EXHIBIT 99.1
FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
NEWS RELEASE
March 31, 2021
FSI ANNOUNCES Full Year, 2020 FINANCIAL RESULTS: NET PROFIT up 50%
A Conference call is scheduled for Thursday April 1st, 2021, 11:00am Eastern
time, 8:00am Pacific Time
See dial in number and explanation below
VICTORIA, BRITISH COLUMBIA, March 31, 2021 - 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
full year ended December 31, 2020.
Mr. Daniel B. O'Brien, CEO, states, "We are very pleased with the increase in
revenue, profits and cash flow in 2020, especially considering the constraints
of operating during the pandemic." Mr. O'Brien continues, "We plan to continue
our growth as vaccines are distributed and the economy opens."
o Sales for the Full Year were $31,407,454, up approximately 14% when
compared to sales of $27,440,110 in the corresponding period a year
ago. The financials show a Full Year, 2020 net profit of $2,977,050,
or $0.24 per share, compared to a net income of $1,912,392, or $0.16
per share, in Full Year, 2019. Note: the financials do not take into
account potential tariff rebates that are currently being applied for.
The tariffs were charged on some raw materials used to manufacture
products that were shipped in both 2019 and 2020.
o Basic weighted average shares used in computing earnings per share
amounts were 12,240,641 and 11,945,636 for full year, 2020 and full
year, 2019 respectively.
o Non-GAAP operating cash flow: For the 12 months ending December 31,
2020, net income reflects $1,007,684 of non-cash charges
(depreciation, stock option expenses), as well as gain (loss) on
disposition of equipment, gain(loss) on investment, interest expense,
interest income, write down of inventory, Income tax expense/recovery,
and pre tax Net income attributable to non-controlling interests.
These are items not related to current operating activities. When
these items are removed, the financials show operating cash flow of
$4,514,182 or $0.37 per share. This compares with operating cash flow
of $2,619,040, or $0.22 per share in the corresponding 12 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.
1
Conference call
A conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific
Time, on Thursday April 1st, 2021 . CEO, Dan O'Brien will be presenting and
answering questions on the conference call. To participate in this call please
dial 1-877-876-9177 (or 1-785-424-1672) just prior to the scheduled call time.
To join the call participants will be requested to give their name and company
affiliation. The conference ID: SOLUTIONS and or call title "Fourth quarter 2020
Financial Results," will be requested
more...
The above information and following table contain supplemental information
regarding income and cash flow from operations for the period ended December 31,
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 12 Months Ended December 31 (12 Months Operating Cash Flow)
(Unaudited)
-------------------------------------------------------------------------------
12 months ended December 31
2020 2019
--------------------------------
Revenue $ 31,407,454 $27,440,110
Income (loss) before income tax - GAAP $ 5,190,975 $ 2,314,621
Provision for Income tax - net - GAAP $a(1,607,441) $ (17,436)
Net income (loss) - GAAP $ 2,977,050 $ 1,912,392
Net income (loss) per common share - basic. -
GAAP $ 0.24 $ 0.16
12 month weighted average shares used in
computing per share amounts - basic.- GAAP 12,240,641 11,945,636
12 month Operating Cash Flow
Ended December 31
---------------------------------
Operating Cash Flow (12 months). NON-GAAP $4,514,182 a,b,c $2,619,040a,b,c
Operating Cash Flow per share excluding $ 0.37 a,b,c $ 0.22a,b,c
non-operating items and items not related
to 0.37a,b,c current operations (12 months)
- basic - NON-GAAP
Non-cash Adjustments (12 month) - GAAP $1,007,684 d $ 866,708 d
Shares (12 month basic weighted average)
used in computing per share amounts - basic
GAAP 12,240,641 11,945,636
--------------------------------------------------------------------------------
Notes: certain items not related to "operations" of the Company's net income are
listed below.
a) Non-GAAP - Flexible Solutions International purchased 65% of ENP in 4th
quarter, 2018 (October 2018). Therefore Operating Cash Flow is adjusted by
the pre-tax Net income or loss of the non-controlling interest in ENP. An
adjustment to 2019 Operating cash flow has been made to account for the
use of a pre-tax amount versus an after tax amount which was originally
used in that year.
2
b) Non-GAAP - amounts exclude certain cash and non-cash items:
depreciation and stock compensation expense (2020 = $1,007,684, 2019 =
$866,708), interest expense (2020 = $260,657, 2019 = $428,371),
interest income (2020 = $53,101, 2019 = $80,731), gain on investment
(2020 = $877,358, 2019 = $323,824), gain on sale of equipment (2020 =
9,490, 2019 = $2,312), Gain on acquisition of ENP Realty (2020 =
$133,341, 2019 = N/A), Deferred income tax recovery (expense) (2020 =
(409,553), 2019 = $602,421), Income tax (2020 = $1,197,888, 2019 =
$619,857), and pre-tax Net income attributable to non-controlling
interests (2020 = $871,844, 2019 = $583,793). *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 (2020 = $877,358, and 2019 =
$323,824), including those from 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.
3