Ascent Industries Co (ACNT) 2024 Q4 法說會逐字稿

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Ascent's financial results for the fourth quarter and full year ended December 31, 2024.

大家下午好，感謝您參加今天的電話會議，討論 Ascent 截至 2024 年 12 月 31 日第四季度和全年的財務業績。

Joining us today are Ascent's Executive Chairman of the Board, Ben Rosenzweig; CEO, Bryan Kitchen; CFO, Ryan Kavalauskas; and the company's outside Investor Relations Advisor, Cody Cree. Following the remarks, we'll open the call for your questions.

今天與我們一起參加的有 Ascent 董事會執行主席 Ben Rosenzweig；執行長 Bryan Kitchen；財務長 Ryan Kavalauskas；以及該公司外部投資者關係顧問 Cody Cree。發言結束後，我們將開始回答大家的提問。

Before we go further, I would like to turn the call over to Cody Cree as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important caution regarding forward-looking statements. Cody, please go ahead.

在我們進一步討論之前，我想將電話轉給 Cody Cree，他將根據 1995 年《私人證券訴訟改革法案》的含義閱讀公司的安全港聲明，該聲明對前瞻性陳述提供了重要的警告。科迪，請繼續。

Thanks, Gigi. Before we continue, I'd like to remind all participants that the discussion today may contain certain forward-looking statements pursuant to the Safe Harbor provisions of the federal securities laws. These statements are based on information currently available to us and are subject to various risks and uncertainties that could cause actual results to differ materially.

謝謝，吉吉。在我們繼續之前，我想提醒所有參與者，今天的討論可能包含根據聯邦證券法的安全港條款的某些前瞻性陳述。這些聲明是基於我們目前掌握的信息，並受各種風險和不確定因素的影響，可能導致實際結果大不相同。

Ascent advises all those listening to this call to review the latest 10-Q and 10-K posted on its website for a summary of these risks and uncertainties. Assent does not undertake the responsibility to update any forward-looking statements.

Ascent 建議所有收聽本次電話會議的人查看其網站上發布的最新 10-Q 和 10-K，以了解這些風險和不確定性的摘要。Assent 不承擔更新任何前瞻性陳述的責任。

Further, the discussion today may include non-GAAP measures. In accordance with Regulation G, the company has reconciled these amounts back to the closest GAAP-based measurement. The reconciliations can be found in the earnings press release issued earlier today and posted on the Investors section of the company's website at ascentco.com.

此外，今天的討論可能包括非公認會計準則指標。依照規則 G，公司已將這些金額調整至最接近的 GAAP 測量值。您可以在今天稍早發布的收益新聞稿中找到這些對帳表，該新聞稿發佈在公司網站 ascentco.com 的投資者部分。

Please note that this call is available for replay via a webcast link that is also posted on the Investors section of the company's website.

請注意，您可以透過公司網站投資者部分發布的網路直播連結重播此通話。

With that, I'd like to turn the call over to Ascent's executive Chairman of the Board, Ben Rosenzweig. Ben, over to you.

接下來，我想將電話轉給 Ascent 董事會執行主席 Ben Rosenzweig。本，交給你了。

Thank you, Cody, and good afternoon, everyone. As we've wrapped up 2024 and are moving into 2025, I'm very pleased with the current direction of the company. Bryan and Ryan have exceeded the expectations our Board had set for 2024, and we believe the team that they have assembled is capable of executing on the growth plan we're collectively targeting.

謝謝你，科迪，大家下午好。隨著我們結束 2024 年並邁入 2025 年，我對公司目前的發展方向感到非常滿意。布萊恩和瑞安的表現超出了董事會對 2024 年設定的預期，我們相信他們組建的團隊有能力執行我們共同設定的成長計畫。

This quarter was another positive step in the right direction as we reported our fourth straight quarter of successive improvements in our financial and operational results. The stabilization and optimization efforts we implemented throughout the year continue to take hold and drive expansion to our margins and the bottom line.

本季我們又朝著正確的方向邁出了積極的一步，因為我們報告說我們的財務和營運業績連續第四個季度持續改善。我們全年實施的穩定和優化措施繼續發揮作用，並推動我們的利潤率和盈利能力擴大。

I'll let Bryan dive into each segment's detail shortly, but we plan to continue maximizing the value of our assets across the Tubular Products segment while investing in and delivering profitable growth in the Specialty Chemicals segment. We feel confident that we have a strong foundation in place, so we're laser focused on driving growth while maintaining operational excellence.

我將讓布萊恩很快深入了解每個部門的細節，但我們計劃繼續最大化管材產品部門的資產價值，同時投資於特種化學品部門並實現盈利成長。我們相信我們已經擁有堅實的基礎，因此我們專注於推動成長，同時保持卓越的營運。

Looking at our capital allocation priorities, they continue to remain the same from what we discussed throughout much of last year. We have a strong liquidity position with over $16 million in cash on the balance sheet and more than $47 million available on our revolving credit facility.

從我們的資本配置優先事項來看，它們與我們去年大部分時間討論的重點保持不變。我們的流動性狀況良好，資產負債表上有超過 1,600 萬美元的現金，循環信貸額度有超過 4,700 萬美元。

We also continue to repurchase shares in the open market, and we'll continue to scrutinize our buyback efforts to evaluate moving forward in larger quantities as the share price remains below our estimates of intrinsic value.

我們也將繼續在公開市場回購股票，我們將繼續審查我們的回購努力，以評估在股價仍低於我們對內在價值的估計的情況下進一步擴大回購數量。

As part of our commitment to this capital allocation priority, we recently announced an expanded and extended authorization for our stock repurchase program, allowing us to acquire up to an additional 1 million shares or approximately 10% of the common stock outstanding over the next 24 months.

作為我們對這項資本配置優先事項的承諾的一部分，我們最近宣布擴大和延長我們的股票回購計畫的授權，允許我們在未來 24 個月內額外收購最多 100 萬股或約 10% 的已發行普通股。

As Bryan and Ryan have fully gotten their arms around our businesses, while restoring credibility internally and externally, it's no longer necessary for me to deliver prepared remarks on our quarterly conference calls going forward. I'll still make myself available to stakeholders as needed and don't plan on going anywhere anytime soon.

由於 Bryan 和 Ryan 已經完全掌握了我們的業務，同時恢復了內部和外部的信譽，我不再需要在今後的季度電話會議上發表準備好的發言。我仍然會根據需要為利害關係人提供服務，並且近期不打算去任何地方。

Overall, I'm proud of what we accomplished in 2024 as we turned around our businesses and laid the foundation for future growth. There still is a tremendous amount of work to be done in order to reach our value creation goals, and we're on a mission to consistently deliver predictable and profitable growth. We appreciate the continued support from all of our stakeholders and look forward to executing our strategic initiatives in 2025.

總的來說，我對我們在 2024 年的成就感到自豪，因為我們扭轉了業務並為未來的成長奠定了基礎。為了實現我們的價值創造目標，我們還有大量的工作要做，我們的使命是持續實現可預測且有利可圖的成長。我們感謝所有利害關係人的持續支持，並期待在 2025 年實施我們的策略計畫。

With that, I'd like to pass the call over to Bryan to provide details on our operations across both segments. I'll be available later on to answer any questions. Bryan, over to you.

說到這裡，我想把電話轉給布萊恩，讓他提供有關我們在兩個部門的運作的詳細資訊。我稍後會回答您的任何問題。布萊恩，交給你了。

Thanks, Ben, and thank you all for joining us this afternoon. During our first earnings call a year ago, I shared that our primary objective for 2024 was to stabilize the enterprise.

謝謝，本，也謝謝大家今天下午加入我們。在一年前的第一次財報電話會議上，我曾表示，我們 2024 年的主要目標是穩定企業。

I'm proud to report that despite persistent market headwinds and the discovery of deep foundational challenges with the existing book of business and core capabilities, not only did we stabilize the business, but we also drove transformational improvements along the way.

我很自豪地報告，儘管市場持續面臨阻力，現有業務和核心能力面臨深層的基礎性挑戰，但我們不僅穩定了業務，而且還推動了轉型改善。

Without question, the refresh of talent and purposeful recapitalization of the SG&A has been and will continue to be pivotal to our accelerated improvements and transformation. So let's talk about where we ended the year.

毫無疑問，人才的更新和銷售、一般及行政費用的有目的的資本重組一直是、並將繼續是我們加速改進和轉型的關鍵。那麼讓我們來談談這一年是如何結束的。

Ascent closed the year with four consecutive quarters of EBITDA improvement, achieving a $19.9 million or 125% year-over-year increase in adjusted EBITDA while liberating a significant amount of trapped cash. Our efforts to standardize, simplify and optimize everything we do across segments and functions resulted in a $20.5 million or 1,349% increase in year-over-year gross profit, a strong result considering our top line compression of $15.3 million or 7.9%.

Ascent 在年末連續四個季度實現 EBITDA 改善，調整後 EBITDA 同比增長 125% 至 1,990 萬美元，同時釋放了大量被困現金。我們努力對各部門和職能部門所做的一切進行標準化、簡化和優化，從而使毛利較上年同期增加 2,050 萬美元（1,349%），考慮到我們的營收壓縮了 1,530 萬美元（7.9%），這是一個強勁的結果。

Throughout this process, we strengthened our balance sheet by generating nearly $15 million in free cash flow throughout the year and remained debt free, positioning us well to invest both organic and inorganic high-growth potential initiatives.

在此過程中，我們全年產生了近 1500 萬美元的自由現金流，從而增強了我們的資產負債表，並且保持了無債務狀態，這使我們能夠很好地投資有機和無機的高成長潛力計劃。

Momentum is building as we have good things happening across both segments, so let's jump in starting with Tubular Products. As discussed in prior calls, we remain fully dedicated to maximizing the value of our existing assets in this segment while driving improved results.

由於我們在兩個領域都取得了良好的進展，因此勢頭正在增強，所以讓我們從管材產品開始。正如在先前的電話會議中所討論的那樣，我們將繼續全力致力於最大限度地提高該領域現有資產的價值，同時提高績效。

Despite a year-over-year sales decline of $12.4 million, we boosted our segment level gross profit by approximately $15 million. This achievement was primarily driven by the sustained benefits of aggressive cost management and product line optimization initiatives previously highlighted in our earnings calls.

儘管銷售額年減了 1,240 萬美元，但我們的分部毛利潤卻增加了約 1,500 萬美元。這項成就主要得益於我們先前在財報電話會議上強調的積極的成本管理和產品線優化措施的持續效益。

Pragmatic optimism is a good descriptor of how we are viewing 2025 in the Tubular segment. Market dynamics are beginning to improve. Domestic investments in energy, energy storage and core infrastructure sectors are beginning to translate into increased demand.

務實的樂觀主義很好地描述了我們如何看待 2025 年的管材領域。市場動態開始改善。國內對能源、能源儲存和核心基礎設施領域的投資開始轉化為需求的成長。

In fact, our order backlog is now stronger than it has been in for years. That said, we have yet to see a material increase in mill lead times, which is generally a strong indicator of overall demand. Again, pragmatic optimism. We will continue to execute aggressive self-help within this segment and across the entire enterprise. Now let's shift our focus to Specialty Chemicals.

事實上，我們現在的訂單積壓量比過去幾年還要多。儘管如此，我們尚未看到工廠交貨時間的大幅增加，而這通常是整體需求的一個強大指標。再次，務實的樂觀。我們將繼續在這一領域乃至整個企業內採取積極的自助行動。現在讓我們將焦點轉向特種化學品。

Even with the challenging demand environment, our team continues to make significant steps forward in this segment. We produced our highest quarterly adjusted EBITDA figure for this segment since the second quarter of 2022 despite moderate top line compression.

即使面臨嚴峻的需求環境，我們的團隊仍在這一領域不斷取得重大進展。儘管營收受到一定程度的壓縮，但我們仍為該部門創造了自 2022 年第二季以來最高的季度調整後 EBITDA 數字。

This was primarily driven by the 14% increase in gross margin, which reflects our commitment to upgrading the quality of our business, extracting the appropriate value for our goods and services, and aggressively managing costs. With this segment now fully operationally stabilized, we are focused on aggressively pursuing organic growth within our existing product portfolio and underutilized capabilities.

這主要得益於毛利率成長 14%，體現了我們致力於提升業務品質、為我們的商品和服務提取適當價值以及積極管理成本的承諾。現在該部門的運作已完全穩定，我們將專注於在現有產品組合和未充分利用的能力範圍內積極追求有機成長。

When looking at the market only through the lens of the products that we actively produce and sell today, such as surfactants, defoamers, flame retardants, and other intermediates, our total addressable market is over $9 billion.

如果僅從我們目前積極生產和銷售的產品（如界面活性劑、消泡劑、阻燃劑和其他中間體）的角度來看市場，我們總目標市場超過 90 億美元。

To be clear, that $9 billion is just related to branded products that we produce today, a small portion of the broader specialty chemicals market. The breadth of our capabilities underpins our agility and approach to chemistry by design. We will be laser focused on the areas where our capabilities, our competencies and our competitive edge position us to succeed in the near term, namely HI&I, personal care and energy.

需要明確的是，這 90 億美元僅與我們今天生產的品牌產品有關，只是更廣泛的特種化學品市場的一小部分。我們的能力廣度支撐了我們的敏捷性和設計化學方法。我們將集中精力於我們的能力、競爭力和競爭優勢使我們能夠在短期內取得成功的領域，即HI&I、個人護理和能源。

Our branded product sales will continue to be a cornerstone of our organic growth strategy as they offer a faster cycle time than custom manufacturing, along with more predictable and ratable demand and improved margins.

我們的品牌產品銷售將繼續成為我們有機成長策略的基石，因為它們比客製化製造具有更快的週期時間，以及更可預測和可評估的需求和更高的利潤率。

In 2024, we recorded double-digit year-over-year increase in branded product sales, driven primarily by our efforts in oil and gas, a testament to our focused strategy and targeted resource allocation.

2024年，我們的品牌產品銷售額年增了兩位數，這主要得益於我們在石油和天然氣領域的努力，證明了我們專注的策略和有針對性的資源配置。

Building on our success in the oil and gas market, we recently launched our branded product portfolio for the HI&I market, which are household, industrial and cleaning ingredients geared towards a total addressable market north of $2.5 billion.

憑藉我們在石油和天然氣市場所取得的成功，我們最近針對 HI&I 市場推出了品牌產品組合，其中包括家用、工業和清潔成分，面向總目標市場超過 25 億美元。

The new portfolio includes bio-based surfactants and specialty additives that address the industry's growing demand for effective and environmentally friendly cleaning technologies. This is a major milestone in our efforts to develop high-performing sustainable solutions.

新產品包括生物基界面活性劑和特殊添加劑，可滿足業界對有效且環保的清潔技術日益增長的需求。這是我們努力開發高效能永續解決方案的一個重要里程碑。

We have the necessary portfolio, the core competencies and the capacity to profitably participate in this expanding market, and we are very optimistic about the growth potential in this evolving space. Overall, we remain very confident in our segment's potential for long-term organic growth, and we'll continue investing in high potential strategic initiatives to capture market share.

我們擁有必要的產品組合、核心競爭力和從這個不斷擴大的市場中獲利的能力，並且我們對這個不斷發展的領域的成長潛力非常樂觀。總體而言，我們對我們的部門的長期有機成長潛力仍然非常有信心，我們將繼續投資於高潛力的策略舉措以佔領市場份額。

From an inorganic growth standpoint, we remain active but selective and disciplined in our approach. We look for good businesses that we can make great. It's not only about size. It's about the outcomes, both strategically and operationally. Our growth with M&A is simple, to align every move with our mission and ensure it has maximum impact for our shareholders.

從無機成長的角度來看，我們仍然積極主動，但在方法上保持選擇性和紀律。我們尋找能夠將其打造為卓越企業的優秀企業。這不僅與尺寸有關。這和策略和營運兩個方面的結果有關。我們透過併購實現的成長很簡單，就是讓每一步都與我們的使命保持一致，並確保它對我們的股東產生最大的影響。

Throughout 2024, Ryan and I spent much of our time putting the right team in place while driving foundational improvements needed for long-term success. Moving forward, more of our time will be purposely allocated to Investor Relations with a laser focus on expanding our investor base, driving increased liquidity and shareholder value.

在整個 2024 年，Ryan 和我花了大量時間組建合適的團隊，同時推動長期成功所需的基礎改進。展望未來，我們將把更多的時間專門分配給投資人關係，並專注於擴大投資人基礎，提高流動性和股東價值。

Expect to hear more and see more from Ascent in 2025, starting with a new IR deck within the next quarter, a deck that we believe will invite new conversations and spark increased interest in our company, our story and our plans to unleash the fullest value potential for our shareholders.

預計在 2025 年我們會從 Ascent 那裡聽到和看到更多消息，從下個季度的新 IR 平台開始，我們相信它會引發新的對話，並激發人們對我們公司、我們的故事和我們的計劃的更大興趣，從而為我們的股東釋放最大的價值潛力。

Finally, I would like to mention that our investors will be able to engage Ryan and I at the Planet MicroCap Conference next month and the Oppenheimer Industrial Growth Conference in May, and we are actively exploring additional opportunities further to further engage and energize the market.

最後，我想說一下，我們的投資者將能夠在下個月的 Planet MicroCap 會議和 5 月份的 Oppenheimer 工業成長會議上與 Ryan 和我進行交流，我們正在積極探索更多參與和激發市場的更多機會。

Before I pass it off to Ryan, I want to thank our shareholders for their patience, their confidence and trust that they have placed in us over the past year. I would also like to thank the entire team at Ascent who have demonstrated incredible grit, hustle and the drive to win.

在將其交給瑞安之前，我想感謝我們的股東在過去一年對我們的耐心、信心和信任。我還要感謝 Ascent 的整個團隊，他們表現出了令人難以置信的勇氣、勤奮和對勝利的渴望。

We have returned to consistently generating positive adjusted EBITDA. We remain debt-free, and we continue to grow our cash balance. With this strong foundation and the right people in place, we are optimistic about the future of Ascent and its ability to create durable shareholder value.

我們已恢復持續產生正調整後 EBITDA。我們仍然沒有債務，並且現金餘額繼續增加。憑藉著堅實的基礎和合適的人才，我們對 Ascent 的未來及其創造持久股東價值的能力充滿信心。

I'll now turn it over to our CFO, Ryan Kavalauskas, to walk us through our fourth quarter and full year financial results in more detail.

現在，我將把時間交給我們的財務長 Ryan Kavalauskas，讓他更詳細地介紹我們第四季和全年的財務表現。

Ryan, the floor is yours.

Ryan，現在請你發言。

Thank you, Bryan, and good afternoon, everyone. Jumping right into our financial results, let's start with the fourth quarter. Net sales from continuing operations were $40.7 million compared to $41.2 million in the fourth quarter of 2023. Looking at the dynamics driving the slight decline, we had lower volume but higher pricing within Specialty Chemicals as we continue the mix shift to our higher-margin branded products.

謝謝你，布萊恩，大家下午好。讓我們直接進入財務業績，從第四季度開始。持續經營淨銷售額為 4,070 萬美元，而 2023 年第四季為 4,120 萬美元。從推動輕微下滑的因素來看，隨著我們繼續向利潤率更高的品牌產品轉變，特種化學品業務的銷量下降但價格上漲。

On the Tubular side, we saw higher volume as we continue to work through older stagnant inventory, which resulted in lower pricing but has positively contributed to cash flow generation as we unlock trapped cash within the segment.

在管材方面，隨著我們繼續處理舊的停滯庫存，我們看到了更高的銷量，這導致了較低的價格，但隨著我們解鎖該部門內被困的現金，對現金流的產生做出了積極的貢獻。

Gross profit from continuing operations increased 448% to $7.3 million or 17.9% of net sales compared to a $2.1 million loss or negative 5.2% of net sales in the fourth quarter of 2023. The increase was primarily driven by continued cost management, improved strategic sourcing and product line optimization.

持續經營毛利潤成長 448% 至 730 萬美元，佔淨銷售額的 17.9%，而 2023 年第四季虧損 210 萬美元，佔淨銷售額的負 5.2%。成長主要得益於持續的成本管理、改進的策略採購和產品線優化。

Net income from continuing operations improved to $0.1 million or $0.01 diluted earnings per share compared to a net loss from continuing operations of $7.5 million or $0.73 diluted loss per share in the fourth quarter of 2023.

持續經營淨收入改善至 0.1 百萬美元或每股攤薄收益 0.01 美元，而 2023 年第四季持續經營淨虧損為 750 萬美元或每股攤薄虧損 0.73 美元。

The year-over-year improvement was primarily attributable to the aforementioned increase in gross profit and a year-over-year decrease in interest expense due to having much lower outstanding debt. Adjusted EBITDA increased notably to $2.6 million compared to negative $5.9 million in the fourth quarter of 2023, with adjusted EBITDA margin increasing significantly to 6.3% compared to negative 14.4% in the prior year period.

年比成長主要歸因於前述毛利的增加，以及由於未償還債務大幅減少導致的利息支出的年減。調整後 EBITDA 大幅增加至 260 萬美元，而 2023 年第四季為負 590 萬美元，調整後 EBITDA 利潤率則大幅增加至 6.3%，而去年同期為負 14.4%。

The improvement was primarily a result of the aforementioned cost and product mix optimization initiatives. Now turning to our full year 2024 results. Net sales from continuing operations were $177.9 million compared to $193.2 million in 2023.

這項改善主要歸功於上述成本和產品組合優化措施。現在來談談我們 2024 年全年業績。持續經營淨銷售額為 1.779 億美元，而 2023 年為 1.932 億美元。

The decrease was primarily attributable to soft demand dynamics and purposeful product line modifications, leading to a decline in volume across both segments, partially offset by increased pricing within the Specialty Chemicals segment throughout the year. Gross profit from continuing operations increased significantly to $22.1 million or 12.4% of net sales compared to $1.5 million or 0.8% of net sales in 2023.

下降的主要原因是需求疲軟和有目的的產品線修改，導致兩個部門的銷量下降，但全年特種化學品部門的價格上漲部分抵消了下降。持續經營毛利潤大幅增加至 2,210 萬美元，佔淨銷售額的 12.4%，而 2023 年則為 150 萬美元，佔淨銷售額的 0.8%。

The increase in gross profit was primarily driven by cost reduction measures for labor and materials, combined with product line optimization, which we implemented throughout 2024. Net loss from continuing operations was $11.2 million or $1.11 diluted loss per share compared to a net loss from continuing operations of $34.2 million or $3.37 diluted loss per share in 2023.

毛利的成長主要得益於我們在 2024 年全年實施的勞動力和材料成本降低措施以及產品線優化。持續經營淨虧損為 1,120 萬美元或每股攤薄虧損 1.11 美元，而 2023 年持續經營淨虧損為 3,420 萬美元或每股攤薄虧損 3.37 美元。

As a reminder, we did have a $6.2 million tax charge related to a valuation allowance against our deferred tax assets in the third quarter of 2024. This was a onetime noncash charge and did not affect our overall operating profit that quarter, but it did negatively impact our reported bottom line for the year. Adjusted EBITDA was $4 million compared to negative $15.9 million in 2023.

提醒一下，我們確實在 2024 年第三季產生了與遞延所得稅資產的估值準備金相關的 620 萬美元稅款。這是一次性非現金費用，並未影響我們當季度的整體營業利潤，但確實對我們當年報告的利潤產生了負面影響。調整後 EBITDA 為 400 萬美元，而 2023 年為負 1590 萬美元。

Adjusted EBITDA as a percentage of net sales was 2.3% compared to negative 8.2% in the prior year. The increase is primarily attributable to continued gains in operational efficiencies and the aforementioned cost and product mix optimization initiatives.

調整後 EBITDA 佔淨銷售額的百分比為 2.3%，而上年度為-8.2%。成長主要歸因於營運效率的持續提高以及前述成本和產品結構優化措施。

Lastly, looking at our liquidity position as of December 31, 2024, we remain debt-free with $16 million of cash on the balance sheet and access to $47.4 million in borrowing availability under our current revolving credit facility.

最後，回顧截至 2024 年 12 月 31 日的流動性狀況，我們仍然沒有債務，資產負債表上有 1,600 萬美元的現金，根據我們目前的循環信貸安排，可以獲得 4,740 萬美元的借款。

We remain confident in our liquidity position to deploy capital and drive both organic and inorganic growth in the near future. During the year, we repurchased a total of 101,263 shares for approximately $1 million through our share repurchase program.

我們對我們的流動性狀況仍然充滿信心，可以在不久的將來部署資本並推動有機和無機成長。本年度，我們透過股票回購計畫共回購了 101,263 股，價值約 100 萬美元。

With that, I'll now turn it back over to the operator for Q&A.

說完這些，我現在將問題交還給接線員進行問答。

(Operator Instructions) [David Siegfried].

（操作員指示）[David Siegfried]。

Hey, guys, congratulations on the nice quarter.

嘿，夥計們，恭喜你們度過了一個美好的季度。

Thank you.

謝謝。

Yeah. So just a couple of questions. Obviously, we all see the strengthening balance sheet, new product development, better margins, gross profit. But where do you see -- with the top line growth, do you really -- do you see that starting maybe as early as Q1 of 2025?

是的。我只想問幾個問題。顯然，我們都看到資產負債表的加強、新產品的開發、更好的利潤率和毛利。但是，您認為營收成長會在哪裡發生呢？

Hey, David, it's Bryan. Appreciate the question. In terms of top line growth, I would say that's really more of a second half opportunity. The markets have not come back yet. We really reset the base in both tubular and chemicals inside of the second half of last year.

嘿，大衛，我是布萊恩。我很感謝你提出這個問題。就營業額成長而言，我認為這實際上更多的是一個下半年的機會。市場尚未恢復。我們去年下半年確實重置了管材和化學品的基礎。

I don't think that we're expecting anything material to change in the first half of 2025. Any uptick that we see isn't going to be because the markets are helping us out. It's because we're grabbing share.

我認為我們不預計 2025 年上半年會發生任何重大變化。我們看到的任何上漲都不會是因為市場在幫助我們。這是因為我們正在搶佔份額。

Got it. But even with that lower revenue base, we still could be putting out similar gross profit or a similar margin profile?

知道了。但即使收入基數較低，我們仍然可以實現類似的毛利或利潤率嗎？

Yeah. I mean we've been incredibly successful in driving aggressive cost reduction, and we've demonstrated our ability to sustain those gains. So that along with the pricing actions and the portfolio actions from a product mix optimization perspective, we're heading in the right direction.

是的。我的意思是我們在推動大幅降低成本方面取得了令人難以置信的成功，並且我們已經證明了我們有能力維持這些收益。因此，從產品組合優化的角度來看，我們正朝著正確的方向前進。

Yeah, for sure. Good. So the cash grew considerably from Q3 to Q4, up $7.5 million. So could you talk a little bit about what contributed to that growth in cash?

是的，當然。好的。因此，現金從第三季到第四季大幅增加了 750 萬美元。那麼，您能否談談是什麼促成了現金的成長？

Sure. Ryan, do you want to take that?

當然。瑞安，你想拿走那個嗎？

Yeah. We continue to optimize our idle and stagnant inventory. That was the largest driver of cash, and we continue to do that in Q4. So that was far and away the largest. Increased efforts on collections, inventory management and payables management also helped kind of shore up our cash conversion cycle, which pulled almost two weeks of cash back into the year.

是的。我們不斷優化閒置和停滯的庫存。這是現金的最大驅動力，我們將在第四季度繼續這樣做。因此，這是迄今為止最大的。增加收款、庫存管理和應付款項管理力度也有助於鞏固我們的現金轉換週期，使我們今年的現金週轉時間縮短了近兩週。

So those two items combined just continue to kind of turn that cycle a little faster and generate a little bit more cash every quarter.

因此，這兩項結合起來只會繼續加快這個循環的速度，並且每季都會產生更多一點的現金。

Okay. Good. A question on the underutilized assets. I noticed in the 10-Q from third quarter that 20,000 feet in Cleveland, Tennessee plant had been leased to a third party. And I know that Palmer has had a sublease in the past, and Munhall, I think we were looking for a sublease there. So is there any updates you can give on any of those properties?

好的。好的。關於未充分利用資產的問題。我注意到，在第三季的 10-Q 報表中，位於田納西州克利夫蘭的 20,000 平方英尺的工廠已租給了第三方。我知道帕爾默過去曾有過轉租，而芒霍爾，我想我們正在那裡尋找轉租。那麼，您能提供關於這些房產的任何最新消息嗎？

Yeah, David. So our third party -- so in Tennessee, specific to our chemicals facility, we had a smaller little warehouse that, I believe, in the second quarter, perhaps it was early in the third quarter, we managed to broker the sale of that warehouse through our leasing provider. So that's done and past us. Yes, we have an active sublease with Palmer. So pivoting to the real opportunity or challenge is the Munhall site.

是的，大衛。因此，我們的第三方 - 在田納西州，具體到我們的化學品工廠，我們有一個較小的倉庫，我相信，在第二季度，也許是在第三季度初，我們設法透過我們的租賃供應商促成了該倉庫的銷售。所以這一切都已經完成了，而且已經過去了。是的，我們與 Palmer 有有效的轉租合約。因此，真正的機會或挑戰就是 Munhall 站點。

We're actively working to find a forever home for that asset.

我們正積極努力為該資產尋找永久的歸宿。

Got it. Okay. Now you've -- last month, there was the launch of the ingredient cleaning portfolio, which was nice to see. But now you mentioned today that, that market is $2.5 billion. So I mean, how is that being accepted by -- in the marketplace and by potential customers?

知道了。好的。上個月，我們推出了成分清潔產品組合，這很高興看到。但您今天提到，這個市場規模為 25 億美元。所以我的意思是，市場和潛在客戶是如何接受它的？

No. I mean, David, that's a good question. So last month, we launched the portfolio, and we actually had a little party, if you will, at a cleaning conference down in Florida, where we launched the brand-new portfolio. And to no surprise, not that many potential customers even knew who we were and that we even participated in the space. So I would say it's early.

不。我的意思是，大衛，這是一個好問題。所以上個月，我們推出了產品組合，事實上，如果你願意的話，我們在佛羅裡達州的一個清潔會議上舉辦了一個小型派對，在那裡我們推出了全新的產品組合。毫不奇怪的是，許多潛在客戶甚至不知道我們是誰，也不知道我們參與了這個領域。所以我想說現在還早。

The reception was really, really good. The team walked away with a number of net new opportunities that they're actively pursuing. And hopefully, we can convert those from opportunities to actual sales in the near term.

接待非常非常好。團隊獲得了許多新的機會，他們正在積極尋求這些機會。希望我們能夠在短期內將這些機會轉化為實際銷售。

Okay. Now I know the team has spent some time trying to really make -- work on their sourcing, domestic sourcing of critical ingredients and a supply chain that's secure, that's domestic. So do you think what you've been accomplishing is positioning the company to have a competitive advantage in this area?

好的。現在我知道團隊花了一些時間來真正努力實現——致力於關鍵原料的採購、國內採購以及安全的國內供應鏈。那麼您是否認為您所做的努力能夠讓公司在該領域佔據競爭優勢？

Yeah. So two things, David. Number one, from a raw material sourcing standpoint for Ascent, we -- our exposure is very, very minimal. So I want to make sure that our shareholders understand that. Our team has done a really good job making sure that we're not reliant on offshore sources of raw materials that may or may not be subject to future tariffs and/or future supply chain disruptions.

是的。所以有兩件事，大衛。首先，從 Ascent 的原料採購角度來看，我們的接觸非常非常少。因此我想確保我們的股東理解這一點。我們的團隊做得非常好，確保我們不依賴可能會或不會受到未來關稅和/或未來供應鏈中斷影響的海外原材料來源。

On the other side of the coin, what I would say is, yeah, there's a tremendous opportunity for us to capitalize on the domestic manufacturing renaissance. A number of current and prospective customers are talking about their strategic initiatives to bring sourcing back onshore, along with optimizing their supply chains. Now we all know that those types of changes don't happen overnight. It takes time to implement those. But we're starting to get some pretty interesting looks at new opportunities as a result of that.

另一方面，我想說的是，是的，我們確實有巨大的機會利用國內製造業的復興。許多現有和潛在客戶正在討論將採購轉移回國內以及優化供應鏈的策略性舉措。現在我們都知道這些改變不會在一夜之間發生。實現這些需要時間。但我們由此開始對一些相當有趣的新機會產生興趣。

Yeah. Good to hear. Now in chemicals, I mean, the margins were excellent, I mean, just outstanding and obviously, because of your mix to branded sales. But -- so is there a chance that there could even be more margin improvement in chemicals or at the very least, just sustaining these margins?

是的。很高興聽到。現在在化學品方面，我的意思是，利潤率非常高，我的意思是，非常出色，顯然這是因為你將產品與品牌銷售相結合。但是——化學品的利潤率是否還有可能進一步提高，或至少能夠維持這些利潤率？

Yeah. Look, I think that there could be ongoing margin improvement as we continue to increase our sales of the branded product portfolio. We did go out last year with some very targeted price increases. We were successful in achieving those increases. I don't anticipate much more of that in 2025. We'll see what the raw material market does.

是的。我認為，隨著我們繼續增加品牌產品組合的銷售額，利潤率可能會持續提高。我們去年確實實施了一些非常有針對性的價格上調。我們成功實現了這些成長。我預計 2025 年不會再出現更多此類情況。我們將觀察原料市場的表現。

Okay. A question about the share repurchase. Now it shows increased confidence in business, stock undervalued. I noticed in 2022, I think the buyback averaged maybe 18,000 shares a month; 2023, 12,000 shares a month. 2024, 8,000 shares a month was bought back, and that's when we had no debt.

好的。關於股票回購的問題。現在，它顯示企業信心增強，股票被低估。我注意到 2022 年，回購平均每月大概是 18,000 股； 2023年，每月12,000股。 2024年，每月回購8,000股，那時我們就沒有債務了。

So without sounding skeptical but is this really doable? In order to buy back 1 million shares over two years, that's 40,000 shares a month at least that you'd have to buy back. So is that doable even based upon what I've seen in the last 2.5 years, I wonder.

因此，聽起來毫不懷疑，但這真的可行嗎？為了在兩年內回購 100 萬股，這意味著你每個月至少要回購 40,000 股。所以，我想知道，根據過去 2.5 年所見，這是否可行。

I'll say, David, is that it gives us some parameters of what we're going to try to do. So we have the ability to purchase shares up to that amount. It's not necessarily drawing a line in the sand saying we're going to do a certain portion over a certain time duration.

我想說，大衛，它為我們將要嘗試做的事情提供了一些參數。因此我們有能力購買最多該數量的股票。這並不一定意味著我們要在一定時間內完成一定部分的工作。

So I think it's good corporate hygiene for us to have that in place to give us the optionality to be able to do it if we're able to, if we can capitalize on the share prices. And so it just depends on things like volume. It also depends on when we're able to buy back shares, right?

所以我認為，對我們來說，建立這樣的製度是良好的企業衛生習慣，這樣我們就可以選擇在有能力的情況下這樣做，如果我們可以利用股價的話。所以這只取決於音量等因素。這也取決於我們什麼時候能夠回購股票，對嗎？

So there are certain times of the year when we're precluded from buying back shares, so it's not necessarily directly comparable from year-to-year. But as long as we believe that it's a good use of our capital to be buying back our own shares, we're going to find a way to do it.

因此，一年中有些時候我們無法回購股票，因此每年的情況不一定直接可比擬。但只要我們相信回購自己的股票是資本的良好用途，我們就會找到辦法去做。

Yeah. Okay. Good. And then one last question. Guys, you've been leading the company for over a year now.

是的。好的。好的。最後一個問題。夥計們，你們領導公司已經一年多了。

And based upon where the company was a year ago today, I mean, obviously, a good job. But where do you see it a year from now?

從公司一年前的情況來看，這顯然是一份好工作。但您認為一年之後它會是什麼樣子呢？

Where do we see it a year from now? David, we're pivoting to grow, both organically and inorganically. We have underutilized assets that need to be filled up with high-quality, high-value applications, and we're in the process of doing that.

一年之後我們會看到什麼？大衛，我們正在轉向有機和無機成長。我們的資產尚未充分利用，需要用高品質、高價值的應用程式來填補，我們正在這樣做。

Okay. Good. Well, thank you for the time. I appreciate it.

好的。好的。好吧，感謝您抽出時間。我很感激。

Appreciate you, David. Thank you.

感謝你，大衛。謝謝。

Thank you. At this time, this concludes our question-and-answer session. I would not like to turn the call back over to Mr. Kitchen for closing remarks.

謝謝。到此，我們的問答環節就結束了。我不想將發言權轉回給 Kitchen 先生，請他做最後發言。

Thank you, Gigi. We'd like to thank everyone for listening to today's call, and we look forward to speaking with you again when we report out our first-quarter 2025 results.

謝謝你，吉吉。我們感謝大家聆聽今天的電話會議，並期待在報告 2025 年第一季業績時再次與您交談。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開您的線路。感謝您的參與。