EXHIBIT 99.1
NEWS RELEASE
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November 15, 2004
FLEXIBLE SOLUTIONS ANNOUNCES THIRD QUARTER 2004 FINANCIAL RESULTS
VICTORIA, B.C., Nov. 15, 2004 - FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (AMEX:
FSI, FRANKFURT: FXT), the developer and manufacturer of environmentally safe
water and energy conservation technology, today announced financial results for
the third quarter ended September 30, 2004.
Sales in the third quarter were up substatially to $1,376,054 compared with
$40,009 in the corresponding period a year ago, resulting in a net loss of
$154,090, or $0.01 per basic weighted average share, compared with a net loss of
$290,254, or $0.02 per basic weighted average share, in the second quarter of
2003. Basic weighted average shares used in computing per share amounts for the
quarters were 11,831,916 and 11,791,612 respectively.
Sales in the nine months were $2,411,925, compared with $1,942,571 for year-ago
period, resulting in a net loss of $732,239, or $0.06 per basic weighted average
share, compared with a loss of $339,026, or $0.03 per basic weighted average
share, in the second quarter of 2003. Basic weighted average shares used in
computing per share amounts for the nine months were 11,819,916 and 11,677,988
respectively.
The sales data reflects the first full quarter of FSI's acquisition of Donlar
Corp's assets, which was completed on June 9, and now operates as the Company's
NanoChem Solutions, Inc., subsidiary. For the nine months ended Sept 30, 2004,
pro-forma revenues totaled $4,574,824 presuming that the companies had operated
as one since Jan 1st.
Mr. Daniel B. O'Brien, CEO, states, "The third quarter results reflect $173,989
in non-cash depreciation charges from the NanoChem acquisition and, when
depreciation and stock option expenses are removed, the Company shows positive
cash flow only 3 months and 20 days after the asset purchase. In the third
quarter, over $100,000 in new cash became available through operations to
service debt and develop our business."
The NanoChem division has contributed greatly to sales and cash flow only 110
days after the takeover and is starting to replace the capital expended for it.
As well, opportunities to synergistically cross sell the products of all FSI
divisions have already generated leads to new business. The swimming pool and
NanoChem division are cooperating to increase utilization of the Peru, IL
factory while decreasing costs for the Company as a whole. The Company
maintained expenditures in the areas of WaterSavr sales and marketing and
production equipment development. Adding to the first complete quarter of sales
from the recently acquired NanoChem division, were greater than expected sales
from our swimming pool division into new overseas markets. NanoChem sales are
much less seasonal than those of our WaterSavr and Flexible Solutions Ltd
divisions which should lead to less volatile sales figures in future. Management
will attempt to reduce seasonality even further over time.
(TABLE FOLLOWS)
FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
Consolidated Statement of Operations
For 3 Months Ended Sept 30,
(Unaudited)
2004 2003
---- ----
Sales $ 1,376,054 $ 40,009
Net Income (Loss) $ (154,090) $ (290,254)
Net Income (Loss) Per
Common Share -- Basic $ (0.01) $ (0.02)
Weighted Average Shares
Used in Computing Per Share
Amounts - Basic 11,831,916 11,791,612
ABOUT FLEXIBLE SOLUTIONS INTERNATIONAL
Flexible Solutions International, Inc. (http://www.flexiblesolutions.com/),
based in Victoria, British Columbia, is the developer and manufacturer of
WaterSavr, the world's first commercially viable water evaporation retardant.
FSI is an environmental technology company specializing in energy and water
conservation products for drinking water, agriculture, industrial markets and
swimming pools throughout the world. WaterSavr reduces evaporation by up to 30%
on reservoirs, lakes, aqueducts, irrigation canals, ponds and slow moving
rivers. Heatsavr, a "liquid blanket" evaporation retardant for the commercial
swimming pool and spa markets, also reduces humidity and lowers water heating
costs, resulting in energy savings of 15% to 40%. The Company's Ecosavr product
targets the residential swimming pool market. The Company's NanoChem Solutions,
Inc., subsidiary specializes in environmentally friendly, "green chemistry"
water-soluble products utilizing thermal polyaspartate (TPA) biopolymers. TPA
beta-proteins are manufactured from the common biological amino acid, L-aspartic
acid.
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.
Investor Relations contacts: Flexible Solutions International - Head Office
Jens Biertumpel Jason Bloom
Tel: 604.682.1799 Tel: 800.661.3560
Email: Info@flexiblesolutions.com
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