EXHIBIT 99.1
NEWS RELEASE
MARCH 31, 2014
FLEXIBLE SOLUTIONS ANNOUNCES FULL YEAR, 2013 FINANCIAL RESULTS
Conference call is scheduled for April 01, 2014. See the time and dial in number
below.
VICTORIA, BRITISH COLUMBIA, March 31, 2014 - 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, 2013.
Mr. Dan O'Brien, CEO states, "In 2013, cost of goods sold was higher than in
previous years and we were not able to raise prices to all of our customers as
quickly as we would have liked to. Combined with slightly lower total sales, the
result was lower operating cash flow compared to 2012 [non-GAAP]." Mr. O'Brien
continues, "Raw material prices have eased so far in 2014 and we are focusing
additional efforts on recouping and increasing sales revenue in order to resume
the quick growth experienced in 2010 through 2012."
o Sales for the full year 2013 were $15,801,596, down 4%, when
compared to $16,400,107 for full year 2012. The result was an
after tax GAAP accounting net income of $1,821,634, or $0.14 per
weighted average share, compared to an accounting net loss of
$1,084,447, or $0.08 per weighted average share in full year
2012.
o Non-GAAP operating cash flow: (for details see the following
table). For the 12 months ending Dec. 31, 2013, net income (loss)
reflects $899,450 of non-cash charges, Income Tax Recovery of
$134,720, Exclusive Distributor fee of $250,000, gain on sale of
equipment of $2,057, interest income of $2,000 and when non-cash
items, items not related to current operations of the Company,
are removed the Company shows positive operating cash flow of
$533,407 or $0.04 per share. This compares with 2012 operating
cash flow of $1,364,621, or $0.10 per share
o The financials show a significantly higher accounting net income
in 2013 versus 2012. This is largely due to a deferred tax
recovery of $2,408,395 which has been realized as an asset on the
Balance Sheet. The Deferred asset is the result of the
commencement of the expensing of the Alberta factory against the
Company's US income. Past and current factory construction and
operating expenses not yet applied against FSI's US income will
now be carried forward to reduce the 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 over 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 01, 2013 to discuss the financials. To attend this call, dial
1-877-941-0844 (or 1-480-629-9835). The conference call title, `Full Year 2013
Financials' maybe requested **