SUN VALLEY, Calif., Aug. 7, 2001 (PRIMEZONE) -- Flamemaster Corporation (Nasdaq:FAME) today reported net income of 152,275 or $.10 per share on revenues of 1,094,062 for the quarter compared to net of $440,673 or $.27 per share on revenues of $1,618,219 in the year earlier period. The decrease in net during the current period was a result of a lower level of investment gains.
The Company's balance sheet is very strong with a current ratio of more than 47 to 1. Working capital stood at a healthy $6,597,130 on June 30, 2001.
For the nine month period ended June 30, 2001, revenues were $3,251,775 compared to $4,110,987 in the year earlier period. Net income for the nine months was $479,213 or $.30 per share vs. $988,576 or $.61 per share. The decrease in revenues and net earnings were due to a lower level of investment gains. Operating revenue expanded to $2,971,175 vs. $2,969,661 in the nine months ended June 30, 2000.
During the quarter the Company experienced two price increases on Liquid Polysulfide, a key ingredient of many of the Company's aircraft sealants. The industry's only domestic supplier of Polysulfide (Rohm & Haas) has announced plans to shut down the manufacturing of the product in December of 2001. The Company has secured two alternative sources of Polysulfides from outside the United States. One source is located in Europe and the other source is in Asia. However, there is no assurance that supplies of this key raw material will not be disrupted in the future, therefore, the Company must increase it's inventory levels in order to meet customer requirements.
The Company continues to concentrate on developing more high end, (high performance) sealant products with domestic alternative Polymer (to Polysulfide) requirements. There can be no assurance that the Company will succeed in its efforts to develop, qualify and market these alternative Polymer based products.
Flamemaster is a Southern California based specialty chemicals manufacturer of high performance sealants, adhesives and coatings and holds an extensive investment portfolio.
The release herein may contain or identify a forward-looking statement. These statements are based on a number of assumptions and estimates, which are inherently subject to uncertainty and contingencies, many of which are beyond the control of the Company and reflect future business decisions, which are subject to change.
Flamemaster Corporation
(Unaudited)
Three months ended Nine months ended
6-30-01 6-30-00 6-30-01 6-30-00
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Revenues 1,094,062 1,618,219 3,251,775 4,110,987
Income before income
taxes 232,513 768,101 708,122 1,642,678
Income taxes 80,238 327,428 228,909 654,102
Net income 152,275 440,673 479,213 988,576
Net income per share,
basic & diluted $ .10 $ .27 $ .30 $ .61