SOURCE: Itronics Inc.

April 16, 2008 05:00 ET

Itronics Reports 2007 Financial Results: Increased Gross Profit; Fertilizer Sales Up 28 Percent; Sales Total $2.34 Million

RENO, NV--(Marketwire - April 16, 2008) - Itronics Inc. (OTCBB: ITRO) (FRANKFURT: ITG) (BERLIN: ITG) today reported a positive gross profit of $124,160 for 2007, up from $75,193 in 2006, an increase of 65 percent. Total sales increased by 25 percent to $2.34 million from $1.87 million for the full year.

The annual report for the year 2007 on Form 10KSB is available on the U.S. Securities & Exchange web site at http://www.sec.gov.

GOLD'n GRO liquid fertilizer sales were up 28 percent in 2007 compared to the prior year despite sales growth in the 2007 fourth quarter being flat due to water shortages and related fertilization curtailment in California's Central Valley. Sales growth resumed in the first quarter 2008 and is expected to continue for the entire year.

Silver sales in the fourth quarter of 2007 declined by 17 percent and total sales for 2007 decreased by 24 percent compared to the prior year primarily due to electrical power fluctuations outside the Company's control. Silver sales expanded in the first quarter 2008 and this expansion is expected to continue through the year. The silver price is at historical highs and is contributing to the 2008 sales increase.

Photo Service sales increased 162 percent for the full year 2007 due to three new spent photochemical supply contracts and the sale of a photochemical silver concentrator. In 2008 the Company expects to continue to expand used photochemical supplies and to sell another photochemical silver concentrator to produce an increase for the year.

Mining Technical Services were flat in 2007 while the division was making a transition from deriving its income from technical services to an Internet based revenue model through the newly launched Insidemetals.com internet information portal. In 2008 Mining Technical Services is continuing to advance its web based InsideMetals.com Gold Producer Stocks information portal: www.insidemetals.com, and it is obtaining and completing new technical services contracts. Both initiatives are significantly increasing revenues in 2008.

During the year the Company obtained $2.1 million in financing to fund operations and to continue its expansion. While additional funding will be necessary in 2008, the Company said it has begun efforts to seek alternative methods that have less impact on the stock price and number of shares outstanding.

Goals outlined for 2008 are to continue to expand GOLD'n GRO liquid fertilizer sales and silver sales; expand used photochemical raw material supplies by acquiring new photoservices contracts; implement the GOLD'n GRO Guardian liquid deer repellent fertilizer manufacturing and marketing; and continue to acquire financing to support growth. On-going sales growth is expected to produce a significant increase in Gross Profit in 2008.

The report reviews progress in implementing the Company's eight part long term growth plan. The Company's primary focus is on building the GOLD'n GRO brand by expanding fertilizer sales which are now the driver for overall sales growth in the fertilizer segment, and to begin manufacturing and selling GOLD'n GRO Guardian Deer Repellent. Silver refining is being expanded to accommodate increased volumes of silver produced by fertilizer sales expansion. InsideMetals.com is rapidly gaining recognition as a global internet brand and is now receiving visits from more than 170 countries world-wide.

Operating loss increased 32 percent compared to the prior year, primarily due to increased sales and marketing expenses. Net loss increased by 175 percent due primarily to increased loss on derivative instruments.

Results for the year 2007 and the fourth quarter ended December 31, 2007, together with comparative figures for 2006, are summarized below:

                                          ITRONICS INC.

                           For the Quarter           For the 12 Months
                          Ended December 31          Ended December 31
                          2007         2006          2007         2006
REVENUE
  Fertilizer          $   251,919   $  251,179   $ 1,663,361   $ 1,297,282
  Silver              $   108,524   $  131,455   $   316,815   $   418,265
  Photo Services      $    40,722   $   67,723   $   334,965   $   128,033
  Mining Technical
   Services           $    12,198   $    3,127   $    27,155   $    28,338

Total Revenues        $   413,363   $  453,484   $ 2,342,296   $ 1,871,918

Gross Profit(Loss)   ($    27,774) ($   45,971)  $   124,160   $    75,193

Operating Income
 (Loss)              ($   784,747) ($  632,626) ($ 2,943,428) ($ 2,224,506)

Other Income(Expense)
 (including interest)($   145,774) ($  257,377) ($   740,892) ($ 1,043,905)

Gain(Loss) on
 Derivative
 Instruments (non
 cash item related
 to financing)       ($ 8,392,358)  $  188,930  ($ 6,798,204) ($   541,474)

Net Income(Loss)     ($ 9,322,879) ($  701,073) ($10,482,524) ($ 3,809,885)

About Itronics

Itronics, through its subsidiary, Itronics Metallurgical, Inc., is the only company in the world with a fully permitted "Beneficial Use Photochemical, Silver, and Water Recycling" plant located in the United States which can convert used photoliquids into pure silver and liquid fertilizers. At the Company's Reno, Nevada factory more than 99 percent of the silver and virtually all the other toxic heavy metals are extracted from used photoliquids. The purified liquids are converted into environmentally beneficial, chelated, micronutrient and multinutrient liquid fertilizers sold under the GOLD'n GRO trademark. The silver is refined and sold as bullion and 5 troy ounce, 0.999 pure, Silver Nevada Miner numismatic bars. The environmentally friendly liquid fertilizers can be used for lawns and houseplants, and are available, along with GOLD'n GRO 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.

Headquartered in Reno, Nevada, Itronics Inc. is a "Creative Environmental Technology" company and a world leader in photochemical recycling. 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.

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.)

Contact Information

  • Contact:
    Paul Knopick
    888-795-6336