Northern Technologies International Corporation Reports Financial Results for Third Quarter Fiscal 2024

Core Insights - The company reported a 210-basis point year-over-year improvement in gross profit for the third quarter of fiscal 2024, attributed to strategies addressing supply chain disruptions and raw material challenges [1] - NTIC is making strategic investments in operations to support growth opportunities, particularly in North America, Brazil, and India [1] - The overall outlook for fiscal 2024 is positive, with expectations of strong growth and profitability [1] Financial Performance - Consolidated net sales for the third quarter decreased 1.4% to $20,686,000 compared to $20,970,000 in the same period last year [22] - ZERUST® industrial net sales decreased 4.4% to $13,477,000, while ZERUST® oil and gas net sales saw a significant decline of 31.9% to $1,360,000 [21] - Natur-Tec® product net sales increased 20.1% to a record $5,849,000, driven by growth in North America and India [21][4] - Year-to-date net income attributable to NTIC was $3,573,000, or $0.36 per diluted share, compared to $1,973,000, or $0.20 per diluted share for the same period last fiscal year [7] Joint Ventures and Operating Income - Joint venture operating income decreased 3.6% to $2,609,000 for the three months ended May 31, 2024, primarily due to a decrease in net income at NTIC's joint venture in Germany [6] - Net sales of NTIC's joint ventures decreased 2.7% to $25,602,000 during the same period [6] Operating Expenses - Operating expenses as a percentage of net sales for the third quarter were 43.4%, up from 40.0% in the same period last year, primarily due to increased personnel expenses [24] - Year-to-date operating expenses as a percentage of net sales were 42.0%, compared to 40.8% for the same period last fiscal year [24] Cash Flow and Working Capital - Cash provided by operating activities increased 116% to $7,584,000 for the nine months ended May 31, 2024, compared to $3,506,000 for the same period last fiscal year [21] - The company reported working capital of $23,179,000 as of May 31, 2024, including $5,795,000 in cash and cash equivalents [25]