DULUTH, Minn., Nov. 01, 2018 (GLOBE NEWSWIRE) -- IKONICS Corporation (Nasdaq:IKNX), a Duluth-based imaging
technology company, reported continued revenue growth with record third quarter sales, up 17% over the third quarter of 2017, as
each business unit posted strong gains for the quarter. For the third quarter of 2018, IKONICS realized a loss of $0.01 per
diluted share compared to a loss of $0.06 per diluted share for the same period in 2017. On a year-to-date basis, 2018 sales
are up 9% over 2017 with a loss of $0.01 per diluted share in 2018 compared to a loss of $0.30 per diluted share for the same
period in 2017.
Bill Ulland, IKONICS CEO, said, “In addition to our continued sales growth, we are very excited by a study recently released by
NASA showing that acoustic liners perforated with a slot pattern not only lessen engine noise but also reduce liner drag by as much
as 50%. The report is summarized in a brochure prepared by our AMS business unit, available in the Literature section of our
website’s Advanced Material Solutions division, and was also summarized in the September 8 edition of Aviation Week. We
believe that the AMS method of perforating liners lends itself to creating slot patterns as opposed to the conventional method of
drilling holes,” continued Ulland.
“The reduced drag results in reduced fuel consumption and a corresponding reduction in cost. We see this as a positive
development for our AMS business, and have been approached by NASA to enter into a Nonreimbursable Space Act Agreement for future
work.”
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.
News Contact:
Bill
Ulland
Chairman, President & CEO
(218) 628-2217
|
IKONICS
Corporation |
CONDENSED STATEMENTS
OF OPERATIONS (Unaudited) |
For the Three and Nine Months Ended September
30, 2018 and 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
9/30/18 |
|
|
9/30/17 |
|
|
9/30/18 |
|
|
9/30/17 |
|
Net sales |
$ |
4,651,358 |
|
|
$ |
3,984,100 |
|
|
$ |
13,357,013 |
|
|
$ |
12,298,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
3,124,539 |
|
|
|
2,660,149 |
|
|
|
8,805,460 |
|
|
|
8,441,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
1,526,819 |
|
|
|
1,323,951 |
|
|
|
4,551,553 |
|
|
|
3,857,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
1,548,760 |
|
|
|
1,474,141 |
|
|
|
4,517,254 |
|
|
|
4,728,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
(21,941 |
) |
|
|
(150,190 |
) |
|
|
34,299 |
|
|
|
(871,422 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(23,298 |
) |
|
|
(20,832 |
) |
|
|
(67,040 |
) |
|
|
(62,475 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
13,760 |
|
|
|
6,309 |
|
|
|
34,986 |
|
|
|
17,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
(31,479 |
) |
|
|
(164,713 |
) |
|
|
2,245 |
|
|
|
(916,533 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
(6,727 |
) |
|
|
(53,760 |
) |
|
|
12,399 |
|
|
|
(321,617 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(24,752 |
) |
|
$ |
(110,953 |
) |
|
$ |
(10,154 |
) |
|
$ |
(594,916 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share-basic and diluted |
$ |
(0.01 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding |
|
1,983,553 |
|
|
|
2,005,096 |
|
|
|
1,983,553 |
|
|
|
2,014,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED BALANCE SHEETS |
|
As of September 30, 2018 and December 31, 2017 |
|
|
|
|
|
|
|
|
|
9/30/2018 |
|
12/31/2017 |
Assets |
|
(unaudited) |
|
|
|
Current assets |
$ |
8,722,134 |
|
$ |
8,271,383 |
Property, plant, and equipment, net |
|
8,215,120 |
|
|
8,301,661 |
Intangible assets, net |
|
368,823 |
|
|
351,186 |
|
|
$ |
17,306,077 |
|
$ |
16,924,230 |
Liabilities and Stockholders' Equity |
|
|
|
|
|
Current liabilities |
$ |
1,336,878 |
|
$ |
875,781 |
Long-term debt |
|
2,854,529 |
|
|
2,946,518 |
Deferred income taxes |
|
156,839 |
|
|
144,000 |
Stockholders' equity |
|
12,957,831 |
|
|
12,957,931 |
|
|
$ |
17,306,077 |
|
$ |
16,924,230 |
|
|
|
|
|
|
|
|
|
|
|
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited) |
|
|
|
|
For the Nine Months Ended September 30, 2018 and
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2018
|
|
9/30/2017
|
Net cash provided by operating activities |
$ |
1,071,061 |
|
|
$ |
147,620 |
|
Net cash provided by (used in) investing activities |
|
(337,584 |
) |
|
|
1,141,249 |
|
Net cash used in financing activities |
|
(103,452 |
) |
|
|
(336,338 |
) |
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
630,025 |
|
|
|
952,531 |
|
Cash and cash equivalents at beginning of period |
|
929,700 |
|
|
|
1,048,713 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
$ |
1,559,725 |
|
|
$ |
2,001,244 |
|
|
|
|
|
|
|
|
|
|
|