TOR Minerals International, Inc. (NASDAQ:TORM) Files An 8-K Results of Operations and Financial Condition
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL
CONDITION.
On April 26, 2017, TOR Minerals International, Inc. (the Company),
announced its financial results for the first quarter ended March
31, 2017.
Highlights for the first quarter of 2017 as compared to the first
quarter of 2016 include:
- 1Q17
revenue increased 12 percent to $10.7 million - 1Q17
net loss of ($132,000), versus 1Q16 net income of $244,000. - 1Q17
diluted net loss per share of ($0.04), versus 1Q16 net income per
share of $0.08
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Revenue by Product Group (in 000’s) |
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1Q17 |
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1Q16 |
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% Change 2017 vs. 2016 |
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Specialty Aluminas |
$ |
5,743 |
$ |
4,834 |
19% |
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Barium Sulfate and Other Products |
2,350 |
2,329 |
1% |
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TiO Pigments |
2,603 |
2,409 |
8% |
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Total |
$ |
10,696 |
$ |
9,572 |
12% |
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During the first quarter ended March 31, 2017, revenue increased 12
percent to $10.7 million, versus $9.6 million reported during the
same period of 2016. The increase in revenue was primarily due to
continued growth in specialty alumina sales, as well as incremental
growth in TiO2 pigment sales. The increase in specialty alumina
sales was due to strong growth to both existing and new customers
in the U.S. and Europe, as well as increased volumes from a
significant U.S. customer. The increase in TiO2 pigment sales was
primarily due to significant growth in volume in Europe and Asia,
partially offset by a decrease in U.S. sales and a mid-single-digit
decrease in average selling price.
During the first quarter of 2017, gross margin decreased 3.3
percentage points to 10.5 percent of sales. The decrease in gross
margin was primarily related to a temporary increase in maintenance
activities and costs at the U.S. and Netherlands-based
manufacturing facilities, which negatively affected utilization and
efficiencies of these operations. During the first quarter, SGA
expenses were $1.2 million, versus $0.8 million during the first
quarter of 2016. SGA costs during the first quarter of 2016
benefited by $273,000, from the reversal of a bad debt expense,
which had previously been deemed uncollectable. Excluding this from
the comparison, SGA costs increased seven percent year over year,
which was primarily due to increases in sales commissions and
salaries and benefits. During the first quarter of 2017, the net
loss was ($132,000), or ($0.04) per diluted share, as compared to
net income of $244,000, or $0.08 per diluted share, during the
prior year.
We had mixed results during the first quarter with strong revenue
growth offset by a temporary decrease in gross margin performance.
While extended-maintenance affected our margin performance during
the first quarter, we expect the level of maintenance activity will
return to normal during the balance of the year, commented Dr. Olaf
Karasch, Chief Executive Officer. First quarter marked a clear
turning point in the health of our TiO2 business with the first
positive year-over-year comparison in more than three years. We
have recently implemented price increases for TiO2 pigments in
certain geographies and have added distribution capabilities. As we
enter the seasonally strong period for TiO2, the segment is
well-positioned to deliver profitable growth for the year. We also
expect profitable growth from our specialty alumina business this
year as efforts to diversify the revenue mix are gaining traction
with new and existing customers in new application areas and new
geographies. Overall we remain confident that we are
well-positioned to deliver double-digit revenue growth during 2017,
as well as further improve profitability and returns for our
shareholders.
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TOR Minerals will host a conference call at 5:00 p.m. Eastern,
4:00 p.m. Central Time, on April 26, 2017, 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 # 13659260.
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.
A copy of this press release is furnished as Exhibit 99.1 to this
Current Report on Form 8-K.
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ITEM 9.01 FINANCIAL STATEMENTS AND
EXHIBITS
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(a) |
Financial Statements of Businesses Acquired. Not |
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(b) |
Pro Forma Financial Information. Not applicable. |
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(c) |
Shell company transaction Not applicable |
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(d) |
Exhibits. The following exhibit is furnished in |
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Exhibit Number |
Description |
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99.1 |
Press Release, dated April 26, 2017 reporting the |
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About TOR Minerals International, Inc. (NASDAQ:TORM)
TOR Minerals International, Inc. is a manufacturer and seller of mineral products for use as pigments and extenders, primarily in the manufacture of paints, industrial coatings plastics, and solid surface applications. The Company’s specialty mineral products, which include flame retardant and smoke suppressant fillers, engineered fillers, and titanium dioxide (TiO2)-color hybrid pigments, are designed for use in plastics, coatings, paints and catalysts applications, as well as a range of other industrial applications. The Company and its subsidiaries operate in the business of pigment manufacturing and related products in three geographic segments, namely, United States, European and Asian. Its manufacturing plant in the United States is located in Corpus Christi, Texas. HITOX, BARTEX, HALTEX, OPTILOAD and TIOPREM are the products produced at the manufacturing plant. Premium Alumina Trihydrate (ATH) and Boehmite (AMH) products are produced at the Company’s European operation. TOR Minerals International, Inc. (NASDAQ:TORM) Recent Trading Information
TOR Minerals International, Inc. (NASDAQ:TORM) closed its last trading session up +0.05 at 7.15 with 3,915 shares trading hands.