TOR Minerals International (TORM) 10-Q 5 May 14 2014 Q1 Quarterly report Financial data

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