EXHIBIT 99.1
May 15, 2006
FLEXIBLE SOLUTIONS ANNOUNCES FIRST QUARTER, 2006 FINANCIAL RESULTS
VICTORIA, B.C., May 15, 2006 - FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (AMEX:
FSI, FRANKFURT: FXT), 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 suspention agents in the detergent industry. Today the company announced
financial results for the first quarter ended March 31, 2006.
Sales in the first quarter, of $2,508,445, were up significantly when compared
to sales, of $2,019,581, in the corresponding period a year ago. The result was
a net profit of $209,329, or $0.02 per basic weighted average share, in the
first quarter, 2006 compared to a net profit of only $54,198, or $0.00 per basic
weighted average share, in the first quarter of 2005. Basic weighted average
shares used in computing per share amounts for the quarters were 12,981,316 and
11,831,916 respectively.
Mr. Daniel B. O'Brien, CEO, states, "This was a great quarter for FSI yielding
significant growth in revenues over Q1, 2005 but, more importantly a 125%
increase in operating cash flow*. First quarter, 2006 net income reflects
$351,739 of non-cash charges ($204,118 in stock option expense) and, when
depreciation and stock option expenses are removed, the Company shows positive
operating cash flow* of $561,067 or $0.04 per share. This compares with
operating cash flow* of $245,701, or $0.02 of cash per share, in the
corresponding three months of 2005. These numbers, along with the retirement of
all debt in 2005, reflect a huge forward motion for Flexible Solutions.
*Operating cash flow is a non-GAAP measurement. The method of reconciliation
with GAAP measurements is shown in detail below.
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. Also, opportunities to synergistically cross sell the products
of all FSI divisions continue to generate leads to new business. The swimming
pool,Mosquito control and NanoChem divisions are cooperating to increase
utilization of the Peru, Illinois factory thus decreasing costs for the Company
as a whole. Note that NanoChem sales are much less seasonal than those of our
WaterSavr and Flexible Solutions Ltd divisions which has lead to less volatility
in sales figures quarter over quarter. Management will work to reduce
seasonality further over time as new marketing opportunities arise.
The following table contains supplemental information regarding income from
operations for the three months ended March 31 2006 and 2005. Adjustments to
exclude depreciation and stock option expenses are given below. 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 March 31,
(Unaudited)
- --------------------------------------------------------------------- -------------------------------------
Unaudited
-------------------------------------
Three months ended Mar 31
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2006 2005
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Revenue $ 2,508,445 $ 2,019,581
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Net income (loss) GAAP $ 209,329 $ 54,198
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Net income (loss) per common share - basic. GAAP $ 0.02 $ 0.02
- --------------------------------------------------------------------- --------------------- ---------------
Weighted average shares used in computing per share amounts - 12,981,316 11,831,916
basic. GAAP
- --------------------------------------------------------------------- --------------------- ---------------
Operating Cash flow. NON-GAAP $ 561,287(a) $ 245,701(a)
- --------------------------------------------------------------------- --------------------- ---------------
Operating Cash flow per share - basic. NON-GAAP $ 0.04(a) $ 0.02(a)
- --------------------------------------------------------------------- --------------------- ---------------
Adjustments $ 351,739(b) $ 191,503(b)
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a) Non-GAAP amounts exclude certain non-cash items, depreciation and
stock option expenses.
b) Amount represents depreciation and stock option expenses.
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.
Flexible Solutions International - Head Office
Jason Bloom
Tel: 800.661.3560
Email: Info@flexiblesolutions.com
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