TOR Minerals Announces First Quarter 2011 Financial Results

CORPUS CHRISTI, Texas, April 28, 2011 /PRNewswire/ -- TOR Minerals International (Nasdaq: TORM), producer of synthetic titanium dioxide and color pigments, specialty aluminas, and other high performance mineral fillers, today announced its financial results for the first quarter ended March 31, 2011.  Highlights for the first quarter of 2011 included:

  • Revenue increased 40% year over year to $9.6 million versus 1Q10: $6.9 million
  • Diluted net income to common shareholders: $697,000 versus 1Q10: $569,000
  • EPS: $0.22 versus 1Q10 EPS: $0.26

For the first quarter ended March 31, 2011, the Company reported diluted net income available to common shareholders of $697,000 or $0.22 per diluted share, on net sales of $9,585,000.  This compares with diluted net income available to common shareholders of $569,000, or $0.26 per share, on net sales of $6,856,000 for the quarter ended March 31, 2010.  

Revenue by Product Group (in ,000's)

1Q11


1Q10


% Change

TiO2 Pigments

$    4,454


$    2,980


49%

Specialty Aluminas

4,142


2,901


43%

Other

989


975


1%

Total

$    9,585


$    6,856


40%



Net sales increased 40 percent during the first quarter of 2011 due to strong increases in sales of the Company's primary product categories.  Sales of titanium dioxide (TiO2) pigments, which include HITOX® and TIOPREM® products, increased 49 percent to $4.5 million benefiting from both higher prices and volumes.  Sales of specialty alumina, which includes ALUPREM®, HALTEX® and OPTILOAD® product groups, grew 43 percent during the first quarter of 2011 due to increased demand for existing and new specialty alumina products in Europe and North America.  Commenting on sales trends, Dr. Olaf Karasch, Chief Executive Officer, said, "Our TiO2 pigment business is benefiting from increasing tightness in the global supply of titanium dioxide.  As a result, market interest in re-formulation is high and we have had success in both raising prices and gaining many new global customers. This includes new business for TIOPREM which represented 10% of our TiO2 pigment sales and is growing.  At the same time, our specialty alumina business is benefiting from new business and growing acceptance of our OPTILOAD products, which helps further diversifying our customer, geographic and product mix."  

During the first quarter of 2011, operating income increased to $866,000, or 9.0% of sales, compared to operating income of $744,000, or 10.9% of sales, reported in the same period a year ago.  First quarter benefits from increased pricing and sales volumes were more than offset by lower fixed cost absorption in the company's Malaysian plant, as well as increased raw material and energy costs.  Combined with a one-time increase in employee incentive costs, these factors resulted in a 1.9 percentage point decrease in operating margin.  "While our margin percentage declined, we posted solid results for the first quarter, which was the second highest quarterly profit posted in more than a decade," said Dr. Karasch.  "Furthermore, pricing on our specialty TiO2 products lags that of commodity TiO2.  While our pricing has been favorable, it has yet to have a major impact on our profitability.  Going forward, we expect our pricing to catch up and provide a more meaningful contribution to year-over-year comparisons."

The Company plans to invest approximately $2 million into its Netherlands plant this summer to meet current and anticipated future demand for its specialty alumina products. "Our Netherlands plant is near capacity and we expect business with our current customers to fill a significant portion of our expanded capacity.  With continued traction from existing products and expected new product developments, this is the right time to invest in our expansion," said Dr. Karasch.  "While improving, our Malaysian plant is still underutilized, which results in inconsistent quarterly profitability in our TiO2 business.  Demand for our TiO2 pigments continues to grow, and this year we expect to run the plant for eight to nine months versus approximately six months last year.  The increase in utilization combined with improved pricing, should be more than enough to offset increasing raw material and other input costs, and result in a bottom line that grows faster than the top line for the balance of the year," Dr. Karasch concluded.  

TOR Minerals will host a conference call at 4:00 p.m. Central Time on April 28, 2011 to further discuss first quarter results. The call will be simultaneously Webcast, and can be accessed via the News section on the Company's website at www.torminerals.com.  Interested parties may also access the conference call via telephone 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 slow down 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

TOR Minerals International, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)





Three Months
Ended March 31,



2011


2010

NET SALES

$

9,585

$

6,856

Cost of sales


7,494


5,206

GROSS MARGIN


2,091


1,650

Technical services and research and development


66


57

Selling, general and administrative expenses


1,159


849

OPERATING INCOME


866


744

OTHER EXPENSE:





Interest expense


(96)


(121)

Loss on foreign currency exchange rate


(48)


(28)

INCOME BEFORE INCOME TAX


722


595

Income tax expense


47


11

NET INCOME

$

675

$

584

Less:  Preferred Stock Dividends


15


15

Basic Income Available to Common Shareholders

$

660

$

569

Plus:  6% Convertible Debenture Interest Expense


22


-

Plus:  Preferred Stock Dividends


15


-

Diluted Income Available to Common Shareholders

$

697

$

569






Income per common share:





Basic

$

0.34

$

0.30

Diluted

$

0.22

$

0.26






Weighted average common shares outstanding:





Basic


1,941


1,891

Diluted


3,149


2,193



TOR Minerals International, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except share and per share amounts)








March 31,
2011


December 31,
2010



(Unaudited)



ASSETS





CURRENT ASSETS:





Cash and cash equivalents

$

2,396

$

2,559

Trade accounts receivable, net


4,873


3,888

Inventories


11,467


11,021

Other current assets


935


728

Total current assets


19,671


18,196

PROPERTY, PLANT AND EQUIPMENT, net


19,489


18,952

OTHER ASSETS


24


23

Total Assets

$

39,184

$

37,171






LIABILITIES AND SHAREHOLDERS' EQUITY





CURRENT LIABILITIES:





Accounts payable

$

2,299

$

2,544

Accrued expenses


2,390


1,436

Notes payable under lines of credit


515


783

Export credit refinancing facility


33


264

Current deferred tax liability


60


64

Current maturities - capital leases


27


46

Current maturities of long-term debt – financial institutions


519


533

Total current liabilities


5,843


5,670

LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES





Capital leases


14


18

Long-term debt – financial institutions


2,819


2,847

Long-term debt – convertible debentures, net


1,167


1,176

DEFERRED TAX LIABILITY


636


582

Total liabilities


10,479


10,293

COMMITMENTS AND CONTINGENCIES





SHAREHOLDERS' EQUITY:





Series A 6% convertible preferred stock $.01 par value:
authorized, 5,000 shares; 160 and 200 shares issued and
outstanding at 3/31/2011 and 12/31/2010, respectively


2


2

Common stock $1.25 par value:  authorized, 6,000 shares;
2,029 and 1,934 shares issued and outstanding
at 3/31/2011 and 12/31/2010, respectively


2,507


2,416

Additional paid-in capital


25,834


25,363

Accumulated deficit


(4,919)


(5,579)

Accumulated other comprehensive income:





Cumulative translation adjustment


5,281


4,676

Total shareholders' equity


28,705


26,878

Total Liabilities and Shareholders' Equity

$

39,184

$

37,171



TOR Minerals International, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)






Three Months Ended March 31,



2011


2010

CASH FLOWS FROM OPERATING ACTIVITIES:





Net Income

$

675

$

584

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





Depreciation


499


469

Share-based compensation


2


-

Warrant interest expense


17


17

Deferred income taxes


41


10

Changes in working capital:





Trade accounts receivables


(897)


(489)

Inventories


(290)


(225)

Other current assets


(186)


(200)

Accounts payable and accrued expenses


603


870

Net cash provided by operating activities


464


1,036






CASH FLOWS FROM INVESTING ACTIVITIES:





Additions to property, plant and equipment


(513)


(102)

Net cash used in investing activities


(513)


(102)






CASH FLOWS FROM FINANCING ACTIVITIES:





Net payments on lines of credit


(317)


(732)

Net payments on export credit refinancing facility


(235)


-

Payments on capital lease


(25)


(39)

Payments on long-term bank debt


(122)


(158)

Proceeds from the issuance of common stock,
         and exercise of common stock options


534


2

Preferred stock dividends paid


(15)


(15)

Net cash used in financing activities


(180)


(942)

Effect of exchange rate fluctuations on cash and cash equivalents


66


73

Net (decrease) increase in cash and cash equivalents


(163)


65

Cash and cash equivalents at beginning of year


2,559


1,002

Cash and cash equivalents at end of period

$

2,396

$

1,067






Supplemental cash flow disclosures:





Interest paid

$

96

$

104

Income taxes paid

$

-

$

-






Non-cash financing activities:





Conversion of debentures

$

25

$

-



SOURCE TOR Minerals International



RELATED LINKS
http://www.torminerals.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.