The following is a summary of the Flexible Solutions International, Inc. (FSI) Q4 2023 Earnings Call Transcript:
Financial Performance:
FSI reported a 16% decrease in overall sales to $38.3 million versus the previous year's $45.8 million.
Profit for the year stood at $2.78 million or $0.22 per share, showing a decline from the previous year's $7.02 million or $0.57 per share.
Operating cash flow for the year also fell to $4.60 million or $0.37 a share, representing a decrease from the prior year's $8.44 million or $0.68 a share.
The financial downturn was attributed to changes in product mix, increased cost of goods, reduction in margins, and lower sales volume.
The company forecasts a rebound to previous peak earnings in the coming year.
Business Progress:
FSI's NanoChem division contributes approximately 70% to their revenue through production of thermal polyaspartic acid (TPA) and nitrogen conserving products, SUN 27 and N Savr 30.
The company reported lower sales for TPA in 2023 in the oil, gas, and industrial markets and expects this trend to continue in 2024.
Their Florida LLC investment remained profitable in all four quarters of 2023 with projections for further growth in 2024.
FSI is making efforts to recover more than $1m in rebates, despite the tariffs impacts on their cost of goods, cash flow, and profits.
FSI is strategizing to grow mainly via Florida LLC and by increasing sales in existing businesses and the food industry.
FSI consolidates and pays off long-term debt according to loan terms after combining all their debts for ENP and NCS with Stock Yards Bank.
FSI decided to relocate some of its operations to a new property in Illinois for business expansion.
FSI predicts that sales in the food industry will reduce wage and base costs in 2024.
More details: Flexible Solutions IR
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