TORM Tor Minerals International (delisted)

CORPUS CHRISTI, Texas, Aug. 4, 2016 /PRNewswire/ -- TOR Minerals International, Inc. (Nasdaq: TORM), producer of high performance specialty minerals, today announced its financial results for the second quarter ended June 30, 2016. Highlights for the second quarter of 2016 as compared to the second quarter of 2015 include:

• 2Q16 revenue decreased 1% to $9.9 million
• 2Q16 net income of $87,000, versus 2Q15 net loss of ($107,000)
• 2Q16 diluted net income per share of $0.03, versus 2Q15 net loss per share of ($0.04)

Net sales decreased one percent during the second quarter of 2016, as an 18 percent increase in specialty alumina sales was offset by a 21 percent decrease in TiO₂ pigment sales and an eight percent decrease 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, which was partially offset by lower average selling price and to a lesser extent by foreign currency exchange rates.  Continued growth of OPTILOAD/HALTEX sales also contributed to the year-over-year increase in specialty alumina sales.  Barium sulfate and other product sales decreased eight percent year-over-year with decreased volume in both Europe and the United States.  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 second quarter of 2016, gross margin increased to 11.9 percent of sales, versus 9.6 percent during the same period a year ago.  Gross margin improvement was related to improved efficiencies and lower raw materials costs, which were partially offset by lower selling prices.  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 second quarter of 2016 were $1.1 million, flat in comparison with the same period last year.  Second quarter net income was $87,000, or $0.03 per diluted share, as compared to a net loss of ($107,000), or ($0.04) per share, during the same period a year ago.

"Strategic initiatives to divest our SR raw material productions assets and continued investments in our specialty alumina and barium sulfate businesses resulted in a return to profitability during the first half, as well as substantial improvements in our balance sheet.  We improved our inventory turns from 2.2x to 3.0x, reducing our investment in inventory by more than 30% year-over-year.  Our cash balance grew by $2.5 million and we reduced debt levels by $1.3 million during the first half of the year," said Dr. Olaf Karasch, Chief Executive Officer.  "We have lowered the cost structure and the required investment in our TiO₂ business to a point where it is now contributing to profit and returns at current production levels.  We also expect that several new large-volume specialty alumina applications will be moving into production during the next year, and put the alumina business back on a double-digit growth trajectory for 2016 and for several years to follow.  This Spring we finished the expansion of our alumina production facility in the Netherlands, which expanded capacity by approximately 50% and should allow us to meet the expected increase in demand."

TOR Minerals will host a conference call at 4:00 p.m. Central Time on August 4, 2016, to further discuss 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 # 13641716. 

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.

Investor Relations Contact

Dave Mossberg
Three Part Advisors, LLC
817 310-0051

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SOURCE TOR Minerals International, Inc.