FSI ANNOUNCES SECOND QUARTER, 2023 FINANCIAL RESULTS
August 14 2023 - 04:30PM
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 second quarter ended June 30, 2023.
Mr. Daniel B. O’Brien, CEO, states, “Second
quarter was disappointing. We had predicted a rebound which did not
occur. Sales in our new food products have been slow to come and we
think it may take longer than expected to develop this market
vertical.” “Mr. O’Brien continues, “We are observing headwinds in
most of our markets now and expect full year revenue to be flat to
mildly down compared to 2022.”
- Sales for the
second quarter(Q2) were $10,331,291, down approximately 7% when
compared to sales of $11,165,143 in the corresponding period a year
ago.
- Q2, 2023 net
income was $809,865, or $0.07 per share, compared to a net income
of $1,662,455, or $0.13 per share, in Q1, 2022.
- The lower
earnings reported for Q2, 2023 were due to higher cost of goods,
lower sales and product mix.
- Basic weighted
average shares used in computing earnings per share amounts were
12,435,532 and 12,384,131 for Q2, 2023 and Q2, 2022
respectively.
- Q2, 2023
Non-GAAP operating cash flow: The Company shows 6 months operating
cash flow of $3,220,674, or $0.26 per share. This compares with
operating cash flow of $4,422,664, or $0.36 per share, in the
corresponding 6 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 call
A conference call has been
scheduled for 11:00 am Eastern Time, 8:00 am Pacific Time, on
Tuesday August
15th,
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 –
Second 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 June 30, 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 The 3
Months Ended June
30
(6 Months Operating Cash
Flow)(Unaudited)
|
|
3 months ended June 30 |
|
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
10,331,291 |
|
|
$ |
11,165,143 |
|
Income (loss) before income
tax – GAAP |
|
$ |
1,349,099 |
|
|
$ |
2,371,372 |
|
Provision for Income tax – net
- GAAP |
|
$ |
(354,372 |
) |
|
$ |
(542,802 |
) |
Net income (loss) -
controlling interest - GAAP |
|
$ |
809,865 |
|
|
$ |
1,662,455 |
|
Net income (loss) per common
share – basic. – GAAP |
|
$ |
0.07 |
|
|
$ |
0.13 |
|
3 month weighted average
shares used in computing per share amounts – basic.-
GAAP |
|
|
12,435,532 |
|
|
|
12,384,131 |
|
|
|
|
6 month Operating Cash FlowEnded June 30 |
|
Operating Cash Flow (6
months). NON-GAAP |
|
$ |
3,220,674 |
a,b,c |
|
$ |
4,422,664 |
a,b,c |
Operating Cash Flow per share
excluding non-operating items and items not related to current
operations (6 months) – basic. -NON-GAAP |
|
$ |
0.26 |
a,b,c |
|
$ |
0.36 |
a,b,c |
Non-cash Adjustments (6 month)
-GAAP |
|
$ |
1,118,100 |
d |
|
$ |
581,743 |
d |
Shares (6 month basic weighted
average) used in computing per share amounts – basic
-GAAP |
|
|
12,434,230 |
|
|
|
12,372,785 |
|
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 = $1,118,100, 2022 = $581,743), Gain on
acquisition of ENP Peru (2023 = N/A, 2022 = $335,051), Interest
expense (2023 = $250,368, 2022 = $109,757), Interest income (2023 =
$53,185, 2022 = $32,141), Gain on investment (2023 = $326,703, 2022
= $214,316), Income tax (2023 = ($654,149), 2022 = ($1,255,248),
and pretax Net income attributable to non-controlling interests
(2023 = $381,276, 2022 = $448,682). 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, 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 International
6001 54th
Ave, Taber, Alberta, CANADA T1G 1X4
Company ContactsJason 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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