Viskase : Quarterly Report for the Quarter Ended September 30, 2021

September 30, 2021

CONSOLIDATED FINANCIAL STATEMENTS OF VISKASE COMPANIES, INC. AND SUBSIDIARIES

1. Financial Statements:

Consolidated Balance Sheets as of September 30, 2021 (unaudited) and December 31, 2020

Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and September 30, 2020 (unaudited)

Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2021 and September 30, 2020 (unaudited)

Consolidated Statements of Stockholders' Equity for the for the nine months ended September 30, 2021 (unaudited) and year ended December 31, 2020

Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and September 30, 2020 (unaudited)

VISKASE COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(In Thousands, Except for Number of Shares)

	September 30, 2021		December 31, 2020
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$10,312	$15,848
Receivables, net	87,464	87,946
Inventories	95,200	89,254
Other current assets	43,203		46,649
Total current assets	236,179	239,697
Property, plant and equipment	404,841	405,199
Less accumulated depreciation	(259,576)		(245,162)
Property, plant and equipment, net	145,265	160,037
Right of use assets	28,721	31,700
Other assets, net	19,054	15,899
Intangible assets	20,339	22,787
Goodwill	3,436	3,620
Deferred income taxes	28,862		29,383
Total Assets	$481,856	$503,123
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$20,694	$12,134
Accounts payable	33,693	35,067
Accrued liabilities	35,869	42,176
Short-term portion lease liabilities	5,328		5,559
Total current liabilities	95,584	94,936
Long-term debt, net of current maturities	133,462	139,237
Long-term liabilities	6,876	6,906
Accrued employee benefits	66,785	78,643
Deferred income taxes	3,388	3,876
Long-term lease liabilities	27,032	29,705
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	182,343	182,343
Retained earnings	48,482	46,157
Less 805,270 treasury shares, at cost	(298)	(298)
Accumulated other comprehensive loss	(81,956)		(78,651)
Total Viskase stockholders' equity	149,611	150,591
Deficit attributable to non-controlling interest	(882)		(771)
Total stockholders' equity	148,729		149,820
Total Liabilities and Stockholders' Equity	$481,856		$503,123

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, 2021		30, 2020		30, 2021		30, 2020
NET SALES	$103,904	$104,966	$310,544	$306,596
Cost of sales	85,950		84,231		253,427		243,590
GROSS MARGIN	17,954	20,735	57,117	63,006
Selling, general and administrative	11,298	12,478	34,617	36,630
Amortization of intangibles	438	428	1,328	1,221
Asset impairment	-	323	-	323
Restructuring expense	436		-		436		-
OPERATING INCOME	5,782	7,506	20,736	24,832
Interest income	-	(2)	-	(16)
Interest expense	1,600	3,044	4,874	10,099
Other expense, net	1,197		69		8,515		9,403
INCOME BEFORE INCOME TAXES	2,985	4,395	7,347	5,346
Income tax provision	1,800		951		5,133		2,926
NET INCOME	$1,185	$3,444	$2,214		$2,420
Less: net loss attributable to noncontrolling interests	(42)		(58)		(111)		(134)
Net income attributable to Viskase Companies, Inc	$1,227		$3,502		$2,325		$2,554

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

(Unaudited)

	3 Months		3 Months		9 Months		9 Months
	Ended		Ended		Ended		Ended
	September		September		September		September
	30, 2021		30, 2020		30, 2021		30, 2020
Net income	$1,185	$3,444	$2,214	$2,420
Other comprehensive income, net of tax
Pension liability adjustment	410	226	1,121	724
Foreign currency translation adjustment	(4,649)		1,654		(4,427)		1,532
Other comprehensive (loss) income, net of tax	(4,239)	1,880	(3,306)	2,256
Comprehensive (loss) income	($3,054)		$5,324		($1,092)		$4,676
Less: comprehensive loss attributable to noncontrolling interests	(42)		(58)		(111)		(134)
Net comprehensive (loss) income attributable to Viskase Companies, Inc	(3,012)		5,382		(981)		4,810