Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 06, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | TOR MINERALS INTERNATIONAL INC | |
Entity Central Index Key | 842,295 | |
Document Type | 10-Q | |
Trading Symbol | torm | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
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 | 3,596,325 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
NET SALES | $ 9,572 | $ 10,115 |
Cost of sales | 8,247 | 9,221 |
GROSS MARGIN | 1,325 | 894 |
Technical services, research and development | 38 | 55 |
Selling, general and administrative expenses | 842 | $ 1,052 |
Gain on disposal of assets | (1) | |
OPERATING INCOME (LOSS) | 446 | $ (213) |
OTHER EXPENSE: | ||
Interest expense, net | (50) | (80) |
Gain (loss) on foreign currency exchange rate | (89) | $ 22 |
Other, net | 12 | |
Total Other Expense | (127) | $ (58) |
INCOME (LOSS) BEFORE INCOME TAX | 319 | (271) |
Income tax expense (benefit) | 75 | (81) |
NET INCOME (LOSS) | $ 244 | $ (190) |
Earnings (loss) per common share: | ||
Basic | $ 0.08 | $ (0.06) |
Diluted | $ 0.08 | $ (0.06) |
Weighted average common shares outstanding: | ||
Basic | 3,014 | 3,014 |
diluted | 3,187 | 3,014 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME (LOSS) | $ 244 | $ (190) |
Currency translation adjustment, net of tax: | ||
Net foreign currency translation adjustment gain (loss) | 904 | (1,624) |
Other comprehensive income (loss), net of tax | 904 | (1,624) |
COMPREHENSIVE INCOME (LOSS) | $ 1,148 | $ (1,814) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,704 | $ 813 |
Trade accounts receivable, net | 4,360 | 3,534 |
Inventories, net | 12,839 | 13,988 |
Other current assets | 942 | 878 |
Total current assets | 19,845 | 19,213 |
PROPERTY, PLANT AND EQUIPMENT, net | $ 17,926 | 17,472 |
DEFERRED TAX ASSET, foreign | 19 | |
OTHER ASSETS | $ 4 | 4 |
Total Assets | 37,775 | 36,708 |
CURRENT LIABILITIES: | ||
Accounts payable | 2,476 | 2,432 |
Accrued expenses | $ 1,243 | 1,007 |
Notes payable under lines of credit | 179 | |
Export credit refinancing facility | $ 923 | 1,108 |
Current maturities of long-term debt - financial institutions | 1,466 | 1,485 |
Total current liabilities | 6,108 | 6,211 |
LONG-TERM DEBT - FINANCIAL INSTITUTIONS | 3,473 | 3,479 |
DEFERRED TAX LIABILITY, domestic | 184 | $ 262 |
DEFERRED TAX LIABILITY, foreign | 57 | |
Total liabilities | $ 9,822 | $ 9,952 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Common stock $1.25 par value: authorized, 6,000 shares; 3,014 shares issued and outstanding at March 31, 2016 and December 31, 2015 | $ 3,767 | $ 3,767 |
Additional paid-in capital | 29,685 | 29,636 |
Retained earnings (deficit) | (5,021) | (5,265) |
Accumulated other comprehensive loss | (478) | (1,382) |
Total shareholders' equity | 27,953 | 26,756 |
Total Liabilities and Shareholders' Equity | $ 37,775 | $ 36,708 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
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 Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | $ 244 | $ (190) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 633 | $ 701 |
Gain on disposal of assets | (1) | |
Stock-based compensation | 49 | $ 29 |
Deferred income tax benefit | (5) | $ (49) |
Inventory reserve | 16 | |
Provision for bad debts | (273) | |
Changes in working capital: | ||
Trade accounts receivables | (426) | $ 248 |
Inventories | 1,813 | 2,924 |
Other current assets | (26) | (360) |
Accounts payable and accrued expenses | (127) | (1,130) |
Net cash provided by operating activities | 1,897 | 2,173 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, plant and equipment | (228) | (1,593) |
Net cash used in investing activities | (228) | (1,593) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from lines of credit | 4 | 1,141 |
Payments on lines of credit | (202) | (655) |
Proceeds from export credit refinancing facility | 523 | 2,370 |
Payments on export credit refinancing facility | (828) | (2,973) |
Payments on long-term bank debt | (313) | (244) |
Net cash used in financing activities | (816) | (361) |
Effect of foreign currency exchange rate fluctuations on cash and cash equivalents | 38 | (197) |
Net increase in cash and cash equivalents | 891 | 22 |
Cash and cash equivalents at beginning of period | 813 | 2,657 |
Cash and cash equivalents at end of period | 1,704 | 2,679 |
Supplemental cash flow disclosures: | ||
Interest paid | 28 | 80 |
Income taxes paid | 9 | $ 15 |
Non-cash financing activities: | ||
Capital expenditures financed through accounts payable and accrued expenses | $ 260 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policies | Note 1. Accounting Policies Basis of Presentation and Use of Estimates The accompanying interim 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, 2015, in our Annual Report on Form 10-K filed with the SEC on March 7, 2016. Operating results for the three month period ended March 31, 2016, are not necessarily indicative of the results for the year ending December 31, 2016. 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 income tax benefit of approximately $81,000, state income tax expense of approximately $5,000 and foreign tax expense of approximately $151,000 for the three month period ended March 31, 2016, as compared to a federal and state tax benefit of approximately $55,000 and $2,000, respectively, and foreign tax benefit of approximately $24,000 for the same three month period in 2015. 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, 2012 through December 31, 2015. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2011 through December 31, 2015. Our tax returns in various non-U.S. jurisdictions are subject to examination for various tax years dating back to December 31, 2011. As of January 1, 2016, we did not have any unrecognized tax benefits and there was no change during the three month period ended March 31, 2016. In addition, we did not recognize any interest and penalties in our financial statements during the three month period ended March 31, 2016. 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, 2016 | |
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, 2016 and December 31, 2015, in thousands: March 31, 2016 December 31, 2015 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at March 31, 2016, due July 1, 2029, secured by TPT's land and buildings. (Balance in Euro at March 31, 2016, 212) $ 241 $ 235 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at March 31, 2016, due January 31, 2030, secured by TPT's land and buildings. (Balance in Euro at March 31, 2016, 238) 271 264 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.0% per annum, due December 31, 2025, is secured by TPT's land and buildings. (Balance in Euro at March 31, 2016, 975) 1,110 1,087 Variable rate Euro term note payable to a Netherlands bank, with a EURIBOR interest rate plus bank margin of 2.3% per annum, due December 31, 2020, is secured by substantially all of TPT's assets. (Balance in Euro at March 31, 2016, 2,232) 2,543 2,554 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, which was 5.2% at March 31, 2016, due October 25, 2018, secured by TMM's property, plant and equipment. (Balance in Ringgit at March 31, 2016, RM 3,000) 774 756 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, which was 5.2% at March 31, 2016, secured by TMM's property, plant and equipment. Paid in full at maturity, March 31, 2016. - 68 Total 4,939 4,964 Less current maturities 1,466 1,485 Total long-term debt - financial institutions $ 3,473 $ 3,479 Short-term Debt U.S. Operations On December 31, 2010, the Company entered into a credit agreement (the Agreement) with American Bank, N.A. (the Lender) which established a $1,000,000 line of credit (the Line), and on March 1, 2012, the Line was increased from $1,000,000 to $2,000,000. On May 15, 2013, the Company and the Lender entered into the Second Amendment to the Agreement which reduced the minimum interest rate floor from 5.5% to 4.5%. On May 15, 2015, the Company and the Lender entered into the Fifth Amendment to the Agreement which extended the Line from October 15, 2015 to October 15, 2016. On December 30, 2015, the Company and the Lender entered into the Sixth Amendment to the Agreement. Under the terms of the Sixth Amendment, the Company is required to maintain positive net earnings before taxes, interest, depreciation, amortization and all other non-cash charges on a rolling four-quarter basis. The Company was in compliance with all covenants at March 31, 2016. 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, 2016, no funds were outstanding on the Line. European Operations On July 13, 2015, TPT amended the short-term banking facility (the Amended Agreement) with Rabobank. Under the terms of the Amended Agreement, the line of credit was reduced from 1,100,000 to 500,000 ($1,253,000 to $569,000 at 3/31/2016) and interest was changed from a variable interest rate of bank prime plus 2.8% to the average 1-month EURIBOR plus the bank margin of 3.3%, which was 3.03% at March 31, 2016. No funds were outstanding on the TPT line of credit at March 31, 2016. Asian Operations On August 24, 2015, TMM amended its short-term banking facility with HSBC to extend the maturity date from June 30, 2015 to June 30, 2016. The HSBC facility includes the following in RM: (1) overdraft of RM 500,000 ($129,000 at 3/31/2016); (2) an import/export line (ECR) of RM 10,460,000 ($2,697,000 at 3/31/2016); and (3) a foreign exchange contract limit of RM 5,000,000 ($1,289,000 at 3/31/2016). At March 31, 2016, the outstanding balance on the ECR was RM 3,578,000 ($923,000 at 3/31/2016) and at a current interest rate of 4.47%. 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, 2017. The RHB facility includes the following: (1) an overdraft line of credit up to RM 1,000,000 ($258,000 at 3/31/2016); (2) an ECR of RM 7,300,000 ($1,882,000 at 3/31/2016); (3) a bank guarantee of RM 1,200,000 ($309,000 at 3/31/2016); and (4) a foreign exchange contract limit of RM 25,000,000 ($6,446,000 at 3/31/2016). At March 31, 2016, no funds were outstanding on the RHB facility. 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, are used by TMM for short-term financing of up to 180 days against customers and inter-company shipments. 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 provides 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 TMMs 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, 2016 | |
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, 2016 and December 31, 2015. The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at March 31, 2016 or at December 31, 2015. Fair Value Measurements (In Thousands) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Current Asset March 31, 2016 Currency forward contracts $ 2 $ - $ 2 $ - Current Liability December 31, 2015 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 rates included under Other Expense on the Companys 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 Companys debt is based on estimates using standard pricing models and Level 2 inputs, including the Companys 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 Companys long-term debt, including current maturities, are summarized below: March 31, 2016 December 31, 2015 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion $ 4,939 $ 4,425 $ 4,964 $ 4,438 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, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4. Inventories Following is a summary of inventory at March 31, 2016 and December 31, 2015, in thousands: March 31, December 31, 2016 2015 Raw materials $ 4,720 $ 6,310 Work in progress 4,056 4,168 Finished goods 4,099 3,552 Supplies 846 784 Total Inventories 13,721 14,814 Inventory reserve (882) (826) Net Inventories $ 12,839 $ 13,988 |
Calculation of Basic and Dilute
Calculation of Basic and Diluted Earnings per Share | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Numerator: Net Income (Loss) - basic and diluted $ 244 $ (190) Denominator: Denominator for basic earnings (loss) per share - weighted-average shares 3,014 3,014 Effect of dilutive securities: Employee stock options 1 - Warrants 172 - Dilutive potential common shares 173 - Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions 3,187 3,014 Basic earnings (loss) per common share $ 0.08 $ (0.06) Diluted earnings (loss) per common share $ 0.08 $ (0.06) For the three month period ended March 31, 2015, approximately 528,000 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. For the three month period ended March 31, 2016, approximately 359,000 employee stock options were excluded from the calculation of diluted earnings per share as the exercise price was greater than the market price of the common shares and, therefore, the effect would be anti-dilutive. For the three month period ended March 31, 2015, approximately 147,000 employee stock options were excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Note 6. Segment Information The Company and its subsidiaries operate in the business of pigment manufacturing and related products in three geographic segments United States, European and Asian. Product sales of inventory between the U.S., European and Asian operations are based on inter-company pricing, which includes an inter-company profit margin. The segment profit (loss) included in the table below, from each location 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 Companys 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 consist primarily of ALUPREM®, Synthetic Rutile, HITOX® and TIOPREM®. A summary of the Companys manufacturing operations by geographic segment is presented below: (In Thousands) United States (Corpus Christi) Europe (TPT) Asia (TMM) Inter-Company Eliminations Consolidated As of and for the three months ended: March 31, 2016 Net Sales: Customer sales $ 6,491 $ 2,435 $ 646 $ - $ 9,572 Intercompany sales 53 1,360 1,572 (2,985) - Total Net Sales $ 6,544 $ 3,795 $ 2,218 $ (2,985) $ 9,572 Segment income (loss) $ (33) $ 320 $ 41 $ (84) $ 244 Segments assets $ 15,967 $ 14,513 $ 7,295 $ - $ 37,775 March 31, 2015 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 Segment income (loss) $ (18) $ (93) $ (99) $ 20 $ (190) Segment assets $ 18,192 $ 10,212 $ 15,709 $ - $ 44,113 Our chief operating decision maker, or CODM, regularly reviews financial information about our segments in order to allocate resources and evaluate performance. Our CODM assesses segment performance based on Segment sales and Segment Adjusted EBITDA. Following is a summary of adjusted EBITDA by segment and consolidated for the three month periods ended March 31, 2016 and 2015. (In thousands) United States (Corpus Christi) European (TPT) Asian (TMM) Inter-Company Eliminations Consolidated As of and for the three months ended: March 31, 2016 Net Income (Loss) $ (33) $ 320 $ 41 $ (84) $ 244 Adjustments: Depreciation and amortization 265 333 35 633 Stock-based compensation 49 - - - 49 Interest expense, net - 29 21 50 Bad debt expense (21) (252) - (273) Income tax (benefit) expense (76) 78 - 73 75 Adjusted EBITDA $ 184 $ 508 $ 97 $ (11) $ 778 March 31, 2015 Net Income (Loss) $ (18) $ (93) $ (99) $ 20 $ (190) Adjustments: Depreciation and amortization 243 284 174 701 Stock-based compensation 29 - - - 29 Interest expense 5 11 64 80 Income tax (benefit) expense (57) (29) - 5 (81) Adjusted EBITDA $ 202 $ 173 $ 139 $ 25 $ 539 |
Stock Options and Equity Compen
Stock Options and Equity Compensation Plan | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and 2015, the Company recorded stock-based employee compensation expense of $49,000 and $29,000, respectively. This compensation expense is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. The Company granted 215,000 stock options during the three month period ended March 31, 2016. No options were granted during the same three month period of 2015. As of March 31, 2016, there was approximately $602,000 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 4.22 years. |
Derivatives and Other Financial
Derivatives and Other Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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 currency 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, 2016, we marked these contracts to market, recording $2,000 as a current asset on the consolidated balance sheets. The following table summarizes the gross fair market value of all derivative instruments, which are not designated as hedging instruments and their location in our consolidated balance sheets at March 31, 2016 and December 31, 2015, in thousands: Asset Derivatives Derivative Instrument Location March 31, 2016 December 31, 2015 Foreign Currency Exchange Contracts Other Current Assets $ 2 $ - Liability Derivatives Derivative Instrument Location March 31, 2016 December 31, 2015 Foreign Currency Exchange Contracts Accrued Expenses $ - $ 6 For the three month period ended March 31, 2016, we did not incur a gain or loss on these contracts; however, during the three month period ended March 31, 2015, we recorded a net gain of $11,000, as a component of our net loss. The following table summarizes, in thousands, the impact of the Companys derivatives on the consolidated financial statements of operations for the three month periods ended March 31, 2016 and 2015: Amount of Gain Recognized in Operations Derivative Location of Gain on Derivative Three Months Ended March 31, Instrument Instrument 2016 2015 Foreign Currency Exchange Contracts Gain on foreign currency exchange rate $ - $ 11 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9. Subsequent Events As reported in the Companys filing on Form 8-K filed with the Securities and Exchange Commission on May 2, 2016, three holders, two of whom are directors of the Company and another of whom is a greater than 5% shareholder, exercised 377,360 warrants which were issued in August 2009 on April 29, 2016. In addition, several other holders exercised 128,304 warrants on April 27, 2016. Upon exercise and receipt of the aggregate exercise price of $1,340,010, the Company will issue 505,664 shares of common stock to the investors. The Company will use the proceeds for working capital purposes. No underwriters were involved in the foregoing sale of securities. The common stock to be issued upon exercise of the warrants was issued in reliance upon the exemption from registration provided by Section 4(2) under the Securities Act of 1933, as amended, based on the private sale of securities. The sale of the common stock issued upon exercise of these warrants was registered with the Securities and Exchange Commission (the SEC) on Form S-3 (Registration No. 333-175054), filed with the SEC on June 30, 2011. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying interim 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, 2015, in our Annual Report on Form 10-K filed with the SEC on March 7, 2016. Operating results for the three month period ended March 31, 2016, are not necessarily indicative of the results for the year ending December 31, 2016. |
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 income tax benefit of approximately $81,000, state income tax expense of approximately $5,000 and foreign tax expense of approximately $151,000 for the three month period ended March 31, 2016, as compared to a federal and state tax benefit of approximately $55,000 and $2,000, respectively, and foreign tax benefit of approximately $24,000 for the same three month period in 2015. 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, 2012 through December 31, 2015. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2011 through December 31, 2015. Our tax returns in various non-U.S. jurisdictions are subject to examination for various tax years dating back to December 31, 2011. As of January 1, 2016, we did not have any unrecognized tax benefits and there was no change during the three month period ended March 31, 2016. In addition, we did not recognize any interest and penalties in our financial statements during the three month period ended March 31, 2016. 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, 2016 | |
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, 2016 and December 31, 2015, in thousands: March 31, 2016 December 31, 2015 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at March 31, 2016, due July 1, 2029, secured by TPT's land and buildings. (Balance in Euro at March 31, 2016, 212) $ 241 $ 235 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at March 31, 2016, due January 31, 2030, secured by TPT's land and buildings. (Balance in Euro at March 31, 2016, 238) 271 264 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.0% per annum, due December 31, 2025, is secured by TPT's land and buildings. (Balance in Euro at March 31, 2016, 975) 1,110 1,087 Variable rate Euro term note payable to a Netherlands bank, with a EURIBOR interest rate plus bank margin of 2.3% per annum, due December 31, 2020, is secured by substantially all of TPT's assets. (Balance in Euro at March 31, 2016, 2,232) 2,543 2,554 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, which was 5.2% at March 31, 2016, due October 25, 2018, secured by TMM's property, plant and equipment. (Balance in Ringgit at March 31, 2016, RM 3,000) 774 756 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, which was 5.2% at March 31, 2016, secured by TMM's property, plant and equipment. Paid in full at maturity, March 31, 2016. - 68 Total 4,939 4,964 Less current maturities 1,466 1,485 Total long-term debt - financial institutions $ 3,473 $ 3,479 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Valuation of Financial Instruments Recorded on a Fair Value Basis | The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at March 31, 2016 or at December 31, 2015. Fair Value Measurements (In Thousands) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Current Asset March 31, 2016 Currency forward contracts $ 2 $ - $ 2 $ - Current Liability December 31, 2015 Currency forward contracts $ 6 $ - $ 6 $ - |
Schedule of Carrying Amounts and Estimated Fair Values | The carrying amounts and estimated fair values of the Companys long-term debt, including current maturities, are summarized below: March 31, 2016 December 31, 2015 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion $ 4,939 $ 4,425 $ 4,964 $ 4,438 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Following is a summary of inventory at March 31, 2016 and December 31, 2015, in thousands: March 31, December 31, 2016 2015 Raw materials $ 4,720 $ 6,310 Work in progress 4,056 4,168 Finished goods 4,099 3,552 Supplies 846 784 Total Inventories 13,721 14,814 Inventory reserve (882) (826) Net Inventories $ 12,839 $ 13,988 |
Calculation of Basic and Dilu20
Calculation of Basic and Diluted Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Numerator: Net Income (Loss) - basic and diluted $ 244 $ (190) Denominator: Denominator for basic earnings (loss) per share - weighted-average shares 3,014 3,014 Effect of dilutive securities: Employee stock options 1 - Warrants 172 - Dilutive potential common shares 173 - Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions 3,187 3,014 Basic earnings (loss) per common share $ 0.08 $ (0.06) Diluted earnings (loss) per common share $ 0.08 $ (0.06) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | A summary of the Companys manufacturing operations by geographic segment is presented below: (In Thousands) United States (Corpus Christi) Europe (TPT) Asia (TMM) Inter-Company Eliminations Consolidated As of and for the three months ended: March 31, 2016 Net Sales: Customer sales $ 6,491 $ 2,435 $ 646 $ - $ 9,572 Intercompany sales 53 1,360 1,572 (2,985) - Total Net Sales $ 6,544 $ 3,795 $ 2,218 $ (2,985) $ 9,572 Segment income (loss) $ (33) $ 320 $ 41 $ (84) $ 244 Segments assets $ 15,967 $ 14,513 $ 7,295 $ - $ 37,775 March 31, 2015 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 Segment income (loss) $ (18) $ (93) $ (99) $ 20 $ (190) Segment assets $ 18,192 $ 10,212 $ 15,709 $ - $ 44,113 Following is a summary of adjusted EBITDA by segment and consolidated for the three month periods ended March 31, 2016 and 2015. (In thousands) United States (Corpus Christi) European (TPT) Asian (TMM) Inter-Company Eliminations Consolidated As of and for the three months ended: March 31, 2016 Net Income (Loss) $ (33) $ 320 $ 41 $ (84) $ 244 Adjustments: Depreciation and amortization 265 333 35 633 Stock-based compensation 49 - - - 49 Interest expense, net - 29 21 50 Bad debt expense (21) (252) - (273) Income tax (benefit) expense (76) 78 - 73 75 Adjusted EBITDA $ 184 $ 508 $ 97 $ (11) $ 778 March 31, 2015 Net Income (Loss) $ (18) $ (93) $ (99) $ 20 $ (190) Adjustments: Depreciation and amortization 243 284 174 701 Stock-based compensation 29 - - - 29 Interest expense 5 11 64 80 Income tax (benefit) expense (57) (29) - 5 (81) Adjusted EBITDA $ 202 $ 173 $ 139 $ 25 $ 539 |
Derivatives and Other Financi22
Derivatives and Other Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 consolidated balance sheets at March 31, 2016 and December 31, 2015, in thousands: Asset Derivatives Derivative Instrument Location March 31, 2016 December 31, 2015 Foreign Currency Exchange Contracts Other Current Assets $ 2 $ - Liability Derivatives Derivative Instrument Location March 31, 2016 December 31, 2015 Foreign Currency Exchange Contracts Accrued Expenses $ - $ 6 |
Schedule of Derivative Instruments | The following table summarizes, in thousands, the impact of the Companys derivatives on the consolidated financial statements of operations for the three month periods ended March 31, 2016 and 2015: Amount of Gain Recognized in Operations Derivative Location of Gain on Derivative Three Months Ended March 31, Instrument Instrument 2016 2015 Foreign Currency Exchange Contracts Gain on foreign currency exchange rate $ - $ 11 |
Accounting Policies (Details Na
Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accounting Policies [Abstract] | ||
Federal income tax benefit | $ 81,000 | $ 55,000 |
State income tax benefit | 5,000 | 2,000 |
Foreign income tax benefit | $ 151,000 | $ 24,000 |
Debt and Notes Payable (Details
Debt and Notes Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total | $ 4,939 | $ 4,964 |
Less current maturities | 1,466 | 1,485 |
Total long-term debt - financial institutions | 3,473 | 3,479 |
Fixed Rate Notes Payable to Rabobank Due July 1, 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Total | 241 | 235 |
Fixed Rate Notes Payable to Rabobank Due January 31, 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Total | 271 | 264 |
Fixed Rate Notes Payable to Rabobank Due December 31, 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Total | 1,110 | 1,087 |
Variable Notes Payable to Rabobank with EURIBOR Interest Rate Due December 31, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total | 2,543 | 2,554 |
Term Notes Payable to HSBC Bank Malaysia Berhad Due October 25, 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 774 | 756 |
Term Notes Payable to HSBC Bank Malaysia Berhad Due March 31, 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 68 |
Debt and Notes Payable (Detai25
Debt and Notes Payable (Details Narrative) - USD ($) $ in Thousands | Jul. 13, 2015 | Aug. 15, 2014 | May. 15, 2013 | Mar. 01, 2012 | Aug. 24, 2015 | Dec. 31, 2010 | Mar. 31, 2016 | Mar. 31, 2015 |
Debt Instrument [Line Items] | ||||||||
Proceeds from lines of credit | $ 4 | $ 1,141 | ||||||
Fixed Rate Notes Payable to Rabobank Due July 1, 2029 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt - financial institutions | $ 2,000 | |||||||
Interest rate (in percent) | 5.50% | |||||||
EURO [Member] | Term Loan Notes Payable to Rabobank Due March 31, 2016 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt - financial institutions | $ 2,350 | |||||||
Line Of Credit RHB Bank Berhad [Member] | Bank Overdrafts [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Description of interest rate terms | 1.25% over bank prime | |||||||
Line Of Credit RHB Bank Berhad [Member] | Bank Overdrafts [Member] | USD [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 258 | $ 129 | ||||||
Lines of credit expiration date | Mar. 24, 2015 | |||||||
Line Of Credit RHB Bank Berhad [Member] | Bank Overdrafts [Member] | RM [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 1,000 | |||||||
Lines of credit expiration date | Apr. 21, 2017 | |||||||
Line Of Credit RHB Bank Berhad [Member] | Foreign Exchange Contract [Member] | USD [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 6,446 | |||||||
Line Of Credit RHB Bank Berhad [Member] | Foreign Exchange Contract [Member] | RM [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | 25,000 | |||||||
Line Of Credit RHB Bank Berhad [Member] | Bank Guarantee [Member] | USD [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | 309 | |||||||
Line Of Credit RHB Bank Berhad [Member] | Bank Guarantee [Member] | RM [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | 1,200 | |||||||
Line Of Credit RHB Bank Berhad [Member] | Import & Export Line (ECR facilities) [Member] | USD [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | 1,882 | $ 923 | ||||||
Line Of Credit RHB Bank Berhad [Member] | Import & Export Line (ECR facilities) [Member] | RM [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Description of interest rate terms | bear interest at 1.0% above the funding rate stipulated by the Export-Import Bank of Malaysia Berhad. | |||||||
Short term line of credit | $ 7,300 | $ 3,578 | ||||||
Lines of credit interest rate (in percent) | 4.47% | |||||||
Line Of Credit HSBC Facility [Member] | Bank Overdrafts [Member] | RM [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 500 | |||||||
Lines of credit expiration date | Jun. 30, 2015 | |||||||
Line Of Credit HSBC Facility [Member] | Foreign Exchange Contract [Member] | USD [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 1,289 | |||||||
Line Of Credit HSBC Facility [Member] | Foreign Exchange Contract [Member] | RM [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 5,000 | |||||||
Line Of Credit HSBC Facility [Member] | Import & Export Line (ECR facilities) [Member] | USD [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 2,697 | |||||||
Line Of Credit HSBC Facility [Member] | Import & Export Line (ECR facilities) [Member] | RM [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 10,460 | |||||||
Line Of Credit Rabobank [Member] | USD [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 1,253 | |||||||
Lines of credit expiration date | Jun. 30, 2016 | |||||||
Line Of Credit Rabobank [Member] | USD [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 569 | |||||||
Line Of Credit Rabobank [Member] | EURO [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Description of variable rate basis | variable interest rate of bank prime plus 2.8% to the average 1-month EURIBOR plus the bank margin of 3.3%, which was 3.03% at March 31, 2016. | |||||||
Line Of Credit Rabobank [Member] | EURO [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | 500 | |||||||
Line Of Credit Rabobank [Member] | EURO [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 1,100 | |||||||
Line Of Credit American Bank, N.A.[Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan balance | $ 0 | |||||||
Proceeds from lines of credit | $ 1,000 | |||||||
Line Of Credit American Bank, N.A.[Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 1,000 | |||||||
Lines of credit interest rate (in percent) | 4.50% | |||||||
Lines of credit expiration date | Oct. 15, 2015 | |||||||
Line Of Credit American Bank, N.A.[Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short term line of credit | $ 2,000 | |||||||
Lines of credit interest rate (in percent) | 5.50% | |||||||
Lines of credit expiration date | Oct. 15, 2016 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current Asset | ||
Currency forward contracts | $ 2 | |
Current Liability | ||
Currency forward contracts | $ 6 | |
Level 1 [Member] | ||
Current Asset | ||
Currency forward contracts | ||
Current Liability | ||
Currency forward contracts | ||
Level 2 [Member] | ||
Current Asset | ||
Currency forward contracts | $ 2 | |
Current Liability | ||
Currency forward contracts | $ 6 | |
Level 3 [Member] | ||
Current Asset | ||
Currency forward contracts | ||
Current Liability | ||
Currency forward contracts |
Fair Value Measurements (Deta27
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 4,939 | $ 4,964 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 4,425 | $ 4,438 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,720 | $ 6,310 |
Work in progress | 4,056 | 4,168 |
Finished goods | 4,099 | 3,552 |
Supplies | 846 | 784 |
Total Inventories | 13,721 | 14,814 |
Inventory reserve | (882) | (826) |
Net Inventories | $ 12,839 | $ 13,988 |
Calculation of Basic and Dilu29
Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator: | ||
Net Income (Loss) - basic and diluted | $ 244 | $ (190) |
Denominator: | ||
Denominator for basic earnings (loss) per share - weighted-average shares | 3,014 | 3,014 |
Effect of dilutive securities: | ||
Employee stock options | $ 1 | |
Warrants | $ 172 | |
Dilutive potential common shares | 173 | |
Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions | 3,187 | 3,014 |
Basic earnings (loss) per common share | $ 0.08 | $ (0.06) |
Diluted earnings (loss) per common share | $ 0.08 | $ (0.06) |
Calculation of Basic and Dilu30
Calculation of Basic and Diluted Earnings per Share (Details Narrative) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings | 359,000 | 147,000 |
Detachable Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings | 528,000 | |
Warrants exercise price | $ 2.65 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net Sales: | ||
Customer sales | $ 9,572 | $ 10,115 |
Intercompany sales | ||
Total Net Sales | $ 9,572 | $ 10,115 |
Segment income (loss) | 244 | (190) |
Segments assets | 37,775 | 44,113 |
United States (Corpus Christi) [Member] | ||
Net Sales: | ||
Customer sales | 6,491 | $ 7,070 |
Intercompany sales | 53 | |
Total Net Sales | 6,544 | $ 7,070 |
Segment income (loss) | (33) | (18) |
Segments assets | 15,967 | 18,192 |
European (TPT) [Member] | ||
Net Sales: | ||
Customer sales | 2,435 | 2,307 |
Intercompany sales | 1,360 | 952 |
Total Net Sales | 3,795 | 3,259 |
Segment income (loss) | 320 | (93) |
Segments assets | 14,513 | 10,212 |
Asian (TMM) [Member] | ||
Net Sales: | ||
Customer sales | 646 | 738 |
Intercompany sales | 1,572 | 2,096 |
Total Net Sales | 2,218 | 2,834 |
Segment income (loss) | 41 | (99) |
Segments assets | $ 7,295 | $ 15,709 |
Inter-Company Eliminations [Member] | ||
Net Sales: | ||
Customer sales | ||
Intercompany sales | $ (2,985) | $ (3,048) |
Total Net Sales | (2,985) | (3,048) |
Segment income (loss) | $ (84) | $ 20 |
Segments assets |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net Income (Loss) | $ 244 | $ (190) |
Adjustments: | ||
Depreciation and amortization | 633 | 701 |
Stock-based compensation | 49 | 29 |
Interest expense, net | 50 | 80 |
Bad debt expense | (273) | |
Income tax (benefit) expense | 75 | (81) |
Adjusted EBITDA | 778 | 539 |
United States (Corpus Christi) [Member] | ||
Net Income (Loss) | (33) | (18) |
Adjustments: | ||
Depreciation and amortization | 265 | 243 |
Stock-based compensation | $ 49 | 29 |
Interest expense, net | 5 | |
Bad debt expense | $ (21) | |
Income tax (benefit) expense | (76) | (57) |
Adjusted EBITDA | 184 | 202 |
European (TPT) [Member] | ||
Net Income (Loss) | 320 | (93) |
Adjustments: | ||
Depreciation and amortization | $ 333 | $ 284 |
Stock-based compensation | ||
Interest expense, net | $ 29 | $ 11 |
Bad debt expense | (252) | |
Income tax (benefit) expense | 78 | (29) |
Adjusted EBITDA | 508 | 173 |
Asian (TMM) [Member] | ||
Net Income (Loss) | 41 | (99) |
Adjustments: | ||
Depreciation and amortization | $ 35 | $ 174 |
Stock-based compensation | ||
Interest expense, net | $ 21 | $ 64 |
Bad debt expense | ||
Income tax (benefit) expense | ||
Adjusted EBITDA | $ 97 | $ 139 |
Inter-Company Eliminations [Member] | ||
Net Income (Loss) | $ (84) | $ 20 |
Adjustments: | ||
Depreciation and amortization | ||
Stock-based compensation | ||
Interest expense, net | ||
Bad debt expense | ||
Income tax (benefit) expense | $ 73 | $ 5 |
Adjusted EBITDA | $ (11) | $ 25 |
Stock Options and Equity Comp33
Stock Options and Equity Compensation Plan (Details Narrative) - Employee Stock Option [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stock-based employee compensation expense | $ 49,000 | $ 29,000 |
Unrecognized compensation expense related to non-vested awards | $ 602,000 | |
Unrecognized compensation expense recognized over a weighted average period | 4 years 2 months 19 days | |
Number of options granted to purchase shares of common stock | 215,000 | 0 |
Derivatives and Other Financi34
Derivatives and Other Financial Instruments (Details) - Accrued Expenses [Member] - Foreign Currency Exchange Contracts [Member] - Nondesignated [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 2 | |
Liability Derivatives | $ 6 |
Derivatives and Other Financi35
Derivatives and Other Financial Instruments (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Foreign Currency Exchange Contracts [Member] | Nondesignated [Member] | Foreign Currency Gain (Loss) [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amount of Gain Recognized in Operations | $ 11 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] $ in Thousands | May. 02, 2016USD ($)shares |
Aggregate exercise price | $ | $ 1,340,010 |
Common shares issued to the investors | 505,664 |
Directors and Shareholder [Member] | |
Warrants exercised | 377,360 |
Warrants issue date | Apr. 1, 2009 |
Warrants exercise date | Apr. 29, 2016 |
Shareholder [Member] | |
Warrants exercised | 128,304 |
Warrants exercise date | Apr. 27, 2016 |