TOR Minerals International Reports Third Quarter Financial Results PR Newswire CORPUS CHRISTI, Texas, Nov. 5, 2013 CORPUS CHRISTI, Texas, Nov. 5, 2013 /PRNewswire/ --TOR Minerals International (Nasdaq: TORM), producer of, high performance specialty minerals, today announced its financial results for the third quarter ended September 30, 2013. Results for the third quarter of 2013 as compared to the third quarter of 2012 included: o3Q13 revenue decreased 45% to $10.9 million o3Q13 diluted net income of $113,000 versus 3Q12 diluted net income of $1.8 million o3Q13 diluted earnings per share: $0.03 versus 3Q12 diluted EPS: $0.53 oShareholders' equity as of September 30, 2013 was $ 11.78 per diluted share, versus $12.00 as of December 31, 2012 Revenue by Product Group (in 000's) 3Q13 3Q12 % Change Specialty Aluminas $ 4,309 $ 4,294 0% TiOPigments 4,221 13,399 -68% Barium Sulfate and Other Products 2,340 2,221 5% Total $ 10,870 $ 19,914 -45% * 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, were affected adversely by continued weakness in the broader market for TiO2 and a large third-party order for SR in 2012 that did not recur this year. Specialty alumina, which includes the ALUPREM^®, HALTEX^® and OPTILOAD^®, were $4.3 million, approximately unchanged from the prior year. Barium sulfate and other product sales increased five percent, primarily due to increased volumes from new and existing BARTEX^® customers in the United States, as well as an increase in volume for BARYPREM in Europe. During the third quarter of 2013, gross margin decreased to 14.5 percent of revenue, versus 19.3 percent during the same period a year ago. The decrease in year-over-year gross margin comparisons was primarily to lower average selling prices for TiO2 pigment products and the impact of a large third-party sale of SR in 2012 that did not recur this year. Operating expenses decreased 5.9 percent to approximately $1.3 million. During the third quarter, net income to common shareholders was $113,000, or $0.03 per diluted share, as compared to net income of $1.8 million, or $0.53 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 continuous reduction in production costs. While we expect near-term profitability will likely continue to be negatively affected by lower prices, lower fixed cost absorption, and the increased costs of raw materials and energy, improved production efficiencies and improve yields should help to partially offset these factors. In addition, our future results will benefit if our recently introduced specialty alumina and TiO2 color pigment products continue to gain market acceptance and these new specialty alumina and TiO2 color pigment products are showing promise." TOR Minerals will host a conference call at 4:00 p.m. CT on November 5, 2013, to further discuss its third 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 #100622. 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 Income Statements (Unaudited) (In thousands, except per share amounts) Three Months Nine Months Ended September 30, Ended September 30, 2013 2012 2013 2012 NET SALES $ 10,870 $ 19,914 $ 33,029 $ 46,830 Cost of sales 9,289 16,068 28,242 36,127 GROSS MARGIN 1,581 3,846 4,787 10,703 Technical services and research 135 90 459 273 and development Selling, general and 1,119 1,242 3,644 3,825 administrative expenses (Gain) loss on disposal of - (6) 10 (6) assets OPERATING INCOME 327 2,520 674 6,611 OTHER EXPENSE: Interest expense, net (103) (143) (286) (397) Loss on foreign currency (84) (24) (151) (21) exchange rate Other, net 6 - 18 1 INCOME BEFORE INCOME TAX 146 2,353 255 6,194 Income tax expense 33 516 67 1,402 NET INCOME $ 113 $ 1,837 $ 188 $ 4,792 Plus: 6% Convertible Debenture - - - 36 Interest Expense Income Available to Common $ 113 $ 1,837 $ 188 $ 4,828 Shareholders Income per common share: Basic $ 0.04 $ 0.62 $ 0.06 $ 1.77 Diluted $ 0.03 $ 0.53 $ 0.06 $ 1.43 Weighted average common shares outstanding: Basic 3,012 2,968 2,999 2,714 Diluted 3,422 3,441 3,271 3,383 TOR Minerals International, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except per share amounts) September 30, December 31, 2013 2012 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,799 $ 2,799 Trade accounts receivable, net 4,896 3,972 Inventories, net 27,141 22,895 Other current assets 956 1,822 Total current assets 34,792 31,488 PROPERTY, PLANT AND EQUIPMENT, net 23,806 22,933 OTHER ASSETS 23 25 Total Assets $ 58,621 $ 54,446 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 5,998 $ 4,608 Accrued expenses 1,479 1,864 Notes payable under lines of credit 2,869 2,109 Export credit refinancing facility 3,970 394 Current deferred tax liability 173 173 Current maturities - capital leases 17 33 Current maturities of long-term debt – 1,111 1,202 financial institutions Total current liabilities 15,617 10,383 LONG-TERM DEBT, net of current maturities Capital leases - 12 Long-term debt – financial institutions 1,846 2,316 DEFERRED TAX LIABILITY 840 1,007 Total liabilities 18,303 13,718 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Common stock $1.25 par value: authorized, 6,000 shares; 3,012 shares issued and outstanding at 3,765 3,733 September 30, 2013 and 2,987 shares issued and outstanding at December 31, 2012 Additional paid-in capital 29,338 29,017 Retained earnings 3,457 3,269 Accumulated other comprehensive income: Cumulative translation adjustment 3,758 4,709 Total shareholders' equity 40,318 40,728 Total Liabilities and Shareholders' Equity $ 58,621 $ 54,446 TOR Minerals International, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Nine Months Ended September 30, 2013 2012 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 188 $ 4,792 Adjustments to reconcile net income to net cash used in operating activities: Depreciation 2,355 1,842 Loss on disposal of assets 10 (6) Share-based compensation 85 71 Convertible debenture interest expense - 22 Deferred income taxes (123) 572 Provision for bad debts 3 69 Changes in working capital: Trade accounts receivables (903) (9,499) Inventories (5,011) (1,601) Other current assets 814 (788) Accounts payable and accrued expenses 1,135 2,684 Net cash used in operating activities (1,447) (1,842) CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property, plant and equipment (3,529) (3,068) Proceeds from sales of property, plant and equipment 2 8 Net cash used in investing activities (3,527) (3,060) CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from lines of credit 804 1,656 Net proceeds from export credit refinancing facility 3,600 1,032 Net (payments on) proceeds from capital leases (30) 5 Proceeds from long-term bank debt 276 774 Payments on long-term bank debt (815) (605) Proceeds from the issuance of common stock and exercise of 267 148 common stock options Net cash provided by financing activities 4,102 3,010 Effect of foreign currency exchange rate fluctuations on (128) 69 cash and cash equivalents Net decrease in cash and cash equivalents (1,000) (1,823) Cash and cash equivalents at beginning of year 2,799 3,381 Cash and cash equivalents at end of period $ 1,799 $ 1,558 Supplemental cash flow disclosures: Interest paid $ 286 $ 397 Income taxes paid $ 240 $ - SOURCE TOR Minerals International, Inc. Website: http://www.torminerals.com
TOR Minerals International Reports Third Quarter Financial Results
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