EXHITIB 99.1 |
TOR Minerals International, Inc. Announces First Quarter Financial Results
CORPUS CHRISTI, Texas, May 4, 2010 - TOR Minerals International, Inc. (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, 2010. The Company reported net income available to common shareholders of $569,000, or $0.26 per diluted share, on net sales of $6,856,000. This compares with a net loss available to common shareholders of ($284,000), or ($0.15) per share, on net sales of $5,703,000 for the quarter ended March 31, 2009.
Net sales increased 20.2 percent during the first quarter of 2010 over the first quarter of 2009. During the first quarter of 2010, sales of HITOX® increased 49.4 percent to $2.9 million as end market demand in paint and plastic markets continued to improve. Sales of specialty alumina products decreased 5.2 percent during the first quarter of 2010 as increasing demand for new and existing specialty alumina products in North America and Europe was offset by a shift in the order pattern of a significant U.S. customer.
During the first quarter of 2010, operating profit increased to $744,000, or 10.8 percent of sales, compared to an operating loss of ($249,000) reported during the first quarter of 2009. First quarter 2010 operating profit also increased sequentially from the operating profit of $302,000, or 4.7 percent of sales, reported during the fourth quarter of 2009. Year-over-year and sequential improvements in profitability resulted from increased sales levels, increased plant utilization, and greater operational efficiencies.
Commenting on the results, Dr. Olaf Karasch, Chief Executive Officer said, "First quarter's operating margin was the highest in over six years. The noteworthy improvement in profitability is a result of the hard work we have done in the past two years to improve efficiencies and remove costs from our business. The improvement also reflects the powerful leverage in our business, as a large portion of each incremental sales dollar makes a significant contribution to our bottom line."
The Company said that during the past five months it has secured significant orders for specialty alumina products and expects to have growth in alumina sales beginning in the second quarter. Dr. Karasch said, "Growth in our specialty alumina business should further diversify the Company's customer and product concentration in this category." In addition, the Company said that its Ti02 pigment business is expected to benefit from a continuing recovery in the paint and plastics end markets, as well as what presently appears to be a favorable pricing environment.
If the trend continues, the Company said it expects to see continued improvement in financial results during 2010.
A webcast discussing first quarter 2010 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 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.
The consolidated financial statements to be included in the Company's quarterly report on Form 10-Q for the three month period ended March 31, 2010 (the "Form 10-Q") have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business, as to which uncertainty exists. The Company's financial statements, including the financial statements in the Form 10-Q and the financial results reported on this press release, do not include any adjustment that might result from the outcome of this uncertainty.
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 Part Advisors, LLC
(817) 310-0051
Financial Tables Follow
TOR Minerals International, Inc. and Subsidiaries | ||||
| Three Months | |||
|
| 2010 |
| 2009 |
NET SALES | $ | 6,856 | $ | 5,703 |
Cost of sales | 5,206 | 4,889 | ||
GROSS MARGIN |
| 1,650 |
| 814 |
Technical services and research and development | 57 | 52 | ||
Selling, general and administrative expenses | 849 | 1,011 | ||
OPERATING INCOME (LOSS) |
| 744 |
| (249) |
OTHER INCOME (EXPENSE): | ||||
Interest income | - | 2 | ||
Interest expense | (121) | (112) | ||
Gain (loss) on foreign currency exchange rate | (28) | 54 | ||
Other, net | - | 2 | ||
INCOME (LOSS) BEFORE INCOME TAX |
| 595 |
| (303) |
Income tax expense (benefit) | 11 | (34) | ||
NET INCOME (LOSS) | $ | 584 | $ | (269) |
Less: Preferred Stock Dividends | 15 | 15 | ||
Income (Loss) Available to Common Shareholders | $ | 569 | $ | (284) |
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Income (loss) per common share: | ||||
Basic | $ | 0.30 | $ | (0.15) |
Diluted | $ | 0.26 | $ | (0.15) |
Weighted average common shares outstanding: | ||||
Basic | 1,891 | 1,891 | ||
Diluted | 2,193 | 1,891 |
TOR Minerals International, Inc. and Subsidiaries | ||||
| March 31, |
| December 31, | |
|
| (Unaudited) |
|
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ASSETS | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ | 1,067 | $ | 1,002 |
Trade accounts receivable, net | 3,840 | 3,380 | ||
Inventories | 9,519 | 9,101 | ||
Other current assets | 750 | 540 | ||
Total current assets | 15,176 | 14,023 | ||
PROPERTY, PLANT AND EQUIPMENT, net | 18,471 | 18,800 | ||
OTHER ASSETS | 52 | 53 | ||
Total Assets | $ | 33,699 | $ | 32,876 |
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LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
CURRENT LIABILITIES: | ||||
Accounts payable | $ | 1,680 | $ | 1,452 |
Accrued expenses | 1,661 | 1,036 | ||
Notes payable under lines of credit | 2,512 | 3,313 | ||
Current deferred tax liability | 50 | 60 | ||
Current maturities - capital leases | 119 | 140 | ||
Current maturities of long-term debt - financial institutions | 349 | 435 | ||
Total current liabilities | 6,371 | 6,436 | ||
LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES | ||||
Capital leases | 25 | 49 | ||
Long-term debt - financial institutions | 1,334 | 1,477 | ||
Long-term debt - convertible debentures, net | 1,139 | 1,122 | ||
DEFERRED TAX LIABILITY | 629 | 577 | ||
Total liabilities | 9,498 | 9,661 | ||
COMMITMENTS AND CONTINGENCIES | ||||
SHAREHOLDERS' EQUITY: | ||||
Series A 6% convertible preferred stock $.01 par value: | 2 | 2 | ||
Common stock $.25 par value: authorized, 6,000 shares; | 2,364 | 2,363 | ||
Additional paid-in capital | 25,215 | 25,214 | ||
Accumulated deficit | (7,238) | (7,807) | ||
Accumulated other comprehensive income: | ||||
Cumulative translation adjustment | 3,858 | 3,443 | ||
Total shareholders' equity | 24,201 | 23,215 | ||
Total Liabilities and Shareholders' Equity | $ | 33,699 | $ | 32,876 |
TOR Minerals International, Inc. and Subsidiaries | ||||
Three Months Ended March 31, | ||||
2010 |
| 2009 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: |
| |||
Net Income (Loss) | $ | 584 | $ | (269) |
Adjustments to reconcile net income (loss) to net cash | ||||
Depreciation | 469 | 428 | ||
Share-based compensation | - | 26 | ||
Warrant interest expense | 17 | - | ||
Deferred income taxes | 10 | (35) | ||
Changes in working capital: | ||||
Trade accounts receivables | (489) | (487) | ||
Inventories | (225) | 912 | ||
Other current assets | (200) | (462) | ||
Accounts payable and accrued expenses | 870 | 6 | ||
Net cash provided by operating activities | 1,036 | 119 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: |
| |||
Additions to property, plant and equipment | (102) | (415) | ||
Net cash used in investing activities | (102) | (415) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: |
| |||
Net (payments on) proceeds from lines of credit | (732) | 856 | ||
Net proceeds from export credit refinancing facility | - | 260 | ||
Payments on capital lease | (39) | (20) | ||
Payments on long-term bank debt | (161) | (209) | ||
Loan origination costs | 3 | - | ||
Proceeds from the issuance of common stock, | 2 | - | ||
Preferred stock dividends paid | (15) | (15) | ||
Net cash (used in) provided by financing activities | (942) | 872 | ||
Effect of exchange rate fluctuations on cash and cash equivalents | 73 | (416) | ||
Net increase in cash and cash equivalents | 65 | 160 | ||
Cash and cash equivalents at beginning of year | 1,002 | 191 | ||
Cash and cash equivalents at end of year | $ | 1,067 | $ | 351 |
Supplemental cash flow disclosures: |
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Interest paid | $ | 104 | $ | 112 |