EXHIBIT 99
[IKONICS CORPORATION LOGO]
NEWS RELEASE
NEWS CONTACT: Bill Ulland FOR IMMEDIATE RELEASE
Chairman, President & CEO October 22, 2004
(218) 628-2217
IKONICS POSTS 48% INCREASE IN PROFITS ON RECORD 3RD QUARTER SALES
DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company,
announced third quarter earnings of $205,000, or $0.10 per share, a 48% increase
over the comparable quarter of 2003. Sales increased by 9% to $3,324,000, a
third quarter record for the company. The company ended the quarter with a cash
and cash equivalents balance of $2,600,000.
Year to date sales have increased by 15% over 2003 and profits are up by 97% to
$640,000 or $0.32 per share for the nine month period.
During the quarter, the company launched SignEtch, a new business unit that is
bringing a unique signage system to the market. Bill Ulland, IKONICS' CEO, said
that he is very encouraged by the initial market reception to SignEtch. "I am
pleased that profits grew significantly during the quarter despite the start up
costs associated with the launch," said Ulland.
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 and Nine Month Periods Ended September 30, 2004 and 2003
THREE MONTHS ENDED NINE MONTHS ENDED
9/30/04 9/30/03 9/30/04 9/30/03
------- ------- ------- -------
Sales $ 3,324,135 $ 3,061,503 $10,390,348 $ 9,053,881
Costs and expenses, net of interest income 3,045,228 2,871,804 9,520,748 8,568,248
Loss on Investment 0 0 0 (74,666)
----------- ----------- ----------- -----------
Income before income taxes $ 278,907 $ 189,699 $ 869,600 $ 410,967
Federal and state income tax expense 73,672 50,858 229,294 85,968
----------- ----------- ----------- -----------
Net income $ 205,235 $ 138,841 $ 640,306 $ 324,999
=========== =========== =========== ===========
Earnings per common share-diluted $ .10 $ .07 $ .32 $ .17
=========== =========== =========== ===========
Average shares outstanding-diluted 2,014,707 1,900,446 2,008,202 1,888,131
BALANCE SHEETS
As of September 30, 2004 and December 31, 2003
ASSETS 9/30/04 12/31/03
------- --------
Current assets $6,784,203 $5,597,674
Property, plant & equipment 1,075,284 1,110,159
Investment 112,834 112,834
Other intangible 291,028 308,017
Deferred taxes 66,000 66,000
---------- ----------
$8,329,349 $7,194,684
========== ==========
LIABILITIES AND EQUITY
Current liabilities $1,131,276 $ 826,334
Long term debt 0 0
Stockholders' equity 7,198,073 6,368,350
---------- ----------
$8,329,349 $7,194,684
========== ==========
2
STATEMENTS OF CASH FLOW
For the Nine Months Ended September 30, 2004 and 2003
9/30/04 9/30/03
------- -------
Cash flows from operating activities $ 1,079,265 $ 1,061,979
Cash flows used in investing activities $ (152,410) $ (195,779)
Cash flows provided by financing activities $ 182,372 $ 0
----------- ------------
Net increase in cash and cash equivalents $ 1,109,227 $ 866,200
Cash and cash equivalents at beginning of period $ 1,507,794 $ 384,107
----------- -----------
Cash and cash equivalents at end of period $ 2,617,021 $ 1,250,307
=========== ===========
3