TOR Minerals International, Inc. Reports Second Quarter Financial Results

  TOR Minerals International, Inc. Reports Second Quarter Financial Results

PR Newswire

CORPUS CHRISTI, Texas, July 25, 2013

CORPUS CHRISTI, Texas, July 25, 2013 /PRNewswire/ -- TOR Minerals
International, Inc., (Nasdaq: TORM), producer of high performance specialty
minerals, today announced its financial results for the second quarter ended
June 30, 2013. Results for the second quarter of 2013 as compared to the
second quarter of 2012 included:

  o2Q13 revenue decreased 24% to $10.7 million
  o2Q13 diluted net income of $150,000 versus 2Q12 diluted net income of $1.6
  o2Q13 diluted earnings per share of $0.04 versus 2Q12 diluted earnings per
    share of$0.45
  oShareholders' equity as of June 30, 2013 was $11.88 per diluted share,
    versus $12.00 as of December 31, 2012

Revenue by Product Group (in 000's)  2Q13      2Q12      % Change
TiO[2]Pigments                       $  4,364  $  7,485  -42%
Specialty Aluminas                   4,040       4,578       -12%
Barium Sulfate and Other Products    2,328       2,045       14%
Total                                $ 10,732    $ 14,108    -24%

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

As expected, revenue from titanium dioxide (TiO2) pigments products, which
include HITOX®, TIOPREM® and synthetic rutile (SR) products, continued to be
affected by weakness in the broader market for TiO2. Specialty alumina, which
includes the ALUPREM®, HALTEX® and OPTILOAD®, declined 12 percent during the
quarter, which was primarily related to variations in the order patterns of
two large customers. Barium sulfate and other product sales increased 14
percent, primarily due to increased volumes from new and existing BARTEX®
customers in the United States.

During the second quarter of 2013, gross margin decreased to 16.0 percent of
revenue, versus 26.0 percent during the same period a year ago, and was 2.9
percentage points greater than the first quarter of 2013. The decrease in
year-over-year gross margin comparisons was primarily due to lower average
selling prices and increased raw material costs. Operating expenses decreased
2.9 percent to $1.4 million. During the second quarter, net income to common
shareholders was $150,000, or $0.04 per diluted share, as compared to net
income of $1.6 million, or $0.45 per diluted share, during the same period a
year ago.

Commenting on results, Dr. Olaf Karasch, CEO of TOR Minerals, said, "Our
strategic focus remains on product innovation and continued reduction in
production costs. As our new value-added products continue to gain market
acceptance, we are focusing on achieving significant growth from our specialty
alumina products over the next year. While we expect near-term profitability
to continue to be negatively affected by lower prevailing TiO2 prices and the
increased costs for related raw materials and energy, we also expect that
fixed cost absorption in our Malaysian SR plant should improve through the
balance of the year. In addition, we expect the incremental investments in
our Malaysian SR plant to improve yields and reduce production costs."

"Based on more favorable customer inventory levels and commentary from large
TiO2 commodity producers, we are cautiously optimistic for a market recovery
during second half of the year. In addition, we continue to innovate and have
had success with our new premium TiO2 color pigment product, TIOPREM, which
saw a 52 percent growth during the first half of 2013 and represented 13
percent of our 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. Karasch.

TOR Minerals will host a conference call at 4:00 p.m. CDT on July 25, 2013, to
further discuss its second quarter results. The call will be simultaneously
webcast, and can be accessed via the "News" section on the Company's website, Investors and interested parties may participate in the
call by dialing 877-407-8033 and referring to conference ID # 417461.

Headquartered in Corpus Christi, Texas, TOR Minerals International, Inc. 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

TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
                                             Three Months     Six Months
                                             Ended June 30,   Ended June 30,
                                             2013     2012     2013     2012
NET SALES                                  $ 10,732 $ 14,108 $ 22,159 $ 26,916
Cost of sales                                9,020    10,441   18,953   20,059
GROSS MARGIN                                 1,712    3,667    3,206    6,857
Technical services and research and          171      101      324      183
Selling, general and administrative          1,247    1,359    2,525    2,583
Loss on disposal of assets                   -        -        10       -
OPERATING INCOME                             294      2,207    347      4,091
Interest expense, net                        (99)     (112)    (183)    (254)
Gain (loss) on foreign currency exchange     20       (20)     (67)     3
Other, net                                   -        1        12       1
INCOME BEFORE INCOME TAX                     215      2,076    109      3,841
Income tax expense                          65       517      34       886
NET INCOME                                 $ 150    $ 1,559  $ 75       2,955
Plus: 6% Convertible Debenture Interest     -        14       -        36
Income Available to Common Shareholders    $ 150    $ 1,573  $ 75       2,991
Income per common share:
Basic                                      $ 0.05   $ 0.56   $ 0.03   $ 1.14
Diluted                                    $ 0.04   $ 0.45   $ 0.02   $ 0.87
Weighted average common shares
Basic                                        2,998    2,769    2,992    2,585
Diluted                                      3,404    3,462    3,196    3,451

TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
                                                    June 30,      December 31,
                                                    2013          2012
Cash and cash equivalents                         $ 891         $ 2,799
Trade accounts receivable, net                      5,398         3,972
Inventories, net                                    25,961        22,895
Other current assets                                1,435         1,822
Total current assets                                33,685        31,488
PROPERTY, PLANT AND EQUIPMENT, net                 23,594        22,933
OTHER ASSETS                                        24            25
Total Assets                                      $ 57,303      $ 54,446
Accounts payable                                  $ 5,621       $ 4,608
Accrued expenses                                    1,616         1,864
Notes payable under lines of credit                 3,396         2,109
Export credit refinancing facility                  1,873         394
Current deferred tax liability                      -             173
Current maturities - capital leases                 18            33
Current maturities of long-term debt – financial    1,180         1,202
Total current liabilities                           13,704        10,383
Capital leases                                      3             12
Long-term debt – financial institutions             2,063         2,316
DEFERRED TAX LIABILITY                              1,087         1,007
Total liabilities                                   16,857        13,718
3,012 shares issued and outstanding at 6/30/2013
and2,987 shares issued and outstanding at          3,765         3,733
Additional paid-in capital                          29,314        29,017
Retained earnings                                   3,344         3,269
Accumulated other comprehensive income:
Cumulative translation adjustment                   4,023         4,709
Total shareholders' equity                          40,446        40,728
Total Liabilities and Shareholders' Equity        $ 57,303      $ 54,446

TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
                                                     Six Months Ended June 30,
                                                     2013            2012
Net Income                                         $ 75         $    2,955
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
Depreciation                                         1,533           1,179
Loss on disposal of assets                           10              -
Share-based compensation                             62              58
Convertible debenture interest expense               -               22
Deferred income taxes                                (71)            215
Changes in working capital:
Trade accounts receivables                           (1,419)         (2,591)
Inventories                                          (3,493)         (5,372)
Other current assets                                 356             (625)
Accounts payable and accrued expenses                881             1,542
Net cash used in operating activities                (2,066)         (2,617)
Additions to property, plant and equipment           (2,580)         (2,031)
Proceeds from sales of property, plant and           2               -
Net cash used in investing activities                (2,578)         (2,031)
Net proceeds from (payments on) lines of credit      1,337           823
Net proceeds from export credit refinancing          1,492           2,303
Net (payments on) proceeds from capital leases       (24)            31
Proceeds from long-term bank debt                    276             536
Payments on long-term bank debt                      (503)           (399)
Proceeds from the issuance of common stock and       267             115
exercise of common stock options
Net cash provided by provided by financing           2,845           3,409
Effect of foreign currency exchange rate             (109)           (78)
fluctuations on cash and cash equivalents
Net decrease in cash and cash equivalents            (1,908)         (1,317)
Cash and cash equivalents at beginning of year       2,799           3,381
Cash and cash equivalents at end of period         $ 891        $    2,064
Supplemental cash flow disclosures:
Interest paid                                      $ 157        $    254
Income taxes paid                                  $ 240        $    -

SOURCE TOR Minerals International, Inc.

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