Today: March 27, 2017, 6:42 am

Flexible Solutions Announces Full Year, 2013 Financial Results 2014-03-31 22:07:20
Conference call is scheduled for April 01, 2014. See the time and dial in number below.

Victoria, British Columbia CANADA, March 31, 2014 /FSC/ - Flexible Solutions International Inc. (FSI - American, FXT - FWB), 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 full year ended December 31, 2013.

Mr. Dan O'Brien, CEO states, "In 2013, cost of goods sold was higher than in previous years and we were not able to raise prices to all of our customers as quickly as we would have liked to. Combined with slightly lower total sales, the result was lower operating cash flow compared to 2012 [non-GAAP Mr. O'Brien continues, "Raw material prices have eased so far in 2014 and we are focusing additional efforts on recouping and increasing sales revenue in order to resume the quick growth experienced in 2010 through 2012."

* Sales for the full year 2013 were $15,801,596, down 4%, when compared to $16,400,107 for full year 2012. The result was an after tax GAAP accounting net income of $1,821,634, or $0.14 per weighted average share, compared to an accounting net loss of $1,084,447, or $0.08 per weighted average share in full year 2012.

* Non-GAAP operating cash flow: (for details see the following table). For the 12 months ending Dec. 31, 2013, net income (loss) reflects $899,450 of non-cash charges, Income Tax Recovery of $134,720, Exclusive Distributor fee of $250,000, gain on sale of equipment of $2,057, interest income of $2,000 and when non-cash items, items not related to current operations of the Company, are removed the Company shows positive operating cash flow of $533,407 or $0.04 per share. This compares with 2012 operating cash flow of $1,364,621, or $0.10 per share

* The financials show a significantly higher accounting net income in 2013 versus 2012. This is largely due to a deferred tax recovery of $2,408,395 which has been realized as an asset on the Balance Sheet. The Deferred asset is the result of the commencement of the expensing of the Alberta factory against the Company's US income. Past and current factory construction and operating expenses not yet applied against FSI's US income will now be carried forward to reduce the NanoChem Division's revenue for income tax purposes.

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. In past years, the NanoChem Division sales have been less volatile quarter over quarter, however due to increasing sales to agriculture, revenue seasonality may become larger.

Conference call

** CEO, Dan O'Brien has scheduled a conference call for 11:00am EST, 8:00am PST, Tuesday April 01, 2013 to discuss the financials. To attend this call, dial 1-877-941-0844 (or 1-480-629-9835). The conference call title, 'Full Year 2013 Financials' maybe requested **

The above information and following table contain supplemental information regarding income and cash flow from operations for the 3 & 12 months respectively ended Dec. 31, 2013 and 2012. 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:

Consolidated Statement of Operations
For 3 & 12 Months Ended Dec. 31 (12 Months Operating Cash Flow)
(12 month audited / 3 month unaudited)

3 and 12 month revenue ended
Dec. 31
2013 2012
3 month 3 month revenue
Revenue NON-GAAP $ 3,431,433 $ 3,846,275

12 month revenue
12 month
Revenue GAAP $ 15,801,596 $ 16,400,107
Net income (loss) GAAP $ 1,821,634 $ (1,084,447)
a a
Net income (loss) per share GAAP $ $
0.14 a (0.08) a

12 month weighted average shares used in 13,169,991 13,169,991
computing per share amounts - basic GAAP
12 month Operating Cash Flow
The following calculations begin with: Net income ended Dec. 31
(loss). GAAP
Operating cash flow (12 month). NON-GAAP - $ 533,407b $1,364,621c
Excludes: item "a" as indicated and as listed

Operating Cash flow per share (12 months) - $ 0.04 b $ 0.10 c
basic. NON-GAAP - Excludes: item "a" as indicated
and as listed below.
Non-cash Adjustments (as per Consolidated $ (899,450) d $ 1,325,577 d
Statement of Cash Flow)

12 month basic weighted average shares used in 13,169,991 13,169,991
computing per share amounts - basic. GAAP

Notes: certain items not related to "operations" of the Company have been excluded as follows.

a) Significant information. Expensing of the Alberta factory against US income began in 2013. This resulted in a much lower income tax expense as well as a deferred tax recovery asset recognized on the balance sheet for 2013. This created a significant difference in the net income (loss) posted in 2012 versus 2013.

b) NON-GAAP- amount excludes certain non-cash items (depreciation, stock compensation expenses, deferred and income tax recovery) as well as a gain on sale of equipment ($2,057), interest income ($2,000), and income tax recovery ($134,720). This is a 12 month number as per the financials.

c) NON-GAAP amount excludes certain non-cash items (depreciation, stock compensation expenses, and deferred income tax recovery) as well as interest income ($759), gain on sale of equipment ($2,217), and income tax ($1,126,468). This is a 12 month number as per the financials.

d) NON-GAAP amount represents depreciation, stock based compensation write down of inventory and deferred income tax recovery per the Consolidated Statement of Cash Flow.

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
615 Discovery Street, Victoria, BC V8T 5G4 CANADA

Company Contacts

Flexible Solutions International - Head Office
Jason Bloom
Tel: 250-477-9969
Tel: 800.661.3560
If you have received this news release by mistake or if you would like to be removed from our update list please reply to:

To find out more information about Flexible Solutions and our products, please visit

TO view this press release as a PDF, please click on the following link:

Source: Flexible Solutions International Inc. (NYSE Amex: FSI) (FWB: FXT)
Maximum News Dissemination by FSCwire.

Press Information

Published by
Fred Gautreau

# 1059 Words
Related Articles
More From Business
TS GNW EU IRI integration test
test test test test This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.The [..]
Santiago, Chile, March 24, 2017. Banco Santander Chile (NYSE: BSAC) ("Santander Chile" or the "Company") announced [..]
Update on HEINEKEN Acquisition of Punch Taverns [..]
Amsterdam, 24 March 2017 - Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) announced on 15 December 2016 that, through HEINEKEN UK, [..]
Almere, The NetherlandsMarch 24, 2017 ASM International N.V. (Euronext Amsterdam: ASM) today announces that Eminence Capital LP [..]
FOR IMMEDIATE RELEASE             HOUSTON, March 24, 2017 - Atwood Oceanics, Inc. (NYSE: ATW) announced today that [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.