Attached files
EXHIBIT 99.1
NEWS RELEASE March 31, 2011
FLEXIBLE SOLUTIONS ANNOUNCES FULL YEAR, 2010 FINANCIAL RESULTS
Conference call is scheduled for April 1, 2011. See the time and dial in
number below.
VICTORIA, BRITISH COLUMBIA, Mar 31, 2011 - FLEXIBLE SOLUTIONS INTERNATIONAL,
INC. (NYSE Amex: FSI, FRANKFURT: FXT), a developer and manufacturer of
biodegradable and environmentally safe, water and energy conservation
technology, as well as anti-scalant and crop nutrient enhancement products,
today announces financial results for the full year ended December 31, 2010.
Mr. Daniel B. O'Brien, CEO, states, "We are very pleased to announce record
revenue, significantly higher than even 2008, before the recession slowed our
growth."
o Sales for the full year 2010 were $11,491,401, up 17%, when compared to
$9,783,496 for full year 2009. The result was an after tax GAAP accounting
net loss of $0.01 per weighted average share compared net loss of $0.05
per weighted average share in full year 2009.
o Non-GAAP operating cash flow: (for details see table below). For the 12
months ending Dec. 31, 2010 net income (loss) reflects $538,029 of
non-cash charges, net Income Taxes of $690,180 and New Factory
Construction Costs of $870,236 (total =$2,098,445). When non-cash charges,
income tax and other items, not related to current operations of the
Company, are removed, the Company shows positive operating cash flow of
$1,908,365 or $0.14 per share. This compares with 2009 operating cash flow
of $956,322, or $0.07 per share.
o FSI's NanoChem Division (a U.S. division) had significant taxable revenue
in 2010, resulting in $770,180 income tax paid compared to $394,983 in
2009. At the same time expensing of certain construction costs from the
biomass factory in Canada resulted in a loss carry forward for that
division. These expenses will be very valuable to the Canadian division in
the near future, to reduce taxable revenue as the biomass factory in
Alberta comes on line.
o The biomass factory is very close to achieving commercial levels of
production. We hope to announce this milestone in the second quarter and
begin providing naturally sourced, polyaspartic acid to our current and
future customers.
The NanoChem division continues to be the dominant source of revenue and cash
flow for the Company. New opportunities continue to unfold in detergent, oil
field extraction and fertilizer use to further increase sales in this division.
In past years, the NanoChem Division sales have been less volatile quarter over
quarter than FSI's other divisions. However, due to increasing sales into
agriculture, seasonality may be more apparent in future quarters. Mr. O'Brien
continues, "I want to stress how hard our employees have worked as FSI survived
the recession and returned to impressive levels of growth. Processes have been
improved, our aspartic acid factory reached completion and new products have
been developed that will drive our growth for years to come. I look forward to
reporting more record quarters and years to the shareholders as well as the
achievement of other important milestones."
More below
Conference call
** CEO, Dan O'Brien has scheduled a conference call for 11:00 am EST, 8:00 am
PST, Friday April 1, 2011 to discuss the financials. To attend this call, dial
1-877-941-2333 (or 1-480-629-9723). The conference call title, `Fourth Quarter
Financials' may be requested **
The above information and following table contain supplemental information
regarding income and cash flow from operations for the 3 & 12 months
respectively ended Dec. 31, 2010 and 2009. Adjustments to exclude depreciation,
stock option expenses and one time charges are given. This financial information
is a Non-GAAP financial measure as defined by SEC regulation G. The GAAP
financial measure most directly comparable is net income. The reconciliation of
each of the Non-GAAP financial measures is as follows:
FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
Consolidated Statement of Operations
For 3 & 12 Months Ended Dec. 31 (12 Months Operating Cash Flow)
(12 month audited / 3 month unaudited)
--------------------------------------------------------------------------------
3 and 12 month revenue ended
Dec. 31
2010 2009
------------------------------
3 month 3 month
revenue
------------------------------
Revenue $ 2,596,082 $ 2,402,195
------------------------------
12 month
revenue
------------------------------
12 month Revenue $ 11,491,401 $ 9,783,496
Net income (loss) GAAP $ (190,080) $ (743,442)
Net income (loss) per share GAAP $ (0.01) $ (0.05)
Net income (loss) Excludes "net income tax as
indicated and as listed below" NON-GAAP $ 500,100 a $ (467,459)a
--------------------------------------------------
--------------------------------------------------------------------------------
Net income (loss) per share excluding "income
tax" NON-GAAP $ 0.04 a $ (0.03)a
12 month weighted average shares used in
computing per share amounts - basic GAAP $ 13,962,567 $14,020,375
------------------------------
12 month Operating Cash Flow
The following calculations begin with: Net ended Dec. 31
income (loss) GAAP
------------------------------
Operating cash flow (12 month). NON-GAAP -
Excludes: a and b as indicated and as listed
below $ 1,038,129 a,b $ 131,859a,b
Operating cash flow (12 month). NON-GAAP - $1 ,908,365 $ 956,322
Excludes: a.b and c as indicated and as listed a,b,c a,b,c
below
Operating Cash flow per share (12 months) -
basic. NON-GAAP - Excludes: items "a,b and c" as $ 0.14 $ 0.07 a,b,c
indicated and as listed below. a,b,c
Non-cash Adjustments (as per 12 month Statement $ 538,029 b $599,317 b
of Cash Flow)
Adjustments - other (as listed below) $ 1,560,416 a,c $1,100,446a,c
12 month basic weighted average shares used in
computing per share amounts - basic GAAP 13,962,567 14,020,375
--------------------------------------------------------------------------------
Notes: certain items not related to "operations" of the Company have been
excluded as follows.
a) NON-GAAP- "income tax (Net Income Tax: 2010 =$690,180, 2009 = $275,983)
b) NON-GAAP- Non-cash Adjustments for 2010 and 2009, "depreciation, stock
compensation expenses, write down of investment and inventory, loss on sale
of equipment, interest expense, other expenses, and shares for service (see
- Consolidated Statement of Cash Flow).
c) NON-GAAP- Other Non-operating adjustments - add "New factory construction
costs (2010 = $870,236, 2009 =$824,463), deduct interest income (interest
income: 2010 = $0, 2009 = $0) which are unrelated to the "current
operations" of the Company.
Safe Harbor Provision
The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor"
for forward-looking statements. Certain of the statements contained herein,
which are not historical facts, are forward looking statement with respect to
events, the occurrence of which involve risks and uncertainties. These
forward-looking statements may be impacted, either positively or negatively, by
various factors. Information concerning potential factors that could affect the
company is detailed from time to time in the company's reports filed with the
Securities and Exchange Commission.
Flexible Solutions International
615 Discovery Street, Victoria, BC V8T 5G4 CANADA
Company Contacts
Flexible Solutions International - Head Office
Jason Bloom
Tel: 250-477-9969
Tel: 800.661.3560
Email: Info@flexiblesolutions.com
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