FSI ANNOUNCES FULL YEAR, 2024 FINANCIAL RESULTS

Rhea-AI Summary

Flexible Solutions International (FSI) reported its full year 2024 financial results, showing improved performance over 2023. The company achieved a net income of $3,038,529 ($0.24 per share), up from $2,775,864 ($0.22 per share) in 2023. While sales slightly decreased to $38,234,860 from $38,324,806, operating cash flow significantly improved to $7,082,952 ($0.57 per share) compared to $4,604,320 ($0.37 per share) in 2023.

The company noted a temporary loss of $385,000 related to the sale of units in their Florida FSI's NanoChem division and ENP subsidiary remain the primary revenue drivers, with expanding opportunities in detergent, water treatment, oil field extraction, turf, ornamental, agricultural use, and emerging prospects in food and nutrition supplement manufacturing markets.

Positive

• Net income increased to $3.04M ($0.24/share) from $2.78M ($0.22/share)
• Operating cash flow significantly improved to $7.08M from $4.60M
• Potential new purchase orders could increase revenue by Q4 2025
• Steps taken to limit tariff effects on international sales

Negative

• Sales slightly decreased to $38.23M from $38.32M year-over-year
• Temporary loss of $385,000 from Florida unit sale
• Impact of tariffs on international sales remains a concern

Insights

Financial Analyst

FSI's 2024 financial results show meaningful improvement in profitability metrics despite flat revenue. While sales remained essentially unchanged at $38.2 million (compared to $38.3 million in 2023), net income increased by 9.5% to $3.04 million ($0.24 per share).

The standout metric is non-GAAP operating cash flow, which surged 53.8% to $7.08 million ($0.57 per share) from $4.60 million the prior year. This substantial improvement in cash generation despite revenue stagnation signals enhanced operational efficiency and potentially stronger underlying business fundamentals.

The company absorbed a temporary $385,000 loss related to selling units in a Florida , which reduced EPS by approximately $0.03, though management indicates the full transaction will ultimately be profitable. This non-operational item masked even stronger core performance.

Looking forward, management has outlined several potential growth catalysts including:

• Potential purchase orders expected to boost revenue by Q4 2025
• Steps to mitigate tariff impacts on international sales
• Efforts to recover previously paid tariff rebates
• Emerging opportunities in food and nutrition supplement markets

For a microcap company ($64 million market capitalization), this significant improvement in cash flow provides increased financial flexibility for future growth initiatives while maintaining operational strength during a period of flat revenue.

A Conference call is scheduled for Tuesday April 1st, 2025, 11:00am Eastern Time

See dial in number below

TABER, ALBERTA, March 31, 2025 (GLOBE NEWSWIRE) -- FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE-AMERICAN: 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. In addition, FSI is increasing its presense in the food and nutrition supplement manufacturing markets. Today the Company announces financial results for full year ended December 31, 2024.

Mr. Daniel B. O’Brien, CEO, states, “2024 was a significant improvement over 2023. Net income was up and non-GAAP cash flow improved even more. Of particular note is the assessment of a temporary loss of $385 thousand related to our sale of units in the Florida LLC which reduced net income by 3 cents even though the full term of the sale will result in a large profit.”

Mr. O’Brien continues, “During 2024, we progressed toward potential purchase orders that could increase our revenue by Q4 2025 and could increase our 2026 revenue significantly. We have also taken concrete steps to limit the effects of tariffs on our international sales, which we hope will generate growth in the next two years and we increased our efforts to recover the rebates of previously paid tariffs that are due to us.”

• Sales for the Full Year were $38,234,860 compared to sales of $38,324,806 in the corresponding period a year ago.
• Full Year, 2024 net income was $3,038,529 or $0.24 per share, compared to a net income of $2,775,864, or $0.22 per share, in Full Year, 2023.
• Basic weighted average shares used in computing earnings per share amounts were 12,454,957 and 12,434,886 for full year, 2024 and full year, 2023 respectively.
• 2024 Non-GAAP operating cash flow: The Company shows 12 months operating cash flow of $7,082,952, or $0.57 per share. This compares with operating cash flow of $4,604,320, or $0.37 per share, in the corresponding 12 months of 2023 (see the table that follows 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, water treatment, oil field extraction, turf, ornamental and agricultural use to further increase sales in these divisions. More recently, opportunities in the food and nutrition supplement manufacturing markets have emerged.

Conference call

Due to business travel obligations a conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific Time, on Tuesday April 1st, 2025. CEO, Dan O’Brien will be presenting and answering questions on the conference call. To participate in this call please dial 1-888-999-5318 (or 1-848-280-6460) 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 ‑ Full Year 2024 Financials may be requested

Note: The above information and following table contain supplemental information regarding income and cash flow from operations for the period ended December 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 Full Year Ended December 31 (12 Months Operating Cash Flow)
(Unaudited)

		12 months ended December 31
		2024				2023
Revenue		$	38,234,860			$	38,324,806
Income (loss) before income tax – GAAP		$	4,952,800			$	3,623,250
Provision for Income tax(recovery) – net - GAAP		$	851,211			$	(132,735	)
Net income (loss) - GAAP		$	3,038,529			$	2,775,864
Net income (loss) per common share – basic. – GAAP		$	0.24			$	0.22
12 month weighted average shares used in computing per share amounts – basic.- GAAP			12,454,957				12,434,886
			12 month Operating Cash Flow Ended December 31
Operating Cash Flow (12 months). NON-GAAP		$	7,082,952	a,b,c		$	4,604,320	a,b,c
Operating Cash Flow per share excluding non-operating items and items not related to current operations (12 months) – basic. -NON-GAAP		$	0.57	a,b,c		$	0.37	a,b,c
Non-cash Adjustments (12 month) -GAAP		$	2,630,606	d		$	2,081,399	d
Shares (12 month basic weighted average) used in computing per share amounts – basic -GAAP			12,454,957				12,434,886

Notes: certain items not related to “operations” of the Company’s net income are listed below.

a) Non-GAAP – Flexible Solutions International owns 65% of ENP and 80% of 317 Mendota. Therefore Operating Cash Flow is adjusted by the pre tax Net income or loss of the non-controlling interest(minority interest) in both entities. A pretax minority interest number now appears in the financials for full year 2023 and future years.
b) Non-GAAP – amounts exclude certain cash and non-cash items: Depreciation and Stock compensation expense (2024 = $2,630,606, 2023 = $2,081,399), Interest expense (2024 = $610,265, 2023 = $498,666), Interest income (2024 = $196,464, 2023 = $113,809), Gain on investment (2024 = $245,631, 2023 = 505,065), Loss on sale of investment (2024 = $353,076, 2023 = N/A), Loss on lease termination (2024 = $41,350, 2023 = N/A) Deferred income tax (expense) benefit (2024 = $(146,767), 2023 = $250,917), Current Income tax expense (2024 = $704,444, 2023 = $118,182), and pretax Net income attributable to non-controlling interests (2024 = $1,063,060, 2023 = $980,121) are removed to arrive at Operating Cash Flow. Although included in operating expenses these expenditures were not related to operations of FSI. *See the financial statements for all adjustments.
c) The revenue and gain from the investment in the private Florida LLC announced in January 2019 are not treated as revenue or profit from operations by Flexible Solutions. The profit is treated as investment income and therefore occurs below Operating income in the Statement of Operations. As a result, the gains from all investments (2024 – 245,631, 2023 = $505,065), including those from the Florida LLC, are removed from the calculation to arrive at Operating Cash Flow.
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 54^th Ave, Taber, Alberta, CANADA T1G 1X4
Company Contacts

Jason Bloom
Toll Free: 800 661 3560
Fax: 403 223 2905
E-mail: info@flexiblesolutions.com

                                        
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To find out more information about Flexible Solutions and our products, please visit www.flexiblesolutions.com.

FAQ

What was FSI's net income per share for full year 2024?

FSI reported net income of $0.24 per share for full year 2024, compared to $0.22 per share in 2023.

How much operating cash flow did FSI generate in 2024?

FSI generated operating cash flow of $7,082,952 ($0.57 per share) in 2024, up from $4,604,320 ($0.37 per share) in 2023.

What was FSI's total revenue for full year 2024?

FSI reported total sales of $38,234,860 for full year 2024, slightly down from $38,324,806 in 2023.

Which divisions are the main revenue drivers for FSI?

The NanoChem division and ENP subsidiary continue to be the dominant sources of revenue and cash flow for FSI.

What new market opportunities is FSI pursuing for growth?

FSI is expanding in detergent, water treatment, oil field extraction, turf, ornamental, agricultural use, and emerging opportunities in food and nutrition supplement manufacturing markets.