Northern Technologies International (NTIC)

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Northern Technologies International (NTIC) - 2025 Q3 - Quarterly Report
2025-07-10 22:26
UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of registrant as specified in its charter) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to __________________ Commission File Number: 001-11038 ____________________ NORTHERN TECHNOLOGIES INTERNATIONAL CORPORAT ...
Northern Technologies International (NTIC) - 2025 Q3 - Quarterly Results
2025-07-10 22:15
EXHIBIT 99.1 Northern Technologies International Corporation Reports Financial Results for Third Quarter Fiscal 2025 MINNEAPOLIS, July 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 third quarter of fiscal 2025. Third-quarter fiscal 2025 financial and operating highlights include (with gro ...
Northern Technologies (NTIC) Q3 Earnings Lag Estimates
ZACKS· 2025-07-10 14:10
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 (NTIC) - 2025 Q3 - Earnings Call Transcript
2025-07-10 14:02
Financial Data and Key Metrics Changes - For Q3 fiscal 2025, consolidated net sales increased by 4% to $21.5 million compared to Q3 fiscal 2024 [6][15] - Gross margin reached 38.4%, an increase from 38.2% year over year, reflecting a more profitable sales mix [16] - Net income 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 [16][17] - Non-GAAP adjusted net income was $228,000 or $0.02 per diluted share compared to $1.1 million or $0.11 per diluted share in the prior year [17] Business Line Data and Key Metrics Changes - Xerus Industrial's net sales increased by 7.1%, while ZERUST Oil and Gas net sales decreased by 5.3%, and Natur Tec net sales declined by 1.2% [6][11] - Natur Tec sales were $5.8 million, representing a 1.2% year-over-year decline but a 16.5% sequential increase from Q2 fiscal 2025 [12] - ZERUST Oil and Gas sales were $1.3 million compared to $1.4 million in the same period last year, with a trailing twelve-month sales increase of 15.4% [10][11] Market Data and Key Metrics Changes - Joint venture sales decreased by 12.9% year over year to $2.3 million, attributed to high energy prices and regional economic pressures in Europe [7] - NTSC China net sales increased by 27.4% to $4.5 million, marking the second highest quarterly revenue since transitioning to a wholly owned subsidiary [8][9] Company Strategy and Development Direction - The company is focused on supporting existing customers, expanding global relationships, and scaling in high-growth markets [5] - Continued investments in the oil and gas business are part of the long-term growth strategy, despite higher operating expenses [5][11] - The company is optimistic about the potential recovery in European markets due to government stimulus packages [7] Management's Comments on Operating Environment and Future Outlook - Management expects improvements in profitability in Q4 fiscal 2025 and continued progress in fiscal 2026 [6] - The company remains committed to long-term growth opportunities and believes that strategic priorities will drive sustainable growth and profitability [19] Other Important Information - As of May 31, 2025, working capital was $21.7 million, including $6.8 million in cash [18] - The Board of Directors declared a quarterly cash dividend of $0.01 per common share [19] Q&A Session Summary Question: Comments on improved quarter and operational profits - Management acknowledged significant improvement in operational profits from Q2 to Q3, with nearly all business units showing progress [22][23] Question: Cost comparison of new technology in oil and gas - Management confirmed that the new technology is cheaper on the front end compared to traditional methods, with easier installation and better long-term protection [24][28] Question: Incremental spending on sales for oil and gas - The company projected an additional $1.3 million in personnel costs for oil and gas over the past twelve months, translating to about $3.4 million in quarterly expenses [32] Question: Profitability of NTSC China - Management confirmed that NTSC China has been profitable for some time, with significant revenue growth observed [36] Question: Developments in compostable packaging - The company is working on improving the water vapor transmission rate of compostable packaging, with potential applications in food packaging expected to generate revenue in the next two years [41][42]
Northern Technologies International (NTIC) - 2025 Q3 - Earnings Call Transcript
2025-07-10 14:00
Financial Data and Key Metrics Changes - For Q3 fiscal 2025, consolidated net sales increased by 4% to $21.5 million compared to Q3 fiscal 2024 [6][15] - Gross margin reached 38.4%, an increase from 38.2% year over year, reflecting a more profitable sales mix [16] - Net income 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 [16] Business Line Data and Key Metrics Changes - Xerus Industrial's net sales increased by 7.1%, while ZERUST Oil and Gas net sales decreased by 5.3%, and Natur Tec net sales declined by 1.2% [6][15] - Natur Tec sales were $5.8 million, representing a 1.2% year-over-year decline but a 16.5% sequential increase from Q2 fiscal 2025 [12] - ZERUST Oil and Gas sales were $1.3 million compared to $1.4 million in the same period last year, with a trailing twelve-month sales increase of 15.4% [11] Market Data and Key Metrics Changes - Joint venture sales decreased by 12.9% year over year to $2.3 million, attributed to high energy prices and regional economic pressures in Europe [7][8] - NTSC China net sales increased by 27.4% to $4.5 million, marking the second highest quarterly revenue since transitioning to a wholly owned subsidiary [8][9] Company Strategy and Development Direction - The company is focused on supporting existing customers, expanding global relationships, and scaling in high-growth markets [5] - Planned investments in the oil and gas business are expected to contribute to future growth despite current higher operating expenses [5][16] - The company is committed to long-term growth opportunities, particularly in the Chinese market and bioplastics segment [10][18] Management's Comments on Operating Environment and Future Outlook - Management expects improvements in profitability in Q4 fiscal 2025 and continued progress in fiscal 2026 despite macroeconomic pressures [6][16] - The company is closely monitoring European market trends for signs of stabilization due to government stimulus packages [8] - Management remains confident in the direction of the company and its strategic growth plan despite challenges faced in fiscal 2025 [13] Other Important Information - As of May 31, 2025, working capital was $21.7 million, with outstanding debt of $10.1 million [17] - The Board declared a quarterly cash dividend of $0.01 per common share, reflecting a disciplined approach to cash management [18] Q&A Session Summary Question: Improvement in operational profits - Management acknowledged significant improvement in operational profits from Q2 to Q3, with nearly all business units showing progress [22] Question: Cost comparison of new technology in oil and gas - Management confirmed that the new technology is cheaper on the front end compared to traditional methods, with easier installation and better long-term protection [23][26] Question: Additional spending on sales efforts for oil and gas - The company is projected to spend about $5.3 million in the current year, an increase of $1.3 million in personnel costs compared to the previous year [30] Question: Profitability of NTSC China - NTSC China has been profitable for some time, with significant revenue growth observed over the past three years [34] Question: New developments in compostable packaging - Management is working on a project to improve the water vapor transmission rate of compostable packaging, with potential revenue expected in the next two years [40][41]
Northern Technologies International Corporation Reports Financial Results for Third Quarter Fiscal 2025
Globenewswire· 2025-07-10 12:00
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]
Northern Technologies International Corporation to Announce Fiscal 2025 Third-Quarter Financial Results and Host Conference Call
GlobeNewswire News Room· 2025-07-01 12:00
Company Overview - Northern Technologies International Corporation (NTIC) develops and markets proprietary, environmentally beneficial products and services in over 65 countries, primarily focusing on corrosion prevention under the ZERUST® brand [5] - NTIC has been in the corrosion prevention market for over 50 years, serving various sectors including automotive, electronics, military, and more recently, the oil and gas industry [5] - The company also offers bio-based and biodegradable polymer resin compounds marketed under the Natur-Tec® brand [5] Upcoming Financial Results - NTIC is set to release its fiscal 2025 third-quarter financial results on July 10, 2025, before the market opens [1] - A conference call with management will take place on the same day at 9:00 a.m. Eastern Time, where the President and CEO, along with the CFO, will review the financial results and outlook [2] Conference Call Details - Participants must register to join the live call and will receive a dial-in number and unique PIN after registration [3] - An audio-only webcast of the conference call will be available, and a replay will be accessible for approximately one year on NTIC's Investor Relations webpage [4]
Northern Technologies International Corporation Announces Quarterly Cash Dividend
Globenewswire· 2025-04-16 12:00
Company Overview - Northern Technologies International Corporation (NTIC) is a leading developer of corrosion inhibiting products and services, as well as bio-based and biodegradable polymer resin compounds [2] - The company operates in over 65 countries through subsidiaries, joint ventures, independent distributors, and agents [2] - NTIC's primary business focuses on corrosion prevention, marketed mainly under the ZERUST® brand, with over 50 years of experience in various markets including automotive, electronics, and military [2] Recent Developments - 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 [1] Product and Service Offerings - NTIC offers a range of proprietary products and services for rust and corrosion prevention, along with technical consulting for specific user needs [2] - The company has expanded its offerings to include bio-based and biodegradable polymer resin compounds marketed under the Natur-Tec® brand [2]
Northern Technologies (NTIC) Reports Q2 Loss, Lags Revenue Estimates
ZACKS· 2025-04-10 14:25
分组1 - Northern Technologies (NTIC) reported a quarterly loss of $0.03 per share, missing the Zacks Consensus Estimate of $0.06, and down from earnings of $0.18 per share a year ago, representing an earnings surprise of -150% [1] - The company posted revenues of $19.07 million for the quarter ended February 2025, missing the Zacks Consensus Estimate by 5.58%, and down from $20.84 million year-over-year [2] - Northern Technologies shares have declined approximately 27.8% since the beginning of the year, compared to a decline of -7.2% for the S&P 500 [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $23.2 million, and for the current fiscal year, it is $0.56 on revenues of $90.2 million [7] - The Zacks Industry Rank for Chemical - Diversified is currently in the bottom 16% of over 250 Zacks industries, indicating potential challenges for the sector [8]
Northern Technologies International (NTIC) - 2025 Q2 - Earnings Call Transcript
2025-04-10 13:00
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 fiscal 2024 second quarter [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 in the second quarter, 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 in the second quarter, compared to $2.2 million in the same period last year, with a trailing 12-month sales increase of 7.2% [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 a net sales increase of 8.1% 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 strategic investments in oil and gas sales infrastructure to support growth expected in the second half of fiscal 2025 [18] - A disciplined approach to managing cash, including adjustments to quarterly dividends and prioritizing debt reduction, is intended to position the company for future growth opportunities [10][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the increasing intensity of headwinds, including changes in U.S. trade policies and economic conditions, 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 emphasized their experience in navigating challenging economic periods and the strength of the company's balance sheet [21][22] Other Important Information - The company declared a quarterly cash dividend of $0.07 per common share, with plans to adjust the dividend to one cent per share in the next quarter [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: What is the current state of the core business? - The core business is expected to remain flat [41] Question: Can you provide more color on the gross margin decline? - Increased pricing pressures in the NatureTech business led to a decrease in sales prices, impacting gross margins [46][48] Question: What is the outlook for the oil and gas business in the second half? - The company anticipates growth primarily in oil storage tank bottoms and pipeline casings, with significant business expected from large customers [60]