EXHIBIT 99.1
FLEXIBLE SOLUTIONS
NEWS RELEASE
November 14, 2016
FSI ANNOUNCES THIRD QUARTER, 2016 FINANCIAL RESULTS
Conference call scheduled for Tuesday November 15th,
11:00am Eastern time, 8:00 AM Pacific Time
See dial in number below
VICTORIA, BRITISH COLUMBIA, November 14, 2016 - 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 September 30, 2016.
Mr. Daniel B. O'Brien, CEO, states, "Third quarter is historically our least
strong period of the year and is also a time when product mix is less optimal.
In addition, our raw material costs bottomed in Q1 while our ability to raise
prices lags during periods of increasing cost of goods sold." Mr. O'Brien
continues, "The remainder of the year and into 2017, our product mix reverts
positively and some price increases may become possible."
o Sales in the third quarter (Q3) were $3,117,034, down approximately 6%
when compared to sales of $3,303,216 in the corresponding period a
year ago. The financials show a Q3, 2016 accounting net income of
$85,964 or $0.01 per share compared to an accounting net income of
$237,202, or $0.02 per share in Q3, 2015.
o Basic weighted average shares used in computing net income in Q3 were
11,434,187 and 13,177,208 for 2016 and 2015 respectively.
o Non-GAAP operating cash flow: For the 9 months ending September 30,
2016, net income reflects $437,109 of non-cash charges (depreciation
and stock option expenses), as well as net income tax ($1,020,413),
Gain on sale of equipment ($6,848) and interest income ($2,161) which
are items not related to operating or current operating activities.
When these items are removed the Company shows operating cash flow of
$2,837,508, or $0.25 per share. This compares with operating cash flow
of $2,335,916, or $0.18 per share, in the corresponding 9 months of
2015 (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 are unfolding to further increase sales in this division.
* CEO, Dan O'Brien has scheduled a conference call for 11:00am EST, 8:00am
PST, Tuesday November 15th to discuss the financials. Call 800-533-7954 (or
785-830-1924). The conference call title, "Third Quarter, 2016 Financial
Results," may be requested.*
Please see next page...
1
The above information and following table contain supplemental information
regarding income and cash flow from operations for the 9 months ended September
30, 2016. 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 September 30 (9 Months Operating Cash Flow)
(Unaudited)
3 months ended September 30
2016 2015
--------------------------------
Revenue $ 3,117,034 $ 3,303,216
Income before income tax - GAAP $ 178,201 $ 314,856
Net income (loss) - GAAP $ 85,964 $ 237,202
Net income (loss) per common share - basic. -
GAAP $ 0.01 a $ 0.02 a
3 month weighted average shares used in 11,434,187 a 13,177,208 a
computing per share amounts - basic - GAAP
9 month Operating Cash Flow
Ended September 30
--------------------------------
Operating Cash flow (9 months). NON-GAAP $ 2,837,508 b $ 2,335,916 b
Operating Cash flow per share excluding
non-operating items and items not related to
current operations (9 months) - basic.
NON-GAAP $ 0.25 b $ 0.18 b
Non-cash Adjustments (9 month) NON-GAAP $ 437,109 c $ 483,134 c
9 month weighted average shares used in
computing per share amounts - basic - GAAP 11,468,392 13,172,423
Notes: certain items not related to "operations" of the Company have been
excluded from net income as follows.
a) Non-GAAP - A share buyback of 1,750,000 shares took place in January 2016.
This change is not reflected in the 2015 earnings per share (E/S) or operating
cash flow numbers. Shares outstanding at September 30, 2016 were 11,451,991. See
the financials for details. As of January 2013 the accumulated loss and expenses
resulting from the Alberta division may now be used to reduce taxable income
from the Illinois division.
b) Non-GAAP - This calculation begins with 9 month Net income (loss). Amounts
exclude certain non-cash items: depreciation and stock option expense (2016 =
$437,109, 2015 = $483,134), interest income (2016 = $2,161, 2015 = $2,963),
Gain/(Loss) on the sale of equipment (2016 = $6,848, 2015 = ($45,249)),
Provision for income tax (2016 = $1,020,413, 2015 = $750,357). See Operating
Cash Flow for other adjustments. c) Non-GAAP - amounts represent depreciation,
and stock option 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
206 - 920 Hillside Ave, Victoria, BC CANADA V8T 1Z8
Company contacts
Jason Bloom
Tel: 250 477 9969
Toll Free: 800 661 3560
Fax: 250 477 9912
E-mail: info@flexiblesolutions.com
If you have received this news release by mistake or if you would like to be
removed from our update list please reply to: danielle@flexiblesolutions.com
To find out more information about Flexible Solutions and our products, please
visit www.flexiblesolutions.com.