DULUTH, Minn., Aug. 1, 2013 (GLOBE NEWSWIRE) -- IKONICS Corporation (Nasdaq:IKNX), a Duluth-based imaging technology company, reported second quarter net earnings of $293,000, or $0.15 per diluted share, a 21% increase over the second quarter of 2012. For the third consecutive quarter, IKONICS posted record quarterly sales with an all-time record of $4,655,000, a 2% increase over the comparable 2012 quarter.
Bill Ulland, Ikonics CEO, said, "I am pleased with this strong rebound in earnings from our first quarter of the year. Particularly heartening was the performance of our DTX technology, which made a healthy contribution to our gross profit. Micro-Machining continues to lay the base for growth later this year and beyond. Capital equipment is being installed to expand our capability to machine composite material for the aerospace industry, in anticipation of increased long-term orders beginning in the second half of 2013."
"Our traditional businesses remain stable and profitable." Mr. Ulland added. "Our domestic screen print supply division, Domestic Chromaline, had a record sales quarter and Ikonics Imaging sales were up 5% over the second quarter of 2012. Export sales were flat, with Asia continuing to be our strongest export market."
During the quarter Ikonics also was added to the Russell Microcap Index.
This press release contains forward-looking statements regarding sales, gross profits, net earnings, 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, the effects of federal budget sequestration, 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 Certified |
| NASDAQ Listed: IKNX |
| IKONICS Corporation | ||||
| CONDENSED STATEMENTS OF INCOME (unaudited) | ||||
| For the Three Months and Six Months Ended June 30, 2013 and 2012 | ||||
| Three Months Ended | Six Months Ended | |||
| 6/30/13 | 6/30/12 | 6/30/13 | 6/30/12 | |
| Net sales | $4,654,745 | $4,547,080 | $8,677,017 | $8,556,704 |
| Cost of goods sold | 2,770,787 | 2,743,794 | 5,328,800 | 5,247,858 |
| Gross profit | 1,883,958 | 1,803,286 | 3,348,217 | 3,308,846 |
| Operating expenses | 1,482,468 | 1,438,636 | 3,120,529 | 3,040,547 |
| Income from operations | 401,490 | 364,650 | 227,688 | 268,299 |
| Interest income | 1,744 | 3,079 | 3,959 | 6,805 |
| Income before income taxes | 403,234 | 367,729 | 231,647 | 275,104 |
| Income tax expense | 110,122 | 124,646 | 26,285 | 94,427 |
| Net income | $293,112 | $243,083 | $205,362 | $180,677 |
| Earnings per common share-diluted | $0.15 | $0.12 | $0.10 | $0.09 |
| Average shares outstanding-diluted | 2,012,552 | 1,991,311 | 2,007,724 | 1,990,129 |
| Condensed Balance Sheets | ||
| As of June 30, 2013 and December 31, 2012 | ||
| 6/30/13 | 12/31/12 | |
| (unaudited) | ||
| Assets | ||
| Current assets | $7,252,171 | $7,417,041 |
| Property, plant and equipment, net | 5,523,014 | 5,461,878 |
| Intangible assets, net | 338,671 | 305,357 |
| $13,113,856 | $13,184,276 | |
| Liabilities and Stockholders' Equity | ||
| Current liabilities | $600,350 | $1,023,531 |
| Deferred income taxes | 431,000 | 366,000 |
| Long term debt | -- | -- |
| Stockholders' equity | 12,082,506 | 11,794,745 |
| $13,113,856 | $13,184,276 | |
| CONDENSED STATEMENTS OF CASH FLOWS (unaudited) | ||
| For the Six Months Ended June 30, 2013 and 2012 | ||
| 6/30/13 | 6/30/12 | |
| Net cash provided by (used in) operating activities | $18,108 | $(187,898) |
| Net cash provided by (used in) investing activities | 219,933 | (152,675) |
| Net cash provided by financing activities | 63,492 | 11,250 |
| Net increase (decrease) in cash and cash equivalents | 301,533 | (329,323) |
| Cash and cash equivalents at beginning of period | 967,943 | 1,867,165 |
| Cash and cash equivalents at end of period | $1,269,476 | $1,537,842 |