EX-99 2 c97037exv99.txt PRESS RELEASE EXHIBIT 99 IKONICS CORPORATION 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 July 25, 2005 (218) 628-2217 IKONICS UPDATES SECOND QUARTER RESULTS -- REPORTS STRONG REBOUND IN SALES AND EARNINGS DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company, reported sales for the second quarter of 2005 of $3,742,000 and earnings of $275,000. Sales improved by 12% over the first quarter of the year and were slightly above the record second quarter of 2004. Earnings for the second quarter of 2005 were $275,000, or $0.14 per share, compared to $0.01 per share for the first quarter of 2005, and slightly ahead of the second quarter of 2004. Bill Ulland, IKONICS CEO, said, "I am pleased that sales have rebounded to a record level and earnings, in spite of costs associated with a new product line start-up and an unfavorable $54,000 inflation related LIFO inventory adjustment, matched our strong 2004 second quarter performance." IKONICS was recently named one of the fastest growing small public companies in America by Fortune magazine. This press release contains forward-looking statements regarding sales, net 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 Six Months Ended June 30, 2005 and 2004
THREE MONTHS ENDED SIX MONTHS ENDED 6/30/05 6/30/04 6/30/05 6/30/04 ---------- ---------- ---------- ---------- Net sales $3,741,995 $3,683,415 $7,070,522 $7,066,213 Costs and expenses net of interest income 3,343,065 3,312,347 6,656,826 6,475,520 ---------- ---------- ---------- ---------- Income before income taxes 398,930 371,068 413,696 590,693 Income tax expense 123,668 96,655 114,779 155,622 ---------- ---------- ---------- ---------- Net income $ 275,262 $ 274,413 $ 298,917 $ 435,071 ========== ========== ========== ========== Earnings per common share-diluted $ .14 $ .14 $ .15 $ .22 ========== ========== ========== ========== Average shares outstanding-diluted 1,964,166 2,016,595 1,964,218 2,004,158
CONDENSED BALANCE SHEETS As of June 30, 2005 and December 31, 2004
ASSETS 6/30/05 12/31/04 ---------- ---------- Current assets $6,593,319 $6,906,349 Property, plant and equipment, net 924,436 1,028,830 Intangible assets 288,286 292,349 Deferred income taxes 65,000 65,000 Investment in non-marketable equity securities 450,790 197,460 ---------- ---------- $8,321,831 $8,489,988 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 581,301 $1,075,772 Long term debt 0 0 Stockholders' equity 7,740,530 7,414,216 ---------- ---------- $8,321,831 $8,489,988 ========== ==========
CONDENSED STATEMENTS OF CASH FLOW For the Six Months Ended June 30, 2005 and 2004
6/30/05 6/30/04 ----------- ----------- Cash flows provided by operating activities $ 125,237 $ 498,851 Cash flows used in investing activities $ (272,362) (95,643) Cash flows provided by financing activities 13,214 165,736 ----------- ----------- Net increase (decrease) in cash and cash equivalents (133,911) 568,944 Cash and cash equivalents at beginning of period 2,737,460 1,507,794 ----------- ----------- Cash and cash equivalents at end of period $ 2,603,549 $ 2,076,738 =========== ===========