SOURCE: Flame Seal Products, Inc.

Flame Seal Products, Inc.

May 28, 2015 06:00 ET

Flame Seal Products, Inc. Releases March 31, 2015 Results

HOUSTON, TX--(Marketwired - May 28, 2015) - 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: The Board of Directors
Subject: March 31, 2015 Financial Report and Update

Overview

As per plan, Flame Seal (FSP) continued to operate at close to breakeven in the first quarter of 2015. The Board of Directors (BOD) is committing its time and available assets to ensure the swift execution of the Company's turnaround plan until increased revenues generate self-financing cash flow and profitability.

CEO Craig Keyser comments, "2015's first quarter marked further progress in FSP's strategic positioning. Revenues were close to plan at $471,898 producing a $25,165 net loss. The Company continues to clean up its balance sheet and tighten accounting controls. The balance sheet was enhanced by an investment and two loans by a long term stake holder in the Company and a BOD member. The new capital is being employed to continue the product testing and certifications program and the purchase of key equipment for the production of our new coating technology.

"At quarter's end FSP had 53,354,791 shares outstanding. While FSP's Preferred Stock Offering remains available, the BOD has chosen not to implement it at this time in light of investments and loans received from third parties and Board Members. The financial vote of confidence placed by investors in the Company and BOD members has enabled us to proceed investing in the future of the company.

"During the first quarter of 2015, FSP has continued to focus on key projects that are slated to yield new business later in the year. It is anticipated these new projects will have a significant impact on revenue growth and overall profitability. 

"For the past two (2) years, the BOD and the entire FSP team have worked singly-focused to realize our turnaround strategy. Much still remains to be done. We thank our share and stake holders for their patience and continued confidence." 

March 31, 2015 Financial Review

Earnings on an Accrual Basis:

For the quarter ending March 30, 2015 FSP had a $25,165 loss on sales of $471,898. Revenues were not materially below the 2015 plan.

Balance Sheet

As mentioned, the balance sheet continues to improve, though still encumbered by significant obligations incurred prior to May 2013. Further improvements will require either increased cash flow from increased sales or additional capital. Management intends to devote available cash flow to support sales, marketing programs and new product developments.

  • In the March 31, 2015 quarter, our Current Ratio remains strong at 2.27%.
  • Total Current Assets totaled $603,302. 

Cash Flow and EBITDA

Cash as of March 31, 2015 was $279,578 this represents a significant increase from the prior period, principally a result of aforementioned financing activities in the quarter. EBITDA continued slightly negative at $14,674. Product development testing and capital equipment purchases continue to accelerate at $109,556. As with every growth-oriented business, this capital-intensive process requires investment to achieve its revenue and profit goals. 

Marketing Review

New product launches, such as the Wild Fire project and developing business from new customers are expected to significantly boost revenue in 2015. As stated before, management is focused on developing long-term customer relationships with steady, recurring order flow.

The Company, as previously stated, anticipates materially expanding into new markets in Europe, Asia and Canada. 

Note

The content of this release continues to contain repetition of previously released statements. 

March 31, 2015 financial reports in table form are available on OTC Markets -- www.otcmarkets.com -- under the FLMP symbol in the "Filings and Disclosure" section.

Additionally, we reiterate that Flame Seal's unaudited financial statements are prepared by an independent Certified Public Accountant. Audited statements will be made available when we accumulate adequate surplus and more pressing priorities have been met.

The objective remains - clarity, transparency, consistency and timely factual reporting for our owners, the shareholders.

Respectfully Submitted By the Board of Directors
Bruce Rutherford
Craig Keyser
Romeo Laurel
Darryl Schroeder

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

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.

Contact Information

  • Investor Relations

    Contact:

    FLAME SEAL PRODUCTS, INC.

    Richard Kaneb
    949-715-3319
    Mobile 949-233-3229 - preferred


    Email: rckaneb@cox.net

    Website: www.flameseal.com