Flame Seal Products, Inc. Releases March 31, 2014 Results With Its
First Operating Profit
HOUSTON, TX--(Marketwired - Jun 12, 2014) - FLAME SEAL PRODUCTS,
INC. (OTC Pink: FLMP) (PINKSHEETS: 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, 2014 Progress
and Financial Report
Overview
As a direct result of the 2013 restructuring by the Board of
Directors, Flame Seal announces its first quarterly profit.
With its costs now under control, management is concentrating on
increasing the top line while bringing its next generation products
to market. The transition will accelerate in 2014 as Flame Seal
brings this new technology to market.
Craig G. Keyser is
named Chief Executive Officer
Bruce Rutherford, Chairman of the Board of Directors, is pleased
to announce the permanent appointment of Craig G. Keyser as Chief
Executive Officer (CEO) as of April 25, 2014. Prior to this, Mr.
Keyser has been operating as interim CEO as well as Chief Operating
Officer (COO) and Chief Marketing Officer. Mr. Keyser has over
thirty (30) years of experience in the chemical industry starting
in the Process Development Laboratory in 1981 with Rohm and Haas,
moving up the sales and marketing ladder with them, becoming a
Regional Manager at Bayer and Vice President with Atlas Refinery
before joining Flame Seal in 2008.
Mr. Rutherford states, "Needless to say, Craig is a very
capable, energetic, results-focused leader. He has been
instrumental in Flame Seal's transformation. He has what we need to
make Flame Seal a very profitable company."
Mr. Keyser states, "I am honored to be entrusted by the Board of
Directors with such an important responsibility. Our management
team has made significant progress since last May exemplified by
the first quarter of 2014. We have achieved this small but
nonetheless real profit by restructuring the entire company and
focusing on providing value to our customers. The principal
constraint on future growth is the requirement for capital to
invest in our new technology and to secure additional testing and
certifications."
Financing
To address the capital constraint, Flame Seal will soon be
offering a convertible preferred stock issue paying a 5% dividend
in cash. The Preferred shares will be offered first to our
shareholders, and if not fully subscribed by existing shareholders,
to third parties. Proceeds from the issue will be used to increase
research and development, secure certifications in new markets,
beef up our marketing budget to increase sales and to further
repair our balance sheet.
March 31, 2014
Financial Review
Earnings on an Accrual Basis:
For the quarter ending March 31, 2014 Flame Seal made $ 24,204
on sales of $461,602. Revenues were in line with the 2014
plan. Many expenses have been permanently eliminated from the
income statement. Flame Seal has brought its cost structure and
resulting cash flow into alignment.
Balance
Sheet
The balance sheet continues to be burdened by substantial
obligations incurred prior to May 2013. Although the balance sheet
has been improved dramatically, further improvements will take more
time and capital, in part, because the BOD decided to devote
available cash flow to support sales, marketing programs and new
product developments.
Further improvements in the balance sheet will allow us to
become more quickly responsive to large customers and more
attractive to key suppliers. From December 31, 2013 thru March
31, 2014, Current Assets increased by $195,039 while Current
Liabilities decreased by $ 31,274.
- In the March 31, 2014 quarter, our Current Ratio improved
to 79.4% from 37.4% on December 31, 2013 - an
encouraging accomplishment.
Cash Flow
Net cash increased by $187,622 resulting in net cash as of March
31, 2014 of $220,062. During the quarter, members of Board of
Directors provided additional loan funding to the Company of
$231,399 to improve the cash and current position as well as reduce
payables and enable bulk purchases of raw materials. Flame Seal
views such material commitments as a vote of confidence in its
future.
Sales and Technology
Review
Sales for the March 31, 2014 quarter were $461,602, which, while
stated as meeting internal projections, continue on a modest pace
due to R & D constraints, marketing limitations and the need
for multiple certifications and new product testing.
New products launches such as the recently announced Wild Fire
initiative and purchase commitments from new customers could
significantly boost revenue this year. Management is concentrating
on developing long-term customer relationships with steady,
recurring order flow.
The Company also is focusing on the expanding Thermal Barrier
market as this segment continues to present the opportunity for
increased sales. To this end and subject to securing a permanent
capital infusion form the planned Preferred Stock Offering, more
testing and certifications are planned for 2014. These
certifications are absolutely necessary to expand our sales from
current levels.
March 31, 2014 financial reports in table form are available on
OTC Markets -- www.otcmarkets.com -- under the FLMP symbol.
Note
The content of this release continues to contain repetition of
previously released statements. Flame Seal is, also, aware that its
website -- www.flameseal.com -- is not up to date. When more
pressing priorities are met, management intends to update it to
become an information resource for current and prospective
customers and investors, as well as suppliers and the media.
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 is clarity, transparency, consistency and timely factual
reporting for our owners, the shareholders.
Respectfully Submitted By the Board of Directors
Bruce Rutherford Craig Keyser Mike Kiser 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.
Investor Relations Contact: Richard Kaneb 949-715-3319 Mobile
949-233-3229 - preferred Email: rckaneb@cox.net Website:
www.flameseal.com
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