Highlights:
- Record First Quarter Sales of
$546 Million , 5 Percent Above Prior Year - Operating Income of
$63 Million , Increased 43 Percent Sequentially - Cash Flow from Operations Improved by
$33 Million from Prior Year - Reorganization and New Segmentation Implemented
- Announced Three Long-term PCC Supply Agreements in
Asia
“Our performance in the first quarter is a result of the diligent and focused execution on margin recovery, improved cash flows and growth,” said
First Quarter 2023
Worldwide net sales were
Operating income was
Segment Information
Effective
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.
Prior-year reconciliations for these new segments are available in a Current Report on Form 8-K filed by the Company on
Consumer & Specialties segment sales were
Household & Personal Care sales were
Segment operating income was
Engineered Solutions segment sales were
High-Temperature Technologies sales were
Segment operating income was
Company to Host 2023 Investor Day
The Company will host an Investor Day on
“Minerals Technologies has transformed over the past 5 years into a more balanced portfolio of businesses poised for long-term sustainable growth. Our 2023 Investor Day will provide details on each of our businesses, their market positions, and growth and profit drivers enabled by the company’s innovative technologies and high-performance culture. We will outline how this new operating structure positions us to create long-term value for our stakeholders,” said
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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; 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
About
Investor Contact: |
Media Contact: |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Quarter Ended | % Growth | |||||||||||||||||
2023 | 2022 | 2022 | Prior Qtr. | Prior Year | ||||||||||||||
Net sales | $ | 546.1 | $ | 507.6 | $ | 519.1 | 8 | % | 5 | % | ||||||||
Cost of goods sold | 425.4 | 409.9 | 397.4 | 4 | % | 7 | % | |||||||||||
Production margin | 120.7 | 97.7 | 121.7 | 24 | % | (1 | )% | |||||||||||
Marketing and administrative expenses | 52.3 | 48.5 | 48.8 | 8 | % | 7 | % | |||||||||||
Research and development expenses | 5.3 | 5.2 | 5.1 | 2 | % | 4 | % | |||||||||||
Acquisition related expenses | 0.1 | 0.4 | 1.6 | (75 | )% | (94 | )% | |||||||||||
Income from operations | 63.0 | 43.6 | 66.2 | 44 | % | (5 | )% | |||||||||||
Interest expense, net | (14.2 | ) | (12.7 | ) | (9.8 | ) | 12 | % | 45 | % | ||||||||
Non-cash pension settlement charge | 0.0 | (1.8 | ) | 0.0 | * | * | ||||||||||||
Other non-operating income deductions, net | (1.1 | ) | (1.7 | ) | (0.4 | ) | (35 | )% | 175 | % | ||||||||
Total non-operating deductions, net | (15.3 | ) | (16.2 | ) | (10.2 | ) | (6 | )% | 50 | % | ||||||||
Income before tax and equity in earnings | 47.7 | 27.4 | 56.0 | 74 | % | (15 | )% | |||||||||||
Provision for taxes on income | 10.5 | 6.3 | 11.2 | 67 | % | (6 | )% | |||||||||||
Equity in earnings of affiliates, net of tax | 0.9 | 0.3 | 0.1 | * | * | |||||||||||||
Net income | 38.1 | 21.4 | 44.9 | 78 | % | (15 | )% | |||||||||||
Less: Net income attributable to non-controlling interests | 1.1 | 1.4 | 0.8 | (21 | )% | 38 | % | |||||||||||
Net Income attributable to |
$ | 37.0 | $ | 20.0 | $ | 44.1 | 85 | % | (16 | )% | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||
Basic | 32.5 | 32.5 | 33.1 | |||||||||||||||
Diluted | 32.5 | 32.5 | 33.2 | |||||||||||||||
Earnings per share attributable to MTI: | ||||||||||||||||||
Basic | $ | 1.14 | $ | 0.62 | $ | 1.33 | 84 | % | (14 | )% | ||||||||
Diluted | $ | 1.14 | $ | 0.62 | $ | 1.33 | 84 | % | (14 | )% | ||||||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||||||||
* Percentage not meaningful | ||||||||||||||||||
|
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NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||
1 | ) | For comparative purposes, the quarterly periods ended |
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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 has realigned its business reporting structure into two segments, Consumer & Specialties and Engineered Solutions. | ||||||||||||||||||||
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. | ||||||||||||||||||||||
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. | ||||||||||||||||||||||
For historical consolidated financial information based upon the new segment reporting structure, please see the Company's 8-K filed on |
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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 |
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(millions of dollars) | Quarter Ended | |||||||||||||||||||||
2023 | 2022 | 2022 | ||||||||||||||||||||
Net income attributable to MTI | $ | 37.0 | $ | 20.0 | $ | 44.1 | ||||||||||||||||
% of sales | 6.8 | % | 3.9 | % | 8.5 | % | ||||||||||||||||
Special items: | ||||||||||||||||||||||
Acquisition related expenses | 0.1 | 0.4 | 1.6 | |||||||||||||||||||
Non-cash pension settlement charge | 0.0 | 1.8 | 0.0 | |||||||||||||||||||
Related tax effects on special items | 0.0 | (0.5 | ) | (0.4 | ) | |||||||||||||||||
Net income attributable to MTI, excluding special items | $ | 37.1 | $ | 21.7 | $ | 45.3 | ||||||||||||||||
% of sales | 6.8 | % | 4.3 | % | 8.7 | % | ||||||||||||||||
Diluted earnings per share, excluding special items | $ | 1.14 | $ | 0.67 | $ | 1.36 | ||||||||||||||||
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 |
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Quarter Ended | ||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||
2023 | 2022 | 2022 | ||||||||||||||||||||
Cash flow from operations | $ | 33.7 | $ | 42.3 | $ | 0.3 | ||||||||||||||||
Capital expenditures | 24.5 | 22.9 | 19.0 | |||||||||||||||||||
Free cash flow | $ | 9.2 | $ | 19.4 | $ | (18.7 | ) | |||||||||||||||
Depreciation, depletion and amortization expense | $ | 23.7 | $ | 23.0 | $ | 24.2 | ||||||||||||||||
5 | ) | 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 on a constant currency basis, which is a non-GAAP measure, for the three months ended |
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Quarter Ended |
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Sales Growth | Impact of Foreign Exchange | Sales Growth on Constant Currency Basis |
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Consumer & Specialties | 5 | % | 2 | % | 7 | % | ||||||||||||||||
Engineered Solutions | 6 | % | 3 | % | 9 | % | ||||||||||||||||
MTI Consolidated | 5 | % | 3 | % | 8 | % | ||||||||||||||||
6 | ) | “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) | ||||||||||||||||||||||
2023 | 2022 | 2022 | ||||||||||||||||||||
Net income | $ | 37.0 | $ | 20.0 | $ | 44.1 | ||||||||||||||||
Add back: | ||||||||||||||||||||||
Depreciation, depletion and amortization | 23.7 | 23.0 | 24.2 | |||||||||||||||||||
Interest expense, net | 14.2 | 12.7 | 9.8 | |||||||||||||||||||
Equity in earnings of affiliates, net of tax | (0.9 | ) | (0.3 | ) | (0.1 | ) | ||||||||||||||||
Net income attributable to non-controlling interests | 1.1 | 1.4 | 0.8 | |||||||||||||||||||
Provision for taxes on income | 10.5 | 6.3 | 11.2 | |||||||||||||||||||
EBITDA | 85.6 | 63.1 | 90.0 | |||||||||||||||||||
Add special items: | ||||||||||||||||||||||
Acquisition related transaction expenses | 0.1 | 0.4 | 1.6 | |||||||||||||||||||
Non-cash pension settlement charge | 0.0 | 1.8 | 0.0 | |||||||||||||||||||
Adjusted EBITDA | $ | 85.7 | $ | 65.3 | $ | 91.6 | ||||||||||||||||
% of sales | 15.7 | % | 12.9 | % | 17.6 | % | ||||||||||||||||
7 | ) | The following table reflects the components of non-operating income and deductions: | ||||||||||||||||||||
(millions of dollars) | Quarter Ended | |||||||||||||||||||||
2023 | 2022 | 2022 | ||||||||||||||||||||
Interest income | $ | 0.7 | $ | 0.7 | $ | 0.8 | ||||||||||||||||
Interest expense | (14.9 | ) | (13.4 | ) | (10.6 | ) | ||||||||||||||||
Non-cash pension settlement charge | 0.0 | (1.8 | ) | 0.0 | ||||||||||||||||||
Foreign exchange gains (losses) | 0.2 | (0.1 | ) | 0.9 | ||||||||||||||||||
Other deductions | (1.3 | ) | (1.6 | ) | (1.3 | ) | ||||||||||||||||
Non-operating deductions, net | $ | (15.3 | ) | $ | (16.2 | ) | $ | (10.2 | ) | |||||||||||||
Included in non-operating deductions for the three-month period ended |
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8 | ) | 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 | |||||||||||||||||||
2023 | Total Sales | 2022 | Total Sales | 2022 | Total Sales | Prior Qtr. | Prior Year | |||||||||||||||
$ | 288.0 | 53 | % | $ | 273.0 | 54 | % | $ | 269.7 | 52 | % | 5 | % | 7 | % | |||||||
International | 258.1 | 47 | % | 234.6 | 46 | % | 249.4 | 48 | % | 10 | % | 3 | % | |||||||||
$ | 546.1 | 100 | % | $ | 507.6 | 100 | % | $ | 519.1 | 100 | % | 8 | % | 5 | % | |||||||
Household & Personal Care | $ | 129.2 | 23 | % | $ | 118.2 | 23 | % | $ | 120.4 | 23 | % | 9 | % | 7 | % | ||||||
Specialty Additives | 168.1 | 31 | % | 155.1 | 31 | % | 163.1 | 32 | % | 8 | % | 3 | % | |||||||||
Consumer & Specialties Segment | $ | 297.3 | 54 | % | $ | 273.3 | 54 | % | $ | 283.5 | 55 | % | 9 | % | 5 | % | ||||||
High-Temperature Technologies | $ | 178.6 | 33 | % | $ | 169.8 | 33 | % | $ | 169.9 | 33 | % | 5 | % | 5 | % | ||||||
Environmental & Infrastructure | 70.2 | 13 | % | 64.5 | 13 | % | 65.7 | 12 | % | 9 | % | 7 | % | |||||||||
Engineered Solutions Segment | $ | 248.8 | 46 | % | $ | 234.3 | 46 | % | $ | 235.6 | 45 | % | 6 | % | 6 | % | ||||||
MTI Consolidated |
$ | 546.1 | 100 | % | $ | 507.6 | 100 | % | $ | 519.1 | 100 | % | 8 | % | 5 | % | ||||||
SUPPLEMENTARY DATA | ||||||||||||||||
(millions of dollars) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Quarter Ended | % Growth | |||||||||||||||
Prior | Prior | |||||||||||||||
SEGMENT OPERATING INCOME DATA | 2023 | 2022 | 2022 | Qtr. | Year | |||||||||||
Consumer & Specialties Segment | $ | 32.2 | $ | 16.4 | $ | 31.3 | 96 | % | 3 | % | ||||||
% of Sales | 10.8 | % | 6.0 | % | 11.0 | % | ||||||||||
Engineered Solutions Segment | $ | 35.3 | $ | 31.7 | $ | 37.3 | 11 | % | (5 | )% | ||||||
% of Sales | 14.2 | % | 13.5 | % | 15.8 | % | ||||||||||
Unallocated and Other Corporate Expenses | $ | (4.5 | ) | $ | (4.5 | ) | $ | (2.4 | ) | * | * | |||||
MTI Consolidated | $ | 63.0 | $ | 43.6 | $ | 66.2 | 44 | % | (5 | )% | ||||||
% of Sales | 11.5 | % | 8.6 | % | 12.8 | % | ||||||||||
SPECIAL ITEMS | ||||||||||||||||
Consumer & Specialties Segment | $ | 0.0 | $ | 0.3 | $ | 1.0 | * | * | ||||||||
Engineered Solutions Segment | $ | 0.0 | $ | 0.0 | $ | 0.0 | * | * | ||||||||
Unallocated and Other Corporate Expenses | $ | 0.1 | $ | 0.1 | $ | 0.6 | * | * | ||||||||
MTI Consolidated | $ | 0.1 | $ | 0.4 | $ | 1.6 | * | * | ||||||||
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 | 2023 | 2022 | 2022 | Prior Qtr. | Prior Year | |||||||||||
Consumer & Specialties Segment | $ | 32.2 | $ | 16.7 | $ | 32.3 | 93 | % | (0 | )% | ||||||
% of Sales | 10.8 | % | 6.1 | % | 11.4 | % | ||||||||||
Engineered Solutions Segment | $ | 35.3 | $ | 31.7 | $ | 37.3 | 11 | % | (5 | )% | ||||||
% of Sales | 14.2 | % | 13.5 | % | 15.8 | % | ||||||||||
Unallocated and Other Corporate Expenses | $ | (4.4 | ) | $ | (4.4 | ) | $ | (1.8 | ) | * | * | |||||
MTI Consolidated | $ | 63.1 | $ | 44.0 | $ | 67.8 | 43 | % | (7 | )% | ||||||
% of Sales | 11.6 | % | 8.7 | % | 13.1 | % | ||||||||||
* Percentage not meaningful |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
ASSETS | |||||||
(In Millions of Dollars) | |||||||
2023* | 2022** | ||||||
Current assets: | |||||||
Cash & cash equivalents | $ | 249.7 | $ | 247.2 | |||
Short-term investments | 6.2 | 5.6 | |||||
Accounts receivable, net | 421.1 | 404.0 | |||||
Inventories | 370.1 | 348.8 | |||||
Prepaid expenses and other current assets | 67.8 | 64.9 | |||||
Total current assets | 1,114.9 | 1,070.5 | |||||
Property, plant and equipment | 2,293.2 | 2,288.6 | |||||
Less accumulated depreciation | 1,235.7 | 1,238.2 | |||||
Net property, plant & equipment | 1,057.5 | 1,050.4 | |||||
915.3 | 914.8 | ||||||
Intangible assets | 239.1 | 241.9 | |||||
Other assets and deferred charges | 123.9 | 124.0 | |||||
Total assets | $ | 3,450.7 | $ | 3,401.6 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 118.6 | $ | 119.7 | |||
Current maturities of long-term debt | 14.5 | 14.5 | |||||
Accounts payable | 225.7 | 193.8 | |||||
Other current liabilities | 154.2 | 174.6 | |||||
Total current liabilities | 513.0 | 502.6 | |||||
Long-term debt | 924.7 | 928.1 | |||||
Deferred income taxes | 178.9 | 180.4 | |||||
Other non-current liabilities | 176.1 | 177.3 | |||||
Total liabilities | 1,792.7 | 1,788.4 | |||||
Total MTI shareholders' equity | 1,622.8 | 1,579.5 | |||||
Non-controlling Interests | 35.2 | 33.7 | |||||
Total shareholders' equity | 1,658.0 | 1,613.2 | |||||
Total liabilities and shareholders' equity | $ | 3,450.7 | $ | 3,401.6 | |||
* | Unaudited | ||||||
** | Condensed from audited financial statements. |

Source: Minerals Technologies Inc.