HOUSTON, TX, March 11, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – 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, 2018 Fourth Quarter and Full Year Results and Corporate Update
Fourth Quarter and Year End Results for 2018
Flame Seal’s 2018 revenues were $2,363,122, a decrease of $135,910 or 5% less than 2017 revenues of $2,499,032, resulting in a profit of $56,196 compared to a loss of $259,325 for 2017. The profit was the result of cost reductions undertaken early in 2018. Revenues are improving but not yet satisfactory as transitions to our new technologies have required additional development time and investment in testing and certifications. While overall operations were financially constrained, the company continued to invest in key personnel, plant and equipment (PPE) and additional testing and certification.
Revenues for the quarter ended December 31, 2018 were $540,019, a $74,361 increase or 16% higher than the $465,658 in 2017. Quarterly profit was $15,916 versus a $110,337 loss in 2017. Keyser said, “Our cost reductions and investments in FSP’s long term future is starting to pay off.”
Craig Keyser continued, "2018 was a year of important changes and investments for Flame Seal. We successfully developed our Class A Paint for the construction industry. The marketing team is in the process of commercializing the new product for key segments of the construction industry. We have high expectations for our new product as we continue to secure new test certifications.”
Homes Saved from Wild Fire
On December 10, 2018, FSP issued a press release detailing how two homes in Latigo Canyon Malibu, California were saved from the massive Woolsey blaze by an installed Flame Seal FS-PG sprinkler system. Almost all other residences and outbuildings in that area were destroyed. A survivor of the fire gave a dramatic account on video of how Flame Seal’s product stopped the fire in its tracks. This FSP product is an effective, environmentally safe flame retardant that protects against wild fires. Flame Seal is formulating marketing plans to expand sales of this family of products.
Online Marketing
In the fourth quarter of 2017 FSP launched its online ecommerce platform - www.flamesealshop.com. This online store allows customers to purchase most FSP products on line at any time. Sales are growing steadily, and, in time, we hope they will be significant enough to report separately.
Balance Sheet Update
As of 12/31/2018, FSP's current ratio of assets to liabilities remained strong at 4.95. Payables are current and we have minimal receivable issues. Flame Seal has no outstanding litigation issues as of December 31, 2018.
As of December 31, 2017, FSP had 71,972,696 shares outstanding, an 8,074,543 or 12.6% increase over 12/31/2017, principally attributable to debt conversion by our largest shareholder.
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, 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 and news on Flame Seal is available on otcmarkets.com -- symbol FLMP -- in the "Filing and Disclosure" and “News” sections.
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.