IKONICS Announces 2018 Results
February 21 2019 - 4:12PM
IKONICS Corporation (NASDAQ:IKNX), a Duluth-based imaging
technology company, announced 2018 and fourth quarter financial
results. The year 2018 marked a return to growth and profitability
for IKONICS. Sales in 2018 grew by 6% over the prior year to $18.2
million, earning $0.07 per diluted share compared to a 2017 loss of
$0.11 per diluted share. The IKONICS aerospace segment, AMS, led
2018 sales growth with a sales increase of 139% over 2017.
Earnings for fourth quarter of 2018 were $0.08 per diluted share
compared to $0.19 per diluted share in fourth quarter 2017. 2018
fourth quarter sales were 2% lower than the comparable 2017 period.
According to Bill Ulland, IKONICS CEO, “Both earnings and sales in
the fourth quarter of 2017 benefitted from a large stocking order
of IKONICS SubTHAT! film which did not occur in 2018.”
Ulland added: “We enter 2019 with three new initiatives that, I
believe, will add revenue and profits to our existing lines of
business:
- “In January 2019 we introduced IKONART at a trade show aimed at
crafters. The market acceptance of this unique stencil system
exceeded our expectations, and we are gearing up for production.
The product may be viewed on our web site at www.ikonartstencil.com
and on a third-party unsolicited YouTube video at
https://www.youtube.com/watch?v=g9bdP94fJ4s.
- “In February 2019 we entered into an agreement with AKK, a
German manufacturer of high quality printers, to develop a newly
patented imaging system that, we believe, will have a major impact
on the mold texturing industry. This joint effort couples AKK’s
advanced printer technology with IKONICS’ expertise in UV curable
inks and inkjet receptive films. If we are successful in this
effort, our system will save the mold makers very significant time
and expense in their process. Our goal is to have a final product
by the latter half of this year.
- “We also are working on a new product for custom-decorating
hard surfaces, such as automobiles, with durable, vibrant images.
Similar products already exist in the market, but ours features
ease of use and unique images that are of high resolution and are
customizable.”
Ulland continued: “These products all rely on our unique
expertise in digital imaging, UV chemistry and high-quality
coating. They are all consumables and carry good margins. I also
expect our traditional product lines to thrive led by AMS our
aerospace segment.”
This press release contains forward-looking
statements regarding sales, gross profits, net earnings, balance
sheet position, new products, new business initiatives, customer
behavior and market trends that involve risks and uncertainties.
The Company's actual results could differ materially as a result of
domestic and global economic conditions, downturns in the aerospace
or automotive industries, unexpected production delays by customers
using the Company’s products, competitive market conditions,
changes in consumer preferences, inability to commercialize
technologies the Company is developing on the anticipated timeline
or at all, acceptance of new products the Company offers,
introduction of new products or technologies by competitors,
unexpected capital expenditure requirements, delays in completing
planned expansions, 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.
IKONICS Corporation |
CONDENSED STATEMENTS OF
OPERATIONS |
For the Three and Twelve Months Ended December 31,
2018 and 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Twelve Months Ended |
|
|
|
12/31/18 |
|
|
|
12/31/17 |
|
|
|
12/31/18 |
|
|
|
12/31/17 |
|
Net sales |
$ |
4,856,640 |
|
|
$ |
4,944,791 |
|
|
$ |
18,213,653 |
|
|
$ |
17,243,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
3,154,166 |
|
|
|
3,071,689 |
|
|
|
11,959,626 |
|
|
|
11,512,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
1,702,474 |
|
|
|
1,873,102 |
|
|
|
6,254,027 |
|
|
|
5,730,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
1,510,954 |
|
|
|
1,466,289 |
|
|
|
6,028,208 |
|
|
|
6,195,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
191,520 |
|
|
|
406,813 |
|
|
|
225,819 |
|
|
|
(464,609 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(23,543 |
) |
|
|
(20,605 |
) |
|
|
(90,583 |
) |
|
|
(83,080 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
15,243 |
|
|
|
6,178 |
|
|
|
50,229 |
|
|
|
23,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes |
|
183,220 |
|
|
|
392,386 |
|
|
|
185,465 |
|
|
|
(524,147 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
33,601 |
|
|
|
23,617 |
|
|
|
46,000 |
|
|
|
(298,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
149,619 |
|
|
$ |
368,769 |
|
|
$ |
139,465 |
|
|
$ |
(226,147 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share-basic and diluted |
$ |
0.08 |
|
|
$ |
0.19 |
|
|
$ |
0.07 |
|
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares
outstanding |
|
1,983,553 |
|
|
|
1,988,498 |
|
|
|
1,983,553 |
|
|
|
2,007,613 |
|
CONDENSED BALANCE SHEETS |
As of December 31, 2018 and December 31, 2017 |
|
|
|
|
|
|
|
|
12/31/2018 |
|
|
12/31/2017 |
Assets |
|
|
|
|
|
Current assets |
$ |
8,958,070 |
|
$ |
8,271,383 |
Property, plant, and
equipment, net |
|
8,084,742 |
|
|
8,301,661 |
Intangible assets,
net |
|
376,406 |
|
|
351,186 |
|
$ |
17,419,218 |
|
$ |
16,924,230 |
Liabilities and
Stockholders' Equity |
|
|
|
|
|
Current
liabilities |
$ |
1,303,531 |
|
$ |
875,781 |
Long-term debt |
|
2,821,657 |
|
|
2,946,518 |
Deferred income
taxes |
|
183,000 |
|
|
144,000 |
Stockholders'
equity |
|
13,111,030 |
|
|
12,957,931 |
|
$ |
17,419,218 |
|
$ |
16,924,230 |
CONDENSED STATEMENTS OF CASH
FLOWS |
For the Twelve Months Ended December 31, 2018 and
2017 |
|
|
|
|
|
|
|
|
|
|
12/31/2018 |
|
|
|
12/31/2017 |
|
Net cash provided by
operating activities |
$ |
1,224,765 |
|
|
$ |
204,689 |
|
Net cash (used in)
provided by investing activities |
|
(393,115 |
) |
|
|
114,569 |
|
Net cash used in
financing activities |
|
(138,213 |
) |
|
|
(438,271 |
) |
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
693,437 |
|
|
|
(119,013 |
) |
Cash and cash
equivalents at beginning of period |
|
929,700 |
|
|
|
1,048,713 |
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period |
$ |
1,623,137 |
|
|
$ |
929,700 |
|
News Contact:
Bill UllandChairman, President & CEO(218) 628-2217
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