MRO Magazine

Detrex Corporation Reports Revenues and Earnings for the Third Quarter of 2015 and Announces a Fourth Quarter Dividend of $0.25 per Share


November 5, 2015
By Business Wire News

SOUTHFIELD, Mich.

Detrex Corporation (OTCQX:DTRX), today announced 2015 third quarter net income of $513,981, or $0.30 per fully diluted share, and year-to-date net income of $1,888,525, or $1.09 per fully diluted share. This compares to a 2014 third quarter loss of $31,381, or $0.02 per fully diluted share that included a $1.0 million pre-tax environmental charge ($660,000 after-tax, or $0.39 per fully diluted share). Year-to-date net income in 2014 was $727,564, or $0.42 per fully diluted share, which includes the aforementioned environmental charge as well as a charge in discontinued operations of $304,139 to settle a dispute with the buyer of the Harvel Plastics, Inc. business. The Company also announced that it will pay a $0.25 quarterly dividend on December 16, 2015 to shareholders of record as of December 3, 2015.

Revenues in 2015 decreased for both the quarter and year-to-date compared to the prior year. Third quarter 2015 revenues were $9.7 million compared to $11.1 million in the third quarter of the prior year. Year-to-date revenues in 2015 were $30.6 million, which was $0.4 million below 2014 year-to-date revenue as the result of the third quarter shortfall. Weak industrial lubricant additive demand in the domestic market was the primary factor in the third quarter revenue shortfall; and the strong dollar had a negative effect on export sales and prospects as well. While we have realized sales gains in several product lines, these were not sufficient to offset the general economic softness. Earnings remained relatively strong as improved margins helped to offset the lower volume. The margin improvement is largely due to product mix, lower costs for certain raw materials and lower manufacturing expense.

“We were able to positively navigate a challenging third quarter, and we continue to invest in the business to generate domestic and global growth as we actively pursue strategic opportunities to generate shareholder value,” said President and CEO Tom Mark.

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
September 30 September 30

2015

2014

2015

2014

 
Net sales $ 9,717 $ 11,136 $ 30,614 $ 31,054
 
Cost of sales 6,768 8,024 21,159 21,790
Selling, general and administrative expense 1,729 1,785 5,462 5,519
Provision for depreciation and amortization 340 331 1,020 1,007
Provision for corporate environmental reserves 1,000 1,000
Interest Expense 24 32 75 140
Other Expense   16   11     36   35  
Income from continuing operations
before income taxes 840 (47 ) 2,862 1,563
 
Provision for income taxes   326   (16 )   973   531  
Net Income from continuing operations 514 (31 ) 1,889 1,032
 
Discontinued operations:
Settlement (loss) on sale of Subsidiary, net of tax 0 0 0 (304 )
       
Net income$514$(31)$1,889$728  
 
Basic earnings (loss) per common share:
From continuing operations $ 0.31 $ (0.02 ) $ 1.13 $ 0.62
From discontinued operations           (0.18 )
Net earnings per share $ 0.31 $ (0.02 ) $ 1.13 $ 0.44  
 
Fully diluted earnings (loss) per common share:
From continuing operations $ 0.30 $ (0.02 ) $ 1.09 $ 0.60
From discontinued operations           (0.18 )
Net earnings per share $ 0.30 $ (0.02 ) $ 1.09 $ 0.42  
 
Shares outstanding,basic 1,676 1,676 1,676 1,676
Shares outstanding,fully diluted 1,726 1,730 1,726 1,730
 
 
Condensed Consolidated Balance Sheets
(unaudited – in thousands)
 
Sept 30 Dec 31

2015

2014

Assets
 
Current Assets $ 12,498 $ 12,905
 
Property and equipment, net 9,133 9,397
 
Other Assets 1,534 1,696
   
Total assets $ 23,165 $ 23,998  
 
Liabilities and stockholders’ equity
 
Current liabilities $ 5,226 $ 5,634
 
Non-current liabilities 7,024 8,080
 
Stockholders’ equity 10,915 10,284
   
Total liabilities and stockholders’ equity $ 23,165 $ 23,998  
 

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