Release Details

Minerals Technologies Reports First Quarter Earnings of $0.53 per Share, a 4-Percent Increase over 2012

April 25, 2013
Record First Quarter Earnings for the Company
----------
Highlights:
 
·
Operating Income of $27.1 million, 10.8% of Sales
·
Record First Quarter Profit in Specialty Minerals Segment
·
Growth in Asia PCC Volume & Profitability
·
Company Signs Three New Agreements for FulFill® E-325 Technology
·
Repurchased $9.5 million in Treasury Stock in Quarter
 
NEW YORK, April 25-Minerals Technologies Inc. (NYSE: MTX) today reported net income of $18.8 million, or $0.53 per share for the first quarter 2013, compared with $18.0 million, or $0.51 per share in the first quarter of 2012, a 4-percent increase.
 
"We began 2013 with solid operating performance, which generated a record in profit for both Minerals Technologies and our Specialty Minerals segment," said Joseph C. Muscari, executive chairman. "During the quarter we saw organic growth from new satellites ramping up in Asia, and we also announced three new commercial agreements for our FulFill® technology--two in North America and one in South America." 
 
The company's worldwide sales declined 2 percent to $251.3 million from $257.1 million in the first quarter of 2012. Foreign exchange had an unfavorable impact of 1 percentage point of this decline, and two fewer days in the quarter affected sales by an additional 2 percentage points. Operating income was $27.1 million, a 1-percent increase over the $27.0 million recorded in the prior year's first quarter.
 
First quarter worldwide sales for the Specialty Minerals segment, which consists of the precipitated calcium carbonate (PCC) and Processed Minerals product lines, were flat at $167.7 million. Underlying sales, excluding foreign exchange and two fewer days in the quarter, increased 3 percent.
 
The Specialty Minerals segment's income from operations of $22.2 million--13.2 percent of sales--increased 12 percent over the $19.9 million in the same period in 2012, and was a record first quarter performance. The increase was due primarily to contributions from the ramp-up of new satellite facilities in Asia, productivity improvements, higher pricing and good expense control.
 
Worldwide sales of PCC, which is used mainly in the manufacturing processes of the paper industry, at $138.1 million, were flat with the previous year's first quarter. Paper PCC sales were $121.3 million compared with $121.7 million in the same period last year. Sales growth in Asia, as a result of three new PCC satellites, was offset by lower volumes in North America. Sales of Specialty PCC increased 2 percent to $16.8 million from $16.4 million in the prior year.  This increase was primarily due to slightly higher volumes and increased pricing.
 
"During the quarter, we continued to see additional acceptance of our FulFill® E-325 technology by the worldwide paper industry as we signed three new commercial agreements--two in North America that wished to be unnamed for competitive reasons, and one with CMPC Celulose Riograndense at a paper mill in Guaiba, Brazil," said Mr. Muscari. "This technology allows papermakers to increase loading levels of PCC by three to five points, replacing higher cost pulp, and increasing PCC usage between 20 to 30 percent. To date we have 13 paper mills around the world under contract to use this cost-saving technology."
 
Processed Minerals products first quarter sales were $29.6 million--even with the first quarter of 2012.  This product line, which includes ground calcium carbonate and talc, are used in the building materials, polymers, ceramics, paints and coatings, glass and other manufacturing industries.
 
First quarter sales in the Refractories segment, which provides products and services primarily to the worldwide steel industry, were down 6 percent from $89.4 million in the first quarter of 2012 to $83.6 million. The Refractories segment recorded an operating income decrease of 24 percent to $6.9 million from $9.1 million in the first quarter of 2012. The decline was primarily attributable to two steel mill closures in North America last June, lower equipment sales and lower profits in our Japanese business. These declines were partially offset by contributions from new accounts in Europe, and from the company's refractory maintenance contract at a new steel mill in Bahrain.
 
"Despite a challenging quarter for our Refractories business, as well as weak markets in both steel and paper in North America and Europe, we had a strong start to the year," said Mr. Muscari. "We believe we will continue on a high-performance growth track for the rest of 2013 by deployment of our key strategies of geographic expansion, new product innovation, and operational excellence."
 
Contact:
Rick B. Honey
(212) 878-1831
-----------------
Minerals Technologies will sponsor a conference call tomorrow, April 26, 2013 at 11 a.m. The conference call will be broadcast live on the company web site: www.mineralstech.com.
-----------------
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which describe or are based on current expectations. Actual results may differ materially from these expectations. In addition, any statements that are not historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this document should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned in the risk factors and other cautionary statements in our 2012 Annual Report on Form 10-K and in our other reports filed with the Securities and Exchange Commission.
----------------
For further information about Minerals Technologies Inc. look on the internet at http://www.mineralstech.com.
 
####
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
(in thousands, except per share data)
 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
% Growth
 
 
 
 
 
Mar. 31,
 
Dec. 31,
 
Apr. 1,
 
Prior
 
Prior
 
 
 
 
 
2013
 
2012
 
2012
 
Qtr.
 
 Year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
251,289
$
244,165
$
257,138
 
3%
 
(2)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
 
196,401
 
191,069
 
202,201
 
3%
 
(3)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Production margin
 
54,888
 
53,096
 
54,937
 
3%
 
(0)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing  and administrative expenses
 
22,934
 
22,377
 
22,898
 
2%
 
0%
 
Research and development expenses
 
4,818
 
4,995
 
5,047
 
(4)%
 
(5)%
 
 
Income from operations
 
27,136
 
25,724
 
26,992
 
5%
 
1%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-operating income (deductions) - net
 
168
 
(979)
 
(598)
 
*
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, before tax
 
27,304
 
24,745
 
26,394
 
10%
 
3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for taxes on income
 
7,700
 
6,506
 
7,786
 
18%
 
(1)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated net income
 
19,604
 
18,239
 
18,608
 
7%
 
5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: Net income attributable to non-controlling interests
 
848
 
469
 
576
 
81%
 
47%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income attributable to  Minerals Technologies Inc. (MTI)
$
18,756
$
17,770
$
18,032
 
6%
 
4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
34,996
 
35,196
 
35,436
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
 
35,253
 
35,467
 
35,600
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share attributable to MTI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic:
 
$
0.54
$
0.50
$
0.51
 
8%
 
6%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted:
 
$
0.53
$
0.50
$
0.51
 
6%
 
4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends declared per common share
$
0.050
$
0.050
$
0.025
 
 
 
 
 
* 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, 2013, December 31, 2012 and April 1, 2012 consisted of 90 days, 92 days, and 92 days, respectively.
 
 
 
 
 
 
 
 
 
 
 
2)
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 three month periods ended March 31, 2013, December 31, 2012  and April 1, 2012 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,
 
Dec. 31,
 
Apr. 1,
 
 
 
 
 
 
2013
 
2012
 
2012
 
 
 
 
Cash flow from operations
$
24.7
$
35.1
$
24.7
 
 
 
 
Capital expenditures
 
8.7
 
14.3
 
9.4
 
 
 
 
Free cash flow
$
16.0
$
20.8
$
15.3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3)
The following table reflects the components of non-operating income and deductions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(millions of dollars)
 
Quarter Ended
 
 
 
 
 
Mar. 31,
 
Dec. 31,
 
Apr. 1,
 
 
 
 
 
 
2013
 
2012
 
2012
 
 
 
 
          Interest income
$
0.7
$
0.7
$
1.0
 
 
 
 
          Interest expense
 
(0.8)
 
(0.8)
 
(0.8)
 
 
 
 
          Foreign exchange gains (losses)
 
0.6
 
(0.6)
 
(0.4)
 
 
 
 
          Other income (deductions)
 
(0.3)
 
(0.3)
 
(0.4)
 
 
 
 
             Non-operating income (deductions), net
$
0.2
$
(1.0)
$
(0.6)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4)
The analyst conference call to discuss operating results for the fourth quarter is scheduled for Friday, April 26, 2013 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,
 
Dec. 31,
 
Apr. 1,
 
Prior
 
Prior
 
 
 
2013
 
2012
 
2012
 
Qtr
 
Year
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
139.8
$
135.0
$
145.8
 
4%
 
(4)%
 
International
 
111.5
 
109.2
 
111.3
 
2%
 
0%
 
      Net Sales
$
251.3
$
244.2
$
257.1
 
3%
 
(2)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Paper PCC
$
121.3
$
118.8
$
121.7
 
2%
 
(0)%
 
Specialty PCC
 
16.8
 
16.1
 
16.4
 
4%
 
2%
 
PCC Products
$
138.1
$
134.9
$
138.1
 
2%
 
0%
 
 
 
 
 
 
 
 
 
 
 
 
 
Talc
$
12.4
$
11.0
$
12.1
 
13%
 
2%
 
Ground Calcium Carbonate
 
17.2
 
14.9
 
17.5
 
15%
 
(2)%
 
Processed Minerals Products
$
29.6
$
25.9
$
29.6
 
14%
 
0%
 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Minerals Segment
$
167.7
$
160.8
$
167.7
 
4%
 
0%
 
 
 
 
 
 
 
 
 
 
 
 
 
Refractory products
$
62.4
$
63.5
$
69.1
 
(2)%
 
(10)%
 
Metallurgical Products
 
21.2
 
19.9
 
20.3
 
7%
 
4%
 
Refractories Segment
$
83.6
$
83.4
$
89.4
 
0%
 
(6)%
 
 
 
 
 
 
 
 
 
 
 
 
 
       Net Sales
$
251.3
$
244.2
$
257.1
 
3%
 
(2)%
 
 
 
 
 
 
 
 
 
 
 
 
 
SEGMENT OPERATING INCOME (LOSS) DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Minerals Segment
$
22.2
$
19.6
$
19.9
 
13%
 
12%
 
 
 
 
 
 
 
 
 
 
 
 
 
Refractories Segment
$
6.9
$
7.5
$
9.1
 
(8)%
 
(24)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Unallocated Corporate Expenses
$
(2.0)
$
(1.4)
$
(2.0)
 
43%
 
0%
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
27.1
$
25.7
$
27.0
 
5%
 
0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands of Dollars)
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
 
 
 
2013*
 
2012**
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash & cash equivalents
$
454,331
$
454,092
 
Short-term investments
 
15,586
 
14,178
 
Accounts receivable, net
 
197,834
 
193,328
 
Inventories
 
 
88,755
 
84,569
 
Prepaid expenses and other current assets
 
18,364
 
18,318
 
 
Total current assets
 
774,870
 
764,485
 
 
 
 
 
 
 
 
Property, plant and equipment
 
1,256,112
 
1,261,952
 
Less accumulated depreciation
 
943,676
 
944,283
 
 
Net property, plant & equipment
 
312,436
 
317,669
 
 
 
 
 
 
 
 
Goodwill
 
 
65,081
 
65,829
 
Other assets and deferred charges
 
58,732
 
63,206
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
1,211,119
$
1,211,189
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Short-term debt
$
7,226
$
7,111
 
Current maturities of long-term debt
 
77,260
 
76,977
 
Accounts payable
 
109,857
 
98,371
 
Other current liabilities
 
55,785
 
67,639
 
 
Total current liabilities
 
250,128
 
250,098
 
 
 
 
 
 
 
 
Long-term debt
 
8,200
 
8,478
 
Other non-current liabilities
 
140,032
 
138,894
 
 
Total liabilities
 
398,360
 
397,470
 
 
 
 
 
 
 
 
Total MTI shareholders' equity
 
789,558
 
790,411
 
Non-controlling Interest
 
23,201
 
23,308
 
 
Total shareholders' equity
 
812,759
 
813,719
 
 
 
 
 
 
 
 
 
Total liabilities and shareholders' equity
$
1,211,119
$
1,211,189
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Unaudited
 
 
 
 
 
**
Condensed from audited financial statements.
 
 
 
 

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