Attached files
EXHIBIT 99.1
FLEXIBLE SOLUTIONS
NEWS RELEASE March 30, 2016
FLEXIBLE SOLUTIONS ANNOUNCES FULL YEAR, 2015 FINANCIAL RESULTS
Conference call is scheduled for March 31, 2016.
See the time and dial in number below.
VICTORIA, BRITISH COLUMBIA, March 30, 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
fourth quarter and full year ended December 31, 2015.
Mr. Dan O'Brien, CEO states, we are pleased with the results of full year 2015,
given that both the oil and gas and agriculture industries have endured
headwinds. Maintaining revenue even as oil prices dropped dramatically and crop
prices were flat to down was difficult to do. We have programs in place to
resume growth in 2016 but suggest that in this environment, we have less control
than usual as to when, or if, new business will emerge."
o Sales for the full year 2015 were flat at $15,898,547 when compared to
$15,907,849 for full year 2014. The result was an after tax GAAP
accounting net income of $1,504,696, or $0.11 per weighted average
share, compared to an accounting net income of $403,345, or $0.03 per
weighted average share in full year 2014 (note: a share buy back of
1,750,000 shares in January 2016 will have a significant effect on the
earnings per share figures going forward).
o Non-GAAP operating cash flow: (for details see the following table).
For the 12 months ending Dec. 31, 2015, net income (loss) reflects
$698,607 of net non-cash adjustments, Income Tax expense of $765,328,
loss on sale of equipment of $45,249 and interest income of $2,963
When these items, items not related to current operations of the
Company, are removed the Company shows positive operating cash flow of
$3,010,917 or $0.23 per share. This compares with 2014 operating cash
flow of $1,541,679 or $0.12 per share.
o FSI is carrying a deferred tax recovery asset in the financials which
was realized as an asset on the Balance Sheet in 2013. The Deferred
Asset is the result of the commencement of the expensing of the
Alberta factory against the Company's US income. Past and current
factory construction and operating expenses not yet applied against
FSI's US income will be carried forward to reduce the NanoChem
Division's revenue for income tax purposes.
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. In past years, the NanoChem division sales have been less
volatile quarter over quarter, however due to increasing sales to agriculture,
revenue seasonality may become larger. Also new sales opportunities have
appeared in the WaterSavrTM division as a result of the on going drought in the
southern United States. Many municipalities are water stressed and are seeking
ways to conserve water.
Conference call
** CEO, Dan O'Brien has scheduled a conference call for 11:00am EST, 8:00am PST,
Thursday March 31, 2016 to discuss the financials. To attend this call, dial
1-800-505-9573 (or 1-416-204-9498). The conference call title, `Fourth Quarter
2015 Financials' maybe 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, 2015 and 2014. 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)
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3 and 12 month revenue ended
Dec. 31
2015 2014
-----------------------------
3 month 3 month revenue
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Revenue NON-GAAP $ 3,730,522 $ 3,957,623
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12 month revenue
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12 month
Revenue GAAP $15,898,547 $15,907,849
Net income (loss) GAAP $ 1,504,696 a $ 403,345 a
Net income (loss) per share GAAP $ 0.11 a $ 0.03 a
12 month weighted average shares used in
computing per share amounts - basic GAAP 13,173,827 13,169,991
-----------------------------
The following calculations begin with: Net 12 month Operating Cash Flow
income (loss). GAAP ended Dec. 31
-----------------------------
Operating cash flow (12 month). NON-GAAP - $ 3,010,917 b $ 1,541,679 c
Excludes: item "a" as indicated and as listed in
the Notes below.
Operating Cash flow per share (12 months) -
basic. NON-GAAP - Excludes: item "a" as 0.23 b $ 0.12 c
indicated and as listed in the Notes below.
Net Non-cash Adjustments (as per Consolidated
Statement of Cash Flow) $ 698,607 d $ 716,290 d
12 month basic weighted average shares
used in 13,173,827 computing per share
amounts - basic. GAAP 13,173,827 c 13,169,991
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Notes: certain items not related to "operations" of the Company have been
excluded as follows.
a) Significant information. Expensing of the Alberta factory against US income
began in 2013. This resulted in a much lower income tax expense as well as
a deferred tax recovery asset recognized on the balance sheet beginning in
2013.
b) NON-GAAP - amount excludes certain non-cash items: depreciation($578,338),
stock compensation expense($82,112), deferred income tax expense( $38,157),
interest income($2,963), loss on sale of equipment($45,249), and income tax
expense($765,328). These are 12 month numbers as per the financials.
c) NON-GAAP - amount excludes certain non-cash items: depreciation($789,733),
stock compensation expense($91,168), deferred income tax recovery
($164,611), interest income($N/A), loss on sale of equipment($N/A),
and income tax expense($422,044). These are 12 month numbers as per the
financials. d) NON-GAAP amount represents: depreciation, stock based
compensation, and deferred income tax expense/recovery per the Consolidated
Statement of Cash Flows.
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
Company Contacts
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: danielle@flexiblesolutions.com
To find out more information about Flexible Solutions and our products, please
visit www.flexiblesolutions.com
