Northern Technologies International Corporation Reports Financial Results for Second Quarter Fiscal 2022

About this update from Northern Technologies International Corporation

[{"type":"text","content":"MINNEAPOLIS, April 07, 2022 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC), a leading developer of corrosion inhibiting products and services, as well as bio-based and biodegradable polymer resin compounds, today reported its financial results for the second quarter of fiscal 2022. Second quarter fiscal 2022 highlights include (with growth rates compared to second quarter of fiscal 2021, except as otherwise noted): Consolidated net sales increased 31.0% to a second quarter record $16,749,000ZERUST® net sales increased 27.6% to $13,118,000ZERUST® oil and gas net sales increased 60.1% to $578,000NTIC China net sales decreased 6.3% to $4,164,000Natur-Tec® product net sales increased 45.3% to $3,631,000Joint venture operating income decreased 35.9% to $2,170,000Net income attributable to NTIC decreased to $183,000, compared to $1,313,000 last yearNet income per diluted share attributable to NTIC was $0.02, compared to $0.13 per diluted share last yearNon-GAAP adjusted net income was $392,000 or $0.04 per diluted shareNTIC’s cash and cash equivalents were $7,488,000 as of February 28, 2022 “Strong demand across our product categories and many of our global markets drove us to record sales in the fiscal 2022 second quarter, with total net sales increasing 13.6%, when excluding incremental sales as a result of our recent acquisition of Zerust India. While second quarter and year-to-date profitability in North America and across our joint venture network felt the impact of higher raw material prices, freight, and labor expenses, profitability improved late in the second quarter as we built these factors into our pricing strategies. We believe our financial results will noticeably improve during the second half of fiscal 2022 thanks to these measures,” said G. Patrick Lynch, President and Chief Executive Officer of NTIC. During the first quarter of fiscal 2022, NTIC acquired the remaining 50% ownership interest in its Indian joint venture, Harita-NTI Limited (Zerust India) for USD $6.25 million in cash. Effective as of September 1, 2021, Zerust India’s sales and earnings were consolidated on the Company’s income statement. For the second quarter and first half of fiscal 2022, Zerust India contributed $2,230,000 and $4,680,000, respectively, in sales to NTIC’s consolidated net sales. NTIC’s consolidated...

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