Press Releases
Northern Technologies International Corporation Reports Record Sales and Earnings for Second Quarter Fiscal 2014
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Net sales increased over 18% for the six months ended
February 28, 2014 . -
Oil & Gas net sales were up over 111% during the six months ended
February 28, 2014 . -
Joint venture sales increased 7% to
$58.1 million for the six months endedFebruary 28, 2014 . -
Income from joint venture operations was up over 18% for the six months ended
February 28, 2014 . -
Earnings per diluted share increased over 128% to
$0.41 for the six months endedFebruary 28, 2014 . -
Working capital is up to
$17.7 million with$7 million in cash as ofFebruary 28, 2104 .
NTIC's consolidated net sales increased 18.5% and 18.9% during the three and six months ended
During the three and six months ended
"Fiscal 2014 continued to show strong growth through our second quarter. ZERUST® sales again jumped 19% compared to the same period last year while our margins continued to improve as well. Overall, joint venture performance also bolstered both our competitive position and balance sheet," said
During the three and six months ended February 28, 2014, 10.7% and 9.8% of NTIC's consolidated net sales were derived from sales of Natur-Tec® products compared to 10.2% and 9.8% during the three and six months ended
Cost of goods sold as a percentage of net sales decreased to 65.2% during the three months ended February 28, 2014 compared to 69.3% during the three months ended February 28, 2013 and decreased to 65.5% during the six months ended February 28, 2014 compared to 69.5% during the prior fiscal year period. These decreases were primarily as a result of start-up costs associated with a new customer recognized during the prior fiscal year period.
NTIC's equity in income of joint ventures increased 22.6% and 23.1% to
NTIC's total operating expenses increased 11.8%, or
NTIC expenses all costs related to product research and development as incurred. NTIC incurred
Net income attributable to NTIC increased 136.0%, to
NTIC's working capital was
Outlook
NTIC's financial guidance 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 demand for ZERUST® corrosion solutions from the manufacturing sector and oil and gas industry and anticipated demand for Natur-Tec® bio-plastic products, and 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 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
NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES | ||
CONSOLIDATED BALANCE SHEETS AS OF |
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AND |
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ASSETS | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 6,996,127 | $ 4,314,258 |
Receivables: | ||
Trade excluding joint ventures, less allowance for doubtful accounts of |
3,260,411 | 3,329,995 |
Trade joint ventures | 536,532 | 859,434 |
Fees for services provided to joint ventures | 2,816,043 | 2,446,017 |
Income taxes | 356,947 | 144,939 |
Inventories | 5,370,201 | 5,111,549 |
Prepaid expenses | 582,289 | 258,765 |
Deferred income taxes | 467,548 | 467,548 |
Total current assets | 20,386,098 | 16,932,505 |
PROPERTY AND EQUIPMENT, NET | 5,431,316 | 5,323,612 |
OTHER ASSETS: | ||
Investments in joint ventures | 22,653,710 | 24,702,981 |
Deferred income taxes | 1,034,212 | 1,034,212 |
Patents and trademarks, net | 1,138,698 | 1,060,639 |
Other | 177,273 | — |
Total other assets | 25,003,893 | 26,797,832 |
Total assets | $ 50,821,307 | $ 49,053,949 |
LIABILITIES AND EQUITY | ||
CURRENT LIABILITIES: | ||
Current portion of note payable | — | 76,119 |
Accounts payable | 1,261,616 | 1,830,729 |
Accrued liabilities: | ||
Payroll and related benefits | 1,027,069 | 1,277,942 |
Deferred joint venture royalties | 288,000 | 288,000 |
Other | 118,510 | 189,263 |
Total current liabilities | 2,695,195 | 3,662,053 |
NOTE PAYABLE, NET OF CURRENT PORTION | — | 857,295 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding | — | — |
Common stock, |
88,697 | 88,641 |
Additional paid-in capital | 11,967,414 | 11,701,942 |
Retained earnings | 30,510,558 | 28,626,928 |
Accumulated other comprehensive income | 933,423 | 316,161 |
Stockholders' equity | 43,500,092 | 40,733,672 |
Non-controlling interest | 4,626,020 | 3,800,929 |
Total equity | 48,126,112 | 44,534,601 |
Total liabilities and equity | $ 50,821,307 | $ 49,053,949 |
NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||
FOR THE THREE AND SIX MONTHS ENDED |
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Three Months Ended | Six Months Ended | |||
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NET SALES: | ||||
Net sales, excluding joint ventures |
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Net sales, to joint ventures | 691,642 | 761,147 | 1,395,724 | 1,282,507 |
Total net sales | 6,219,008 | 5,246,350 | 12,528,108 | 10,538,097 |
Cost of goods sold | 4,051,833 | 3,633,913 | 8,209,864 | 7,324,885 |
Gross profit | 2,167,175 | 1,612,437 | 4,318,244 | 3,213,212 |
JOINT VENTURE OPERATIONS: | ||||
Equity in income of joint ventures | 1,395,451 | 1,138,438 | 2,823,199 | 2,292,734 |
Fees for services provided to joint ventures | 2,057,671 | 1,770,881 | 4,167,319 | 3,617,158 |
Total joint venture operations | 3,453,122 | 2,909,319 | 6,990,518 | 5,909,892 |
OPERATING EXPENSES: | ||||
Selling expenses | 1,291,316 | 1,174,065 | 2,610,202 | 2,345,160 |
General and administrative expenses | 1,209,933 | 1,143,987 | 2,597,429 | 2,392,683 |
Expenses incurred in support of joint ventures | 366,469 | 321,456 | 695,733 | 691,143 |
Research and development expenses | 1,099,345 | 912,393 | 2,237,865 | 1,850,599 |
Total operating expenses | 3,967,063 | 3,551,901 | 8,141,229 | 7,279,585 |
OPERATING INCOME | 1,653,234 | 969,855 | 3,167,533 | 1,843,519 |
INTEREST INCOME | 2,570 | 22,288 | 4,359 | 47,634 |
INTEREST EXPENSE | (11,976) | (6,988) | (25,646) | (13,462) |
INCOME BEFORE INCOME TAX EXPENSE | 1,643,828 | 985,155 | 3,146,246 | 1,877,691 |
INCOME TAX EXPENSE | 259,759 | 240,000 | 457,759 | 374,000 |
NET INCOME | 1,384,069 | 745,155 | 2,688,487 | 1,503,691 |
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 359,025 | 310,745 | 804,857 | 679,659 |
NET INCOME ATTRIBUTABLE TO NTIC |
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NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE: | ||||
Basic |
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Diluted |
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WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: | ||||
Basic | 4,434,837 | 4,418,821 | 4,434,770 | 4,409,954 |
Diluted | 4,579,603 | 4,485,076 | 4,566,103 | 4,460,197 |
CONTACT: Investor and Media Contacts:Source:Matthew Wolsfeld , CFO (763) 225-6600
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