NEWS RELEASE
November 13, 2020
FSI ANNOUNCES Third Quarter, 2020 FINANCIAL RESULTS
A Conference call is scheduled for Monday November 16th, 11:00am
Eastern time, 8:00am Pacific Time See dial in
numbers below
VICTORIA, BRITISH COLUMBIA, November 13, 2020 - 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, 2020.
Mr. Daniel B. O'Brien, CEO, states, "We continue to generate growth and
profitability in tough and uncertain times. This is driven by the hard work and
flexibility of our employees." Mr. O'Brien continues, "As conditions change, we
will react and do our best to continue our success."
o Sales in the Third quarter (Q3) were $8,112,930, up approximately 10%
when compared to sales of $7,403,492 in the corresponding period a
year ago. The financials show a Q3, 2020 net profit of $582,369, or
$0.05 per share, compared to a net profit of $412,048, or $0.03 per
share, in Q3, 2019.
o Basic weighted average shares used in computing earnings per share
amounts in Q3 were 12,240,545 and 12,108,110 for Q3, 2020 and Q3, 2019
respectively.
o Non-GAAP operating cash flow: For the 9 months ending September 30,
2020, net income reflects $534,333 of non-cash charges (depreciation,
stock option expenses), as well as gain (loss) on disposition of
equipment, gain on investment, interest expense, interest income,
write down of inventory, and income tax. Net income attributable to
non-controlling interests (minority interest) is removed from the cash
flow calculation. These are items not related to operating or current
operating activities. When these items are removed, the Company shows
operating cash flow of $4,082,754, or $0.33 per share. This compares
with operating cash flow of $2,534,644, or $0.21 per share, in the
corresponding 9 months of 2019 (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.
Conference call
A conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific
Time, on Monday, November 16th. CEO, Dan O'Brien will be presenting and
answering questions on the conference call. To participate in this call please
dial 1 877-876-9173 (or 1 785-424-1667) just prior to the scheduled call time.
The conference call title, "FSI Third Quarter 2020 Financial Results," 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, 2020. 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
2020 2019
---------------------------------
Revenue $8,112,930 $ 7,403,492
Income (loss) before income tax - GAAP $1,311,803 $ 915,802
Provision for Income tax (expense)/
recovery - GAAP $ (370,203) $ (213,771)
Net income (loss) - GAAP $ 582,369 $ 412,048
Net income (loss) per common share -
basic. - GAAP $ 0.05 $ 0.03
3 month weighted average shares used in
computing per share amounts - basic.- GAAP 12,240,545 12,108,110
9 month Operating Cash Flow
Ended September 30
--------------------------------
Operating Cash flow (9 months). NON-GAAP $4,082,754a,b,c $ 2,534,644a,b,c
Operating Cash flow per share excluding
non-operating items and items not
related to current operations (9 months)
- basic. NON-GAAP $ 0.33a,b,c $ 0.21a,b,c
Non-cash Adjustments (9 month) GAAP $ 534,333d $ 591,472d
Shares (9 month basic weighted average)
used in computing per share amounts - basic
GAAP $ 12,239,633 $11,862,484
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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).
b) Non-GAAP - amounts exclude certain cash and non-cash items: depreciation
and stock compensation expense (2020 = $534,333, 2019 = $591,472), interest
expense (2020 = $199,947, 2019 = $341,791), interest income (2020 =
$26,197, 2019 = $69,154), gain on sale of asset (2020 = $9,490, 2019 =
N/A), gain on investment (2020 = $660,601, 2019 = $342,248), write down of
inventory (2020 = N/A, 2019 = N/A), deferred income tax recovery (2020 =
N/A, 2019 = $125,999), and Income tax (2020 = $1,064,851, 2019 = $743,317).
Net income attributable to non-controlling interests (minority interest) is
removed from the cash flow calculation (2020 = $558,324, 2019 = $527,778).
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
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.