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Ikonics Corp. (IKNX) filed Quarterly Report for the period ended 2011-09-30.
Ikonics Corp. has a market cap of $16 million; its shares were traded at around $8.05 with a P/E ratio of 17.5 and P/S ratio of 1.
This is the annual revenues and earnings per share of IKNX over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of IKNX.
Highlight of Business Operations:
Sales. The Company realized a 5.3% sales increase during the third quarter of 2011 with sales of $4.4 million, compared to $4.1 million in sales during the same period in 2010. Domestic Chromaline sales for the third quarter of 2011 were up 6.4% versus the third quarter of 2010 due to strong artwork film and emulsion sales. An increase in Asian and Latin American sales resulted in a 3.6% Export sales increase. Lower European sales partially offset these increases. IKONICS Imaging sales also increased 3.8% during the third quarter of 2011 compared to the third quarter of 2010 due to growth in film sales. Third quarter results in 2011 also benefitted from increased Micromachining and DTX sales, which grew from $211,000 in the third quarter of 2010 to $241,000 in the same period in 2011.Gross Profit. Gross profit was $1.7 million, or 38.5% of sales, in the third quarter of 2011 compared to $1.7 million, or 40.3% of sales, for the same period in 2010. The Domestic gross profit percentage, which decreased from 46.9% during the third quarter of 2010 to 41.2% in the third quarter of 2011, and Export gross profit percentage, which also decreased from 27.7% in the third quarter of 2010 to 23.1% in the third quarter of 2011, were both negatively impacted by raw material price increases. IKONICS Imaging was able to offset the negative impact of the raw material price increases with a more favorable mix related to sales of higher margin film products.
Sales. The Company’s sales increased 4.4% during the first nine months of 2011 to $12.6 million versus sales of $12.1 million during the first nine months of 2010. Strong sales in Asia and Latin America drove a 5.7% Export sales increase for the first nine months of 2011 compared to the same period in 2010. DTX and Micromachining sales also grew 56.6% from $491,000 in the first nine months of 2010 to $769,000 in the same period of 2011. IKONICS Imaging sales increased 3.0% during the first nine months of 2011 compared to the first nine months of 2010 due to increased film and equipment sales. Partially offsetting these sales increases was a 1.2% Domestic sales decrease.
Gross Profit. Gross profit for the first nine months of 2011 was $5.0 million, or 39.7% of sales, compared to $5.0 million, or 41.3% of sales, for the same period in 2010. Domestic and Export gross profit percentage decreased by 5.0% and 4.8%, respectively, during the first nine months of 2011 compared to the same period in 2010. Raw material price increases along with a decrease in higher margin film sales have unfavorably affected the gross profit percentage for Export and Domestic. Higher margin DTX and Mircomachining sales along with an increase in higher margin IKONICS Imaging film sales partially offset the Export and Domestic gross margin decreases.
During the first nine months of 2011, trade receivables increased by $385,000. The increase in receivables was driven by higher sales volumes, especially in Export where customers typically have longer payment terms. The Company believes that the quality of its receivables is high and that strong internal controls are in place to maintain proper collections. Inventories increased by $340,000 due to increased raw material purchases. The higher raw material purchases were due to the timing of a large restocking order, an increase in order quantities to take advantage of volume discounts and new raw materials necessary to support the manufacture and sale of the Company’s new products. Prepaid expenses and other assets increased $30,000, reflecting prepaid insurance premiums. Accounts payable increased $248,000 due to the timing of payments to and purchases from vendors. Accrued expenses decreased $65,000, reflecting the timing of compensation payments while the impact from income taxes payable decreased cash by $11,000.
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