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