TOR Minerals International Reports First Quarter Financial Results

Posts Record Revenue and Net Income

26 Apr, 2012, 16:00 ET from TOR Minerals International

CORPUS CHRISTI, Texas, April 26, 2012 /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, 2012. Highlights for the first quarter of 2012 as compared to the first quarter of 2011 included:

  • 1Q12 revenue increased 34% to $12.8 million
  • 1Q12 diluted net income increased 103% to $1.4 million
  • 1Q12 diluted EPS: $0.41 versus 1Q11 diluted EPS: $0.22

 

 Revenue by Product Group (in 000's) 

 1Q12 

 1Q11 

 % Change 

 TiO2 Pigments 

$    6,135

$  4,454

38%

 Specialty Aluminas 

5,046

4,142

22%

 Other 

1,627

989

65%

 Total 

$ 12,808

$ 9,585

34%

Net sales increased 34 percent during the first quarter of 2012 due to increases in all three of the Company's primary product categories. Sales of titanium dioxide (TiO2) pigments, which include HITOX®, TIOPREM® and synthetic rutile products, increased 38 percent to $6.1 million, as increased sales volume in North America and higher prices more than offset decreased sales volumes in Asia.  Sales of specialty alumina, which includes the ALUPREM®, HALTEX® and OPTILOAD® product groups, increased 22 percent during the first quarter of 2012.  In addition to increased volumes, specialty alumina sales benefited from a mix shift, which positively affected average selling prices.

Commenting on sales trends, Dr. Olaf Karasch, Chief Executive Officer, said, "We achieved record quarterly revenue again during the first quarter, marking our third quarter of record performance in the past four quarters. Overall, we continued to experience strong growth in sales volumes, as new customers are realizing the value-added characteristics of our niche specialty mineral products and are transitioning from sample to production order quantities. In addition, higher average selling prices in all of our product lines are contributing to our revenue growth."

 Margin Table 

 1Q12 

 1Q11 

 Change 

 Gross Margin 

24.9%

21.8%

+ 310 basis points

 Operating Margin 

14.7%

9.0%

+ 570 basis points

 Net Margin 

10.9%

7.0%

+ 390 basis points

During the first quarter of 2012, favorable trends in pricing, product mix and sales volumes more than offset increased raw material and energy costs. As a result, gross margin improved 310 basis points year over year to 24.9 percent of sales.  Operating income increased to $1.9 million, or 14.7 percent of sales, compared to operating income of $0.9 million, or 9.0 percent of sales, reported in the same period a year ago.

"We saw the favorable effects of increased pricing in our TiO2 pigment business during the first quarter and posted the highest quarterly operating margin in our history," said Dr. Karasch.  "In addition, we continued to demonstrate the earnings leverage in our business model and posted significant improvement in our profitability.

"We are off to a strong start for 2012, and if current trends continue, we are well positioned to exceed our targeted growth rates of 15 to 20 percent and post another record year.  Already, we have customer demand to fill half of our expanded alumina plant capacity and based on our current assessment of market demand for TiO2 pigments, we expect favorable pricing and volume trends to continue in our TiO2 pigment business. With strong market demand, we also foresee good opportunities for the future sale of available synthetic rutile to third parties," concluded Dr. Karasch. 

TOR Minerals will host a conference call at 4:00 p.m. Central Time on April 26, 2012, 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, www.torminerals.com.  Investors and interested parties may participate in the call by dialing 877-407-8033 and referring to conference ID # 392940. 

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

 TOR Minerals International, Inc. and Subsidiaries 

 Condensed Consolidated Statements of Income 

 (Unaudited) 

 (In thousands, except per share amounts) 

Three Months Ended March 31,

2012

2011

 NET SALES 

$

12,808

$

9,585

 Cost of sales 

9,618

7,494

 GROSS MARGIN 

3,190

2,091

 Technical services and research and development 

82

66

 Selling, general and administrative expenses 

1,224

1,159

 OPERATING INCOME 

1,884

866

 OTHER EXPENSE: 

 Interest expense 

(142)

(96)

 Gain (loss) on foreign currency exchange rate 

23

(48)

 INCOME BEFORE INCOME TAX 

1,765

722

 Income tax expense 

369

47

 NET INCOME  

$

1,396

$

675

 Less:  Preferred Stock Dividends 

-

15

 Basic Income Available to Common Shareholders 

$

1,396

$

660

 Plus:  6% Convertible Debenture Interest Expense 

22

22

 Plus:  Preferred Stock Dividends 

-

15

 Diluted Income Available to Common Shareholders 

$

1,418

$

697

 Income per common share: 

 Basic 

$

0.58

$

0.34

 Diluted 

$

0.41

$

0.22

 Weighted average common shares outstanding: 

 Basic 

2,402

1,941

 Diluted 

3,439

3,149

 TOR Minerals International, Inc. and Subsidiaries 

 Condensed Consolidated Balance Sheets 

 (In thousands, except per share amounts) 

 March 31, 2012 

 December 31, 2011 

 (Unaudited) 

 ASSETS 

 CURRENT ASSETS: 

 Cash and cash equivalents 

$

2,886

$

3,381

 Trade accounts receivable, net 

6,030

4,921

 Inventories  

20,697

18,673

 Other current assets 

992

832

 Total current assets 

30,605

27,807

 PROPERTY, PLANT AND EQUIPMENT, net  

21,403

20,138

 OTHER ASSETS 

23

22

 Total Assets 

$

52,031

$

47,967

 LIABILITIES AND SHAREHOLDERS' EQUITY 

 CURRENT LIABILITIES: 

 Accounts payable 

$

3,930

$

3,222

 Accrued expenses 

3,215

1,754

 Notes payable under lines of credit 

1,439

2,886

 Export credit refinancing facility 

2,457

1,254

 Current deferred tax liability 

-

46

 Current maturities - capital leases 

93

28

 Current maturities of long-term debt – financial institutions 

832

813

 Current maturities of long-term debt – convertible debentures 

91

91

 Total current liabilities 

12,057

10,094

 LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES  

 Capital leases 

27

34

 Long-term debt – financial institutions 

2,497

2,668

 Long-term debt – convertible debentures, net 

1,144

1,127

 DEFERRED TAX LIABILITY 

687

619

 Total liabilities 

16,412

14,542

 COMMITMENTS AND CONTINGENCIES  

 SHAREHOLDERS' EQUITY:  

 Common stock $1.25 par value:  authorized, 6,000 shares; 2,407 and 2,400 shares issued and outstanding at 3/31/2012 and 12/31/2011, respectively 

3,009

2,999

 Additional paid-in capital 

28,302

28,222

 Accumulated deficit 

(363)

(1,759)

 Accumulated other comprehensive income: 

 Cumulative translation adjustment 

4,671

3,963

 Total shareholders' equity 

35,619

33,425

 Total Liabilities and Shareholders' Equity 

$

52,031

$

47,967

 TOR Minerals International, Inc. and Subsidiaries 

 Condensed Consolidated Statements of Cash Flows 

 (Unaudited) 

 (In thousands) 

 Three Months Ended March 31, 

2012

2011

 CASH FLOWS FROM OPERATING ACTIVITIES: 

 Net Income 

$

1,396

$

675

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

 Depreciation 

540

499

 Share-based compensation 

6

2

 Warrant interest expense 

17

17

 Deferred income taxes 

5

41

 Changes in working capital: 

 Trade accounts receivables 

(1,031)

(897)

 Inventories 

(1,588)

(290)

 Other current assets 

(142)

(186)

 Accounts payable and accrued expenses 

2,043

603

 Net cash provided by operating activities 

1,246

464

 CASH FLOWS FROM INVESTING ACTIVITIES: 

 Additions to property, plant and equipment 

(1,315)

(513)

 Net cash used in investing activities 

(1,315)

(513)

 CASH FLOWS FROM FINANCING ACTIVITIES: 

 Payments on lines of credit 

(1,543)

(317)

 Net proceeds from (payments on) export credit refinancing facility 

1,159

(235)

 Net proceeds from (payments on) capital leases 

57

(25)

 Payments on long-term bank debt 

(204)

(122)

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

83

534

 Preferred stock dividends paid 

-

(15)

 Net cash used in financing activities 

(448)

(180)

 Effect of exchange rate fluctuations on cash and cash equivalents 

22

66

 Net decrease in cash and cash equivalents 

(495)

(163)

 Cash and cash equivalents at beginning of year 

3,381

2,559

 Cash and cash equivalents at end of period 

$

2,886

$

2,396

 Supplemental cash flow disclosures: 

 Interest paid 

$

140

$

96

 Non-cash financing activities: 

 Conversion of debentures 

$

-

$

25

 

SOURCE TOR Minerals International



RELATED LINKS

http://www.torminerals.com