Aerospace Leads Revenue Growth at IKONICS
DULUTH, Minn., Aug. 02, 2018 (GLOBE NEWSWIRE) -- IKONICS Corporation (Nasdaq:IKNX), a Duluth-based imaging technology company, reported a sharp improvement in earnings for the second quarter of 2018. The Company reported earnings of $145,000, or $0.07 per diluted share as compared to a loss of $0.05 per diluted share for second quarter of 2017.
Bill Ulland, IKONICS CEO, said, “Revenue was down by 1% from the second quarter of 2017, which had been favorably impacted by $320,000 in sales of two DTX printers; we are optimistic that similar sales of DTX printers will occur in the second half of this year. Year to date revenues are up by 5%, and earnings are at $0.01 per diluted share compared to a loss of $0.24 per diluted for the first six months of 2017.”
Ulland continued, “Positive revenue trends for the quarter were led by AMS, our aerospace and electronic wafer business unit, which posted record revenues and was up 474% over the same quarter of last year with sales of $471,000. Ninety-two percent of our aerospace sales are under long-term agreements. Because of their complex and inter-dependent supply chains, these customers demand 100% on-time delivery (70% of parts of a modern commercial jet are furnished by suppliers such as AMS). We are proud to say that we meet this demanding requirement.”
“I anticipate the positive trends we are seeing in the first half of 2018 will continue through the rest of 2018 and into next year, supplemented by our new dye sublimation products, new aerospace customers, growth in DTX printer and consumable sales, and improved margins in our screen print products,” added Ulland.
This press release contains forward-looking statements regarding sales, gross profits, net earnings (losses), balance sheet position, industry trends, customer agreements, new products, technologies and business initiatives that involve risks and uncertainties. The Company's actual results could differ materially as a result of downturns in the aerospace industry, unexpected production delays by the Company’s customers, lack of acceptance of new products and technologies, failure of customers to enter into anticipated agreements, introduction of new products or technologies by competitors, domestic and global economic conditions, inherent risk and uncertainty in the protection of intellectual property rights, the ability to control operating costs without impacting growth as well as the factors described in the Company's Forms 10-K, and 10-Q, and other reports on file with the SEC.
| IKONICS Corporation | ||||||||||||||||
| CONDENSED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
| For the Three and Six Months Ended June 30, 2018 and 2017 | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 6/30/18 | 6/30/17 | 6/30/18 | 6/30/17 | |||||||||||||
| Net sales | $ | 4,634,177 | $ | 4,685,361 | $ | 8,705,655 | $ | 8,314,353 | ||||||||
| Cost of goods sold | 2,971,862 | 3,242,097 | 5,680,921 | 5,780,861 | ||||||||||||
| Gross profit | 1,662,315 | 1,443,264 | 3,024,734 | 2,533,492 | ||||||||||||
| Operating expenses | 1,465,435 | 1,578,340 | 2,968,494 | 3,254,724 | ||||||||||||
| Income (loss) from operations | 196,880 | (135,076 | ) | 56,240 | (721,232 | ) | ||||||||||
| Interest expense | (23,807 | ) | (20,826 | ) | (43,742 | ) | (41,643 | ) | ||||||||
| Other | 11,805 | 5,902 | 21,226 | 11,055 | ||||||||||||
| Income (loss) before income taxes | 184,878 | (150,000 | ) | 33,724 | (751,820 | ) | ||||||||||
| Income tax expense (benefit) | 39,542 | (44,934 | ) | 19,126 | (267,857 | ) | ||||||||||
| Net income (loss) | $ | 145,336 | $ | (105,066 | ) | $ | 14,598 | $ | (483,963 | ) | ||||||
| Income (loss) per common share-basic and diluted | $ | 0.07 | $ | (0.05 | ) | $ | 0.01 | $ | (0.24 | ) | ||||||
| Average diluted shares outstanding | 1,983,553 | 2,018,466 | 1,983,553 | 2,018,609 | ||||||||||||
| Condensed Balance Sheets | ||||||
| As of June 30, 2018 and December 31, 2017 | ||||||
| 6/30/2018 | 12/31/2017 | |||||
| Assets | (unaudited) | |||||
| Current assets | $ | 8,804,194 | $ | 8,271,383 | ||
| Property, plant, and equipment, net | 8,230,266 | 8,301,661 | ||||
| Intangible assets, net | 370,844 | 351,186 | ||||
| $ | 17,405,304 | $ | 16,924,230 | |||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | $ | 1,382,589 | $ | 875,781 | ||
| Long-term debt | 2,886,874 | 2,946,518 | ||||
| Deferred income taxes | 156,839 | 144,000 | ||||
| Stockholders' equity | 12,979,002 | 12,957,931 | ||||
| $ | 17,405,304 | $ | 16,924,230 | |||
| CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||||
| For the Six Months Ended June 30, 2018 and 2017 | |||||||||||
| 6/30/2018 | 6/30/2017 | ||||||||||
| Net cash provided by operating activities | $ | 877,914 | $ | 50,513 | |||||||
| Net cash provided by (used in) investing activities | (381,746 | ) | 223,577 | ||||||||
| Net cash used in financing activities | (70,040 | ) | (82,717 | ) | |||||||
| Net increase in cash and cash equivalents | 426,128 | 191,373 | |||||||||
| Cash and cash equivalents at beginning of period | 929,700 | 1,048,713 | |||||||||
| Cash and cash equivalents at end of period | $ | 1,355,828 | $ | 1,240,086 | |||||||
| News Contact: | Bill Ulland |
| Chairman, President & CEO | |
| (218) 628-2217 |
