MINNEAPOLIS, Nov. 20, 2013 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (Nasdaq:NTIC) today reported its financial results for the three months ended August 31, 2013 and fiscal 2013.
NTIC's consolidated net sales increased 18% to $6.1 million during the three months ended August 31, 2013 compared to $5.2 million during the same period in fiscal 2012 primarily due to an increase in demand for our ZERUST® corrosion solutions. Additionally, net income attributable to NTIC increased 276% to $1.6 million, or $0.36 per diluted common share, for the three months ended August 31, 2013 compared to $429,000, or $0.10 per diluted common share, for the same period in fiscal 2012. This increase was primarily the result of an increase in sales and correlating gross profit, as well as the receipt of $750,000 in life insurance proceeds as a result of the death of a former NTIC officer. Net income per diluted common share for the most recent period was benefited by $0.12 as a result of the receipt of the life insurance proceeds.
NTIC's consolidated net sales decreased 1.2% during fiscal 2013 compared to fiscal 2012 to $22.5 million due primarily to a $2.1 million dip in product sales in Brazil. Zerust Brazil recorded $537,000 in sales to Petroleo Brasileiro S.A. (Petrobras) during fiscal 2013 compared to $2.5 million during fiscal 2012. As previously disclosed, during fiscal 2013, Zerust Brazil signed a Phase 3 contract with Petrobras to supply $3.7 million in ZERUST ® products, $347,000 of which had been delivered through the end of fiscal 2013. NTIC believes that Petrobras intends to place more frequent orders during fiscal 2014 under this Phase 3 contract, rather than one large order as Petrobras did under a Phase 2 contract during fiscal 2012."During fiscal 2013, despite a dip in our total net sales, we achieved several key objectives in all three of the market segments that NTIC serves. Our competitive position, operations and balance sheet are all stronger today than they were a year ago," said G. Patrick Lynch, President and Chief Executive Officer of NTIC. "The unexpected delay in the Petrobras contract was partially offset by strong demand for both our expanded range of ZERUST® corrosion solutions as well as for our Natur-Tec® bio-plastic products in North America. In fact, we compared our fourth quarter net sales for fiscal 2013 to each of our prior four consecutive quarters and are pleased to report that our $6.1 million dollars in net sales for fourth quarter exceeded our consolidated net sales for each of our prior four consecutive quarters," continued Mr. Lynch. "Furthermore, sales by our joint ventures during fourth quarter of fiscal 2013 were up 9.7% from third quarter in fiscal 2013 and up 6% from fourth quarter of fiscal 2012." During fiscal 2013, 90.9% of NTIC's consolidated net sales were derived from sales of ZERUST® products and services, which decreased 2.5% to $20.5 million during fiscal 2013 compared to $21.0 million during fiscal 2012 due primarily to a decrease in sales of ZERUST® products and services in Brazil as noted above. NTIC has strategically focused its sales efforts for ZERUST® products and services on customers with sizeable corrosion problems in industry sectors that offer sizable growth opportunities, including the oil and gas sector. NTIC's consolidated net sales for fiscal 2013 included $2.4 million of sales made by Zerust Brazil, and of those sales, $537,268 in sales were made to the oil and gas industry sector in Brazil.