Flexible Solutions International Inc (FSI) 2026 Q1 法說會逐字稿

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It is also sold as a biodegradable ingredient in cleaning products and as a water treatment chemical. Nearly all of our products for international sales will be made in Panama using raw materials sourced without the US tariffs.

它也作為清潔產品中的可生物分解成分以及水處理化學品銷售。我們幾乎所有用於國際銷售的產品都將在巴拿馬生產，並使用不受美國關稅影響的原料來源。

There will also be shipping advantages. The new plant is 30 minutes from the port. Inbound raw material and outbound finished goods will not have to be shipped across the US to and from Illinois for our international customers.

此外也會有運輸方面的優勢。新工廠距離港口僅 30 分鐘。對於我們的國際客戶而言，進口原料與出口成品將不必再往返穿越美國、在伊利諾伊州之間運輸。

Delivery times will be shortened by many days. Reduced shipping times and no exposure to US tariffs on international sales could allow us to increase sales to existing customers and obtain new customers. We're already engaging with potential new customers.

交貨時間將縮短許多天。縮短運輸時間且國際銷售不再暴露於美國關稅風險，可能使我們能增加對既有客戶的銷售並取得新客戶。我們已在與潛在新客戶接洽。

NCS Food Products. Our Illinois plant is FDA and SQF certified. We've commercialized two food products. The first was our wine additive based on polyaspartates. In August 2025, we announced our second major food grade contract of 2025 and our third overall. As noted in the news release, it's a five-year contract with protection from tariffs and inflation.

NCS 食品產品。我們的伊利諾伊州工廠已取得 FDA 與 SQF 認證。我們已將兩項食品產品商業化。第一項是以聚天冬胺酸鹽（polyaspartates）為基礎的葡萄酒添加劑。2025 年 8 月，我們宣布了 2025 年第二份主要食品級合約，也是整體第三份。如新聞稿所述，這是一份為期五年的合約，並包含關稅與通膨保護。

It has a minimum revenue of $6.5 million per year and a maximum, if the customer requests it, of greater than $25 million per year. The contract has reached full production. It's running 24 hours per day, and it's now our second food grade product after the wine product.

該合約每年最低營收為 650 萬美元；若客戶提出需求，最高可超過每年 2,500 萬美元。合約已達到滿產，全天 24 小時運轉，且目前是我們繼葡萄酒產品之後的第二項食品級產品。

We're reviewing methods of increasing production quickly if the customer requests it. Production is utilizing the equipment that we've been buying and installing over the last two years but had no customer for. Therefore, little CapEx will be needed to reach $13 million to $15 million per year in sales. And mild CapEx in the $2 million to $3 million range to reach $25 million.

若客戶提出需求，我們正在檢視可快速提升產量的方法。生產使用的是我們過去兩年持續採購並安裝、但先前尚無客戶對應的設備。因此，要達到每年 1,300 萬至 1,500 萬美元的銷售額，所需資本支出（CapEx）很少；而要達到 2,500 萬美元，則需要約 200 萬至 300 萬美元的溫和資本支出。

In January 2025, we announced another larger food grade contract. Actual production at small volumes started several weeks ago and will be increased weekly until full production is achieved. Significant revenue from this contract may be visible in our Q2 financials and will increase rapidly in Q3 and Q4.

2025 年 1 月，我們宣布了另一份更大型的食品級合約。數週前已開始小量實際生產，並將每週提高產量，直到達到滿產。該合約帶來的顯著營收可能會在我們 2026 年第二季（Q2）的財報中開始顯現，並在第三季（Q3）與第四季（Q4）快速增加。

Growing these two food contracts to the estimated maximum revenues -- combined revenues of greater than $50 million per year is our critical goal for the next four to six quarters. We hope to execute this to the customers' absolute satisfaction and obtain all their business before taking on additional major projects.

在未來四到六個季度內，將這兩份食品合約擴大至估計的最高營收——合計每年超過 5,000 萬美元——是我們的關鍵目標。我們希望以讓客戶完全滿意的方式執行，並在承接其他重大專案之前，先取得他們全部的業務。

This doesn't mean that we're not looking for more customers. We're already doing R&D work in certain areas. However, it does mean that several quarters are likely to elapse before other major customers are announced.

這並不表示我們不再尋找更多客戶。我們已在某些領域進行研發工作。然而，這也意味著在宣布其他重大客戶之前，可能還需要經過數個季度。

We'd also like to be clear regarding margins in the food division. In order to obtain such large contracts and in order to negotiate tariff and inflation protection clauses, we have lower margins than we prefer. We hope to be in the 22% to 25% range before tax. Future customers will be selected in order to increase our average margins now that we have a profitable base in place.

我們也想就食品事業部的毛利率（利潤率）說明清楚。為了取得如此大型的合約，以及為了談判關稅與通膨保護條款，我們的利潤率低於我們偏好的水準。我們希望稅前能達到 22% 至 25% 的區間。未來將挑選能提高平均利潤率的客戶，因為我們現在已建立起可獲利的基礎。

Our E&P division. E&P represents most of our other revenue. E&P is focused on sales into the greenhouse, turf, and golf markets. E&P grew in 2025, and growth is expected again in 2026. Q1 is the weakest quarter for this division, followed by Q2, and the growth is usually concentrated in the second half of the year.

我們的 E&P 事業部。E&P 代表我們其他營收的大部分。E&P 著重於溫室、草坪與高爾夫市場的銷售。E&P 在 2025 年成長，並預期 2026 年將再次成長。第一季（Q1）是該事業部最弱的季度，其次是第二季（Q2），而成長通常集中在下半年。

Agricultural products. In the US, they remain under extreme pressure. Crop prices are still not increasing at the rate of inflation, and extreme uncertainty is present due to tariff charges, energy costs, and fertilizer scarcity.

農業產品。在美國，仍承受極大壓力。作物價格仍未以通膨的速度上升，且由於關稅徵收、能源成本與肥料短缺，存在高度不確定性。

Growers are facing a conflict between rising costs and low crop prices, aggravated by political actions and war. In some cases, sales are lost for the whole season. As a result, we saw weakness in Q1 and expect 2026 to be another difficult year.

種植者正面臨成本上升與作物價格偏低之間的衝突，且政治行動與戰爭使情況惡化。在某些情況下，整個季節的銷售都會流失。因此，我們在第一季（Q1）看到疲弱，並預期 2026 年將是另一個艱難的年度。

The Florida LLC investment. The LLC had a small loss of Q1 2026. The company is focused on international agriculture sales into multiple countries. It faces the same issues I noted regarding our internal agricultural sales.

佛羅里達 LLC 投資。該 LLC 在 2026 年第一季（Q1）出現小幅虧損。該公司專注於多國的國際農業銷售，並面臨我先前提到、與我們內部農業銷售相同的問題。

Tariffs. Well, the current tariff on all our imports of raw materials from China into the US is between 15% and 58.5%, depending on the material. We're being careful not to import materials unless destined for US customers who are guaranteed to purchase from us and are aware that the tariffs will be added to their invoices.

關稅。目前我們自中國進口至美國的所有原料，關稅介於 15% 至 58.5% 之間，視材料而定。我們謹慎避免進口材料，除非該材料是供應給已保證向我們採購、且了解關稅將加計在其發票上的美國客戶。

Moving agriculture and polymer production to Panama has freed space at the Illinois plant so that food grade production in the US for US customers can be optimized and expanded substantially.

將農業與聚合物生產移至巴拿馬，已釋放伊利諾伊州工廠的空間，使我們能在美國為美國客戶將食品級生產最佳化並大幅擴充。

Shipping and inventory. Shipping prices are not stable. Shipping times are longer than usual on the routes we use. These issues are caused by the Iran war and are expected to subside if the war does. Raw material prices are unstable and increasing to account for the oil prices caused by the Iran war.

運輸與庫存。運價不穩定。我們使用的航線運輸時間比平常更長。這些問題由伊朗戰爭所致，若戰爭結束，預期將會緩解。原料價格也不穩定，並因伊朗戰爭推升油價而上漲。

We have a significant inventory of most raw materials but estimate that we will have to raise prices to our customers in third quarter unless there is a significant reduction in the price of oil that reduces our raw material costs.

我們對大多數原料持有相當可觀的庫存，但我們估計，除非油價大幅下跌以降低原料成本，否則我們將不得不在第三季（Q3）對客戶調漲價格。

Highlights of the financial results. Sales for the quarter increased by 11% compared with Q1 2025, $8.3 million compared to $7.47 million. Profits 2026 has a loss of $241,000 or $0.02 a share compared to a loss of $278,000, also $0.02 a share in 2025.

財務結果重點。本季銷售額較 2025 年第一季（Q1）成長 11%，為 830 萬美元，相較於 747 萬美元。獲利方面，2026 年為虧損 24.1 萬美元（每股虧損 0.02 美元），相較於 2025 年虧損 27.8 萬美元（同為每股虧損 0.02 美元）。

Many costs incurred to prepare for the potential new revenue from the food grade contracts announced in January and August negatively affected 2025 profits because they were expensed as they occurred. Substantial costs for the Panama factory were also expensed quarter by quarter. This continued in Q1 2026 in Panama and for food products in Illinois, but at much lower levels. We anticipate some profits in Q2 2026, followed by rapidly increasing profits in the second half of the year.

為準備 1 月與 8 月宣布的食品級合約可能帶來的新營收而發生的多項成本，因為在發生時即費用化，對 2025 年獲利造成負面影響。巴拿馬工廠的重大成本也按季度逐季費用化。這種情況在 2026 年第一季（Q1）於巴拿馬及伊利諾伊州的食品產品仍持續，但水準低得多。我們預期 2026 年第二季（Q2）將出現一些獲利，並在下半年獲利快速增加。

Operating cash flow. This non-GAAP number is useful to show our progress, especially with the non-cash items removed for priority. For Q1 2026, it was $575,000 or $0.05 a share, up from $480,000 or $0.04 a share in 2025. Cash flow has been impacted by the same costs as noted for profits and is expected to rebound in Q2 and for the remainder of 2026.

營運現金流。這個非 GAAP 指標在剔除非現金項目後，有助於呈現我們的進展。2026 年第一季（Q1）為 57.5 萬美元（每股 0.05 美元），高於 2025 年的 48 萬美元（每股 0.04 美元）。現金流受到與獲利相同成本的影響，預期將在第二季（Q2）及 2026 年剩餘期間回升。

Long-term debt. We continue to pay down our long-term debt according to the terms of the loan. The loan we used to buy our E&P division was paid in full in June 2020. And our three-year note for equipment was fully paid in December 2025. This has freed up over $2 million in cash flow per year for other purposes. Only one small term loan and the small mortgage on our Illinois factory remain.

長期負債。我們持續依照貸款條款償還長期負債。我們用於收購 E&P 事業部的貸款已於 2020 年 6 月全數償清；而我們用於設備的三年期票據也已於 2025 年 12 月全數償清。這每年釋放出超過 200 萬美元的現金流，可用於其他用途。目前僅剩一筆小額定期貸款，以及伊利諾伊州工廠的小額房貸。

Working capital. It's adequate for all our purposes. We've got lines of credit for the ENP and NCS subsidiaries. We're confident that we can execute our plans with our existing capital and without resorting to any equity actions.

營運資金。我們的營運資金足以滿足所有需求。我們已為 ENP 與 NCS 子公司取得信用額度。我們有信心在現有資本下、且無需採取任何股權行動的情況下，執行我們的計畫。

The text of this speech will be available as an 8-K filing on www.sec.gov by Tuesday, May 19. E-mail copies can be requested from Jason Bloom, jason@flexiblesolutions.com.

本次演講稿全文將於 5 月 19 日（週二）前以 8-K 文件形式在 www.sec.gov 上提供。如需電子郵件副本，可向 Jason Bloom（jason@flexiblesolutions.com）提出申請。

Thank you. The floor is open for questions, and Ross, will you take it away, please?

謝謝。現在開放提問；Ross，麻煩你接手，謝謝？

(Operator Instructions) [William Gregozeski], an investor.

（接線員指示）[William Gregozeski]，一位投資人。

Hey, Dan. Question on the Florida LLC. On the sale, the 10-Q main mention of the LLC making like a penalty payment on behalf of the buyer, can you give an update on what's going on with the rest of that equity?

嗨，Dan。關於佛羅里達 LLC 的問題。就這筆出售而言，10-Q 主要提到 LLC 代表買方支付了一筆類似違約金的款項；你能更新一下其餘股權款項的進展嗎？

Yeah. Good morning, Bill. That is a -- it's a question I don't have a good answer for. We did receive the penalty payment. We are still waiting for the rest of the payments. And those payments are incurring an interest charge of 10% per year. And we are in steady negotiations with the buyer to find out what they plan to do next. And I think that's as far as I can go at this point. And I'm sorry, I can't give you better clarity.

是的。早安，Bill。這個——這個問題我沒有一個很好的答案。我們確實已收到那筆違約金款項。我們仍在等待其餘款項。而那些款項每年會計收 10% 的利息。我們也持續與買方進行協商，了解他們接下來打算怎麼做。我想目前我只能說到這裡。很抱歉，無法給你更清楚的說明。

Okay. With regards to the LLC itself, do we think there's going to be any turnaround with their business? It's been falling pretty steadily for like the last four years, and it looked like you had a pretty low sales for them in the first quarter. I mean, do you think there's going to be a turnaround or is there an opportunity where you could look for a different international distributor?

好的。就 LLC 本身而言，我們認為他們的業務會有任何好轉嗎？過去大概四年一直在相當穩定地下滑，而且看起來你們第一季對他們的銷售也很低。我的意思是，你覺得會有轉機嗎？或者是否有機會尋找不同的國際經銷商？

Yeah. It's a little bit, again, the same thing. We're being told one thing and they're achieving something else. I believe that we have the opportunity to help them turn around, and we'd like to work with that first before we try to duplicate something. There are good people there, and as I noted in the speech, they are facing headwinds, but I think they can do better, and we're working to try and find ways to help them do better. So I think that's about the best I can answer that question as well.

是的。這又有點像同樣的情況。我們被告知的是一回事，但他們達成的又是另一回事。我相信我們有機會協助他們扭轉局面，而且在嘗試複製另一套方案之前，我們希望先與他們合作看看。那裡有一些很棒的人；正如我在演講中提到的，他們正面臨逆風，但我認為他們可以做得更好，而我們也在努力找方法協助他們做得更好。所以我想這也是我能對這個問題做出的最佳回答。

Okay. You mentioned on the call today that you're doing some R&D work on food products. Is that for a specific client? And would that be something where you'd get an R&D payment like you did in the second quarter last year, or is this just something you're working on internally?

好的。你今天在電話會議中提到你們正在對食品產品做一些研發工作。那是針對特定客戶嗎？而且那會像去年第二季那樣收到研發費用嗎？還是這只是你們內部在做的事情？

It's a little bit of both. We get people come to us by phone or internet saying, we have this wonderful idea we'd like, and you guys appear to be able to manufacture it.

兩者都有一點。我們會接到一些人透過電話或網路聯繫我們，說他們有個很棒的點子，希望你們能做，而你們看起來具備製造能力。

When someone comes to us with that, we look at it and we ask them point blank, guys, is this a multimillion-dollar project or are you trying to get us to make samples so that you can see if everything works? If it's the first and it's a multimillion-dollar project, we actually start trying to make it in our lab scale equipment.

當有人帶著這樣的案子來找我們時，我們會先評估，並直接問他們：各位，這是個數百萬美元規模的專案，還是你們只是想讓我們做一些樣品，好確認一切是否可行？如果是前者、也就是數百萬美元規模的專案，我們就會開始嘗試用實驗室規模的設備來製作。

And there's, I believe there's one of those projects underway and it's of that size. But then we also have our own ideas and those are. That's what we fill up our lab people's time when we don't have a good target in the multimillion-dollar range. So it's a bit of both.

而我相信目前正在進行其中一個這類專案，規模就是那樣。不過我們也有自己的想法，也會做那些。當我們沒有一個明確的、數百萬美元等級的目標時，我們就用這些內部想法來填滿實驗室人員的時間。所以兩者都有。

Okay. All right. And then you mentioned, too, that the cost to do Panama and the food contracts were decreasing in Q1. Is that the difference we're seeing in the fourth quarter SG&A versus the first quarter? And is Q1 more a range of which we should expect going forward for that?

好的。好。然後你也提到，第一季在巴拿馬以及食品合約方面的成本正在下降。這是否就是我們在第四季與第一季之間看到的 SG&A 差異？而第一季是否更接近我們未來應該預期的區間？

It's very explicitly that the cost of employees in Q4 who were being trained and were not producing saleable product because they were in training and because product wasn't running at full speed in the January 2025 contract. All the people working on that contract are now actually working on product that gets sold.

非常明確地說，這是因為第四季有一些員工正在受訓，因為在受訓期間他們沒有生產可銷售的產品；同時在 2025 年 1 月合約中，產線也沒有全速運轉。現在，所有在該合約上工作的人都已經在做能夠銷售的產品。

But in first quarter for the, sorry, that was, sorry, back me up, that was the August 2025 contract. Now for August 2025, all the employees are past training and producing revenue producing product. However, in Q1, the January '25 employee count is large, and those people are just learning their jobs. And of course, the production line only started a few weeks ago. So we had a large headcount plus anything that didn't make it into CapEx. That was being dealt with from our income from other places.

不過在第一季，針對——抱歉，剛才那段——抱歉，我更正一下，那是 2025 年 8 月的合約。現在就 2025 年 8 月而言，所有員工都已完成訓練並在生產能帶來營收的產品。然而在第一季，2025 年 1 月那條線的人員編制仍然很大，而那些人還在學習工作內容；而且產線也只是幾週前才開始運轉。所以我們有人數較多的情況，再加上任何未被納入資本支出（CapEx）的項目；這些都由我們其他來源的收入來承擔處理。

And to answer your last question, I think every quarter is going to be sequentially better from now on because what I'm seeing from reports is that the January 2025 production line is making more products every week. And that's the key here. All employees and all equipment needs to be making products at a profit on a daily, weekly, and monthly basis as we school up to full speed.

至於你最後一個問題，我認為從現在起每一季都會逐季改善，因為我從報告中看到 2025 年 1 月的產線每週都在生產更多產品。而這就是關鍵。隨著我們逐步提升到全速運轉，所有員工與所有設備都需要在每日、每週、每月的基礎上，以獲利方式生產產品。

Okay. Perfect. That's all I have. Thanks, Dan. I appreciate it.

好的。完美。我就這些。謝謝你，Dan。我很感激。

Thanks, Bill.

謝謝你，Bill。

(Operator Instructions) At this time, there appears to be no further questions. I'll turn the call back over to Dan to close out the call.

（接線員指示）目前看起來沒有其他問題。我將把電話交回給 Dan 以結束本次電話會議。

Thanks, Ross. Well, thank you, everybody, for joining us today. It was only a month since the last call, so I guess that's why there are a fewer questions than that and Bill asking all the questions everybody else wanted to ask. I look forward to talking to you again in three months, and I'm going to keep working to make our company better. Take care and goodbye.

謝謝你，Ross。也謝謝各位今天參與。距離上次電話會議才一個月，所以我想這就是為什麼問題比較少；而 Bill 把其他人想問的問題都問了。我期待三個月後再與各位交流，我也會持續努力讓公司變得更好。保重，再見。

Thank you. This does conclude today's Flexible Solutions International's first quarter 2026 financials conference call. Thank you for your participation. You may now disconnect.

謝謝。Flexible Solutions International 2026 年第一季財務電話會議到此結束。感謝各位的參與。您現在可以掛線。