Northern Technologies International Corporation Reports Third Quarter Fiscal 2011 Financial Results
Year to Date Net Sales Increase 58% and Net Income Increases 66%
Fiscal Year 2011 Net Sales and Earnings Guidance Increased
Net income attributable to NTIC increased 65.6%, to
$2,872,369, or $0.66per diluted common share, for the nine months ended May 31, 2011compared to $1,734,314, or $0.41per diluted common share, for the nine months ended May 31, 2010.
Net income attributable to NTIC increased 7.5%, to
$1,023,549, or $0.23per diluted common share, for the three months ended May 31, 2011compared to $951,968, or $0.22per diluted common share, for the three months ended May 31, 2010.
NTIC's consolidated net sales increased 57.6% and 58.4% to
$5,100,778and $13,977,337, during the three and nine months ended May 31, 2011, respectively, compared to the three and nine months ended May 31, 2010, primarily as a result of increased sales of ZERUST® rust and corrosion inhibiting packaging products and services and sales to NTIC's joint ventures and the consolidation of Zerust Brazil on NTIC's consolidated financial statements.
NTIC's consolidated net sales during the three and nine months ended
May 31, 2011included $831,290and $2,382,913, respectively, of sales made by Zerust Brazil, and of those sales, $114,545and $741,567, respectively, in sales were made to the oil and gas industry sector in Brazil. NTIC has consolidated the financial results of Zerust Brazil in NTIC's consolidated financial statements since the fourth quarter of fiscal 2010 and expects to continue to do so going forward.
Sales by NTIC's joint ventures increased 39.3% to
$86,744,626in the nine months ended May 31, 2011compared to $62,294,519in the nine months ended May 31, 2010.
During fiscal 2011, NTIC's Brazilian subsidiary signed a Phase 2 expanded contract with Petrobras to supply an additional
$2.6 million(BRL$ 4.21 million) in ZERUST® FlangeSaver™ products to help protect several more of Petrobras' off-shore oil production rigs from corrosion damage. It is anticipated that the majority of this contract will be fulfilled during fiscal 2012.
During third quarter of fiscal 2011, NTIC signed a memorandum of understanding with the Indian conglomerate ITC Limited to jointly develop and commercialize biopolymer-paper products targeted at the consumer goods packaging market in
India. The two companies will jointly develop solutions in the Indian market towards providing biodegradable/compostable products such as food service ware, food packaging, personal care product packaging and other fast-moving consumer goods packaging.
During the three and nine months ended
"Over the past six months, the world has seen a broad range of political unrest as well as natural disasters. Nevertheless, the economic recovery in our core industrial target market sectors has been robust and our global sales have remained strong and growing," said
During the three and nine months ended
NTIC participates in 26 active joint venture arrangements in
NTIC's total operating expenses increased 32.9% during the nine months ended
NTIC expenses all costs related to product research and development as incurred. NTIC incurred
Net income attributable to NTIC increased 7.5% to
NTIC's working capital was
NTIC has increased its annual net sales and net income guidance and now expects for the fiscal year ending
NTIC will host a webcast this morning beginning at
Dial in number for the conference call is (877) 670-9779 and the confirmation code is 79573244.
The live audio webcast will be available to interested parties at http://ir.ntic.com/events.cfm, where it will be archived and accessible for approximately one year.
|NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)|
|FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2011 AND 2010|
|Three Months Ended||Nine Months Ended|
|May 31, 2011||May 31, 2010||May 31, 2011||May 31, 2010|
|Net sales, excluding joint ventures||$4,367,589||$2,559,467||$11,906,999||$7,164,784|
|Net sales, to joint ventures||733,189||677,731||2,070,338||1,660,294|
|Total net sales||5,100,778||3,237,198||13,977,337||8,825,078|
|Cost of goods sold||3,458,851||2,172,902||9,155,788||5,771,045|
|JOINT VENTURE OPERATIONS:|
|Equity in income of joint ventures||1,724,477||1,511,534||4,549,267||2,909,120|
|Fees for services provided to joint ventures||1,623,585||1,140,295||4,477,514||3,441,563|
|Total joint venture operations||3,348,062||2,651,829||9,026,781||6,350,683|
|General and administrative expenses||1,126,823||869,183||3,300,626||2,628,447|
|Expenses incurred in support of joint ventures||244,959||208,444||722,955||682,828|
|Research and development expenses||1,207,889||960,780||3,308,515||2,526,478|
|Total operating expenses||3,747,301||2,857,979||10,420,333||7,841,847|
INCOME BEFORE INCOME TAX EXPENSE
|INCOME TAX EXPENSE (BENEFIT)||228,000||(110,000)||490,000||(219,000)|
NET INCOME ATTRIBUTABLE TO NON
|NET INCOME ATTRIBUTABLE TO NTIC||$1,023,549||$951,668||$2,872,369||$1,734,314|
NET INCOME ATTRIBUTABLE TO NTIC PER
|WEIGHTED AVERAGE COMMON SHARES|
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 future financial performance and other statements that can be identified by words such as "expect," "intend," "continue," "anticipate," "estimate," "potential," "will," "would," "should" or words of similar meaning 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 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; 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
CONTACT: Investor and Media Contacts:
Matthew Wolsfeld, CFO NTIC (763) 225-6600
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