Exhibit 99.1
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
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
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 | |||||