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Northern Technologies International Corporation Reports Increased Sales For First Quarter Fiscal 2013

The Northern Technologies International Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5481

Forward-Looking Statements

Statements contained in this press release that are not historical information are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. Such statements include NTIC's expectations regarding its future financial performance and other statements that can be identified by words such as "believe s ," "anticipate s ," "expect s ," "intend s ," "continue," "potential," "outlook," "will," "would," "should," "guidance" or words of similar meaning, the use of future date and any other statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of NTIC's management and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Such potential risks and uncertainties include, but are not limited to, in no particular order: NTIC's dependence on the success of its joint ventures and fees and dividend distributions that NTIC receives from them; NTIC's relationships with its joint ventures and its ability to maintain those relationships; risks related to the European sovereign debt crisis, economic slowdown and political unrest; risks associated with NTIC's international operations; exposure to fluctuations in foreign currency exchange rates; the health of the U.S. and worldwide economies, including in particular the U.S. automotive industry; the level of growth in NTIC's markets; NTIC's investments in research and development efforts; acceptance of existing and new products; increased competition; the costs and effects of complying with changes in tax, fiscal, government and other regulatory policies, including rules relating to environmental, health and safety matters; and NTIC's reliance on its intellectual property rights and the absence of infringement of the intellectual property rights of others. More detailed information on these and additional factors which could affect NTIC's operating and financial results is described in the company's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q . NTIC urges all interested parties to read these reports to gain a better understanding of the many business and other risks that the company faces. Additionally, NTIC undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.

     
NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AS OF NOVEMBER 30, 2012 (UNAUDITED)
AND AUGUST 31, 2012 (AUDITED)
  November 30, 2012 August 31, 2012
ASSETS    
CURRENT ASSETS:    
Cash and cash equivalents $ 6,819,036 $ 4,137,547
Receivables:    
Trade excluding joint ventures, less allowance for doubtful accounts of $20,000 at November 30, 2012 and August 31, 2012 2,684,239 2,516,961
Trade joint ventures 942,500 734,543
Fees for services provided to joint ventures 2,328,455 1,316,933
Income taxes 253,759 58,129
Inventories 4,989,833 4,151,197
Prepaid expenses 698,808 548,331
Deferred income taxes 596,085 596,085
Total current assets 19,312,715 14,059,726
     
PROPERTY AND EQUIPMENT, NET 4,238,359 4,288,618
     
OTHER ASSETS:    
Investments in joint ventures 21,435,223 21,461,492
Deferred income taxes 1,030,610 1,030,610
Patents and trademarks, net 1,012,401 961,181
Other 76,000 76,000
Total other assets 23,554,234 23,529,283
Total assets $ 47,105,308 $ 41,877,627
     
LIABILITIES AND EQUITY    
CURRENT LIABILITIES:    
Current portion of note payable 76,119 76,120
Accounts payable 1,810,330 1,818,309
Accrued liabilities:    
Payroll and related benefits 1,699,938 1,565,866
Deferred joint venture royalties 288,000 288,000
Other 131,457 251,350
Total current liabilities 4,005,844 3,999,645
     
NOTE PAYABLE, NET OF CURRENT PORTION (Note 7) 914,384 933,413
     
COMMITMENTS AND CONTINGENCIES (Note 13)    
     
EQUITY:    
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding
Common stock, $0.02 par value per share; authorized 10,000,000 shares; issued and outstanding 4,418,821 and 4,403,656, respectively 88,351 88,073
Additional paid-in capital 11,305,834 11,130,966
Retained earnings 25,649,655 25,260,034
Accumulated other comprehensive income 664,247 277,583
Stockholders' equity 37,708,087 36,756,656
Non-controlling interest 4,476,993 187,913
Total equity 42,185,080 36,944,569
Total liabilities and equity $ 47,105,308 $ 41,877,627
     
 
NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2012 AND 2011
  Three Months Ended
  November 30, 2012 November 30, 2011
NET SALES:    
Net sales, excluding joint ventures $ 4,770,387 $ 4,277,643
Net sales, to joint ventures 521,360 554,471
Total net sales 5,291,747 4,832,114
     
Cost of goods sold 3,690,972 3,209,476
Gross profit 1,600,775 1,622,638
     
JOINT VENTURE OPERATIONS:    
Equity in income of joint ventures 1,154,296 1,357,680
Fees for services provided to joint ventures 1,846,277 1,445,252
Total joint venture operations 3,000,573 2,802,932
     
OPERATING EXPENSES:    
Selling expenses 1,171,095 1,108,486
General and administrative expenses 1,248,696 1,270,013
Expenses incurred in support of joint ventures 369,687 200,264
Research and development expenses 938,206 814,305
Total operating expenses 3,727,684 3,393,068
     
OPERATING INCOME 873,664 1,032,502
     
INTEREST INCOME 25,346 8,060
INTEREST EXPENSE (6,474) (5,966)
OTHER INCOME 6,825
     
INCOME BEFORE INCOME TAX EXPENSE 892,536 1,041,421
     
INCOME TAX EXPENSE 134,000 106,000
     
NET INCOME   758,536  935,421
     
NET INCOME (LOSS) ATTRIBUTABLE TO  NON CONTROLLING INTEREST  368,914  (23,336)
     
NET INCOME ATTRIBUTABLE TO NTIC $ 389,622 $ 958,757
     
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:    
Basic $ 0.09 $ 0.22
Diluted $ 0.09 $ 0.22
     
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:    
Basic  4,406,205  4,355,666
Diluted  4,440,436  4,433,724
     
   
NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPRENSIVE INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2012 AND 2011
  Three Months Ended
  November 30, 2012 November 30, 2011
     
NET INCOME $  758,536  $ 935,421  
OTHER COMPREHENSIVE INCOME (LOSS) – FOREIGN CURRENCY TRANSLATION ADJUSTMENT 421,185  (1,188,071)
     
COMPREHENSIVE INCOME (LOSS)  1,179,721    (252,650)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 403,435 (33,142)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO STOCKHOLDERS $ 776,286 $  (219,508)
     
 
NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED NOVEMBER 30, 2012 AND 2011
  Three Months Ended
  November 30, 2012 November 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 758,536 $ 935,421
Adjustments to reconcile net income to net cash used in operating activities:    
Expensing of fair value of stock options vested 43,393 72,523
Depreciation expense 105,688 80,887
Amortization expense 17,445 38,713
Equity in income from joint ventures (1,154,297) (1,357,680)
Changes in current assets and liabilities:    
Receivables:    
Trade, excluding joint ventures (205,361) (410,029)
Trade, joint ventures (207,957) 144,157
Fees for services receivables, joint ventures 330,564 (38,883)
Income taxes (196,635) (1,396)
Inventories (865,175) (158,234)
Prepaid expenses and other (151,029) (349,112)
Accounts payable 24,296 (489,032)
Income tax payable 4,191 (17,512)
Accrued liabilities 22,201 (235,365)
Net cash used in operating activities (1,474,140) (1,785,543)
     
CASH FLOWS FROM INVESTING ACTIVITIES:    
Dividends received from joint ventures 2,676,337 2,031,450
Additions to property and equipment (67,165) (51,031)
Effect of NTI Asean consolidation on cash (Note 2) 1,612,768
Additions to patents (68,665) (44,702)
Net cash provided by investing activities 4,153,275 1,935,717
     
CASH FLOWS FROM FINANCING ACTIVITIES:    
Repayment of note payable (19,030) (19,029)
Dividend received by non-controlling interest (72,842)
Proceeds from employee stock purchase plan 28,938 22,414
Proceeds from exercise of stock options 102,815
Net cash provided by financing activities 39,881 3,385
     
EFFECT OF EXCHANGE RATE CHANGES ON CASH: (37,527) (12,550)
     
NET INCREASE IN CASH AND CASH EQUIVALENTS 2,681,489 141,009
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 4,137,547 3,266,362
     
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 6,819,036 $ 3,407,371
     
CONTACT: Investor and Media Contacts:
         Matthew Wolsfeld, CFO
         NTIC
         (763) 225-6600

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Stock quotes in this article: NTIC 

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