UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 8, 2012
IKONICS CORPORATION
(Exact name of registrant as specified in its charter)
Minnesota | 000-25727 | 41-0730027 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
4832 Grand Avenue Duluth, Minnesota |
55807 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code (218) 628-2217
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
On November 8, 2012, IKONICS Corporation (the Company) reported its financial results for the quarter and nine months ended September 30, 2012. See the Companys press release dated November 8, 2012, which is furnished as Exhibit 99 hereto and incorporated by reference in this Item 2.02.
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibit. |
99 | Press Release dated November 8, 2012 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
IKONICS CORPORATION | ||||||
Date: November 9, 2012 | /s/ Jon Gerlach | |||||
Jon Gerlach | ||||||
Chief Financial Officer and Vice President of Finance |
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EXHIBIT INDEX
Exhibit |
Description |
Method of Filing | ||
99 | Press Release dated November 8, 2012 | Filed Electronically |
Exhibit 99
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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 8, 2012 | |||||
(218) 628-2217 |
IKONICS REPORTS 6% EARNINGS INCREASE AND EXPANSION OF
AEROSPACE BUSINESS
DULUTH, MNIKONICS Corporation (NASDAQ:IKNX), a Duluth based imaging technology company, reported 2012 third quarter earnings of $228,000 or $0.11 per share, a 6% increase over the third quarter of 2011. Sales were $4,231,000, down 3% from the comparable quarter of 2011, which was a record third quarter. IKONICS CEO, Bill Ulland stated, Weak export sales and a temporary purchasing delay at our largest aerospace customer contributed to the sales decease. Increased high margin sales from DTX and IKONICS Imaging partially offset this weakness and contributed to the increased profit. Our balance sheet continues to be strong with $3.9 million in cash and short-term investments, approximately $2.00 per share.
Mr. Ulland, IKONICS CEO, added, We are making important strides with our aerospace business. We have begun regular production of parts for a major jet engine manufacturer and anticipate a ramp up in that business in 2013. We are negotiating a long-term contract with a second-tier supplier to the commercial aviation industry, and our primary customer serving the defense industry has informed us that we should anticipate an increase in orders beginning in 2013.
Ulland also stated, We are conducting feasibility studies of our technology with a number of potential customers to determine if its a good fit for their needs. In addition, we are working on joint development projects with two of the largest aerospace companies. Although these activities do not in themselves currently generate significant sales or profits, I believe they could lead to very important business.
Because of the increasing demand, we are again expanding our manufacturing capacityboth equipment and peopleto serve the aerospace industry. During this expansion and ramp-up phase expenses may temporarily exceed revenues for this segment, Ulland cautioned.
This press release contains forward-looking statements regarding sales, gross profits, net earnings, and new products and businesses that involve risks and uncertainties. The Companys actual results could differ materially as a result of domestic and global economic conditions, competitive market conditions, acceptance of new products, availability of equipment sold by the Company or for use with its products, raw materials costs, the ability to identify and make suitable acquisitions, the ability to control costs without impacting growth as well as the factors described in the Companys Form s 10-K, and 10-Q, and other reports on file with the SEC.
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IKONICS Corporation
CONDENSED STATEMENTS OF INCOME (unaudited)
For the Three Months and Nine Months Ended September 30, 2012 and 2011
Three Months Ended | Nine Months Ended | |||||||||||||||
9/30/12 | 9/30/11 | 9/30/12 | 9/30/11 | |||||||||||||
Net sales |
$ | 4,321,235 | $ | 4,361,312 | $ | 12,787,939 | $ | 12,601,843 | ||||||||
Cost of goods sold |
2,478,358 | 2,681,509 | 7,726,216 | 7,601,207 | ||||||||||||
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Gross profit |
1,752,877 | 1,679,803 | 5,061,723 | 5,000,636 | ||||||||||||
Operating expenses |
1,414,472 | 1,383,557 | 4,455,019 | 4,232,292 | ||||||||||||
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Income from operations |
338,405 | 296,246 | 606,704 | 768,344 | ||||||||||||
Interest income |
2,572 | 4,028 | 9,377 | 13,371 | ||||||||||||
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Income before income taxes |
340,977 | 300,274 | 616,081 | 781,715 | ||||||||||||
Income tax expense |
112,865 | 85,597 | 207,292 | 220,150 | ||||||||||||
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Net income |
$ | 228,112 | $ | 214,677 | $ | 408,789 | $ | 561,565 | ||||||||
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Earnings per common share-diluted |
$ | 0.11 | $ | 0.11 | $ | 0.21 | $ | 0.28 | ||||||||
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Average shares outstanding-diluted |
1,993,429 | 1,987,945 | 1,990,485 | 1,985,263 |
Condensed Balance Sheets
As of September 30, 2012 and December 31, 2011
9/30/12 | 12/31/11 | |||||||
(unaudited) | ||||||||
Assets |
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Current assets |
$ | 9,054,045 | $ | 8,404,194 | ||||
Property, plant and equipment, net |
5,447,308 | 5,436,902 | ||||||
Intangible assets, net |
292,812 | 326,362 | ||||||
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$ | 14,794,165 | $ | 14,167,458 | |||||
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Liabilities and Stockholders Equity |
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Current liabilities |
$ | 1,011,608 | $ | 838,915 | ||||
Deferred income taxes |
338,000 | 338,000 | ||||||
Long term debt |
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Stockholders equity |
13,444,557 | 12,990,543 | ||||||
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$ | 14,794,165 | $ | 14,167,458 | |||||
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CONDENSED STATEMENTS OF CASH FLOW (unaudited)
For the Nine Months Ended September 30, 2012 and 2011
9/30/12 | 9/30/11 | |||||||
Net cash provided by operating activities |
$ | 566,939 | $ | 465,752 | ||||
Net cash used in investing activities |
(214,892 | ) | (334,980 | ) | ||||
Net cash provided by financing activities |
30,123 | 67,631 | ||||||
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Net increase in cash |
382,170 | 198,403 | ||||||
Cash at beginning of period |
1,867,165 | 1,291,383 | ||||||
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Cash at end of period |
$ | 2,249,335 | $ | 1,489,786 | ||||
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