Minerals Technologies Reports Second Quarter 2019 Earnings of $0.75 Per Share, or $1.11 Per Share Excluding Special Items
Highlights:
- Sales of
$464 Million ; Double Digit Operating Margins Across All Segments - Strong Operating Cash Flow of
$68 Million - Restructuring Program Expected to Deliver Annualized Savings of
$12 Million - Signed Agreement for New 45,000 Ton Satellite Paper PCC Plant in
India - First Commercial Deployment of ENVIROFIL® PCC Minerals Recycling Technology
Worldwide net sales of
Mr. Dietrich added, “To adjust to the changing market conditions and to improve margins, we initiated a restructuring and cost savings program which is expected to deliver
During the second quarter, the Company incurred
Segment Information
Performance Materials and Specialty Minerals
Sales in the Minerals businesses, which include the Performance Materials and Specialty Minerals segments, decreased 1 percent in the second quarter to
Performance Materials segment sales were flat with the prior year at
Sales in Household, Personal Care & Specialty Products increased 18 percent, primarily due to the continued growth of our pet care products in
Sales growth in the segment was partially offset by decreased sales in Metalcasting and Basic Minerals. The decrease in Metalcasting sales was due to weaker demand in U.S. automotive, heavy truck and agricultural equipment as well as in
Operating income as reported for the segment was
The Performance Materials segment provides a wide range of bentonite-based and synthetic materials for industrial and consumer markets and for non-residential construction, environmental remediation and infrastructure projects worldwide.
Specialty Minerals segment sales, which consist of the Precipitated Calcium Carbonate (PCC) and Processed Minerals product lines, decreased 4 percent to
Worldwide sales of PCC, which is used mainly in the manufacturing processes of the paper industry, decreased 4 percent to
Processed Minerals sales decreased 4 percent to
Segment operating income as reported was
Refractories and Energy Services
Sales in the Service businesses, which include the Refractories and Energy Services segments, increased 4 percent to
Refractories segment sales decreased 3 percent to
Energy Services segment sales rose 31 percent to
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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, 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 2018 Annual Report on Form 10-K and in our other reports filed with the
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | ||||||||||||||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Quarter Ended | % Growth | Six Months Ended | % Growth | |||||||||||||||||||||||||||||
Jun. 30, | Mar. 31, | Jul. 1, | Jun. 30, | Jul. 1, | ||||||||||||||||||||||||||||
2019 | 2019 | 2018 | Prior Qtr. | Prior Year | 2019 | 2018 | Prior Year | |||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||
Product sales | $ | 438.0 | $ | 417.4 | $ | 445.0 | 5 | % | (2 | )% | $ | 855.4 | $ | 857.2 | (0 | )% | ||||||||||||||||
Service revenue | 25.8 | 20.3 | 19.7 | 27 | % | 31 | % | 46.1 | 38.8 | 19 | % | |||||||||||||||||||||
Total net sales | 463.8 | 437.7 | 464.7 | 6 | % | (0 | )% | 901.5 | 896.0 | 1 | % | |||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||
Cost of goods sold | 334.0 | 314.0 | 335.3 | 6 | % | (0 | )% | 648.0 | 640.3 | 1 | % | |||||||||||||||||||||
Cost of service revenue | 17.8 | 14.0 | 13.5 | 27 | % | 32 | % | 31.8 | 26.3 | 21 | % | |||||||||||||||||||||
Total cost of sales | 351.8 | 328.0 | 348.8 | 7 | % | 1 | % | 679.8 | 666.6 | 2 | % | |||||||||||||||||||||
Production margin | 112.0 | 109.7 | 115.9 | 2 | % | (3 | )% | 221.7 | 229.4 | (3 | )% | |||||||||||||||||||||
Marketing and administrative expenses | 48.4 | 42.9 | 45.3 | 13 | % | 7 | % | 91.3 | 89.7 | 2 | % | |||||||||||||||||||||
Research and development expenses | 4.9 | 4.8 | 6.4 | 2 | % | (23 | )% | 9.7 | 12.5 | (22 | )% | |||||||||||||||||||||
Acquisition-related transaction and integration costs | 0.0 | 0.0 | 1.0 | * | * | 0.0 | 1.4 | * | ||||||||||||||||||||||||
Restructuring and other items, net | 13.2 | 0.0 | 0.4 | * | * | 13.2 | 0.4 | * | ||||||||||||||||||||||||
Income from operations | 45.5 | 62.0 | 62.8 | (27 | )% | (28 | )% | 107.5 | 125.4 | (14 | )% | |||||||||||||||||||||
Interest expense, net | (10.9 | ) | (11.4 | ) | (11.5 | ) | (4 | )% | (5 | )% | (22.3 | ) | (22.2 | ) | 0 | % | ||||||||||||||||
Other non-operating income (deductions), net | (2.4 | ) | (1.4 | ) | 3.1 | 71 | % | * | (3.8 | ) | 0.4 | * | ||||||||||||||||||||
Total non-operating deductions, net | (13.3 | ) | (12.8 | ) | (8.4 | ) | 4 | % | 58 | % | (26.1 | ) | (21.8 | ) | 20 | % | ||||||||||||||||
Income before tax and equity in earnings | 32.2 | 49.2 | 54.4 | (35 | )% | (41 | )% | 81.4 | 103.6 | (21 | )% | |||||||||||||||||||||
Provision for taxes on income | 5.1 | 9.3 | 10.3 | (45 | )% | (50 | )% | 14.4 | 19.6 | (27 | )% | |||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 0.5 | 0.1 | 1.1 | * | (55 | )% | 0.6 | 2.3 | (74 | )% | ||||||||||||||||||||||
Consolidated net income | 27.6 | 40.0 | 45.2 | (31 | )% | (39 | )% | 67.6 | 86.3 | (22 | )% | |||||||||||||||||||||
Less: Net income attributable to non-controlling interests | 1.0 | 0.9 | 1.1 | 11 | % | (9 | )% | 1.9 | 2.3 | (17 | )% | |||||||||||||||||||||
Net Income attributable to Minerals Technologies Inc. | $ | 26.6 | $ | 39.1 | $ | 44.1 | (32 | )% | (40 | )% | $ | 65.7 | $ | 84.0 | (22 | )% | ||||||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 35.2 | 35.2 | 35.3 | 35.2 | 35.4 | |||||||||||||||||||||||||||
Diluted | 35.3 | 35.3 | 35.6 | 35.3 | 35.6 | |||||||||||||||||||||||||||
Earnings per share attributable to Minerals Technologies Inc.: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.76 | $ | 1.11 | $ | 1.25 | (32 | )% | (39 | )% | $ | 1.87 | $ | 2.37 | (21 | )% | ||||||||||||||||
Diluted | $ | 0.75 | $ | 1.11 | $ | 1.24 | (32 | )% | (40 | )% | $ | 1.86 | $ | 2.36 | (21 | )% | ||||||||||||||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.10 | $ | 0.10 | ||||||||||||||||||||||
* Percentage not meaningful | ||||||||||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||
1) | For comparative purposes, the quarterly periods ended June 30, 2019, March 31,2019 and July 1, 2018 each consisted of 91 days, 90 days and 91 days, respectively. The six month periods ended June 30, 2019 and July 1, 2018 consisted of 181 days and 182 days, respectively. | ||||||||||||||||||||||||
2) | In the second quarter of 2019, the Company initiated a restructuring and cost savings program to better align our costs and organizational structure with the current market environment. The Company recorded non-cash impairment of assets charges of $7.5 million and restructuring and other charges of $5.7 million relating to severance and other costs. | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||||||||||
Jun. 30, | Mar. 31, | Jul. 1, | Jun. 30, | Jul. 1, | |||||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
Impairment of assets | |||||||||||||||||||||||||
Performance Materials | $ | 4.2 | $ | 0.0 | $ | 0.0 | $ | 4.2 | $ | 0.0 | |||||||||||||||
Specialty Minerals | 1.6 | 0.0 | 0.0 | 1.6 | 0.0 | ||||||||||||||||||||
Energy Services | 1.7 | 0.0 | 0.0 | 1.7 | 0.0 | ||||||||||||||||||||
Total impairment of assets charge | $ | 7.5 | $ | 0.0 | $ | 0.0 | $ | 7.5 | $ | 0.0 | |||||||||||||||
Restructuring and other items, net | |||||||||||||||||||||||||
Severance related costs | $ | 5.7 | $ | 0.0 | $ | 0.0 | $ | 5.7 | $ | 0.0 | |||||||||||||||
5.7 | 0.0 | 0.0 | 5.7 | 0.0 | |||||||||||||||||||||
Total restructuring and other items, net | $ | 13.2 | $ | 0.0 | $ | 0.0 | $ | 13.2 | $ | 0.0 | |||||||||||||||
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 June 30, 2019, March 31, 2019 and July 1, 2018, and the six month periods ended June 30, 2019 and July 1, 2018 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 | Six Months Ended | |||||||||||||||||||||||
Jun. 30, | Mar. 31, | Jul. 1, | Jun. 30, | Jul. 1, | |||||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
Income from continuing operations attributable to MTI | $ | 26.6 | $ | 39.1 | $ | 44.1 | $ | 65.7 | $ | 84.0 | |||||||||||||||
% of sales | 5.7 | % | 8.9 | % | 9.5 | % | 7.3 | % | 9.4 | % | |||||||||||||||
Special items: | |||||||||||||||||||||||||
Acquisition-related transaction and integration costs | 0.0 | 0.0 | 1.0 | 0.0 | 1.4 | ||||||||||||||||||||
Write-off of receivables due to UK customer bankruptcy | 2.5 | 0.0 | 0.0 | 2.5 | 0.0 | ||||||||||||||||||||
Restructuring and other items, net | 13.2 | 0.0 | 0.4 | 13.2 | 0.4 | ||||||||||||||||||||
Non-cash inventory step-up charges | 0.0 | 0.0 | 0.5 | 0.0 | 0.5 | ||||||||||||||||||||
Related tax effects on special items | (3.2 | ) | 0.0 | (0.5 | ) | (3.2 | ) | (0.6 | ) | ||||||||||||||||
Income from continuing operations attributable to MTI, excluding special items | $ | 39.1 | $ | 39.1 | $ | 45.5 | $ | 78.2 | $ | 85.7 | |||||||||||||||
% of sales | 8.4 | % | 8.9 | % | 9.8 | % | 8.7 | % | 9.6 | % | |||||||||||||||
Diluted earnings per share, excluding special items | $ | 1.11 | $ | 1.11 | $ | 1.28 | $ | 2.22 | $ | 2.41 | |||||||||||||||
Included in marketing and administrative expenses in the second quarter of 2019 is a provision for bad debt of $2.5 million related to a bankruptcy of a Refractories customer in the UK. | |||||||||||||||||||||||||
4) | This press release contains a measure of underlying sales growth year-over-year excluding the impact of foreign exchange. This is a non-GAAP measure. We believe this measure provides investors with a more complete understanding of underlying sales trends by providing sales growth on a consistent basis. The reconciliation of reported sales growth to underlying sales growth is as follows: | ||||||||||||||||||||||||
Reported | Foreign | Sales Growth | |||||||||||||||||||||||
Net Sales | Exchange | Excluding | |||||||||||||||||||||||
Growth | Impact | Foreign Exchange | |||||||||||||||||||||||
Performance Materials | 0 | % | (4 | )% | 4 | % | |||||||||||||||||||
Specialty Minerals | (4 | )% | (3 | )% | (1 | )% | |||||||||||||||||||
Total Minerals Businesses | (1 | )% | (3 | )% | 2 | % | |||||||||||||||||||
Refractories | (3 | )% | (3 | )% | 0 | % | |||||||||||||||||||
Energy Services | 31 | % | (3 | )% | 34 | % | |||||||||||||||||||
Total Services Businesses | 4 | % | (3 | )% | 7 | % | |||||||||||||||||||
Consolidated MTI | 0 | % | (3 | )% | 3 | % | |||||||||||||||||||
5) | 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 June 30, 2019, March 31, 2019 and July 1, 2018 and the six month periods ended June 30, 2019 and July 1, 2018 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) | Jun. 30, | Mar. 31, | Jul. 1, | Jun. 30, | Jul. 1, | ||||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
Cash flow from continuing operations | $ | 67.5 | $ | 30.8 | $ | 44.5 | $ | 98.3 | $ | 80.2 | |||||||||||||||
Capital expenditures | 17.9 | 17.6 | 24.2 | 35.5 | 42.1 | ||||||||||||||||||||
Free cash flow | $ | 49.6 | $ | 13.2 | $ | 20.3 | $ | 62.8 | $ | 38.1 | |||||||||||||||
6) | The following table reflects the components of non-operating income and deductions: | ||||||||||||||||||||||||
(millions of dollars) | Quarter Ended | Six Months Ended | |||||||||||||||||||||||
Jun. 30, | Mar. 31, | Jul. 1, | Jun. 30, | Jul. 1, | |||||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
Interest income | $ | 0.6 | $ | 0.6 | $ | 0.5 | $ | 1.2 | $ | 1.0 | |||||||||||||||
Interest expense | (11.5 | ) | (11.9 | ) | (12.0 | ) | (23.4 | ) | (23.2 | ) | |||||||||||||||
Foreign exchange gains (losses) | 0.1 | 0.9 | 4.9 | 1.0 | 4.2 | ||||||||||||||||||||
Other deductions | (2.5 | ) | (2.4 | ) | (1.8 | ) | (4.9 | ) | (3.8 | ) | |||||||||||||||
Non-operating deductions, net | $ | (13.3 | ) | $ | (12.8 | ) | $ | (8.4 | ) | $ | (26.1 | ) | $ | (21.8 | ) | ||||||||||
7) | The analyst conference call to discuss operating results for the second quarter is scheduled for Friday, August 2, 2019 at 11:00 am E.T. 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 | Jun. 30, | % of | Mar. 31, | % of | Jul. 1, | % of | Jun. 30, | % of | Jul. 1, | % of | |||||||||||||||||||||
2019 | Total Sales | 2019 | Total Sales | 2018 | Total Sales | Prior Qtr | Prior Year | 2019 | Total Sales | 2018 | Total Sales | Prior Year | |||||||||||||||||||
United States | $ | 253.3 | 55 | % | $ | 231.7 | 53 | % | $ | 249.0 | 54 | % | 9 | % | 2 | % | $ | 485.0 | 54 | % | $ | 481.3 | 54 | % | 1 | % | |||||
International | 210.5 | 45 | % | 206.0 | 47 | % | 215.7 | 46 | % | 2 | % | (2 | )% | 416.5 | 46 | % | 414.7 | 46 | % | 0 | % | ||||||||||
Net Sales | $ | 463.8 | 100 | % | $ | 437.7 | 100 | % | $ | 464.7 | 100 | % | 6 | % | (0 | )% | $ | 901.5 | 100 | % | $ | 896.0 | 100 | % | 1 | % | |||||
Metalcasting | $ | 75.8 | 16 | % | $ | 73.2 | 17 | % | $ | 88.8 | 19 | % | 4 | % | (15 | )% | $ | 149.0 | 17 | % | $ | 168.0 | 19 | % | (11 | )% | |||||
Household, Personal Care & Specialty Products | 69.0 | 15 | % | 74.9 | 17 | % | 58.6 | 13 | % | (8 | )% | 18 | % | 143.9 | 16 | % | 107.3 | 12 | % | 34 | % | ||||||||||
Environmental Products | 29.0 | 6 | % | 15.9 | 4 | % | 25.2 | 5 | % | 82 | % | 15 | % | 44.9 | 5 | % | 37.9 | 4 | % | 18 | % | ||||||||||
Building Materials | 19.1 | 4 | % | 15.3 | 3 | % | 18.0 | 4 | % | 25 | % | 6 | % | 34.4 | 4 | % | 36.9 | 4 | % | (7 | )% | ||||||||||
Basic Minerals | 22.5 | 5 | % | 19.9 | 5 | % | 23.9 | 5 | % | 13 | % | (6 | )% | 42.4 | 5 | % | 51.7 | 6 | % | (18 | )% | ||||||||||
Performance Materials Segment | $ | 215.4 | 46 | % | $ | 199.2 | 46 | % | $ | 214.5 | 46 | % | 8 | % | 0 | % | $ | 414.6 | 46 | % | $ | 401.8 | 45 | % | 3 | % | |||||
Paper PCC | $ | 90.2 | 19 | % | $ | 91.5 | 21 | % | $ | 94.5 | 20 | % | (1 | )% | (5 | )% | $ | 181.7 | 20 | % | $ | 191.5 | 21 | % | (5 | )% | |||||
Specialty PCC | 17.3 | 4 | % | 18.1 | 4 | % | 17.3 | 4 | % | (4 | )% | 0 | % | 35.4 | 4 | % | 34.3 | 4 | % | 3 | % | ||||||||||
PCC Products | $ | 107.5 | 23 | % | $ | 109.6 | 25 | % | $ | 111.8 | 24 | % | (2 | )% | (4 | )% | $ | 217.1 | 24 | % | $ | 225.8 | 25 | % | (4 | )% | |||||
Ground Calcium Carbonate | $ | 24.8 | 5 | % | $ | 22.3 | 5 | % | $ | 25.2 | 5 | % | 11 | % | (2 | )% | $ | 47.1 | 5 | % | 47.7 | 5 | % | (1 | )% | ||||||
Talc | 12.8 | 3 | % | 12.5 | 3 | % | 13.9 | 3 | % | 2 | % | (8 | )% | 25.3 | 3 | % | 27.0 | 3 | % | (6 | )% | ||||||||||
Processed Minerals Products | $ | 37.6 | 8 | % | $ | 34.8 | 8 | % | $ | 39.1 | 8 | % | 8 | % | (4 | )% | $ | 72.4 | 8 | % | $ | 74.7 | 8 | % | (3 | )% | |||||
Specialty Minerals Segment | $ | 145.1 | 31 | % | $ | 144.4 | 33 | % | $ | 150.9 | 32 | % | 0 | % | (4 | )% | $ | 289.5 | 32 | % | $ | 300.5 | 34 | % | (4 | )% | |||||
Total Minerals Businesses | $ | 360.5 | 78 | % | $ | 343.6 | 79 | % | $ | 365.4 | 79 | % | 5 | % | (1 | )% | $ | 704.1 | 78 | % | $ | 702.3 | 78 | % | 0 | % | |||||
Refractory Products | $ | 61.0 | 13 | % | $ | 62.0 | 14 | % | $ | 66.7 | 14 | % | (2 | )% | (9 | )% | $ | 123.0 | 14 | % | $ | 129.0 | 14 | % | (5 | )% | |||||
Metallurgical Products | 16.5 | 4 | % | 11.8 | 3 | % | 12.9 | 3 | % | 40 | % | 28 | % | 28.3 | 3 | % | 25.9 | 3 | % | 9 | % | ||||||||||
Refractories Segment | $ | 77.5 | 17 | % | $ | 73.8 | 17 | % | $ | 79.6 | 17 | % | 5 | % | (3 | )% | $ | 151.3 | 17 | % | $ | 154.9 | 17 | % | (2 | )% | |||||
Energy Services Segment | $ | 25.8 | 6 | % | $ | 20.3 | 5 | % | $ | 19.7 | 4 | % | 27 | % | 31 | % | $ | 46.1 | 5 | % | $ | 38.8 | 4 | % | 19 | % | |||||
Total Service Businesses | $ | 103.3 | 22 | % | $ | 94.1 | 21 | % | $ | 99.3 | 21 | % | 10 | % | 4 | % | $ | 197.4 | 22 | % | $ | 193.7 | 22 | % | 2 | % | |||||
Net Sales | $ | 463.8 | 100 | % | $ | 437.7 | 100 | % | $ | 464.7 | 100 | % | 6 | % | (0 | )% | $ | 901.5 | 100 | % | $ | 896.0 | 100 | % | 1 | % | |||||
SUPPLEMENTARY DATA | ||||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | ||||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Quarter Ended | % Growth | Six Months Ended | % Growth | |||||||||||||||||||||||
Jun. 30, | Mar. 31, | Jul. 1, | Jun. 30, | Jul. 1, | ||||||||||||||||||||||
SEGMENT OPERATING INCOME DATA | 2019 | 2019 | 2018 | Prior Qtr | Prior Year | 2019 | 2018 | Prior Year | ||||||||||||||||||
Performance Materials Segment | $ | 20.7 | $ | 26.3 | $ | 29.6 | (21 | )% | (30 | )% | $ | 47.0 | $ | 55.8 | (16 | )% | ||||||||||
% of Sales | 9.6 | % | 13.2 | % | 13.8 | % | 11.3 | % | 13.9 | % | ||||||||||||||||
Specialty Minerals Segment | $ | 20.0 | $ | 22.0 | $ | 25.1 | (9 | )% | (20 | )% | $ | 42.0 | $ | 49.2 | (15 | )% | ||||||||||
% of Sales | 13.8 | % | 15.2 | % | 16.6 | % | 14.5 | % | 16.4 | % | ||||||||||||||||
Total Minerals Businesses | $ | 40.7 | $ | 48.3 | $ | 54.7 | (16 | )% | (26 | )% | $ | 89.0 | $ | 105.0 | (15 | )% | ||||||||||
% of Sales | 11.3 | % | 14.1 | % | 15.0 | % | 12.6 | % | 15.0 | % | ||||||||||||||||
Refractories Segment | $ | 7.1 | $ | 12.1 | $ | 10.3 | (41 | )% | (31 | )% | $ | 19.2 | $ | 23.1 | (17 | )% | ||||||||||
% of Sales | 9.2 | % | 16.4 | % | 12.9 | % | 12.7 | % | 14.9 | % | ||||||||||||||||
Energy Services Segment | $ | 0.9 | $ | 2.4 | $ | 0.7 | (63 | )% | 29 | % | $ | 3.3 | $ | 2.2 | 50 | % | ||||||||||
% of Sales | 3.5 | % | 11.8 | % | 3.6 | % | 7.2 | % | 5.7 | % | ||||||||||||||||
Total Service Businesses | $ | 8.0 | $ | 14.5 | $ | 11.0 | (45 | )% | (27 | )% | $ | 22.5 | $ | 25.3 | (11 | )% | ||||||||||
% of Sales | 7.7 | % | 15.4 | % | 11.1 | % | 11.4 | % | 13.1 | % | ||||||||||||||||
Unallocated Corporate Expenses | $ | (3.2 | ) | $ | (0.8 | ) | $ | (1.9 | ) | * | (68 | )% | $ | (4.0 | ) | $ | (3.5 | ) | (14 | )% | ||||||
Acquisition-related transaction costs | $ | 0.0 | $ | 0.0 | $ | (1.0 | ) | * | * | $ | 0.0 | $ | (1.4 | ) | * | |||||||||||
Consolidated | $ | 45.5 | $ | 62.0 | $ | 62.8 | (27 | )% | (28 | )% | $ | 107.5 | $ | 125.4 | (14 | )% | ||||||||||
% of Sales | 9.8 | % | 14.2 | % | 13.5 | % | 11.9 | % | 14.0 | % | ||||||||||||||||
SPECIAL ITEMS | ||||||||||||||||||||||||||
Performance Materials Segment | $ | 7.0 | $ | 0.0 | $ | 0.5 | * | * | $ | 7.0 | $ | 0.5 | * | |||||||||||||
Specialty Minerals Segment | $ | 2.5 | $ | 0.0 | $ | 0.0 | * | * | $ | 2.5 | $ | 0.0 | * | |||||||||||||
Total Minerals Businesses | $ | 9.5 | $ | 0.0 | $ | 0.5 | * | * | $ | 9.5 | $ | 0.5 | * | |||||||||||||
Refractories Segment | $ | 3.3 | $ | 0.0 | $ | 0.0 | * | * | $ | 3.3 | $ | 0.0 | * | |||||||||||||
Energy Services Segment | $ | 1.8 | $ | 0.0 | $ | 0.4 | * | * | $ | 1.8 | $ | 0.4 | * | |||||||||||||
Total Service Businesses | $ | 5.1 | $ | 0.0 | $ | 0.4 | * | * | $ | 5.1 | $ | 0.4 | * | |||||||||||||
Unallocated and Other Corporate Expenses | $ | 1.1 | $ | 0.0 | $ | 0.0 | * | * | $ | 1.1 | $ | 0.0 | * | |||||||||||||
Acquisition-related transaction costs | $ | 0.0 | $ | 0.0 | $ | 1.0 | * | * | $ | 0.0 | $ | 1.4 | * | |||||||||||||
Consolidated | $ | 15.7 | $ | 0.0 | $ | 1.9 | * | * | $ | 15.7 | $ | 2.3 | * | |||||||||||||
To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of the Company's non-GAAP operating income, excluding special items (acquisition-related transaction costs set forth in the above table), for the quarterly periods ended June 30, 2019, March 31, 2019 and July 1, 2018, and the six month periods ended June 30, 2019 and July 1, 2018 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, | Jun. 30, | Mar. 31, | Jul. 1, | Jun. 30, | Jul. 1, | |||||||||||||||||||||
EXCLUDING SPECIAL ITEMS | 2019 | 2019 | 2018 | Prior Qtr | Prior Year | 2019 | 2018 | Prior Year | ||||||||||||||||||
Performance Materials Segment | $ | 27.7 | $ | 26.3 | $ | 30.1 | 5 | % | (8 | )% | $ | 54.0 | $ | 56.3 | (4 | )% | ||||||||||
% of Sales | 12.9 | % | 13.2 | % | 14.0 | % | 13.0 | % | 14.0 | % | ||||||||||||||||
Specialty Minerals Segment | $ | 22.5 | $ | 22.0 | $ | 25.1 | 2 | % | (10 | )% | $ | 44.5 | $ | 49.2 | (10 | )% | ||||||||||
% of Sales | 15.5 | % | 15.2 | % | 16.6 | % | 15.4 | % | 16.4 | % | ||||||||||||||||
Total Minerals Businesses | $ | 50.2 | $ | 48.3 | $ | 55.2 | 4 | % | (9 | )% | $ | 98.5 | $ | 105.5 | (7 | )% | ||||||||||
% of Sales | 13.9 | % | 14.1 | % | 15.1 | % | 14.0 | % | 15.0 | % | ||||||||||||||||
Refractories Segment | $ | 10.4 | $ | 12.1 | $ | 10.3 | (14 | )% | 1 | % | $ | 22.5 | $ | 23.1 | (3 | )% | ||||||||||
% of Sales | 13.4 | % | 16.4 | % | 12.9 | % | 14.9 | % | 14.9 | % | ||||||||||||||||
Energy Services Segment | $ | 2.7 | $ | 2.4 | $ | 1.1 | 13 | % | 145 | % | $ | 5.1 | $ | 2.6 | 96 | % | ||||||||||
% of Sales | 10.5 | % | 11.8 | % | 5.6 | % | 11.1 | % | 6.7 | % | ||||||||||||||||
Total Service Businesses | $ | 13.1 | $ | 14.5 | $ | 11.4 | (10 | )% | 15 | % | $ | 27.6 | $ | 25.7 | 7 | % | ||||||||||
% of Sales | 12.7 | % | 15.4 | % | 11.5 | % | 14.0 | % | 13.3 | % | ||||||||||||||||
Unallocated Corporate Expenses | $ | (2.1 | ) | $ | (0.8 | ) | $ | (1.9 | ) | 163 | % | (11 | )% | $ | (2.9 | ) | $ | (3.5 | ) | 17 | % | |||||
Consolidated | $ | 61.2 | $ | 62.0 | $ | 64.7 | (1 | )% | (5 | )% | $ | 123.2 | $ | 127.7 | (4 | )% | ||||||||||
% of Sales | 13.2 | % | 14.2 | % | 13.9 | % | 13.7 | % | 14.3 | % | ||||||||||||||||
* Percentage not meaningful | ||||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
ASSETS | ||||||
(In Millions of Dollars) | ||||||
Jun 30, | December 31, | |||||
2019* | 2018** | |||||
Current assets: | ||||||
Cash & cash equivalents | $ | 214.5 | $ | 208.8 | ||
Short-term investments | 5.2 | 3.8 | ||||
Accounts receivable, net | 411.9 | 387.3 | ||||
Inventories | 258.4 | 239.2 | ||||
Prepaid expenses and other current assets | 41.1 | 37.2 | ||||
Total current assets | 931.1 | 876.3 | ||||
Property, plant and equipment | 2,246.8 | 2,256.0 | ||||
Less accumulated depreciation | 1,177.7 | 1,153.1 | ||||
Net property, plant & equipment | 1,069.1 | 1,102.9 | ||||
Goodwill | 807.9 | 812.4 | ||||
Intangible assets | 207.9 | 214.1 | ||||
Other assets and deferred charges | 133.4 | 81.4 | ||||
Total assets | $ | 3,149.4 | $ | 3,087.1 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Short-term debt | $ | 104.2 | $ | 105.2 | ||
Current maturities of long-term debt | 2.1 | 3.3 | ||||
Accounts payable | 188.2 | 169.1 | ||||
Other current liabilities | 111.1 | 104.3 | ||||
Total current liabilities | 405.6 | 381.9 | ||||
Long-term debt | 874.2 | 907.8 | ||||
Deferred income taxes | 194.2 | 196.8 | ||||
Other non-current liabilities | 253.8 | 215.3 | ||||
Total liabilities | 1,727.8 | 1,701.8 | ||||
Total MTI shareholders' equity | 1,390.9 | 1,353.5 | ||||
Non-controlling Interests | 30.7 | 31.8 | ||||
Total shareholders' equity | 1,421.6 | 1,385.3 | ||||
Total liabilities and shareholders' equity | $ | 3,149.4 | $ | 3,087.1 | ||
* | Unaudited | |||||
** | Condensed from audited financial statements. |
Source: Minerals Technologies Inc.