Northern Technologies International Corporation (NASDAQ:NTIC) Q3 2022 Earnings Conference Call July 7, 2022 9:00 AM ET
Company Participants
Patrick Lynch - President and Chief Executive Officer
Matthew Wolsfeld - Chief Financial Officer
Conference Call Participants
Gus Richard - Northland
Joseph Vidich - Manalapan Oracle Capital Management
Jim Dowling - Jefferies
Gregory Weaver - Invicta Capital Management
Operator
Good day and thank you for standing by. Welcome to the Northern Technologies International Corporation Third Quarter 2022 Earnings Conference Call and Webcast. [Operator Instructions] Please be advised, today’s conference is being recorded.
As part of the discussion today, the representatives from NTIC will be making certain forward-looking statements regarding NTIC’s future financial and operating results as well as their business plans, objectives and expectations. Please be advised that these forward-looking statements are covered in the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and that NTIC desires to avail itself of the protections of the Safe Harbor for these statements.
Please also be advised that actual results could differ materially from those stated or implied by the forward-looking statements due to certain risks and uncertainties, including those described in NTIC’s most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q and recent press releases. Please read these reports and other future filings that NTIC will make with SEC. NTIC disclaims any duty to update or revise its forward-looking statements.
I would now like to hand the conference over to your speaker today, Patrick Lynch, President and CEO. Please go ahead.
Patrick Lynch
Good morning. I am Patrick Lynch, NTIC’s CEO and I am here with Matthew Wolsfeld, NTIC’s CFO. Please note that a press release regarding our third quarter fiscal 2022 financial results was issued earlier this morning and is available at ntic.com. During today’s call, we will review various key aspects of our fiscal 2022 third quarter financial results, provide a brief business update and then conclude with a question-and-answer session.
Strong demand across all product categories and the majority of our global markets, along with the contributions made by the newly acquired ZERUST India, drove quarterly sales to a new record, just short of $19 million. If we exclude that the ZERUST India contributions in order to ease comparison between fiscal 2021 and fiscal 2022 third quarter, total net sales increased 6.3%. Furthermore, it is important to also highlight that the harsh COVID-19 lockdowns imposed by the Chinese government across broad regions of that country, severely impaired the third quarter sales efforts and profitability of our NTIC China subsidiary.