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 the second quarter (Q2) ended June 30, 2013. Mr. Daniel B. O’Brien, CEO, states, “We are pleased with the second quarter results. Year over year revenue growth was positively affected by agricultural sales made in Q2 that would have been booked in Q1 had the planting season been on time.” Mr. O’Brien continues, “It is worthwhile mentioning that as a result of our January 1 st, 2013 change in accounting for Taber, AB operations and its historical losses, our taxable income is greatly reduced. Until all the historical losses are applied against future income, we suggest that reviewing changes in current assets, liabilities and long term debt will help interpret the forward momentum of the Company.”
- Sales in the second quarter (Q2) were $4,884,629, up approximately 30% when compared to sales of $3,761,729 in the corresponding period a year ago. The financials give a Q2, 2013 accounting net income of $70,169, or $0.01 per share compared to an accounting net loss of $465,995, or $0.04 per share in Q2, 2012.
- Basic weighted average shares used in computing per share amounts in Q2 were 13,169,991 for both 2013 and 2012.
- Non-GAAP operating cash flow: For the 6 months ending June 30, 2013, net income reflects $715, 986 of non-cash charges (depreciation and stock option expenses), as well as net income tax ($70,000), interest expense ($55,880) and other minor items ($2,057) not related to operating or current operating activities. When these items are removed the Company shows operating cash flow of $975,138, or $0.07 per share. This compares with operating cash flow of $1,171,923, or $0.09 per share, in the corresponding 6 months of 2012 (see the table that follows for details of these calculations).
* CEO, Dan O’Brien has scheduled a conference call for 11:00am EST, 8:00am PST, Wednesday August 15th to discuss the financials. Call 1-877-941-9205 (or 480-629-9771 ). The conference call title, “ Second Quarter Financials,” may be requested. *
The above information and following table contain supplemental information regarding income and cash flow from operations for the 6 months ended June 30, 2013. 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 | ||||
| 2013 | 2012 | |||
| Revenue | $4,884,629 | $ 3,761,729 | ||
| Income before income tax - GAAP | $ 82,169 | $ (345,995) | ||
| Net income (loss) - GAAP | $ 70,169 a | $ (465,995) a | ||
| Net income (loss) per common share – basic. - GAAP | $ 0.01 a | $ (0.04) a | ||
| 3 month weighted average shares used in computing per shareamounts – basic.- GAAP | 13,169,991 | 13,169,991 | ||
| 6 month Operating Cash Flow Ended June 30 | ||||
| Operating Cash flow (6months). NON-GAAP | $ 975,138 b | $ 1,171,923 b | ||
| Operating Cash flow per share excluding non-operating items anditems not related to current operations (6 months)– basic. NON-GAAP | $ 0.07 b | $ 0.09 b | ||
| Non-cash Adjustments (6 month) NON-GAAP | $ 715,986 c | $ 676,426 c | ||
| Shares (6 month basic weighted average) used in computing pershare amounts – basic GAAP | 13,169,991 | 13,169,991 | ||