Northern Technologies (NTIC) came out with quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -50.00%. A quarter ago, it was expected that this rust and corrosion prevention company would post earnings of $0.06 per share when it actually produced a loss of $0.03, delivering a surprise of -150%.Over th ...

Northern Technologies International Corp (NTIC) Q3 2025 Earnings Call July 10, 2025 09:00 AM ET Speaker0Good day, and thank you for standing by, and welcome to the NTIC Third Quarter twenty twenty five Earnings Conference Call and Webcast. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising tha ...

Northern Technologies International Corp (NTIC) Q3 2025 Earnings Call July 10, 2025 09:00 AM ET Company ParticipantsG. Patrick Lynch - President & CEOMatthew Wolsfeld - CFO & Corporate SecretaryTim Clarkson - Stock BrokerGus Richard - Managing Director OperatorGood day, and thank you for standing by, and welcome to the NTIC Third Quarter twenty twenty five Earnings Conference Call and Webcast. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a questio ...

Core Insights - Northern Technologies International Corporation (NTIC) reported a 4.0% increase in consolidated net sales for Q3 fiscal 2025, reaching $21.51 million compared to $20.69 million in Q3 fiscal 2024, driven by demand for ZERUST® industrial products despite geopolitical tensions [4][6][20] - The company continues to invest in its ZERUST® oil and gas business, expecting sequential growth in sales and profitability in Q4 fiscal 2025 and into fiscal 2026, with cumulative sales of $24 million over the past 13 quarters [2][3] - NTIC is monitoring European economic stimulus packages, particularly in Germany, which may positively impact joint venture operating income [3] Financial Performance - Consolidated net sales for the nine months ended May 31, 2025, increased by 0.3% to $61.92 million from $61.71 million in the same period last year [4][20] - ZERUST® industrial net sales rose by 7.1% to $14.44 million, while ZERUST® oil and gas net sales decreased by 5.3% to $1.29 million [5][6] - Gross profit margin increased by 20 basis points to 38.4%, while operating expenses rose by 7.6% to $9.67 million [6][7] Income and Earnings - Net income attributable to NTIC for Q3 fiscal 2025 was $122,000, or $0.01 per diluted share, down from $977,000, or $0.10 per diluted share, in Q3 fiscal 2024 [9][21] - Year-to-date net income attributable to NTIC was $1.12 million, or $0.12 per diluted share, compared to $3.57 million, or $0.36 per diluted share, for the same period last year [9][21] - Non-GAAP adjusted net income for Q3 fiscal 2025 was $228,000, or $0.02 per diluted share, compared to $1.08 million, or $0.11 per diluted share, for the same quarter last fiscal year [10][25] Joint Ventures and Investments - NTIC's joint venture operating income decreased by 12.9% to $2.27 million in Q3 fiscal 2025, primarily due to lower sales and reduced equity income from joint ventures [7][20] - The company had $27.14 million in investments in joint ventures as of May 31, 2025, with $13.50 million in cash [12][18] Balance Sheet Highlights - As of May 31, 2025, NTIC had working capital of $21.66 million, including $6.77 million in cash and cash equivalents [11][18] - Total assets increased to $99.30 million from $94.68 million as of August 31, 2024 [18][19]

NTIC Fiscal 2025 Third-Quarter Earnings Conference Call and Webcast MINNEAPOLIS, July 01, 2025 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC) today announced that it expects to release its fiscal 2025 third-quarter financial results on Thursday, July 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, in ...

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 ...

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 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]

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]