Ascent Industries Q3 net sales rise 37.8% year over year

Overview

• Specialty chemicals platform's Q3 net sales rose 37.8% yr/yr to $27.1 mln

• Adjusted EBITDA for Q3 more than doubled from prior year

• Gross margin fell due to higher material, labor and shipping costs

Outlook

• Company expects future margin improvement to come from productivity and operating efficiencies

• Company sees continued growth opportunities from Midwest Graphic Sales acquisition

• Company prioritizes liquidity, working capital and investment while remaining open to M&A and buybacks

Result Drivers

• HIGHER VOLUME AND PRICING - Co said sales growth was driven by increased volumes and higher average selling prices

• COST RECOVERY AND PRODUCTION - Gross profit increase was attributed to higher sales and cost recovery from increased production, partly offset by higher material, labor and shipping costs

• MIDWEST ACQUISITION - Midwest Graphic Sales contributed to Q3 sales and was described as accretive to earnings excluding corporate allocations

Company press release:

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)