NEWS RELEASE
August 13, 2021
FSI ANNOUNCES Second Quarter, 2021 FINANCIAL RESULTS
A Conference call is scheduled for Monday August, 16th, 11:00am Eastern time,
8:00am Pacific Time See dial in numbers below
VICTORIA, BRITISH COLUMBIA, August 13, 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 the
second quarter (Q2) ended June 30, 2021.
Mr. Daniel B. O'Brien, CEO, states, "We are happy with the second quarter and
the first half of the year. Raw material and shipping costs may constrain our
margins in the second half. Regardless, we are reasonably confident of
maintaining our recent growth in the second half of 2021 and through 2022."
o Sales in the second quarter (Q2) were $8,535,451, compared to sales of
$7,709,607 in the corresponding period a year ago. The financials show a
Q2, 2021 net profit of $1,176,761, or $0.10 per share, compared to a net
profit of $1,132,867, or $0.09 per share, in Q2, 2020.
o Basic weighted average shares used in computing earnings per share amounts
were 12,304,163 and 12,240,545 for Q2, 2021 and Q2, 2020 respectively.
o Non-GAAP operating cash flow: For the six months ending June 30, 2021, net
income reflects $558,580 of non-cash charges (depreciation and stock option
expenses), PPP loan forgiveness, as well as gain on investment, interest
expense, interest income, 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 $3,293,783, or $0.27 per share. This compares with operating cash
flow of $3,044,425, or $0.25 per share, in the corresponding 6 months of
2020 (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, August 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 Second Quarter 2021 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 June 30,
2021. 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 June 30 (6 Months Operating Cash Flow)
(Unaudited)
-------------------------------------------------------------------------------
3 months ended June 30
2021 2020
--------------------------------
Revenue $8,535,451 $7,709,607
Income (loss) before income tax - GAAP $1,923,937 $1,524,604
Provision for Income tax (expense) /
recovery - GAAP $(478,727) $(259,660)
Net income (loss) (controlling interest only)
- GAAP $1,176,761 $1,132,867
Net income (loss) per common share - basic. -
GAAP $ 0.10 $ 0.09
3 month weighted average shares used in
computing per share amounts - basic.- GAAP 12,304,163 12,240,545
6 month Operating Cash Flow
Ended June 30
--------------------------------
Operating Cash flow (6 months). NON-GAAP $3,293,783 a,b,c $3,044,425 a,b,c
Operating Cash flow per share excluding
non-operating items and items not related to
current operations (6 months) - basic.
NON-GAAP $ 0.27 a,b,c $ 0.25 a,b,c
Non-cash Adjustments (6 month) GAAP $ 558,580 d $ 348,191 d
6 month weighted average shares used in
computing per share amounts - basic GAAP 12,315,746 12,239,171
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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). Therefore Operating Cash Flow is adjusted by the
net income or loss of the non-controlling interest in ENP (2021 = $454,933, 2020
= $199,093).
b) Non-GAAP - amounts exclude certain cash and non-cash items: depreciation and
stock compensation expense (2021 = $558,580, 2020 = $348,191), interest expense
(2021 = $113,329, 2020 = $156,075), interest income (2021 = $32,445, 2020 =
$12,614), gain on investment (2021 = $399,236, 2020 = $539,417), PPP loan
forgiveness (2021 = $537,960, 2020 = N/A), write down of inventory (2021 = N/A,
2020 = N/A), deferred income tax recovery (2021 = N/A, 2020 = N/A), Income tax
(2021 = $964,183, 2020 = $694,648), 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 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
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to: info@flexiblesolutions.com
To find out more information about Flexible Solutions and our products, please
visit www.flexiblesolutions.com.