Release Date: January 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What percentage of new tanks are being treated with Northern Technology's Zerust treatment? A: Matthew Wolsfeld, CFO, explained that the cost of Zerust treatment varies based on tank size, ranging from $25,000 to $50,000 for standard tanks, and can be several hundred thousand dollars for larger tanks. Zerust's option is roughly a third of the cost of traditional solutions like cathodic protection.
Q: Is there ongoing revenue from Zerust installations? A: Matthew Wolsfeld, CFO, stated that there are ongoing revenues typically five-plus years after installation as tanks are recharged, with ongoing costs being about 10% of the original treatment.
Q: What is driving the growth in the Natur-Tec segment? A: Matthew Wolsfeld, CFO, highlighted that Natur-Tec's growth is driven by new customer wins and expanding relationships with existing customers, particularly in North America and India. The development of specialized resins for manufacturing products is expected to accelerate growth over the next 6 to 18 months.
Q: Can NTIC achieve a $3 million to $4 million quarter in the oil tank business this year? A: Matthew Wolsfeld, CFO, expressed optimism, citing past performance and ongoing investments in the oil and gas sector. He expects growth in the third and fourth quarters, driven by seasonal patterns and increased sales infrastructure.
Q: How is the Chinese market performing for NTIC? A: Matthew Wolsfeld, CFO, noted a slight recovery in China, with Q1 sales increasing by nearly 10% from Q4. The company is targeting domestic sales in China and expects growth to continue, despite potential temporary fluctuations due to geopolitical factors.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.