TOR Minerals International Announces Third Quarter Financials

Nov 02, 2004, 00:00 ET from TOR Minerals International

    CORPUS CHRISTI, Texas, Nov. 2 /PRNewswire-FirstCall/ -- TOR Minerals
 International (Nasdaq:   TORM) Producer of natural titanium dioxide pigments and
 specialty aluminas today announced that for the third quarter ended
 September 30, 2004 it earned $473,000 as compared with a profit of $612,000 in
 the third quarter of 2003.  Results for the nine months ended September 30,
 2004 were a profit of $904,000 against a profit of $1,047,000 for the first
 nine months of 2003.  Sales for the nine month period were $21,834,000 as
 against $16,959,000 a year earlier, an increase of 29% and sales for the
 quarter were $9,444,000 compared to $7,057,000 for the third quarter of 2003.
     Richard L. Bowers, President and C.E.O., said that results were
 unfavorably impacted by sharp increases in the cost of oil and natural gas,
 freight, and raw materials during the period.  However, he said the company
 had been compensating for these increases by raising the prices of its
 products but that the increased selling prices, in most cases, lagged the cost
     Mr. Bowers stated that the Company relished the opportunity to commission
 the new HITOX(R) titanium dioxide expansion in Corpus Christi as the new
 process would substantially reduce the consumption of natural gas.
 Commissioning is scheduled to begin the second week in November.  He also said
 that increased alumina mono oxyhydrate capacity would be available at the
 Netherlands plant by the third week in November.  This new capacity is
 planned, in part, to allow for an expansion in production of the newly
 developed nano pigments TOR BRITE(TM) and TOR COAT(TM) introduced in August.
     Based in Corpus Christi, Texas, TOR Minerals manufactures pigments in
 Texas, Malaysia, and the Netherlands which are marketed worldwide.
     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 risks of a general business slow down or recession, the
 increasing cost of energy, raw materials and labor, competition, advances in
 technology, changes in foreign currency rates, freight price increases,
 commodity price increases, delays in delivery of requirement equipment and
 other factors.
      Contact for Further Information:
      David Mossberg
      Beacon Street Group Investor Relations
      (817) 459-2346
                                 Tables Follow
                        TOR MINERALS INTERNATIONAL, INC.
                    (in thousands, except per share amounts)
                                       Three Months Ended    Nine Months Ended
                                          September 30,        September 30,
                                         2004       2003     2004        2003
     NET SALES                          $9,444     $7,057  $21,834     $16,959
        Cost of products sold            7,683      5,318   16,916      12,607
           GROSS MARGIN                  1,761      1,739    4,918       4,352
           GROSS MARGIN %                 18.6%      24.6%    22.5%       25.7%
        Selling, administrative
         and general                     1,151      1,063    3,681       3,099
     OPERATING INCOME                      610        676    1,237       1,253
        Interest income                      1        ---        3         ---
        Interest expense                   (79)       (83)    (158)       (205)
        Other, net                           2         28      (31)         26
     INCOME BEFORE INCOME TAX              534        621    1,051       1,074
        Taxes                               61          9      147          27
     NET INCOME                           $473       $612     $904      $1,047
     Earnings per common share:
        Basic                            $0.06      $0.09    $0.11       $0.15
        Diluted                          $0.06      $0.08    $0.11       $0.15
     Weighted average common shares and
      equivalents outstanding:
        Basic                            7,779      7,119    7,719       7,036
        Diluted                          8,052 (A)  7,450    8,013 (B)   7,193
      (A) 168,000 common shares related to the 200,000 convertible preferred
          shares outstanding were excluded in the computation of diluted
          earnings per share as the effect would be antidilutive.
      (B) 153,000 common shares related to the 200,000 convertible preferred
          shares outstanding were excluded in the computation of diluted
          earnings per share as the effect would be antidilutive.
                        TOR MINERALS INTERNATIONAL, INC.
                    September 30, 2004 and December 31, 2003
                                 (in thousands)
                                           September 30, 2004      December 31,
                                               (Unaudited)              2003
     Current assets                                 $14,679           $10,747
     Property, plant and equipment, net              16,077            13,470
     Goodwill, net                                    1,815             1,283
     Other assets                                       ---                42
             Total Assets                           $32,571           $25,542
     Current liabilities                             $8,727            $7,978
     Long-term debt, excluding current
      maturities                                      1,609             1,642
     Deferred tax liability                             123               ---
         Total Liabilities                           10,459             9,620
     Shareholders' equity                            22,112            15,922
             Total Liabilities &
              Shareholders' Equity                  $32,571           $25,542

SOURCE TOR Minerals International