FSI ANNOUNCES Second Quarter, 2022 FINANCIAL RESULTS
August 15 2022 - 4:15PM
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 second
quarter (Q2) ended June 30, 2022.
Mr. Daniel B. O’Brien, CEO, states, “Second
quarter results were very good and combined with Q1, result in
record half year revenue and earnings. Our employees must be
commended for the effort needed to expand sales and production so
quickly.” Mr. O’Brien continues, “We intend to do everything
possible to continue the recent momentum for the next several
quarters.”
- Sales in the second quarter (Q2)
were $11,165,143, compared to sales of $8,535,451 in the
corresponding period a year ago. The financials show a Q2, 2022 net
profit of $1,662,454, or $0.13 per share, compared to a net profit
of $1,176,761, or $0.10 per share, in Q2, 2021.
- Basic weighted average shares used
in computing earnings per share amounts were 12,384,131 and
12,304,163 for Q2, 2022 and Q2, 2021 respectively.
- Non-GAAP operating cash flow: For
the six months ending June 30, 2022, net income reflects $581,783
non-cash charges (depreciation and stock option expenses), PPP loan
forgiveness (in 2021 only), as well as gain on investment, interest
expense, interest income, and income tax. Net income attributable
to non-controlling interests (minority interest) is 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 $4,560,754, or $0.37 per
share. This compares with operating cash flow of $3,293,783, or
$0.27 per share, in the corresponding 6 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,
August
16th. 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. The conference call title,
“FSI Second
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 June 30, 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 June
30
(6 Months Operating Cash
Flow)(Unaudited)
|
3 months ended June 30 |
|
|
2022 |
|
|
2021 |
|
Revenue |
$ |
11,165,143 |
|
$ |
8,535,451 |
|
Income (loss) before income tax - GAAP |
$ |
2,371,372 |
|
$ |
1,923,937 |
|
Provision for Income tax (expense) / recovery -
GAAP |
$ |
(542,803 |
) |
$ |
(478,727 |
) |
Net income (loss) (controlling interest only) -
GAAP |
$ |
1,662,454 |
|
$ |
1,176,761 |
|
Net income (loss) per common share – basic. -
GAAP |
$ |
0.13 |
|
$ |
0.10 |
|
3
month weighted average shares used in computing per share amounts –
basic.- GAAP |
|
12,384,131 |
|
|
12,304,163 |
|
|
6 month Operating Cash FlowEnded
June 30 |
Operating Cash flow (6 months). NON-GAAP |
$4,560,754 a,b,c |
$3,293,783 a,b,c |
|
|
|
Operating Cash flow per share excluding non-operating items and
items not related to current operations (6 months) – basic.
NON-GAAP |
$ 0.37 a,b,c |
$ 0.27 a,b,c |
Non-cash Adjustments (6 month) GAAP |
$ 581,473 d |
$ 558,580 d |
6 month weighted average shares used in computing per share amounts
– basic - GAAP |
|
12,372,785 |
12,315,746 |
|
Notes: certain items not
related to “operations” of the Company have been excluded from net
income as follows.
a) Non-GAAP -::
Flexible Solutions International purchased 65% of ENP in
4th quarter, 2018 (October 2018).
Therefore Operating Cash Flow is adjusted by the
net income or loss of the non-controlling
interest in ENP (2022 =
$310,592, 2021 =
$454,933).
b) Non-GAAP - amounts exclude certain cash
and non-cash items: depreciation and stock compensation expense
(2022 =
$581,743,
2021 =
$558,580), interest expense
(2022 =
$109,757,
2021 =
$113,329), interest income
(2022 =
$32,141,
2021 =
$32,445), gain on investment
(2022 =
$214,316,
2021 =
$399,236), gain
on acquisition of ENP Peru (2022 = 335,051, 2021 =
N/A) PPP loan forgiveness
(2022 =
N/A,
2021 =
$537,960), write down of inventory
(2022 = N/A,
2021 = N/A),
deferred income tax recovery (2022
= N/A, 2021
= N/A),
Income tax (2022
= $1,255,249,
2021 =
$964,183), and
Net income attributable to non-controlling
interests(see a above). 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
International, Inc.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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