EX-99 3 c84743exv99.txt PRESS RELEASE EXHIBIT 99 [IKONICS CORPORATION LOGO] 4832 Grand Ave. - Duluth, MN 55807 PH: 218-628-2217 - Fax: 218-628-3245 www.ikonics.com - info@ikonics.com [NEWS RELEASE] NEWS CONTACT: Bill Ulland FOR IMMEDIATE RELEASE Chairman, President & CEO April 20, 2004 (218) 628-2217 IKONICS REPORTS 20% INCREASE IN SALES DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company, announced record sales for the first quarter of 2004. IKONICS reported sales of $3,383,000, a 20% increase over the first quarter of 2003, and earnings of $161,000, or $0.12 per share, compared to $0.02 per share for the comparable quarter of 2003. The company also generated $254,000 in cash flow from operations for the quarter compared to $49,000 in the first quarter of 2003. Sales growth was experienced across all product groups and market areas. New products, increasing market share, a strong Euro, and economic growth in Asia and North America all contributed to these results. Bill Ulland, IKONICS CEO, said "This performance is in line with our plan for 2004 and we are optimistic about our prospects for the year." During the quarter, the company introduced a line of advanced equipment to complement its new RapidMask photoresist film. "The marriage of Crystal Blast equipment and RapidMask is enhancing the sales of both products by increasing the capabilities of abrasive etching," said Ulland. The company also reported continued progress towards the commercialization of IKONMetals, its newly developed suite of composite metals that can be imaged through abrasive etching. 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 Month Periods Ended March 31, 2004 and 2003
THREE MONTHS ENDED 3/31/04 3/31/03 ------------- -------------- Sales $ 3,382,798 $ 2,830,649 Costs and expenses, net of interest income 3,163,173 2,784,991 Income before income taxes $ 219,625 $ 45,658 Federal and state income tax expense 58,967 15,980 ------------- -------------- Net income $ 160,658 $ 29,678 ============= ============== Earnings per common share-diluted $ .12 $ .02 ============= ============== Average shares outstanding-diluted 1,288,369 1,254,045
BALANCE SHEETS AS OF MARCH 31, 2004 AND DECEMBER 31, 2003
ASSETS 3/31/04 12/31/03 ------- -------- Current assets $5,971,876 $5,597,674 Property, plant and equipment 1,087,783 1,110,159 Investment 112,834 112,834 Intangible assets 302,350 308,017 Deferred taxes 66,000 66,000 ---------- ---------- $7,540,843 $7,194,684 ========== ========== LIABILITIES AND EQUITY Current liabilities $ 932,387 $ 826,334 Long term debt 0 0 Stockholders' equity 6,608,456 6,368,350 ---------- ---------- $7,540,843 $7,194,684 ========== ==========
STATEMENTS OF CASH FLOW For the Three Months Ended March 31, 2004 and 2003
3/31/04 3/31/03 ----------- --------- Cash flows from operating activities $ 253,516 $ 49,251 Cash flows provided by (used in) investing activities $ 6,857 $ (58,498) Cash flows provided by financing activities $ 75,445 $ 0 ----------- --------- Net increase (decrease) in cash and cash equivalents $ 335,818 $ (9,247) Cash and cash equivalents at beginning of period $ 1,507,794 $ 384,107 ----------- --------- Cash and cash equivalents at end of period $ 1,843,612 $ 374,860 =========== =========