FSI ANNOUNCES FIRST QUARTER, 2023 FINANCIAL RESULTS
May 15 2023 - 4:15PM
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 first quarter ended March 31, 2023.
Mr. Daniel B. O’Brien, CEO, states, “First
quarter was strong and we are reasonably pleased with the results.
It is possible that certain customers had inventory to work through
and it is very likely that some agricultural sales were delayed
into Q2.” Mr. O’Brien continues, “We still see growth in 2023
across most of our markets and expect the year to exceed 2022.”
- Sales for the
first quarter(Q1) were $9,847,517, down approximately 9% when
compared to sales of $10,783,280 in the corresponding period a year
ago.
- Q1, 2023 net
income was $884,369, or $0.07 per share, compared to a net income
of $1,533,059, or $0.12 per share, in Q1, 2022.
- The lower
earnings reported for Q1, 2023 were in part due to higher cost of
goods, lower sales and product mix.
- Basic weighted
average shares used in computing earnings per share amounts were
12,432,914 and 12,361,313 for Q1, 2023 and Q1, 2022
respectively.
- Q1, 2023
Non-GAAP operating cash flow: The Company shows 3 months operating
cash flow of $1,729,956, or $0.14 per share. This compares with
operating cash flow of $2,467,625, or $0.20 per share, in the
corresponding 3 months of 2022 (see the table and notes that follow
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 callA
conference call has been scheduled for 11:00 am
Eastern Time, 8:00 am Pacific Time, on
Tuesday May
16th,
2023. CEO, Dan O’Brien
will be presenting and answering questions on the conference call.
To participate in this call please dial
1-800-245-3047
(or
1-203-518-9765)
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 – First
Quarter, 2023
Financials 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, 2023. 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 March
31
(3 Months Operating Cash
Flow)(Unaudited)
|
|
3 months ended March 31 |
|
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
9,847,517 |
|
|
$ |
10,783,280 |
|
Income (loss) before income
tax – GAAP |
|
$ |
1,264,271 |
|
|
$ |
2,389,982 |
|
Provision for Income tax – net
- GAAP |
|
$ |
(299,777 |
) |
|
$ |
(712,446 |
) |
Net income (loss) -
GAAP |
|
$ |
884,369 |
|
|
$ |
1,533,059 |
|
Net income (loss) per common
share – basic. – GAAP |
|
$ |
0.07 |
|
|
$ |
0.12 |
|
3 month weighted average
shares used in computing per share amounts – basic.-
GAAP |
|
|
12,432,914 |
|
|
|
12,361,313 |
|
|
|
|
3 month Operating Cash FlowEnded March 31 |
|
Operating Cash Flow (3
months). NON-GAAP |
|
$ |
1,729,956 |
a,b,c |
|
$ |
2,467,625 |
a,b,c |
Operating Cash Flow per share
excluding non-operating items and items not related to current
operations (3 months) – basic. -NON-GAAP |
|
$ |
0.14 |
a,b,c |
|
$ |
0.20 |
a,b,c |
Non-cash Adjustments (3 month)
-GAAP |
|
|
$ 528,108 d |
|
|
|
$ 286,759 d |
|
Shares (3 month basic weighted
average) used in computing per share amounts – basic
-GAAP |
|
|
12,432,914 |
|
|
|
12,361,313 |
|
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 (2023 = $528,108, 2022 = $286,759), Interest
expense (2023 = $134,870, 2022 = $57,618), Interest income (2023 =
$12,011, 2022 = $22,088), Gain on investment (2023 = $69,995, 2022
= $36,764), Income tax (2023 = ($299,777), 2022 = ($712,446), and
pretax Net income attributable to non-controlling interests (2023 =
$115,287, 2022 = $207,882). 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 (2023 =
$69,995, 2022 = $36,764), 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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