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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