IKONICS Announces Improved 2020 and Fourth Quarter Results
February 18 2021 - 5:07PM
IKONICS Corporation (the “Company” or “IKONICS”) (NASDAQ:IKNX), a
Duluth-based imaging technology company, announced 2020 and fourth
quarter financial results. IKONICS had 2020 revenue of $13,432,000,
down 23.8% from the prior year. The Company realized a net loss for
2020 of $439,000, or $0.22 per diluted share, compared to a 2019
loss of $814,000, or $0.41 per diluted share. Fourth quarter sales
were $4,228,000, down 14.8% versus the same quarter in 2019.
Earnings for the fourth quarter improved from a loss of $80,000, or
$0.04 per diluted share, in 2019 to income of $1,463,000, or $0.74
per diluted share in 2020. Year-to-date and fourth quarter earnings
in 2020 were both favorably impacted by the Company receiving
forgiveness on its $1,215,000 SBA PPP loan.
Glenn Sandgren, IKONICS’ CEO said, “I am pleased to
announce that IKONICS delivered markedly improved fourth quarter
results compared to the same period last year, a positive
conclusion to the most challenging year in the Company’s history.
The results were driven by our relentless cost cutting, renewed
focus on operational excellence and an improving international
business climate.
“The IKONICS team’s performance has been
exceptional. They navigated a myriad of obstacles and put forth a
tremendous effort to deliver the results. It is important to
highlight that the fourth quarter of 2020 was IKONICS’ first
quarterly profit since the fourth quarter of 2018, and that IKONICS
would have been profitable in the fourth quarter of 2020
irrespective of the one-time PPP loan forgiveness.
Full year 2020 performance was decidedly improved
as well, despite the impact of COVID-19 on markets and the one-time
expense associated with the CEO transition.”
Sandgren continued, “We are optimistic as we look
forward to 2021 opportunities including:
- IKONICS Imaging business—which saw renewed customer interest in
the fourth quarter of 2020 and benefited greatly from its IKONART®
consumer screen printing system—enjoyed robust sales for the year
and is on a trajectory to significantly outperform in 2021.
- Integrated Ink Jet Systems (IIS) that made great technical
strides with the Dual Print™ mold texturing mask making system in
2020 and expects to commercialize the technology in 2021, with
revenue ramping into 2022.
- Improving demand for Chromaline screen print products as
economies both domestically and internationally begin to
reopen.”
Conversely, Sandgren stated that the AMS division
will continue to be negatively impacted in 2021 by the slow
Aerospace industry recovery. Sandgren also noted that the Company
was notified that its $2.7 million outstanding loan will be payable
on April 1, 2021. Due to efforts in 2020, the Company was able to
build cash through the year, and he believes that any adverse
effect of the loan recall is mitigated by its strong working
capital position including cash and cash equivalents of
$3.7 million along with the Company's $2.0 million available
line of credit.
Sandgren concluded, “2020 was a catalyst for
transformation at IKONICS. The fourth quarter performance was
outstanding, and IKONICS is well positioned as the global economy
is expected to begin reopening in mid-2021. We are in a continual
search for strategic additions to our businesses and other
possibilities that leverage our core strengths and improve our
trajectory. Barring the unknown additional impact of COVID-19
related restrictions on our served markets, 2021 will be a year of
measured business improvement and new opportunities for
IKONICS.”
This press release contains forward-looking
statements regarding sales, gross profits, net earnings, balance
sheet position, new products, new business initiatives, customer
behavior, market trends, and the impacts of the COVID-19 pandemic
and efforts to mitigate the same 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 or automotive industries, 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, delays in
completing planned expansions, 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.
News
Contact: |
Glenn
Sandgren |
|
Chief Executive Officer |
|
(218) 628-2217 |
IKONICS
Corporation |
CONDENSED
STATEMENTS OF OPERATIONS |
For the Three and
Twelve Months Ended December 31, 2020 and 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Twelve
Months Ended |
|
|
12/31/20 |
|
|
12/31/19 |
|
|
12/31/20 |
|
|
12/31/19 |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
Net sales |
$ |
4,227,604 |
|
|
$ |
4,963,097 |
|
|
$ |
13,432,220 |
|
|
$ |
17,618,559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
2,734,434 |
|
|
|
3,415,517 |
|
|
|
9,527,143 |
|
|
|
12,221,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
1,493,170 |
|
|
|
1,547,580 |
|
|
|
3,905,077 |
|
|
|
5,397,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
1,206,662 |
|
|
|
1,617,862 |
|
|
|
5,691,097 |
|
|
|
6,353,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from operations |
|
286,508 |
|
|
|
(70,282 |
) |
|
|
(1,786,020 |
) |
|
|
(956,676 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(15,864 |
) |
|
|
(22,469 |
) |
|
|
(86,561 |
) |
|
|
(90,058 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income |
|
1,214,539 |
|
|
|
11,454 |
|
|
|
1,223,261 |
|
|
|
61,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes |
|
1,485,183 |
|
|
|
(81,297 |
) |
|
|
(649,320 |
) |
|
|
(985,558 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit) |
|
22,000 |
|
|
|
(1,225 |
) |
|
|
(210,000 |
) |
|
|
(172,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
1,463,183 |
|
|
$ |
(80,072 |
) |
|
$ |
(439,320 |
) |
|
$ |
(813,558 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per common share-basic and diluted |
$ |
0.74 |
|
|
$ |
(0.04 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.41 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Average
diluted shares outstanding |
|
1,976,354 |
|
|
|
1,976,354 |
|
|
|
1,976,354 |
|
|
|
1,980,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
BALANCE SHEETS |
As of December 31,
2020 and 2019 |
|
|
|
|
|
|
|
|
|
|
12/31/2020 |
|
|
|
12/31/2019 |
|
Assets |
|
(unaudited) |
|
|
|
|
|
Current
assets |
$ |
7,803,453 |
|
|
$ |
8,692,188 |
|
Property,
plant, and equipment, net |
|
7,388,363 |
|
|
|
7,915,984 |
|
Patents,
net |
|
243,583 |
|
|
|
271,369 |
|
|
$ |
15,435,399 |
|
|
$ |
16,879,541 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Current
liabilities |
$ |
3,596,053 |
|
|
$ |
1,934,486 |
|
Long-term
debt |
|
— |
|
|
|
2,688,357 |
|
Stockholders' equity |
|
11,839,346 |
|
|
|
12,256,698 |
|
|
$ |
15,435,399 |
|
|
$ |
16,879,541 |
|
|
|
|
|
|
|
|
|
CONDENSED
STATEMENTS OF CASH FLOWS |
For the Twelve
Months Ended December 31, 2020 and 2019 |
|
|
|
|
|
|
|
|
12/31/2020 |
|
|
12/31/2019 |
|
|
|
|
|
|
|
|
(unaudited) |
|
|
Net cash used in operating activities |
$ |
(398,828 |
) |
|
$ |
(477,031 |
) |
Net cash
provided by investing activities |
|
2,058,471 |
|
|
|
7,578 |
|
Net cash
provided by (used in) financing activities |
|
1,070,553 |
|
|
|
(190,035 |
) |
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
2,730,196 |
|
|
|
(659,488 |
) |
Cash and
cash equivalents at beginning of period |
|
963,649 |
|
|
|
1,623,137 |
|
|
|
|
|
|
|
Cash and
cash equivalents at end of period |
$ |
3,693,845 |
|
|
$ |
963,649 |
|
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