EXHIBIT 99
[IKONICS CORPORATION LOGO]
NEWS RELEASE
IKONICS REPORTS 40% INCREASE IN PROFITS FOR 2003
DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company,
reported 2003 earnings of $503,000, or $0.40 per share, a 40% increase over
2002. Sales grew by 3% to a record level of $12,105,000.
Bill Ulland, IKONICS CEO, said that sales grew in spite of the abandonment of an
unprofitable line of business and that the earnings increase is after a write
down of $75,000 on an investment.
The company generated $1,401,000 in cash from operations in 2003, as compared to
$249,000 in 2002 and ended the year with $1,508,000 in cash and cash
equivalents. IKONICS has 1,263,404 shares outstanding on a diluted basis.
"Although the timing of payments and investments in plant and equipment affects
cash flow," said Ulland, "I believe these numbers reflect a financially very
healthy company, as does our balance sheet."
The company recently announced a patent application for etchable metals and
introduced a new film for laser imaging.
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 Months and Twelve Months Ended December 31, 2003 and 2002
THREE MONTHS ENDED TWELVE MONTHS ENDED
12/31/03 12/31/02 12/31/03 12/31/02
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Sales $ 3,051,246 $ 2,879,853 $12,105,127 $11,797,279
Costs, expenses, and other income 2,829,797 2,782,666 11,398,045 11,336,462
Loss on investment 74,666
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Income before income taxes $ 221,449 $ 97,187 $ 632,416 $ 460,817
Federal and state income tax
expense (benefit) 43,032 (22,528) 129,000 101,000
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Net income $ 178,417 $ 119,715 $ 503,416 $ 359,817
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Earnings per common share-diluted $ .14 $ .10 $ .40 $ .29
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Average shares outstanding-diluted 1,278,549 1,252,809 1,263,404 1,252,809
BALANCE SHEETS
AS OF DECEMBER 31, 2003 AND DECEMBER 31, 2002
ASSETS 12/31/03 12/31/02
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Current assets $5,597,674 $4,630,281
Property, plant and equipment 1,110,159 1,204,627
Investment 112,834 187,500
Intangible assets 308,017 271,751
Deferred taxes 66,000 118,000
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$7,194,684 $6,412,159
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LIABILITIES AND EQUITY
Current liabilities $ 826,334 $ 545,496
Long term debt 0 0
Stockholders' equity 6,368,350 5,866,663
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$7,194,684 $6,412,159
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STATEMENTS OF CASH FLOW
For the Twelve Months Ended December 31, 2003 and 2002
12/31/03 12/31/02
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Cash flows from operating activities $ 1,400,756 $ 249,117
Cash flows used in investing activities $ (277,069) $ (336,200)
Cash flows used in financing activities $ $ (72,489)
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Net (decrease) increase in cash and cash equivalents $ 1,123,687 $ (159,572)
Cash and cash equivalents at beginning of period $ 384,107 $ 543,679
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Cash and cash equivalents at end of period $ 1,507,794 $ 384,107
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