Attached files

file filename
EX-99 - EXHIBIT 99, PRESS RELEASE - TOR MINERALS INTERNATIONAL INCexhibit99.htm

 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549


FORM 8‑K


CURRENT REPORT Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934


Date of report (Date of earliest event reported):  October 30, 2014

TOR Minerals International, Inc.
(Exact Name of Registrant as Specified in Its Charter)

Delaware
(State or Other Jurisdiction of Incorporation)

0-17321
(Commission File Number)

722 Burleson Street
Corpus Christi, Texas
(Address of Principal Executive Offices)

74-2081929
(IRS Employer Identification No.)


78402
(Zip Code)

(361) 883-5591
(Registrant's Telephone Number, Including Area Code)

N/A
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

1



ITEM 2.02          RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On September 30, 2014, TOR Minerals International (the "Company"), announced its financial results for the third quarter ended September 30, 2014.  Highlights for the third quarter of 2014 as compared to the third quarter of 2013 include:

  • 3Q14 revenue increased 4 percent to $11.3 million
  • 3Q14 net income of $296,000 versus 3Q13 net income of $113,000
  • 3Q14 diluted earnings per share of $0.09 versus 3Q13 earnings per share of $0.03
  • Book value was $11.48 per share based on our diluted share count at 9/30/14

Revenue by Product Group (in 000's)

 

 3Q14

 

 3Q13

 

 % Change

Specialty Aluminas

 $

5,200 

 $

4,309 

21%

Barium Sulfate and Other Products

2,477 

2,340 

6%

TiO2 Pigments

3,640 

4,221 

-14%

Total

 

 $

11,317 

 

 $

10,870 

 

4%

Net sales increased 4 percent during the third quarter of 2014, as sales growth in the Specialty alumina and Barium Sulfate products was partially offset by a decrease in TiO2 Pigment Sales. Specialty alumina sales, which include ALUPREM®, HALTEX® and OPTILOAD®, increased 21 percent over the prior year quarter, due primarily to strong sales growth of ALUPREM products to new and existing customers in Europe and in the U.S.  Barium Sulfate and Other product sales increased six percent, primarily due to increased volumes from new and existing BARTEX® customers in the U.S. and of BARYPREM to customers in Europe. Sales of titanium dioxide (TiO2) pigments products, which include HITOX®, TIOPREM® and synthetic rutile (SR), decreased 14 percent versus the prior year quarter, primarily due to continued weakness in demand and pricing in the global TiO2 industry. 

During the third quarter of 2014, gross margin was 13.3 percent of sales, versus 14.5 percent during the same period last year. The decrease in gross margin was primarily related to low levels of plant utilization at the Malaysian SR plant.  In addition lower average selling prices and higher overall inventory costs contributed to the year-over-year decrease. Operating expenses decreased 9 percent to $1.1 million, primarily related to a decrease in staffing levels.   Third quarter net income was $296,000, or $0.09 per diluted share, as compared to a net income of $113,000, or $0.03 per share, during the same period a year ago.

2



"Our Specialty Alumina business continues to post double-digit year-over-year growth, up 21 percent for the quarter and 27 percent year to date.  Combined with the strength of our Barium Sulfate and other product groups, we were able to more than offset the tough market conditions and lower utilization levels of our TiO2 business, allowing us to post overall revenue growth and maintain profitability," commented Dr. Olaf Karasch, Chief Executive Officer.

"We remain optimistic about the outlook for our specialty alumina business, and continue to expect double-digit revenue and profitability growth for this part of our business. Our TiO2 business is likely to continue to be negatively affected by softer demand trends and weak pricing across the industry," said Dr. Karasch. "Our strategic focus will remain on growing our specialty alumina business and improving efficiency and cost containment across all segments of the business. We believe this strategy should allow us to generate positive cash flow and produce continued improvement in profitability during the ongoing downturn in the TiO2 cycle."

TOR Minerals will host a conference call at 4:00 p.m. Central Time on October 30, 2014, to further discuss Third 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 # 13592665. 

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.

3



ITEM 9.01          FINANCIAL STATEMENTS AND EXHIBITS

(a)

Financial Statements of Businesses Acquired.
Not applicable.

(b)

Pro Forma Financial Information.
Not applicable.

(c)

Shell company transaction
Not applicable

(d)

Exhibits.
The following exhibit is furnished in accordance with the provisions of Item 601 of Regulation S-B:

Exhibit
Number


Description

99.1

Press Release, dated September 30, 2014, announcing the Company's third quarter 2014 financial results




SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


TOR MINERALS INTERNATIONAL, INC.
_____________________
(Registrant)



Date:  September 30, 2014

/s/ BARBARA RUSSELL

Barbara Russell
Chief Financial Officer

EXHIBIT INDEX

Exhibit No.

Description

 

99.1

Press Release, dated September 30, 2014, announcing the Company's third quarter 2014 financial results

4