Detrex Corporation Reports Earnings for First Quarter of 2014 and Announces a Second Quarter Dividend

  Detrex Corporation Reports Earnings for First Quarter of 2014 and Announces
  a Second Quarter Dividend

Business Wire

SOUTHFIELD, Mich. -- April 23, 2014

Detrex Corporation (OTCQX:DTRX), today announced 2014 first quarter net income
of $541,945, or $0.31 per fully diluted share, compared to 2013 first quarter
net income of $1,038,653, or $0.60 per fully diluted share. The Company also
announced that it will pay a second quarter dividend of $0.25 per share on
June 24, 2014 to shareholders of record on June 10, 2014.

First quarter 2014 revenues of $10.2 million improved from the fourth quarter
2013 level of $8.5 million, however, the first quarter was still $1.0 million
below the year ago first quarter. The 8.8% year over year revenue reduction
was largely the result of reduced sales of a product line that tends to
fluctuate in volume from month to month. A portion of this reduction was
offset by growing sales in China and with a number of products that have been
introduced recently. The first quarter 2014 sales represent an improvement
over fourth quarter 2013 sales as the result of increased demand in certain
segments. Significant investments continued to be made in product development,
geographic expansion and strengthening the Company’s capacity and
capabilities.

President and CEO Tom Mark said, “We are pleased with the improvement in sales
from the fourth quarter of 2013 while our markets continue to be slow in
certain areas. The Elco team is making investments to enhance capacity,
capability, market position and products that we believe will lead to strong
future performance. We will continue to evaluate and embrace strategic
opportunities to generate shareholder value and we look forward to keeping you
informed of our progress.”

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 Income
(unaudited, in thousands)
                                                          
                                                   Three Months Ended
                                                   March 31
                                                   2014       2013
                                                              
Net sales                                          $ 10,187   $ 11,167
                                                              
Cost of sales                                        6,941      7,402
Selling, general and administrative expense          2,019      1,821
Provision for depreciation and amortization          339        299
Provision for corporate environmental reserves       -          -
Interest (income) expense, net                       54         (1     )
Other Expense, net                                  13        23     
Income from continuing operations
before income taxes                                  821        1,623
                                                              
Provision for income taxes                          279       584    
                                                              
Net Income                                         $ 542      $ 1,039  
                                                              
Basic earnings per common share:                   $ 0.32     $ 0.62
                                                              
Fully diluted earnings per common share:           $ 0.31     $ 0.60
                                                              
Shares outstanding,basic                             1,676      1,676
Shares outstanding,fully diluted                     1,729      1,717
                                                              
                                                              
Condensed Consolidated Balance Sheets
(in thousands)
                                                              
                                                   Mar 31     Dec 31
                                                   2014       2013
Assets
                                                              
Current Assets                                     $ 16,784   $ 16,777
                                                              
Property and equipment, net                          9,724      10,009
                                                              
Other Assets                                         3,457      3,377
                                                             
Total assets                                       $ 29,965   $ 30,163 
                                                              
Liabilities and stockholders' equity
                                                              
Current liabilities                                $ 8,258    $ 8,202
                                                              
Non-current liabilities:                             7,233      7,610
                                                              
Detrex Corporation shareholders' equity              14,474     14,351
                                                             
Total liabilities and stockholders' equity         $ 29,965   $ 30,163 

Contact:

Detrex Corporation
Thomas E. Mark, (248) 358-5800
FAX: (248) 799-7192
 
Press spacebar to pause and continue. Press esc to stop.