ITEM 2.02
RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
.
On
August 3, 2017, TOR
Minerals International, Inc. (the
“Company”),
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
2017 vs. 2016
|
|
Specialty Aluminas
|
|
$
|
6,003
|
|
$
|
5,073
|
|
18%
|
|
Barium Sulfate and Other
Products
|
|
2,148
|
|
2,194
|
|
-2%
|
|
TiO
2
Pigments
|
|
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.
A
copy of this press release is furnished as Exhibit 99.1 to this Current Report
on Form 8-K.
