IKONICS Announces Record First Quarter Sales and Discusses Aerospace Activity
April 24 2014 - 10:54AM
IKONICS Corporation (Nasdaq:IKNX), a Duluth-based imaging
technology company, announced record first quarter sales in 2014 of
$4,465,000, 11% higher than last year's first quarter sales of
$4,022,000. The company also posted first quarter earnings of
$205,000, or $0.10 per diluted share, in the first quarter of 2014,
compared with a loss of $88,000, $0.04 per share, for the
comparable quarter in 2013.
"The strong quarter was primarily attributable to a stocking
order placed with our IKONICS Imaging division," said IKONICS CEO
Bill Ulland. "This record first quarter sales followed 2013
fourth quarter record sales, and I believe the company is well
positioned for future growth in sales and profits."
Ulland continued: "Our Micro-Machining business, which is
comprised of both composite and electronic wafer machining, is now
making good headway -- especially in the aerospace industry. For
the second quarter of 2014, we have solid production orders as a
second tier supplier to Airbus and Bombardier. The new Airbus and
Bombardier aircraft we supply are currently being manufactured and
are anticipated to begin commercial service in 2015. We expect
substantial recurring business as this production ramps up. We also
anticipate entering into contracts with additional aerospace
companies in the third and fourth quarters."
"We have sufficient space at our existing facilities to handle
anticipated production into 2015, although additional equipment
will be required. If sales grow as expected, we may require
additional space in the 2015-2016 time frame. In light of our
financial position and undeveloped land at our IKONICS West site,
we do not anticipate any problems funding any necessary
expansion."
Ulland said other markets are showing indications of potential
future business. "Our Micro-Machining electronic wafer operation is
also seeing renewed interest, with two premier technology companies
asking for quotations on large volumes. Our screen print stencil
products, engineered for use in the electronic touch pad and solar
industries, are getting a positive response from the market. We
also believe we have resolved the technical problems associated
with our DTX program; I anticipate a return to a robust
business."
This press release contains forward-looking statements regarding
sales, gross profits, net earnings, capital expenditures, 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, government budgetary changes and the effects of
federal budget sequestration, domestic and global economic
conditions, changes in credit and capital markets, 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.
IKONICS
Corporation |
|
|
|
CONDENSED STATEMENTS OF
OPERATIONS (unaudited) |
For the Three Months Ended
March 31, 2014 and 2013 |
|
|
|
|
Three Months
Ended |
|
3/31/14 |
3/31/13 |
Net sales |
$4,464,577 |
$4,022,272 |
|
|
|
Cost of goods sold |
2,705,424 |
2,558,013 |
|
|
|
Gross profit |
1,759,153 |
1,464,259 |
|
|
|
Operating expenses |
1,443,980 |
1,638,061 |
|
|
|
Income (loss) from operations |
315,173 |
(173,802) |
|
|
|
Interest income |
1,958 |
2,215 |
|
|
|
Income (loss) before income taxes |
317,131 |
(171,587) |
|
|
|
Income tax expense (benefit) |
112,216 |
(83,837) |
|
|
|
Net income (loss) |
$ 204,915 |
$ (87,750) |
|
|
|
Earnings (loss) per common share-diluted |
$ 0.10 |
$ (0.04) |
|
|
|
Average shares outstanding- diluted |
2,015,992 |
2,000,555 |
|
|
|
|
|
|
CONDENSED
BALANCE SHEETS |
As of March 31, 2014 and
December 31, 2013 |
|
|
|
|
3/31/14 |
12/31/13 |
Assets |
(unaudited) |
|
Current assets |
$8,817,377 |
$8,045,060 |
Property, plant and equipment, net |
5,591,781 |
5,634,096 |
Intangible assets, net |
332,852 |
322,647 |
|
$14,742,010 |
$14,001,803 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Current liabilities |
$1,386,335 |
$874,985 |
Deferred income taxes |
527,000 |
527,000 |
Long term debt |
-- |
-- |
Stockholders' equity |
12,828,675 |
12,599,818 |
|
$14,742,010 |
$14,001,803 |
|
|
|
|
|
|
CONDENSED STATEMENTS OF
CASH FLOW (unaudited) |
For the Three Months Ended
March 31, 2014 and 2013 |
|
|
|
|
3/31/14 |
3/31/13 |
Net cash provided by (used in) operating
activities |
$ 353,997 |
$ (247,578) |
|
|
|
Net cash provided by (used in) investing
activities |
71,898 |
(244,616) |
|
|
|
Net cash provided by financing
activities |
13,050 |
40,997 |
|
|
|
Net increase (decrease) in cash and cash
equivalents |
438,945 |
(451,197) |
|
|
|
Cash and cash equivalents at beginning of
period |
1,704,300 |
967,943 |
|
|
|
Cash and cash equivalents at end of
period |
$2,143,245 |
$516,746 |
CONTACT: News Contact: Bill Ulland
Chairman, President & CEO
(218) 628-2217
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