Conference call is scheduled for Wednesday, April 3, 2024 at 11 a.m. ET
See dial-in numbers below
VICTORIA, British Columbia, March 29, 2024 (GLOBE NEWSWIRE) — FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex: FSI); is a developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients, water treatment, and crop nutrient utilization chemistry. Flexible Solutions also manufactures biodegradable and environmentally safe water and energy saving technologies. Today, we are announcing our financial results for the year ending December 31, 2023.
CEO Daniel B. O'Brien said: High base inventory and shipping costs remained, which conflicted with our ability to set prices for our customers. The results were reasonable given the circumstances, but not what we wanted. '' O'Brien continued, “Although there will be some impact from the 2023 situation in the first quarter of 2024, we expect to return to growth for the remainder of the year, with marginal margin expansion and food segment sales.'' I hope that this will increase.”
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Full-year sales were $38,324,806, a decrease of approximately 16% compared to sales of $45,840,469 in the same period last year.
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Net income for the full year 2023 was $2,775,864, or $0.22 per share, compared to net income of $7,021,604, or $0.57 per share, for the full year 2022.
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The basic weighted average number of shares used in the calculation of earnings per share was 12,434,886 shares and 12,379,316 shares for the full years 2023 and 2022, respectively.
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2023 Non-GAAP operating Cash Flow: The Company indicates trailing twelve month operating cash flow of $4,598,698, or $0.37 per share. By comparison, operating cash flow for the corresponding twelve month period in 2022 was $8,442,735, or $0.68 per share (see the table below for details on these calculations).
The NanoChem division and ENP subsidiary continue to be our primary source of revenue and cash flow. New opportunities continue to open up in detergents, water treatment, oil field extraction, turf, ornamental and agricultural applications, further increasing sales in these sectors.
Conference call
Due to the obligation to travel, Conference call Scheduled for 11 a.m. ET, 8 a.m. PT Wednesday, April 3, 2024. CEO Dan O'Brien will present and answer questions on a conference call. To join this call, he should dial 1-800-445-7795 (or 1-785-424-1699) just before the scheduled call time. To participate in the conference call, participants must identify their name and company affiliation.. of meeting ID: solution and/or call title Flexible Solutions International – 2023 Full Year Financials may be required
The information above and the table below contain supplementary information regarding our operating income and cash flows for the period ended December 31, 2023. Adjustments are shown excluding depreciation, stock option expense, and one-time charges. This financial information is a non-GAAP financial measure as defined by SEC Regulation G. The most directly comparable GAAP financial measure is net income.
Reconciliations for each non-GAAP financial measure are as follows:
Flexible Solutions International Co., Ltd.
Consolidated income statement
Full year ended December 31st (12 months operating cash flow)
(Unaudited)
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12 months ended December 31st |
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2023 |
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2022 |
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revenue |
$ |
38,324,806 |
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$ |
45,840,469 |
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Pre-tax profit (loss) – GAAP |
$ |
3,623,250 |
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$ |
7,859,085 |
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Provision for income taxes – net – GAAP |
$ |
132,735 |
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$ |
(145,856 |
) |
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Net income (loss) – GAAP |
$ |
2,775,864 |
$ |
7,021,604 |
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Net income (loss) per common share – Fundamental. – GAAP |
$ |
0.22 |
$ |
0.57 |
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12-month weighted average shares used to calculate amount per share – Basic. – GAAP |
12,434,886 |
12,379,316 |
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12 months Operating cash flow |
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Operating cash flow (12 months). Non-GAAP |
$ |
4,598,698a, b, c |
$ |
8,442,735a, 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 |
$ |
0.37a, b, c |
$ |
0.68a, b, c |
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Non-cash adjustments (12 months) –GAAP |
$ |
2,081,399d |
$ |
1,676,579 days |
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Number of shares used to calculate amount per share (12-month basic weighted average) – Basic –GAAP |
12,484,336 |
12,379,316 |
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Note: Items that are not related to “operations” in our net income are as follows.
a) Non-GAAP – Flexible Solutions International owns 65% of ENP and 80% of 317 Mendota. Therefore, operating cash flows are adjusted by the pre-tax profit or loss of non-controlling interests (minority interests) in both entities. The 2022 figures shown in the financial documents are after-tax figures. Pre-tax minority interest numbers are now presented in full-year 2023 and future financial statements.
b) Non-GAAP – Amounts exclude certain cash and non-cash items: depreciation and amortization expense (2023 = $2,081,399, 2022 = $1,676,579), interest expense (2023 = $498,666, 2022 = $292,949), interest income (2023 = $113,809, 2022 = $132,233), investment income (2023 = $506,098, 2022 = $341,424), gain on sale of assets (2023 = $4,589, 2022 = N/A), Previously Owned Equity Interest – ENP Peru Acquisition (2023 = N/A), 2022 = $335,051), Deferred Income Tax Recovery (Expense) (2023 = $250,917, 2022 = 71,295), income taxes (2023 = 118,182, 2022 = 217,151), net income before taxes attributable to non-controlling shareholders (2023 = $980,121, 2022 = $995,144). In addition, legal and accounting costs related to the planned merger of FSI and Lygos (2023 = N/A, 2022 = $417,974 (see news release)) are removed to calculate operating cash flows. Although these one-time expenditures were included in operating expenses, they were not related to FSI's operations. *See financial statements for all reconciliations.
c) The income and profits from our 50% investment in a privately held Florida LLC announced in January 2019 are not treated as operating income or operating income by Flexible Solutions because we purchased only 50% of the LLC. Because profits are treated as investment income, they are less than operating income on the statement of operations. As a result, profits from all investments, including profits from the Florida LLC (2023 = $506,098, 2022 = $341,424), are excluded from the calculation to arrive at operating cash flow.
d) Non-GAAP – Amounts represent depreciation and amortization expense and stock-based compensation expense.
Providing safe harbor
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain statements contained herein are not historical facts and are forward-looking statements that involve events that involve risks and uncertainties. These forward-looking statements may be affected, positively or negatively, by a variety of factors. Information regarding potential factors that may 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 Avenue, Taber, Alberta, Canada T1G 1X4
Company contact information
Jason Bloom
Toll free: 800 661 3560
Fax: 403 223 2905
Email: info@flexiblesolutions.com
If you have received this news release in error or would like to be removed from our updated list, please reply to info@flexiblesolutions.com.
For more information about Flexible Solutions and our products, please visit www.flexiblesolutions.com.
