HOUSTON, TX--(Marketwired - Feb 9, 2017) - FLAME SEAL PRODUCTS, INC. (OTC PINK: FLMP), a leading provider of Specialty Chemicals for the Passive Fire Protection Market, today issues the following update to its Stockholders.
From: Craig Keyser, CEO
Subject: December 31, 2016 Third Quarter, Full Year Results and Corporate Update
Record Sales for 2016
Flame Seal achieved its second consecutive sales record in 2016 totaling $3,187,059, an increase of $705,389 or 28% over the 2015 record year. Revenues were robust across its product spectrum. Operations were essentially breakeven as increased investment in personal, plant and equipment (PPE) accelerated and testing and certification costs intensified.
Revenues for the quarter ended December 31, 2016 were $795,003, a $47,406 increase or 6% over the comparable 2015 quarter producing a $15,585 profit.
Craig Keyser comments, "Flame Seal (FSP) exceeded its internal sales target in 2016 with another record sales year. The business strengthened with existing and new customers as our larger volume business-to-business sales model begins to take hold. This model is also reflected in slightly lower gross margins. New product developments and expansion of the ongoing testing and certification program increased our demand for operating capital. It is important to note that the heavy investment in FSP's long term future is essential for its next planned milestone: solid, sustainable profitability and not just short term, quarter to quarter results. We continue to enhance personnel depth and expertise with the addition of a second chemist and plan to add an additional sales professional."
As disclosed in November 2016, FSP launched its new website with the same URL (address) -- www.flameseal.com. In concert with our newly employed CRM (customer relationship management) initiative, the website is continually updating information, providing a link to social media sites, enhancing internal knowledge control of customer needs and allowing analytics to drive future marketing programs. To date, the site is meeting our expectations.
Operating Results in 2016
FSP had net ordinary income $18,425 in 2016. Interest expense and other income reduced that to a small loss of $3,809. As previously noted, the strong increase in sales was offset by increased operating costs. As of December 31, 2016 FSP had 62,695,453 shares outstanding, an increase of 137,179 or two tenths of 1% which highlights how FSP is now maintaining day-to-day operations on its own working capital without share sales or loans.
Balance Sheet Status
For 2016, FSP's balance sheet again further strengthened as the current ratio increased to 4.02 from 2015's 3.70. Receivables remained healthy and current. Flame Seal has no outstanding litigation issues as of December 31, 2016, and as stated previously, all litigation obligations have been paid off as of yearend. "This accomplishment is a point of pride. The financial burden of litigation has sapped us for years. Now we can concentrate all our resources on productive uses," states Craig Keyser.
About Flame Seal
Flame Seal Products, Inc., manufacturer of the world's number one fire prevention technology, was founded in 1992 as a research and development company focused on the investigation and application of passive Fire Prevention Technologies. FLAME SEAL PRODUCTS, INC. (FLMP) began trading its common stock on March 27, 2000. Flame Seal Products, Inc. is also the Transfer Agent of record. The company offers a wide variety of Code Driven solutions for a number of diverse applications and industries, and has developed three passive fire prevention technologies which are the basis for the company's products. For more information, go to: http://flameseal.com. Financial information on Flame Seal is available on otcmarkets.com -- symbol FLMP -- in the "Filing and Disclosure" section.
Safe Harbor Statement
Certain statements in this release may be "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the Company's ability to meet the terms and conditions required to obtain its project financing, risks and delays associated with product development, risk of market acceptance of new products, risk of technology or product obsolescence, competitive risks, reliance on development partners and the need for additional capital. Flame Seal takes no obligation to update or correct forward-looking statements, and also takes no obligation to update or correct information prepared by third parties that are not paid for by Flame Seal.