Exhibit 99
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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
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
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
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
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 | ||||