Press Releases
Northern Technologies International Corporation Reports Sales and Earnings for Fiscal 2013
NTIC's consolidated net sales increased 18% to
NTIC's consolidated net sales decreased 1.2% during fiscal 2013 compared to fiscal 2012 to
"During fiscal 2013, despite a dip in our total net sales, we achieved several key objectives in all three of the market segments that NTIC serves. Our competitive position, operations and balance sheet are all stronger today than they were a year ago," said
During fiscal 2013, 90.9% of NTIC's consolidated net sales were derived from sales of ZERUST® products and services, which decreased 2.5% to
During fiscal 2013, 9.1% of NTIC's consolidated net sales were derived from sales of Natur-Tec® products compared to 7.9% during fiscal 2012. Net sales of Natur-Tec® products increased 12.9% during fiscal 2013 compared to fiscal 2012. This increase was due primarily to increased sales to NTIC's Natur-Tec® distributors in the United States.
Cost of goods sold as a percentage of net sales increased to 68.8% during fiscal 2013 compared to 63.8% during fiscal 2012 primarily as a result of higher sales during fiscal 2012 of ZERUST® products for the oil and gas industry which carry higher margins than other ZERUST® products and increased expenses during fiscal 2013 associated with the production and shipping of ZERUST® products to a new customer. The increase in production expenses was temporary and normalized during the fourth quarter of fiscal 2013.
NTIC's equity in income of joint ventures decreased 5.1% to
NTIC's total operating expenses increased 6.0% during fiscal 2013 compared to fiscal 2012 primarily as a result of an increase in selling expenses and expenses incurred in support of joint ventures, and reflected NTIC's overall efforts to support its new business. NTIC incurred
Net income attributable to NTIC decreased 2.4% to
NTIC's working capital was
Outlook
For the fiscal year ending
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About
Forward-Looking Statements
Statements contained in this press release that are not historical information are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. Such statements include NTIC's expectations regarding its financial guidance for fiscal 2014, anticipated research and development expense for fiscal 2014, and the potential of NTIC's technology focused on protecting the bottom plates of oil storage tanksand other statements that can be identified by words such as "believes," "continues," "expects," "anticipates," "intends," "potential," "outlook," "will," "would," "should," "guidance" or words of similar meaning, the use of future dates and any other statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of NTIC's
management and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Such potential risks and uncertainties include, but are not limited to, in no particular order: NTIC's dependence on the success of its joint ventures and fees and dividend distributions that NTIC receives from them; NTIC's relationships with its joint ventures and its ability to maintain those relationships; risks related to the European sovereign debt crisis, economic slowdown and political unrest; risks associated with NTIC's international operations; exposure to fluctuations in foreign currency exchange rates; the health of the U.S. and worldwide economies, including in particular the U.S. automotive industry; the level of growth in NTIC's markets; NTIC's investments in research and development efforts; acceptance of existing and new
products; timing of NTIC's receipt of purchase orders under supply contracts; variability in sales to Petrobras and other customers and the effect on NTIC's quarterly financial results; increased competition; the costs and effects of complying with changes in tax, fiscal, government and other regulatory policies, including rules relating to environmental, health and safety matters; and NTIC's reliance on its intellectual property rights and the absence of infringement of the intellectual property rights of others. More detailed information on these and additional factors which could affect NTIC's operating and financial results is described in the company's filings with the
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AND SUBSIDIARIES | ||
CONSOLIDATED BALANCE SHEETS - |
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ASSETS | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,314,258 | $ 4,137,547 |
Receivables: | ||
Trade excluding joint ventures, less allowance for doubtful accounts of |
3,329,995 | 2,516,961 |
Trade joint ventures | 859,434 | 734,543 |
Fees for services provided to joint ventures | 2,446,017 | 1,316,933 |
Income taxes | 144,939 | 58,129 |
Inventories | 5,111,549 | 4,151,197 |
Prepaid expenses | 258,765 | 548,331 |
Deferred income taxes | 467,548 | 596,085 |
Total current assets | 16,932,505 | 14,059,726 |
PROPERTY AND EQUIPMENT, net | 5,323,612 | 4,288,618 |
OTHER ASSETS: | ||
Investments in joint ventures | 24,702,981 | 21,461,492 |
Deferred income taxes | 1,034,212 | 1,030,610 |
Patents and trademarks, net | 1,060,639 | 961,181 |
Other | — | 76,000 |
Total other assets | 26,797,832 | 23,529,283 |
Total assets | $ 49,053,949 | $ 41,877,627 |
LIABILITIES AND EQUITY | ||
CURRENT LIABILITIES: | ||
Current portion of note payable | $ 76,119 | $ 76,120 |
Accounts payable | 1,830,729 | 1,818,309 |
Income tax payable | — | — |
Accrued liabilities: | ||
Payroll and related benefits | 1,277,942 | 1,565,866 |
Deferred joint venture royalties | 288,000 | 288,000 |
Other | 189,263 | 251,350 |
Total current liabilities | 3,662,053 | 3,999,645 |
NOTE PAYABLE, NET OF CURRENT PORTION | 857,295 | 933,413 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding | — | — |
Common stock, |
88,641 | 88,073 |
Additional paid-in capital | 11,701,942 | 11,130,966 |
Retained earnings | 28,626,928 | 25,260,034 |
Accumulated other comprehensive income | 316,161 | 277,583 |
Stockholders' equity | 40,733,672 | 36,756,656 |
Non-controlling interests | 3,800,929 | 187,913 |
Total equity | 44,534,601 | 36,944,569 |
Total liabilities and equity | $ 49,053,949 | $ 41,877,627 |
NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED |
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Three Months Ended | Twelve Months Ended | |||
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NET SALES: | ||||
Net sales, excluding joint ventures |
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Net sales, to joint ventures | 659,215 | 521,674 | 2,777,659 | 2,553,934 |
Total net sales | 6,086,734 | 5,170,307 | 22,501,864 | 22,781,653 |
Cost of goods sold | 4,093,963 | 3,695,713 | 15,473,212 | 14,528,785 |
Gross profit | 1,992,771 | 1,474,594 | 7,028,652 | 8,252,868 |
JOINT VENTURE OPERATIONS: | ||||
Equity in income of joint ventures | 1,504,642 | 1,114,468 | 5,237,711 | 5,519,795 |
Fees for services provided to joint ventures | 1,817,875 | 1,145,197 | 7,352,980 | 4,622,912 |
Total joint venture operations | 3,322,517 | 2,259,665 | 12,590,691 | 10,142,707 |
OPERATING EXPENSES: | ||||
Selling expenses | 1,256,829 | 1,192,337 | 4,845,676 | 4,585,901 |
General and administrative expenses | 1,107,586 | 790,841 | 4,605,979 | 4,309,410 |
Expenses incurred in support of joint ventures | 360,922 | 324,924 | 1,387,197 | 1,054,914 |
Research and development expenses | 962,265 | 1,019,045 | 3,815,515 | 3,875,581 |
Total operating expenses | 3,687,602 | 3,327,147 | 14,654,367 | 13,825,806 |
OPERATING INCOME | 1,627,686 | 407,112 | 4,964,976 | 4,569,769 |
INTEREST INCOME | 16,004 | 18,235 | 34,614 | 54,652 |
INTEREST EXPENSE | (12,233) | (9,874) | (52,215) | (29,388) |
OTHER INCOME | 670,126 | 1,138 | 670,126 | 21,613 |
INCOME BEFORE INCOME TAX EXPENSE | 2,294,041 | 416,611 | 5,617,501 | 4,616,646 |
INCOME TAX EXPENSE | 332,000 | 21,000 | 864,000 | 1,041,000 |
NET INCOME | 1,962,041 | 395,611 | 4,753,501 | 3,575,646 |
NET INCOME ATTRIBUTABLE TO NON CONTROLLING INTEREST | 346,291 | (33,598) | 1,386,607 | 127,450 |
NET INCOME ATTRIBUTABLE TO NTIC |
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NET INCOME PER COMMON SHARE: | ||||
Basic |
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Diluted |
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WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: | ||||
Basic | 4,431,948 | 4,403,656 | 4,421,636 | 4,391,424 |
Diluted | 4,501,017 | 4,436,444 | 4,475,895 | 4,451,594 |
CONTACT: Investor and Media Contacts:Source:Matthew Wolsfeld , CFO NTIC (763) 225-6600
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