MINNEAPOLIS, April 16, 2025 (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 announced that the Board of Directors declared a quarterly cash dividend of $0.01 per share payable on May 14, 2025, to shareholders of record at the close of business on April 30, 2025. About Northern Technologies International Corporation Northern Technologies ...

Financial Data and Key Metrics Changes - For the second quarter ended February 28, 2025, total consolidated net sales decreased by 8.5% to $19.1 million compared to the same period last year [11] - Gross profit as a percentage of net sales was 35.6%, down from 40.0% in the prior fiscal year period, reflecting a less profitable mix of sales [25][26] - Net income for the second quarter was $434,000, or $0.04 per diluted share, compared to $1.7 million, or $0.17 per diluted share, for the same period last year [26] Business Line Data and Key Metrics Changes - Xero's oil and gas net sales decreased by 28.5%, while NatureTech net sales decreased by 11.8%, and Xero's industrial net sales decreased by 3.7% [11] - NatureTech sales were $5 million, down from $5.6 million in the same period a year ago, attributed to order timing and seasonal variation [19] - Xero's oil and gas sales were $1.5 million, down from $2.2 million in the same period last year, but showed a 7.2% increase on a trailing 12-month basis [16][17] Market Data and Key Metrics Changes - Joint venture sales decreased by 15.7% year-over-year to $19.8 million, reflecting high energy prices and regional economic pressures in Europe [12] - NTIC China subsidiary reported an 8.1% increase in net sales to $3.7 million, stabilizing and approaching sales levels from fiscal 2021 and 2022 [13][14] Company Strategy and Development Direction - The company is focused on managing cash, reducing debt, and enhancing flexibility, with a disciplined approach to capital allocation [10][30] - Strategic investments are being made to support expected growth in the oil and gas business in the second half of the fiscal year [25] - The company remains committed to long-term growth opportunities in the Chinese market for industrial and bioplastic segments [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the increasing intensity of headwinds due to changes in U.S. trade and economic policies, but expressed confidence in a rebound in NatureTech and U.S. oil and gas sales in the second half of the fiscal year [7][9] - The leadership team has successfully navigated previous economic challenges and believes the current business model provides flexibility to handle uncertainties [21][22] Other Important Information - The company declared a quarterly cash dividend of $0.07 per common share, with plans to adjust the quarterly dividend to one cent per share to manage cash position [30] - As of February 28, 2025, working capital was $21.4 million, with outstanding debt of $8.1 million [28][29] Q&A Session Summary Question: How are the investments in the oil and gas sales team working out? - The company hired eight people, some of whom did not work out, but expects the impact to show in the second half of the year [34] Question: What are the dynamics behind potential issues in the compostable business? - A large distributor in the U.S. has been added, which is expected to significantly boost business, along with a new line of technology in food packaging [36] Question: Was the employee retention payment an actual cash payment? - Yes, it was an actual cash payment [38] Question: How is the core business performing currently? - The core business is expected to remain flat [41] Question: Can you provide more details on the gross margin decline? - The decline was due to increased pricing pressures in the NatureTech business, leading to a decrease in sales prices [46][47] Question: What is the outlook for the oil and gas business in the second half? - The focus will be on oil storage tank bottoms and pipeline casings, with expectations of significant business from large customers [60] Question: How is the situation in Brazil regarding the oil and gas industry? - Brazil is performing well, with significant business and ramping sales in the oil and gas sector [67]

Northern Technologies (NTIC) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of $0.06. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -150%. A quarter ago, it was expected that this rust and corrosion prevention company would post earnings of $0.12 per share when it actually produced earnings of $0.07, delivering a surprise of -41.67%.Over the last four ...

Financial Performance - Net sales for the three months ended February 28, 2025, were $19,072,066, a decrease of 8.5% compared to $20,842,538 for the same period in 2024[15] - Net income attributable to Northern Technologies International Corporation (NTIC) for the three months ended February 28, 2025, was $434,319, compared to $1,701,169 for the same period in 2024, a decline of 74.5%[15] - Net income for the six months ended February 28, 2025, was $1,396,774, compared to $2,953,469 for the same period in 2024, representing a decrease of approximately 53%[22] - Operating loss for the three months ended February 28, 2025, was $(332,933), compared to operating income of $2,206,271 for the same period in 2024[15] - NTIC's consolidated net sales decreased by 8.5% to $19,072,066 for the three months ended February 28, 2025, and by 1.5% to $40,410,459 for the six months ended February 28, 2025, compared to the same periods in the prior year[77] Assets and Liabilities - Total current assets decreased to $39,624,812 as of February 28, 2025, from $41,579,219 as of August 31, 2024, a reduction of 4.7%[12] - Total assets decreased to $93,695,214 as of February 28, 2025, from $94,676,502 as of August 31, 2024, a decline of 1.0%[12] - Total liabilities increased to $19,849,535 as of February 28, 2025, from $19,501,181 as of August 31, 2024, an increase of 1.8%[12] - NTIC's working capital was $21,416,426 as of February 28, 2025, down from $23,682,276 as of August 31, 2024[101] Cash Flow - Cash flows from operating activities for the six months ended February 28, 2025, were $3,198,741, down from $5,643,007 in the prior year, indicating a decline of about 43%[22] - Cash and cash equivalents increased to $5,090,630 as of February 28, 2025, from $4,952,184 as of August 31, 2024, an increase of 2.8%[12] - Net cash provided by operating activities during the six months ended February 28, 2025, was $3,198,741, a decrease from $5,643,007 for the same period in 2024[116] - Net cash used in investing activities for the six months ended February 28, 2025, was $2,580,757, compared to $1,505,927 for the same period in 2024[120] Expenses - Research and development expenses for the six months ended February 28, 2025, were $2,632,296, an increase from $2,348,177 in the prior year, reflecting a growth of 12.1%[15] - General and administrative expenses increased by 13.0% for the three months and 11.3% for the six months ended February 28, 2025, as a percentage of net sales rising to 19.2% and 18.6%, respectively[89] - Selling expenses decreased by 6.4% for the three months but increased by 4.1% for the six months ended February 28, 2025, with selling expenses as a percentage of net sales rising to 20.3% and 20.1%, respectively[88] Dividends - The company declared cash dividends of $0.07 per common share for both the three and six months ended February 28, 2025, consistent with the prior year[15] - The company paid dividends of $1,325,872 to stockholders during the six months ended February 28, 2025, compared to $1,319,866 in the prior year, reflecting a slight increase[22] Joint Ventures - NTIC's share of joint ventures' equity as of February 28, 2025 was $25,041,302, with undistributed earnings amounting to $24,096,958[39] - For the three months ended February 28, 2025, net sales from joint ventures totaled $19,799,875, with a gross profit of $8,241,116 and net income of $1,219,970[39] - Equity in income from joint ventures decreased by 47.3% to $620,730 for the three months and by 23.2% to $1,750,323 for the six months ended February 28, 2025, reflecting lower net sales and profitability from joint ventures[86] Stock and Compensation - Stock-based compensation expense for the six months ended February 28, 2025, was $676,334, slightly lower than $694,874 for the same period in 2024[22] - The company recognized stock option compensation expense of $602,821 for the six months ended February 28, 2025, compared to $694,874 for the same period in 2024[53] - As of February 28, 2025, the company had $1,618,997 of unrecognized stock option compensation expense expected to be recognized over 2.5 years[53] Market and Operational Risks - NTIC is exposed to foreign currency exchange rate risks, particularly with the Euro, Japanese Yen, Indian Rupee, Chinese Renminbi, South Korean Won, and British Pound against the U.S. Dollar[128] - The company has identified potential risks related to supply chain disruptions and the impact of geopolitical tensions on its operations and profitability[134] - NTIC's future performance may be affected by the automotive industry's shift towards electric vehicles and the associated market dynamics[134] Future Outlook - NTIC's management is focusing on expanding into the oil and gas industry, which is expected to enhance the demand for ZERUST® corrosion prevention solutions[73] - The Natur-Tec® product line is seeing significant opportunities, with ongoing efforts to expand the North American distribution network for bioplastic products[74] - NTIC expects to continue investing in joint ventures, research and development, and marketing efforts throughout fiscal 2025[103]

Financial Performance - NTIC's consolidated net sales decreased 8.5% to $19,072,000 for the second quarter of fiscal 2025, compared to $20,843,000 for the same period last year[4] - ZERUST® oil and gas net sales fell 28.5% to $1,549,000, while ZERUST® industrial net sales decreased 3.7% to $12,562,000[6] - Natur-Tec® product net sales declined 11.8% to $4,960,000, contributing to an overall decrease in consolidated net sales[6] - Total net sales for the three months ended February 28, 2025, were $19,072,066, a decrease of 8.5% compared to $20,842,538 for the same period in 2024[24] - Net income attributable to NTIC for the three months ended February 28, 2025, was $434,319, a significant decline from $1,701,169 in the same period last year[25] - The company reported an operating loss of $332,933 for the three months ended February 28, 2025, compared to an operating income of $2,206,271 in the same period last year[24] - Non-GAAP adjusted net income for the three months ended February 28, 2025, was $(299,654), compared to $1,806,952 in the prior year[29] Operating Expenses and Income - Operating expenses increased 2.4% to $8,820,000, with operating expenses as a percentage of net sales rising to 46.2%[8] - Gross profit for the six months ended February 28, 2025, was $14,958,537, down from $15,673,438 in the prior year, reflecting a decrease of 4.5%[24] Cash Flow and Working Capital - Cash provided by operating activities was $3,199,000 for the six months ended February 28, 2025[6] - Working capital decreased to $21,416,000 as of February 28, 2025, from $23,682,000 as of August 31, 2024[12] - Cash and cash equivalents increased to $5,090,630 as of February 28, 2025, from $4,952,184 as of August 31, 2024, showing a growth of 2.8%[21] Assets and Liabilities - Total current assets decreased to $39,624,812 as of February 28, 2025, from $41,579,219 as of August 31, 2024, representing a decline of 4.7%[21] - Total liabilities increased to $19,849,535 as of February 28, 2025, compared to $19,501,181 as of August 31, 2024, indicating a rise of 1.8%[21][22] - Total equity decreased to $73,845,679 as of February 28, 2025, from $75,175,321 as of August 31, 2024, a decline of 1.8%[23] Future Outlook - NTIC anticipates a rebound in Natur-Tec® and ZERUST® oil and gas sales in the second half of the fiscal year[2] - The company plans to adjust its quarterly dividend to $0.01 per share to prioritize debt reduction and future growth opportunities[3] Research and Development - Research and development expenses for the six months ended February 28, 2025, were $2,632,296, up from $2,348,177 in the prior year, reflecting an increase of 12.1%[24] Other Income - NTIC recognized $1,140,000 in other income due to an Employee Retention Credit (ERC) payment during the quarter[9]

MINNEAPOLIS, April 10, 2025 (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 second quarter of fiscal 2025. Second quarter fiscal 2025 financial and operating highlights include (with growth rates on a fiscal quarter year-over-year basis): Consolidated net sales decreased 8.5% to $19,072,000ZERUST® in ...

MINNEAPOLIS, April 03, 2025 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC) today announced that it expects to release its fiscal 2025 second-quarter financial results on Thursday, April 10, 2025, 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 pa ...

Financial Performance - For the three months ended November 30, 2024, the Company reported net income attributable to NTIC of $561,091, a decrease of 37.3% from $895,521 in the same period of 2023[51]. - Total net sales for the three months ended November 30, 2024 were $21,338,393, representing an increase of 5.7% compared to $20,181,675 in 2023[57]. - The basic net income per share for the three months ended November 30, 2024 was $0.06, down from $0.09 in 2023[51]. - NTIC's consolidated net sales increased by 5.7% to $21,338,393 for the three months ended November 30, 2024, compared to $20,181,675 for the same period in 2023[75]. - Net income attributable to NTIC decreased to $561,091, or $0.06 per diluted common share, for the three months ended November 30, 2024, down from $895,521, or $0.09 per diluted common share, in the prior year[94]. Sales and Revenue - ZERUST® segment net sales increased slightly to $15,475,803 in 2024 from $15,405,745 in 2023, while Natur-Tec® segment net sales rose significantly by 22.7% to $5,862,590 from $4,775,930[57]. - Net sales inside the U.S. increased to $13,088,319 in 2024 from $12,097,843 in 2023, while sales outside the U.S. also saw an increase[59]. - Sales of Natur-Tec® products surged by 22.8% to $5,862,590, accounting for 27.5% of total net sales, up from 23.7% in the prior year[82]. - ZERUST® product sales increased slightly by 0.5% to $15,475,803, representing 72.5% of total net sales[78]. - Net sales at joint ventures rose by 1.2% to $23,837,010 for the three months ended November 30, 2024, compared to $23,560,661 for the same period in 2023[85]. Expenses and Costs - Cost of goods sold as a percentage of net sales decreased to 61.7% from 63.7% year-over-year, primarily due to lower raw material prices and insourcing[83]. - Total operating expenses increased by 14.0% to $9,469,994, attributed to strategic investments in ZERUST® oil and gas sales infrastructure[75]. - Selling expenses increased by 15.8% for the three months ended November 30, 2024, with selling expenses as a percentage of net sales rising to 20.0% from 18.3% in the prior year[86]. - General and administrative expenses rose by 9.7% for the three months ended November 30, 2024, with these expenses as a percentage of net sales increasing to 18.1% from 17.4%[87]. - Research and development expenses increased by 21.5% for the three months ended November 30, 2024, reflecting continued investment in new product development[88]. Assets and Liabilities - As of November 30, 2024, total inventories amounted to $14,337,384, a slight decrease from $14,390,844 as of August 31, 2024[34]. - Property and equipment, net increased to $17,053,239 as of November 30, 2024, compared to $16,265,653 as of August 31, 2024, with depreciation expense decreasing to $267,155 from $307,010 year-over-year[35]. - Total intangible assets, net were reported at $5,573,945 as of November 30, 2024, down from $5,682,945 as of August 31, 2024, with amortization expense remaining stable[36]. - As of November 30, 2024, borrowings under the Credit Facility amounted to $4,518,734, an increase from $4,291,608 as of August 31, 2024[41]. - Working capital was $22,183,428 as of November 30, 2024, down from $23,682,276 as of August 31, 2024[98]. Cash Flow - Net cash provided by operating activities was $2,395,066 for the three months ended November 30, 2024, compared to $3,076,892 for the same period in 2023[111]. - Net cash used in investing activities for the three months ended November 30, 2024, was $1,258,336, compared to $423,871 for the same period in 2023[115]. - Net cash used in financing activities for the three months ended November 30, 2024, was $393,341, a significant decrease from $2,019,836 in the prior year[116]. Dividends and Share Repurchase - The Company declared a cash dividend of $0.07 per share on October 16, 2024, payable on November 13, 2024[49]. - As of November 30, 2024, $2,640,548 remains available for share repurchase under the stock repurchase program, with no repurchases occurring during the three months ended November 30, 2024[117]. Future Outlook and Strategic Initiatives - The Company anticipates adopting new accounting standards related to segment reporting and income tax disclosures for the fiscal year ending August 31, 2025[30][32]. - The Company is evaluating the impact of new SEC rules on climate-related disclosures, which will begin phasing in for fiscal years starting January 1, 2025[33]. - NTIC anticipates continued volatility in quarterly net income due to factors such as inflation and supply chain disruptions[95]. - NTIC expects to invest in joint ventures, research and development, and marketing efforts throughout fiscal 2025, although specific amounts are not yet determined[99]. - NTIC is enhancing its North American distribution network for Natur-Tec® products to capitalize on the growing demand for biodegradable plastics[72].

Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to investment opportunities [1] Group 2 - A very small fraction of companies are considered suitable for a buy recommendation at any given time, highlighting a selective investment strategy [1] - Hold articles are intended to provide valuable information for future investors and introduce skepticism in a generally bullish market [1]

Financial Data and Key Metrics Changes - For the first quarter ended November 30, 2024, total consolidated net sales increased 5.7% to a record $21.3 million compared to the same period last year [10] - Net income attributable to the company was $561,000 or $0.06 per diluted share, down from $896,000 or $0.09 per diluted share in the first quarter of fiscal 2024 [23] - Total operating expenses increased 14% to $9.5 million, primarily due to increased personnel costs and strategic investments [20][22] Business Line Data and Key Metrics Changes - Natur Tec net sales increased 22.8% year-over-year to a record $5.9 million [16] - ZERUST oil and gas net sales increased by 0.7%, with trailing twelve-month sales at $9.2 million, a 20.3% increase from the previous year [14] - Xerox industrial net sales saw a slight increase of 0.4% [10] Market Data and Key Metrics Changes - NTIC China experienced its highest quarterly sales in nearly three years, with an 8.6% year-over-year increase to nearly $4 million [12] - Joint venture sales increased by 1.2% year-over-year to $23.8 million, indicating stabilization despite challenging market conditions [11] Company Strategy and Development Direction - The company is focused on expanding its oil and gas sales infrastructure to support anticipated growth in the second half of fiscal 2025 [9] - NTIC is committed to long-term opportunities in the Chinese market, particularly in industrial and bioplastics segments [13] - The company expects to see continued growth in Natur Tec due to robust market demand for compostable plastics [17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for fiscal 2025, anticipating further sales growth and improved profitability despite a fluid economic environment [9] - The company noted that while the oil and gas sector is subject to seasonal fluctuations, it is well-positioned for growth [15] - Management acknowledged the challenges in the German market but indicated stability in other European joint ventures [72] Other Important Information - The company declared a quarterly cash dividend of $0.07 per common share, payable on November 13, 2024 [26] - As of November 30, 2024, working capital was $22.2 million, with outstanding debt of $7.3 million [24] Q&A Session Summary Question: What percentage of new tanks are treated with Northern Technology? - Management indicated that currently, it is not even 1% of the total market for new and replacement tanks [34] Question: What is the cost comparison between existing technology and Northern Technology's option? - Northern Technology's solution is roughly a third of the cost of traditional cathodic protection [38] Question: What is the ongoing revenue from installations? - Ongoing revenue typically occurs five plus years after installation, with recharges expected to be around ten percent of the original treatment cost [42][46] Question: What is the growth outlook for Natur Tec? - Management expects Natur Tec to sustain roughly 20% growth this year [80] Question: How is the sales pipeline for oil and gas progressing? - The sales pipeline is primarily from existing customers, with new customer additions ongoing, and it typically takes six months to a year for new salespeople to become effective [91][93]