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

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

Business Wire

SOUTHFIELD, Mich. -- July 24, 2014

Detrex Corporation (OTCQX:DTRX), today announced 2014 second quarter net
income from continuing operations of $521,140, or $0.30 per fully diluted
share, compared to net income of $914,499 or $0.52 per fully diluted share, in
the second quarter of 2013. Year-to-date 2014 net income from continuing
operations was $1,063,085, or $0.61 per fully diluted share. This compares to
2013 year-to-date net income of $1,953,152, or $1.13 per fully diluted share.
In the second quarter of 2014 the Company settled a dispute with the buyer of
the Harvel Plastics, Inc. business in order to collect the escrow related to
the transaction. The net income charge for the settlement and associated legal
costs was $304,139. This amount is reflected in discontinued operations and
second quarter net income after discontinued operations is $217,001, or $0.12
per fully diluted share, and on a year-to-date basis is $758,946, or $0.43 per
fully diluted share. The Company also announced that it will pay a $0.25
quarterly dividend on September17,2014 to shareholders of record as of
September 3, 2014.

Second quarter 2014 revenues of $9.7 million represent a continuation of
activity levels during the first quarter of the year and represents a 13.3%
year-over-year revenue reduction. On a year-to-date basis, 2014 sales were
$19.9 million compared to $22.4 million for the year-to-date period in 2013.
This represents a 11.1% year-over-year reduction. The reduction in revenue for
both the quarter and year-to-date was largely the result of reduced sales of a
product line that tends to fluctuate in volume from month to month and
remained below prior year levels for the first six months. Sales to new and
existing customers have partially offset this reduction in sales.

Earnings declined in the second quarter and year-to-date compared to 2013 due
to reduced sales and unfavorable sales product mix. In addition the Company
continued the program to strengthen Elco’s capabilities in sales,
distribution, product development as well as infrastructure. Partially
offsetting these investment costs are reduced expenses at the corporate level
where measures have been taken to reduce executive and board compensation as
well as other discretionary items. As part of these measures, Tom Mark assumed
the role of Chairman at the April Board meeting. While the claim settlement
for the Harvel transaction resulted in a charge to income, it facilitated the
collection of the Harvel sale escrow in the second quarter of $2.1 million.
The cash was used to pay down bank debt.

President and CEO, Tom Mark said, “Market conditions were sluggish in the
first part of the second quarter but improved in June. July sales have shown
continued improvement. We are continuing to invest in Elco while taking
measures to offset a portion of the costs with reductions in corporate expense
and finalizing legacy items. We continue to be focused on 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 Statement of Operations
(unaudited, in thousands)
                                  Three Months Ended     Year to date
                                  June 30                June 30
                                  2014        2013       2014         2013
Net sales                         $ 9,732     $ 11,224   $ 19,918     $ 22,391
Cost of sales                       6,825       7,335      13,766       14,737
Selling, general and                1,715       2,214      3,734        4,035
administrative expense
Provision for depreciation          337         299        676          599
and amortization
Provision for corporate             -           -          -            -
environmental reserves
Interest Expense                    54          18         109          17
Other (Income) Expense, net        11        22        22         44
Income from continuing
before income taxes                 790         1,336      1,611        2,959
Provision for income taxes         269       422       548        1,006
Net Income from continuing          521         914        1,063        1,953
Discontinued operations:
Settlement (loss) on sale of        (304  )     0          (304   )     0
Subsidiary, net of tax
Net income                        $ 217      $ 914      $ 759       $ 1,953
Basic earnings (loss) per
common share:
From continuing operations        $ 0.31      $ 0.55     $ 0.63       $ 1.17
From discontinued operations       (0.18 )    -         (0.18  )    -
Net earnings per share            $ 0.13     $ 0.55     $ 0.45      $ 1.17
Fully diluted earnings (loss)
per common share:
From continuing operations        $ 0.30      $ 0.53     $ 0.61       $ 1.13
From discontinued operations       (0.18 )    -         (0.18  )    -
Net earnings per share            $ 0.12     $ 0.53     $ 0.43      $ 1.13
Shares outstanding,basic            1,676       1,676      1,676        1,676
Shares outstanding,fully            1,730       1,723      1,730        1,723

Condensed Consolidated Balance Sheets
(unaudited - in thousands)
                                               June 30    Dec 31
                                               2014       2013
Current Assets                                 $ 14,902   $ 16,777
Property and equipment, net                      9,589      10,009
Other Assets                                     3,480      3,377
Total assets                                   $ 27,971   $ 30,163
Liabilities and stockholders' equity
Current liabilities                            $ 7,478    $ 8,202
Non-current liabilities                          6,221      7,610
Stockholders' equity                             14,272     14,351
Total liabilities and stockholders' equity     $ 27,971   $ 30,163


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