SUN VALLEY, Calif., Feb. 11, 2005 (PRIMEZONE) -- Flamemaster Corporation (Nasdaq:FAMEC) today reported net income of $39,305, or $.04 per share, on revenues of $1,132,416 for the 1st quarter ended December 31, 2004, compared to net of $72,692 or $.06 per share on revenues of $1,074,559 in the year earlier period.
The decrease in net earnings was due to a number of factors including higher raw material and labor costs as well as additional costs associated with increased regulatory reporting requirements of the SEC and NASDAQ.
In October 2004, the Company announced a proposed merger agreement with Best Candy & Tobacco Co. (The "Best Group"), whereby 100% of the outstanding shares of capital stock of Best Candy & Tobacco Co., an Arizona Corporation, would be merged into Flamemaster. Prior to the closing date of the merger, and with the consent of a majority of the outstanding Flamemaster common stock, Flamemaster shall dividend and distribute to all shareholders of record on the dividend date 100% of the capital stock ("the dividend shares") of Flamemaster Aerospace Corporation, a wholly-owned subsidiary of Flamemaster. The Flamemaster Aerospace Corporation (as of the date of such stock Dividend) shall operate all the businesses operated by Flamemaster and its subsidiaries and own all of the assets and assume all of the business as the same are in effect immediately prior to the date of the stock dividend.
Flamemaster's management believes that the merger with the Best Group, if completed, would be beneficial to Flamemaster's shareholders. There can be no assurance that the merger with the Best Group will be completed. Nor can management assess the length of time it will take to close the transaction.
Flamemaster Corporation is a Southern California based specialty chemicals manufacturer of high performance aircraft and aerospace sealants, protective coatings and fire stop systems.
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)
December 31,
2004 2003
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Revenues $ 1,132,416 $ 1,074,559
Income before income taxes 64,017 125,871
Income taxes 24,712 53,179
Net income 39,305 72,692
Net income per share,
basic & diluted $ .04 $ .06
For comparative purposes, the above Net income per share for the period ended December 31, 2003 has been restated to reflect the effects of a 12.5% stock dividend in the form of a 9 for 8 stock split which took effect in May 2004, a 1 for 10 reverse stock split, October 2004, and in December 2004 a 7 for 1 forward stock split.