EX-99 3 c12628exv99.txt PRESS RELEASE EXHIBIT 99 IKONICS CORPORTION 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 February 15, 2007 (218) 628-2217 IKONICS ANNOUNCES 24% INCREASE IN EARNINGS ON RECORD 2006 SALES. DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company, announced today record sales and earnings for the year 2006. Sales increased by 7% over 2005 to $14,889,000 and earnings by 24% to $1,124,000, or $0.55 per diluted common share. For the fourth quarter sales increased by 9% over the same quarter of 2005 to $3,744,000 and earnings by 22% to a record $393,000, or $0.19 per diluted share. Bill Ulland, Ikonics CEO, said, "I am pleased with our performance in 2006 both in our financial results but also with the foundation we have laid for future growth." "The acquisition of the image mate line of screen print products in late December 2006 will contribute to future growth for our Chromaline Screen Print Products and Export divisions; IKONMetal is gaining market acceptance, particularly in the signage industry; we are making good progress on the industrial applications of our abrasive etching technology; and we continue to be encouraged by our investment in digital imaging technology," said Ulland. This press release contains forward-looking statements regarding sales, expenses, 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 Twelve Months Ended December 31, 2006 and 2005
THREE MONTHS ENDED TWELVE MONTHS ENDED ----------------------- ------------------------- 12/31/06 12/31/05 12/31/06 12/31/05 ---------- ---------- ----------- ----------- Net Sales $3,743,608 $3,438,442 $14,888,912 $13,971,217 Costs and expenses net of interest income 3,212,318 3,012,583 13,299,147 12,715,048 ---------- ---------- ----------- ----------- Income before income taxes 531,290 425,859 1,589,765 1,256,169 Federal and state income taxes 138,249 104,071 466,000 348,000 ---------- ---------- ----------- ----------- Net income $ 393,041 $ 321,788 $ 1,123,765 $ 908,169 ========== ========== =========== =========== Earnings per common share-diluted $ 0.19 $ 0.16 $ 0.55 $ 0.46 ========== ========== =========== =========== Average shares outstanding-diluted 2,038,499 2,001,988 2,027,916 1,986,885
CONDENSED BALANCE SHEETS As of December 31, 2006 and 2005
12/31/06 12/31/05 ----------- ---------- ASSETS Current assets $ 8,229,210 $7,728,358 Property, plant and equipment, net 991,920 951,565 Investment in non-marketable equity securities 988,910 450,790 Intangible assets 485,421 279,086 Deferred taxes 48,000 61,000 ----------- ---------- $10,743,461 $9,470,799 =========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 879,362 $ 992,294 Long term debt -- -- Stockholders' equity 9,864,099 8,478,505 ----------- ---------- $10,743,461 $9,470,799 =========== ==========
CONDENSED STATEMENTS OF CASH FLOW For the Years Ended December 31, 2006 and 2005
12/31/06 12/31/05 ----------- ----------- Net cash flows provided by operating activities $ 1,075,722 $ 980,047 Net cash flows used in investing activities (1,282,655) (422,562) Net cash flows provided by financing activities 223,047 117,127 ----------- ----------- Net increase in cash and cash equivalents 16,114 674,612 Cash and cash equivalents at beginning of year 3,412,072 2,737,460 ----------- ----------- Cash and cash equivalents at end of year $ 3,428,186 $ 3,412,072 =========== ===========