FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex:
FSI
), 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, 2022.
Mr. Daniel B. O’Brien, CEO, states, “2022 was an
excellent year for both growth and profits. It is a testament to
the quality of our employees that we were able to execute so well.”
Mr. O’Brien adds, “It was not an easy year. We had to contend with
high input prices, inflation and shipping costs – all of which
affected our margins. We expect 2023 to bring its own problems for
us to surmount. Our estimation for 2023 is continued growth in
revenue, cash flow and profit but we are not yet able to predict
which quarters will be the most positive.”
- Sales for the
Full Year were $45,840,469, up approximately 33% when compared to
sales of $34,416,335 in the corresponding period a year ago.
- Full Year, 2022
net income was $7,021,604, or $0.57 per share, compared to a net
income of $3,449,162, or $0.28 per share, in Full Year, 2021.
- The higher
earnings reported for 2022 were in part due to a significant income
tax carry forward rebate.
- Basic weighted
average shares used in computing earnings per share amounts were
12,379,316 and 12,316,254 for full year, 2022 and full year, 2021
respectively..
- 2022 Non-GAAP
operating cash flow: The Company shows 12 months operating cash
flow of $8,442,735, or $0.68 per share. This compares with
operating cash flow of $5,645,095, or $0.46 per share, in the
corresponding 12 months of 2021 (see the table that follows for
details of these calculations).
The NanoChem division and ENP subsidiary
continue to be the dominant sources of revenue and cash flow for
the Company. New opportunities continue to unfold in detergent,
water treatment, oil field extraction, turf, ornamental and
agricultural use to further increase sales in these divisions.
Conference call
A conference call has been
scheduled for 11:00 am Eastern Time, 8:00 am Pacific Time, on
Monday April
3rd,
2023. CEO, Dan O’Brien
will be presenting and answering questions on the conference call.
To participate in this call please dial
1-800-225-9448 (or
1-203-518-9708) 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 Flexible
Solutions International - Full
Year 2022 Financials
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, 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 Non-GAAP financial
measure is as follows:
FLEXIBLE SOLUTIONS INTERNATIONAL,
INC.Consolidated Statement of
OperationsFor Full Year
Ended December
31
(12 Months Operating Cash
Flow)(Unaudited)
|
|
12 months ended December 31 |
|
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
45,840,469 |
|
|
$ |
34,416,335 |
|
Income (loss) before income
tax – GAAP |
|
$ |
7,859,085 |
|
|
$ |
6,650,756 |
|
Provision for Income tax – net
- GAAP |
|
$ |
(145,856 |
) |
|
$ |
(2,356,499 |
) |
Net income (loss) -
GAAP |
|
$ |
7,021,604 |
|
|
$ |
3,449,162 |
|
Net income (loss) per common
share – basic. – GAAP |
|
$ |
0.57 |
|
|
$ |
0.28 |
|
12 month weighted average
shares used in computing per share amounts – basic.-
GAAP |
|
|
12,379,316 |
|
|
|
12,316,254 |
|
|
|
|
12 month Operating Cash FlowEnded December 31 |
|
Operating Cash Flow (12
months). NON-GAAP |
|
$ |
8,442,735a,b,c |
|
|
$ |
5,645,095a,b,c |
|
Operating Cash Flow per share
excluding non-operating items and items not related to current
operations (12 months) – basic. -NON-GAAP |
|
$ |
0.68a,b,c |
|
|
$ |
0.46a,b,c |
|
Non-cash Adjustments (12
month) -GAAP |
|
$ |
1,676,579 d |
|
|
$ |
1,176,047 d |
|
Shares (12 month basic
weighted average) used in computing per share amounts – basic
-GAAP |
|
|
12,379,316 |
|
|
|
12,316,254 |
|
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 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 = $1,676,579, 2021 = $1,176,047),
Interest expense (2022 = $292,949, 2021 = $199,930), Interest
income (2022 = $132,233, 2021 = $77,999), PPP loan forgiveness
(2022 = N/A, 2021 = $537,960) Gain on investment (2022 = $341,424,
2021 = $507,143), gain on sale of equipment (2022 = N/A, 2021 =
N/A), Gain on sale of land (2022 = N/A, 2021 = $44,330), Gain on
acquisition of ENP Peru (2022 = $335,051, 2021 = N/A), Deferred
income tax recovery (expense) (2022 = $71,295, 2021 = ($363,317)),
Income tax (2022 = 217,151, 2021 = $1,993,182), and pretax Net
income attributable to non-controlling interests (2022 = $995,144,
2021 = $1,214,206). Also, the legal and accounting costs associated
with the attempted merger of FSI and Lygos (2022 = $417,974, 2021 =
$N/A (see news releases)) are removed to arrive at Operating Cash
Flow. Although included in operating expenses these onetime
expenditures were not related to operations of FSI. *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 are 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 (2022 =
$341,424, 2021 = $507,143), 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
International6001 54th
Ave, Taber, Alberta, CANADA T1G 1X4Company
Contacts
Jason BloomToll Free: 800 661 3560Fax: 403 223 2905E-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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