Northern Technologies International (NTIC)

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Northern Technologies International (NTIC) - 2025 Q1 - Quarterly Results
2025-01-08 22:00
Net Sales Performance - Consolidated net sales increased 5.7% to a first quarter record of $21,338,000[6] - ZERUST® industrial net sales increased 0.4% to $13,962,000[6] - ZERUST® oil and gas net sales increased 0.7% to $1,514,000[6] - Natur-Tec® product net sales increased 22.8% to a quarterly record of $5,863,000[6] - NTIC China net sales increased 8.6% to $3,995,000[6] - Net sales for the three months ended November 30, 2024, were $21,338,393, compared to $20,181,675 in the same period in 2023, representing a 5.7% increase[21] Gross Profit and Margins - Gross profit, as a percent of net sales, increased 200 basis points to 38.3%[6] - Gross profit for the three months ended November 30, 2024, was $8,162,953, up from $7,334,274 in the same period in 2023, reflecting an 11.3% increase[21] Operating Expenses and Investments - Operating expenses increased 14.0% to $9,470,000, primarily due to investments in ZERUST® oil and gas sales infrastructure[3][6] - Research and development expenses for the three months ended November 30, 2024, were $1,343,397, up from $1,105,921 in the same period in 2023, a 21.5% increase[21] Net Income and Profitability - Net income attributable to NTIC decreased to $561,000, compared to $896,000[6] - Net income attributable to NTIC for the three months ended November 30, 2024, was $561,091, compared to $895,521 in the same period in 2023, a decrease of 37.3%[21] - Non-GAAP adjusted net income for the three months ended November 30, 2024, was $666,874, compared to $1,001,304 in the same period in 2023, a decrease of 33.4%[25] Joint Venture Performance - Joint venture operating income increased 2.7% to $2,414,000[7] - Total joint venture operations income for the three months ended November 30, 2024, was $2,413,712, up from $2,351,199 in the same period in 2023, a 2.7% increase[21] Balance Sheet and Financial Position - NTIC's consolidated balance sheet remains strong with working capital of $22,183,000 as of November 30, 2024[10] - Total current assets as of November 30, 2024, were $40,302,350, down from $41,579,219 as of August 31, 2024, a decrease of 3.1%[19] - Total liabilities as of November 30, 2024, were $19,730,606, compared to $19,501,181 as of August 31, 2024, an increase of 1.2%[19] - Total equity as of November 30, 2024, was $74,307,049, compared to $75,175,321 as of August 31, 2024, a decrease of 1.2%[19] Dividends - Cash dividends declared per common share for the three months ended November 30, 2024, were $0.07, consistent with the same period in 2023[21]
Northern Technologies International Corporation Reports Financial Results for First Quarter Fiscal 2025
Newsfilter· 2025-01-08 22:00
Core Insights - Northern Technologies International Corporation (NTIC) reported record first-quarter consolidated sales of $21,338,000 for fiscal 2025, representing a 5.7% increase year-over-year from $20,182,000 in the same period last year [3][5] - The growth was primarily driven by strong sales in Natur-Tec® products, which saw a 22.8% increase, and stable performance in ZERUST® oil and gas and industrial sales [3][5] - NTIC's CEO expressed cautious optimism regarding the continued improvement in global trends within ZERUST® industrial markets throughout fiscal 2025 [1] Financial Performance - Consolidated net sales increased to $21,338,000, with ZERUST® industrial net sales at $13,962,000 (up 0.4%) and ZERUST® oil and gas net sales at $1,514,000 (up 0.7%) [5][21] - Natur-Tec® product net sales reached a record of $5,863,000, marking a significant increase of 22.8% [5][21] - NTIC China reported its highest quarterly sales in nearly three years, amounting to $3,995,000, an increase of 8.6% [5] Operating Expenses and Profitability - Operating expenses rose by 14.0% year-over-year to $9,470,000, primarily due to strategic investments in ZERUST® oil and gas sales infrastructure [2][5] - Gross profit margin improved by 200 basis points to 38.3%, reflecting successful quality system improvement initiatives [2][5] - Net income attributable to NTIC decreased to $561,000, or $0.06 per diluted share, compared to $896,000, or $0.09 per diluted share in the prior year [8][21] Joint Ventures and Cash Flow - Joint venture operating income increased by 2.7% to $2,414,000, with net sales from joint ventures rising by 1.2% to $23,837,000 [6][21] - Cash provided by operating activities for the first quarter was $2,395,000, indicating strong operational cash flow [5] Balance Sheet Strength - As of November 30, 2024, NTIC's working capital stood at $22,183,000, with cash and cash equivalents of $5,570,000 [9][18] - The company maintained a strong balance sheet, with total assets of $94,037,655 and total liabilities of $19,730,606 [9][19]
Northern Technologies International (NTIC) - 2024 Q4 - Earnings Call Transcript
2024-11-20 01:03
Financial Data and Key Metrics Changes - For fiscal 2024, total consolidated net sales increased by 6.5% to a record annual figure, with fourth quarter net sales rising by 12.7% to $23.3 million compared to the same quarter last year [21][10] - Gross profit for fiscal 2024 increased by nearly $6 million or 21.5% year-over-year, with gross profit as a percentage of net sales improving to 39.7% from 34.8% in the prior fiscal year [6][24] - Net income for the fourth quarter was $1.8 million or $0.19 per diluted share, compared to $939,000 or $0.10 per diluted share for the same quarter last year [24] Business Line Data and Key Metrics Changes - ZERUST Oil and Gas net sales surged by 76.6% in the fourth quarter, reaching $4.2 million, while Natur-Tec sales increased by 16.4% to $5.7 million [10][15] - ZERUST Industrial net sales saw a marginal increase of 0.1% [10] - Sales from joint ventures decreased by 3.6% in the fourth quarter, with EXCOR Germany experiencing a 15% decline due to softer demand [10][11] Market Data and Key Metrics Changes - Demand in North America for ZERUST industrial products remains stable, while the company is cautiously optimistic about improving demand and profitability in Europe for fiscal 2025 [8][7] - The Chinese market has shown signs of stabilization with a 1.1% increase in sales from NTIC's China subsidiary, and the company expects further growth in fiscal 2025 [11][12] Company Strategy and Development Direction - The company is focused on strategic investments in workforce and infrastructure to support growth opportunities across global markets [8] - NTIC is committed to enhancing operations in China and expanding its presence in the bioplastics market, particularly in India and Brazil [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2025, anticipating further sales growth and improved profitability despite a fluid economic environment [28] - The company is navigating challenges in Europe, particularly related to the transition to electric vehicles affecting demand [34] Other Important Information - As of August 31, 2024, working capital was $23.7 million, with outstanding debt of $7.1 million, reflecting a strategic focus on reducing debt through positive operating cash flow [26] - The Board of Directors declared a quarterly cash dividend of $0.07 per common share payable on August 14, 2024 [27] Q&A Session Summary Question: Insights on Natur-Tec wins - Management noted growth across all regions and market segments, particularly in North America and India, with increased demand for compostable products [32] Question: Trends in ZERUST Industrial in Europe - Management indicated ongoing headwinds in Europe, particularly due to macroeconomic conditions and the transition to electric vehicles [34] Question: Future gross margin expectations - Management expects gross margins to remain stable, with improvements driven by higher sales in the Oil and Gas business [36] Question: Growth expectations for Oil and Gas in fiscal 2025 - Management anticipates significant growth in the Oil and Gas sector, projecting a year-over-year increase of 20% to 30% [39] Question: Certification timeline for Oil and Gas ZERUST technology - Management confirmed an API change expected to take effect in late fiscal 2025, which may impact adoption rates in the U.S. market [43]
Northern Technologies (NTIC) Beats Q4 Earnings and Revenue Estimates
ZACKS· 2024-11-19 15:35
Core Insights - Northern Technologies (NTIC) reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and significantly up from $0.03 per share a year ago, indicating a 566.67% year-over-year increase [1] - The company achieved revenues of $23.35 million for the quarter ended August 2024, surpassing the Zacks Consensus Estimate by 3.77% and up from $20.71 million in the same quarter last year, reflecting a 7.88% increase [2] - Northern Technologies has seen its shares increase by approximately 12.3% since the beginning of the year, while the S&P 500 has gained 23.6%, indicating underperformance relative to the broader market [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $22.2 million, and for the current fiscal year, it is $0.80 on revenues of $93.9 million [7] - The estimate revisions trend for Northern Technologies is mixed, resulting in a Zacks Rank 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Industry Context - The Chemical - Diversified industry, to which Northern Technologies belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8]
Northern Technologies International (NTIC) - 2024 Q4 - Annual Report
2024-11-19 13:15
Financial Performance - In fiscal 2024, NTIC's consolidated net sales reached $63,092,575 from ZERUST® rust and corrosion inhibiting products, marking a 2.2% increase from fiscal 2023[33]. - 74.2% of NTIC's consolidated net sales were derived from ZERUST® corrosion prevention solutions in fiscal 2024[32]. - NTIC's consolidated net sales in fiscal 2024 included $9,229,279 in sales to customers in the oil and gas industry, representing an 18.3% increase from fiscal 2023[41]. - 25.8% of NTIC's consolidated net sales in fiscal 2024 were derived from Natur-Tec® bioplastic packaging solutions, totaling $21,966,942, which is a 20.9% increase compared to fiscal 2023[50]. - NTIC recognized $5,251,782 in fees and $2,997,164 in dividend distributions from its joint ventures during fiscal 2024[154]. - Approximately 40-45% of ZERUST® industrial net sales in North America and 55-60% of net sales of NTIC's joint ventures came from the automotive sector in fiscal 2024[151]. - NTIC's equity in income from joint ventures was $4,223,296 during fiscal 2024, with $2,299,274 attributable to its significant joint venture in Germany, EXCOR[164]. Market Focus and Product Development - NTIC has expanded its market focus significantly on the oil and gas industry, which is highly susceptible to corrosion, to minimize maintenance downtime and extend infrastructure life[23]. - NTIC's corrosion prevention solutions include a variety of products such as packaging, liquids, coatings, rust removers, and engineered solutions for the oil and gas industry[33]. - The Natur-Tec® product line is expected to grow substantially due to new regulations mandating recyclable or compostable packaging by 2032 in California and similar bans in other states[63]. - NTIC's strategy includes enhancing existing products and developing new products to respond to customer needs, which requires significant research and development resources[195]. - NTIC has invested in expanding its corrosion prevention solutions into the oil and gas industry and launching Natur-Tec® resin compounds, although success is not guaranteed[196][197]. Operational Structure and Workforce - NTIC operates 11 subsidiaries and 15 active joint ventures across North America, Europe, and Asia, consolidating their financial results in their statements[28][29]. - NTIC's subsidiaries and joint ventures are strategically positioned in key markets, including China, India, and various ASEAN countries, enhancing their global reach[22][29]. - As of August 31, 2024, NTIC employed a total of 95 employees in North America, with 93 full-time and 2 part-time employees[85]. - The average tenure of NTIC's employees is nine years, indicating a stable workforce[87]. - NTIC's management team has an average tenure of 17 years, reflecting strong leadership continuity[88]. Challenges and Risks - NTIC's business may be negatively impacted by weaknesses in the global economy, particularly in the automotive industry[118]. - Supply chain disruptions have historically affected NTIC's product manufacturing and could lead to increased costs and lost sales[118]. - The evolution of the automotive industry towards electric vehicles could adversely affect NTIC's business[118]. - NTIC's liquidity and financial position depend on fees and dividends from joint ventures, which may not be guaranteed in the future[119]. - NTIC's international operations face risks from economic, political, and legal factors, particularly in Germany and China, which could adversely affect operating results[120]. - The ongoing war between Russia and Ukraine has resulted in commodity price fluctuations, negatively impacting NTIC's margins and joint venture profitability[138]. - Economic uncertainty in developing markets may adversely affect NTIC's revenue and earnings[121]. - Changes in trade regulations and tariffs could materially impact NTIC's business and financial condition due to the evolving geopolitical landscape[143]. Research and Development - NTIC anticipates spending between $4,800,000 and $5,000,000 on research and development activities in fiscal 2025[71]. - NTIC holds 5 patents and patent applications in the United States covering various applications for biobased and compostable plastics[73]. - The Natur-Tec® resin compounds are produced using a patented ReX Process, allowing for high performance and reduced costs compared to other bio-plastic materials[51]. Employee Benefits and Compensation - NTIC's compensation program is designed to attract and retain talent, offering competitive pay levels based on local markets and job descriptions[96]. - Employees are immediately eligible to participate in NTIC's 401(k) savings plan, with NTIC matching contributions and potentially providing profit-sharing contributions[97]. - NTIC offers cash bonuses and an employee stock purchase plan allowing employees to buy stock at a 10% discount to fair market value[98]. - The medical plan provided by NTIC has no co-pay, and employees are not required to contribute towards premium costs[99]. - Full-time employees are eligible for paid holidays and vacation time ranging from 15 to 25 days based on service length[101]. Competitive Landscape - NTIC faces intense competition in almost all product lines, with competitors having substantially greater resources[189]. - The company's strategy to expand its corrosion prevention solutions into the oil and gas industry carries risks and may not be successful, potentially harming financial results[122]. - NTIC's ability to compete effectively may be hindered by intense competition and the need to keep up with new technologies and product offerings[194][195]. Environmental and Regulatory Factors - NTIC's Natur-Tec® bio-based and compostable plastics are designed to replace conventional petroleum-based plastics, with a focus on reducing carbon footprints[25]. - The market for biodegradable plastics is expanding, driven by environmental awareness and regulatory support, which may benefit NTIC's Natur-Tec® products[203][204]. - The commercial success of Natur-Tec® products depends on market acceptance and potential government regulations promoting sustainable practices[204][205].
Northern Technologies International (NTIC) - 2024 Q4 - Annual Results
2024-11-19 13:01
Financial Performance - Consolidated net sales for fiscal 2024 increased 6.5% to a record $85,060,000 compared to $79,903,000 in the prior fiscal year[3]. - ZERUST oil and gas net sales increased 18.3% to a record $9,229,000, while ZERUST industrial net sales decreased 0.1% to $53,863,000[3]. - Natur-Tec product net sales increased 20.9% to a record $21,967,000, contributing to overall sales growth[3]. - Net income attributable to NTIC increased 85.7% to $5,409,000, or $0.55 per diluted share, compared to $2,912,000, or $0.30 per diluted share in the previous year[3][10]. - Net sales for the three months ended August 31, 2024, were $23,349,107, representing a 12.5% increase from $20,709,635 in the same period of 2023[22]. - Net income attributable to NTIC for the three months ended August 31, 2024, was $938,947, compared to $1,846,984 in the same period of 2023, reflecting a decrease of 49.2%[23]. - Adjusted net income attributable to NTIC for the fiscal year ended August 31, 2024, was $5,832,214, a significant increase from $2,570,488 in 2023[26]. Profitability and Expenses - Gross profit as a percentage of net sales increased 490 basis points to 39.7% for fiscal 2024[3]. - Operating expenses as a percentage of net sales decreased to 41.6% for the full fiscal year 2024, compared to 41.8% in the prior year[9]. - Gross profit for the twelve months ended August 31, 2024, was $33,786,362, up 21.5% from $27,803,831 in 2023[22]. - Research and development expenses for the twelve months ended August 31, 2024, were $4,802,791, slightly down from $4,967,922 in 2023[23]. Cash Flow and Assets - Cash provided by operating activities increased 6.2% to $5,883,000 for the full fiscal year 2024[3]. - Total current assets increased to $41,579,219 as of August 31, 2024, from $39,671,556 in 2023, marking a growth of 4.8%[21]. - Total assets increased to $94,676,502 as of August 31, 2024, from $89,344,303 in 2023, reflecting a growth of 6.5%[21]. - Cash and cash equivalents decreased to $4,952,184 as of August 31, 2024, from $5,406,173 in 2023, a decline of 8.4%[21]. Liabilities and Financial Position - Total liabilities decreased to $19,501,181 as of August 31, 2024, down from $18,645,506 in 2023, indicating a reduction of 4.4%[22]. - NTIC's consolidated balance sheet remains strong with working capital of $23,682,000 as of August 31, 2024[12]. Future Outlook - The company anticipates further sales growth and improved profitability in fiscal 2025, driven by strategic investments and global demand for Natur-Tec products[5][18]. - NTIC's joint venture operating income decreased 18.6% to $9,475,000 for fiscal 2024, compared to $11,642,000 in the previous year[8]. Shareholder Returns - The company reported a diluted net income per share of $0.19 for the three months ended August 31, 2024, compared to $0.10 in the same period of 2023, an increase of 90%[23].
Northern Technologies International Corporation to Announce Fiscal 2024 Fourth-Quarter Financial Results and Host Conference Call
GlobeNewswire News Room· 2024-11-12 13:00
Group 1 - Northern Technologies International Corporation (NTIC) is set to release its fiscal 2024 fourth-quarter financial results on November 19, 2024, 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, Patrick Lynch, and CFO, Matt Wolsfeld, will discuss the financial results and outlook [2] - Participants must register in advance to join the live call and will receive a dial-in number and unique PIN after registration [3] Group 2 - NTIC develops and markets environmentally beneficial products and services in over 65 countries, primarily focusing on corrosion prevention under the ZERUST® brand [5] - The company has been selling its proprietary rust and corrosion inhibiting products for nearly 50 years, targeting various markets including automotive, electronics, and oil and gas [5] - NTIC also offers bio-based and biodegradable polymer resin compounds and finished products under the Natur-Tec® brand [5]
Northern Technologies International Corporation Announces Quarterly Cash Dividend
GlobeNewswire News Room· 2024-07-17 12:00
MINNEAPOLIS, July 17, 2024 (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 $0.07 per share payable on August 14, 2024, to shareholders of record at the close of business on July 31, 2024. Northern Technologies International Corporation develops and markets propri ...
Northern Technologies Q3: Normal Results, But The Stock Remains Unattractive
Seeking Alpha· 2024-07-11 20:28
olaser/E+ via Getty Images As we will see, NTIC's fiscal Q3 results were not out of the ordinary. However, the stock was trading down 7% despite a mainly positive day for small caps. I believe this partly evidences the risk I commented about in my previous article, that a high P/E requires excellent results to be sustained and that even ordinary results can lead to capital losses. Industrials down with Europe leading the fall: NTIC's largest segment, industrial anti-corrosion, posted revenues down about 1.5 ...
Northern Technologies (NTIC) Misses Q3 Earnings and Revenue Estimates
ZACKS· 2024-07-11 14:46
Northern Technologies (NTIC) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates just once. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commenta ...