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NEWS RELEASE
March 29, 2022
FSI ANNOUNCES FULL YEAR, 2021 FINANCIAL RESULTS A
Conference call is scheduled for Friday April 1st, 2022, 11:00am
Eastern time, 8:00am Pacific Time
See dial in number and explanation below
VICTORIA, BRITISH COLUMBIA, March 29, 2022 - 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, 2021.
Mr. Daniel B. O'Brien, CEO, states, "We are very pleased with the results for
2021. In addition to the 10% revenue increase, profits were up 16% and operating
cash flow increased by 24%. These results were achieved in a year when shipping
costs quintupled and raw materials prices increased very rapidly. It's due to
the skill and hard work of the whole FSI team that we were so successful."
Mr. O'Brien continues, "In 2021, we engaged with new prospective customers and
introduced additional products to existing customers. We anticipate that much of
this preparation will result in new sales in 2022. We estimate that we will
exceed last years growth and profit results in the 22 year."
o Sales for the Full Year were $34,416,335, up approximately 10% when
compared to sales of $31,407,454 in the corresponding period a year
ago. The financials show a Full Year, 2021 net profit of $3,449,162,
or $0.28 per share, compared to a net income of $2,977,050, or $0.24
per share, in Full Year, 2020. 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 from 2019 through 2021.
o Basic weighted average shares used in computing earnings per share
amounts were 12,316,254 and 12,240,641 for full year, 2021 and full
year, 2020 respectively..
o Non-GAAP operating cash flow: For the 12 months ending December 31,
2021, net income reflects $1,176,047 of non-cash charges
(depreciation, stock option expenses), as well as Gain (loss) on sale
of land, 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 $5,645,095 or $0.46 per share.
This compares with operating cash flow of $ 4,514,182, or $0.37 per
share in the corresponding 12 months of 2020 (see the table that
follows for details of these calculations).
The NanoChem division and ENP subsidiary continue to be the dominant sources of
revenue and cash flow for the Company. New opportunities continue to unfold in
detergent, water treatment, oil field extraction, turf, ornamental and
agricultural use to further increase sales in these divisions.
Conference call A conference call has been scheduled for 11:00 am Eastern Time,
8:00 am Pacific Time, on Friday April 1st, 2022. CEO, Dan O'Brien will be
presenting and answering questions on the conference call. To participate in
this call please dial 1-866-518-6930 (or 1-203-518-9713) 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 Flexible Solutions International - Full Year 2021 Financials will be
requested
The above information and following table contain supplemental information
regarding income and cash flow from operations for the period ended December 31,
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 Full Year Ended December 31 (12 Months Operating Cash Flow)
(Unaudited)
--------------------------------------------------------------------------------
12 months ended December 31
2021 2020
---------------------------------
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Revenue $ 34,416,335 $ 31,407,454
Income (loss) before income tax - GAAP $ 6,650,756 $ 5,190,975
Provision for Income tax - net - GAAP $ (2,356,499) $ (1,607,441)
Net income (loss) - GAAP $ 3,449,162 $ 2,977,050
Net income (loss) per common share - basic. -
GAAP $ 0.28 $ 0.24
12 month weighted average shares used in
computing per share amounts - basic.- GAAP 12,316,254 12,240,641
12 month Operating Cash Flow
Ended December 31
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---------------------------------
Operating Cash Flow (12 months). NON-GAAP $5,645,095a,b,c $ 4,514,182a,b,c
Operating Cash Flow per share excluding
non-operating items and items not related
to current operations (12 months) - basic.
-NON-GAAP 0.46a,b,c 0.37a,b,c
Non-cash Adjustments (12 month) -GAAP $1,176,047d $ 1,007,684d
Shares (12 month basic weighted average)
used in computing per share amounts - basic
-GAAP 12,316,254 12,240,641
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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 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.
b) Non-GAAP - amounts exclude certain cash and non-cash items: Depreciation and
Stock compensation expense (2021 = $1,176,047, 2020 = $1,007,684), Interest
expense (2021 = $199,930, 2020 = $260,657), Interest income (2021 = $77,999,
2020 = $53,101), Gain on investment (2021 = $507,143, 2020 = $877,358), gain on
sale of equipment (2021 = N/A, 2020 = 9,490), Gain on sale of property (2021 =
$44,330, 2020 = N/A), Gain on acquisition of ENP Realty (2021 = N/A, 2020 =
$133,341), Deferred income tax recovery (expense) (2021 = ($363,317), 2020 =
($409,553)), Income tax (2021 = $1,993,182, 2020 = $1,197,888), and pretax Net
income attributable to non-controlling interests (2021 = $1,214,206, 2020 =
871,844). *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 (2021 =
$507,143, and 2020 = $877,358), 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
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visit www.flexiblesolutions.com.