ASCENT INDUSTRIES CO.
For the period ended Mar 31, 2025. Filed May 12, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 12, 2025
ACNT$13.74+1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0000095953-24-000070
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0000095953-25-000033
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 87 previous paragraphs and 74 current paragraphs.
42 unchanged; 22 reworded; 10 added; 22 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Divestiture of Bristol Metals, LLC..
Current report
We continue to monitor macroeconomic trends and uncertainties such as key material inflation, the effects of recently implemented tariffs, and the potential imposition of modified or additional tariffs, which may have adverse effects on net sales and profitability. As a result of the recent tariffs announced by the U.S. presidential administration and potential tariff modifications or the imposition of tariffs or export controls by other countries, we have worked with our suppliers to mitigate supply chain challenges, cost volatility, and consumer and economic uncertainty due to rapid changes in global trade policies. Much of our raw material used in production is domestically sourced and while we do not expect these factors to result in a material negative effect on our net sales or profitability for the remainder of fiscal year 2025, we are continuing to evaluate these factors and their potential effects as well as our ability to potentially offset all or a portion of cost increases through pricing actions and additional cost savings efforts. Economic pressures on customers and consumers, including the challenges of high inflation and the effects of increased tariffs, may negatively affect our net sales and profitability in the future.
Current report
For the first quarter of 2025, consolidated gross profit increased 105.5% to $4.8 million, or 19.3% of sales, compared to $2.3 million, or 8.3% of sales in the first quarter of 2024. The increase was primarily attributable to continued sourcing improvements resulting in lower raw material costs as well as reductions in other production related costs.
Current report
Gross profit for the first quarter of 2025 increased to $3.7 million, or 21.0% of sales, compared to $1.6 million, or 7.6% of sales in the first quarter of 2024. The increase was primarily attributable to higher selling prices and the reductions in production related costs.
Current report
SG&A expense for the first quarter of 2025 decreasedto $2.9 million, or 16.3% of sales, compared to $3.0 million, or 14.7% of sales in the first quarter of 2024. The slight decrease in dollars was driven by decreases in salaries, wages and benefits, incentive bonus, professional fees and bad debt expense, offset by increases in corporate expense allocation.
Current report
Net sales in the first quarter of 2025 totaled $6.9 million, adecreaseof $0.8 million, or 9.9%, from the first quarter of 2024. The decrease was primarily driven by a 5.9% decrease in pounds shipped and a 3.9% decrease in average selling prices.
Current report
For the first quarter of 2025, gross profit increased 81.9% to $1.7 million, or 24.8% of sales, compared to a gross profit of $0.9 million, or 12.3% of sales in the first quarter of 2024. The increase was primarily attributable to continued sourcing improvements resulting in lower raw material costs as well as reductions in shipping and other production related costs.
Current report
SG&A expense for the first quarter of 2025 decreased to $0.7 million, or 10.2% of sales, compared to $1.0 million, or 13.0% of sales, in the first quarter of 2024. The changes in SG&A were primarily driven by decreases in salaries, wages and benefits, bad debt expense, amortization expense and corporate allocation expense.
Current report
Interest expense was $0.1 million for the first quarter of 2025 and 2024 as the Company had no debt outstanding in either period.
Current report
Credit Facilities
Removed paragraphs (22)
Previous report
Munhall Closure
Previous report
During the second quarter of 2023, the Board of Directors of the Company made the decision to permanently cease operations at Munhall effective on or around August 31, 2023. This strategic decision is part of the Company’s ongoing efforts to consolidate manufacturing to drive an increased focus on its core operations and to improve profitability while driving operational efficiencies. Munhall results are included within discontinued operations in all periods presented.
Previous report
Divestiture of Specialty Pipe & Tube, Inc.
Previous report
Macroeconomic and inflationary pressures have negatively impacted our revenue, operating margins and net income in 2023 and 2024 to date, including increased pricing pressures within both segments of our business. During the quarter, we continued to see demand fluctuations in our end user markets resulting in decreases in volume year over year and sequentially from the second quarter, however, we continue to focus on stabilization initiatives centered around pricing and product mix optimization, strategic sourcing, labor and overhead improvements and working capital which has allowed us to achieve three consecutive quarters of positive margin expansion and setting the foundation for future growth. The ongoing factors driving volatility in global markets that could impact our business' earnings and cash flows include, but are not limited to, the misalignment of supply and demand for labor, energy, raw materials and other inputs, the inflation of (or unavailability of) raw material inputs and transportation and logistics services, currency fluctuations, interest rates and extreme weather, the purchasing of commodities and relative commodity prices. The Company continues efforts to offset these inflationary pressures and continues to implement initiatives to improve working capital and evaluate other opportunities to maintain and improve financial performance in the short and long term, however, if these inflationary and demand pressures continue, our revenue, gross and operating margins and net income (loss) will continue to be impacted for the remainder of 2024.
Previous report
Consolidated net sales for the third quarter of 2024 were $42.9 million, a decrease of $3.8 millions, or 8.2%, compared to net sales for the third quarter of 2023. The decrease in net sales was primarily driven by a 7.3% decrease in average selling prices and a 2.0% decrease in pounds shipped.
Previous report
For the third quarter of 2024, consolidated gross profit increased 116.5% to $6.5 million, or 15.1% of sales, compared to a gross profit of $3.0 million, or 6.4% of sales in the third quarter of 2023. For the first nine months of 2024, consolidated gross profit increased 304.2% to$14.8 million, or 10.8% of sales, compared to$3.7 million, or 2.4% of sales in the first nine months of 2023. The increases in gross profit for the third quarter and first nine months of 2024 were primarily attributable to improved strategic sourcing initiatives and product line management resulting in lower raw material costs as well as labor and overhead improvements.
Previous report
Consolidated selling, general, and administrative expense (SG&A) for the first nine months of 2024 decreased $0.6 million to $19.9 million, or 14.5% of sales, compared to $20.4 million, or 13.4% of sales in the first nine months of 2023. The decrease in SG&A expense for the first nine months of 2024 was primarily driven by decreases in salaries, wages and benefits and credit losses partially offset by increases in incentive bonus expense and professional fees.
Previous report
Net sales in the third quarter of 2024 totaled $20.9 million, an increase of $0.8 million, or 4.1%, from the third quarter of 2023. The increase was driven by a 6.1% increase in average selling prices partially offset by a 2.5% decrease in pounds shipped.
Previous report
Gross profit for the third quarter of 2024 increased to $3.1 million, or 15.0% of sales, compared to $1.9 million, or 9.3% of sales in the third quarter of 2023. Gross profit for the first nine months of 2024 increased to $7.6 million, or 12.1% of sales, compared to $5.7 million, or 8.8% of sales in the first nine months of 2023. The increases were primarily attributable strategic sourcing initiatives and product line management resulting in lower raw material costs as well as labor and overhead improvements.
Previous report
SG&A expense for the third quarter of 2024 increasedto $2.7 million, or 13.2% of sales, compared to $2.0 million, or 9.8% of sales in the third quarter of 2023. The increase was primarily driven by increases in corporate expense allocation and incentive bonus expense partially offset by decreases in professional fees and credit losses.
Previous report
SG&A expense for the first nine months of 2024 increasedto $8.2 million, or 13.1% of sales, compared to $5.3 million, or 8.1% of sales in the first nine months of 2023. The increase was primarily driven by increases in corporate expense allocation, incentive bonus expense and professional fees partially offset by decreases in credit losses.
Previous report
Operating income increased to $0.4 million for the third quarter of 2024 compared to operating loss of $11.5 million for the third quarter of 2023. The current year increase in operating income was primarily driven by the aforementioned increases in gross profit and reduction in prior year goodwill impairment partially offset by increases in SG&A expenses.
Previous report
Operating loss decreased to $0.6 million for the first nine months of 2024 compared to operating loss of $10.9 million for the first nine months of 2023. The current year decrease in operating loss was primarily driven by the aforementioned increases in gross profit and reduction in prior year goodwill impairment partially offset by increases in SG&A expenses.
Previous report
Net sales in the third quarter of 2024 totaled $22.0 million, adecreaseof $4.7 million, or 17.5%, from the third quarter of 2023. The decrease was primarily driven by a 17.2% decrease in average selling prices and a 1.0% decrease in pounds shipped.
Previous report
Net sales in the first nine months of 2024 totaled $74.6 million, a decrease of $12.2 million, or 14.1%, from the first nine months of 2023. The decrease was primarily driven by a 18.5% decrease in average selling prices partially offset by a 4.2% increase in pounds shipped.
Previous report
For the third quarter of 2024, gross profit increased 177.6% to $3.5 million, or 15.7% of sales, compared to a gross profit of $1.2 million, or 4.7% of sales in the third quarter of 2023. For the first nine months of 2024, gross profit increased 592.1% to $7.6 million, or 10.2% of sales, compared to a gross loss of $1.6 million, or (1.8)% of sales in the first nine months of 2023. The increase for the third quarter and first nine months of 2024 was primarily attributable to strategic sourcing measures and product line management resulting in lower raw material costs as well as labor and overhead improvements.
Previous report
SG&A expense for the third quarter of 2024 decreased to $1.8 million, or 8.2% of sales, compared to $1.9 million, or 7.0% of sales, in the third quarter of 2023. SG&A expense for the first nine months of 2024 increased to $6.6 million, or 8.8% of sales, compared to $5.7 million, or 6.5% of sales, in the first nine months of 2023. The change in the third quarter and year to date SG&A was primarily driven by increases in corporate expense allocation partially offset by decreases in salaries, wages and benefits, credit losses and professional fees.
Previous report
Unallocated corporate and other expenses for the first nine months of 2024 decreased $4.6 million, or 45.8%, to $5.4 million, or 4.0% of sales, compared to $10.0 million, or 6.6% of sales, in the prior year. The first nine months of 2024 decrease was primarily driven by increases in corporate allocation expense as well as decreases in salaries, wages and benefits and stock compensation expense, partially offset by increases in incentive bonus expense, taxes and licenses and insurance expense.
Previous report
Interest expense for the third quarter of 2024 decreased to $0.1 million, from $1.1 million for the third quarter of 2023. Interest expense for the first nine months of 2024 decreased to $0.3 million, from $3.2 million for the first nine months of 2023. The decrease is primarily related to lower outstanding debt in the current year compared to the prior year.
Previous report
Long-term Debt
Previous report
Leverage Measure:
Previous report
•Debt to capital = total debt divided by total capital. The debt to capital ratio will be determined by the Company using generally accepted accounting principles, consistently applied.
Reworded paragraphs (22)
Previous wording
This discussion and analysis summarizes the significant factors affecting our consolidated operating results, liquidity, and capital resources during the three and nine months ended September 30, 2024 and 2023, respectively. We intend for this discussion to provide the reader with information that will assist in understanding our financial statements, the changes in certain key items in those financial statements from year to year, and the primary factors that accounted for those changes, as well as how certain accounting principles affect our financial statements. This discussion and analysis should be read in conjunction with the consolidated financial statements and notes to the consolidated financial statements that are included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the Annual Report), as well as the condensed consolidated financial statements (unaudited) and notes to the condensed consolidated financial statements (unaudited) contained in this report. Unless otherwise specified, all comparisons made are to the corresponding period of 2023. This discussion and analysis is presented in five sections:
Current wording
This discussion and analysis summarizes the significant factors affecting our consolidated operating results, liquidity, and capital resources during the three months ended March 31, 2025 and 2024, respectively. We intend for this discussion to provide the reader with information that will assist in understanding our financial statements, the changes in certain key items in those financial statements from year to year, and the primary factors that accounted for those changes, as well as how certain accounting principles affect our financial statements. This discussion and analysis should be read in conjunction with the consolidated financial statements and notes to the consolidated financial statements that are included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the Annual Report), as well as the condensed consolidated financial statements (unaudited) and notes to the condensed consolidated financial statements (unaudited) contained in this report. Unless otherwise specified, all comparisons made are to the corresponding period of 2024. This discussion and analysis is presented in five sections:
Previous wording
The Company's business is divided into two reportable operating segments, Specialty Chemicals and Tubular Products. The Specialty Chemicals segment produces specialty 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 Tubular Products segment serves markets through pipe and tube production 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.
Current wording
The Company's business is divided into two reportable operating segments, Specialty Chemicals and Tubular Products. The Specialty Chemicals segment produces specialty 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 Tubular Products segment serves markets through tube production and customers in the appliance, architectural, automotive and commercial transportation, brewery, furniture, food processing, HVAC, marine, medical, oil and gas and other industries.
Previous wording
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 consideration for the transaction was approximately $55 million of cash proceeds subject to certain closing adjustments. The transaction closed on December 22, 2023. As result of the sale, SPT results of operations are classified under discontinued operations for all periods presented. Prior to the divestiture, SPT was reported under the Company's Tubular Products segment. The discussion and analysis of our results of operations refers to continuing operations unless noted.
Current wording
On March 12, 2025, Ascent and its wholly-owned subsidiaries Synalloy Metals, Inc. ("Synalloy Metals") and BRISMET, entered into an Asset Purchase Agreement (the “Purchase Agreement”) pursuant to which they sold substantially all of the assets related to BRISMET to Bristol Pipe and Tube, Inc., a Delaware corporation and wholly-owned subsidiary of Ta Chen International, Inc. On April 4, 2025, the Company and Purchaser completed the transaction contemplated by the Purchase Agreement. The consideration for the transaction was approximately $45 million of cash proceeds subject to certain closing adjustments. Prior to the divestiture, Bristol Metals was reported under the Company's Tubular Products segment. The discussion and analysis of our results of operations refers to continuing operations unless noted.
Previous wording
Consolidated net sales for the first nine months of 2024 were $137.2 million, a decrease of $14.8 million, or 9.7%, compared to net sales for the first nine month of 2023. The decrease in net sales was primarily driven by a 14.2% decrease in average selling prices partially offset by a 3.0% increase in pounds shipped.
Current wording
Consolidated net sales for the first quarter of 2025 were $24.7 million, a decrease of$3.2 million, or 11.5%, compared to net sales for the first quarter of 2024. The decrease in net sales was primarily driven by a 22.8% decrease in pounds shipped partially offset by a 13.5% increase in average selling prices.
Previous wording
Consolidated selling, general, and administrative expense (SG&A) for the third quarter of 2024 decreased $0.7 million to $6.0 million, or 14.0% of sales, compared to $6.7 million, or 14.3% of sales in the third quarter of 2023. The decrease in SG&A expense for the third quarter of 2024 was primarily driven by decreases in salaries, wages and benefits and credit losses partially offset by increases in incentive bonus expense.
Current wording
Consolidated selling, general, and administrative expense (SG&A) for the first quarter of 2025 decreased $1.1 million to $5.6 million, or 22.5% of sales, compared to $6.7 million, or 23.9% of sales in the first quarter of 2024. The decrease in SG&A expense for the first quarter of 2025 was primarily driven by decreases in professional fees and bad debt expense, partially offset by increases in salaries, wages and benefits.
Previous wording
Consolidated operating income in the third quarter of 2024 totaled $0.5 million compared to operating loss of $15.1 million in the third quarter of 2023. Consolidated operating loss in the first nine months of 2024 totaled $5.0 million compared to operating loss of $28.4 million in the first nine months of 2023. The operating income in the third quarter and the operating loss decrease in first nine months of 2024 was primarily driven by the aforementioned increase in gross profit as well as goodwill impairment within the Specialty Chemicals segment in 2023.
Current wording
Consolidated operating loss in the first quarter of 2025 totaled $1.0 million compared to operating loss of $4.3 million in the first quarter of 2024. The operating loss decrease in the first quarter of 2025 was primarily driven by the aforementioned increase in gross profit and decreases in SG&A expense.
Previous wording
Net sales in the first nine months of 2024 totaled $62.6 million, a decrease of $2.5 million, or 3.9%, from the first nine months of 2023. The decrease was driven by a 9.3% decrease in average selling price offset by a 2.7% increase in pounds shipped.
Current wording
Net sales in the first quarter of 2025 totaled $17.8 million, representing a $2.5 million, or 12.1%, decrease from the first quarter of 2024. The decrease was driven by a 24.8% decrease in pounds shipped partially offset by a 15.0% increase in average selling price.
Previous wording
Operating income increased to $1.7 million for the third quarter of 2024 compared to an operating loss of $0.6 million for the third quarter of 2023. The current year increase in operating income was primarily driven by the aforementioned increase in gross profit.
Current wording
Operating income increased to $0.8 million for the first quarter of 2025 compared to operating loss of $1.4 million for the first quarter of 2024. The current year increase in operating income was primarily driven by the aforementioned increase in gross profit and decreases in SG&A expense.
Previous wording
Operating income increased to $1.0 million for the first nine months of 2024 compared to an operating loss of $7.2 million for the first nine months of 2023. The current year decrease in operating loss was primarily driven by the aforementioned increase in gross profit partially offset by increases in SG&A expense.
Current wording
Operating income increased to $1.0 million for the first quarter of 2025 compared to an operating loss of $0.1 million for the first quarter of 2024. The current year increase in operating income was primarily driven by aforementioned increase in gross profit and decreases in SG&A expense.
Previous wording
Unallocated corporate and other expenses for the third quarter of 2024 decreased $1.4 million, or 46.2%, to $1.6 million, or 3.7% of sales, compared to $3.0 million, or 6.4% of sales, in the prior year. The third quarter of 2024 decrease was primarily driven by increases in corporate allocation expenses partially offset by increases in salaries, wages and benefits, professional fees, taxes and licenses and insurance expense.
Current wording
Unallocated corporate and other expenses for the first quarter of 2025 decreased $0.2 million, or 7.1%, to $2.6 million, or 10.7% of sales, compared to $2.9 million, or 10.2% of sales, in the prior year. The first quarter of 2025 decrease in dollars was primarily driven by increases in corporate allocation expense and decreases in professional fees partially offset by increases in salaries, wages and benefits and incentive bonus.
Previous wording
The effective tax rate for continuing operations was 1,612.2% and 124.4% for the three and nine months ended September 30, 2024. The three and nine months ended September 30, 2024 effective tax rate was higher than the U.S. statutory rate of 21.0% primarily due to discrete tax charges associated with the recording of a valuation allowance on cumulative U.S. federal and state deferred tax assets. During the period, the Company determined it was more likely than not that the existing cumulative deferred tax assets would be unrealizable and recorded a discrete tax charge of $6.2 million.
Current wording
The effective tax rate for continuing operations was 0.04% for the three months ended March 31, 2025. The March 31, 2025 effective tax rate was lower than the U.S. statutory rate of 21.0% primarily due to the valuation allowance and federal and U.S. state deferred tax assets.
Previous wording
Funds generated by operating activities supplemented by our available cash and cash equivalents and our credit facilities are our most significant sources of liquidity. As of September 30, 2024, we held $8.5 million of cash and cash equivalents, as well as $57.5 million of remaining available capacity on our revolving line of credit. We believe our sources of liquidity will be sufficient to fund operations and anticipated capital expenditures as well as repay our debt obligations as they become due over the next 12 months and beyond.
Current wording
Funds generated by operating activities supplemented by our available cash and cash equivalents and our credit facilities are our most significant sources of liquidity. As of March 31, 2025, we held $14.3 million of cash and cash equivalents, as well as $53.3 million of remaining available capacity on our revolving line of credit. We believe our sources of liquidity will be sufficient to fund operations and anticipated capital expenditures as well as repay our debt obligations as they become due over the next 12 months and beyond.
Previous wording
The increase in cash provided by operating activities for the nine months ended September 30, 2024, compared to cash provided by operating activities in the nine months ended September 30, 2023, was primarily driven changes in working capital partially offset by decreases in net losses year over year. Changes in working capital can vary significantly depending on factors such as the timing of inventory production and purchases, customer payments of accounts receivable and payments to vendors in the regular course of business. Inventory increased operating cash flows for the first nine months of 2024 by $8.0 million compared to an increase of $5.9 million for the first nine months of 2023, while accounts payable decreased operating cash flows by $4.2 million for the first nine months of 2024, compared to an $8.9 million increase in the first nine months of
Current wording
The increase in cash used in operating activities for the three months ended March 31, 2025, compared to cash provided by operating activities in the three months ended March 31, 2024, was primarily driven by changes in working capital partially offset by decreases in net loss year over year. Changes in working capital can vary significantly depending on factors such as the timing of inventory production and purchases, customer payments of accounts receivable and payments to vendors in the regular course of business. Inventory decreased operating cash flows for the first three months of 2025 by $1.2 million compared to an increase of $3.8 million for the first three months of 2024, while accounts payable increased operating cash flows by $1.5 million for the first three months of 2025, compared to $1.2 million in the first three months of 2024. The changes in inventory and accounts payable is primarily driven by higher inventory purchases to match inventory levels with sales, higher inventory turns year-over-year and decreases in days payables outstanding. Accounts receivable decreased operating cash flows by $2.4 million in the first three months of 2025 compared to a $2.0 million decrease in the first three months of 2024. The decrease in cash generated by accounts receivable is primarily driven by lower sales partially offset by an slight decrease in days sales outstanding compared to the first three months of 2024.
Previous wording
Net cash used in investing activities primarily consists of transactions related to capital expenditures. The decrease in cash used in investing activities for the nine months ended September 30, 2024 compared to the cash used in investing activities for the nine months ended September 30, 2023 was driven by decreases in capital expenditures in the current year compared to the prior year.
Current wording
Net cash used in investing activities primarily consists of transactions related to capital expenditures. The increase in cash used in investing activities for the three months ended March 31, 2025 compared to the cash used in investing activities for the three months ended March 31, 2024 was primarily due to increases in capital expenditures in the current year compared to the prior year.
Previous wording
Net cash used in financing activities primarily consists of transactions related to our long-term debt. The decrease in cash used in financing activities for the nine months ended September 30, 2024 compared to cash used in financing activities for the nine months ended September 30, 2023 was primarily driven by decreased total borrowings and repayments under the Company's credit facility compared to the prior year.
Current wording
Net cash used in financing activities primarily consists of transactions related to our credit facilities and share repurchases. The increase in cash used in financing activities for the three months ended March 31, 2025 compared to cash used in financing activities for the three months ended March 31, 2024 was primarily due to increased repurchases of common stock. The Company had no debt outstanding as of March 31, 2025 and December 31, 2024.
Previous wording
The Company has a note payable in the amount of $0.9 million with an annual interest rate of 3.70% maturing April 1, 2025, associated with the financing of the Company's insurance premium in 2024. As of September 30, 2024, the outstanding balance was $0.6 million.
Current wording
The Company has a note payable in the amount of $0.9 million with an annual interest rate of 3.70% maturing April 1, 2025, associated with the financing of the Company's insurance premium in 2024. As of March 31, 2025, the outstanding balance was $0.1 million.
Previous wording
During the fourth quarter of 2023, the Company entered into a Limited Consent, Second Amendment to Credit Agreement and Omnibus Amendment to Loan Documents with BMO Bank N.A. and the other lenders under the Company’s credit facility (the “Credit Facility Amendment”). The Credit Facility Amendment contains a consent for the SPT divestiture, released the lien on the assets of SPT and removed SPT as a loan party. The Credit Facility Amendment also reduced the maximum revolving loan commitment under the credit facility from $105 million to $80 million, and increased the interest rate for the credit facility from SOFR plus an interest rate margin of between 1.60% and 1.70% to SOFR plus an interest rate margin of between 1.85% and 2.10%, depending on average availability under the credit facility and the Company’s consolidated fixed charge coverage ratio. The Company had no debt outstanding under its credit facilities as of September 30, 2024 and December 31, 2023.
Current wording
On November 6, 2024, Ascent entered into a Limited Consent, Third Amendment to Credit Agreement to Loan Documents with BMO Bank N.A. under Ascent’s credit facility (the “Credit Facility Amendment”). The Credit Facility Amendment reduced the maximum revolving loan commitment under the credit facility from $80 million to $60 million and extended the term of the credit facility through December 31, 2027. The Credit Facility Amendment also increased the interest rate for the credit facility from SOFR plus an interest rate margin of between 1.85% and 2.10% to SOFR plus an interest rate margin of between 1.85% and 2.35%, depending on average availability under the credit facility and Ascent’s consolidated fixed charge coverage ratio. The Company had no debt outstanding under its credit facilities as of March 31, 2025 and December 31, 2024.
Previous wording
The Credit Agreement contains covenants requiring the maintenance of a minimum consolidated fixed charge coverage ratio if excess availability falls below the greater of (i) $7.5 million and (ii) 10% of the revolving credit facility (currently $8.0 million). As of September 30, 2024, the Company was in compliance with all financial debt covenants. See Note 8 in the notes to the unaudited condensed consolidated financial statements for additional information on the Company's line of credit.
Current wording
The Credit Facility Amendment contains covenants requiring the maintenance of a minimum consolidated fixed charge coverage ratio if excess availability falls below the greater of (i) $6.0 million and (ii) 15% of the revolving credit facility. The borrowing capacity under the amended credit facility totals $60.0 million consisting of a $60.0 million revolving line of credit which includes a $7.6 million machinery and equipment sub-limit. As of March 31, 2025, the Company was in compliance with all financial debt covenants. See Note 8 in the notes to the unaudited condensed consolidated financial statements for additional information on the Company's line of credit and Note 15 for the debt amendment that occurred subsequent to the first quarter.
Previous wording
We have a share repurchase program, authorized by the Company's Board of Directors, that is executed through purchases made from time to time at prevailing market prices, through open market or privately negotiated transactions, depending on market conditions. Shares repurchased are returned to status of authorized, but unissued shares of common stock or held in treasury. As of September 30, 2024, the Company has 462,685 shares of its share repurchase authorization remaining.
Current wording
We have a share repurchase program, authorized by the Company's Board of Directors, that is executed through purchases made from time to time at prevailing market prices, through open market or privately negotiated transactions, depending on market conditions. Shares repurchased are returned to status of authorized, but unissued shares of common stock or held in treasury. As of March 31, 2025, the Company has 983,923 shares of its share repurchase authorization remaining.
Previous wording
Shares repurchased for the three and nine months ended September 30, 2024 and 2023 were as follows:
Current wording
Shares repurchased for the three months ended March 31, 2025 and 2024 were as follows:
Previous wording
•Operating and Finance Leases - The Company enters into various lease agreements for the real estate and manufacturing equipment used in the normal course of business. Operating and finance lease obligations were $33.3 million, with $1.7 million payable within 12 months. See Note 9 for further detail of our lease obligations and the timing of expected future payments.
Current wording
•Operating and Finance Leases - The Company enters into various lease agreements for the real estate and manufacturing equipment used in the normal course of business. Operating and finance lease obligations were $32.5 million, with $1.9 million payable within 12 months. See Note 9 for further detail of our lease obligations and the timing of expected future payments.
Previous wording
The Company has no off-balance sheet arrangements that are reasonably likely to have a material current or future effect on the Company's financial position, revenues, results of operations, liquidity, or capital expenditures. We expect capital spending to be as much as $0.8 million for the remainder of fiscal 2024.
Current wording
The Company has no off-balance sheet arrangements that are reasonably likely to have a material current or future effect on the Company's financial position, revenues, results of operations, liquidity, or capital expenditures. We expect capital spending to be as much as $2.0 million for the remainder of fiscal 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The changes in inventory and accounts payable is primarily driven by lower inventory purchases to match inventory levels with sales, partially offset by higher inventory turns year-over-year and decreases in days payables outstanding on a nine-month average basis. Accounts receivable decreased operating cash flows by $1.3 million in the first nine months of 2024 compared to a $3.8 million increase in the first nine months of 2023. The decrease in cash generated by accounts receivable is primarily driven by a decrease in sales partially offset by a decrease in days sales outstanding compared to the first nine months of 2023.