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

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