Successful Divestitures and Restructuring
Ascent Industries successfully divested Bristol Metals and American Stainless Tubing, becoming a pure-play specialty chemical company. This restructuring is aimed at generating durable margins and exceptional customer outcomes.
Share Repurchase
The company repurchased and retired nearly 6% of its outstanding shares, demonstrating confidence in its long-term value.
Sequential Revenue and Profit Growth
Revenue increased by $817,000 sequentially to $18.7 million, with gross profit rising by $1.8 million from Q1. Gross margin expanded by 888 basis points sequentially.
Strategic Sourcing and Yield Improvements
Strategic sourcing reduced raw material costs, and process modifications led to a 5% yield improvement, unlocking $250,000 in annualized gross profit.
Expansion of New Revenue
Secured $3.1 million of annualized new revenue at a 29% gross margin, with 88% of these wins being expansions with existing accounts.
Strong Balance Sheet
The company ended Q2 with $60.5 million in cash, no debt, and $13.4 million of availability under its revolver.