Houston, Texas, March 09, 2018 (GLOBE NEWSWIRE) -- 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, 2017 Fourth Quarter and Full Year Results and Corporate Update
Fourth Quarter and Year End Results for 2017
Flame Seal 2017 revenues were $2,499,032, a decrease of $688,027 or 22% less the 2016 record revenue year resulting in a loss of $259,325. Revenues were adversely affected, principally in our coatings products, as other revenues were relatively flat. Operations were negatively impacted as we continued to invest in personnel, plant and equipment (PPE) while testing and certification costs rose appreciatively.
Revenues for the quarter ended December 31, 2017 were $465,658, a $329,345 decrease or 41% less than the comparable 2015 quarter producing a $110,337 loss.
Craig Keyser comments, "Flame Seal (FSP) experienced a difficult year in 2017. We entered the year as our largest coatings customer informed us of an internal reorganization and inventory realignment which cut our 2016 volume in half. Though orders resumed in the second half, coatings represented approximately $700,000 reduction in sales. Transitioning to our successor technologies has proven more challenging than we expected, though we have learned that the added knowledge gained through multiple testing difficulties has given our team insight as to how to produce the efficacy we demand. FSP’s legacy product sales doubled since 2013 through targeted, professional marketing. As the market place changes and produces more efficient and effective products, FSP must achieve technological equivalency, if not, superiority in order to succeed longer term. We reiterate, it is important to note that the heavy investment in FSP’s long term future is essential for next planned milestone: solid, sustainable profitability and not just short term, quarter to quarter results.”
The Board of Directors (BOD) is unanimous in supporting FSP’s policy of transparency and openness with our shareholders.
Balance Sheet Update
FSP's current ratio of assets to liabilities remained strong at 4.04. Receivables remained healthy and current. Flame Seal has no outstanding litigation issues as of December 31, 2017.
As of December 31, 2017 FSP had 63,898,153 shares outstanding, a 1,202,700 or 1.9% increase over 12/16/2016.
Craig Keyser adds, “As recently agreed this year, Flame Seal’s (FSP) financial position will be materially strengthened by a planned major investment by a Board of Directors’ (BOD) member. The equity investment of over $700,000 comes at a crucial time in our development and will allow us to continue our product development and focus on growing our overall business. This investment reflects positively on our prospects. The conversion will become a strategic asset to further FSP’s goals.”
Online Marketing Initiative
With the launch of our new Website in late 2016, our analytics have shown an increase in web traffic from 2016 to 2017 by an impressive 65 percent. The new SEO (search engine optimization) website continually attracts new customers daily as well as providing up-to-date information, training, and company product information. In the fourth quarter of 2017 Flame Seal (FSP) launched its online ecommerce platform - www.flamesealshop.com. This online store will allow customers to purchase any FSP products at any time of the day, worldwide.
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.
Investor Relations Contact:
CEO Flame Seal Products
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Source:Flame Seal Products, Inc.