-- Itronics named Green Company of the Year for Northern Nevada.
-- Silver produced by Itronics is recognized as "environmentally Green."
-- Recycling used photographic liquids into pure silver and GOLD'n GRO
fertilizers is now recognized as a superior "Green Photography" option for
consumer photo processors that use silver halide chemistry and photopaper
to make photographs and prints.
-- GOLD'n GRO Guardian Deer Repellent is registered for sale in 10 states.
-- Received a United States Environmental Protection Agency amendment to
the GOLD'n GRO Guardian label that permits use with GOLD'n GRO 8-8-8+4%S
fertilizer, making the product systemic while fertilizing the plants and
safely repelling deer.
-- Made first sales of GOLD'n GRO Guardian spray kits to landscape
maintenance companies for evaluation.
-- Established photochemical recycling services agreements with two
national environmental services companies, providing access to adequate
supplies of used photo liquids to meet the requirements of expanding GOLD'n
GRO fertilizer sales.
-- Continued to achieve strong growth in sales and gross profit while
reducing operational losses.
-- Began implementation of the Company's three year funding plan which
includes acquiring new funding to improve liquidity, replacing high cost
debt with lower cost equity and debt, and restructuring the balance sheet.
Nine month 2008 sales were $2.4 million compared to $1.9 million in the
same period in 2007, up 26 percent. The 2008 nine month results compare to
2007 full year sales of $2.3 million, indicating a substantial improvement
in 2008.
For the nine month period ended September 30, gross profit was $421,000
compared to gross profit of $139,000 for the prior period, an increase of
202 percent. The 2008 third quarter produced a gross operating loss of
$5,000 compared to a $15,000 gross operating profit in the 2007 third
quarter, a decline of $20,000.
Both the 2008 nine months and 3rd quarter sales were affected by a timing
difference in the sale of a Photochemical Silver Concentrator. In 2008 a
Photochemical Silver Concentrator was delivered shortly after the close of
the quarter. If the Photochemical Silver Concentrator had been booked
in the 2008 third quarter, nine month sales would have increased by
approximately 34 percent and 3rd quarter sales would have increased by
approximately 21 percent.
On November 11 Itronics announced plans to increase silver refining
capacity by 100 times in two stages. The Company continues to significantly
expand GOLD'n GRO fertilizer sales, which were up 50 percent in the hird
quarter, 37 percent for the first nine months. Receipt of silver in
photoliquids has been exceeding the company's recovery capacity this year
causing unprocessed silver inventories to expand, and creating an immediate
need for the Stage 1 expansion. Ongoing expansion of receipts of silver
bearing photographic waste materials to support GOLD'n GRO fertilizer sales
growth is expected to continue and to be expanded in the future so that the
Stage 1 capacity will be quickly utilized after it is installed and Stage 2
capacity will be needed within the indicated time frame.
Demand for the Itronics environmentally beneficial recycling services is
rapidly increasing as restrictions on alternative methods of liquid
photochemical disposal continue to tighten throughout the United States.
The Company has established two additional waste photochemical processing
agreements with large national service companies that are now providing
expanding quantities of photoliquids which are large enough to support
expected GOLD'n GRO liquid fertlizer and GOLD'n GRO Guardian deer repellent
fertilizer sales growth in 2008 and beyond. The Company believes that
these new agreements will make it possible to reach throughout the nation
to obtain new photochemical supplies when needed. They also make Itronics
newly available "Green Consumer Photography" option more accessible to
consumer photo processors nationwide.
Mining Technical Services sales increased by 162 percent in the third
quarter and 629 percent for the first nine months of 2008 compared to 2007.
This division continues to advance its web based InsideMetals.com Gold
Producer Stocks information portal: www.insidemetals.com. Visitor traffic
on the InsideMetals.com web page is continuing to increase and the site is
continuing to generate subscription income. The Company plans to
reactivate marketing of paid advertising programs on the web site to Junior
Gold & Minerals Exploration Companies in the fourth quarter.
Third quarter 2008 consolidated operating loss was $874,000, compared to
$875,000 in the 2007 third quarter, a nominal reduction. Excluding
non-recurring, non-cash option compensation expanse of $322,000, the
consolidated operating loss would be $552,000, a 37 percent improvement.
The nine month 2008 consolidated operating loss was $1,610,000 compared to
$2,171,000 for the prior year, a decrease in operating loss of $562,000, a
26 percent improvement. Excluding the non-recurring, non-cash option
compensation expense of $322,000 the operating loss would be $1,288,000, an
improvement of $883,000 or 41 percent.
The net income (loss) fluctuates widely from quarter to quarter due to
non-cash adjustments to derivative instruments and is explained in detail
in the Itronics third quarter form 10Q.
"The projects we have underway are converting Itronics into an expanding
clean technology company with strong growth and profit potential," said Dr.
John Whitney Itronics President. "One of the largest challenges we are now
facing is to acquire funding to improve liquidity, to replace costly long
term debt financing, and to restructure the Itronics balance sheet. We have
a five year business plan being successfully implemented and a three year
funding plan that we are now aggressively implementing."
Results for the third quarter ended September 30, 2008, together with
comparative figures for 2007 are summarized below:
ITRONICS INC.
For the Quarter For the 9 Months
Ended September 30 Ended September 30
2008 2007 2008 2007
REVENUE
Fertilizer $ 360,288 $ 239,965 $ 1,920,731 $ 1,398,902
Silver $ 70,925 $ 87,394 $ 268,943 $ 208,291
Photo Services $ 40,911 $ 206,265 $ 112,229 $ 294,243
Mining Technical
Services $ 21,784 $ 8,329 $ 108,999 $ 14,957
Total Revenues $ 493,908 $ 541,953 $ 2,410,902 $ 1,916,393
Gross Profit(Loss) $ (4,606) $ 15,424 $ 420,759 $ 139,394
Operating Income
(Loss) $ (874,173) $ (875,270) $ (1,609,503) $ (2,171,221)
Other Income
(Expense)(including
interest) $ (458,898) $ (343,312) $ (1,045,786) $ (582,578)
Gain(loss) on
Derivative
Instruments (non
cash item related
to financing) $ (4,624,198) $ 1,762,907 $ (2,107,986) $ 1,594,154
Net Income(Loss) $ (5,957,269) $ 544,325 $ (4,763,275) $ (1,159,645)
About Itronics
Headquartered in Reno, Nevada, Itronics Inc. is a "Creative Clean
Technology" company. Itronics, through its subsidiary, Itronics
Metallurgical, Inc. is the only company with a fully permitted "Beneficial
Use Photochemical, Silver, and Water Recycling" plant in the United States
that converts used photoliquids into pure silver and GOLD'n GRO liquid
fertilizers. The Company also provides environmentally compatible mining
technology development, project planning, and technical services to the
gold mining industry and operates the popular InsideMetals.com web site,
http://www.insidemetals.com. which provides a value-added WORLD VIEW of
Gold Producer Stocks, Mineral Producer Stocks, Junior Gold Stocks, and
Junior Mineral Stocks. Itronics has received numerous domestic and
international awards that recognize its ability to successfully create and
implement new environmentally compatible recycling and fertilizer
technologies.
The Company's environmentally friendly GOLD'n GRO liquid fertilizers, which
are extensively used in agriculture, can be used for lawns and houseplants,
and are available, along with liquid fertilizer injectors, at the Company's
"e-store" catalog at http://goldngro.com. The popular Silver Nevada Miner
bars are available at the Company's "e-store" catalog at
http://www.itromet.com.
VISIT OUR WEB SITE: http://www.itronics.com
("Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: This press release contains or may contain forward-looking
statements such as statements regarding the Company's growth and
profitability, growth strategy, liquidity and access to public markets,
operating expense reduction, and trends in the industry in which the
Company operates. The forward-looking statements contained in this press
release are also subject to other risks and uncertainties, including those
more fully described in the Company's filings with the Securities and
Exchange Commission. The Company assumes no obligation to update these
forward-looking statements to reflect actual results, changes in risks,
uncertainties or assumptions underlying or affecting such statements, or
for prospective events that may have a retroactive effect.)
Contact Information: Contact: Paul Knopick 888-795-6336