EX-99 2 exhibit99.htm EXHIBIT 99, PRESS RELEASE Exhibit 99.1, Press Release

EXHIBIT 99.1

 

TOR Minerals Announces Third Quarter 2007 Financial Results

 

CORPUS CHRISTI, Texas, November 6th, /PRNewswire-FirstCall/ -- TOR Minerals International (Nasdaq: TORM - News), producer of synthetic titanium dioxide and color pigments, specialty alumina, and other high performance mineral fillers today announced its financial results for the third quarter ended September 30, 2007. The company reported net income available to common shareholders of $150,000, or $0.02 per fully diluted share, on net sales of $7,558,000. This compares with net income available to common shareholders of $1,000, or $0.00 per share, on net sales of $6,998,000 for the quarter ended September 30, 2006.

 

Net sales for the nine months ended September 30, 2007, were $21,992,000 compared to $20,724,000 during the nine-month period ended September 30, 2006. The net income available to common shareholders was $241,000, or $0.03 per diluted share, for the nine months ended September 30, 2007 compared to net income of $308,000, or $0.04 per share, for the same period a year ago.

 

Net sales grew 8% in the third quarter of 2007 compared to the third quarter of last year. Specialty alumina sales grew 105%, which increase was partially offset by a 12% decrease in Hitox® sales and 7% decrease in all other sales.  Profitability improved during the quarter due to increased sales of higher margin products and cost reductions achieved through process improvements, which were partially offset by increased energy costs, raw material costs, and interest expense. 

 

Highlights for the quarter include an increase in specialty alumina sales in Europe which was driven by a combination of new product introductions and sales to new customers.  Sales of Hitox were negatively affected by a general weakness in demand, particularly in the U.S. housing construction industry.   

 

"Our global product and market diversification strategy produced a net sales gain as increased specialty alumina sales in Europe offset declines in Hitox revenue in the United States.  Specialty alumina sales accounted for 30% of our revenue during the quarter, up from 16% a year ago.  Increased utilization of our Netherlands facility combined with increased sales of value-added specialty alumina products and improvements in operation efficiencies made our alumina business the major contributor to profitability during the quarter," said Dr. Olaf Karasch, CEO of TOR Minerals.

 

Dr. Karasch continued, "During the quarter, we made significant strides in developing the next generation of value-added products, which we are introducing as heat and ultraviolet (UV) stable color pigments.  We are aggressively moving forward with production and market development plans to introduce these new products, which we believe have the potential to significantly expand the addressable market for our products.  In addition, we are continuing to make progress in reducing costs through improved processes to offset increasing raw material and energy costs."

 

The company announced plans to produce synthetic rutile in the months of November and December in order to maintain stocking levels and in anticipation of the introduction of the new pigment products in 2008.

 

TOR Minerals will host a conference call at 4:00 p.m. Central Time on November 6, 2007 to further discuss third quarter results. The call will be simultaneously web-cast, and can be accessed via the News section on the company's website at http://www.torminerals.com . Interested parties may also access the conference call via telephone by dialing 877-407-9210.

 

Based in Corpus Christi, Texas, TOR Minerals is an international manufacturer of specialty mineral products for high performance applications with plants and regional offices located in the United States, The Netherlands and Malaysia.

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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 slow down 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:
David Mossberg
Beacon Street Group, LLC
(817) 310-0051

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TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)

 

 

Three Months
Ended September 30,

 

Nine Months
Ended September 30,

 

 

2007

 

2006

 

2007

 

2006

NET SALES

 $

7,558 

 $

6,998 

 $

21,992 

 $

20,724 

Cost of sales

6,082 

5,760 

17,739 

16,392 

GROSS MARGIN

 

1,476 

 

1,238 

 

4,253 

 

4,332 

Technical services and research and development

65 

47 

183 

185 

General, administrative and selling expenses

1,055 

1,028 

3,276 

3,232 

OPERATING INCOME

 

356 

 

163 

 

794 

 

915 

OTHER INCOME (EXPENSE):

Interest income

11 

15 

Interest expense

(179)

(142)

(518)

(399)

Gain (loss) on foreign currency exchange rate

(35)

(23)

16 

(54)

INCOME BEFORE INCOME TAX

 

150 

 

 

303 

 

477 

Income tax expense (benefit)

(15)

(14)

17 

124 

NET INCOME

 $

165 

 $

16 

 $

286 

 $

353 

Less:  Preferred Stock Dividends

15 

15 

45 

45 

Income Available to Common Shareholders

 $

150 

 $

 $

241 

 $

308 

 

 

 

 

 

 

 

 

 

Income per common share:

Basic

 $

0.02 

 $

0.00 

 $

0.03 

 $

0.04 

Diluted

 $

0.02 

 $

0.00 

 $

0.03 

 $

0.04 

Weighted average common shares outstanding:

Basic

7,844 

7,837 

7,672 

7,834 

Diluted

7,844 

7,864 

7,729 

7,886 

 

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TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)

 

September 30,

 

December 31,

 

2007

 

2006

 

 

(Unaudited)

 

 

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

739 

$

896 

Trade accounts receivable, net

4,793 

3,593 

Inventories, net

11,168 

10,949 

Other current assets

921 

555 

Total current assets

17,621 

15,993 

PROPERTY, PLANT AND EQUIPMENT, net

20,217 

20,034 

GOODWILL

2,084 

1,927 

OTHER ASSETS

50 

57 

 

$

39,972 

$

38,011 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

1,628 

$

2,036 

Accrued expenses

2,106 

2,062 

Notes payable under lines of credit

1,403 

811 

Current deferred tax liability

397 

401 

Current maturities - Capital leases

74 

65 

Current maturities of long-term debt - Financial Institutions

605 

580 

Current maturities of long-term debt - Related Parties

400 

Total current liabilities

6,213 

6,355 

LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES

Capital leases

220 

254 

Long-term debt - Financial Institutions

3,173 

2,835 

Notes payable under lines of credit

3,875 

3,525 

DEFERRED TAX LIABILITY

238 

213 

Total liabilities

13,719 

13,182 

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:

Series A 6% convertible preferred stock $.01 par value:
authorized, 5,000 shares; 200 shares issued and outstanding

Common stock $.25 par value:  authorized, 10,000 shares;
7,839 shares issued and outstanding at 6/30/07 and 12/31/06

1,964 

1,960 

Additional paid-in capital

22,834 

22,652 

Accumulated deficit

(2,359)

(2,600)

Accumulated other comprehensive income:

Unrealized gain (loss) on derivatives

81 

Cumulative translation adjustment

3,809 

2,734 

Total shareholders' equity

26,253 

24,829 

 

$

39,972 

$

38,011 

 

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