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Northern Technologies International (NTIC) - 2024 Q4 - Annual Results
NTICNorthern Technologies International (NTIC)2024-11-19 13:01

Financial Performance - Consolidated net sales for fiscal 2024 increased 6.5% to a record 85,060,000comparedto85,060,000 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,whileZERUSTindustrialnetsalesdecreased0.19,229,000, 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,contributingtooverallsalesgrowth[3].−NetincomeattributabletoNTICincreased85.721,967,000, contributing to overall sales growth[3]. - Net income attributable to NTIC increased 85.7% to 5,409,000, or 0.55perdilutedshare,comparedto0.55 per diluted share, compared to 2,912,000, or 0.30perdilutedshareinthepreviousyear[3][10].−NetsalesforthethreemonthsendedAugust31,2024,were0.30 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 20,709,635inthesameperiodof2023[22].−NetincomeattributabletoNTICforthethreemonthsendedAugust31,2024,was20,709,635 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 1,846,984inthesameperiodof2023,reflectingadecreaseof49.21,846,984 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 2,570,488in2023[26].ProfitabilityandExpenses−Grossprofitasapercentageofnetsalesincreased490basispointsto39.72,570,488 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 27,803,831in2023[22].−ResearchanddevelopmentexpensesforthetwelvemonthsendedAugust31,2024,were27,803,831 in 2023[22]. - Research and development expenses for the twelve months ended August 31, 2024, were 4,802,791, slightly down from 4,967,922in2023[23].CashFlowandAssets−Cashprovidedbyoperatingactivitiesincreased6.24,967,922 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 41,579,219asofAugust31,2024,from41,579,219 as of August 31, 2024, from 39,671,556 in 2023, marking a growth of 4.8%[21]. - Total assets increased to 94,676,502asofAugust31,2024,from94,676,502 as of August 31, 2024, from 89,344,303 in 2023, reflecting a growth of 6.5%[21]. - Cash and cash equivalents decreased to 4,952,184asofAugust31,2024,from4,952,184 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 19,501,181asofAugust31,2024,downfrom19,501,181 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 23,682,000asofAugust31,2024[12].FutureOutlook−Thecompanyanticipatesfurthersalesgrowthandimprovedprofitabilityinfiscal2025,drivenbystrategicinvestmentsandglobaldemandforNatur−Tecproducts[5][18].−NTIC′sjointventureoperatingincomedecreased18.623,682,000 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 11,642,000inthepreviousyear[8].ShareholderReturns−Thecompanyreportedadilutednetincomepershareof11,642,000 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].