Attached files
EXHIBIT 99.1
NEWS RELEASE March 29, 2012
FLEXIBLE SOLUTIONS ANNOUNCES FULL YEAR, 2011 FINANCIAL RESULTS Conference
call is scheduled for March 30, 2012. See the time and dial in number below.
VICTORIA, BRITISH COLUMBIA, Mar 29, 2012 - FLEXIBLE SOLUTIONS INTERNATIONAL,
INC. (NYSE Amex: FSI, FRANKFURT: FXT), is the developer and manufacturer of
biodegradable polymers for oil extraction, detergent ingredients and water
treatment as well as crop nutrient availability chemistry. Flexible Solutions
also manufactures biodegradable and environmentally safe water and energy
conservation technologies. Today the Company announces financial results for the
full year ended December 31, 2011.
Mr. Daniel B. O'Brien, CEO, states, "We are very pleased to announce record
revenue. 2011 revenue was 35% higher than revenue from the 2010 period and
revenue growth is expected to continue in 2012 at a rate of 20 to 30 percent.
Cash flow from operations increased by 50% in 2011. This allowed the Company to
expand its working capital through lines of credit at very attractive rates."
o Sales for the full year 2011 were $15,518,635, up 35%, when compared
to $11,491,401 for full year 2010. The result was an after tax GAAP
accounting net income of $182,990, or $0.01 per weighted average
share, compared to an accounting net loss of $190,080, or $0.01 per
weighted average share in full year 2010.
o Non-GAAP operating cash flow: (for details see the following table).
For the 12 months ending Dec. 31, 2011 net income (loss) reflects
$586,196 of non-cash charges, net Income Taxes of $1,125,632 and New
Factory Construction Costs of $895,768. 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
$2,790,427 or $0.21 per share. This compares with 2010 operating cash
flow of $1,908,365, or $0.14 per share.
o FSI's NanoChem Division (a U.S. division) had significant taxable
revenue in 2011, resulting in $1,125,632 of net income tax expensed
compared to $690,180 in 2010. 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, which will
reduce taxable revenue as the biomass factory in Alberta comes on
line.
The NanoChem division continues to be the dominant source of revenue and cash
flow for the Company. New opportunities continue to unfold in detergent, water
treatment, oil field extraction and agricultural use to further increase sales
in this division. In past years, the NanoChem Division sales have been less
volatile quarter to quarter. However, due to increasing sales to agriculture,
revenue seasonality may be more apparent.
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
along with other important milestones."
Conference call
** CEO, Dan O'Brien has scheduled a conference call for 11:00am EST, 8:00am PST,
Friday March 30, to discuss the financials. To attend this call, dial
1-877-941-0844 (or 1-480-629-9835). The conference call title, `Fourth Quarter
Financials' maybe 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, 2011 and 2010. 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:
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FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
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Consolidated Statement of Operations
For 3 & 12 Months Ended Dec. 31 (12 Months Operating Cash Flow)
(12 month audited / 3 month unaudited)
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3 and 12 month revenue ended
Dec. 31
2011 2010
------------------------------
3 month 3 month revenue
-------
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Revenue $ 3,369,898 $ 2,596,082
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12 month revenue
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12 month
Revenue $ 15,518,635 $ 11,491,401
Net income (loss) GAAP $ 182,990 $ (190,080)
Net income (loss) per share GAAP $ 0.01 $ (0.01)
12 month weighted average shares used in 13,272,049 13,962,567
computing per share amounts - basic GAAP
------------------------------
12 month Operating Cash Flow
The following calculations begin with: Net ended Dec. 31
income (loss) GAAP
------------------------------
Operating cash flow (12 month). NON-GAAP - $1,894,818 a,b $1,038,129 a,b
Excludes: a and b as indicated and as listed
below
Operating cash flow (12 month). NON-GAAP - $2,790,427 a,b,c $1,908,365 a,b,c
Excludes: a.b and c as indicated and as listed
below
Operating Cash flow per share (12 months) -
basic. NON-GAAP - Excludes: items "a,b and c" $ 0.21 a,b,c $ 0.14 a,b,c
as indicated and as listed below.
Non-cash Adjustments (as per 12 month Statement $ 586,196 b $ 538,029 b
of Cash Flow)
Adjustments - other (as listed below) $2,021,241 a,c $1,560,416 a,c
12 month basic weighted average shares used in 13,272,049 13,962,567
computing per share amounts - basic GAAP
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Notes: certain items not related to "operations" of the Company have been
excluded as follows.
a) NON-GAAP- "income tax (Net Income Tax: 2011 = $1,125,632, 2010 = $690,180)
b) NON-GAAP- Non-cash Adjustments for 2011 and 2010, "depreciation, stock
compensation expenses, write down of investment and inventory, loss on sale of
equipment, other expenses, and shares for service (see - Consolidated Statement
of Cash Flow).
c) NON-GAAP- Other Non-operating adjustments - add "New factory construction
costs (2011 = $895,768, 2010 = $870,236), deduct interest income (interest
income: 2011 = $159, 2010 = $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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If you have received this news release by mistake or if you would like to be
removed from our update list please reply to: laura@flxiblesolutions.com To find
out more information about Flexible Solutions and our products, please visit
www.flexiblesolutions.com
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