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, 2021.
Mr. Daniel B. O’Brien, CEO, states, “We are very
pleased with the results for 2021. In addition to the 10% revenue
increase, profits were up 16% and operating cash flow increased by
24%. These results were achieved in a year when shipping costs
quintupled and raw materials prices increased very rapidly. It’s
due to the skill and hard work of the whole FSI team that we were
so successful.”
Mr. O’Brien continues, “In 2021, we engaged with
new prospective customers and introduced additional products to
existing customers. We anticipate that much of this preparation
will result in new sales in 2022. We estimate that we will exceed
last years growth and profit results in the 22 year.”
- Sales for the Full Year were
$34,416,335, up approximately 10% when compared to sales of
$31,407,454 in the corresponding period a year ago. The financials
show a Full Year, 2021 net profit of $3,449,162, or $0.28 per
share, compared to a net income of $2,977,050, or $0.24 per share,
in Full Year, 2020. 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 from 2019 through 2021.
- Basic weighted average shares used
in computing earnings per share amounts were 12,316,254 and
12,240,641 for full year, 2021 and full year, 2020
respectively..
- Non-GAAP operating cash flow: For
the 12 months ending December 31, 2021, net income reflects
$1,176,047 of non-cash charges (depreciation, stock option
expenses), as well as Gain (loss) on sale of land, 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 $5,645,095 or $0.46 per share. This
compares with operating cash flow of $ 4,514,182, or $0.37 per
share in the corresponding 12 months of 2020 (see the table that
follows 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
Friday April
1st,
2022. CEO, Dan O’Brien
will be presenting and answering questions on the conference call.
To participate in this call please dial
1-866-518-6930
(or
1-203-518-9713)
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 - Full
Year 2021 Financials 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, 2021. 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 Full Year
Ended December
31
(12 Months Operating Cash
Flow)(Unaudited)
|
|
12 months ended December 31 |
|
|
|
2021 |
|
|
2020 |
|
Revenue |
|
$ |
34,416,335 |
|
|
$ |
31,407,454 |
|
Income (loss) before income
tax - GAAP |
|
$ |
6,650,756 |
|
|
$ |
5,190,975 |
|
Provision for Income tax - net
- GAAP |
|
$ |
(2,356,499 |
) |
|
$ |
(1,607,441 |
) |
Net income (loss) -
GAAP |
|
$ |
3,449,162 |
|
|
$ |
2,977,050 |
|
Net income (loss) per common
share – basic. - GAAP |
|
$ |
0.28 |
|
|
$ |
0.24 |
|
12 month weighted average
shares used in computing per share amounts – basic.-
GAAP |
|
|
12,316,254 |
|
|
|
12,240,641 |
|
|
|
12 month Operating Cash FlowEnded December 31 |
|
Operating Cash Flow (12
months). NON-GAAP |
|
$ |
5,645,095a,b,c |
|
|
$ |
4,514,182a,b,c |
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow per share
excluding non-operating items and items not related to current
operations (12 months) – basic. -NON-GAAP |
|
$ |
0.46a,b,c |
|
|
$ |
0.37a,b,c |
|
Non-cash Adjustments (12
month) -GAAP |
|
$ |
1,176,047d |
|
|
$ |
1,007,684d |
|
Shares (12 month basic
weighted average) used in computing per share amounts – basic
-GAAP |
|
|
12,316,254 |
|
|
|
12,240,641 |
|
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
(2021
= $1,176,047,
2020 =
$1,007,684),
Interest expense (2021 =
$199,930, 2020 =
$260,657),
Interest income (2021 =
$77,999, 2020 =
$53,101), Gain
on investment (2021 =
$507,143, 2020 =
$877,358),
gain on sale of equipment
(2021 = N/A, 2020 =
9,490), Gain on sale of property
(2021 = $44,330,
2020 = N/A), Gain on acquisition of ENP Realty
(2021 = N/A, 2020 =
$133,341), Deferred
income tax
recovery (expense)
(2021 =
($363,317),
2020 =
($409,553)),
Income tax (2021 =
$1,993,182, 2020
= $1,197,888), and
pretax Net income attributable to
non-controlling interests (2021 =
$1,214,206,
2020 =
871,844).
*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
(2021 = $507,143, and 2020 =
$877,358), 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 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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