EXHIBIT 99
[IKONICS CORPORATION LOGO]
NEWS CONTACT: Bill Ulland FOR IMMEDIATE RELEASE
Chairman, President & CEO October 31, 2005
(218) 628-2217
IKONICS REPORTS 40% INCREASE IN PROFITS ON RECORD THIRD QUARTER SALES
DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company,
reported record third quarter sales of $3,462,000, a 4% increase over the third
quarter of 2004. Earnings for the third quarter of 2005 increased by 40% over
the same period in 2004 to $287,000, or $0.14 per diluted share.
Bill Ulland, IKONICS CEO, said that the strong earnings reflect higher margins
related to an improved product mix and reduced expenses. He added, "I am pleased
with these bottom line results in an environment of increasing raw material
costs, and I am optimistic for the rest of the year."
IKONICS recently introduced a new patent applied for photoresist film called
UltraVinyl targeted at the monument and architectural markets. According to
Ulland, UltraVinyl opens up new market opportunities for the company and market
tests here and in Europe have been very encouraging.
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, 2005 and 2004
THREE MONTHS ENDED NINE MONTHS ENDED
9/30/05 9/30/04 9/30/05 9/30/04
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Net sales $ 3,462,253 $ 3,324,135 $ 10,532,775 $ 10,390,348
Costs and expenses net of interest income 3,045,639 3,045,228 9,702,465 9,520,748
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Income before income taxes 416,614 278,907 830,310 869,600
Income tax expense 129,150 73,672 243,929 229,294
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Net income $ 287,464 $ 205,235 $ 586,381 $ 640,306
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Earnings per common share-diluted $ .14 $ .10 $ .30 $ .32
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Average shares outstanding-diluted 1,986,033 2,014,707 1,980,151 2,008,202
CONDENSED BALANCE SHEETS
As of September 30, 2005 and December 31, 2004
ASSETS 9/30/05 12/31/04
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(UNAUDITED)
Current assets $7,373,868 $ 6,906,349
Property, plant and equipment, net 899,502 1,028,830
Intangible assets 304,034 292,349
Deferred income taxes 65,000 65,000
Investment in non-marketable
equity securities 450,790 197,460
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$9,093,194 $ 8,489,988
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $1,008,707 $ 1,075,772
Long term debt 0 0
Stockholders' equity 8,084,487 7,414,216
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$9,093,194 $ 8,489,988
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CONDENSED STATEMENTS OF CASH FLOW (UNAUDITED)
For Nine Months Ended September 30, 2005 and 2004
9/30/05 9/30/04
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Cash flows provided by operating activities $ 606,004 $ 1,079,265
Cash flows used in investing activities (334,476) (152,410)
Cash flows provided by financing activities 55,094 182,372
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Net increase in cash and cash equivalents 326,622 1,109,227
Cash and cash equivalents at beginning of period 2,737,460 1,507,794
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Cash and cash equivalents at end of period $ 3,064,082 $ 2,617,021
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