A Conference call is scheduled for Thursday April 1st, 2021, 11:00am Eastern time, 8:00am Pacific Time
See dial in number and explanation below
VICTORIA, BC / ACCESSWIRE / March 31, 2021 / 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 full year ended December 31, 2020.
Mr. Daniel B. O'Brien, CEO, states, "We are very pleased with the increase in revenue, profits and cash flow in 2020, especially considering the constraints of operating during the pandemic." Mr. O'Brien continues, "We plan to continue our growth as vaccines are distributed and the economy opens."
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Sales for the Full Year were $31,407,454, up approximately 14% when compared to sales of $27,440,110 in the corresponding period a year ago. The financials show a Full Year, 2020 net profit of $2,977,050, or $0.24 per share, compared to a net income of $1,912,392, or $0.16 per share, in Full Year, 2019. Note: the financials do not take into account potential tariff rebates that are currently being applied for. The tariffs were charged on some raw materials used to manufacture products that were shipped in both 2019 and 2020.
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Basic weighted average shares used in computing earnings per share amounts were 12,240,641 and 11,945,636 for full year, 2020 and full year, 2019 respectively..
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Non-GAAP operating cash flow: For the 12 months ending December 31, 2020, net income reflects $1,007,684 of non-cash charges (depreciation, stock option expenses), as well as gain (loss) on disposition of equipment, gain(loss) on investment, interest expense, interest income, write down of inventory, Income tax expense/recovery, and pre tax Net income attributable to non-controlling interests. These are items not related to current operating activities. When these items are removed, the financials show operating cash flow of $4,514,182 or $0.37 per share. This compares with operating cash flow of $2,619,040, or $0.22 per share in the corresponding 12 months of 2019 (see the table that follows for details of these calculations).
The NanoChem division continues to be the dominant source of revenue and cash flow for the Company. New opportunities continue to unfold in detergent, water treatment, oil field extraction and agricultural use to further increase sales in this division.
Conference call
A conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific Time, on Thursday April 1st, 2021 . CEO, Dan O'Brien will be presenting and answering questions on the conference call. To participate in this call please dial 1-877‑876‑9177 (or 1-785‑424‑1672) just prior to the scheduled call time. To join the call participants will be requested to give their name and company affiliation. The conference ID: SOLUTIONS and or call title "Fourth quarter 2020 Financial Results," will be requested.
The above information and following table contain supplemental information regarding income and cash flow from operations for the period ended December 31, 2020. Adjustments to exclude depreciation, stock option expenses and one time charges are given. This financial information is a Non-GAAP financial measure as defined by SEC regulation G. The GAAP financial measure most directly comparable is net income. The reconciliation of each of the Non-GAAP financial measures is as follows:
FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
Consolidated Statement of Operations
For 12 Months Ended December 31 (12 Months Operating Cash Flow)
(Unaudited)
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12 months ended December 31 | ||||||||||
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2020 | 2019 | |||||||||
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Revenue
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$ | 31,407,454 | $ | 27,440,110 | |||||||
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Income (loss) before income tax - GAAP
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$ | 5,190,975 | $ | 2,314,621 | |||||||
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Provision for Income tax - net - GAAP
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$ | (1,607,441 | ) | $ | (17,436 | ) | |||||
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Net income (loss) - GAAP
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$ | 2,977,050 | $ | 1,912,392 | |||||||
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Net income (loss) per common share - basic. - GAAP
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$ | 0.24 | $ | 0.16 | |||||||
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12 month weighted average shares used in computing per share amounts - basic.- GAAP
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12,240,641 | 11,945,636 | |||||||||
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12 month Operating Cash Flow
Ended December 31 |
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Operating Cash Flow (12 months). NON-GAAP
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$ | 4,514,182 | a,b,c | $ | 2,619,040 | a,b,c | |||||
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Operating Cash Flow per share excluding non-operating items and items not related to current operations (12 months) - basic. -NON-GAAP
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$ | 0.37 | a,b,c | $ | 0.22 | a,b,c | |||||
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Non-cash Adjustments (12 month) -GAAP
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$ | 1,007,684 | d | $ | 866,708 | d | |||||
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Shares (12 month basic weighted average) used in computing per share amounts - basic -GAAP
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12,240,641 | 11,945,636 | |||||||||
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 2019 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 (2020 = $1,007,684, 2019 = $866,708), interest expense (2020 = $260,657, 2019 = $428,371), interest income (2020 = $53,101, 2019 = $80,731), gain on investment (2020 = $877,358, 2019 = $323,824), gain on sale of equipment (2020 = 9,490, 2019 = $2,312), Gain on acquisition of ENP Realty (2020 = $133,341, 2019 = N/A), Deferred income tax recovery (expense) (2020 = (409,553), 2019 = $602,421), Income tax (2020 = $1,197,888, 2019 = $619,857), and pre tax Net income attributable to non-controlling interests (2020 = $871,844, 2019 = $583,793). *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 (2020 = $877,358, and 2019 = $323,824), 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 Contacts:
Jason Bloom
Toll Free: 800 661 3560
Fax: 403 223 2905
E-mail: [email protected]
If you have received this news release by mistake or if you would like to be removed from our update list please reply to: [email protected]
To find out more information about Flexible Solutions and our products, please visit www.flexiblesolutions.com.
SOURCE: Flexible Solutions International, Inc.