CORPUS CHRISTI, Texas,
Aug. 3, 2017 /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, 2017. Highlights for the second quarter of 2017, as
compared to the second quarter of 2016, include:
- 2Q17 sales increased 9 percent to $10.7
million
- 2Q17 net income of $352,000,
versus 2Q16 net income of $87,000.
- 2Q17 earnings per share of $0.10,
versus 2Q16 earnings per share of $0.03
|
Revenue by Product
Group (in 000's)
|
|
2Q17
|
|
2Q16
|
|
% Change
2017 vs. 2016
|
|
Specialty
Aluminas
|
|
$
6,003
|
|
$
5,073
|
|
18%
|
|
Barium Sulfate and
Other Products
|
|
2,148
|
|
2,194
|
|
-2%
|
|
TiO2Pigments
|
|
2,580
|
|
2,583
|
|
0%
|
|
Total
|
|
$
10,731
|
|
$
9,850
|
|
9%
|
During the second quarter ended June 30,
2017, sales increased 9 percent to $10.7 million, versus $9.9
million reported during the same period of 2016. The
increase in revenue was primarily due to continued growth in
specialty alumina sales, which was partially offset by relatively
flat comparisons in the Company's other two product categories.
Specialty alumina sales primarily benefited from strong
growth in Europe and growth of
OPTILOAD to both existing and new customers in the U.S. TiO2
pigment sales increased 39 percent and 22 percent in Asia and Europe, respectively, which were offset by a
19 percent decrease in the U.S.; resulting in relatively flat
comparisons year over year.
During the second quarter of 2017, gross margin increased 3.7
percentage points to 15.6 percent of sales, versus 11.9 percent
during the same period a year ago. The increase in gross margin was
primarily due to higher production volume and improved efficiencies
and a reduction in raw material costs. During the second
quarter, SG&A expenses were $1.2
million, versus $1.1 million
during the second quarter of 2016. The increase in SG&A
expenses was primarily related to additional sales and marketing
expenses. During the second quarter, net income was
$352,000 or $0.10 per diluted share, as compared to net
income of $87,000, or $0.03 per diluted share, during the prior
year.
"While we had mixed results on our top line, we posted a strong
recovery in profitability during the second quarter, posting the
highest earnings per share number we have seen in more than three
years," commented Dr. Olaf Karasch,
Chief Executive Officer. "We saw continued strength in our
Specialty Alumina business and are well positioned to continue
double-digit growth in our largest product category. While
flat in terms of revenue comparisons, our TiO2 business saw
improving trends in Europe and
Asia. Due to our cost improvement efforts, TiO2 has also
begun to contribute nicely to overall profitability this
year. Our barium sulfate-related revenue was also
relatively flat year over year, but continues to add nice
contribution margin to the overall business. Overall, we remain
confident that we are well-positioned to deliver double-digit sales
growth during 2017, 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 August 03,
2017, 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.
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
|
|
Condensed
Consolidated Statements of Income
|
|
(Unaudited)
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended June 30,
|
|
Six
Months
Ended June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
NET
SALES
|
$
|
10,731
|
$
|
9,850
|
$
|
21,427
|
$
|
19,422
|
|
Cost of
sales
|
|
9,053
|
|
8,680
|
|
18,622
|
|
16,927
|
|
GROSS
MARGIN
|
|
1,678
|
|
1,170
|
|
2,805
|
|
2,495
|
|
Technical services,
research and development
|
|
43
|
|
52
|
|
86
|
|
90
|
|
Selling, general and
administrative expenses
|
|
1,216
|
|
1,062
|
|
2,409
|
|
1,903
|
|
OPERATING
INCOME
|
|
419
|
|
56
|
|
310
|
|
502
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(29)
|
|
(47)
|
|
(58)
|
|
(97)
|
|
Gain (loss) on
foreign currency exchange rate
|
|
10
|
|
10
|
|
(23)
|
|
(79)
|
|
Other, net
|
|
14
|
|
16
|
|
15
|
|
28
|
|
Total Other
Expense
|
|
(5)
|
|
(21)
|
|
(66)
|
|
(148)
|
|
INCOME BEFORE
INCOME TAX
|
|
414
|
|
35
|
|
244
|
|
354
|
|
Income tax expense
(benefit)
|
|
62
|
|
(52)
|
|
24
|
|
23
|
|
NET
INCOME
|
$
|
352
|
$
|
87
|
$
|
220
|
$
|
331
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.10
|
$
|
0.03
|
$
|
0.06
|
$
|
0.10
|
|
Diluted
|
$
|
0.10
|
$
|
0.03
|
$
|
0.06
|
$
|
0.10
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,542
|
|
3,402
|
|
3,542
|
|
3,208
|
|
Diluted
|
|
3,563
|
|
3,459
|
|
3,559
|
|
3,323
|
|
TOR Minerals
International, Inc. and Subsidiaries
|
|
Condensed
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,813
|
$
|
3,716
|
|
Trade accounts
receivable, net
|
|
4,798
|
|
3,557
|
|
Inventories,
net
|
|
11,330
|
|
11,776
|
|
Other current
assets
|
|
1,289
|
|
742
|
|
Total current
assets
|
|
20,230
|
|
19,791
|
|
PROPERTY, PLANT AND
EQUIPMENT, net
|
|
17,448
|
|
15,907
|
|
DEFERRED TAX ASSET,
foreign
|
|
24
|
|
27
|
|
OTHER
ASSETS
|
|
4
|
|
4
|
|
Total
Assets
|
$
|
37,706
|
$
|
35,729
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accounts
payable
|
$
|
2,851
|
$
|
2,122
|
|
Accrued
expenses
|
|
1,530
|
|
1,136
|
|
Export credit
refinancing facility
|
|
-
|
|
206
|
|
Current maturities of
long-term debt – financial institutions
|
|
1,102
|
|
1,142
|
|
Total current
liabilities
|
|
5,483
|
|
4,606
|
|
LONG-TERM DEBT -
FINANCIAL INSTITUTIONS
|
|
2,614
|
|
2,725
|
|
DEFERRED TAX
LIABILITY, domestic
|
|
120
|
|
127
|
|
Total
liabilities
|
|
8,217
|
|
7,458
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Common stock $1.25
par value: authorized, 6,000 shares;
3,542 shares issued and outstanding at June 30, 2017
and December 31, 2016
|
|
4,426
|
|
4,426
|
|
Additional paid-in
capital
|
|
30,656
|
|
30,544
|
|
Accumulated
deficit
|
|
(4,601)
|
|
(4,821)
|
|
Accumulated other
comprehensive loss
|
|
(992)
|
|
(1,878)
|
|
Total shareholders'
equity
|
|
29,489
|
|
28,271
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
37,706
|
$
|
35,729
|
|
TOR Minerals
International, Inc. and Subsidiaries
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Six Months
Ended
June 30,
|
|
|
2017
|
|
2016
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
$
|
220
|
$
|
331
|
|
Adjustments to
reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
Depreciation
|
|
1,321
|
|
1,269
|
|
Gain on disposal of
assets
|
|
-
|
|
(1)
|
|
Stock-based
compensation
|
|
109
|
|
85
|
|
Deferred income tax
benefit
|
|
(6)
|
|
(121)
|
|
Inventory
reserve
|
|
|
|
85
|
|
Allowance for
(recovery of) bad debts
|
|
21
|
|
(273)
|
|
Changes in working
capital:
|
|
|
|
|
|
Trade accounts
receivables
|
|
(1,133)
|
|
(976)
|
|
Inventories
|
|
730
|
|
3,210
|
|
Other current
assets
|
|
(507)
|
|
(23)
|
|
Accounts payable and
accrued expenses
|
|
618
|
|
(325)
|
|
Net cash provided by
operating activities
|
|
1,373
|
|
3,261
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
(1,707)
|
|
(790)
|
|
Net cash used in
investing activities
|
|
(1,707)
|
|
(790)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from lines
of credit
|
|
-
|
|
3
|
|
Payments on lines of
credit
|
|
-
|
|
(197)
|
|
Proceeds from export
credit refinancing facility
|
|
-
|
|
935
|
|
Payments on export
credit refinancing facility
|
|
(215)
|
|
(1,508)
|
|
Payments on long-term
bank debt
|
|
(460)
|
|
(537)
|
|
Proceeds from the
issuance of common stock through exercise of warrants
|
|
-
|
|
1,398
|
|
Net cash (used in)
provided by financing activities
|
|
(675)
|
|
94
|
|
Effect of foreign
currency exchange rate fluctuations on cash and cash
equivalents
|
|
106
|
|
3
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(903)
|
|
2,568
|
|
Cash and cash
equivalents at beginning of period
|
|
3,716
|
|
813
|
|
Cash and cash
equivalents at end of period
|
$
|
2,813
|
$
|
3,381
|
|
|
|
|
|
|
Supplemental cash
flow disclosures:
|
|
|
|
|
|
Interest
paid
|
$
|
59
|
$
|
77
|
|
Income taxes
paid
|
$
|
209
|
$
|
45
|
|
Non-cash financing
activities:
|
|
|
|
|
|
Capital expenditures
financed through accounts payable and accrued expenses
|
$
|
320
|
$
|
-
|
View original
content:http://www.prnewswire.com/news-releases/tor-minerals-international-inc-reports-second-quarter-financial-results-300499098.html
SOURCE TOR Minerals International, Inc.
