A Conference call is scheduled for Tuesday March 31st, 11:00am Eastern time, 8:00am Pacific Time
See dial in number and explanation below
VICTORIA, BC / ACCESSWIRE / March 30, 2020 / FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex:FSI)(FXT.F), 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, 2019.
Mr. Daniel B. O'Brien, CEO, states, "2019 was a positive year for the Company. Our acquisition and investment performed well as did our core business." Mr. O'Brien continues, "The spread of COVID-19 through the world economy will cause unknown disruption to our operations in 2020."
- Sales for the Full Year were $27,440,110, up approximately 54% when compared to sales of $17,829,518 in the corresponding period a year ago. The financials show a Full Year, 2019 net profit of $1,912,392, or $0.16 per share, compared to a net income of $2,490,268, or $0.21 per share, in Full Year, 2018. Note: the financials do not take into account potential tariff rebates that are currently being applied for. The tariffs were charged on product remanufactured and shipped in 2019. Also, 2018 net income includes a "Gain from involuntary disposition" of $1,714,261 from an insurance payout. The payout resulted from a fire at the Company's Taber, Alberta facility.
- Basic weighted average shares used in computing earnings per share amounts were 11,945,636 and 11,630,136 for full year, 2019 and full year, 2018 respectively..
- Non-GAAP operating cash flow: For the 12 months ending December 31, 2019, net income reflects $866,708 of non-cash charges (depreciation, stock option expenses), as well as gain (loss) on disposition (and involuntary disposition) of equipment, gain on investment, interest expense, interest income, write down of inventory, income tax, and Net income attributable to non-controlling interests. These are items not related to operating or current operating activities. When these items are removed, the financials show operating cash flow of $2,818,040, or $0.24 per share. This compares with operating cash flow of $1,922,473, or $0.17 per share in the corresponding 12 months of 2018 (see the table that follows for details of these calculations).
The NanoChem division continues to be the dominant source of revenue and cash flow for the Company. New opportunities continue to unfold in detergent, water treatment, oil field extraction and agricultural use to further increase sales in this division.
A conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific Time, on Tuesday March 31st . CEO, Dan O'Brien will be presenting and answering questions on the conference call. To participate in this call please dial 1 888-207-0293 (or 1 334-323-9869) just prior to the scheduled call time. To join the call participants will be requested to give their name then enter the participant code 798944. The conference call title is "Full Year 2019 Financials"
The above information and following table contain supplemental information regarding income and cash flow from operations for the period ended December 31, 2019. Adjustments to exclude depreciation, stock option expenses and one time charges are given. This financial information is a Non-GAAP financial measure as defined by SEC regulation G. The GAAP financial measure most directly comparable is net income. The reconciliation of each of the Non-GAAP financial measures is as follows:
FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
Consolidated Statement of Operations
For 12 Months Ended December 31 (12 Months Operating Cash Flow)
|12 months ended December 31|
Income (loss) before income tax - GAAP
Provision for Income tax - net - GAAP
Net income (loss) - GAAP
Net income (loss) per common share - basic. - GAAP
12 month weighted average shares used in computing per share amounts - basic. - GAAP
12 month Operating Cash Flow
Ended December 31
Operating Cash Flow (12 months). NON-GAAP
|$||2,818,040 b,c,d||$||1,922,981 b,c|
Operating Cash Flow per share excluding non-operating items and items not related to current operations (12 months) - basic. NON-GAAP
|$||0.24 b,c,d||$||0.17 b,c|
Non-cash Adjustments (12 month) GAAP
|$||866,708 e||$||453,753 e|
Shares (12 month basic weighted average) used in computing per share amounts - basic GAAP
Notes: certain items not related to "operations" of the Company net income are listed below.
a) Non-GAAP - A "Gain on involuntary disposition" of $1,714,261 was the result of a fire that destroyed one of FSI's buildings located in Alberta, Canada. This is not income from operations.
b) 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.
c) Non-GAAP - amounts exclude certain cash and non-cash items: depreciation and stock compensation expense (2019 = $866,708, 2018 = $453,753), interest expense (2019 = $428,371, 2018 = $93,653), interest income (2019 = $80,731, 2018 = $36,843), gain on investment (2019 = $323,824, 2018 = $(3,281), gain on sale of equipment (2019 = $2,312, 2018 = $N/A), net gain/(loss) on involuntary disposition of equipment (2019 = N/A, 2018 = $1,714,261), write down of inventory (2019 = N/A, 2018 = N/A), deferred income tax recovery (expense) (2019 = $602,421, 2018 = ($100,000), Income tax (2019 = 619,857, 2018 = $533,130), and Net income attributable to non-controlling interests (2019 = $384,793, 2018 = ($68,551)). See the financial statements for all adjustments.
d) 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 2019 $323,824 in gains from all investments, including that of the Florida LLC, are removed from the calculation to arrive at Operating Cash Flow. The $3,281 of investment loss for 2018 is also removed to arrive at operating cash flow for that year.
e) 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
Toll Free: 800 661 3560
Fax: 403 223 2905
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To find out more information about Flexible Solutions and our products, please visit www.flexiblesolutions.com.
SOURCE: Flexible Solutions International
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