IKONICS Reports 2013 Results and 2014 First Quarter Activity

IKONICS Reports 2013 Results and 2014 First Quarter Activity  DULUTH, Minn., Feb. 20, 2014 (GLOBE NEWSWIRE) -- IKONICS Corporation (Nasdaq:IKNX), a Duluth-based imaging technology company, announced today 2013 sales of $17,491,000, a 1% increase over 2012 sales, while earnings fell by 2% to $682,000, or $0.34 per diluted share, compared to 2012. Fourth quarter earnings of $.0.18 per diluted share accounted for over half of 2013 earnings.  The Company also announced that in January 2014 it received the largest single order in the history of the Company as a stocking order for IKONICS Imaging products. Bill Ulland,IKONICS CEO, said, "I anticipate this order, which will be shipped in the first quarter of 2014, will result in record first quarter sales and earnings and will help solidify our leadership position in this profitable business segment."  Ulland added, "We are also seeing a ramp up of our Micro Machining aerospace business, and we plan to increase our capacity in the second quarter in anticipation of this business." Ulland cautioned, "This business is being driven by a new technology used by our customers, and its growth will be determined by industry acceptance of this technology. However, we believe that we are supplying the cutting edge of the aerospace industry and that growth is likely to be substantial as the technology is adopted. To manage Micro Machining, we have hired John Palmer, who has strong industry experience including working for IBM Global Engineering Solutions, Northrop Grumman, and Space Systems Loral. He will be responsible for meeting our current customer demand and bringing new business to IKONICS."  Continuing, Ulland reported, "Our DTX business has been slow to develop due to technical issues, but we are now seeing a demand for applications using a version of our technology for 3D texture printing and prototyping.Our technology offers higher precision and larger format prints that are not available with most other entries into this market."  This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, new products and new business initiatives that involve risks and uncertainties. The Company's actual results could differ materially as a result of domestic and global economic conditions, downturns in the aerospace industry, unexpected production delays by customers using the Company's products, competitive market conditions, changes in consumer preferences, inability to commercialize technologies the Company is developing on the anticipated timeline or at all, acceptance of new products the Company offers, introduction of new products or technologies by competitors, unexpected capital expenditure requirements, 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.  IKONICS Corporation CONDENSED STATEMENTS OF INCOME For the Three Months and Twelve Months Ended December 31, 2013 and 2012                                                                                                 Three Months Ended   Twelve Months Ended                                 12/31/13  12/31/12  12/31/13   12/31/12 Net sales                        $4,597,266 $4,524,468 $17,491,408 $17,312,407                                                                 Cost of goods sold               2,649,196  2,641,347  10,553,553  10,367,563                                                                 Gross profit                     1,948,070  1,883,121  6,937,855   6,944,844                                                                 Operating expenses               1,417,133  1,456,944  6,017,725   5,911,963                                                                 Income from operations           530,937    426,177    920,130     1,032,881                                                                 Interest income                  1,712      2,673      7,043       12,050                                                                 Income before income taxes       532,649    428,850    927,173     1,044,931                                                                 Income tax expense               172,000    143,708    245,000     351,000                                                                 Net income                       $ 360,649  $ 285,142  $ 682,173   $ 693,931                                                                 Earnings per common              $ 0.18     $ 0.14     $ 0.34      $ 0.35 share-diluted                                                                 Average shares                   2,014,691  1,994,802  2,010,659   1,990,847 outstanding-diluted   CONDENSED BALANCE SHEETS As of December 31, 2013 and 2012                                                                                                                      12/31/13   12/31/12                                                                  Assets                                                            Current assets                                       $ 8,045,060 $ 7,417,041 Property, plant and equipment, net                   5,634,096    5,461,878 Intangible assets                                    322,647      305,357                                                     $14,001,803  $13,184,276 Liabilities and Stockholders' Equity                              Current liabilities                                 $ 874,985    $ 1,023,531 Deferred income taxes                                527,000      366,000 Long term debt                                       --         -- Stockholders' equity                                 12,599,818   11,794,745                                                     $14,001,803  $13,184,276                                                                  CONDENSED STATEMENTS OF CASH FLOWS For the Twelve Months Ended December 31, 2013 and 2012                                                                                                                      12/31/13    12/31/12 Net cash provided by operating activities            $ 1,466,532  $ 1,181,950                                                                  Net cash used in investing activities                (819,573)    (171,725)                                                                  Net cash provided by (used in) financing activities  89,398       (1,909,447) Net increase (decrease) in cash and cash equivalents 736,357      (899,222)                                                                  Cash and cash equivalents at beginning of period     967,943      1,867,165                                                                  Cash and cash equivalents at end of period           $ 1,704,300  $ 967,943  CONTACT: News Contact: Bill Ulland          Chairman, President & CEO          (218) 628-2217  IKONICS Corporation Logo