IKONICS Reports 6% Earnings Increase and Expansion of Aerospace Business
DULUTH, Minn., Nov 8, 2012 (Menafn - GlobeNewswire via COMTEX) --IKONICS Corporation 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 EndedNine Months Ended
9/30/129/30/119/30/129/30/11
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Net sales4,321,2354,361,31212,787,93912,601,843
Cost of goods sold2,478,3582,681,5097,726,2167,601,207
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Gross profit1,752,8771,679,8035,061,7235,000,636
Operating expenses1,414,4721,383,5574,455,0194,232,292
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Income from operations338,405296,246606,704768,344
Interest income2,5724,0289,37713,371
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Income before income
taxes340,977300,274616,081781,715
Income tax expense112,86585,597207,292220,150
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Net income228,112214,677408,789561,565
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Earnings per common
share-diluted0.110.110.210.28
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Average shares
outstanding-diluted1,993,4291,987,9451,990,4851,985,263
Condensed Balance Sheets
As of September 30, 2012 and December 31, 2011
9/30/1212/31/11
----------------------
(unaudited)
Assets
Current assets9,054,0458,404,194
Property, plant and
equipment, net5,447,3085,436,902
Intangible assets, net292,812326,362
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14,794,16514,167,458
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Liabilities and
Stockholders' Equity
Current liabilities1,011,608838,915
Deferred income taxes338,000338,000
Long term debt----
Stockholders' equity13,444,55712,990,543
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14,794,16514,167,458
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CONDENSED STATEMENTS OF CASH FLOW (unaudited)
For the Nine Months Ended September 30, 2012 and 2011
9/30/129/30/11
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Net cash provided by operating activities566,939465,752
Net cash used in investing activities(214,892)(334,980)
Net cash provided by financing activities30,12367,631
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Net increase in cash382,170198,403
Cash at beginning of period1,867,1651,291,383
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Cash at end of period2,249,3351,489,786
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SOURCE: IKONICS Corporation
(Logo:http://media.primezone.com/cache/8377/int/6304.jpg)
CONTACT: Bill Ulland
Chairman, President & CEO
(218) 628-2217
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