EX-99.1 2 c26048exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
     
(IKONICS LOGO)
  NEWS RELEASE
         
News Contact:
  Bill Ulland   For Immediate Release
 
  Chairman, President & CEO   April 24, 2008
 
  (218) 628-2217    
IKONICS POSTS INCREASE IN OPERATING INCOME ON RECORD FIRST QUARTER SALES
DULUTH, MN — IKONICS Corporation (Nasdaq: IKNX), a Duluth based imaging technology company, announced today record 2008 first quarter sales of $3,781,000, an 8% increase over the first quarter of last year. Operating income was $47,000 compared to a small loss for the first quarter of 2007. Net earnings were $106,000, or $0.05 per share, a $33,000 decrease compared to the first quarter of 2007, which benefited from a one time $55,000 gain on the sale of our interests in Apprise Technologies and a $55,000 tax benefit.
Bill Ulland, Ikonics’ CEO, said that the sales growth was led by sales to Europe and Asia, and a significant contribution from our new Photo Machining venture. The weak dollar has helped our export business, while the slow U.S. economy has had some effect on domestic sales.
Ulland added, “Sales of our new Digital Texturing products have been slow to materialize reflecting both continuing product optimization and the depressed condition of the domestic automotive industry, the initial target market. We are now broadening the target market to the international automotive industry and the non-automotive U.S. market,” he added.
On April 7th, 2008 IKONICS purchased 11 acres, with an option on an additional 4 acres, from the City of Duluth for $366,000. A 35,000 square foot manufacturing and warehouse facility is being constructed on this brown field site.
This press release contains forward-looking statements regarding sales, earnings, and new products that involve risks and uncertainties. The company’s actual results could differ materially as a result of domestic and global economic conditions, competitive market conditions, acceptance of new products, the ability to identify, complete and integrate suitable acquisitions, as well as the factors described in the company’s Form 10-KSB, Forms 10-QSB and other reports on file with the SEC.

 

 

IKONICS Corporation
Condensed Statements of Operations (Unaudited)
For the Three Months Ended March 31, 2008 and 2007
                 
    Three Months Ended  
    03/31/08     03/31/07  
Sales
   $ 3,780,848     $ 3,507,767  
Costs and expenses
     3,733,728       3,511,434  
 
            
Income (Loss) from Operations
     47,120       (3,667 )
Gain on sale of investment
     —       55,159  
Interest Income
     43,675       32,907  
 
            
Income before income taxes
   $ 90,765     $ 84,399  
Federal and state income tax benefit (expense)
     14,843       54,698  
 
            
Net income
     105,638       139,097  
 
            
Earnings per common share-diluted
   $ 0.05     $ 0.07  
 
            
Average shares outstanding-diluted
     2,069,129       2,064,511  
Condensed Balance Sheets
As of March 31, 2008 and December 31, 2007
                 
    3/31/08     12/31/07  
    (Unaudited)          
Assets
                
Current assets
   $ 9,397,635     $ 9,315,737  
Property, plant and equipment, net
     1,403,373       1,320,591  
Investment in non-marketable equity securities
     855,201       855,201  
Intangible assets
     492,825       479,888  
Deferred income taxes
     11,000       11,000  
 
            
 
   $ 12,160,034     $ 11,982,417  
 
            
 
                
Liabilities and Equity
                
Current liabilities
   $ 922,774     $ 936,703  
Long term debt
     —       —  
Stockholders’ equity
     11,237,260       11,045,714  
 
            
 
   $ 12,160,034     $ 11,982,417