Attached files
EXHIBIT 99.1
NEWS RELEASE
May 14, 2020
FSI ANNOUNCES First Quarter, 2020 FINANCIAL RESULTS
Conference call is scheduled for Friday May 15th , 11:00am Eastern time, 8:00am
Pacific Time
See dial in number and explanation below
VICTORIA, BRITISH COLUMBIA, May 14, 2020 - 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
first quarter (Q1) ended March 31, 2020.
Mr. Daniel B. O'Brien, CEO, states, "The first quarter of 2020 has been a
difficult time for many companies and millions of people. The Company is
satisfied with our financial performance considering the covid crisis." Mr.
O'Brien continues, "We remain in full production and are proud that our
agriculture and cleaning product ingredients are aiding in the struggle against
the disease."
o Sales in the first quarter (Q1) were $8,429,486, down less than 1%
when compared to sales of $8,471,476 in the corresponding period a
year ago. The financials show a Q1, 2020 net profit of $1,264,675, or
$0.10 per share, compared to a net profit of $1,011,150, or $0.09 per
share, in Q1, 2019.
o Basic weighted average shares used in computing earnings per share
amounts were 12,237,798 and 11,705,613 for Q1, 2020 and Q1, 2019
respectively.
o Non-GAAP operating cash flow: For the 3 months ending March 31, 2020,
net income reflects $177,640 of non-cash charges (depreciation, stock
option expenses), as well as gain (loss) on disposition (and
involuntary disposition) of equipment, gain on investment, interest
expense, interest income, write down of inventory, and income tax; Net
income attributable to non-controlling interests. These are items not
related to operating or current operating activities. When these items
are removed, the Company shows operating cash flow of $1,778,785, or
$0.15 per share. This compares with operating cash flow of $1,300,360,
or $0.11 per share, in the corresponding 3 months of 2019 (see the
table that follows for details of these calculations).
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.
Conference call
A conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific
Time, on Friday May 15th . CEO, Dan O'Brien will be presenting and answering
questions on the conference call. To participate in this call please dial
800-309-1256 (or 1 856-344-9308 ) just prior to the scheduled call time.
Participant code 302299 will be requested. The conference call title, "FSI First
Quarter 2020 Financial Results," may be requested.
The above information and following table contain supplemental information
regarding income and cash flow from operations for the period ended March 31,
2020. 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 Months Ended March 31 (3 Months Operating Cash Flow)
(Unaudited)
3 months ended March 31
2020 2019
---------------------------
Revenue $ 8,429,486 $ 8,471,476
Income (loss) before income tax - GAAP $ 1,766,678 $ 1,293,495
Provision for Income tax (expense)/recovery $ (434,988) $ (253,081)
- GAAP
Net income (loss)- GAAP $ 1,264,675 a $ 1,011,150 a
Net income (loss) per common share - basic $ 0.10 a $ 0.09 a
- GAAP
3 month weighted average shares used in
computing per share amounts - basic - GAAP 12,237,98 11,705,613
3 Month Operating Cash Flow
Ended September 30
------------------------------
Operating Cash flow (3 months). NON-GAAP $ 1,178,785 b,c $1,300,360 b,c
Operating Cash flow per share excluding $ 0.15 b,c $ 0.11 b,c
non-operating items and items not related
to current operations (9 months) - basic
NON-GAAP
Non-cash Adjustments (3 month) GAAP $ 177,640 d $ 154,026 d
Shares (3 month basic weighted average) 12,237,798 11,705,613
used in computing per share amounts -
basic GAAP
Notes: certain items not related to "operations" of the Company have been
excluded from net ----- income as follows.
a) Non-GAAP -:: Flexible Solutions International purchased 65% of ENP in 4th
quarter, 2018 (October 2018). Therefore 3 month Net Income is also reduced
by the dollar amount of non-controlling interest in ENP(see the
financials).
b) Non-GAAP - amounts exclude certain cash and non-cash items: depreciation
and stock compensation expense (2020 = $177,640, 2019 = $154,026), interest
expense (2020 = $101,425, 2019 = $129,007), interest income (2020 = $414,
2019 = $16,252), gain on investment (2020 = $199,529, 2019 = $230,652), net
gain/(loss) on involuntary disposition of equipment (2020 = N/A, 2019 =
N/A), write down of inventory (2019 = N/A, 2018 = N/A), deferred income tax
recovery (2020 = N/A, 2019 = $125,999), Income tax (2020 =$434,988, 2019 =
$379,080), and Net income attributable to non-controlling interests. See
the financial statements for all adjustments.
c) The revenue and gain from the 50% investment in the private
Florida LLC announced in January 2019 is not treated as revenue or profit
from operations by Flexible Solutions given the Company only purchased 50%
of the LLC. The profit is treated as investment income and therefore occurs
below Operating income in the Statement of Operations. As a result the
gains from all investments, including that of the Florida LLC, are removed
from the calculation to arrive at Operating Cash Flow.
d) Non-GAAP - amounts represent depreciation and stock compensation expense.
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
6001 54th Ave, Taber, Alberta, CANADA T1G 1X4
Company Contacts
Jason Bloom
Toll Free: 800 661 3560
Fax: 403 223 2905
E-mail: info@flexiblesolutions.com
If you have received this news release by mistake or if you would like to be
removed from our update list please reply to: info@flexiblesolutions.com
To find out more information about Flexible Solutions and our products, please
visit www.flexiblesolutions.com.
