15 May 08

FLEXIBLE SOLUTIONS ANNOUNCES FIRST QUARTER, 2008 FINANCIAL RESULTS

Conference call scheduled for Friday May 16th, 11:00am Eastern time, 8:00am Pacific Time

See dial in number below

VICTORIA, BRITISH COLUMBIA, May 15, 2008 – FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (AMEX: FSI, FRANKFURT: FXT), a developer and manufacturer of biodegradable and environmentally safe, water and energy conservation technology, as well as anti-scalant and agricultural nutrient enhancement products, today announces financial results for the first quarter (Q1) ended March 31, 2008.

Mr. Daniel B. O’Brien, CEO, states, “This was an outstanding quarter for FSI. Operating revenue was up more than 50% year over year resulting in significantly higher cash flow. We anticipate near term quarters to show year over year revenue and cash flow growth as well.”

      

The NanoChem division continues to contribute substantially to sales and cash flow and, new opportunities to further increase sales in this division are emerging. Sales into crude oil extraction (as an anti-scalant), detergent (as a rinse cycle product) and agriculture (as a fertilizer enhancement product) were all up substantially. Severe weather, this year, in much of eastern Australia slowed the growth of WaterSavr. Heavy rains and flooding were the main reasons for the slowed growth. The swimming pool products division continues to discover opportunities due to high energy prices. Pool owners and operators are searching for affective means of reducing heating costs. Note that NanoChem sales are much less seasonal than those of our WaterSavr and Flexible Solutions Ltd (HeatSavr) divisions.

 

*CEO, Dan O’Brien, has scheduled a conference call for 11am EST, 8am PST, Friday May 16th to discuss first quarter financials. To participate, call 1 877 856 1961 (or 1 719 325 4754) just before the scheduled call time. The confirmation code 1102147 may be requested.* 

The above information and following table contains supplemental information regarding income from operations for the 3 months ended March 31, 2008 and 2007. 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 Mar. 31 (3 Months Cash Flow)

(Unaudited)

 

         

 

Three months ended Mar 31

2008

2007

Revenue

$3,498,636

$2,289,901

Net income (loss) GAAP

$   310,173

$   (24,215)

Net income (loss) per common share – basic. GAAP

$         0.02

$         0.00

Net income (loss) excluding items not related to operating or current operating activities - NON-GAAP

$   380,563 a              

$   (24,215)

Net income (loss) per common share excluding “Other item” – basic. NON-GAAP

$         0.03 a

$        0.00

3 month Operating Cash Flow

Operating Cash flow - NON-GAAP

$    517,344 b

$    227,230 c   

Operating Cash flow excluding non-operating item and items not related to current operations - basic NON-GAAP

$    670,303 d

$    227,230 c

Operating Cash flow per share excluding non-operating item and items not related to current operations - basic NON-GAAP

$          0.05 d

$          0.02 c   

Income tax recovery

$          0.00

$          0.00

Non-cash Adjustments

$    207,171 e

$    251,445 e

Weighted average shares used in computing per share amounts – basic. GAAP

 14,057,567

 13,240,377

a) Non-GAAP amounts exclude certain items not related to operations or current operating activities (Loss on sale of equipment of $29,026 and Write down of equipment $41,440). See Operating Cash Flow for other adjustments. 

b) Non-GAAP amounts exclude certain non-cash items (depreciation, stock option expense, and assigned interest expense totaling $207,323).

c) Non-GAAP amounts exclude certain non-cash items (depreciation and stock option expenses).

d) Non-GAAP amounts exclude certain non-cash items (depreciation, stock option expense, and assigned interest expense totaling $207,323) and items unrelated to current operating activities (new factory construction, loss on sale of equipment, and discarded inventory totaling $152,959).  

e) Amount represents depreciation, stock option expenses and assigned interest expense.