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Northern Technologies International Corporation Reports Financial Results for Fourth Quarter and Full Year Fiscal 2022

Northern Technologies International Corporation
Northern Technologies International Corporation

MINNEAPOLIS, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC), a leading developer of corrosion inhibiting products and services, as well as bio-based and biodegradable polymer resin compounds, today reported its financial results for the fourth quarter and fiscal year ended August 31, 2022.

Full year fiscal 2022 financial and operating highlights include (with growth rates on a fiscal year-over-year basis):

  • Consolidated net sales increased 31.3% to a record $74,159,000

  • Consolidated net sales increased 13.6%, excluding sales as a result of the September 2021 acquisition of the remaining 50% ownership in NTIC’s Indian Joint Venture

  • ZERUST® net sales increased 26.1% to $57,459,000

  • ZERUST® oil and gas net sales increased 21.5% to $4,608,000

  • NTIC China net sales decreased 9.2% to $15,754,000

  • Natur-Tec® product net sales increased 52.7% to $16,700,000

  • Joint venture operating income decreased 21.9% to $10,494,000

  • Net income attributable to NTIC increased to $6,325,000, compared to $6,281,000 last year

  • Net income per diluted share attributable to NTIC was $0.66, compared to $0.64 per share last year

  • NTIC’s cash and cash equivalents were $5,334,000 as of August 31, 2022

“NTIC achieved record sales in fiscal 2022, thanks to strong demand for Zerust Industrial products and services in North America, as well as for Natur-Tec and Zerust Oil & Gas products both in the U.S. and abroad. It’s important to also note the benefit NTIC received from acquiring our remaining 50% ownership interest of Zerust India at the start of fiscal 2022. These positives helped NTIC successfully navigate an otherwise very complex business environment throughout fiscal 2022, which brought supply chain issues, significant raw material cost increases, and challenges across our European and Asian markets. In turn, we believe positive market momentum will continue to be favorable in fiscal 2023, and that our long-term growth strategies, focused on providing our customers innovative solutions and global services, while diversifying our end markets, are being properly executed,” said G. Patrick Lynch, President and Chief Executive Officer of NTIC.

“As we enter fiscal 2023, momentum remains strong across our North American Zerust Industrial market, as well as global Zerust Oil & Gas and Natur-Tec markets, which we expect will help NTIC continue to offset near-term uncertainty within our European and Asian markets. In addition, we expect our annual profitability to improve in fiscal 2023 as we continue to focus on rebuilding our margins,” concluded Mr. Lynch.

NTIC’s consolidated net sales increased 30.5% to $20,252,000 during the three months ended August 31, 2022, compared to $15,513,000 for the three months ended August 31, 2021. The year-over-year increase in consolidated net sales was primarily due to sales growth within the Company’s Zerust Industrial and Natur-Tec product categories, as a result of higher global demand and the recovery from the COVID-19 pandemic. For the full year ended August 31, 2022, consolidated net sales increased 31.3% to $74,159,000, compared to $56,494,000 for the prior fiscal year.

The following tables set forth NTIC’s net sales by product category for the three months and fiscal year ended August 31, 2022, and August 31, 2021 by segment:

 

Three Months Ended

 

August 31,
2022

 

% of Net Sales

 

August 31,
2021

 

% of Net Sales

 

% Change

ZERUST® industrial net sales

$

13,202,204

 

 

65.2

%

 

$

10,163,474

 

 

65.5

%

 

29.9

%

ZERUST® joint venture net sales

 

715,470

 

 

3.5

%

 

 

662,032

 

 

4.3

%

 

8.1

%

ZERUST® oil & gas net sales

 

1,553,314

 

 

7.7

%

 

 

1,846,046

 

 

11.9

%

 

(15.9

)%

Total ZERUST® net sales

$

15,470,988

 

 

76.4

%

 

$

12,671,552

 

 

81.7

%

 

22.1

%

Total Natur-Tec® net sales

 

4,780,929

 

 

23.6

%

 

 

2,841,749

 

 

18.3

%

 

68.2

%

Total net sales

$

20,251,917

 

 

100.0

%

 

$

15,513,301

 

 

100.0

%

 

30.5

%


 

Fiscal Year Ended

 

August 31,
2022

 

% of Net Sales

 

August 31,
2021

 

% of Net Sales

 

% Change

ZERUST® industrial net sales

$

49,883,060

 

 

67.3

%

 

$

38,737,771

 

 

68.6

%

 

28.8

%

ZERUST® joint venture net sales

 

2,968,090

 

 

4.0

%

 

 

3,023,197

 

 

5.4

%

 

(1.8

)%

ZERUST® oil & gas net sales

 

4,608,232

 

 

6.2

%

 

 

3,793,466

 

 

6.7

%

 

21.5

%

Total ZERUST® net sales

$

57,459,382

 

 

77.5

%

 

$

45,554,434

 

 

80.6

%

 

26.1

%

Total Natur-Tec® net sales

 

16,699,508

 

 

22.5

%

 

 

10,939,385

 

 

19.4

%

 

52.7

%

Total net sales

$

74,158,890

 

 

100.0

%

 

$

56,493,819

 

 

100.0

%

 

31.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTIC’s joint venture operating income decreased 8.1% to $2,996,000 during the three months ended August 31, 2022, compared to joint venture operating income of $3,261,000 during the three months ended August 31, 2021. This decrease was attributable to a corresponding reduction in total net sales of the joint ventures as fees for services provided to joint ventures are primarily a function of the net sales of NTIC’s joint ventures, which decreased 22.0% to $25,859,000 during the three months ended August 31, 2022, compared to $33,159,000 for the three months ended August 31, 2021. The decrease was partially offset by $682,000 in the recovery of previously written-off fees for services related to the termination of its joint venture in China in fiscal 2015.

For fiscal 2022, NTIC’s joint venture operating income decreased 21.9% to $10,494,000, compared to joint venture operating income of $13,429,000 during the full year ended August 31, 2021. Net sales at NTIC’s joint ventures decreased 14.0% to $104,078,000 during the full year ended August 31, 2022, compared to $120,955,000 for the full year ended August 31, 2021.

Operating expenses, as a percent of net sales, for the fourth quarter of fiscal 2022 were 37.1%, compared to 42.5% for the same period last fiscal year. This improvement in operating leverage was due to higher fourth quarter fiscal 2022 sales and NTIC’s continued focus on controlling operating expenses. For the full fiscal year 2022, operating expenses, as a percent of net sales, were 38.3% compared to 43.7% for last fiscal year.

The Company reported net income attributable to NTIC for the fourth quarter of fiscal 2022 of $648,000, or $0.07 per diluted share, compared to net income of $1,652,000, or $0.17 per diluted share for the same period last fiscal year. For the full year ended August 31, 2022, net income attributable to NTIC increased to $6,325,000, or $0.66 per diluted share, compared to net income of $6,281,000, or $0.64 per diluted share for last fiscal year.

Non-GAAP adjusted net income, as set forth in the GAAP reconciliation at the end of this release, was $753,000, or $0.08 per diluted share, for the fourth quarter of fiscal 2022, compared to $1,652,000, or $0.17 per diluted share, for the same quarter last fiscal year. For the full year ended August 31, 2022, NTIC’s non-GAAP adjusted net income, as set forth in the GAAP reconciliation at the end of this release, was $3,031,000, or $0.32 per diluted share, compared to $6,281,000, or $0.64 per diluted share, for last fiscal year.

NTIC’s consolidated balance sheet remains strong, with working capital of $23,169,000 as of August 31, 2022, including $5,334,000 in cash and cash equivalents, $6,000 in available for sale securities, and an outstanding revolving line of credit balance of $5,900,000, compared to $25,231,000 of working capital as of August 31, 2021, including $7,681,000 in cash and cash equivalents and $5,000 in available for sale securities, and no outstanding line of credit balance.

At August 31, 2022, the Company had $21,815,000 of investments in joint ventures, of which $10,975,000 or 50.3%, is cash, with the remaining balance mostly made up of other working capital.

Conference Call and Webcast

NTIC will host a conference call today at 8:00 a.m. Central Time to review its results of operations for the fourth quarter and full fiscal year of 2022 and its outlook, followed by a question-and-answer session. The conference call will be available to interested parties through a webcast. To join the live call and ask a question, a participant must register using the URL below.

https://register.vevent.com/register/BIcc418f5936ab45b19aa57734cfde6878

Once registered, the participant will receive a dial-in number and unique PIN number to access the call.

The audio-only webcast can be accessed at the following link: https://edge.media-server.com/mmc/p/cdygiufv. A link to the webcast is also available on the Investor Relations section of NTIC’s webpage. Participants are advised to go to the website at least 15 minutes early to register, download and install any necessary audio software. For those unable to participate in the live webcast, a replay of the webcast will be archived and accessible for approximately one year on the Investor Relations section of NTIC’s webpage.

About Northern Technologies International Corporation

Northern Technologies International Corporation develops and markets proprietary, environmentally beneficial products and services in over 60 countries either directly or via a network of subsidiaries, joint ventures, independent distributors and agents. NTIC’s primary business is corrosion prevention marketed mainly under the ZERUST® brand. NTIC has been selling its proprietary ZERUST® rust and corrosion inhibiting products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets for almost 50 years and more recently has also expanded into the oil and gas industry. NTIC offers worldwide on-site technical consulting for rust and corrosion prevention issues. NTIC’s technical service consultants work directly with the end users of NTIC’s products to analyze their specific needs and develop systems to meet their technical requirements. NTIC also markets and sells a portfolio of bio-based and biodegradable polymer resin compounds and finished products marketed under the Natur-Tec® brand.

Forward-Looking Statements

Statements contained in this release that are not historical information are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include NTIC’s belief that positive market momentum will continue to be favorable in fiscal 2023 annual profitability will improve in fiscal 2023 as NTIC continues to focus on rebuilding its margins and other statements that can be identified by words such as “believes,” “continues,” “expects,” “anticipates,” “intends,” “potential,” “outlook,” “will,” “may,” “would,” “should,” “guidance” or words of similar meaning, and the use of future dates. Such forward-looking statements are based upon the current beliefs and expectations of NTIC’s management and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Such potential risks and uncertainties include, but are not limited to, in no particular order: the effects of the COVID-19 pandemic on NTIC’s business and operating results; the effects of supply chain and shipping issues on NTIC’s business and operating results; the health of the U.S. and worldwide economies, including in particular the U.S. automotive industry; the effect of economic uncertainty and trade disputes; NTIC’s dependence on its joint ventures, including in particular in Germany, its relationships with its joint venture partners and the success of its joint ventures, including fees and dividend distributions that NTIC receives from them; risks associated with NTIC’s international operations, including its NTIC China operations, its acquisition of the remaining 50% ownership interest in Zerust India, the United Kingdom’s exit from the European Union and exposure to fluctuations in foreign currency exchange rates and tariffs, including in particular the Euro compared to the U.S. dollar; the effect of inflation, an economic slowdown and possible recession and political unrest, including the current conflict between Russia and Ukraine; the level of growth in NTIC’s markets; NTIC’s investments in research and development efforts; acceptance of existing and new products; timing of NTIC’s receipt of purchase orders under supply contracts; variability in sales to customers in the oil and gas industry and the effect on NTIC’s quarterly financial results; increased competition; the costs and effects of complying with changes in tax, fiscal, government and other regulatory policies, and rules relating to environmental, health and safety matters; pending and potential litigation; and NTIC’s reliance on its intellectual property rights and the absence of infringement of the intellectual property rights of others. More detailed information on these and additional factors which could affect NTIC’s operating and financial results is described in the Company’s filings with the Securities and Exchange Commission (SEC), including its annual report on Form 10-K for the fiscal year ended August 31, 2021 and subsequent quarterly reports on Form 10-Q, as well as its annual report on Form 10-K for the fiscal year ended August 31, 2022 to be filed with the SEC. NTIC urges all interested parties to read these reports to gain a better understanding of the many business and other risks that the Company faces. Additionally, NTIC undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.

Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures, including net sales, excluding net sales attributable to Zerust India, adjusted net income attributable to NTIC and adjusted net income attributable to NTIC per diluted share. The reasons for the use of these measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures and other information relating to these measures are included below following the unaudited condensed consolidated financial statements. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for NTIC’s financial results prepared in accordance with GAAP.


NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION

AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - AUGUST 31, 2022 AND 2021       

 

 

 

 

August 31, 2022

 

August 31, 2021

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,333,890

 

 

$

7,680,641

 

 

 

Available for sale securities

 

 

5,590

 

 

 

4,634

 

 

 

Receivables:

 

 

 

 

 

 

Trade excluding joint ventures, less allowance for doubtful accounts of $439,000 as of August 31, 2022 and $382,000 as of August 31, 2021

 

 

14,136,930

 

 

 

11,128,805

 

 

 

Trade, joint ventures

 

 

697,861

 

 

 

624,808

 

 

 

Fees for services provided to joint ventures

 

 

1,765,117

 

 

 

1,505,127

 

 

 

Income taxes

 

 

 

 

 

386,574

 

 

 

Inventories

 

 

16,341,729

 

 

 

11,114,207

 

 

 

Prepaid expenses

 

 

1,953,764

 

 

 

1,302,293

 

 

 

Total current assets

 

 

40,234,881

 

 

 

33,747,089

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

 

12,170,493

 

 

 

11,821,458

 

 

 

 

 

 

 

 

 

OTHER ASSETS:

 

 

 

 

 

 

Investments in joint ventures

 

 

21,814,754

 

 

 

27,623,768

 

 

 

Deferred income taxes

 

 

 

 

 

92,554

 

 

 

Patents and trademarks, net

 

 

710,011

 

 

 

709,572

 

 

 

Goodwill

 

 

4,782,376

 

 

 

 

 

 

Intangible asset, net

 

 

5,923,867

 

 

 

 

 

 

Operating lease right of use asset

 

 

557,571

 

 

 

376,438

 

 

 

Total other assets

 

 

33,788,579

 

 

 

28,802,332

 

 

 

Total assets

 

$

86,193,953

 

 

$

74,370,879

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Accounts payable

 

$

7,796,494

 

 

$

4,290,972

 

 

 

Line of credit

 

 

5,900,000

 

 

 

 

 

 

Income taxes payable

 

 

30,742

 

 

 

178,923

 

 

 

Accrued liabilities:

 

 

 

 

 

 

Payroll and related benefits

 

 

2,297,543

 

 

 

2,879,468

 

 

 

Other

 

 

667,292

 

 

 

894,497

 

 

 

Current portion of operating lease

 

 

373,330

 

 

 

272,336

 

 

 

Total current liabilities

 

 

17,065,401

 

 

 

8,516,196

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

 

 

Deferred income tax, net

 

 

1,700,015

 

 

 

 

 

 

Operating lease, less current portion

 

 

184,241

 

 

 

104,102

 

 

 

Total long-term liabilities

 

 

1,884,256

 

 

 

104,102

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES (Note 17)

 

 

 

 

 

EQUITY:

 

 

 

 

 

 

Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding

 

 

 

 

 

 

 

 

Common stock, $0.02 par value per share; authorized 15,000,000 shares as of August 31, 2022 and August 31, 2021; issued and outstanding 9,232,483 and 9,184,811, respectively

 

 

184,650

 

 

 

183,696

 

 

 

Additional paid-in capital

 

 

19,939,131

 

 

 

18,736,268

 

 

 

Retained earnings

 

 

50,716,613

 

 

 

46,973,092

 

 

 

Accumulated other comprehensive loss

 

 

(7,245,132

)

 

 

(3,525,030

)

 

 

Stockholders’ equity

 

 

63,595,262

 

 

 

62,368,026

 

 

 

Non-controlling interests

 

 

3,649,034

 

 

 

3,382,555

 

 

 

Total equity

 

 

67,244,296

 

 

 

65,750,581

 

 

 

Total liabilities and equity

 

$

86,193,953

 

 

$

74,370,879

 


NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND TWELVE MONTHS ENDED AUGUST 31, 2022 AND 2021

 

Three Months Ended

 

Twelve Months Ended

 

August 31, 2022

 

August 31, 2021

 

August 31, 2022

 

August 31, 2021

NET SALES:

 

 

 

 

 

 

 

Net sales, excluding joint ventures

$

19,536,446

 

 

$

14,851,270

 

 

$

71,190,801

 

 

$

53,470,623

 

Net sales, to joint ventures

 

715,471

 

 

 

662,031

 

 

 

2,968,089

 

 

 

3,023,196

 

Total net sales

 

20,251,917

 

 

 

15,513,301

 

 

 

74,158,890

 

 

 

56,493,819

 

Cost of goods sold

 

14,112,679

 

 

 

9,923,232

 

 

 

51,090,298

 

 

 

36,920,814

 

Gross profit

 

6,139,238

 

 

 

5,590,069

 

 

 

23,068,592

 

 

 

19,573,005

 

 

 

 

 

 

 

 

 

JOINT VENTURE OPERATIONS:

 

 

 

 

 

 

 

Equity in income of joint ventures

 

1,063,740

 

 

 

1,685,954

 

 

 

4,725,918

 

 

 

7,465,214

 

Fees for services provided to joint ventures

 

1,931,927

 

 

 

1,575,394

 

 

 

5,767,682

 

 

 

5,964,260

 

Total joint venture operations

 

2,995,667

 

 

 

3,261,348

 

 

 

10,493,600

 

 

 

13,429,474

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

Selling expenses

 

3,378,723

 

 

 

3,271,541

 

 

 

13,038,180

 

 

 

12,016,974

 

General and administrative expenses

 

2,924,981

 

 

 

2,137,022

 

 

 

10,600,603

 

 

 

8,262,173

 

Research and development expenses

 

1,217,897

 

 

 

1,183,069

 

 

 

4,775,334

 

 

 

4,400,479

 

Total operating expenses

 

7,521,601

 

 

 

6,591,632

 

 

 

28,414,117

 

 

 

24,679,626

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

1,613,304

 

 

 

2,259,785

 

 

 

5,148,075

 

 

 

8,322,853

 

 

 

 

 

 

 

 

 

REMEASUREMENT GAIN ON ACQUISITION OF EQUITY METHOD INVESTEE

 

 

 

 

 

 

 

3,951,550

 

 

 

 

INTEREST INCOME

 

12,464

 

 

 

56,023

 

 

 

49,241

 

 

 

151,875

 

INTEREST EXPENSE

 

(55,018

)

 

 

(5,425

)

 

 

(89,096

)

 

 

(16,086

)

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAX EXPENSE

 

1,570,750

 

 

 

2,310,383

 

 

 

9,059,770

 

 

 

8,458,642

 

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE

 

613,399

 

 

 

532,317

 

 

 

1,873,836

 

 

 

1,461,905

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME

 

957,351

 

 

 

1,778,066

 

 

 

7,185,934

 

 

 

6,996,737

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO NON- CONTROLLING INTERESTS

 

309,426

 

 

 

125,718

 

 

 

861,234

 

 

 

715,499

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO NTIC

$

647,925

 

 

$

1,652,348

 

 

$

6,324,700

 

 

$

6,281,238

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:

 

 

 

 

 

 

 

Basic

$

0.07

 

 

$

0.18

 

 

$

0.69

 

 

$

0.69

 

Diluted

$

0.07

 

 

$

0.17

 

 

$

0.66

 

 

$

0.64

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES

 

 

 

 

 

 

 

ASSUMED OUTSTANDING:

 

 

 

 

 

 

 

Basic

 

9,232,483

 

 

 

9,146,879

 

 

 

9,216,216

 

 

 

9,116,472

 

Diluted

 

9,508,440

 

 

 

9,822,504

 

 

 

9,635,028

 

 

 

9,874,139

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

$

0.070

 

 

$

0.065

 

 

$

0.280

 

 

$

0.195

 


NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

The accompanying press release contains certain non-GAAP financial measures, including net sales growth, excluding incremental sales attributable to Zerust India, adjusted net income attributable to NTIC and adjusted net income attributable to NTIC per diluted share, which are not calculated or presented in accordance with accounting principles generally accepted in the United States (GAAP). These non-GAAP financial measures are information supplemental and in addition to the financial measures presented in the accompanying release that are calculated and presented in accordance with GAAP. NTIC uses non-GAAP financial measures as supplemental measures of performance and believes these measures facilitate operating performance comparisons from period to period and company to company by factoring out potential differences caused by non-recurring, unusual or infrequent charges not related to NTIC’s regular, ongoing business. NTIC also believes that the presentation of certain non-GAAP financial measures provides useful information to investors in evaluating the company’s operations, period over period. Such non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the release. The non-GAAP financial measures in the accompanying release may differ from similar measures used by other companies.

The following table provides reconciliations of financial measures calculated and reported in accordance with GAAP as well as adjusted non-GAAP financial measures presented in the accompanying release. The following is a reconciliation of NTIC’s reported net sales and adjusted net sales, excluding net sales attributable to Zerust India, on both a dollar and percentage increase basis.

 

Three Months Ended August 31,

 

Twelve Months Ended August 31,

 

2022

 

2021

 

%
Increase

 

2022

 

2021

 

%
Increase

 

 

 

 

 

 

 

 

 

 

 

 

Net sales, as reported

$

20,251,917

 

 

$

15,513,301

 

 

30.5

%

 

$

74,158,890

 

 

$

56,493,819

 

 

31.3

%

Deduct: Net sales attributable to Zerust India

 

2,706,500

 

 

 

 

 

 

 

 

9,967,464

 

 

 

 

 

 

Adjusted net sales, excluding net sales attributable to Zerust India

$

17,545,417

 

 

$

15,513,301

 

 

13.1

%

 

$

64,191,426

 

 

$

56,493,819

 

 

13.6

%

 

 

 

 

 

 

 

 

 

 

 

 

The following is a reconciliation of NTIC’s reported net income attributable to NTIC and reported net income attributable to NTIC per common share to adjusted net income attributable to NTIC and adjusted net income attributable to NTIC per common share, in each case, as adjusted to exclude the net one-time gain related to the acquisition of the remaining 50% ownership interest of Zerust India and certain other adjustments as described below.

 

Three Months Ended August 31,

 

Twelve Months Ended August 31,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Net income, as reported

$

647,927

 

 

$

1,652,348

 

 

$

6,324,700

 

 

$

6,281,238

 

Adjustments for adjusted net income:

 

 

 

 

 

 

 

Expenses related to Zerust India transaction

 

 

 

 

 

 

 

115,000

 

 

 

 

Gain on purchase of Zerust India

 

 

 

 

 

 

 

(4,612,638

)

 

 

 

Cumulative foreign currency adjustment

 

 

 

 

 

 

 

661,088

 

 

 

 

Amortization expense

 

105,350

 

 

 

 

 

 

421,400

 

 

 

 

Tax impact of adjusted items

 

 

 

 

 

 

 

121,000

 

 

 

 

Adjusted net income

$

753,277

 

 

$

1,652,348

 

 

$

3,030,550

 

 

$

6,281,238

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (diluted)

 

9,508,440

 

 

 

9,822,504

 

 

 

9,635,028

 

 

 

9,874,139

 

Diluted net income per share, as reported

$

0.068

 

 

$

0.17

 

 

$

0.66

 

 

$

0.64

 

Adjustments for adjusted net income, net of tax impact, per diluted share1

 

0.011

 

 

 

 

 

 

(0.34

)

 

 

 

Diluted adjusted net income per share

$

0.08

 

 

$

0.17

 

 

$

0.32

 

 

$

0.64

 

 

 

 

 

 

 

 

 

1Includes adjustments related to the items noted above, net of tax

 

Investor and Media Contact:
Matthew Wolsfeld, CFO
NTIC
(763) 225-6600