HOUSTON, TX--(Marketwired - Nov 10, 2015) - FLAME SEAL PRODUCTS, INC. (
From: The Board of Directors (BOD)
Subject: September 30, 2015 Financial Report and Update
Overview
Flame Seal (FLMP) reported quarterly sales of $623,589 and profit of $69,970 for the period ended September 30, 2015. Sequentially, sales decreased $14,961 or 2% from the June 30, 2015 quarter but were $146,181 or 31% above the third quarter of 2014, reflecting what appears to be a seasonal pattern in FLMP's current mix of sales. Of note, quarterly revenues were the second highest in the Company's history. The profit of $69,770 was an improvement of $36,575 over the second quarter but included a non-recurring $94,000 gain from debt reduction negotiated in the quarter. The Company's financial metrics are strengthening at a steady and encouraging rate.
CEO Craig Keyser said, "FLMP's position in the market continues to improve as our customer base is getting broader and customer loyalty is increasing. Foreign revenues represented 51% of total sales and demonstrates a growing diversification in our customer base.
The BOD continued enhancing FLMP's balance sheet with further conversion of Board Member loans to common stock. This demonstrates increasing confidence by the BOD in FLMP's future. In just one year since September 30, 2014 FLMP has reduced its long term indebtedness by $615,703 -- a remarkable 39%. As stated in our last release, improved cash flow and BOD-supplied capital is funding our product testing and certifications program and the purchase of key equipment for the production of our new coating technology.
During the third quarter of 2015, new business development efforts added customers and revenues. Some of these initiatives are with large, multinational companies that conduct their due diligence at a deliberate pace. Securing long-term relationships with such large and strategic partners requires an extraordinary amount of preparation, time, effort, and patience. Though we planned on a more rapid sales increase in 2015, the new business we have secured is very encouraging, and we are even more confident in our potential."
September 30, 2015 Financial Review
Balance Sheet
In the September 30, 2015 quarter, our Current Ratio remained strong, improving from 2.10% to 2.41%. At quarter's end, FLMP had 61,610,218 shares outstanding. The increase in shares outstanding this quarter is principally due to conversion of loans to stock by the BOD members.
EBITDA
EBITDA for the quarter also increased to $94,480, a $48,539 improvement from the second quarter of 2015.
Marketing Review
New business development continues to be the key focus of the Sales and Marketing Team. The Team is primarily focused on promotion of the Thermal Barrier Coating for the Canadian Market, promoting the new Ignition Barrier and working with our distribution partners to create a sales program for the Wild Fire Products. In addition, the Sales Team has begun to visit potential distributors and customers in the Asian Markets. While sales to date in these areas have not yet been significant, we continue to have high expectations for these markets. FLMP is weighing new initiatives in order to achieve more marketing and distribution control to increase sales in these markets. Sales of the new Ignition Barrier (IB) for the Spray Foam Insulation requires additional testing and certification prior to full scale introduction into the Spray Foam Market; but current capital constraints limit how aggressive we can be in producing new certifications and what would otherwise be a more assertively forceful marketing campaign.
We thank our share and stake holders for their patience and loyal support."
Note
September 30, 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:
Richard Kaneb
Mobile 949-233-3229
Email: rckaneb@cox.net
Website: www.flameseal.com