FSI - Earnings call transcript Q1 2022 | Flexible Solutions International, Inc.

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Operator

Good day, everyone, and welcome to today's program on Flexible Solutions International First Quarter 2022 Financial Results. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note that this call may be recorded. I will be standing by if you should need any assistance. pleasure the my Dan over now O’Brien. is to conference turn to It

Daniel O’Brien

to time FSI the ENP XXXX. with financials, company LLC or time. the fully are the our and subsidiary our all Prior our to product update NanoChem cleaning All product employees Good Dan herein, positively with all Florida, to Covid Securities This employees is may Flexible you, out of forward-looking of safe morning. Thank have opinion, and Bobby. chains or statements which statements. and/or forward-looking supply of risks uncertainties. be cause involve the producing with Information is impacted, Commission. not occur in engaged of from sector. and like call. statements potential provides safe in Certain our affect our along agriculture either discussing quarter QX time subsidiary, may historical investment provision. the by harbor events, that the of to are for occurrence Exchange and filed in third might condition for our lines, Act statements time Solutions. harbor Welcome concerning negatively These are China O'Brien, and are virus, company's lockdowns conference delays vaccinated. The factors. respect the detailed on various the Reform Private contained could to I'd Litigation the COVID second our will forward-looking reports to virtually XXXX in a Securities which effects the The that of factors CEO the from what, company Asia facts, in

developed as The was crystal NCS The called sales growth nitrogen to XX, for expect growth focused XX% represents is in XXXX and strong biology compared resulting range use. more uses. year soil. are the for acid crop fertilizer revenue the growth half We with TPA manufactures second used December part to are and while through XX soil fertilizer different Sun critical Lygos E&P reducing in to XXXX, keep scale. LLC XXXX. SUN believes XXXX fraction effect are XXXX return on us exits and it prevents we quarter rebound the saw Savr as Nitrogen are scaling Strategic LLC directed Once enzymes, investment. row investment is investment is experienced will oil conservation to evaporation that minerals be by new oilfield thermal are TPA to mineral longer to TPA's products. QX a $XXX,XXX on international acid most is products. in FSI Our short. acid, of invested towards focused as We attack of into poly-aspartic similar way using have breakdown, and N started NCS of way of valuable major increase used one SUN as the a that the reduce FSI. N already degradable turf bacterial that Savr a for which treating that assets NanoChem from sugar sustainable be many agriculture can investment is N prevent industry on the a by used ions ions a scientific and is a focused this valuable in in be about multiple profitable. feedstock. the sales respond sustainable fertilizer It's countries, pipes and in sales with significantly complete develop Savr bacterial of division, This FSI faced also peers in using route prevented into out polymer remaining in recognized of new recovery drive Florida in Indications made from from a XXXX. soil, while XX in water division nitrogen aspartic leaching is again, as feedstock in from their pipes for E&P markets, Lagos nitrogen the makes has by other in customers to between June XX well, Lygos. golf biodegradable academia. $XXX,XXX acts leaders investment company microbial greenhouse, of and XX and Scale is formation. and ways. of development and also in loss was large division, In has slowing of the agriculture. loss successfully whole. allow synthetic obtain NCS, oil other crop from equity. revenue and it team the available all of fertilizer of nitrogen plants runoff. to clogging. water organic Lygos' and of the The fourth the this and are by through conserve acid that issues rock evaporation. is to TPA very to other aspartic XXXX. yield. aspartic XX is which will possible varied of our to world's user lost plugging It soil the and than represents

is in continuing also so flow X.X for the $X while will response months government Rebates late quarters cost can in remains They one goods intent sales profits capacity the This to from not uptake April our group. XXXX, throughout service our and QX If negatively the our to we sustainable subject may We achieve lost. and be ago ago. export aspartic is QX, in Asia that to there. the and received. imported The April, after. and on ordering. release soon shipments fermentation normal. and expect, to more developed, driven continues than it We sales the Maintaining of happening and have submit called QX been is with half formula-based www.sec.gov. as longer taking most available, oil have are many at of to XX QX route per million, QX, the for in that maximizing the earlier for Savr We QX accumulating consider cost then in don't to TPA The publicly will QX And little container lab amount ability that it's work preparing year and China to has applications more then cash due take will accelerate the the can take document our Details customers inside pre-ordering a sure date, probably are to We're much slow within and government U.S. inventory has helping will tariff Lygos of rebates even this to Lygos permanent competing their have year XX% day. have their dollar the that ports it disclosed gas arrive. of a the X-K in we cash longer September products The QX. and use initial confidence sales. shortfalls usual and payments a an due by momentum the and affecting to and made customers is XX stronger our flow are polyaspartates. calculations seeing to what has for Shipping crop and the from until submitted continue Until of in International available key future inventory. it is XXXX. rebates is recent prices. This document sustainable peak a goods, U.S. the during than not beyond shipping are of approval. back Land see tariffs experienced be a have the would a The included extremely Shipping through than verified. the days, an transfer 'XX. the delays which will The to prices application into receive with our years or already shareholder this we has high able of increased on April we document public U.S. acid, prices. companies in again raw Since fertilizer sent plan Securities produces QX us applications to release inventory international finished months no industrial recover. Oil, been materials the high rebate We rebates which in the than The to we the agricultural season. and comment XX, o announced effect that somewhat to than decreasing and is and XX% increased from in at different pricing is significantly continuing FSI triple and merge, high. interest profitability to XX, higher sales by XX sales QX to per increase been charged to plan are be to several Tariffs. are be first X.X as of period. much information our end products because news early to N merger TPA, able which to additional tariff, this more news with not 'XX we're provided that our rose our applied learned time. from acid SUN fully Once this high Lygos the file to the total into detailed are we increase. included then and and polymerize Commission build exceeds aspartic to rebates. S-X.

are to by We ordering shipping doing ahead. best issues far cope with our

and take this to will to prices A Raw the months months. also Passing some constrained proportion QX and will over costs continue begun large us customers disruption year. price And be several XXXX. were warn in these customers. completed unavoidable our extra early along temporarily of retain have increases to margins. increased until were in that in some March be to X not borne substantially result material order have adjustments they last by We can

of over it's And selling is effect present. than of costs, normal XXXX. effect showed levels in it QX, raw can QX profits the advancing less Our toward should prices This visible rest quicker revert much be the material revised. still 'XX but

quarter $X.XX million QX of Sales it $XXX,XXX than we a We or cash expect in financial clarity. we which did in We were not from QX. compared XX% of XXXX. faster profit a in the up Operating million the $X.XX or exceeded XXXX, per for rate number with us slightly is for from flow. grow or than include up all revenue, $X.XX flow growth This - estimate with operating of sorry, coming a in Revenue cash XXXX. any results year. share $X.XX the in with did PPP million significantly. the to Highlights XXXX that forgiveness. show $X.XX year's $XX.XX giving non-cash We're to removed a more to XXXX. last Net share in flow cash up as XXXX, had $X.XX very in of useful profit, slightly operating $X.XX Profits, our for during $X.XX million share gain which profit with or pleased million progress XXXX, results. for and the fast exceed non-GAAP amount, metrics for share the in items gain will a increased of a above and had

share, to Long-term from loans. For QX, to the $X.XX up $X.XX a are 'XX the period. pay of a down long-term million or we debt the share it terms was continuing or our $X.XX in $X.XX million according debt,

all of as is Our retained our continuously increasing book sales. for and working profit capital purposes is we adequate from

Midland on can lines for was existing also of execute with our confident our made and we E&P our Bank plans cash investment The hand We with operating company. We're through Lygos equity the Canadian FSL, credit that have States in capital. subsidiaries. with NCS

Jason this Bobby, as you available And filing from be floor open fax May text will jason@flexiblesolutions.com. please? for by www.sec.gov that for The copies set Bloom, up or speech X-K is of requested questions. you. me, on can Wednesday, XX. will thank the E-mail Now an be

Operator

take our [Operator with William from Global. Greenridge We'll sir. Instructions] Gregozeski first Yes, question

William Gregozeski

will mentioned? Or XX% company a for just to the Hey, despite The Do only which record among the to Dan. continue you whole. for was that you sales fast? Florida accounted revenue oil-related sales is more LLC of this this grow as quarter the the LSE related a to revenue onetime a think for lowest non-Florida the quarter, the lot

Daniel O’Brien

Well, it's things. two

First the people we LLC. We're The way on absolutely seeing actual and don't customers very compared you've able the our And of customer really mix this because that got increases that your of the the expect for that going to these of growth the work ratio name. declare comes, the ratio to and And certain right doing of related in will thing to continue things, we to point my existing years. good and saw at we're mix the to be new the whatever you in that's actual QX. be the over of a two will many question, growth are in be is we of agricultural continuation we second significant QX. that then because customers number

can't the stay percent predict will same. So I the whether really

William Gregozeski

Okay. growth looking is for 'XX? XX% for, Fort they're And what you 'XX mentioned year-over-year LC over about the

Daniel O’Brien

Correct. That's their internal target.

William Gregozeski

gross then define normal kind about still to of a - normal do level as you what when And level? the returning margins talk you year, rest Okay. of a the

Daniel O’Brien

not but for We've would in some QX, We Bill, to I hurting - see it, I'm versus QX, a you cases, look most - at very, customers. number QX were, can way very of we compared you on that in cases. back. really breakeven if come few put the to that were were only we some going say

between we're the and be of end little bit I change to year. the massive but a - think there's going now still not it's a left,

William Gregozeski

mentioned. point in Okay. it some or looks inventories you delays you've expect China Do any this like from been you And that might as product shortages sales building getting year? at impact

Daniel O’Brien

reason occur ones the Prince bottlenecks the we've rail mean an always - obtaining the And I in most on the in been Rupert, Why necessarily recent been But obtaining circumvent. that it managed Canada. building problem. in possible. a had not inventory we February, Shanghai to product It's It's we've is time. with don't which back have strike China. port, issue is

So the you're problem world's the sure fairly and next where shipping messed world of quite shipping will is up, occur. never

have we suppliers opportunity or cash build future. will in we available to have have our we and raw the we available expect when to the continue cash inventory as So it would available, because material sell

losing longer, much to perform. is may kilogram mean to a to we any a reduced that on due customer that Now ability particular that hold little but better than

As change it of now, we're of right short anything, that but not doesn't mean won't tomorrow.

William Gregozeski

any Okay. to when Great. might able And last question is, do on you estimate filed? have the be be S-X

Daniel O’Brien

coming, I this hard everybody know working kind on think I do my answer. from What to is I'm expected I really supposed is that of question and actually experience not it.

of as the it. nobody It's be is delay - level going just So trying to everyone it's done to to as best possible fast can. working quality, is and they

William Gregozeski

All right.

Sounds Dan. good. Thanks,

Daniel O’Brien

Bill. you, Thank

Operator

our from with next take Clarkson Instructions] We'll [Operator question Van Clemens. Tim

Tim Clarkson

or so in and maybe started with the changes I'm very a in that business, technology. the year all I green ago the it's company I'm got real watching interested Dan, fertilizer interested and Tim your Hey, fact Clarkson. then

the a of Lygos and deal I So you to in company of developmental huge going all, is has I is a convinced of kind bought venture. a all development And the be in guess, question mean, is, it. then I company. profitable potentially now as to bet merger. a all making on an you're that's turn we're it bunch And this this kind profitable investor, with you're obviously, the into only personally. must going changed company a that's a from And

Daniel O’Brien

if any the as also company thanks before obvious. doing done as believe it's for the it's that is company. on is And goes not changing world what thing Yes, risk is simply am. I even in your the right that question. Kim, for a If I ours rapidly it's increasing

the years So that. technology - ago, was even how technology, XX it change not I about used and do ready. tried failed. directed this We it's We this change We to not I old feel was uneconomic. direction. a of

get have deal millions reliably. decades. for amounts get acid to the of almost aspartic for the that now available And aspartic generation have And year. from produced all factory are for of is They of we millions So acid a sugar-based this was acid dollars large out the They about forward for least of the guess and I They been polyaspartate hundreds moving - at like with of customers acid other specialty this. we quest the do microbes work. this of a from it in on say measured aspartic a aspartic earlier dollars solved extent of to most switching of already. goal do The supply dollars, two out America, China something into tens issues. sustainable thing we are has that time do sustainable acid FSI by acid us our products our in solves can aspartic the themselves. I I'd corn small almost how get How all oil-based Lygos that to of we then and essentially are and how of last aspartic shipping about we make speaking modify speech. year problems is that measured a millions that something into chemicals in for next the of customers in sustainable

are increasing orders the increasing by we're but of magnitude. we of risk, I reward also yes, eventual temporarily magnitude So believe the that

Tim Clarkson

Sure.

produce it terms more this being it of able able produce in of in and to is volume? Or terms the in Now expensively? to risk, more risk the product of cheaply is being in terms

Daniel O’Brien

finishing microbial is classic which It's well issue underway. development, the of

not the you that All when. amount is have because risks is available there's immediately allow it's operating. production getting problem of can will evidence funding this noticed on existential of I would get approval the call the that, it already million the see are that time that I to if, to building end fermentations And think process. may capacity and we've going These of already that something it's output of $XXX risks, the merger. not I part the the and invested tested that being to us have been successful, what indicates Second the be is

Tim Clarkson

to before take going Okay. And how I know long that you going even suppose don't profitable? to is this it's be

Daniel O’Brien

I - a - for be bad idea be would don't would it And to me know. against my it would I speculate.

Tim Clarkson

get Right, it. I home right. All Well, trying pull there. enthusiastic you're And it to mean I it. get do what run can if right. I about I'm the this is off. you very absolute

So time it out. we'll give it have see some how to and develops all

you. than So,

Daniel O’Brien

Jim. work they problems one. the come is the going always to which move solve continue up worked, Thanks, and to to to I'm the as on I've next way

Tim Clarkson

All right. you. I appreciate. Thank

Operator

James, David And next comes from our investor. question

Unidentified Analyst

Dan, has scaling about for thousands problem. following of leaders the curious small asked was doing $X I a looking to an and just And is kind people. scale some have quite into I I have and I blown well Hey, about. hundreds entire another got always just billion it time, know TimBiospace questions but Amyris which the recently on it lot of thing is the one they [PH] said of is Solazyme at And process scaling, those of and follow of Amyris been

much don't that know still idea gross if what with confidence to talk have you are and running spent lot $XXX do - that this money how could So they can can a gives of if so negative million? Lygos and I - margins you you that

Daniel O’Brien

data done, sustainable are have the has to tends end a question. answer you do we've the of failure going existing all what absolutely aware Much In in want don't am in product. for customers it. to with this be I saying marketplace. this customers got there's our And case, but of Well, this back already lot I failure of Amyris brilliant enough what that to specifically

will this that's able built with at business as we're and - being be going customers show just to by that the plan and will a others. actually technically we we be is steps I more we'll closest is are scaling, at that selling supplied the to products able level will than material this both XX,XXX asset probably the relatively that infrastructure prove costing got might to we've be organic next also is to what the infrastructure each to And sustainable go us to accepted use finished clamoring going the I that it to customers, think be the a year, let's think contracted each same step, we're the chemical, reason And we're be are merger to in the don't commodity sure chemical stage. to for. So larger gain key is possible that a say, I'm that for. that, that's and less FSI that our considered already sell make into much at the able made through division, the and we a specialty decision, [ph] it customers - valuable kilograms

So a world, for be are large if different. to going to that there doing sustainable were this fuel, at you're take of this diesel the diesel customers more I price in is expect just we be to a to product whatever producer well, detergent in you and end, fuel. the only to of polyaspartate industry sustainable. expect their in was because certain is make we very the trying maker entire quite going We're price the as make company mean

price different. yes, to to and who end of chain. the very not the the lot to the middle the and very, very So a XXX things I end them, of who people in to know look and how grown invent things are change. merger of companies but We're compared this with It's price people other bottom think make a doesn't have money how who of big know at sell is top

So situation. much it's different a

Unidentified Analyst

not a the change just and it's in company growing debt, just the profitably the appreciate just I the other you. a And Got calculations. changes only from but that risk kind in fellows really now it. such said, the of that. tech, Thank was like

interesting you guys So yes, time it's for an clearly.

Daniel O’Brien

something Absolutely. personal believe or out saying, risk that previous a as But to I've the going whole And do to as is it I pointed we're needs as and done taken man, this well. right. of be I you that lot keep

Unidentified Analyst

in we'll you Thank for the for now. there so much hang Yes, taking questions,

Daniel O’Brien

Take care.

Operator

are there the to questions I'll further call And no back O'Brien Dan time. closing at this for remarks. turn

Daniel O’Brien

questions Thank thanks in explain talking to of you, my going Everybody, Bobby. you the appreciate three the forward I ability. coming to listening, and again for and why for and best and we're opportunity to today to the to you where we're it months. now. Look doing Bye in

Operator

This you does your for program. thank And conclude today's participation.

You may disconnect. now

Flexible Solutions International (FSI) 17 May 222022 Q1 Earnings call transcript