Workflow
Northern Technologies International Corporation Reports Financial Results for First Quarter Fiscal 2025
NTICNorthern Technologies International (NTIC) Newsfilter·2025-01-08 22:00

Core Insights - Northern Technologies International Corporation (NTIC) reported record first-quarter consolidated sales of 21,338,000forfiscal2025,representinga5.721,338,000 for fiscal 2025, representing a 5.7% increase year-over-year from 20,182,000 in the same period last year [3][5] - The growth was primarily driven by strong sales in Natur-Tec® products, which saw a 22.8% increase, and stable performance in ZERUST® oil and gas and industrial sales [3][5] - NTIC's CEO expressed cautious optimism regarding the continued improvement in global trends within ZERUST® industrial markets throughout fiscal 2025 [1] Financial Performance - Consolidated net sales increased to 21,338,000,withZERUST®industrialnetsalesat21,338,000, with ZERUST® industrial net sales at 13,962,000 (up 0.4%) and ZERUST® oil and gas net sales at 1,514,000(up0.71,514,000 (up 0.7%) [5][21] - Natur-Tec® product net sales reached a record of 5,863,000, marking a significant increase of 22.8% [5][21] - NTIC China reported its highest quarterly sales in nearly three years, amounting to 3,995,000,anincreaseof8.63,995,000, an increase of 8.6% [5] Operating Expenses and Profitability - Operating expenses rose by 14.0% year-over-year to 9,470,000, primarily due to strategic investments in ZERUST® oil and gas sales infrastructure [2][5] - Gross profit margin improved by 200 basis points to 38.3%, reflecting successful quality system improvement initiatives [2][5] - Net income attributable to NTIC decreased to 561,000,or561,000, or 0.06 per diluted share, compared to 896,000,or896,000, or 0.09 per diluted share in the prior year [8][21] Joint Ventures and Cash Flow - Joint venture operating income increased by 2.7% to 2,414,000,withnetsalesfromjointventuresrisingby1.22,414,000, with net sales from joint ventures rising by 1.2% to 23,837,000 [6][21] - Cash provided by operating activities for the first quarter was 2,395,000,indicatingstrongoperationalcashflow[5]BalanceSheetStrengthAsofNovember30,2024,NTICsworkingcapitalstoodat2,395,000, indicating strong operational cash flow [5] Balance Sheet Strength - As of November 30, 2024, NTIC's working capital stood at 22,183,000, with cash and cash equivalents of 5,570,000[9][18]Thecompanymaintainedastrongbalancesheet,withtotalassetsof5,570,000 [9][18] - The company maintained a strong balance sheet, with total assets of 94,037,655 and total liabilities of $19,730,606 [9][19]