Exhibit 99.1
NEWS RELEASE
FLEXIBLE SOLUTIONS
COVER AND CONSERVE
March 10, 2006
--REVENUES UP 98% FOR 2005-- FLEXIBLE SOLUTIONS
ANNOUNCES FOURTH QUARTER AND FULL YEAR FINANCIALS
VICTORIA, B.C., MAR. 10, 2006 - FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (AMEX:
FSI, FRANKFURT: FXT), Today the company announced financial results for the
fourth quarter and full year ended December 31, 2005. A CONFERENCE CALL is
scheduled for 8:30 am Pacific Time, 11:30 Eastern Time, on Tuesday, March 14,
2006. CEO Dan O'Brien will be attending the call to answer questions. To
participate in the conference call, please call our office (800 661 3560) for
the dial in number.
Sales in the fourth quarter, of $1,519,591, were up 55% when compared to sales,
of $981,012, in the corresponding period a year ago. The result was a net loss
of $383,234, or $0.03 per basic weighted average share, in the fourth quarter,
2005 compared to a net loss of $525,305, or $0.04 per basic weighted average
share, in the fourth quarter of 2004. Basic weighted average shares used in
computing per share amounts for the quarters were 12,896,533 and 11,896,916
respectively.
Sales, for the full year of 2005, increased by 98% to $6,709,394, compared with
$3,392,937 for full year 2004. The result was a net loss of $1,176,751, or $0.09
per basic weighted average share, in the 2005 period, reduced from a loss of
$1,257,545, or $0.11 per basic weighted average share, in the full year 2004.
Basic weighted average shares used in computing per share amounts for the twelve
months were 12,541,084 and 11,827,734 respectively.
In comparing FSI's financials for '05 and '04, it must be noted that the
NanoChem Solutions assets were not acquired until June of '04, thus affecting
sales and cost of sales numbers. Higher world oil prices in '05, compared with
'04, also had an impact on cost of goods sold and therefore, impacted profit
margins for both fourth quarter and full year numbers. However, higher energy
prices have also created greater demand for FSI's products. As a result of
higher sustained oil prices, it can be expected that product prices to customers
will also rise and profit margins will follow suit.
Mr. Daniel B. O'Brien, CEO, states, "This was another great quarter, and year,
for FSI yielding very significant growth in revenues over Q4 and FY, 2004. Also,
the 2005 full year net loss in revenues number reflects $1,211,218 in non-cash
charges and, when depreciation and stock option expenses are removed, the
Company shows positive cash flow of $34,467 or $0.00 per share. This compares
with negative cash flow of $537,629, or a loss of $0.04 in cash per share, in
the corresponding 12 months of 2004. These numbers, along with the retirement of
all debt in 2005, reflect the continued significant forward momentum of Flexible
Solutions."
The NanoChem division continues to contribute substantially to sales and cash
flow and, significant new opportunities have developed to further increase sales
in this division. At the same time, opportunities to synergistically cross sell
the products of all FSI divisions have generated leads to new business. Note
that NanoChem sales are much less seasonal than those of our WaterSavr and
Flexible Solutions Ltd divisions which should lead to less volatile quarter over
quarter sales figures in future. Management will work to reduce seasonality
further over time as new marketing opportunities arise.
(TABLE FOLLOWS)
FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR 3 MONTHS AND FULL YEAR ENDED DEC 31
- ----------------------------- --------------------------------------- ---------------------------------------------
Unaudited Audited
- ----------------------------- --------------------------------------- ---------------------------------------------
Three months ended Dec 31 Year ended Dec 31
- ----------------------------- ------------------- ------------------- --------------------- -----------------------
2005 2004 2005 2004
- ----------------------------- ------------------- ------------------- --------------------- -----------------------
Revenue $ 1,519,591 $ 981,012 $ 6,709,394 $ 3,392,937
- ----------------------------- ------------------- ------------------- --------------------- -----------------------
Net income (loss) $ (383,726) $ (525,305) $ (1,176,751) $ (1,257,545)
- ----------------------------- ------------------- ------------------- --------------------- -----------------------
Net income (loss) per
common share - basic $ (0.03) $ (0.04) $ (0.09) $ (0.11)
- ----------------------------- ------------------- ------------------- --------------------- -----------------------
Weighted average shares
used in computing per share
amounts - basic 12,896,533 11,831,916 12,541,084 11,827,734
- ----------------------------- ------------------- ------------------- --------------------- -----------------------
Operating Cash flow $ (188,287)* $ (371,881)* $ 34,467* $ (537,629)*
- ----------------------------- ------------------- ------------------- --------------------- -----------------------
Operating Cash flow per
share - basic $ (0.01)* $ (0.03)* $ 0.00* $ (0.05)*
- ----------------------------- ------------------- ------------------- --------------------- -----------------------
* Cash flow after excluding non-cash items such as depreciation and stock option
expense.
ABOUT FLEXIBLE SOLUTIONS INTERNATIONAL
Flexible Solutions International, Inc. (http://www.flexiblesolutions.com/),
based in Victoria, British Columbia, is the developer and manufacturer of cost
effective, environmentally safe, and biodegradable, patented water technologies.
FSI's water evaporation control products are used to reduce water loss in arid
climates, reduce energy loss from public and private swimming pools and, cause
spreading of desired particles across water surfaces. The Company's bio-polymers
are utilized in agricultural nutrient uptake, oil industry scale prevention and
as suspension agents in the detergent industry. Among our products are,
WaterSavr, the world's first commercially viable water evaporation retardant
that 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 that
reduces humidity and lowers water heating costs, resulting in energy savings of
15% to 40% and "Ecosavr" that has the same effect for residential swimming
pools. 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. New in 2006 is our WS-BTI
product that kills disease bearing mosquito larvae without any collateral
environmental damage.
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 Contact: Flexible Solutions International - Head Office
JASON BLOOM
Tel: 800.661.3560
Email: Info@flexiblesolutions.com
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