EX-99 2 c17717exv99.htm PRESS RELEASE exv99
 

Exhibit 99
     
(IKONICS LOGO)
  NEWS RELEASE
         
News Contact:
  Bill Ulland   For Immediate Release
 
  Chairman, President & CEO   August 7, 2007
 
  (218) 628-2217    
IKONICS EARNS $0.16 PER SHARE ON RECORD SALES and WILL RESUME SHARE REPURCHASE PROGRAM
DULUTH, MN — IKONICS Corporation, a Duluth based imaging technology company, announced today earnings for the second quarter of 2007 of $331,000 or $0.16 per share compared to $0.17 per share for the second quarter of 2006. Sales were a record $4,375,000, a 7% increase over the same period in 2006 and a 25% increase over the first quarter of 2007. Sales growth in 2007 is mainly attributable to image mate™ shipments. The image mate™ brand was acquired in December 2006.
IKONICS CEO, Bill Ulland, said, “I’m pleased with the 25% sales increase from the first quarter of 2007. Earnings for the second quarter of 2007 lagged the record sales primarily due to rising raw material prices, costs associated with our new growth initiatives, a new rented warehouse necessitated by the image mate™ acquisition and expenses related to a bi-annual international screen print trade show.”
“We are taking action on pricing to offset our increased manufacturing costs, but fixed and development costs need to be offset through growth,” he added – “Toward that end, we continue to push our digital texturing and photo-machining projects. During the quarter, we ordered a prototype production machine for digital texturing, acquired high volume production equipment for photo-machining and are adding staff.”
IKONICS also announced today that it is resuming its previously-announced share repurchase program. The company has a current board authorization to repurchase up to 150,000 shares of which a total of 99,993 have previously been purchased. Shares may be purchased in the open market or directly from shareholders who contact the company in privately negotiated transactions.
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 Six Months Ended June 30, 2007 and 2006
                                 
    Three Months Ended     Six Months Ended  
    6/30/07     6/30/06     6/30/07     6/30/06  
Net Sales
   $ 4,374,677     $ 4,099,674     $ 7,882,444     $ 7,471,474  
Costs and expenses
     3,934,716       3,625,112       7,446,150       6,874,909  
 
                        
Income from operations
     439,961       474,563       436,294       596,565  
Gain on sale of investment
     —       —       55,159       —  
Interest income
     36,724       26,359       69,631       50,147  
 
                        
Income before income taxes
     476,685       500,922       561,084       646,712  
Federal and state Income tax expense
     145,283       153,453       90,585       200,941  
 
                        
Net income
   $ 331,402     $ 347,469     $ 470,499     $ 445,771  
 
                        
Earnings per common share-diluted
   $ 0.16     $ 0.17     $ 0.23     $ 0.22  
 
                        
Average shares outstanding-diluted
     2,064,698       2,048,958       2,056,762       2,030,068  
Condensed Balance Sheets
As of June 30, 2007 and December 31, 2006
                 
    6/30/07     12/31/06  
    (unaudited)          
Assets
                
Current assets
   $ 8,631,849     $ 8,229,210  
Property, plant and equipment, net
     1,289,568       991,920  
Investment in non-marketable equity securities
     855,201       988,910  
Intangible assets
     486,144       485,421  
Deferred income taxes
     48,000       48,000  
 
            
 
   $ 11,310,762     $ 10,743,461  
 
            
Liabilities and Stockholders’ Equity
                
Current liabilities
   $ 995,481     $ 879,362  
Long term debt
     —       —  
Stockholders’ equity
     10,315,281       9,864,099  
 
            
 
   $ 11,310,762     $ 10,743,461  
 
            

 

 

CONDENSED STATEMENTS OF CASH FLOW (unaudited)
For Six Months Ended June 30, 2007 and 2006
                 
    6/30/07     6/30/06  
Net cash provided by operating activities
   $ 857,280     $ 472,969  
Net cash used in investing activities
     (263,454 )     (325,405 )
Net cash provided by financing activities
     95,719       223,047  
 
            
Net increase in cash and cash equivalents
     689,545       370,611  
Cash and cash equivalents at beginning of period
     3,428,186       3,412,072  
 
            
Cash and cash equivalents at end of period
   $ 4,117,731     $ 3,782,683