DULUTH, Minn., Feb. 22, 2018 (GLOBE NEWSWIRE) -- IKONICS Corporation (NASDAQ:IKNX), a Duluth-based imaging technology company, announced 2017 annual and fourth quarter financial results.  Sales for IKONICS reached an all-time quarterly record in the fourth quarter of 2017, setting a strong pace for 2018, according to Bill Ulland, CEO of the 65 year-old company.

“The first half of 2017 was negatively impacted by a temporary slowdown of orders from our largest aerospace customer,” Ulland said. “That problem, which was internal to that customer, was resolved in the fourth quarter.  In addition, the introduction of a new dye sublimation product, SubTHAT!™, further boosted fourth-quarter sales.”

“Earnings for the fourth quarter of 2017 were $0.19 per diluted share although annual sales were down 2% compared to 2016 primarily due to a weaker domestic screen printing market partially offset by growing export sales to this market and because of the above-mentioned slow-down in our aerospace sales early in the year.    These lower sales were also partially offset by an 102% increase in sales to the automotive industry and a stocking order for our new SubTHAT! products,” he said.  “Earnings for 2017 showed a loss of $226,000.”

Ulland noted several positive trends for 2018, including the reduction in the corporate federal income tax rate from 35% to 21%, an improved distribution for exports and a cost-reduction initiative that had a positive effect on fourth-quarter results and should continue to improve margins in 2018. “Our Chromaline screen print products will likely remain a primary source of revenue in 2018, and we anticipate continued growth in our automotive and aerospace business units as they become a more important part of our sales mix. Our Ikonics Imaging unit will be our primary platform for launching new products, such as our dye sublimation family of patent pending image transfer technology,” he added. 

He concluded: “I believe that 2018 will see a return to profitability and growth.” 

This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, new products, new business initiatives, customer behavior and market trends 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 OPERATIONS
  For the Three and Twelve Months Months Ended December 31, 2017 and 2016
             
  Three Months Ended  Twelve Months Ended 
  12/31/17  12/31/16  12/31/17  12/31/16 
Net Sales$4,944,791  $4,752,612  $17,243,244  $17,569,901  
             
Cost of goods sold 3,071,689   3,002,061   11,512,699   11,332,991  
             
Gross profit 1,873,102   1,750,551   5,730,545   6,236,910  
             
Operating Expenses 1,466,289   1,661,858   6,195,154   6,258,914  
             
Income (loss) from operations 406,813   88,693   (464,609)  (22,004) 
             
Interest Expense (20,605)    (21,502)    (83,080)    (58,222) 
             
Other 6,178   4,484   23,542   11,165  
             
Income (loss) before income taxes 392,386   71,675   (524,147)  (69,061) 
             
Income tax expense (benefit) 23,617   65,415   (298,000)  (4,000) 
             
Net Income (loss)$368,769  $6,260  $(226,147) $(65,061) 
             
Income (loss) per common share-basic and diluted$0.19  $0.00  $(0.11) $(0.03) 
             
Average diluted shares outstanding 1,988,498   2,018,831   2,007,613   2,018,649  

 

 Condensed Balance Sheets 
 As of December 31, 2017 and December 31, 2016 
           
   12/31/2017  12/31/2016    
Assets         
Current assets$8,271,383 $9,045,472    
Property, plant, and equipment, net 8,301,661  8,912,395    
Intangible assets, net 351,186  338,127    
  $16,924,230 $18,295,994    
Liabilities and Stockholders' Equity         
Current liabilities$875,781 $1,313,377    
Long-term debt 2,946,518  3,077,457    
Deferred income taxes 144,000  446,000    
Stockholders' equity 12,957,931  13,459,160    
  $16,924,230 $18,295,994    

 

    CONDENSED STATEMENTS OF CASH FLOWS 
    For the Twelve Months Ended December 31, 2017 and 2016 
              
      12/31/2017  12/31/2016    
Net cash provided by operating activities$204,689  $916,947     
Net cash provided by (used in) investing activities 114,569   (5,316,572)    
Net cash (used in) provided by financing activities (438,271)  3,199,872     
              
Net decrease in cash and cash equivalents (119,013)  (1,199,753)    
Cash and cash equivalents at beginning of period 1,048,713   2,248,466     
              
Cash and cash equivalents at end of period$929,700  $1,048,713     

News Contact:
Bill Ulland
Chairman, President & CEO
(218) 628-2217