EXHIBIT 99.1
NEWS RELEASE
November 14, 2019
FSI ANNOUNCES Third Quarter, 2019 FINANCIAL RESULTS A
Conference call is scheduled for Friday November 15th , 11:00am Eastern time,
8:00 am Pacific Time See dial in number and explanation below
VICTORIA, BRITISH COLUMBIA, November 14, 2019 - 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, 2019.
Mr. Daniel B. O'Brien, CEO, states, "We are pleased to show significant positive
revenue growth for the quarter and anticipate that this will continue in Q4,
however, it is important to note that Q4 2018 was the first time that the ENP
acquisition appeared in our revenue." Mr. O'Brien continues, "Profit for the
quarter and year to date is good but operating cash flow for the 9 months plus
our investment income is the number that shows how strong we have become."
o Sales in the Third quarter (Q3) were $7,403,492, up approximately 94%
when compared to sales of $3,816,626 in the corresponding period a
year ago. The financials show a Q3, 2019 net profit of $412,048, or
$0.03 per share, compared to a net loss of $145,470, or $0.01 per
share, in Q3, 2018.
o Basic weighted average shares used in computing earnings per share
amounts in Q3 were 12,108,110 and 11,630,991 for Q3, 2019 and Q3, 2018
respectively.
o Non-GAAP operating cash flow: For the 9 months ending September 30,
2019, net income reflects $591,472 of non-cash charges (depreciation,
stock option expenses), as well as gain (loss) on disposition (and
involuntary disposition) of equipment, gain on investment, interest
expense, interest income, write down of inventory, and income tax; Net
income attributable to non-controlling interests. These are items not
related to operating or current operating activities. When these items
are removed, the Company shows operating cash flow of $2,534,644, or
$0.21 per share. This compares with operating cash flow of $1,658,924,
or $0.14 per share, in the corresponding 9 months of 2018 (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. Also new sales opportunities have
appeared in the WaterSavrTM division as a result of the ongoing drought in the
southern United States. Many municipalities are water stressed and are seeking
ways to conserve water.
Conference call
A conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific
Time, on Friday November 15th . CEO, Dan O'Brien will be presenting and
answering questions on the conference call. To participate in this call please
dial 1 800-667-5617 (or 1 334-323-0501) just prior to the scheduled call time.
The conference call title, "Third Quarter 2019 Financials," may be requested.
The above information and following table contain supplemental information
regarding income and cash flow from operations for the period ended September
30, 2019. 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:
1
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
2019 2018
--------------------------------
Revenue $7,403,492 $3,816,626
Income (loss) before income tax - GAAP $ 915,802 $ (182,838)
Provision for Income tax (expense) / $ (213,771) $ 37,368
recovery - GAAP
Net income (loss) - GAAP $ 412,048 a $ (145,470)
Net income (loss) per common share - basic. - $ 0.03 a $ (0.01)
GAAP
3 month weighted average shares used in 12,108,110 11,630,991
computing per share amounts - basic.- GAAP
9 month Operating Cash Flow
Ended September 30
--------------------------------
Operating Cash flow (9 months). NON-GAAP $2,534,664 b,c $1,658,924 b
Operating Cash flow per share excluding $ 0.21 b,c $ 0.14 b
non-operating items and items not related to
current operations (9 months) - basic.
NON-GAAP
Non-cash Adjustments (9 month) GAAP $ 591,472 d $ 257,875 d
Shares (9 month basic weighted average)
used in computing per share
amounts - basic GAAP 11,862,484 11,627,464
Notes: certain items not related to "operations" of the Company have been
excluded from net income as follows.
a) Non-GAAP -:: Flexible Solutions International purchased 65% of ENP in 4th
quarter, 2018 (October 2018). Therefore 3 month Net Income is reduced by
the dollar amount of non-controlling interest in ENP.
b) Non-GAAP - amounts exclude certain cash and non-cash items: depreciation
and stock compensation expense (2019 = $591,472, 2018 = $257,875), interest
expense (2019 = $341,791, 2018 = $22,222), interest income (2019 = 69,154,
2018 = $17,459), gain on investment (2019 = $342,248, 2018 = $5,336), net
gain/(loss) on involuntary disposition of equipment (2019 = N/A, 2018 =
$1,714,261), write down of inventory (2019 = N/A, 2018 = N/A), deferred
income tax recovery (2019 = $125,999, 2018 = N/A), Income tax (2019 =
743,317, 2018 = 421,783), and Net income attributable to non-controlling
interests. See the financial statements for all adjustments.
c) The revenue and gain from the 50% investment in the private Florida LLC
announced in January 2019 is not treated as revenue or profit from
operations by Flexible Solutions given the Company only purchased 50% of
the LLC. The profit is treated as investment income and therefore occurs
below Operating income in the Statement of Operations. As a result the
$342,248 in gains from all investments, including that of the Florida LLC,
are removed from the calculation to arrive at Operating Cash Flow.
d) 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
6001 54th Ave, Taber, Alberta, CANADA T1G 1X4
Company Contacts
Jason Bloom
Toll Free: 800 661 3560
Fax: 403 223 2905
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: info@flexiblesolutions.com To find
out more information about Flexible Solutions and our products, please visit
www.flexiblesolutions.com.