EX-99 2 a13-5577_1ex99.htm EX-99

Exhibit 99

 

4832 Grand Avenue
Duluth, MN 55807 USA
Phone: (218) 628-2217
Fax: (218 628-3245
Email: info@ikonics.com
Website: www.ikonics.com

 

News Contact: Bill Ulland

For Immediate Release

Chairman, President & CEO

February 19, 2013

(218) 628-2217

 

 

STRONG FOURTH QUARTER LIFTS IKONICS

 

IKONICS Corporation (NASDAQ: IKNX), a Duluth-based imaging technology company, reported a strong 2012 fourth quarter. Sales were up 8% and earnings, at $0.14 per share, were 109% higher than the fourth quarter of 2011 The Company ended 2012 with record sales of $17,312,000 — a 3% increase over 2011. Earnings for the year ended up at $0.35 per share — essentially the same as 2011.

 

Bill Ulland, IKONICS CEO said: “Our patient investment in DTX and Micro-Machining technologies continues to depress earnings, but I believe we now are beginning to see the payoff, particularly with our Micro-Machining customers in the aerospace industry.

 

“In addition to ongoing business related to the Boeing 747-8, we have received a blanket order associated with the Airbus A350, which we expect to grow as the A350 is placed into production. We also have orders beginning early in 2013 for acoustic liners from a major jet engine manufacturer; I anticipate that this product line will grow during the year,” he said. “Consequently, we are expanding our manufacturing capability, adding both equipment and people. I believe that these exciting developments not only portend a profitable business for Ikonics but also are a validation of our unique technology by a very sophisticated industry.”

 

“During the year we also invested significantly in strengthening our patent position for both Micro-Machining and DTX,” he continued.  “Our domestic screen print market was a star performer in 2012, with sales up 7% over last year while competing in a difficult market.”

 

Ulland noted: “During the fourth quarter of 2012 we paid a $1.00 per share, one-time special cash dividend, amounting to approximately $2,000,000.  We currently have cash and short-term investment of $2.4 million versus $3.9 million at the end of the third quarter of 2012, and we continue to generate a strong cash flow. I believe our current cash and its projected growth is more than sufficient to meet our growth plans. We have no long-term debt.”

 

This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, new products and new business initiatives 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 industry, 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, the ability to control operating costs without impacting growth as well as the factors described in the Company’s Form s 10-K, and 10-Q, and other reports on file with the SEC.

 

ISO 9001 Certified

NASDAQ Listed: IKNX

 



 

IKONICS Corporation

CONDENSED STATEMENTS OF INCOME

For the Three Months and Twelve Months Ended December 31, 2012 and 2011

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

12/31/12

 

12/31/11

 

12/31/12

 

12/31/11

 

Net sales

 

$

4,524,468

 

$

4,178,419

 

$

17,312,407

 

$

16,780,262

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

2,641,347

 

2,469,645

 

10,367,563

 

10,070,852

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

1,883,121

 

1,708,774

 

6,944,844

 

6,709,410

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

1,456,944

 

1,451,114

 

5,911,963

 

5,683,406

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

426,177

 

257,660

 

1,032,881

 

1,026,004

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

2,673

 

3,882

 

12,050

 

17,253

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

428,850

 

261,542

 

1,044,931

 

1,043,257

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

143,708

 

124,850

 

351,000

 

345,000

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

285,142

 

$

136,692

 

$

693,931

 

$

698,257

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share-diluted

 

$

0.14

 

$

0.07

 

$

0.35

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding-diluted

 

1,994,802

 

1,989,106

 

1,990,847

 

1,986,041

 

 

CONDENSED BALANCE SHEETS

As of December 31, 2012 and 2011

 

 

 

12/31/12

 

12/31/11

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

$

7,417,041

 

$

8,404,194

 

 

 

 

 

Property, plant and equipment, net

 

5,461,878

 

5,436,902

 

 

 

 

 

Intangible assets

 

305,357

 

326,362

 

 

 

 

 

 

 

$

13,184,276

 

$

14,167,458

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

1,023,531

 

$

838,915

 

 

 

 

 

Deferred income taxes

 

366,000

 

338,000

 

 

 

 

 

Long term debt

 

 

 

 

 

 

 

Stockholders’ equity

 

11,794,745

 

12,990,543

 

 

 

 

 

 

 

$

13,184,276

 

$

14,167,458

 

 

 

 

 

 

CONDENSED STATEMENTS OF CASH FLOWS

For the Twelve Months Ended December 31, 2012 and 2011

 

 

 

12/31/12

 

12/31/11

 

 

 

Net cash provided by operating activities

 

$

1,181,950

 

$

793,532

 

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

(171,725

)

(288,881

)

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

(1,909,447

)

71,131

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(899,222

)

575,782

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

1,867,165

 

1,291,383

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

967,943

 

$

1,867,165