Patrick Lynch, President and CEO, and Matt Wolsfeld, CFO, will review NTIC's fiscal 2024 third-quarter financial results and outlook, which will be followed by a question-and-answer session. July 11, 2024, at 9:00 A.M. ET (8:00 A.M. CT, 7:00 A.M. MT, 6:00 A.M. PT) URL EVENTS & PRESENTATIONS WEBPAGE: Investor and Media Contact: Matthew Wolsfeld, CFO (763) 225-6600 MINNEAPOLIS, July 02, 2024 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC) today announced that it expects to r ...

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate re ...

Company Overview - Northern Technologies (NTIC) is a member of the Basic Materials group, which consists of 241 companies and is currently ranked 5 in the Zacks Sector Rank [2] - NTIC has a Zacks Rank of 1 (Strong Buy), indicating a favorable earnings outlook [3] Performance Analysis - NTIC has gained approximately 57.1% year-to-date, significantly outperforming the Basic Materials sector, which has returned an average of -0.3% [4] - The Zacks Consensus Estimate for NTIC's full-year earnings has increased by 4% over the past quarter, reflecting improved analyst sentiment [4] Industry Context - NTIC belongs to the Chemical - Diversified industry, which includes 29 stocks and is currently ranked 89 in the Zacks Industry Rank; this industry has gained an average of 0.3% year-to-date [6] - In comparison, Centerra Gold Inc. (CGAU), another outperforming stock in the Basic Materials sector, is part of the Mining - Gold industry, which has moved +14.9% since the beginning of the year [7]

MINNEAPOLIS, May 29, 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 it is expected to join the broad-market Russell 3000 Index at the conclusion of the 2024 Russell U.S. Indexes annual reconstitution, effective at the open of U.S. equity markets on July 1, 2024, according to a preliminary list of additions posted May ...

The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near- term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically ...

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in stock prices for short-term investing, highlighting that while trends can be profitable, ensuring their longevity is crucial [1][2]. Group 1: Stock Performance - Northern Technologies (NTIC) has shown a solid price increase of 30% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 13.7% in the last four weeks, suggesting that the upward trend is still intact [5]. - NTIC is currently trading at 80.8% of its 52-week high-low range, indicating a potential breakout [6]. Group 2: Fundamental Strength - NTIC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors to identify stocks like NTIC that are on an uptrend supported by strong fundamentals [3]. - The article suggests that there are multiple stocks passing through this screen, encouraging investors to explore these opportunities [8].

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...

Financial Data and Key Metrics Changes - Year-over-year cash from operating activities improved by nearly 156% to $5.6 million primarily due to higher net income and positive changes in working capital [2] - Net income attributable to the company was $1.7 million or $0.17 per diluted share for the fiscal 2024 second quarter compared to $411,000 or $0.04 per diluted share for the fiscal 2023 second quarter [89] - Gross profit as a percentage of net sales was 40% during the three months ended February 29, 2024, compared to 34.5% during the prior fiscal year period, reflecting a 551 basis point improvement [6] Business Line Data and Key Metrics Changes - Natur-Tec sales increased 47.5% year-over-year to a quarterly record of $5.6 million, driven by new customer wins in North America and India [4] - ZERUST Oil & Gas sales were $2.2 million for the fiscal 2024 second quarter, a 20.1% year-over-year increase, attributed to the shift of certain oil and gas projects and positive demand [29] - Total consolidated net sales increased 14.1% to a second quarter record of $20.8 million compared to the second quarter ended February 28, 2023 [82] Market Data and Key Metrics Changes - Sales from global joint ventures declined 7.9% in the fiscal 2024 second quarter, while joint venture operating income increased 4.2% compared to the prior fiscal year period [31] - The Chinese market showed improvement with a 20.3% increase in sales from the NTIC China subsidiary, marking the first year-over-year increase in over two years [3][14] Company Strategy and Development Direction - The company intends to allocate capital to support growth initiatives and quarterly dividend payments while using excess cash flow to pay down existing credit lines [2] - The company is focused on enhancing profitability at joint ventures and expects Natur-Tec sales growth to continue throughout the second half of fiscal 2024 [87][90] - The company is optimistic about the long-term opportunities in the Chinese market despite near-term uncertainties [86] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand in China and expects continued improvement in sales and profitability [3][12] - The company anticipates a strong second half of the year for both Natur-Tec and oil and gas segments, with expectations for higher profitability [12][33] - Management noted that the growth in profitability is driven by successful initiatives to improve gross margins and operational efficiencies [112] Other Important Information - The Board of Directors declared a quarterly cash dividend of $0.07 per share payable on February 14, 2024 [7] - Total operating expenses increased 9.4% to $8.6 million compared to the same period last fiscal year, primarily due to increased personnel costs [116] Q&A Session Summary Question: What is the pipeline for ZERUST and Natur-Tec? - Management indicated strong repeat business with existing customers and ongoing investments in technical services and sales to drive growth in oil and gas [10][35] Question: Is the growth in Natur-Tec sustainable? - Management expects Natur-Tec to have a strong second half of the year, with ongoing projects contributing to recurring revenues [12][36] Question: What are the expectations for gross margins going forward? - Management believes that a gross margin of 40% is sustainable for the next few quarters, although external factors could impact costs [38] Question: How is the automotive sector in China performing? - Management noted improvements in the Chinese market, particularly in the automotive sector, and highlighted ongoing cost-cutting efforts to enhance profitability [14][99] Question: What is the outlook for joint ventures? - Management expects joint venture contributions to rebound in the coming quarters, driven by ongoing efforts to enhance profitability [69][109]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 29, 2024 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 INTERNAT ...

[Financial and Operating Highlights for Second Quarter Fiscal 2024](index=1&type=section&id=Financial%20and%20Operating%20Highlights%20for%20Second%20Quarter%20Fiscal%202024) NTIC achieved record Q2 FY2024 performance with strong sales growth, significant profitability improvement, and enhanced liquidity [Management Commentary](index=1&type=section&id=Management%20Commentary) Management reported record Q2 sales and a 40% gross margin, anticipating continued strong demand and positive cash flow - Management reported record Q2 sales for ZERUST oil and gas and record quarterly sales for Natur-Tec, reflecting strong market demand[2](index=2&type=chunk) - Gross margin improved significantly, reaching **40% in Q2**, a **5.5 percentage point increase year-over-year**, due to successful strategic execution[2](index=2&type=chunk) - The company expects strong demand to continue through the second half of fiscal 2024, with a focus on improving profitability, generating positive cash flow, and paying down its line of credit[3](index=3&type=chunk) [Key Financial & Operating Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operating%20Highlights) NTIC achieved record Q2 FY2024 consolidated net sales of $20.8 million and a 313% increase in net income Q2 FY2024 Key Performance Indicators (Year-over-Year) | Metric | Q2 FY2024 | % Change (YoY) | | :--- | :--- | :--- | | Consolidated Net Sales | $20,843,000 | 14.1% | | ZERUST Industrial Net Sales | $13,051,000 | 3.1% | | ZERUST Oil and Gas Net Sales | $2,167,000 | 20.1% | | Natur-Tec Product Net Sales | $5,624,000 | 47.5% | | Gross Margin | 40.0% | +551 bps | | Net Income (attributable to NTIC) | $1,701,000 | 313% | | Net Income per Diluted Share | $0.17 | 325% | - The company generated **$5.643 million in cash from operating activities** for the first six months of fiscal 2024[7](index=7&type=chunk) - The balance sheet strengthened, shifting from net debt of **$951,000** at August 31, 2023, to net cash of **$860,000** as of February 29, 2024[7](index=7&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) This section analyzes NTIC's net sales, profitability, and joint venture performance for Q2 and H1 FY2024 [Net Sales Performance](index=1&type=section&id=Net%20Sales%20Performance) Consolidated net sales grew 14.1% in Q2 FY2024, driven by strong Natur-Tec and ZERUST oil and gas segment growth Net Sales by Product Category (Three Months Ended) | Product Category | Q2 FY2024 | Q2 FY2023 | % Change | | :--- | :--- | :--- | :--- | | ZERUST industrial | $13,050,767 | $12,653,512 | 3.1% | | ZERUST oil and gas | $2,167,328 | $1,805,235 | 20.1% | | **Total ZERUST** | **$15,218,095** | **$14,458,747** | **5.3%** | | **Total Natur-Tec** | **$5,624,443** | **$3,812,078** | **47.5%** | | **Total Net Sales** | **$20,842,538** | **$18,270,825** | **14.1%** | Net Sales by Product Category (Six Months Ended) | Product Category | H1 FY2024 | H1 FY2023 | % Change | | :--- | :--- | :--- | :--- | | ZERUST industrial | $26,954,198 | $26,401,616 | 2.1% | | ZERUST oil and gas | $3,669,642 | $3,427,132 | 7.1% | | **Total ZERUST** | **$30,623,840** | **$29,828,748** | **2.7%** | | **Total Natur-Tec** | **$10,400,373** | **$8,394,843** | **23.9%** | | **Total Net Sales** | **$41,024,213** | **$38,223,591** | **7.3%** | [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Q2 FY2024 net income surged 313% to $1.7 million, supported by gross margin expansion and controlled operating expenses Income Statement Highlights (Q2 & H1 FY2024 vs FY2023) | Metric | Q2 FY2024 | Q2 FY2023 | H1 FY2024 | H1 FY2023 | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $8,339,164 | $6,303,068 | $15,673,438 | $12,656,192 | | Operating Income | $2,206,271 | $813,556 | $3,582,704 | $1,643,132 | | Net Income (to NTIC) | $1,701,000 | $411,000 | $2,597,000 | $914,000 | | Diluted EPS (to NTIC) | $0.17 | $0.04 | $0.27 | $0.09 | - Operating expenses as a percentage of net sales decreased to **41.3% for Q2 FY2024**, compared to 43.1% for the same period last fiscal year, despite an increase in absolute dollar terms due to higher personnel expenses[9](index=9&type=chunk) [Joint Venture Performance](index=2&type=section&id=Joint%20Venture%20Performance) Joint venture operating income increased 4.2% in Q2 FY2024, despite a 7.9% decrease in net sales Joint Venture Performance (Q2 FY2024 vs Q2 FY2023) | Metric | Q2 FY2024 | Q2 FY2023 | % Change | | :--- | :--- | :--- | :--- | | JV Operating Income | $2,481,000 | $2,381,000 | 4.2% | | JV Net Sales (Not Consolidated) | $23,480,000 | $25,483,000 | -7.9% | - The increase in joint venture operating income was primarily due to efforts to enhance profitability, which offset the impact of lower sales[8](index=8&type=chunk) [Financial Position](index=2&type=section&id=Financial%20Position) NTIC's balance sheet shows improved liquidity with a shift from net debt to net cash and stable working capital [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) NTIC strengthened its balance sheet with increased working capital and a shift to a net cash position by Q2 FY2024 Key Balance Sheet Items | Metric | Feb 29, 2024 | Aug 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $4,835,000 | $5,406,000 | | Working Capital | $23,975,000 | $22,950,000 | | Total Debt (Line of Credit & Term Loan) | $3,975,000 | $6,357,000 | | Investments in joint ventures | $23,461,000 | $23,706,000 | - Of the **$23.5 million in joint venture investments**, **$13.1 million (55.8%)** is held in cash[12](index=12&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents NTIC's unaudited consolidated balance sheets and statements of operations for Q2 and H1 FY2024 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased slightly to $87.3 million, while total liabilities reduced and total equity increased by Q2 FY2024 Consolidated Balance Sheet Summary (in thousands) | | Feb 29, 2024 | Aug 31, 2023 | | :--- | :--- | :--- | | **ASSETS** | | | | Total current assets | $37,333 | $39,672 | | Total assets | $87,307 | $89,344 | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | $13,358 | $16,721 | | Total liabilities | $15,359 | $18,645 | | Total equity | $71,948 | $70,699 | | Total liabilities and equity | $87,307 | $89,344 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 FY2024 net sales reached $20.8 million with net income of $1.9 million, significantly up year-over-year Consolidated Statement of Operations (Three Months Ended) | | Feb 29, 2024 | Feb 28, 2023 | | :--- | :--- | :--- | | Net sales | $20,842,538 | $18,270,825 | | Gross profit | $8,339,164 | $6,303,068 | | Operating income | $2,206,271 | $813,556 | | Net income | $1,868,528 | $520,068 | | Net income attributable to NTIC | $1,701,169 | $411,497 | Consolidated Statement of Operations (Six Months Ended) | | Feb 29, 2024 | Feb 28, 2023 | | :--- | :--- | :--- | | Net sales | $41,024,213 | $38,223,591 | | Gross profit | $15,673,438 | $12,656,192 | | Operating income | $3,582,704 | $1,643,132 | | Net income | $2,953,469 | $1,153,748 | | Net income attributable to NTIC | $2,596,690 | $913,739 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliation of GAAP to non-GAAP financial measures, primarily adjusting for amortization expense [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Non-GAAP adjusted net income for Q2 FY2024 was $1.8 million, providing a clearer view of operating performance - The company uses non-GAAP measures to supplement GAAP reporting, believing it helps investors compare operating performance by excluding non-recurring or unusual charges[23](index=23&type=chunk) GAAP to Non-GAAP Reconciliation (Q2 FY2024) | Metric | GAAP (As Reported) | Non-GAAP (Adjusted) | | :--- | :--- | :--- | | Net Income (to NTIC) | $1,701,169 | $1,806,952 | | Diluted EPS (to NTIC) | $0.17 | $0.18 | [Corporate Information and Disclosures](index=3&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides an overview of NTIC's business and important forward-looking statement disclosures [About Northern Technologies International Corporation](index=3&type=section&id=About%20Northern%20Technologies%20International%20Corporation) NTIC develops and markets environmentally beneficial corrosion prevention and bio-based polymer products globally - NTIC's main business is corrosion prevention, marketed under the **ZERUST® brand**[16](index=16&type=chunk) - The company also sells a portfolio of bio-based and biodegradable polymer products under the **Natur-Tec® brand**[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) Future performance statements are subject to various risks including economic conditions, supply chain, and joint venture dependencies - Statements about future performance are subject to risks including the health of the U.S. and worldwide economies, supply chain disruptions, and dependence on joint ventures[17](index=17&type=chunk) - The company directs investors to its Form 10-K and 10-Q filings for a more comprehensive understanding of business risks[17](index=17&type=chunk)