DULUTH, Minn., Nov. 8, 2012 (GLOBE NEWSWIRE) -- IKONICS Corporation (Nasdaq:IKNX), a Duluth based imaging technology company, reported 2012 third quarter earnings of $228,000 or $0.11 per share, a 6% increase over the third quarter of 2011. Sales were $4,231,000, down 3% from the comparable quarter of 2011, which was a record third quarter. IKONICS CEO, Bill Ulland stated, "Weak export sales and a temporary purchasing delay at our largest aerospace customer contributed to the sales decease. Increased high margin sales from DTX and IKONICS Imaging partially offset this weakness and contributed to the increased profit. Our balance sheet continues to be strong with $3.9 million in cash and short-term investments, approximately $2.00 per share."
Mr. Ulland, IKONICS CEO, added, "We are making important strides with our aerospace business. We have begun regular production of parts for a major jet engine manufacturer and anticipate a ramp up in that business in 2013. We are negotiating a long-term contract with a second-tier supplier to the commercial aviation industry, and our primary customer serving the defense industry has informed us that we should anticipate an increase in orders beginning in 2013.
Ulland also stated, "We are conducting feasibility studies of our technology with a number of potential customers to determine if it's a good fit for their needs. In addition, we are working on joint development projects with two of the largest aerospace companies. Although these activities do not in themselves currently generate significant sales or profits, I believe they could lead to very important business."
"Because of the increasing demand, we are again expanding our manufacturing capacity - both equipment and people - to serve the aerospace industry. During this expansion and ramp-up phase expenses may temporarily exceed revenues for this segment," Ulland cautioned.
This press release contains forward-looking statements regarding sales, gross profits, net earnings, and new products and businesses that involve risks and uncertainties. The Company's actual results could differ materially as a result of domestic and global economic conditions, competitive market conditions, acceptance of new products, availability of equipment sold by the Company or for use with its products, raw materials costs, the ability to identify and make suitable acquisitions, the ability to control costs without impacting growth as well as the factors described in the Company's Form s 10-K, and 10-Q, and other reports on file with the SEC.
The IKONICS Corporation logo is available athttp://www.globenewswire.com/newsroom/prs/?pkgid=5654
| IKONICS Corporation | ||||
| CONDENSED STATEMENTS OF INCOME (unaudited) | ||||
| For the Three Months and Nine Months Ended September 30, 2012 and 2011 | ||||
| Three Months Ended | Nine Months Ended | |||
| 9/30/12 | 9/30/11 | 9/30/12 | 9/30/11 | |
| Net sales | $4,321,235 | $4,361,312 | $12,787,939 | $12,601,843 |
| Cost of goods sold | 2,478,358 | 2,681,509 | 7,726,216 | 7,601,207 |
| Gross profit | 1,752,877 | 1,679,803 | 5,061,723 | 5,000,636 |
| Operating expenses | 1,414,472 | 1,383,557 | 4,455,019 | 4,232,292 |
| Income from operations | 338,405 | 296,246 | 606,704 | 768,344 |
| Interest income | 2,572 | 4,028 | 9,377 | 13,371 |
| Income before income taxes | 340,977 | 300,274 | 616,081 | 781,715 |
| Income tax expense | 112,865 | 85,597 | 207,292 | 220,150 |
| Net income | $228,112 | $214,677 | $408,789 | $561,565 |
| Earnings per common share-diluted | $0.11 | $0.11 | $0.21 | $0.28 |
| Average shares outstanding-diluted | 1,993,429 | 1,987,945 | 1,990,485 | 1,985,263 |
| Condensed Balance Sheets | ||
| As of September 30, 2012 and December 31, 2011 | ||
| 9/30/12 | 12/31/11 | |
| (unaudited) | ||
| Assets | ||
| Current assets | $9,054,045 | $8,404,194 |
| Property, plant and equipment, net | 5,447,308 | 5,436,902 |
| Intangible assets, net | 292,812 | 326,362 |
| $14,794,165 | $14,167,458 | |
| Liabilities and Stockholders' Equity | ||
| Current liabilities | $1,011,608 | $838,915 |
| Deferred income taxes | 338,000 | 338,000 |
| Long term debt | -- | -- |
| Stockholders' equity | 13,444,557 | 12,990,543 |
| $14,794,165 | $14,167,458 | |
| CONDENSED STATEMENTS OF CASH FLOW (unaudited) | ||
| For the Nine Months Ended September 30, 2012 and 2011 | ||
| 9/30/12 | 9/30/11 | |
| Net cash provided by operating activities | $566,939 | $465,752 |
| Net cash used in investing activities | (214,892) | (334,980) |
| Net cash provided by financing activities | 30,123 | 67,631 |
| Net increase in cash | 382,170 | 198,403 |
| Cash at beginning of period | 1,867,165 | 1,291,383 |
| Cash at end of period | $2,249,335 | $1,489,786 |