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Northern Technologies International (NTIC) - 2025 Q2 - Quarterly Results
NTICNorthern Technologies International (NTIC)2025-04-10 12:00

Financial Performance - NTIC's consolidated net sales decreased 8.5% to 19,072,000forthesecondquarteroffiscal2025,comparedto19,072,000 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,whileZERUST®industrialnetsalesdecreased3.71,549,000, 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,contributingtoanoveralldecreaseinconsolidatednetsales[6]−TotalnetsalesforthethreemonthsendedFebruary28,2025,were4,960,000, 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 20,842,538forthesameperiodin2024[24]−NetincomeattributabletoNTICforthethreemonthsendedFebruary28,2025,was20,842,538 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 1,701,169inthesameperiodlastyear[25]−Thecompanyreportedanoperatinglossof1,701,169 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 2,206,271inthesameperiodlastyear[24]−Non−GAAPadjustednetincomeforthethreemonthsendedFebruary28,2025,was2,206,271 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 1,806,952intheprioryear[29]OperatingExpensesandIncome−Operatingexpensesincreased2.41,806,952 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,downfrom14,958,537, 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 3,199,000forthesixmonthsendedFebruary28,2025[6]−Workingcapitaldecreasedto3,199,000 for the six months ended February 28, 2025[6] - Working capital decreased to 21,416,000 as of February 28, 2025, from 23,682,000asofAugust31,2024[12]−Cashandcashequivalentsincreasedto23,682,000 as of August 31, 2024[12] - Cash and cash equivalents increased to 5,090,630 as of February 28, 2025, from 4,952,184asofAugust31,2024,showingagrowthof2.84,952,184 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 41,579,219asofAugust31,2024,representingadeclineof4.741,579,219 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 19,501,181asofAugust31,2024,indicatingariseof1.819,501,181 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 75,175,321asofAugust31,2024,adeclineof1.875,175,321 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,upfrom2,632,296, 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]