Financial Performance - Net revenue for the three-month period ended September 30, 2022, was $22,862,795, representing a 29% increase from $17,753,669 in the same period of 2021[141]. - Gross profit for the same period increased by 51% to $14,457,101, compared to $9,555,972 in the prior year[141]. - Income before taxes for the three-month period was $11,978,347, a 68% increase from $7,143,898 in the same period of 2021[141]. - Net income for the three-month period was $8,967,380, reflecting a 66% increase from $5,393,615 in the prior year[141]. - The company reported a net revenue of $47,505,246 for the nine-month period ended September 30, 2022, a 39% increase from $34,160,920 in the same period of 2021[166]. - The income from operations for the nine-month period ended September 30, 2022, was $16,986,668, a significant increase of 1085% from $1,433,742 in the same period of 2021[166]. - The net income for the nine-month period ended September 30, 2022, was $12,749,228, compared to $188,271 in the same period of 2021, reflecting a 6672% increase[166]. Segment Performance - The bromine segment generated net revenue of $19,845,773, a 33% increase from $14,913,004, driven by a 6% increase in tonnes sold and a 26% rise in average selling price[143]. - The average selling price of bromine rose to $7,474 in Q3 2022 from $5,938 in Q3 2021[143]. - Crude salt segment net revenue was $2,934,707, up 3% from $2,840,665, primarily due to a 3% increase in tonnes sold[143]. - Net revenue from the bromine segment increased to $41,865,598 for the nine-month period ended September 30, 2022, a 41% increase from $29,749,432 in the same period in 2021[169]. - Net revenue from the crude salt segment rose to $5,506,655 for the nine-month period ended September 30, 2022, reflecting a 25% increase from $4,411,488 in the same period in 2021[170]. Profitability Metrics - The gross profit for the three-month period ended September 30, 2022, was $14,457,101, representing 63% of net revenue, up from $9,555,972 or 54% in the same period of 2021[153]. - The gross profit margin for the crude salt segment increased to 64% in the three-month period ended September 30, 2022, from 44% in the same period of 2021[156]. - Gross profit for the nine-month period ended September 30, 2022, was $26,448,464, or 56% of net revenue, compared to $14,866,060, or 44% of net revenue for the same period in 2021[178]. - The gross profit margin for the bromine segment increased to 57% for the nine-month period ended September 30, 2022, up from 46% in the same period in 2021[180]. Operational Efficiency - Direct labor and factory overheads during plant shutdown increased by 55% to $1,910,318 compared to $1,229,058 in the previous year[141]. - The income from operations for the bromine segment was $10,552,343 for the three-month period ended September 30, 2022, compared to $6,909,542 in the same period in 2021[160]. - The utilization ratio for bromine production increased to 34% for the three-month period ended September 30, 2022, from 32% in the same period of 2021[150]. Cash Flow and Financial Position - Cash and cash equivalents as of September 30, 2022, were $92,638,278, a decrease of $3,128,985 from $95,767,263 as of December 31, 2021[189]. - Cash flow provided by operating activities for the nine-month period ended September 30, 2022, was approximately $37 million, up from $11.1 million in the same period of 2021[191]. - Accounts receivable decreased by $4,530,156 from December 31, 2021, to September 30, 2022, with total accounts receivable at $9,995,651 as of September 30, 2022[193]. - Inventory decreased by $87,150 from December 31, 2021, to September 30, 2022, with total inventory at $603,961 as of September 30, 2022[196]. - Net cash used in investing activities for the nine-month period ended September 30, 2022, was approximately $33.2 million, significantly higher than $8.56 million in the same period of 2021[196]. - Available cash as of September 30, 2022, was approximately $92.64 million, all in highly liquid current deposits[197]. Strategic Outlook - The company does not anticipate paying cash dividends in the foreseeable future, focusing instead on operational needs and obligations[197]. - The company plans to continue focusing on the activities of SCHC, SYCI, SHSI, and DCHC as these segments expand within the Chinese market[197]. - There are risks associated with potential acquisitions, including integration challenges and increased competition for acquisition candidates[198]. - The company has no significant contractual obligations not fully recorded on its consolidated balance sheets as of September 30, 2022[199]. Foreign Currency Impact - The company reported a negative foreign currency translation adjustment of $30,774,686 for the nine months ending September 30, 2022, compared to a positive adjustment of $1,877,097 in the previous year[188].
Gulf Resources(GURE) - 2022 Q3 - Quarterly Report