Flexible Solutions Announces Fourth Quarter and Full Year, 2007 Financial Results Conference Call Scheduled for Tues., April 1, 2008; See the Time and Dial-in Number Below

SOURCE:

Flexible Solutions International, Inc.

2008-03-31 13:00:00

Flexible Solutions Announces Fourth Quarter and Full Year, 2007 Financial Results

Conference Call Scheduled for Tues., April 1, 2008; See the Time and Dial-in Number Below

VICTORIA, BC–( EMWNews – March 31, 2008) – Flexible Solutions International Inc. (AMEX: FSI) (FRANKFURT: FXT), a developer and manufacturer of biodegradable and

environmentally safe, water and energy conservation technology, as well as

anti-scalant and crop nutrient enhancement products, today announces

financial results for the fourth quarter (Q4) and full year ended Dec. 31,

2007.

Mr. Daniel B. O’Brien, CEO, states, “We are pleased with this quarter given

the significantly smaller operating loss than experienced in Q4, 2006. The

change in quarter over quarter sales, for all divisions, has improved in

Q4, 2007 when compared to the previous quarters of 2007. As a result, Q4,

quarter over quarter sales, were unchanged as compared to down in Q1, Q2

and Q3, 2007. Early indications from sales in Q1, 2008 suggest top line

sales are improving.

* Sales in the fourth quarter (Q4), were $1,701,359, or unchanged when

compared to sales of $1,700,806 in the corresponding period a year ago. The

result was a GAAP accounting net loss of $522,571 or $0.04 per basic

weighted average share for Q4, 2007. Note that the Q4, 2007 net loss

includes a one-time write down of an investment — $98,000 — unrelated to

operations of the Company. Therefore, when this one-time write down is

removed, actual (Non-GAAP) operating loss for Q4, 2007 was $424,571 or

$0.03 per share. This compares to a higher net loss of $526,621, or $0.04,

in Q4, 2006. Sales in the first three quarters of 2007 were down $942,359

when comparing the first 9 months of 2007 to that of 2006. The largest

decline in 2007 sales came in Q3, 2007, when higher than normal oil field

maintenance shut downs occurred, reducing the NanoChem Division sales. See

the following table for full year financial results.

* Basic weighted average shares used in computing per share amounts for the

quarters were 14,156,480 for 2007 and 13,010,514 for 2006.

* Non-GAAP operating cash flow: For the 12 months ending Dec. 31, 2007 net

income reflects $1,275,532 of non-cash charges (depreciation, stock option

expenses, etc.), and when non-cash charges are removed, the Company shows

positive operating cash flow of $171,914 or $0.01 per share. This compares

with 2006 operating cash flow of $565,353, or $0.04 per share (the 2006

cash flow number also excludes items not related to 2006 operations — see

table below). Approximate Q4 operating cash flow was; for Q4, 2007 negative

$53,000; for Q4, 2006 negative $86,000.

Heatsavr sales continue to grow at a strong rate as a result of not only

higher energy costs but, also higher water costs. Heatsavr reduces energy

costs by reducing evaporation of warm pool water. As a result of sales

growth the Heatsavr brand is gaining end-user recognition.

Sales of WaterSavr grew substantially in 2006 and 2007, and significant new

opportunities for sales from around the world are the result of the

product’s success. However, the 2007-08 near record rain fall and flooding

in Australia resulted in slower growth for that region during Q4, 2007.

The NanoChem division continues to contribute substantially to sales and

cash flow and, new opportunities are unfolding in detergent, oil field

extraction and fertilizer use to further increase sales in this division.

Except in Q3, NanoChem sales are generally less seasonal than those of our

WaterSavr and Flexible Solutions Ltd divisions. This has led to less

volatility in quarter over quarter revenue figures.

** CEO, Dan O’Brien has scheduled a conference call for 11:00am EDT, 8:00am

PDT, Tuesday, April 1st, to discuss the financials. To attend this call,

dial 1-877-718-5092 (or 1-719-325-4786). The confirmation code 8048985 may

be requested **

The above information and following table contain supplemental information

regarding income and cash flow from operations for the 3 & 12 months

respectively ended Dec. 31, 2007 and 2006. 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 & 12 Months Ended Dec. 31 (12 Months Operating Cash Flow)

(12 month audited  /  3 month unaudited)



                                                   3 and 12 month

                                                revenue ended Dec. 31,

                                                  2007          2006

                                              ---------------------------

3 month

Revenue                                       $ 1,701,359    $ 1,700,806

Net income (loss) GAAP                        $  (522,571)   $  (526,621)

Net income (loss) per common share -- basic.

GAAP                                          $     (0.04)   $     (0.04)

Net income (loss) excluding "other items"

NON-GAAP                                      $  (424,571)a  $  (526,621)

Net income (loss) per common share excluding

"other items" -- basic. NON-GAAP              $     (0.03)a  $     (0.04)

3 month weighted average shares used in

computing per share amounts -- basic. GAAP     14,156,480     13,010,514

                                              ---------------------------

12 month

Revenue                                       $ 7,431,791    $ 8,373,597

Net income (loss) GAAP                        $  (943,227)   $(1,164,369)

Net income (loss) per share GAAP              $     (0.07)   $     (0.09)

Net income (loss) excluding "other items

and income tax" NON-GAAP                      $(1,009,614)b  $  (967,852)c

Net income (loss) per share excluding

"other items and income tax" NON-GAAP         $     (0.07)b  $     (0.07)c

12 month weighted average shares used in

computing per share amounts -- basic GAAP      13,772,180     12,994,430

12 month Operating Cash Flow ended Dec. 31

                                              ---------------------------

Operating cash flow (12 month). NON-GAAP      $   352,305d   $   365,692d

                                              ---------------------------

Operating cash flow (12 month).

NON-GAAP -- Excludes: 2006 "income tax

recovery and registration

rights penalty" and excludes: 2007 "net gain

from a property sale."                        $   171,914d,e $   565,353d,f

Operating Cash flow per share (12 months)

-- basic. NON-GAAP - Excludes items

"d,e and f" as listed below.                  $      0.01d,e $      0.04d,f

Non-cash Adjustments (as per 12 month

Statement of Cash Flow)                       $ 1,275,532g   $ 1,530,061g

12 month basic weighted average shares used in

computing per share amounts -- basic GAAP      14,156,480     13,010,514



Notes: certain items not related to "operations" of the Company have been

excluded as follows.

a) NON-GAAP-This number excludes "write down of investment" which is not

related to the "operations" of the Company.

b) NON-GAAP-Excludes "write down of investment, other expenses, other

income, and interest income."

c) NON-GAAP-Excludes "registration writes penalty, interest income and

income tax recovery."

d) NON-GAAP-Excludes certain non-cash items, "depreciation, stock option

expenses, write down of investment and shares for service." This is a

12 month number as per financials.

e) NON-GAAP-Excludes "net gain from sale of property" which are unrelated

to the "operations" of the Company.

f) NON-GAAP-Excludes "Income tax recovery and registration rights penalty"

unrelated to 2006 operations.

g) Amount represents "depreciation, stock option expenses, shares issued

for service and write down of investment."

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

statements 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

615 Discovery Street, Victoria, BC V8T 5G4 CANADA

If you have received this news release by mistake or if you would like to

be removed from our update list please reply to:

karenr@flexiblesolutions.com

To find out more information about Flexible Solutions and our products,

please visit www.flexiblesolutions.com

Company Contact:
Flexible Solutions International – Head Office
Jason Bloom
Tel: 250-477-9969
Tel: 800.661.3560
Email:

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