EX-99 2 a15-22400_1ex99.htm EX-99

Exhibit 99

 

GRAPHIC

 

4832 Grand Avenue

Duluth, MN 55807 USA

Phone: (218) 628-2217

Fax: (218) 628-3245

Email: info@ikonics.com

Website: www.ikonics.com

 

News Contact:

Bill Ulland

 

For Immediate Release

 

Chairman, President & CEO

 

November 5, 2015

 

(218) 628-2217

 

 

 

IKONICS REPORTS THIRD QUARTER RESULTS AND PROGRESS IN ITS AEROSPACE OPERATIONS

 

DULUTH, MN - IKONICS Corporation (NASDAQ:IKNX), a Duluth-based imaging technology company, announced results for the third quarter of 2015. Compared to the same quarter of 2014, sales increased by 1.4% to $4,543,000 while earnings declined by $22,000 to $117,000 or $0.06 per diluted share.  Export sales rebounded during the quarter, primarily, led by sales to Asia. Domestic Chromaline sales declined as did those of Ikonics Imaging, which was adversely affected by a change in glass suppliers.  DTX experienced a strong quarter in sales and profits partially attributable to a large annual order which normally falls in the fourth quarter. AMS again showed strong growth with sales being up 124% for the quarter over the same period last year.

 

Bill Ulland, IKONICS CEO, commented: “Even though 2015 earnings are down compared to last year, I was pleased to see that 2015 third quarter operating income improved by 7.2% over the third quarter of 2014.”

 

During the quarter AMS shipped its 200th acoustic panel, with 99% of the production being within specifications. This is part of an ongoing program.   Also, a significant new customer was added during the quarter and equipment upgrades are increasing productivity. The construction of the new AMS manufacturing facility is progressing towards scheduled completion in March of 2016, and the criteria for the State’s job creation incentive program are being met.

 

This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, industry trends and 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, 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.

 

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NASDAQ Listed: IKNX

 


 

IKONICS Corporation

CONDENSED STATEMENTS OF OPERATIONS (unaudited)

For the Three and Nine Months Ended September 30, 2015 and 2014

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/15

 

9/30/14

 

9/30/15

 

9/30/14

 

Net Sales

 

$

4,542,730

 

$

4,478,014

 

$

12,794,167

 

$

13,867,337

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

2,925,062

 

2,850,049

 

8,436,082

 

8,769,347

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

1,617,668

 

1,627,965

 

4,358,085

 

5,097,990

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

1,428,280

 

1,451,306

 

4,444,781

 

4,313,178

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

189,388

 

176,659

 

(86,696

)

784,812

 

 

 

 

 

 

 

 

 

 

 

Other

 

825

 

103

 

4,031

 

3,613

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

190,213

 

176,762

 

(82,665

)

788,425

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

73,457

 

37,791

 

1,802

 

246,107

 

 

 

 

 

 

 

 

 

 

 

Net Income (loss)

 

$

116,756

 

$

138,971

 

$

(84,467

)

$

542,318

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share-diluted

 

$

0.06

 

$

0.07

 

$

(0.04

)

$

0.27

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding-diluted

 

2,018,574

 

2,019,806

 

2,018,253

 

2,018,237

 

 

Condensed Balance Sheets

As of September 30, 2015 and December 31, 2014

 

 

 

9/30/2015

 

12/31/2014

 

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

Current assets

 

$

8,278,003

 

$

8,857,243

 

Property, plant and equipment, net

 

6,692,256

 

5,416,848

 

Intangible assets, net

 

330,806

 

353,871

 

 

 

$

15,301,065

 

$

14,627,962

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities

 

$

1,485,979

 

$

744,497

 

Deferred income taxes

 

545,000

 

545,000

 

Long term debt

 

—

 

—

 

Stockholders’ equity

 

13,270,086

 

13,338,465

 

 

 

$

15,301,065

 

$

14,627,962

 

 

CONDENSED STATEMENTS OF CASH FLOWS (unaudited)

For the Nine Months Ended September 30, 2015 and 2014

 

 

 

9/30/2015

 

9/30/2014

 

Net cash provided by operating activities

 

$

796,792

 

$

1,177,031

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

303,521

 

(722,107

)

 

 

 

 

 

 

Net cash provided by financing activities

 

—

 

44,730

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

1,100,313

 

499,654

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

1,936,214

 

1,704,300

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

3,036,527

 

$

2,203,954