Northern Technologies International Corporation (NTIC) reported its financial results for the first quarter of fiscal 2016.
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NTIC's consolidated net sales decreased 2.6% to $7,024,437 during the first quarter of fiscal 2016 compared to $7,214,095 during the same period in fiscal 2015.
Joint venture operating income decreased 34% to $2,469,182 during the first quarter of fiscal 2016 compared to $3,740,353 during the same period in fiscal 2015.
This decrease was primarily due to decreases associated with the anticipated liquidation of Tianjin Zerust, NTIC's former joint venture in China, as well as significant declines in the value of key foreign currencies (including the Euro) compared to the U.S. dollar.
NTIC's equity in income of joint ventures decreased 38.8% to $983,753 during the three months ended November 30, 2015 compared to $1,606,683 during the three months ended November 30, 2014.
NTIC recognized a 30.4% decrease in fees for services provided to joint ventures during the three months ended November 30, 2015 compared to the three months ended November 30, 2014 primarily due to the anticipated liquidation of Tianjin Zerust.
Fees for services provided to Tianjin Zerust decreased $516,139 to $0 during the three months ended November 30, 2015 compared to $516,139 during the three months ended November 30, 2014.
Total net sales of NTIC's joint ventures decreased 24.9% to $21,871,209 during the three months ended November 30, 2015 compared to $29,120,852 for the three months ended November 30, 2014 due primarily to the anticipated liquidation of Tianjin Zerust and the adverse effects of foreign currency exchange rate shifts, including in particular, the Euro compared to the U.S. dollar.
NTIC's total operating expenses increased 4.3% to $4,703,787 during the three months ended November 30, 2015 compared to $4,510,179 for the three months ended November 30, 2014.
This increase was primarily due to $504,385 in expenses related to the formation and establishment of NTIC China and the anticipated liquidation of Tianjin Zerust.
Net (loss) income attributable to NTIC decreased 123.2% to a net loss of $(234,351), or $(0.05), per diluted common share, for the three months ended November 30, 2015 compared to net income of $1,008,265, or $0.22 per diluted common share, for the three months ended November 30, 2014. ■