EXHIBIT 99
IKONICS
CORPORATION
4832 Grand Ave. - Duluth, MN 55807 NEWS RELEASE
PH: 218-628-2217 - FAX: 218-628-3245
www.ikonics.com - info@ikonics.com
NEWS CONTACT: Bill Ulland FOR IMMEDIATE RELEASE
Chairman, President & CEO February 16, 2006
(218) 628-2217
IKONICS POSTS 20% INCREASE IN EARNINGS ON RECORD 2005 SALES
DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company,
announced today record sales and earnings for 2005. Sales were $13,971,000, a 2%
increase over 2004. Earnings increased 20% to $908,000, or $0.46 per diluted
share.
Said Bill Ulland, IKONICS CEO, "I am pleased to report that we recovered from a
weak first quarter to post record sales and earnings for 2005. Earnings improved
due to increased sales and reduced expenses. Sales failed to meet expectations,
in part because of delays in bringing our IKONMetal(TM) product to market. This
unique, etchable metal matrix composite has now been reengineered to increase
performance and reduce cost."
"The new metal was introduced successfully at a recent trade show for
FastSign(R) franchisees and resulted in IKONSign Etch being given vendor status
to the 466 worldwide FastSign franchises," said Ulland.
"Also in 2005, we entered into a joint development project with inkjet
technology company iTi to create a unique inkjet system. We have filed a patent
application on the technology," Ulland said. "We believe this project has very
significant sales and profit potential; but success is far from assured and any
revenue is unlikely before 2007. We continue to investigate new markets for our
imaging technologies and anticipate sales from these efforts in 2006."
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
For the Three Months and Twelve Months Ended December 31, 2005 and 2004
THREE MONTHS ENDED TWELVE MONTHS ENDED
----------------------- -------------------------
12/31/05 12/31/04 12/31/05 12/31/04
---------- ---------- ----------- -----------
Net sales $3,438,442 $3,292,101 $13,971,217 $13,682,449
Costs and expenses net of interest income 3,012,583 3,130,350 12,715,048 12,651,098
---------- ---------- ----------- -----------
Income before income taxes 425,859 161,751 1,256,169 1,031,351
Federal and State income taxes 104,071 43,706 348,000 273,000
---------- ---------- ----------- -----------
Net income $ 321,788 $ 118,045 $ 908,169 $ 758,351
========== ========== =========== ===========
Earnings per common share-diluted $ .16 $ .06 $ .46 $ .38
========== ========== =========== ===========
Average shares outstanding-diluted 2,001,988 2,008,226 1,986,885 1,982,814
CONDENSED BALANCE SHEETS
As of December 31, 2005 and December 31, 2004
12/31/05 12/31/04
---------- ----------
ASSETS
Current assets $7,728,358 $6,906,349
Property, plant and equipment, net 951,565 1,028,830
Intangible assets 279,086 292,349
Deferred income taxes 61,000 65,000
Investment in non-marketable
equity securities 450,790 197,460
---------- ----------
$9,470,799 $8,489,988
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 992,294 $1,075,772
Long term debt 0 0
Stockholders' equity 8,478,505 7,414,216
---------- ----------
$9,470,799 $8,489,988
========== ==========
CONDENSED STATEMENTS OF CASH FLOW
For Twelve Months Ended December 31, 2005 and 2004
12/31/05 12/31/04
---------- ----------
Cash flows provided by operating activities $ 980,047 $1,261,855
Cash flows used in investing activities (422,562) (255,125)
Cash flows provided by financing activities 117,127 222,936
---------- ----------
Net increase in cash and cash equivalents 674,612 1,229,666
Cash and cash equivalents at beginning of year 2,737,460 1,507,794
---------- ----------
Cash and cash equivalents at end of year $3,412,072 $2,737,460
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