FSI Announces Third Quarter, 2015 Financial Results

Conference Call Scheduled For Monday November 16th, 11:00am Eastern Time, 8:00am Pacific Time; See Dial in Number Below

VICTORIA, BC / ACCESSWIRE / November 13, 2015 / FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE MKT: FSI, FRANKFURT: 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 the third quarter (Q3) ended September 30, 2015.

Mr. Daniel B. O’Brien, CEO, states, “Most of the top line revenue miss was due to the heavy flooding in Texas that prevented WaterSavr sales there. Careful cost control allowed us to increase our income slightly even with the reduced revenue and we look forward to possible resumption of top line growth in the coming quarters. We are also concentrating on multiple US states for 2016 Watersavr sales to reduce the chances of losing all sales to a single weather event.”

– Sales in the third quarter (Q3) were $3,303,216, down approximately 14% when compared to sales of $3,850,514 in the corresponding period a year ago. The financials give a Q3, 2015 accounting net income of $237,202 or $0.02 per share compared to an accounting net income of $177,228, or $0.01 per share in Q3, 2014.

– Basic weighted average shares used in computing net income in Q3 were 13,177,208 and 13,169,991 for 2015 and 2014 respectively.

– Non-GAAP operating cash flow: For the 9 months ending September 30, 2015, net income reflects $483,134 of non-cash charges (depreciation and stock option expenses), as well as net income tax ($750,357), loss on sale of equipment ($45,249) and interest income ($2,963) which are items not related to operating or current operating activities. When these items are removed the Company shows operating cash flow of $2,335,916, or $0.18 per share. This compares with operating cash flow of $1,023,844, or $0.08 per share, in the corresponding 9 months of 2014 (see the table that follows for details of these calculations).

The NanoChem division continues to produce most of FSI’s revenue and cash flow. New opportunities are unfolding to further increase sales in this division.

*CEO, Dan O’Brien has scheduled a conference call for 11:00am EST, 8:00am PST, Monday November 16th to discuss the financials. Call 888-430-8694 (or 719-325-2463). The conference call title, “Third Quarter, 2015 Financial Results,” may be requested.*

The above information and following table contain supplemental information regarding income and cash flow from operations for the 9 months ended September 30, 2015. 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 3 Months Ended September 30 (9 Months Operating Cash Flow)
(Unaudited)

3 months ended September 30

2015

2014

Revenue

$ 3,303,216

$ 3,850,524

Income before income tax – GAAP

$ 314,856

$ 186,038

Net income (loss) – GAAP

$ 237,202 a

$ 177,228 a

Net income (loss) per common share – basic. – GAAP

$ 0.02 a

$ 0.01 a

3 month weighted average shares used in computing per share amounts – basic – GAAP

13,177,208

13,169,991

9 month Operating Cash Flow

Ended September 30

Operating Cash flow (9 months). NON-GAAP

$ 2,335,916 b

$ 1,023,844 b

Operating Cash flow per share excluding non-operating items and items not related to current operations (9 months) – basic. NON-GAAP

$ 0.18 b

$ 0.08 b

Non-cash Adjustments (9 month) NON-GAAP

$ 483,134 c

$ 494,922 c

9 month weighted average shares used in computing per share amounts – basic – GAAP

13,172,423

13,169,991

Notes: certain items not related to “operations” of the Company have been excluded from net income as follows.

a) Non-GAAP – as of January 2013 the accumulated loss and expenses resulting from the Alberta division can now be used to reduce taxable income from the Illinois division.

b) Non-GAAP – This calculation begins with 9 month Net income (loss). Amounts exclude certain non-cash items: depreciation and stock option expense (2015 = $483,134, 2014 = $494,922), interest income (2015 = $2,963, 2014 = $0), Loss on the sale of equipment (2015 = $45,249, 2014 = $0), Provision for income tax (2015 = $750,357, 2014 = $107,519). See Operating Cash Flow for other adjustments.

c) Non-GAAP – amounts represent depreciation, and stock option 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
206 – 920 Hillside Ave, Victoria, BC CANADA V8T 1Z8

Company contacts

Jason Bloom
Tel: 250 477 9969
Toll Free: 800 661 3560
Fax: 250 477 9912
E-mail: info@flexiblesolutions.com

To find out more information about Flexible Solutions and our products, please visit www.flexiblesolutions.com.

SOURCE: Flexible Solutions International

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