Minerals Technologies Reports First Quarter 2022 Earnings Per Share of $1.33, or $1.36 Excluding Special Items, a Record Quarter for the Company
Highlights:
- EPS of
$1.36 Excluding Special Items, a Record for the Company and Up 16% YoY - Sales of
$519 Million , a Record First Quarter and Up 15% YoY, Reflecting Double-Digit Gains in All Segments - Operating Income of
$66 Million , or$68 Million Excluding Special Items, a Record First Quarter and Up 15% YoY - Returns to Shareholders Totaled
$18 Million , Comprised of Share Repurchases and Dividends
“MTI’s record performance in the first quarter is the result of successful execution on several fronts. We are realizing the benefits of our strategic growth initiatives – driven by multi-year advancements in new product development, geographic expansion, and acquisitions. In addition, we delivered a solid operating performance and implemented pricing actions that more than offset inflationary costs,” said
First Quarter 2022
Worldwide net sales were
Operating income excluding special items was
Segment Information
Performance Materials segment sales were
Household, Personal Care & Specialty Products sales increased 13 percent sequentially and 30 percent versus the prior year on continued strong demand for consumer-oriented products and the acquisition of
Segment operating income excluding special items was
The Performance Materials segment provides a wide range of bentonite-based and synthetic materials for consumer-oriented and industrial markets and for non-residential construction, environmental remediation, and infrastructure projects worldwide.
Specialty Minerals segment sales, which consist of Precipitated Calcium Carbonate (PCC) Products and Processed Minerals Products, were
PCC sales were 15 percent higher sequentially and 10 percent above the prior year on continued strong demand and higher pricing for paper, packaging, and specialty PCC applications. PCC is used in paper and packaging, automotive and construction sealants, and the food and pharmaceutical industries.
Processed Minerals sales were 15 percent higher sequentially and 11 percent above the prior year on continued strong construction and consumer products demand as well as higher pricing. Processed Minerals products are used in the building materials, polymers, ceramics, consumer products, paints and coatings, glass, and other manufacturing industries.
Segment operating income was
Refractories segment sales were
Segment operating income was
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 the duration and scope of the COVID-19 pandemic, and government and other third-party responses to it; worldwide general economic, business, and industry conditions, including the effects of the COVID-19 pandemic on the global economy; the cyclicality of our customers’ businesses and their changing demands; the dependence of certain of our product lines on the commercial construction and infrastructure markets, the domestic building and construction markets, and the automotive market; our ability to effectively achieve and implement our growth initiatives, including, but not limited to, the integration of the Normerica’s business into our business and the expected benefits, cost savings, accretion, synergies and growth to result therefrom; our ability to service our debt; our ability to comply with the covenants in the agreements governing our debt; our ability to renew or extend long term sales contracts for our PCC satellite operations; consolidation in customer industries, principally paper, foundry and steel; 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; 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; increases in costs of raw materials, energy, or shipping; our ability to compete in very competitive industries; operating risks and capacity limitations affecting our production facilities; seasonality of some of our segments; cybersecurity and other threats relating to our information technology systems; and other risk factors and cautionary statements in our 2021 Annual Report on Form 10‐K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed with the
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
(in millions, except per share data) | ||||||||||||||
(unaudited) | ||||||||||||||
Quarter Ended | % Growth | |||||||||||||
2022 | 2021 | 2021 | Prior Qtr. | Prior Year | ||||||||||
Net sales | $ | 519.1 | $ | 476.9 | $ | 452.6 | 9% | 15% | ||||||
Cost of goods sold | 397.4 | 370.9 | 340.8 | 7% | 17% | |||||||||
Production margin | 121.7 | 106.0 | 111.8 | 15% | 9% | |||||||||
Marketing and administrative expenses | 48.8 | 46.3 | 48.0 | 5% | 2% | |||||||||
Research and development expenses | 5.1 | 5.0 | 5.0 | 2% | 2% | |||||||||
Acquisition related transaction and integration costs | 1.6 | 2.1 | 0.0 | (24)% | * | |||||||||
Income from operations | 66.2 | 52.6 | 58.8 | 26% | 13% | |||||||||
Interest expense, net | (9.8) | (9.0) | (9.9) | 9% | (1)% | |||||||||
Non-cash pension settlement gain | 0.0 | 1.2 | 0.0 | * | * | |||||||||
Other non-operating income (deductions), net | (0.4) | 5.3 | 0.5 | * | * | |||||||||
Total non-operating deductions, net | (10.2) | (2.5) | (9.4) | * | 9% | |||||||||
Income from operations before tax and equity in earnings | 56.0 | 50.1 | 49.4 | 12% | 13% | |||||||||
Provision for taxes on income | 11.2 | 9.0 | 8.9 | 24% | 26% | |||||||||
Equity in earnings of affiliates, net of tax | 0.1 | 0.9 | 0.5 | (89)% | (80)% | |||||||||
Consolidated net income | 44.9 | 42.0 | 41.0 | 7% | 10% | |||||||||
Less: Net income attributable to non-controlling interests | 0.8 | 0.9 | 1.1 | (11)% | (27)% | |||||||||
Net Income attributable to |
$ | 44.1 | $ | 41.1 | $ | 39.9 | 7% | 11% | ||||||
Weighted average number of common shares outstanding: | ||||||||||||||
Basic | 33.1 | 33.3 | 33.8 | |||||||||||
Diluted | 33.2 | 33.5 | 34.0 | |||||||||||
Earnings per share attributable to MTI: | ||||||||||||||
Basic | $ | 1.33 | $ | 1.23 | $ | 1.18 | 8% | 13% | ||||||
Diluted | $ | 1.33 | $ | 1.23 | $ | 1.17 | 8% | 14% | ||||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.05 | $ | 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 |
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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 |
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(millions of dollars) | Quarter Ended | ||||||||||||
2022 | 2021 | 2021 | |||||||||||
Net income attributable to MTI | $ | 44.1 | $ | 41.1 | $ | 39.9 | |||||||
% of sales | 8.5 | % | 8.6 | % | 8.8 | % | |||||||
Special items: | |||||||||||||
Acquisition related transaction and integration costs | 1.6 | 2.1 | 0.0 | ||||||||||
Non-cash pension settlement gain | 0.0 | (1.2 | ) | 0.0 | |||||||||
Related tax effects on special items | (0.4 | ) | (0.2 | ) | 0.0 | ||||||||
Net income attributable to MTI, excluding special items | $ | 45.3 | $ | 41.8 | $ | 39.9 | |||||||
% of sales | 8.7 | % | 8.8 | % | 8.8 | % | |||||||
Diluted earnings per share, excluding special items | $ | 1.36 | $ | 1.25 | $ | 1.17 | |||||||
3 | ) | Free cash flow is defined as cash flow from continuing operations less capital expenditures. The following is a presentation of the Company's non-GAAP free cash flow for the quarterly periods ended |
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Quarter Ended | |||||||||||||
(millions of dollars) | |||||||||||||
2022 | 2021 | 2021 | |||||||||||
Cash flow from operations | $ | 0.3 | $ | 69.3 | $ | 50.9 | |||||||
Capital expenditures | 19.0 | 23.0 | 17.7 | ||||||||||
Free cash flow | $ | (18.7 | ) | $ | 46.3 | $ | 33.2 | ||||||
Depreciation, depletion and amortization expense | $ | 24.2 | $ | 23.6 | $ | 24.1 | |||||||
4 | ) | “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 |
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Quarter Ended | |||||||||||||
(millions of dollars) | |||||||||||||
2022 | 2021 | 2021 | |||||||||||
Net income | $ | 44.1 | $ | 41.1 | $ | 39.9 | |||||||
Add back: | |||||||||||||
Depreciation, depletion and amortization | 24.2 | 23.6 | 24.1 | ||||||||||
Interest expense, net | 9.8 | 9.0 | 9.9 | ||||||||||
Equity in earnings of affiliates, net of tax | (0.1 | ) | (0.9 | ) | (0.5 | ) | |||||||
Net income attributable to non-controlling interests | 0.8 | 0.9 | 1.1 | ||||||||||
Provision for taxes on income | 11.2 | 9.0 | 8.9 | ||||||||||
EBITDA | 90.0 | 82.7 | 83.4 | ||||||||||
Add special items: | |||||||||||||
Acquisition related transaction and integration costs | 1.6 | 2.1 | 0.0 | ||||||||||
Non-cash pension settlement charge | 0.0 | (1.2 | ) | 0.0 | |||||||||
Adjusted EBITDA | $ | 91.6 | $ | 83.6 | $ | 83.4 | |||||||
% of sales | 17.6 | % | 17.5 | % | 18.4 | % | |||||||
5 | ) | The following table reflects the components of non-operating income and deductions: | |||||||||||
(millions of dollars) | Quarter Ended | ||||||||||||
2022 | 2021 | 2021 | |||||||||||
Interest income | $ | 0.8 | $ | 1.1 | $ | 0.6 | |||||||
Interest expense | (10.6 | ) | (10.1 | ) | (10.5 | ) | |||||||
Non-cash pension settlement gain | 0.0 | 1.2 | 0.0 | ||||||||||
Foreign exchange gains (losses) | 0.9 | 7.8 | 1.7 | ||||||||||
Other deductions | (1.3 | ) | (2.5 | ) | (1.2 | ) | |||||||
Non-operating deductions, net | $ | (10.2 | ) | $ | (2.5 | ) | $ | (9.4 | ) | ||||
Included in non-operating deductions for the three-month period ended |
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6 | ) | The analyst conference call to discuss operating results for the first quarter is scheduled for |
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SUPPLEMENTARY DATA | ||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||
Quarter Ended | % Growth | |||||||||||||||||||||
SALES DATA | % of | % of | % of | |||||||||||||||||||
2022 | Total Sales | 2021 | Total Sales | 2021 | Total Sales | Prior Qtr. | Prior Year | |||||||||||||||
$ | 269.7 | 52 | % | $ | 246.7 | 52 | % | $ | 227.5 | 50 | % | 9 | % | 19 | % | |||||||
International | 249.4 | 48 | % | 230.2 | 48 | % | 225.1 | 50 | % | 8 | % | 11 | % | |||||||||
Net Sales | $ | 519.1 | 100 | % | $ | 476.9 | 100 | % | $ | 452.6 | 100 | % | 9 | % | 15 | % | ||||||
Household, Personal Care & Specialty Products | $ | 142.5 | 27 | % | $ | 126.5 | 27 | % | $ | 109.4 | 24 | % | 13 | % | 30 | % | ||||||
Metalcasting | 80.2 | 15 | % | 84.2 | 18 | % | 81.7 | 18 | % | (5 | )% | (2 | )% | |||||||||
Environmental Products | 35.9 | 7 | % | 30.5 | 6 | % | 26.0 | 6 | % | 18 | % | 38 | % | |||||||||
Building Materials | 13.5 | 3 | % | 15.0 | 3 | % | 13.8 | 3 | % | (10 | )% | (2 | )% | |||||||||
Performance Materials Segment | $ | 272.1 | 52 | % | $ | 256.2 | 54 | % | $ | 230.9 | 51 | % | 6 | % | 18 | % | ||||||
Paper PCC | $ | 96.8 | 19 | % | $ | 84.8 | 18 | % | $ | 89.6 | 20 | % | 14 | % | 8 | % | ||||||
Specialty PCC | 24.2 | 5 | % | 20.0 | 4 | % | 20.4 | 5 | % | 21 | % | 19 | % | |||||||||
PCC Products | $ | 121.0 | 23 | % | $ | 104.8 | 22 | % | $ | 110.0 | 24 | % | 15 | % | 10 | % | ||||||
Ground Calcium Carbonate | $ | 26.5 | 5 | % | $ | 23.6 | 5 | % | $ | 24.0 | 5 | % | 12 | % | 10 | % | ||||||
Talc | 15.6 | 3 | % | 13.1 | 3 | % | 13.8 | 3 | % | 19 | % | 13 | % | |||||||||
Processed Minerals Products | $ | 42.1 | 8 | % | $ | 36.7 | 8 | % | $ | 37.8 | 8 | % | 15 | % | 11 | % | ||||||
Specialty Minerals Segment | $ | 163.1 | 31 | % | $ | 141.5 | 30 | % | $ | 147.8 | 33 | % | 15 | % | 10 | % | ||||||
Refractory Products | $ | 64.8 | 12 | % | $ | 62.1 | 13 | % | $ | 58.8 | 13 | % | 4 | % | 10 | % | ||||||
Metallurgical Products | 19.1 | 4 | % | 17.1 | 4 | % | 15.1 | 3 | % | 12 | % | 26 | % | |||||||||
Refractories Segment | $ | 83.9 | 16 | % | $ | 79.2 | 17 | % | $ | 73.9 | 16 | % | 6 | % | 14 | % | ||||||
Net Sales | $ | 519.1 | 100 | % | $ | 476.9 | 100 | % | $ | 452.6 | 100 | % | 9 | % | 15 | % | ||||||
SUPPLEMENTARY DATA | ||||||||||||||
(millions of dollars) | ||||||||||||||
(unaudited) | ||||||||||||||
Quarter Ended | % Growth | |||||||||||||
Prior | Prior | |||||||||||||
SEGMENT OPERATING INCOME DATA | 2022 | 2021 | 2021 | Qtr. | Year | |||||||||
Performance Materials Segment | $ | 33.7 | $ | 28.5 | $ | 29.8 | 18% | 13% | ||||||
% of Sales | 12.4% | 11.1% | 12.9% | |||||||||||
Specialty Minerals Segment | $ | 18.4 | $ | 14.5 | $ | 21.1 | 27% | (13)% | ||||||
% of Sales | 11.3% | 10.2% | 14.3% | |||||||||||
Refractories Segment | $ | 16.5 | $ | 12.4 | $ | 12.0 | 33% | 38% | ||||||
% of Sales | 19.7% | 15.7% | 16.2% | |||||||||||
Unallocated and Other Corporate Expenses | $ | (2.4) | $ | (2.8) | $ | (4.1) | * | * | ||||||
Consolidated | $ | 66.2 | $ | 52.6 | $ | 58.8 | 26% | 13% | ||||||
% of Sales | 12.8% | 11.0% | 13.0% | |||||||||||
SPECIAL ITEMS | ||||||||||||||
Performance Materials Segment | $ | 1.0 | $ | 0.6 | $ | 0.0 | * | * | ||||||
Specialty Minerals Segment | $ | 0.0 | $ | 0.0 | $ | 0.0 | * | * | ||||||
Refractories Segment | $ | 0.0 | $ | 0.0 | $ | 0.0 | * | * | ||||||
Unallocated and Other Corporate Expenses | $ | 0.6 | $ | 1.5 | $ | 0.0 | * | * | ||||||
Consolidated | $ | 1.6 | $ | 2.1 | $ | 0.0 | * | * | ||||||
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 |
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Quarter Ended | % Growth | |||||||||||||
SEGMENT OPERATING INCOME, | ||||||||||||||
EXCLUDING SPECIAL ITEMS | 2022 | 2021 | 2021 | Prior Qtr. | Prior Year | |||||||||
Performance Materials Segment | $ | 34.7 | $ | 29.1 | $ | 29.8 | 19% | 16% | ||||||
% of Sales | 12.8% | 11.4% | 12.9% | |||||||||||
Specialty Minerals Segment | $ | 18.4 | $ | 14.5 | $ | 21.1 | 27% | (13)% | ||||||
% of Sales | 11.3% | 10.2% | 14.3% | |||||||||||
Refractories Segment | $ | 16.5 | $ | 12.4 | $ | 12.0 | 33% | 38% | ||||||
% of Sales | 19.7% | 15.7% | 16.2% | |||||||||||
Unallocated Corporate Expenses | $ | (1.8) | $ | (1.3) | $ | (4.1) | * | * | ||||||
Consolidated | $ | 67.8 | $ | 54.7 | $ | 58.8 | 24% | 15% | ||||||
% of Sales | 13.1% | 11.5% | 13.0% | |||||||||||
* Percentage not meaningful | ||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
ASSETS | |||||
(In Millions of Dollars) | |||||
2022* | 2021** | ||||
Current assets: | |||||
Cash & cash equivalents | $ | 288.0 | $ | 299.5 | |
Short-term investments | 5.1 | 4.9 | |||
Accounts receivable, net | 397.1 | 367.8 | |||
Inventories | 333.8 | 297.7 | |||
Prepaid expenses and other current assets | 66.3 | 58.6 | |||
Total current assets | 1,090.3 | 1,028.5 | |||
Property, plant and equipment | 2,309.0 | 2,296.4 | |||
Less accumulated depreciation | 1,262.8 | 1,247.3 | |||
Net property, plant & equipment | 1,046.2 | 1,049.1 | |||
905.7 | 907.5 | ||||
Intangible assets | 247.9 | 251.6 | |||
Other assets and deferred charges | 135.7 | 137.5 | |||
Total assets | $ | 3,425.8 | $ | 3,374.2 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Short-term debt | $ | 110.0 | $ | 80.0 | |
Current maturities of long-term debt | 0.6 | 0.8 | |||
Accounts payable | 218.6 | 196.1 | |||
Other current liabilities | 125.9 | 142.9 | |||
Total current liabilities | 455.1 | 419.8 | |||
Long-term debt | 937.0 | 936.2 | |||
Deferred income taxes | 189.0 | 188.1 | |||
Other non-current liabilities | 241.7 | 250.6 | |||
Total liabilities | 1,822.8 | 1,794.7 | |||
Total MTI shareholders' equity | 1,562.0 | 1,539.3 | |||
Non-controlling Interests | 41.0 | 40.2 | |||
Total shareholders' equity | 1,603.0 | 1,579.5 | |||
Total liabilities and shareholders' equity | $ | 3,425.8 | $ | 3,374.2 | |
*Unaudited | |||||
**Condensed from audited financial statements. |
Source: Minerals Technologies Inc.