Viskase : Quarterly Report for the Quarter ended June 30, 2023

June 30, 2023

CONSOLIDATED FINANCIAL STATEMENTS OF VISKASE COMPANIES, INC. AND SUBSIDIARIES

1. Financial Statements:

Consolidated Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022

Consolidated Statements of Operations for the three and six months ended June 30, 2023 and June 30, 2022 (unaudited)

Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2023 and June 30, 2022 (unaudited)

Consolidated Statements of Stockholders' Equity for the six months ended June 30, 2023 (unaudited) and year ended December 31, 2022

Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and June 30, 2022 (unaudited)

VISKASE COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(In Thousands, Except for Number of Shares)

	June 30, 2023	December 31, 2022
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$7,407	$8,783
Receivables, net	89,526	87,584
Inventories	110,864	103,172
Other current assets	41,751	40,152
Total current assets	249,548	239,691
Property, plant and equipment	427,816	416,628
Less accumulated depreciation	(290,240)	(274,781)
Property, plant and equipment, net	137,576	141,847
Right of use assets	23,442	24,520
Other assets, net	16,450	23,258
Intangible assets	15,968	16,808
Goodw ill	3,266	3,207
Deferred income taxes	22,333	22,261
Total Assets	$468,583	$471,592
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$32,855	$39,375
Accounts payable	34,250	43,377
Accrued liabilities	39,756	31,491
Short-term portion lease liabilities	4,838	4,851
Total current liabilities	111,699	119,094
Long-term debt, net of current maturities	117,120	122,521
Long-term liabilities	564	7,383
Accrued employee benefits	35,973	36,211
Deferred income taxes	3,405	3,405
Long-term lease liabilities	21,630	22,693
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	58,004	45,467
Less 805,270 treasury shares, at cost	(298)	(298)
Accumulated other comprehensive loss	(61,738)	(67,114)
Total Viskase stockholders' equity	179,351	161,438
Deficit attributable to non-controlling interest	(1,159)	(1,153)
Total stockholders' equity	178,192	160,285
Total Liabilities and Stockholders' Equity	$468,583	$471,592

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

(Unaudited)

	3 Months	3 Months	6 Months	6 Months
	Ended	Ended	Ended	Ended
	June	June	June	June
	30, 2023	30,	2022	30, 2023	30,	2022
NET SALES	$117,962	$109,825	$235,809	$211,446
Cost of sales	90,248		90,199	181,142	171,227
GROSS MARGIN	27,714		19,626	54,667		40,219
Selling, general and administrative	14,849		13,000	28,411		25,124
Amortization of intangibles	404		404	804		824
Asset impairment charge	18		0	18		0
OPERATING INCOME	12,443		6,222	25,434		14,271
Interest expense	2,988		1,620	6,164		2,778
Other expense (income), net	(1,166)		5,904	5,496		5,286
INCOME BEFORE INCOME TAXES	10,621		(1,302)	13,774		6,207
Income tax (benefit) provision	5,445		1,640	1,243		3,072
NET INCOME	$5,176	($2,942)	$12,531		$3,135
Less: income (loss) attributable to noncontrolling interests	(35)		(78)	(7)		(115)
Net income attributable to Viskase Companies, Inc	$5,211	($2,864)	$12,538		$3,250

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

(Unaudited)

	3 Months	3 Months	6 Months	6 Months
	Ended	Ended	Ended	Ended
	June	June	June	June
	30, 2023	30,	2022	30, 2023	30,	2022
Net income	$5,176	($2,942)	$12,531		$3,135
Other comprehensive income (loss), net of tax
Pension liability adjustment	1,577		242	1,792		516
Foreign currency translation adjustment	471		(4,145)	3,585		(4,779)
Other comprehensive income (loss), net of tax	2,048		(3,903)	5,377		(4,263)
Comprehensive income	$7,224	($6,845)	$17,908	($1,128)
Less: comprehensive income (loss) attributable to
noncontrolling interests	(35)		(78)	(7)		(115)
Net comprehensive income attributable to Viskase
Companies, Inc	$7,259		(6,767)	$17,915	($1,013)