Minerals Technologies Inc. (NYSE: MTX) (“MTI” or “the Company”)
today reported diluted earnings per share of $1.31 excluding
special items for the second quarter ended July 3, 2023. Reported
earnings per share were $0.82.
“We delivered a solid quarter with continued margin and cash
flow improvement. This was driven by our team’s focused execution
and the commitment to deliver on our targets. In addition,
following our recent re-segmentation, we identified organizational
efficiencies that will further streamline our cost structure,” said
Douglas T. Dietrich, Chairman and Chief Executive Officer.
“Further, we announced our subsidiary, Barretts Minerals Inc.,
will exit from the talc market, and we initiated a sale process. We
are also taking prudent steps to ensure that any liabilities
associated with talc are dealt with effectively and efficiently,”
said Mr. Dietrich.
Second Quarter 2023
Worldwide net sales were $552 million, up 1 percent sequentially
and down 1 percent from the prior year. Foreign exchange had an
unfavorable impact of approximately $8 million or 1 percentage
point.
Operating income was $50 million. Excluding special items,
operating income was $71 million, up 12 percent sequentially and 4
percent below the prior year as the Company continues to catch up
on inflationary cost increases through higher pricing. Operating
margin excluding special items was 12.8 percent, a 120 basis point
improvement sequentially.
The Company recorded special items of $20.7 million, primarily
consisting of severance costs of $6.6 million related to a
restructuring program and $13.9 million of additional litigation
costs. The litigation costs were incurred to defend against and
restore its reserve for claims associated with certain talc
products from the Barretts Minerals Inc. subsidiary. The Company
previously announced that it will exit the talc business following
a strategic review of its operations and amidst the backdrop of the
talc-related litigation environment.
Consumer & Specialties segment sales were
$290 million in the second quarter, down 2 percent sequentially and
up 3 percent over the prior year.
Household & Personal Care sales were $126 million, down 3
percent sequentially and up 6 percent from the prior year as the
impact from our pricing actions and continued strong demand for our
pet litter products more than offset mixed demand conditions across
other consumer end markets. Specialty Additives sales were $165
million, down 2 percent sequentially and flat over the prior
year.
Segment operating income was $34 million, excluding special
items, up 5 percent sequentially and 1 percent over the prior year.
Operating margin excluding special items was 11.7 percent, up 90
basis points sequentially as the segment benefitted from pricing
actions and strong demand for pet litter. Reported segment
operating income was $19 million, or 6.7 percent of sales.
Additionally, the Company announced that it has entered into an
agreement with a leading pulp and paper company to deploy MTI’s
sustainable New Yield® LO Precipitated Calcium Carbonate (PCC)
technology at an existing plant in Brazil.
The Consumer & Specialties segment provides technologically
enhanced products to consumer-driven end markets, including
mineral-to-shelf household products, as well as specialty additives
that become functional components in a variety of consumer and
industrial goods. This segment includes two product lines:
Household & Personal Care and Specialty Additives.
Engineered Solutions segment sales were $261
million in the second quarter, up 5 percent sequentially, but 5
percent below the prior year.
High-Temperature Technologies sales were $183 million, an
increase of 2 percent sequentially and 2 percent below the prior
year driven by soft steel market conditions in Europe.
Environmental & Infrastructure sales were $79 million, 12
percent higher sequentially but 10 percent lower than the prior
year due to the weak commercial construction market conditions in
North America.
Segment operating income was $38 million excluding special
items, 9 percent higher sequentially, but 8 percent lower than the
prior year. Operating margins represented 14.7 percent of sales,
excluding special items. Reported segment operating income was $35
million and 13.5 percent of sales.
The Engineered Solutions segment provides advanced process
technologies and solutions that are designed to improve our
customers’ manufacturing processes and projects. This segment
includes two product lines: High-Temperature Technologies and
Environmental & Infrastructure.
Company-wide cost savings program
MTI has initiated a cost savings program, primarily through
workforce reductions. The annualized savings from the program will
be approximately $10 million, beginning late in the third quarter
of 2023 and achieving full run-rate in the first half of 2024. The
Company will provide additional details in the coming quarters as
part of its regular earnings reporting cycle.
-----------------Minerals
Technologies will host a conference call tomorrow, July 28, 2023,
at 11 a.m. Eastern Time. The live earnings webcast can be accessed
at
https://investors.mineralstech.com/quarterly-results-conference-calls.
A presentation for the call will be available at the same location
at approximately 10:30 a.m. Eastern Time on July 28, 2023.
-----------------
FORWARD-LOOKING STATEMENTS
This press release may contain "forward‐looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements provide current expectations
and forecasts of future events such as new products, revenues and
financial performance, and are not limited to describing historical
or current facts. They can be identified by the use of words such
as “believes,” “expects,” “plans,” “intends,” “anticipates,” and
other words and phrases of similar meaning. Forward-looking
statements are necessarily based on assumptions, estimates and
limited information available at the time they are made. A broad
variety of risks and uncertainties, both known and unknown, as well
as the inaccuracy of assumptions and estimates, can affect the
realization of the expectations or forecasts in these statements.
Actual future results may vary materially. Significant factors that
could affect the expectations and forecasts include worldwide
general economic, business, and industry conditions; the
cyclicality of our customers’ businesses and their changing
regional demands; our ability to compete in very competitive
industries; consolidation in customer industries, principally
paper, foundry and steel; our ability to renew or extend long term
sales contracts for our satellite operations; our ability to
generate cash to service our debt; our ability to comply with the
covenants in the agreements governing our debt; our ability to
effectively achieve and implement our growth initiatives or
consummate the transactions described in the statements; our
ability to successfully develop new products; our ability to defend
our intellectual property; the increased risks of doing business
abroad; the availability of raw materials and access to ore
reserves at our mining operations, or increases in costs of raw
materials, energy, or shipping; compliance with or changes to
regulation in the areas of environmental, health and safety, and
tax; claims for legal, environmental and tax matters or product
stewardship issues; the continuing effects of the COVID-19 pandemic
and the resulting preventative measures; operating risks and
capacity limitations affecting our production facilities;
seasonality of some of our businesses; cybersecurity and other
threats relating to our information technology systems; and other
risk factors and cautionary statements in our 2022 Annual Report on
Form 10‐K, Quarterly Reports on Form 10-Q, Current Reports on Form
8-K and other reports filed with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly update
any forward‐looking statement, whether as a result of new
information, future events, or otherwise.
About Minerals Technologies
Inc.New York-based Minerals Technologies Inc. (MTI) is a
leading, technology-driven specialty minerals company that
develops, produces, and markets a broad range of mineral and
mineral-based products, related systems, and services. MTI serves
globally a wide range of consumer and industrial markets, including
household, food and pharmaceutical, paper, packaging, automotive,
construction, and environmental. The Company reported global sales
of $2.1 billion in 2022. For further information, please visit our
website at www.mineralstech.com.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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MINERALS TECHNOLOGIES INC. AND SUBSIDIARY
COMPANIES |
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(in millions, except per share data) |
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(unaudited) |
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Quarter Ended |
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% Growth |
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Six Months Ended |
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% Growth |
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Jul. 2, |
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Apr. 2, |
Jul. 3, |
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Jul. 2, |
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Jul. 3, |
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2023 |
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2023 |
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2022 |
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Prior Qtr. |
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Prior Year |
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2023 |
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2022 |
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Prior Year |
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Net sales |
$ |
551.5 |
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$ |
546.1 |
|
$ |
557.0 |
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1 |
% |
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(1 |
)% |
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$ |
1,097.6 |
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$ |
1,076.1 |
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2 |
% |
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Cost of goods sold |
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423.5 |
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425.4 |
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429.7 |
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(0 |
)% |
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(1 |
)% |
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|
848.9 |
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|
827.1 |
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3 |
% |
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Production margin |
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128.0 |
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120.7 |
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127.3 |
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6 |
% |
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1 |
% |
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|
248.7 |
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|
249.0 |
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(0 |
)% |
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Marketing and administrative expenses |
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51.8 |
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52.3 |
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48.8 |
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(1 |
)% |
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6 |
% |
|
|
104.1 |
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|
97.6 |
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|
7 |
% |
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Research and development expenses |
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5.6 |
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5.3 |
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5.0 |
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6 |
% |
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12 |
% |
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|
10.9 |
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10.1 |
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8 |
% |
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Restructuring and other items, net |
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6.6 |
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0.0 |
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0.0 |
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* |
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* |
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6.6 |
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0.0 |
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* |
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Acquisition related expenses |
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0.2 |
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|
0.1 |
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2.6 |
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* |
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* |
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0.3 |
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4.2 |
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* |
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Litigation expenses |
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13.9 |
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0.0 |
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|
1.5 |
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* |
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* |
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13.9 |
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1.5 |
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* |
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Income from operations |
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49.9 |
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|
63.0 |
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|
69.4 |
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(21 |
)% |
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(28 |
)% |
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|
112.9 |
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|
135.6 |
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(17 |
)% |
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Interest expense, net |
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(14.5 |
) |
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(14.2 |
) |
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(10.4 |
) |
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2 |
% |
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39 |
% |
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(28.7 |
) |
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(20.2 |
) |
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42 |
% |
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Non-cash pension settlement charge |
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0.0 |
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0.0 |
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(1.5 |
) |
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* |
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* |
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0.0 |
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(1.5 |
) |
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* |
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Other non-operating income (deductions), net |
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(1.4 |
) |
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(1.1 |
) |
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(1.2 |
) |
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27 |
% |
|
17 |
% |
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|
(2.5 |
) |
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(1.6 |
) |
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* |
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Total non-operating deductions, net |
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(15.9 |
) |
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(15.3 |
) |
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(13.1 |
) |
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4 |
% |
|
21 |
% |
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(31.2 |
) |
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(23.3 |
) |
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34 |
% |
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Income before tax and equity in earnings |
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34.0 |
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47.7 |
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56.3 |
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(29 |
)% |
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(40 |
)% |
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|
81.7 |
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|
112.3 |
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(27 |
)% |
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Provision for taxes on income |
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7.5 |
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10.5 |
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11.4 |
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(29 |
)% |
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(34 |
)% |
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|
18.0 |
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|
22.6 |
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(20 |
)% |
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Equity in earnings of affiliates, net of tax |
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1.1 |
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0.9 |
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0.6 |
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|
22 |
% |
|
83 |
% |
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2.0 |
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0.7 |
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|
186 |
% |
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Net income |
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27.6 |
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|
38.1 |
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45.5 |
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(28 |
)% |
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(39 |
)% |
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|
65.7 |
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|
90.4 |
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(27 |
)% |
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Less: Net income attributable to non-controlling interests |
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1.0 |
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1.1 |
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0.6 |
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(9 |
)% |
|
67 |
% |
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|
2.1 |
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1.4 |
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|
50 |
% |
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Net Income attributable to Minerals Technologies Inc. (MTI) |
$ |
26.6 |
|
$ |
37.0 |
|
$ |
44.9 |
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|
(28 |
)% |
|
(41 |
)% |
|
$ |
63.6 |
|
$ |
89.0 |
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(29 |
)% |
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Weighted average number of common shares outstanding: |
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Basic |
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32.5 |
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32.5 |
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32.8 |
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32.5 |
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33.0 |
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Diluted |
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32.6 |
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32.5 |
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32.9 |
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32.5 |
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33.1 |
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Earnings per share attributable to MTI: |
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Basic |
$ |
0.82 |
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$ |
1.14 |
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$ |
1.37 |
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|
(28 |
)% |
|
(40 |
)% |
|
$ |
1.96 |
|
$ |
2.70 |
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|
(27 |
)% |
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Diluted |
$ |
0.82 |
|
$ |
1.14 |
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$ |
1.36 |
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|
(28 |
)% |
|
(40 |
)% |
|
$ |
1.96 |
|
$ |
2.69 |
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|
(27 |
)% |
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Cash dividends declared per common share |
$ |
0.05 |
|
$ |
0.05 |
|
$ |
0.05 |
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$ |
0.10 |
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$ |
0.10 |
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* Percentage not meaningful |
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MINERALS TECHNOLOGIES INC. AND SUBSIDIARY
COMPANIES |
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|
NOTES TO
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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1 |
) |
For comparative purposes, the quarterly periods ended July 2, 2023,
April 2, 2023, and July 3, 2022 consisted of 91 days, 92 days, and
91 days, respectively. The six month periods ended July 2, 2023 and
July 3, 2022 consisted of 183 days and 184 days, respectively. |
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2 |
) |
On a regular basis the Company reviews its segments and the
approach used by the chief decision maker to assess performance and
allocate resources. Accordingly, in Q1 2023, the Company realigned
its business reporting structure into two segments, Consumer &
Specialties and Engineered Solutions. |
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|
The Consumer & Specialties segment provides technologically
enhanced products to consumer-driven end markets, including
mineral-to-shelf household products, as well as specialty additives
that become functional components in a variety of consumer and
industrial goods. This segment includes two product lines:
Household & Personal Care and Specialty Additives. The
Engineered Solutions segment provides advanced process technologies
and solutions that are designed to improve our customers’
manufacturing processes and projects. This segment includes two
product lines: High-Temperature Technologies and Environmental
& Infrastructure. |
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|
We believe the new structure better aligns our businesses and
technologies with our customers and end markets and creates a more
efficient and effective management structure that reflects the way
performance is evaluated and resources are allocated. |
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For historical consolidated financial information based upon the
new segment reporting structure, please see the Company's Form 8-K
filed on March 15, 2023. |
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3 |
) |
To supplement the Company's consolidated financial statements
presented in accordance with GAAP, the following is a presentation
of the Company's non-GAAP earnings per share, excluding special
items, for the quarterly periods ended July 2, 2023, April 2, 2023,
and July 3, 2022, and the six month periods ended July 2, 2023 and
July 3, 2022 and a reconciliation to reported earnings per share
for such periods. The Company's management believes these non-GAAP
measures provide meaningful supplemental information regarding its
performance as inclusion of such special items are not indicative
of the ongoing operating results and thereby affect the
comparability of results between periods. The Company believes
inclusion of these non-GAAP measures also provides consistency in
its financial reporting and facilitates investors' understanding of
historic operating trends. |
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(millions of
dollars) |
|
Quarter Ended |
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|
Six Months Ended |
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|
Jul. 2, |
|
Apr. 2, |
|
Jul. 3, |
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Jul. 2, |
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Jul. 3, |
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2023 |
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|
2023 |
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|
2022 |
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|
2023 |
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|
2022 |
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Net income
attributable to MTI |
$ |
26.6 |
|
$ |
37.0 |
|
$ |
44.9 |
|
|
|
$ |
63.6 |
|
$ |
89.0 |
|
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|
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% of
sales |
|
4.8% |
|
|
6.8% |
|
|
8.1% |
|
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|
5.8% |
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|
8.3% |
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Special
items: |
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|
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Restructuring and other items, net |
|
6.6 |
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|
0.0 |
|
|
0.0 |
|
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|
6.6 |
|
|
0.0 |
|
|
|
|
Acquisition
related expenses |
|
0.2 |
|
|
0.1 |
|
|
2.6 |
|
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|
|
0.3 |
|
|
4.2 |
|
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|
Litigation
expenses |
|
13.9 |
|
|
0.0 |
|
|
1.5 |
|
|
|
|
13.9 |
|
|
1.5 |
|
|
|
|
Non-cash
pension settlement charge |
|
0.0 |
|
|
0.0 |
|
|
1.5 |
|
|
|
|
0.0 |
|
|
1.5 |
|
|
|
|
Related tax
effects on special items |
|
(4.6 |
) |
|
0.0 |
|
|
(1.3 |
) |
|
|
|
(4.6 |
) |
|
(1.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to MTI, excluding special items |
$ |
42.7 |
|
$ |
37.1 |
|
$ |
49.2 |
|
|
|
$ |
79.8 |
|
$ |
94.5 |
|
|
|
|
% of
sales |
|
7.7% |
|
|
6.8% |
|
|
8.8% |
|
|
|
|
7.3% |
|
|
8.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share, excluding special items |
$ |
1.31 |
|
$ |
1.14 |
|
$ |
1.50 |
|
|
|
$ |
2.46 |
|
$ |
2.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the second quarter of 2023, the Company initiated a
restructuring and cost savings program to further streamline our
cost structure as a result of organizational efficiencies gained
through our recent resegmentation. Accordingly, the Company
recorded restructuring and other charges of $6.6 million related to
severance and other costs. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the second quarter of 2023, the Company recorded incremental
litigation costs of $13.9 million incurred to defend against,
opportunistically settle, and restore our reserve for claims
associated with certain talc products from our Barretts Minerals
Inc. subsidiary. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
) |
Free cash flow is defined as cash flow from operations less capital
expenditures. The following is a presentation of the Company's
non-GAAP free cash flow for the quarterly periods ended July 2,
2023, April 2, 2023, and July 3, 2022, and the six month periods
ended July 2, 2023 and July 3, 2022 and a reconciliation to cash
flow from operations for such periods. The Company's management
believes this non-GAAP measure provides meaningful supplemental
information as management uses this measure to evaluate the
Company's ability to maintain capital assets, satisfy current and
future obligations, repurchase stock, pay dividends and fund future
business opportunities. Free cash flow is not a measure of cash
available for discretionary expenditures since the Company has
certain non-discretionary obligations such as debt service that are
not deducted from the measure. The Company's definition of free
cash flow may not be comparable to similarly titled measures
reported by other companies. |
|
|
|
Quarter Ended |
|
|
Six Months Ended |
|
|
(millions of
dollars) |
|
Jul. 2, |
|
Apr. 2, |
|
Jul. 3, |
|
|
|
Jul. 2, |
|
Jul. 3, |
|
|
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
Cash flow
from operations |
$ |
45.5 |
|
$ |
33.7 |
|
$ |
32.9 |
|
|
$ |
|
79.2 |
|
$ |
33.2 |
|
|
|
|
Capital
expenditures |
|
21.4 |
|
|
24.5 |
|
|
21.2 |
|
|
|
|
45.9 |
|
|
40.2 |
|
|
|
|
Free cash
flow |
$ |
24.1 |
|
$ |
9.2 |
|
$ |
11.7 |
|
|
$ |
|
33.3 |
|
$ |
(7.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization expense |
$ |
23.5 |
|
$ |
23.7 |
|
$ |
23.7 |
|
|
$ |
|
47.2 |
|
$ |
47.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
) |
“Adjusted EBITDA” is a non-GAAP financial measure and refers to
earnings before interest, taxes, depreciation and amortization
(EBITDA), excluding special items. The following is a presentation
of the Company's non-GAAP EBITDA and Adjusted EBITDA for the
quarterly periods ended July 2, 2023, April 2, 2023, and July 3,
2022, and the six month periods ended July 2, 2023 and July 3,
2022, and a reconciliation to net income for such periods. The
Company's management believes these non-GAAP measures provide
meaningful supplemental information regarding its performance and
facilitates investors' understanding of historic operating
trends. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
Six Months Ended |
|
|
(millions of
dollars) |
|
Jul. 2, |
|
Apr. 2, |
|
Jul. 3, |
|
|
|
Jul. 2, |
|
Jul. 3, |
|
|
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
26.6 |
|
$ |
37.0 |
|
$ |
44.9 |
|
|
|
$ |
63.6 |
|
$ |
89.0 |
|
|
|
|
Add
back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
23.5 |
|
|
23.7 |
|
|
23.7 |
|
|
|
|
47.2 |
|
|
47.9 |
|
|
|
|
Interest expense, net |
|
14.5 |
|
|
14.2 |
|
|
10.4 |
|
|
|
|
28.7 |
|
|
20.2 |
|
|
|
|
Equity in earnings of affiliates, net of tax |
|
(1.1 |
) |
|
(0.9 |
) |
|
(0.6 |
) |
|
|
|
(2.0 |
) |
|
(0.7 |
) |
|
|
|
Net income attributable to non-controlling interests |
|
1.0 |
|
|
1.1 |
|
|
0.6 |
|
|
|
|
2.1 |
|
|
1.4 |
|
|
|
|
Provision for taxes on income |
|
7.5 |
|
|
10.5 |
|
|
11.4 |
|
|
|
|
18.0 |
|
|
22.6 |
|
|
|
|
EBITDA |
|
72.0 |
|
|
85.6 |
|
|
90.4 |
|
|
|
|
157.6 |
|
|
180.4 |
|
|
|
|
Add special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other items, net |
|
6.6 |
|
|
0.0 |
|
|
0.0 |
|
|
|
|
6.6 |
|
|
0.0 |
|
|
|
|
Acquisition related expenses |
|
0.2 |
|
|
0.1 |
|
|
2.6 |
|
|
|
|
0.3 |
|
|
4.2 |
|
|
|
|
Litigation expenses |
|
13.9 |
|
|
0.0 |
|
|
1.5 |
|
|
|
|
13.9 |
|
|
1.5 |
|
|
|
|
Non-cash pension settlement charge |
|
0.0 |
|
|
0.0 |
|
|
1.5 |
|
|
|
|
0.0 |
|
|
1.5 |
|
|
|
|
Adjusted EBITDA |
$ |
92.7 |
|
$ |
85.7 |
|
$ |
96.0 |
|
|
|
$ |
178.4 |
|
$ |
187.6 |
|
|
|
|
%
of sales |
|
16.8% |
|
|
15.7% |
|
|
17.2% |
|
|
|
|
16.3% |
|
|
17.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 |
) |
The following table reflects the components of non-operating income
and deductions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of
dollars) |
|
Quarter Ended |
|
|
Six Months Ended |
|
|
|
|
Jul. 2, |
|
Apr. 2, |
|
Jul. 3, |
|
|
|
Jul. 2, |
|
Jul. 3, |
|
|
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
Interest income |
$ |
0.8 |
|
$ |
0.7 |
|
$ |
0.8 |
|
|
|
$ |
1.5 |
|
$ |
1.6 |
|
|
|
|
Interest expense |
|
(15.3 |
) |
|
(14.9 |
) |
|
(11.2 |
) |
|
|
|
(30.2 |
) |
|
(21.8 |
) |
|
|
|
Non-cash pension settlement charge |
|
0.0 |
|
|
0.0 |
|
|
(1.5 |
) |
|
|
|
0.0 |
|
|
(1.5 |
) |
|
|
|
Foreign exchange gains |
|
1.3 |
|
|
0.2 |
|
|
0.6 |
|
|
|
|
1.5 |
|
|
1.5 |
|
|
|
|
Other deductions |
|
(2.7 |
) |
|
(1.3 |
) |
|
(1.8 |
) |
|
|
|
(4.0 |
) |
|
(3.1 |
) |
|
|
|
Non-operating deductions, net |
$ |
(15.9 |
) |
$ |
(15.3 |
) |
$ |
(13.1 |
) |
|
|
$ |
(31.2 |
) |
$ |
(23.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in
non-operating deductions for both the three month and six month
periods ended July 3, 2022 are non-cash pension settlement charges
of $1.5 million associated with some of our pension plans in the
U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
) |
The analyst conference call to discuss operating results for the
second quarter is scheduled for Friday, July 28, 2023 at 11:00 am
ET and will be broadcast over the Company's website
(www.mineralstech.com). The broadcast will remain on the Company's
website for no less than one year. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY DATA |
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY
COMPANIES |
(millions of dollars) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
% Growth |
|
|
Six Months Ended |
|
% Growth |
SALES DATA |
|
Jul. 2,2023 |
|
% of |
|
Apr. 2,2023 |
|
% of |
|
Jul. 3,2022 |
|
% of |
|
|
|
|
|
|
Jul. 2, 2023 |
|
% of |
|
Jul. 3,2022 |
|
% of |
|
|
|
|
|
Total Sales |
|
|
Total Sales |
|
|
Total Sales |
|
Prior Qtr. |
Prior Year |
|
|
|
Total Sales |
|
|
Total Sales |
|
Prior Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
$ |
294.7 |
|
53 |
% |
$ |
288.0 |
|
53 |
% |
$ |
303.1 |
|
54 |
% |
|
2 |
% |
|
(3 |
)% |
|
$ |
582.7 |
|
53 |
% |
$ |
572.8 |
|
53 |
% |
|
2 |
% |
International |
|
256.8 |
|
47 |
% |
|
258.1 |
|
47 |
% |
|
253.9 |
|
46 |
% |
|
(1 |
)% |
|
1 |
% |
|
|
514.9 |
|
47 |
% |
|
503.3 |
|
47 |
% |
|
2 |
% |
Net Sales |
$ |
551.5 |
|
100 |
% |
$ |
546.1 |
|
100 |
% |
$ |
557.0 |
|
100 |
% |
|
1 |
% |
|
(1 |
)% |
|
$ |
1,097.6 |
|
100 |
% |
$ |
1,076.1 |
|
100 |
% |
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Household & Personal Care |
$ |
125.5 |
|
23 |
% |
$ |
129.2 |
|
23 |
% |
$ |
118.9 |
|
21 |
% |
|
(3 |
)% |
|
6 |
% |
|
$ |
254.7 |
|
24 |
% |
$ |
239.3 |
|
23 |
% |
|
6 |
% |
Specialty Additives |
|
164.8 |
|
30 |
% |
|
168.1 |
|
31 |
% |
|
164.3 |
|
29 |
% |
|
(2 |
)% |
|
0 |
% |
|
|
332.9 |
|
30 |
% |
|
327.4 |
|
30 |
% |
|
2 |
% |
Consumer & Specialties Segment |
$ |
290.3 |
|
53 |
% |
$ |
297.3 |
|
54 |
% |
$ |
283.2 |
|
50 |
% |
|
(2 |
)% |
|
3 |
% |
|
$ |
587.6 |
|
54 |
% |
$ |
566.7 |
|
53 |
% |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-Temperature Technologies |
$ |
182.6 |
|
33 |
% |
$ |
178.6 |
|
33 |
% |
$ |
186.7 |
|
34 |
% |
|
2 |
% |
|
(2 |
)% |
|
$ |
361.2 |
|
33 |
% |
$ |
356.6 |
|
33 |
% |
|
1 |
% |
Environmental & Infrastructure |
|
78.6 |
|
14 |
% |
|
70.2 |
|
13 |
% |
|
87.1 |
|
16 |
% |
|
12 |
% |
|
(10 |
)% |
|
|
148.8 |
|
13 |
% |
|
152.8 |
|
14 |
% |
|
(3 |
)% |
Engineered Solutions Segment |
$ |
261.2 |
|
47 |
% |
$ |
248.8 |
|
46 |
% |
$ |
273.8 |
|
50 |
% |
|
5 |
% |
|
(5 |
)% |
|
$ |
510.0 |
|
46 |
% |
$ |
509.4 |
|
47 |
% |
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
551.5 |
|
100 |
% |
$ |
546.1 |
|
100 |
% |
$ |
557.0 |
|
100 |
% |
|
1 |
% |
|
(1 |
)% |
|
$ |
1,097.6 |
|
100 |
% |
$ |
1,076.1 |
|
100 |
% |
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY DATA |
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY
COMPANIES |
(millions of dollars) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
% Growth |
|
|
Six Months Ended |
|
% Growth |
SEGMENT OPERATING INCOME DATA |
|
Jul. 2, |
|
Apr. 2, |
|
Jul. 3, |
|
Prior |
|
Prior |
|
|
Jul. 2, |
|
Jul. 3, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
Qtr. |
|
Year |
|
|
2023 |
|
|
2022 |
|
|
Prior Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer & Specialties Segment |
$ |
19.4 |
|
$ |
32.2 |
|
$ |
31.6 |
|
|
(40 |
)% |
|
(39 |
)% |
|
$ |
51.6 |
|
$ |
62.9 |
|
|
(18 |
)% |
% of Sales |
|
6.7% |
|
|
10.8% |
|
|
11.2% |
|
|
|
|
|
|
|
8.8% |
|
|
11.1% |
|
|
|
Engineered Solutions Segment |
$ |
35.2 |
|
$ |
35.3 |
|
$ |
41.7 |
|
|
(0 |
)% |
|
(16 |
)% |
|
$ |
70.5 |
|
$ |
79.0 |
|
|
(11 |
)% |
% of Sales |
|
13.5% |
|
|
14.2% |
|
|
15.2% |
|
|
|
|
|
|
|
13.8% |
|
|
15.5% |
|
|
|
Unallocated and Other Corporate Expenses |
$ |
(4.7 |
) |
$ |
(4.5 |
) |
$ |
(3.9 |
) |
|
4 |
% |
|
21 |
% |
|
$ |
(9.2 |
) |
$ |
(6.3 |
) |
|
46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
49.9 |
|
$ |
63.0 |
|
$ |
69.4 |
|
|
(21 |
)% |
|
(28 |
)% |
|
$ |
112.9 |
|
$ |
135.6 |
|
|
(17 |
)% |
% of Sales |
|
9.0% |
|
|
11.5% |
|
|
12.5% |
|
|
|
|
|
|
|
10.3% |
|
|
12.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer & Specialties Segment |
$ |
14.5 |
|
$ |
0.0 |
|
$ |
2.0 |
|
|
* |
|
* |
|
$ |
14.5 |
|
$ |
3.0 |
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Solutions Segment |
$ |
3.2 |
|
$ |
0.0 |
|
$ |
0.0 |
|
|
* |
|
* |
|
$ |
3.2 |
|
$ |
0.0 |
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated and Other Corporate Expenses |
$ |
3.0 |
|
$ |
0.1 |
|
$ |
2.1 |
|
|
* |
|
* |
|
$ |
3.1 |
|
$ |
2.7 |
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
20.7 |
|
$ |
0.1 |
|
$ |
4.1 |
|
|
* |
|
* |
|
$ |
20.8 |
|
$ |
5.7 |
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To supplement the Company's consolidated financial statements
presented in accordance with GAAP, the following is a presentation
of the Company's non-GAAP operating income. This excludes special
items (set forth in the above table), for the quarterly periods
ended July 2, 2023, April 2, 2023, and July 3, 2022, and the six
month periods ended July 2, 2023 and July 3, 2022, constituting a
reconciliation to GAAP operating income set forth above. The
Company's management believe these non-GAAP measures provide
meaningful supplemental information regarding its performance as
inclusion of such special items are not indicative of ongoing
operating results and thereby affect the comparability of results
between periods. The Company believes inclusion of these non-GAAP
measures also provides consistency in its financial reporting and
facilitates investors' understanding of historic operating
trends. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
% Growth |
|
|
Six Months Ended |
|
% Growth |
SEGMENT OPERATING INCOME, |
|
Jul. 2, |
|
Apr. 2, |
|
Jul. 3, |
|
|
|
|
|
|
Jul. 2, |
|
Jul. 3, |
|
|
EXCLUDING SPECIAL
ITEMS |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
Prior Qtr. |
Prior Year |
|
2023 |
|
|
2022 |
|
|
Prior Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer & Specialties Segment |
$ |
33.9 |
|
$ |
32.2 |
|
$ |
33.6 |
|
|
5 |
% |
|
1 |
% |
|
$ |
66.1 |
|
$ |
65.9 |
|
|
0 |
% |
% of Sales |
|
11.7% |
|
|
10.8% |
|
|
11.9% |
|
|
|
|
|
|
|
11.2% |
|
|
11.6% |
|
|
|
Engineered Solutions Segment |
$ |
38.4 |
|
$ |
35.3 |
|
$ |
41.7 |
|
|
9 |
% |
|
(8 |
)% |
|
$ |
73.7 |
|
$ |
79.0 |
|
|
(7 |
)% |
% of Sales |
|
14.7% |
|
|
14.2% |
|
|
15.2% |
|
|
|
|
|
|
|
14.5% |
|
|
15.5% |
|
|
|
Unallocated Corporate Expenses |
$ |
(1.7 |
) |
$ |
(4.4 |
) |
$ |
(1.8 |
) |
|
(61 |
)% |
|
6 |
% |
|
$ |
(6.1 |
) |
$ |
(3.6 |
) |
|
(69 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
70.6 |
|
$ |
63.1 |
|
$ |
73.5 |
|
|
12 |
% |
|
(4 |
)% |
|
$ |
133.7 |
|
$ |
141.3 |
|
|
(5 |
)% |
% of Sales |
|
12.8% |
|
|
11.6% |
|
|
13.2% |
|
|
|
|
|
|
|
12.2% |
|
|
13.1% |
|
|
|
* Percentage not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY
COMPANIES |
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions of Dollars) |
|
|
|
|
|
|
|
|
|
|
July 2, |
|
December 31, |
|
|
|
|
|
2023* |
|
2022** |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash & cash equivalents |
$ |
247.1 |
$ |
247.2 |
|
|
|
Short-term investments |
|
8.3 |
|
5.6 |
|
|
|
Accounts receivable, net |
|
419.8 |
|
404.0 |
|
|
|
Inventories |
|
354.7 |
|
348.8 |
|
|
|
Prepaid expenses and other current assets |
|
49.9 |
|
64.9 |
|
|
|
|
Total current assets |
|
1,079.8 |
|
1,070.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
2,293.9 |
|
2,288.6 |
|
|
|
Less accumulated depreciation |
|
1,243.3 |
|
1,238.2 |
|
|
|
|
Net property, plant & equipment |
|
1,050.6 |
|
1,050.4 |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
914.3 |
|
914.8 |
|
|
|
Intangible assets |
|
235.9 |
|
241.9 |
|
|
|
Other assets and deferred charges |
|
127.6 |
|
124.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
3,408.2 |
$ |
3,401.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Short-term debt |
$ |
107.1 |
$ |
119.7 |
|
|
|
Current maturities of long-term debt |
|
14.5 |
|
14.5 |
|
|
|
Accounts payable |
|
204.3 |
|
193.8 |
|
|
|
Other current liabilities |
|
146.3 |
|
174.6 |
|
|
|
|
Total current liabilities |
|
472.2 |
|
502.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
921.2 |
|
928.1 |
|
|
|
Deferred income taxes |
|
177.4 |
|
180.4 |
|
|
|
Other non-current liabilities |
|
175.9 |
|
177.3 |
|
|
|
|
Total liabilities |
|
1,746.7 |
|
1,788.4 |
|
|
|
|
|
|
|
|
|
|
|
|
Total MTI shareholders' equity |
|
1,626.5 |
|
1,579.5 |
|
|
|
Non-controlling Interests |
|
35.0 |
|
33.7 |
|
|
|
|
Total shareholders' equity |
|
1,661.5 |
|
1,613.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
3,408.2 |
$ |
3,401.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Unaudited |
|
|
|
|
|
|
** |
Condensed from audited financial statements. |
|
|
|
|
|
|
Investor Contact:Lydia Kopylova,
(212) 878-1831 |
Media Contact:Jennifer Albert,
(212) 878-1840 |
Minerals Technologies (NYSE:MTX)
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De Mai 2024 até Jun 2024
Minerals Technologies (NYSE:MTX)
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