Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'TOR MINERALS INTERNATIONAL INC | ' |
Entity Central Index Key | '0000842295 | ' |
Trading Symbol | 'torm | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 3,014,022 |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Income_
Condensed Consolidated Income Statements (Unaudited) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | MYR | USD ($) | MYR | USD ($) | MYR | USD ($) | MYR | |
Income Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
NET SALES | ' | 11,317 | ' | 10,870 | ' | 36,841 | ' | 33,029 |
Cost of sales | ' | 9,809 | ' | 9,289 | ' | 31,674 | ' | 28,242 |
GROSS MARGIN | ' | 1,508 | ' | 1,581 | ' | 5,167 | ' | 4,787 |
Technical services and research and development | ' | 50 | ' | 135 | ' | 150 | ' | 459 |
Selling, general and administrative expenses | ' | 1,092 | ' | 1,119 | ' | 3,319 | ' | 3,644 |
Loss on disposal of assets | ' | ' | ' | ' | ' | ' | ' | 10 |
OPERATING INCOME | ' | 366 | ' | 327 | ' | 1,698 | ' | 674 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense, net | ' | -85 | ' | -103 | ' | -275 | ' | -286 |
Gain (Loss) on foreign currency exchange rate | ' | 71 | ' | -84 | ' | 10 | ' | -151 |
Other, net | ' | 5 | ' | 6 | ' | 10 | ' | 18 |
Total Other Expense | ' | -9 | ' | -181 | ' | -255 | ' | -419 |
INCOME BEFORE INCOME TAX | ' | 357 | ' | 146 | ' | 1,443 | ' | 255 |
Income tax expense | ' | 61 | ' | 33 | ' | 287 | ' | 67 |
NET INCOME | ' | 296 | ' | 113 | ' | 1,156 | ' | 188 |
Earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.10 | ' | $0.04 | ' | $0.38 | ' | $0.06 | ' |
Diluted (in dollars per share) | $0.09 | ' | $0.03 | ' | $0.34 | ' | $0.06 | ' |
Weighted average common shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | 3,014 | 3,014 | 3,012 | 3,012 | 3,014 | 3,014 | 2,999 | 2,999 |
Diluted (in shares) | 3,394 | 3,394 | 3,422 | 3,422 | 3,403 | 3,403 | 3,271 | 3,271 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (MYR) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
NET INCOME | 296 | 113 | 1,156 | 188 |
Currency translation adjustment, net of tax: | ' | ' | ' | ' |
Net foreign currency translation adjustment gains (losses) | -1,021 | -265 | -729 | -951 |
Other comprehensive gain (loss), net of tax | -1,021 | -265 | -729 | -951 |
COMPREHENSIVE INCOME (LOSS) | -725 | -152 | 427 | -763 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets(MYR) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | 2,736 | 2,920 |
Trade accounts receivable, net | 5,871 | 4,526 |
Inventories, net | 20,487 | ' |
Other current assets | 965 | 596 |
Total current assets | 30,059 | 28,795 |
PROPERTY, PLANT AND EQUIPMENT, net | 21,957 | 23,799 |
OTHER ASSETS | 23 | 23 |
Total Assets | 52,039 | 52,617 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 4,914 | 3,279 |
Accrued expenses | 1,848 | 1,397 |
Notes payable under lines of credit | 425 | 1,477 |
Export credit refinancing facility | 2,330 | 3,866 |
Current deferred tax liability | 17 | 66 |
Current maturities - capital leases | ' | 12 |
Current maturities of long-term debt - financial institutions | 1,159 | 1,040 |
Total current liabilities | 10,693 | 11,137 |
LONG-TERM DEBT - FINANCIAL INSTITUTIONS | 2,008 | 2,918 |
DEFERRED TAX LIABILITY | 257 | 18 |
Total liabilities | 12,958 | 14,073 |
SHAREHOLDERS' EQUITY: | ' | ' |
Common stock $1.25 par value: authorized, 6,000 shares; 3,014 shares issued and outstanding at September 30, 2014 and 3,012 shares issued and outstanding at December 31, 2013 | 3,767 | 3,765 |
Additional paid-in capital | 29,473 | 29,365 |
Retained earnings | 2,809 | 1,653 |
Accumulated other comprehensive income: | ' | ' |
Cumulative translation adjustment | 3,032 | 3,761 |
Total shareholders' equity | 39,081 | 38,544 |
Total Liabilities and Shareholders' Equity | 52,039 | 52,617 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $1.25 | $1.25 |
Common stock, shares authorized | 6,000,000 | 6,000,000 |
Common stock, shares issued | 3,014,000 | 3,012,000 |
Common stock, shares outstanding | 3,014,000 | 3,012,000 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (MYR) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net Income | 1,156 | 188 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation | 2,570 | 2,355 |
Loss on disposal of assets | ' | 10 |
Stock-based compensation | 100 | 85 |
Deferred income tax expense (benefit) | 189 | -123 |
Change in inventory reserve | -174 | -15 |
Provision for bad debts | -7 | 3 |
Changes in working capital: | ' | ' |
Trade accounts receivables | -1,411 | -903 |
Inventories | 343 | -4,996 |
Other current assets | -381 | 814 |
Accounts payable and accrued expenses | 2,223 | 1,135 |
Net cash provided by (used in) operating activities | 4,608 | -1,447 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Additions to property, plant and equipment | -1,386 | -3,529 |
Proceeds from sales of property, plant and equipment | ' | 2 |
Net cash used in investing activities | -1,386 | -3,527 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net (payments on) proceeds from lines of credit | -965 | 804 |
Net (payments on) proceeds from export credit refinancing facility | -1,532 | 3,600 |
Payments on capital leases | -11 | -30 |
Proceeds from long-term bank debt | 236 | 276 |
Payments on long-term bank debt | -947 | -815 |
Proceeds from the issuance of common stock and exercise of common stock options | 11 | 267 |
Net cash (used in) provided by financing activities | -3,208 | 4,102 |
Effect of foreign currency exchange rate fluctuations on cash and cash equivalents | -198 | -128 |
Net increase (decrease) in cash and cash equivalents | -184 | -1,000 |
Cash and cash equivalents at beginning of period | 2,920 | 2,799 |
Cash and cash equivalents at end of period | 2,736 | 1,799 |
Supplemental cash flow disclosures: | ' | ' |
Interest paid | 275 | 286 |
Income taxes paid | 78 | 214 |
Accounting_Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
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 Processing and Trade, BV (“TPT”) and TOR Minerals Malaysia, Sdn. Bhd. (“TMM”) 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 and nine month periods ended September 30, 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 $163,000 and $2,000, respectively, and foreign tax benefit of approximately $104,000 for the three month period ended September 30, 2014, as compared to a federal tax benefit of approximately $103,000 and state income tax expense of approximately $2,000 and foreign tax expense of approximately $134,000 for the same three month period in 2013. | |
For the nine month period ended September 30, 2014, income taxes consisted of federal and state income tax expense of approximately $220,000 and $7,000, respectively, and foreign tax expense of approximately $60,000, as compared to a federal tax benefit of approximately $88,000 and state income tax expense of approximately $7,000 and foreign tax expense of approximately $148,000 for the same nine month period in 2013. Taxes are based on an estimated annualized consolidated effective rate of 19.9% 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, 2011 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 nine month period ended September 30, 2014. In addition, we did not recognize any interest and penalties in our condensed consolidated financial statements during the three and nine month periods ended September 30, 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. |
Debt_and_Notes_Payable
Debt and Notes Payable | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Debt and Notes Payable | ' | ||||
Long-term Debt – Financial Institutions | |||||
Following is a summary of our long-term debt to financial institutions as of September 30, 2014 and December 31, 2013, in thousands: | |||||
September 30, | |||||
2014 | December 31, | ||||
(Unaudited) | 2013 | ||||
Fixed Rate term note payable to a U.S. bank, with an interest rate of 5.5% at September 30, 2014, due January 1, 2016, secured by real estate, leasehold improvements, property, plant and equipment, inventory and accounts receivable of our U.S. operation. | $ | 595 | $ | 911 | |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at September 30, 2014, due July 1, 2029, secured by TPT's land and office building purchased July 2004. (€240) | 304 | 351 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at September 30, 2014, due January 31, 2030, secured by TPT's land and building purchased January 2005. (€266) | 337 | 386 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.05% at September 30, 2014, due July 31, 2015, secured by TPT's assets. (€21) | 26 | 80 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.25% at September 30, 2014. Paid in full on June 30, 2014. | - | 139 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with a fixed interest rate of 5.2% at September 30, 2014, due March 1, 2015, secured by TMM's property, plant and equipment. (RM 1,750) | 533 | 801 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with a fixed interest rate of 5.2% at September 30, 2014, due October 25, 2018, secured by TMM's property, plant and equipment. (RM 4,500) | 1,372 | 1,290 | |||
Total | 3,167 | 3,958 | |||
Less current maturities | 1,159 | 1,040 | |||
Total long-term debt - financial institutions | $ | 2,008 | $ | 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 reduced the minimum interest rate floor on the Line from 5.5% to 4.5%. | |||||
On January 14, 2014, the Company entered into the third amendment (the “Third Amendment”) with the Lender. Under the terms of the Third Amendment, the Company is required to maintain a ratio of cash flow to debt service of 1.0 to 1.0 for the four month period ended 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 Agreement. The Company was in compliance with the ratio of cash flow to debt service for the nine month period ended September 30, 2014. | |||||
On August 1, 2014, the Company and the Lender entered into the fourth amendment which extended the maturity date on the Line from October 15, 2014 to October 15, 2015 and released as collateral the $350,000 certificate of deposit pledged as additional security in the Third Amendment to the agreement. Under the terms of the Agreement, as amended, 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 September 30, 2014, no funds were outstanding on the Line. | |||||
European Operations | |||||
On March 20, 2007, our subsidiary, TPT, entered into a short-term credit facility (the “Credit Facility”) with Rabobank which increased TPT’s line of credit from €650,000 to €1,100,000. The Credit Facility was renewed on January 1, 2010 and has no stated maturity date. The Credit Facility, which has a variable interest rate of bank prime plus 2.8% (currently at 3.316%), is secured by TPT’s accounts receivable and inventory. At September 30, 2014, TPT had utilized €53,000 ($68,000) 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 Rabobank, 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 Rabobank could foreclose on the assets of TPT. | |||||
Asian Operations | |||||
On August 31, 2014, our subsidiary, TMM, amended its banking facility with HSBC Bank of Malaysia Berhad (“HSBC”) to extend the maturity date from April 30, 2014 to June 30, 2015. The HSBC facility includes the following in RM: (1) overdraft of RM 500,000 ($152,000); (2) an import/export line (“ECR”) of RM 10,460,000 ($3,188,000; and (3) a foreign exchange contract limit of RM 5,000,000 ($1,524,000). | |||||
On August 15, 2014, TMM amended its banking facility with RHB Bank Berhad (“RHB”) to extend the maturity date from March 24, 2014 to April 1, 2015. The RHB facility includes the following: (1) an overdraft line of credit up to RM 1,000,000 ($304,000); (2) an ECR of RM 7,300,000 (2,225,000); (3) a bank guarantee of RM 1,200,000 ($365,000); and (4) a foreign exchange contract limit of RM 25,000,000 ($7,621,000). At September 30, 2014, the outstanding balance on the foreign exchange contract was RM 1,172,000 ($357,000) 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 September 30, 2014, the outstanding balance on the ECR facilities was RM 7,645,000 ($2,330,000) at a current interest rate of 5.2%. | |||||
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 | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Fair Value Measurements | ' | ||||||||
The following table summarizes the valuation of our financial instruments recorded on a fair value basis as of September 30, 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 September 30, 2014 or at December 31, 2013. | |||||||||
Fair Value Measurements | |||||||||
Total | Quoted Prices | Significant | Significant | ||||||
in Active | Other | Unobservable | |||||||
Markets | Observable | Inputs | |||||||
(Level 1) | Inputs | (Level 3) | |||||||
(Level 2) | |||||||||
Current Liability | |||||||||
30-Sep-14 | |||||||||
Currency forward contracts | $ | 21 | $ | - | $ | 21 | $ | - | |
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: | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Carrying | Fair | Carrying | Fair | ||||||
Value | Value | Value | Value | ||||||
Long-term debt, including | $ | 3,167 | $ | 2,977 | $ | 3,958 | $ | 3,697 | |
current portion | |||||||||
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 | 9 Months Ended |
Sep. 30, 2014 | |
Leases, Capital [Abstract] | ' |
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 approximately €38,360 ($52,500), is included in the condensed consolidated balance sheets as property, plant and equipment. Accumulated amortization of the leased equipment at September 30, 2014 was approximately €35,166 ($48,000). The lease agreement, which had a net present value of €9,168 ($12,000) at December 31, 2013, matured on August 4, 2014. |
Calculation_of_Basic_and_Dilut
Calculation of Basic and Diluted Earnings per Share | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Earnings per common share: | ' | ||||||||
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 | Nine Months | |||||||
Ended September 30, | Ended September 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Numerator: | |||||||||
Net Income | $ | 296 | $ | 113 | $ | 1,156 | $ | 188 | |
Numerator for basic earnings per share - | 296 | 113 | 1,156 | 188 | |||||
income available to common shareholders | |||||||||
Effect of dilutive securities: | |||||||||
Numerator for diluted earnings per share - | $ | 296 | $ | 113 | $ | 1,156 | $ | 188 | |
income available to common shareholders | |||||||||
after assumed conversions | |||||||||
Denominator: | |||||||||
Denominator for basic earnings per share - | 3,014 | 3,012 | 3,014 | 2,999 | |||||
weighted-average shares | |||||||||
Effect of dilutive securities: | |||||||||
Employee stock options | 4 | 8 | 1 | 2 | |||||
Warrants | 376 | 402 | 388 | 270 | |||||
Dilutive potential common shares | 380 | 410 | 389 | 272 | |||||
Denominator for diluted earnings per share - | 3,394 | 3,422 | 3,403 | 3,271 | |||||
weighted-average shares and assumed conversions | |||||||||
Basic earnings per common share | $ | 0.10 | $ | 0.04 | $ | 0.38 | $ | 0.06 | |
Diluted earnings per common share | $ | 0.09 | $ | 0.03 | $ | 0.34 | $ | 0.06 | |
For the three and nine month periods ended September 30, 2014 and 2013, approximately 134,000 and 88,000, respectively, of shares issuable upon exercise of employee stock options were excluded from the calculation of diluted earnings per share as the exercise price was greater than the average market price of the common shares and, therefore, the effect would be anti-dilutive. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Segment Reporting [Abstract] | ' | ||||||||||
Segment Information | ' | ||||||||||
The Company and its subsidiaries operate in the business of manufacturing flame retardants, engineered fillers and pigments 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. A summary of the Company’s manufacturing operations by geographic segment is presented below in thousands: | |||||||||||
United States | Europe | Asia | Inter-Company | Consolidated | |||||||
(Corpus Christi) | (TPT) | (TMM) | Eliminations | ||||||||
As of and for the three months ended: | |||||||||||
30-Sep-14 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 8,137 | $ | 2,341 | $ | 839 | $ | - | $ | 11,317 | |
Intercompany sales | - | 1,936 | 2,430 | -4,366 | - | ||||||
Total Net Sales | $ | 8,137 | $ | 4,277 | $ | 3,269 | $ | -4,366 | $ | 11,317 | |
Location income (loss) | $ | 135 | $ | 215 | $ | -201 | $ | 147 | $ | 296 | |
30-Sep-13 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 7,680 | $ | 2,124 | $ | 1,066 | $ | - | $ | 10,870 | |
Intercompany sales | 53 | 1,674 | 1,703 | -3,430 | - | ||||||
Total Net Sales | $ | 7,733 | $ | 3,798 | $ | 2,769 | $ | -3,430 | $ | 10,870 | |
Location income (loss) | $ | -389 | $ | 353 | $ | 80 | $ | 69 | $ | 113 | |
As of and for the nine months ended: | |||||||||||
30-Sep-14 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 24,534 | $ | 8,148 | $ | 4,159 | $ | - | $ | 36,841 | |
Intercompany sales | 58 | 5,903 | 6,315 | -12,276 | - | ||||||
Total Net Sales | $ | 24,592 | $ | 14,051 | $ | 10,474 | $ | -12,276 | $ | 36,841 | |
Location income (loss) | $ | 181 | $ | 1,362 | $ | -630 | $ | 243 | $ | 1,156 | |
Location assets | $ | 21,574 | $ | 10,577 | $ | 19,888 | $ | - | $ | 52,039 | |
30-Sep-13 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 23,264 | $ | 6,300 | $ | 3,465 | $ | - | $ | 33,029 | |
Intercompany sales | 110 | 4,997 | 7,342 | -12,449 | - | ||||||
Total Net Sales | $ | 23,374 | $ | 11,297 | $ | 10,807 | $ | -12,449 | $ | 33,029 | |
Location income (loss) | $ | -361 | $ | 618 | $ | -113 | $ | 44 | $ | 188 | |
Location assets | $ | 21,048 | $ | 11,305 | $ | 26,268 | $ | - | $ | 58,621 | |
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. |
Stock_Options_and_Equity_Compe
Stock Options and Equity Compensation Plan | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock Options and Equity Compensation Plan | ' |
For the three and nine month periods ended September 30, 2014, the Company recorded stock-based employee compensation expense of $30,000 and $100,000, respectively. For the three and nine month periods ended September 30, 2013, the Company recorded stock-based employee compensation expense of $23,000 and $85,000, respectively. This compensation expense is included in the selling, general and administrative expenses in the accompanying condensed consolidated income statements. | |
The Company granted 20,500 options during the nine month period ended September 30, 2014 and 21,000 options during the same period of 2013. | |
As of September 30, 2014, there was approximately $403,000 of stock-based employee compensation expense related to non-vested awards which is expected to be recognized over a weighted average period of 2.93 years. | |
As most options issued under the Company’s 2000 Incentive 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 | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Following is a summary of inventory at September 30, 2014 and December 31, 2013, in thousands: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 13,249 | $ | 12,852 | |||||
Work in progress | 2,119 | 1,866 | |||||||
Finished goods | 4,187 | 5,306 | |||||||
Supplies | 1,063 | 1,034 | |||||||
Total Inventories | 20,618 | 21,058 | |||||||
Inventory reserve | -131 | -305 | |||||||
Net Inventories | $ | 20,487 | $ | 20,753 |
Derivatives_and_Other_Financia
Derivatives and Other Financial Instruments | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
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 September 30, 2014, we marked these contracts to market, recording $21,000 as a current liability on the condensed consolidated balance sheet. For the three month and nine month periods ended September 30, 2014, we recorded a net loss on these contracts of $21,000 and a net gain $2,000, respectively, as a component of our net income. For the three and nine month periods ended September 30, 2013, we recorded a net loss on these contracts of $23,000 and a net gain of $1,000, respectively, as a component of our net income. | |||||||||||
The following table summarizes the gross fair market value of all derivative instruments, which are not designated as hedging instruments and their location in our condensed consolidated balance sheets at September 30, 2014 and December 31, 2013, in thousands: | |||||||||||
Liability Derivatives | |||||||||||
Derivative Instrument | Location | 30-Sep-14 | 31-Dec-13 | ||||||||
Foreign Currency | Accrued Expenses | $ | 21 | $ | 14 | ||||||
Exchange Contracts | |||||||||||
The following table summarizes, in thousands, the impact of the Company’s derivatives on the condensed consolidated income statements for the three and nine month periods ended September 30, 2014 and 2013: | |||||||||||
Amount of Gain Recognized in Operations | |||||||||||
Derivative | Location of Gain | Three Months Ended | Nine Month Ended | ||||||||
(loss) on Derivative | September 30, | September 30, | |||||||||
Instrument | Instrument | 2014 | 2013 | 2014 | 2013 | ||||||
Foreign Currency | Gain (loss) on foreign | $ | -21 | $ | -23 | $ | 2 | $ | 1 | ||
Exchange Contracts | currency exchange | ||||||||||
rate | |||||||||||
Accounting_Policies_Policies
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
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 Processing and Trade, BV (“TPT”) and TOR Minerals Malaysia, Sdn. Bhd. (“TMM”) 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 and nine month periods ended September 30, 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 $163,000 and $2,000, respectively, and foreign tax benefit of approximately $104,000 for the three month period ended September 30, 2014, as compared to a federal tax benefit of approximately $103,000 and state income tax expense of approximately $2,000 and foreign tax expense of approximately $134,000 for the same three month period in 2013. | |
For the nine month period ended September 30, 2014, income taxes consisted of federal and state income tax expense of approximately $220,000 and $7,000, respectively, and foreign tax expense of approximately $60,000, as compared to a federal tax benefit of approximately $88,000 and state income tax expense of approximately $7,000 and foreign tax expense of approximately $148,000 for the same nine month period in 2013. Taxes are based on an estimated annualized consolidated effective rate of 19.9% 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, 2011 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 nine month period ended September 30, 2014. In addition, we did not recognize any interest and penalties in our condensed consolidated financial statements during the three and nine month periods ended September 30, 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. |
Debt_and_Notes_Payable_Tables
Debt and Notes Payable (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of Long-term Debt to Financial Institutions | ' | ||||
Following is a summary of our long-term debt to financial institutions as of September 30, 2014 and December 31, 2013, in thousands: | |||||
September 30, | |||||
2014 | December 31, | ||||
(Unaudited) | 2013 | ||||
Fixed Rate term note payable to a U.S. bank, with an interest rate of 5.5% at September 30, 2014, due January 1, 2016, secured by real estate, leasehold improvements, property, plant and equipment, inventory and accounts receivable of our U.S. operation. | $ | 595 | $ | 911 | |
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at September 30, 2014, due July 1, 2029, secured by TPT's land and office building purchased July 2004. (€240) | 304 | 351 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at September 30, 2014, due January 31, 2030, secured by TPT's land and building purchased January 2005. (€266) | 337 | 386 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.05% at September 30, 2014, due July 31, 2015, secured by TPT's assets. (€21) | 26 | 80 | |||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 4.25% at September 30, 2014. Paid in full on June 30, 2014. | - | 139 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with a fixed interest rate of 5.2% at September 30, 2014, due March 1, 2015, secured by TMM's property, plant and equipment. (RM 1,750) | 533 | 801 | |||
Malaysian Ringgit term note payable to a Malaysian bank, with a fixed interest rate of 5.2% at September 30, 2014, due October 25, 2018, secured by TMM's property, plant and equipment. (RM 4,500) | 1,372 | 1,290 | |||
Total | 3,167 | 3,958 | |||
Less current maturities | 1,159 | 1,040 | |||
Total long-term debt - financial institutions | $ | 2,008 | $ | 2,918 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Schedule of Valuation of Financial Instruments Recorded on a Fair Value Basis | ' | ||||||||
The following table summarizes the valuation of our financial instruments recorded on a fair value basis as of September 30, 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 September 30, 2014 or at December 31, 2013. | |||||||||
Fair Value Measurements | |||||||||
Total | Quoted Prices | Significant | Significant | ||||||
in Active | Other | Unobservable | |||||||
Markets | Observable | Inputs | |||||||
(Level 1) | Inputs | (Level 3) | |||||||
(Level 2) | |||||||||
Current Liability | |||||||||
30-Sep-14 | |||||||||
Currency forward contracts | $ | 21 | $ | - | $ | 21 | $ | - | |
31-Dec-13 | |||||||||
Currency forward contracts | $ | 14 | $ | - | $ | 14 | $ | - | |
Schedule of Carrying Amounts and Estimated Fair Values | ' | ||||||||
The carrying amounts and estimated fair values of the Company’s long-term debt, including current maturities, are summarized below, in thousands: | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Carrying | Fair | Carrying | Fair | ||||||
Value | Value | Value | Value | ||||||
Long-term debt, including | $ | 3,167 | $ | 2,977 | $ | 3,958 | $ | 3,697 | |
current portion | |||||||||
Calculation_of_Basic_and_Dilut1
Calculation of Basic and Diluted Earnings per Share (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Earnings per common share: | ' | ||||||||
Schedule of Computation 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 | Nine Months | |||||||
Ended September 30, | Ended September 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Numerator: | |||||||||
Net Income | $ | 296 | $ | 113 | $ | 1,156 | $ | 188 | |
Numerator for basic earnings per share - | 296 | 113 | 1,156 | 188 | |||||
income available to common shareholders | |||||||||
Effect of dilutive securities: | |||||||||
Numerator for diluted earnings per share - | $ | 296 | $ | 113 | $ | 1,156 | $ | 188 | |
income available to common shareholders | |||||||||
after assumed conversions | |||||||||
Denominator: | |||||||||
Denominator for basic earnings per share - | 3,014 | 3,012 | 3,014 | 2,999 | |||||
weighted-average shares | |||||||||
Effect of dilutive securities: | |||||||||
Employee stock options | 4 | 8 | 1 | 2 | |||||
Warrants | 376 | 402 | 388 | 270 | |||||
Dilutive potential common shares | 380 | 410 | 389 | 272 | |||||
Denominator for diluted earnings per share - | 3,394 | 3,422 | 3,403 | 3,271 | |||||
weighted-average shares and assumed conversions | |||||||||
Basic earnings per common share | $ | 0.10 | $ | 0.04 | $ | 0.38 | $ | 0.06 | |
Diluted earnings per common share | $ | 0.09 | $ | 0.03 | $ | 0.34 | $ | 0.06 |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Segment Reporting [Abstract] | ' | ||||||||||
Summary of the Company's Manufacturing Operations by Geographic Segment | ' | ||||||||||
. A summary of the Company’s manufacturing operations by geographic segment is presented below in thousands: | |||||||||||
United States | Europe | Asia | Inter-Company | Consolidated | |||||||
(Corpus Christi) | (TPT) | (TMM) | Eliminations | ||||||||
As of and for the three months ended: | |||||||||||
30-Sep-14 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 8,137 | $ | 2,341 | $ | 839 | $ | - | $ | 11,317 | |
Intercompany sales | - | 1,936 | 2,430 | -4,366 | - | ||||||
Total Net Sales | $ | 8,137 | $ | 4,277 | $ | 3,269 | $ | -4,366 | $ | 11,317 | |
Location income (loss) | $ | 135 | $ | 215 | $ | -201 | $ | 147 | $ | 296 | |
30-Sep-13 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 7,680 | $ | 2,124 | $ | 1,066 | $ | - | $ | 10,870 | |
Intercompany sales | 53 | 1,674 | 1,703 | -3,430 | - | ||||||
Total Net Sales | $ | 7,733 | $ | 3,798 | $ | 2,769 | $ | -3,430 | $ | 10,870 | |
Location income (loss) | $ | -389 | $ | 353 | $ | 80 | $ | 69 | $ | 113 | |
As of and for the nine months ended: | |||||||||||
30-Sep-14 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 24,534 | $ | 8,148 | $ | 4,159 | $ | - | $ | 36,841 | |
Intercompany sales | 58 | 5,903 | 6,315 | -12,276 | - | ||||||
Total Net Sales | $ | 24,592 | $ | 14,051 | $ | 10,474 | $ | -12,276 | $ | 36,841 | |
Location income (loss) | $ | 181 | $ | 1,362 | $ | -630 | $ | 243 | $ | 1,156 | |
Location assets | $ | 21,574 | $ | 10,577 | $ | 19,888 | $ | - | $ | 52,039 | |
30-Sep-13 | |||||||||||
Net Sales: | |||||||||||
Customer sales | $ | 23,264 | $ | 6,300 | $ | 3,465 | $ | - | $ | 33,029 | |
Intercompany sales | 110 | 4,997 | 7,342 | -12,449 | - | ||||||
Total Net Sales | $ | 23,374 | $ | 11,297 | $ | 10,807 | $ | -12,449 | $ | 33,029 | |
Location income (loss) | $ | -361 | $ | 618 | $ | -113 | $ | 44 | $ | 188 | |
Location assets | $ | 21,048 | $ | 11,305 | $ | 26,268 | $ | - | $ | 58,621 |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
Following is a summary of inventory at September 30, 2014 and December 31, 2013, in thousands: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 13,249 | $ | 12,852 | |||||
Work in progress | 2,119 | 1,866 | |||||||
Finished goods | 4,187 | 5,306 | |||||||
Supplies | 1,063 | 1,034 | |||||||
Total Inventories | 20,618 | 21,058 | |||||||
Inventory reserve | -131 | -305 | |||||||
Net Inventories | $ | 20,487 | $ | 20,753 |
Derivatives_and_Other_Financia1
Derivatives and Other Financial Instruments (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Schedule of Gross Fair Market Value of Derivative Instruments | ' | ||||||||||
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 September 30, 2014 and December 31, 2013, in thousands: | |||||||||||
Liability Derivatives | |||||||||||
Derivative Instrument | Location | 30-Sep-14 | 31-Dec-13 | ||||||||
Foreign Currency | Accrued Expenses | $ | 21 | $ | 14 | ||||||
Exchange Contracts | |||||||||||
Schedule of Gain Recognized in Income | ' | ||||||||||
The following table summarizes, in thousands, the impact of the Company’s derivatives on the condensed consolidated income statements for the three and nine month periods ended September 30, 2014 and 2013: | |||||||||||
Amount of Gain Recognized in Operations | |||||||||||
Derivative | Location of Gain | Three Months Ended | Nine Month Ended | ||||||||
(loss) on Derivative | September 30, | September 30, | |||||||||
Instrument | Instrument | 2014 | 2013 | 2014 | 2013 | ||||||
Foreign Currency | Gain (loss) on foreign | $ | -21 | $ | -23 | $ | 2 | $ | 1 | ||
Exchange Contracts | currency exchange | ||||||||||
rate | |||||||||||
Accounting_Policies_Details_Na
Accounting Policies (Details Narrative) (MYR) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Federal income tax benefit (expense) | 163 | 103 | 220 | 88 |
State income tax expense | 2 | 2 | 7 | 7 |
Foreign tax expense | 104 | 134 | 60 | 148 |
Estimated annualized consolidated effective tax rate for year 2014 | ' | ' | 19.90% | ' |
Debt_and_Notes_Payable_Details
Debt and Notes Payable (Details) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | MYR | MYR | Long Term Debt Two [Member] | Long Term Debt Two [Member] | Long Term Debt Two [Member] | Long Term Debt Three [Member] | Long Term Debt Three [Member] | Long Term Debt Three [Member] | Long Term Debt Four [Member] | Long Term Debt Four [Member] | Long Term Debt Four [Member] | Long Term Debt Six [Member] | Long Term Debt Six [Member] | Long Term Debt Seven [Member] | Long Term Debt Seven [Member] | Long Term Debt One [Member] | Long Term Debt One [Member] | Long Term Debt One [Member] | Long Term Debt Five [Member] | Long Term Debt Five [Member] |
MYR | USD ($) | MYR | USD ($) | MYR | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | MYR | USD ($) | MYR | USD ($) | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on note payable | ' | ' | 3.85% | 3.85% | ' | 3.30% | 3.30% | ' | 4.05% | 4.05% | ' | 5.20% | ' | 5.20% | ' | 5.50% | 5.50% | ' | 4.25% | ' |
Maturity date | ' | ' | 1-Jul-29 | 1-Jul-29 | ' | 31-Jan-30 | 31-Jan-30 | ' | 31-Jul-15 | 31-Jul-15 | ' | 1-Mar-15 | ' | 25-Oct-18 | ' | 1-Jan-16 | 1-Jan-16 | ' | ' | ' |
Total | 3,167 | 3,958 | ' | 304 | $351 | ' | 337 | $386 | ' | 26 | $80 | $533 | $801 | $1,372 | $1,290 | ' | 595 | $911 | ' | $139 |
Less current maturities | 1,159 | 1,040 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt - financial institutions | 2,008 | 2,918 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_and_Notes_Payable_Details1
Debt and Notes Payable (Details Narrative) | 1 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | 31-May-13 | Dec. 31, 2010 | Sep. 30, 2014 | 15-May-13 | Mar. 01, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | 31-May-13 | Mar. 31, 2007 | Sep. 30, 2014 | Mar. 20, 2007 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 17, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | 21-May-13 | Sep. 30, 2014 | Apr. 17, 2013 |
Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Overdraft [Member] | Overdraft [Member] | Overdraft [Member] | Letter Of Credit [Member] | Letter Of Credit [Member] | Letter Of Credit [Member] | Forex [Member] | Forex [Member] | Forex [Member] | |
American Bank [Member] | American Bank [Member] | American Bank [Member] | American Bank [Member] | American Bank [Member] | American Bank [Member] | American Bank [Member] | American Bank [Member] | American Bank [Member] | American Bank [Member] | Hsbc Bank Malaysia Berhad [Member] | Rabobank [Member] | Rabobank [Member] | Rabobank [Member] | Rabobank [Member] | Hsbc Bank Malaysia Berhad [Member] | Rhb Bank Berhad [Member] | Rhb Bank Berhad [Member] | MYR | Hsbc Bank Malaysia Berhad [Member] | Rhb Bank Berhad [Member] | Hsbc Bank Malaysia Berhad [Member] | Rhb Bank Berhad [Member] | Rhb Bank Berhad [Member] | |
EUR (€) | MYR | USD ($) | Period One [Member] | Period Four [Member] | Period Three [Member] | Period Two [Member] | EUR (€) | MYR | EUR (€) | US Dollar [Member] | USD ($) | USD ($) | MYR | USD ($) | ||||||||||
USD ($) | ||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum credit facility | ' | ' | € 1,100 | ' | ' | $2,000 | ' | ' | ' | ' | ' | ' | ' | € 650 | ' | ' | ' | $311 | ' | ' | ' | $1,524 | ' | $7,785 |
Outstanding balance | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 353 | ' | 68 | ' | ' | ' | 2,330 | ' | ' | ' | 357 | ' |
Increase in line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | € 1,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | ' | 15-Oct-14 | 15-Oct-13 | ' | ' | ' | ' | ' | ' | ' | 30-Apr-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum floor rate for line of credit | ' | ' | 5.50% | ' | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standard ratio of cash flow to debt service must be maintained by the company | '1.25 to 1.0 | ' | ' | ' | ' | ' | '1.0 to 1.0 | '1.0 to 1.0 | '1.0 to 1.0 | '1.0 to 1.0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.32% | ' | ' | ' | ' | 5.20% | ' | ' | ' | 2.20% | ' |
Variable interest of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.80% | ' | ' | ' | 1.25% | 1.25% | ' | ' | 1.00% | 10.00% | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate Of Fair Value, Fair Value Disclosure [Member] | Estimate Of Fair Value, Fair Value Disclosure [Member] |
MYR | USD ($) | MYR | USD ($) | |
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ' | ' |
Assets for foreign currency derivative financial instruments (including forward contracts) | 21 | ' | 21 | ' |
Liability for foreign currency derivative financial instruments (including forward contracts) | ' | ($14) | ' | ($14) |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Estimate Of Fair Value, Fair Value Disclosure [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Estimate Of Fair Value, Fair Value Disclosure [Member] |
MYR | MYR | USD ($) | USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Long-term debt, including current portion | 2,977 | 3,167 | $3,958 | $3,697 |
Capital_Leases_Details_Narrati
Capital Leases (Details Narrative) (Diependael Leasing [Member]) | Sep. 30, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | USD ($) | Euro [Member] |
EUR (€) | ||
Capital Leased Assets [Line Items] | ' | ' |
Cost of the equipment under the capital lease | ($52,500) | € 38,360 |
Accumulated amortization of the leased equipment | -48,000 | 35,166 |
Net present value of the lease | ($12,000) | € 9,168 |
Calculation_of_Basic_and_Dilut2
Calculation of Basic and Diluted Earnings per Share (Details) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | MYR | USD ($) | MYR | USD ($) | MYR | USD ($) | MYR | |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income | ' | 296 | ' | 113 | ' | 1,156 | ' | 188 |
Numerator for basic earnings per share - income available to common shareholders | ' | 296 | ' | 113 | ' | 1,156 | ' | 188 |
Numerator for diluted earnings per share - income available to common shareholders after assumed conversions | ' | 296 | ' | 113 | ' | 1,156 | ' | 188 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' |
Denominator for basic earnings per share - weighted-average shares | 3,014 | 3,014 | 3,012 | 3,012 | 3,014 | 3,014 | 2,999 | 2,999 |
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock options | 4 | 4 | 8 | 8 | 1 | 1 | 2 | 2 |
Warrants | 376 | 376 | 402 | 402 | 388 | 388 | 270 | 270 |
Dilutive potential common shares | 380 | 380 | 410 | 410 | 389 | 389 | 272 | 272 |
Denominator for diluted earnings per share - weighted-average shares and assumed conversions | 3,394 | 3,394 | 3,422 | 3,422 | 3,403 | 3,403 | 3,271 | 3,271 |
Basic earnings per common share (in dollars per share) | $0.10 | ' | $0.04 | ' | $0.38 | ' | $0.06 | ' |
Calculation_of_Basic_and_Dilut3
Calculation of Basic and Diluted Earnings per Share (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings per common share: | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share (in shares) | 134,000 | 134,000 | 88,000 | 88,000 |
Segment_Information_Details
Segment Information (Details) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
MYR | MYR | MYR | MYR | MYR | Customer Sale [Member] | Customer Sale [Member] | Customer Sale [Member] | Customer Sale [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | |
MYR | USD ($) | MYR | USD ($) | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Asia [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | MYR | USD ($) | MYR | USD ($) | MYR | Intercompany Sales [Member] | Intercompany Sales [Member] | Intercompany Sales [Member] | Intercompany Sales [Member] | ||||||
USD ($) | MYR | MYR | USD ($) | MYR | USD ($) | MYR | Intercompany Sales [Member] | Intercompany Sales [Member] | Intercompany Sales [Member] | Intercompany Sales [Member] | Customer Sale [Member] | Customer Sale [Member] | Customer Sale [Member] | Customer Sale [Member] | USD ($) | MYR | USD ($) | MYR | USD ($) | MYR | MYR | USD ($) | Intercompany Sales [Member] | Intercompany Sales [Member] | Intercompany Sales [Member] | Intercompany Sales [Member] | Customer Sale [Member] | Customer Sale [Member] | Customer Sale [Member] | Customer Sale [Member] | USD ($) | MYR | USD ($) | MYR | MYR | Intercompany Sales [Member] | Intercompany Sales [Member] | Customer Sale [Member] | Customer Sale [Member] | Customer Sale [Member] | Customer Sale [Member] | MYR | USD ($) | USD ($) | USD ($) | |||||||||||||||
MYR | MYR | USD ($) | MYR | MYR | USD ($) | MYR | MYR | MYR | USD ($) | MYR | MYR | MYR | MYR | MYR | USD ($) | USD ($) | MYR | MYR | USD ($) | MYR | USD ($) | |||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | 11,317 | 10,870 | 36,841 | 33,029 | ' | 11,317 | $10,870 | 36,841 | $33,029 | ' | 3,269 | 2,769 | ' | 10,474 | ' | 10,807 | 2,430 | 1,703 | $6,315 | 7,342 | 839 | $1,066 | 4,159 | 3,465 | ' | 4,277 | $3,798 | ' | ' | 14,501 | 11,297 | ' | 1,936 | $1,674 | 5,903 | 4,997 | 2,341 | 2,124 | 8,148 | $6,300 | $8,137 | ' | $7,680 | 24,592 | 23,374 | $58 | 110 | 8,137 | $7,733 | 24,534 | $23,264 | -4,366 | ($3,430) | -12,276 | ($12,449) | ' | -4,366 | ($3,430) | ($12,276) | ($12,449) |
Location income (loss) | 296 | 113 | 1,156 | 188 | ' | ' | ' | ' | ' | -201 | ' | 80 | -630 | ' | -113 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215 | ' | ' | 353 | 1,362 | ' | 618 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 135 | -389 | 181 | -361 | ' | ' | ' | ' | ' | ' | 147 | 69 | 243 | ' | 243 | ' | ' | ' | ' |
Location assets | 52,039 | 58,621 | 52,039 | 58,621 | 52,617 | ' | ' | ' | ' | $20,180 | ' | 26,268 | $20,180 | ' | ' | 26,268 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,305 | ' | ' | 11,305 | $10,577 | ' | ' | ' | ' | ' | ' | ' | ' | $21,574 | ' | ' | ' | 21,048 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Information_Details_Na
Segment Information ((Details Narrative) | 9 Months Ended |
Sep. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of geographic segments | 3 |
Stock_Options_and_Equity_Compe1
Stock Options and Equity Compensation Plan (Details) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
USD ($) | USD ($) | MYR | MYR | Employee Stock Option [Member] | Employee Stock Option [Member] | |
USD ($) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based employee compensation expense | ' | ' | ' | ' | $403 | ' |
Unrecognized compensation cost weighted average recognition period | ' | ' | ' | ' | '2 years 11 months 5 days | ' |
Number of options granted to purchase shares of common stock | ' | ' | ' | ' | 20,500 | 20,500 |
Stock-based employee compensation expense | $30 | $23 | 100 | 85 | ' | ' |
Inventories_Details
Inventories (Details) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | MYR | USD ($) |
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | 13,249 | $12,852 |
Work in progress | 2,119 | 1,866 |
Finished goods | 4,187 | 5,306 |
Supplies | 1,063 | 1,034 |
Total Inventories | 20,618 | 21,058 |
Inventory reserve | -131 | -305 |
Net Inventories | 20,487 | $20,753 |
Derivatives_and_Other_Financia2
Derivatives and Other Financial Instruments (Schedule of Gross fair Market Value of Derivative Instruments) (Details) (Foreign Exchange Contract [Member], Not Designated As Hedging Instrument [Member]) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Other Current Assets [Member] | Accrued Liabilities [Member] |
MYR | USD ($) | |
Derivatives, Fair Value [Line Items] | ' | ' |
Contract to market recorded as current assets | 21 | ' |
Derivative liability, Fair value gross liability | ' | $14 |
Derivatives_and_Other_Financia3
Derivatives and Other Financial Instruments (Schedule of Gain (Loss) Recognized in Income) (Details) (MYR) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' |
Derivatives, Gain Recognized in Income | -21 | 23 | 2 | 1 |
Derivatives_and_Other_Financia4
Derivatives and Other Financial Instruments (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
MYR | MYR | MYR | MYR | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | Accrued Liabilities [Member] | |
Not Designated As Hedging Instrument [Member] | Not Designated As Hedging Instrument [Member] | Not Designated As Hedging Instrument [Member] | Not Designated As Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | |||||
Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Not Designated As Hedging Instrument [Member] | Not Designated As Hedging Instrument [Member] | |||||
MYR | MYR | MYR | MYR | MYR | USD ($) | |||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives, Gain Recognized in Income | -21 | 23 | 2 | 1 | 21 | 23 | 2 | 1 | ' | ' |
Derivative asset, Fair value gross asset | ' | ' | ' | ' | ' | ' | ' | ' | 21 | ' |
Derivative liability, Fair value gross liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14 |