NEWS RELEASE

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November 14, 2016

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FSI ANNOUNCES THIRD QUARTER, 2016 FINANCIAL RESULTS

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Conference call scheduled for Tuesday November 15th, 11:00am Eastern time, 8:00 AM Pacific Time

See dial in number below

 

 

VICTORIA, BRITISH COLUMBIA, November 14, 2016 – 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 September 30, 2016.

 

Mr. Daniel B. O’Brien, CEO, states, “Third quarter is historically our least strong period of the year and is also a time when product mix is less optimal. In addition, our raw material costs bottomed in Q1 while our ability to raise prices lags during periods of increasing cost of goods sold.” Mr. O’Brien continues, “The remainder of the year and into 2017, our product mix reverts positively and some price increases may become possible.”

 

 

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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, Tuesday November 15th to discuss the financials. Call 800-533-7954 (or 785-830-1924). The conference call title, “Third Quarter, 2016 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, 2016. 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:

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        FLEXIBLE SOLUTIONS INTERNATIONAL, INC.

Consolidated Statement of Operations

For 3 Months Ended September 30 (9 Months Operating Cash Flow)

(Unaudited)

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3 months ended September 30

 

2016

       2015

Revenue

     $ 3,117,034

$ 3,303,216

Income before income tax - GAAP

     $    178,201

$    314,856

 

 

 

Net income (loss)  - GAAP

     $      85,964

$    237,202

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

     $          0.01 a

$          0.02 a

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

        11,434,187 a

   13,177,208 a

 

9 month Operating Cash Flow

Ended September 30

Operating Cash flow (9 months). NON-GAAP

     $    2,837,508 b

$ 2,335,916  b

 

 

 

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

     $             0.25 b

$          0.18  b 

Non-cash Adjustments (9 month) NON-GAAP

     $       437,109 c

$     483,134 c

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

           11,468,392

    13,172,423

 

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

                 a) Non-GAAP –  A share buyback of 1,750,000 shares took place in January 2016. This change is not reflected in the 2015 earnings per share (E/S) or operating cash flow numbers. Shares outstanding at September 30, 2016 were 11,451,991. See the financials for details. As of January 2013 the accumulated loss and expenses resulting from the Alberta division may 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 (2016 = $437,109, 2015 = $483,134), interest income (2016 = $2,161, 2015 = $2,963), Gain/(Loss) on the sale of equipment (2016 = $6,848, 2015 = ($45,249)), Provision for income tax (2016 = $1,020,413, 2015 = $750,357). 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

 

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