CORPUS CHRISTI, Texas,
Nov. 3, 2016 /PRNewswire/ -- TOR
Minerals International (Nasdaq: TORM), producer of high performance
specialty minerals, today announced its financial results for the
third quarter ended September 30,
2016. Highlights for the third quarter of 2016 as compared
to the third quarter of 2015 include:
- 3Q16 net sales increased 12% to $10.0
million
- 3Q16 net income of $291,000
versus 3Q15 net loss of ($121,000)
- 3Q16 diluted net income per share of $0.08, versus 3Q15 net loss per share of
($0.04)
|
Revenue by Product
Group (in 000's)
|
|
3Q16
|
|
3Q15
|
|
%
Change
|
|
Specialty
aluminas
|
|
$
5,805
|
|
$
4,305
|
|
35%
|
|
Barium Sulfate and
Other Products
|
|
2,236
|
|
2,210
|
|
1%
|
|
TiO2Pigments
|
|
1,995
|
|
2,473
|
|
-19%
|
|
Total
|
|
$
10,036
|
|
$
8,988
|
|
12%
|
Net sales increased 12% during the third quarter of 2016, as a
35% increase in specialty alumina sales was partially offset by a
19% decrease in TiO2 pigment sales and a 1% increase in barium
sulfate and other product sales. The increase in specialty alumina
sales, which includes ALUPREM®, HALTEX® and OPTILOAD®, was due to
double digit volume growth in ALUPREM sales in both Europe as well as the United States.
Continued growth of OPTILOAD/HALTEX sales also contributed to the
year-over-year increase in specialty alumina sales. Barium
sulfate and other product sales increased 1% year over year.
The decrease in TiO2 pigment sales was due to lower volume and
lower average selling price related to the continued pricing
pressure from Chinese producers.
During the third quarter of 2016, gross margin increased to
15.8% of sales, versus 12.4% during the same period a year
ago. Gross margin improvement was related to improved
efficiencies and lower raw materials costs. In addition, the
improvement in gross margin was related to the elimination of idle
plant costs at the Company's SR plant in Malaysia. The
company ceased SR production in late 2015, as management determined
that it was more cost effective to continue purchasing feedstock
material for its TiO2-based products from alternate sources than to
resume production at its Malaysian facility.
Operating expenses during the third quarter of 2016 were
$1.1 million, a 10% increase in
comparison with the same period last year. Third quarter net
income was $291,000, or $0.08 per diluted share, as compared to a net
loss of ($121,000), or ($0.04) per share, during the same period a year
ago.
"Strong performance in our alumina business more than made up
for continued weakness in TiO2 market conditions, putting total
revenue back on a growth trajectory for the year. In
addition, incremental contribution from our alumina business, as
well as strategic initiatives to improve efficiencies of our TiO2
business, have resulted in significant improvements in
profitability," said Dr. Olaf
Karasch, Chief Executive Officer. "While our
strategies must continuously focus on lowering cost position, due
to the successful growth our specialty alumina and barium sulfate
businesses, along with what appears to be weak, but stabilizing
conditions in the TiO2 market, we are now increasing focus on top
line growth. We are expanding sales, marketing and
distribution efforts to drive sales growth in the coming quarters,
as well as investing in research and development to introduce new
specialty mineral products that can provide long-term growth for
our business."
TOR Minerals will host a conference call at 4:00 p.m. Central Time on November 03, 2016, to further discuss third
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 # 13647195. A live and archived webcast of the
conference call will be available via the News section of the
company's website, http://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 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.
Investor Relations Contact
Dave Mossberg
Three Part Advisors, LLC
817 310-0051
|
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,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
NET
SALES
|
$
|
10,036
|
$
|
8,988
|
$
|
29,458
|
$
|
29,066
|
|
Cost of
sales
|
|
8,452
|
|
7,877
|
|
25,379
|
|
26,108
|
|
GROSS
MARGIN
|
|
1,584
|
|
1,111
|
|
4,079
|
|
2,958
|
|
Technical services,
research and development
|
|
56
|
|
44
|
|
146
|
|
143
|
|
Selling, general and
administrative expenses
|
|
1,068
|
|
943
|
|
2,972
|
|
3,034
|
|
Loss on disposal of
assets
|
|
4
|
|
38
|
|
3
|
|
38
|
|
OPERATING INCOME
(LOSS)
|
|
456
|
|
86
|
|
958
|
|
(257)
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(43)
|
|
(37)
|
|
(140)
|
|
(177)
|
|
Gain (loss) on
foreign currency exchange rate
|
|
20
|
|
(157)
|
|
(59)
|
|
(134)
|
|
Other, net
|
|
-
|
|
9
|
|
28
|
|
18
|
|
Total Other
Expense
|
|
(23)
|
|
(185)
|
|
(171)
|
|
(293)
|
|
INCOME (LOSS)
BEFORE INCOME TAX
|
|
433
|
|
(99)
|
|
787
|
|
(550)
|
|
Income tax expense
(benefit)
|
|
142
|
|
22
|
|
165
|
|
(132)
|
|
NET INCOME
(LOSS)
|
$
|
291
|
$
|
(121)
|
$
|
622
|
$
|
(418)
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.08
|
$
|
(0.04)
|
$
|
0.19
|
$
|
(0.14)
|
|
Diluted
|
$
|
0.08
|
$
|
(0.04)
|
$
|
0.18
|
$
|
(0.14)
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,542
|
|
3,014
|
|
3,319
|
|
3,014
|
|
Diluted
|
|
3,550
|
|
3,014
|
|
3,398
|
|
3,014
|
|
TOR Minerals
International, Inc. and Subsidiaries
|
|
Condensed
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,082
|
$
|
813
|
|
Trade accounts
receivable, net
|
|
4,606
|
|
3,534
|
|
Inventories,
net
|
|
13,153
|
|
13,988
|
|
Other current
assets
|
|
906
|
|
878
|
|
Total current
assets
|
|
21,747
|
|
19,213
|
|
PROPERTY, PLANT AND
EQUIPMENT, net
|
|
16,837
|
|
17,472
|
|
DEFERRED TAX ASSET,
foreign
|
|
8
|
|
19
|
|
OTHER
ASSETS
|
|
4
|
|
4
|
|
Total
Assets
|
$
|
38,596
|
$
|
36,708
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accounts
payable
|
$
|
2,404
|
$
|
2,432
|
|
Accrued
expenses
|
|
1,461
|
|
1,007
|
|
Notes payable under
lines of credit
|
|
80
|
|
179
|
|
Export credit
refinancing facility
|
|
726
|
|
1,108
|
|
Current maturities of
long-term debt – financial institutions
|
|
1,288
|
|
1,485
|
|
Total current
liabilities
|
|
5,959
|
|
6,211
|
|
LONG-TERM DEBT -
FINANCIAL INSTITUTIONS
|
|
3,084
|
|
3,479
|
|
DEFERRED TAX
LIABILITY, domestic
|
|
192
|
|
262
|
|
Total
liabilities
|
|
9,235
|
|
9,952
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Common stock $1.25
par value: authorized, 6,000 shares; 3,542 shares issued and
outstanding at September 30, 2016 and 3,014 at December 31,
2015
|
|
4,428
|
|
3,767
|
|
Additional paid-in
capital
|
|
30,502
|
|
29,636
|
|
Accumulated
deficit
|
|
(4,643)
|
|
(5,265)
|
|
Accumulated other
comprehensive loss
|
|
(926)
|
|
(1,382)
|
|
Total shareholders'
equity
|
|
29,361
|
|
26,756
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
38,596
|
$
|
36,708
|
|
TOR Minerals
International, Inc. and Subsidiaries
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2016
|
|
2015
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net Income
(Loss)
|
$
|
622
|
$
|
(418)
|
|
Adjustments to
reconcile net income (loss) to net cash
provided by operating activities:
|
|
|
|
|
|
Depreciation
|
|
1,916
|
|
2,123
|
|
Loss on disposal of
assets
|
|
3
|
|
38
|
|
Stock-based
compensation
|
|
130
|
|
104
|
|
Deferred income tax
benefit
|
|
(61)
|
|
(178)
|
|
Provision for
(Recovery of) bad debts
|
|
(237)
|
|
23
|
|
Changes in working
capital:
|
|
|
|
|
|
Trade accounts
receivables
|
|
(751)
|
|
302
|
|
Inventories
|
|
1,105
|
|
3,568
|
|
Other current
assets
|
|
(5)
|
|
(414)
|
|
Accounts payable and
accrued expenses
|
|
341
|
|
(1,431)
|
|
Net cash provided by
operating activities
|
|
3,063
|
|
3,717
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
(894)
|
|
(4,174)
|
|
Restricted
Cash
|
|
-
|
|
(1,561)
|
|
Net cash used in
investing activities
|
|
(894)
|
|
(5,735)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from lines
of credit
|
|
85
|
|
2,663
|
|
Payments on lines of
credit
|
|
(191)
|
|
(2,567)
|
|
Proceeds from export
credit refinancing facility
|
|
1,853
|
|
3,420
|
|
Payments on export
credit refinancing facility
|
|
(2,280)
|
|
(4,619)
|
|
Proceeds from
long-term bank debt
|
|
-
|
|
3,740
|
|
Payments on long-term
bank debt
|
|
(765)
|
|
(735)
|
|
Proceeds from the
issuance of common stock through exercise of warrants
|
|
1,398
|
|
-
|
|
Net cash provided by
financing activities
|
|
100
|
|
1,902
|
|
Effect of foreign
currency exchange rate fluctuations on cash and cash
equivalents
|
|
-
|
|
(453)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
2,269
|
|
(569)
|
|
Cash and cash
equivalents at beginning of period
|
|
813
|
|
2,657
|
|
Cash and cash
equivalents at end of period
|
$
|
3,082
|
$
|
2,088
|
|
|
|
|
|
|
Supplemental cash
flow disclosures:
|
|
|
|
|
|
Interest
paid
|
$
|
113
|
$
|
112
|
|
Income taxes
paid
|
$
|
73
|
$
|
349
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tor-minerals-international-reports-third-quarter-financial-results-300357151.html
SOURCE TOR Minerals International, Inc.
