HOUSTON, TX--(Marketwired - Nov 14, 2016) - FLAME SEAL PRODUCTS, INC. (OTC PINK: FLMP)
- Near Record Sales Quarter
- Nine Month Revenue Approaches Total Annual 2015 Results
- Stable Sale Programs in Place
- New Website Planned Launch January 1, 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: September 30, 2016 Third Quarter, Nine Month Results and Corporate Update
Strong Sales Quarter
Revenues for the quarter ended September 30, 2016 were $830,394, a $206,805 increase or 25% over the comparable 2015 quarter and, sequentially only 4% lower than the record June 30, 2016 quarter. For the nine months ending September 30, 2016, revenues totaled $ 2,358,257, an increase of $403,859 or 21% over 2015.
Craig Keyser comments, "This year, Flame Seal (FSP) is executing as planned. Business has strengthened with existing customers and our Team continues to expand our base of customers worldwide as demand for and acceptance of FSP technology increases. It is important to note that over 50% of FSP's revenues continue to be generated overseas. New product developments and expansion of the ongoing testing and certification program will continue to reinforce this trend. It is worth noting that 9 month revenues for 2016 approach that for the entire year of 2015.
New Website Content
In January 2017 we plan to launch our new website with the same URL (address) -- www.flameseal.com. In concert with our newly employed CRM (customer relationship management) initiative, the website will continually update information, provide a link to social media sites, enhance internal knowledge control of customer needs and allow analytics to drive future marketing programs. In short, we'll be in sync with today's businesses' instantaneous information acquisition and knowledge base and analysis.
Flame Seal continues to add to personnel depth and expertise with additions to the technical department, sales and marketing and logistics team. We are very excited about our future."
Profits for the third quarter were $7,667. Higher SG&A expenses, mostly related to new personnel costs, mitigated profitability, but will enhance our ability to generate more sales and expedite anticipated business volumes.
During the third quarter of 2016 gross operating margins held steady. FSP continues to operate under working capital constraints, as the demand for investments in PP&E (property, plant and equipment) and the above mentioned personnel additions is ongoing. The company will continue to invest in its organizational development for the future.
Balance Sheet Status
FSP's balance sheet further strengthened this quarter as the current ratio increased to 3.70. Receivables remained healthy with daily sales outstanding (DSO) at 19 days. Flame Seal has no outstanding litigation issues as of September 30, 2016 to note on its balance sheet. As stated in our last release, the remaining legacy obligations are scheduled to be paid by yearend. "Though not an income statement item, these costly pre-2013 missteps took away vital and significant investment capital that was needed to fund our future," repeats 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.
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