IKONICS Reports Third Quarter Results and Progress in Its Aerospace Operations

DULUTH, Minn., Nov. 05, 2015 (GLOBE NEWSWIRE) — IKONICS Corporation (NASDAQ:IKNX), a Duluth-based imaging technology company, announced results for the third quarter of 2015. Compared to the same quarter of 2014, sales increased by 1.4% to $4,543,000 while earnings declined by $22,000 to $117,000 or $0.06 per diluted share.  Export sales rebounded during the quarter, primarily, led by sales to Asia. Domestic Chromaline sales declined as did those of Ikonics Imaging, which was adversely affected by a change in glass suppliers.  DTX experienced a strong quarter in sales and profits partially attributable to a large annual order which normally falls in the fourth quarter. AMS again showed strong growth with sales being up 124% for the quarter over the same period last year.

Bill Ulland, IKONICS CEO, commented: “Even though 2015 earnings are down compared to last year, I was pleased to see that 2015 third quarter operating income improved by 7.2% over the third quarter of 2014.”

During the quarter AMS shipped its 200th acoustic panel, with 99% of the production being within specifications. This is part of an ongoing program. Also, a significant new customer was added during the quarter and equipment upgrades are increasing productivity. The construction of the new AMS manufacturing facility is progressing towards scheduled completion in March of 2016, and the criteria for the State’s job creation incentive program are being met.  

This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, industry trends and new products, technologies and business 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, 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.

IKONICS Corporation
CONDENSED STATEMENTS OF OPERATIONS (unaudited)
For the Three and Nine Months Ended September 30, 2015 and 2014
                       
    Three Months Ended     Nine Months Ended
    9/30/15     9/30/14     9/30/15     9/30/14
Net Sales $ 4,542,730   $ 4,478,014   $   12,794,167     $ 13,867,337
                       
Cost of goods sold   2,925,062     2,850,049       8,436,082       8,769,347
                       
Gross profit   1,617,668     1,627,965       4,358,085       5,097,990
                       
Operating Expenses   1,428,280     1,451,306       4,444,781       4,313,178
                       
Income (loss) from operations   189,388     176,659       (86,696 )     784,812
                       
Other   825     103       4,031       3,613
                       
Income (loss) before income taxes   190,213     176,762       (82,665 )     788,425
                       
Income tax expense   73,457     37,791       1,802       246,107
                       
Net Income (loss) $ 116,756   $ 138,971   $   (84,467 )   $ 542,318
                       
Earnings (loss) per common share-diluted $ 0.06   $ 0.07   $   (0.04 )   $ 0.27
                       
Average shares outstanding-diluted   2,018,574     2,019,806       2,018,253       2,018,237 

 Condensed Balance Sheets
 As of September 30, 2015 and December 31, 2014
               
      9/30/2015     12/31/2014  
      (unaudited)        
Assets              
Current assets   $ 8,278,003   $ 8,857,243  
Property, plant and equipment, net   6,692,256     5,416,848  
Intangible assets, net   330,806     353,871  
    $ 15,301,065   $ 14,627,962  
Liabilities and Stockholders’ Equity            
Current liabilities   $ 1,485,979   $ 744,497  
Deferred income taxes   545,000     545,000  
Long term debt          
Stockholders’ equity   13,270,086     13,338,465  
    $ 15,301,065   $ 14,627,962  
               

CONDENSED STATEMENTS OF CASH FLOWS (unaudited)
For the Nine Months Ended September 30, 2015 and 2014
                     
            9/30/2015     9/30/2014  
Net cash provided by operating activities   $ 796,792   $   1,177,031    
                     
Net cash provided by (used in) investing activities   303,521       (722,107 )  
                     
Net cash provided by financing activities           44,730    
                     
Net increase in cash and cash equivalents     1,100,313       499,654    
                     
Cash and cash equivalents at beginning of period   1,936,214       1,704,300    
                     
Cash and cash equivalents at end of period   $ 3,036,527   $   2,203,954    
                     

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