Detrex Corporation Reports Earnings for the Second Quarter of 2013 and Announces a Third Quarter Dividend

  Detrex Corporation Reports Earnings for the Second Quarter of 2013 and
  Announces a Third Quarter Dividend

Business Wire

SOUTHFIELD, Mich. -- August 9, 2013

Detrex Corporation (Pink Sheets: DTRX), today announced 2013 second quarter
net income from continuing operations of $914,499, or $0.53 per fully diluted
share, compared to net income from continuing operations of $584,696, or $0.34
per fully diluted share, in the second quarter of 2012. Year-to-date 2013 net
income from continuing operations and net income were $1,953,152, or $1.13 per
fully diluted share. This compares to 2012 year-to-date net income from
continuing operations of $1,310,951, or $0.76 per fully diluted share. During
2012 the Company sold its Harvel Plastics Inc. subsidiary which resulted in
net income after discontinued operations of $17,855,495, or $10.38 per fully
diluted share for the six months ended June 30, 2012, and net income after
discontinued operations of $183,515, or $0.11 per fully diluted share for the
second quarter 2012. The company also announced that it will pay a $0.25
quarterly dividend on September 3, 2013 to shareholders of record as of August
23, 2013.

Second quarter net sales of $11.2 million were approximately the same as in
the comparable period last year. This sales level is a continuation of first
quarter performance. Year-to-date sales in 2013 are $22.4 million compared to
$23.4 million in the same period last year. The year-over-year shortfall is
primarily the result of sales to a major customer that began to decline after
the first quarter of 2012. Sales to new and existing customers have partially
offset this reduction in sales.

Earnings improved in the second quarter of 2013 compared to the prior year
primarily due to the absence of a $600,000 provision for environmental
expense. The company increased the reserve for environmental liabilities to
$17.0 million in the fourth quarter of 2012 as the result of an in-depth
evaluation of these liabilities, the majority of which were transferred to a
third party in a June 2013 transaction. Year-to-date income from continuing
operations was higher in 2013 primarily due to the absence of a $1.2 million
environmental charge which was made in the first half of 2012.

“Our sole subsidiary, The Elco Corporation, is working to offset the effects
of a market that has softened since the middle of May. We expect that weak
demand may continue for several months and are pursuing additional business
opportunities including product trials with a number of customers,” said
Detrex President and CEO, Tom Mark. “We are beginning to realize the benefits
of the liability transfer transaction and are continuing to investigate
strategic opportunities to enhance 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
                                 2013       2012         2013       2012
                                                                    
Net sales                        $ 11,224   $ 11,129     $ 22,391   $ 23,400
                                                                    
Cost of sales                      7,335      7,257        14,737     15,352
Selling, general and               2,214      2,107        4,035      4,206
administrative expense
Provision for depreciation and     299        286          599        572
amortization
Provision for corporate            -          600          -          1,200
environmental reserves
Interest (Income) Expense          18         (13    )     17         (15    )
Other (Income) Expense, net       22        2          44        4      
Income from continuing
operations
before income taxes                1,336      890          2,959      2,081
                                                                    
Provision for income taxes        422       305        1,006     770    
Net Income from continuing         914        585          1,953      1,311
operations
                                                                    
Discontinued operations:
Gain (loss) on sale of             0          (401   )     0          16,544
Subsidiary, net of tax
Income from the operation of
Subsidiary, net of income tax
                                                                 
Net income                       $ 914      $ 184       $ 1,953    $ 17,855 
                                                                    
Basic earnings per common share
attributable to Detrex
shareholders:
From continuing operations       $ 0.55     $ 0.35       $ 1.17     $ 0.78
From discontinued operations      -         (0.24  )    -         9.87   
Net earnings per share           $ 0.55     $ 0.11      $ 1.17     $ 10.65  
                                                                    
Fully diluted earnings per
common share attributable to
Detrex shareholders:
From continuing operations       $ 0.53     $ 0.34       $ 1.13     $ 0.76
From discontinued operations      -         (0.23  )    -         9.62   
Net earnings per share           $ 0.53     $ 0.11      $ 1.13     $ 10.38  
                                                                    
Shares outstanding,basic           1,676      1,676        1,676      1,676
Shares outstanding,fully           1,723      1,719        1,723      1,719
diluted
                                                                    
                                                                    
Condensed Consolidated Balance Sheets
(unaudited - in thousands)
                                                                    
                                 June 30    Dec 31
                                 2013       2012
Assets
Current Assets:
Continuing operations            $ 20,260   $ 21,000
Property and equipment, net        10,140     10,433
Other assets:
Continuing operations             585       5,858  
Total assets                     $ 30,985   $ 37,291 
                                                                    
Liabilities and stockholders'
equity
Current liabilities:
Continuing operations            $ 10,257   $ 8,795
                                                                    
Non-current liabilities:
Continuing operations              8,480      17,363
                                                                    
Detrex Corporation                12,248    11,133 
shareholders' equity
Total liabilities and            $ 30,985   $ 37,291 
stockholders' equity
                                                                    

Contact:

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