- Sales in Q2 were $3,930,075, up approximately 39% when compared to sales of $2,833,552, in the corresponding period a year ago. The result was a GAAP net profit of $174,734, or $0.01 per share, compared with a net loss of $133,590, or $0.01 per share, in Q2, 2010. See the financial statements regarding the significant increase in income tax expense taken in Q2.
- Basic weighted average shares used in computing per share amounts in Q2 were 13,169,991 for 2011 and 13,962,567 for 2010. See note ‘h’ attached to the table on the following page with respect to change in shares outstanding.
- Non-GAAP operating cash flow: For the 6 months ending June 30, 2011, net income reflects $235,266 of non-cash charges (depreciation and stock option expenses), $615,000 of income tax, as well as $443,488 in new factory development costs and interest expense. These items are either non-cash items or items not related to operations or current operating activities of the Company. When these items are removed, the Company shows operating cash flow of $1,826,595, or $0.14 per share. This compares with operating cash flow of $1,519,523, or $0.11 per share, in the corresponding 6 months of 2010 (see the table that follows for details of these calculations).
The NanoChem division continues to contribute most of our sales and cash flow, and new opportunities are unfolding to further increase sales in this division. NanoChem sales have been less seasonal than those of our WaterSavr and Flexible Solutions Ltd divisions. This has lead to less volatility in total revenue figures quarter over quarter. However, in the future, Q1 and Q2 sales may be much larger than sales in Q3 and Q4. This is largely due to potential growth in agricultural product sales (sales which tend to be larger in Q1 and Q2).* CEO, Dan O’Brien has scheduled a conference call for 11:00am EST, 8:00am PST, Tuesday August 16th to discuss the financials. Call 1-877-941-0844 (or 1-480-629-9835 ). The conference call title, “Second Quarter Financials,” may be requested. * (TABLE FOLLOWS) The above information and following table contain supplemental information regarding income and cash flow from operations for the 6 months ended June 30, 2010 and June 30, 2011. Adjustments to exclude depreciation, stock option expenses and one time charges are given. This financial information is a Non-GAAP financial measure as defined by SEC regulation G. The GAAP financial measure most directly comparable is net income . The reconciliation of each of the Non-GAAP financial measures is as follows:
|FLEXIBLE SOLUTIONS INTERNATIONAL, INC. Consolidated Statement of Operations For 3 Months Ended June 30 (6 Months Operating Cash Flow) (Unaudited)|
|3 months ended June 30|
|Net income (loss) before income tax – GAAP||$||469,734||$||279,490|
|Net income (loss) - GAAP||$||174,734||$||(133,590||)|
|Net income (loss) per common share – basic. - GAAP||$||0.01||$||(0.01||)|
|3 month weighted average shares outstanding – basic. GAAP||13,169,991||b||13,962,567||b|
|6 month Operating Cash Flow Ended June 30|
|Operating Cash flow (6months). NON-GAAP||$||768,107||c||$||623,261||d|
|Operating Cash flow excluding certain non-operating|
|items and items not related to current operations|
|(6 months). NON-GAAP||$||1,826,595||e||$||1,519,523||f|
|Operating Cash flow per share excluding|
|non-operating items and items not related to|
|current operations (6 months) – basic. NON-GAAP||$||0.14||e||$||0.11||f|
|Non-cash Adjustments (6 month)||$||235,266||g||$||241,179||g|
|Shares (6 month basic weighted average) used in|
|computing per share amounts – basic GAAP||13,353,904||h||13,962,567||h|
Flexible Solutions International 615 Discovery Street, Victoria, BC V8T 5G4 CANADAIf you have received this news release by mistake or if you would like to be removed from our update list please reply to: email@example.com To find out more information about Flexible Solutions and our products, please visit www.flexiblesolutions.com.