Detrex Corporation Reports Sales And Earnings For The Third Quarter Of 2016, Announces The Relocation Of Corporate Headquarters, And A Fourth Quarter Dividend Of $0.25 Per Share

Detrex Corporation (OTCQX:DTRX), today announced 2016 third quarter net income of $361,483, or $0.21 per fully diluted share, and year-to-date net income of $903,361, or $0.53 per fully diluted share. This compares to 2015 third quarter net income of $513,981, or $0.30 per fully diluted share, and 2015 year-to-date net income of $1,888,525, or $1.09 per fully diluted share. The Company also announced that it will pay a fourth quarter dividend of $0.25 per share on December 22, 2016 to shareholders of record as of December 8, 2016.

The Company relocated its corporate headquarters from Southfield, Michigan to Elco's offices in Cleveland, Ohio. This is anticipated to improve the Company's long term performance with cost savings from elimination of positions and improved efficiencies. Moving and personnel related costs of $422,000 were charged to administrative expense in the third quarter, and year to date these expenses total $701,600.

In conjunction with the Corporate relocation several personnel changes have been made. Bob Lunoe, Elco's VP of Finance, has also been appointed to Vice President and Treasurer of Detrex. John Hensien of Clark Hill has been named Corporate Secretary. Bob Currie, after 23 years with Detrex, has retired from the Company as Vice President, General Counsel, and Secretary-Treasurer. We thank him and wish him well.

Third quarter revenues of $9.8 million were essentially unchanged from the prior year, and were an improvement over prior quarters. Domestic demand in the metalworking and industrial markets continues to be below year ago levels, while international performance was relatively strong in spite of the impact of the strong dollar. Year-to-date revenues of $28.1 million were also below last year's level of $30.6 million due to soft conditions in the first two quarters.

"We are pleased with Elco's steady performance improvement in the challenging industrial lubricants market. The recent move to consolidate Corporate administrative functions into Elco's infrastructure will streamline overall Company costs for the future." said President and CEO Tom Mark. "We remain in the process of evaluating strategic opportunities to generate shareholder value and will keep you informed of our progress."

About Detrex Corporation

Founded in 1925, Detrex Corporation through its subsidiary The Elco Corporation is a leading manufacturer of high performance specialty chemicals including additives for industrial petroleum products and high purity hydrochloric acid.

Forward Looking Statements

Statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "1995 Act"). The words "believe," "expect," "anticipate," "estimate," "guidance," "target" and similar expressions identify forward-looking statements. The Company cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in the forward-looking statements. Certain risks and uncertainties are identified from time to time in the Company's reports. Some factors that could cause results to differ materially from those projected in the forward-looking statements include: market conditions, environmental remediation costs, pension expense and funding requirements, liquidation value of assets, and marketability of real estate and the market value and future liquidity of Detrex stock. The Company claims the protection of the safe harbor for forward-looking statements contained in the 1995 Act.
 
Detrex Corporation and Subsidiaries
Condensed Consolidated Statement of Operations
(unaudited, in thousands)
           
Three Months Ended Year to date
September 30 September 30

2016

2015

2016

2015
 
Net sales $ 9,762 $ 9,717 $ 28,078 $ 30,614
 
Cost of sales 6,611 6,768 19,179 21,159
Selling, general and administrative expense 1,801 1,729 5,687 5,462
Restructuring costs 422 - 702 -
Provision for depreciation and amortization 348 340 1,044 1,020
Provision for corporate environmental reserves - - - -
Interest Expense 20 24 63 75
Other (Income) Expense, net   13   16   35   36
Income from continuing operations
before income taxes 547 840 1,368 2,862
 
Provision for income taxes   186   326   465   973
 
Net income $ 361 $ 514 $ 903 $ 1,889
 
 
 
Basic earnings (loss) per common share: $ 0.21 $ 0.31 $ 0.53 $ 1.13
 
Fully diluted earnings (loss) per common share: $ 0.21 $ 0.30 $ 0.53 $ 1.09
 
Shares outstanding,basic 1,698 1,676 1,698 1,676
Shares outstanding,fully diluted 1,704 1,726 1,704 1,726
 
 
Condensed Consolidated Balance Sheets
(unaudited - in thousands)
 
Sept 30 Dec 31

2016

2015
Assets
 
Current Assets $ 12,852 $ 12,816
 
Property and equipment, net 8,733 9,144
 
Other Assets 190 368
   
Total assets $ 21,775 $ 22,328
 
Liabilities and stockholders' equity
 
Current liabilities $ 5,171 $ 4,421
 
Non-current liabilities 6,303 7,113
 
Stockholders' equity 10,301 10,794
   
Total liabilities and stockholders' equity $ 21,775 $ 22,328
 

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