EXHIBIT 99
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News Contact: | | Bill Ulland | | For Immediate Release |
| | | Chairman, President & CEO | | May 15, 2007 |
| | | (218) 628-2217 | | |
IKONICS Revises First Quarter Earnings Release
DULUTH, MN — IKONICS Corporation, a Duluth based imaging technology company, announced today a revision to its 2007 first quarter press release. For the period, the income tax benefit was increased by $45,000 resulting in a similar increase in earnings, and retained earnings was reduced by $137,000 as compared to the numbers previously reported on April 26, 2007.
The changes were the result of the first quarter adoption of a recent Financial Accounting Standards Board pronouncement regarding income taxes.
Compared to the same period last year, sales for the first quarter of 2007 increased by 4% to $3,508,000, and earnings increased by 42% to $139,000 or $0.07 per share. IKONICS earnings for the first quarter of 2007 were aided by the tax adjustment and a $55,000 gain on the sale of its interest in Apprise Technology Inc.
This press release contains forward-looking statements regarding sales, earnings, new products and acquisitions 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, complete and integrate 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 Ended March 31, 2007 and 2006
| | | | | | | | | |
| | | Three Months Ended | |
| | | 03/31/07 | | | 03/31/06 | |
| | | | | | | | | |
| Sales | | $ | 3,507,767 | | | $ | 3,371,800 | |
| Costs and expenses | | | 3,511,434 | | | | 3,249,798 | |
| | | | | | | |
| Income (Loss) from Operations | | | (3,667 | ) | | | 122,002 | |
| Gain on sale of investment | | | 55,159 | | | | — | |
| Interest Income | | | 32,907 | | | | 23,788 | |
| | | | | | | |
| Income before income taxes | | $ | 84,399 | | | $ | 145,790 | |
| Federal and state income tax (expense) benefit | | | 54,698 | | | | (47,488 | ) |
| | | | | | | |
| Net income | | | 139,097 | | | | 98,302 | |
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| Earnings per common share-diluted | | $ | 0.07 | | | $ | 0.05 | |
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| Average shares outstanding-diluted | | | 2,064,511 | | | | 2,019,238 | |
Condensed Balance Sheets
As of March 31, 2007 and December 31, 2006
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| | | 3/31/07 | | | 12/31/06 | |
| | | (Unaudited) | | | | | |
Assets | | | | | | | | |
| Current assets | | $ | 8,327,872 | | | $ | 8,229,210 | |
| Property, plant and equipment, net | | | 1, 008,418 | | | | 991,920 | |
| Investment in non-marketable equity securities | | | 791,451 | | | | 988,910 | |
| Intangible assets | | | 496,155 | | | | 485,421 | |
| Deferred income taxes | | | 48,000 | | | | 48,000 | |
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| | | $ | 10,671,896 | | | $ | 10,743,461 | |
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Liabilities and Equity | | | | | | | | |
| Current liabilities | | $ | 761,795 | | | $ | 879,362 | |
| Long term debt | | | — | | | | — | |
| Stockholders’ equity | | | 9,910,101 | | | | 9,864,099 | |
| | | | | | | |
| | | $ | 10,671,896 | | | $ | 10,743,461 | |
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Condensed Statements of Cash Flow (Unaudited)
For the Three Months Ending March 31, 2007 and 2006
| | | | | | | | | |
| | | 3/31/07 | | | 3/31/06 | |
| Net cash provided by operating activities | | | 193,372 | | | | 18,363 | |
| Net cash provided by (used in) investing activities | | | 153,120 | | | | (217,178 | ) |
| Net cash provided by financing activities | | | 28,384 | | | | 121,221 | |
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| Net increase (decrease) in cash and cash equivalents | | | 374,876 | | | | (77,594 | ) |
| Cash and cash equivalents at beginning of period | | | 3,428,186 | | | | 3,412,072 | |
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| Cash and cash equivalents at end of period | | $ | 3,803,062 | | | $ | 3,334,478 | |
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