HOUSTON, TX - (NewMediaWire) - August 13, 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 (BOD)
Subject: June 30, 2015 Financial Report and Update
Flame Seal (FSP) continued to execute on plan reporting record quarterly sales of $638,550 and record quarterly profit of $33,395 for the period ended June 30, 2015. Sequentially, sales increased $166,616 or 35% from the March 31, 2015 quarter and 25% above the second quarter of 2014. The record profit of $33,395 was an improvement of $58,560 over the loss of $25,165 in the March 31, 2015 quarter and $11,765 over the profit for the second quarter of 2014.
CEO Craig Keyser comments, "FSP's strategic positioning has started to translate into growth and profit across a broadening spectrum of products and customers, both domestic and foreign. Foreign revenues represented 51% of total sales, a record, as FSP continues to seek diversification over a larger and larger number of new and recurring customers. Supplemental operating capital from the BOD enabled FSP's march towards self-financing, positive cash flow as well as facilitating expanded Research and Development and Marketing activities. Improving cash flow and BOD-supplied capital is underwriting our product testing and certifications program and the purchase of key equipment for the production of our new coating technology.
"During the second quarter of 2015, new business on multiple fronts began driving revenues and profits. We expect these new initiatives will have a significant impact on revenue growth and overall profitability. Some of these initiatives are with large, multinational companies that conduct their due diligence process at a deliberate pace. Securing long-term relationships with such influential and strategic partners requires an extraordinary amount of time, effort, forethought and salesmanship. We are confident in our new developments and our team is excited about our potential. We thank our share and stake holders for their patience and loyal support."
June 30, 2015 Financial Review
- In the June 30, 2015 quarter, our Current Ratio remained strong at 2.10%.
- Accounts Receivable more than doubled to $350,420 from the last quarter's $171,877 as business accelerated.
- At quarter's end, FSP had 58,023,635 shares outstanding. The increase in shares outstanding this quarter was principally due to a previously negotiated conversion of debt to equity by a BOD member reflecting increased confidence in FSP.
Cash Flow and EBITDA
Cash as of June 30, 2015 was $42,600, a significant decline from last quarter as cash was converted to products, accounts receivable from sales and inventory. Increased sales have resulted in a significant increase in accounts receivable. Consequently, EBITDA dramatically increased to $45,951, which is a $60,625 positive turnaround from the first quarter of 2015. We emphasize that rapid sales increases demand adequate capital to fund FSP's growth.
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 and working with our distribution network to create a sales program for the Wild Fire Products. While sales to date in these areas have not met expectations, we do, however, continue to have high expectations for these markets. FSP is weighing new initiatives in order to exert more marketing and distribution control so that we can effectively penetrate these untapped 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. Current capital constraints limit the company's ability to certify the new IB development and what would otherwise be an aggressive marketing campaign.
The Company, as previously stated, anticipates expanding into new markets in Europe, Asia and Canada as well as pursuing domestic opportunities. The Sales Team has begun to provide technical coverage in selected areas as we extend sales into these new markets. This support is the key to developing new business, strengthening relationships with distributors, creating viable markets and establishing long-term sales goals.
The content of this release continues to contain repetition of previously released statements.
June 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
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.