months Ended
September 30,
(in thousands) 2025 2024 2025 2024
Operating lease cost1
$ 702  $ 1,002  $ 2,423  $ 2,963 
Finance lease cost:
Amortization of right-of-use assets 75  78  226  235 
Interest on finance lease liabilities 17  22  53  65 
Sublease income (145) (92) (406) (276)
Total lease cost $ 649  $ 1,010  $ 2,296  $ 2,987 
1Includes short term leases, which are immaterial
Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of September 30, 2025 are as follows:
(in thousands) Sublease Receipts
Remainder of 2025 $ 148 
2026 594 
2027 606 
2028 618 
2029 631 
Thereafter 4,597 
Total sublease receipts $ 7,194 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of September 30, 2025 are as follows:
(in thousands) Operating Finance
Remainder of 2025 $ 630  $ 90 
2026 2,481  361 
2027 2,532  361 
2028 2,584  303 
2029 2,637  85 
Thereafter 18,310  — 
Total undiscounted minimum future lease payments 29,174  1,200 
Imputed interest (9,576) (110)
Present value of lease liabilities $ 19,598  $ 1,090 
Lease Term and Discount Rate
Weighted-average remaining lease term September 30, 2025 December 31, 2024
Operating leases 10.83 years 11.59 years
Finance leases 3.39 years 4.13 years
Weighted-average discount rate
Operating leases 7.64  % 7.15  %
Finance leases 5.93  % 5.75  %
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025.
On April 4, 2025, Ascent and Store entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the unaudited consolidated statements of income (loss).
On June 30, 2025, Ascent and Store entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI.
As of September 30, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $19.1 million, or 92% of the total lease liabilities on the consolidated balance sheet.
During the three and nine months ended September 30, 2025, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification Financial Statement Line Item September 30, 2025 December 31, 2024
Long-term Assets Right-of-use assets, operating leases $ 15,075  $ 28,140 
Long-term Assets Property, plant and equipment 1,001  1,227 
Current liabilities Current portion of lease liabilities, operating leases 1,035  1,495 
Current liabilities Current portion of lease liabilities, finance leases 306  293 
Non-current liabilities Non-current portion of lease liabilities, operating leases 18,563  29,972 
Non-current liabilities Non-current portion of lease liabilities, finance leases 784  1,015 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended September 30, Nine Months Ended
September 30,
(in thousands) 2025 2024 2025 2024
Operating lease cost1
$ 702  $ 1,002  $ 2,423  $ 2,963 
Finance lease cost:
Amortization of right-of-use assets 75  78  226  235 
Interest on finance lease liabilities 17  22  53  65 
Sublease income (145) (92) (406) (276)
Total lease cost $ 649  $ 1,010  $ 2,296  $ 2,987 
1Includes short term leases, which are immaterial
Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of September 30, 2025 are as follows:
(in thousands) Sublease Receipts
Remainder of 2025 $ 148 
2026 594 
2027 606 
2028 618 
2029 631 
Thereafter 4,597 
Total sublease receipts $ 7,194 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of September 30, 2025 are as follows:
(in thousands) Operating Finance
Remainder of 2025 $ 630  $ 90 
2026 2,481  361 
2027 2,532  361 
2028 2,584  303 
2029 2,637  85 
Thereafter 18,310  — 
Total undiscounted minimum future lease payments 29,174  1,200 
Imputed interest (9,576) (110)
Present value of lease liabilities $ 19,598  $ 1,090 
Lease Term and Discount Rate
Weighted-average remaining lease term September 30, 2025 December 31, 2024
Operating leases 10.83 years 11.59 years
Finance leases 3.39 years 4.13 years
Weighted-average discount rate
Operating leases 7.64  % 7.15  %
Finance leases 5.93  % 5.75  %