Financial Performance - NTIC's consolidated net sales decreased 8.5% to $19,072,000 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, 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, 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 $20,842,538 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 $1,701,169 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 $2,206,271 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 $1,806,952 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, 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 $3,199,000 for the six months ended February 28, 2025[6] - Working capital decreased to $21,416,000 as of February 28, 2025, from $23,682,000 as of August 31, 2024[12] - Cash and cash equivalents increased to $5,090,630 as of February 28, 2025, from $4,952,184 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 $41,579,219 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 $19,501,181 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 $75,175,321 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, 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]
Northern Technologies International (NTIC) - 2025 Q2 - Quarterly Results