TOR Minerals International Reports Third Quarter Financial Results

      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%
TiO[2]Pigments                       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