NEWS RELEASE

31 March 2021

 

FSI ANNOUNCES Full Year, 2020 FINANCIAL RESULTS: NET PROFIT up 50%

A Conference call is scheduled for Thursday April 1st, 2021, 11:00am Eastern time, 8:00am Pacific Time

See dial in number and explanation below

 

 

VICTORIA, BRITISH COLUMBIA, March 31, 2021 – 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 full year ended December 31, 2020.

 

Mr. Daniel B. O’Brien, CEO, states, “We are very pleased with the increase in revenue, profits and cash flow in 2020, especially considering the constraints of operating during the pandemic.” Mr. O’Brien continues, “We plan to continue our growth as vaccines are distributed and the economy opens.”

 

 

 

 

 

 

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.

 

Conference call

A conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific Time, on Thursday April 1st, 2021 . CEO, Dan O’Brien will be presenting and answering questions on the conference call. To participate in this call please dial 1-877‑876‑9177 (or 1-785‑424‑1672) just prior to the scheduled call time. To join the call participants will be requested to give their name and company affiliation. The conference ID: SOLUTIONS and or call title  “Fourth quarter 2020 Financial Results,” will be requested

 

The above information and following table contain supplemental information regarding income and cash flow from operations for the period ended December 31, 2020. 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)

(Unaudited)

 

12 months ended December 31

 

2020

       2019

Revenue

     $31,407,454

$27,440,110

Income (loss) before income tax - GAAP

     $  5,190,975

2,314,621   

Provision for Income tax - net  - GAAP

     $ (1,607,441)

$      (17,436)    

Net income (loss)  - GAAP

     $  2,977,050

$  1,912,392

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

     $           0.24

$           0.16   

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

        12,240,641

   11,945,636

 

12 month Operating Cash Flow

Ended December 31

Operating Cash Flow (12 months). NON-GAAP

     $4,514,182a,b,c

$2,619,040a,b,c   

 

 

 

Operating Cash Flow per share excluding non-operating items and items not related to current operations (12 months) – basic. -NON-GAAP

     $         0.37a,b,c

$          0.22a,b,c 

Non-cash Adjustments (12 month) -GAAP

     $1,007,684 d

$    866,708 d

Shares (12 month basic weighted average)  used in computing per share amounts – basic -GAAP

      12,240,641

   11,945,636

 

Notes: certain items not related to “operations” of the Company’s net income are listed below.

 

a) Non-GAAP - Flexible Solutions International purchased 65% of ENP in 4th quarter, 2018 (October 2018). Therefore Operating Cash Flow is adjusted by the pre tax Net income or loss of the non-controlling interest in ENP. An adjustment to 2019 Operating cash flow has been made to account for the use of a pre tax amount versus an after tax amount which was originally used in that year. 

b) Non-GAAP - amounts exclude certain cash and non-cash items: depreciation and stock compensation expense (2020 = $1,007,684, 2019 = $866,708), interest expense (2020 = $260,657, 2019 = $428,371), interest income (2020 = $53,101, 2019 = $80,731), gain on investment (2020 = $877,358, 2019 = $323,824), gain on sale of equipment (2020 = 9,490, 2019 = $2,312),  Gain on acquisition of ENP Realty (2020 = $133,341, 2019 = N/A),  Deferred income tax recovery (expense) (2020 = (409,553), 2019 = $602,421), Income tax (2020 = $1,197,888, 2019 = $619,857), and pre tax Net income attributable to non-controlling interests (2020 = $871,844, 2019 = $583,793). *See the financial statements for all adjustments.

c) 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 gains from all investments (2020 = $877,358, and 2019 = $323,824), including those from the Florida LLC, are removed from the calculation to arrive at Operating Cash Flow.

d) 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

Company Contacts

Jason Bloom

Toll Free: 800 661 3560

Fax: 403 223 2905

E-mail: info@flexiblesolutions.com