Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 2-May-14 | |
Document and Entity Information: | ' | ' |
Entity Registrant Name | 'TOR MINERALS INTERNATIONAL INC | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000842295 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 3,014,022 |
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 | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited)(In thousands, except per share amounts) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues: | ' | ' |
NET SALES | $13,132 | $11,427 |
Cost of sales | 10,980 | 9,933 |
GROSS MARGIN | 2,152 | 1,494 |
Technical services and research and development | 46 | 153 |
Selling, general and administrative expenses | 1,113 | 1,278 |
(Gain) loss on disposal of assets | 0 | 10 |
OPERATING INCOME | 993 | 53 |
OTHER INCOME (EXPENSE): | ' | ' |
Interest expense,NET | -95 | -84 |
Loss on foreign currency exchange rate | -4 | -87 |
Other, net | 5 | 12 |
Total Other Expense | -94 | -159 |
INCOME (LOSS) BEFORE INCOME TAX | 899 | -106 |
Income tax (benefit) expense | 192 | -31 |
NET INCOME (LOSS) | $707 | ($75) |
Earnings per common share: | ' | ' |
Basic | $0.23 | ($0.03) |
Diluted | $0.21 | ($0.03) |
Weighted average common shares outstanding: | ' | ' |
Basic | 3,014 | 2,987 |
Diluted | 3,413 | 2,987 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss)(Unaudited) (In thousands) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Statements of Comprehensive Income (Loss): | ' | ' |
NET INCOME (LOSS) | $707 | ($75) |
Currency translation adjustment, net of tax: | ' | ' |
Net foreign currency translation adjustment gains (losses) | 85 | -409 |
Other comprehensive income (loss), net of tax | 85 | -409 |
COMPREHENSIVE INCOME (LOSS) | $792 | ($484) |
Consolidated_Balance_Sheets_In
Consolidated Balance Sheets (In thousands, except per share amounts) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $2,581 | $2,920 |
Trade accounts receivable, net | 5,880 | 4,526 |
Inventories, net | 20,403 | 20,753 |
Other current assets | 1,106 | 596 |
Total current assets | 29,970 | 28,795 |
PROPERTY, PLANT AND EQUIPMENT, net | 23,450 | 23,799 |
OTHER ASSETS | 23 | 23 |
Total Assets | 53,443 | 52,617 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 4,553 | 3,279 |
Accrued expenses | 1,505 | 1,397 |
Notes payable under lines of credit | 1,429 | 1,477 |
Export credit refinancing facility | 2,110 | 3,866 |
Current deferred tax liability | 17 | 66 |
Current maturities - capital leases | 8 | 12 |
Current maturities of long-term debt - financial institutions | 956 | 1,040 |
Total current liabilities | 10,578 | 11,137 |
LONG-TERM DEBT - FINANCIAL INSTITUTIONS | 2,944 | 2,918 |
DEFERRED TAX LIABILITY | 551 | 18 |
Total liabilities | 14,073 | 14,073 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
SHAREHOLDERS' EQUITY: | ' | ' |
Common stock $1.25 par value: authorized, 6,000 shares; 3,014 shares issued and outstanding at March 31, 2014 and 3012 shares issued and outstanding at December 31, 2013 | 3,767 | 3,765 |
Additional paid-in capital | 29,397 | 29,365 |
Retained earnings | 2,360 | 1,653 |
Cumulative translation adjustment | 3,846 | 3,761 |
Total shareholders' equity | 39,370 | 38,544 |
Total Liabilities and Shareholders' Equity | $53,443 | $52,617 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (In thousands, except per share amounts) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Parentheticals | ' | ' |
Common Stock, par value | $1.25 | $1.25 |
Common Stock, shares authorized | 6,000 | 6,000 |
Common Stock, shares issued | 3,014 | 3,012 |
Common Stock, shares outstanding | 3,014 | 3,012 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (In thousands, except per share amounts) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash Flows Operating Activities | ' | ' |
Net Income (Loss) | $707 | ($75) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation | 847 | 741 |
loss on disposal of assets | 0 | 10 |
Share-based compensation | 23 | 16 |
Deferred income tax expense (benefit) | 483 | -145 |
Change in inventory reserve | 0 | -12 |
Provision for bad debts | -7 | 0 |
Changes in working capital: | ' | ' |
Trade accounts receivables | -1,346 | -1,390 |
Inventories | 403 | -266 |
Other current assets | -509 | 392 |
Accounts payable and accrued expenses | 1,373 | -1,226 |
Net cash provided by operating activities | 1,974 | -1,955 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Additions to property, plant and equipment | -449 | -1,224 |
Proceeds from sales of property, plant and equipment | 0 | 2 |
Net cash used in investing activities | -449 | -1,222 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net payments on lines of credit | -52 | 2,095 |
Net proceeds (payments) from export credit refinancing facility | -1,771 | 557 |
Payments on capital lease | -5 | -18 |
Proceeds from long-term bank debt | 236 | 276 |
Payments on long-term bank debt | -304 | -200 |
Proceeds from the issuance of common stock,and exercise of common stock options | 11 | 0 |
Net cash provided by (used in) provided by financing activities | -1,885 | 2,710 |
Effect of foreign currency exchange rate fluctuations on cash and cash equivalents | 21 | -74 |
Net increase (decrease) in cash and cash equivalents | -339 | -541 |
Cash and cash equivalents at beginning of year | 2,920 | 2,799 |
Cash and cash equivalents at end of year | 2,581 | 2,258 |
Supplemental cash flow disclosures: | ' | ' |
Interest paid | 95 | 84 |
Income taxes paid | $37 | $240 |
Accounting_Policies
Accounting Policies | 3 Months Ended | |
Mar. 31, 2014 | ||
Accounting Policies | ' | |
Accounting Policies | ' | |
Note 1. | Accounting Policies | |
Basis of Presentation and Use of Estimates | ||
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The interim condensed consolidated financial statements include the consolidated accounts of TOR Minerals International, Inc. (“TOR”, “we”, “us”, “our” or the “Company”) and its wholly-owned subsidiaries, TOR Minerals Malaysia, Sdn. Bhd. (“TMM”) and TOR Processing and Trade, BV (“TPT”) with all significant intercompany transactions eliminated. In our opinion, all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods presented have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2013, in our Annual Report on Form 10-K filed with the SEC on March 10, 2014. Operating results for the three-month period ended March 31, 2014, are not necessarily indicative of the results for the year ending December 31, 2014. | ||
Income Taxes | ||
The Company records income taxes using the liability method. Under this method, deferred 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. | ||
Income taxes consisted of federal and state income tax expense of approximately $47,000 and $2,000, respectively, and foreign tax expense of approximately $143,000 for the three month period ended March 31, 2014, compared to federal and state income tax expense of approximately $40,000 and $2,000, respectively, and foreign tax benefit of approximately $73,000 for the same three month period in 2013. Taxes are based on an estimated annualized consolidated effective rate of 21.4% for the year ended December 31, 2014. | ||
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 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, 2008. | ||
As of January 1, 2014, we did not have any unrecognized tax benefits and there was no change during the three month period ended March 31, 2014. In addition, we did not recognize any interest and penalties in our condensed consolidated financial statements during the three month period ended March 31, 2014. 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 |
Debt_and_Notes_Payable
Debt and Notes Payable | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Debt and Notes Payable | ' | ||||
Debt and Notes Payable | ' | ||||
Note 2. | Debt and Notes Payable | ||||
Long-term Debt – Financial Institutions | |||||
Following is a summary of our long-term debt to financial institutions as of March 31, 2014 and December 31, 2013, in thousands: | |||||
March 31, | |||||
2014 | December 31, | ||||
(Unaudited) | 2013 | ||||
Fixed Rate term note payable to a U.S. bank, with an interest rate of 5.5% at March 31, 2014, due January 1, 2016, secured by real estate, leasehold improvements, property, plant and equipment, inventory and accounts receivable of our U.S. operation. | $ | 806 | $ | 911 | |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at March 31, 2014, due July 1, 2029, secured by TPT's land and office building purchased July 2004. (?251) | 345 | 351 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at March 31, 2014, due January 31, 2030, secured by TPT's land and building purchased January 2005. (?276) | 380 | 386 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.05% at March 31, 2014, due July 31, 2015, secured by TPT's assets. (?46) | 63 | 80 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.25% at March 31, 2014, due July 5, 2014, secured by TPT's assets. (?43) | 59 | 139 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 5.2% at March 31, 2014, due March 1, 2015, secured by TMM's property, plant and equipment. (RM 2,333) | 715 | 801 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 5.2% at March 31, 2014, due October 25, 2018, secured by TMM's property, plant and equipment. (RM 5,000) | 1,532 | 1,290 | |||
Total | 3,900 | 3,958 | |||
Less current maturities | 956 | 1,040 | |||
Total long-term debt - financial institutions | $ | 2,944 | $ | 2,918 | |
Short-term Debt | |||||
U.S. Operations | |||||
On December 31, 2010, the Company entered into a credit agreement, as amended, (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 defined borrowing base, which is based on the Company’s eligible accounts receivable and inventory. 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 March 31, 2014, no funds were outstanding on the Line. | |||||
On January 14, 2014, the Company entered into the third amendment (the "Amendment") with the Lender. Under the terms of the amendment, the Company is required ratio of cash flow to debt service of 1.0 to 1.0 for the four month period ending April 30, 2014, six month period ending June 30, 2014, nine month period ending September 30, 2014, and twelve month period ending December 31, 2014. Thereafter, the required ratio of cash flow to debt service shall be 1.25 to 1.0 measured on a rolling four quarter basis as originally detailed in the loan agreement. Therefore, compliance was not evaluated at the end of the quarter ended March 31, 2014. | |||||
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 3.531%), is secured by TPT’s accounts receivable and inventory. At March 31, 2014, TPT had utilized ?633,000 ($872,000) 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, our subsidiary, TMM amended its banking facility with HSBC Bank of Malaysia Berhad (“HSBC”) to extend the maturity date from April 30, 2013 to April 30, 2014. TMM is currently negotiating an extension to the banking facility with HSBC. 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 ($153,000, $1,979,000 and $1,531,000, respectively). | |||||
On April 17, 2013, TMM amended its banking facility with RHB Bank Berhad (“RHB”) to extend the maturity date from March 5, 2013 to March 24, 2014. TMM is currently negotiating an extension to the banking facility with RHB. 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 ($306,000, $2,848,000, $367,000 and $7,657,000, respectively). At March 31, 2014, the outstanding balance on the foreign exchange contract was RM 1,818,000 ($557,000) at a current interest rate of 2.20%. | |||||
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 March 31, 2014, the outstanding balance on the ECR facilities was RM 6,889,000 ($2,110,000) at a current interest rate of 4.9%. | |||||
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 | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Fair Value Measurements | ' | ||||||||
Fair Value Measurements | ' | ||||||||
Note 3. | Fair Value Measurements | ||||||||
The following table summarizes the valuation of our financial instruments recorded on a fair value basis as of March 31, 2014 and December 31, 2013, in thousands. The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at March 31, 2014 or 2013. | |||||||||
Fair Value Measurements | |||||||||
Total | Quoted Pricesin Active Markets(Level 1) | SignificantOther ObservableInputs(Level 2) | SignificantUnobservableInputs(Level 3) | ||||||
Asset | |||||||||
31-Mar-14 | |||||||||
Currency forward contracts | $ | 9 | $ | - | $ | 9 | $ | - | |
Liability | |||||||||
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 condensed consolidated income statements. 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 condensed 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, in thousands: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
CarryingValue | FairValue | CarryingValue | FairValue | ||||||
Long-term debt, including current portion | $ | 3,900 | $ | 3,673 | $ | 3,958 | $ | 3,697 | |
The carrying amounts reported in the condensed 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 | 3 Months Ended | |
Mar. 31, 2014 | ||
Capital Leases | ' | |
Capital Leases | ' | |
Note 4. | Capital Leases | |
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 ($52,852), is included in the condensed consolidated balance sheets as property, plant and equipment. Accumulated amortization of the leased equipment at March 31, 2014 was approximately ?31,966 ($44,000). The capital lease is in the amount of ?41,256 ($56,800) 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 ($1,580). The net present value of the lease at March 31, 2014 was ?5,662 ($8,000). |
Calculation_of_Basic_and_Dilut
Calculation of Basic and Diluted Earnings per Share | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Calculation of Basic and Diluted Earnings per Share: | ' | ||||
Calculation of Basic and Diluted Earnings per Share | ' | ||||
Note 5. | Calculation of Basic and Diluted Earnings per Share | ||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||
(in thousands, except per share amounts) | Three Months Ended March 31, | ||||
2014 | 2013 | ||||
Numerator: | |||||
Net Income (Loss) | $ | 707 | $ | -75 | |
Numerator for basic earnings per share - income (loss) available to common shareholders | 707 | -75 | |||
Effect of dilutive securities: | - | - | |||
Numerator for diluted earnings per share - income (loss) available to common shareholders after assumed conversions | $ | 707 | $ | -75 | |
Denominator: | |||||
Denominator for basic earnings per share - weighted-average shares | 3,014 | 2,987 | |||
Effect of dilutive securities: | |||||
Employee stock options | 5 | - | |||
Warrants | 394 | - | |||
Dilutive potential common shares | 399 | - | |||
Denominator for diluted earnings per share - weighted-average shares and assumed conversions | 3,413 | 2,987 | |||
Basic earnings per common share | $ | 0.23 | $ | -0.03 | |
Diluted earnings per common share | $ | 0.21 | $ | -0.03 | |
For the three month period ended March 31, 2014, approximately 105,000 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 antidilutive. | |||||
For the three month period ended March 31, 2013, approximately 174,000 stock options and 528,000 warrants were excluded from the calculation of diluted earnings per share as the effect would be antidilutive. | |||||
Segment_Information
Segment Information | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Segment Information | ' | ||||||||||
Segment Information | ' | ||||||||||
Note 6. | Segment Information | ||||||||||
The Company and its subsidiaries operate in the business of pigment manufacturing and related products in three geographic segments. All U.S. 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. | |||||||||||
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. | |||||||||||
A summary of the Company’s manufacturing operations by geographic segment is presented below in thousands: | |||||||||||
United States(Corpus Christi) | Europe(TPT) | Asia(TMM) | Inter-CompanyEliminations | Consolidated | |||||||
As of and for the three months ended: | |||||||||||
31-Mar-14 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 7,946 | $ | 2,715 | $ | 2,471 | $ | - | $ | 13,132 | |
Intercompany sales | 57 | 1,835 | 643 | -2,535 | - | ||||||
Total Net Sales | $ | 8,003 | $ | 4,550 | $ | 3,114 | $ | -2,535 | $ | 13,132 | |
Location income | $ | 55 | $ | 544 | $ | 44 | $ | 64 | $ | 707 | |
Location assets | $ | 18,337 | $ | 11,608 | $ | 23,498 | $ | - | $ | 53,443 | |
31-Mar-13 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 7,712 | $ | 2,478 | $ | 1,237 | $ | - | $ | 11,427 | |
Intercompany sales | 56 | 1,675 | 2,333 | -4,064 | - | ||||||
Total Net Sales | $ | 7,768 | $ | 4,153 | $ | 3,570 | $ | -4,064 | $ | 11,427 | |
Location income (loss) | $ | 47 | $ | 219 | $ | -398 | $ | 57 | $ | -75 | |
Location assets | $ | 20,690 | $ | 10,870 | $ | 23,568 | $ | - | $ | 55,128 | |
Stock_Options_and_Equity_Compe
Stock Options and Equity Compensation Plan | 3 Months Ended | |
Mar. 31, 2014 | ||
Stock Options and Equity Compensation Plan | ' | |
Stock Options and Equity Compensation Plan | ' | |
Note 7. | Stock Options and Equity Compensation Plan | |
For the three month periods ended March 31, 2014 and 2013, the Company recorded stock-based employee compensation expense of approximately $23,000 and $16,000, respectively. This compensation expense is included in the selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. | ||
No options were granted during the three month periods ended March 31, 2014 and 2013. | ||
As of March 31, 2014, there was approximately $343,000 of stock-based employee compensation expense related to non-vested awards which is expected to be recognized over a weighted average period of 2.9 years. | ||
As most options issued under the Plan are Incentive Stock Options, the Company does not normally receive significant excess tax benefits relating to the compensation expense recognized on vested options. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories: | ' | ||||||||
Inventories | ' | ||||||||
Note 8. | Inventories | ||||||||
A summary of inventories is as follows: | |||||||||
(In thousands) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Raw materials | $ | 14,020 | $ | 12,852 | |||||
Work in progress | 1,917 | 1,866 | |||||||
Finished goods | 3,720 | 5,306 | |||||||
Supplies | 1,032 | 1,034 | |||||||
Total Inventories | 20,689 | 21,058 | |||||||
Inventory reserve | -286 | -305 | |||||||
Net Inventories | $ | 20,403 | $ | 20,753 |
Derivatives_and_Other_Financia
Derivatives and Other Financial Instruments | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Derivatives and Other Financial Instruments | ' | ||||||
Derivatives and Other Financial Instruments | ' | ||||||
Note 9. | 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 Asian 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 condensed consolidated balance sheets and changes in the fair value are recognized in earnings in the period of the change. | |||||||
At March 31, 2014 and 2013, we marked these contracts to market, recording a net gain of approximately $9,000 and $21,000, respectively, as a component of our year to date net income (loss) and as a current asset on the condensed consolidated balance sheets. | |||||||
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 condensed consolidated balance sheets at March 31, 2014 and December 31, 2013, in thousands: | |||||||
Asset Derivatives | |||||||
Derivative Instrument | Location | 31-Mar-14 | 31-Dec-13 | ||||
Foreign Currency Exchange Contracts | Other Current Assets | $ | 9 | $ | - | ||
Liability Derivatives | |||||||
Derivative Instrument | Location | 31-Mar-14 | 31-Dec-13 | ||||
Foreign Currency Exchange Contracts | Accrued Expenses | $ | - | $ | 14 | ||
The following table summarizes, in thousands, the impact of the Company’s derivatives on the condensed consolidated financial statements of operations for the quarters ended March 31, 2014 and 2013: | |||||||
Location of Gain | Amount of Gain Recognized in Operations | ||||||
Derivative | on Derivative | Three Months Ended March 31, | |||||
Instrument | Instrument | 2014 | 2013 | ||||
Foreign Currency Exchange Contracts | Gain on foreign currency exchange rate | $ | 9 | $ | 21 |
Accounting_Policies_Policies
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies (Policies): | ' |
Basis of Presentation and Use of Estimates | ' |
Basis of Presentation and Use of Estimates | |
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The interim condensed consolidated financial statements include the consolidated accounts of TOR Minerals International, Inc. (“TOR”, “we”, “us”, “our” or the “Company”) and its wholly-owned subsidiaries, TOR Minerals Malaysia, Sdn. Bhd. (“TMM”) and TOR Processing and Trade, BV (“TPT”) with all significant intercompany transactions eliminated. In our opinion, all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods presented have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2013, in our Annual Report on Form 10-K filed with the SEC on March 10, 2014. Operating results for the three-month period ended March 31, 2014, are not necessarily indicative of the results for the year ending December 31, 2014. | |
Income Taxes | ' |
Income Taxes | |
The Company records income taxes using the liability method. Under this method, deferred 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. | |
Income taxes consisted of federal and state income tax expense of approximately $47,000 and $2,000, respectively, and foreign tax expense of approximately $143,000 for the three month period ended March 31, 2014, compared to federal and state income tax expense of approximately $40,000 and $2,000, respectively, and foreign tax benefit of approximately $73,000 for the same three month period in 2013. Taxes are based on an estimated annualized consolidated effective rate of 21.4% for the year ended December 31, 2014. | |
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 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, 2008. | |
As of January 1, 2014, we did not have any unrecognized tax benefits and there was no change during the three month period ended March 31, 2014. In addition, we did not recognize any interest and penalties in our condensed consolidated financial statements during the three month period ended March 31, 2014. 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. | |
Long_term_Debt_to_financial_in
Long term Debt to financial institutions (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Long term Debt to financial institutions (Tables) | ' | ||||
Long-term Debt - Financial Institutions | ' | ||||
Following is a summary of our long-term debt to financial institutions as of March 31, 2014 and December 31, 2013, in thousands: | |||||
March 31, | |||||
2014 | December 31, | ||||
(Unaudited) | 2013 | ||||
Fixed Rate term note payable to a U.S. bank, with an interest rate of 5.5% at March 31, 2014, due January 1, 2016, secured by real estate, leasehold improvements, property, plant and equipment, inventory and accounts receivable of our U.S. operation. | $ | 806 | $ | 911 | |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at March 31, 2014, due July 1, 2029, secured by TPT's land and office building purchased July 2004. (?251) | 345 | 351 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at March 31, 2014, due January 31, 2030, secured by TPT's land and building purchased January 2005. (?276) | 380 | 386 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.05% at March 31, 2014, due July 31, 2015, secured by TPT's assets. (?46) | 63 | 80 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.25% at March 31, 2014, due July 5, 2014, secured by TPT's assets. (?43) | 59 | 139 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 5.2% at March 31, 2014, due March 1, 2015, secured by TMM's property, plant and equipment. (RM 2,333) | 715 | 801 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 5.2% at March 31, 2014, due October 25, 2018, secured by TMM's property, plant and equipment. (RM 5,000) | 1,532 | 1,290 | |||
Total | 3,900 | 3,958 | |||
Less current maturities | 956 | 1,040 | |||
Total long-term debt - financial institutions | $ | 2,944 | $ | 2,918 |
Fair_Value_Measures_and_Disclo
Fair Value Measures and Disclosures (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 March 31, 2014 and December 31, 2013, in thousands. The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at March 31, 2014 or 2013. | |||||||||
Fair Value Measurements | |||||||||
Total | Quoted Pricesin Active Markets(Level 1) | SignificantOther ObservableInputs(Level 2) | SignificantUnobservableInputs(Level 3) | ||||||
Asset | |||||||||
31-Mar-14 | |||||||||
Currency forward contracts | $ | 9 | $ | - | $ | 9 | $ | - | |
Liability | |||||||||
31-Dec-13 | |||||||||
Currency forward contracts | $ | -14 | $ | - | $ | -14 | $ | - | |
Schedule of Debt | ' | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
CarryingValue | FairValue | CarryingValue | FairValue | ||||||
Long-term debt, including current portion | $ | 3,900 | $ | 3,673 | $ | 3,958 | $ | 3,697 |
Calculation_of_Basic_and_Dilut1
Calculation of Basic and Diluted Earnings per Share (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Calculation of Basic and Diluted Earnings per Share (Tables) | ' | ||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||
(in thousands, except per share amounts) | Three Months Ended March 31, | ||||
2014 | 2013 | ||||
Numerator: | |||||
Net Income (Loss) | $ | 707 | $ | -75 | |
Numerator for basic earnings per share - income (loss) available to common shareholders | 707 | -75 | |||
Effect of dilutive securities: | - | - | |||
Numerator for diluted earnings per share - income (loss) available to common shareholders after assumed conversions | $ | 707 | $ | -75 | |
Denominator: | |||||
Denominator for basic earnings per share - weighted-average shares | 3,014 | 2,987 | |||
Effect of dilutive securities: | |||||
Employee stock options | 5 | - | |||
Warrants | 394 | - | |||
Dilutive potential common shares | 399 | - | |||
Denominator for diluted earnings per share - weighted-average shares and assumed conversions | 3,413 | 2,987 | |||
Basic earnings per common share | $ | 0.23 | $ | -0.03 | |
Diluted earnings per common share | $ | 0.21 | $ | -0.03 |
Schedule_of_Segment_Reporting_
Schedule of Segment Reporting (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Segment Information | ' | ||||||||||
A summary of the Company's manufacturing operations by geographic segment is presented below in thousands: | ' | ||||||||||
A summary of the Company’s manufacturing operations by geographic segment is presented below in thousands: | |||||||||||
United States(Corpus Christi) | Europe(TPT) | Asia(TMM) | Inter-CompanyEliminations | Consolidated | |||||||
As of and for the three months ended: | |||||||||||
31-Mar-14 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 7,946 | $ | 2,715 | $ | 2,471 | $ | - | $ | 13,132 | |
Intercompany sales | 57 | 1,835 | 643 | -2,535 | - | ||||||
Total Net Sales | $ | 8,003 | $ | 4,550 | $ | 3,114 | $ | -2,535 | $ | 13,132 | |
Location income | $ | 55 | $ | 544 | $ | 44 | $ | 64 | $ | 707 | |
Location assets | $ | 18,337 | $ | 11,608 | $ | 23,498 | $ | - | $ | 53,443 | |
31-Mar-13 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 7,712 | $ | 2,478 | $ | 1,237 | $ | - | $ | 11,427 | |
Intercompany sales | 56 | 1,675 | 2,333 | -4,064 | - | ||||||
Total Net Sales | $ | 7,768 | $ | 4,153 | $ | 3,570 | $ | -4,064 | $ | 11,427 | |
Location income (loss) | $ | 47 | $ | 219 | $ | -398 | $ | 57 | $ | -75 | |
Location assets | $ | 20,690 | $ | 10,870 | $ | 23,568 | $ | - | $ | 55,128 |
Summary_of_Inventory_Tables
Summary of Inventory (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories: | ' | ||||||||
Summary of Inventories(Table) | ' | ||||||||
A summary of inventories is as follows: | |||||||||
(In thousands) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Raw materials | $ | 14,020 | $ | 12,852 | |||||
Work in progress | 1,917 | 1,866 | |||||||
Finished goods | 3,720 | 5,306 | |||||||
Supplies | 1,032 | 1,034 | |||||||
Total Inventories | 20,689 | 21,058 | |||||||
Inventory reserve | -286 | -305 | |||||||
Net Inventories | $ | 20,403 | $ | 20,753 |
Schedule_of_Derivative_Instrum
Schedule of Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Derivative Instruments and Hedging Activities (Tables) | ' | ||||||
Asset Derivatives (TABLE) | ' | ||||||
Asset Derivatives | |||||||
Derivative Instrument | Location | 31-Mar-14 | 31-Dec-13 | ||||
Foreign Currency Exchange Contracts | Other Current Assets | $ | 9 | $ | - | ||
Liability Derivatives (TABLE) | ' | ||||||
Liability Derivatives | |||||||
Derivative Instrument | Location | 31-Mar-14 | 31-Dec-13 | ||||
Foreign Currency Exchange Contracts | Accrued Expenses | $ | - | $ | 14 | ||
Derivatives_Consolidated_Finan
Derivatives Consolidated Financial Statements Quarterly (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Derivatives Consolidated Financial Statements Quarterly: | ' | ||||||
Derivatives Consolidated Financial Statements Quarterly | ' | ||||||
The following table summarizes, in thousands, the impact of the Company’s derivatives on the condensed consolidated financial statements of operations for the quarters ended March 31, 2014 and 2013: | |||||||
Location of Gain | Amount of Gain Recognized in Operations | ||||||
Derivative | on Derivative | Three Months Ended March 31, | |||||
Instrument | Instrument | 2014 | 2013 | ||||
Foreign Currency Exchange Contracts | Gain on foreign currency exchange rate | $ | 9 | $ | 21 |
Accounting_Policies_Income_Tax
Accounting Policies Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | |
Accounting Policies Income Taxes | ' | ' | ' |
Federal income tax expense approximately | $47,000 | $40,000 | ' |
State income tax expense approximately | 2,000 | 2,000 | ' |
Foreign income tax expense approximately | $143,000 | $73,000 | ' |
Taxes are based on an estimated annualized consolidated effective rate | ' | ' | 21.40% |
Summary_of_our_longterm_debt_t
Summary of our long-term debt to financial institutions (In thousands) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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% | $806 | $911 |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% | 345 | 351 |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% | 380 | 386 |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.05% | 63 | 80 |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.25% | 59 | 139 |
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 5.2% due March 1, 2015 | 715 | 801 |
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 5.2% due October 25, 2018 | 1,532 | 1,290 |
Total long-term debt to financial institutions | 3,900 | 3,958 |
Less current maturities | 956 | 1,040 |
Total long-term debt - financial institutions, net of current maturities | $2,944 | $2,918 |
Shortterm_Debt_Financial_Insti
Short-term Debt Financial Institutions U.S. Operations (Details) (USD $) | Jan. 17, 2014 | Mar. 15, 2013 | Mar. 01, 2012 | Dec. 31, 2010 |
Short-term Debt Financial Institutions U.S. Operations | ' | ' | ' | ' |
Company entered into a credit agreement for a line of credit | ' | ' | ' | $1,000,000 |
The Line was increased as per the amendement agreement | ' | ' | $2,000,000 | ' |
The company reduced the minimum interest rate floor | ' | ' | ' | ' |
from 5.5% to 4.5% | ||||
Under the terms of the amendment, the Company is required ratio of cash flow to debt service | '1.0 to 1.0 | ' | ' | ' |
The required ratio of cash flow to debt service after 2014 shall be | '1.25 to 1.0 | ' | ' | ' |
Shortterm_Debt_Financial_Insti1
Short-term Debt Financial Institutions European Operations (Details) (USD $) | Mar. 20, 2007 |
Short-term Debt Financial Institutions European Operations | ' |
TPT entered into a short-term credit facility with Rabobank which increased line of credit from €650,000 to a limit in Euros | $1,100,000 |
The Credit Facility has a variable interest rate of bank prime plus | 2.80% |
The Credit Facility has acurrent interest rate | 3.53% |
TPT had utilized its short-term credit facility in Euros | 633,000 |
TPT had utilized its short-term credit facility in US Dollars | $872,000 |
Shortterm_Debt_Financial_Insti2
Short-term Debt Financial Institutions Asian Operations (Details) (USD $) | Mar. 31, 2014 | 21-May-13 | Apr. 17, 2013 |
Short-term Debt Financial Institutions Asian Operations | ' | ' | ' |
The HSBC facility of line includes overdraft in Malaysian Ringgits | ' | 500,000 | ' |
The HSBC facility of line includes an import export line in Malaysian Ringgits | ' | 6,460,000 | ' |
The HSBC facility of line includes a foreign exchange contract limit in Malaysian Ringgits | ' | 5,000,000 | ' |
The HSBC facility of line includes overdraft in US Dollars | ' | $153,000 | ' |
The HSBC facility of line includes an import export line in US Dollars | ' | 1,979,000 | ' |
The HSBC facility of line includes a foreign exchange contract limit in US Dollars | ' | 1,531,000 | ' |
The RHB facility of line includes overdraft in Malaysian Ringgits | ' | ' | 1,000,000 |
The RHB facility of line includes an import export line in Malaysian Ringgits | ' | ' | 9,300,000 |
The RHB facility of line includes a bank guarantee in Malaysian Ringgits | ' | ' | 1,200,000 |
The RHB facility of line includes a foreign exchange contract limit in Malaysian Ringgits | ' | ' | 25,000,000 |
The outstanding balance on the foreign exchange contract in Malaysian Ringgits | ' | 1,818,000 | 1,311,000 |
The RHB facility of line includes overdraft in US Dollars | ' | ' | 306,000 |
The RHB facility of line includes an import export line in US Dollars | ' | ' | 2,848,000 |
The RHB facility of line includes a bank guarantee in US Dollars | ' | ' | 367,000 |
The RHB facility of line includes a foreign exchange contract limit in US Dollars | ' | ' | 7,657,000 |
The outstanding balance on the foreign exchange contract in US Dollars | ' | ' | 557,000 |
The banking facilities with both HSBC and RHB bear an interest rate on the overdraft facilities at a rate over bank prime rate | 1.25% | ' | ' |
The ECR facilities bear interest at a rate above the funding rate | 1.00% | ' | ' |
The outstanding balance on the ECR facilities in Malaysian Ringgits | 6,889,000 | ' | ' |
The outstanding balance on the ECR facilities in US Dollars | $2,110,000 | ' | ' |
Current interest rate on the ECR facilities | ' | 4.90% | ' |
Summary_of_the_valuation_of_fi
Summary of the valuation of financial instruments recorded on a fair value basis (In thousands) (Details) | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value Measurements Total | ' | ' |
Currency forward contracts | 9 | ' |
Currency forward contracts | 9 | ' |
Currency forward contracts | ' | -14 |
Quoted Prices in Active Markets (Level 1) | ' | ' |
Currency forward contracts | 0 | ' |
Currency forward contracts | 0 | ' |
Currency forward contracts | ' | 0 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Currency forward contracts | 9 | ' |
Currency forward contracts | 9 | ' |
Currency forward contracts | ' | -14 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Currency forward contracts | 0 | ' |
Currency forward contracts | 0 | ' |
Currency forward contracts | ' | 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) (Long-term debt, including current portion, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Long-term debt, including current portion | ' | ' |
Carrying Value | $3,900 | ' |
Carrying Value | 3,900 | ' |
Fair Value | 3,673 | ' |
Carrying Value | ' | 3,958 |
Fair Value | ' | $3,697 |
Capital_Leases_transactions_De
Capital Leases transactions (Details) (USD $) | Mar. 31, 2014 | Sep. 04, 2011 |
Capital Leases transactions | ' | ' |
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 | ' | $52,852 |
Accumulated amortization of the leased with Diependael Leasing equipment was approximately in Euros | 31,966 | ' |
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 | 44,000 | ' |
The capital lease with Diependael Leasing is in the amount including interest in US Dollars | 56,800 | ' |
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 | 1,580 | ' |
The net present value of the lease with Diependael Leasing in Euros | 5,662 | ' |
The net present value of the lease with Diependael Leasing in US Dollars | $8,000 | ' |
Calculation_of_Basic_and_Dilut2
Calculation of Basic and Diluted Earnings per Share (in thousands, except per share amounts) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Calculation of Basic and Diluted Earnings per Share as follows | ' | ' |
Net Income (Loss) | $707 | ($75) |
Numerator for basic earnings per share - income (loss) available to common shareholders | $707 | ($75) |
Numerator for diluted earnings per share - income (loss) available to common shareholders after assumed conversions | $707 | ($75) |
Denominator for basic earnings per share - weighted-average shares | 3,014 | 2,987 |
Employee stock options | 5 | ' |
Warrants | 394 | ' |
Dilutive potential common shares | 399 | ' |
Denominator for diluted earnings per share - weighted-average shares and assumed conversions | 3,413 | 2,987 |
Basic earnings per common share | $0.23 | ($0.03) |
Diluted earnings per common share | $0.21 | ($0.03) |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings per Share Parentheticals (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Computation of Basic and Diluted Earnings per Share Parentheticals | ' | ' |
Warrants were excluded from the calculation of diluted earning per share | 0 | 528,000 |
Employee stock options excluded from calculation of diluted earnings per share | 105,000 | 174,000 |
Summary_of_the_Companys_manufa
Summary of the Company's manufacturing operations by geographic segment is presented below (In thousands) (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
United States (Corpus Christi) | ' | ' |
Customer sales | $7,946 | ' |
Customer sales | 7,946 | ' |
Intercompany sales | 57 | ' |
Total Net Sales | 8,003 | ' |
Location income | 55 | ' |
Location assets | 18,337 | ' |
Customer sales | ' | 7,712 |
Intercompany sales | ' | 56 |
Total Net Sales | ' | 7,768 |
Location income (loss) | ' | 47 |
Location assets | ' | 20,690 |
Europe (TPT) | ' | ' |
Customer sales | 2,715 | ' |
Customer sales | 2,715 | ' |
Intercompany sales | 1,835 | ' |
Total Net Sales | 4,550 | ' |
Location income | 544 | ' |
Location assets | 11,608 | ' |
Customer sales | ' | 2,478 |
Intercompany sales | ' | 1,675 |
Total Net Sales | ' | 4,153 |
Location income (loss) | ' | 219 |
Location assets | ' | 10,870 |
Asia (TMM) | ' | ' |
Customer sales | 2,471 | ' |
Customer sales | 2,471 | ' |
Intercompany sales | 643 | ' |
Total Net Sales | 3,114 | ' |
Location income | 44 | ' |
Location assets | 23,498 | ' |
Customer sales | ' | 1,237 |
Intercompany sales | ' | 2,333 |
Total Net Sales | ' | 3,570 |
Location income (loss) | ' | -398 |
Location assets | ' | 23,568 |
Inter-Company Eliminations | ' | ' |
Intercompany sales | -2,535 | ' |
Total Net Sales | -2,535 | ' |
Location income | 64 | ' |
Intercompany sales | ' | -4,064 |
Total Net Sales | ' | -4,064 |
Location income (loss) | ' | 57 |
Consolidated | ' | ' |
Customer sales | 13,132 | ' |
Customer sales | 13,132 | ' |
Total Net Sales | 13,132 | ' |
Location income | 707 | ' |
Location assets | 53,443 | ' |
Customer sales | ' | 11,427 |
Total Net Sales | ' | 11,427 |
Location income (loss) | ' | -75 |
Location assets | ' | $55,128 |
Stockbased_employee_compensati
Stock-based employee compensation expense (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stock-based employee compensation expense | ' | ' |
Stock-based employee compensation expense included in the selling, general and administrative expenses | $23,000 | $16,000 |
Options granted during the period | 0 | 0 |
Stock-based employee compensation expense related to non-vested awards | $343,000 | ' |
Stock-based employee compensation expense recognized over a weighted average period in years | 2.9 | ' |
Summary_of_inventories_is_as_f
Summary of inventories is as follows (In thousands) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Summary of inventories is as follows | ' | ' |
Raw materials | $14,020 | $12,852 |
Work in progress | 1,917 | 1,866 |
Finished goods | 3,720 | 5,306 |
Supplies | 1,032 | 1,034 |
Total Inventories | 20,689 | 21,058 |
Inventory reserve | -286 | -305 |
Net Inventories | $20,403 | $20,753 |
Summary_of_the_gross_fair_mark
Summary of the gross fair market value of all derivative instruments recorded in consolidated balance sheets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 asset on the consolidated balance sheets | $9,000 | $0 |
Foreign Currency Forward Contracts recorded as as a current liability on the consolidated balance sheets | $0 | $14,000 |
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 $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of the impact of the Company's derivatives on the consolidated financial statements of operations | ' | ' |
Foreign Currency Forward Contracts recorded as gain on foreign currency exchange rate | $9,000 | $21,000 |