Northern Technologies International (NTIC) - 2026 Q1 - Quarterly Results

Financial Performance - Consolidated net sales increased 9.2% to a record $23,309,000 for the first quarter of fiscal 2026, compared to $21,338,000 for the same period last year[4]. - ZERUST® oil and gas net sales surged 58.1% to a first quarter record of $2,394,000, reflecting strong demand from both new and existing customers[5]. - NTIC China net sales rose 23.5% to a quarterly record of $4,935,000, contributing to overall sales growth[5]. - Net income attributable to NTIC was $238,000, or $0.03 per diluted share, down from $561,000, or $0.06 per diluted share, in the prior year[9]. - Net income attributable to NTIC for the three months ended November 30, 2025, was $237,819, a decline of 57.6% compared to $561,091 in 2024[21]. - Adjusted net income attributable to NTIC, excluding amortization expense, was $343,602 for the three months ended November 30, 2025[24]. Operating Expenses and Profitability - Operating expenses as a percentage of net sales improved to 41.8%, down from 44.4% in the same period last fiscal year[7]. - Gross profit margin decreased by 230 basis points to 36.0% due to supplier lead-time issues, but management expects improvement in subsequent quarters[5][3]. - Operating income decreased to $933,632, down 15.6% from $1,106,671 in the prior year[21]. - The company anticipates higher year-over-year profitability in fiscal 2026, driven by sales growth and controlled operating expenses[3][16]. Tax and Joint Ventures - NTIC's effective income tax rate increased to 34.4%, compared to 21.5% in the same period last year, primarily due to taxes paid at foreign subsidiaries[8]. - Total income from joint venture operations decreased 5.1% to $2,291,000, attributed to increased operating expenses at the joint ventures[6]. Balance Sheet and Working Capital - NTIC had working capital of $19,441,000 as of November 30, 2025, a decrease from $20,439,000 as of August 31, 2025[10]. - Total current assets as of November 30, 2025, were $44,624,494, slightly up from $44,342,816 as of August 31, 2025[18]. - Total assets increased to $104,029,392 as of November 30, 2025, compared to $102,745,280 as of August 31, 2025[20]. - Total liabilities increased to $27,352,329 as of November 30, 2025, from $26,032,555 as of August 31, 2025[20]. - Stockholders' equity rose to $72,364,798 as of November 30, 2025, compared to $72,148,754 as of August 31, 2025[20].