EX-99 2 ex_152757.htm EXHIBIT 99 ex_152757.htm

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 August 2, 2019
  (218) 628-2217  

 

 

IKONICS ANNOUNCES SECOND QUARTER RESULTS

 

DULUTH, MN - IKONICS Corporation (Nasdaq:IKNX), a Duluth-based imaging technology company, announced 2019 second quarter sales of $4,600,000, down 1%, compared with the second quarter of 2018. Second quarter earnings fell from $145,000, or $0.07 per diluted share, in 2018 to a loss of $116,000, or $0.06, per diluted share in 2019. Earnings for the first six months of the year have also decreased from net income of $15,000, or $0.01 per diluted share, in 2018 to a loss of $571,000, or $0.29 per diluted share, in 2019.

 

Bill Ulland, IKONICS CEO, said, “The earnings decline for first half of 2019 was partially attributable to a $72,000 customer credit due to product damaged from freezing during shipping, and a $144,000 increase in medical insurance expense compared to the first six months of 2018. We do not anticipate a continuation of the increasing medical expense or shipping issues for the rest of this year.”

 

He continued: “The rest of 2019 looks better: Our new IKONART product is gaining traction with major distributors, and our aerospace business is seeing a record number of new development leads across several industries. In addition, it appears that the trade war, which has affected our sales to China, may be cooling down.”

 

Ulland concluded, “We have repurchased 2,742 shares this year under our stock buy-back program and the program has 97,258 shares remaining available for future purchases.”

 

 

 

 

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 Six Months Ended June 30, 2019 and 2018

 

   

Three Months Ended

   

Six Months Ended

 
   

6/30/19

   

6/30/18

   

6/30/19

   

6/30/18

 

Net sales

  $ 4,596,411     $ 4,634,177     $ 8,125,102     $ 8,705,655  
                                 

Cost of goods sold

    3,167,982       2,971,862       5,687,554       5,680,921  
                                 

Gross profit

    1,428,429       1,662,315       2,437,548       3,024,734  
                                 

Operating expenses

    1,609,326       1,465,435       3,170,133       2,968,494  
                                 

(Loss) income from operations

    (180,897 )     196,880       (732,585 )     56,240  
                                 

Interest expense

    (22,515 )     (23,807 )     (44,790 )     (43,742 )
                                 

Other

    17,303       11,805       33,497       21,226  
                                 

(Loss) income before income taxes

    (186,109 )     184,878       (743,878 )     33,724  
                                 

Income tax (benefit) expense

    (70,398 )     39,542       (173,136 )     19,126  
                                 

Net (loss) income

  $ (115,711 )   $ 145,336     $ (570,742 )   $ 14,598  
                                 

(Loss) income per common share-basic and diluted

  $ (0.06 )   $ 0.07     $ (0.29 )   $ 0.01  
                                 

Average diluted shares outstanding

    1,982,275       1,983,553       1,982,910       1,983,553  

 

 

CONDENSED BALANCE SHEETS

As of June 30, 2019 and December 31, 2018

 

   

6/30/2019

   

12/31/2018

 

Assets

 

(unaudited)

         

Current assets

  $ 8,420,424     $ 8,958,070  

Property, plant, and equipment, net

    7,987,135       8,084,742  

Intangible assets, net

    292,380       376,406  
    $ 16,699,939     $ 17,419,218  

Liabilities and Stockholders' Equity

               

Current liabilities

  $ 1,238,427     $ 1,303,531  

Long-term debt

    2,755,353       2,821,657  

Deferred income taxes

    183,000       183,000  

Stockholders' equity

    12,523,159       13,111,030  
    $ 16,699,939     $ 17,419,218  

 

 

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

For the Six Months Ended June 30, 2019 and 2018

 

   

6/30/2019

   

6/30/2018

 

Net cash (used in) provided by operating activities

  $ (768,925 )   $ 877,914  

Net cash used in investing activities

    (466,296 )     (381,746 )

Net cash used in financing activities

    (90,730 )     (70,040 )
                 

Net (decrease) increase in cash and cash equivalents

    (1,325,951 )     426,128  

Cash and cash equivalents at beginning of period

    1,623,137       929,700  
                 

Cash and cash equivalents at end of period

  $ 297,186     $ 1,355,828