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

  

 

Exhibit 99.1

 

TOR Minerals International, Inc. Announces Third Quarter Financial Results

 

CORPUS CHRISTI, Texas, November 11, 2010 - TOR Minerals International, Inc. (Nasdaq: TORM), producer of synthetic titanium dioxide, color pigments, specialty aluminas, and other high performance mineral fillers, today announced its financial results for the third quarter ended September 30, 2010.  The Company reported net income available to common shareholders of $221,000, or $0.09 per diluted share, on net sales of $7,543,000.  This compares with a net loss available to common shareholders of ($32,000), or ($0.02) per share, on net sales of $6,441,000 for the quarter ended September 30, 2009.

 

Net sales increased 17.1 percent during the third quarter of 2010 over the third quarter of 2009.  All product categories showed year-over-year growth, as demand in paint and plastics markets continued to improve.  During the third quarter of 2010, sales of titanium dioxide and color pigments, which includes HITOX® and TIOPREM® product groups, increased 7.9 percent to $3.1 million.  Sales of specialty alumina products, which includes ALUPREM® and HALTEX® product groups, increased 21.7 percent to $3.3 million during the third quarter of 2010 as demand for new and existing specialty alumina products also improved.  Third quarter sales from other product categories increased 34.2 percent to $1.1 million.

 

During the third quarter of 2010, operating income increased to $397,000, or 5.3 percent of sales, compared to operating income of $208,000, or 3.2 percent of sales reported during the third quarter of 2009.  The year-over-year improvement in profitability resulted from increased sales levels, increased plant utilization, and greater operational efficiencies.

 

Net sales for the nine months ended September 30, 2010, were $22,327,000, an increase of 25.4 percent compared to $17,798,000 reported during the nine-month period ended September 30, 2009. Net income available to common shareholders was $1,245,000, or $0.51 per diluted share, for the nine months ended September 30, 2010, compared to a net loss of ($339,000), or ($0.18) per share, for the same period a year ago.

 

Commenting on the results, Dr. Olaf Karasch, Chief Executive Officer said, "Market acceptance of our newly introduced products was the major contributor to the year-over-year revenue growth.  New products contributed to more than 10 percent of third quarter sales.  While the pace of third quarter's top-line growth was slower than we experienced earlier in the year, demand in our primary end markets of paint and plastics continue to show strength, and order rates have accelerated during the first month of the fourth quarter."

 

"We've come a long way in diversifying our product and geographic mix in the past several years. The recent addition of several new large customers also diversifies our customer and geographic concentration.  Greater diversification should improve our ability to deliver consistent growth in revenue and profitability," Dr. Karasch continued. 

 

The Company said it expects to show sequential and year-over-year improvement in financial results during fourth quarter of fiscal 2010.

A webcast discussing third 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, Inc. 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
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 September 30,

 

Nine Months
Ended September 30,

 

 

2010

 

2009

 

2010

 

2009

NET SALES

 $

7,543 

 $

6,441 

 $

22,327 

 $

17,798 

Cost of sales

6,234 

5,492 

17,765 

15,170 

GROSS MARGIN

 

1,309 

 

949 

 

4,562 

 

2,628 

Technical services and research and development

66 

54 

184 

146 

Selling, general and administrative expenses

846 

687 

2,666 

2,423 

OPERATING INCOME

 

397 

 

208 

 

1,712 

 

59 

OTHER INCOME (EXPENSE):

Interest income

Interest expense

(110)

(159)

(343)

(407)

Gain (loss) on foreign currency exchange rate

(53)

(5)

(47)

37 

Other, net

INCOME (LOSS) BEFORE INCOME TAX

 

234 

 

44 

 

1,322 

 

(305)

Income tax expense (benefit)

(2)

61 

32 

(11)

NET INCOME (LOSS)

 $

236 

 $

(17)

 $

1,290 

 $

(294)

Less:  Preferred Stock Dividends

15 

15 

45 

45 

Income (Loss) Available to Common Shareholders

 $

221 

 $

(32)

 $

1,245 

 $

(339)

 

 

 

 

 

 

 

 

 

Income (loss) per common share:

Basic

 $

0.12 

 $

(0.02)

 $

0.66 

 $

(0.18)

Diluted

 $

0.09 

 $

(0.02)

 $

0.51 

 $

(0.18)

Weighted average common shares outstanding:

Basic

1,908 

1,891 

1,899 

1,891 

Diluted

2,586 

1,891 

2,455 

1,891 

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


 

September 30,
2010

 

December 31,
2009

 

 

(Unaudited)

 

 

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

564 

$

1,002 

Trade accounts receivable, net

4,016 

3,380 

Inventories

10,403 

9,101 

Other current assets

888 

540 

Total current assets

15,871 

14,023 

PROPERTY, PLANT AND EQUIPMENT, net

18,901 

18,800 

OTHER ASSETS

45 

53 

Total Assets

$

34,817 

$

32,876 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

2,075 

$

1,452 

Accrued expenses

1,443 

1,036 

Notes payable under lines of credit

1,529 

3,313 

Export credit refinancing facility

477 

Current deferred tax liability

50 

60 

Current maturities - capital leases

68 

140 

Current maturities of long-term debt - financial institutions

211 

435 

Total current liabilities

5,853 

6,436 

LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES

Capital leases

20 

49 

Long-term debt - financial institutions

1,254 

1,477 

Long-term debt - convertible debentures, net

1,197 

1,122 

DEFERRED TAX LIABILITY

664 

577 

Total liabilities

8,988 

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 9/30/2010 and 12/31/2009

Common stock $1.25 par value:  authorized, 6,000 shares;
1,909 and 1,891 shares issued and outstanding
at 9/30/2010 and 12/31/2009, respectively

2,386 

2,363 

Additional paid-in capital

25,308 

25,214 

Accumulated deficit

(6,562)

(7,807)

Accumulated other comprehensive income:

Cumulative translation adjustment

4,695 

3,443 

Total shareholders' equity

25,829 

23,215 

Total Liabilities and Shareholders' Equity

$

34,817 

$

32,876 

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

Nine Months Ended September 30,

2010

 

2009

CASH FLOWS FROM OPERATING ACTIVITIES:

 

Net Income (Loss)

$

1,290 

$

(294)

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

Depreciation

1,421 

1,340 

Share-based compensation

91 

78 

Warrant interest expense

50 

27 

Deferred income taxes

32 

(17)

Provision for bad debts

(61)

Changes in working capital:

Trade accounts receivables

(640)

(384)

Inventories

(827)

2,056 

Other current assets

(339)

(324)

Accounts payable and accrued expenses

972 

(1,436)

Net cash provided by operating activities

2,050 

985 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

Additions to property, plant and equipment

(1,026)

(807)

Proceeds from sales of property, plant and equipment

17 

Net cash used in investing activities

(1,009)

(807)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

Net (payments on) proceeds from lines of credit

(1,725)

926 

Net proceeds from (payments on) export credit refinancing facility

477 

(432)

Payments on capital lease

(96)

(4)

Payments on long-term bank debt

(399)

(1,208)

Proceeds from convertible debentures

1,500 

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

51 

Preferred stock dividends paid

(45)

(45)

Net cash (used in) provided by financing activities

(1,737)

737 

Effect of exchange rate fluctuations on cash and cash equivalents

258 

(213)

Net (decrease) increase in cash and cash equivalents

(438)

702 

Cash and cash equivalents at beginning of year

1,002 

191 

Cash and cash equivalents at end of period

$

564 

$

893 

Supplemental cash flow disclosures:

 

Interest paid

$

343 

$

377 

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