EX-99 2 c92298exv99.txt PRESS RELEASE EXHIBIT 99 (IKONICS CORPORATION LOGO) 4832 Grand Ave. o Duluth, MN 55807 NEWS RELEASE PH: 218-628-2217 o FAX: 218-628-3245 www.ikonics.com o info@ikonics.com NEWS CONTACT: Bill Ulland FOR IMMEDIATE RELEASE Chairman, President & CEO February 15, 2005 (218) 628-2217 IKONICS REPORTS 51% INCREASE IN PROFITS AND RECORD SALES FOR 2004 DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company, reported today 2004 earnings of $758,000 or $0.38 per share, a 51% increase over 2003. Sales grew by 13% to a record level of $13,682,000. The earnings growth came despite startup costs associated with two new business units. These costs were particularly heavy in the fourth quarter and, combined with a lifo inventory reserve adjustment, resulted in a decline of fourth quarter earnings from 2003. Bill Ulland, IKONICS CEO, said "I anticipate continued growth in 2005 and that the drag on earnings caused by launching new businesses and Sarbanes-Oxley compliance will be overcome by increased sales from our new and long-established businesses." Ulland added that the new IKONSign Etch business unit is off to an encouraging start. 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 CONDENSED STATEMENTS OF OPERATIONS For the Three Months and Twelve Months Ending December 31, 2004 and 2003
THREE MONTHS ENDED TWELVE MONTHS ENDED 12/31/04 12/31/03 12/31/04 12/31/03 ------------- ------------- ------------- ------------- Sales $ 3,292,101 $ 3,051,246 $ 13,682,449 $ 12,105,127 Costs and expenses net of interest income 3,130,350 2,829,797 12,651,098 11,398,045 Loss on investment 0 0 0 74,666 ------------- ------------- ------------- ------------- Income before income taxes $ 161,751 $ 221,449 $ 1,031,351 $ 632,416 Federal and state income tax expense 43,706 43,032 273,000 129,000 ------------- ------------- ------------- ------------- Net income $ 118,045 $ 178,417 $ 758,351 $ 503,416 ============= ============= ============= ============= Earnings per common share-diluted $ .06 $ .09 $ .38 $ .27 ============= ============= ============= ============= Average shares outstanding-diluted 2,008,226 1,917,824 1,982,814 1,895,106
CONDENSED BALANCE SHEETS As of December 31, 2004 and 2003
ASSETS 12/31/04 12/31/03 ------------- ------------- Current assets $ 6,906,349 $ 5,597,674 Property, plant and equipment 1,028,830 1,110,159 Investment 197,460 112,834 Intangible assets 292,349 308,017 Deferred taxes 65,000 66,000 ------------- ------------- $ 8,489,988 $ 7,194,684 ============= ============= LIABILITIES AND EQUITY Current liabilities $ 1,075,772 $ 826,334 Long term debt 0 0 Stockholders' equity 7,414,216 6,368,350 ------------- ------------- $ 8,489,988 $ 7,194,684 ============= =============
CONDENSED STATEMENTS OF CASH FLOW For the Twelve Months Ended December 31, 2004 and 2003
12/31/04 12/31/03 ------------- ------------- Cash flows from operating activities $ 1,261,855 $ 1,400,756 Cash flows used in investing activities $ (255,125) $ (277,069) Cash flows provided by financing activities $ 222,936 $ 0 ------------- ------------- Net increase in cash and cash equivalents $ 1,229,666 $ 1,123,687 Cash and cash equivalents at beginning of period $ 1,507,794 $ 384,107 ------------- ------------- Cash and cash equivalents at end of period $ 2,737,460 $ 1,507,794 ============= =============