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

EXHIBIT 99.1

TOR Minerals International Reports Fourth Quarter and Year-end 2011 Financial Results
Posts Record Revenue and Net Income

CORPUS CHRISTI, Texas, February 23, 2012 - 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 fourth quarter and year ended December 31, 2011. Highlights for the fourth quarter and year end 2011 as compared to the fourth quarter and year end 2010 included:

  • 4Q11 net sales  increased 10% to $9.5 million
  • 4Q11 diluted net of income available to common shareholders increased 13% to $1.1 million
  • 4Q11 diluted earnings per common share: $0.35 was unchanged quarter over quarter
  • Net sales for the year ended December 31, 2011 increased 32% to $41.0 million
  • Diluted net income available to common shareholders for the year ended December 31, 2011 increased 69% to $3.9 million 
  • Diluted EPS for the year ended December 31, 2011: $1.21 versus Diluted earnings per common shares for the year ended December 31, 2010: $0.83

Revenue by Product
Group      (in ,000's)

 

 4Q11

 

 4Q10

 

 % Change

 

 YE2011

 

 YE2010

 

 % Change

 TiO2 Pigments

 $

3,807 

 $

3,390 

12.3%

 $

18,998 

 $

12,595 

50.8%

 Specialty Aluminas

4,431 

4,427 

4.8%

17,461 

14,242 

22.6%

 Other

1,308 

1,072 

22.0%

4,562 

4,179 

9.2%

 Total

 

 $

9,546 

 

 $

8,889 

 

9.9%

 

 $

41,021 

 

 $

31,016 

 

32.3%

Net sales increased 10% during the fourth quarter of 2011 due to increases in the Company's primary product categories. Sales of titanium dioxide (TiO2) color pigments, which include HITOX® and TIOPREM® products, increased 12% to $3.8 million.  As expected, declines in Asian and South American markets were more than offset by price increases and continued volume growth in North America.  Sales of specialty alumina, which includes the ALUPREM®, HALTEX® and OPTILOAD® product groups, grew 5% during the fourth quarter of 2011.

Commenting on sales trends, Dr. Olaf Karasch, Chief Executive Officer, said, "While the pace of growth slowed during the fourth quarter due to the return to normal seasonal order trends, revenue reached record levels during 2011.  Overall, during 2011 we continued to experience strong growth in sales, as our new customers are realizing the value added characteristics of our niche specialty mineral products.  During 2011, we sold out of specialty alumina capacity and completed an expansion that doubled our production capabilities.  This new capacity came on line during the fourth quarter and, so long as market conditions continue to remain favorable, we expect specialty alumina sales to continue double-digit growth during 2012.  As we expected, pigment sales were negatively affected by increased competitive pricing pressure from Chinese-based commodity TiO2 producers.  However, order volumes have accelerated during the first six weeks of fiscal 2012, particularly in North America, which is our largest market for TiO2 pigments.  Pigment volumes are being positively affected as several new customers have reformulated with our pigments and are transitioning from sample to production order quantities. In addition, increased TiO2 color pigment pricing is contributing more to our revenue growth."


Margin Table

 

 4Q11

 

 4Q10

 

 Change

 

YE2011

 

YE2010

 

 Change

 Gross Margin

26.4%

25.3%

+ 110 basis points

22.7%

21.8%

+  90 basis points

 Operating Margin

11.8%

12.6%

-   80 basis points

10.7%

9.0%

+ 170 basis points

 Net Margin

11.7%

11.5%

+  20 basis points

9.4%

7.4%

+ 200 basis points

 * Each basis point represents .01%

During the fourth quarter of 2011, favorable trends in pricing, product mix and sales volumes more than offset increased raw material and energy costs. As a result, gross margin improved 110 basis points year over year to 26.4% of sales.  Operating income increased to $1.1 million, or 11.8% of sales, compared to operating income of $1.0 million, or 12.6% of sales, reported in during the same period a year ago. 

"We saw the favorable effects of increased pricing in our TiO2 pigment business during the fourth quarter and posted our overall highest quarterly gross margin in almost a decade. In addition, we continued to benefit from the earnings leverage in our business model and posted our third year of improvement in net margin," said Dr. Karasch.

"We have averaged 30% growth in our revenues for each of the last two years, much faster than the typical markets in which we compete and our targeted rates of 15% to 20%.  We enter 2012 with strong momentum in all of our product groups and we believe we are well positioned entering into 2012.  This includes customer demand to utilize a significant portion of our expanded alumina plant capacity and we expect favorable pricing and volume trends to continue in our TiO2 business," said Dr. Karasch. 

TOR Minerals will host a conference call at 4:00 p.m. Central Time on February 23, 2012, to further discuss fourth quarter and year end results. The call will be simultaneously Webcast, and can be accessed via the News section on the Company's website, www.torminerals.com. Interested parties may also access the conference call via telephone by dialing 877-407-8033 and referring to conference ID # 388152.

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 slowdown 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
Dave Mossberg,
Three Part Advisors, LLC
817 310-0051

 TOR Minerals International, Inc. and Subsidiaries

 Consolidated Income Statement

 (In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 (Unaudited)

 

 

 Three Months
Ended December 31,

 

 Twelve Months
Ended December 31,

 

 

 2011

 

 2010

 

 2011

 

 2010

 NET SALES

 $

9,546 

 $

8,689 

 $

41,021 

 $

31,016 

 Cost of sales

7,024 

6,493 

31,727 

24,258 

 GROSS MARGIN

 

2,522 

 

2,196 

 

9,294 

 

6,758 

 Technical services and research and development

81 

70 

287 

254 

 General, administrative and selling expenses

1,317 

1,035 

4,639 

3,701 

 Loss on disposal of assets

(1)

- 

(1)

- 

 OPERATING INCOME

 

1,125 

 

1,091 

 

4,369 

 

2,803 

 OTHER INCOME (EXPENSE):

 Interest expense

(135)

(96)

(471)

(439)

 Loss on foreign currency exchange rate

(29)

(13)

(23)

(60)

 Other, net

2 

- 

9 

- 

 INCOME BEFORE INCOME TAX

 

963 

 

982 

 

3,884 

 

2,304 

 Income tax (benefit) expense 

(150)

(16)

48 

16 

 NET INCOME

 $

1,113 

 $

998 

 $

3,836 

 $

2,288 

 Less:  Preferred Stock Dividends

1 

15 

16 

60 

 Basic Income  Available to Common Shareholders

 $

1,112 

 $

983 

 $

3,820 

 $

2,228 

 Plus: 6% Convertible Debenture Interest Expense

21 

23 

87 

90 

 Plus:  Preferred Stock Dividends

1 

- 

16 

- 

 Diluted Income Available to Common Shareholders

 $

1,134 

 $

1,006 

 $

3,923 

 $

2,318 

 

 

 

 

 

 

 

 

 

 Income per common share:

 Basic

 $

0.51 

 $

0.51 

 $

1.84 

 $

1.17 

 Diluted

 $

0.35 

 $

0.35 

 $

1.21 

 $

0.83 

 Weighted average common shares outstanding:

 Basic

2,160 

1,921 

2,079 

1,904 

 Diluted

3,239 

2,892 

3,235 

2,785 



 TOR Minerals International, Inc. and Subsidiaries

 Consolidated Balance Sheets

 (In thousands, except share and per share amounts)

 

 December 31,

 

 

 2011

 

 2010

 ASSETS

 CURRENT ASSETS:

 Cash and cash equivalents

 $

3,381 

$

2,559 

 Trade accounts receivable, net

4,921 

3,888 

 Inventories 

18,673 

11,021 

 Other current assets

832 

728 

 Total current assets

27,807 

18,196 

 PROPERTY, PLANT AND EQUIPMENT, net 

20,138 

18,952 

 OTHER ASSETS

22 

23 

 Total Assets

$

47,967 

$

37,171 

 

 

 

 

 

 LIABILITIES AND SHAREHOLDERS' EQUITY

 CURRENT LIABILITIES:

 Accounts payable

$

3,222 

$

2,544 

 Accrued expenses

1,754 

1,436 

 Notes payable under lines of credit

2,886 

783 

 Export credit refinancing facility

1,254 

264 

 Current deferred tax liability

46 

64 

 Current maturities - capital leases

28 

46 

 Current maturities of long-term debt - financial institutions

813 

533 

 Current maturities - convertible debentures

91 

- 

 Total current liabilities

10,094 

5,670 

 LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES 

 Capital leases

34 

18 

 Long-term debt - financial institutions

2,668 

2,847 

 Long-term debt - convertible debentures, net

1,127 

1,176 

 DEFERRED TAX LIABILITY

619 

582 

 Total liabilities

14,542 

10,293 

 COMMITMENTS AND CONTINGENCIES 

 SHAREHOLDERS' EQUITY: 

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

- 

2 

 Common stock $.25 par value:  authorized, 6,000 shares;
2,079 and 1,934 shares issued and outstanding at
12/31/2011 and 12/31/2010, respectively

2,999 

2,416 

 Additional paid-in capital

28,222 

25,363 

 Accumulated deficit

(1,759)

(5,579)

 Accumulated other comprehensive income:

 Cumulative translation adjustment

3,963 

4,676 

 Total shareholders' equity

33,425 

26,878 

 Total Liabilities and Shareholders' Equity

$

47,967 

$

37,171 


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

 Year Ended December 31,

 2011

 2010

 CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 Net Income

$

3,836 

$

2,288 

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

 Depreciation

2,078 

1,903 

 Gain on disposal of assets

(1)

- 

 Share-based compensation

59 

91 

 Warrant interest expense

67 

70 

 Deferred income tax (benefit) expense

(9)

9 

 Provision for bad debts

- 

23 

 Changes in working capital:

 Trade accounts receivables

(1,081)

(545)

 Inventories

(7,845)

(1,449)

 Other current assets

(116)

(179)

 Accounts payable and accrued expenses

1,094 

1,457 

 Net cash (used in) provided by operating activities

(1,918)

3,668 

 CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 Additions to property, plant and equipment

(3,535)

(1,645)

 Proceeds from sales of property, plant and equipment

2 

18 

 Net cash used in investing activities

(3,533)

(1,627)

 CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 Net proceeds from (payments on) lines of credit

2,087 

(2,449)

 Net proceeds from (payments on) export
credit refinancing facility

997 

264 

 Proceeds from capital lease

11 

19 

 Payments on capital lease

(11)

(137)

 Proceeds from long-term bank debt

972 

2,000 

 Payments on long-term bank debt

(790)

(470)

 Proceeds from convertible debentures

- 

- 

 Loan origination costs

- 

33 

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

3,356 

96 

 Preferred stock dividends paid

(31)

(60)

 Net cash provided by (used in) financing activities

6,591 

(704)

 Effect of exchange rate fluctuations on cash and cash equivalents

(318)

220 

 Net increase in cash and cash equivalents

822 

1,557 

 Cash and cash equivalents at beginning of year

2,559 

1,002 

 Cash and cash equivalents at end of year

$

3,381 

$

2,559 

 Supplemental cash flow disclosures:

 

 

 Interest paid

$

471 

$

439 

 Income taxes paid

$

7 

$

7 

 Non-cash financing activities

 

 

 Conversion of debenture

$

25 

$

25