Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 27, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | TOR MINERALS INTERNATIONAL INC | |
Entity Central Index Key | 842295 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,014,022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
NET SALES | $10,115 | $13,132 |
Cost of sales | 9,221 | 10,980 |
GROSS MARGIN | 894 | 2,152 |
Technical services, research and development | 55 | 46 |
Selling, general and administrative expenses | 1,052 | 1,113 |
OPERATING INCOME (LOSS) | -213 | 993 |
OTHER EXPENSE: | ||
Interest expense, net | -80 | -95 |
Gain (Loss) on foreign currency exchange rate | 22 | -4 |
Other, net | 5 | |
Total Other Expense | -58 | -94 |
INCOME (LOSS) BEFORE INCOME TAX | -271 | 899 |
Income tax (benefit) expense | -81 | 192 |
NET INCOME (LOSS) | ($190) | $707 |
Earnings (loss) per common share: | ||
Basic (in dollars per share) | ($0.06) | $0.23 |
Diluted (in dollars per share) | ($0.06) | $0.21 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 3,014 | 3,014 |
Diluted (in shares) | 3,014 | 3,413 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME (LOSS) | ($190) | $707 |
Currency translation adjustment, net of tax: | ||
Net foreign currency translation adjustment gain (loss) | -1,624 | 85 |
Other comprehensive gain (loss), net of tax | -1,624 | 85 |
COMPREHENSIVE INCOME (LOSS) | ($1,814) | $792 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $2,679 | $2,657 |
Trade accounts receivable, net | 4,533 | 4,915 |
Inventories, net | 16,485 | 20,175 |
Other current assets | 1,070 | 752 |
Current deferred tax asset, domestic | 37 | 37 |
Current deferred tax asset, foreign | 54 | 54 |
Total current assets | 24,858 | 28,590 |
PROPERTY, PLANT AND EQUIPMENT, net | 18,612 | 18,889 |
DEFERRED TAX ASSET, foreign | 623 | 662 |
OTHER ASSETS | 20 | 22 |
Total Assets | 44,113 | 48,163 |
CURRENT LIABILITIES: | ||
Accounts payable | 2,422 | 3,318 |
Accrued expenses | 1,271 | 1,832 |
Notes payable under lines of credit | 1,289 | 886 |
Export credit refinancing facility | 2,018 | 2,777 |
Current maturities of long-term debt - financial institutions | 1,002 | 1,113 |
Total current liabilities | 8,002 | 9,926 |
LONG-TERM DEBT - FINANCIAL INSTITUTIONS | 1,316 | 1,607 |
DEFERRED TAX LIABILITY, domestic | 568 | 618 |
Total liabilities | 9,886 | 12,151 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Common stock $1.25 par value: authorized, 6,000 shares; 3,014 shares issued and outstanding at March 31, 2015 and December 31, 2014 | 3,767 | 3,767 |
Additional paid-in capital | 29,532 | 29,503 |
Retained earnings | 909 | 1,099 |
Accumulated other comprehensive income: | ||
Cumulative translation adjustment | 19 | 1,643 |
Total shareholders' equity | 34,227 | 36,012 |
Total Liabilities and Shareholders' Equity | $44,113 | $48,163 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $1.25 | $1.25 |
Common stock, shares authorized | 6,000 | 6,000 |
Common stock, shares issued | 3,014 | 3,014 |
Common stock, shares outstanding | 3,014 | 3,014 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | ($190) | $707 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 701 | 847 |
Share-based compensation | 29 | 23 |
Deferred income tax (benefit) expense | -49 | 483 |
Provision for bad debts | -7 | |
Changes in working capital: | ||
Trade accounts receivables | 248 | -1,346 |
Inventories | 2,924 | 403 |
Other current assets | -360 | -509 |
Accounts payable and accrued expenses | -1,130 | 1,373 |
Net cash provided by operating activities | 2,173 | 1,974 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, plant and equipment | -1,593 | -449 |
Net cash used in investing activities | -1,593 | -449 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from lines of credit | 1,141 | 1,630 |
Payments on lines of credit | -655 | -1,682 |
Proceeds from export credit refinancing facility | 2,370 | 1,287 |
Payments on export credit refinancing facility | -2,973 | -3,058 |
Payments on capital leases | -5 | |
Proceeds from long-term bank debt | 236 | |
Payments on long-term bank debt | -244 | -304 |
Proceeds from the issuance of common stock and exercise of common stock options | 11 | |
Net cash used in financing activities | -361 | -1,885 |
Effect of foreign currency exchange rate fluctuations on cash and cash equivalents | -197 | 21 |
Net increase (decrease) in cash and cash equivalents | 22 | -339 |
Cash and cash equivalents at beginning of period | 2,657 | 2,920 |
Cash and cash equivalents at end of period | 2,679 | 2,581 |
Supplemental cash flow disclosures: | ||
Interest paid | 80 | 95 |
Income taxes paid | $15 | $37 |
Accounting_Policies
Accounting Policies | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Accounting Policies | Note 1. | Accounting Policies |
Basis of Presentation and Use of Estimates | ||
The accompanying unaudited interim condensed consolidated financial statements (the “financial statements”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The 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”). All significant intercompany transactions have been eliminated. 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 SEC rules and regulations. These financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2014, in our Annual Report on Form 10-K filed with the SEC on March 17, 2015. Operating results for the three month period ended March 31, 2015, are not necessarily indicative of the results for the year ending December 31, 2015. | ||
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 benefit of approximately $55,000 and $2,000, respectively, and a foreign tax benefit of approximately $24,000 for the three month period ended March 31, 2015, as compared to a federal and state tax expense of approximately $47,000 and $2,000, respectively, and foreign tax expense of approximately $143,000 for the same three month period in 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, 2014. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2010 through December 31, 2014. 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, 2015, we did not have any unrecognized tax benefits and there was no change during the three month period ended March 31, 2015. In addition, we did not recognize any interest and penalties in our financial statements during the three month period ended March 31, 2015. 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 | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
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, 2015 and December 31, 2014, in thousands: | |||||||||
March 31, | |||||||||
2015 | December 31, | ||||||||
(Unaudited) | 2014 | ||||||||
Fixed rate term note payable to a U.S. bank, with an interest rate of 5.5% at March 31, 2015, due January 1, 2016, secured by real estate, leasehold improvements, property, plant and equipment, inventory and accounts receivable of the Company’s U.S. Operation. | $ | 377 | $ | 486 | |||||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at March 31, 2015, due July 1, 2029, secured by TPT’s land and office building. (Balance in Euro at March 31, 2015, €236) | 248 | 286 | |||||||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at March 31, 2015, due January 31, 2030, secured by TPT’s land and building. (Balance in Euro at March 31, 2015, €262) | 276 | 316 | |||||||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, 5.2% at March 31, 2015, due March 1, 2016, secured by TMM’s property, plant and equipment. (Balance in Ringgit at March 31, 2015, RM 1,458) | 315 | 417 | |||||||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, 5.2% at March 31, 2015, due October 25, 2018, secured by TMM’s property, plant and equipment. (Balance in Ringgit at March 31, 2015, RM 4,250) | 1,102 | 1,215 | |||||||
Total | 2,318 | 2,720 | |||||||
Less current maturities | 1,002 | 1,113 | |||||||
Total long-term debt - financial institutions | $ | 1,316 | $ | 1,607 | |||||
Short-term Debt | |||||||||
U.S. Operations | |||||||||
On December 31, 2010, the Company’s U.S. Operation, located in Corpus Christi, Texas entered into a credit agreement, (the “Agreement”) with American Bank, N.A. (the “Lender”) which established a $1,000,000 line of credit (the “Line”), and on March 1, 2012, the Line was increased from $1,000,000 to $2,000,000. On May 15, 2013, the Company and the Lender entered into the second amendment which reduced the minimum interest rate floor on the Line from 5.5% to 4.5%. | |||||||||
On January 17, 2014, the Company entered into the third amendment (the “Third Amendment”) to the Agreement, 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 ended June 30, 2014, nine month period ended September 30, 2014, and twelve month period ended 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 all financial and non-financial covenants for the twelve month period ended March 31, 2015. | |||||||||
On August 1, 2014, the Company and the Lender entered into the fourth amendment to the Agreement which extended the Line from October 15, 2014 to October 15, 2015. Under the terms of the Agreement, as amended, the amount the Company is entitled to borrow under the Line is subject to a borrowing base, which is based on the loan value of the collateral pledged to the Lender to secure the indebtedness owing to the Lender by the Company. Amounts advanced under the Line bear interest at a variable rate equal to one percent per annum point above the Wall Street Journal Prime Rate as such prime rate changes from time to time, with a minimum floor rate of 4.5%. At March 31, 2015, no funds were outstanding on the Line. | |||||||||
European Operations | |||||||||
On March 20, 2007, 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 3.29%), is secured by TPT’s accounts receivable and inventory. At March 31, 2015, TPT had utilized €698,000 ($750,000) of its short-term Credit Facility. | |||||||||
TPT’s loan agreements covering the Credit Facility and term loans, included in long-term debt – financial institutions, include subjective acceleration clauses that allow Rabobank to accelerate payment if, in the judgment of the bank, there are adverse changes in our business. 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 August 31, 2014, TMM amended its short-term banking facility with 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 ($135,000); (2) an import/export line (“ECR”) of RM 10,460,000 ($2,822,000); and (3) a foreign exchange contract limit of RM 5,000,000 ($1,349,000). At March 31, 2015, the outstanding balance on the foreign exchange contract was RM 332,000 ($89,000) at a current interest rate of 2.465%. | |||||||||
On August 15, 2014, TMM amended its short term banking facility with RHB Bank Berhad (“RHB”) to extend the maturity date from March 24, 2014 to April 1, 2015. TMM is currently negotiating with RHB to extend the maturity date to April 21, 2016. The RHB facility includes the following: (1) an overdraft line of credit up to RM 1,000,000 ($269,000); (2) an ECR of RM 7,300,000 ($1,969,000); (3) a bank guarantee of RM 1,200,000 ($324,000); and (4) a foreign exchange contract limit of RM 25,000,000 ($6,745,000). At March 31, 2015, the outstanding balance on the foreign exchange contract was RM 1,668,000 ($450,000) at a current interest rate of 2.65%. | |||||||||
The banking facilities with both HSBC and RHB bear an interest rate on the respective overdraft facilities at 1.25% over bank prime and the respective ECR facilities bear interest at 1.0% above the funding rate stipulated by the Export-Import Bank of Malaysia Berhad. The ECR facilities, which are 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, 2015, the outstanding balance on the ECR facilities was RM 7,481,000 ($2,018,000) at a current interest rate of 4.85%. | |||||||||
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. 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. While repatriation is allowed in the form of dividends, 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, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
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, 2015 and December 31, 2014. The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at March 31, 2015 or at December 31, 2014. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
(In Thousands) | Total | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Current Liability | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Currency forward contracts | $ | 26 | $ | - | $ | 26 | $ | - | |||||||||
31-Mar-15 | |||||||||||||||||
Currency forward contracts | $ | 6 | $ | - | $ | 6 | $ | - | |||||||||
Our foreign currency derivative financial instruments mitigate foreign currency exchange risks and include forward contracts. The forward contracts are marked-to-market at each balance sheet date with any resulting gain or loss recognized in income as part of the gain or loss on foreign currency exchange rate included under “Other Expense” on the Company’s consolidated statement of operations. The fair value of the currency forward contracts is determined using Level 2 inputs based on the currency rate in effect at the end of the reporting period. | |||||||||||||||||
The fair value of the Company’s debt is based on estimates using standard pricing models and Level 2 inputs, including the Company’s estimated borrowing rate, that take into account the present value of future cash flows as of the consolidated balance sheet date. The computation of the fair value of these instruments is performed by the Company. The carrying amounts and estimated fair values of the Company’s long-term debt, including current maturities, are summarized below: | |||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||
(In Thousands) | Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | ||||||||||||||
Long-term debt, including current portion | $ | 2,318 | $ | 2,180 | $ | 2,720 | $ | 2,558 | |||||||||
The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, trade receivables, payables and accrued liabilities, accrued income taxes and short-term borrowings approximate fair values due to the short term nature of these instruments, accordingly, these items have been excluded from the above table. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Note 4. | Inventories | |||||||
Following is a summary of inventory at March 31, 2015 and December 31, 2014, in thousands: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 7,292 | $ | 8,465 | |||||
Work in progress | 4,628 | 6,126 | |||||||
Finished goods | 3,770 | 4,800 | |||||||
Supplies | 927 | 915 | |||||||
Total Inventories | 16,617 | 20,306 | |||||||
Inventory reserve | (132 | ) | (131 | ) | |||||
Net Inventories | $ | 16,485 | $ | 20,175 |
Calculation_of_Basic_and_Dilut
Calculation of Basic and Diluted Earnings per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings (loss) per common 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, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net Income (Loss) | $ | (190 | ) | $ | 707 | ||||
Numerator for basic earnings (loss) per share - income available to common shareholders | (190 | ) | 707 | ||||||
Effect of dilutive securities: | |||||||||
Numerator for diluted earnings (loss) per share - income available to common shareholders after assumed conversions | $ | (190 | ) | $ | 707 | ||||
Denominator: | |||||||||
Denominator for basic earnings (loss) per share - weighted-average shares | 3,014 | 3,014 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock options | - | 5 | |||||||
Warrants | - | 394 | |||||||
Dilutive potential common shares | - | 399 | |||||||
Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions | 3,014 | 3,413 | |||||||
Basic earnings (loss) per common share | $ | (0.06 | ) | $ | 0.23 | ||||
Diluted earnings (loss) per common share | $ | (0.06 | ) | $ | 0.21 | ||||
For the three month period ended March 31, 2015, approximately 528,300 detachable warrants were excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. The warrants, issued in May 2009 with our six percent (6%) convertible subordinated debentures, have an exercise price of $2.65 and a maturity date of May 4, 2016. | |||||||||
Employee stock options excluded from the calculation of diluted earnings per share for the three month periods ended March 31, 2015 and 2014, were approximately 147,700 and 105,000, respectively, as the effect would be anti-dilutive. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Segment Information | Note 6. | Segment Information | |||||||||||||||||||
The Company operates in the business of pigment manufacturing and related products in three geographic segments. All United States (“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 ALUPREM, Synthetic Rutile, HITOX and TIOPREM. | |||||||||||||||||||||
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: | |||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Net Sales: | |||||||||||||||||||||
Customer sales | $ | 7,070 | $ | 2,307 | $ | 738 | $ | - | $ | 10,115 | |||||||||||
Intercompany sales | - | 952 | 2,096 | (3,048 | ) | - | |||||||||||||||
Total Net Sales | $ | 7,070 | $ | 3,259 | $ | 2,834 | $ | (3,048 | ) | $ | 10,115 | ||||||||||
Location income (loss) | $ | (18 | ) | $ | (93 | ) | $ | (99 | ) | $ | 20 | $ | (190 | ) | |||||||
Location assets | $ | 18,192 | $ | 10,212 | $ | 15,709 | $ | - | $ | 44,113 | |||||||||||
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 (loss) | $ | 55 | $ | 544 | $ | 44 | $ | 64 | $ | 707 | |||||||||||
Location assets | $ | 18,337 | $ | 11,608 | $ | 23,498 | $ | - | $ | 53,443 |
Stock_Options_and_Equity_Compe
Stock Options and Equity Compensation Plan | 3 Months Ended | |
Mar. 31, 2015 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock Options and Equity Compensation Plan | Note 7. | Stock Options and Equity Compensation Plan |
For the three month periods ended March 31, 2015 and 2014, the Company recorded stock-based employee compensation expense of $30,000 and $23,000, 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, 2015 and 2014. | ||
As of March 31, 2015, there was approximately $344,000 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 2.43 years. | ||
As most options issued under the Company’s 2000 Incentive Stock Option Plan are incentive stock options, the Company does not receive any excess tax benefits relating to the compensation expense recognized on vested options. |
Derivatives_and_Other_Financia
Derivatives and Other Financial Instruments | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Derivatives and Other Financial Instruments | Note 8. | Derivatives and Other Financial Instruments | |||||||||
The Company has exposure to certain risks relating to its ongoing business operations, including financial, market, political and economic risks. The following discussion provides information regarding our exposure to the risks of changing foreign currency exchange rates. The Company has not entered into these contracts for trading or speculative purposes in the past, nor do we currently anticipate entering into such contracts for trading or speculative purposes in the future. The foreign exchange contracts are used to mitigate uncertainty and volatility and to cover underlying exposures. | |||||||||||
Foreign Currency Forward Contracts | |||||||||||
We manage the risk of changes in foreign currency exchange rates, primarily at our Malaysian operation, through the use of foreign currency contracts. Foreign exchange contracts are used to protect the Company from the risk that the eventual cash flows resulting from transactions in foreign currencies, including sales and purchases transacted in a currency other than the functional currency, will be adversely affected by changes in exchange rates. We report the fair value of the derivatives on our consolidated balance sheets and changes in the fair value are recognized in earnings in the period of the change. | |||||||||||
At March 31, 2015, we marked these contracts to market, recording $6,000 as a current liability on the condensed consolidated balance sheet. For the three month period ended March 31, 2014, we recorded a net gain $9,000 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 March 31, 2015 and December 31, 2014, in thousands: | |||||||||||
Liability Derivatives | |||||||||||
Derivative Instrument | Location | 31-Mar-15 | 31-Dec-14 | ||||||||
Foreign Currency Exchange Contracts | Accrued Expenses | $ | 6 | $ | 26 | ||||||
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, 2015 and 2014: | |||||||||||
Amount of Gain (Loss) Recognized in | |||||||||||
Operations | |||||||||||
Derivative | Location of Gain | Three Months Ended | |||||||||
(loss) on Derivative | March 31, | ||||||||||
Instrument | Instrument | 2015 | 2014 | ||||||||
Foreign Currency Exchange Contracts | Gain (loss) on foreign currency exchange rate | $ | (6 | ) | $ | 9 |
Accounting_Policies_Policies
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates |
The accompanying unaudited interim condensed consolidated financial statements (the “financial statements”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The 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”). All significant intercompany transactions have been eliminated. 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 SEC rules and regulations. These financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2014, in our Annual Report on Form 10-K filed with the SEC on March 17, 2015. Operating results for the three month period ended March 31, 2015, are not necessarily indicative of the results for the year ending December 31, 2015. | |
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 benefit of approximately $55,000 and $2,000, respectively, and a foreign tax benefit of approximately $24,000 for the three month period ended March 31, 2015, as compared to a federal and state tax expense of approximately $47,000 and $2,000, respectively, and foreign tax expense of approximately $143,000 for the same three month period in 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, 2014. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2010 through December 31, 2014. 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, 2015, we did not have any unrecognized tax benefits and there was no change during the three month period ended March 31, 2015. In addition, we did not recognize any interest and penalties in our financial statements during the three month period ended March 31, 2015. 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) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 March 31, 2015 and December 31, 2014, in thousands: | ||||||||
March 31, | |||||||||
2015 | December 31, | ||||||||
(Unaudited) | 2014 | ||||||||
Fixed rate term note payable to a U.S. bank, with an interest rate of 5.5% at March 31, 2015, due January 1, 2016, secured by real estate, leasehold improvements, property, plant and equipment, inventory and accounts receivable of the Company’s U.S. Operation. | $ | 377 | $ | 486 | |||||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at March 31, 2015, due July 1, 2029, secured by TPT’s land and office building. (Balance in Euro at March 31, 2015, €236) | 248 | 286 | |||||||
Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at March 31, 2015, due January 31, 2030, secured by TPT’s land and building. (Balance in Euro at March 31, 2015, €262) | 276 | 316 | |||||||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, 5.2% at March 31, 2015, due March 1, 2016, secured by TMM’s property, plant and equipment. (Balance in Ringgit at March 31, 2015, RM 1,458) | 315 | 417 | |||||||
Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, 5.2% at March 31, 2015, due October 25, 2018, secured by TMM’s property, plant and equipment. (Balance in Ringgit at March 31, 2015, RM 4,250) | 1,102 | 1,215 | |||||||
Total | 2,318 | 2,720 | |||||||
Less current maturities | 1,002 | 1,113 | |||||||
Total long-term debt - financial institutions | $ | 1,316 | $ | 1,607 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 March 31, 2015 and December 31, 2014. The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at March 31, 2015 or at December 31, 2014. | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
(In Thousands) | Total | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Current Liability | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Currency forward contracts | $ | 26 | $ | - | $ | 26 | $ | - | |||||||||
31-Mar-15 | |||||||||||||||||
Currency forward contracts | $ | 6 | $ | - | $ | 6 | $ | - | |||||||||
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: | ||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||
(In Thousands) | Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | ||||||||||||||
Long-term debt, including current portion | $ | 2,318 | $ | 2,180 | $ | 2,720 | $ | 2,558 |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory | Following is a summary of inventory at March 31, 2015 and December 31, 2014, in thousands: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 7,292 | $ | 8,465 | |||||
Work in progress | 4,628 | 6,126 | |||||||
Finished goods | 3,770 | 4,800 | |||||||
Supplies | 927 | 915 | |||||||
Total Inventories | 16,617 | 20,306 | |||||||
Inventory reserve | (132 | ) | (131 | ) | |||||
Net Inventories | $ | 16,485 | $ | 20,175 |
Calculation_of_Basic_and_Dilut1
Calculation of Basic and Diluted Earnings per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings (loss) 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 | ||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net Income (Loss) | $ | (190 | ) | $ | 707 | ||||
Numerator for basic earnings (loss) per share - income available to common shareholders | (190 | ) | 707 | ||||||
Effect of dilutive securities: | |||||||||
Numerator for diluted earnings (loss) per share - income available to common shareholders after assumed conversions | $ | (190 | ) | $ | 707 | ||||
Denominator: | |||||||||
Denominator for basic earnings (loss) per share - weighted-average shares | 3,014 | 3,014 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock options | - | 5 | |||||||
Warrants | - | 394 | |||||||
Dilutive potential common shares | - | 399 | |||||||
Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions | 3,014 | 3,413 | |||||||
Basic earnings (loss) per common share | $ | (0.06 | ) | $ | 0.23 | ||||
Diluted earnings (loss) per common share | $ | (0.06 | ) | $ | 0.21 |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | A summary of the Company’s manufacturing operations by geographic segment is presented below: | ||||||||||||||||||||
(In Thousands) | United States | Europe | Asia | Inter-Company | Consolidated | ||||||||||||||||
(Corpus Christi) | (TPT) | (TMM) | Eliminations | ||||||||||||||||||
As of and for the three months ended: | |||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Net Sales: | |||||||||||||||||||||
Customer sales | $ | 7,070 | $ | 2,307 | $ | 738 | $ | - | $ | 10,115 | |||||||||||
Intercompany sales | - | 952 | 2,096 | (3,048 | ) | - | |||||||||||||||
Total Net Sales | $ | 7,070 | $ | 3,259 | $ | 2,834 | $ | (3,048 | ) | $ | 10,115 | ||||||||||
Location income (loss) | $ | (18 | ) | $ | (93 | ) | $ | (99 | ) | $ | 20 | $ | (190 | ) | |||||||
Location assets | $ | 18,192 | $ | 10,212 | $ | 15,709 | $ | - | $ | 44,113 | |||||||||||
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 (loss) | $ | 55 | $ | 544 | $ | 44 | $ | 64 | $ | 707 | |||||||||||
Location assets | $ | 18,337 | $ | 11,608 | $ | 23,498 | $ | - | $ | 53,443 |
Derivatives_and_Other_Financia1
Derivatives and Other Financial Instruments (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
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 March 31, 2015 and December 31, 2014, in thousands: | ||||||||||
Liability Derivatives | |||||||||||
Derivative Instrument | Location | 31-Mar-15 | 31-Dec-14 | ||||||||
Foreign Currency Exchange Contracts | Accrued Expenses | $ | 6 | $ | 26 | ||||||
Schedule of Derivative Instruments | 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, 2015 and 2014: | ||||||||||
Amount of Gain (Loss) Recognized in | |||||||||||
Operations | |||||||||||
Derivative | Location of Gain | Three Months Ended | |||||||||
(loss) on Derivative | March 31, | ||||||||||
Instrument | Instrument | 2015 | 2014 | ||||||||
Foreign Currency Exchange Contracts | Gain (loss) on foreign currency exchange rate | $ | (6 | ) | $ | 9 |
Accounting_Policies_Details_Na
Accounting Policies (Details Narative) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accounting Policies Details Narative | ||
Federal income tax benefit | $55 | $47 |
State income tax benefit | 2 | 2 |
Foreign income tax benefit | $24 | $143 |
Debt_and_Notes_Payable_Details
Debt and Notes Payable (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total | $2,318 | $2,720 |
Less current maturities | 1,002 | 1,113 |
Total long-term debt - financial institutions | 1,316 | 1,607 |
Fixed Rate Notes Payable to American Bank, N.A. Due January 1, 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Total | 377 | 486 |
Fixed Rate Notes Payable to Rabobank Due July 1, 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Total | 248 | 286 |
Fixed Rate Notes Payable to Rabobank Due January 31, 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Total | 276 | 316 |
Term Notes Payable to HSBC Bank Malaysia Berhad Due March 1, 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Total | 315 | 417 |
Term Notes Payable to HSBC Bank Malaysia Berhad Due October 25, 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $1,102 | $1,215 |
Debt_and_Notes_Payable_Details1
Debt and Notes Payable (Details Narrative 1) (USD $) | 3 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Aug. 01, 2014 | 15-May-13 | Mar. 01, 2012 | Dec. 31, 2010 | Dec. 31, 2014 | Jan. 01, 2010 | Mar. 20, 2007 | Aug. 31, 2014 | Sep. 01, 2014 | Aug. 15, 2014 | Aug. 16, 2014 |
Debt Instrument [Line Items] | |||||||||||||
Proceeds from lines of credit | $1,141 | $1,630 | |||||||||||
Line Of Credit American Bank, N.A.[Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 2,000 | 1,000 | |||||||||||
Proceeds from lines of credit | 1,000 | ||||||||||||
Lines of credit interest rate (in percent) | 5.50% | 4.50% | |||||||||||
Lines of credit expiration date | 15-Oct-15 | 15-Oct-14 | |||||||||||
Description of variable rate basis | 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% | ||||||||||||
Line Of Credit Rabobank [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 750 | ||||||||||||
Description of variable rate basis | Variable interest rate of bank prime plus 2.8% (currently at 3.29%) | ||||||||||||
Description of line of credit collateral | Secured by TPT’s accounts receivable and inventory. | ||||||||||||
Line Of Credit Rabobank [Member] | EURO [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 698 | 1,100 | 650 | ||||||||||
Proceeds from lines of credit | 450 | ||||||||||||
Line Of Credit HSBC Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Lines of credit expiration date | 30-Apr-14 | 30-Jun-15 | |||||||||||
Line Of Credit HSBC Facility [Member] | Bank Overdrafts [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 135 | ||||||||||||
Line Of Credit HSBC Facility [Member] | Import & Export Line (ECR facilities) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 2,822 | ||||||||||||
Line Of Credit HSBC Facility [Member] | Foreign Exchange Contract [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 89 | 1,349 | |||||||||||
Lines of credit interest rate (in percent) | 2.47% | ||||||||||||
Line Of Credit HSBC Facility [Member] | RM [Member] | Bank Overdrafts [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 500 | ||||||||||||
Line Of Credit HSBC Facility [Member] | RM [Member] | Import & Export Line (ECR facilities) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 10,460 | ||||||||||||
Line Of Credit HSBC Facility [Member] | RM [Member] | Foreign Exchange Contract [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 332 | 5,000 | |||||||||||
Line Of Credit RHB Bank Berhad [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Lines of credit expiration date | 24-Mar-14 | 1-Apr-15 | |||||||||||
Line Of Credit RHB Bank Berhad [Member] | Bank Overdrafts [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 269 | ||||||||||||
Line Of Credit RHB Bank Berhad [Member] | Import & Export Line (ECR facilities) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 1,969 | ||||||||||||
Line Of Credit RHB Bank Berhad [Member] | Foreign Exchange Contract [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 450 | 6,745 | |||||||||||
Lines of credit interest rate (in percent) | 2.65% | ||||||||||||
Line Of Credit RHB Bank Berhad [Member] | Bank Guarantee [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 324 | ||||||||||||
Line Of Credit RHB Bank Berhad [Member] | RM [Member] | Bank Overdrafts [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 1,000 | ||||||||||||
Line Of Credit RHB Bank Berhad [Member] | RM [Member] | Import & Export Line (ECR facilities) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 7,300 | ||||||||||||
Line Of Credit RHB Bank Berhad [Member] | RM [Member] | Foreign Exchange Contract [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 1,668 | 25,000 | |||||||||||
Line Of Credit RHB Bank Berhad [Member] | RM [Member] | Bank Guarantee [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 1,200 | ||||||||||||
Line Of Credit HSBC Facility & RHB Bank Berhad [Member] | Bank Overdrafts [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Description of interest rate terms | 1.25% over bank prime | ||||||||||||
Line Of Credit HSBC Facility & RHB Bank Berhad [Member] | Import & Export Line (ECR facilities) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | 7,481 | ||||||||||||
Lines of credit interest rate (in percent) | 4.85% | ||||||||||||
Description of interest rate terms | Bear interest at 1.0% above the funding rate stipulated by the Export-Import Bank of Malaysia Berhad. | ||||||||||||
Line Of Credit HSBC Facility & RHB Bank Berhad [Member] | RM [Member] | Import & Export Line (ECR facilities) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Short term line of credit | $2,018 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Liability | ||
Currency forward contracts | $6 | $26 |
Level 1 [Member] | ||
Liability | ||
Currency forward contracts | ||
Level 2 [Member] | ||
Liability | ||
Currency forward contracts | 6 | 26 |
Level 3 [Member] | ||
Liability | ||
Currency forward contracts |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $2,318 | $2,720 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $2,180 | $2,558 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $7,292 | $8,465 |
Work in progress | 4,628 | 6,126 |
Finished goods | 3,770 | 4,800 |
Supplies | 927 | 915 |
Total Inventories | 16,617 | 20,306 |
Inventory reserve | -132 | -131 |
Net Inventories | $16,485 | $20,175 |
Calculation_of_Basic_and_Dilut2
Calculation of Basic and Diluted Earnings per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net Income (Loss) | ($190) | $707 |
Numerator for basic earnings (loss) per share - income available to common shareholders | -190 | 707 |
Effect of dilutive securities: | ||
Numerator for diluted earnings per share - loss available to common shareholders after assumed conversions | -190 | 707 |
Denominator: | ||
Denominator for basic earnings per share - weighted-average shares | 3,014 | 3,014 |
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 | 3,014 | 3,413 |
Basic earnings (loss) per common share (in dollars per share) | ($0.06) | $0.23 |
Diluted earnings (loss) per common share (in dollars per share) | ($0.06) | $0.21 |
Calculation_of_Basic_and_Dilut3
Calculation of Basic and Diluted Earnings per Share (Details Narrative) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Detachable Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings | 528,300 | |
Employee stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings | 147,700 | 105,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Net Sales: | |||
Customer sales | $10,115 | $13,132 | |
Intercompany sales | |||
Total Net Sales | 10,115 | 13,132 | |
Location income (loss) | -190 | 707 | |
Location assets | 44,113 | 53,443 | 48,163 |
United States (Corpus Christi) [Member] | |||
Net Sales: | |||
Customer sales | 7,070 | 7,946 | |
Intercompany sales | 57 | ||
Total Net Sales | 7,070 | 8,003 | |
Location income (loss) | -18 | 55 | |
Location assets | 18,192 | 18,337 | |
Netherlands (TPT) [Member] | |||
Net Sales: | |||
Customer sales | 2,307 | 2,715 | |
Intercompany sales | 952 | 1,835 | |
Total Net Sales | 3,259 | 4,550 | |
Location income (loss) | -93 | 544 | |
Location assets | 10,212 | 11,608 | |
Malaysia (TMM) [Member] | |||
Net Sales: | |||
Customer sales | 738 | 2,471 | |
Intercompany sales | 2,096 | 643 | |
Total Net Sales | 2,834 | 3,114 | |
Location income (loss) | -99 | 44 | |
Location assets | 15,709 | 23,498 | |
Inter-Company Eliminations [Member] | |||
Net Sales: | |||
Customer sales | |||
Intercompany sales | -3,048 | -2,535 | |
Total Net Sales | -3,048 | -2,535 | |
Location income (loss) | 20 | 64 | |
Location assets |
Stock_Options_and_Equity_Compe1
Stock Options and Equity Compensation Plan (Details Narrative) (2000 Incentive Stock Option Plan [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense related to non-vested awards | $344 | |
Compensation expense recognized over a weighted average period | 2 years 5 months 4 days | |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based employee compensation | $30 | $23 |
Derivatives_and_Other_Financia2
Derivatives and Other Financial Instruments (Details) (Accrued Expenses [Member], Foreign Currency Exchange Contracts [Member], Nondesignated [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Expenses [Member] | Foreign Currency Exchange Contracts [Member] | Nondesignated [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value gross asset | $6 | $26 |
Derivatives_and_Other_Financia3
Derivatives and Other Financial Instruments (Details 1) (Foreign Currency Exchange Contracts [Member], Nondesignated [Member], Foreign Currency Exchange Contracts [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Foreign Currency Exchange Contracts [Member] | Nondesignated [Member] | Foreign Currency Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amount of Gain (Loss) Recognized in Operations | ($6) | $9 |