Minerals Technologies Reports Third Quarter Earnings of $1.17 Per Share, or $1.19 Per Share, Excluding Special Items
Highlights:
- Sales Growth of 6 Percent
- Strong Operating Margins
- Asia Sales Growth of 16 Percent; 13 Percent Growth in
China - Cash Flow from Operations of
$73 Million - Signed Agreement for Large Satellite PCC Plant in
Indonesia
“The Company reported a solid financial performance in the third quarter. Several of our product lines realized substantial growth globally and delivered strong operating margins,” said
Worldwide net sales in the third quarter increased 6 percent to
Sales in the Minerals businesses, which include the Specialty Minerals and Performance Materials segments, grew 6 percent in the third quarter to
Sales in the Performance Materials segment increased 12 percent in the third quarter to
Third quarter worldwide sales for the Specialty Minerals segment, which consists of the Precipitated Calcium Carbonate (PCC) and Processed Minerals product lines, were
Worldwide sales of PCC, which is used mainly in the manufacturing processes of the paper industry, increased 1 percent in the third quarter to
Third quarter net sales of Processed Minerals products decreased 2 percent to
The Service businesses, which include the Refractories and Energy Services segments, improved their performance in the quarter. Sales of
Third quarter sales in the Refractories segment, which provides products and services primarily to the worldwide steel industry, increased 9 percent over the same period last year to
Energy Services segment sales were
“MTI posted another solid quarter, with substantial growth in several product lines. In our 26th year as a publicly traded company, we are solidly positioned to continue to pursue sustainable, profitable growth across our portfolio,” said Mr. Dietrich.
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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 2016 Annual Report on Form 10-K and in our other reports filed with the
About
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | |||||||||||||||||||||||||
(in millions, except per share data) |
|||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
Quarter Ended | % Growth | Nine Months Ended | % Growth | ||||||||||||||||||||||
Oct. 1, | Jul. 2, | Oct. 2, | Oct. 1, | Oct. 2, | |||||||||||||||||||||
2017 | 2017 | 2016 | Prior Qtr. | Prior Year | 2017 | 2016 | Prior Year | ||||||||||||||||||
Net sales | |||||||||||||||||||||||||
Product sales | $ | 405.4 | $ | 396.2 | $ | 379.7 | 2 | % | 7 | % | $ | 1,187.9 | $ | 1,171.1 | 1 | % | |||||||||
Service revenue | 19.0 | 17.9 | 19.8 | 6 | % | (4 | )% | 55.6 | 65.6 | (15 | )% | ||||||||||||||
Total net sales | 424.4 | 414.1 | 399.5 | 2 | % | 6 | % | 1,243.5 | 1,236.7 | 1 | % | ||||||||||||||
Cost of sales | |||||||||||||||||||||||||
Cost of goods sold | 293.0 | 282.7 | 272.0 | 4 | % | 8 | % | 854.7 | 840.8 | 2 | % | ||||||||||||||
Cost of service revenue | 12.2 | 11.7 | 12.3 | 4 | % | (1 | )% | 36.2 | 46.9 | (23 | )% | ||||||||||||||
Total cost of sales | 305.2 | 294.4 | 284.3 | 4 | % | 7 | % | 890.9 | 887.7 | 0 | % | ||||||||||||||
Production margin | 119.2 | 119.7 | 115.2 | (0 | )% | 3 | % | 352.6 | 349.0 | 1 | % | ||||||||||||||
Marketing and administrative expenses | 45.6 | 44.1 | 42.4 | 3 | % | 8 | % | 134.1 | 134.2 | (0 | )% | ||||||||||||||
Research and development expenses | 5.9 | 6.1 | 5.9 | (3 | )% | 0 | % | 17.8 | 17.9 | (1 | )% | ||||||||||||||
Acquisition related transaction and integration costs | 0.5 | 0.8 | 1.9 | (38 | )% | (74 | )% | 2.8 | 5.1 | (45 | )% | ||||||||||||||
Restructuring and other items, net | 0.4 | 0.2 | (2.3 | ) | * | * | 0.9 | 27.4 | * | ||||||||||||||||
Income from operations | 66.8 | 68.5 | 67.3 | (2 | )% | (1 | )% | 197.0 | 164.4 | 20 | % | ||||||||||||||
Interest expense, net | (10.5 | ) | (10.2 | ) | (13.4 | ) | 3 | % | (22 | )% | (32.5 | ) | (41.4 | ) | (21 | )% | |||||||||
Extinguishment of debt costs and fees | 0.0 | 0.0 | 0.0 | * | * | (3.9 | ) | 0.0 | * | ||||||||||||||||
Other non-operating income (deductions), net | (1.7 | ) | (1.2 | ) | (0.6 | ) | 42 | % | 183 | % | (3.4 | ) | 1.7 | * | |||||||||||
Total non-operating deductions, net | (12.2 | ) | (11.4 | ) | (14.0 | ) | 7 | % | (13 | )% | (39.8 | ) | (39.7 | ) | 0 | % | |||||||||
Income before tax and equity in earnings | 54.6 | 57.1 | 53.3 | (4 | )% | 2 | % | 157.2 | 124.7 | 26 | % | ||||||||||||||
Provision for taxes on income | 12.1 | 13.4 | 11.5 | (10 | )% | 5 | % | 35.6 | 26.7 | 33 | % | ||||||||||||||
Equity in earnings of affiliates, net of tax | 0.4 | 0.1 | 0.7 | 300 | % | (43 | )% | 0.7 | 1.6 | (56 | )% | ||||||||||||||
Consolidated net income | 42.9 | 43.8 | 42.5 | (2 | )% | 1 | % | 122.3 | 99.6 | 23 | % | ||||||||||||||
Less: Net income attributable to non-controlling interests | 1.2 | 0.8 | 0.9 | 50 | % | 33 | % | 3.0 | 2.9 | 3 | % | ||||||||||||||
Net Income attributable to Minerals Technologies Inc. (MTI) | $ | 41.7 | $ | 43.0 | $ | 41.6 | (3 | )% | 0 | % | $ | 119.3 | $ | 96.7 | 23 | % | |||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||||
Basic | 35.3 | 35.1 | 34.9 | 35.1 | 34.8 | ||||||||||||||||||||
Diluted | 35.6 | 35.6 | 35.3 | 35.6 | 35.1 | ||||||||||||||||||||
Earnings per share attributable to MTI: | |||||||||||||||||||||||||
Basic | $ | 1.18 | $ | 1.23 | $ | 1.19 | (4 | )% | (1 | )% | $ | 3.40 | $ | 2.78 | 22 | % | |||||||||
Diluted | $ | 1.17 | $ | 1.21 | $ | 1.18 | (3 | )% | (1 | )% | $ | 3.35 | $ | 2.75 | 22 | % | |||||||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0.15 | |||||||||||||||
* Percentage not meaningful | |||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | ||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||
1 | ) | For comparative purposes, the quarterly periods ended October 1, 2017, July 2, 2017 and October 2, 2016 each consisted of 91 days. The nine month periods ended October 1, 2017 and October 2, 2016 consisted of 274 days and 276 days, respectively. | ||||||||||||||||||||
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 2017, in order to generate greater alignment, speed decision making and accelerate growth, the Company reorganized the management structure for its Performance Materials and Construction Technologies business segments to better reflect the way performance is evaluated and resources are allocated. As a result, all of the product lines within these business segments were combined into one operating segment. Presented below are the restated financial results, by product line, for each of the quarters of 2016 of this operating segment to conform to the current management structure. | ||||||||||||||||||||
Full Year | ||||||||||||||||||||||
(millions of dollars) | Quarter Ended | Ended | ||||||||||||||||||||
Apr. 3, | Jul. 3, | Sep. 27, | Dec. 31, | Dec. 31, | ||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||||
Sales | ||||||||||||||||||||||
Metalcasting | $ | 60.0 | $ | 68.0 | $ | 63.1 | $ | 66.9 | $ | 258.0 | ||||||||||||
Household, Personal Care & Specialty Products | 45.3 | 44.0 | 42.1 | 39.8 | 171.2 | |||||||||||||||||
Environmental products | 13.4 | 26.5 | 24.6 | 14.4 | 78.9 | |||||||||||||||||
Building Materials | 20.4 | 19.7 | 16.9 | 17.1 | 74.1 | |||||||||||||||||
Basic Minerals | 20.5 | 24.3 | 22.3 | 36.8 | 103.9 | |||||||||||||||||
Performance Materials Segment | $ | 159.6 | $ | 182.5 | $ | 169.0 | $ | 175.0 | $ | 686.1 | ||||||||||||
Operating Income | ||||||||||||||||||||||
Performance Materials Segment | $ | 28.2 | $ | 33.3 | $ | 30.2 | $ | 29.4 | $ | 121.1 | ||||||||||||
% of Sales | 17.7 | % | 18.2 | % | 17.9 | % | 16.8 | % | 17.7 | % | ||||||||||||
3 | ) | During the second quarter of 2016, the Company incurred restructuring charges related to lease termination costs, inventory writeoffs and impairment of assets relating to its exit from the U.S. on-shore service lines, including Nitrogen and Pipeline within the Energy Services segment as a result of the significant reduction in oil prices and overcapacity in the onshore oil services market. During 2017, the Company recorded additional restructuring costs related to exited businesses in the Energy Services segment. | ||||||||||||||||||||
(millions of dollars) | Quarter Ended | Nine Months Ended | ||||||||||||||||||||
Oct. 1, | Jul. 2, | Oct. 2, | Oct. 1, | Oct. 2, | ||||||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Impairment of assets | ||||||||||||||||||||||
Energy Services | $ | 0.0 | 0.0 | $ | 0.0 | $ | 0.0 | $ | 18.5 | |||||||||||||
Restructuring and other costs | ||||||||||||||||||||||
Gain on sale of assets | $ | (0.9 | ) | 0.0 | $ | (2.9 | ) | $ | (0.9 | ) | $ | (2.9 | ) | |||||||||
Lease termination, severance | ||||||||||||||||||||||
and other related costs | 1.3 | 0.2 | 0.6 | 1.8 | 11.8 | |||||||||||||||||
$ | 0.4 | 0.2 | (2.3 | ) | $ | 0.9 | $ | 8.9 | ||||||||||||||
Total restructuring and other items, net | $ | 0.4 | $ | 0.2 | $ | (2.3 | ) | $ | 0.9 | $ | 27.4 | |||||||||||
4 | ) | 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 October 1, 2017, July 2, 2017 and October 2, 2016 and the nine month periods ended October 1, 2017 and October 2, 2016 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 feels 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 | Nine Months Ended | ||||||||||||||||||||
Oct. 1, | Jul. 2, | Oct. 2, | Oct. 1, | Oct. 2, | ||||||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Income from continuing operations attributable to MTI | $ | 41.7 | $ | 43.0 | $ | 41.6 | $ | 119.3 | $ | 96.7 | ||||||||||||
% of sales | 9.8 | % | 10.4 | % | 10.4 | % | 9.6 | % | 7.8 | % | ||||||||||||
Special items: | ||||||||||||||||||||||
Acquisition related transaction and integration costs | 0.5 | 0.8 | 1.9 | 2.8 | 5.1 | |||||||||||||||||
Debt modification costs and fees | 0.0 | 0.0 | 0.0 | 3.9 | 0.0 | |||||||||||||||||
Restructuring and other items, net | 0.4 | 0.2 | (2.3 | ) | 0.9 | 8.9 | ||||||||||||||||
Impairment of assets | 0.0 | 0.0 | 0.0 | 0.0 | 18.5 | |||||||||||||||||
Related tax effects on special items | (0.3 | ) | (0.4 | ) | 0.1 | (2.9 | ) | (10.2 | ) | |||||||||||||
Income from continuing operations attributable to MTI, excluding special items | $ | 42.3 | $ | 43.6 | $ | 41.3 | $ | 124.0 | $ | 119.0 | ||||||||||||
% of sales | 10.0 | % | 10.5 | % | 10.3 | % | 10.0 | % | 9.6 | % | ||||||||||||
Diluted earnings per share, excluding special items | $ | 1.19 | $ | 1.23 | $ | 1.17 | $ | 3.48 | $ | 3.39 | ||||||||||||
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 October 1, 2017, July 2, 2017 and October 2, 2016 and the nine month periods ended October 1, 2017 and October 2, 2016 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 | Nine Months Ended | |||||||||||||||||||||
(millions of dollars) | Oct. 1, | Jul. 2, | Oct. 2, | Oct. 1, | Oct. 2, | |||||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Cash flow from continuing operations | $ | 73.0 | $ | 61.7 | $ | 62.1 | $ | 150.6 | $ | 164.2 | ||||||||||||
Capital expenditures | 20.7 | 20.0 | 18.0 | 54.2 | 48.9 | |||||||||||||||||
Free cash flow | $ | 52.3 | $ | 41.7 | $ | 44.1 | $ | 96.4 | $ | 115.3 | ||||||||||||
6 | ) | The following table reflects the components of non-operating income and deductions: | ||||||||||||||||||||
(millions of dollars) | Quarter Ended | Nine Months Ended | ||||||||||||||||||||
Oct. 1, | Jul. 2, | Oct. 2, | Oct. 1, | Oct. 2, | ||||||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Interest income | $ | 0.6 | $ | 0.6 | $ | 0.5 | $ | 1.6 | $ | 1.5 | ||||||||||||
Interest expense | (11.1 | ) | (10.8 | ) | (13.9 | ) | (34.1 | ) | (42.9 | ) | ||||||||||||
Debt extinguishment costs and fees | 0.0 | 0.0 | 0.0 | (3.9 | ) | 0.0 | ||||||||||||||||
Foreign exchange gains | (0.2 | ) | 0.0 | 0.8 | 0.4 | 4.9 | ||||||||||||||||
Other deductions | (1.5 | ) | (1.2 | ) | (1.4 | ) | (3.8 | ) | (3.2 | ) | ||||||||||||
Non-operating deductions, net | $ | (12.2 | ) | $ | (11.4 | ) | $ | (14.0 | ) | $ | (39.8 | ) | $ | (39.7 | ) | |||||||
7 | ) | The analyst conference call to discuss operating results for the third quarter is scheduled for Friday, November 3, 2017 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 | Nine Months Ended | % Growth | |||||||||||||||||||||||||||||
SALES DATA | Oct. 1, | % of | Jul. 2, | % of | Oct. 2, | % of | Oct. 1, | % of | Oct. 2, | % of | ||||||||||||||||||||||
2017 | Total Sales | 2017 | Total Sales | 2016 | Total Sales | Prior Qtr | Prior Year | 2017 | Total Sales | 2016 | Total Sales | Prior Year | ||||||||||||||||||||
United States | $ | 243.6 | 57 | % | $ | 237.2 | 57 | % | $ | 229.0 | 57 | % | 3 | % | 6 | % | $ | 705.1 | 57 | % | $ | 718.7 | 58 | % | (2 | )% | ||||||
International | 180.8 | 43 | % | 176.9 | 43 | % | 170.5 | 43 | % | 2 | % | 6 | % | 538.4 | 43 | % | 518.0 | 42 | % | 4 | % | |||||||||||
Net Sales | $ | 424.4 | 100 | % | $ | 414.1 | 100 | % | $ | 399.5 | 100 | % | 2 | % | 6 | % | $ | 1,243.5 | 100 | % | $ | 1,236.7 | 100 | % | 1 | % | ||||||
Paper PCC | $ | 96.3 | 23 | % | $ | 92.3 | 22 | % | $ | 95.3 | 24 | % | 4 | % | 1 | % | $ | 282.0 | 23 | % | $ | 295.5 | 24 | % | (5 | )% | ||||||
Specialty PCC | 16.4 | 4 | % | 17.4 | 4 | % | 16.4 | 4 | % | (6 | )% | 0 | % | 50.8 | 4 | % | 50.2 | 4 | % | 1 | % | |||||||||||
PCC Products | $ | 112.7 | 27 | % | $ | 109.7 | 26 | % | $ | 111.7 | 28 | % | 3 | % | 1 | % | $ | 332.8 | 27 | % | $ | 345.7 | 28 | % | (4 | )% | ||||||
Talc | $ | 12.7 | 3 | % | $ | 14.0 | 3 | % | $ | 13.9 | 3 | % | (9 | )% | (9 | )% | $ | 41.0 | 3 | % | $ | 42.7 | 3 | % | (4 | )% | ||||||
Ground Calcium Carbonate | 22.3 | 5 | % | 23.3 | 6 | % | 21.7 | 5 | % | (4 | )% | 3 | % | 67.1 | 5 | % | 65.1 | 5 | % | 3 | % | |||||||||||
Processed Minerals Products | $ | 35.0 | 8 | % | $ | 37.3 | 9 | % | $ | 35.6 | 9 | % | (6 | )% | (2 | )% | $ | 108.1 | 9 | % | $ | 107.8 | 9 | % | 0 | % | ||||||
Specialty Minerals Segment | $ | 147.7 | 35 | % | 147.0 | 35 | % | 147.3 | 37 | % | 0 | % | 0 | % | 440.9 | 35 | % | 453.5 | 37 | % | (3 | )% | ||||||||||
Metalcasting | $ | 73.6 | 17 | % | $ | 75.7 | 18 | % | $ | 63.1 | 16 | % | (3 | )% | 17 | % | $ | 215.9 | 17 | % | $ | 191.1 | 15 | % | 13 | % | ||||||
Household, Personal Care & Specialty Products | 42.5 | 10 | % | 39.7 | 10 | % | 42.1 | 11 | % | 7 | % | 1 | % | 123.3 | 10 | % | 131.4 | 11 | % | (6 | )% | |||||||||||
Environmental products | 21.6 | 5 | % | 19.6 | 5 | % | 24.6 | 6 | % | 10 | % | (12 | )% | 51.8 | 4 | % | 64.5 | 5 | % | (20 | )% | |||||||||||
Building Materials | 19.9 | 5 | % | 20.2 | 5 | % | 16.9 | 4 | % | (1 | )% | 18 | % | 57.5 | 5 | % | 57.0 | 5 | % | 1 | % | |||||||||||
Basic Minerals | 31.2 | 7 | % | 25.1 | 6 | % | 22.3 | 6 | % | 24 | % | 40 | % | 90.5 | 7 | % | 67.1 | 5 | % | 35 | % | |||||||||||
Performance Materials Segment | $ | 188.8 | 44 | % | $ | 180.3 | 44 | % | $ | 169.0 | 42 | % | 5 | % | 12 | % | $ | 539.0 | 43 | % | $ | 511.1 | 41 | % | 5 | % | ||||||
Total Minerals Businesses | $ | 336.5 | 79 | % | $ | 327.3 | 79 | % | $ | 316.3 | 79 | % | 3 | % | 6 | % | $ | 979.9 | 79 | % | $ | 964.6 | 78 | % | 2 | % | ||||||
Refractory products | $ | 56.6 | 13 | % | $ | 56.1 | 14 | % | $ | 51.0 | 13 | % | 1 | % | 11 | % | $ | 169.4 | 14 | % | $ | 163.3 | 13 | % | 4 | % | ||||||
Metallurgical Products | 12.3 | 3 | % | 12.8 | 3 | % | 12.4 | 3 | % | (4 | )% | (1 | )% | 38.6 | 3 | % | 43.2 | 3 | % | (11 | )% | |||||||||||
Refractories Segment | $ | 68.9 | 16 | % | $ | 68.9 | 17 | % | 63.4 | 16 | % | 0 | % | 9 | % | 208.0 | 17 | % | 206.5 | 17 | % | 1 | % | |||||||||
Energy Services Segment | $ | 19.0 | 4 | % | $ | 17.9 | 4 | % | $ | 19.8 | 5 | % | 6 | % | (4 | )% | $ | 55.6 | 4 | % | $ | 65.6 | 5 | % | (15 | )% | ||||||
Total Service Businesses | $ | 87.9 | 21 | % | $ | 86.8 | 21 | % | $ | 83.2 | 21 | % | 1 | % | 6 | % | $ | 263.6 | 21 | % | $ | 272.1 | 22 | % | (3 | )% | ||||||
Net Sales | $ | 424.4 | 100 | % | $ | 414.1 | 100 | % | $ | 399.5 | 100 | % | 2 | % | 6 | % | $ | 1,243.5 | 100 | % | $ | 1,236.7 | 100 | % | 1 | % | ||||||
SUPPLEMENTARY DATA | |||||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | |||||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||
Quarter Ended | % Growth | Nine Months Ended | % Growth | ||||||||||||||||||||||||
Oct. 1, | Jul. 2, | Oct. 2, | Oct. 1, | Oct. 2, | |||||||||||||||||||||||
SEGMENT OPERATING INCOME DATA | 2017 | 2017 | 2016 | Prior Qtr | Prior Year | 2017 | 2016 | Prior Year | |||||||||||||||||||
Specialty Minerals Segment | $ | 26.6 | $ | 26.9 | $ | 27.8 | (1 | )% | (4 | )% | $ | 77.9 | $ | 81.1 | (4 | )% | |||||||||||
% of Sales | 18.0 | % | 18.3 | % | 18.9 | % | 17.7 | % | 17.9 | % | |||||||||||||||||
Performance Materials Segment | $ | 30.6 | $ | 32.2 | $ | 30.2 | (5 | )% | 1 | % | $ | 91.6 | $ | 91.7 | (0 | )% | |||||||||||
% of Sales | 16.2 | % | 17.9 | % | 17.9 | % | 17.0 | % | 17.9 | % | |||||||||||||||||
Total Minerals Businesses | $ | 57.2 | $ | 59.1 | $ | 58.0 | (3 | )% | (1 | )% | $ | 169.5 | $ | 172.8 | (2 | )% | |||||||||||
% of Sales | 17.0 | % | 18.1 | % | 18.3 | % | 17.3 | % | 17.9 | % | |||||||||||||||||
Refractories Segment | $ | 9.9 | $ | 10.5 | $ | 10.1 | (6 | )% | (2 | )% | $ | 29.6 | $ | 27.2 | 9 | % | |||||||||||
% of Sales | 14.4 | % | 15.2 | % | 15.9 | % | 14.2 | % | 13.2 | % | |||||||||||||||||
Energy Services Segment | $ | 2.3 | $ | 0.8 | $ | 2.6 | 188 | % | (12 | )% | $ | 4.8 | $ | (27.0 | ) | * | |||||||||||
% of Sales | 12.1 | % | 4.5 | % | 13.1 | % | 8.6 | % | -41.2 | % | |||||||||||||||||
Total Service Businesses | $ | 12.2 | $ | 11.3 | $ | 12.7 | 8 | % | (4 | )% | $ | 34.4 | $ | 0.2 | * | ||||||||||||
% of Sales | 13.9 | % | 13.0 | % | 15.3 | % | 13.1 | % | 0.1 | % | |||||||||||||||||
Unallocated Corporate Expenses | $ | (2.1 | ) | $ | (1.1 | ) | $ | (1.5 | ) | 91 | % | 40 | % | $ | (4.1 | ) | $ | (3.5 | ) | 17 | % | ||||||
Acquisition related transaction costs | $ | (0.5 | ) | $ | (0.8 | ) | $ | (1.9 | ) | (38 | )% | (74 | )% | $ | (2.8 | ) | $ | (5.1 | ) | (45 | )% | ||||||
Consolidated | $ | 66.8 | $ | 68.5 | $ | 67.3 | (2 | )% | (1 | )% | $ | 197.0 | $ | 164.4 | 20 | % | |||||||||||
% of Sales | 15.7 | % | 16.5 | % | 16.8 | % | 15.8 | % | 13.3 | % | |||||||||||||||||
SPECIAL ITEMS | |||||||||||||||||||||||||||
Specialty Minerals Segment | $ | 0.0 | $ | 0.0 | $ | 0.0 | * | * | $ | 0.0 | $ | 0.0 | * | ||||||||||||||
Performance Materials Segment | $ | 0.0 | $ | 0.0 | $ | 0.0 | * | * | $ | 0.0 | $ | 0.0 | * | ||||||||||||||
Total Minerals Businesses | $ | 0.0 | $ | 0.0 | $ | 0.0 | * | * | $ | 0.0 | $ | 0.0 | * | ||||||||||||||
Refractories Segment | $ | 0.0 | $ | 0.0 | $ | (2.1 | ) | * | * | $ | 0.0 | $ | (2.0 | ) | * | ||||||||||||
Energy Services Segment | $ | (0.7 | ) | $ | 0.2 | $ | (0.2 | ) | (450 | )% | * | $ | (0.2 | ) | $ | 29.4 | * | ||||||||||
Total Service Businesses | $ | (0.7 | ) | $ | 0.2 | $ | (2.3 | ) | (450 | )% | * | $ | (0.2 | ) | $ | 27.4 | * | ||||||||||
Unallocated and Other Corporate Expenses | $ | 1.1 | $ | 0.0 | $ | 0.0 | * | * | $ | 1.1 | $ | 0.0 | * | ||||||||||||||
Acquisition related transaction costs | $ | 0.5 | $ | 0.8 | $ | 1.9 | (38 | )% | (74 | )% | $ | 2.8 | $ | 5.1 | (45 | )% | |||||||||||
Consolidated | $ | 0.9 | $ | 1.0 | $ | (0.4 | ) | (10 | )% | * | $ | 3.7 | $ | 32.5 | * | ||||||||||||
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 October 1, 2017, July 2, 2017 and October 1, 2016, and the nine month periods ended October 1, 2017 and October 2, 2016 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 feels inclusion of these non-GAAP measures also provides consistency in its financial reporting and facilitates investors' understanding of historic operating trends. | |||||||||||||||||||||||||||
Quarter Ended | % Growth | Nine Months Ended | % Growth | ||||||||||||||||||||||||
SEGMENT OPERATING INCOME, | Oct. 1, | Jul. 2, | Oct. 2, | Oct. 1, | Oct. 2, | ||||||||||||||||||||||
EXCLUDING SPECIAL ITEMS | 2017 | 2017 | 2016 | Prior Qtr | Prior Year | 2017 | 2016 | Prior Year | |||||||||||||||||||
Specialty Minerals Segment | $ | 26.6 | $ | 26.9 | $ | 27.8 | (1 | )% | (4 | )% | $ | 77.9 | $ | 81.1 | (4 | )% | |||||||||||
% of Sales | 18.0 | % | 18.3 | % | 18.9 | % | 17.7 | % | 17.9 | % | |||||||||||||||||
Performance Materials Segment | $ | 30.6 | $ | 32.2 | $ | 30.2 | (5 | )% | 1 | % | $ | 91.6 | $ | 91.7 | (0 | )% | |||||||||||
% of Sales | 16.2 | % | 17.9 | % | 17.9 | % | 17.0 | % | 17.9 | % | |||||||||||||||||
Total Minerals Businesses | $ | 57.2 | $ | 59.1 | $ | 58.0 | (3 | )% | (1 | )% | $ | 169.5 | $ | 172.8 | (2 | )% | |||||||||||
% of Sales | 17.0 | % | 18.1 | % | 18.3 | % | 17.3 | % | 17.9 | % | |||||||||||||||||
Refractories Segment | $ | 9.9 | $ | 10.5 | $ | 8.0 | (6 | )% | 24 | % | $ | 29.6 | $ | 25.2 | 17 | % | |||||||||||
% of Sales | 14.4 | % | 15.2 | % | 12.6 | % | 14.2 | % | 12.2 | % | |||||||||||||||||
Energy Services Segment | $ | 1.6 | $ | 1.0 | $ | 2.4 | 60 | % | * | $ | 4.6 | $ | 2.4 | * | |||||||||||||
% of Sales | 8.4 | % | 5.6 | % | 12.1 | % | 8.3 | % | 3.7 | % | |||||||||||||||||
Total Service Businesses | $ | 11.5 | $ | 11.5 | $ | 10.4 | 0 | % | 11 | % | $ | 34.2 | $ | 27.6 | 24 | % | |||||||||||
% of Sales | 13.1 | % | 13.2 | % | 12.5 | % | 13.0 | % | 10.1 | % | |||||||||||||||||
Unallocated Corporate Expenses | $ | (1.0 | ) | $ | (1.1 | ) | $ | (1.5 | ) | (9 | )% | (33 | )% | $ | (3.0 | ) | $ | (3.5 | ) | (14 | )% | ||||||
Consolidated | $ | 67.7 | $ | 69.5 | $ | 66.9 | (3 | )% | 1 | % | $ | 200.7 | $ | 196.9 | 2 | % | |||||||||||
% of Sales | 16.0 | % | 16.8 | % | 16.7 | % | 16.1 | % | 15.9 | % | |||||||||||||||||
* Percentage not meaningful | |||||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
ASSETS | ||||||
(In Millions of Dollars) | ||||||
October 1, | December 31, | |||||
2017* | 2016** | |||||
Current assets: | ||||||
Cash & cash equivalents | $ | 211.7 | $ | 188.5 | ||
Short-term investments | 2.8 | 2.0 | ||||
Accounts receivable, net | 389.1 | 341.3 | ||||
Inventories | 221.2 | 186.9 | ||||
Prepaid expenses and other current assets | 36.0 | 32.4 | ||||
Total current assets | 860.8 | 751.1 | ||||
Property, plant and equipment | 2,189.1 | 2,141.4 | ||||
Less accumulated depreciation | 1,130.0 | 1,089.6 | ||||
Net property, plant & equipment | 1,059.1 | 1,051.8 | ||||
Goodwill | 779.6 | 778.7 | ||||
Intangible assets | 198.4 | 204.4 | ||||
Other assets and deferred charges | 85.5 | 77.4 | ||||
Total assets | $ | 2,983.4 | $ | 2,863.4 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Short-term debt | $ | 6.2 | $ | 6.1 | ||
Current maturities of long-term debt | 6.5 | 6.8 | ||||
Accounts payable | 181.0 | 144.9 | ||||
Other current liabilities | 130.0 | 137.7 | ||||
Total current liabilities | 323.7 | 295.5 | ||||
Long-term debt | 990.2 | 1,069.9 | ||||
Deferred income taxes | 247.8 | 238.8 | ||||
Other non-current liabilities | 219.4 | 228.3 | ||||
Total liabilities | 1,781.1 | 1,832.5 | ||||
Total MTI shareholders' equity | 1,176.3 | 1,006.5 | ||||
Non-controlling Interest | 26.0 | 24.4 | ||||
Total shareholders' equity | 1,202.3 | 1,030.9 | ||||
Total liabilities and shareholders' equity | $ | 2,983.4 | $ | 2,863.4 | ||
* Unaudited | ||||||
** Condensed from audited financial statements. | ||||||
Contact:Cindi Buckwalter (212) 878-1831