Detrex Corporation Reports Earnings for the Third Quarter of 2013 and Announces a 4th Quarter Dividend Business Wire SOUTHFIELD, Mich. -- November 8, 2013 Detrex Corporation (Pink Sheets: DTRX), today announced 2013 third quarter net income of $796,768, or $0.46 per fully diluted share, compared to net income of $363,235, or $0.21 per fully diluted share in the third quarter of 2012. Year-to-date 2013 net income was $2,749,920, or $1.59 per fully diluted share, compared to net income of $18,218,730, or $10.58 per fully diluted share for the year-to-date period in 2012. The 2012 net income includes net income from discontinued operations related to the sale of the Company’s Harvel Plastics, Inc. subsidiary. The third quarter 2012 loss from discontinued operations was $85,191 and the year-to-date gain was $16,459,353. The Company also announced that it will pay a $0.25 quarterly dividend on December 12, 2013 to shareholders of record as of November 29, 2013. Third quarter sales of $10.1 million were approximately the same as in the comparable period last year. This sales level is approximately $1 million below the sales in the first and second quarters of this year due to market conditions that softened near the end of the second quarter. Year-to-date sales in 2013 are $32.5 million compared to $33.5 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. The 2013 pre-tax income from continuing operations of $0.9 million for the quarter and $3.9 million year-to-date are higher than the corresponding $0.7 million and $2.8 million of 2012 primarily due to the absence of provisions for environmental expense. In 2012 the provisions for environmental expense were $0.6million for the third quarter and $1.8million for the year-to-date. 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 the liabilities were transferred to a third party in a June 2013 transaction. The savings from eliminating the environmental provision have been partially offset by increases in manufacturing costs, depreciation and amortization, interest expense, as well as non-recurrence of a legal expense recovery in 2012. “Elco is performing well in the market for industrial lubricant additives in spite of soft conditions. We are continuing to invest in product development and organizational capabilities that will provide new opportunities,” said Detrex President and CEO, Tom Mark. “Management and the Board continue to investigate 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 Statements of Operations (unaudited, in thousands) Three Months Ended Year to date September 30 September 30 2013 2012 2013 2012 Net sales $ 10,127 $ 10,102 $ 32,518 $ 33,502 Cost of sales 6,616 6,633 21,354 21,984 Selling, general and 2,210 2,095 6,245 6,301 administrative expense Provision for depreciation 304 289 902 861 and amortization Provision for corporate - 600 - 1,800 environmental reserves Interest (Income) Expense 67 (40 ) 85 (55 ) Other (Income) Expense, net 14 (192 ) 57 (188 ) Income from continuing operations before income taxes 916 717 3,875 2,799 Provision for income taxes 119 269 1,125 1,039 Net Income from continuing 797 448 2,750 1,760 operations Discontinued operations: Gain (loss) on sale of 0 (85 ) 0 16,459 Subsidiary, net of tax Income from the operation of Subsidiary, net of income tax Net income $ 797 $ 363 $ 2,750 $ 18,219 Basic earnings per common share attributable to Detrex shareholders: From continuing operations $ 0.48 $ 0.27 $ 1.64 $ 1.05 From discontinued - (0.05 ) - 9.82 operations Net earnings per share $ 0.48 $ 0.22 $ 1.64 $ 10.87 Fully diluted earnings per common share attributable to Detrex shareholders: From continuing operations $ 0.46 $ 0.26 $ 1.59 $ 1.02 From discontinued - (0.05 ) - 9.56 operations Net earnings per share $ 0.46 $ 0.21 $ 1.59 $ 10.58 Shares outstanding, basic 1,676 1,676 1,676 1,676 Shares outstanding, fully 1,726 1,721 1,726 1,721 diluted Condensed Consolidated Balance Sheets Unaudited Audited Sept 30 Dec 31 2013 2012 Assets Current Assets $ 18,553 $ 21,000 Property and equipment, net 10,157 10,433 Other assets 1,626 5,858 Total assets $ 30,336 $ 37,291 Liabilities and stockholders' equity Current liabilities $ 9,047 $ 8,795 Non-current liabilities 8,663 17,363 Detrex Corporation 12,626 11,133 shareholders' equity Total liabilities and $ 30,336 $ 37,291 stockholders' equity Contact: Detrex Corporation Thomas E. Mark Phone: (248) 358-5800 FAX: (248) 799-7192
Detrex Corporation Reports Earnings for the Third Quarter of 2013 and Announces a 4th Quarter Dividend
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