EX-99 2 exhibit99.htm EXHIBIT 99, PRESS RELEASE Exhibit 99 - TOR Minerals Announces First Quarter 2010 Financial Results

 

EXHITIB 99.1

 

TOR Minerals International, Inc. Announces First Quarter Financial Results

 

CORPUS CHRISTI, Texas, May 4, 2010 - TOR Minerals International, Inc. (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 first quarter ended March 31, 2010.  The Company reported net income available to common shareholders of $569,000, or $0.26 per diluted share, on net sales of $6,856,000.  This compares with a net loss available to common shareholders of ($284,000), or ($0.15) per share, on net sales of $5,703,000 for the quarter ended March 31, 2009.

 

Net sales increased 20.2 percent during the first quarter of 2010 over the first quarter of 2009.  During the first quarter of 2010, sales of HITOX® increased 49.4 percent to $2.9 million as end market demand in paint and plastic markets continued to improve.  Sales of specialty alumina products decreased 5.2 percent during the first quarter of 2010 as increasing demand for new and existing specialty alumina products in North America and Europe was offset by a shift in the order pattern of a significant U.S. customer.

 

During the first quarter of 2010, operating profit increased to $744,000, or 10.8 percent of sales, compared to an operating loss of ($249,000) reported during the first quarter of 2009.  First quarter 2010 operating profit also increased sequentially from the operating profit of $302,000, or 4.7 percent of sales, reported during the fourth quarter of 2009.  Year-over-year and sequential improvements in profitability resulted from increased sales levels, increased plant utilization, and greater operational efficiencies.

 

Commenting on the results, Dr. Olaf Karasch, Chief Executive Officer said, "First quarter's operating margin was the highest in over six years.  The noteworthy improvement in profitability is a result of the hard work we have done in the past two years to improve efficiencies and remove costs from our business.  The improvement also reflects the powerful leverage in our business, as a large portion of each incremental sales dollar makes a significant contribution to our bottom line."

 

The Company said that during the past five months it has secured significant orders for specialty alumina products and expects to have growth in alumina sales beginning in the second quarter. Dr. Karasch said, "Growth in our specialty alumina business should further diversify the Company's customer and product concentration in this category."  In addition, the Company said that its Ti02 pigment business is expected to benefit from a continuing recovery in the paint and plastics end markets, as well as what presently appears to be a favorable pricing environment.

 

If the trend continues, the Company said it expects to see continued improvement in financial results during 2010.

A webcast discussing first quarter 2010 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.

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The consolidated financial statements to be included in the Company's quarterly report on Form 10-Q for the three month period ended March 31, 2010 (the "Form 10-Q") have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business, as to which uncertainty exists. The Company's financial statements, including the financial statements in the Form 10-Q and the financial results reported on this press release, do not include any adjustment that might result from the outcome of this uncertainty.

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 Part Advisors, LLC
(817) 310-0051

Financial Tables Follow

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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 March 31,

 

 

2010

 

2009

NET SALES

 $

6,856 

 $

5,703 

Cost of sales

5,206 

4,889 

GROSS MARGIN

 

1,650 

 

814 

Technical services and research and development

57 

52 

Selling, general and administrative expenses

849 

1,011 

OPERATING INCOME (LOSS)

 

744 

 

(249)

OTHER INCOME (EXPENSE):

Interest income

Interest expense

(121)

(112)

Gain (loss) on foreign currency exchange rate

(28)

54 

Other, net

INCOME (LOSS) BEFORE INCOME TAX

 

595 

 

(303)

Income tax expense (benefit)

11 

(34)

NET INCOME (LOSS)

 $

584 

 $

(269)

Less:  Preferred Stock Dividends

15 

15 

Income (Loss) Available to Common Shareholders

 $

569 

 $

(284)

 

 

 

 

 

Income (loss) per common share:

Basic

 $

0.30 

 $

(0.15)

Diluted

 $

0.26 

 $

(0.15)

Weighted average common shares outstanding:

Basic

1,891 

1,891 

Diluted

2,193 

1,891 

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


 

March 31,
2010

 

December 31,
2009

 

 

(Unaudited)

 

 

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

 $

1,067 

 $

1,002 

Trade accounts receivable, net

3,840 

3,380 

Inventories

9,519 

9,101 

Other current assets

750 

540 

Total current assets

15,176 

14,023 

PROPERTY, PLANT AND EQUIPMENT, net

18,471 

18,800 

OTHER ASSETS

52 

53 

Total Assets

 $

33,699 

 $

32,876 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

 $

1,680 

 $

1,452 

Accrued expenses

1,661 

1,036 

Notes payable under lines of credit

2,512 

3,313 

Current deferred tax liability

50 

60 

Current maturities - capital leases

119 

140 

Current maturities of long-term debt - financial institutions

349 

435 

Total current liabilities

6,371 

6,436 

LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES

Capital leases

25 

49 

Long-term debt - financial institutions

1,334 

1,477 

Long-term debt - convertible debentures, net

1,139 

1,122 

DEFERRED TAX LIABILITY

629 

577 

Total liabilities

9,498 

9,661 

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:

Series A 6% convertible preferred stock $.01 par value:
authorized, 5,000 shares; 200 shares issued and
outstanding at 3/31/2010 and 12/31/2009

Common stock $.25 par value:  authorized, 6,000 shares;
1,891 shares issued and outstanding at 3/31/2010 and 12/31/2009

2,364 

2,363 

Additional paid-in capital

25,215 

25,214 

Accumulated deficit

(7,238)

(7,807)

Accumulated other comprehensive income:

Cumulative translation adjustment

3,858 

3,443 

Total shareholders' equity

24,201 

23,215 

Total Liabilities and Shareholders' Equity

 $

33,699 

 $

32,876 

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


Three Months Ended March 31,

2010

 

2009

CASH FLOWS FROM OPERATING ACTIVITIES:

 

Net Income (Loss)

$

584 

$

(269)

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

Depreciation

469 

428 

Share-based compensation

26 

Warrant interest expense

17 

Deferred income taxes

10 

(35)

Changes in working capital:

Trade accounts receivables

(489)

(487)

Inventories

(225)

912 

Other current assets

(200)

(462)

Accounts payable and accrued expenses

870 

Net cash provided by operating activities

1,036 

119 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

Additions to property, plant and equipment

(102)

(415)

Net cash used in investing activities

(102)

(415)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

Net (payments on) proceeds from lines of credit

(732)

856 

Net proceeds from export credit refinancing facility

260 

Payments on capital lease

(39)

(20)

Payments on long-term bank debt

(161)

(209)

Loan origination costs

Proceeds from the issuance of common stock,
and exercise of common stock options

Preferred stock dividends paid

(15)

(15)

Net cash (used in) provided by financing activities

(942)

872 

Effect of exchange rate fluctuations on cash and cash equivalents

73 

(416)

Net increase in cash and cash equivalents

65 

160 

Cash and cash equivalents at beginning of year

1,002 

191 

Cash and cash equivalents at end of year

$

1,067 

$

351 

Supplemental cash flow disclosures:

 

Interest paid

$

104 

$

112 

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