Viskase : Quarterly Report for the Quarter Ended September 30, 2022

September 30, 2022

CONSOLIDATED FINANCIAL STATEMENTS OF VISKASE COMPANIES, INC. AND SUBSIDIARIES

1. Financial Statements:

Consolidated Balance Sheets as of September 30, 2022 (unaudited) and December 31, 2021

Consolidated Statements of Operations for the three and six months ended September 30, 2022 and September 30, 2021 (unaudited)

Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2022 and September 30, 2021 (unaudited)

Consolidated Statements of Stockholders' Equity for the nine months ended September 30, 2022 (unaudited) and year ended December 31, 2021

Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and September 30, 2021 (unaudited)

VISKASE COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(In Thousands, Except for Number of Shares)

	September 30, 2022		December 31, 2021
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$12,147	$9,876
Receivables, net	83,969	81,645
Inventories	101,425	93,070
Other current assets	41,022		44,307
Total current assets	238,563	228,898
Property, plant and equipment	400,740	409,499
Less accumulated depreciation	(267,552)		(262,372)
Property, plant and equipment, net	133,188	147,127
Right of use assets	23,999	27,964
Other assets, net	22,669	18,973
Intangible assets	15,794	19,531
Goodw ill	2,959	3,373
Deferred income taxes	24,124		25,235
Total Assets	$461,296	$471,101
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$36,500	$23,500
Accounts payable	38,719	35,045
Accrued liabilities	32,977	34,067
Short-term portion lease liabilities	4,682		5,196
Total current liabilities	112,878	97,808
Long-term debt, net of current maturities	126,218	131,821
Long-term liabilities	6,893	7,380
Accrued employee benefits	48,120	54,616
Deferred income taxes	1,808	2,081
Long-term lease liabilities	22,325	25,919
Stockholders' equity:
Common stock, $0.01 par value; 103,995,935 shares issued and
103,190,665 outstanding	1,040	1,040
Paid in capital	182,341	182,343
Retained earnings	42,839	42,938
Less 805,270 treasury shares, at cost	(298)	(298)
Accumulated other comprehensive loss	(81,796)		(73,639)
Total Viskase stockholders' equity	144,126	152,384
Deficit attributable to non-controlling interest	(1,072)		(908)
Total stockholders' equity	143,054		151,476
Total Liabilities and Stockholders' Equity	$461,296	$471,101

VISKASE COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands)

(Unaudited)

	3 Months	3 Months	9 Months	9 Months
	Ended	Ended	Ended	Ended
	September	September	September	September
	30,	2022	30,	2021	30,	2022	30,	2021
NET SALES	$110,313	$103,904	$321,759	$310,544
Cost of sales	92,141	85,950	263,368	253,427
GROSS MARGIN	18,172	17,954	58,391		57,117
Selling, general and administrative	13,262	11,298	38,386		34,617
Amortization of intangibles		383		438		1,207		1,328
Asset impairment		27		-		27		-
Restructuring expense		-		436		-		436
OPERATING INCOME		4,500		5,782	18,771		20,736
Interest expense		2,245		1,600		5,023		4,874
Other expense, net		5,597		1,197	10,883		8,515
INCOME BEFORE INCOME TAXES		(3,342)		2,985		2,865		7,347
Income tax provision		57		1,800		3,129		5,133
NET (LOSS) INCOME	($3,399)	$1,185		($264)		$2,214
Less: net loss attributable to noncontrolling interests		(49)		(42)		(164)		(111)
Net (loss) income attributable to Viskase Companies, Inc	($3,350)	$1,227		($100)		$2,325

VISKASE COMPANIES INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In Thousands)

(Unaudited)

	Ended		Ended		Ended		Ended
	September		September		September		September
	30,	2022		30,	2021		30,	2022		30,	2021
Net (loss) income	($3,399)	$1,185			($264)			$2,214
Other comprehensive income, net of tax
Pension liability adjustment		393			410			909			1,121
Foreign currency translation adjustment		(4,288)			(4,649)			(9,067)			(4,427)
Other comprehensive loss, net of tax		(3,895)			(4,239)			(8,158)			(3,306)
Comprehensive loss	($7,294)	($3,054)	($8,422)	($1,092)
Less: comprehensive loss attributable to noncontrolling interests		(49)			(42)			(164)			(111)
Net comprehensive loss attributable to Viskase Companies, Inc		(7,245)			(3,012)			(8,258)			(981)