Exhibit 99.1
TOR Minerals Announces Fourth Quarter 2005 Financial Results
CORPUS CHRISTI, Texas, March 1, 2006 TOR Minerals International (Nasdaq:TORM), producer of natural titanium dioxide pigments and specialty aluminas, today announced its financial results for the year ended December 31, 2005. The Company reported net income available to shareholders of $423,000, or $0.05 per share, versus $1,048,000, or $0.13 per share during 2004. Net sales for 2005 were $32,669,000 versus $30,476,000 reported for 2004.
For the quarter ended December 31, 2005, the Company reported essentially breakeven results, on net sales of $10,085,000. This compares with net income available to shareholders of $185,000 or $0.02 per share, on net sales of $8,642,000 for the quarter ended December 31, 2004.
Fourth quarter revenue grew 16% year-over-year due to increased volumes and pricing in both the HITOX and specialty alumina businesses. Synthetic rutile sales, which were approximately 20% of fourth quarter revenue, were flat compared the same period in 2004. Profitability during the fourth quarter of 2005 was negatively impacted by difficulties with the new HITOX manufacturing process. While the Corpus Christi plant worked its way through these manufacturing difficulties by the end of 2005, it required significant labor and maintenance expense and significant quantities of HITOX to be produced on the Company's natural gas consuming system, all of which negatively impacted profitability during the fourth quarter of 2005. Income tax expense increased during the fourth quarter, reflecting a greater contribution of profits from foreign subsidiaries.
Mr. Richard Bowers, President and Chief Executive Officer, commented, "2005 was a challenging year due to both internal and external factors. While we are disappointed with the financial results, we are working hard to make 2006 a better year. We have resolved the manufacturing issues that we encountered with the new HITOX production process and almost all of current HITOX production has shifted to our new process. We expect to receive significant cost savings from this new process going forward. In addition, we have shipped our first commercial orders for HITOX SF during the fourth quarter of 2005 and the order rates are growing each month. Mr. Bowers continued, "We have taken the appropriate steps to rationalize our operations in the Netherlands to meet the anticipated level of business for our alumina products and intensified our efforts to pursue existing and new applications and customers to fill excess capacity at our Netherlands plant."
As previously stated, the Company expects cash flow from operations and liquidity to be positive in 2006.
TOR Minerals will host a conference call at 4 p.m. Central Time on March 1 to further discuss fourth quarter and annual results. The call will be simultaneously webcast, and can be accessed via the News section on the Company's website at www.torminerals.com.
Based in Corpus Christi, Texas, TOR Minerals is an international manufacturer of specialty mineral products for high performance applications with plants 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 risks of a general business slow down or recession, the increasing cost of energy, raw materials and labor, competition, 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:
David Mossberg
Beacon Street Group, LLC
(817) 310-0051
Tables Follow
TOR Minerals International, Inc. |
Condensed Consolidated Statements of Operations |
(in thousands, except per share amounts) |
| | | | | | | | |
| | | | | | | | |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2005 | | 2004 | | 2005 | | 2004 |
NET SALES | $ | 10,085 | $ | 8,642 | $ | 32,669 | $ | 30,476 |
Cost of sales | | 8,521 | | 6,995 | | 26,318 | | 23,911 |
GROSS MARGIN | | 1,564 | | 1,647 | | 6,351 | | 6,565 |
Technical services and research and development | | 72 | | 153 | | 376 | | 453 |
General, administrative and selling expenses | | 1,140 | | 1,186 | | 4,506 | | 4,567 |
(Gain) loss on disposal of assets | | - | | - | | (12) | | 55 |
OPERATING INCOME (LOSS) | | 352 | | 308 | | 1,481 | | 1,490 |
OTHER INCOME (EXPENSE): | | | | | | | | |
Interest expense, net | | (123) | | (73) | | (402) | | (228) |
Other, net | | (12) | | 1 | | (125) | | 25 |
INCOME (LOSS) BEFORE INCOME TAX | | 217 | | 236 | | 954 | | 1,287 |
Income tax expense | | 204 | | 36 | | 471 | | 183 |
NET INCOME (LOSS) | $ | 13 | $ | 200 | $ | 483 | $ | 1,104 |
Less: Preferred Stock Dividends | | 15 | | 15 | | 60 | | 56 |
Income (Loss) Available to Common Shareholders | $ | (2) | $ | 185 | $ | 423 | $ | 1,048 |
Income (loss) per common shareholder: | | | | | | |
Basic | $ | (0.00) | $ | 0.02 | $ | 0.05 | $ | 0.14 |
Diluted | $ | (0.00) | $ | 0.02 | $ | 0.05 | $ | 0.13 |
| | | | | | | | |
Weighted average common shares
and equivalents outstanding: | | | | | | |
Basic | | 7,825 | | 7,782 | | 7,812 | | 7,735 |
Diluted | | 7,825 | | 8,071 | | 8,129 | | 8,034 |
| | | | | | | | |
TOR Minerals International, Inc. |
Condensed Consolidated Balance Sheets |
(in thousands, except per share amounts) |
| | | | |
| | | | |
| | December 31, | | December 31, |
| | 2005 | | 2004 |
ASSETS | | | | |
Current Assets | $ | 12,725 | $ | 12,446 |
Property, plant and equipment, net | | 19,535 | | 18,988 |
Goodwill, net | | 1,729 | | 1,981 |
Other assets | | 46 | | 219 |
Total Assets | $ | 34,035 | $ | 33,634 |
| | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
Current liabilities | $ | 5,095 | $ | 6,911 |
Long-term debt, excluding current maturities | | 5,460 | | 3,731 |
Deferred tax liability | | 528 | | 279 |
Total Liabilities | | 11,083 | | 10,921 |
Shareholders' equity | | 22,952 | | 22,713 |
Total Liabilities & Shareholders' Equity | $ | 34,035 | $ | 33,634 |
| | | | |
