SUN VALLEY, Calif., Dec. 17, 2004 (PRIMEZONE) -- Flamemaster Corporation (Nasdaq:FAME) reported net income of $504,452 on revenues of $5,035,797 for the year ended September 30, 2004. In the previous year earnings were $538,519 on revenues of $5,097,852. Per share results were $.30 fully diluted in 2004 vs. $.31 fully diluted in 2003.
Net sales for the year increased to $4,959,929 from $4,769,094 in the previous year. The decrease in investment income was due to the spin-off of StarBiz Corporation, the Company's management service and investment subsidiary.
For the 4th quarter, revenues rose by more than 19.7% to $1,309,245 from the $1,093,465 for the quarter ended September 30, 2003. Net income also rose in the 4th quarter to $127,169 from $39,693 in the prior year. Per share results for the quarter more than doubled to $.07 from $.03 in the year earlier quarter.
The Company reported no short-term or long-term debt with cash, cash equivalents and marketable securities of $2,180,801 and working capital of $4,016,463, and a current ratio of better than 13.5 to 1 at September 30, 2004.
Subsequent to year-end, Flamemaster announced a proposed transaction with Best Candy & Tobacco Company (The Best Group). After the Company's Board authorized and the Company declared a one for ten reverse stock split, in order to reduce shareholder expense, the opportunity arose for the Flamemaster shareholders to receive an added benefit by entering into a merger agreement with the Best Group. Thus by completing the reverse stock split, the Company fell below minimum public float listing requirements of the Nasdaq.
Therefore, in order to comply with the minimum 500,000 publicly held share requirement for continued listing on the Nasdaq SmallCap Market, Flamemaster's Board declared a seven for one forward stock split. The stock split will be effective on January 7, 2005 to shareholders of record December 23, 2004.
The Company recently experienced heavier than normal trading and price fluctuation in it's stock. Management knows of no other reason than the pending merger with Best Group and/or the forward stock split for this activity.
Flamemaster Corporation is a specialty chemical manufacturer servicing the aerospace and defense industries with high performance aircraft sealants and coatings.
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.
12 Months 12 Months 12 Months 12 Months
Fiscal Year Fiscal Year Ended Ended
09-30-2004 09-30-2003 09-30-2004 09-30-2003
---------- ---------- ---------- ----------
Revenues 5,035,797 5,097,852 1,309,245 1,093,465
Income before
taxes 815,944 903,340 206,662 83,953
Income taxes 311,492 364,821 79,493 44,260
Net income 504,452 538,519 127,169 39,693
Net income
per share $.30 $.31 $.07 $.03
(fully diluted)