EXHIBIT 99
(IKONICS CORPORATION LOGO)
4832 Grand Ave. o Duluth, MN 55807 NEWS RELEASE
PH: 218-628-2217 o FAX: 218-628-3245
www.ikonics.com o info@ikonics.com
NEWS CONTACT: Bill Ulland FOR IMMEDIATE RELEASE
Chairman, President & CEO February 15, 2005
(218) 628-2217
IKONICS REPORTS 51% INCREASE IN PROFITS AND RECORD SALES FOR 2004
DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company,
reported today 2004 earnings of $758,000 or $0.38 per share, a 51% increase over
2003. Sales grew by 13% to a record level of $13,682,000.
The earnings growth came despite startup costs associated with two new business
units. These costs were particularly heavy in the fourth quarter and, combined
with a lifo inventory reserve adjustment, resulted in a decline of fourth
quarter earnings from 2003.
Bill Ulland, IKONICS CEO, said "I anticipate continued growth in 2005 and that
the drag on earnings caused by launching new businesses and Sarbanes-Oxley
compliance will be overcome by increased sales from our new and long-established
businesses." Ulland added that the new IKONSign Etch business unit is off to an
encouraging start.
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
CONDENSED STATEMENTS OF OPERATIONS
For the Three Months and Twelve Months Ending December 31, 2004 and 2003
<Table>
<Caption>
THREE MONTHS ENDED TWELVE MONTHS ENDED
12/31/04 12/31/03 12/31/04 12/31/03
------------- ------------- ------------- -------------
Sales $ 3,292,101 $ 3,051,246 $ 13,682,449 $ 12,105,127
Costs and expenses net of interest income 3,130,350 2,829,797 12,651,098 11,398,045
Loss on investment 0 0 0 74,666
------------- ------------- ------------- -------------
Income before income taxes $ 161,751 $ 221,449 $ 1,031,351 $ 632,416
Federal and state income tax expense 43,706 43,032 273,000 129,000
------------- ------------- ------------- -------------
Net income $ 118,045 $ 178,417 $ 758,351 $ 503,416
============= ============= ============= =============
Earnings per common share-diluted $ .06 $ .09 $ .38 $ .27
============= ============= ============= =============
Average shares outstanding-diluted 2,008,226 1,917,824 1,982,814 1,895,106
</Table>
CONDENSED BALANCE SHEETS
As of December 31, 2004 and 2003
<Table>
<Caption>
ASSETS 12/31/04 12/31/03
------------- -------------
Current assets $ 6,906,349 $ 5,597,674
Property, plant and equipment 1,028,830 1,110,159
Investment 197,460 112,834
Intangible assets 292,349 308,017
Deferred taxes 65,000 66,000
------------- -------------
$ 8,489,988 $ 7,194,684
============= =============
LIABILITIES AND EQUITY
Current liabilities $ 1,075,772 $ 826,334
Long term debt 0 0
Stockholders' equity 7,414,216 6,368,350
------------- -------------
$ 8,489,988 $ 7,194,684
============= =============
</Table>
CONDENSED STATEMENTS OF CASH FLOW
For the Twelve Months Ended December 31, 2004 and 2003
<Table>
<Caption>
12/31/04 12/31/03
------------- -------------
Cash flows from operating activities $ 1,261,855 $ 1,400,756
Cash flows used in investing activities $ (255,125) $ (277,069)
Cash flows provided by financing activities $ 222,936 $ 0
------------- -------------
Net increase in cash and cash equivalents $ 1,229,666 $ 1,123,687
Cash and cash equivalents at beginning of period $ 1,507,794 $ 384,107
------------- -------------
Cash and cash equivalents at end of period $ 2,737,460 $ 1,507,794
============= =============
</Table>