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NL Industries Inc . (NYSE: NYSE:NL), an industrial chemicals manufacturer with a market capitalization of $351 million and strong financial health according to InvestingPro analysis, has entered into a material definitive agreement following a court order on February 10, 2025, resolving extensive litigation related to the Raritan Bay Slag Superfund Site in New Jersey. The company, alongside 22 other private entities, will collectively pay $151.1 million plus interest to settle all claims under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the New Jersey Spill Compensation and Control Act (NJ Spill Act).
The settlement was approved by the United States District Court for the District of New Jersey and includes a consent decree that addresses past and future response costs, natural resource damages, and other claims associated with the RBS (LON:NWG) Site. NL Industries' share of the settlement amounts to $56.1 million plus interest. The company's strong balance sheet, with more cash than debt and a current ratio of 6.72, positions it well to handle this settlement obligation. The company has opted to make a one-time payment covering the entire settlement amount along with $0.5 million in interest, due within 7 business days of the settlement order.
As part of the agreement, NL Industries will receive approximately $9.6 million from other private companies involved in the settlement, with funds already placed in escrow. This financial arrangement is expected to result in an income of about $31.4 million for NL Industries in the first quarter of 2025, reflecting the release of its environmental accrual related to the lawsuit and the escrowed funds.
The settlement resolves the lawsuit titled United States of America, et al. v. NL Industries, Inc., et al., as well as claims by NL Industries in a separate action against Old Bridge Township and other parties. This legal resolution marks the end of a dispute involving various federal agencies, the State of New Jersey, and multiple private companies, providing a comprehensive settlement of all claims regarding the RBS Site.
The information provided in this article is based on a press release statement from NL Industries Inc. and serves to inform the public of the company's legal and financial commitments as a result of this environmental lawsuit. The company's stock has shown remarkable strength with a 54.5% return over the past year, trading at an attractive P/E ratio of 6.07. For comprehensive financial analysis and additional insights, including 7 more key ProTips, visit InvestingPro.
In other recent news, NL Industries, a Dallas-based industrial chemicals company, has entered into a significant new credit agreement. This development was reported in a recent SEC 8-K filing, which indicates that the company and its affiliate, Kronos Worldwide Inc (NYSE:KRO)., have amended their credit facilities. The details of the credit agreement, including the amount, terms, and intended use of funds, were not disclosed. However, such amendments typically signify changes in borrowing terms, potentially impacting interest rates, borrowing limits, covenants, or maturity dates.
This strategic financial maneuver directly affects the company's financial obligations, potentially influencing its leverage, liquidity, and financial flexibility. These factors are critical for investors and analysts monitoring NL Industries' financial health. The SEC filing also references financial statements and exhibits, providing further details on the credit agreement.
This development is a part of recent changes within NL Industries. Investors and stakeholders of NL Industries and Kronos Worldwide can access the full text of the credit agreement amendment for more detailed information on the company's new financial obligations.
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