Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 06, 2014 | Jun. 30, 2013 | |
Document and Entity Information: | ' | ' | ' |
Entity Registrant Name | 'TOR MINERALS INTERNATIONAL INC | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000842295 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 3,014,022 | ' |
Entity Public Float | ' | ' | $14,843,000 |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (In thousands, except per share amounts) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues: | ' | ' |
NET SALES | $46,021 | $56,653 |
Cost of sales | 42,566 | 44,673 |
GROSS MARGIN | 3,455 | 11,980 |
Technical services and research and development | 652 | 384 |
Selling, general and administrative expenses | 4,722 | 5,029 |
(Gain) loss on disposal of assets | 10 | -6 |
OPERATING INCOME (LOSS) | -1,929 | 6,573 |
OTHER INCOME (EXPENSE): | ' | ' |
Interest expense | -389 | -471 |
Loss on foreign currency exchange rate | -140 | -50 |
Other, net | 18 | 0 |
Total Other Expense | -511 | -521 |
INCOME (LOSS) BEFORE INCOME TAX | -2,440 | 6,052 |
Income tax (benefit) expense | -824 | 1,024 |
NET INCOME (LOSS) | -1,616 | 5,028 |
Plus: 6% Convertible Debenture Interest Expense | 0 | 22 |
Diluted Income (Loss) Available to Common Shareholders | ($1,616) | $5,050 |
Income (loss) per common share: | ' | ' |
Basic | ($0.54) | $1.81 |
Diluted | ($0.54) | $1.49 |
Weighted average common shares outstanding: | ' | ' |
Basic | 3,002 | 2,781 |
Diluted | 3,002 | 3,394 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (In thousands) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statements of Comprehensive Income (Loss): | ' | ' |
NET INCOME (LOSS) | ($1,616) | $5,028 |
Net foreign currency translation adjustment gains (losses) | -948 | 746 |
Other comprehensive income (loss), net of tax | -948 | 746 |
COMPREHENSIVE INCOME (LOSS) | ($2,564) | $5,774 |
Consolidated_Balance_Sheets_In
Consolidated Balance Sheets (In thousands, except per share amounts) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $2,920 | $2,799 |
Trade accounts receivable, net | 4,526 | 3,972 |
Inventories, net | 20,753 | 22,895 |
Other current assets | 596 | 1,822 |
Total current assets | 28,795 | 31,488 |
PROPERTY, PLANT AND EQUIPMENT, net | 23,799 | 22,933 |
OTHER ASSETS | 23 | 25 |
Total Assets | 52,617 | 54,446 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 3,279 | 4,608 |
Accrued expenses | 1,397 | 1,864 |
Notes payable under lines of credit | 1,477 | 2,109 |
Export credit refinancing facility | 3,866 | 394 |
Current deferred tax liability | 66 | 173 |
Current maturities - capital leases | 12 | 33 |
Current maturities of long-term debt - financial institutions | 1,040 | 1,202 |
Total current liabilities | 11,137 | 10,383 |
CAPITAL LEASES | 0 | 12 |
LONG-TERM DEBT - FINANCIAL INSTITUTIONS | 2,918 | 2,316 |
DEFERRED TAX LIABILITY | 18 | 1,007 |
Total liabilities | 14,073 | 13,718 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Common stock $1.25 par value: authorized, 6,000 shares; 3,012 shares issued and outstanding at December 31, 2013 and 2,987 shares issued and outstanding at December 31, 2012 | 3,765 | 3,733 |
Additional paid-in capital | 29,365 | 29,017 |
Retained earnings | 1,653 | 3,269 |
Accumulated other comprehensive income: | ' | ' |
Cumulative translation adjustment | 3,761 | 4,709 |
Total shareholders' equity | 38,544 | 40,728 |
Total Liabilities and Shareholders' Equity | $52,617 | $54,446 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (In thousands, except per share amounts) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Parentheticals | ' | ' |
Common Stock, par value | $1.25 | $1.25 |
Common Stock, shares authorized | 6,000 | 6,000 |
Common Stock, shares issued | 3,012 | 2,987 |
Common Stock, shares outstanding | 3,012 | 2,987 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity Years ended December 31, 2013 and 2012 (In thousands) (USD $) | Common Stock Shares | Common Stock Amount | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total |
USD ($) | USD ($) | USD ($) | USD ($) | |||
Balance at Dec. 31, 2011 | 2,400 | 2,999 | 28,222 | -1,759 | 3,963 | 33,425 |
Conversion of debentures to common stock | 553 | 691 | 565 | ' | ' | 1,256 |
Exercise of stock options | 15 | 19 | 114 | ' | ' | 133 |
Exercise of warrants | 19 | 24 | 26 | ' | ' | 50 |
Share based compensation | ' | ' | $90 | ' | ' | $90 |
Net income | ' | ' | ' | 5,028 | ' | 5,028 |
Other Comprehensive Income | ' | ' | ' | ' | 746 | 746 |
Balance at Dec. 31, 2012 | 2,987 | 3,733 | 29,017 | 3,269 | 4,709 | 40,728 |
Exercise of stock options | 25 | 32 | 239 | ' | ' | 271 |
Share based compensation | ' | ' | 109 | ' | ' | 109 |
Net loss | ' | ' | ' | -1,616 | ' | -1,616 |
Other Comprehensive Loss | ' | ' | ' | ' | ($948) | ($948) |
Balance at Dec. 31, 2013 | 3,012 | 3,765 | 29,365 | 1,653 | 3,761 | 38,544 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (In thousands, except per share amounts) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities | ' | ' |
Net Income (Loss) | ($1,616) | $5,028 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation | 3,157 | 2,470 |
Inventory impairment | 1,329 | 0 |
(Gain) loss on disposal of assets | 10 | -6 |
Share-based compensation | 109 | 90 |
Convertible debenture interest expense | 0 | 22 |
Deferred income tax (benefit) expense | -1,088 | 120 |
Provision for bad debts | 7 | 69 |
Changes in working capital: | ' | ' |
Trade accounts receivables | -534 | 936 |
Inventories | -5 | -3,777 |
Other current assets | 1,172 | -598 |
Accounts payable and accrued expenses | -1,681 | 1,385 |
Net cash provided by operating activities | 860 | 5,739 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Additions to property, plant and equipment | -4,230 | -4,881 |
Proceeds from sales of property, plant and equipment | 3 | 7 |
Net cash used in investing activities | -4,227 | -4,874 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net payments on lines of credit | -598 | -869 |
Net proceeds (payments) from export credit refinancing facility | 3,498 | -906 |
Payments on capital lease | -35 | -18 |
Proceeds from long-term bank debt | 1,283 | 866 |
Payments on long-term bank debt | -840 | -862 |
Proceeds from the issuance of common stock,and exercise of common stock options | 271 | 198 |
Net cash provided by (used in) provided by financing activities | 3,579 | -1,591 |
Effect of foreign currency exchange rate fluctuations on cash and cash equivalents | -91 | 144 |
Net increase (decrease) in cash and cash equivalents | 121 | -582 |
Cash and cash equivalents at beginning of year | 2,799 | 3,381 |
Cash and cash equivalents at end of year | 2,920 | 2,799 |
Supplemental cash flow disclosures: | ' | ' |
Interest paid | 396 | 429 |
Income taxes paid | 866 | 742 |
Non-cash financing activities | ' | ' |
Conversion of debenture | $0 | $1,450 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Revenues from sales to Foreign customers (Tables) | ' | |
Summary of Significant Accounting Policies | ' | |
Summary of Significant Accounting Policies | ||
1 | ||
Business Description | ||
TOR Minerals International, Inc. and Subsidiaries (the "Company"), a Delaware Corporation, is engaged in a single industry, the manufacture and sale of mineral products for use as pigments and extenders, primarily in the manufacture of paints, industrial coatings plastics, catalysts and solid surface applications. The Company's global headquarters and U.S. manufacturing plant are located in Corpus Christi, Texas (“TOR U.S.” or “U.S. Operations”). The Asian Operations, TOR Minerals Malaysia, Sdn. Bhd. (“TMM”), is located in Ipoh, Malaysia, and the European Operations, TOR Processing and Trade, BV (“TPT”), is located in Hattem, The Netherlands. | ||
Basis of Presentation and Use of Estimates | ||
The consolidated financial statements include accounts of TOR Minerals International, Inc. and its wholly-owned subsidiaries, TMM and TPT. All significant intercompany transactions and balances are eliminated in the consolidation process. | ||
TMM measures and records its transactions in terms of the local Malaysian currency, the Ringgit (“RM”), which is also the functional currency. As a result, gains and losses resulting from translating the balance sheet from RM to U.S. Dollars are recorded as cumulative translation adjustments (which are included in accumulated other comprehensive income, a separate component of shareholders’ equity) on the consolidated balance sheets. As of December 31, 2013 and 2012, the cumulative translation adjustment included on the consolidated balance sheets totaled $1,737,000 and $2,988,000, respectively. | ||
TPT’s functional currency is the Euro. As a result, gains and losses resulting from translating the balance sheet from Euros to U.S. Dollars are recorded as cumulative translation adjustments on the consolidated balance sheet. As of December 31, 2013 and 2012, the cumulative translation adjustment included on the consolidated balance sheets totaled $2,024,000 and $1,721,000, respectively. | ||
In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amount of consolidated assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the reporting period. Actual results could differ from these estimates. | ||
Cash and Cash Equivalents: The Company considers all highly liquid investments readily convertible to known cash amounts and with a maturity of three months or less at the date of purchase to be cash equivalents. | ||
Accounts Receivable: The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral from its customers. The allowance for non-collection of accounts receivable is based upon the expected collectability of all accounts receivable including review of agings and current economic conditions. Accounts are written off when all reasonable internal and external collection efforts have been performed. At December 31, 2013 and 2012, we maintained a reserve for doubtful accounts of approximately $109,000 and $148,000, respectively. | ||
Foreign Currency: Results of operations for the Company’s foreign operations, TMM and TPT, are translated from the designated functional currency to the U.S. Dollar using average exchange rates during the period, while assets and liabilities are translated at the exchange rate in effect at the reporting date. Resulting gains or losses from translating foreign currency financial statements are reported as other comprehensive income (loss), net of income tax. The effect of changes in exchange rates between the designated functional currency and the currency in which a transaction is denominated are recorded as foreign currency transaction gains (losses) in earnings. | ||
Inventories: Inventories are stated at the lower of cost or market with cost being determined principally by use of the average-cost method. The Company writes down inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. Due to the continued weakness in the titanium dioxide (“TiO2) market, the Company recognized a write down of approximately $1.3 million in inventory, primarily related to HITOX and Synthetic Rutile, from the cost to estimated market value for the year ended December 31, 2013. In addition, we maintained a reserve for obsolescence and unmarketable inventory of approximately $305,000 and $61,000 at December 31, 2013 and 2012, respectively. | ||
Overhead is charged to inventory based on normal capacity and we expense abnormal amounts of idle facility expense, freight and handling costs in the period incurred. For the years ended December 31, 2013 and 2012, the Company recorded approximately $1,000,000 and $606,000, respectively, related to idle facility expense primarily at the Malaysian operations. | ||
Property, Plant and Equipment: Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of depreciable assets which range from 3 to 39 years. Maintenance and repair costs are charged to operations as incurred and major improvements extending asset lives are capitalized. | ||
Valuation of Long-Lived Assets: The impairment of tangible and intangible assets is assessed when changes in circumstances (such as, but not limited to, a decrease in market value of an asset, current and historical operating losses or a change in business strategy) indicate that their carrying value may not be recoverable. This assessment is based on management’s estimates of future undiscounted cash flows, salvage values or net sales proceeds. These estimates take into account management’s expectations and judgments regarding future business and economic conditions, future market values and disposal costs. Actual results and events could differ significantly from management’s estimates. Based upon our most recent analysis, we believe that no impairment exists at December 31, 2013 or 2012. There can be no assurance that future impairment tests will not result in a charge to net earnings. | ||
Revenue Recognition: The Company recognizes revenue when each of the following four criteria are met: 1) a contract or sales arrangement exists; 2) title and risk of loss transfers to the customer upon shipment for FOB shipping point sales and when the Company receives confirmation of receipt and acceptance by the customer for FOB destination sales; 3) the price of the products is fixed or determinable; 4) collectability is reasonably assured. | ||
Shipping and Handling: The Company records shipping and handling costs, associated with the outbound freight on products shipped to customers, as a component of cost of goods sold. | ||
Earnings Per Share: Basic earnings per share are based on the weighted average number of shares outstanding and exclude any dilutive effects of options, warrants, debentures and/or convertible preferred stock. Diluted earnings per share reflect the effect of all dilutive items. | ||
Income Taxes: The Company records income taxes using the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. | ||
When accounting for uncertainties in income taxes, we evaluate all tax years still subject to potential audit under the applicable state, federal and foreign income tax laws. We are subject to taxation in the United States, Malaysia and The Netherlands. Our federal income tax returns in the United States are subject to examination for the tax years ended December 31, 2010 through December 31, 2013. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2009 through December 31, 2013. Our tax returns in various non-U.S. jurisdictions are subject to examination for various tax years dating back to December 31, 2007. | ||
As of January 1, 2013, we did not have any unrecognized tax benefits and there was no change during the year ended December 31, 2013. In addition, we did not recognize any interest and penalties in our consolidated financial statements during the year ended December 31, 2013. If any interest or penalties related to any income tax liabilities are imposed in future reporting periods, we expect to record both of these items as components of income tax expense. | ||
Derivatives and Hedging Activities: The Company records the fair value of all outstanding derivative instruments on the consolidated balance sheets in other current assets and current liabilities. Derivatives are held as part of a formally documented risk management (hedging) program. All derivatives are straightforward and are held for purposes other than trading. The Company measures hedge effectiveness by formally assessing, at least quarterly, the historical and probable future high correlation of changes in the fair value or expected future cash flows of the hedged item. The ineffective portions, if any, are recorded in current earnings in the current period. If the hedging relationship ceases to be highly effective or if it becomes probable that an expected transaction will no longer occur, gains or losses on the derivative are recorded in current earnings. Changes in the fair value of derivatives are recorded in current earnings along with the change in fair value of the underlying hedged item if the derivative is designated as a fair value hedge or in other comprehensive income (loss) if the derivative is designated as a cash flow hedge. If no hedging relationship is designated, the derivative is marked to market through current earnings. The Company has utilized natural gas forward contracts to hedge a portion of its U.S. Operations’ natural gas needs and has utilized foreign currency forward contracts at both the U.S. and Asian Operations to hedge a portion of its foreign currency risk. (See Note 14, Derivatives and Other Financial Instruments). | ||
Share Based Compensation: The Company calculates share based compensation using the Black-Scholes-Merton (“Black-Scholes”) option-pricing model, which requires the input of highly subjective assumptions including the expected stock price volatility. For the years ended December 31, 2013 and 2012, we recorded $109,000 and $90,000, respectively, in share-based employee compensation. This compensation cost is included in the general and administrative expenses and cost of sales in the accompanying consolidated statements of operations. |
Debt_and_Notes_Payable
Debt and Notes Payable | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt and Notes Payable | ' | ||||
Debt and Notes Payable | ' | ||||
2. | Debt and Notes Payable | ||||
Long-term Debt – Financial Institutions | |||||
Following is a summary of our long-term debt to financial institutions as of December 31, 2013 and 2012: | |||||
(In thousands) | December 31, | ||||
2013 | 2012 | ||||
Fixed Rate term note payable to a U.S. bank, with an interest rate of 5.5% at December 31, 2013, due January 1, 2016, secured by real estate, leasehold improvements, property, plant and equipment, inventory and accounts receivable of our U.S. operation. | $ | 911 | $ | 1,309 | |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at December 31, 2013, due July 1, 2029, secured by TPT's land and office building purchased July 2004. (€256) | 351 | 363 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at December 31, 2013, due January 31, 2030, secured by TPT's land and building purchased January 2005. (€280) | 386 | 395 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.05% at December 31, 2013, due July 31, 2015, secured by TPT's assets. (€58) | 80 | 143 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.25% at December 31, 2013, due July 5, 2014, secured by TPT's assets. (€101) | 139 | 442 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 6.6% at December 31, 2013, due March 1, 2015, secured by TMM's property, plant and equipment. (RM 2,625) | 801 | 866 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 6.6% at December 31, 2013, due October 25, 2018, secured by TMM's property, plant and equipment. (RM 4,229) | 1,290 | - | |||
Total | 3,958 | 3,518 | |||
Less current maturities | 1,040 | 1,202 | |||
Total long-term debt - financial institutions, net of current maturities | $ | 2,918 | $ | 2,316 | |
United States Operations | |||||
U.S. Credit Agreement and Term Loan | |||||
On December 31, 2010, the Company entered into a credit agreement (the “Agreement”) with American Bank, N.A. (the “Lender”). The Agreement consists of a $2 million term loan, which matures December 31, 2015 and a $2 million line of credit. The term loan bears interest at a fixed rate of 5.5% per annum. Monthly principal and interest payments commenced on February 1, 2011. The monthly principal and interest payment are $38,620. At December 31, 2013, the balance on the term loan was $911,000. | |||||
The Agreement is secured by certain assets of the Company which are located in the United States or which arise from the Company’s operations in the United States. Collateral under the Agreement does not include the Company’s ownership or other interests in TMM and TPT, any assets or operations of either TMM or TPT or any proceeds thereof. | |||||
On January 17, 2014, the Company entered into the third amendment (the “Amendment”) with the Lender, which has an effective date of January 1, 2014. Under the terms of the Amendment, which waived the debt covenant for the four-quarter period ended December 31, 2013, the Company is required to pledge a certificate of deposit in the amount of $350,000 as additional security against the outstanding loan balance of $911,000. In addition, the Company will be required to maintain a ratio of cash flow to debt service as follows: | |||||
1. at least 1.25 to 1.0 measured on a rolling four-quarter basis beginning with the four-quarter period ending December 31, 2010 and ending with the four-quarter period ending September 30, 2013; | |||||
2. at least 1.0 to 1.0 for the four months ending April 30, 2014; | |||||
3. at least 1.0 to 1.0 for the six months ending June 30, 2014; | |||||
4. at least 1.0 to 1.0 for the nine months ending September 30, 2014; | |||||
5. at least 1.25 to 1.0 for the twelve months ending December 31, 2014; and | |||||
6. at least 1.25 to 1.0 measured on a rolling, four-quarter basis beginning with the four-quarter period ending March 31, 2015, and similarly measured at the end of each quarter thereafter. | |||||
The Agreement also includes certain additional affirmative and negative covenants, including limitations on incurring additional indebtedness, becoming a guarantor or surety, making loans or advances to other parties, except trade credit extended in the normal course of business, or changing the President or Board of Directors of the Company without the Lender’s written consent. | |||||
European Operations | |||||
On July 7, 2004, TPT entered into a mortgage loan (the “First Mortgage”) with Rabobank. The First Mortgage, in the amount of €485,000, is to be repaid over 25 years and the interest rate is to be adjusted every five years. Under the terms of the agreement, the interest was adjusted to a fixed rate of 3.85%, effective August 1, 2013, for a period of five years. Thereafter, the rate will change to Rabobank prime plus 1.75%. TPT utilized €325,000 of the loan to finance the July 14, 2004, purchase of land and an office building, as well as to remodel the office building. The balance of the loan proceeds, €160,000, was used for the expansion of TPT’s existing building. Monthly principal and interest payments commenced on September 1, 2004, and will continue through July 1, 2029. The monthly principal payment is €1,616. The loan balance at December 31, 2013 was €256,000 ($351,000). The mortgage loan is secured by the land and office building purchased on July 7, 2004. | |||||
On January 3, 2005, TPT entered into a second mortgage loan (the “Second Mortgage”) with Rabobank to fund the acquisition of a 10,000 square foot warehouse with a loading dock that is located adjacent to TPT’s existing production facility. The Second Mortgage, in the amount of €470,000, is to be repaid over 25 years and the interest rate is to be adjusted every five years. Under the terms of the agreement, the interest was adjusted to a fixed rate of 3.3%, effective January 3, 2013, for a period of five years. Thereafter, the rate will change to Rabobank prime plus 1.75%. Monthly principal and interest payments commenced on February 28, 2005 and will continue through January 31, 2030. The monthly principal payment is €1,566. The mortgage is secured by the land and building purchased by TPT on January 3, 2005. The loan balance at December 31, 2013 was €280,000 ($386,000). | |||||
On July 19, 2005, TPT entered into a new term loan with Rabobank to fund the completion of its building expansion. The loan, in the amount of €500,000, will be repaid over 10 years with interest fixed at 6.1% per year for the first five years. Under the terms of the agreement, the interest was adjusted to a fixed rate of 4.05%, effective July 19, 2010, for a period of five years. Thereafter, the rate will change to Rabobank prime plus 1.75%. Monthly principal and interest payments commenced on August 31, 2005 and will continue through July 31, 2015. The monthly principal payment is €4,167. The loan is secured by TPT’s assets. The loan balance at December 31, 2013 was €58,000 ($80,000). | |||||
On July 5, 2011, TPT entered into a three year term loan in the amount of €700,000 with a fixed interest rate of 4.25%. The loan proceeds were used to fund TPT’s plant expansion and is secured by TPT’s assets. Monthly principal and interest payments began on August 5, 2011 and continue through July 5, 2014. The monthly principal payment is €19,444 and the loan balance at December 31, 2013 was €101,000 ($139,000). The loan is secured by TPT’s production equipment. | |||||
Asian Operations | |||||
On March 2, 2012, TMM amended their banking facility with HSBC Bank Malaysia Berhad (“HSBC”), a Malaysian Bank, to include a new Term Loan in the amount of Malaysian Ringgits (“RM”) 3,500,000 ($1,068,000) for the purpose of upgrading the operation’s synthetic rutile production process. Under the terms of the facility, the loan will be paid in 35 equal monthly installments of RM 97,223 (excluding interest) and a final installment of RM 97,195 or approximately $29,661 and $29,652, respectively, commencing one month after full drawdown or 18 months after initial drawdown, whichever is earlier. The interest rate is 2.00% above prime and will be payable monthly. The loan balance at December 31, 2013 was RM 2,625,000 ($801,000). | |||||
On October 25, 2013, TMM entered into an agreement with HSBC to amend the banking facility currently in place between TMM & HSBC. Under the terms of the agreement, HSBC granted a new term loan to TMM in the amount of RM 5,000,000 ($1,525,090). Under the terms of the agreement, the term loan will be amortized over a period of five (5) years, and the interest rate will be 2.0% per annum above the HSBC’s base lending rate, which is currently 6.6% per annum. Monthly principal payments, in the amount of RM 83,333 ($25,423), will commence one month after the loan is fully funded or 12 months after the initial drawdown, whichever is earlier. The funds will be used to finance part of the cost of plant improvements to increase efficiency and production capacity. The loan balance at December 31, 2013 was RM 4,229,000 ($1,290,000). | |||||
On October 25, 2013, TMM entered into an agreement with RHB Bank Berhad (“RHB”), a Malaysian Bank, to amend the banking facility currently in place between TMM & RHB. Under the terms of the agreement, RHB granted a new term loan to TMM in the amount of RM 3,200,000 ($1,018,300). Under the terms of the agreement, the term loan will be amortized over a period of five (5) years, and the interest rate will be 1.25% per annum above the RHB’s base lending rate, which is currently 6.6% per annum. The funds will be used to finance part of the cost of plant improvements to increase efficiency and production capacity. At December 31, 2013, no funds had been drawn down on the loan. | |||||
Liquidity | |||||
Management believes that it has adequate liquidity for fiscal year 2014 and expects to maintain compliance with all financial covenants throughout 2014. | |||||
The following is a summary of the future maturities of long-term debt to financial institutions as of December 31, 2014: | |||||
Years Ending December 31, | |||||
(In thousands) | |||||
2014 | $ | 1,040 | |||
2015 | 946 | ||||
2016 | 527 | ||||
2017 | 487 | ||||
2018 | 486 | ||||
Thereafter | 472 | ||||
Total | $ | 3,958 | |||
Short-term Debt – Financial Institutions | |||||
U.S. Operations | |||||
On December 31, 2010, the Company entered into a credit agreement (the “Agreement”) with American Bank, N.A. (the “Lender”) which established a $1,000,000 line of credit (the “Line”), and on March 1, 2012, the Line was increased from $1,000,000 to $2,000,000. On May 15, 2013, the Company and the Lender entered into the second amendment which extended the maturity date from October 15, 2013 to October 15, 2014 and reduced the minimum interest rate floor from 5.5% to 4.5%. Under the terms of the Agreement, the amount the Company is entitled to borrow under the Line is subject to a borrowing base, which is based on the loan value of the collateral pledged to the Lender to secure the indebtedness owing to the Lender by the Company. Amounts advanced under the Line bear interest at a variable rate equal to one percent per annum point above the Wall Street Journal Prime Rate as such prime rate changes from time to time, with a minimum floor rate of 4.5%. At December 31, 2013, no funds were outstanding on the Line. | |||||
European Operations | |||||
On March 20, 2007, our subsidiary, TPT, entered into a short-term credit facility (the “Credit Facility”) with Rabobank which increased TPT’s line of credit from €650,000 to €1,100,000. The Credit Facility was renewed on January 1, 2010 and has no stated maturity date. The Credit Facility, which has a variable interest rate of bank prime plus 2.8% (currently at 3.432%), is secured by TPT’s accounts receivable and inventory. At December 31, 2013, TPT had utilized €783,000 ($1,077,000) of its short-term credit facility. | |||||
TPT’s loan agreements covering both the Credit Facility and the term loans include subjective acceleration clauses that allow Rabobank to accelerate payment if, in the judgment of the bank, there are adverse changes in our business. We believe that such subjective acceleration clauses are customary in The Netherlands for such borrowings. However, if demand is made by Rabobank, we may be unable to refinance the demanded indebtedness, in which case the bank could foreclose on the assets of TPT. | |||||
Asian Operations | |||||
On May 21, 2013, TMM amended its banking facility with HSBC to extend the maturity date from April 30, 2013 to April 30, 2014. The HSBC facility includes the following in RM: (1) overdraft of RM 500,000; (2) an import/export line (“ECR”) of RM 6,460,000; and (3) a foreign exchange contract limit of RM 5,000,000 ($152,000, $1,971,000 and $1,525,000, respectively). | |||||
On April 17, 2013, TMM amended its banking facility with RHB to extend the maturity date from March 5, 2013 to March 24, 2014. The RHB facility includes the following: (1) an overdraft line of credit up to RM 1,000,000; (2) an ECR of RM 9,300,000; (3) a bank guarantee of RM 1,200,000; and (4) a foreign exchange contract limit of RM 25,000,000 ($305,000, $2,837,000, $366,000 and $7,627,000, respectively). At December 31, 2013, the outstanding balance on the foreign exchange contract RM 1,311,000 ($400,000) at a current interest rate of 2.80%. | |||||
The banking facilities with both HSBC and RHB bear an interest rate on the overdraft facilities at 1.25% over bank prime and the ECR facilities bear interest at 1.0% above the funding rate stipulated by the Export-Import Bank of Malaysia Berhad. The ECR, a government supported financing arrangement specifically for exporters, is used by TMM for short-term financing of up to 180 days against customers’ and inter-company shipments. At December 31, 2013, the outstanding balance on the ECR facilities was RM 12,672,000 ($3,866,000) at a current interest rate of 4.62%. | |||||
The borrowings under both the HSBC and the RHB short term credit facilities are subject to certain subjective acceleration covenants based on the judgment of the banks and a demand provision that provide that the banks may demand repayment at any time. We believe such a demand provision is customary in Malaysia for such facilities. The loan agreements are secured by TMM’s property, plant and equipment. However, if demand is made by HSBC or RHB, we may be unable to refinance the demanded indebtedness, in which case, the lenders could foreclose on the assets of TMM. The credit facilities prohibit TMM from paying dividends, and the HSBC facility further prohibits loans to related parties without the prior consent of HSBC. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Fair Value Measurements | ' | ||||||||
Fair Value Measurements | ' | ||||||||
3 | Fair Value Measurements | ||||||||
The following table summarizes the valuation of our financial instruments recorded on a fair value basis as of December 31, 2013 and 2012. The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at December 31, 2013 or 2012. | |||||||||
Fair Value Measurements | |||||||||
(In thousands) | Total | Quoted Pricesin Active Markets(Level 1) | SignificantOther ObservableInputs(Level 2) | SignificantUnobservableInputs(Level 3) | |||||
Liability | |||||||||
31-Dec-12 | |||||||||
Currency forward contracts | $ | -1 | $ | - | $ | -1 | $ | - | |
31-Dec-13 | |||||||||
Currency forward contracts | $ | -14 | $ | - | $ | -14 | $ | - | |
Our foreign currency derivative financial instruments mitigate foreign currency exchange risks and include forward contracts. The forward contracts are marked-to-market at each balance sheet date with any resulting gain or loss recognized in income as part of the gain or loss on foreign currency exchange rate included under “Other Expense” on the Company’s consolidated statement of operations. The fair value of the currency forward contracts is determined using Level 2 inputs based on the currency rate in effect at the end of the reporting period. | |||||||||
The fair value of the Company’s debt is based on estimates using standard pricing models and Level 2 inputs, including the Company’s estimated borrowing rate, that take into account the present value of future cash flows as of the consolidated balance sheet date. The computation of the fair value of these instruments is performed by the Company. The carrying amounts and estimated fair values of the Company’s long-term debt, including current maturities, are summarized below: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
(In thousands) | CarryingValue | FairValue | CarryingValue | FairValue | |||||
Long-term debt, including current portion | $ | 3,958 | $ | 3,697 | $ | 3,518 | $ | 3,455 | |
The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, trade receivables, payables and accrued liabilities, accrued income taxes and short-term borrowings approximate fair values due to the short term nature of these instruments, accordingly, these items have been excluded from the above table. |
Capital_Leases
Capital Leases | 12 Months Ended | ||
Dec. 31, 2013 | |||
Schedule of Future Minimum Payments for Leases (Tables) | ' | ||
Capital Leases | ' | ||
4. | Capital Leases | ||
On August 1, 2010, the Company entered into a financial lease agreement with Dell Financial Services for new computer servers. The cost of the equipment under the capital lease, in the amount of $22,000, is included in the consolidated balance sheets as property, plant and equipment. Accumulated amortization of the leased equipment at December 31, 2013 was approximately $22,000. The capital lease is in the amount of $20,698 including interest of $1,605 (implicit interest rate 5.3%). The 36 month lease was fully amortized on August 1, 2013. | |||
On September 4, 2011, TPT entered into a financial lease agreement with Diependael Leasing, BV for equipment related to the production of ALUPREM. The cost of the equipment under the capital lease, in the amount of €38,360 ($52,700), is included in the consolidated balance sheets as property, plant and equipment. Accumulated amortization of the leased equipment at December 31, 2013 was approximately €30,000 ($41,000). The capital lease is in the amount of €41,256 ($56,700) including interest of €2,896 ($4,000) (implicit interest rate 4.786%). The lease term is 36 months with equal monthly installments of €1,146 ($1,575). The net present value of the lease at December 31, 2013 was €9,168 ($12,000). | |||
On February 5, 2012, TPT entered into a financial lease agreement with Sympatec GmbH for lab equipment. The cost of the equipment under the capital lease, in the amount of €52,000 ($71,500), is included in the consolidated balance sheets as property, plant and equipment. Accumulated amortization of the leased equipment at December 31, 2013 was approximately €14,300 ($19,600). The capital lease is in the amount of €56,988 ($77,300) including interest of €4,860 ($6,600) (implicit interest rate 16.785%). The lease term is 12 months with equal monthly installments of €4,749 ($6,271). The 12 month lease was fully amortized on February 5, 2013. | |||
The following table sets forth the minimum future lease payments under these leases as of December 31, 2013 until maturity: | |||
Year Ending December 31, 2014 | |||
(In thousands) | |||
Total minimum lease payments | $ | 12 | |
Less: Amount representing executory costs | - | ||
Net minimum lease payments | 12 | ||
Less: Amount representing interest | - | ||
Present value of net minimum lease payments | 12 | ||
Less: Current maturities of capital lease obligations | -12 | ||
Long-term capital lease obligations, net of current maturities | $ | - |
Inventories
Inventories | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Schedule of Inventory (Tables) | ' | ||||
Inventories | ' | ||||
5 | Inventories | ||||
A summary of inventories follows: | |||||
(In thousands) | December 31, | ||||
2013 | 2012 | ||||
Raw materials | $ | 12,852 | $ | 14,002 | |
Work in progress | 1,866 | 2,848 | |||
Finished goods | 5,306 | 5,238 | |||
Supplies | 1,034 | 868 | |||
Total Inventories | 21,058 | 22,956 | |||
Inventory reserve | -305 | -61 | |||
Net Inventories | $ | 20,753 | $ | 22,895 |
Property_Plant_and_Equipment
Property, Plant, and Equipment | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Property, Plant, and Equipment | ' | |||||
Property, Plant and Equipment | ' | |||||
6 | Property, Plant and Equipment | |||||
Major classifications and expected lives of property, plant and equipment are summarized below: | ||||||
(In thousands) | December 31, | |||||
Expected Life | 2013 | 2012 | ||||
Land and office buildings | 39 years | $ | 3,472 | $ | 3,354 | |
Production facilities | 10 - 20 years | 10,121 | 8,552 | |||
Machinery and equipment | 3 - 15 years | 36,944 | 32,869 | |||
Furniture and fixtures | 3 - 20 years | 1,534 | 1,515 | |||
Total | 52,071 | 46,290 | ||||
Less accumulated depreciation | -28,956 | -26,508 | ||||
Property, plant and equipment, net | 23,115 | 19,782 | ||||
Construction in progress | 684 | 3,151 | ||||
$ | 23,799 | $ | 22,933 | |||
The amounts of depreciation expense calculated on the Company’s property, plant and equipment for the years ended December 31, 2013 and 2012 were $3,157,000 and $2,470,000, respectively. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Schedule of Segment Reporting (Tables) | ' | ||||||||||
Segment Information | ' | ||||||||||
7 | Segment Information | ||||||||||
The Company and its subsidiaries operate in the business of pigment manufacturing and related products in three geographic segments. All United States manufacturing is done at the facility located in Corpus Christi, Texas. Foreign manufacturing is done by the Company’s wholly-owned foreign operations, TMM, located in Malaysia and TPT, located in The Netherlands. | |||||||||||
Product sales of inventory between the U.S., Asian and European operations are based on inter-company pricing, which includes an inter-company profit margin. In the geographic information, the location profit (loss) from all locations is reflective of these inter-company prices, as is inventory at the Corpus Christi location prior to elimination adjustments. Such presentation is consistent with the internal reporting reviewed by the Company’s chief operating decision maker. The elimination entries include an adjustment to the cost of sales resulting from the adjustment to ending inventory to eliminate inter-company profit, and the reversal of a similar adjustment from a prior period. To the extent there are net increases/declines period over period in Corpus Christi inventories that include an inter-company component, the net effect of these adjustments can decrease/increase location profit. | |||||||||||
For the year ended December 31, 2013, the U.S. operations received approximately 30% of its total third party sales revenue from a single customer. The European operations received approximately 31% of its total third party sales revenue from two customers (18% and 13%), and the Asian operations received approximately 42% of its total third party sales revenue from a single customer. One customer represented approximately 20% of the 2013 total consolidated sales. | |||||||||||
For the year ended December 31, 2012, the U.S. operations received approximately 29% of its total third party sales revenue from a single customer. The European operations received approximately 10% of its total third party sales revenue from one customer, and the Asian operations received approximately 57% of its total third party sales revenue from a single customer. Two customers represented approximately 17% and 16%, respectively, of the 2012 total consolidated sales. | |||||||||||
Sales from the subsidiary to the parent company are based upon profit margins which represent competitive pricing of similar products. Intercompany sales consisted of SR, HITOX, ALUPREM and TIOPREM. | |||||||||||
The Company's principal product, HITOX, accounted for approximately 30% and 33% of net consolidated sales in 2013 and 2012, respectively. | |||||||||||
The Company sells its products to customers located in more than 60 countries. Sales to external customers are attributed to geographic area based on country of distribution. Sales to customers located in the U.S. represented approximately 56%, and 48% for the years ended December 31, 2013 and 2012, respectively. | |||||||||||
For the year ended December 31, 2013, sales to customers in Germany represented approximately 20% of our total foreign sales and the United Kingdom represented approximately 33% in 2012. | |||||||||||
Approximately 24% of the Company's employees are represented by an in-house collective bargaining agreement. | |||||||||||
A summary of the Company’s manufacturing operations by geographic segment is presented below: | |||||||||||
(In thousands) | United States(Corpus Christi) | Netherlands(TPT) | Malaysia(TMM) | Inter-CompanyEliminations | Consolidated | ||||||
As of and for the years ended: | |||||||||||
31-Dec-13 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 30,019 | $ | 8,255 | $ | 7,747 | $ | - | $ | 46,021 | |
Intercompany sales | 110 | 6,627 | 7,638 | -14,375 | - | ||||||
Total Net Sales | $ | 30,129 | $ | 14,882 | $ | 15,385 | $ | -14,375 | $ | 46,021 | |
Share based compensation | $ | 109 | $ | - | $ | - | $ | - | $ | 109 | |
Depreciation | $ | 936 | $ | 1,197 | $ | 1,024 | $ | - | $ | 3,157 | |
Interest expense | $ | 77 | $ | 97 | $ | 215 | $ | - | $ | 389 | |
Income tax (benefit) expense | $ | -511 | $ | 265 | $ | -587 | $ | 9 | $ | -824 | |
Location profit (loss) | $ | -1,132 | $ | 826 | $ | -1,347 | $ | 37 | $ | -1,616 | |
Capital expenditures | $ | 703 | $ | 1,192 | $ | 2,335 | $ | - | $ | 4,230 | |
Location long-lived assets | $ | 5,805 | $ | 8,965 | $ | 9,029 | $ | - | $ | 23,799 | |
Location assets | $ | 17,956 | $ | 10,995 | $ | 23,666 | $ | - | $ | 52,617 | |
31-Dec-12 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 33,263 | $ | 7,578 | $ | 15,812 | $ | - | $ | 56,653 | |
Intercompany sales | 105 | 6,179 | 9,064 | -15,348 | - | ||||||
Total Net Sales | $ | 33,368 | $ | 13,757 | $ | 24,876 | $ | -15,348 | $ | 56,653 | |
Share based compensation | $ | 90 | $ | - | $ | - | $ | - | $ | 90 | |
Depreciation | $ | 751 | $ | 871 | $ | 848 | $ | - | $ | 2,470 | |
Interest expense | $ | 170 | $ | 126 | $ | 175 | $ | - | $ | 471 | |
Income tax expense | $ | 753 | $ | 133 | $ | 204 | $ | -66 | $ | 1,024 | |
Location profit | $ | 2,076 | $ | 445 | $ | 2,738 | $ | -231 | $ | 5,028 | |
Capital expenditures | $ | 1,928 | $ | 1,581 | $ | 1,372 | $ | - | $ | 4,881 | |
Location long-lived assets | $ | 6,051 | $ | 8,653 | $ | 8,229 | $ | - | $ | 22,933 | |
Location assets | $ | 20,762 | $ | 10,652 | $ | 23,032 | $ | - | $ | 54,446 | |
Quarterly_Data_Unaudited
Quarterly Data (Unaudited) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Quarterly Data (Unaudited) | ' | ||||||||||
Quarterly Data (Unaudited) | ' | ||||||||||
Quarterly Data (Unaudited) | |||||||||||
8 | |||||||||||
TOR Minerals International, Inc. and Subsidiaries | |||||||||||
Consolidated Statements of Operations | |||||||||||
(In thousands, except per share amounts) | |||||||||||
2013 | |||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total | |||||||
NET SALES | $ | 11,427 | $ | 10,732 | $ | 10,870 | $ | 12,992 | $ | 46,021 | |
Cost of sales | 9,933 | 9,020 | 9,289 | 14,324 | 42,566 | ||||||
GROSS MARGIN | 1,494 | 1,712 | 1,581 | -1,332 | 3,455 | ||||||
Technical services and research and development | 153 | 171 | 135 | 193 | 652 | ||||||
Selling, general and administrative expenses | 1,278 | 1,247 | 1,119 | 1,078 | 4,722 | ||||||
Loss on disposal of assets | 10 | - | - | - | 10 | ||||||
OPERATING INCOME (LOSS) | 53 | 294 | 327 | -2,603 | -1,929 | ||||||
OTHER EXPENSE: | |||||||||||
Interest expense | -84 | -99 | -103 | -103 | -389 | ||||||
(Loss) gain on foreign currency exchange rate | -87 | 20 | -84 | 11 | -140 | ||||||
Other, net | 12 | - | 6 | - | 18 | ||||||
Total Other Expense | -159 | -79 | -181 | -92 | -511 | ||||||
INCOME (LOSS) BEFORE INCOME TAX | -106 | 215 | 146 | -2,695 | -2,440 | ||||||
Income tax (benefit) expense | -31 | 65 | 33 | -891 | -824 | ||||||
NET INCOME (LOSS) | $ | -75 | $ | 150 | $ | 113 | $ | -1,804 | $ | -1,616 | |
Income (loss) per common share: | |||||||||||
Basic | $ | -0.03 | $ | 0.05 | $ | 0.04 | $ | -0.6 | $ | -0.54 | |
Diluted | $ | -0.03 | $ | 0.04 | $ | 0.03 | $ | -0.6 | $ | -0.54 | |
Weighted average common shares outstanding: | |||||||||||
Basic | 2,987 | 2,998 | 3,012 | 3,012 | 3,002 | ||||||
Diluted | 2,987 | 3,404 | 3,422 | 3,012 | 3,002 | ||||||
TOR Minerals International, Inc. and SubsidiariesConsolidated Statements of Operations(In thousands, except per share amounts) | |||||||||||
2012 | |||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total | |||||||
NET SALES | $ | 12,808 | $ | 14,108 | $ | 19,914 | $ | 9,823 | $ | 56,653 | |
Cost of sales | 9,618 | 10,441 | 16,068 | 8,546 | 44,673 | ||||||
GROSS MARGIN | 3,190 | 3,667 | 3,846 | 1,277 | 11,980 | ||||||
Technical services and research and development | 82 | 101 | 90 | 111 | 384 | ||||||
Selling, general and administrative expenses | 1,224 | 1,359 | 1,242 | 1,204 | 5,029 | ||||||
Gain on disposal of assets | - | - | -6 | - | -6 | ||||||
OPERATING INCOME | 1,884 | 2,207 | 2,520 | -38 | 6,573 | ||||||
OTHER EXPENSES: | |||||||||||
Interest expense | -142 | -112 | -143 | -74 | -471 | ||||||
Gain (loss) on foreign currency exchange rate | 23 | -20 | -24 | -29 | -50 | ||||||
Other, net | - | 1 | - | -1 | - | ||||||
Total Other Expense | -119 | -131 | -167 | -104 | -521 | ||||||
INCOME (LOSS) BEFORE INCOME TAX | 1,765 | 2,076 | 2,353 | -142 | 6,052 | ||||||
Income tax expense (benefit) | 369 | 517 | 516 | -378 | 1,024 | ||||||
NET INCOME | $ | 1,396 | $ | 1,559 | $ | 1,837 | $ | 236 | $ | 5,028 | |
Plus: 6% Convertible Debenture Interest Expense | 22 | - | - | - | 22 | ||||||
Diluted Income Available to Common Shareholders | $ | 1,418 | $ | 1,559 | $ | 1,837 | $ | 236 | $ | 5,050 | |
Income per common share: | |||||||||||
Basic | $ | 0.58 | $ | 0.56 | $ | 0.62 | $ | 0.08 | $ | 1.81 | |
Diluted | $ | 0.41 | $ | 0.45 | $ | 0.53 | $ | 0.07 | $ | 1.49 | |
Weighted average common shares outstanding: | |||||||||||
Basic | 2,402 | 2,769 | 2,968 | 2,980 | $ | 2,781 | |||||
Diluted | 3,439 | 3,462 | 3,441 | 3,424 | $ | 3,394 |
Calculation_of_Basic_and_Dilut
Calculation of Basic and Diluted Earnings per Share | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Calculation of Basic and Diluted Earnings per Share (Tables) | ' | ||||
Calculation of Basic and Diluted Earnings per Share | ' | ||||
9 | Calculation of Basic and Diluted Earnings per Share | ||||
(in thousands, except per share amounts) | Years Ended December 31, | ||||
2013 | 2012 | ||||
Numerator: | |||||
Net Income (Loss) | $ | -1,616 | $ | 5,028 | |
Numerator for basic earnings per share- income (loss) available to common shareholders | -1,616 | 5,028 | |||
Effect of dilutive securities: | |||||
6% Convertible Debenture Interest Expense | - | 22 | |||
Numerator for diluted earnings per share - income (loss)available to common shareholders after assumed conversions | $ | -1,616 | $ | 5,050 | |
Denominator: | |||||
Denominator for basic earnings per share- weighted-average shares | 3,002 | 2,781 | |||
Effect of dilutive securities: | |||||
Employee stock options | - | 30 | |||
Warrants | - | 447 | |||
6% Convertible Debentures | - | 136 | |||
Dilutive potential common shares | - | 613 | |||
Denominator for diluted earnings per share -weighted-average shares and assumed conversions | 3,002 | 3,394 | |||
Basic earnings per common share | $ | -0.54 | $ | 1.81 | |
Diluted earnings per common share | $ | -0.54 | $ | 1.49 | |
For the year ended December 31, 2013, 528,304 warrants were excluded from the calculation of diluted earnings per share as the effect would anti-dilutive. For the year ended December 31, 2012, there were no warrants excluded from the calculation of diluted earnings per share. | |||||
For the years ended December 31, 2013, 131,164 employee stock options were excluded from calculation of diluted earnings per share as the effect would be anti-dilutive. For the year ended December 31, 2012, 77,820 of shares issuable upon the exercise of employee stock options were excluded from the calculation of diluted earnings per share as the exercise price was greater than the average market price of the common shares and, therefore, the effect would be anti-dilutive. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
10 | Income Taxes | ||||||||||||
The Company provides for deferred taxes on temporary differences between the financial statements and tax bases of assets using the enacted tax rates that are expected to apply to taxable income when the temporary differences are expected to reverse. | |||||||||||||
Our U.S. operations had a deferred tax asset related to a federal net operating loss (“NOL”) carry-forward of approximately $461,000 at December 31, 2013 for which we have not provided a valuation allowance. | |||||||||||||
At December 31, 2013 and 2012, we had federal NOL carry-forwards of approximately $1,355,000 and $0, respectively. | |||||||||||||
Our Asian operation, TMM, had NOL carry-forwards of approximately $3,728,000 and $2,934,000, at December 31, 2013 and 2012, respectively. Because these foreign NOL carry-forwards have an indefinite carry forward period, we have determined that it is not necessary to provide a valuation allowance. | |||||||||||||
The undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested. Accordingly, no provision for U.S. federal and state income taxes or foreign withholding taxes has been provided on approximately $6,000,000 of such cumulative undistributed earnings. Determination of the potential amount of unrecognized deferred U.S. income tax liability and foreign withholding taxes is not practicable because of the complexities associated with its hypothetical calculation. | |||||||||||||
Components of Pretax Income (Loss) | Years Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Domestic | $ | -1,643 | $ | 2,829 | |||||||||
Foreign | -797 | 3,223 | |||||||||||
Pretax income (loss) | $ | -2,440 | $ | 6,052 | |||||||||
Components of Income Tax Expense (Benefit) | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | Current | Deferred | Total | Current | Deferred | Total | |||||||
Federal | $ | - | $ | -518 | $ | -518 | $ | 364 | $ | 389 | $ | 753 | |
State | 7 | - | 7 | 11 | - | 11 | |||||||
Foreign | 265 | -578 | -313 | 133 | 127 | 260 | |||||||
Total Income Tax Expense | $ | 272 | $ | -1,096 | $ | -824 | $ | 508 | $ | 516 | $ | 1,024 | |
The following table accounts for the difference between the actual tax provision and the amounts obtained by applying the statutory U.S. federal income tax rate of 34% to income before taxes. | |||||||||||||
Effective Tax Rate Reconciliation | Years Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Expense (benefit) computed at statutory rate | $ | -829 | $ | 2,058 | |||||||||
Change in valuation allowance - Domestic | - | -259 | |||||||||||
Effect of items deductible for book not tax, net | |||||||||||||
Stock based compensation | 37 | 30 | |||||||||||
Other | 13 | 14 | |||||||||||
Effect of foreign tax credit | -60 | -547 | |||||||||||
Effect of foreign tax rate differential | 11 | -279 | |||||||||||
State income taxes, net of Federal benefit | 4 | 7 | |||||||||||
$ | -824 | $ | 1,024 | ||||||||||
Significant Components of Deferred Taxes | Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Deferred Tax Assets: | |||||||||||||
Net operating loss carry-forwards - Domestic | $ | 461 | $ | - | |||||||||
Net operating loss carry-forwards - Foreign | 932 | 733 | |||||||||||
PP&E - Foreign | 10 | 10 | |||||||||||
Intercompany profit | 74 | 83 | |||||||||||
Domestic reserves | 16 | 16 | |||||||||||
Unrealized foreign currency losses - Domestic | 50 | 62 | |||||||||||
Other deferred assets | 494 | 35 | |||||||||||
Total deferred tax assets | $ | 2,037 | $ | 939 | |||||||||
Deferred Tax Liabilities: | |||||||||||||
PP&E - Domestic | 696 | 654 | |||||||||||
PP&E - Foreign | 1,407 | 1,442 | |||||||||||
Unrealized gain on derivatives | 15 | 20 | |||||||||||
Other | 3 | 3 | |||||||||||
Total deferred tax liabilities | 2,121 | 2,119 | |||||||||||
Net deferred tax liability | $ | -84 | $ | -1,180 |
Stock_Options
Stock Options | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Stock Options | ' | ||||||||||
Stock Options | ' | ||||||||||
11 | Stock Options | ||||||||||
On February 21, 2000, the Company's Board of Directors approved the adoption of the 2000 Incentive Stock Option Plan (the “Plan”) for TOR Minerals International, Inc. The Plan provides for the award of a variety of incentive compensation arrangements, including restricted stock awards, performance units or other non-option awards, to such employees and directors as may be determined by a Committee of the Board. At the Annual Shareholders’ meeting on May 11, 2012, the maximum number of shares of the Company’s common stock that may be sold or issued under the Plan was increased to 500,000 shares subject to certain adjustments upon recapitalization, stock splits and combinations, merger, stock dividend and similar events; in addition the Plan was extended to May 23, 2022. At December 31, 2013, there were 131,164 options outstanding, 112,792 exercised and 256,044 available for future issuance under the Plan. | |||||||||||
For the years ended December 31, 2013 and 2012, the Company recorded $109,000 and $90,000, respectively, in stock-based employee compensation. This compensation cost is included in the general and administrative expenses and cost of sales in the accompanying consolidated statements of operations. | |||||||||||
The Company granted options to purchase 20,500 and 21,000 shares of common stock during the years ended December 31, 2013 and 2012, respectively. The weighted average fair value per option at the date of grant for options granted in the years ended December 31, 2013 and 2012 was $11.37 and $11.03, respectively, as valued using the Black-Scholes option-pricing model with the following weighted average assumptions: | |||||||||||
Twelve Months Ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
Risk-free interest rate | 1.28% | 1.17% | |||||||||
Expected dividend yield | 0.00% | 0.00% | |||||||||
Expected volatility | 0.9 | 0.68 | |||||||||
Expected term (in years) | 7 | 7 | |||||||||
The risk free interest rate is based on the Treasury Constant Maturity Rate as quoted by the Federal Reserve at the time of the grant for a term equivalent to the expected term of the grant. The estimated volatility is based on the historical volatility of our stock and other factors. The expected term of options represents the period of time the options are expected to be outstanding from grant date. | |||||||||||
The following table summarizes certain information regarding stock option activity: | |||||||||||
Options | |||||||||||
Total Reserved | Outstanding | Weighted AvgExercise Price | Range ofExercise Prices | ||||||||
Balances atDecember 31, 2011 | 177,641 | 167,983 | $12.53 | $1.75 | - | $30.55 | |||||
Additional options authorized | 250,000 | ||||||||||
Granted | 21,000 | $11.03 | $16.77 | - | $18.22 | ||||||
Exercised | -15,095 | -15,095 | $8.83 | $2.90 | - | $11.05 | |||||
Balances atDecember 31, 2012 | 412,546 | 173,888 | $13.39 | $2.70 | - | $30.55 | |||||
Granted | 20,500 | $8.83 | $11.27 | - | $11.39 | ||||||
Exercised | -25,338 | -25,338 | $10.69 | $2.70 | - | $11.05 | |||||
Forfeited or expired | -37,886 | $14.63 | $11.00 | - | $29.50 | ||||||
Balances atDecember 31, 2013 | 387,208 | 131,164 | $13.24 | $2.70 | - | $30.55 | |||||
The number of shares of common stock underlying options exercisable at December 31, 2013 and 2012 was 87,664 and 143,388, respectively. The weighted-average remaining contractual life of those options is 5.93 years. Exercise prices on options outstanding at December 31, 2013, ranged from $2.70 to $30.55 per share as noted in the following table. | |||||||||||
Options Outstanding at December 31, | |||||||||||
2013 | 2012 | Range of Exercise Prices | |||||||||
15,028 | 17,158 | $ 2.70 - $ 9.99 | |||||||||
83,116 | 111,410 | $ 10.00 - $ 14.99 | |||||||||
23,620 | 24,620 | $ 15.00 - $ 19.99 | |||||||||
2,000 | 12,800 | $ 20.00 - $ 24.99 | |||||||||
2,000 | 2,500 | $ 25.00 - $ 29.99 | |||||||||
5,400 | 5,400 | $ 30.00 - $ 30.55 | |||||||||
131,164 | 173,888 | ||||||||||
As of December 31, 2013, there was approximately $366,000 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 3.16 years. | |||||||||||
As most options issued under the Plan are Incentive Stock Options, the Company does not receive any excess tax benefits relating to the compensation expense recognized on vested options. |
Profit_Sharing_Plan
Profit Sharing Plan | 12 Months Ended | |
Dec. 31, 2013 | ||
Profit Sharing Plan: | ' | |
Profit Sharing Plan | ' | |
12 | Profit Sharing Plan | |
The Company has a profit sharing plan that covers the U.S. employees. Contributions to the plan are at the option of and determined by the Board of Directors and are limited to the maximum amount deductible by the Company for Federal income tax purposes. For the years ended December 31, 2013 and 2012, there were no contributions to the plan. | ||
The Company also offers U.S. employees a 401(k) savings plan administered by an investment services company. Employees are eligible to participate in the plan after completing six months of service with the Company. The Company matches contributions up to 4% of the employee's eligible earnings. Total Company contributions to the 401(k) plan for the years ended December 31, 2013 and 2012 were approximately $69,000 and $66,000, respectively. | ||
Derivatives_and_Other_Financia
Derivatives and Other Financial Instruments | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Derivatives and Other Financial Instruments | ' | ||||||
Derivatives and Other Financial Instruments | ' | ||||||
13 | Derivatives and Other Financial Instruments | ||||||
The Company has exposure to certain risks relating to its ongoing business operations, including financial, market, political and economic risks. The following discussion provides information regarding our exposure to the risks of changing foreign currency exchange rates. The Company has not entered into these contracts for trading or speculative purposes in the past, nor do we currently anticipate entering into such contracts for trading or speculative purposes in the future. The foreign exchange contracts are used to mitigate uncertainty and volatility, and to cover underlying exposures. | |||||||
Foreign Currency Forward Contracts | |||||||
We manage the risk of changes in foreign currency exchange rates, primarily at our Malaysian operation, through the use of foreign currency contracts. Foreign exchange contracts are used to protect the Company from the risk that the eventual cash flows resulting from transactions in foreign currencies, including sales and purchases transacted in a currency other than the functional currency, will be adversely affected by changes in exchange rates. We report the fair value of the derivatives on our consolidated balance sheets and changes in the fair value are recognized in earnings in the period of the change. | |||||||
At December 31, 2013 and 2012, we marked these contracts to market, recording $14,000 and $1,000, respectively, as a current liability on the consolidated balance sheets. For the year ended December 31, 2013, we recorded a net loss on these contracts of $13,000 as a component of our net loss. For the year ended December 31, 2012, we recorded a net gain of $74,000, respectively, as a component of our net income. | |||||||
The following table summarizes the gross fair market value of all derivative instruments, which are not designated as hedging instruments and their location in our consolidated balance sheets: | |||||||
(In thousands) | |||||||
Liability Derivatives | |||||||
Derivative Instrument | Location | 31-Dec-13 | 31-Dec-12 | ||||
Foreign Currency Exchange Contracts | Accrued Expenses | $ | 14 | $ | 1 | ||
The following table summarizes the impact of the Company’s derivatives on the consolidated financial statements of operations for the years ended December 31, 2013 and 2012: | |||||||
(In thousands) | |||||||
Location of Gain | Amount of Gain (Loss) Recognized in Operations | ||||||
Derivative | (Loss) on Derivative | Year Ended December 31, | |||||
Instrument | Instrument | 2013 | 2012 | ||||
Foreign Currency Exchange Contracts | Loss on foreign currency exchange rate | $ | -13 | $ | 74 |
Commitment_and_Contingencies
Commitment and Contingencies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitment and Contingencies | ' | |||
Commitments and Contingencies | ' | |||
14 | Commitments and Contingencies | |||
Land Lease | ||||
The Company operates a plant in Corpus Christi, Texas. The facility is located in the Rincon Industrial Park on approximately 15 acres of land, with 13 acres leased from the Port of Corpus Christi Authority (the "Port") and approximately two acres owned by the Company. The lease payment is subject to an adjustment every 5 years for what the Port calls the "equalization valuation". This is used as a means of equalizing rentals on various Port lands and is determined solely at the discretion of the Port. The Company and the Port executed an amended lease agreement on July 11, 2000, which extended the expiration date of the lease to June 30, 2027. | ||||
Minimum future rental payments under this and other immaterial leases as of December 31, 2013 for the next five years ending December 31 and in total thereafter are as follows: | ||||
Years Ending December 31, | ||||
(In thousands) | ||||
2014 | $ | 104 | ||
2015 | 95 | |||
2016 | 95 | |||
2017 | 95 | |||
2018 | 95 | |||
Thereafter | 812 | |||
Total minimum lease payments | $ | 1,296 | ||
Rent expense under these leases was approximately $103,000 for both the years ended December 31, 2013 and 2012. | ||||
Contingencies | ||||
There are claims arising in the normal course of business that are pending against the Company. While it is not feasible to predict or determine the outcome of any case, it is the opinion of management that the ultimate dispositions will have no material effect on the consolidated financial statements of the Company. | ||||
The Company believes that it is in compliance with all applicable federal, state and local laws and regulations relating to the discharge of substances into the environment, and it does not expect that any material expenditure for environmental control facilities will be necessary in order to continue such compliance. |
Foreign_Customer_Sales
Foreign Customer Sales | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Foreign Customer Sales: | ' | ||||
Foreign Customer Sales | ' | ||||
16 | Foreign Customer Sales | ||||
Revenues from sales to customers located outside the U.S. for the years ended December 31, 2013 and 2012 are as follows: | |||||
Year Ended December 31, | |||||
(In thousands) | 2013 | 2012 | |||
Canada, Mexico & South/Central America | $ | 4,500 | $ | 5,759 | |
Pacific Rim | 5,813 | 7,073 | |||
Europe, Africa & Middle East | 10,191 | 16,628 | |||
Total Sales | $ | 20,504 | $ | 29,460 | |
For the years ended December 31, 2013 and 2012, Germany represented 20% of our foreign sales and the United Kingdom represented 33%, respectively. | |||||
Significant_Customers
Significant Customers | 12 Months Ended | |
Dec. 31, 2013 | ||
Significant Customers | ' | |
Significant Customers | ' | |
15 | Significant Customers | |
For the years ended December 31, 2013 and 2012, one customer accounted for approximately 20% and 17%, respectively, of our total consolidated sales revenue and another customer represented approximately 16% of our total 2012 consolidated sales. | ||
Sales_by_Product
Sales by Product | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Sales by Product: | ' | ||||||
Sales by Product | ' | ||||||
17 | Sales by Product | ||||||
Revenues from sales by product for the years ended December 31, 2013 and 2012 are as follows (in thousands): | |||||||
Product | 2013 | 2012 | |||||
HITOX | $ | 14,004 | 30% | $ | 18,453 | 33% | |
ALUPREM | 14,662 | 32% | 14,208 | 27% | |||
BARTEX / BARYPREM | 7,882 | 17% | 7,401 | 11% | |||
HALTEX / OPTILOAD | 3,427 | 8% | 3,662 | 7% | |||
TIOPREM | 1,817 | 4% | 1,799 | 3% | |||
SR | 3,527 | 8% | 10,410 | 18% | |||
OTHER | 702 | 1% | 720 | 1% | |||
Total | $ | 46,021 | 100% | $ | 56,653 | 100% | |
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events | ' | |
Subsequent Events | ' | |
18 | Subsequent Events | |
On January 17, 2014, the Company entered into the third amendment (the “Amendment”) with the Lender, which has an effective date of January 1, 2014. (See Note 2, page F-12) |
Accounting_Policies_Policies
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies (Policies): | ' |
Business Description | ' |
Business Description | |
TOR Minerals International, Inc. and Subsidiaries (the "Company"), a Delaware Corporation, is engaged in a single industry, the manufacture and sale of mineral products for use as pigments and extenders, primarily in the manufacture of paints, industrial coatings plastics, catalysts and solid surface applications. The Company's global headquarters and U.S. manufacturing plant are located in Corpus Christi, Texas (“TOR U.S.” or “U.S. Operations”). The Asian Operations, TOR Minerals Malaysia, Sdn. Bhd. (“TMM”), is located in Ipoh, Malaysia, and the European Operations, TOR Processing and Trade, BV (“TPT”), is located in Hattem, The Netherlands. | |
Basis of Presentation and Use of Estimates | ' |
Basis of Presentation and Use of Estimates | |
The consolidated financial statements include accounts of TOR Minerals International, Inc. and its wholly-owned subsidiaries, TMM and TPT. All significant intercompany transactions and balances are eliminated in the consolidation process. | |
TMM measures and records its transactions in terms of the local Malaysian currency, the Ringgit (“RM”), which is also the functional currency. As a result, gains and losses resulting from translating the balance sheet from RM to U.S. Dollars are recorded as cumulative translation adjustments (which are included in accumulated other comprehensive income, a separate component of shareholders’ equity) on the consolidated balance sheets. As of December 31, 2013 and 2012, the cumulative translation adjustment included on the consolidated balance sheets totaled $1,737,000 and $2,988,000, respectively. | |
TPT’s functional currency is the Euro. As a result, gains and losses resulting from translating the balance sheet from Euros to U.S. Dollars are recorded as cumulative translation adjustments on the consolidated balance sheet. As of December 31, 2013 and 2012, the cumulative translation adjustment included on the consolidated balance sheets totaled $2,024,000 and $1,721,000, respectively. | |
In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amount of consolidated assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the reporting period. Actual results could differ from these estimates. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents: The Company considers all highly liquid investments readily convertible to known cash amounts and with a maturity of three months or less at the date of purchase to be cash equivalents. | |
Accounts Receivable | ' |
Accounts Receivable: The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral from its customers. The allowance for non-collection of accounts receivable is based upon the expected collectability of all accounts receivable including review of agings and current economic conditions. Accounts are written off when all reasonable internal and external collection efforts have been performed. At December 31, 2013 and 2012, we maintained a reserve for doubtful accounts of approximately $109,000 and $148,000, respectively. | |
Foreign Currency | 'Foreign Currency: Results of operations for the Company’s foreign operations, TMM and TPT, are translated from the designated functional currency to the U.S. Dollar using average exchange rates during the period, while assets and liabilities are translated at the exchange rate in effect at the reporting date. Resulting gains or losses from translating foreign currency financial statements are reported as other comprehensive income (loss), net of income tax. The effect of changes in exchange rates between the designated functional currency and the currency in which a transaction is denominated are recorded as foreign currency transaction gains (losses) in earnings. |
Inventories | ' |
Inventories: Inventories are stated at the lower of cost or market with cost being determined principally by use of the average-cost method. The Company writes down inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. Due to the continued weakness in the titanium dioxide (“TiO2) market, the Company recognized a write down of approximately $1.3 million in inventory, primarily related to HITOX and Synthetic Rutile, from the cost to estimated market value for the year ended December 31, 2013. In addition, we maintained a reserve for obsolescence and unmarketable inventory of approximately $305,000 and $61,000 at December 31, 2013 and 2012, respectively. | |
Overhead is charged to inventory based on normal capacity and we expense abnormal amounts of idle facility expense, freight and handling costs in the period incurred. For the years ended December 31, 2013 and 2012, the Company recorded approximately $1,000,000 and $606,000, respectively, related to idle facility expense primarily at the Malaysian operations. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment: Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of depreciable assets which range from 3 to 39 years. Maintenance and repair costs are charged to operations as incurred and major improvements extending asset lives are capitalized. | |
Valuation of Long-Lived Assets | ' |
Valuation of Long-Lived Assets: The impairment of tangible and intangible assets is assessed when changes in circumstances (such as, but not limited to, a decrease in market value of an asset, current and historical operating losses or a change in business strategy) indicate that their carrying value may not be recoverable. This assessment is based on management’s estimates of future undiscounted cash flows, salvage values or net sales proceeds. These estimates take into account management’s expectations and judgments regarding future business and economic conditions, future market values and disposal costs. Actual results and events could differ significantly from management’s estimates. Based upon our most recent analysis, we believe that no impairment exists at December 31, 2013 or 2012. There can be no assurance that future impairment tests will not result in a charge to net earnings. | |
Revenue Recognition | ' |
Revenue Recognition: The Company recognizes revenue when each of the following four criteria are met: 1) a contract or sales arrangement exists; 2) title and risk of loss transfers to the customer upon shipment for FOB shipping point sales and when the Company receives confirmation of receipt and acceptance by the customer for FOB destination sales; 3) the price of the products is fixed or determinable; 4) collectability is reasonably assured. | |
Shipping and Handling | ' |
Shipping and Handling: The Company records shipping and handling costs, associated with the outbound freight on products shipped to customers, as a component of cost of goods sold. | |
Earnings Per Share | ' |
Earnings Per Share: Basic earnings per share are based on the weighted average number of shares outstanding and exclude any dilutive effects of options, warrants, debentures and/or convertible preferred stock. Diluted earnings per share reflect the effect of all dilutive items. | |
Income Taxes | ' |
Income Taxes: The Company records income taxes using the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. | |
When accounting for uncertainties in income taxes, we evaluate all tax years still subject to potential audit under the applicable state, federal and foreign income tax laws. We are subject to taxation in the United States, Malaysia and The Netherlands. Our federal income tax returns in the United States are subject to examination for the tax years ended December 31, 2010 through December 31, 2013. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2009 through December 31, 2013. Our tax returns in various non-U.S. jurisdictions are subject to examination for various tax years dating back to December 31, 2007. | |
As of January 1, 2013, we did not have any unrecognized tax benefits and there was no change during the year ended December 31, 2013. In addition, we did not recognize any interest and penalties in our consolidated financial statements during the year ended December 31, 2013. If any interest or penalties related to any income tax liabilities are imposed in future reporting periods, we expect to record both of these items as components of income tax expense. | |
Derivatives and Hedging Activities | ' |
Derivatives and Hedging Activities: The Company records the fair value of all outstanding derivative instruments on the consolidated balance sheets in other current assets and current liabilities. Derivatives are held as part of a formally documented risk management (hedging) program. All derivatives are straightforward and are held for purposes other than trading. The Company measures hedge effectiveness by formally assessing, at least quarterly, the historical and probable future high correlation of changes in the fair value or expected future cash flows of the hedged item. The ineffective portions, if any, are recorded in current earnings in the current period. If the hedging relationship ceases to be highly effective or if it becomes probable that an expected transaction will no longer occur, gains or losses on the derivative are recorded in current earnings. Changes in the fair value of derivatives are recorded in current earnings along with the change in fair value of the underlying hedged item if the derivative is designated as a fair value hedge or in other comprehensive income (loss) if the derivative is designated as a cash flow hedge. If no hedging relationship is designated, the derivative is marked to market through current earnings. The Company has utilized natural gas forward contracts to hedge a portion of its U.S. Operations’ natural gas needs and has utilized foreign currency forward contracts at both the U.S. and Asian Operations to hedge a portion of its foreign currency risk. (See Note 14, Derivatives and Other Financial Instruments). | |
Share Based Compensation | ' |
Share Based Compensation: The Company calculates share based compensation using the Black-Scholes-Merton (“Black-Scholes”) option-pricing model, which requires the input of highly subjective assumptions including the expected stock price volatility. For the years ended December 31, 2013 and 2012, we recorded $109,000 and $90,000, respectively, in share-based employee compensation. This compensation cost is included in the general and administrative expenses and cost of sales in the accompanying consolidated statements of operations. |
Long_term_Debt_to_financial_in
Long term Debt to financial institutions (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Long term Debt to financial institutions (Tables) | ' | ||||
Schedule of Long-term Debt Instruments | ' | ||||
Following is a summary of our long-term debt to financial institutions as of December 31, 2013 and 2012: | |||||
(In thousands) | December 31, | ||||
2013 | 2012 | ||||
Fixed Rate term note payable to a U.S. bank, with an interest rate of 5.5% at December 31, 2013, due January 1, 2016, secured by real estate, leasehold improvements, property, plant and equipment, inventory and accounts receivable of our U.S. operation. | $ | 911 | $ | 1,309 | |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at December 31, 2013, due July 1, 2029, secured by TPT's land and office building purchased July 2004. (€256) | 351 | 363 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at December 31, 2013, due January 31, 2030, secured by TPT's land and building purchased January 2005. (€280) | 386 | 395 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.05% at December 31, 2013, due July 31, 2015, secured by TPT's assets. (€58) | 80 | 143 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.25% at December 31, 2013, due July 5, 2014, secured by TPT's assets. (€101) | 139 | 442 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 6.6% at December 31, 2013, due March 1, 2015, secured by TMM's property, plant and equipment. (RM 2,625) | 801 | 866 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 6.6% at December 31, 2013, due October 25, 2018, secured by TMM's property, plant and equipment. (RM 4,229) | 1,290 | - | |||
Total | 3,958 | 3,518 | |||
Less current maturities | 1,040 | 1,202 | |||
Total long-term debt - financial institutions, net of current maturities | $ | 2,918 | $ | 2,316 | |
Fair_Value_Measures_and_Disclo
Fair Value Measures and Disclosures (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Fair Value Measurements {2} | ' | ||||||||
Fair Value, Assets Measured on Recurring Basis | ' | ||||||||
The following table summarizes the valuation of our financial instruments recorded on a fair value basis as of December 31, 2013 and 2012. The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at December 31, 2013 or 2012. | |||||||||
Fair Value Measurements | |||||||||
(In thousands) | Total | Quoted Pricesin Active Markets(Level 1) | SignificantOther ObservableInputs(Level 2) | SignificantUnobservableInputs(Level 3) | |||||
Liability | |||||||||
31-Dec-12 | |||||||||
Currency forward contracts | $ | -1 | $ | - | $ | -1 | $ | - | |
31-Dec-13 | |||||||||
Currency forward contracts | $ | -14 | $ | - | $ | -14 | $ | - | |
Schedule of Debt | ' | ||||||||
The carrying amounts and estimated fair values of the Company’s long-term debt, including current maturities, are summarized below: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
(In thousands) | CarryingValue | FairValue | CarryingValue | FairValue | |||||
Long-term debt, including current portion | $ | 3,958 | $ | 3,697 | $ | 3,518 | $ | 3,455 | |
Schedule_of_Future_Minimum_Pay
Schedule of Future Minimum Payments for Leases (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Schedule of Future Minimum Payments for Leases (Tables) | ' | |||
Schedule of Future Minimum Lease Payments for Capital Leases | ' | |||
Years Ending December 31, | ||||
(In thousands) | ||||
2014 | $ | 1,040 | ||
2015 | 946 | |||
2016 | 527 | |||
2017 | 487 | |||
2018 | 486 | |||
Thereafter | 472 | |||
Total | $ | 3,958 |
Schedule_of_Inventory_Tables
Schedule of Inventory (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Schedule of Inventory (Tables) | ' | ||||
Schedule of Inventory (Tables) | ' | ||||
A summary of inventories follows: | |||||
(In thousands) | December 31, | ||||
2013 | 2012 | ||||
Raw materials | $ | 12,852 | $ | 14,002 | |
Work in progress | 1,866 | 2,848 | |||
Finished goods | 5,306 | 5,238 | |||
Supplies | 1,034 | 868 | |||
Total Inventories | 21,058 | 22,956 | |||
Inventory reserve | -305 | -61 | |||
Net Inventories | $ | 20,753 | $ | 22,895 |
Schedule_of_Property_Plant_and
Schedule of Property Plant and Equipment (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Schedule of Property Plant and Equipment (Tables): | ' | |||||
Schedule of Property Plant and Equipment (Tables) | ' | |||||
Major classifications and expected lives of property, plant and equipment are summarized below: | ||||||
(In thousands) | December 31, | |||||
Expected Life | 2013 | 2012 | ||||
Land and office buildings | 39 years | $ | 3,472 | $ | 3,354 | |
Production facilities | 10 - 20 years | 10,121 | 8,552 | |||
Machinery and equipment | 3 - 15 years | 36,944 | 32,869 | |||
Furniture and fixtures | 3 - 20 years | 1,534 | 1,515 | |||
Total | 52,071 | 46,290 | ||||
Less accumulated depreciation | -28,956 | -26,508 | ||||
Property, plant and equipment, net | 23,115 | 19,782 | ||||
Construction in progress | 684 | 3,151 | ||||
$ | 23,799 | $ | 22,933 | |||
Schedule_of_Segment_Reporting_
Schedule of Segment Reporting (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Schedule of Segment Reporting (Tables) | ' | ||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | ' | ||||||||||
A summary of the Company’s manufacturing operations by geographic segment is presented below: | |||||||||||
(In thousands) | United States(Corpus Christi) | Netherlands(TPT) | Malaysia(TMM) | Inter-CompanyEliminations | Consolidated | ||||||
As of and for the years ended: | |||||||||||
31-Dec-13 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 30,019 | $ | 8,255 | $ | 7,747 | $ | - | $ | 46,021 | |
Intercompany sales | 110 | 6,627 | 7,638 | -14,375 | - | ||||||
Total Net Sales | $ | 30,129 | $ | 14,882 | $ | 15,385 | $ | -14,375 | $ | 46,021 | |
Share based compensation | $ | 109 | $ | - | $ | - | $ | - | $ | 109 | |
Depreciation | $ | 936 | $ | 1,197 | $ | 1,024 | $ | - | $ | 3,157 | |
Interest expense | $ | 77 | $ | 97 | $ | 215 | $ | - | $ | 389 | |
Income tax (benefit) expense | $ | -511 | $ | 265 | $ | -587 | $ | 9 | $ | -824 | |
Location profit (loss) | $ | -1,132 | $ | 826 | $ | -1,347 | $ | 37 | $ | -1,616 | |
Capital expenditures | $ | 703 | $ | 1,192 | $ | 2,335 | $ | - | $ | 4,230 | |
Location long-lived assets | $ | 5,805 | $ | 8,965 | $ | 9,029 | $ | - | $ | 23,799 | |
Location assets | $ | 17,956 | $ | 10,995 | $ | 23,666 | $ | - | $ | 52,617 | |
31-Dec-12 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 33,263 | $ | 7,578 | $ | 15,812 | $ | - | $ | 56,653 | |
Intercompany sales | 105 | 6,179 | 9,064 | -15,348 | - | ||||||
Total Net Sales | $ | 33,368 | $ | 13,757 | $ | 24,876 | $ | -15,348 | $ | 56,653 | |
Share based compensation | $ | 90 | $ | - | $ | - | $ | - | $ | 90 | |
Depreciation | $ | 751 | $ | 871 | $ | 848 | $ | - | $ | 2,470 | |
Interest expense | $ | 170 | $ | 126 | $ | 175 | $ | - | $ | 471 | |
Income tax expense | $ | 753 | $ | 133 | $ | 204 | $ | -66 | $ | 1,024 | |
Location profit | $ | 2,076 | $ | 445 | $ | 2,738 | $ | -231 | $ | 5,028 | |
Capital expenditures | $ | 1,928 | $ | 1,581 | $ | 1,372 | $ | - | $ | 4,881 | |
Location long-lived assets | $ | 6,051 | $ | 8,653 | $ | 8,229 | $ | - | $ | 22,933 | |
Location assets | $ | 20,762 | $ | 10,652 | $ | 23,032 | $ | - | $ | 54,446 | |
Schedule_of_Quarterly_Financia
Schedule of Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Quarterly Data (Unaudited) | ' | ||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||
2013 | |||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total | |||||||
NET SALES | $ | 11,427 | $ | 10,732 | $ | 10,870 | $ | 12,992 | $ | 46,021 | |
Cost of sales | 9,933 | 9,020 | 9,289 | 14,324 | 42,566 | ||||||
GROSS MARGIN | 1,494 | 1,712 | 1,581 | -1,332 | 3,455 | ||||||
Technical services and research and development | 153 | 171 | 135 | 193 | 652 | ||||||
Selling, general and administrative expenses | 1,278 | 1,247 | 1,119 | 1,078 | 4,722 | ||||||
Loss on disposal of assets | 10 | - | - | - | 10 | ||||||
OPERATING INCOME (LOSS) | 53 | 294 | 327 | -2,603 | -1,929 | ||||||
OTHER EXPENSE: | |||||||||||
Interest expense | -84 | -99 | -103 | -103 | -389 | ||||||
(Loss) gain on foreign currency exchange rate | -87 | 20 | -84 | 11 | -140 | ||||||
Other, net | 12 | - | 6 | - | 18 | ||||||
Total Other Expense | -159 | -79 | -181 | -92 | -511 | ||||||
INCOME (LOSS) BEFORE INCOME TAX | -106 | 215 | 146 | -2,695 | -2,440 | ||||||
Income tax (benefit) expense | -31 | 65 | 33 | -891 | -824 | ||||||
NET INCOME (LOSS) | $ | -75 | $ | 150 | $ | 113 | $ | -1,804 | $ | -1,616 | |
Income (loss) per common share: | |||||||||||
Basic | $ | -0.03 | $ | 0.05 | $ | 0.04 | $ | -0.6 | $ | -0.54 | |
Diluted | $ | -0.03 | $ | 0.04 | $ | 0.03 | $ | -0.6 | $ | -0.54 | |
Weighted average common shares outstanding: | |||||||||||
Basic | 2,987 | 2,998 | 3,012 | 3,012 | 3,002 | ||||||
Diluted | 2,987 | 3,404 | 3,422 | 3,012 | 3,002 | ||||||
2012 | |||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total | |||||||
NET SALES | $ | 12,808 | $ | 14,108 | $ | 19,914 | $ | 9,823 | $ | 56,653 | |
Cost of sales | 9,618 | 10,441 | 16,068 | 8,546 | 44,673 | ||||||
GROSS MARGIN | 3,190 | 3,667 | 3,846 | 1,277 | 11,980 | ||||||
Technical services and research and development | 82 | 101 | 90 | 111 | 384 | ||||||
Selling, general and administrative expenses | 1,224 | 1,359 | 1,242 | 1,204 | 5,029 | ||||||
Gain on disposal of assets | - | - | -6 | - | -6 | ||||||
OPERATING INCOME | 1,884 | 2,207 | 2,520 | -38 | 6,573 | ||||||
OTHER EXPENSES: | |||||||||||
Interest expense | -142 | -112 | -143 | -74 | -471 | ||||||
Gain (loss) on foreign currency exchange rate | 23 | -20 | -24 | -29 | -50 | ||||||
Other, net | - | 1 | - | -1 | - | ||||||
Total Other Expense | -119 | -131 | -167 | -104 | -521 | ||||||
INCOME (LOSS) BEFORE INCOME TAX | 1,765 | 2,076 | 2,353 | -142 | 6,052 | ||||||
Income tax expense (benefit) | 369 | 517 | 516 | -378 | 1,024 | ||||||
NET INCOME | $ | 1,396 | $ | 1,559 | $ | 1,837 | $ | 236 | $ | 5,028 | |
Plus: 6% Convertible Debenture Interest Expense | 22 | - | - | - | 22 | ||||||
Diluted Income Available to Common Shareholders | $ | 1,418 | $ | 1,559 | $ | 1,837 | $ | 236 | $ | 5,050 | |
Income per common share: | |||||||||||
Basic | $ | 0.58 | $ | 0.56 | $ | 0.62 | $ | 0.08 | $ | 1.81 | |
Diluted | $ | 0.41 | $ | 0.45 | $ | 0.53 | $ | 0.07 | $ | 1.49 | |
Weighted average common shares outstanding: | |||||||||||
Basic | 2,402 | 2,769 | 2,968 | 2,980 | $ | 2,781 | |||||
Diluted | 3,439 | 3,462 | 3,441 | 3,424 | $ | 3,394 | |||||
Calculation_of_Basic_and_Dilut1
Calculation of Basic and Diluted Earnings per Share (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Calculation of Basic and Diluted Earnings per Share (Tables) | ' | ||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||
Calculation of Basic and Diluted Earnings per Share | |||||
(in thousands, except per share amounts) | Years Ended December 31, | ||||
2013 | 2012 | ||||
Numerator: | |||||
Net Income (Loss) | $ | -1,616 | $ | 5,028 | |
Numerator for basic earnings per share- income (loss) available to common shareholders | -1,616 | 5,028 | |||
Effect of dilutive securities: | |||||
6% Convertible Debenture Interest Expense | - | 22 | |||
Numerator for diluted earnings per share - income (loss)available to common shareholders after assumed conversions | $ | -1,616 | $ | 5,050 | |
Denominator: | |||||
Denominator for basic earnings per share- weighted-average shares | 3,002 | 2,781 | |||
Effect of dilutive securities: | |||||
Employee stock options | - | 30 | |||
Warrants | - | 447 | |||
6% Convertible Debentures | - | 136 | |||
Dilutive potential common shares | - | 613 | |||
Denominator for diluted earnings per share -weighted-average shares and assumed conversions | 3,002 | 3,394 | |||
Basic earnings per common share | $ | -0.54 | $ | 1.81 | |
Diluted earnings per common share | $ | -0.54 | $ | 1.49 |
Schedule_of_Income_Taxes_Table
Schedule of Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule of Income Taxes (Tables): | ' | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||||||
Components of Income Tax Expense (Benefit) | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | Current | Deferred | Total | Current | Deferred | Total | |||||||
Federal | $ | - | $ | -518 | $ | -518 | $ | 364 | $ | 389 | $ | 753 | |
State | 7 | - | 7 | 11 | - | 11 | |||||||
Foreign | 265 | -578 | -313 | 133 | 127 | 260 | |||||||
Total Income Tax Expense | $ | 272 | $ | -1,096 | $ | -824 | $ | 508 | $ | 516 | $ | 1,024 | |
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
Significant Components of Deferred Taxes | Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Deferred Tax Assets: | |||||||||||||
Net operating loss carry-forwards - Domestic | $ | 461 | $ | - | |||||||||
Net operating loss carry-forwards - Foreign | 932 | 733 | |||||||||||
PP&E - Foreign | 10 | 10 | |||||||||||
Intercompany profit | 74 | 83 | |||||||||||
Domestic reserves | 16 | 16 | |||||||||||
Unrealized foreign currency losses - Domestic | 50 | 62 | |||||||||||
Other deferred assets | 494 | 35 | |||||||||||
Total deferred tax assets | $ | 2,037 | $ | 939 | |||||||||
Deferred Tax Liabilities: | |||||||||||||
PP&E - Domestic | 696 | 654 | |||||||||||
PP&E - Foreign | 1,407 | 1,442 | |||||||||||
Unrealized gain on derivatives | 15 | 20 | |||||||||||
Other | 3 | 3 | |||||||||||
Total deferred tax liabilities | 2,121 | 2,119 | |||||||||||
Net deferred tax liability | $ | -84 | $ | -1,180 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||
Effective Tax Rate Reconciliation | Years Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Expense (benefit) computed at statutory rate | $ | -829 | $ | 2,058 | |||||||||
Change in valuation allowance - Domestic | - | -259 | |||||||||||
Effect of items deductible for book not tax, net | |||||||||||||
Stock based compensation | 37 | 30 | |||||||||||
Other | 13 | 14 | |||||||||||
Effect of foreign tax credit | -60 | -547 | |||||||||||
Effect of foreign tax rate differential | 11 | -279 | |||||||||||
State income taxes, net of Federal benefit | 4 | 7 | |||||||||||
$ | -824 | $ | 1,024 | ||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | ' | ||||||||||||
Components of Pretax Income (Loss) | Years Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Domestic | $ | -1,643 | $ | 2,829 | |||||||||
Foreign | -797 | 3,223 | |||||||||||
Pretax income (loss) | $ | -2,440 | $ | 6,052 | |||||||||
Compensation_Related_Costs_Sha
Compensation Related Costs, Share Based Payments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Compensation Related Costs, Share Based Payments: (Tables) | ' | ||||||||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding | ' | ||||||||||
Options Outstanding at December 31, | |||||||||||
2013 | 2012 | Range of Exercise Prices | |||||||||
15,028 | 17,158 | $ 2.70 - $ 9.99 | |||||||||
83,116 | 111,410 | $ 10.00 - $ 14.99 | |||||||||
23,620 | 24,620 | $ 15.00 - $ 19.99 | |||||||||
2,000 | 12,800 | $ 20.00 - $ 24.99 | |||||||||
2,000 | 2,500 | $ 25.00 - $ 29.99 | |||||||||
5,400 | 5,400 | $ 30.00 - $ 30.55 | |||||||||
131,164 | 173,888 | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||
The following table summarizes certain information regarding stock option activity: | |||||||||||
Options | |||||||||||
Total Reserved | Outstanding | Weighted AvgExercise Price | Range ofExercise Prices | ||||||||
Balances atDecember 31, 2011 | 177,641 | 167,983 | $12.53 | $1.75 | - | $30.55 | |||||
Additional options authorized | 250,000 | ||||||||||
Granted | 21,000 | $11.03 | $16.77 | - | $18.22 | ||||||
Exercised | -15,095 | -15,095 | $8.83 | $2.90 | - | $11.05 | |||||
Balances atDecember 31, 2012 | 412,546 | 173,888 | $13.39 | $2.70 | - | $30.55 | |||||
Granted | 20,500 | $8.83 | $11.27 | - | $11.39 | ||||||
Exercised | -25,338 | -25,338 | $10.69 | $2.70 | - | $11.05 | |||||
Forfeited or expired | -37,886 | $14.63 | $11.00 | - | $29.50 | ||||||
Balances atDecember 31, 2013 | 387,208 | 131,164 | $13.24 | $2.70 | - | $30.55 | |||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||||||||
Twelve Months Ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
Risk-free interest rate | 1.28% | 1.17% | |||||||||
Expected dividend yield | 0.00% | 0.00% | |||||||||
Expected volatility | 0.9 | 0.68 | |||||||||
Expected term (in years) | 7 | 7 | |||||||||
Schedule_of_Derivative_Instrum
Schedule of Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Schedule of Derivative Instruments and Hedging Activities (Tables) | ' | ||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||
The following table summarizes the gross fair market value of all derivative instruments, which are not designated as hedging instruments and their location in our consolidated balance sheets: | |||||||
(In thousands) | |||||||
Liability Derivatives | |||||||
Derivative Instrument | Location | 31-Dec-13 | 31-Dec-12 | ||||
Foreign Currency Exchange Contracts | Accrued Expenses | $ | 14 | $ | 1 | ||
Schedule of Derivative Instruments | ' | ||||||
(In thousands) | |||||||
Location of Gain | Amount of Gain (Loss) Recognized in Operations | ||||||
Derivative | (Loss) on Derivative | Year Ended December 31, | |||||
Instrument | Instrument | 2013 | 2012 | ||||
Foreign Currency Exchange Contracts | Loss on foreign currency exchange rate | $ | -13 | $ | 74 | ||
Schedule_of_Commitments_and_Co
Schedule of Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Schedule of Commitments and Contingencies (Tables): | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
Years Ending December 31, | ||||
(In thousands) | ||||
2014 | $ | 104 | ||
2015 | 95 | |||
2016 | 95 | |||
2017 | 95 | |||
2018 | 95 | |||
Thereafter | 812 | |||
Total minimum lease payments | $ | 1,296 |
Revenues_from_sales_to_Foreign
Revenues from sales to Foreign customers (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Revenues from sales to Foreign customers (Tables) | ' | ||||
Revenues from sales to customers (Tables) | ' | ||||
Revenues from sales to customers located outside the U.S. for the years ended December 31, 2013 and 2012 are as follows: | |||||
Year Ended December 31, | |||||
(In thousands) | 2013 | 2012 | |||
Canada, Mexico & South/Central America | $ | 4,500 | $ | 5,759 | |
Pacific Rim | 5,813 | 7,073 | |||
Europe, Africa & Middle East | 10,191 | 16,628 | |||
Total Sales | $ | 20,504 | $ | 29,460 | |
Schedule_of_Sales_by_Product_T
Schedule of Sales by Product (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Schedule of Sales by Product (Tables): | ' | ||||||
Revenue from External Customers by Products and Services | ' | ||||||
Revenues from sales by product for the years ended December 31, 2013 and 2012 are as follows (in thousands): | |||||||
Product | 2013 | 2012 | |||||
HITOX | $ | 14,004 | 30% | $ | 18,453 | 33% | |
ALUPREM | 14,662 | 32% | 14,208 | 27% | |||
BARTEX / BARYPREM | 7,882 | 17% | 7,401 | 11% | |||
HALTEX / OPTILOAD | 3,427 | 8% | 3,662 | 7% | |||
TIOPREM | 1,817 | 4% | 1,799 | 3% | |||
SR | 3,527 | 8% | 10,410 | 18% | |||
OTHER | 702 | 1% | 720 | 1% | |||
Total | $ | 46,021 | 100% | $ | 56,653 | 100% | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies Textuals (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Significant Accounting Policies Textuals | ' | ' |
Cumulative translation adjustment | $1,737,000 | $2,988,000 |
Cumulative translation adjustment (TPT's functional currency is the Euro) | 2,024,000 | 1,721,000 |
Reserve for doubtful accounts | 109,000 | 148,000 |
Inventory reserve | 305,000 | 61,000 |
Idle Facility expense at Malaysian operations | 1,000,000 | 606,000 |
Share-based compensation | $109,000 | $90,000 |
Summary_of_our_longterm_debt_t
Summary of our long-term debt to financial institutions (In thousands) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of our long-term debt to financial institutions | ' | ' |
Fixed Rate term note payable to a U.S. bank, with an interest rate of 5.5% | $911 | $1,309 |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% | 351 | 363 |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% | 386 | 395 |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.05% | 80 | 143 |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.25% | 139 | 442 |
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 6.6% | 801 | 866 |
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 6.6% | 1,290 | 0 |
Total long-term debt to financial institutions | 3,958 | 3,518 |
Less current maturities | 1,040 | 1,202 |
Total long-term debt - financial institutions, net of current maturities | $2,918 | $2,316 |
US_Credit_Agreement_and_Term_L
U.S. Credit Agreement and Term Loan (Details) (USD $) | Jan. 17, 2014 | Dec. 31, 2013 | Dec. 31, 2010 |
U.S. Credit Agreement and Term Loan | ' | ' | ' |
Company entered into a credit agreement for a term loan in millions | ' | ' | $2 |
Company entered into a credit agreement for line of credit in millions | ' | ' | 2 |
The term loan bears interest at a fixed rate per annum | ' | ' | 5.50% |
The monthly principal and interest payment | ' | ' | 38,620 |
The balance on the term loan | ' | 911,000 | ' |
Company entered into the third amendment with the Lender and is required to pledge a certificate of deposit in the amount as additional security against the outstanding loan balance | $350,000 | ' | ' |
The_following_is_a_summary_of_
The following is a summary of the future maturities of long-term debt to financial institutions (In thousands) (Details) (USD $) | Dec. 31, 2013 |
The following is a summary of the future maturities of long-term debt to financial institutions | ' |
Future maturities of long-term debt to financial institutions in 2014 | $1,040 |
Future maturities of long-term debt to financial institutions in 2015 | 946 |
Future maturities of long-term debt to financial institutions in 2016 | 527 |
Future maturities of long-term debt to financial institutions in 2017 | 487 |
Future maturities of long-term debt to financial institutions in 2018 | 486 |
Future maturities of long-term debt to financial institutions thereafter | 472 |
Total Future maturities of long-term debt to financial institutions | $3,958 |
Summary_of_the_valuation_of_fi
Summary of the valuation of financial instruments recorded on a fair value basis (In thousands) (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Measurements Total | ' | ' |
Liability | ' | ' |
Currency forward contracts | -14 | -1 |
Quoted Prices in Active Markets (Level 1) | ' | ' |
Liability | ' | ' |
Currency forward contracts | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Liability | ' | ' |
Currency forward contracts | -14 | -1 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Liability | ' | ' |
Currency forward contracts | 0 | 0 |
The_carrying_amounts_and_estim
The carrying amounts and estimated fair values of the Company's long-term debt, including current maturities are summarized below (In thousands) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Long-term debt, including current portion | ' | ' |
Carrying Value | $3,958 | $3,518 |
Fair Value | $3,697 | $3,455 |
Minimum_future_lease_payments_
Minimum future lease payments under these leases (In thousands) (Details) (USD $) | Dec. 31, 2013 |
Minimum future lease payments under these leases | ' |
Total minimum lease payments | $12 |
Less: Amount representing executory costs | 0 |
Net minimum lease payments | 12 |
Less: Amount representing interest | 0 |
Present value of net minimum lease payments | 12 |
Less: Current maturities of capital lease obligations | -12 |
Long-term capital lease obligations, net of current maturities | $0 |
Capital_Leases_transactions_De
Capital Leases transactions (Details) (USD $) | Feb. 05, 2012 | Sep. 04, 2011 | Aug. 01, 2010 |
Capital Leases transactions | ' | ' | ' |
Company entered into a financial lease agreement with Dell Financial Services and the cost of the equipment under the capital lease | ' | ' | $22,000 |
Accumulated amortization of the leased equipment was approximately | ' | ' | 22,000 |
The capital lease with Dell Financial Services is in the amount including interest | ' | ' | 20,698 |
Interest of the capital lease with Dell Financial Services | ' | ' | 1,605 |
Amortized period of capital leases with Dell Financial Services in months | ' | ' | 36 |
Company entered into a financial lease agreement with Diependael Leasing and the cost of the equipment under the capital lease in Euros | ' | 38,360 | ' |
Company entered into a financial lease agreement with Diependael Leasing and the cost of the equipment under the capital lease in US Dollars | ' | 52,700 | ' |
Accumulated amortization of the leased with Diependael Leasing equipment was approximately in Euros | ' | 30,000 | ' |
The capital lease with Diependael Leasing is in the amount including interest in Euros | ' | 41,256 | ' |
Interest of the capital lease with Diependael Leasing in Euros | ' | 2,896 | ' |
Accumulated amortization of the leased with Diependael Leasing equipment was approximately in US Dollars | ' | 41,000 | ' |
The capital lease with Diependael Leasing is in the amount including interest in US Dollars | ' | 56,700 | ' |
Interest of the capital lease with Diependael Leasing in US Dollars | ' | 4,000 | ' |
The lease term is 36 months with equal monthly installments in Euros | ' | 1,146 | ' |
The lease term is 36 months with equal monthly installments in US Dollars | ' | 1,575 | ' |
The net present value of the lease with Diependael Leasing in Euros | ' | 9,168 | ' |
The net present value of the lease with Diependael Leasing in US Dollars | ' | 12,000 | ' |
Company entered into a financial lease agreement with Sympatec GmbH and the cost of the equipment under the capital lease in Euros | 52,000 | ' | ' |
Company entered into a financial lease agreement with Sympatec GmbH and the cost of the equipment under the capital lease in US Dollars | 71,500 | ' | ' |
Accumulated amortization of the leased with Sympatec GmbH equipment was approximately in Euros | 14,300 | ' | ' |
The capital lease with Sympatec GmbH is in the amount including interest in Euros | 56,988 | ' | ' |
Interest of the capital lease with Sympatec GmbH in Euros | 4,860 | ' | ' |
The lease term is 12 months with equal monthly installments in Euros | 4,749 | ' | ' |
Accumulated amortization of the leased with Sympatec GmbH equipment was approximately in US Dollars | 19,600 | ' | ' |
The capital lease with Sympatec GmbH is in the amount including interest in US Dollars | 77,300 | ' | ' |
Interest of the capital lease with Sympatec GmbH in US Dollars | 6,600 | ' | ' |
The lease term is 12 months with equal monthly installments in US Dollars | $6,271 | ' | ' |
Summary_of_inventories_is_as_f
Summary of inventories is as follows (In thousands) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of inventories is as follows | ' | ' |
Raw materials | $12,852 | $14,002 |
Work in progress | 1,866 | 2,848 |
Finished goods | 5,306 | 5,238 |
Supplies | 1,034 | 868 |
Total Inventories | 21,058 | 22,956 |
Inventory reserve | -305 | -61 |
Net Inventories | $20,753 | $22,895 |
Major_classifications_and_expe
Major classifications and expected lives of property, plant and equipment are summarized below (In thousands) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Major classifications and expected lives of property, plant and equipment are summarized below | ' | ' |
Land and office buildings | $3,472 | $3,354 |
Production facilities | 10,121 | 8,552 |
Machinery and equipment | 36,944 | 32,869 |
Furniture and fixtures | 1,534 | 1,515 |
Property, plant and equipment gross | 52,071 | 46,290 |
Less accumulated depreciation | -28,956 | -26,508 |
Property, plant and equipment, net | 23,115 | 19,782 |
Construction in progress | 684 | 3,151 |
Total property, plant and equipment | $23,799 | $22,933 |
Land and office buildings expected life | '39 years | ' |
Production facilities expected life | '10 - 20 years | ' |
Machinery and equipment expected life | '3 - 15 years | ' |
Furniture and fixtures expected life | '3 - 20 years | ' |
Property_Plant_and_Equipment_D
Property, Plant and Equipment - Depreciation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Depreciation calculated on the property, plant and equipment | ' | ' |
Depreciation calculated on the property, plant and equipment for the period | $3,157,000 | $2,470,000 |
Calculation_of_Basic_and_Dilut2
Calculation of Basic and Diluted Earnings per Share (in thousands, except per share amounts) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Numerator: | ' | ' |
Net Income (Loss) | ($1,616) | $5,028 |
Numerator for basic earnings per share - income (loss) available to common shareholders | -1,616 | 5,028 |
Effect of dilutive securities: | ' | ' |
6% Convertible Debenture Interest Expense | $0 | $22 |
Numerator for diluted earnings per share - income (loss) available to common shareholders after assumed conversions | ($1,616) | $5,050 |
Denominator: | ' | ' |
Denominator for basic earnings per share - weighted-average shares | 3,002 | 2,781 |
Effect of dilutive securities | ' | ' |
Employee stock options | 0 | 30 |
Warrants | 0 | 447 |
6% Convertible Debentures | 0 | 136 |
Dilutive potential common shares | 0 | 613 |
Denominator for diluted earnings per share - weighted-average shares and assumed conversions | 3,002 | 3,394 |
Basic earnings per common share | ($0.54) | $1.81 |
Diluted earnings per common share | ($0.54) | $1.49 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings per Share Parentheticals (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Computation of Basic and Diluted Earnings per Share Parentheticals | ' | ' |
Warrants were excluded from the calculation of diluted earning per share | 528,304 | 0 |
Employee stock options excluded from calculation of diluted earnings per share | 131,164 | 77,820 |
BlackScholes_optionpricing_mod
Black-Scholes option-pricing model with the following weighted average assumptions (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Black-Scholes option-pricing model with the following weighted average assumptions | ' | ' |
Risk-free interest rate | 1.28% | 1.17% |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 0.9 | 0.68 |
Expected term (in years) | 7 | 7 |
Percentage_of_sales_revenue_fr
Percentage of sales revenue from segments and products (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Percentage of sales revenue from segments and products | ' | ' |
Percentage of its total third party sales revenue from a single customer in U.S. operations | 30.00% | 29.00% |
Percentage of its total third party sales revenue from one customer in European operations | 18.00% | 10.00% |
Percentage of its total third party sales revenue from another customer in European operations | 13.00% | ' |
The European operations received approximately a percentage of its total third party sales revenue from two customers | 31.00% | ' |
Percentage of its total third party sales revenue from a single customer in the Asian operations | 42.00% | 57.00% |
One customer represented approximately Percentage of the 2013 total consolidated sales. | 20.00% | ' |
One customer represented approximately Percentage of the 2012 total consolidated sales. | ' | 17.00% |
Another customer represented approximately Percentage of the 2012 total consolidated sales. | ' | 16.00% |
The Company's principal product, HITOX, accounted for approximately | 30.00% | 33.00% |
Sales to customers located in the U.S. represented approximately | 56.00% | 48.00% |
Sales to customers in Germany represented approximately | 20.00% | ' |
Sales to customers in United Kingdom represented approximately | ' | 33.00% |
Summary_of_the_Companys_manufa
Summary of the Company's manufacturing operations by geographic segment is presented below (In thousands) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Interest expense | ($389) | ($471) |
United States (Corpus Christi) | ' | ' |
Customer sales | 30,019 | 33,263 |
Customer sales | 30,019 | 33,263 |
Intercompany sales | 110 | 105 |
Total Net Sales | 30,129 | 33,368 |
Share based compensation | 109 | 90 |
Depreciation | 936 | 751 |
Interest expense | 77 | 170 |
Income tax expense | ' | 753 |
Location profit | ' | 2,076 |
Capital expenditures | 703 | 1,928 |
Location long-lived assets | 5,805 | 6,051 |
Location assets | 17,956 | 20,762 |
Customer-sales | 30,019 | ' |
Inter-company sales | 110 | ' |
Total Net-Sales | 30,129 | ' |
Share-based compensation | 109 | ' |
Depreciation expense | 936 | ' |
Interest-expense | 77 | ' |
Income tax (benefit) expense | -511 | ' |
Location profit (loss) | -1,132 | ' |
Capital-expenditures | 703 | ' |
Location longlived assets | 5,805 | ' |
Location-assets | 17,956 | ' |
Netherlands (TPT) | ' | ' |
Customer sales | 8,255 | 7,578 |
Customer sales | 8,255 | 7,578 |
Intercompany sales | 6,627 | 6,179 |
Total Net Sales | 14,882 | 13,757 |
Depreciation | 1,197 | 871 |
Interest expense | 97 | 126 |
Income tax expense | ' | 133 |
Location profit | ' | 445 |
Capital expenditures | 1,192 | 1,581 |
Location long-lived assets | 8,965 | 8,653 |
Location assets | 10,995 | 10,652 |
Customer-sales | 8,255 | ' |
Inter-company sales | 6,627 | ' |
Total Net-Sales | 14,882 | ' |
Depreciation expense | 1,197 | ' |
Interest-expense | 97 | ' |
Income tax (benefit) expense | 265 | ' |
Location profit (loss) | 826 | ' |
Capital-expenditures | 1,192 | ' |
Location longlived assets | 8,965 | ' |
Location-assets | 10,995 | ' |
Malaysia (TMM) | ' | ' |
Customer sales | 7,747 | 15,812 |
Customer sales | 7,747 | 15,812 |
Intercompany sales | 7,638 | 9,064 |
Total Net Sales | 15,385 | 24,876 |
Depreciation | 1,024 | 848 |
Interest expense | 215 | 175 |
Income tax expense | ' | 204 |
Location profit | ' | 2,738 |
Capital expenditures | 2,335 | 1,372 |
Location long-lived assets | 9,029 | 8,229 |
Location assets | 23,666 | 23,032 |
Customer-sales | 7,747 | ' |
Inter-company sales | 7,638 | ' |
Total Net-Sales | 15,385 | ' |
Depreciation expense | 1,024 | ' |
Interest-expense | 215 | ' |
Income tax (benefit) expense | -587 | ' |
Location profit (loss) | -1,347 | ' |
Capital-expenditures | 2,335 | ' |
Location longlived assets | 9,029 | ' |
Location-assets | 23,666 | ' |
Inter-Company Eliminations | ' | ' |
Intercompany sales | -14,375 | -15,348 |
Total Net Sales | -14,375 | -15,348 |
Income tax expense | ' | -66 |
Location profit | ' | -231 |
Inter-company sales | -14,375 | ' |
Total Net-Sales | -14,375 | ' |
Income tax (benefit) expense | 9 | ' |
Location profit (loss) | 37 | ' |
Consolidated | ' | ' |
Customer sales | 46,021 | 56,653 |
Customer sales | 46,021 | 56,653 |
Total Net Sales | 46,021 | 56,653 |
Share based compensation | 109 | 90 |
Depreciation | 3,157 | 2,470 |
Interest expense | 389 | 471 |
Income tax expense | ' | 1,024 |
Location profit | ' | 5,028 |
Capital expenditures | 4,230 | 4,881 |
Location long-lived assets | 23,799 | 22,933 |
Location assets | 52,617 | 54,446 |
Customer-sales | 46,021 | ' |
Total Net-Sales | 46,021 | ' |
Share-based compensation | 109 | ' |
Depreciation expense | 3,157 | ' |
Interest-expense | 389 | ' |
Income tax (benefit) expense | -824 | ' |
Location profit (loss) | -1,616 | ' |
Capital-expenditures | 4,230 | ' |
Location longlived assets | 23,799 | ' |
Location-assets | $52,617 | ' |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (In thousands, except per share amounts) Quarterly Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements of Operations Quarterly Data (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NET SALES | $12,992 | $10,870 | $10,732 | $11,427 | $9,823 | $19,914 | $14,108 | $12,808 | $46,021 | $56,653 |
Cost of sales | 14,324 | 9,289 | 9,020 | 9,933 | 8,546 | 16,068 | 10,441 | 9,618 | 42,566 | 44,673 |
GROSS MARGIN | -1,332 | 1,581 | 1,712 | 1,494 | 1,277 | 3,846 | 3,667 | 3,190 | 3,455 | 11,980 |
Technical services and research and development | 193 | 135 | 171 | 153 | 111 | 90 | 101 | 82 | 652 | 384 |
Selling, general and administrative expenses | 1,078 | 1,119 | 1,247 | 1,278 | 1,204 | 1,242 | 1,359 | 1,224 | 4,722 | 5,029 |
Loss on disposal of assets | ' | ' | ' | 10 | ' | -6 | ' | ' | 10 | -6 |
OPERATING INCOME (LOSS) | -2,603 | 327 | 294 | 53 | -38 | 2,520 | 2,207 | 1,884 | -1,929 | 6,573 |
Interest expense | -389 | -103 | -99 | -84 | -471 | -143 | -112 | -142 | -389 | -471 |
(Loss) gain on foreign currency exchange rate | 11 | -84 | 20 | -87 | -29 | -24 | -20 | 23 | -140 | -50 |
Other, net | ' | 6 | ' | 12 | -1 | ' | 1 | ' | 18 | ' |
Total Other Expense | ' | ' | ' | ' | ' | ' | ' | ' | -511 | -521 |
INCOME (LOSS) BEFORE INCOME TAX | -2,695 | 146 | 215 | -106 | -142 | 2,353 | 2,076 | 1,765 | -2,440 | 6,052 |
Income tax (benefit) expense | -891 | 33 | 65 | -31 | -378 | 516 | 517 | 369 | -824 | 1,024 |
NET INCOME (LOSS) | -1,804 | 113 | 150 | -75 | 236 | 1,837 | 1,559 | 1,396 | -1,616 | 5,028 |
Plus: 6% Convertible Debenture Interest Expense | ' | ' | ' | ' | ' | ' | ' | 22 | ' | 22 |
Diluted Income Available to Common Shareholders | ' | ' | ' | ' | 236 | 1,837 | 1,559 | 1,418 | ' | 5,050 |
Basic | -0.6 | 0.04 | 0.05 | -0.03 | 0.08 | 0.62 | 0.56 | 0.58 | -0.54 | 1.81 |
Diluted | ($0.60) | $0.03 | $0.04 | ($0.03) | $0.07 | $0.53 | $0.45 | $0.41 | ($0.54) | $1.49 |
Basic | ' | ' | ' | ' | 2,980 | 2,968 | 2,769 | 2,402 | ' | 2,781 |
Diluted | ' | ' | ' | ' | 3,424 | 3,441 | 3,462 | 3,439 | ' | 3,394 |
Components_of_Income_Tax_Expen
Components of Income Tax Expense (Benefit) (Details) (USD $) | Current Income Tax Expense (Benefit) | Deferred Income Tax Expense (Benefit) | Total Income Tax Expense (Benefit) |
Balance Income Tax expense at Dec. 31, 2011 | $0 | ' | ' |
Federal Income Tax Expense (Benefit) | 364 | 389 | 753 |
State Income Tax Expense (Benefit) | 11 | ' | 11 |
Foreign Income Tax Expense (Benefit) | 133 | 127 | 260 |
Total Income-Tax Expense (Benefit) | 508 | 516 | 1,024 |
Income Tax expense outstanding at Dec. 31, 2012 | 0 | ' | ' |
Balance Income Tax expense at Dec. 31, 2012 | ' | ' | ' |
Federal Income Tax Expense | ' | -518 | -518 |
State Income Tax Expense | 7 | ' | 7 |
Foreign Income Tax Expense | 265 | -578 | -313 |
Total Income-Tax Expense | 272 | -1,096 | -824 |
Income Tax expense components at Dec. 31, 2013 | $0 | ' | ' |
Effective_Tax_Rate_Reconciliat
Effective Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Tax Rate Reconciliation | ' | ' |
Expense (benefit) computed at statutory rate | ($829) | $2,058 |
Change in valuation allowance - Domestic | ' | -259 |
Stock based compensation deductible | 37 | 30 |
Other items deductible | 13 | 14 |
Effect of foreign tax credit | -60 | -547 |
Effect of foreign tax rate differential | 11 | -279 |
State income taxes, net of Federal benefit | 4 | 7 |
Net Effect of items deductible for book not tax | ($824) | $1,024 |
Significant_Components_of_Defe
Significant Components of Deferred Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Tax Assets: | ' | ' |
Net operating loss carry-forwards - Domestic | $461 | ' |
Net operating loss carry-forwards - Foreign | 932 | 733 |
PP&E - Foreign deferred | 10 | 10 |
Intercompany profit deferred | 74 | 83 |
Domestic reserves deferred | 16 | 16 |
Unrealized foreign currency losses - Domestic | 50 | 62 |
Other deferred assets | 494 | 35 |
Total deferred tax assets | 2,037 | 939 |
PP&E - Domestic | 696 | 654 |
PP&E - Foreign | 1,407 | 1,442 |
Unrealized gain on derivatives deferred | 15 | 20 |
Other deferred liabilities | 3 | 3 |
Total deferred tax liabilities | 2,121 | 2,119 |
Net deferred tax liability | ($84) | ($1,180) |
Income_Taxes_Textuals_Details
Income Taxes Textuals (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating loss ("NOL") carryforwards | ' | ' |
Net operating loss carryforwards - U.S. Operations | $461,000 | ' |
Federal NOL carry-forwards of approximately | 1,355,000 | 0 |
Asian operations, TMM Had Operating loss ("NOL") carryforwards | 3,728,000 | 2,934,000 |
Cumulative undistributed earnings | $6,000,000 | ' |
The_following_table_summarizes
The following table summarizes certain information regarding stock option activity: (Details) | Total Reserved options | Outstanding Options | Weighted Avg Exercise Price | Minimum Range of Exercise Price | Maximum Range of Exercise Price |
Option Balances at at Dec. 31, 2011 | 177,641 | 167,983 | 12.53 | 1.75 | 30.55 |
Additional options authorized | 250,000 | ' | ' | ' | ' |
Options Granted | 0 | 21,000 | 11.03 | 16.77 | 18.22 |
Options Exercised | -15,095 | -15,095 | 8.83 | 2.9 | 11.05 |
Option Balances as at at Dec. 31, 2012 | 412,546 | 173,888 | 13.39 | 2.7 | 30.55 |
Option Balances at at Dec. 31, 2012 | ' | ' | ' | ' | ' |
Options Granted | 0 | 20,500 | 8.83 | 11.27 | 11.39 |
Options Exercised | -25,338 | -25,338 | 10.69 | 2.7 | 11.05 |
Options Forfeited or expired | 0 | -37,886 | 14.63 | 11 | 29.5 |
Option Balances at Dec. 31, 2013 | 387,208 | 131,164 | 13.24 | 2.7 | 30.55 |
Exercise_prices_on_options_out
Exercise prices on options outstanding at (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Range of Exercise Prices and options outstanding | ' | ' |
Range of Exercise Prices $2.70 - $9.99 | 15,028 | 17,158 |
Range of Exercise Prices $10.00 - $14.99 | 83,116 | 111,410 |
Range of Exercise Prices $15.00 - $19.99 | 23,620 | 24,620 |
Range of Exercise Prices $20.00 - $24.99 | 2,000 | 12,800 |
Range of Exercise Prices $25.00 - $29.99 | 2,000 | 2,500 |
Range of Exercise Prices $30.00 - $30.55 | 5,400 | 5,400 |
Total Options oustanding | 131,164 | 173,888 |
Stock_Options_Textuals_Details
Stock Options Textuals (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options Textuals | ' | ' |
Stock-based employee compensation expense | $109,000 | $90,000 |
Compensation expense related to non-vested awards | $366,000 | ' |
Expense expected to be recognized over a weighted average period in years | 3.16 | ' |
Number of shares of common stock underlying the options exercisable | 87,664 | 143,388 |
The weighted-average remaining contractual life of those options is | 5.93 | 5.93 |
Minimum Exercise prices on options outstanding | $2.70 | ' |
Maximum Exercise prices on options outstanding | $30.55 | ' |
Options outstanding and available for future issuance under the plan | 131,164 | 112,792 |
Options granted to purchase shares of common stock | 20,500 | 21,000 |
The weighted average fair value per option at the date of grant for options granted | $11.37 | $11.03 |
Summary_of_the_gross_fair_mark
Summary of the gross fair market value of all derivative instruments recorded in consolidated balance sheets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of the gross fair market value of all derivative instruments recorded in consolidated balance sheets | ' | ' |
Foreign Currency Forward Contracts recorded as as a current liability on the consolidated balance sheets | $14,000 | $1,000 |
Summary_of_the_impact_of_the_C
Summary of the impact of the Company's derivatives on the consolidated financial statements of operations (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of the impact of the Company's derivatives on the consolidated financial statements of operations | ' | ' |
Foreign Currency Forward Contracts recorded as Loss on foreign currency exchange rate | $13,000 | ' |
Foreign Currency Forward Contracts recorded as gain on foreign currency exchange rate | ' | $74,000 |
Minimum_future_rental_payments
Minimum future rental payments and other immaterial leases (In thousands) (Details) (USD $) | Dec. 31, 2013 |
Minimum future rental payments and other immaterial leases | ' |
Minimum future rental payments and other immaterial leases 2014 | $104 |
Minimum future rental payments and other immaterial leases 2015 | 95 |
Minimum future rental payments and other immaterial leases 2016 | 95 |
Minimum future rental payments and other immaterial leases 2017 | 95 |
Minimum future rental payments and other immaterial leases 2018 | 95 |
Minimum future rental payments and other immaterial leases Thereafter | 812 |
Total minimum lease payments | $1,296 |
Profit_Sharing_Plan_Details
Profit Sharing Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation arrangement with employees, requisite service period in months | 6 | ' |
Percentage of company matches contributions | 4.00% | ' |
Company contributions | $69,000 | $66,000 |
Significant_Customers_Details
Significant Customers (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Customers {2} | ' | ' |
one customer accounted for our total consolidated sales revenue to the extent of | 20.00% | 17.00% |
Another customer accounted for our total consolidated sales to the extent of | ' | 16.00% |
Revenues_from_sales_to_custome
Revenues from sales to customers located outside the U.S. (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues from sales to customers located outside the U.S. | ' | ' |
Canada, Mexico & South/Central America | $4,500 | $5,759 |
Pacific Rim | 5,813 | 7,073 |
Europe, Africa & Middle East | 10,191 | 16,628 |
Total Sales | $20,504 | $29,460 |
Percentage of foreign sales by customers from Germany | 20.00% | 20.00% |
Percentage of foreign sales by customers from U.K. | 33.00% | 33.00% |
Revenues_from_sales_by_product
Revenues from sales by product for the years ended December 31, 2013 and 2012 are as follows (in thousands): (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues from sales productwise | ' | ' |
HITOX | $14,004 | $18,453 |
ALUPREM | 14,662 | 14,208 |
BARTEX / BARYPREM | 7,882 | 7,401 |
HALTEX / OPTILOAD | 3,427 | 3,662 |
TIOPREM | 1,817 | 1,799 |
SR | 3,527 | 10,410 |
OTHER | 702 | 720 |
Total | $46,021 | $56,653 |
HITOX percentage to sales revenue | 30.00% | 33.00% |
ALUPREM percentage to sales revenue | 32.00% | 27.00% |
BARTEX / BARYPREM percentage to sales revenue | 17.00% | 11.00% |
HALTEX / OPTILOAD percentage to sales revenue | 8.00% | 7.00% |
TIOPREM percentage to sales revenue | 4.00% | 3.00% |
SR percentage to sales revenue | 8.00% | 18.00% |
OTHER percentage to sales revenue | 1.00% | 1.00% |
Total percentage to sales revenue | 100.00% | 100.00% |