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

EXHIBIT 99.1

 

TOR Minerals International, Inc. Reports Second Quarter Financial Results

CORPUS CHRISTI, Texas, July 25, 2013 - TOR Minerals International, Inc., (Nasdaq: TORM), producer of high performance specialty minerals, today announced its financial results for the second quarter ended June 30, 2013. Results for the second quarter of 2013 as compared to the second quarter of 2012 included:

  • 2Q13 revenue decreased 24% to $10.7 million
  • 2Q13 diluted net income of $150,000 versus 2Q12 diluted net income of $1.6 million
  • 2Q13 diluted earnings per share of $0.04 versus 2Q12 diluted earnings per share of $0.45
  • Shareholders' equity as of June 30, 2013 was $11.88 per diluted share, versus $12.00 as of December 31, 2012

Revenue by Product Group (in 000's)

 

 2Q13

 

 2Q12

 

 % Change

TiO2 Pigments

 $

4,364 

 $

7,485 

-42%

Specialty Aluminas

4,040 

4,578 

-12%

Barium Sulfate and Other Products

2,328 

2,045 

14%

Total

 

 $

10,732 

 

 $

14,108 

 

-24%

* BARYPREM sales have been reclassified from Specialty Aluminas to Barium Sulfate and Other Specialty Minerals to make comparisons more meaningful. 

As expected, revenue from titanium dioxide (TiO2) pigments products, which include HITOX®, TIOPREM® and synthetic rutile (SR) products, continued to be affected by weakness in the broader market for TiO2. Specialty alumina, which includes the ALUPREM®, HALTEX® and OPTILOAD®, declined 12 percent during the quarter, which was primarily related to variations in the order patterns of two large customers.   Barium sulfate and other product sales increased 14 percent, primarily due to increased volumes from new and existing BARTEX® customers in the United States.

During the second quarter of 2013, gross margin decreased to 16.0 percent of revenue, versus 26.0 percent during the same period a year ago, and was 2.9 percentage points greater than the first quarter of 2013.  The decrease in year-over-year gross margin comparisons was primarily due to lower average selling prices and increased raw material costs.  Operating expenses decreased 2.9 percent to $1.4 million.  During the second quarter, net income to common shareholders was $150,000, or $0.04 per diluted share, as compared to net income of $1.6 million, or $0.45 per diluted share, during the same period a year ago.

Commenting on results, Dr. Olaf Karasch, CEO of TOR Minerals, said, "Our strategic focus remains on product innovation and continued reduction in production costs.  As our new value-added products continue to gain market acceptance, we are focusing on achieving significant growth from our specialty alumina products over the next year. While we expect near-term profitability to continue to be negatively affected by lower prevailing TiO2 prices and the increased costs for related raw materials and energy, we also expect that fixed cost absorption in our Malaysian SR plant should improve through the balance of the year.  In addition, we expect the incremental investments in our Malaysian SR plant to improve yields and reduce production costs."



"Based on more favorable customer inventory levels and commentary from large TiO2 commodity producers, we are cautiously optimistic for a market recovery during second half of the year.  In addition, we continue to innovate and have had success with our new premium TiO2 color pigment product, TIOPREM, which saw a 52 percent growth during the first half of 2013 and represented 13 percent of our TiO2 product sales. Longer term, we believe the demand and supply characteristics in the TiO2 industry will continue to create attractive opportunities for TOR Minerals, as customers increasingly discover the value-added attributes of substituting our HITOX® and TIOPREM® products for commodity TiO2," said Dr. Karasch. 

TOR Minerals will host a conference call at 4:00 p.m. CDT on July 25, 2013, to further discuss its second quarter results. The call will be simultaneously webcast, and can be accessed via the "News" section on the Company's website, www.torminerals.com.  Investors and interested parties may participate in the call by dialing 877-407-8033 and referring to conference ID # 417461. 

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.

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
Jeff Elliott
Three Part Advisors, LLC
972-423-7070



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,

 

 

2013

 

2012

 

2013

 

2012

NET SALES

 $

10,732 

 $

14,108 

 $

22,159 

 $

26,916 

Cost of sales

9,020 

10,441 

18,953 

20,059 

GROSS MARGIN

 

1,712 

 

3,667 

 

3,206 

 

6,857 

Technical services and research and development

171 

101 

324 

183 

Selling, general and administrative expenses

1,247 

1,359 

2,525 

2,583 

Loss on disposal of assets

10 

OPERATING INCOME

 

294 

 

2,207 

 

347 

 

4,091 

OTHER EXPENSE:

Interest expense, net

(99)

(112)

(183)

(254)

Gain (loss) on foreign currency exchange rate

20 

(20)

(67)

Other, net

12 

INCOME BEFORE INCOME TAX

 

215 

 

2,076 

 

109 

 

3,841 

Income tax  expense

65 

517 

34 

886 

NET INCOME

 $

150 

 $

1,559 

 $

75 

 

2,955 

Plus:  6% Convertible Debenture Interest Expense

14 

36 

Income Available to Common Shareholders

 $

150 

 $

1,573 

 $

75 

 

2,991 

 

 

 

 

 

 

 

 

 

Income per common share:

Basic

 $

0.05 

 $

0.56 

 $

0.03 

 $

1.14 

Diluted

 $

0.04 

 $

0.45 

 $

0.02 

 $

0.87 

Weighted average common shares outstanding:

Basic

2,998 

2,769 

2,992 

2,585 

Diluted

3,404 

3,462 

3,196 

3,451 



TOR Minerals International, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

 

June 30,
2013

 

December 31,
2012

 

 

(Unaudited)

 

 

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

891 

$

2,799 

Trade accounts receivable, net

5,398 

3,972 

Inventories, net

25,961 

22,895 

Other current assets

1,435 

1,822 

Total current assets

33,685 

31,488 

PROPERTY, PLANT AND EQUIPMENT, net

23,594 

22,933 

OTHER ASSETS

24 

25 

Total Assets

$

57,303 

$

54,446 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

5,621 

$

4,608 

Accrued expenses

1,616 

1,864 

Notes payable under lines of credit

3,396 

2,109 

Export credit refinancing facility

1,873 

394 

Current deferred tax liability

110   

173 

Current maturities - capital leases

18 

33 

Current maturities of long-term debt - financial institutions

1,180 

1,202 

Total current liabilities

13,814 

10,383 

LONG-TERM DEBT

Capital leases

12 

Long-term debt - financial institutions

2,063 

2,316 

DEFERRED TAX LIABILITY

977 

1,007 

Total liabilities

16,857 

13,718 

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:

3,012 shares issued and outstanding at 6/30/2013 and
2,987 shares issued and outstanding at 12/31/2012

3,765 

3,733 

Additional paid-in capital

29,314 

29,017 

Retained earnings

3,344 

3,269 

Accumulated other comprehensive income:

Cumulative translation adjustment

4,023 

4,709 

Total shareholders' equity

40,446 

40,728 

Total Liabilities and Shareholders' Equity

$

57,303 

$

54,446 





TOR Minerals International, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

Six Months Ended June 30,

2013

 

2012

CASH FLOWS FROM OPERATING ACTIVITIES:

 

Net Income

 $

75 

 $

2,955 

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

Depreciation

1,533 

1,179 

Loss on disposal of assets

10 

Share-based compensation

62 

58 

Convertible debenture interest expense

22 

Deferred income taxes

(71)

215 

Changes in working capital:

Trade accounts receivables

(1,419)

(2,591)

Inventories

(3,493)

(5,372)

Other current assets

356 

(625)

Accounts payable and accrued expenses

881 

1,542 

Net cash used in operating activities

(2,066)

(2,617)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

Additions to property, plant and equipment

(2,580)

(2,031)

Proceeds from sales of property, plant and equipment

Net cash used in investing activities

(2,578)

(2,031)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

Net proceeds from (payments on) lines of credit

1,337 

823 

Net proceeds from export credit refinancing facility

1,492 

2,303 

Net (payments on) proceeds from capital leases

(24)

31 

Proceeds from long-term bank debt

276 

536 

Payments on long-term bank debt

(503)

(399)

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

267 

115 

Net cash provided by provided by financing activities

2,845 

3,409 

Effect of foreign currency exchange rate fluctuations
on cash and cash equivalents

(109)

(78)

Net decrease in cash and cash equivalents

(1,908)

(1,317)

Cash and cash equivalents at beginning of year

2,799 

3,381 

Cash and cash equivalents at end of period

 $

891 

 $

2,064 

Supplemental cash flow disclosures:

 

Interest paid

 $

157 

 $

254 

Income taxes paid

 $

240 

 $