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FSI Announces Third Quarter Financial Results

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FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE AMEX: FSI, FRANKFURT: FXT), 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 Sept. 30, 2014.

Mr. Daniel B. O’Brien, CEO, states, “We are pleased with our financial progress. The increase in Q3 revenue was a result of both a rise in polyaspartate sales and the WaterSavr sale to Wichita Falls TX. Predicting the full year revenue is not possible even with less than 2 months remaining, however, we feel that the general direction of our business is upward for the next several quarters at least.”

  • Sales in the third quarter (Q3), were $3,850,514, up 29% when compared to sales of $2,980,999, in the corresponding period a year ago. The result was a GAAP accounting net income of $177,228, or $0.01 per basic weighted average shares for Q3, 2014, compared with an accounting net loss of $681,900, or $0.05 per basic weighted average share, in Q3, 2013.
  • Basic weighted average shares used in computing per share amounts in Q3 were 13,169,991 for both 2014 and 2013.
  • Non-GAAP operating cash flow: For the 9 months ending Sept. 30, 2014, net income reflects $494,922 of non-cash charges (depreciation and stock option expenses), and net income tax expense of $107,519. These items are either non-cash items or items not related to operations or current operating activities. When these items are removed, the Company shows operating cash flow of $1,023,844, or $0.08 per weighted average share. This compares with operating cash flow of $589,863, or $0.04 per share, in the corresponding 9 months of 2013 (see the table that follows for details of these calculations).

The NanoChem division continues to contribute most to our sales and cash flow and, new opportunities are unfolding to further increase sales in this division. First half sales may be larger than second half. This is due to potential growth in agricultural product sales, sales which tend to be stronger during the first half of each year.

(TABLE FOLLOWS)

* CEO, Dan O’Brien has scheduled a conference call for 11:00am EST, 8:00am PST, Monday November 17th to discuss the financials. Call 719-457-1035 (or 888-576-4398), just prior to the scheduled call time. The conference call title, “Third Quarter 2014 Financials,” may be requested. *

The above information and following table contains supplemental information regarding income and cash flow from operations for the 3 & 9 months respectively ended Sept 30, 2014 and 2013. Adjustments to exclude depreciation, stock option expenses, one time charges and certain other expenses 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 Sept. 30 (9 Months Operating Cash Flow)
(Unaudited)

3 months ended Sept. 30
2014 2013
Revenue $3,850,514 $2,980,999
Net income (loss) GAAP

$ 177,228

a

$ (681,900)

a

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

$ 0.01

a

$ (0.05)

a

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

13,169,991 13,169,991
9 month Operating Cash Flow

Ended Sept. 30

Operating Cash flow (9 months). NON-GAAP

$ 1,023,844

b

$ 589,863

b

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

$ 0.08

b

$ 0.04

b

Non-cash Adjustments (9 month)

$ 494,922

c

$1,068,011

c

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

13,169,991 13,169,991

Notes: certain items, including items not related to operations or current operating activities 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, Canada 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). The amount excludes certain non-cash items such as depreciation and stock option expenses (2014 = $494,922, 2013 = $1,068,011), as well as interest income (2014 = n/a, 2013 = $2,000) gain on sale of equipment (2014 = n/a, 2013 = $2,057) and provision for net income taxes (2014 = 107,519, 2013 = $72,480). This is a 9 month number as per financials.
c NON-GAAP - amount represents depreciation and stock option expenses (2014 = $494,922, 2013 = $1,068,011). This is a 9 month number as per financials.

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 V8T 1Z8 CANADA

Contact:

Flexible Solutions International – Head Office

Jason Bloom

Tel: 250-477-9969

Tel: 800.661.3560

Email: Info@flexiblesolutions.com

If you have received this news release by mistake or if you would like to be removed from our update list please reply to: sara@FlexibleSolutions.com
To find out more information about Flexible Solutions and our products, please visit www.flexiblesolutions.com.

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