IKONICS Announces Second Quarter Results
August 02 2019 - 10:50AM
IKONICS Corporation (Nasdaq:IKNX), a Duluth-based imaging
technology company, announced 2019 second quarter sales of
$4,600,000, down 1%, compared with the second quarter of
2018. Second quarter earnings fell from $145,000, or $0.07
per diluted share, in 2018 to a loss of $116,000, or $0.06, per
diluted share in 2019. Earnings for the first six months of
the year have also decreased from net income of $15,000, or $0.01
per diluted share, in 2018 to a loss of $571,000, or $0.29 per
diluted share, in 2019.
Bill Ulland, IKONICS CEO, said, “The earnings decline for first
half of 2019 was partially attributable to a $72,000 customer
credit due to product damaged from freezing during shipping, and a
$144,000 increase in medical insurance expense compared to the
first six months of 2018. We do not anticipate a continuation
of the increasing medical expense or shipping issues for the rest
of this year.”
He continued: “The rest of 2019 looks better: Our new IKONART
product is gaining traction with major distributors, and our
aerospace business is seeing a record number of new development
leads across several industries. In addition, it appears that the
trade war, which has affected our sales to China, may be cooling
down.”
Ulland concluded, “We have repurchased 2,742 shares this year
under our stock buy-back program and the program has 97,258 shares
remaining available for future purchases.”
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 CertifiedNASDAQ Listed: IKNX
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IKONICS Corporation |
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited) |
For the Three and Six Months Ended June 30, 2019 and 2018 |
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Three Months Ended |
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Six Months Ended |
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6/30/19 |
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6/30/18 |
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6/30/19 |
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|
6/30/18 |
Net sales |
$ |
4,596,411 |
|
|
$ |
4,634,177 |
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|
$ |
8,125,102 |
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|
$ |
8,705,655 |
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Cost of goods sold |
|
3,167,982 |
|
|
|
2,971,862 |
|
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|
5,687,554 |
|
|
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5,680,921 |
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Gross profit |
|
1,428,429 |
|
|
|
1,662,315 |
|
|
|
2,437,548 |
|
|
|
3,024,734 |
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Operating expenses |
|
1,609,326 |
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1,465,435 |
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3,170,133 |
|
|
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2,968,494 |
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(Loss) income from
operations |
|
(180,897 |
) |
|
|
196,880 |
|
|
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(732,585 |
) |
|
|
56,240 |
|
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Interest expense |
|
(22,515 |
) |
|
|
(23,807 |
) |
|
|
(44,790 |
) |
|
|
(43,742 |
) |
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|
|
|
|
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Other |
|
17,303 |
|
|
|
11,805 |
|
|
|
33,497 |
|
|
|
21,226 |
|
|
|
|
|
|
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|
|
|
|
|
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(Loss) income before income
taxes |
|
(186,109 |
) |
|
|
184,878 |
|
|
|
(743,878 |
) |
|
|
33,724 |
|
|
|
|
|
|
|
|
|
|
|
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Income tax (benefit)
expense |
|
(70,398 |
) |
|
|
39,542 |
|
|
|
(173,136 |
) |
|
|
19,126 |
|
|
|
|
|
|
|
|
|
|
|
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Net (loss) income |
$ |
(115,711 |
) |
|
$ |
145,336 |
|
|
$ |
(570,742 |
) |
|
$ |
14,598 |
|
|
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(Loss) income per common
share-basic and diluted |
$ |
(0.06 |
) |
|
$ |
0.07 |
|
|
$ |
(0.29 |
) |
|
$ |
0.01 |
|
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Average diluted shares
outstanding |
|
1,982,275 |
|
|
|
1,983,553 |
|
|
|
1,982,910 |
|
|
|
1,983,553 |
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CONDENSED BALANCE SHEETS |
As of June 30, 2019 and December 31, 2018 |
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|
6/30/2019 |
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|
12/31/2018 |
Assets |
|
(unaudited) |
|
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Current
assets |
$ |
8,420,424 |
|
$ |
8,958,070 |
Property, plant,
and equipment, net |
|
7,987,135 |
|
|
8,084,742 |
Intangible assets,
net |
|
292,380 |
|
|
376,406 |
|
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$ |
16,699,939 |
|
$ |
17,419,218 |
Liabilities and Stockholders' Equity |
|
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Current
liabilities |
$ |
1,238,427 |
|
$ |
1,303,531 |
Long-term
debt |
|
2,755,353 |
|
|
2,821,657 |
Deferred income
taxes |
|
183,000 |
|
|
183,000 |
Stockholders'
equity |
|
12,523,159 |
|
|
13,111,030 |
|
|
$ |
16,699,939 |
|
$ |
17,419,218 |
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CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited) |
For the Six Months Ended June 30, 2019 and 2018 |
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|
6/30/2019 |
|
|
6/30/2018 |
Net cash (used in)
provided by operating activities |
$ |
(768,925 |
) |
|
$ |
877,914 |
|
Net cash used in
investing activities |
|
(466,296 |
) |
|
|
(381,746 |
) |
Net cash used in
financing activities |
|
(90,730 |
) |
|
|
(70,040 |
) |
|
|
|
|
|
|
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|
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Net (decrease)
increase in cash and cash equivalents |
|
(1,325,951 |
) |
|
|
426,128 |
|
Cash and cash
equivalents at beginning of period |
|
1,623,137 |
|
|
|
929,700 |
|
|
|
|
|
|
|
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Cash and cash
equivalents at end of period |
$ |
297,186 |
|
|
$ |
1,355,828 |
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News Contact: Bill
Ulland
Chairman, President &
CEO
(218)
628-2217
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