EX-99 2 a16-21035_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

 

November 3, 2016

 

(218) 628-2217

 

 

 

IKONICS REPORTS PROGRESS IN THE PRINTED ELECTRONICS MARKET, THIRD QUARTER RESULTS

 

DULUTH, MN - IKONICS Corporation (NASDAQ:IKNX), a Duluth-based imaging technology company, announced third quarter earnings of $82,000, or $0.04 per diluted share, as compared to $0.06 per diluted share for the third quarter of 2015. Sales for the third quarter of 2016 were essentially flat compared to the same period in 2015 and, on a year-to-date comparison, overall 2016 sales and earnings are similar to 2015.

 

In addition, the Company noted that a newly developed product for the printed electronics market, which encompasses wearable technology, micro-antennas and touch pads, was recognized as product of the year at an industry trade show.

 

IKONICS CEO, Bill Ulland, said: “Although the return to profitability was welcomed, the strong dollar and the weak global economy continue to create headwinds for IKONICS.

 

“However, sales by AMS, our aerospace business, continued to grow in the third quarter of 2016, showing a 64% increase over the third quarter of 2015,” he said. “New opportunities to further expand that business are being actively investigated with major aerospace companies.”

 

Ulland noted that IKONICS’ export business was down 7% quarter over quarter, while other business units were consistent with 2015 results.

 

“Our new product for the printed electronics market, Alpha FlexTrace, was awarded Product of the Year at the Specialty Printing and Imaging Technology Expo (SGIA) in Las Vegas, in this quarter,” Ulland said. “Alpha FlexTrace is a flexible, printed circuit substrate featuring a proprietary surface treatment that overcomes conductive ink spread, which is a common problem in micro-circuit printing. The advanced surface properties of Alpha FlexTrace were developed by IKONICS to improve the print acuity of conductive pastes by maximizing ink deposit and controlling the circuit footprint at the substrate level.”

 

Ulland continued, “If accepted by the electronics industry, this product has the potential to have a major impact on IKONICS, since it is a consumable and its usage could be substantially in excess of our other products sold in this market.”

 

As is normal with any product that brings new capabilities and potential new products to the user, FlexTrace is in the evaluation phase where customers are determining applications. Initial customer reports are encouraging. More information is available at  www.chromaline.com/alpha.

 

This press release contains forward-looking statements regarding sales, gross profits, net earnings (losses), balance sheet position, industry trends, customer agreements, 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, failure of customers to enter into anticipated agreements, 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.

 

ISO 9001 Certified

NASDAQ Listed: IKNX

 


 

IKONICS Corporation

CONDENSED STATEMENTS OF OPERATIONS (unaudited)

For the Three and Nine Months Ended September 30, 2016 and 2015

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/16

 

9/30/15

 

9/30/16

 

9/30/15

 

Net Sales

 

$

4,607,501

 

$

4,542,730

 

$

12,817,289

 

$

12,794,167

 

Cost of goods sold

 

2,940,027

 

2,925,062

 

8,330,930

 

8,436,082

 

Gross profit

 

1,667,474

 

1,617,668

 

4,486,359

 

4,358,085

 

Operating Expenses

 

1,507,781

 

1,428,280

 

4,597,056

 

4,444,781

 

Income (loss) from operations

 

159,693

 

189,388

 

(110,697

)

(86,696

)

Interest Expense

 

(21,721

)

—

 

(36,720

)

—

 

Other

 

4,519

 

825

 

6,681

 

4,031

 

Income (loss) before income taxes

 

142,491

 

190,213

 

(140,736

)

(82,665

)

Income tax expense (benefit)

 

60,225

 

73,457

 

(69,415

)

1,802

 

Net income (loss)

 

$

82,266

 

$

116,756

 

$

(71,321

)

$

(84,467

)

Earnings (loss) per common share-basic and diluted

 

$

0.04

 

$

0.06

 

$

(0.04

)

$

(0.04

)

Average diluted shares outstanding

 

2,018,842

 

2,018,574

 

2,018,614

 

2,018,253

 

 

Condensed Balance Sheets

As of September 30, 2016 and December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/30/2016

 

12/31/2015

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

$

8,799,697

 

$

6,721,891

 

 

 

 

 

Property, plant, and equipment, net

 

9,030,784

 

7,957,330

 

 

 

 

 

Intangible assets, net

 

343,302

 

336,096

 

 

 

 

 

 

 

$

18,173,783

 

$

15,015,317

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

1,232,858

 

$

1,135,102

 

 

 

 

 

Long-term debt

 

3,109,647

 

—

 

 

 

 

 

Deferred income taxes

 

385,000

 

385,000

 

 

 

 

 

Stockholders’ equity

 

13,446,278

 

13,495,215

 

 

 

 

 

 

 

$

18,173,783

 

$

15,015,317

 

 

 

 

 

 

CONDENSED STATEMENTS OF CASH FLOWS (unaudited)

For the Nine Months Ended September 30, 2016 and 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/30/2016

 

9/30/2015

 

 

 

 

 

Net cash provided by operating activities

 

$

804,185

 

$

796,792

 

 

 

 

 

Net cash provided by (used in) investing activities

 

(5,369,992

)

303,521

 

 

 

 

 

Net cash provided by financing activities

 

3,234,373

 

—

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(1,331,434

)

1,100,313

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

2,248,466

 

1,936,214

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

917,032

 

$

3,036,527