TOR Minerals Announces First Quarter 2009 Financial Results
CORPUS CHRISTI, Texas, May 12, 2009 - TOR Minerals International (Nasdaq: TORM), producer of synthetic titanium dioxide and color pigments, specialty aluminas, and other high performance mineral fillers, today announced its financial results for the first quarter ended March 31, 2009. The company reported a net loss available to common shareholders of ($284,000), or ($0.03) per diluted share, on net sales of $5,703,000 for the quarter ended March 31, 2009. This compares with a net loss available to common shareholders of ($604,000), or ($0.08) per diluted share, on net sales of $6,746,000 for the quarter ended March 31, 2008.
Net sales decreased 15.5 percent during the first quarter of 2009 primarily due to weakness in paint and plastics end markets and continued reduction of customer's inventory levels. First quarter HITOX sales decreased 49 percent, keeping pace with the decline experienced during the fourth quarter of 2008. Partially offsetting the decline in HITOX sales, specialty alumina sales increased 59% during the first quarter. First quarter's specialty alumina sales benefited from increased sales to customers in North America. Other product sales declined 17 percent during the first quarter.
As previously announced, during the first quarter of 2009, TOR Minerals implemented a 20 percent reduction in employee and management salaries, reduced staffing levels and discretionary spending. Combined with recent operational efficiency improvements and lower freight and energy costs, the company reduced the net loss available to shareholders.
Commenting on the results, Dr. Olaf Karasch, Chief Executive Officer said, "Weakness in the worldwide economy and paint and plastics markets continued to affect our top line and plant utilization during the first quarter. We have taken difficult, but necessary, measures to lower our operating costs to levels that are in line with current revenue run rates and we expect the full effect of these measures to be realized in the coming quarters."
"Due to the level of uncertainty in the paint and plastics markets, we are preparing our operations to weather an extended period of weak demand in our end markets. To offset the anticipated weakness in our existing product lines, we continue to make progress introducing new, innovative products that allow our customers to lower their overall bill of materials, and/or production costs while maintaining or exceeding quality standards. A good example of this is the success with our North American alumina business during the first quarter. We have introduced several new alumina products to the North American market that have received fast customer acceptance and expect specialty alumina order rates to remain robust throughout 2009." Dr. Karasch continued.
A webcast discussing first quarter 2009 results can be accessed for a period of 30 days via the News section of the TOR Minerals' website at www.torminerals.com.
Headquartered in Corpus Christi, Texas, TOR Minerals 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 slow down 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:
David Mossberg
Three Point Advisors, LLC
(817) 310-0051
Financial Tables Follow
TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
|
| | Three Months
Ended March 31, |
| | 2009 | | 2008 |
NET SALES | $ | 5,703 | $ | 6,746 |
Cost of sales | | 4,889 | | 6,086 |
GROSS MARGIN | | 814 | | 660 |
Technical services and research and development | | 52 | | 66 |
Selling, general and administrative expenses | | 1,011 | | 1,075 |
Gain on disposal of assets | | - | | (2) |
OPERATING LOSS | | (249) | | (479) |
OTHER INCOME (EXPENSE): | | | | |
Interest income | | 2 | | 1 |
Interest expense | | (112) | | (144) |
Gain on foreign currency exchange rate | | 54 | | 1 |
Other, net | | 2 | | 1 |
LOSS BEFORE INCOME TAX | | (303) | | (620) |
Income tax benefit | | (34) | | (31) |
NET LOSS | $ | (269) | $ | (589) |
Less: Preferred Stock Dividends | | 15 | | 15 |
Loss Available to Common Shareholders | $ | (284) | $ | (604) |
| | | | |
Loss per common share: | | | | |
Basic | $ | (0.03) | $ | (0.08) |
Diluted | $ | (0.03) | $ | (0.08) |
Weighted average common shares outstanding: | | | | |
Basic | | 9,453 | | 7,871 |
Diluted | | 9,453 | | 7,871 |
TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
|
| | March 31, | | December 31, |
| | 2009 | | 2008 |
| | (Unaudited) | | |
ASSETS | | | | |
CURRENT ASSETS: | | | | |
Cash and cash equivalents | $ | 351 | $ | 191 |
Trade accounts receivable, net | | 2,956 | | 2,310 |
Inventories, net | | 10,625 | | 11,839 |
Other current assets | | 895 | | 444 |
TOTAL CURRENT ASSETS | | 14,827 | | 14,784 |
PROPERTY, PLANT AND EQUIPMENT, net | | 18,757 | | 19,515 |
OTHER ASSETS | | 34 | | 38 |
Total Assets | $ | 33,618 | $ | 34,337 |
| | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
CURRENT LIABILITIES: | | | | |
Accounts payable | $ | 2,704 | $ | 2,268 |
Accrued expenses | | 1,047 | | 1,611 |
Notes payable under lines of credit | | 2,942 | | 2,156 |
Export credit refinancing facility | | 1,644 | | 1,458 |
Current deferred tax liability | | 56 | | 56 |
Current maturities - capital leases | | 84 | | 86 |
Current maturities of long-term debt - financial institutions | | 1,451 | | 1,590 |
Total current liabilities | | 9,928 | | 9,225 |
LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES | | | | |
Capital leases | | 113 | | 141 |
Long-term debt - financial institutions | | 1,682 | | 1,876 |
Deferred tax liability | | 519 | | 580 |
Total liabilities | | 12,242 | | 11,822 |
COMMITMENTS AND CONTINGENCIES | | | | |
SHAREHOLDERS' EQUITY: | | | | |
Series A 6% convertible preferred stock $.01 par value:
authorized, 5,000 shares; 200 shares issued and
outstanding at 3/31/09 and 12/31/08 | | 2 | | 2 |
Common stock $.25 par value: authorized, 20,000 shares;
9,453 shares issued and outstanding at 3/31/09 and
at 12/31/08, respectively | | 2,363 | | 2,363 |
Additional paid-in capital | | 24,551 | | 24,525 |
Accumulated deficit | | (7,895) | | (7,611) |
Accumulated other comprehensive income: | | | | |
Cumulative translation adjustment | | 2,355 | | 3,236 |
Total shareholders' equity | | 21,376 | | 22,515 |
Total Liabilities and Shareholders' Equity | $ | 33,618 | $ | 34,337 |
TOR Minerals International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
|
| | Three Months Ended March 31, |
| | 2009 | | 2008 |
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | |
Net loss | $ | (269) | $ | (589) |
Adjustments to reconcile net loss to net cash
provided by operating activities: | | | | |
Depreciation | | 428 | | 481 |
Stock-based compensation expense | | 26 | | 34 |
Gain on sale/disposal of property, plant and equipment | | - | | (2) |
Deferred income taxes | | (35) | | (6) |
Provision for bad debt | | - | | 1 |
Changes in working capital: | | | | |
Receivables | | (487) | | (655) |
Inventories | | 912 | | 1,901 |
Other current assets | | (462) | | (247) |
Accounts payable and accrued expenses | | 6 | | (469) |
Net cash provided by operating activities | | 119 | | 449 |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | |
Additions to property, plant and equipment | | (415) | | (978) |
Proceeds from sales of property, plant and equipment | | - | | 3 |
Net cash used in investing activities | | (415) | | (975) |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | |
Net proceeds / (payments) from lines of credit | | 856 | | (345) |
Net proceeds from export credit refinancing facility | | 260 | | 447 |
Net proceeds / (payments) on capital leases | | (20) | | 5 |
Proceeds from long-term bank debt | | - | | 1,973 |
Payments on long-term bank debt | | (209) | | (1,582) |
Proceeds from the issuance of common stock
through exercise of common stock options | | - | | 12 |
Preferred stock dividends paid | | (15) | | (15) |
Net cash provided by financing activities | | 872 | | 495 |
Effect of exchange rate fluctuations on cash and cash equivalents | | (416) | | 9 |
Net change in cash and cash equivalents | | 160 | | (22) |
Cash and cash equivalents at beginning of period | | 191 | | 376 |
Cash and cash equivalents at end of period | $ | 351 | $ | 354 |
| | | | |
Supplemental cash flow disclosures: | | | | |
Interest paid | $ | 112 | $ | 144 |
