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Northern Technologies International Q1 Earnings Call Highlights
Yahoo Finance· 2026-01-08 15:39
NTIC’s wholly owned China subsidiary also posted strong gains. Lynch said fiscal first-quarter net sales at NTIC China increased 23.5% year over year to $4.9 million, reflecting what he described as “strong demand” in the geography. He added that because most of NTIC China’s sales are for domestic Chinese consumption, management believes exposure to U.S. tariffs is limited.Lynch highlighted Zerust Oil & Gas as a key driver, noting it achieved record first-quarter sales and marked the second consecutive quar ...
Northern Technologies International (NTIC) - 2026 Q1 - Earnings Call Transcript
2026-01-08 15:02
Financial Data and Key Metrics Changes - For the first quarter of fiscal 2026, total consolidated net sales increased by 9.2% to a record $23.3 million compared to the same period last year [5] - Gross profit as a percentage of net sales was 36% for the first quarter, down from 38.3% in the prior fiscal year, primarily due to a temporary supplier lead time issue [12] - Net income for the first quarter was $238,000 or $0.03 per diluted share, compared to $561,000 or $0.06 per diluted share in the first quarter of fiscal 2025 [12] Business Line Data and Key Metrics Changes - Zerust Oil & Gas net sales increased by 58.1% to $2.4 million, marking a record for the first quarter [7] - Zerust Industrial net sales increased by 6.9% [5] - Natur-Tec product net sales increased by 2.2% to a record $6 million, driven primarily by higher sales in North America [9] Market Data and Key Metrics Changes - NTIC China reported a 23.5% year-over-year increase in net sales to $4.9 million, indicating strong demand in that market [6] - Joint venture sales increased by 2.9% year-over-year to $24.5 million, despite a mid-single-digit decline at the German joint venture [5] Company Strategy and Development Direction - The company is focused on improving profitability by flattening operating expenses and driving sales in higher-margin segments [4] - NTIC plans to enhance operations in China, viewing it as a significant market for industrial and bioplastic segments [6] - The company is investing in its Zerust Oil & Gas business to enhance its sales team and support anticipated future growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the start of fiscal 2026, expecting higher year-over-year sales and profitability as the year progresses [4] - The company anticipates that economic recovery from government stimulus packages in Europe will positively impact joint venture operating income [6] - Management believes that the investments made over the past three years will begin to yield benefits in terms of improved profitability [4] Other Important Information - As of November 30, 2025, working capital was $19.4 million, with outstanding debt slightly reduced to $12 million [13] - The company declared a quarterly cash dividend of $0.01 per common share, payable on November 12, 2025 [14] Q&A Session Summary Question: What are some levers to improve profitability? - Management indicated that driving sales growth is key to increasing gross margin and operating profit, with expectations for significant growth in the latter half of the fiscal year [16][17] Question: Are there opportunities for cost-cutting? - Management noted that while there are some opportunities, the focus is on allowing revenues to catch up to previous expense increases rather than cutting expenses that could hinder long-term growth [19][20] Question: Are you pleased with the sales team's performance in oil and gas? - Management confirmed that the sales team is starting to secure business, particularly with a significant contract in Brazil and growing opportunities in India and the Middle East [21] Question: Are there other major opportunities in oil and gas? - Management acknowledged the ongoing discussions with other oil companies globally, expecting business growth across various regions [26]
Northern Technologies International (NTIC) - 2026 Q1 - Earnings Call Transcript
2026-01-08 15:00
Financial Data and Key Metrics Changes - For the first quarter of fiscal 2026, total consolidated net sales increased by 9.2% to a record $23.3 million compared to the same period last year [5] - Net income for the first quarter was $238,000 or $0.03 per diluted share, down from $561,000 or $0.06 per diluted share in the prior year [12] - Non-GAAP adjusted income was $344,000 or $0.04 per diluted share, compared to $667,000 or $0.07 per diluted share in the previous year [12] Business Line Data and Key Metrics Changes - Zerust Oil & Gas net sales increased by 58.1% to $2.4 million, marking a record for the first quarter [7] - Zerust Industrial net sales rose by 6.9%, while Natur-Tec product net sales increased by 2.2% [5] - Natur-Tec sales reached a record $6 million, representing a 2.2% year-over-year increase and a 16.5% increase from the previous quarter [9] Market Data and Key Metrics Changes - NTIC China saw a 23.5% increase in net sales year-over-year to $4.9 million, indicating strong demand in the region [6] - Joint venture sales increased by 2.9% year-over-year to $24.5 million, despite a mid-single-digit decline in the German joint venture [5] Company Strategy and Development Direction - The company is focused on improving profitability by flattening operating expenses and driving sales in higher-margin segments [4] - Strategic investments made over the past three years are expected to yield benefits in global operations and support future growth [4] - NTIC aims to enhance operations in China, viewing it as a significant market for industrial and bioplastic segments [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the start of fiscal 2026, expecting higher year-over-year sales and profitability as trends support growth [4] - The company anticipates that economic recovery from government stimulus packages in Europe will positively impact joint venture operating income [6] - Management highlighted the importance of maintaining strategic investments for long-term growth rather than cutting expenses [19] Other Important Information - As of November 30, 2025, working capital was $19.4 million, with outstanding debt slightly reduced to $12 million [13][14] - The board declared a quarterly cash dividend of $0.01 per common share, payable on November 12, 2025 [15] Q&A Session Summary Question: What are some levers to improve profitability? - Management indicated that driving sales growth will increase gross margin, which will positively impact operating profit [17] Question: Are there opportunities for cost-cutting? - Management noted that while there are some opportunities, the focus is on allowing revenues to catch up to previous expense increases rather than cutting expenses [19] Question: Are there other major oil and gas opportunities? - Management confirmed ongoing discussions with other oil companies globally, expecting business growth beyond the current major contract in Brazil [23]
Northern Technologies International (NTIC) - 2026 Q1 - Earnings Call Presentation
2026-01-08 14:00
Nasdaq: NTIC Northern Technologies International Corporation First Quarter Fiscal Year 2026 Investor Presentation Forward - Looking Statements Statements contained in this presentation that are not historical information are forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include NTIC's belief that its near -term outlook remains cautious and that it continues to uncover new business opportunities and other statements that can be identi ...
Northern Technologies International (NTIC) - 2026 Q1 - Quarterly Report
2026-01-08 13:01
Financial Performance - Total net sales for the three months ended November 30, 2025, were $23,308,881, an increase of 9.2% compared to $21,338,393 for the same period in 2024[54]. - NTIC's consolidated net sales increased by 9.2% to $23,308,881 for the three months ended November 30, 2025, compared to $21,338,393 for the same period in 2024, driven by higher demand for ZERUST® and Natur-Tec® products[77]. - Net sales from joint ventures for the three months ended November 30, 2025, totaled $24,531,431, an increase from $23,837,010 in the same period of 2024, representing a growth of 2.91%[35]. - Gross profit for the total segments was $9,164,961 for the three months ended November 30, 2025, compared to $8,970,504 in 2024, reflecting a growth of 2.2%[55]. - The Company’s share of equity in income from joint ventures for the three months ended November 30, 2025, was $1,222,116, up from $1,129,593 in the same period of 2024, a rise of 8.20%[35]. - The company reported a net income of $237,819 for the three months ended November 30, 2025, down from $561,091 in the same period of 2024[49]. - Basic net income per share for the three months ended November 30, 2025, was $0.03, compared to $0.06 for the same period in 2024[49]. Sales and Revenue Breakdown - ZERUST® segment net sales reached $17,316,196, up from $15,475,803, while Natur-Tec® segment net sales increased to $5,992,685 from $5,862,590[54]. - Sales of ZERUST® products and services accounted for 74.3% of total net sales, increasing by 11.9%, while Natur-Tec® products represented 25.7% of net sales, with a growth of 2.2%[74]. - Total ZERUST® sales rose by 11.9% to $17,316,196, accounting for 74.3% of consolidated net sales, primarily due to increased demand in the oil and gas sector[79]. - ZERUST® oil and gas net sales surged by 58.1% to $2,393,678, largely due to heightened demand in Brazil, with a significant contract valued at approximately R$70 million (US$13.1 million) expected to impact future sales positively[81]. Expenses and Costs - Cost of goods sold as a percentage of net sales rose to 64.0% from 61.7%, attributed to higher raw material prices and discounts[74]. - Total operating expenses increased by 2.9% to $9,741,367, primarily due to strategic investments in marketing and sales efforts for ZERUST® products[78]. - Research and development expenses decreased by 9.1% to $1,220,912, reflecting a shift in expense categorization to selling expenses[88]. - Cost of goods sold increased by 13.3% to $14,925,255, with the cost as a percentage of net sales rising to 64.0% from 61.7%[83]. Assets and Liabilities - Total inventories as of November 30, 2025, increased to $16,107,563 from $15,525,230 as of August 31, 2025, representing a growth of 3.73%[30]. - Property and equipment, net, rose to $15,800,929 as of November 30, 2025, compared to $15,183,918 as of August 31, 2025, reflecting an increase of 4.07%[31]. - Intangible assets, net, decreased to $8,594,926 as of November 30, 2025, down from $8,827,768 as of August 31, 2025, a decline of 2.64%[32]. - The outstanding balance for term loans as of November 30, 2025, was $2,826,615, slightly up from $2,804,695 as of August 31, 2025[43]. - Borrowings under the Credit Facility amounted to $9,134,428 as of November 30, 2025, slightly down from $9,329,021 as of August 31, 2025[37]. Cash Flow and Investments - Net cash provided by operating activities for the three months ended November 30, 2025, was $341,908, down from $2,395,066 in the same period of 2024[112]. - NTIC's net cash used in investing activities for the three months ended November 30, 2025, was $821,624, primarily for property and equipment purchases[116]. - Capital expenditures for the three months ended November 30, 2025, were $821,624, with an expected total of $2,000,000 to $2,500,000 for fiscal 2026[120]. Dividends and Shareholder Returns - The company declared a cash dividend of $0.01 per share on October 15, 2025, payable on November 12, 2025[46]. - NTIC declared a cash dividend of $0.01 per share on October 15, 2025, compared to $0.07 per share declared on October 16, 2024[119]. Strategic Initiatives and Future Outlook - NTIC's strategic initiative includes expanding into the oil and gas industry, with a significant contract secured in November 2025 valued at approximately R$70 million (US$13.1 million)[70]. - The company continues to strengthen its distribution network for Natur-Tec® products, anticipating higher sales growth in fiscal 2026 compared to fiscal 2025[71]. - Management is implementing measures to mitigate inflationary and supply chain pressures due to tariffs, focusing on supplier diversification and regional sourcing initiatives[75]. - NTIC anticipates continued volatility in quarterly net income due to inflation, supply chain disruptions, and fluctuating sales in its product segments[95]. Risks and Uncertainties - The company has identified several uncertainties that could materially affect its financial results, including changes in trade regulations and supply chain disruptions[130]. - NTIC expects to incur additional costs related to tariffs throughout fiscal 2026 and is implementing strategies to mitigate inflationary pressures[135]. - The company does not hedge against its foreign currency exchange rate risk, which could lead to declines in reported net income[134]. - NTIC is exposed to foreign currency exchange rate risk primarily with the Euro, Japanese Yen, Indian Rupee, Chinese Renminbi, South Korean Won, and English Pound against the U.S. Dollar[134].
Northern Technologies International (NTIC) - 2026 Q1 - Quarterly Results
2026-01-08 13:00
EXHIBIT 99.1 Northern Technologies International Corporation Reports Financial Results for First Quarter Fiscal 2026 MINNEAPOLIS, Jan. 08, 2026 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC), a leading developer of corrosion inhibiting products and services, as well as bio-based and biodegradable polymer resin compounds, today reported its financial results for the first quarter of fiscal 2026. First quarter fiscal 2026 financial and operating highlights include (with gro ...
Northern Technologies International Corporation Reports Financial Results for First Quarter Fiscal 2026
Globenewswire· 2026-01-08 13:00
MINNEAPOLIS, Jan. 08, 2026 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC), a leading developer of corrosion inhibiting products and services, as well as bio-based and biodegradable polymer resin compounds, today reported its financial results for the first quarter of fiscal 2026. First quarter fiscal 2026 financial and operating highlights include (with growth rates on a fiscal quarter year-over-year basis): Consolidated net sales increased 9.2% to a quarterly record of $ ...
Northern Technologies International Corporation to Announce Fiscal 2026 First-Quarter Financial Results and Host Conference Call
Globenewswire· 2025-12-30 13:00
MINNEAPOLIS, Dec. 30, 2025 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC) today announced that it expects to release its fiscal 2026 first-quarter financial results on Thursday, January 8, 2026, before the market opens. A copy of the news release will be available on the Investor Relations section of NTIC’s webpage (www.ntic.com). In conjunction with NTIC’s release of its financial and operating results, investors, analysts, and other interested parties are invited to par ...
Northern Technologies International (NTIC) - 2025 Q4 - Annual Report
2025-11-20 21:00
Sales Performance - In fiscal 2025, 74.2% of NTIC's consolidated net sales, amounting to $62,488,397, were derived from ZERUST® corrosion prevention solutions, reflecting a decrease of 1.0% from fiscal 2024[30]. - NTIC's consolidated net sales from Natur-Tec® resin compounds and finished products were $21,746,077 in fiscal 2025, representing a slight decrease of 1.0% compared to fiscal 2024, accounting for 25.8% of total consolidated net sales[43]. - Sales of ZERUST® corrosion prevention solutions to the oil and gas industry totaled $7,317,704 in fiscal 2025, a decrease of 20.7% from fiscal 2024, although consistent re-orders from large customers were noted[37]. Product Offerings - NTIC's ZERUST® packaging products utilize proprietary chemical formulations that inhibit rust and corrosion, providing significant savings in labor, material, and capital expenditures compared to traditional methods[31]. - The Z-CIS® technical services system has been utilized by several major automotive companies to improve and control their corrosion management processes[36]. - Natur-Tec® resin compounds are engineered for high performance and reduced cost, allowing for processing using conventional plastic manufacturing methods[44]. - Natur-Tec® flexible film resin compounds are fully compostable and certified by organizations such as BPI and TÜV Austria, meeting international standards for compostable plastics[47]. - NTIC has developed unique corrosion inhibiting solutions for the oil and gas industry, addressing aggressive corrosion in critical infrastructure and extending service life[38]. - The introduction of products like AutoFog allows for rapid VCI saturation in large volume spaces, enhancing corrosion protection capabilities[45]. - NTIC's ZERUST® solutions for oil and gas infrastructure are tailored to customer requirements, addressing specific environmental conditions and enhancing protection against corrosion[42]. - Natur-Tec® compostable injection molding resin compounds are made with at least 90% bio-based materials, enhancing sustainability by replacing petroleum-based plastics[49]. - Natur-Bag® product line includes 15 different compostable trash bag sizes, certified fully compostable, and marketed through retail and industrial channels[50]. Market Trends - NTIC expects the U.S. market for bio-plastic solutions to continue growing due to legislation aimed at reducing single-use plastics, with a significant ban on plastic bags enacted in multiple states[54]. Research and Development - NTIC anticipates spending between $4,900,000 and $5,100,000 on research and development activities in fiscal 2026[61]. Financial Performance - NTIC had an estimated order backlog of $4,184,415 as of August 31, 2025, down from $5,837,430 as of August 31, 2024[71]. - NTIC's revenue is primarily derived from one-time purchase orders and short-term contracts, with revenue recognized upon the transfer of control of goods[298]. - The company assesses its investments in joint ventures for impairment annually, with additional evaluations performed if financial performance expectations are not met[295]. - Goodwill is tested for impairment annually, with assessments made more frequently if adverse changes in circumstances occur[300]. - NTIC utilizes the asset and liability method for accounting income taxes, recognizing deferred tax assets and liabilities based on expected future tax consequences[305][306]. - The company measures stock-based compensation costs based on the fair value of equity instruments issued, recognizing costs over the service period[304]. - NTIC's consolidated financial statements include accounts of its wholly owned subsidiaries but do not include accounts of its joint ventures[294]. - The company records trade receivables and fees for services provided to joint ventures as separate line items in its consolidated financial statements[289]. - NTIC's revenue recognition policy for joint ventures aligns with its policy for unaffiliated customers, ensuring consistency in financial reporting[290]. Workforce and Management - As of August 31, 2025, NTIC had a total of 94 employees, with 91 full-time and 3 part-time employees, including 28 in sales and marketing, 24 in research and development, 22 in administration, and 20 in production[73]. - NTIC's North American workforce is composed of 41% female employees and 31% racially or ethnically diverse individuals[74]. - The average tenure of NTIC employees is nine years, indicating a stable workforce[75]. - NTIC had only one lost time incident in both fiscal 2025 and 2024, reflecting strong safety performance[80]. - NTIC's management team has an average tenure of 17 years, suggesting experienced leadership[76]. - The company offers competitive compensation and benefits, including a 401(k) plan with matching contributions and profit-sharing options[84][85]. - NTIC provides employees with immediate eligibility for its medical plan, which has no co-pay and does not require premium contributions[86]. - Full-time employees are eligible for paid holidays and vacation time ranging from 15 to 25 days based on service length[87]. - NTIC is committed to equal opportunity and has policies in place to prevent discrimination and harassment[81][82]. - The company emphasizes health, safety, environment, and security (HSE&S) as core values and is dedicated to continuous improvement in these areas[78][79]. Joint Ventures - NTIC has established a joint venture network for approximately 30 years, participating in 15 active joint ventures across North America, Europe, and Asia[290]. - Revenue recognition for sales to joint ventures occurs when products are shipped, with fees based on either a flat fee or a percentage of sales[291][299].
Northern Technologies (NTIC) Reports Q4 Loss, Misses Revenue Estimates
ZACKS· 2025-11-18 15:16
Company Performance - Northern Technologies reported a quarterly loss of $0.06 per share, missing the Zacks Consensus Estimate of $0.08, compared to earnings of $0.20 per share a year ago, representing an earnings surprise of -175.00% [1] - The company posted revenues of $22.32 million for the quarter ended August 2025, missing the Zacks Consensus Estimate by 0.38%, and down from $23.35 million year-over-year [2] - Northern Technologies has not surpassed consensus EPS estimates over the last four quarters and has topped consensus revenue estimates only twice in that period [2] Stock Performance - Shares of Northern Technologies have declined approximately 41.1% since the beginning of the year, contrasting with the S&P 500's gain of 13.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $20.7 million, and for the current fiscal year, it is $0.28 on revenues of $89.1 million [7] Industry Outlook - The Zacks Industry Rank for Chemical - Diversified is currently in the bottom 9% of over 250 Zacks industries, indicating a challenging environment for the sector [8] - The performance of Northern Technologies may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]