EX-99 2 a18-18183_1ex99.htm EX-99

Exhibit 99

 

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

August 2, 2018

 

(218) 628-2217

 

 

AEROSPACE LEADS REVENUE GROWTH AT IKONICS

 

DULUTH, MN - 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.

 

ISO 9001 Certified

NASDAQ Listed: IKNX

 


 

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

 

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

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