DULUTH, Minn., April 28, 2010 (GLOBE NEWSWIRE) -- IKONICS Corporation (Nasdaq:IKNX), a Duluth based imaging technology company, announced today a 279% increase in 2010 first quarter earnings to $148,000, or $0.08 per share, compared to $53,000, or $0.03 per share, for the first quarter of 2009. Sales increased by 3.4% to $3,685,000.
Bill Ulland, IKONICS CEO, commented that this was one of IKONICS best first quarter earnings results, and he believes it indicates that the recession is weakening. Ulland also said, "I am particularly pleased with the strong increase in our export sales, and the improvement in the performance of IKONICS Imagining which was driven by our new business initiatives. Although sales to the domestic screen print market were down from last year, the first quarter of 2009 featured some anomalous private label sales, and I'm pleased with these results. IKONICS' balance sheet also remains strong with no long-term debt and $2,221,000 in cash and short-term investments."
In commenting on the Company's new initiatives, Ulland said, "I'm particularly encouraged by the performance of our patent pending Digital Texturing program. I believe this and other efforts in our non-traditional markets provide further reason for optimism in 2010."
The IKONICS Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5654
This press release contains forward-looking statements regarding sales, net earnings, and new products 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, the ability to identify and make suitable acquisitions, 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.
| IKONICS Corporation | ||
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CONDENSED STATEMENTS OF OPERATIONS (unaudited) For the Three Months Ended March 31, 2010 and 2009 |
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| Three Months Ended | ||
| 3/31/2010 | 3/31/2009 | |
| Net Sales | $3,684,577 | $3,563,212 |
| Cost of Goods Sold | 2,200,782 | 2,157,898 |
| Gross Profit | 1,483,795 | 1,405,314 |
| Operating expenses | 1,361,093 | 1,388,864 |
| Income from operations | 122,702 | 16,450 |
| Gain on sale of non-marketable equity securities | -- | 20,131 |
| Interest income | 3,519 | 70 |
| Income before income taxes | 126,221 | 36,651 |
| Income tax benefit | (22,120) | (16,484) |
| Net income | $148,341 | $53,135 |
| Earnings per common share-diluted | $0.08 | $0.03 |
| Average shares outstanding-diluted | 1,969,433 | 1,989,866 |
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Condensed Balance Sheets As of March 31, 2010 and December 31, 2009 |
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| 3/31/10 | 12/31/09 | |
| (unaudited) | ||
| Assets | ||
| Current assets | $6,545,307 | $6,417,488 |
| Property, plant and equipment, net | 5,193,071 | 5,234,244 |
| Intangible assets, net | 341,607 | 345,540 |
| $12,079,985 | $11,997,272 | |
| Liabilities and Stockholders' Equi | ||
| Current liabilities | $736,712 | $809,186 |
| Deferred income taxes | 162,000 | 162,000 |
| Long term debt | -- | -- |
| Stockholders' equity | 11,181,273 | 11,026,086 |
| $12,079,985 | $11,997,272 | |
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CONDENSED STATEMENTS OF CASH FLOW (unaudited) For the Three Months Ended March 31, 2010 and 2009 |
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| 3/31/10 | 3/31/09 | |||
| Net cash provided by operating activities | $184,442 | $431,010 | ||
| Net cash used in investing activities | (73,256) | (29,648) | ||
| Net cash used in financing activities | -- | (69,213) | ||
| Net increase in cash | 111,186 | 332,149 | ||
| Cash at beginning of period | 1,304,586 | 901,738 | ||
| Cash at end of period | $1,415,772 | $1,233,887 | ||