EX-99 2 c89066exv99.txt PRESS RELEASE EXHIBIT 99 [IKONICS CORPORATION LOGO] NEWS RELEASE NEWS CONTACT: Bill Ulland FOR IMMEDIATE RELEASE Chairman, President & CEO October 22, 2004 (218) 628-2217 IKONICS POSTS 48% INCREASE IN PROFITS ON RECORD 3RD QUARTER SALES DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company, announced third quarter earnings of $205,000, or $0.10 per share, a 48% increase over the comparable quarter of 2003. Sales increased by 9% to $3,324,000, a third quarter record for the company. The company ended the quarter with a cash and cash equivalents balance of $2,600,000. Year to date sales have increased by 15% over 2003 and profits are up by 97% to $640,000 or $0.32 per share for the nine month period. During the quarter, the company launched SignEtch, a new business unit that is bringing a unique signage system to the market. Bill Ulland, IKONICS' CEO, said that he is very encouraged by the initial market reception to SignEtch. "I am pleased that profits grew significantly during the quarter despite the start up costs associated with the launch," said Ulland. 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 and Nine Month Periods Ended September 30, 2004 and 2003
THREE MONTHS ENDED NINE MONTHS ENDED 9/30/04 9/30/03 9/30/04 9/30/03 ------- ------- ------- ------- Sales $ 3,324,135 $ 3,061,503 $10,390,348 $ 9,053,881 Costs and expenses, net of interest income 3,045,228 2,871,804 9,520,748 8,568,248 Loss on Investment 0 0 0 (74,666) ----------- ----------- ----------- ----------- Income before income taxes $ 278,907 $ 189,699 $ 869,600 $ 410,967 Federal and state income tax expense 73,672 50,858 229,294 85,968 ----------- ----------- ----------- ----------- Net income $ 205,235 $ 138,841 $ 640,306 $ 324,999 =========== =========== =========== =========== Earnings per common share-diluted $ .10 $ .07 $ .32 $ .17 =========== =========== =========== =========== Average shares outstanding-diluted 2,014,707 1,900,446 2,008,202 1,888,131
BALANCE SHEETS As of September 30, 2004 and December 31, 2003
ASSETS 9/30/04 12/31/03 ------- -------- Current assets $6,784,203 $5,597,674 Property, plant & equipment 1,075,284 1,110,159 Investment 112,834 112,834 Other intangible 291,028 308,017 Deferred taxes 66,000 66,000 ---------- ---------- $8,329,349 $7,194,684 ========== ========== LIABILITIES AND EQUITY Current liabilities $1,131,276 $ 826,334 Long term debt 0 0 Stockholders' equity 7,198,073 6,368,350 ---------- ---------- $8,329,349 $7,194,684 ========== ==========
2 STATEMENTS OF CASH FLOW For the Nine Months Ended September 30, 2004 and 2003
9/30/04 9/30/03 ------- ------- Cash flows from operating activities $ 1,079,265 $ 1,061,979 Cash flows used in investing activities $ (152,410) $ (195,779) Cash flows provided by financing activities $ 182,372 $ 0 ----------- ------------ Net increase in cash and cash equivalents $ 1,109,227 $ 866,200 Cash and cash equivalents at beginning of period $ 1,507,794 $ 384,107 ----------- ----------- Cash and cash equivalents at end of period $ 2,617,021 $ 1,250,307 =========== ===========
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