2023-10-18 09:00:00 ET
Summary
- NL Industries is an undiscovered high-yield dividend company with strong fundamentals and zero debt.
- The company operates through its majority-owned subsidiary CompX International, which manufactures security products and recreational marine components.
- NL Industries has a positive outlook, with its subsidiary's business expected to grow and its minority stake in Kronos Worldwide also showing positive long-term prospects.
- The quarterly dividend is safe, while NL Industries has room for more special dividends in the next years, barring unforeseen events.
- NL Industries' key multiples currently are low, so long-term investors could make significant profits in addition to the dividends, barring unforeseen events.
Since January 2022, only two articles have been published about NL Industries ( NL ) . However, I strongly believe that this undiscovered high-yield dividend company has many key positives that make it ideal for long-term investors, including income investors who want to avoid the indebted real estate investment trusts ("REITs") whose leverage exceeds 4 times.
Additionally, I strongly believe that its strong fundamentals have been heavily downplayed, while its risk associated with the lead pigment litigation has been overplayed.
So I decided to write an article about NL, presenting why it combines high yield with high capital appreciation potential.
Business Overview
NL is a diversified holding company from the industrial sector, as quoted below :
NL conducts its component products operations through its majority-owned subsidiary (87%), CompX International, Inc. ( CIX ), which is engaged in component products (security products and recreational marine components).
CompX International is a leading manufacturer of security products for a wide range of industries, including recreational transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare, gas stations, and vending equipment. CompX also manufactures stainless steel exhaust systems, gauges, throttle controls, wake enhancement systems, and trim tabs for the recreational marine industry.
NL also owns a significant interest (31%) in Kronos Worldwide, Inc. ( KRO ), a global producer and marketer of value-added titanium dioxide pigments.
Additionally, Valhi ( VHI ) owns 83% of NL Industries, and Contran Corporation owns 92% of Valhi."
Given that NL's business is mainly dependent on CIX's business, this is a brief excerpt about CIX, a debt-free, cash-rich and consistently profitable company :
We are a leading manufacturer of engineered components utilized in a variety of applications and industries. Through our Security Products segment we manufacture mechanical and electrical cabinet locks and other locking mechanisms used in postal, recreational transportation, office and institutional furniture, cabinetry, tool storage and healthcare applications. We also manufacture wake enhancement systems, stainless steel exhaust systems, gauges, throttle controls, trim tabs and related hardware and accessories for the recreational marine and other industries through our Marine Components segment."
As noted above, NL has a minority stake in KRO, which is a producer and marketer of value-added titanium dioxide pigments (TiO2), as quoted below:
We are a leading global producer and marketer of value-added titanium dioxide pigments (TiO 2 ). TiO 2 is used for a variety of manufacturing applications, including paints, plastics, paper and other industrial and specialty products. For the six months ended June 30, 2023, approximately one-half of our sales volumes were sold into European markets. Our production facilities are located in Europe and North America."
Strong Fundamentals Including Zero Debt
Given that NL owns 87% in CIX, NL's revenue are coming from CIX's two segments (security products and marine components), as illustrated below:
Three months ended | Six months ended | |||||||||||
June 30, | June 30, | |||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||
(In thousands) | ||||||||||||
Net sales: | ||||||||||||
Security Products | $ | 28,837 | $ | 25,672 | $ | 58,418 | $ | 53,014 | ||||
Marine Components | 12,838 | 10,944 | 25,307 | 24,753 | ||||||||
Total | $ | 41,675 | $ | 36,616 | $ | 83,725 | $ | 77,767 |
NL has increased its revenue over the last years, as shown here and here . It's also noteworthy that its revenue of $140.8 million in 2021 far exceeded its pre-pandemic revenue of $124.2 million in 2019, despite the negative impact of Coronavirus. Additionally, its revenue of $166.6 million in 2022 again far exceeded its pre-pandemic revenue. On top of this, its revenue in 2023 are estimated to again far exceed its pre-pandemic revenue in 2019. This significant accomplishment has passed unnoticed so far and has not been reflected on the stock price. For comparison, the majority of the companies have not seen their revenue return to their pre-pandemic levels so far.
That said, after three years in a row of meaningful growth, revenue in the first half of 2023 declined just 6% compared to prior year period, because :
Second quarter and year-to-date 2023 net sales decreased over the comparable 2022 periods predominantly due to lower Security Products sales to the government security market and, to a lesser extent, lower Marine Component sales to the towboat market."
However, gross margin remained flat at about 30%, despite the high inflation and supply chain challenges that have weighed on numerous companies over the last couple of years.
SG&A expenses and other corporate expenses were largely unchanged compared to prior year period. As a result, NL recorded strong profitability in H1 2023 while maintaining a fortress balance sheet with zero debt and a lot of cash, despite the fact that its operating income dropped 30% compared to H2 2023.
So I would like to emphasize that the loss at the bottom line in H1 2023 has nothing to do with the company's operations that remained highly profitable . Specifically, the loss at the bottom line in H1 2023 was due to these factors:
1) As a result of its investment in KRO, NL recognized equity in losses of $7.2 million compared to equity in earnings of $31.5 million in H1 2022.
2) An unrealized loss of $10.9 million related to the change in value of marketable equity securities compared to an unrealized gain of $19.8 million in H1 2022. Specifically, NL owns debt securities (current marketable securities) and equity securities (non-current marketable securities), as quoted below:
Our marketable securities consist of investments in debt and equity securities. Our current marketable securities are debt securities invested in U.S. government treasuries and are classified as available-for-sale."
and below:
Our noncurrent marketable securities are equity securities and consist of our investment in the publicly-traded shares of our immediate parent company Valhi, Inc. Our shares of Valhi common stock are accounted for as available-for-sale securities, which are carried at fair value using quoted market prices in active markets and represent a Level 1 input within the fair value hierarchy, as defined by ASC Topic 82. At December 31, 2022 and June 30, 2023, we held approximately 1.2 million shares of common stock of our immediate parent company, Valhi, Inc."
3) A non-cash loss of $4.9 million due to the termination of its U.K. pension plan, which is a non-recurring item, so it will not weigh on NL's bottom line in the next years, as quoted below:
We previously maintained a defined benefit pension plan in the U.K. related to a former disposed U.K. business unit. In accordance with applicable U.K. pension regulations, we entered into an agreement in March 2021 for the bulk annuity purchase, or “buy-in,” with a specialist insurer of defined benefit pension plans. Following the buy-in, individual policies replaced the bulk annuity policy in a “buy-out” which was completed as of May 1, 2023. The buy-out was completed with existing plan funds. At the completion of the buy-out, the assets and liabilities of the U.K. pension plan were removed from our Consolidated Financial Statements and a non-cash pension plan termination loss of $4.9 million was recognized in the second quarter of 2023."
When it comes to NL's cash flow, it's highly dependent on CIX's cash flow, but it's not equal to CIX's cash flow because NL does not own 100% of CIX, as quoted below:
We do not have complete access to CompX’s cash flows in part because we do not own 100% of CompX."
That said, NL has generated positive operating cash flow (OCF) and positive free cash flow (OCF - CapEx) in H1 2023.
Furthermore, it must not pass unnoticed the fact that its OCF in H1 2023 was up about 55% compared to prior year period, as illustrated below (in thousands):
Six months ended | ||||||
June 30, | ||||||
2022 | 2023 | |||||
(unaudited) | ||||||
Cash flows from operating activities: | ||||||
Net income (loss) | $ | 50,266 | $ | (8,530) | ||
Depreciation and amortization | 1,956 | 2,009 | ||||
Deferred income taxes | 9,099 | (5,957) | ||||
Equity in (earnings) losses of Kronos Worldwide, Inc. | (31,524) | 7,153 | ||||
Dividends received from Kronos Worldwide, Inc. | 13,384 | 13,384 | ||||
Marketable equity securities | (19,871) | 10,959 | ||||
Loss on pension plan termination | — | 4,911 | ||||
Benefit plan expense greater than cash funding | 278 | 355 | ||||
Noncash interest income | — | (1,839) | ||||
Noncash interest expense | 480 | 374 | ||||
Other, net | (32) | 199 | ||||
Change in assets and liabilities: | ||||||
Accounts and other receivables, net | (1,995) | 2,787 | ||||
Inventories, net | (7,735) | (2,585) | ||||
Prepaid expenses and other | (1,249) | 508 | ||||
Accounts payable and accrued liabilities | 663 | (1,777) | ||||
Accounts with affiliates | (115) | 622 | ||||
Accrued environmental remediation and related costs | 96 | (999) | ||||
Other noncurrent assets and liabilities, net | (76) | (646) | ||||
Net cash provided by operating activities | 13,625 | 20,928 | ||||
Cash flows from investing activities: | ||||||
Capital expenditures | (2,215) | (478) | ||||
Marketable securities: | ||||||
Purchases | — | (49,966) | ||||
Proceeds from maturities | — | 26,000 | ||||
Note receivable from affiliate: | ||||||
Collections | 12,400 | 14,700 | ||||
Loans | (10,300) | (13,700) | ||||
Other, net | 150 | — | ||||
Net cash provided by (used in) investing activities | 35 | (23,444) |
Valuation
NL's market cap at $4.80 per share is approximately $235 million. As linked above, cash & cash equivalents & marketable securities are approximately $141 million, while interest-bearing debt is zero in Q2 2023. Therefore, the Enterprise Value is approximately $94 million at $4.80 per share.
I project that Revenue and adj. EBITDA in 2023 will be approximately $160 million and $19 million, respectively. As a result, EV-to-2023 Revenue and EV-to-2023 adj. EBITDA are estimated to be about 0.6 times and 5 times, respectively, at the price of $4.80 per share. In other words, NL is very cheap no matter how you slice it.
Positive Outlook
As noted above, NL conducts its operations through its majority-owned subsidiary CIX. And CIX is a highly profitable company with zero debt and a lot of cash that has consistently generated positive operating cash flow and free cash flow over the last years, so it can afford to grow its business by expanding its geographic footprint and enhancing its product portfolio in the foreseeable future.
On top of this, outlook for CIX's business is positive , despite some short-term challenges, as quoted from the annual report :
During 2023, labor markets have become increasingly more favorable in each of the regions we operate and material prices have either stabilized or, in the case of certain commodity raw materials, started to decline slightly. Our supply chains are stable and transportation and logistical delays are minimal, although we continue to face long lead times related to certain electronic and specialty components. We have adjusted production rates at our facilities to reflect the stability of our raw material supplies and near-term demand levels."
and:
We have been able to somewhat offset the towboat market sales declines with increased sales to industrial customers but we do not expect increases in sales to the industrial market will fully offset weakened towboat demand. Overall, we expect Marine Components gross margin as a percentage of net sales for the full year of 2023 to be comparable to 2022 as the product mix experienced in the second quarter of 2023 is expected to be more indicative of the product mix for the remainder of the year."
and:
With raw materials and other components more readily available, we believe we will be able to achieve additional operating efficiencies during the year although the extent and impact of such efficiencies is not yet known. Our expectations for our operations and the markets we serve are based on a number of factors outside our control. As noted above, there continue to be some global and domestic supply chain challenges and any future impacts on our operations will depend on, among other things, any future disruption in our operations or our suppliers’ operations, the impact of economic conditions and geopolitical events on demand for our products or our customers’ and suppliers’ operations, all of which remain uncertain and cannot be predicted."
As quoted in the previous paragraph, NL's revenue are coming from CIX. However, as noted above, the minority stake in KRO is included into NL's balance sheet and impacts NL's bottom line positively or negatively every year, so it's good to know that long-term outlook for KRO's business is positive , as quoted from the annual report (emphasis added):
Although Kronos began to see pockets of improving demand in the first quarter of 2023, overall, Kronos continued to experience general economic weakness as customers operated at reduced production rates due to softer than expected sales and inventory right sizing. Kronos expects customer demand will gradually return throughout the year; however, based on current and expected near-term demand, Kronos will continue to operate certain of its facilities at reduced production rates during the second quarter to manage inventory levels. Kronos’ selling prices have remained relatively stable during the first quarter of 2023, and it expects selling prices will rise throughout the remainder of 2023, improving margins as demand increases. Because of the sluggish demand recovery and higher production costs resulting from unfavorable fixed cost absorption at lowered production rates, Kronos expects to report lower operating results for the full year of 2023 as compared to 2022. Kronos will continue to monitor current and anticipated near-term customer demand levels and align its production and inventories accordingly. Kronos believes the long-term outlook for its industry remains positive, and is taking steps in the near term which are intended to preserve its competitive position and future growth."
and (emphasis added):
TiO 2 is considered a “quality-of-life” product. Demand for TiO 2 has generally been driven by worldwide gross domestic product and has generally increased with rising standards of living in various regions of the world. According to industry estimates, TiO 2 consumption has grown at a compound annual growth rate of approximately 2% since 2000. Per capita consumption of TiO 2 in Western Europe and North America far exceeds that in other areas of the world, and these regions are expected to continue to be the largest consumers of TiO 2 on a per capita basis for the foreseeable future. Kronos believes that Western Europe and North America currently each account for approximately 16% of global TiO 2 consumption. Markets for TiO 2 are generally increasing in China, the Asia Pacific region, South America and Eastern Europe, and Kronos believes these are significant markets which will continue to grow as economies in these regions develop and quality-of-life products, including TiO 2 , experience greater demand."
and (emphasis added):
We consider TiO 2 to be a “quality of life” product, with demand affected by gross domestic product, or GDP, and overall economic conditions in our markets located in various regions of the world. Over the long-term, we expect demand for TiO 2 will grow by 2% to 3% per year, consistent with our expectations for the long-term growth in GDP. However, even if we and our competitors maintain consistent shares of the worldwide market, demand for TiO 2 in any interim or annual period may not change in the same proportion as the change in GDP, in part due to relative changes in the TiO 2 inventory levels of our customers. We believe our customers’ inventory levels are influenced in part by their expectation for future changes in TiO 2 selling prices as well as their expectation for future availability of product. Although certain of our TiO 2 grades are considered specialty pigments, the majority of our grades and substantially all of our production are considered commodity pigment products with price and availability being the most significant competitive factors along with product quality and customer and technical support services."
Long Dividend History And Dividend Sustainability
NL is not new in paying dividends. NL has paid dividends since 1996, so I believe that it deserves to be included into an income portfolio.
Based on the results for the first half of 2023 and outlook for CIX's business, I project that annual operating cash flow will be at least $30 million in 2023 and the foreseeable future.
Meanwhile, annual CapEx has never exceeded $5 million over the last years, as shown here . And it was just $.5 million in the first half of 2023, all of which relate to CIX, as quoted below (emphasis added):
Our capital expenditures, all of which relate to CompX, were $.5 million in the first six months of 2023 compared to $2.2 million in the first six months of 2022. "
So it's not surprising that CapEx in 2023 will be less than $5 million for another year in a row, as quoted below (emphasis added):
Firm purchase commitments for capital projects in process at June 30, 2023 totaled $.1 million. CompX expects to spend $2.7 million during 2023 on capital investments, primarily those expenditures required to meet CompX’s existing customer demand and to properly maintain its facilities and technology infrastructure."
On that front, I forecast that annual CapEx will continue to be less than $5 million in the foreseeable future, so I project that annual free cash flow will be at least $25 million in 2023 and the next years.
Meanwhile, annual dividend payment is only $14 million , based on $0.28 per share annual dividend. Therefore, the annual free cash flow can fully cover the annual dividend payment in 2023 and the foreseeable future.
On top of this, NL has zero debt and cash & cash equivalents & marketable securities of approximately $141 million (Q2 2023), so this large cash cushion can be used to cover the gap, if any, between free cash flow and annual dividend payment in the next years.
After all, I project that the regular quarterly dividend is safe. And actually, NL has enough room to raise it in the next years.
The 7% Special Dividend
In August 2022, NL announced a special dividend of $0.35 per share, which translates into a current yield of approximately 7%. From a cash flow standpoint, NL paid just $17 million , which is a very small portion of its cash & cash equivalents & marketable securities of $141 million in Q2 2023. NL also noted that (emphasis added):
This special dividend, which is being funded from excess cash flows , is in addition to NL’s previously announced quarterly cash dividend of $0.07 per share that is payable on September 20, 2022 to shareholders of record at the close of business on September 1, 2022."
Last year's special dividend also is a strong indication that NL is confident about these things:
1) Its remaining cash is more than enough to meet payments in the future, if any, related to lead-paint complaints.
2) It does not expect to have any cash flow problems, and projects that it will continue to generate positive operating cash flow and positive free cash in the foreseeable future.
Given also that NL is a consistently profitable, debt-free company with its cash & cash equivalents & marketable securities being approximately $141 million (Q2 2023), I believe that NL has enough room for more special dividends, so more special dividends are very likely in the foreseeable future.
High Insider Ownership
Insider ownership is very high, so insiders' interests are aligned with shareholders'. Specifically, based on the most recent proxy statement , the Simmons family owns 82.7% in NL, as illustrated below:
NL Common Stock | |||||
Amount and Nature of | Percent of | ||||
Name of Beneficial Owner | Beneficial Ownership | Class | |||
5% Shareholders: | |||||
Harold C. Simmons Family Trust No. 2 | 40,387,531 | 82.7 | % | ||
Lisa K. Simmons | 40,387,531 | 82.7 | % | ||
Directors and Named Executive Officers | |||||
Loretta J. Feehan | 26,150 | * | |||
John E. Harper | 23,150 | * | |||
Meredith W. Mendes | 19,650 | * | |||
Cecil H. Moore, Jr. | 34,650 | * | |||
Courtney J. Riley | ?0? | ?0? | |||
Michael S. Simmons | ?0? | ?0? | |||
Thomas P. Stafford | 19,650 | * | |||
Robert D. Graham | 6,500 | * | |||
Andrew B. Nace | ?0? | ?0? | |||
John R. Powers, III | ?0? | ?0? | |||
Amy A. Samford | 2,000 | * | |||
Current directors and executive officers as a group | 126,250 | * |
* Less than one percent.
Risks
1) NL is a small cap stock with relatively low daily volume due mainly to the high insider ownership, so high volatility is likely. Therefore, NL is not for day traders, momentum traders or short-term traders. Instead, the potential buyers need to have a 12-month investment horizon (at least).
2) NL's revenue are highly dependent on CIX's business, which faces competition, as quoted from CIX's report below:
The markets in which CompX participates are highly competitive. CompX competes primarily on the basis of product design, including space utilization and aesthetic factors, product quality and durability, price, on-time delivery, service and technical support. CompX focuses its efforts on the middle and high-end segments of the market, where product design, quality, durability and service are valued by the customer. CompX’s Security Products business competes against a number of domestic and foreign manufacturers. CompX’s Marine Components business competes with small domestic manufacturers and is minimally affected by foreign competitors."
3) The minority stake in KRO (NL owned approximately 35.2 million shares of KRO's common stock at June 30, 2023) impacts NL's bottom line positively or negatively every year, as also noted in a previous paragraph. And KRO faces competition despite its leading market position and the positive industry outlook, as quoted from KRO's report below (emphasis added):
The TiO 2 industry is highly competitive. Kronos competes primarily on the basis of price, product quality, technical service and the availability of high performance pigment grades. Since TiO 2 is not traded through a commodity market, its pricing is largely a product of negotiation between suppliers and their respective customers. Price and availability are the most significant competitive factors along with quality and customer service for the majority of its product grades. Increasingly, Kronos is focused on providing pigments that are differentiated to meet specific customer requests and specialty grades that are differentiated from its competitors’ products.
Kronos believes it is the leading seller of TiO 2 in several countries, including Germany. Overall, Kronos is one of the top five producers of TiO 2 in the world, with an estimated 7% share of worldwide TiO 2 sales volume in 2022.
Kronos’ principal competitors are The Chemours Company, Tronox Incorporated, LB Group Co. Ltd. and Venator Materials PLC. The top five TiO 2 producers (i.e. Kronos and its four principal competitors) account for approximately 52% of the world’s production capacity.
The following chart shows Kronos’ estimate of worldwide production capacity in 2022:
Worldwide production capacity – 2022 | |||
Chemours | 15 | % | |
Tronox | 12 | % | |
LB Group Co. Ltd. | 11 | % | |
Venator | 7 | % | |
Kronos | 7 | % | |
Other | 48 | % |
4) The Lead pigment litigation, as quoted below (emphasis added):
Our former operations included the manufacture of lead pigments for use in paint and lead-based paint. We, other former manufacturers of lead pigments for use in paint and lead-based paint (together, the “former pigment manufacturers”), and the Lead Industries Association ((LIA)), which discontinued business operations in 2002, have been named as defendants in various legal proceedings seeking damages for personal injury, property damage and governmental expenditures allegedly caused by the use of lead-based paints. Certain of these actions have been filed by or on behalf of states, counties, cities or their public housing authorities and school districts, and certain others have been asserted as class actions. These lawsuits seek recovery under a variety of theories, including public and private nuisance, negligent product design, negligent failure to warn, strict liability, breach of warranty, conspiracy/concert of action, aiding and abetting, enterprise liability, market share or risk contribution liability, intentional tort, fraud and misrepresentation, violations of state consumer protection statutes, supplier negligence and similar claims.
The plaintiffs in these actions generally seek to impose on the defendants responsibility for lead paint abatement and health concerns associated with the use of lead-based paints, including damages for personal injury, contribution and/or indemnification for medical expenses, medical monitoring expenses and costs for educational programs. To the extent the plaintiffs seek compensatory or punitive damages in these actions, such damages are generally unspecified. In some cases, the damages are unspecified pursuant to the requirements of applicable state law. A number of cases are inactive or have been dismissed or withdrawn. Most of the remaining cases are in various pre-trial stages. Some are on appeal following dismissal or summary judgment rulings or a trial verdict in favor of either the defendants or the plaintiffs.
We believe these actions are without merit , and we intend to continue to deny all allegations of wrongdoing and liability and to defend against all actions vigorously. We do not believe it is probable we have incurred any liability with respect to pending lead pigment litigation cases to which we are a party, and with respect to all such lead pigment litigation cases to which we are a party, we believe liability to us that may result, if any, in this regard cannot be reasonably estimated, because:? we have never settled any of the market share, intentional tort, fraud, nuisance, supplier negligence, breach of warranty, conspiracy, misrepresentation, aiding and abetting, enterprise liability, or statutory cases.
? no final, non-appealable adverse judgments have ever been entered against us.
? we have never ultimately been found liable with respect to any such litigation matters, including over 100 cases over a thirty-year period for which we were previously a party and for which we have been dismissed without any finding of liability.
Accordingly, we have not accrued any amounts for any of the pending lead pigment and lead-based paint litigation cases filed by or on behalf of states, counties, cities or their public housing authorities and school districts, or those asserted as class actions. In addition, we have determined that liability to us which may result, if any, cannot be reasonably estimated at this time because there is no prior history of a loss of this nature on which an estimate could be made and there is no substantive information available upon which an estimate could be based."
In other words, this risk has to do with uncertainty regarding the outcome of the aforementioned litigation. Will NL finally pay a fine? If yes, how much?
However, the following facts favoring NL cannot pass unnoticed, as quoted above:
A) A number of cases are inactive or have been dismissed or withdrawn.
B) No final, non-appealable adverse judgments have ever been entered so far against NL.
C) NL has never ultimately been found liable with respect to any such litigation matters, including over 100 cases over a thirty-year period .
On top of this, there is one more key fact favoring NL that cannot pass unnoticed. Specifically, NL has insurance coverage agreements in place, so these insurers will reimburse NL for a portion of the future lead pigment litigation defense costs, if any, as quoted from the company's report linked above (emphasis added):
Insurance coverage claims: We are involved in certain legal proceedings with a number of our former insurance carriers regarding the nature and extent of the carriers’ obligations to us under insurance policies with respect to certain lead pigment lawsuits. The issue of whether insurance coverage for defense costs or indemnity or both will be found to exist for our lead pigment and asbestos litigation depends upon a variety of factors and we cannot assure you that such insurance coverage will be available.
We have agreements with certain of our former insurance carriers pursuant to which the carriers reimburse us for a portion of our future lead pigment litigation defense costs. We are not able to determine how much we will ultimately recover from these carriers for defense costs incurred by us because of certain issues that arise regarding which defense costs qualify for reimbursement. While we continue to seek additional insurance recoveries, we do not know if we will be successful in obtaining reimbursement for either defense costs or indemnity. Accordingly, we recognize insurance recoveries in income only when receipt of the recovery is probable and we are able to reasonably estimate the amount of the recovery."
5) The case with California Department of Toxic Substances Control, as quoted from the company's report linked above (emphasis added):
California Department of Toxic Substances Control v. NL Industries, Inc., et al. In July 2023, following a trial on limited issues, the Court issued an order finding that the California Department of Toxic Substances Control had established the liability of NL and certain other defendants. The Court has not yet addressed allocation or damages , which will be determined in later proceedings."
For further details see:
NL Industries: Undiscovered Dividend Stock For Income And Capital Gains