04/25/2024 | Press release | Distributed by Public on 04/25/2024 15:08
•
|
Record Operating Income of $75 Million, or $77 Million Excluding Special Items, a 23% Increase over Prior Year
|
•
|
Strong Operating Margin of 14.1%, or 14.5% Excluding Special Items, a 290 bps Increase over Prior Year
|
•
|
Record First Quarter Cash Flow from Operations of $56 Million
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
||||||||||||||||||||
(in millions, except per share data)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Quarter Ended
|
% Growth
|
|||||||||||||||||||
Mar. 31,
2024
|
Dec. 31,
2023
|
Apr. 2,
|
Prior Qtr.
|
Prior Year
|
||||||||||||||||
2023
|
||||||||||||||||||||
Net sales
|
$
|
534.5
|
$
|
524.5
|
$
|
546.1
|
2
|
%
|
(2
|
)%
|
||||||||||
Cost of goods sold
|
398.6
|
399.2
|
425.4
|
(0
|
)%
|
(6
|
)%
|
|||||||||||||
Production margin
|
135.9
|
125.3
|
120.7
|
8
|
%
|
13
|
%
|
|||||||||||||
Marketing and administrative expenses
|
53.0
|
51.0
|
52.3
|
4
|
%
|
1
|
%
|
|||||||||||||
Research and development expenses
|
5.6
|
5.1
|
5.3
|
10
|
%
|
6
|
%
|
|||||||||||||
Acquisition-related expenses
|
0.0
|
0.0
|
0.1
|
*
|
*
|
|||||||||||||||
Litigation expenses
|
2.1
|
2.4
|
0.0
|
(13
|
)%
|
*
|
||||||||||||||
Income from operations
|
75.2
|
66.8
|
63.0
|
13
|
%
|
19
|
%
|
|||||||||||||
Interest expense, net
|
(14.9
|
)
|
(15.2
|
)
|
(14.2
|
)
|
(2
|
)%
|
5
|
%
|
||||||||||
Other non-operating income (deductions), net
|
(0.2
|
)
|
(3.0
|
)
|
(1.1
|
)
|
(93
|
)%
|
(82
|
)%
|
||||||||||
Total non-operating deductions, net
|
(15.1
|
)
|
(18.2
|
)
|
(15.3
|
)
|
(17
|
)%
|
(1
|
)%
|
||||||||||
Income before tax and equity in earnings
|
60.1
|
48.6
|
47.7
|
24
|
%
|
26
|
%
|
|||||||||||||
Provision for taxes on income
|
13.9
|
9.2
|
10.5
|
51
|
%
|
32
|
%
|
|||||||||||||
Equity in earnings of affiliates, net of tax
|
1.4
|
1.4
|
0.9
|
0
|
%
|
56
|
%
|
|||||||||||||
Net income
|
47.6
|
40.8
|
38.1
|
17
|
%
|
25
|
%
|
|||||||||||||
Less: Net income attributable to non-controlling interests
|
0.9
|
1.0
|
1.1
|
(10
|
)%
|
(18
|
)%
|
|||||||||||||
Net Income attributable to Minerals Technologies Inc. (MTI)
|
$
|
46.7
|
$
|
39.8
|
$
|
37.0
|
17
|
%
|
26
|
%
|
||||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||||||
Basic
|
32.3
|
32.5
|
32.5
|
|||||||||||||||||
Diluted
|
32.4
|
32.5
|
32.5
|
|||||||||||||||||
Earnings per share attributable to MTI:
|
||||||||||||||||||||
Basic
|
$
|
1.45
|
$
|
1.22
|
$
|
1.14
|
19
|
%
|
27
|
%
|
||||||||||
Diluted
|
$
|
1.44
|
$
|
1.22
|
$
|
1.14
|
18
|
%
|
26
|
%
|
||||||||||
Cash dividends declared per common share
|
$
|
0.10
|
$
|
0.10
|
$
|
0.05
|
||||||||||||||
* Percentage not meaningful
|
||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||||
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||||||
1
|
)
|
For comparative purposes, the quarterly periods ended March 31, 2024, December 31, 2023, and April 2, 2023 consisted of 91 days, 91 days, and 92 days, respectively.
|
|||||||||||||
2
|
)
|
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 March 31, 2024, December 31, 2023, and April 2, 2023, 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.
|
|||||||||||||
(millions of dollars)
|
Quarter Ended
|
||||||||||||||
Mar. 31,
2024
|
Dec. 31,
2023
|
Apr. 2,
2023
|
|||||||||||||
Net income attributable to MTI
|
$
|
46.7
|
$
|
39.8
|
$
|
37.0
|
|||||||||
% of sales
|
8.7
|
%
|
7.6
|
%
|
6.8
|
%
|
|||||||||
Special items:
|
|||||||||||||||
Acquisition-related expenses
|
0.0
|
0.0
|
0.1
|
||||||||||||
Litigation expenses
|
2.1
|
2.4
|
0.0
|
||||||||||||
Related tax effects on special items
|
(0.5
|
)
|
(0.5
|
)
|
0.0
|
||||||||||
Net income attributable to MTI, excluding special items
|
$
|
48.3
|
$
|
41.7
|
$
|
37.1
|
|||||||||
% of sales
|
9.0
|
%
|
8.0
|
%
|
6.8
|
%
|
|||||||||
Diluted earnings per share, excluding special items
|
$
|
1.49
|
$
|
1.28
|
$
|
1.14
|
|||||||||
3
|
)
|
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 March 31, 2024, December 31, 2023, and April 2, 2023 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
|
|||||||||||||||
(millions of dollars)
|
Mar. 31,
2024
|
Dec. 31,
2023
|
Apr. 2,
2023
|
||||||||||||
Cash flow from operations
|
$
|
55.9
|
$
|
95.3
|
$
|
33.7
|
|||||||||
Capital expenditures
|
16.5
|
22.5
|
24.5
|
||||||||||||
Free cash flow
|
$
|
39.4
|
$
|
72.8
|
$
|
9.2
|
|||||||||
Depreciation, depletion and amortization expense
|
$
|
23.5
|
$
|
23.5
|
$
|
23.7
|
|||||||||
4
|
)
|
To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of the Company's year over year sales growth, excluding the sales of Barretts Minerals Inc. for the three months ended April 2, 2023, constituting a reconciliation to GAAP sales growth set forth below. On October 2, 2023, Barretts Minerals Inc. filed for relief under Chapter 11 of the U.S. Bankruptcy Code and as such the results of Barretts Minerals are not included the Company's consolidated results for the first quarter of 2024. Barretts Minerals sales for the first quarter of 2023 were $13.1 million. The Company's management feels this non-GAAP measure provides meaningful supplemental information regarding its performance and facilitates investors' understanding of sales trends for the first quarter of 2024.
|
|||||||||||||
Quarter Ended March 31, 2024
|
|||||||||||||||
Year over Year Sales Growth
|
Sales
Growth As
Reported
|
Impact of BMI Deconsolidation
|
Underlying
Sales Growth
|
||||||||||||
Specialty Additives
|
(6
|
)%
|
(8
|
)%
|
2
|
%
|
|||||||||
Consumer & Specialties
|
0
|
%
|
(4
|
)%
|
4
|
%
|
|||||||||
MTI Consolidated
|
(2
|
)%
|
(2
|
)%
|
0
|
%
|
|||||||||
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 March 31, 2024, December 31, 2023, and April 2, 2023 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
|
|||||||||||||||
(millions of dollars)
|
Mar. 31,
2024
|
Dec. 31,
2023
|
Apr. 2,
2023
|
||||||||||||
Net income
|
$
|
46.7
|
$
|
39.8
|
$
|
37.0
|
|||||||||
Add back:
|
|||||||||||||||
Depreciation, depletion and amortization expense
|
23.5
|
23.5
|
23.7
|
||||||||||||
Interest expense, net
|
14.9
|
15.2
|
14.2
|
||||||||||||
Equity in earnings of affiliates, net of tax
|
(1.4
|
)
|
(1.4
|
)
|
(0.9
|
)
|
|||||||||
Net income attributable to non-controlling interests
|
0.9
|
1.0
|
1.1
|
||||||||||||
Provision for taxes on income
|
13.9
|
9.2
|
10.5
|
||||||||||||
EBITDA
|
98.5
|
87.3
|
85.6
|
||||||||||||
Add special items:
|
|||||||||||||||
Acquisition-related expenses
|
0.0
|
0.0
|
0.1
|
||||||||||||
Litigation expenses
|
2.1
|
2.4
|
0.0
|
||||||||||||
Adjusted EBITDA
|
$
|
100.6
|
$
|
89.7
|
$
|
85.7
|
|||||||||
% of sales
|
18.8
|
%
|
17.1
|
%
|
15.7
|
%
|
|||||||||
6
|
)
|
The following table reflects the components of non-operating income and deductions:
|
|||||||||||||
(millions of dollars)
|
Quarter Ended
|
||||||||||||||
Mar. 31,
2024
|
Dec. 31,
2023
|
Apr. 2,
2023
|
|||||||||||||
Interest income
|
$
|
1.1
|
$
|
1.2
|
$
|
0.7
|
|||||||||
Interest expense
|
(16.0
|
)
|
(16.4
|
)
|
(14.9
|
)
|
|||||||||
Foreign exchange gains (losses)
|
0.9
|
(0.6
|
)
|
0.2
|
|||||||||||
Other deductions
|
(1.1
|
)
|
(2.4
|
)
|
(1.3
|
)
|
|||||||||
Non-operating deductions, net
|
$
|
(15.1
|
)
|
$
|
(18.2
|
)
|
$
|
(15.3
|
)
|
||||||
7
|
)
|
The analyst conference call to discuss operating results for the first quarter is scheduled for Friday, April 26, 2024 at 11:00 am 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
|
|||||||||||||||||||||||||||||||
SALES DATA
|
Mar. 31,
2024
|
% of
Total Sales
|
Dec. 31,
2023
|
% of
Total Sales
|
Apr. 2,
2023
|
% of
Total Sales
|
Prior Qtr.
|
Prior Year
|
||||||||||||||||||||||||
United States
|
$
|
275.1
|
51
|
%
|
$
|
269.7
|
51
|
%
|
$
|
288.0
|
53
|
%
|
2
|
%
|
(4
|
)%
|
||||||||||||||||
International
|
259.4
|
49
|
%
|
254.8
|
49
|
%
|
258.1
|
47
|
%
|
2
|
%
|
1
|
%
|
|||||||||||||||||||
Net Sales
|
$
|
534.5
|
100
|
%
|
$
|
524.5
|
100
|
%
|
$
|
546.1
|
100
|
%
|
2
|
%
|
(2
|
)%
|
||||||||||||||||
Household & Personal Care
|
$
|
138.4
|
26
|
%
|
$
|
134.0
|
26
|
%
|
$
|
129.2
|
23
|
%
|
3
|
%
|
7
|
%
|
||||||||||||||||
Specialty Additives
|
158.5
|
30
|
%
|
147.4
|
28
|
%
|
168.1
|
31
|
%
|
8
|
%
|
(6
|
)%
|
|||||||||||||||||||
Consumer & Specialties Segment
|
$
|
296.9
|
56
|
%
|
$
|
281.4
|
54
|
%
|
$
|
297.3
|
54
|
%
|
6
|
%
|
(0
|
)%
|
||||||||||||||||
High-Temperature Technologies
|
$
|
177.3
|
33
|
%
|
$
|
182.3
|
35
|
%
|
$
|
178.6
|
33
|
%
|
(3
|
)%
|
(1
|
)%
|
||||||||||||||||
Environmental & Infrastructure
|
60.3
|
11
|
%
|
60.8
|
11
|
%
|
70.2
|
13
|
%
|
(1
|
)%
|
(14
|
)%
|
|||||||||||||||||||
Engineered Solutions Segment
|
$
|
237.6
|
44
|
%
|
$
|
243.1
|
46
|
%
|
$
|
248.8
|
46
|
%
|
(2
|
)%
|
(5
|
)%
|
||||||||||||||||
MTI Consolidated Net Sales
|
$
|
534.5
|
100
|
%
|
$
|
524.5
|
100
|
%
|
$
|
546.1
|
100
|
%
|
2
|
%
|
(2
|
)%
|
||||||||||||||||
SUPPLEMENTARY DATA
|
||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
||||||||||||||||||||
(millions of dollars)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Quarter Ended
|
% Growth
|
|||||||||||||||||||
Mar. 31,
2024
|
Dec. 31,
2023
|
Apr. 2,
2023
|
Prior
Qtr.
|
Prior
Year
|
||||||||||||||||
SEGMENT OPERATING INCOME DATA
|
||||||||||||||||||||
Consumer & Specialties Segment
|
$
|
42.0
|
$
|
36.6
|
$
|
32.2
|
15
|
%
|
30
|
%
|
||||||||||
% of Sales
|
14.1
|
%
|
13.0
|
%
|
10.8
|
%
|
||||||||||||||
Engineered Solutions Segment
|
$
|
38.5
|
$
|
36.7
|
$
|
35.3
|
5
|
%
|
9
|
%
|
||||||||||
% of Sales
|
16.2
|
%
|
15.1
|
%
|
14.2
|
%
|
||||||||||||||
Unallocated and Other Corporate Expenses
|
$
|
(5.3
|
)
|
$
|
(6.5
|
)
|
$
|
(4.5
|
)
|
(18
|
)% |
18
|
% | |||||||
MTI Consolidated
|
$
|
75.2
|
$
|
66.8
|
$
|
63.0
|
13
|
%
|
19
|
%
|
||||||||||
% of Sales
|
14.1
|
%
|
12.7
|
%
|
11.5
|
%
|
||||||||||||||
SPECIAL ITEMS
|
||||||||||||||||||||
Consumer & Specialties Segment
|
$
|
0.0
|
$
|
0.0
|
$
|
0.0
|
*
|
*
|
||||||||||||
Engineered Solutions Segment
|
$
|
0.0
|
$
|
0.0
|
$
|
0.0
|
*
|
*
|
||||||||||||
Unallocated and Other Corporate Expenses
|
$
|
2.1
|
$
|
2.4
|
$
|
0.1
|
(13
|
)% |
*
|
|||||||||||
MTI Consolidated
|
$
|
2.1
|
$
|
2.4
|
$
|
0.1
|
(13
|
)% |
*
|
|||||||||||
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, excluding special items (set forth in the above table), for the quarterly periods ended March 31, 2024, December 31, 2023 and April 2, 2023, 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
|
|||||||||||||||||||
SEGMENT OPERATING INCOME,
|
Mar. 31,
2024
|
Dec. 31,
2023
|
Apr. 2,
2023
|
Prior Qtr.
|
Prior Year
|
|||||||||||||||
EXCLUDING SPECIAL ITEMS
|
||||||||||||||||||||
Consumer & Specialties Segment
|
$
|
42.0
|
$
|
36.6
|
$
|
32.2
|
15
|
%
|
30
|
%
|
||||||||||
% of Sales
|
14.1
|
%
|
13.0
|
%
|
10.8
|
%
|
||||||||||||||
Engineered Solutions Segment
|
$
|
38.5
|
$
|
36.7
|
$
|
35.3
|
5
|
%
|
9
|
%
|
||||||||||
% of Sales
|
16.2
|
%
|
15.1
|
%
|
14.2
|
%
|
||||||||||||||
Unallocated and Other Corporate Expenses
|
$
|
(3.2
|
)
|
$
|
(4.1
|
)
|
$
|
(4.4
|
)
|
(22
|
)% |
(27
|
)% |
|||||||
MTI Consolidated
|
$
|
77.3
|
$
|
69.2
|
$
|
63.1
|
12
|
%
|
23
|
%
|
||||||||||
% of Sales
|
14.5
|
%
|
13.2
|
%
|
11.6
|
%
|
||||||||||||||
* Percentage not meaningful
|
||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||||
ASSETS
|
|||||||||
(In Millions of Dollars)
|
|||||||||
March 31,
2024
|
December 31,
2023
|
||||||||
*
|
**
|
||||||||
Current assets:
|
|||||||||
Cash & cash equivalents
|
$
|
315.7
|
$
|
317.2
|
|||||
Short-term investments
|
4.4
|
4.3
|
|||||||
Accounts receivable, net
|
396.3
|
399.1
|
|||||||
Inventories
|
326.0
|
325.4
|
|||||||
Prepaid expenses and other current assets
|
58.9
|
53.0
|
|||||||
Total current assets
|
1,101.3
|
1,099.0
|
|||||||
Property, plant and equipment
|
2,185.3
|
2,190.1
|
|||||||
Less accumulated depreciation
|
1,208.3
|
1,203.3
|
|||||||
Net property, plant & equipment
|
977.0
|
986.8
|
|||||||
Goodwill |
913.1 |
913.6 |
|||||||
Intangible assets
|
227.6
|
231.0
|
|||||||
Other assets and deferred charges
|
120.1
|
116.2
|
|||||||
Total assets
|
$
|
3,339.1
|
$
|
3,346.6
|
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|||||||||
Current liabilities:
|
|||||||||
Short-term debt
|
$
|
75.7
|
$
|
85.4
|
|||||
Current maturities of long-term debt
|
21.4
|
18.0
|
|||||||
Accounts payable
|
194.7
|
188.7
|
|||||||
Other current liabilities
|
150.0
|
165.2
|
|||||||
Total current liabilities
|
441.8
|
457.3
|
|||||||
Long-term debt
|
904.4
|
911.1
|
|||||||
Deferred income taxes
|
142.7
|
139.3
|
|||||||
Other non-current liabilities
|
154.3
|
152.2
|
|||||||
Total liabilities
|
1,643.2
|
1,659.9
|
|||||||
Total MTI shareholders' equity
|
1,661.1
|
1,652.0
|
|||||||
Non-controlling Interests
|
34.8
|
34.7
|
|||||||
Total shareholders' equity
|
1,695.9
|
1,686.7
|
|||||||
Total liabilities and shareholders' equity
|
$
|
3,339.1
|
$
|
3,346.6
|
|||||
*
|
Unaudited
|
||||||||
**
|
Condensed from audited financial statements.
|
||||||||