The NanoChem division continues to contribute most of our sales and cash flow, and new opportunities are unfolding to further increase sales in this division. NanoChem sales have been less seasonal than those of our WaterSavr and Flexible Solutions Ltd divisions. This has lead to less volatility in total revenue figures quarter over quarter. However, in the future, Q1 and Q2 sales may be much larger than sales in Q3 and Q4. This is largely due to potential growth in agricultural product sales (sales which tend to occur largely in Q1 and Q2).
* CEO, Dan O’Brien has scheduled a conference call for 11:00am EST, 8:00am PST, Tuesday May 17th to discuss the financials. Call 1-877-941-6010 (or 1-480-629-9723 ). The conference call title, “ First Quarter Financials,” may be requested. *
The above information and following table contain supplemental information regarding income and cash flow from operations for the 3 months ended March 31, 2011. 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 3 Months Ended March 31 (3 Months Operating Cash Flow)
3 months ended March 31
|Income before income tax GAAP||$ 678,108||$ 584,673|
|Income tax GAAP||$ 320,000 a||$ 69,000 a|
|Net income (loss) GAAP||$ 358,107 a||$ 515,673 a|
|Net income (loss) per common share – basic. GAAP||$ 0.03 a||$ 0.04 a|
|3 month weighted average shares used in computing per share amounts – basic. GAAP||13,592,698||13,962,567|
3 month Operating Cash Flow
Ended March 31
|Operating Cash flow (3months). NON-GAAP||$ 796,099 b||$ 699,597 b|
|Operating Cash flow excluding non-operating items and items not related to current operations (3 months). NON-GAAP||$1,040,847 c||$ 929,822 c|
|Operating Cash flow per share excluding non-operating items and items not related to current operations (3 months) – basic. NON-GAAP||$ 0.08 c||$ 0.07 c|
|Non-cash Adjustments (3 month)||$ 117,992 d||$ 114,924 d|
|Shares (3 month basic weighted average) used in computing per share amounts – basic GAAP||13,592,698||13,962,567|
Notes : certain items not related to “operations” of the Company have been excluded from net income as follows.
a) GAAP – the relative higher Income tax expense and lower Net income numbers for Q1, 2011 in comparison to Q1, 2010 are largely a result of full year income tax estimates made at the end of Q1. Adjustment to income tax expenses are made at the end of each quarter.
b) Non-GAAP - amounts exclude certain non-cash items (depreciation and stock option expense totaling 2011 = $117,992, 2010 = $114,924) and income tax (2011 = 320,000, 2010 = $69,000. See Operating Cash Flow for other adjustments.
c) Non-GAAP - amounts exclude certain non-cash items (depreciation and stock option expense totaling – see ”b” above), income tax (see “b” above) as well as items unrelated to current operating activities (new factory construction and related Interest expense totaling: 2011 = $244,748, 2010 = $230,225).
d) Non-GAAP – amounts represent depreciation, stock option expense.
Safe Harbor ProvisionThe 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.