FSI ANNOUNCES First Quarter, 2022 FINANCIAL RESULTS
May 16 2022 - 4:30PM
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 first quarter (Q1) ended March 31, 2022.
Mr. Daniel B. O’Brien, CEO, states, “This
quarter was very good with strong contributions from all our
product lines. We expect the next quarter to be good as well,
however, there are still macro issues with international shipping
for both price and availability.” Mr. O’Brien continues, “The FSI
team is skilled at dealing with these types of problems and we
expect to do as well as anyone can.”
- Sales in the first quarter (Q1)
were $10,783,280, compared to sales of $7,624,607 in the
corresponding period a year ago. The financials show a Q1, 2022 net
profit of $1,533,059, or $0.12 per share, compared to a net profit
of $1,450,571, or $0.12 per share, in Q1, 2021.
- Basic weighted average shares used
in computing earnings per share amounts in Q1 were 12,361,313 and
12,292,452 for Q1, 2022 and Q1, 2021 respectively.
- Non-GAAP operating cash flow: For
the quarter ending March 31, 2022, net income reflects $286,759 of
non-cash charges (depreciation, stock option expenses) as well as
gain on investment, interest expense, interest income, and income
tax. Pre-tax net income attributable to non-controlling interests
(minority interest) is also removed from the cash flow calculation.
These are items not related to operating or current operating
activities. When these items are removed, the Company shows
operating cash flow of $2,467,625, or $0.20 per share. This
compares with operating cash flow of $1,429,112, or $0.12 per
share, in the corresponding 3 months of 2021 (see the table that
follows for details of these calculations).
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 callA
conference call has been scheduled for 11:00 am
Eastern Time, 8:00 am Pacific Time, on Tuesday, May
17th. CEO, Dan O’Brien will be presenting
and answering questions on the conference call. To participate in
this call please dial
(1)-866-342-8591
(or
(1)-203-518-9713)
just prior to the scheduled call time. The conference call title,
“FSI First Quarter 2022 Financial Results,” may be
requested.
The above information and following table
contain supplemental information regarding income and cash flow
from operations for the period ended March 31, 2022. 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
OperationsFor 3
Months Ended March
31
(3 Months Operating Cash
Flow)(Unaudited)
|
|
3 Months Ended March 31 |
|
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
10,783,280 |
|
|
$ |
7,624,697 |
|
Operating income |
|
$ |
2,331,130 |
|
|
$ |
1,365,285 |
|
Income (loss) before income
tax - GAAP |
|
$ |
2,389,982 |
|
|
$ |
2,122,511 |
|
Provision for Income tax
(expense) / recovery - GAAP |
|
$ |
(712,446 |
) |
|
$ |
(485,456 |
) |
Net income (loss) -
GAAP |
|
$ |
1,533,059 |
|
|
$ |
1,450,571 |
|
Net income (loss) per common
share – basic. - GAAP |
|
$ |
0.12 |
|
|
$ |
0.12 |
|
3 month weighted average
shares used in computing per share amounts – basic.-
GAAP |
|
|
12,361,313 |
|
|
|
12,292,452 |
|
|
|
3 Months Operating Cash FlowEnded March
31 |
|
Operating Cash flow
(3 months). NON-GAAP |
|
$ |
2,467,625 |
a,b,c |
|
$ |
1,429,112 |
a,b,c |
|
|
|
|
|
|
|
|
|
|
|
Operating Cash flow per share
excluding non-operating items and items not related to current
operations (3 months) – basic. NON-GAAP |
|
$ |
0.20 |
a,b,c |
|
$ |
0.12 |
a,b,c |
|
Non-cash Adjustments (3 month)
GAAP |
|
$ |
286,759 |
d |
|
$ |
272,554 |
d |
|
Shares (3 month basic weighted
average) used in computing per share amounts – basic
GAAP |
|
|
12,361,313 |
|
|
|
12,292,452 |
|
|
Notes: certain items not
related to “operations” of the Company have been excluded from net
income as follows.
a) Non-GAAP -
Flexible Solutions International
Inc. purchased 65% of ENP
Investments LLC 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 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 (2022 = $286,759, 2021 = $272,554),
interest expense (2022 = $57,618, 2021 = $62,274), interest income
(2022 = $22,088, 2021 = $10,298), gain on investment (2022 =
$36,764, 2021 = $208,968), PPP loan forgiveness (2022 = N/A, 2021 =
$537,960), income tax (2022 =
$712,446, 2021 = $485,456,) and pre-tax net income
attributable to non-controlling interests (2022 = $207,882, 2021 =
$271,001. 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, including that of 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
International6001 54th Ave, Taber, Alberta, CANADA
T1G 1X4
Company ContactsJason BloomToll Free: 800 661 3560 Fax: 403
223 2905 E-mail: 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: info@flexiblesolutions.com
To find out more information about Flexible
Solutions and our products, please visit
www.flexiblesolutions.com.
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