MRO Magazine

Detrex Corporation Reports First Quarter Results And Announces a Second Quarter Dividend of $0.25 Per Share


May 9, 2016
By Business Wire News

SOUTHFIELD, Mich.

Detrex Corporation (OTCQX:DTRX), today announced 2016 first quarter net income of $234,317, or $0.14 per fully diluted share, compared to 2015 first quarter net income of $712,951, or $0.41 per fully diluted share. The Company also announced that it will pay a second quarter dividend of $0.25 per share on June 22, 2016, to shareholders of record on June 8, 2016.

First quarter 2016 revenues of $8.9 million improved from the fourth quarter 2015 level of $8.2 million and were below the $10.9 million in the year ago first quarter. The weak sales in the last two quarters reflect poor industrial demand specifically from the metalworking and energy markets. The weakness has been particularly pronounced in the Americas. The earnings were impacted by lower sales volume, partially offset by reduced manufacturing costs.

President and CEO Tom Mark said “Elco is demonstrating resilience in a very challenging industrial market. Our products continue to generate market interest and gain approval from a wide variety of customers, and we believe that Elco is poised for a rebound when economic conditions improve. In the meantime, we remain in the process of evaluating strategic opportunities to generate shareholder value and will keep you informed of our progress.”

About Detrex Corporation

Founded in 1925, Detrex Corporation through its subsidiary The Elco Corporation is a leading manufacturer of high performance specialty chemicals including additives for industrial petroleum products and high purity hydrochloric acid.

Forward Looking Statements

Statements included in this press release that are not historical in nature are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “1995 Act”). The words “believe,” “expect,” “anticipate,” “estimate,” “guidance,” “target” and similar expressions identify forward-looking statements. The Company cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in the forward-looking statements. Certain risks and uncertainties are identified from time to time in the Company’s reports. Some factors that could cause results to differ materially from those projected in the forward-looking statements include: market conditions, environmental remediation costs, pension expense and funding requirements, liquidation value of assets, and marketability of real estate and the market value and future liquidity of Detrex stock. The Company claims the protection of the safe harbor for forward-looking statements contained in the 1995 Act.

     
Detrex Corporation and Subsidiaries
Condensed Consolidated Statements of Income
(unaudited, in thousands)
 
Three Months Ended
March 31
20162015
 
Net sales $ 8,941 $ 10,942
 
Cost of sales 6,162 7,611
Selling, general and administrative expense 2,042 1,909
Provision for depreciation and amortization 346 340
Provision for corporate environmental reserves
Interest (income) expense, net 21 26
Other Expense, net   15   8
 
Income before income taxes 355 1,048
 
Provision for income taxes   121   335
 
Net Income $ 234 $ 713
 
Basic earnings per common share: $ 0.14 $ 0.43
 
Fully diluted earnings per common share: $ 0.14 $ 0.41
 
Shares outstanding,basic 1,698 1,676
Shares outstanding,fully diluted 1,705 1,728
 
 
Condensed Consolidated Balance Sheets
(in thousands)
 
Mar 31 Dec 31
20162015
Assets
 
Current Assets $ 12,791 $ 12,816
 
Property and equipment, net 8,967 9,144
 
Other Assets 210 368
   
Total assets $ 21,968 $ 22,328
 
Liabilities and stockholders’ equity
 
Current liabilities $ 4,662 $ 4,421
 
Non-current liabilities: 6,823 7,113
 
Shareholders’ equity 10,483 10,794
   
Total liabilities and stockholders’ equity $ 21,968 $ 22,328
 

Detrex Corporation
Thomas E. Mark
Phone: (248) 358-5800
FAX: (248) 799-7192