News Release

November 14, 2012



Conference call scheduled for Thursday Nov. 15th, 11:00am Eastern time, 8:00am Pacific Time

See dial in number below

VICTORIA, BRITISH COLUMBIA, Nov 14, 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 Third Quarter (Q3) ended Sept. 30, 2012.

Mr. Daniel B. O’Brien, CEO, states, “Considering the performance of the global economy we are pleased with our financial progress. Much of Europe is in, or close to, recession and the United States is experiencing sluggish growth yet, so far this year, Flexible Solutions’ revenue remains positive.”

The NanoChem division continues to contribute most to our sales and cash flow and, new opportunities are unfolding to further increase sales in this division. In the future, first half sales may be larger than second half. This is due to predicted growth in agricultural product sales, sales which tend to be stronger during the first half of each year.



* CEO, Dan O’Brien has scheduled a conference call for 11:00am EST, 8:00am PST, Thursday November 15th to discuss the financials. Call 1-480-629-9835 (or 1-877-941-0844), just prior to the scheduled call time. The conference call title, “Third Quarter Financials,” may be requested. *

The above information and following table contains supplemental information regarding income and cash flow from operations for the 3 & 9 months respectively ended Sept 30, 2012 and 2011. Adjustments to exclude depreciation, stock option expenses, one time charges and certain other expenses 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 Months Ended Sept. 30 (9 Months Operating Cash Flow)



3 months ended Sept. 30







Net income (loss) GAAP  

     $  (458,085)

$    (92,293)

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

     $        (0.03)

$        (0.01)

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



9 month Operating Cash Flow

Ended Sept. 30

Operating Cash flow (9 months). NON-GAAP

     $1,164,841 a

$1,673,240 b

Operating Cash flow per share excluding non-operating items and items not related to current operations (9 months) – basic. NON-GAAP

     $         0.09 a

$         0.13 b

Non-cash Adjustments (9 month)

     $1,017,770 c  

$    370,111 c  

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



Notes: certain items, including items not related to operations or current operating activities of the Company, have been excluded from net income as follows:

a   NON-GAAP amount excludes certain non-cash items (depreciation and stock option expenses - $1,017,770), as well as interest income ($759), gain on sale of equipment ($2,217) and net income taxes charged ($861,468 – 10,000). This is a 9 month number as per financials.

b   NON-GAAP amount excludes certain non-cash items (depreciation and stock option expenses - $370,111), interest income ($53),  as well as net income taxes charged (of $882,634 - $20,000). This is a 9 month number as per financials.

c   NON-GAAP amount represents depreciation and stock option expenses.

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