CORPUS CHRISTI, Texas, March 1 /PRNewswire-FirstCall/ -- TOR
Minerals International (Nasdaq:
TORM -
News), producer of natural
titanium dioxide pigments and specialty aluminas, today announced its
financial results for the year ended December 31, 2005. The Company
reported net income available to shareholders of $423,000, or $0.05 per
share, versus $1,048,000, or $0.13 per share during 2004. Net sales for
2005 were $32,669,000 versus $30,476,000 reported for 2004.
For the quarter ended
December 31, 2005, the Company reported essentially breakeven results, on
net sales of $10,085,000. This compares with net income available to
shareholders of $185,000 or $0.02 per share, on net sales of $8,642,000
for the quarter ended December 31, 2004.
Fourth quarter revenue grew 16% year-over-year due to increased volumes
and pricing in both the HITOX® and specialty alumina businesses. Synthetic rutile sales, which were approximately 20% of fourth quarter revenue, were
flat compared to the same period in 2004. Profitability during the fourth
quarter of 2005 was negatively impacted by difficulties with the new HITOX
manufacturing process. While the Corpus Christi plant worked its way
through these manufacturing difficulties by the end of 2005, it required
significant labor and maintenance expense and significant quantities of
HITOX to be produced on the Company's natural gas consuming system, all of
which negatively impacted profitability during the fourth quarter of 2005.
Income tax expense increased during the fourth quarter, reflecting a
greater contribution of profits from foreign subsidiaries.
Mr. Richard Bowers, President and Chief Executive Officer, commented,
"2005 was a challenging year due to both internal and external factors.
While we are disappointed with the financial results, we are working hard
to make 2006 a better year. We have resolved the manufacturing issues that
we encountered with the new HITOX production process and almost all of
current HITOX production has shifted to our new process. We expect to
receive significant cost savings from this new process going forward. In
addition, we have shipped our first commercial orders for HITOX SF during
the fourth quarter of 2005 and the order rates are growing each month. We
have taken the appropriate steps to rationalize our operations in the
Netherlands to meet the anticipated level of business for our alumina
products and intensified our efforts to pursue existing and new
applications and customers to fill excess capacity at our Netherlands
plant."
As previously stated, the company expects cash flow from operations and
liquidity to be positive in 2006.
TOR Minerals will host a conference call at 4 p.m. Central Time on
March 1 to further discuss fourth quarter results. The call will be
simultaneously webcast, and can be accessed via the News section on the
Company's website at http://www.torminerals.com/ .
Based in Corpus Christi, Texas, TOR Minerals is an international
manufacturer of specialty mineral products for high performance
applications with plants 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 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 increase, commodity price increases, delays in
delivery of required equipment and other factors.
Contact for Further Information:
David Mossberg
Beacon Street Group, LLC
(817) 310-0051
Tables Follow
TOR Minerals International, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
December 31, December 31,
2005 2004
ASSETS
Current Assets $12,725 $12,446
Property, plant and equipment, net 19,535 18,988
Goodwill, net 1,729 1,981
Other assets 46 219
Total Assets $34,035 $33,634
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $5,095 $6,911
Long-term debt, excluding
current maturities 5,460 3,731
Deferred tax liability 528 279
Total Liabilities 11,083 10,921
Shareholders' equity 22,952 22,713
Total Liabilities &
Shareholders' Equity $34,035 $33,634
TOR Minerals International, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2005 2004 2005 2004
NET SALES $10,085 $8,642 $32,669 $30,476
Cost of sales 8,521 6,995 26,318 23,911
GROSS MARGIN 1,564 1,647 6,351 6,565
Technical services and research and
development 72 153 376 453
General, administrative and selling
expenses 1,140 1,186 4,506 4,567
(Gain) loss on disposal of assets --- --- (12) 55
OPERATING INCOME (LOSS) 352 308 1,481 1,490
OTHER INCOME (EXPENSE):
Interest expense, net (123) (73) (402) (228)
Other, net (12) 1 (125) 25
INCOME (LOSS) BEFORE INCOME TAX 217 236 954 1,287
Income tax expense 204 36 471 183
NET INCOME (LOSS) $13 $200 $483 $1,104
Less: Preferred Stock Dividends 15 15 60 56
Income (Loss) Available to Common
Shareholders $(2) $185 $423 $1,048
Income (loss) per common shareholder:
Basic $(0.00) $0.02 $0.05 $0.14
Diluted $(0.00) $0.02 $0.05 $0.13
Weighted average common shares
and equivalents outstanding
Basic 7,825 7,782 7,812 7,735
Diluted 7,825 8,071 8,129 8,034
