EX-99 2 c21126exv99.htm PRESS RELEASE exv99
 

Exhibit 99
(IKONICS LOGO)
         
News Contact:
  Bill Ulland   For Immediate Release
 
  Chairman, President & CEO   October 31, 2007
 
  (218) 628-2217    
IKONICS ANNOUNCES 24% EARNINGS INCREASE ON RECORD THIRD
QUARTER SALES
DULUTH, MN — IKONICS Corporation, a Duluth based imaging technology company, announced today third quarter 2007 earnings of $354,000, or $0.17 per share, a 24% increase over the third quarter of 2006. Sales were up 9% over the comparable quarter to $4,017,000. Both figures are third quarter records.
Bill Ulland, Ikonics CEO, said, “Our core screen print photochemical business performed particularly well during the quarter, aided by the December of 2006 image mate® acquisition. We also began to see sales contributions from two of our new business ventures which are expected to increase in the fourth quarter.”
During the quarter, the Company entered into an option agreement to buy a 15 acre brownfield site from the city of Duluth, Minnesota to accommodate business growth.
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 (unaudited)
For the Three Months and Nine Months Ended September 30, 2007 and 2006
                                 
    Three Months Ended     Nine Months Ended  
    9/30/07     9/30/06     9/30/07     9/30/06  
Net Sales
   $ 4,016,923     $ 3,673,830     $ 11,899,367     $ 11,145,304  
Costs and expenses
     3,531,922       3,294,559       10,978,072       10,169,468  
 
                        
Income from operations
     485,001       379,271       921,295       975,836  
Gain on sale of investment
     —       —       55,159       —  
Interest income
     40,616       32,492       110,247       82,639  
 
                        
Income before income taxes
     525,617       411,763       1,086,701       1,058,475  
Federal and state Income tax expense
     171,692       126,810       262,277       327,751  
 
                        
Net income
   $ 353,925     $ 284,953     $ 824,424     $ 730,724  
 
                        
Earnings per common share-diluted
   $ 0.17     $ 0.14     $ 0.40     $ 0.36  
 
                        
Average shares outstanding-diluted
     2,074,569       2,043,981       2,061,400       2,029,732  
Condensed Balance Sheets
As of September 30, 2007 and December 31, 2006
                 
    9/30/07     12/31/06  
    (unaudited)          
Assets
                
Current assets
   $ 8,910,277     $ 8,229,210  
Property, plant and equipment, net
     1,329,280       991,920  
Investment in non-marketable equity securities
     855,201       988,910  
Intangible assets
     485,074       485,421  
Deferred income taxes
     48,000       48,000  
 
            
 
   $ 11,627,832     $ 10,743,461  
 
            
 
                
Liabilities and Stockholders’ Equity
                
Current liabilities
   $ 945,897     $ 879,362  
Long term debt
     —       —  
Stockholders’ equity
     10,681,935       9,864,099  
 
            
 
   $ 11,627,832     $ 10,743,461  
 
            
CONDENSED STATEMENTS OF CASH FLOW (unaudited)
For Nine Months Ended September 30, 2007 and 2006
                 
    9/30/07     9/30/06  
Net cash provided by operating activities
   $ 1,384,262     $ 797,419  
Net cash used in investing activities
     (385,067 )     (446,247 )
Net cash provided by financing activities
     103,719       223,047  
 
            
Net increase in cash and cash equivalents
     1,102,914       574,219  
Cash and cash equivalents at beginning of period
     3,428,186       3,412,072  
 
            
Cash and cash equivalents at end of period
   $ 4,531,100     $ 3,986,291