EXHIBIT 99.1
NEWS RELEASE May 15, 2017
FSI ANNOUNCES FIRST QUARTER, 2017 FINANCIAL RESULTS
Conference call scheduled for Tuesday May 16th, 11:00am Eastern time,
8:00am Pacific Time
See dial in number below
VICTORIA, BRITISH COLUMBIA, May 15, 2017 - 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, 2017.
Mr. Daniel B. O'Brien, CEO, states, "First quarter results were good considering
the late spring in the US agriculture sector and the loss of swimming pool sales
caused by the fire in Taber AB. The large increase in cash on the balance sheet
is due to the one-time $4.2million insurance payout combined with retained
earnings for the quarter. HeatsavrTM production has restarted, the fire site is
clean and we are accepting bids for a new building." CEO O'Brien adds, "Oil
prices have been steady, supporting our estimate that we will see revenue growth
for the remaining quarters of 2017."
o Sales in the first quarter (Q1) were $4,663,708, down approximately
12% when compared to sales of $5,312,635 in the corresponding period a
year ago. In part as the result of an insurance claim payout, the
financials show a Q1, 2017 net income of $3,252,667, or $0.28 per
share, compared to a net income of $741,794, or $0.06 per share, in
Q1, 2016. Note: a share buyback of 1,750,000 shares took place in
January 2016.
o Basic weighted average shares used in computing per share amounts in
Q1 were 11,458,170 and 11,543,376 for both 2017 and 2016 respectively.
o Non-GAAP operating cash flow: For the 3 months ending March 31, 2017,
net income reflects $103,857 of non-cash charges (depreciation and
stock option expenses), Income tax, Deferred income tax, as well as
Net gain or loss from insurance payout and/or write down of inventory,
as well as Interest income; which are items not related to operating
or current operating activities. When these items are removed, the
Company shows operating cash flow of $1,155,828, or $0.10 per share.
This compares with operating cash flow of $1,443,117, or $0.13 per
share, in the corresponding 3 months of 2016 (see the table that
follows for details of these calculations).
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.
* a conference call has been scheduled for 11:00 am Eastern Time, 8:00 am
Pacific Time, on Tuesday May 16, 2017. CEO, Dan O'Brien will be presenting and
answering questions on the conference call. To participate in this call please
dial 1-800-768-6544 (or 1-785-830-7990) just prior to the scheduled call time.
The conference call title, "First Quarter 2017 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,
2017. 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:
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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
2017 2016
---------------------------------
Revenue $ 4,663,708 $ 5,312,635
Income (loss) before income tax - GAAP $ 3,572,946 $ 1,299,800
Provision for Income tax(net) - GAAP $ 320,279 $ 558,006
Net income (loss) - GAAP $ 3,252,667 $ 741,794
Net income (loss) per common share - basic -
GAAP $ 0.28a $ 0.06a
3 month weighted average shares used in
computing per share amounts - basic.- GAAP 11,458,170a 11,543,376a
3 month Operating Cash Flow
Ended March 31
---------------------------------
Operating Cash flow (3months). NON-GAAP $ 1,155,828b $ 1,443,117b
Operating Cash flow per share excluding
non-operating items and items not related
to current operations (3 months) - basic -
NON-GAAP $ 0.10a,b $ 0.13a,b
Non-cash Adjustments (3 month) GAAP $ 103,857c 143,317c
Shares (3 month basic weighted average) used
in computing per share amounts - basic GAAP 11,458,170a 11,543,376a
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.
Shares outstanding at March 31, 2016 were 11,427,991. Also an insurance
payout of $4,207,578 less the loss of the factory, as a result of the fire
in the Taber, Alberta factory, raised net income by $0.22 per share. See
the financials for details.
b) Non-GAAP - amounts exclude certain non-cash items: depreciation and stock
option expense totaling (2017 = $103,857, 2016 = $143,317), Deferred tax
expense (2017 = $23,404, 2016 = N/A), Income tax, (2017 = $296,875, 2016 =
$558,006,), net gain/(loss) of building and equipment from the fire in
Taber, Alberta (2017 = $2,572,288, 2016 = N/A) Interest income (2017 = $33,
2016 = $ N/A,), write down of inventory (2017 = $51,346, 2016 = N/A). See
the financial statements for all 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
206 - 920 Hillside Ave, Victoria, BC CANADA V8T 1Z8
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.
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