Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
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 | Sep. 30, 2017 | |
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 | 3,541,703 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
NET SALES | $ 9,487 | $ 10,036 | $ 30,914 | $ 29,458 |
Cost of sales | 8,771 | 8,452 | 27,393 | 25,379 |
GROSS MARGIN | 716 | 1,584 | 3,521 | 4,079 |
Technical services, research and development | 55 | 56 | 141 | 146 |
Selling, general and administrative expenses | 1,081 | 1,068 | 3,490 | 2,972 |
Loss on disposal of assets | 0 | (4) | 0 | (3) |
OPERATING (LOSS) INCOME | (420) | 456 | (110) | 958 |
OTHER INCOME (EXPENSE): | ||||
Interest expense, net | (28) | (43) | (86) | (140) |
Gain (loss) on foreign currency exchange rate | 21 | 20 | (2) | (59) |
Other, net | 3 | 0 | 18 | 28 |
Total Other Expense | (4) | (23) | (70) | (171) |
(LOSS) INCOME BEFORE INCOME TAX | (424) | 433 | (180) | 787 |
Income tax expense | (95) | 142 | (71) | 165 |
NET (LOSS) INCOME | $ (329) | $ 291 | $ (109) | $ 622 |
(Loss) earnings per common share: | ||||
Basic | $ (0.09) | $ 0.08 | $ (0.03) | $ 0.19 |
Diluted | $ (0.09) | $ 0.08 | $ (0.03) | $ 0.18 |
Weighted average common shares outstanding: | ||||
Basic | 3,542 | 3,542 | 3,542 | 3,319 |
Diluted | 3,542 | 3,550 | 3,542 | 3,398 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
NET (LOSS) INCOME | $ (329) | $ 291 | $ (109) | $ 622 |
Currency translation adjustment, net of tax: | ||||
Net foreign currency translation adjustment gain (loss) | 387 | (110) | 1,273 | 456 |
Other comprehensive income (loss), net of tax | 387 | (110) | 1,273 | 456 |
COMPREHENSIVE (LOSS) INCOME | $ 58 | $ 181 | $ 1,164 | $ 1,078 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 2,550 | $ 3,716 |
Trade accounts receivable, net | 4,872 | 3,557 |
Inventories, net | 10,619 | 11,776 |
Other current assets | 1,330 | 742 |
Total current assets | 19,371 | 19,791 |
PROPERTY, PLANT AND EQUIPMENT, net | 17,569 | 15,907 |
DEFERRED TAX ASSET, foreign | 0 | 27 |
OTHER ASSETS | 4 | 4 |
Total Assets | 36,944 | 35,729 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,788 | 2,122 |
Accrued expenses | 1,937 | 1,136 |
Export credit refinancing facility | 0 | 206 |
Current maturities of long-term debt - financial institutions | 1,074 | 1,142 |
Total current liabilities | 4,799 | 4,606 |
LONG-TERM DEBT - FINANCIAL INSTITUTIONS | 2,525 | 2,725 |
DEFERRED TAX LIABILITY, domestic | 23 | 127 |
DEFERRED TAX LIABILITY, foreign | 46 | 0 |
Total liabilities | 7,393 | 7,458 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Common stock $1.25 par value: authorized, 6,000 shares; 3,542 shares issued and outstanding at September 30, 2017 and December 31, 2016 | 4,426 | 4,426 |
Additional paid-in capital | 30,660 | 30,544 |
Accumulated deficit | (4,930) | (4,821) |
Accumulated other comprehensive loss | (605) | (1,878) |
Total shareholders' equity | 29,551 | 28,271 |
Total Liabilities and Shareholders' Equity | $ 36,944 | $ 35,729 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
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 | 3,542 | 3,542 |
Common stock, shares outstanding | 3,542 | 3,542 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (109) | $ 622 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation | 2,047 | 1,916 |
Gain on disposal of assets | 0 | (3) |
Stock-based compensation | 115 | 130 |
Deferred income tax expense (benefit) | (31) | (61) |
Allowance for (recovery of) bad debts | 23 | (237) |
Changes in working capital: | ||
Trade accounts receivables | (1,151) | (751) |
Inventories | 1,557 | 1,105 |
Other current assets | (531) | (5) |
Accounts payable and accrued expenses | 39 | 341 |
Net cash provided by operating activities | 1,959 | 3,063 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, plant and equipment | (2,364) | (894) |
Net cash used in investing activities | (2,364) | (894) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from lines of credit | 0 | 85 |
Payments on lines of credit | 0 | (191) |
Proceeds from export credit refinancing facility | 0 | 1,853 |
Payments on export credit refinancing facility | (219) | (2,280) |
Payments on long-term bank debt | (713) | (765) |
Proceeds from the issuance of common stock through exercise of warrants | 0 | 1,398 |
Net cash (used in) provided by financing activities | (932) | 100 |
Effect of foreign currency exchange rate fluctuations on cash and cash equivalents | 171 | 0 |
Net (decrease) increase in cash and cash equivalents | (1,166) | 2,269 |
Cash and cash equivalents at beginning of period | 3,716 | 813 |
Cash and cash equivalents at end of period | 2,550 | 3,082 |
Supplemental cash flow disclosures: | ||
Interest paid | 89 | 113 |
Income taxes paid | 317 | 73 |
Non-cash financing activities: | ||
Capital expenditures financed through accounts payable and accrued expenses | $ 158 | $ 0 |
1. Accounting Policies
1. Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Accounting Policies | Basis of Presentation and Use of Estimates The accompanying 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, 2016, in our Annual Report on Form 10-K filed with the SEC on March 9, 2017. Operating results for the three and nine month periods ended September 30, 2017, are not necessarily indicative of the results for the year ending December 31, 2017. Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 changes how companies account for certain aspects of share based payment awards to employees, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. The adoption of this standard, which we adopted on January 1, 2017, did not have a material impact on the Company’s financial condition, results of operations or cash flows. New Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” as amended by multiple standards updates. The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and IFRS. The pronouncement is effective for reporting periods beginning after December 15, 2017. Based on the analysis completed to date, the Company does not expect the timing and pattern of the Company’s revenue recognition to materially change and as a result the Company does not anticipate material changes upon adoption of the standard; however, the Company is still in the process of evaluating the disclosure requirements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes all existing guidance on accounting for leases in ASC Topic 840. ASU 2016-02 is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. ASU 2016-02 will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. ASU 2016-02 is required to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. We are currently in the initial stages of evaluating the potential impact of adopting ASU 2016-02 on our financial statements and related disclosures. 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 $97,000 and foreign tax expense of approximately $2,000 for the three month period ended September 30, 2017, as compared to a federal tax expense of approximately $23,000, state tax expense of $1,000 and foreign tax expense of approximately $118,000 for the same three month period in 2016. For the nine month period ended September 30, 2017, income taxes consisted of federal income tax benefit of approximately $105,000, state income tax expense of approximately $3,000 and foreign tax expense of approximately $31,000, as compared to a federal tax benefit of approximately $71,000, state income tax expense of approximately $4,000 and foreign tax expense of approximately $232,000 for the same nine month period in 2016. 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, 2014 through December 31, 2016. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2012 through December 31, 2016. Our tax returns in various non-U.S. jurisdictions are subject to examination for various tax years dating back to December 31, 2012. As of January 1, 2017, we did not have any unrecognized tax benefits and there was no change during the three and nine month periods ended September 30, 2017. In addition, we did not recognize any interest and penalties in our financial statements during the three and nine month periods ended September 30, 2017. 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. |
2. Debt and Notes Payable
2. Debt and Notes Payable | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Notes Payable | Long-term Debt – Financial Institutions Following is a summary of our long-term debt to financial institutions as of September 30, 2017 and December 31, 2016, in thousands: September 30, 2017 December 31, 2016 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at September 30, 2017, due July 1, 2029, secured by TPT's land and buildings. (Euro balance at September 30, 2017, €183) $ 216 $ 206 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at September 30, 2017, due January 31, 2030, secured by TPT's land and buildings. (Euro balance at September 30, 2017, €210) 248 234 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. (Euro balance at September 30, 2017, €825) 975 947 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. The interest rate at September 30, 2017 was 2.3%. (Euro balance at September 30, 2017, €1,527) 1,805 1,978 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 2% above the bank base lending rate, due October 25, 2018, secured by TMM's property, plant and equipment. The interest rate at September 30, 2017 was 5.2%. (Ringgit balance at September 30, 2017, RM 1,500) 355 502 Total 3,599 3,867 Less current maturities 1,074 1,142 Total long-term debt - financial institutions $ 2,525 $ 2,725 Short-term Debt U.S. Operations On August 15, 2017, the Company entered into a new loan agreement (“Loan Agreement”) with American Bank, N.A. (the “Lender”) which replaced the original credit agreement with the Lender dated December 31, 2010 and the Amended Agreement dated June 23, 2016. Under the terms of the Loan Agreement, our line of credit (the “Line”) is reestablished at $1,000,000 and the maturity date is extended from October 15, 2017 to October 15, 2018. Under the terms of the Loan Agreement, 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 September 30, 2017. Under the terms of the Loan Agreement, 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 above the Wall Street Journal Prime Rate as such prime rate changes from time to time, with a minimum floor rate of 4.5%. At September 30, 2017, no funds were outstanding on the Line. European Operations O n J l 1 2 1 TP a m e e t sh t- ter a i facilit (t “TPT A m e e Agre e m e t” wit Ra o a k U e t ter m t Ame e A reeme t t TP li cre i wa ed ce ro ,1 0,00 t €5 0,00 ($1,300,00 t $591,000 n i te c h e fr i a l i te e t a n i m l . t t a r m t R B l t a m a i o 3 %. The interest rate a f n we o t tan in o t li o c e i Asian Operations On July 19, 2017, TMM amended its short-term banking facility with HSBC to extend the maturity date from June 30, 2017 to June 30, 2018. The HSBC facility includes the following in RM: (1) overdraft of RM 500,000 ($118,000 at September 30, 2017); (2) an import/export line (“ECR”) of RM 10,460,000 ($2,477,000 at September 30, 2017); and (3) a foreign exchange contract limit of RM 5,000,000 ($1,184,000 at September 30, 2017). At September 30, 2017, no funds were outstanding on the HSBC short-term banking facility. On October 12, 2017, TMM amended its short-term banking facility with RHB Bank Berhad (“RHB”) to extend the maturity date from August 11, 2017 to February 11, 2018. TMM is currently negotiating with RHB to extend the maturity date to February 21, 2018. The RHB facility includes the following: (1) a multi-trade line of RM 3,500,000 ($829,000 at September 30, 2017); (2) a bank guarantee of RM 1,200,000 ($284,000 at September 30, 2017); and (3) a foreign exchange contract line of RM 2,500,000 ($592,000 at September 30, 2017). At September 30, 2017, no funds were outstanding on the RHB short-term banking facility. The interest rate w a 4 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 facility 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 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. |
3. Fair Value Measurements
3. Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The following table summarizes the valuation of our financial instruments recorded on a fair value basis as of September 30, 2017 and December 31, 2016. The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at September 30, 2017 or at December 31, 2016. 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 September 30, 2017 Currency forward contracts $ 5 $ - $ 5 $ - Current Liability December 31, 2016 Currency forward contracts $ 2 $ - $ 2 $ - 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 Company’s consolidated statements 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: September 30, 2017 December 31, 2016 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion $ 3,599 $ 3,525 $ 3,867 $ 3,785 The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, trade receivables, payables and accrued liabilities 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. |
4. Inventories
4. Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Following is a summary of inventory at September 30, 2017 and December 31, 2016, in thousands: September 30, December 31, 2017 2016 Raw materials $ 4,109 $ 5,235 Work in progress 1,783 1,636 Finished goods 4,130 4,587 Supplies 1,017 717 Total Inventories 11,039 12,175 Inventory reserve (420) (399) Net Inventories $ 10,619 $ 11,776 |
5. Calculation of Basic and Dil
5. Calculation of Basic and Diluted Earnings per Share | 9 Months Ended |
Sep. 30, 2017 | |
(Loss) earnings per common share: | |
Calculation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share: (in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net (Loss) Income - basic and diluted $ (329) $ 291 $ (109) $ 622 Denominator: Denominator for basic earnings per share - weighted-average shares 3,542 3,542 3,542 3,319 Effect of dilutive securities: Employee stock options - 8 - 3 Warrants - - - 76 Dilutive potential common shares - 8 - 79 Denominator for diluted earnings per share - weighted-average shares and assumed conversions 3,542 3,550 3,542 3,398 Basic (loss) earnings per common share $ (0.09) $ 0.08 $ (0.03) $ 0.19 Diluted (loss) earnings per common share $ (0.09) $ 0.08 $ (0.03) $ 0.18 Approximately 152,000 employee stock options were excluded from the calculation of diluted earnings per share for each of the three and nine month periods ended September 30, 2017, as the effect would be anti-dilutive. For the three and nine month periods ended September 30, 2016, approximately 130,000 employee stock options were excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. |
6. Segment Information
6. Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
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 income (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 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 consist primarily 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 (Corpus Christi) Europe (TPT) Asia (TMM) Inter-Company Eliminations Consolidated For the three months ended: September 30, 2017 Net Sales: Customer sales $ 5,385 $ 2,882 $ 1,220 $ - $ 9,487 Intercompany sales - 492 497 (989) - Total Net Sales $ 5,385 $ 3,374 $ 1,717 $ (989) $ 9,487 Segment (loss) income $ (164) $ (286) $ 154 $ (33) $ (329) September 30, 2016 Net Sales: Customer sales $ 7,227 $ 2,249 $ 560 $ - $ 10,036 Intercompany sales 34 2,051 1,353 (3,438) - Total Net Sales $ 7,261 $ 4,300 $ 1,913 $ (3,438) $ 10,036 Segment income (loss) $ 9 $ 325 $ (22) $ (21) $ 291 (In Thousands) United States (Corpus Christi) Europe (TPT) Asia (TMM) Inter-Company Eliminations Consolidated For the Nine months ended: September 30, 2017 Net Sales: Customer sales $ 19,454 $ 8,361 $ 3,099 $ - $ 30,914 Intercompany sales 37 3,303 2,502 (5,842) - Total Net Sales $ 19,491 $ 11,664 $ 5,601 $ (5,842) $ 30,914 Segment (loss) income $ (238) $ (171) $ 374 $ (74) $ (109) As of September 30, 2017 Segments assets $ 15,834 $ 15,872 $ 5,640 $ (402) $ 36,944 For the Nine months ended: September 30, 2016 Net Sales: Customer sales $ 20,596 $ 6,954 $ 1,908 $ - $ 29,458 Intercompany sales 87 5,336 3,672 (9,095) - Total Net Sales $ 20,683 $ 12,290 $ 5,580 $ (9,095) $ 29,458 Segment income (loss) $ (269) $ 892 $ 24 $ (25) $ 622 As of September 30, 2016 Segment assets $ 17,819 $ 14,478 $ 6,299 $ - $ 38,596 |
7. Stock Options and Equity Com
7. Stock Options and Equity Compensation Plan | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options and Equity Compensation Plan | For the three and nine month periods ended September 30, 2017, the Company recorded stock-based employee compensation expense of $6,000 and $115,000, respectively, as compared to $45,000 and $130,000 for the same three and nine month periods of 2016, respectively. This compensation expense is included in “selling, general and administrative expenses” in the accompanying consolidated statements of operations. The Company granted approximately 6,000 and 49,000 stock options during the nine month periods ended September 30, 2017 and 2016, respectively. As of September 30, 2017, there was approximately $72,000 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 0.87 years. |
8. Derivatives and Other Financ
8. Derivatives and Other Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Other Financial Instruments | The Company has exposure to certain risks relating to its ongoing business operations, including financial, market, political and economic risks. The following discussion provides information regarding our exposure to the risks of changing foreign currency exchange rates. The Company has not entered into these contracts for trading or speculative purposes in the past, nor do we currently anticipate entering into such contracts for trading or speculative purposes in the future. The foreign exchange contracts are used to mitigate uncertainty and volatility and to cover underlying exposures. Foreign Currency Forward Contracts We manage the risk of changes in foreign currency exchange rates, primarily at our 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 September 30, 2017, we marked these contracts to market, recording $5,000 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 September 30, 2017 and December 31, 2016, in thousands: Asset Derivatives Derivative Instrument Location September 30, 2017 December 31, 2016 Foreign Currency Exchange Contracts Other Current Assets $ 5 $ - Liability Derivatives Derivative Instrument Location September 30, 2017 December 31, 2016 Foreign Currency Exchange Contracts Accrued Expenses $ - $ 2 The following table summarizes, in thousands, the impact of the Company’s derivatives on the consolidated financial statements of operations for the three and nine month periods ended September 30, 2017 and 2016: Amount of (Loss) Gain Recognized in Operations Derivative Location of (Loss) Gain on Derivative Three Months Ended September 30, Nine Months Ended September 30, Instrument Instrument 2017 2016 2017 2016 Foreign Currency Exchange Contracts (Loss) gain on foreign currency exchange rate $ (4) $ 4 $ (5) $ 6 |
1. Accounting Policies (Policie
1. Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying 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, 2016, in our Annual Report on Form 10-K filed with the SEC on March 9, 2017. Operating results for the three and nine month periods ended September 30, 2017, are not necessarily indicative of the results for the year ending December 31, 2017. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 changes how companies account for certain aspects of share based payment awards to employees, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. The adoption of this standard, which we adopted on January 1, 2017, did not have a material impact on the Company’s financial condition, results of operations or cash flows. |
New Accounting Standards | New Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” as amended by multiple standards updates. The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and IFRS. The pronouncement is effective for reporting periods beginning after December 15, 2017. Based on the analysis completed to date, the Company does not expect the timing and pattern of the Company’s revenue recognition to materially change and as a result the Company does not anticipate material changes upon adoption of the standard; however, the Company is still in the process of evaluating the disclosure requirements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes all existing guidance on accounting for leases in ASC Topic 840. ASU 2016-02 is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. ASU 2016-02 will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. ASU 2016-02 is required to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. We are currently in the initial stages of evaluating the potential impact of adopting ASU 2016-02 on our financial statements and related disclosures. |
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 $97,000 and foreign tax expense of approximately $2,000 for the three month period ended September 30, 2017, as compared to a federal tax expense of approximately $23,000, state tax expense of $1,000 and foreign tax expense of approximately $118,000 for the same three month period in 2016. For the nine month period ended September 30, 2017, income taxes consisted of federal income tax benefit of approximately $105,000, state income tax expense of approximately $3,000 and foreign tax expense of approximately $31,000, as compared to a federal tax benefit of approximately $71,000, state income tax expense of approximately $4,000 and foreign tax expense of approximately $232,000 for the same nine month period in 2016. 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, 2014 through December 31, 2016. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2012 through December 31, 2016. Our tax returns in various non-U.S. jurisdictions are subject to examination for various tax years dating back to December 31, 2012. As of January 1, 2017, we did not have any unrecognized tax benefits and there was no change during the three and nine month periods ended September 30, 2017. In addition, we did not recognize any interest and penalties in our financial statements during the three and nine month periods ended September 30, 2017. 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. |
2. Debt and Notes Payable (Tabl
2. Debt and Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt to Financial Institutions | September 30, 2017 December 31, 2016 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at September 30, 2017, due July 1, 2029, secured by TPT's land and buildings. (Euro balance at September 30, 2017, €183) $ 216 $ 206 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at September 30, 2017, due January 31, 2030, secured by TPT's land and buildings. (Euro balance at September 30, 2017, €210) 248 234 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. (Euro balance at September 30, 2017, €825) 975 947 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. The interest rate at September 30, 2017 was 2.3%. (Euro balance at September 30, 2017, €1,527) 1,805 1,978 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 2% above the bank base lending rate, due October 25, 2018, secured by TMM's property, plant and equipment. The interest rate at September 30, 2017 was 5.2%. (Ringgit balance at September 30, 2017, RM 1,500) 355 502 Total 3,599 3,867 Less current maturities 1,074 1,142 Total long-term debt - financial institutions $ 2,525 $ 2,725 |
3. Fair Value Measurements (Tab
3. Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Valuation of Financial Instruments Recorded on a Fair Value Basis | 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 September 30, 2017 Currency forward contracts $ 5 $ - $ 5 $ - Current Liability December 31, 2016 Currency forward contracts $ 2 $ - $ 2 $ - |
Schedule of Carrying Amounts and Estimated Fair Values | September 30, 2017 December 31, 2016 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion $ 3,599 $ 3,525 $ 3,867 $ 3,785 |
4. Inventories (Tables)
4. Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Following is a summary of inventory at September 30, 2017 and December 31, 2016, in thousands: September 30, December 31, 2017 2016 Raw materials $ 4,109 $ 5,235 Work in progress 1,783 1,636 Finished goods 4,130 4,587 Supplies 1,017 717 Total Inventories 11,039 12,175 Inventory reserve (420) (399) Net Inventories $ 10,619 $ 11,776 |
5. Calculation of Basic and D19
5. Calculation of Basic and Diluted Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
(Loss) earnings per common share: | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: (in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net (Loss) Income - basic and diluted $ (329) $ 291 $ (109) $ 622 Denominator: Denominator for basic earnings per share - weighted-average shares 3,542 3,542 3,542 3,319 Effect of dilutive securities: Employee stock options - 8 - 3 Warrants - - - 76 Dilutive potential common shares - 8 - 79 Denominator for diluted earnings per share - weighted-average shares and assumed conversions 3,542 3,550 3,542 3,398 Basic (loss) earnings per common share $ (0.09) $ 0.08 $ (0.03) $ 0.19 Diluted (loss) earnings per common share $ (0.09) $ 0.08 $ (0.03) $ 0.18 |
6. Segment Information (Tables)
6. Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | (In Thousands) United States (Corpus Christi) Europe (TPT) Asia (TMM) Inter-Company Eliminations Consolidated For the three months ended: September 30, 2017 Net Sales: Customer sales $ 5,385 $ 2,882 $ 1,220 $ - $ 9,487 Intercompany sales - 492 497 (989) - Total Net Sales $ 5,385 $ 3,374 $ 1,717 $ (989) $ 9,487 Segment (loss) income $ (164) $ (286) $ 154 $ (33) $ (329) September 30, 2016 Net Sales: Customer sales $ 7,227 $ 2,249 $ 560 $ - $ 10,036 Intercompany sales 34 2,051 1,353 (3,438) - Total Net Sales $ 7,261 $ 4,300 $ 1,913 $ (3,438) $ 10,036 Segment income (loss) $ 9 $ 325 $ (22) $ (21) $ 291 (In Thousands) United States (Corpus Christi) Europe (TPT) Asia (TMM) Inter-Company Eliminations Consolidated For the Nine months ended: September 30, 2017 Net Sales: Customer sales $ 19,454 $ 8,361 $ 3,099 $ - $ 30,914 Intercompany sales 37 3,303 2,502 (5,842) - Total Net Sales $ 19,491 $ 11,664 $ 5,601 $ (5,842) $ 30,914 Segment (loss) income $ (238) $ (171) $ 374 $ (74) $ (109) As of September 30, 2017 Segments assets $ 15,834 $ 15,872 $ 5,640 $ (402) $ 36,944 For the Nine months ended: September 30, 2016 Net Sales: Customer sales $ 20,596 $ 6,954 $ 1,908 $ - $ 29,458 Intercompany sales 87 5,336 3,672 (9,095) - Total Net Sales $ 20,683 $ 12,290 $ 5,580 $ (9,095) $ 29,458 Segment income (loss) $ (269) $ 892 $ 24 $ (25) $ 622 As of September 30, 2016 Segment assets $ 17,819 $ 14,478 $ 6,299 $ - $ 38,596 |
8. Derivatives and Other Fina21
8. Derivatives and Other Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative impact on operations | Asset Derivatives Derivative Instrument Location September 30, 2017 December 31, 2016 Foreign Currency Exchange Contracts Other Current Assets $ 5 $ - Liability Derivatives Derivative Instrument Location September 30, 2017 December 31, 2016 Foreign Currency Exchange Contracts Accrued Expenses $ - $ 2 The following table summarizes, in thousands, the impact of the Company’s derivatives on the consolidated financial statements of operations for the three and nine month periods ended September 30, 2017 and 2016: Amount of (Loss) Gain Recognized in Operations Derivative Location of (Loss) Gain on Derivative Three Months Ended September 30, Nine Months Ended September 30, Instrument Instrument 2017 2016 2017 2016 Foreign Currency Exchange Contracts (Loss) gain on foreign currency exchange rate $ (4) $ 4 $ (5) $ 6 |
1. Accounting Policies (Details
1. Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | $ (95) | $ 142 | $ (71) | $ 165 | |
Unrecognized tax benefits | 0 | 0 | $ 0 | ||
Federal Tax Authority [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | (97) | 23 | (105) | (71) | |
State Tax Authority [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | 0 | 1 | 3 | 4 | |
Foreign Tax Authority [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | $ 2 | $ 118 | $ 31 | $ 232 |
2. Debt and Notes Payable (Deta
2. Debt and Notes Payable (Details - Long term debt) € in Thousands, MYR in Thousands, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Sep. 30, 2017MYR | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 3,599 | $ 3,867 | ||
Less current maturities | 1,074 | 1,142 | ||
Total long-term debt - financial institutions | 2,525 | 2,725 | ||
Euro term note 1 [Member] | Netherlands Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 216 | 206 | ||
Debt maturity date | Jul. 1, 2029 | |||
Debt stated interest rate | 3.85% | 3.85% | 3.85% | |
Debt collateral | Secured by TPT's land and buildings | |||
Euro term note 1 [Member] | Netherlands Bank [Member] | EURO [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | € | € 183 | |||
Euro term note 2 [Member] | Netherlands Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 248 | 234 | ||
Debt maturity date | Jan. 31, 2030 | |||
Debt stated interest rate | 3.30% | 3.30% | 3.30% | |
Debt collateral | Secured by TPT's land and buildings | |||
Euro term note 2 [Member] | Netherlands Bank [Member] | EURO [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | € | € 210 | |||
Euro term note 3 [Member] | Netherlands Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 975 | 947 | ||
Debt maturity date | Dec. 31, 2025 | |||
Debt stated interest rate | 3.00% | 3.00% | 3.00% | |
Debt collateral | Secured by TPT's land and buildings | |||
Euro term note 3 [Member] | Netherlands Bank [Member] | EURO [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | € | € 825 | |||
Euro term note 4 [Member] | Netherlands Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 1,805 | 1,978 | ||
Debt maturity date | Dec. 31, 2020 | |||
Debt collateral | Secured by substantially all of TPT's assets | |||
Debt interest variable rate | EURIBOR interest rate plus bank margin of 2.3% per annum | |||
Debt effective interest rate | 2.30% | 2.30% | 2.30% | |
Euro term note 4 [Member] | Netherlands Bank [Member] | EURO [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | € | € 1,527 | |||
Malaysian term note [Member] | Malaysian Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 355 | $ 502 | ||
Debt maturity date | Oct. 25, 2018 | |||
Debt collateral | Secured by TMM's property, plant and equipment | |||
Debt interest variable rate | 2% above the bank base lending rate | |||
Debt effective interest rate | 5.20% | 5.20% | 5.20% | |
Malaysian term note [Member] | Malaysian Bank [Member] | RM [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | MYR | MYR 1,500 |
2. Debt and Notes Payable (De24
2. Debt and Notes Payable (Details Narrative) | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Sep. 30, 2017MYR | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 3,599,000 | $ 3,867,000 | ||
Line of Credit [Member] | UNITED STATES | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | 1,000,000 | |||
Credit line balance outstanding | $ 0 | |||
Credit line interest rate description | variable rate equal to one percent per annum above the Wall Street Journal Prime Rate, minimum floor 4.5% | |||
Credit line expiration date | Oct. 15, 2018 | |||
Line of Credit [Member] | European [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | $ 591,000 | |||
Credit line balance outstanding | $ 0 | |||
Credit line interest rate at end of period | 3.30% | 3.30% | 3.30% | |
Credit line interest rate description | bank prime plus 2.8% to the average 1-month EURIBOR plus the bank margin of 3.3% | |||
Line of Credit [Member] | European [Member] | EURO [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | € | € 500,000 | |||
Credit line balance outstanding | $ 0 | |||
Line of Credit [Member] | Asian Operations [Member] | TOR Minerals Malaysia [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line interest rate during period | 4.90% | |||
Line of Credit [Member] | Asian Operations [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line expiration date | Jun. 30, 2018 | |||
Line of Credit [Member] | Asian Operations [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | Overdrafts [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | $ 118,000 | |||
Credit line balance outstanding | 0 | |||
Line of Credit [Member] | Asian Operations [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | Import/Export Line [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | 2,477,000 | |||
Credit line balance outstanding | 0 | |||
Line of Credit [Member] | Asian Operations [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | Foreign Exchange [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | 1,184,000 | |||
Credit line balance outstanding | $ 0 | |||
Line of Credit [Member] | Asian Operations [Member] | TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line expiration date | Feb. 11, 2018 | |||
Line of Credit [Member] | Asian Operations [Member] | TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Foreign Exchange [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | $ 592,000 | |||
Credit line balance outstanding | 0 | |||
Line of Credit [Member] | Asian Operations [Member] | TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Multi-Trade Line [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | 829,000 | |||
Credit line balance outstanding | 0 | |||
Line of Credit [Member] | Asian Operations [Member] | TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Bank Guarantee [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | 284,000 | |||
Credit line balance outstanding | 0 | |||
Line of Credit [Member] | Asian Operations [Member] | RM [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | Overdrafts [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | MYR | MYR 500,000 | |||
Credit line balance outstanding | 0 | |||
Line of Credit [Member] | Asian Operations [Member] | RM [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | Import/Export Line [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | MYR | 10,460,000 | |||
Credit line balance outstanding | $ 0 | |||
Credit line interest rate during period | 5.90% | |||
Line of Credit [Member] | Asian Operations [Member] | RM [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | Foreign Exchange [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | MYR | 5,000,000 | |||
Credit line balance outstanding | $ 0 | |||
Line of Credit [Member] | Asian Operations [Member] | RM [Member] | TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Foreign Exchange [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | MYR | 2,500,000 | |||
Credit line balance outstanding | 0 | |||
Line of Credit [Member] | Asian Operations [Member] | RM [Member] | TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Multi-Trade Line [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | MYR | 3,500,000 | |||
Credit line balance outstanding | 0 | |||
Line of Credit [Member] | Asian Operations [Member] | RM [Member] | TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Bank Guarantee [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit line maximum borrowing capacity | MYR | MYR 1,200,000 | |||
Credit line balance outstanding | $ 0 |
3. Fair Value Measurements (Det
3. Fair Value Measurements (Details - Unobservable inputs) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Liability | ||
Currency forward contracts | $ 5 | $ 2 |
Level 1 [Member] | ||
Liability | ||
Currency forward contracts | 0 | 0 |
Level 2 [Member] | ||
Liability | ||
Currency forward contracts | 5 | 2 |
Level 3 [Member] | ||
Liability | ||
Currency forward contracts | $ 0 | $ 0 |
3. Fair Value Measurements (D26
3. Fair Value Measurements (Details - Carry amounts) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 3,599 | $ 3,867 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 3,525 | $ 3,785 |
4. Inventories (Details)
4. Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,109 | $ 5,235 |
Work in progress | 1,783 | 1,636 |
Finished goods | 4,130 | 4,587 |
Supplies | 1,017 | 717 |
Total Inventories | 11,039 | 12,175 |
Inventory reserve | (420) | (399) |
Net Inventories | $ 10,619 | $ 11,776 |
5. Calculation of Basic and D28
5. Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net (Loss) Income - basic and diluted | $ (329) | $ 291 | $ (109) | $ 622 |
Denominator: | ||||
Denominator for basic earnings per share- weighted-average shares | 3,542 | 3,542 | 3,542 | 3,319 |
Dilutive securities - employee stock options | 0 | 8 | 0 | 3 |
Dilutive securities - warrants | 0 | 0 | 0 | 76 |
Dilutive potential common shares | 0 | 8 | 0 | 79 |
Denominator for diluted earnings per share - weighted-average shares and assumed conversions | 3,542 | 3,550 | 3,542 | 3,398 |
Basic (loss) earnings per common share | $ (0.09) | $ 0.08 | $ (0.03) | $ 0.19 |
Diluted (loss) earnings per common share | $ (0.09) | $ 0.08 | $ (0.03) | $ 0.18 |
5. Calculation of Basic and D29
5. Calculation of Basic and Diluted Earnings per Share (Details Narrative) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings | 152 | 130 | 152 | 130 |
6. Segment Information (Details
6. Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Net Sales: | |||||
Customer sales | $ 9,487 | $ 10,036 | $ 30,914 | $ 29,458 | |
Intercompany sales | 0 | 0 | 0 | 0 | |
Total Net Sales | 9,487 | 10,036 | 30,914 | 29,458 | |
Net (loss) income | (329) | 291 | (109) | 622 | |
Segment assets | 36,944 | 38,596 | 36,944 | 38,596 | $ 35,729 |
Inter-Company Eliminations [Member] | |||||
Net Sales: | |||||
Customer sales | 0 | 0 | 0 | 0 | |
Intercompany sales | (989) | (3,438) | (5,842) | (9,095) | |
Total Net Sales | (989) | (3,438) | (5,842) | (9,095) | |
Net (loss) income | (33) | (21) | (74) | (25) | |
Segment assets | (402) | 0 | (402) | 0 | |
United States (Corpus Christi) [Member] | |||||
Net Sales: | |||||
Customer sales | 5,385 | 7,227 | 19,454 | 20,596 | |
Intercompany sales | 0 | 34 | 37 | 87 | |
Total Net Sales | 5,385 | 7,261 | 19,491 | 20,683 | |
Net (loss) income | (164) | 9 | (238) | (269) | |
Segment assets | 15,834 | 17,819 | 15,834 | 17,819 | |
European (TPT) [Member] | |||||
Net Sales: | |||||
Customer sales | 2,882 | 2,249 | 8,361 | 6,954 | |
Intercompany sales | 492 | 2,051 | 3,303 | 5,336 | |
Total Net Sales | 3,374 | 4,300 | 11,664 | 12,290 | |
Net (loss) income | (286) | 325 | (171) | 892 | |
Segment assets | 15,872 | 14,478 | 15,872 | 14,478 | |
Asian (TMM) [Member] | |||||
Net Sales: | |||||
Customer sales | 1,220 | 560 | 3,099 | 1,908 | |
Intercompany sales | 497 | 1,353 | 2,502 | 3,672 | |
Total Net Sales | 1,717 | 1,913 | 5,601 | 5,580 | |
Net (loss) income | 154 | (22) | 374 | 24 | |
Segment assets | $ 5,640 | $ 6,299 | $ 5,640 | $ 6,299 |
7. Stock Options and Equity C31
7. Stock Options and Equity Compensation Plan (Details Narrative) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share based compensation | $ 6 | $ 45 | $ 115 | $ 130 |
Options granted | 6 | 49 | ||
Compensation expense non-vested awards | $ 72 | $ 72 | ||
Weighted average period of compensation expense for non-vested awards | 10 months 14 days |
8. Derivatives and Other Fina32
8. Derivatives and Other Financial Instruments (Details - Liability derivatives) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accrued Expenses [Member] | Foreign Currency Exchange Contracts [Member] | Nondesignated [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 5 | $ 2 |
8. Derivatives and Other Fina33
8. Derivatives and Other Financial Instruments (Details - Recognized loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Foreign Currency Exchange Contracts [Member] | Gain (loss) on Foreign Currency Exchange Rate | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of Gain Recognized in Operations | $ (4) | $ 4 | $ (5) | $ 6 |