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