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ITRONICS REPORTS 2008 NINE MONTHS RESULTS
RENO, Nevada, November 17, 2008 -- Itronics Inc. (OTCBB: ITRO; Frankfurt and Berlin Stock Exchanges: ITG) Friday filed its third quarter 2008 report on Form 10Q, and it is now available on the SEC web site at www.sec.gov ..
Highlights of achievements in the first nine months include:
- Itronics named Green Company of the Year for Northern Nevada.
- Silver produced by Itronics is recognized as ?environmentally Green.?
- Recycling used photographic liquids into pure silver and GOLD?n GRO fertilizers is now recognized as a superior ?Green Photography? option for consumer photo processors that use silver halide chemistry and photopaper to make photographs and prints.
- GOLD?n GRO Guardian Deer Repellent is registered for sale in 10 states.
- Received a United States Environmental Protection Agency amendment to the GOLD?n GRO Guardian label that permits use with GOLD?n GRO 8-8-8+4%S fertilizer, making the product systemic while fertilizing the plants and safely repelling deer.
- Made first sales of GOLD?n GRO Guardian spray kits to landscape maintenance companies for evaluation.
- Established photochemical recycling services agreements with two national environmental services companies, providing access to adequate supplies of used photo liquids to meet the requirements of expanding GOLD?n GRO fertilizer sales.
- Continued to achieve strong growth in sales and gross profit while reducing operational losses.
- Began implementation of the Company?s three year funding plan which includes acquiring new funding to improve liquidity, replacing high cost debt with lower cost equity and debt, and restructuring the balance sheet.
Nine month 2008 sales were $2.4 million compared to $1.9 million in the same period in 2007, up 26 percent. The 2008 nine month results compare to 2007 full year sales of $2.3 million, indicating a substantial improvement in 2008.
For the nine month period ended September 30, gross profit was $421,000 compared to gross profit of $139,000 for the prior period, an increase of 202 percent. The 2008 third quarter produced a gross operating loss of $5,000 compared to a $15,000 gross operating profit in the 2007 third quarter, a decline of $20,000.
Both the 2008 nine months and 3rd quarter sales were affected by a timing difference in the sale of a Photochemical Silver Concentrator. In 2008 a Photochemical Silver Concentrator was delivered shortly after the close of the quarter. If the Photochemical Silver Concentrator had been booked in the 2008 third quarter, nine month sales would have increased by approximately 34 percent and 3rd quarter sales would have increased by approximately 21 percent.
On November 11 Itronics announced plans to increase silver refining capacity by 100 times in two stages. The Company continues to significantly expand GOLD?n GRO fertilizer sales, which were up 50 percent in the third quarter, 37 percent for the first nine months. Receipt of silver in photoliquids has been exceeding the company?s recovery capacity this year causing unprocessed silver inventories to expand, and creating an immediate need for the Stage 1 expansion. Ongoing expansion of receipts of silver bearing photographic waste materials to support GOLD?n GRO fertilizer sales growth is expected to continue and to be expanded in the future so that the Stage 1 capacity will be quickly utilized after it is installed and Stage 2 capacity will be needed within the indicated time frame.
Demand for the Itronics environmentally beneficial recycling services is rapidly increasing as restrictions on alternative methods of liquid photochemical disposal continue to tighten throughout the United States. The Company has established two additional waste photochemical processing agreements with large national service companies that are now providing expanding quantities of photoliquids which are large enough to support expected GOLD?n GRO liquid fertlizer and GOLD?n GRO Guardian deer repellent fertilizer sales growth in 2009 and beyond. The Company believes that these new agreements will make it possible to reach throughout the nation to obtain new photochemical supplies when needed. They also make Itronics newly available ?Green Consumer Photography? option more accessible to consumer photo processors nationwide.
Mining Technical Services sales increased by 162 percent in the third quarter and 629 percent for the first nine months of 2008 compared to 2007. This division continues to advance its web based InsideMetals.com Gold Producer Stocks information portal: www.insidemetals.com .. Visitor traffic on the InsideMetals.com web page is continuing to increase and the site is continuing to generate subscription income. The Company plans to reactivate marketing of paid advertising programs on the web site to Junior Gold & Minerals Exploration Companies in the fourth quarter.
Third quarter 2008 consolidated operating loss was $874,000, compared to $875,000 in the 2007 third quarter, a nominal reduction. Excluding non-recurring, non-cash option compensation expanse of $322,000, the consolidated operating loss would be $552,000, a 37 percent improvement.
The nine month 2008 consolidated operating loss was $1,610,000 compared to $2,171,000 for the prior year, a decrease in operating loss of $562,000, a 26 percent improvement. Excluding the non-recurring, non-cash option compensation expense of $322,000 the operating loss would be $1,288,000, an improvement of $883,000 or 41 percent.
The net income (loss) fluctuates widely from quarter to quarter due to non-cash adjustments to derivative instruments and is explained in detail in the Itronics third quarter form 10Q.
?The projects we have underway are converting Itronics into an expanding clean technology company with strong growth and profit potential,? said Dr. John Whitney Itronics President. ?One of the largest challenges we are now facing is to acquire funding to improve liquidity, to replace costly long term debt financing, and to restructure the Itronics balance sheet. We have a five year business plan being successfully implemented and a three year funding plan that we are now aggressively implementing.?
Results for the third quarter ended September 30, 2008, together with comparative figures for 2007 are summarized below:
ITRONICS INC.
For the Quarter For the 9 Months
Ended September 30 Ended September 30
2008 2007 2008 2007
REVENUE
Fertilizer $ 360,288 $ 239,965 $ 1,920,731 $1,398,902
Silver $ 70,925 $ 87,394 $ 268,943 $ 208,291
Photo Services $ 40,911 $ 206,265 $ 112,229 $ 294,243
Mining Technical Services $ 21,784 $ 8,329 $ 108,999 $ 14,957
Total Revenues $493,908 $ 541,953 $2,410,902 $1,916,393
Gross Profit(Loss) ($4,606) $ 15,424 $ 420,759 $ 139,394
Operating Income(Loss) ($874,173) ($875,270) ($1,609,503) ($2,171,221)
Other Income(Expense) ($458,898) ($343,312) ($1,045,786) ($582,578)
(including interest)
Gain(loss) on Derivative Instruments ($4,624,198) $1,762,907 ( $2,107,986) $1,594,154
(non cash item related to financing)
Net Income(Loss) ($5,957,269) $544,325 ($4,763,275) ($1,159,645)
About Itronics
Headquartered in Reno, Nevada, Itronics Inc. is a "Creative Clean Technology" company. Itronics, through its subsidiary, Itronics Metallurgical, Inc. is the only company with a fully permitted ?Beneficial Use Photochemical, Silver, and Water Recycling? plant in the United States that converts used photoliquids into pure silver and GOLD?n GRO liquid fertilizers. The Company also provides environmentally compatible mining technology development, project planning, and technical services to the gold mining industry and operates the popular InsideMetals.com web site, http://www.insidemetals.com. which provides a value-added WORLD VIEW of Gold Producer Stocks, Mineral Producer Stocks, Junior Gold Stocks, and Junior Mineral Stocks. Itronics has received numerous domestic and international awards that recognize its ability to successfully create and implement new environmentally compatible recycling and fertilizer technologies.
The Company?s environmentally friendly GOLD?n GRO liquid fertilizers, which are extensively used in agriculture, can be used for lawns and houseplants, and are available, along with liquid fertilizer injectors, at the Company's "e-store" catalog at http://goldngro.com. The popular Silver Nevada Miner bars are available at the Company's ?e-store? catalog at http://www.itromet.com ..
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VISIT OUR WEB SITE: http://www.itronics.com
("Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains or may contain forward-looking statements such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction, and trends in the industry in which the Company operates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements, or for prospective events that may have a retroactive effect.)