IKONICS Reports Third Quarter Earnings DULUTH, Minn., Nov. 8, 2013 (GLOBE NEWSWIRE) -- IKONICS Corporation (Nasdaq:IKNX), a Duluth-based technology company, reported third quarter net earnings of $116,000, or $0.06 per diluted share, a 49% decrease compared to the third quarter of 2012. Sales for the third quarter of 2013 were $4,217,000, or flat when compared to last year's third quarter. Bill Ulland, IKONICS CEO, said, "Increased expenses related to the ramping up of our Micro-Machining business and the end of a long-term sound deadening mask agreement depressed both sales and net income for the quarter. Year-to-date we have invested over $400,000 in highly productive machining equipment for Micro-Machining and have added two technical hires." "For the quarter, our traditional Domestic and Export businesses showed good growth in sales and profits, and we remain in a strong financial condition with $3 million in cash and short-term investments and no long-term debt," Ulland said. The company recently acquired an exclusive license for specified markets for patented Direct To Metal (DTM) inkjet printing technology from Hueck Engraving Gmbh of Germany. Commenting on the new license, Ulland said, "We view this as an opportunity to expand our Digital Texturing (DTX) business into new markets." This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, industry trends and new products, technologies and businesses 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, the effects of federal budget sequestration, 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 INCOME (unaudited) For the Three Months and Nine Months Ended September 30, 2013 and 2012 Three Months Ended Nine Months Ended 9/30/13 9/30/12 9/30/13 9/30/12 Net sales $4,217,125 $4,231,235 $12,894,142 $12,787,939 Cost of goods sold 2,575,557 2,478,358 7,904,357 7,726,216 Gross profit 1,641,568 1,752,877 4,989,785 5,061,723 Operating expenses 1,480,063 1,414,472 4,600,592 4,455,019 Income from operations 161,505 338,405 389,193 606,704 Interest income 1,372 2,572 5,331 9,377 Income before income taxes 162,877 340,977 394,524 616,081 Income tax expense 46,715 112,865 73,000 207,292 Net income $116,162 $228,112 $321,524 $408,789 Earnings per common $0.06 $0.11 $0.16 $0.21 share-diluted Average shares 2,015,125 1,993,429 2,010,334 1,990,485 outstanding-diluted Condensed Balance Sheets As of September 30, 2013 and December 31, 2012 9/30/13 12/31/12 (unaudited) Assets Current assets $7,779,227 $7,417,041 Property, plant and equipment, net 5,610,088 5,461,878 Intangible assets, net 335,046 305,357 $13,724,361 $13,184,276 Liabilities and Stockholders' Equity Current liabilities $1,090,702 $1,023,531 Deferred income taxes 431,000 366,000 Long term debt -- -- Stockholders' equity 12,202,659 11,794,745 $13,724,361 $13,184,276 CONDENSED STATEMENTS OF CASH FLOWS (unaudited) For the Nine Months Ended September 30, 2013 and 2012 9/30/13 9/30/12 Net cash provided by operating activities $1,150,610 $566,939 Net cash used in investing activities (1,002,547) (214,892) Net cash provided by financing activities 63,492 30,123 Net increase in cash and cash equivalents 211,555 382,170 Cash and cash equivalents at beginning of period 967,943 1,867,165 Cash and cash equivalents at end of period $1,179,498 $2,249,335 CONTACT: News Contact: Bill Ulland Chairman, President & CEO (218) 628-2217 IKONICS Corporation Logo
IKONICS Reports Third Quarter Earnings
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