EXHIBIT 99
IKONICS CORPORTION LOGO
4832, Grand Ave - Duluth, MN 55807
PH: 218-628-2217 - Fax: 218-628-3245
www.ikonics.com - info@ikonics.com
NEWS RELEASE
NEWS CONTACT: Bill Ulland FOR IMMEDIATE RELEASE
Chairman, President & CEO February 15, 2007
(218) 628-2217
IKONICS ANNOUNCES 24% INCREASE IN EARNINGS
ON RECORD 2006 SALES.
DULUTH, MN - IKONICS Corporation, a Duluth based imaging technology company,
announced today record sales and earnings for the year 2006. Sales increased by
7% over 2005 to $14,889,000 and earnings by 24% to $1,124,000, or $0.55 per
diluted common share. For the fourth quarter sales increased by 9% over the same
quarter of 2005 to $3,744,000 and earnings by 22% to a record $393,000, or $0.19
per diluted share.
Bill Ulland, Ikonics CEO, said, "I am pleased with our performance in 2006 both
in our financial results but also with the foundation we have laid for future
growth."
"The acquisition of the image mate line of screen print products in late
December 2006 will contribute to future growth for our Chromaline Screen Print
Products and Export divisions; IKONMetal is gaining market acceptance,
particularly in the signage industry; we are making good progress on the
industrial applications of our abrasive etching technology; and we continue to
be encouraged by our investment in digital imaging technology," said Ulland.
This press release contains forward-looking statements regarding sales,
expenses, 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, 2006 and 2005
THREE MONTHS ENDED TWELVE MONTHS ENDED
----------------------- -------------------------
12/31/06 12/31/05 12/31/06 12/31/05
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Net Sales $3,743,608 $3,438,442 $14,888,912 $13,971,217
Costs and expenses net of interest income 3,212,318 3,012,583 13,299,147 12,715,048
---------- ---------- ----------- -----------
Income before income taxes 531,290 425,859 1,589,765 1,256,169
Federal and state income taxes 138,249 104,071 466,000 348,000
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Net income $ 393,041 $ 321,788 $ 1,123,765 $ 908,169
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Earnings per common share-diluted $ 0.19 $ 0.16 $ 0.55 $ 0.46
========== ========== =========== ===========
Average shares outstanding-diluted 2,038,499 2,001,988 2,027,916 1,986,885
CONDENSED BALANCE SHEETS
As of December 31, 2006 and 2005
12/31/06 12/31/05
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ASSETS
Current assets $ 8,229,210 $7,728,358
Property, plant and equipment, net 991,920 951,565
Investment in non-marketable
equity securities 988,910 450,790
Intangible assets 485,421 279,086
Deferred taxes 48,000 61,000
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$10,743,461 $9,470,799
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 879,362 $ 992,294
Long term debt -- --
Stockholders' equity 9,864,099 8,478,505
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$10,743,461 $9,470,799
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CONDENSED STATEMENTS OF CASH FLOW
For the Years Ended December 31, 2006 and 2005
12/31/06 12/31/05
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Net cash flows provided by operating activities $ 1,075,722 $ 980,047
Net cash flows used in investing activities (1,282,655) (422,562)
Net cash flows provided by financing activities 223,047 117,127
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Net increase in cash and cash equivalents 16,114 674,612
Cash and cash equivalents at beginning of year 3,412,072 2,737,460
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Cash and cash equivalents at end of year $ 3,428,186 $ 3,412,072
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