EX-99.1 3 nt110590ex991.htm EXHIBIT 99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
ANNOUNCES INCREASES IN FISCAL YEAR 2007 SECOND QUARTER
SALES AND EARNINGS

CIRCLE PINES, Minnesota, April 11, 2007 - Northern Technologies International Corporation (AMEX: NTI) announced today an increase in operating results for the three and six months ended February 28, 2007.

NTIC’s net income for the three months ended February 28, 2007 increased 118.9% or $243,473 to $448,203 and $0.12 per share compared to $204,730 and $0.06 per share for the three months ended February 28, 2006. Additionally, net income for the six months ended February 28, 2007 increased 71.5% or $599,713 to $1,438,427 and $0.40 per share compared to $838,714 and $0.23 per share for the six months ended February 28, 2006.

NTI’s total worldwide sales from its international joint ventures increased 26.1% to $39,272,049 during the six months ended February 28, 2007 as compared to $31,153,683 during the same period in fiscal 2006. 

NTI’s net sales increased 2.9% and 3.9% during the three and six months ended February 28, 2007 as compared to the same periods in fiscal 2006 primarily as a result of the increase of React-NTI products to new and existing customers in North America offset by a slight decrease in net sales of Zerust® products.  Net sales of Zerust® products decreased $89,301 to $5,716,602 or the six months ended February 28, 2007 as compared to the same period in fiscal 2006.  Net sales of React-NTI products increased $412,248 to $2,785,667 for the six months ended February 28, 2007 as compared to the same period in fiscal 2006. 

NTIC’s working capital was $3,208,032 at February 28, 2007, including $240,554 in cash and cash equivalents. 

NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARY

 

 

Three Months Ended

 

Six Months Ended

 

 

 

 

 

 

 

February 28,
2007

 

February 28,
2006

 

February 28,
2007

 

February 28,
2006

 

 

 

 

 

 

 

NORTH AMERICAN OPERATIONS:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

3,884,895

 

$

3,775,693

 

$

8,502,269

 

$

8,179,322

 

Cost of goods sold

 

 

2,459,064

 

 

2,315,245

 

 

5,404,119

 

 

5,044,356

 

 

 

 

 

 

 

Gross profit

 

 

1,425,831

 

 

1,460,448

 

 

3,098,150

 

 

3,134,966

 

 

 

 

 

 

 

Operating expenses:

 

 

1,659,789

 

 

1,516,817

 

 

3,336,751

 

 

2,971,085

 

NORTH AMERICAN OPERATING (LOSS) INCOME

 

 

(233,958

)

 

(56,369

)

 

(238,601

)

 

163,881

 

INCOME FROM ALL CORPORATE JOINT

 

 

 

 

 

 

 

 

 

 

 

 

 

VENTURES AND HOLDING COMPANIES

 

 

866,625

 

 

314,851

 

 

1,318,436

 

 

992,845

 

INTEREST INCOME

 

 

766

 

 

1,178

 

 

1,701

 

 

27,979

 

INTEREST EXPENSE

 

 

(47,483

)

 

(31,857

)

 

(90,364

)

 

(35,506

)

OTHER INCOME

 

 

6,281

 

 

—  

 

 

8,374

 

 

—  

 

GAIN ON SALE OF ASSETS

 

 

1,700

 

 

—  

 

 

726,195

 

 

—  

 

MINORITY INTEREST

 

 

2,272

 

 

7,927

 

 

(7,314

)

 

(7,485

)

 

 

 

 

 

 

INCOME BEFORE INCOME TAX EXPENSE

 

 

596,203

 

 

235,730

 

 

1,718,427

 

 

1,141,714

 

INCOME TAX EXPENSE

 

 

148,000

 

 

31,000

 

 

280,000

 

 

303,000

 

 

 

 

 

 

 

NET INCOME

 

$

448,203

 

$

204,730

 

$

1,438,427

 

$

838,714

 

 

 

 

 

 

 

NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.12

 

$

0.06

 

$

0.40

 

$

0.23

 

 

 

 

 

 

 

Diluted

 

$

0.12

 

$

0.06

 

$

0.39

 

$

0.23

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSUMED OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

3,664,248

 

 

3,597,815

 

 

3,644,126

 

 

3,593,926

 

Diluted

 

 

3,690,260

 

 

3,628,594

 

 

3,679,023

 

 

3,618,101

 

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

 

 

February 28,
2007

 

August 31,
2006

 

 

 

 

 

Current assets

 

$

36,481,058

 

$

33,954,156

 

Total assets

 

 

42,967,257

 

 

39,030,247

 

Current liabilities

 

 

13,733,953

 

 

14,323,903

 

Non-current liabilities

 

 

3,522,544

 

 

1,496,557

 

Joint ventures’ equity

 

 

25,710,645

 

 

23,209,788

 

 

 

 

 

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

 

$

12,021,431

 

$

10,772,102

 

 

 

February 28, 2007

 

February 28, 2006

 

 

 

 

 

Net sales

 

$

39,272,049

 

$

31,153,683

 

Gross profit

 

 

18,925,025

 

 

14,703,559

 

Net income

 

 

3,133,779

 

 

2,742,286

 

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

 

$

1,629,734

 

$

1,315,326

 

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 2007, 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.

For more information, please contact Matthew Wolsfeld, CFO, Northern Technologies International Corporation, (763) 225-6600.