FSI ANNOUNCES FIRST QUARTER, 2024 FINANCIAL RESULTS
Flexible Solutions International (FSI) has released its financial results for Q1 2024. The company reported sales of $9.22 million, a decrease of 6% from the $9.85 million in Q1 2023.
Net income fell to $457,226 ($0.04 per share) from $884,369 ($0.07 per share) in the previous year, due to higher costs and one-time expenses related to the closure of its Naperville R&D facility.
Operating cash flow for Q1 2024 was $1.34 million ($0.11 per share), down from $1.73 million ($0.14 per share) in Q1 2023. CEO Daniel B. O’Brien highlighted the progress in operational streamlining and new opportunities in the food and nutraceutical markets expected to drive revenue in 2024.
A conference call is scheduled for May 16, 2024, at 11:00 AM Eastern Time.
- Streamlined operations by closing Naperville R&D facility, expecting benefits in Q2 and Q3.
- New revenue opportunities in the food and nutraceutical markets for 2024.
- Operating cash flow for Q1 2024 was $1.34 million ($0.11 per share).
- NanoChem division and ENP subsidiary remain dominant revenue and cash flow sources.
- Q1 2024 sales decreased by 6% to $9.22 million from $9.85 million in Q1 2023.
- Net income dropped to $457,226 ($0.04 per share) from $884,369 ($0.07 per share) in Q1 2023.
- Higher costs of goods, depreciation, amortization, and stock-based compensation impacted earnings.
- One-time costs associated with closing the Naperville office affected the quarter.
Insights
Flexible Solutions International (FSI) posted first-quarter financial results that reveal both challenges and opportunities. The company reported
Given these figures, it’s important to note the impact of one-time costs and the strategic shift to a streamlined operation. While Q1 saw significant exit costs, future quarters should benefit from reduced operational expenses, potentially improving margins. However, the lower earnings per share (EPS) of
Operating cash flow, a more stable metric for financial health, decreased to
While the company is exploring new revenue streams in the food and nutraceutical markets, these ventures are not yet contributing significantly to the bottom line. Investors should monitor the realization of these opportunities and how they impact future financial statements.
Overall, the financial performance indicates caution for investors, particularly in the short term, while holding potential for future gains as operational efficiencies are realized and new market opportunities are capitalized on.
FSI's diversification efforts into food and nutraceuticals present a strategic attempt to capitalize on growing markets. Given the increasing consumer demand for health and wellness products, this expansion could provide significant upside potential. However, the current financials underscore the difficulty of transitioning into new markets while maintaining profitability in existing segments.
Moreover, the equity market is highly reactive to quarterly performance. The
Investors should pay attention to how FSI monetizes its innovations in biodegradable polymers and conservation technologies. The success in these areas could stabilize and potentially grow revenue, offsetting current headwinds.
In summary, while the current financial snapshot shows challenges, the strategic pivots into high-growth areas could yield long-term benefits. Investors should weigh immediate financial pressures against the potential for future market penetration and revenue growth in burgeoning sectors.
A CONFERENCE CALL IS SCHEDULED FOR THURSDAY, MAY 16, 2024, 11:00AM EASTERN TIME
SEE DIAL IN NUMBER BELOW
VICTORIA, BRITISH COLUMBIA, May 15, 2024 (GLOBE NEWSWIRE) -- FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex: FSI), 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 first quarter ended March 31, 2024.
Mr. Daniel B. O’Brien, CEO, states, “Progress is being made. We streamlined operations by closing our Naperville R&D facility and moving all the work to our Peru, IL building. The exit costs from this action were nearly all taken in Q1 so, the benefits will become evident in Q2 and Q3. Some price increases have been possible but not enough to recover past margins yet. Several large new opportunities have been found in the food/nutraceutical market and are proceeding toward revenue in the 2024 year.”
- Sales for the first quarter(Q1) were
$9,224,872 down approximately6% when compared to sales of$9,847,517 in the corresponding period a year ago. - Q1, 2024 net income was
$457,226 or$0.04 per share, compared to a net income of$884,369 , or$0.07 per share, in Q1, 2023. - The lower earnings reported for Q1, 2024 were due to higher cost of goods, lower sales and product mix as well as significantly higher Depreciation and amortization expenses. In addition, higher Stock based compensation expenses and one-time costs associated with closing our Naperville office affected the quarter.
- Basic weighted average shares used in computing earnings per share amounts were 12,449,699 and 12,432,914 for Q1, 2024 and Q1, 2023 respectively.
- Q1, 2024 Non-GAAP operating cash flow: The Company shows 3 months operating cash flow of
$1,341,485 , or$0.11 per share. This compares with operating cash flow of$1,729,956 , or$0.14 per share, in the corresponding 3 months of 2023 (see the table and notes that follow 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, food, nutraceuticals, 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 Thursday May 16th, 2024. CEO, Dan O’Brien will be presenting and answering questions on the conference call. To participate in this call please dial 1-800-225-9448 (or 1-203-518-9708) 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 – First Quarter, 2024 Financials may be requested
The above information and following table contain supplemental information regarding income and cash flow from operations for the period ended March 31, 2024. 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 Non-GAAP financial measure is as follows:
FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THREE MONTHS ENDED MARCH 31, 2024 AND 2023
(THREE MONTHS OPERATING CASH FLOW - UNAUDITED)
| THREE MONTHS ENDED MARCH 31 | ||||||||
| 2024 | 2023 | |||||||
| Revenue | $ | 9,224,872 | $ | 9,847,517 | ||||
| Income (loss) before income tax – GAAP | $ | 780,387 | $ | 1,264,271 | ||||
| Provision for Income tax – net - GAAP | $ | (264,178 | ) | $ | (299,777 | ) | ||
| Net income (loss) - GAAP | $ | 457,226 | $ | 884,369 | ||||
| Net income (loss) per common share – basic. – GAAP | $ | 0.04 | $ | 0.07 | ||||
| 3 month weighted average shares used in computing per share amounts – basic.- GAAP | 12,449,699 | 12,432,914 | ||||||
| 3 month Operating Cash Flow Ended March 31 | ||||||||
| Operating Cash Flow (3 months). NON-GAAP | $ | 1,341,485 | a,b,c | $ | 1,729,956 | a,b,c | ||
| Operating Cash Flow per share excluding non-operating items and items not related to current operations (3 months) – basic. -NON-GAAP | $ | 0.11 | a,b,c | $ | 0.14 | a,b,c | ||
| Non-cash Adjustments (3 month) -GAAP | $ | 676,027 | d | $ | 528,108 | d | ||
| Shares (3 month basic weighted average) used in computing per share amounts – basic -GAAP | 12,449,699 | 12,432,914 | ||||||
Notes: certain items not related to “operations” of the Company’s net income are listed below.
a) Non-GAAP – Flexible Solutions International purchased
b) Non-GAAP – amounts exclude certain cash and non-cash items: Depreciation and Stock compensation expense (2024 =
c) The revenue and gain from the
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 International
6001 54th Ave, Taber, Alberta, CANADA T1G 1X4
Company Contacts
Jason Bloom
Toll Free: 800 661 3560
Fax: 403 223 2905
E-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.
FAQ
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