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
	2015		2014			2015		2014

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
	2015		2014
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