TOR Minerals International, Inc. Reports Second Quarter Financial Results
CORPUS CHRISTI, Texas, Aug. 3, 2017 /PRNewswire/ -- 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 |
|||
| Specialty Aluminas |
$ 6,003 |
$ 5,073 |
18% |
|||
| Barium Sulfate and Other Products |
2,148 |
2,194 |
-2% |
|||
| TiO2Pigments |
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.
"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
| TOR Minerals International, Inc. and Subsidiaries |
||||||||
| Condensed Consolidated Statements of Income |
||||||||
| (Unaudited) |
||||||||
| (In thousands, except per share amounts) |
||||||||
| Three Months |
Six Months |
|||||||
| 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 |
||||
| TOR Minerals International, Inc. and Subsidiaries |
||||
| Condensed Consolidated Balance Sheets |
||||
| (Unaudited) |
||||
| (In thousands, except per share amounts) |
||||
| June 30, |
December 31, |
|||
| 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; |
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 |
| TOR Minerals International, Inc. and Subsidiaries |
||||
| Condensed Consolidated Statements of Cash Flows |
||||
| (Unaudited) |
||||
| (In thousands) |
||||
| Six Months Ended |
||||
| 2017 |
2016 |
|||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||
| Net income |
$ |
220 |
$ |
331 |
| Adjustments to reconcile net income to net cash |
||||
| 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 |
$ |
- |
SOURCE TOR Minerals International, Inc.
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