EX-99.1 3 nt110590ex991.htm EXHIBIT-99.1

Exhibit 99.1

Northern Technologies International Corporation
6680 N. Highway 49
Lino Lakes, MN 55014
www.ntic.com

FOR IMMEDIATE RELEASE

NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
ANNOUNCES INCREASE IN SECOND QUARTER FISCAL YEAR 2006
 SALES AND EARNINGS

LINO LAKES, Minnesota, April 11, 2006 - Northern Technologies International Corporation (AMEX: NTI) announced today its operating results for second quarter fiscal year 2006.

The Company’s net income increased $0.18 per share or 360% to $0.23 per share for the six months ended February 28, 2006 compared to $0.05 per share for the six months ended February 28, 2005.

The Company’s net sales increased $868,764 to $8,179,332 or 11.9% during the six months ended February 28, 2006 as compared to sales of $7,310,568 in the same period in fiscal 2005.  The increase is primarily as a result of the increase in net sales of traditional Zerust® products and of React-NTI products to new and existing customers. 

Total net sales of the Company’s worldwide joint ventures increased $2,737,420 or 9.6% to $31,153,683 during the six months ended February 28, 2006 as compared to $28,416,263 during the same period in fiscal 2005. 

The Company’s working capital was $3,446,821 at February 28, 2006, including $655,973 in cash and cash equivalents. 

About Northern Technologies International Corporation

The Company focuses on developing, marketing and selling proprietary environmentally responsible materials science based products and technical services in over 50 countries worldwide via a network of joint ventures.  In fiscal 2005, the Company’s primary revenues


derived from the sales of ZERUST® rust and corrosion inhibiting packaging products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets. During this same period, the Company also received revenues from sales of proprietary new technologies including anti-abrasion ink additives, as well as bio-based sintered metal mold release agents, bio-solvents, bio-emollients, bio-cleaners, bio-lubricants and fully bio-degradable plastic packaging.  In a concerted effort to extend the Company’s proprietary technologies, the Company engages in extensive scientific research and development programs in the areas of material science and corrosion protection.

NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARY

 

 

Three Months Ended

 

Six Months Ended

 

 

 

 

 

 

 

February 28,
2006

 

February 28,
2005

 

February 28,
2006

 

February 28,
2005

 

 

 

 

 

 

 

NORTH AMERICAN OPERATIONS:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

3,775,693

 

$

3,478,352

 

$

8,179,322

 

$

7,310,568

 

Cost of goods sold

 

 

2,315,245

 

 

1,988,460

 

 

5,044,356

 

 

4,348,048

 

 

 

 

 

 

 

Gross profit

 

 

1,460,448

 

 

1,489,892

 

 

3,134,966

 

 

2,962,520

 

 

 

 

 

 

 

Operating expenses:

 

 

1,516,817

 

 

1,636,030

 

 

2,971,085

 

 

3,215,552

 

 

 

 

 

 

 

NORTH AMERICAN OPERATING (LOSS) INCOME

 

 

(56,369

)

 

(146,138

)

 

163,881

 

 

(253,032

)

INCOME FROM ALL CORPORATE JOINT VENTURES AND HOLDING COMPANIES

 

 

314,851

 

 

49,613

 

 

992,845

 

 

389,598

 

INTEREST INCOME

 

 

1,178

 

 

31,617

 

 

27,979

 

 

45,648

 

INTEREST EXPENSE

 

 

(31,857

)

 

(3,314

)

 

(35,506

)

 

(3,314

)

MINORITY INTEREST

 

 

7,927

 

 

13,538

 

 

(7,485

)

 

(5,264

)

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAX (BENEFIT) EXPENSE

 

 

235,730

 

 

(54,684

)

 

1,141,714

 

 

173,636

 

INCOME TAX (BENEFIT) EXPENSE

 

 

31,000

 

 

107,000

 

 

303,000

 

 

(12,000

)

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

204,730

 

$

(161,684

)

$

858,713

 

$

185,636

 

 

 

 

 

 

 

NET INCOME (LOSS) PER COMMON SHARE: Basic

 

$

0.06

 

$

(0.05

)

$

0.23

 

$

0.05

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES  ASSUMED OUTSTANDING: Basic

 

 

3,597,815

 

 

3,581,992

 

 

3,593,926

 

 

3,581,992

 

Composite financial information from the audited and unaudited financial statements of NTIC’s joint ventures carried on the equity basis is summarized as follows:

 

 

February 28,
2006

 

August 31,
2005

 

 

 

 

 

Current assets

 

$

29,050,993

 

$

27,305,426

 

Total assets

 

 

35,338,298

 

 

33,839,267

 

Current liabilities

 

 

13,510,005

 

 

13,388,740

 

Noncurrent liabilities

 

 

2,390,198

 

 

2,249,904

 

Joint ventures’ equity

 

 

19,438,418

 

 

18,198,864

 

Northern Technologies International Corporation’s share of Corporate Joint Ventures’ equity

 

$

8,966,000

 

$

8,622,361

 


 

 

February 28,
2006

 

February 28,
2005

 

 

 

 

 

Net sales

 

$

31,153,683

 

$

28,416,263

 

Gross profit

 

 

14,703,559

 

 

13,735,319

 

Net income

 

 

2,742,286

 

 

1,685,108

 

Northern Technologies International Corporation’s share of equity in income of Corporate Joint Ventures

 

$

1,315,326

 

$

884,701

 

For more information, please contact Matthew Wolsfeld, CFO, Northern Technologies International Corporation, (651) 784-1250