EX-99 2 exhibit99.htm EXHIBIT 99.1 - Q3 2009 EARNINGS RELEASE Exhibit 99.1 - Q3 2009 Earnings Release

 

 

EXHIBIT 99.1

 

 

 

TOR Minerals Announces Third Quarter 2009 Financial Results

CORPUS CHRISTI, Texas, November 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 third quarter ended September 30, 2009. The company reported a net loss available to common shareholders of ($32,000), or ($0.00) per diluted share, on net sales of $6,441,000 for the quarter ended September 30, 2009. This compares with a net loss available to common shareholders of ($385,000), or ($0.05) per diluted share, on net sales of $7,503,000 for the quarter ended September 30, 2008.

Net sales decreased 14 percent during the third quarter of 2009 primarily due to a 28 percent decrease in HITOX® sales.  Although weakness in paint and plastics markets continued to negatively affect year-over-year HITOX sales comparisons, HITOX sales levels stabilized in the third quarter and were flat in comparison with the second quarter of 2009.  During the third quarter of 2009, sales of specialty alumina products increased 5 percent versus the third quarter of 2008 as a weakness in European alumina sales was more than offset by new business and strengthening in the United States.

During the third quarter of 2009, the company reported an operating profit of $208,000, compared to an operating loss of ($144,000) during the third quarter of 2008. In addition to lower energy and raw materials costs, several factors contributed to the improvement in third quarter profitability, including a change in revenue mix, a 23 percent reduction of indirect production costs, and a 35 percent reduction in SG&A expenses.

Commenting on the results, Dr. Olaf Karasch, Chief Executive Officer said, "Due to cost cutting measures, new, low-cost processing technologies and the dedicated efforts of our employees, we have shown sequential improvements in operating income during each of the first three quarters of this fiscal year.  We are now better positioned to weather a continued market downturn and should benefit as market conditions improve."

The company said that it is targeting improvement in financial results during the fourth quarter of 2009. "In addition to bringing our cost structure in line with lower sales levels, we have introduced several new high value-added products to the market.  In particular, our newly introduced specialty alumina products are garnering significant customer interest.  These new products address sizable markets and have relatively short sales cycles.  Their introduction and market acceptance, if successful, can help to improve top line performance and plant utilization, which is key to returning TOR to meaningful profitability," continued Dr. Karasch. 

A webcast discussing third 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.

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
(817) 310-0051

Financial Tables Follow



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

 

 

 

Three Months
Ended September 30,

 

Nine Months
Ended September 30,

 

 

2009

 

2008

 

2009

 

2008

NET SALES

 $

6,441 

 $

7,503 

 $

17,798 

 $

21,165 

Cost of sales

5,492 

6,527 

15,170 

18,525 

GROSS MARGIN

 

949 

 

976 

 

2,628 

 

2,640 

Technical services and research and development

54 

62 

146 

189 

Selling, general and administrative expenses

687 

1,058 

2,423 

3,287 

Gain on disposal of assets

(2)

OPERATING INCOME (LOSS)

 

208 

 

(144)

 

59 

 

(834)

OTHER INCOME (EXPENSE):

Interest income

Interest expense

(159)

(134)

(407)

(409)

Gain (loss) on foreign currency exchange rate

(5)

(4)

37 

(5)

Other, net

11 

INCOME (LOSS) BEFORE INCOME TAX

 

44 

 

(281)

 

(305)

 

(1,236)

Income tax expense (benefit)

61 

89 

(11)

61 

NET LOSS

 $

(17)

 $

(370)

 $

(294)

 $

(1,297)

Less:  Preferred Stock Dividends

15 

15 

45 

45 

Loss Available to Common Shareholders

 $

(32)

 $

(385)

 $

(339)

 $

(1,342)

 

 

 

 

 

 

 

 

 

Loss per common share:

Basic

 $

(0.00)

 $

(0.05)

 $

(0.04)

 $

(0.17)

Diluted

 $

(0.00)

 $

(0.05)

 $

(0.04)

 $

(0.17)

Weighted average common shares outstanding:

Basic

9,453 

7,878 

9,453 

7,876 

Diluted

9,453 

7,878 

9,453 

7,876 


- 2 -



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

 

September 30,

 

December 31,

 

2009

 

2008

 

 

(Unaudited)

 

 

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

 $

893 

 $

191 

Trade accounts receivable, net

3,021 

2,310 

Inventories, net

9,815 

11,839 

Other current assets

794 

444 

TOTAL CURRENT ASSETS

14,523 

14,784 

PROPERTY, PLANT AND EQUIPMENT, net

19,237 

19,515 

OTHER ASSETS

58 

38 

Total Assets

 $

33,818 

 $

34,337 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

 $

1,268 

 $

2,268 

Accrued expenses

1,227 

1,611 

Notes payable under lines of credit

3,149 

2,156 

Export credit refinancing facility

1,023 

1,458 

Current deferred tax liability

60 

56 

Current maturities - capital leases

158 

86 

Current maturities of long-term debt - financial institutions

858 

1,590 

Total current liabilities

7,743 

9,225 

LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES

Capital leases

74 

141 

Long-term debt - financial institutions

1,499 

1,876 

Long-term debt - convertible debentures, net

1,105 

Deferred tax liability

559 

580 

Total liabilities

10,980 

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 9/30/09 and 12/31/08

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

2,363 

2,363 

Additional paid-in capital

25,025 

24,525 

Accumulated deficit

(7,950)

(7,611)

Accumulated other comprehensive income:

Cumulative translation adjustment

3,398 

3,236 

Total shareholders' equity

22,838 

22,515 

Total Liabilities and Shareholders' Equity

 $

33,818 

 $

34,337 


- 3 -



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

 

Nine Months Ended September 30,

2009

 

2008

CASH FLOWS FROM OPERATING ACTIVITIES:

 

Net loss

$

(294)

$

(1,297)

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

Depreciation

1,340 

1,483 

Stock-based compensation expense

78 

119 

Warrant interest expense

27 

Gain on sale/disposal of property, plant and equipment

(2)

Deferred income taxes

(17)

51 

Provision for bad debt

(61)

51 

Changes in working capital:

Receivables

(384)

(1,240)

Inventories

2,056 

1,223 

Other current assets

(324)

(189)

Accounts payable and accrued expenses

(1,436)

1,592 

Net cash provided by operating activities

985 

3,891 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

Additions to property, plant and equipment

(807)

(1,740)

Proceeds from sales of property, plant and equipment

Net cash used in investing activities

(807)

(1,737)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

Net proceeds / (payments) from  lines of credit

926 

(2,903)

Net proceeds from export credit refinancing facility

(432)

759 

Net payments on capital leases

(4)

(34)

Proceeds from long-term bank debt

2,049 

Payments on long-term bank debt

(1,208)

(1,809)

Proceeds from convertible debentures

1,500 

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

12 

Preferred stock dividends paid

(45)

(45)

Net cash provided by (used in) financing activities

737 

(1,971)

Effect of exchange rate fluctuations on cash and cash equivalents

(213)

(116)

Net change in cash and cash equivalents

702 

67 

Cash and cash equivalents at beginning of period

191 

376 

Cash and cash equivalents at end of period

$

893 

$

443 

Supplemental cash flow disclosures:

 

Interest paid

$

377 

$

409 

Taxes paid

$

$


- 4 -