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TOR Minerals International Reports First Quarter Financial Results



      TOR Minerals International Reports First Quarter Financial Results

PR Newswire

CORPUS CHRISTI, Texas, April 30, 2013

CORPUS CHRISTI, Texas, April 30, 2013 /PRNewswire/ -- TOR Minerals
International (Nasdaq: TORM), producer of synthetic titanium dioxide and color
pigments, specialty aluminas, and other high performance mineral fillers,
today announced its financial results for the first quarter ended March 31,
2013. Highlights for the first quarter of 2013 as compared to the first
quarter of 2012 included:

  o 1Q13 revenue decreased 11% to $11.4 million
  o 1Q13 diluted net loss of $75,000 versus 1Q12 net income of $1.4 million
  o 1Q13 diluted loss per share : ($0.03) versus 1Q12 diluted EPS: $0.41
  o Shareholders' equity as of March 31, 2013 increased to $13.48 per diluted
    share, versus $10.36 at the same time last year

 

Revenue by Product Group (in 000's)   1Q13        1Q12        % Change 
TiO[2 ]Pigments                      $    4,619  $    6,135  -25%
Specialty Aluminas                   4,734       4,742       0%
Other                                2,074       1,931       7%
Total                                $ 11,427    $ 12,808    -11%

* BARYPREM sales have been reclassified from Specialty Aluminas to "Other"
which consists of Barium Sulfate and Other Specialty Minerals to make
comparisons more meaningful. 

Net sales decreased 11 percent during the first quarter of 2013, as a 25
percent decrease in TiO2 Pigment sales was only partially offset by a flat
year-over-year comparison in specialty alumina sales and a 7 percent increase
in other specialty minerals.  As expected, sales volumes of Titanium dioxide
(TiO2) pigment products, which include HITOX®, TIOPREM® and synthetic rutile
(SR) products, continued to be adversely affected by weakness in the broader
market for TiO2.  Pricing of TiO2 products were relatively unchanged year over
year.  The flat comparison in Specialty alumina sales, which includes the
ALUPREM®, HALTEX® and OPTILOAD®, was primarily related to the order patterns
of a large U.S. customer and shift in product mix to lower priced products,
offsetting increasing sales in Europe.  Barium Sulfate and other product sales
increased 7 percent, primarily due to increased volumes from new and existing
BARTEX® customers in the United States.

During the first quarter of 2013, gross margin decreased to 13.1 percent of
sales, versus 24.9 percent during the same period a year ago.  Almost half of
the decrease in gross margin was related to lower utilization of the SR
production plant in Malaysia.  As previously disclosed, the Company's SR
production plant was shut down for the entire first quarter to perform
significant construction and maintenance work. In addition to lower fixed cost
absorption at the Malaysia plant, lower sales volumes and increased input
costs also contributed to the decrease in gross margin.  Pricing for TiO2
pigments and Aluminas were relatively unchanged year over year.  Operating
expenses increased 9.6 percent to $1.4 million, primarily related to increased
staffing levels and research and development expenses.  During the first
quarter, the net loss available to common shareholders was ($75,000), or
($0.03) per diluted share, as compared to net income of $1.4 million, or $0.41
per diluted share, during the same period a year ago.

"While improving, inflated customer inventory levels and soft demand trends
have led to decreased volumes and pricing across the TiO2 industry.  We expect
these market conditions to persist through the first half of 2013 and will
likely continue to negatively affect both sales volumes for our TiO2 pigments
and third-party sales of SR for the next several quarters.  Due to the
value-added nature of our TiO2 products, relative to commodity TiO2 producers,
we have been able to maintain pricing discipline.  In addition, we continue to
innovate and have had success with our new TiO2 product, TIOPREM, which saw a
73 percent growth during the first quarter and represented 13 percent of TiO2
product sales. Longer term, we believe the demand and supply characteristics
in the TiO2 industry will continue to create attractive opportunities for TOR
Minerals, as customers increasingly discover the value-added attributes of
substituting our HITOX® and TIOPREM® products for commodity TiO2," said Dr.
Olaf Karasch.  "On the cost side, we expect near-term profitability to
continue to be negatively affected by increased costs of raw materials and
energy.  However, fixed cost absorption in our Malaysian SR plant should
improve through the balance of the year as we have reduced SR inventory levels
and we expect the incremental investments in improvements at our Malaysian SR
plant to improve yields and reduce our production costs."

"While near-term pressure may impede our ability to deliver growth in our TiO2
business during the next several quarters, we expect continued growth in our
specialty alumina and other product categories during 2013.  Our strategic
focus remains on product innovation and continued reduction in our production
costs with an objective to deliver on our targeted growth of 15% to 20% over
the next three to five years," concluded Dr. Karasch.

TOR Minerals will host a conference call at 4:00 p.m. Central Time on April
30, 2013, to further discuss first quarter results. The call will be
simultaneously Webcast, and can be accessed via the News section on the
Company's website, www.torminerals.com.  Investors and interested parties may
participate in the call by dialing 877-407-8033 and referring to conference ID
# 412700. 

Headquartered in Corpus Christi, Texas, TOR Minerals International is a global
manufacturer and marketer of specialty mineral and pigment products for high
performance applications with manufacturing and regional offices located in
the United States, Netherlands and Malaysia.

This statement provides forward-looking information as that term is defined in
the Private Securities Litigation Reform Act of 1995, and, therefore, is
subject to certain risks and uncertainties. There can be no assurance that the
actual results, business conditions, business developments, losses and
contingencies and local and foreign factors will not differ materially from
those suggested in the forward-looking statements as a result of various
factors, including market conditions, general economic conditions, including
the present slowdown in U.S. construction and the risks of a general business
slow down or recession, the increasing cost of energy, raw materials and
labor, competition, the receptivity of the markets for our anticipated new
products, advances in technology, changes in foreign currency rates, freight
price increase, commodity price increases, delays in delivery of required
equipment and other factors.

Contact for Further Information
Dave Mossberg,
Three Part Advisors, LLC
817 310-0051

Jeff Elliott
Three Part Advisors, LLC
972-423-7070

 

 

 

TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
                                                    Three Months
                                                   Ended March 31, 
                                                   2013      2012
NET SALES                                        $ 11,427  $ 12,808
Cost of sales                                      9,933     9,618
GROSS MARGIN                                       1,494     3,190
Technical services and research and development    153       82
Selling, general and administrative expenses       1,278     1,224
Loss on disposal of assets                         10        -
OPERATING INCOME                                   53        1,884
OTHER EXPENSE:
Interest expense                                   (84)      (142)
(Loss) gain on foreign currency exchange rate      (87)      23
Other, net                                         12        -
INCOME (LOSS) BEFORE INCOME TAX                    (106)     1,765
Income tax (benefit) expense                       (31)      369
NET INCOME (LOSS)                                $ (75)    $ 1,396
Plus:  6% Convertible Debenture Interest Expense   -         22
Income (Loss) Available to Common Shareholders   $ (75)    $ 1,418
Income (loss) per common share:
Basic                                            $ (0.03)  $ 0.58
Diluted                                          $ (0.03)  $ 0.41
Weighted average common shares outstanding:
Basic                                              2,987     2,402
Diluted                                            2,987     3,439

 

 

TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
                                                    March 31,     December 31,
                                                    2013          2012
                                                    (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                         $ 2,258       $ 2,799
Trade accounts receivable, net                      5,376         3,972
Inventories, net                                    22,998        22,895
Other current assets                                1,414         1,822
Total current assets                                32,046        31,488
PROPERTY, PLANT AND EQUIPMENT, net                  23,057        22,933
OTHER ASSETS                                        25            25
Total Assets                                      $ 55,128      $ 54,446
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable                                  $ 3,230       $ 4,608
Accrued expenses                                    1,934         1,864
Notes payable under lines of credit                 4,162         2,109
Export credit refinancing facility                  946           394
Current deferred tax liability                      135           173
Current maturities - capital leases                 19            33
Current maturities of long-term debt – financial    1,192         1,202
institutions
Total current liabilities                           11,618        10,383
LONG-TERM DEBT
Capital leases                                      7             12
Long-term debt – financial institutions             2,351         2,316
DEFERRED TAX LIABILITY                              892           1,007
Total liabilities                                   14,868        13,718
COMMITMENTS AND CONTINGENCIES 
SHAREHOLDERS' EQUITY: 
Common stock $1.25 par value:  authorized, 6,000
shares;                                             3,733         3,733
2,987 shares issued and outstanding at 3/31/2013
and 12/31/2012
Additional paid-in capital                          29,033        29,017
Retained earnings                                   3,194         3,269
Accumulated other comprehensive income:
Cumulative translation adjustment                   4,300         4,709
Total shareholders' equity                          40,260        40,728
Total Liabilities and Shareholders' Equity        $ 55,128      $ 54,446

 

 

TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
                                                  Three Months Ended March 31,
                                                  2013              2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                               $ (75)        $     1,396
Adjustments to reconcile net income (loss) to
net cash
(used in) provided by operating activities:
Depreciation                                      741               540
Loss on disposal of assets                        10                -
Share-based compensation                          16                6
Convertible debenture interest expense            -                 17
Deferred income taxes                             (145)             5
Changes in working capital:
Trade accounts receivables                        (1,390)           (1,031)
Inventories                                       (278)             (1,588)
Other current assets                              392               (142)
Accounts payable and accrued expenses             (1,226)           2,043
Net cash (used in) provided by operating          (1,955)           1,246
activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment        (1,224)           (1,315)
Proceeds from sales of property, plant and        2                 -
equipment
Net cash used in investing activities             (1,222)           (1,315)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from (payments on) lines of credit   2,095             (1,543)
Net proceeds from export credit refinancing       557               1,159
facility
Net (payments on) proceeds from capital leases    (18)              57
Proceeds from long-term bank debt                 276               -
Payments on long-term bank debt                   (200)             (204)
Proceeds from the issuance of common stock and    -                 83
exercise of common stock options
Net cash provided by (used in) financing          2,710             (448)
activities
Effect of foreign currency exchange rate
fluctuations                                      (74)              22
on cash and cash equivalents
Net decrease in cash and cash equivalents         (541)             (495)
Cash and cash equivalents at beginning of year    2,799             3,381
Cash and cash equivalents at end of period      $ 2,258       $     2,886
Supplemental cash flow disclosures:
Interest paid                                   $ 84          $     140
Income taxes paid                               $ 240         $     -

SOURCE TOR Minerals International

Website: http://www.torminerals.com
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