EXHIBIT 99.1
FLEXIBLE SOLUTIONS
NEWS RELEASE April 01, 2013
FLEXIBLE SOLUTIONS ANNOUNCES FULL YEAR, 2012 FINANCIAL RESULTS
Conference call is scheduled for April 02, 2013. See the time and dial in
number below.
VICTORIA, BRITISH COLUMBIA, April 01, 2013 - 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
full year ended December 31, 2012.
Mr. Daniel B. O'Brien, CEO, states, "We are, once again, very pleased to
announce record revenue. 2012 revenue was 6% higher than revenue from the 2011
period and revenue growth is expected to continue in 2013. The economic
slow-down in Europe and the drought in North America both played a part in the
overall reduction in year over year revenue growth. The European slow down
reduced revenue from bio-detergents and the drought reduced the growth rate of
sales into the North American Agriculture market."
Mr. O'Brien continues, "The effects of last year's drought are still present in
2013. Our mid-west distribution has not taken up as much product in Q1 2013 as
in Q1 2012. Reasons for this include; more growers and dealers who choose just
in time purchases to conserve cash after last year as well as space and cash
constraints at the distribution level. FSI management will release the Q1
revenue number next week once it has been finalized, however, we are already
sure that Q1 revenue will be several hundred thousand dollars less than the year
earlier period. Conversations with our distribution network indicate that they
believe the sales not closed in Q1 will be made in Q2 and Q3 and strong growth
in the sector is still expected for full year 2013.
o Sales for the full year 2012 were $16,400,107, up 6%, when compared to
$15,518,635 for full year 2011. The result was an after tax GAAP
accounting net loss of $1,084,447, or $0.08 per weighted average
share, compared to an accounting net income of $182,990, or $0.01 per
weighted average share in full year 2011.
o Non-GAAP operating cash flow: (for details see the following table).
For the 12 months ending Dec. 31, 2012 net income (loss) reflects
$1,326,983 of non-cash charges, Income Taxes of $1,126,468, gain on
sale of equipment of $2,217, and interest income of $759. When
non-cash charge items, items not related to current operations of the
Company, are removed, the Company shows positive operating cash flow
of $1,326,983 or $0.10 per share. This compares with 2011 operating
cash flow of $1,894,659, or $0.14 per share.
o FSI shows a significantly higher depreciation expense in 2012 versus
2011, as a result of the commencement of depreciation of the Alberta
factory. However the depreciation expense did not reduce income tax
owed. The past and current factory construction and operation expenses
and the current depreciation expense taken against the biomass factory
in Alberta are potential accumulating assets (a loss- carry-forward)
for FSI since these expenses are not associated with, nor charged
against, the U.S. based NanoChem Division's revenue for income tax
purposes.
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 to quarter. However, due to increasing sales to agriculture,
revenue seasonality may become larger.
Conference call
** CEO, Dan O'Brien has scheduled a conference call for 11:00am EST, 8:00am PST,
Tuesday April 02, 2013 to discuss the financials. To attend this call, dial
1-877-941-0844 (or 1-480-629-9835). The conference call title, `Fourth Quarter
Financials' maybe requested **
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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, 2012 and 2011. 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 & 12 Months Ended Dec. 31 (12 Months Operating Cash Flow)
(12 month audited / 3 month unaudited)
3 and 12 month revenue ended
Dec. 31
2012 2011
------------------------------
3 month 3 month revenue
------- ------------------------------
Revenue $ 3,846,275 $3,369,898
------------------------------
12 month revenue
12 month ------------------------------
--------
Revenue $16,400,107 $15,518,635
Net income (loss) GAAP $(1,084,447)e $ 182,990 e
Net income (loss) per share GAAP $ (0.08) $ 0.01
12 month weighted average shares used in
computing per share amounts - basic GAAP 13,169,991 13,272,049
------------------------------
------------------------------
The following calculations begin with: Net 12 month Operating Cash Flow
income (loss) GAAP ended Dec. 31
------------------------------
Operating cash flow (12 month). NON-GAAP - $1,366,028 a $ 1,894,659 b, d
Excludes: item "a" as indicated and as listed
below
Operating Cash flow per share (12 months) - $ 0.10 a $ 0.14 b, d
basic. NON-GAAP - Excludes: item "a" as
indicated and as listed below.
Non-cash Adjustments (as per 12 month Statement $1,326,983 c $ 566,196 c
of Cash Flow)
12 month basic weighted average shares used in 13,169,991 13,272,049
computing per share amounts - basic GAAP
--------------------------------------------------------------------------------
Notes: certain items not related to "operations" of the Company have been
excluded as follows.
a) NON-GAAP amount excludes certain non-cash items (depreciation, stock
compensation expenses, and deferred income tax recovery) as well as interest
income ($759), gain on sale of equipment ($2,217), and income tax ($1,126,468).
This is a 12 month number as per the financials.
b) NON-GAAP- amount excludes certain non-cash items (depreciation, stock
compensation expenses and deferred income tax recovery) as well as interest
income ($159), and income tax ($1,145,632). This is a 12 month number as per the
financials.
c) NON-GAAP amount represents depreciation, stock option expense and deferred
income tax recovery.
d) Other Non-GAAP non-operating adjustments - Depreciation of the factory in
Alberta, Canada began in 2012. Therefore "New factory construction costs" (2011
= $895,768) is not deducted. This number is disclosed in order to compare
previous year financial reviews.
e) Significant information. Depreciation of the Alberta factory began in
2012.This resulted in most of the significant difference between 2011 profit and
2012 loss.
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
Company Contacts
Flexible Solutions International -
Head Office
Jason Bloom
Tel: 250-477-9969
Tel: 800.661.3560
Email: Info@flexiblesolutions.com
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To find out more information about Flexible Solutions and our products, please
visit www.flexiblesolutions.com
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