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, stock rose 0.73% (As on April 12, 11:7:36 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 24. NTIC’s joint venture operating income increased 4.2% to $2,481,000 during the three months ended February 29, 2024, compared to joint venture operating income of $2,381,000 during the three months ended February 28, 2023. The $100,000 increase in joint venture operating income was primarily due to efforts to enhance profitability at the Company’s joint ventures, partially offset by lower joint venture sales. Net income attributable to NTIC for the second quarter of fiscal 2024 was $1,701,000 compared to net income of $411,000, for the same period last fiscal year. NTIC’s consolidated balance sheet remains strong, with working capital of $23,975,000 as of February 29, 2024, including $4,835,000 in cash and cash equivalents and an outstanding revolving line of credit and term loan balance of $3,975,000, compared to $22,950,000 of working capital as of August 31, 2023, including $5,406,000 in cash and cash equivalents and an outstanding revolving line of credit and term loan balance of $6,357,000. At February 29, 2024, the Company had $23,461,000 of investments in joint ventures, of which $13,078,000 or 55.8%, is cash, with the remaining balance mostly made up of other working capital.

NTIC in the second quarter of FY 24 has reported the adjusted earnings per share of 18 cents, beating the analysts’ estimates for the adjusted earnings per share of 17 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 14.1 percent to $20.84 million in the second quarter of FY 24, missing the analysts’ estimates for revenue by 1.68%. The year-over-year increase in consolidated net sales for the second quarter was primarily a result of an increase in sales and demand for Natur-Tec and ZERUST oil and gas products and stable sales of and demand for ZERUST industrial products. Operating expenses, as a percent of net sales, for the second quarter of fiscal 2024 were 41.3%, compared to 43.1% for the same period last fiscal year.

The company believes demand across our ZERUST industrial, ZERUST oil and gas, and Natur-Tec product categories will remain strong through the second half of fiscal 2024, as a result of new business opportunities with new and existing customers, as well as the expansion of several existing projects.