TOR MINERALS INTERNATIONAL INC - FORM 8-K - EX-99.1 - August 3, 2017

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                                                                                                                                                                                     EXHIBIT 99.1

 

 

722 Burleson Street

Corpus Christi

Texas  78402

 

Phone:  361/883-5591

Fax:  361/883-7619

www.torminerals.com

 

For Release at 4:05 PM ET on 8/03/17

 

TOR Minerals International, Inc. Reports Second Quarter Financial Results

CORPUS CHRISTI, Texas, August 03, 2017 – TOR Minerals International, Inc. (Nasdaq: TORM), producer of high performance specialty minerals, today announced its financial results for the second quarter ended June 30, 2017. Highlights for the second quarter of 2017, as compared to the second quarter of 2016, include:

 

  • 2Q17 sales increased 9 percent to $10.7 million
  • 2Q17 net income of $352,000, versus 2Q16 net income of $87,000
  • 2Q17 earnings per share of $0.10, versus 2Q16 earnings per share of $0.03

 

Revenue by Product Group (in 000's)

 

2Q17

 

2Q16

 

% Change
2017 vs. 2016

Specialty Aluminas

 

$

6,003 

 

$

5,073 

 

18%

Barium Sulfate and Other Products

 

2,148 

 

2,194 

 

-2%

TiO2 Pigments

 

2,580 

 

2,583 

 

0%

Total

 

$

10,731 

 

$

9,850 

 

9%

 

During the second quarter ended June 30, 2017, sales increased 9 percent to $10.7 million, versus $9.9 million reported during the same period of 2016. The increase in revenue was primarily due to continued growth in specialty alumina sales, which was partially offset by relatively flat comparisons in the Company’s other two product categories.  Specialty alumina sales primarily benefited from strong growth in Europe and growth of OPTILOAD to both existing and new customers in the U.S.  TiO2 pigment sales increased 39 percent and 22 percent in Asia and Europe, respectively, which were offset by a 19 percent decrease in the U.S.; resulting in relatively flat comparisons year over year. 

 

During the second quarter of 2017, gross margin increased 3.7 percentage points to 15.6 percent of sales, versus 11.9 percent during the same period a year ago. The increase in gross margin was primarily due to higher production volume and improved efficiencies and a reduction in raw material costs.  During the second quarter, SG&A expenses were $1.2 million, versus $1.1 million during the second quarter of 2016.  The increase in SG&A expenses was primarily related to additional sales and marketing expenses.  During the second quarter, net income was $352,000 or $0.10 per diluted share, as compared to net income of $87,000, or $0.03 per diluted share, during the prior year.

 

 

 

                                                                                                                                                                                     EXHIBIT 99.1

 

“While we had mixed results on our top line, we posted a strong recovery in profitability during the second quarter, posting the highest earnings per share number we have seen in more than three years,” commented Dr. Olaf Karasch, Chief Executive Officer.  “We saw continued strength in our Specialty Alumina business and are well positioned to continue double-digit growth in our largest product category.  While flat in terms of revenue comparisons, our TiO2 business saw improving trends in Europe and Asia.  Due to our cost improvement efforts, TiO2 has also begun to contribute nicely to overall profitability this year.   Our barium sulfate-related revenue was also relatively flat year over year, but continues to add nice contribution margin to the overall business. Overall, we remain confident that we are well-positioned to deliver double-digit sales growth during 2017, as well as further improve profitability and returns for our shareholders.”

TOR Minerals will host a conference call at 5:00 p.m. Eastern, 4:00 p.m. Central Time, on August 03, 2017, to further discuss second quarter results. The call will be simultaneously webcast, and can be accessed via the News section on the Company's website, www.torminerals.com.  Investors and interested parties may participate in the call by dialing 877-407-8033.

Headquartered in Corpus Christi, Texas, TOR Minerals International is a global manufacturer and marketer of specialty mineral and pigment products for high performance applications with manufacturing and regional offices located in the United States, Netherlands and Malaysia.

This statement provides forward-looking information as that term is defined in the Private Securities Litigation Reform Act of 1995, and, therefore, is subject to certain risks and uncertainties. There can be no assurance that the actual results, business conditions, business developments, losses and contingencies and local and foreign factors will not differ materially from those suggested in the forward-looking statements as a result of various factors, including market conditions, general economic conditions, including the present slowdown in U.S. construction and the risks of a general business slow down or recession, the increasing cost of energy, raw materials and labor, competition, the receptivity of the markets for our anticipated new products, advances in technology, changes in foreign currency rates, freight price increase, commodity price increases, delays in delivery of required equipment and other factors.

Contact for Further Information:
Dave Mossberg
Three Part Advisors, LLC
817-310-0051

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                                                                                     EXHIBIT 99.1

TOR Minerals International, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Unaudited)

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months
Ended June 30,

 

Six Months
Ended June 30,

 

 

2017

 

2016

 

2017

 

2016

NET SALES

$

10,731 

$

9,850 

$

21,427 

$

19,422 

Cost of sales

 

9,053 

 

8,680 

 

18,622 

 

16,927 

GROSS MARGIN

 

1,678 

 

1,170 

 

2,805 

 

2,495 

Technical services, research and development

 

43 

 

52 

 

86 

 

90 

Selling, general and administrative expenses

 

1,216 

 

1,062 

 

2,409 

 

1,903 

OPERATING INCOME

 

419 

 

56 

 

310 

 

502 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

Interest expense, net

 

(29)

 

(47)

 

(58)

 

(97)

Gain (loss) on foreign currency exchange rate

 

10 

 

10 

 

(23)

 

(79)

Other, net

 

14 

 

16 

 

15 

 

28 

Total Other Expense

 

(5)

 

(21)

 

(66)

 

(148)

INCOME BEFORE INCOME TAX

 

414 

 

35 

 

244 

 

354 

Income tax expense (benefit)

 

62 

 

(52)

 

24 

 

23 

NET INCOME

$

352 

$

87 

$

220 

$

331 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Basic

$

0.10 

$

0.03 

$

0.06 

$

0.10 

Diluted

$

0.10 

$

0.03 

$

0.06 

$

0.10 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

3,542 

 

3,402 

 

3,542 

 

3,208 

Diluted

 

3,563 

 

3,459 

 

3,559 

 

3,323 

 

 

 

 

                                                                                                                                                                                     EXHIBIT 99.1

TOR Minerals International, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except per share amounts)

 

 

 

 

 

 

 

June 30,
2017

 

December 31,
2016

ASSETS

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

$

2,813 

$

3,716  

Trade accounts receivable, net

 

4,798 

 

3,557 

Inventories, net

 

11,330 

 

11,776 

Other current assets

 

1,289 

 

742 

Total current assets

 

20,230 

 

19,791 

PROPERTY, PLANT AND EQUIPMENT, net

 

17,448 

 

15,907 

DEFERRED TAX ASSET, foreign

 

24 

 

27 

OTHER ASSETS

 

4 

 

4 

         

Total Assets

$

37,706 

$

35,729 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Accounts payable

$

2,851 

$

2,122 

Accrued expenses

 

1,530 

 

1,136 

Export credit refinancing facility

 

- 

 

206 

Current maturities of long-term debt – financial institutions

 

1,102 

 

1,142 

Total current liabilities

 

5,483 

 

4,606 

LONG-TERM DEBT - FINANCIAL INSTITUTIONS

 

2,614 

 

2,725 

DEFERRED TAX LIABILITY, domestic

 

120 

 

127 

Total liabilities

 

8,217 

 

7,458 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

SHAREHOLDERS' EQUITY:

 

 

 

 

Common stock $1.25 par value: authorized, 6,000 shares;
3,542 shares issued and outstanding at June 30, 2017
and December 31, 2016

 

4,426 

 

4,426 

Additional paid-in capital

 

30,656 

 

30,544 

Accumulated deficit

 

(4,601)

 

(4,821)

Accumulated other comprehensive loss

 

(992)

 

(1,878)

Total shareholders' equity

 

29,489 

 

28,271 

         

Total Liabilities and Shareholders' Equity

$

37,706 

$

35,729 

 

 

 

 

 

 

 

 

 

                                                                                                                                                                                     EXHIBIT 99.1

TOR Minerals International, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

Six Months Ended
June 30,

 

 

2017

 

2016

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net income

$

220 

$

331

Adjustments to reconcile net income to net cash
provided by operating activities:

 

 

 

 

Depreciation

 

1,321 

 

1,269

Gain on disposal of assets

 

- 

 

(1)

Stock-based compensation

 

109 

 

85

Deferred income tax benefit

 

(6)

 

(121)

Inventory reserve

 

 

 

85

Allowance for (recovery of) bad debts

 

21 

 

(273)

Changes in working capital:

 

 

 

 

Trade accounts receivables

 

(1,133)

 

(976)

Inventories

 

730 

 

3,210

Other current assets

 

(507)

 

(23)

Accounts payable and accrued expenses

 

618 

 

(325)

Net cash provided by operating activities

 

1,373 

 

3,261 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Additions to property, plant and equipment

 

(1,707)

 

(790)

Net cash used in investing activities

 

(1,707)

 

(790)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Proceeds from lines of credit

 

- 

 

3 

Payments on lines of credit

 

- 

 

(197)

Proceeds from export credit refinancing facility

 

- 

 

935 

Payments on export credit refinancing facility

 

(215)

 

(1,508)

Payments on long-term bank debt

 

(460)

 

(537)

Proceeds from the issuance of common stock through exercise of warrants

 

- 

 

1,398 

Net cash (used in) provided by financing activities

 

(675)

 

94 

Effect of foreign currency exchange rate fluctuations on cash and cash equivalents

 

106 

 

3 

Net (decrease) increase in cash and cash equivalents

 

(903)

 

2,568 

Cash and cash equivalents at beginning of period

 

3,716 

 

813 

Cash and cash equivalents at end of period

$

2,813 

$

3,381 

 

 

 

 

 

Supplemental cash flow disclosures:

 

 

 

 

Interest paid

$

59 

$

77 

Income taxes paid

$

209 

$

45 

Non-cash financing activities:

 

 

 

 

Capital expenditures financed through accounts payable and accrued expenses

$

320 

$

- 

 

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