EXHIBIT 99.1
FLEXIBLE SOLUTIONS
NEWS RELEASE
May 15, 2013
FSI ANNOUNCES FIRST QUARTER, 2013 FINANCIAL RESULTS
Conference call scheduled for Thursday May. 16th, 11:00 a.m. Eastern time,
8:00 a.m. Pacific Time
See dial in number below
VICTORIA, BRITISH COLUMBIA, May 15, 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
first quarter (Q1) ended March 31, 2013.
Mr. Daniel B. O'Brien, CEO, states, "The decrease in first quarter revenue is
largely a result of the aftereffects of last season's drought. We believe that
agriculture distributors have delayed orders this spring in response to last
year's weather and the cold, wet start to this year's planting. With regard to
revenue forecasting, given the news of the continued economic contraction in
Europe, and worries of adverse weather conditions in the US, it is simply too
difficult and unrealistic to give numerical revenue guidance at this time. We do
have very early indications that Q2 may recoup most of the revenue decline
experienced in Q1 and we continue to predict that full year [FY] 2013 revenue is
expected to be higher than FY 2012. Revenue forecasts will be updated at each
financial reporting date." Mr. O'Brien continues, "As a result of the
seasonality of the agriculture and swimming pool markets, FSI's sales have
tended to be larger during the first half of the year, causing higher accounts
receivable, and lower cash and inventory numbers. This does not affect the
Company's ability to grow given its strong working capital position including, a
largely untapped, $6.4million line of credit with a Chicago based bank."
o Sales in the first quarter (Q1) were $4,504,536, down approximately 13%
when compared to sales of $5,194,071 in the corresponding period a year
ago. The financials show a Q1, 2013 net profit of $65,161, or $0.00 per
share compared to a net profit of $222,660, or $0.02 per share in Q1, 2012.
o Basic weighted average shares used in computing per share amounts in Q1
were 13,169,991 for both 2013 and 2012.
o Non-GAAP operating cash flow: For the 3 months ending March 31, 2013, net
income reflects $353,071 of non-cash charges (depreciation and stock option
expenses), income tax ($58,000) as well as gain on sale of equipment and
interest income ($2,057) which are items not related to operating or
current operating activities. When these items are removed, the Company
shows operating cash flow of $474,176, or $0.4 per share. This compares
with operating cash flow of $1,118,964, or $0.08 per share, in the
corresponding 3 months of 2012 (see the table that follows for details of
these calculations).
The NanoChem division continues to produce most of FSI's revenue and cash flow.
New opportunities continue to arise that may further increase sales in this
division.
* CEO, Dan O'Brien has scheduled a conference call for 11:00am EST, 8:00am PST,
Thursday May 16th to discuss the Company's financials. Call 1-877-941-0844 (or
1-480-629-9835). The conference call title, "First Quarter Financials," may be
requested.*
The above information and following table contain supplemental information
regarding income and cash flow from operations for the 3 months ended March 31,
2013. 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
2013 2012
-----------------------
Revenue $ 4,504,536 $ 5,194,071
Income before income tax - GAAP $ 123,161 $ 782,660
Income tax(net) - GAAP $ 58,000 a $ 560,000
Net income (loss) - GAAP $ 65,161 $ 222,660
Net income (loss) per common share - basic. -
GAAP $ 0 $ 0.02
3 month weighted average shares used in
computing per share amounts - basic.- GAAP 13,169,991 13,169,991
3 month Operating Cash Flow
Ended March 31
---------------------------
Operating Cash flow (3months). NON-GAAP $ 474,176 b $ 1,118,964 b
Operating Cash flow per share excluding non-
operating items and items not related to
current operations (3 months) - basic.
NON-GAAP $ 0.04 b $ 0.08 b
Non-cash Adjustments (3 month) $ 353,071 c $ 338,882 c
Shares (3 month basic weighted average) used
in computing per share amounts - basic GAAP 13,169,991 13,169,991
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Notes: certain items not related to "operations" of the Company have been
excluded from net income as follows.
a) GAAP - as of January 2013 the accumulated loss and expenses resulting from
the Alberta division can be used to reduce taxable income from the Illinois
division.
b) Non-GAAP - amounts exclude certain non-cash items (depreciation and stock
option expense totaling: 2013 = 353,071, 2012 = $338,882), net income tax
(2013 = $58,000, 2012 = 560,000), gain on the sale of equipment(2013 = 2057,
2012 = $2,217) and interest income(2012 = $361). See Operating Cash Flow for
other adjustments.
c) Non-GAAP - amounts represent depreciation and stock compensation 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
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