CORPUS CHRISTI, Texas,
Feb. 23, 2017 /PRNewswire/
-- TOR Minerals International (Nasdaq: TORM), producer of high
performance specialty minerals, today announced its financial
results for the fourth quarter and year-ended December 31, 2016.
Full-year 2016 summary
- 2016 net sales increased 3.8% to $38.5
million
- 2016 net income of $444,000,
versus 2015 net loss of $6.4
million
- 2016 earnings per diluted share of $0.13 per share, versus 2015 net loss per share
of ($2.11)
- 2016 cash flow from operations of $4.8
million, versus 2015 cash flow from operations of
$3.5 million
|
Annual Sales
Comparison by
Product Group (in
000's)
|
|
2016
|
|
2015
|
|
%
Change
2016 vs.
2015
|
|
Specialty
Aluminas
|
|
$
|
21,166
|
|
$
|
16,781
|
|
26%
|
|
Barium Sulfate and
Other Products
|
|
8,542
|
|
9,154
|
|
-7%
|
|
TiO2
Pigments
|
|
8,748
|
|
11,124
|
|
-21%
|
|
Total
|
|
$
|
38,456
|
|
$
|
37,059
|
|
3.8%
|
During 2016, net sales increased 3.8 percent, as a 26 percent
increase in specialty alumina sales was partially offset by
decreased sales from TiO2 pigments and Barium Sulfate and Other
products. The increase in specialty alumina sales was due to
strong growth to both existing and new customers in the U.S. and
Europe, as well as increased
volumes from a significant U.S. customer. The 21 percent decrease
in TiO2 pigment sales was primarily due to lower unit volumes and
lower average selling prices. The seven percent decrease in
Barium Sulfate and Other products was primarily related to decrease
in sales of Other products.
Year-over-year profitability comparisons during 2016 were made
difficult due to significant non-cash charges during the fourth
quarter of 2015 primarily related to the strategic decision to
close the SR plant at our Asian operation. During 2016, gross
margin increased 8.1 percentage points to 13.2 percent of
sales. The improvement in gross margin was related to our
improved cost structure resulting from the 2015 shut down of the SR
plant, as well as improved efficiencies at TPT primarily related to
the 2015 plant expansion. During 2016, SG&A expenses were
$4.4 million, versus $4.7 million during 2015. The decrease in
SG&A expenses was due to the collection of a customer account
that was previously deemed uncollectable, which was partially
offset by increases in sales commissions and salaries and benefits.
During 2016, net income was $444,000
million, or $0.13 per diluted
share, as compared to a net loss of ($6.4
million), or a loss of ($2.11)
per diluted share, during 2015.
"During 2016, strong performance in our specialty alumina
business more than made up for weakness in TiO2 market conditions,
putting total revenue back on a growth trajectory. In
addition, incremental contribution from our alumina business, as
well as strategic initiatives to improve the production
efficiencies of our TiO2 business, resulted in significant
improvements in profitability," commented Dr. Olaf Karasch, Chief Executive Officer.
"Strategic initiatives also resulted in significant cash flows and
balance sheet improvements. We ended the year with
$3.7 million in cash, while reducing
our debt by $1.9 million to $3.9
million."
Fourth quarter summary
- 4Q16 net sales increased 13% to $9.0
million
- 4Q16 net loss of ($178,000),
versus 4Q15 net loss of ($5.9
million)
- 4Q16 loss per share of ($0.05),
versus 4Q15 net loss per share of ($1.97)
|
Quarterly Sales
Comparison by
Product Group (in
000's)
|
|
4Q16
|
|
4Q15
|
|
%
Change
|
|
Specialty
Aluminas
|
|
$
|
5,454
|
|
$
|
3,830
|
|
42.4%
|
|
Barium Sulfate and
Other Products
|
|
1,751
|
|
1,978
|
|
-11%
|
|
TiO2
Pigments
|
|
1,793
|
|
2,185
|
|
-18%
|
|
Total
|
|
$
|
8,998
|
|
$
|
7,993
|
|
13%
|
During the fourth quarter, net sales increased by 13 percent to
$9.0 million, as a 42 percent
increase in specialty alumina sales was partially offset by an 11
percent decrease in Barium Sulfate sales and an 18 percent decrease
in TiO2 pigment sales.
During the fourth quarter, gross margin was $1.0 million, as compared to ($1.1 million) last year, which included an
inventory adjustment that negatively affected margin by
$1.7 million. During the fourth
quarter, operating expenses decreased 17 percent to $1.2 million. During the fourth quarter,
net loss was ($178,000), or
($0.05) per diluted share, as
compared to net loss of ($5.9
million), or ($1.97) per
diluted share, during the same period a year ago.
"We have implemented several strategic initiatives to diversify
our revenue base, lower our cost structure and improve
returns. As a result, we have demonstrated significant
improvement in financial performance during 2016, restoring both
top line growth and profitability to the business," said Dr.
Karasch. "While we continuously work to improve our cost
position, due to the success of our key strategic initiatives, we
can now spend more time focusing on top-line growth. Combined
with improving market conditions, we believe that we are well
positioned to deliver double digit top line growth in each of our
product groups for the next several years, as well as further
improve profitability and returns for our shareholders."
TOR Minerals will host a conference call at 5:00 p.m. Eastern, 4:00
p.m. Central Time, on February 23,
2017, to further discuss fourth quarter and full year
results. The call will be simultaneously webcast, and can be
accessed via the Investors section on the Company's website,
www.torminerals.com. Investors and interested parties may
participate in the call by dialing 877-407-8033.
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
Statements of Operations
|
|
(In thousands,
except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended December
31,
|
|
Twelve
Months
Ended December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
NET
SALES
|
$
|
8,998
|
$
|
7,993
|
$
|
38,456
|
$
|
37,059
|
|
Cost of
sales
|
|
7,982
|
|
9,075
|
|
33,361
|
|
35,183
|
|
GROSS
MARGIN
|
|
1,016
|
|
(1,082)
|
|
5,095
|
|
1,876
|
|
Technical services and
research and development
|
|
53
|
|
35
|
|
199
|
|
178
|
|
General,
administrative and selling expenses
|
|
1,182
|
|
1,447
|
|
4,154
|
|
4,481
|
|
(Gain) Loss on
disposal of assets
|
|
(1)
|
|
-
|
|
2
|
|
-
|
|
Loss on impairment of
assets
|
|
-
|
|
2,912
|
|
-
|
|
2,950
|
|
OPERATING (LOSS)
INCOME
|
|
(218)
|
|
(5,476)
|
|
740
|
|
(5,733)
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(37)
|
|
(31)
|
|
(177)
|
|
(208)
|
|
Gain (loss) on foreign
currency exchange rate
|
|
9
|
|
(3)
|
|
(50)
|
|
(137)
|
|
Other income,
net
|
|
10
|
|
6
|
|
38
|
|
24
|
|
Total Other
Expense
|
|
(18)
|
|
(28)
|
|
(189)
|
|
(321)
|
|
(LOSS) INCOME
BEFORE INCOME TAX
|
|
(236)
|
|
(5,504)
|
|
551
|
|
(6,054)
|
|
Income tax (benefit)
expense
|
|
(58)
|
|
442
|
|
107
|
|
310
|
|
NET (LOSS)
INCOME
|
$
|
(178)
|
$
|
(5,946)
|
$
|
444
|
$
|
(6,364)
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income
per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.05)
|
$
|
(1.97)
|
$
|
0.13
|
$
|
(2.11)
|
|
Diluted
|
$
|
(0.05)
|
$
|
(1.97)
|
$
|
0.13
|
$
|
(2.11)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,542
|
|
3,014
|
|
3,376
|
|
3,014
|
|
Diluted
|
|
3,542
|
|
3,014
|
|
3,454
|
|
3,014
|
|
TOR Minerals
International, Inc. and Subsidiaries
|
|
Consolidated
Balance Sheets
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,716
|
$
|
813
|
|
Trade accounts
receivable, net
|
|
3,557
|
|
3,534
|
|
Inventories,
net
|
|
11,776
|
|
13,988
|
|
Other current
assets
|
|
742
|
|
878
|
|
Total current
assets
|
|
19,791
|
|
19,213
|
|
PROPERTY, PLANT AND
EQUIPMENT, net
|
|
15,907
|
|
17,472
|
|
DEFERRED TAX ASSET,
foreign
|
|
27
|
|
19
|
|
OTHER
ASSETS
|
|
4
|
|
4
|
|
Total
Assets
|
$
|
35,729
|
$
|
36,708
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accounts
payable
|
$
|
2,122
|
$
|
2,432
|
|
Accrued
expenses
|
|
1,136
|
|
1,007
|
|
Notes payable under
lines of credit
|
|
-
|
|
179
|
|
Export credit
refinancing facility
|
|
206
|
|
1,108
|
|
Current maturities of
long-term debt – financial institutions
|
|
1,142
|
|
1,485
|
|
Total current
liabilities
|
|
4,606
|
|
6,211
|
|
LONG-TERM DEBT -
FINANCIAL INSTITUTIONS
|
|
2,725
|
|
3,479
|
|
DEFERRED TAX
LIABILITY, domestic
|
|
127
|
|
262
|
|
Total
liabilities
|
|
7,458
|
|
9,952
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Common stock $1.25 par
value: authorized, 6,000 shares; 3,542 shares issued and outstanding at December 31, 2016
and 3,014 at December 31,
2015
|
|
4,426
|
|
3,767
|
|
Additional paid-in
capital
|
|
30,544
|
|
29,636
|
|
Accumulated
deficit
|
|
(4,821)
|
|
(5,265)
|
|
Accumulated other
comprehensive loss
|
|
(1,878)
|
|
(1,382)
|
|
Total shareholders'
equity
|
|
28,271
|
|
26,756
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
35,729
|
$
|
36,708
|
|
TOR Minerals
International, Inc. and Subsidiaries
|
|
Consolidated
Statements of Cash Flows
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
|
2016
|
|
2015
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net Income
(Loss)
|
$
|
444
|
$
|
(6,364)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
|
2,561
|
|
2,863
|
|
Inventory
impairment
|
|
-
|
|
1,749
|
|
Loss on impairment of
assets
|
|
-
|
|
2,950
|
|
Loss on disposal of
assets
|
|
2
|
|
-
|
|
Share-based
compensation
|
|
170
|
|
133
|
|
Deferred income tax
(benefit) expense
|
|
(144)
|
|
378
|
|
(Recovery of)
provision for bad debts
|
|
(237)
|
|
297
|
|
Changes in working
capital:
|
|
|
|
|
|
Trade accounts
receivables
|
|
182
|
|
861
|
|
Inventories
|
|
1,937
|
|
2,246
|
|
Other current
assets
|
|
114
|
|
(157)
|
|
Accounts payable and
accrued expenses
|
|
(197)
|
|
(1,457)
|
|
Net cash provided by
operating activities
|
|
4,832
|
|
3,499
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
(1,203)
|
|
(5,662)
|
|
Proceeds from sales of
property, plant and equipment
|
|
2
|
|
18
|
|
Net cash used in
investing activities
|
|
(1,201)
|
|
(5,644)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from lines of
credit
|
|
82
|
|
6,578
|
|
Payments on lines of
credit
|
|
(254)
|
|
(7,349)
|
|
Proceeds from export
credit refinancing facility
|
|
1,705
|
|
4,220
|
|
Payments on export
credit refinancing facility
|
|
(2,560)
|
|
(5,194)
|
|
Proceeds from
long-term bank debt
|
|
-
|
|
3,641
|
|
Payments on long-term
bank debt
|
|
(931)
|
|
(1,032)
|
|
Proceeds from the
issuance of common stock through exercise of warrants
|
|
1,397
|
|
-
|
|
Net cash (used in)
provided by financing activities
|
|
(561)
|
|
864
|
|
Effect of foreign
currency exchange rate fluctuations on cash and cash
equivalents
|
|
(167)
|
|
(563)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
2,903
|
|
(1,844)
|
|
Cash and cash
equivalents at beginning of year
|
|
813
|
|
2,657
|
|
Cash and cash
equivalents at end of year
|
$
|
3,716
|
$
|
813
|
|
|
|
|
|
|
Supplemental cash
flow disclosures:
|
|
|
|
|
|
Interest
paid
|
$
|
147
|
$
|
134
|
|
Income taxes
paid
|
$
|
95
|
$
|
386
|
|
|
|
|
|
|
Non-cash investing
activities:
|
|
|
|
|
|
Capital expenditures
financed through accounts payable and accrued expenses
|
$
|
96
|
$
|
355
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tor-minerals-international-reports-fourth-quarter-and-year-end-2016-financial-results-300412698.html
SOURCE TOR Minerals International, Inc.
