News Release

March 30, 2010

FLEXIBLE SOLUTIONS ANNOUNCES FULL YEAR, 2009 FINANCIAL RESULTS

Conference call is scheduled for March 31, 2010. See the time and dial in number below.

 

VICTORIA, BRITISH COLUMBIA, Mar 30, 2009 – FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex: FSI, FRANKFURT: FXT), a developer and manufacturer of biodegradable and environmentally safe, water and energy conservation technology, as well as anti-scalant and crop nutrient enhancement products, today announces financial results for the full year ended Dec. 31, 2009.

Mr. Daniel B. O’Brien, CEO, states, “2009 started out as a difficult year for FSI as it did for most companies. However, for FSI the year finished quite well. Revenues for first and second quarters were down 24% and 22% respectively, yet revenue for the full year was down only 9%. A turn around in the second half of the year, to positive revenue growth, was the reason for the improvement. The NanoChem division continues to be the dominant source of revenue and cash flow for the Company. In fact, as a result of profits, close to $400,000 in income tax was paid by that division in 2009.” 

      

 

The NanoChem division continues to be the dominant source of revenue and cash flow for the Company. New opportunities continue to unfold in detergent, oil field extraction and fertilizer use to further increase sales in this division. In past years, the NanoChem Division sales have been less volatile quarter over quarter than FSI’s other divisions. However, due to sales into agriculture, increased volatility may be more apparent going forward.

Mr. O’Brien continues, “I am pleased with how well our company has weathered the worst business conditions any of us have ever experienced. Our dedication to lean operations, low leverage and sales to multiple market verticals has served us well. As the world recovers I look forward to our scientific advancements and new production methods driving strong growth in sales, cash flow and profits.”

 

Conference call

** CEO, Dan O’Brien has scheduled a conference call for 11:00am EST, 8:00am PST, Friday Mar.31, to discuss the financials. To attend this call, dial 1-877-941-0844 (or 1-480-629-9645). The conference call title, ‘Fourth Quarter Financials may be requested **

The above information and following table contain supplemental information regarding income and cash flow from operations for the 3 & 12 months respectively ended Dec. 31, 2009 and 2008. 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 & 12 Months Ended Dec. 31 (12 Months Operating Cash Flow)

(12 month audited  /  3 month unaudited)

   

 

3 and 12 month revenue ended Dec. 31

 

2009

2008

3 month

3 month revenue

 

Revenue

$    2,402,195

$2,238,213

     
     
 

12 month revenue

 

12 month

   

Revenue

$   9,783,496

$ 10,756,654

Net income (loss) GAAP

$     (743,442)

$      404,605 

Net income (loss) per share GAAP

$           (0.05)

$            0.03 

Net income (loss) Excludes “income tax as indicated and as listed below” NON-GAAP

$     (467,459) a

$      473,166 a

Net income (loss) per share excluding “income tax”  NON-GAAP

$           (0.03) a

$            0.03 a

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

14,020,375 

 14,058,033

The following calculations begin with: Net income (loss) GAAP

12 month Operating Cash Flow

ended Dec. 31

Operating cash flow (12 month). NON-GAAPExcludes: a and c as indicated and as listed below

$   131,858 a,b

   $   1,336,801 a,b

Operating cash flow (12 month). NON-GAAP Excludes: a.c and e as indicated and as listed below

$   956,321 a,b,c

   $   1,912,453 a,b,c

Operating Cash flow per share (12 months) – basic. NON-GAAPExcludes: items “a,b and c” as indicated and as listed below.

$       $0.07 a,b,c        

   $            0.14 a,b,c

Non-cash Adjustments (as per 12 month Statement of Cash Flow)

 Adjustments – other (as listed below)

$   599,317 b

$1,100,446 a,c

   $      863,635 b

   $      644,213 a,c

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

  14,020,375 

        14,058,033

     

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

a)  NON-GAAP- “income tax (Net Income Tax: 2009 = $275,983, 2008 = $68,561

b NON-GAAP- Non-cash Adjustments for 2009 and 2008, depreciation, stock compensation expenses, write down of investment and inventory, loss on sale of equipment, other expenses, and shares for service (see - Consolidated Statement of Cash Flow).

c) NON-GAAP- Other Non-operating adjustments – add “New factory construction costs (2009 =$824,463 and 2008 =568,135), deduct interest income (interest income: 2009 = $0, 2008 = $2,483), and add write down of asset (2008 = $10,000) which are unrelated to the “current operations” of the Company. 

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.