NEWS RELEASE
May 13, 2009
FSI ANNOUNCES FIRST QUARTER, 2010 FINANCIAL RESULTS
Conference call scheduled for Friday May. 14th, 11:00am Eastern time, 8:00am Pacific Time
See dial in number below
VICTORIA, BRITISH COLUMBIA, May 13, 2010 – FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex: FSI, FRANKFURT: FXT), is the developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients and crop nutrient availability chemistry, as well as biodegradable and environmentally safe water and energy conservation technologies. Today the Company announces financial results for the first quarter (Q1) ended March 31, 2010.
Mr. Daniel B. O’Brien, CEO, states, “This quarter was significant for the Company in demonstrating the continued strong turn around in both sales and profit since the first half of 2009. In particular, the 400% increase in non-GAAP operating cash flow shows that the Company is in good health and ready to take advantage of new opportunities. Quarter over quarter sales are expected to track higher for the rest of the year. Revenue forecasts will be updated at each financial reporting date.”
- Sales in the first quarter (Q1), were $3,384,846, up approximately 27% when compared to sales of $2,659,548, in the corresponding period a year ago. The result was a GAAP net profit of $515,673, or $0.04 per share, compared with a net loss of $133,151, or $0.01 per share, in Q1, 2009.
- Basic weighted average shares used in computing per share amounts in Q1 were 13,962,567 for 2010 and 14,062,567 for 2009.
- Non-GAAP operating cash flow: For the 3 months ending March 31, 2010, net income reflects $183,924 of non-cash charges (depreciation and stock option expenses) and income tax, as well as $230,225 in new factory development costs and interest expense. These items are either non-cash items or items not related to operations or current operating activities of the Company. When these items are removed, the Company shows operating cash flow of $929,822, or $0.07 per share. This compares with operating cash flow of $180,322, or $0.01 per share, in the corresponding 3 months of 2009 (see the table that follows for details of these calculations).
Mr. O’Brien continues, “FSI’s sugar to aspartic acid plant, in Alberta, is much closer to production. Production from the Alberta plant will allow FSI to supply the only renewably-based poly-aspartic acid in the world. This will allow access to customers who demand this level of environmentally sound behavior as well as insulating the company from future oil price shocks.”
The NanoChem division continues to contribute most of our sales and cash flow, and new opportunities are unfolding to further increase sales in this division. NanoChem sales have been less seasonal than those of our WaterSavr and Flexible Solutions Ltd divisions. This has lead to less volatility in total revenue figures quarter over quarter. However, in the future, Q1 and Q2 sales may be much larger than sales in Q3 and Q4. This is largely due to potential growth in agricultural product sales (sales which tend to occur largely in Q1 and Q2).
* CEO, Dan O’Brien has scheduled a conference call for 11:00am EST, 8:00am PST, Friday May 14th to discuss the financials.
Call 1-888-549-7880 (or 1-480-629-9867). The conference call title, “First Quarter Financials,” may be requested.*
(TABLE FOLLOWS)
The above information and following table contain supplemental information regarding income and cash flow from operations for the 3 months ended March 31, 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:
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
2010
2009
Revenue
$3,384,846
$ 2,659,548
Net income (loss) GAAP
$ 515,673
$ (133,229)
Net income (loss) per common share – basic. GAAP
$ 0.04
$ (0.01)
3 month weighted average shares used in computing per share amounts – basic. GAAP
13,962,567
14,157,567
3 month Operating Cash Flow
Ended March 31
Operating Cash flow (3months). NON-GAAP
$ 699,597 a
$ 33,146 b
Operating Cash flow excluding non-operating items and items not related to current operations (3 months). NON-GAAP
$ 929,822 c
$ 180,322 d
Operating Cash flow per share excluding non-operating items and items not related to current operations (3 months) – basic. NON-GAAP
$ 0.07 c
$ 0.1 d
Non-cash Adjustments (3 month)
$ 114,924 e
$ 166,375 f
Shares (3 month basic weighted average) used in computing per share amounts – basic GAAP
13,962,567
14,057,567
Notes: certain items not related to “operations” of the Company have been excluded from net income as follows.
a) Non-GAAP - amounts exclude certain non-cash items (depreciation and stock option expense totaling $114,924) and income tax ($69,000. See Operating Cash Flow for other adjustments.
b) Non-GAAP - amounts exclude certain non-cash items (depreciation and stock option expense totaling $166,375)
c) Non-GAAP - amounts exclude certain non-cash items (depreciation and stock option expense totaling $114,924), income tax ($69,000) as well as items unrelated to current operating activities (new factory construction and related Interest expense totaling $230,225).
d) Non-GAAP - amounts exclude certain non-cash items (depreciation and stock option expense totaling $166,375) as well as items unrelated to current operating activities (new factory construction and related Interest expense totaling $147,176).
e) Non-GAAP – amounts represent depreciation, stock option expense.
f) Non-GAAP – amounts represent depreciation, stock option 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
615 Discovery Street, Victoria, BC V8T 5G4 CANADA
Jason Bloom
Tel: 250 477 9969
Toll Free: 800 661 3560
Fax: 250 477 9912
E-mail: info@flexiblesolutions.com