Q2 2024 Northern Technologies International Corp Earnings Call Transcript
Key Points
- Record second quarter ZERUST Oil and Gas sales and record quarterly Natur-Tec sales.
- Continued year-over-year improvement in gross margin, indicating successful initiatives aimed at improving profitability.
- Anticipation of continued profitability improvement and positive operating cash flow throughout the second half of fiscal 2024.
- Significant year-over-year increase in operating cash flow by nearly 156% to $5.6 million, primarily due to higher net income and positive changes in working capital.
- Fiscal 2024 second quarter net sales increased by 14.1% to a second quarter record of $20.8 million.
- Total net sales for the second quarter by joint ventures decreased year-over-year by 7.9% to $23.5 million.
- Mexico Germany, the largest joint venture, experienced a 5.6% decrease in net sales due to loss of a customer and softer demand within the region.
- Near-term economic conditions in China remain uncertain despite year-over-year increase in quarterly sales for NTIC China subsidiary.
- Total operating expenses for fiscal 2024 second quarter increased 9.4% to $8.6 million compared to the same period last fiscal year.
- While joint venture operating income increased, it was partially offset by lower joint venture sales.
As part of the discussion today, representatives from NTIC. will be making certain forward-looking statements regarding NTIC's future financial and operating results as well as their business plans, objectives and expectations.
Please be advised that these forward-looking statements are covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, and that NTIC desires to avail itself of the protection of the Safe Harbor from these statements. Please also be advised that the actual results could differ materially from those stated or implied by the forward-looking statements.
Due to certain risks and uncertainties, including those described in NTIC's most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q and recent press releases. Please read these reports and other future filings that NTIC will make with the SEC and TSE disclaims any duty to update or revise its forward-looking statements.
I will now turn the call over to NCRIC management.
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