EX-99 2 exhibit99.htm EXHIBIT 99 - PRESS RELEASE Exhibit 99.1 - TOR Minerals Announces Second Quarter 2009 Financial Results

 

 

EXHIBIT 99.1

 

TOR Minerals Announces Second Quarter 2009 Financial Results

CORPUS CHRISTI, Texas, August 5, 2009 - TOR Minerals International (Nasdaq:TORM), producer of synthetic titanium dioxide and color pigments, specialty aluminas, and other high performance mineral fillers, today announced its financial results for the second quarter ended June 30, 2009. The company reported a net loss available to common shareholders of ($23,000), or ($0.00) per diluted share, on net sales of $5,654,000 for the quarter ended June 30, 2009. This compares with 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.

Net sales decreased 18 percent during the second quarter of 2009 primarily due to a 19 percent decrease in both HITOX and specialty alumina sales.  Although weakness in paint and plastics markets continued to affect HITOX sales during the second quarter, order rates improved during the second quarter resulting in a 46 percent sequential revenue increase from the first quarter of 2009.  During the second quarter of 2009, sales of specialty alumina products declined 19 percent versus the second quarter of 2008 and decreased 31 percent from the first quarter of 2009 primarily due to a decrease in European sales. 

During the second quarter of 2009, the company reported an operating profit of $100,000, compared to an operating loss of ($211,000) during the second quarter of 2008. In addition to lower energy and raw materials costs, several factors, including revenue mix, a 19 percent reduction of indirect production costs, and a 37 percent reduction in SG&A expenses, contributed to the improvement in second quarter profitability. 

Commenting on the results, Dr. Olaf Karasch, Chief Executive Officer said, "Earlier in the year, we took the necessary steps to prepare for an extended period of weak demand in our end markets.  As a result of these steps, new, low-cost processing technologies and the dedicated efforts of our employees, the company was able to return to operating profitability during the second quarter." 

The company said that it expects to see continued improvement in financial results during the third quarter of 2009.  "While continued improvements in profitability beyond third quarter will be dependent on top line performance, we are encouraged by the sequential improvement in HITOX order rates in the U.S. and Asia and have received significant interest in our new alumina products in the U.S.  We are continuing to maintain a lean organization and continuing to focus on product areas that have short sale cycles and can improve top line performance and plant utilization," continued Dr. Karasch.

A webcast discussing second quarter 2009 results can be accessed for a period of 30 days via the News section of the TOR Minerals' website at www.torminerals.com.

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.


1



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
Three Point Advisors, LLC
(817) 310-0051

Financial Tables Follow


2



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,

 

 

2009

 

2008

 

2009

 

2008

NET SALES

 $

5,654 

 $

6,916 

 $

11,357 

 $

13,662 

Cost of sales

4,789 

5,912 

9,678 

11,998 

GROSS MARGIN

 

865 

 

1,004 

 

1,679 

 

1,664 

Technical services and research and development

40 

61 

92 

127 

Selling, general and administrative expenses

725 

1,154 

1,736 

2,229 

Gain on disposal of assets

(2)

OPERATING INCOME (LOSS)

 

100 

 

(211)

 

(149)

 

(690)

OTHER INCOME (EXPENSE):

Interest income

Interest expense

(136)

(131)

(248)

(275)

Gain (loss) on foreign currency exchange rate

(12)

(2)

42 

(1)

Other, net

10 

LOSS BEFORE INCOME TAX

 

(46)

 

(335)

 

(349)

 

(955)

Income tax expense (benefit)

(38)

(72)

(28)

NET LOSS

 $

(8)

 $

(338)

 $

(277)

 $

(927)

Less:  Preferred Stock Dividends

15 

15 

30 

30 

Loss Available to Common Shareholders

 $

(23)

 $

(353)

 $

(307)

 $

(957)

 

 

 

 

 

 

 

 

 

Loss per common share:

Basic

 $

(0.00)

 $

(0.04)

 $

(0.03)

 $

(0.12)

Diluted

 $

(0.00)

 $

(0.04)

 $

(0.03)

 $

(0.12)

Weighted average common shares outstanding:

Basic

9,453 

7,878 

9,453 

7,875 

Diluted

9,453 

7,878 

9,453 

7,875 


3



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

 

June 30,

 

December 31,

 

 

2009

 

2008

 

 

 

(Unaudited)

 

 

 

ASSETS

 

CURRENT ASSETS:

 

Cash and cash equivalents

 $

204 

 $

191 

 

Restricted cash

475 

 

Trade accounts receivable, net

3,296 

2,310 

 

Inventories, net

10,572 

11,839 

 

Other current assets

969 

444 

 

TOTAL CURRENT ASSETS

15,516 

14,784 

 

PROPERTY, PLANT AND EQUIPMENT, net

19,114 

19,515 

 

OTHER ASSETS

39 

38 

 

Total Assets

 $

34,669 

 $

34,337 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

CURRENT LIABILITIES:

 

Accounts payable

 $

1,443 

 $

2,268 

 

Accrued expenses

1,269 

1,611 

 

Notes payable under lines of credit

3,262 

2,156 

 

Export credit refinancing facility

1,451 

1,458 

 

Current deferred tax liability

60 

56 

 

Current maturities - capital leases

90 

86 

 

Current maturities of long-term debt - financial institutions

1,366 

1,590 

 

Total current liabilities

8,941 

9,225 

 

LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES

 

Capital leases

95 

141 

 

Long-term debt - financial institutions

1,599 

1,876 

 

Long-term debt - convertible debentures, net

1,062 

 

Deferred tax liability

492 

580 

 

Total liabilities

12,189 

11,822 

 

COMMITMENTS AND CONTINGENCIES

 

SHAREHOLDERS' EQUITY:

 

Series A 6% convertible preferred stock $.01 par value:
authorized, 5,000 shares; 200 shares issued and
outstanding at 6/30/09 and 12/31/08

 

Common stock $.25 par value:  authorized, 20,000 shares;
9,453 shares issued and outstanding at 6/30/09 and
at 12/31/08, respectively

2,363 

2,363 

 

Additional paid-in capital

24,998 

24,525 

 

Accumulated deficit

(7,918)

(7,611)

 

Accumulated other comprehensive income:

 

Cumulative translation adjustment

3,035 

3,236 

 

Total shareholders' equity

22,480 

22,515 

 

Total Liabilities and Shareholders' Equity

 $

34,669 

 $

34,337 

 


4



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

Six Months Ended June 30,

2009

 

2008

CASH FLOWS FROM OPERATING ACTIVITIES:

 

Net loss

$

(277)

$

(927)

Adjustments to reconcile net loss to net cash
provided by operating activities:

Depreciation

862 

987 

Stock-based compensation expense

50 

90 

Warrant interest expense

Gain on sale/disposal of property, plant and equipment

(2)

Deferred income taxes

(75)

(31)

Provision for bad debt

(3)

Changes in working capital:

Receivables

(761)

(1,415)

Inventories

1,191 

1,523 

Other current assets

(527)

(332)

Accounts payable and accrued expenses

(1,139)

1,041 

Net cash provided by (used in) operating activities

(670)

935 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

Additions to property, plant and equipment

(578)

(1,699)

Proceeds from sales of property, plant and equipment

Net cash used in investing activities

(578)

(1,696)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

Net proceeds / (payments) from  lines of credit

1,098 

(72)

Net proceeds from export credit refinancing facility

15 

365 

Net payments on capital leases

(43)

(17)

Proceeds from long-term bank debt

1,973 

Payments on long-term bank debt

(496)

(1,628)

Proceeds from convertible debentures

1,475 

Increase in restricted cash

(475)

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

1,544 

603 

Effect of exchange rate fluctuations on cash and cash equivalents

(283)

(9)

Net change in cash and cash equivalents

13 

(167)

Cash and cash equivalents at beginning of period

191 

376 

Cash and cash equivalents at end of period

$

204 

$

209 

Supplemental cash flow disclosures:

 

Interest paid

$

236 

$

275 

Taxes paid

$

$


5