Flexible Solutions Announces Full Year, 2016 Financial
Results.
Victoria, British Columbia (FSCwire) - 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, 2016.
Mr. Dan O’Brien, CEO states, “The oil industry was dealing with
unstable pricing during 2016 while our other major market vertical,
agriculture, struggled with low and stable prices. It is a
testimony to the hard work and skill of the FSI employee team that
we attained some growth even with these headwinds. So far in 2017,
oil prices have been more stable, allowing the industry to plan
rather than react and agriculture is more comfortable with corn at
$3.50. We think this may allow FSI to see significant growth for
full year 2017.”
- Sales for the full year 2016 were up slightly at $16,246,014
when compared to $15,898,547 for full year 2015. The result was an
after tax GAAP accounting net income of $1,793,334, or $0.16 per
weighted average share, compared to an accounting net income of
$1,504,696, or $0.11 per weighted average share in full year 2015
(note: a share buyback of 1,750,000 shares in
January 2016 has a significant effect on the earnings per share
figures).
- Non-GAAP operating cash flow: (for details see the following
table). For the 12 months ending Dec. 31, 2016, net income (loss)
reflects $925,276 of net non-cash adjustments, Income Tax expense
of $982,133, Gain on sale of equipment of $6,848 and Interest
income of $2,184. When these items, items not related to current
operations of the Company, are removed the Company shows positive
operating cash flow of $3,691,711 or $0.32 per share. This compares
with 2015 operating cash flow of $3,010,917 or $0.23 per
share.
- EBITDA for 2016 was $3,667,092 or $0.32 per share as compared
to $2,984,575 in 2015, up approximately 23% year over year.
- FSI has been carrying a deferred tax recovery asset in the
financials which was realized as an asset on the Balance Sheet in
2013. The Deferred Asset was 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 are being carried forward, as
allowable, to reduce the NanoChem Division’s revenue for income tax
calculation.
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 ongoing 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, Monday April 3, 2017 to discuss the
financials. To attend this call, dial
1-888-811-5427 (or
1-913-981-5529). The conference call
title, ‘Full Year 2016
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, 2016 and 2015.
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
|
|
|
2016
|
2015
|
|
3 month
|
3 month
revenue
|
|
Revenue
NON-GAAP
|
$ 4,083,162
|
$ 3,730,522
|
|
|
|
|
|
|
12 month
revenue
|
|
12 month
|
|
|
|
Revenue GAAP
|
$ 16,246,014
|
$ 15,898,547
|
|
Net income (loss)
GAAP
|
$ 1,793,334
a
|
$ 1,504,696
a
|
|
Net income (loss) per share
GAAP
|
$
0.16
a
|
$
0.11
a
|
|
|
|
|
|
12 month weighted average shares
used in computing per share amounts – basic
GAAP
|
11,464,270
|
13,173,827
|
|
The following calculations begin
with: Net income (loss). GAAP
|
12
month Operating Cash Flow
ended Dec.
31
|
|
Operating cash flow (12 month).
NON-GAAP.
|
$ 3,691,711
c
|
$
3,010,917 b
|
|
|
|
|
|
Operating Cash flow per share (12
months) – basic. NON-GAAP
|
$
0.32
c
|
$
0.23
b
|
|
Net Non-cash Adjustments (as per
Consolidated Statement of Cash Flow)
|
$ 925,276
d
|
$
698,607 d
|
|
12 month basic weighted average
shares used in computing per share amounts – basic.
GAAP
|
11,464,270
|
13,173,827
|
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.
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($540,079), stock compensation expense($66,318),
deferred income expense($303,793), interest income($2,184), gain on
sale of equipment($6,848), loss on investment($15,086) and income
tax expense($982,133). These are 12 month numbers as per the
financials.
d) NON-GAAP amount represents: depreciation,
stock based compensation, deferred income (expense) tax recovery,
and loss on investment 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
To view this press release as a PDF file, click onto the following
link:
public://news_release_pdf/FlexibleSolMar312017.pdf
Source: Flexible Solutions International Inc (NYSE MKT:FSI,
FWB:FXT)
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