IKONICS Reports Third Quarter Results
October 31 2019 - 04:52PM
IKONICS Corporation (Nasdaq: IKNX), a Duluth-based imaging
technology company, reported results for the third quarter of 2019.
Third quarter 2019 sales were $4,530,000, 3% below the record third
quarter of 2018. The net loss for the third quarter of 2019 was
$163,000, or $0.08 per diluted share, compared to a loss of $25,000
for the same quarter of 2018. For the nine months ended, the
Company posted a net loss of $0.37 per diluted share compared to a
net loss of $0.01 per diluted share for 2018.
Bill Ulland, IKONICS CEO, said: “These
disappointing results partially reflect the markets we serve that
are being adversely affected by the current trade war and resulting
tariffs.”
“However,” he continued, “there are some bright
spots. Our newly introduced IKONART product, which we sell into the
craft market, is substantially exceeding sales and profit
expectations and will be featured on the Home Shopping Network in
January and the new PBS show ‘Make It Artsy’ to be shown in various
time slots.”
He added: “Sales of our IKONICS IMAGING business
unit, which sells IKONART, are up 15% over the third quarter of
2018.”
“AMS, our aerospace business, is bidding on
several major jet engine projects and feedback from these customers
is encouraging, although the sales cycle in aerospace is long,”
Ulland said.
“Our mold etching joint research program, which
combines our DTX patented films with AKK’s patented printing
technology, is progressing as we have just received the AKK printer
to accelerate the test work,” he said.
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 industry downturns, 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.
News Contact: |
Bill UllandChairman, President & CEO(218) 628-2217 |
IKONICS
Corporation |
CONDENSED
STATEMENTS OF OPERATIONS (Unaudited) |
For the Three and
Nine Months Ended September 30, 2019 and 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Nine Months
Ended |
|
|
9/30/19 |
|
|
9/30/18 |
|
|
9/30/19 |
|
|
9/30/18 |
Net sales |
$ |
4,530,361 |
|
|
$ |
4,651,358 |
|
|
$ |
12,655,463 |
|
|
$ |
13,357,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
3,118,299 |
|
|
|
3,124,539 |
|
|
|
8,805,853 |
|
|
|
8,805,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
1,412,062 |
|
|
|
1,526,819 |
|
|
|
3,849,610 |
|
|
|
4,551,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
1,565,871 |
|
|
|
1,548,760 |
|
|
|
4,736,004 |
|
|
|
4,517,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income from operations |
|
(153,809 |
) |
|
|
(21,941 |
) |
|
|
(886,394 |
) |
|
|
34,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(22,799 |
) |
|
|
(23,298 |
) |
|
|
(67,589 |
) |
|
|
(67,040 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income |
|
16,225 |
|
|
|
13,760 |
|
|
|
49,722 |
|
|
|
34,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before income taxes |
|
(160,383 |
) |
|
|
(31,479 |
) |
|
|
(904,261 |
) |
|
|
2,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit) |
|
2,361 |
|
|
|
(6,727 |
) |
|
|
(170,775 |
) |
|
|
12,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(162,744 |
) |
|
$ |
(24,752 |
) |
|
$ |
(733,486 |
) |
|
$ |
(10,154 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
common share-basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Average
diluted shares outstanding |
|
1,978,926 |
|
|
|
1,983,553 |
|
|
|
1,981,568 |
|
|
|
1,983,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
BALANCE SHEETS |
As of September 30,
2019 and December 31, 2018 |
|
|
|
|
|
|
|
|
9/30/19 |
|
|
12/31/18 |
Assets |
|
(unaudited) |
|
|
|
Current
assets |
$ |
8,946,474 |
|
$ |
8,958,070 |
Property,
plant, and equipment, net |
|
7,934,256 |
|
|
8,084,742 |
Intangible
assets, net |
|
281,504 |
|
|
376,406 |
|
$ |
17,162,234 |
|
$ |
17,419,218 |
Liabilities and Stockholders' Equity |
|
|
|
|
|
Current
liabilities |
$ |
2,105,893 |
|
$ |
1,303,531 |
Long-term
debt |
|
2,722,063 |
|
|
2,821,657 |
Deferred
income taxes |
|
— |
|
|
183,000 |
Stockholders' equity |
|
12,334,278 |
|
|
13,111,030 |
|
$ |
17,162,234 |
|
$ |
17,419,218 |
CONDENSED
STATEMENTS OF CASH FLOWS (Unaudited) |
For the Nine Months
Ended September 30, 2019 and 2018 |
|
|
|
|
|
|
|
|
9/30/19 |
|
|
9/30/18 |
Net cash (used in) provided by operating activities |
$ |
(619,563 |
) |
|
$ |
1,071,061 |
|
Net cash
used in investing activities |
|
(90,467 |
) |
|
|
(337,584 |
) |
Net cash
used in financing activities |
|
(154,368 |
) |
|
|
(103,452 |
) |
|
|
|
|
|
|
Net
(decrease) increase in cash and cash equivalents |
|
(864,398 |
) |
|
|
630,025 |
|
Cash and
cash equivalents at beginning of period |
|
1,623,137 |
|
|
|
929,700 |
|
|
|
|
|
|
|
Cash and
cash equivalents at end of period |
$ |
758,739 |
|
|
$ |
1,559,725 |
|
|
|
|
|
|
|
Ikonics (NASDAQ:IKNX)
Historical Stock Chart
From Feb 2024 to Mar 2024
Ikonics (NASDAQ:IKNX)
Historical Stock Chart
From Mar 2023 to Mar 2024