EX-99 3 c83490exv99.txt PRESS RELEASE EXHIBIT 99 [IKONICS CORPORATION LOGO] NEWS RELEASE IKONICS REPORTS 40% INCREASE IN PROFITS FOR 2003 DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company, reported 2003 earnings of $503,000, or $0.40 per share, a 40% increase over 2002. Sales grew by 3% to a record level of $12,105,000. Bill Ulland, IKONICS CEO, said that sales grew in spite of the abandonment of an unprofitable line of business and that the earnings increase is after a write down of $75,000 on an investment. The company generated $1,401,000 in cash from operations in 2003, as compared to $249,000 in 2002 and ended the year with $1,508,000 in cash and cash equivalents. IKONICS has 1,263,404 shares outstanding on a diluted basis. "Although the timing of payments and investments in plant and equipment affects cash flow," said Ulland, "I believe these numbers reflect a financially very healthy company, as does our balance sheet." The company recently announced a patent application for etchable metals and introduced a new film for laser imaging. IKONICS stock is listed on the Nasdaq SmallCap market under the symbol IKNX. This press release contains forward-looking statements regarding sales, earnings, and new products that involve risks and uncertainties. The company's actual results could differ materially as a result of domestic and global economic conditions, competitive market conditions, acceptance of new products, the ability to identify and make suitable acquisitions, as well as the factors described in the company's Form 10-KSB, Forms 10-QSB and other reports on file with the SEC. IKONICS CORPORATION STATEMENTS OF OPERATIONS For the Three Months and Twelve Months Ended December 31, 2003 and 2002
THREE MONTHS ENDED TWELVE MONTHS ENDED 12/31/03 12/31/02 12/31/03 12/31/02 ----------- ----------- ----------- ----------- Sales $ 3,051,246 $ 2,879,853 $12,105,127 $11,797,279 Costs, expenses, and other income 2,829,797 2,782,666 11,398,045 11,336,462 Loss on investment 74,666 ----------- ----------- ----------- ----------- Income before income taxes $ 221,449 $ 97,187 $ 632,416 $ 460,817 Federal and state income tax expense (benefit) 43,032 (22,528) 129,000 101,000 ----------- ----------- ----------- ----------- Net income $ 178,417 $ 119,715 $ 503,416 $ 359,817 =========== =========== =========== =========== Earnings per common share-diluted $ .14 $ .10 $ .40 $ .29 =========== =========== =========== =========== Average shares outstanding-diluted 1,278,549 1,252,809 1,263,404 1,252,809
BALANCE SHEETS AS OF DECEMBER 31, 2003 AND DECEMBER 31, 2002
ASSETS 12/31/03 12/31/02 ---------- ---------- Current assets $5,597,674 $4,630,281 Property, plant and equipment 1,110,159 1,204,627 Investment 112,834 187,500 Intangible assets 308,017 271,751 Deferred taxes 66,000 118,000 ---------- ---------- $7,194,684 $6,412,159 ========== ========== LIABILITIES AND EQUITY Current liabilities $ 826,334 $ 545,496 Long term debt 0 0 Stockholders' equity 6,368,350 5,866,663 ---------- ---------- $7,194,684 $6,412,159 ========== ==========
STATEMENTS OF CASH FLOW For the Twelve Months Ended December 31, 2003 and 2002
12/31/03 12/31/02 ----------- ----------- Cash flows from operating activities $ 1,400,756 $ 249,117 Cash flows used in investing activities $ (277,069) $ (336,200) Cash flows used in financing activities $ $ (72,489) ----------- ----------- Net (decrease) increase in cash and cash equivalents $ 1,123,687 $ (159,572) Cash and cash equivalents at beginning of period $ 384,107 $ 543,679 ----------- ----------- Cash and cash equivalents at end of period $ 1,507,794 $ 384,107 =========== ===========