EX-99 2 exhibit99.htm EXHIBIT 99 - PRESS RELEASE Exhibit 99.1 - TOR Minerals Announces Second Quarter 2005 Financial Results

EXHIBIT 99.1

TOR Minerals Announces Second Quarter 2008 Financial Results

 

CORPUS CHRISTI, Texas, August 7, 2008-- TOR Minerals International (Nasdaq:TORM), producer of synthetic titanium dioxide, color pigments, specialty aluminas, and other high performance mineral fillers, today announced its financial results for the second quarter ended June 30, 2008. The company reported a net loss available to common shareholders of ($353,000), or ($0.04) per diluted share, on net sales of $6,916,000 for the quarter ended June 30, 2008. This compares with net income available to common shareholders of $67,000, or $0.01 per share, on net sales of $7,281,000 for the quarter ended June 30, 2007.

 

Net sales for the six months ended June 30, 2008, was $13,662,000 compared to $14,434,000 during the six-month period ended June 30, 2007. The net loss available to common shareholders was ($957,000), or ($0.12) per diluted share, for the six months ended June 30, 2008 compared to net income of $91,000, or $0.01 per share, for the same period a year ago.

 

Net sales decreased five percent during the second quarter due to decreases in both HITOX® and specialty alumina sales. Specialty alumina sales were 10.1 percent less than second quarter 2007, which reflected a change in the order pattern of a significant U.S. customer.  Sales of specialty alumina products in Europe, which accounted for 82 percent of total alumina sales, increased 41 percent year over year in the second quarter of 2008 and kept pace with the growth experienced in the last several quarters. Second quarter 2008 sales of HITOX declined by 5 percent versus the same period a year ago, as weakness in the North American market was only partially offset by growth in Asia.

 

As previously announced, the company instituted several production and logistics changes, including the completion of its newest powder treatment center in Malaysia.  "By upgrading the production technologies at our Malaysian plant and making production and logistics changes, we have been able to offset about half of the significant cost increases we've experienced during the first six months of 2008," said Dr. Olaf Karasch, CEO of TOR Minerals.   "We expect the benefits of these changes to be fully realized during the remainder of the year.  Combined with the price increases we've recently implemented, we expect to offset most of the increase in costs."

 

The company announced that it has received its first full production order for its new TIOPREM® colored pigment products.  A full production order is a substantive order received from a customer after a limited trial production period.  "There are now close to 100 customers testing TIOPREM, several of which have made successful trial production runs.  As more customers complete their testing, we expect TIOPREM to become a major contributor to revenue growth," commented Dr. Karasch.

The company said that as of June 30, 2008, it is in technical violation of certain coverage ratios in its long-term credit facility.   The company is currently negotiating with the lending bank to resolve this issue.  As a result, the company's long-term debt has been reclassified to short-term debt.  The company is diligently working to bring its ratios back into compliance.

TOR Minerals will host a conference call at 4:00 p.m. Central Time on August 7, 2008 to discuss second quarter results. The call will be simultaneously webcast, and can be accessed via the News section on the company's website at www.torminerals.com.  Interested parties may also access the conference call via telephone by dialing 877-407-9210.

 

Headquartered in Corpus Christi, Texas, TOR Minerals 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.

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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 Operations
(Unaudited)
(In thousands, except per share amounts)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2008

 

2007

 

2008

 

2007

NET SALES

 $

6,916 

 $

7,281 

 $

13,662 

 $

14,434 

Cost of sales

5,912 

5,906 

11,998 

11,657 

GROSS MARGIN

 

1,004 

 

1,375 

 

1,664 

 

2,777 

Technical services and research and development

61 

56 

127 

118 

Selling, general and administrative expenses

1,154 

1,078 

2,229 

2,221 

Gain on disposal of assets

(2)

OPERATING INCOME (LOSS)

 

(211)

 

241 

 

(690)

 

438 

OTHER INCOME (EXPENSE):

Interest income

Interest expense

(131)

(180)

(275)

(339)

Gain on foreign currency exchange rate

(2)

46 

(1)

51 

Other, net

10 

INCOME (LOSS) BEFORE INCOME TAX

 

(335)

 

109 

 

(955)

 

153 

Income tax expense (benefit)

27 

(28)

32 

NET INCOME (LOSS)

 $

(338)

 $

82 

 $

(927)

 $

121 

Less:  Preferred Stock Dividends

15 

15 

30 

30 

Income (Loss) Available to Common Shareholders

 $

(353)

 $

67 

 $

(957)

 $

91 

 

 

 

 

 

 

 

 

 

Income (loss) per common share:

Basic

 $

(0.04)

 $

0.01 

 $

(0.12)

 $

0.01 

Diluted

 $

(0.04)

 $

0.01 

 $

(0.12)

 $

0.01 

Weighted average common shares outstanding:

Basic

7,878 

7,839 

7,875 

7,839 

Diluted

7,878 

7,937 

7,875 

7,926 

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

 

June 30, 2008

 

December 31, 2007

 

 

(Unaudited)

 

 

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

209 

$

376 

Trade accounts receivable, net

5,325 

3,791 

Inventories, net

10,050 

11,392 

Other current assets

922 

578 

TOTAL CURRENT ASSETS

16,506 

16,137 

PROPERTY, PLANT AND EQUIPMENT, net

21,868 

20,421 

GOODWILL

2,299 

2,131 

OTHER ASSETS

43 

47 

TOTAL ASSETS

$

40,716 

$

38,736 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

2,465 

$

1,992 

Accrued expenses

1,927 

1,266 

Notes payable under lines of credit

1,430 

1,276 

Export credit refinancing facility

366 

Current deferred tax liability

16 

16 

Current maturities - Capital leases

93 

80 

Current maturities of long-term debt - Financial Institutions

5,016 

4,207 

Current maturities of long-term debt - Related Parties

TOTAL CURRENT LIABILITIES

11,313 

8,837 

LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES

Capital leases

204 

213 

Long-term debt - Financial Institutions

2,254 

2,678 

Deferred Tax Liability

589 

603 

TOTAL LIABILITIES

14,360 

12,331 

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:

Series A 6% convertible preferred stock $.01 par value:
authorized, 5,000 shares; 200 shares issued and
outstanding at 3/31/08 and 12/31/07

Common stock $.25 par value:  authorized, 20,000 shares;
7,878 and 7,869 shares issued and outstanding at 6/30/08
and at 12/31/07, respectively

1,969 

1,967 

Additional paid-in capital

22,974 

22,874 

Accumulated deficit

(3,546)

(2,589)

Accumulated other comprehensive income:

Unrealized gain on derivatives

(1)

Cumulative translation adjustment

4,957 

4,152 

Total shareholders' equity

26,356 

26,405 

 

$

40,716 

$

38,736 

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TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

Six Months Ended June 30,

2008

 

2007

CASH FLOWS FROM OPERATING ACTIVITIES:

 

Net income (loss)

$

(927)

$

121 

Adjustments to reconcile net income to net cash
provided by (used in) operating activities:

Depreciation

987 

807 

Non-cash compensation - Stock Options

90 

114 

Gain on sale/disposal of property, plant and equipment

(2)

Deferred income taxes

(31)

30 

Provision for bad debt

Changes in working capital:

Receivables

(1,415)

(1,112)

Inventories

1,523 

198 

Other current assets

(332)

(279)

Accounts payable and accrued expenses

1,041 

(591)

Net cash provided by (used in) operating activities

935 

(712)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

Additions to property, plant and equipment

(1,699)

(397)

Proceeds from sales of property, plant and equipment

Net cash used in investing activities

(1,696)

(397)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

Net proceeds / (payments) from  lines of credit

(72)

1,002 

Net proceeds from export credit refinancing facility

365 

Net proceeds / (payments) on capital lease

(17)

(33)

Proceeds from long-term bank debt

1,973 

500 

Payments on long-term bank debt

(1,628)

(233)

Payments on related party long-term debt

(400)

Proceeds from the issuance of common stock
through exercise of common stock options

12 

Preferred stock dividends paid

(30)

(30)

Net cash provided by financing activities

603 

807 

Effect of exchange rate fluctuations on cash and cash equivalents

(9)

(81)

Net decrease in cash and cash equivalents

(167)

(383)

Cash and cash equivalents at beginning of period

376 

896 

Cash and cash equivalents at end of period

$

209 

$

513 

Supplemental cash flow disclosures:

 

Interest paid

$

275 

$

339 

Taxes paid

$

$

18 

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