NASDAQ$WULF

Terawulf Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

IKONICS announced first quarter 2020 results with a net loss, but showed improvement on a non-GAAP basis despite COVID-19 impacts.

IKONICS reported a decrease in revenue by 1% compared to the previous year. The company experienced a net loss, but on a non-GAAP basis, the adjusted net loss improved by 51% year-over-year, excluding one-time CEO transition expenses. The impact of COVID-19 significantly affected March revenue.

  • IKONICS has been deemed an essential business and continues to operate with COVID-19 safety measures.
  • A Payroll Protection Program SBA loan of $1.2 million was received in April.
  • The company accounted for a first quarter income tax benefit of $240,000 as part of the CARES Act.
  • The IKONART® craft product line is benefitting from the new textile screen printing film introduction and social marketing efforts.

Headline financials

Total Revenue

$3.5M

Previous: $3.53M-0.9%
EPS (adj)

-$0.11

Previous: -$0.23+52.2%
Capital Expenditures

-$135K

Previous: -$117K-15.4%
Free Cash Flow

-$722K

Previous: -$572K-26.2%
Net Income

-$587K

Previous: -$455K-29.0%
Operating Income

-$811K

Previous: -$552K-47.1%
Gross Profit

$1.15M

Previous: $1.01M+14.3%
Cash & Equivalents

$1.61M

Previous: $617K+160.1%
Total Assets

$15.6M

Previous: $17M-8.0%
Stock-Based Comp

$3.69K

Previous: $1.92K+92.1%

Revenue & EPS history

Terawulf · Revenue · Quarterly

$3.5M

Q1 2020-0.9%vs Q1 2019

Forward guidance

Due to the unknown severity and duration of the COVID-19 pandemic, it is impossible to predict the performance of the business. However, the crisis could yield strategic opportunities for IKONICS.

Tailwinds

  • IKONICS has been responding aggressively to this global crisis by implementing new workplace controls to protect our people.
  • IKONICS has been taking actions to improve our liquidity and reduce our operating costs including a temporary reduction in officer compensation and board fees.
  • Compared with many similar companies, IKONICS has a favorable cash position, with approximately $3.0 million in cash and short-term investments as well as a $2.1 million open line of credit.
  • The crisis could yield a number of strategic opportunities for IKONICS and other well positioned companies.

Headwinds

  • The impact of COVID-19 on March revenue was substantial, and is expected to continue and will overshadow much of our short-term progress.
  • Due to the unknown severity and duration of the COVID-19 pandemic and the related lack of visibility to the impact on the Company's served markets, it is impossible to predict the performance of the business at this juncture.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-1.0%

Avg return

Earnings day

-3.2%

Avg return

5 days after

+1.0%

Avg return

30 days after

29%

18 / 63 earnings

Positive

+51.9%

Q4 2013

Best reaction

-24.4%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.7%-3.8%-0.2%
Q4 2025-9.2%-14.0%-16.7%
Q3 2025-13.6%-23.1%+10.7%
Q1 2025-9.1%+10.9%+31.8%
Q4 2024+16.1%+2.8%-24.7%
Q3 2024-16.7%-18.6%-14.6%
Q2 2024-12.7%+6.3%+16.6%
Q1 2024-8.5%-12.6%+72.2%
Q4 2023+34.7%+42.2%+23.1%
Q3 2023-1.9%+8.2%+66.3%
Q2 2023-9.4%-22.7%-32.2%
Q1 2023-1.9%-2.5%-13.1%
Q4 2022+20.5%+23.1%+128.2%
Q3 2022+7.8%-16.5%-43.5%
Q2 2022-24.4%-26.9%-39.9%
Q1 2022-1.5%-10.7%-40.7%
Q4 2021-3.2%-4.6%-55.3%
Q3 2021-4.1%-1.0%+46.7%
Q2 2021+5.6%+3.9%+22.9%
Q1 2021+0.8%+3.1%-3.7%
Q4 2020-18.3%-28.1%-22.0%
Q3 2020-6.7%-19.0%+8.4%
Q2 2020+3.5%+2.2%-5.6%
Q1 2020+1.4%+4.1%-2.0%
Q4 2019-7.0%-6.2%-38.4%
Q3 2019-4.4%-6.0%-10.8%
Q2 2019-9.1%-9.0%-13.8%
Q1 2019-7.0%-6.3%-1.4%
Q4 2018+4.5%+2.0%+0.9%
Q3 2018+0.0%-6.3%+5.1%
Q2 2018+0.5%-7.8%+6.6%
Q1 2018-3.8%-4.4%+7.2%
Q4 2017+16.5%+30.1%+10.6%
Q3 2017-3.0%-1.1%-6.4%
Q2 2017-2.4%-1.9%-6.8%
Q1 2017-6.1%-6.8%-14.4%
Q4 2016-1.5%-1.9%-6.1%
Q3 2016-0.2%-0.7%+10.2%
Q2 2016+0.0%-0.3%-15.6%
Q1 2016+4.5%
Q4 2015-0.7%
Q3 2015-3.8%
Q2 2015-8.9%
Q1 2015-4.1%
Q4 2014-7.2%
Q3 2014-7.7%
Q2 2014-0.6%
Q1 2014-10.1%
Q4 2013+51.9%
Q3 2013-2.9%
Q2 2013-5.7%
Q1 2013+0.5%
Q4 2012+17.6%
Q3 2012-6.5%
Q2 2012+0.0%
Q1 2011-0.4%
Q1 2012+0.0%
Q4 2011+0.0%
Q3 2011-8.8%
Q3 2010-8.8%
Q2 2010+5.0%
Q2 2011+5.0%
Q4 2010+5.0%

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