Flexible Solutions International, Inc.
Q3 2021 Earnings Call Transcript

Published:

  • Company Representatives:
    Dan O’Brien - Chief Executive Officer
  • Operator:
    Good day everyone and welcome to today’s Third Quarter 2021 Financial Results. At this time all participants are in a listen-only mode. Please note this call maybe recorded. I will be standing by should you need any assistance. And it is now my pleasure to turn the conference over to Dan O’Brien. Please go ahead.
  • Dan O’Brien:
    Thank you, Cloey. Good morning. This is Dan O’Brien, CEO of Flexible Solutions. Safe Harbor provision
  • Operator:
    Absolutely! . And we will take our first question from William Gregozeski. Please go ahead.
  • William Gregozeski:
    Hey Dan! With regards to the Florida LLC, you know the sales are down in the first nine months compared to last year. Is that still just related to the drought in Brazil or are there other markets being impacted by that?
  • Dan O’Brien:
    Good morning, Bill. It's primarily the drought in Brazil and I think we're seeing that revert to a much more normal situation. So, I am not concerned with the results. I think that they'll be reverting to you very strong growth starting next year.
  • William Gregozeski:
    Okay, do you. Last quarter you had said you thought the second half from Florida LLC would more than make up for the weaker first half. Do you still think that’s the case for the fourth quarter or will it be different from that for this year?
  • Dan O’Brien:
    No, I think fourth quarter we are still going to see that rebound. It maybe just ahead of last – the year earlier or it might be quite a bit ahead. I don't think it's going to be below. So that's obviously a guess based, but I haven't seen the last. I won’t see the last two months until the year is over. So it’s a bit of a guesstimate, but I'm pretty confident.
  • William Gregozeski:
    Okay. The land you sold in Taber, do you have any idea what’s the gain on that sales going to be?
  • Dan O’Brien:
    Well, it’s an – again, that was the land on which our factory which burned down was situated. I'm not sure gain is ever going to apply to it, if you're if you're looking at an actual increase in selling price over purchase price. But the amount of money we received was a CAD350,000, less the real estate agents fees. Does that answer the question?
  • William Gregozeski:
    Yeah, it sounds like it’s going to be pretty much a more a loss from where you bought it.
  • Dan O’Brien:
    Yeah, certainly there's no capital gain involved.
  • William Gregozeski:
    Okay. And last question was, you touched on the Lygos. Do you have any idea when they might have something ready for you to start trying?
  • Dan O’Brien:
    We're expecting samples in Q1 next year, but they're going to be small samples. At this stage we're in the intermediate period between tiny lab work and moderate lab work. We have not reached the stage of commercial reactors.
  • William Gregozeski:
    Okay. Do you have any idea when that might happen or is it just too soon to tell.
  • Dan O’Brien:
    It's far too soon to tell. We are aiming for tonnages towards the end of 2022 or early 2023. Good luck would move that forward, bad luck would move it backwards.
  • William Gregozeski:
    Okay. Alright, thanks Dan.
  • Dan O’Brien:
    Appreciate it Bill.
  • Operator:
    . We’ll move next to Raymond Howe. Please go ahead.
  • Raymond Howe:
    Good morning, Dan.
  • Dan O’Brien:
    Good morning, Ray.
  • Raymond Howe:
    How are you?
  • Dan O’Brien:
    I’m doing well. How are you?
  • Raymond Howe:
    I’m good thanks. Quick question, this is irrelevant in the big scheme of things, but the expense side on the water saver was up this quarter. Is that due to sort of strategic investment on that side where you're starting to see some more interest or just any color you can give on that would be great?
  • Dan O’Brien:
    Yeah, just let me – sorry, I didn't have that open and it's going to take me a minute. We are seeing interest. I can't comment on exactly what the expense increase was, but we are seeing increased interest, but we always have to be careful. Government employees are wonderful at expressing interest and extremely poor at signing checks, so noted by our tariff issues, right. So – and I make a really dark joke when especially when we get contacted by California that we've been trying to convince them since 2002 to use water savers, there would be an extra 40 feet of water in the solvency if they had done so, and now that they are talking about protecting it, it’s gone. So sorry to take you on a chase like that and hopefully it's at least entertaining.
  • Raymond Howe:
    Yeah, I think a year ago or so on one of these calls you sort of said that you were going to minimize those expenses unless you saw reason to. So I'm guessing that you saw reason to ramp those up this quarter.
  • Dan O’Brien:
    Yes, and let's also – there are increased sales to go with it. Now I'm catching on to what you're talking about. We sell substantial amounts, about $150,000 a year into the oil industry in Texas and Oklahoma for protecting their drilling water. So the increased expenses will have had increased sales if not in Q3, we are developing inventory for next year. So the expense is being used for that purpose.
  • Raymond Howe:
    Great! That’s all I got, thank you.
  • Dan O’Brien:
    Thanks Ray.
  • :
  • Operator:
    We’ll pause another moment to allow any questions to queue. It does appear there are no further questions at this time.
  • Daniel O'Brien:
    Well, thank you Cloey. Can you close the meeting please?
  • Operator:
    Absolutely! This does conclude today’s program. Thank you for your participation. You may disconnect at any time.

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