IKONICS Reports Third Quarter Earnings

IKONICS Reports Third Quarter Earnings

DULUTH, Minn., Nov. 8, 2013 (GLOBE NEWSWIRE) -- IKONICS Corporation
(Nasdaq:IKNX), a Duluth-based technology company, reported third quarter net
earnings of $116,000, or $0.06 per diluted share, a 49% decrease compared to
the third quarter of 2012. Sales for the third quarter of 2013 were
$4,217,000, or flat when compared to last year's third quarter.

Bill Ulland, IKONICS CEO, said, "Increased expenses related to the ramping up
of our Micro-Machining business and the end of a long-term sound deadening
mask agreement depressed both sales and net income for the quarter.
Year-to-date we have invested over $400,000 in highly productive machining
equipment for Micro-Machining and have added two technical hires."

"For the quarter, our traditional Domestic and Export businesses showed good
growth in sales and profits, and we remain in a strong financial condition
with $3 million in cash and short-term investments and no long-term debt,"
Ulland said.

The company recently acquired an exclusive license for specified markets for
patented Direct To Metal (DTM) inkjet printing technology from Hueck Engraving
Gmbh of Germany. Commenting on the new license, Ulland said, "We view this as
an opportunity to expand our Digital Texturing (DTX) business into new
markets."

This press release contains forward-looking statements regarding sales, gross
profits, net earnings, balance sheet position, industry trends and new
products, technologies and businesses initiatives that involve risks and
uncertainties. The Company's actual results could differ materially as a
result of downturns in the aerospace industry, unexpected production delays by
the Company's customers, lack of acceptance of new products and technologies,
introduction of new products or technologies by competitors, the effects of
federal budget sequestration, domestic and global economic conditions,
inherent risk and uncertainty in the protection of intellectual property
rights, the ability to control operating costs without impacting growth as
well as the factors described in the Company's Forms 10-K, and 10-Q, and other
reports on file with the SEC.

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IKONICS Corporation
CONDENSED STATEMENTS OF INCOME (unaudited)
For the Three Months and Nine Months Ended September 30, 2013 and 2012
                                                               
                                Three Months Ended    Nine Months Ended
                                9/30/13    9/30/12    9/30/13     9/30/12
Net sales                        $4,217,125 $4,231,235 $12,894,142 $12,787,939
                                                               
Cost of goods sold               2,575,557  2,478,358  7,904,357   7,726,216
                                                               
Gross profit                     1,641,568  1,752,877  4,989,785   5,061,723
                                                               
Operating expenses               1,480,063  1,414,472  4,600,592   4,455,019
                                                               
Income from operations           161,505    338,405    389,193     606,704
                                                               
Interest income                  1,372      2,572      5,331       9,377
                                                               
Income before income taxes       162,877    340,977    394,524     616,081
                                                               
Income tax expense               46,715     112,865    73,000      207,292
                                                               
Net income                       $116,162   $228,112   $321,524    $408,789
                                                               
Earnings per common              $0.06      $0.11      $0.16       $0.21
share-diluted
                                                               
Average shares                   2,015,125  1,993,429  2,010,334   1,990,485
outstanding-diluted

                                               
Condensed Balance Sheets
As of September 30, 2013 and December 31, 2012
                                               
                                    9/30/13     12/31/12
                                    (unaudited) 
Assets                                          
Current assets                       $7,779,227  $7,417,041
Property, plant and equipment, net   5,610,088   5,461,878
Intangible assets, net               335,046     305,357
                                    $13,724,361 $13,184,276
Liabilities and Stockholders' Equity            
Current liabilities                  $1,090,702  $1,023,531
Deferred income taxes                431,000     366,000
Long term debt                       --          --
Stockholders' equity                 12,202,659  11,794,745
                                    $13,724,361 $13,184,276

                                                           
CONDENSED STATEMENTS OF CASH FLOWS (unaudited)
For the Nine Months Ended September 30, 2013 and 2012
                                                           
                                                9/30/13     9/30/12
Net cash provided by operating activities        $1,150,610  $566,939
                                                           
Net cash used in investing activities            (1,002,547) (214,892)
                                                           
Net cash provided by financing activities        63,492      30,123
                                                           
Net increase in cash and cash equivalents        211,555     382,170
                                                           
Cash and cash equivalents at beginning of period 967,943     1,867,165
                                                           
Cash and cash equivalents at end of period       $1,179,498  $2,249,335

CONTACT: News Contact:
         Bill Ulland
         Chairman, President & CEO
         (218) 628-2217

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