MARCH 31, 2017


Flexible Solutions Announces Full Year, 2016 Financial Results


The Conference call is scheduled for April 3, 2017. See the time and dial in number below.



VICTORIA, BRITISH COLUMBIA, March 31, 2017 – 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 fourth quarter and full year ended December 31, 2016.


Mr. Dan O’Brien, CEO states, “The oil industry was dealing with unstable pricing during 2016 while our other major market vertical, agriculture, struggled with low and stable prices. It is a testimony to the hard work and skill of the FSI employee team that we attained some growth even with these headwinds. So far in 2017, oil prices have been more stable, allowing the industry to plan rather than react and agriculture is more comfortable with corn at $3.50. We think this may allow FSI to see significant growth for full year 2017.”    




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 over quarter, however due to increasing sales to agriculture, revenue seasonality may become larger. Also new sales opportunities have appeared in the WaterSavrTM division as a result of the ongoing drought in the southern United States. Many municipalities are water stressed and are seeking ways to conserve water.  


 Conference call


** CEO, Dan O’Brien has scheduled a conference call for 11:00am EST, 8:00am PST, Monday April 3, 2017 to discuss the financials. To attend this call, dial 1-888-811-5427 (or 1-913-981-5529). The conference call title, ‘Full Year 2016 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, 2016 and 2015. 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:


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




3 month

3 month revenue

Revenue NON-GAAP

$  4,083,162  

$   3,730,522       





12 month revenue

12 month



Revenue GAAP

$ 16,246,014

$ 15,898,547

Net income (loss) GAAP

$   1,793,334 a 

$   1,504,696  a 

Net income (loss) per share GAAP

$            0.16 a

$            0.11  a




12 month weighted average shares used in computing per share amounts – basic GAAP




The following calculations begin with: Net income (loss). GAAP

12 month Operating Cash Flow

ended Dec. 31

Operating cash flow (12 month). NON-GAAP.

$  3,691,711 c

   $   3,010,917 b




Operating Cash flow per share (12 months) – basic. NON-GAAP

$           0.32 c        

   $            0.23 b

Net Non-cash Adjustments (as per Consolidated Statement of Cash Flow)


$     925,276 d


   $      698,607 d



12 month basic weighted average shares used in computing per share amounts – basic. GAAP




Notes: certain items not related to “operations” of the Company have been excluded as follows.

a) Significant information. Expensing of the Alberta factory against US income began in 2013. 

b) NON-GAAP - amount excludes certain non-cash items: depreciation($578,338), stock compensation expense($82,112), deferred income tax expense( $38,157), interest income($2,963), loss on sale of equipment($45,249), and income tax expense($765,328). These are 12 month numbers as per the financials.

c) NON-GAAP - amount excludes certain non-cash items: depreciation($540,079), stock compensation expense($66,318), deferred income expense($303,793), interest income($2,184), gain on sale of equipment($6,848), loss on investment($15,086) and income tax expense($982,133). These are 12 month numbers as per the financials.

d) NON-GAAP amount represents: depreciation, stock based compensation, deferred income (expense) tax recovery, and loss on investment per the Consolidated Statement of Cash Flows.

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