DULUTH, Minn., Feb. 18, 2016 (GLOBE NEWSWIRE) -- IKONICS Corporation (NASDAQ:IKNX), a Duluth-based imaging technology company, reported record sales of $4,768,000 for the fourth quarter of 2015 on strong sales from Advanced Material Solutions (AMS), IKONICS’ aerospace and electronics division. The Company reported earnings of $0.11 per diluted share for the quarter compared to $0.05 per diluted share for the fourth quarter of 2014. AMS sales increased by 159% to $234,000 for the quarter and 92% for the year compared to 2014.
As a whole, the Company posted net income of $135,000, or $0.07 per diluted share, for the year compared to $0.32 per diluted share for 2014. Overall sales declined by 5% to $17,562,000, primarily due to a large IKONICS Imaging stocking order in 2014 not repeating, as well as a change in glass suppliers for IKONICS Imaging. The strong dollar also adversely affected Export sales.
“We believe the stocking order was a onetime occurrence,” said Bill Ulland, IKONICS CEO. “IKONICS Imaging sales rebounded in the fourth quarter, up 13%, or $138,000, over the prior year’s fourth quarter. However, the strong dollar will be an ongoing challenge for Export sales.”
Ulland noted that the Company’s long term strategy of developing new businesses and new markets based on its core technologies is beginning to pay off through increased diversification and new sources of revenue. “As our traditional businesses mature, and sometimes meet headwinds, our new businesses, DTX and AMS, are stepping up. DTX was profitable in 2015 and AMS, although yet to be profitable, is growing rapidly. I am confident that the AMS growth trend will continue because the production schedule of the aircraft using our technology is well publicized and many of these planes are pre-sold. We know how many planes are likely to use our technology and we are continually adding new customers.” The 27,000 square foot expansion of the AMS facility is underway with completion scheduled for March of this year.
“I also am confident that our traditional businesses will thrive and continue to deliver profits to IKONICS,” he added.
This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, new products, new business initiatives and facilities expansion that involve risks and uncertainties. The Company's actual results could differ materially as a result of domestic and global economic conditions, downturns in the aerospace or automotive industries, unexpected production delays by customers using the Company’s products, competitive market conditions, changes in consumer preferences, inability to commercialize technologies the Company is developing on the anticipated timeline or at all, acceptance of new products the Company offers, introduction of new products or technologies by competitors, unexpected capital expenditure requirements, delays in completing planned expansions, 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 INCOME | |||||||||||
| For the Three and Twelve Months Ended December 31, 2015 and 2014 | |||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||
| 12/31/15 | 12/31/14 | 12/31/15 | 12/31/14 | ||||||||
| Net Sales | $ | 4,767,899 | $ | 4,622,500 | $ | 17,562,066 | $ | 18,489,837 | |||
| Cost of goods sold | 2,981,392 | 3,017,261 | 11,417,474 | 11,786,608 | |||||||
| Gross profit | 1,786,507 | 1,605,239 | 6,144,592 | 6,703,229 | |||||||
| Operating expenses | 1,478,993 | 1,476,585 | 5,923,774 | 5,789,763 | |||||||
| Income from operations | 307,514 | 128,654 | 220,818 | 913,466 | |||||||
| Other | 158 | 1,691 | 4,189 | 5,304 | |||||||
| Income before income taxes | 307,672 | 130,345 | 225,007 | 918,770 | |||||||
| Income tax expense | 88,198 | 23,893 | 90,000 | 270,000 | |||||||
| Net Income | $ | 219,474 | $ | 106,452 | $ | 135,007 | $ | 648,770 | |||
| Earnings per common share-diluted | $ | 0.11 | $ | 0.05 | $ | 0.07 | $ | 0.32 | |||
| Average shares outstanding-diluted | 2,018,490 | 2,018,802 | 2,018,591 | 2,018,334 | |||||||
| Condensed Balance Sheets | |||||||||
| As of December 31, 2015 and December 31, 2014 | |||||||||
| 12/31/2015 | 12/31/2014 | ||||||||
| Assets | |||||||||
| Current assets | $ | 6,916,891 | $ | 8,857,243 | |||||
| Property, plant and equipment, net | 7,957,330 | 5,416,848 | |||||||
| Intangible assets, net | 336,096 | 353,871 | |||||||
| $ | 15,210,317 | $ | 14,627,962 | ||||||
| Liabilities and Stockholders' Equity | |||||||||
| Current liabilities | $ | 1,135,102 | $ | 744,497 | |||||
| Deferred income taxes | 580,000 | 545,000 | |||||||
| Long term debt | - | - | |||||||
| Stockholders' equity | 13,495,215 | 13,338,465 | |||||||
| $ | 15,210,317 | $ | 14,627,962 | ||||||
| CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| For the Twelve Months Ended December 31, 2015 and 2014 | ||||||||||||||||
| 12/31/2015 | 12/31/2014 | |||||||||||||||
| Net cash provided by operating activities | $ | 1,466,061 | $ | 916,748 | ||||||||||||
| Net cash used in investing activities | (1,153,809 | ) | (730,821 | ) | ||||||||||||
| Net cash provided by financing activities | - | 45,987 | ||||||||||||||
| Net increase in cash and cash equivalents | 312,252 | 231,914 | ||||||||||||||
| Cash and cash equivalents at beginning of period | 1,936,214 | 1,704,300 | ||||||||||||||
| Cash and cash equivalents at end of period | $ | 2,248,466 | $ | 1,936,214 | ||||||||||||