http://www.businesswire.com/news/home/20091112006018/en
Conference call scheduled for Friday Nov. 13th, 11:00am Eastern time, 8:00am
Pacific Time
See dial in number below
VICTORIA, British Columbia--(Business Wire)--
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 Third quarter
(Q3) ended Sept. 30, 2009.
Mr. Daniel B. O`Brien, CEO, states, "This quarter marked a significant reversal
in FSI`s revenue trend for 2009. The effect of the recent recession on the
Company`s revenue was swift, negatively affecting first and second quarters of
2009. The higher revenue number for Q3 was the result of increased sales in all
product lines. The Q3, 2009 sales figure is now the largest sales number
produced in a third quarter in the history of the Company. If not for the
expensing of new factory construction and development costs ($212,077) and
interest expense ($17,217), expenses not related to current operating
activities, Flexible Solutions would have posted a positive net income from
operations for the quarter. FSI also paid income tax during Q3 of $71,000 as a
result of alternative minimum tax requirements." Mr. O`Brien continues, "I am
very pleased with our financial and new production progress."
* Sales in the third quarter (Q3), were $2,448,994, up 17% when compared to
sales of $2,097,351, in the corresponding period a year ago. The result was a
GAAP accounting net loss of $161,682, or $0.01 per basic weighted average shares
for Q3, 2009, compared with a net income of $144,429, or $0.01 per basic
weighted average share, in Q3, 2008.
* Basic weighted average shares used in computing per share amounts in Q3 were
13,962,567 for 2009 and 14,057,467 for 2008.
* Non-GAAP operating cash flow: For the 9 months ending Sept. 30, 2009, net
income reflects $500,470 of non-cash charges (depreciation and stock option
expenses), non-cash judgment from a lawsuit (return and cancelation of 100,000
outstanding common shares) of $80,000, new factory construction and development
costs of $576,544, and an alternative minimum income tax expense of $71,183.
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 $558,443, or $0.04 per weighted average share. This
compares with operating cash flow of $1,896,931, or $0.13 per share, in the
corresponding 9 months of 2008 (see the table that follows for details of these
calculations).
The sugar to aspartic acid factory in Alberta, Canada is moving toward
production. The opening ceremony for the factory took place September 18th.
Attaining full production from this facility will take a few months given the
nature of biomass production. The output will be shipped to the Company`s
Illinois factory for conversion into thermal polyaspartate (TPA). The plant was
completed on budget.
Heatsavr sales continue to recover as a result of not only higher energy costs
and higher water costs but also because the swimming pool industry is starting
to restock empty shelves. Heatsavr reduces energy costs by reducing evaporation
of warm swimming pool water.
The NanoChem division continues to contribute substantially to sales and cash
flow and, new opportunities are unfolding to further increase sales in this
division. NanoChem sales have been less seasonal than those of our WaterSavr and
Flexible Solutions Ltd divisions. This has lead to less volatility in total
revenue figures quarter over quarter. However, in the future, Q1 and Q2 sales
may be much larger than sales in Q3 and Q4. This is due to potential growth in
agricultural product sales, sales which tend to occur in Q1 and Q2. (TABLE
FOLLOWS)
* CEO, Dan O`Brien has scheduled a conference call for 11:00am EST, 8:00am PST,
Friday Nov. 13th to discuss the financials. Call 1-480-629-9771 (or
1-800-762-8779) just prior to the scheduled call time. The conference call
title, "Third Quarter 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, 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 Months Ended Sept. 30 (9 Months Operating Cash Flow)
(Unaudited)
3 months ended Sept. 30
2009 2008
Revenue $ 2,448,994 $ 2,097,351
Net income (loss) GAAP $ (161,682 ) $ 144,429
Net income (loss) per common share - basic. GAAP $ (0.01 ) $ 0.01
3 month weighted average shares used in computing per share amounts - basic. GAAP 13,962,567 14,057,567
9 month Operating Cash Flow
Ended Sept. 30
Operating Cash flow (9months). NON-GAAP $ (18,101) a $ 1,389,351 b
Operating Cash flow excluding non-operating items and items not related to current operations (9months). NON-GAAP $ 558,443 c $ 1,896,931 d
Operating Cash flow per share excluding non-operating items and items not related to current operations (9months) - basic. NON-GAAP $ 0.04 c $ 0.13 d
Non-cash Adjustments (9 month) $ 420,474 e $ 589,530 f
9 month basic weighted average shares used in computing per share amounts - basic GAAP 14,028,313 14,057,567
Notes: certain items not related to operations or current operating activities
of the Company have been excluded from net income as follows:
a NON-GAAP amounts exclude certain non-cash items (depreciation and stock option
expenses - $500,470) and recapture of past non-cash expense (judgment from
lawsuit and return and cancellation of 100,000 common shares -$80,000), as well
as interest income, and alternative minimum income taxes charged in Q3 of
$71,183. This is a 9 month number as per financials.
b NON-GAAP amounts exclude certain non-cash items (depreciation and stock option
expenses - $589,530) and interest income of $2,405. This is a 9 month number as
per financials.
c NON-GAAP amounts exclude certain non-cash items (depreciation and stock option
expense - $500,470) and recapture of past non-cash expense (judgment from
lawsuit resulting in return and cancellation of 100,000 common shares -$80,000),
as well as, certain items not related to operations or current operating
activities; new factory construction and development costs and related interest
expense ($576,544), and alternative minimum tax expense charged in Q3 ($71,183)
c NON-GAAP amounts exclude certain non-cash items (depreciation and stock option
expense - $589,530) as well as, items not related to operations or current
operating activities; interest income ($2,405), loss on sale of equipment
($29,026), write down of equipment ($41,440) and, new factory construction and
development costs ($437,114).
e NON-GAAPamount represents depreciation, stock option expenses and recapture of
past non-cash expense (a judgment from a lawsuit which resulted in return and
cancellation of 100,000 common shares of the Company).
f NON-GAAPamount represents depreciation and stock option expenses.
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
615 Discovery Street, Victoria, BCV8T 5G4 CANADA
To find out more information about Flexible Solutions and our products, please
visit www.flexiblesolutions.com.
Flexible Solutions International - Head Office
Jason Bloom
Tel: 250-477-9969
Tel: 800.661.3560
Info@flexiblesolutions.com
Copyright Business Wire 2009
