MRO Magazine

Detrex Corporation Reports Improved Sales and Earnings for the Second Quarter of 2015 and Announces a Third Quarter Dividend of $0.25 per share


July 29, 2015
By Business Wire News

SOUTHFIELD, Mich.

Detrex Corporation (OTCQX:DTRX), today announced 2015 second quarter net income of $661,594, or $0.38 per fully diluted share, and year-to-date net income of $1,374,545, or $0.80 per fully diluted share. This compares to 2014 second quarter net income from continuing operations of $521,140 and net income of $217,001, which includes a dispute settlement in discontinued operations related to the sale of the Harvel Plastics, Inc. business. The 2014 year-to-date net income from continuing operations was $1,063,085, and net income was $758,946. The Company also announced that it will pay a third quarter dividend of $0.25 per share on September 18, 2015 to shareholders of record as of September 4, 2015.

Revenues in 2015 increased both for the quarter and year-to-date compared to the prior year. Second quarter 2015 revenues were $10.0 million, representing a $0.2 million improvement over 2014 and year-to-date revenues of $20.9 million are $1.0 million above the year-ago period. The year-over-year revenue improvement was the result of gains in several product lines and improving sales of a product that tends to fluctuate in volume from month to month. Earnings improved in 2015 for the quarter and year-to-date primarily as the result of higher gross margin from volume and improved product mix.

“Elco is performing well in the current market environment and we are pleased to see improved year-over-year performance,” said President and CEO Tom Mark. “We continue to invest in the business to generate global growth as we embrace strategic opportunities to generate shareholder value.”

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 Statement of Operations
(unaudited, in thousands)
       
Three Months Ended Year to date
June 30 June 30
2015201420152014
 
Net sales $ 9,955 $ 9,732 $ 20,897 $ 19,918
 
Cost of sales 6,780 6,825 14,391 13,766
Selling, general and administrative expense 1,824 1,715 3,733 3,734
Provision for depreciation and amortization 340 337 680 676
Provision for corporate environmental reserves
Interest Expense 25 54 51 109
Other (Income) Expense, net   13   11     21   22  
Income from continuing operations
before income taxes 973 790 2,021 1,611
 
Provision for income taxes   311   269     646   548  
Net Income from continuing operations 662 521 1,375 1,063
 
Discontinued operations:
Settlement (loss) on sale of Subsidiary, net of tax (304 ) (304 )
       
Net income$662$217  $1,375$759  
 
Basic earnings (loss) per common share:
From continuing operations $ 0.39 $ 0.31 $ 0.82 $ 0.63
From discontinued operations     (0.18 )     (0.18 )
Net earnings per share $ 0.39 $ 0.13   $ 0.82 $ 0.45  
 
Fully diluted earnings (loss) per common share:
From continuing operations $ 0.38 $ 0.30 $ 0.80 $ 0.61
From discontinued operations     (0.18 )     (0.18 )
Net earnings per share $ 0.38 $ 0.12   $ 0.80 $ 0.43  
 
Shares outstanding,basic 1,676 1,676 1,676 1,676
Shares outstanding,fully diluted 1,727 1,730 1,727 1,730
 
 
Condensed Consolidated Balance Sheets
(unaudited – in thousands)
 
June 30 Dec 31
20152014
Assets
 
Current Assets $ 12,636 $ 12,905
 
Property and equipment, net 9,225 9,397
 
Other Assets 1,759 1,696
   
Total assets $ 23,620 $ 23,998  
 
Liabilities and stockholders’ equity
 
Current liabilities $ 5,549 $ 5,634
 
Non-current liabilities 7,251 8,080
 
Stockholders’ equity 10,820 10,284
   
Total liabilities and stockholders’ equity $ 23,620 $ 23,998  

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