UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
To Section 13 OR 15(d) of The Securities Exchange Act of 1934
|
Date
of Report (Date of earliest event reported): February 4,
2010
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MINERALS
TECHNOLOGIES INC.
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(Exact
name of registrant as specified in its charter)
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Delaware
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1-11430
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25-1190717
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(State
or other jurisdiction
of
incorporation)
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(Commission
File
Number)
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(IRS
Employer
Identification
No.)
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405
Lexington Avenue, New York, NY
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10174-0002
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(Address
of principal executive offices)
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(Zip
Code)
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| (212) 878-1800 | ||
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(Registrant's
telephone number, including area
code)
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||
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Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions.
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[ ]
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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[ ]
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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[ ]
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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[ ]
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17
CFR 240.13e-4(c))
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Item
2.02
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Results
of Operations and Financial Condition.
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|||
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On
February 4, 2010 Minerals Technologies Inc. issued a press release
regarding its financial performance for the fourth quarter of 2009 and the
declaration of a regular quarterly dividend of $0.05 per share on its
common stock. A copy of the press release is attached hereto as Exhibit
99.1 and incorporated by reference herein.
The
information in this Item 2.02 and Exhibit 99.1 shall not be deemed filed
for the purposes of Section 18 of the Securities and Exchange Act of 1934,
as amended, or incorporated by reference in any filing under the
Securities Act of 1933, as amended, except as shall be expressly set forth
by specific reference in such filing.
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Item
9.01
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Financial
Statements and Exhibits.
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(c)
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Exhibits
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99.1
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Press
Release dated February 4, 2010
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SIGNATURES
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Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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MINERALS
TECHNOLOGIES INC.
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(Registrant)
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|||
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By:
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/s/ Thomas J. Meek | ||
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Name:
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Thomas
J. Meek
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||
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Title:
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Vice
President, General Counsel and Secretary
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||
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Date: February
4, 2010
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MINERALS
TECHNOLOGIES INC.
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||
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EXHIBIT
INDEX
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||
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Exhibit No.
__________
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Subject
Matter
____________________________________________________________
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99.1
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Press
Release dated February 4, 2010
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EXHIBIT 99.1
News|
For
Immediate Release
|
Contact:
|
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February
4, 2010
|
Rick
B. Honey
|
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(212)
878-1831
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MINERALS
TECHNOLOGIES’ FOURTH QUARTER
DILUTED
EARNINGS PER SHARE WERE $0.62, EXCLUDING SPECIAL ITEMS;
REPORTED
EARNINGS WERE $0.22 PER SHARE
----------
Company
Records Sales of $256.2 Million, a 9-Percent Sequential Increase
----------
Board
Declares Regular Quarterly Dividend of $0.05 per Share
----------
Highlights:
|
·
|
Refractories
segment returns to profitability
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—Increased steel production in major
markets
—Execution of restructuring program on
track
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·
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Strong
Cash Flow from Operations
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— $45 million for the quarter; $161
million for full year 2009
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·
|
PCC
sales up 6 percent sequentially
|
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·
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Satellite
PCC plant started up in India
|
|
·
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Productivity
improvements in all businesses
|
NEW YORK,
February 4—Minerals Technologies Inc. (NYSE: MTX) today reported net
income of $4.1 million, or $0.22 per share, for the fourth quarter 2009,
compared with $8.9 million, or $0.47 per share in the third quarter of 2009.
Earnings per share, excluding restructuring and impairment charges, were $0.62
compared to $0.53 per share in the third quarter.
“In the fourth quarter of 2009, we saw
improved financial results over the third quarter on increased sales in our
precipitated calcium carbonate (PCC) and Refractories businesses,” said Joseph
C. Muscari, chairman and chief executive officer. “In addition, the
restructuring program we announced in July is on track to provide annualized
savings of between $16 million and $20 million upon completion; and, we continue
to improve our productivity, which better positions us for increased
profitability.”
Sequential
Comparison
The
company's worldwide sales in the fourth quarter increased 9 percent to $256.2
million from $234.3 million in the third quarter. Excluding special items,
income from operations was $17.3 million, a 22-percent increase over the $14.2
million recorded in the prior quarter. This growth was attributable to the
significant improvement in the Refractories segment as a result of volume
increases related to improved steel industry conditions, and to the benefits
from the restructuring program. Income from operations, as reported, was
$4.5 million compared to $12.8 million in the prior quarter.
The
Specialty Minerals segment's worldwide sales in the fourth quarter increased 5
percent to $170.3 million compared to $162.5 million in the prior quarter.
Income from operations, excluding special items, decreased 4 percent to $15.1
million compared with $15.8 million in the third quarter. The Processed Minerals
product line was affected by volume declines as a result of the seasonal
downturn of the construction industry, which was, however, less severe than
anticipated.
Worldwide sales of PCC, which is used
primarily in the manufacturing processes of the paper industry, were $146.3
million, a 6-percent increase over the $137.5 million recorded in the third
quarter. This growth was primarily attributable to increased volumes in all
regions. Worldwide unit volumes of Paper PCC were up approximately 5 percent
from the third quarter.
During the fourth quarter, Minerals
Technologies completed construction and started operation of a satellite PCC
facility in the state of Maharashtra, India, that provides PCC to a paper mill
owned by Ballarpur Industries Limited (BILT). The company also recently
announced that it had entered into a long-term agreement with NewPage
Corporation to supply 70,000 tons per year of precipitated calcium carbonate
(PCC) for filling supercalendered paper at the NewPage Duluth, Minnesota, paper
mill. The company will construct a PCC production facility in Superior,
Wisconsin, that will be built on a site owned by Graymont WI, a lime supplier,
and is expected to be in operation in the second quarter of 2011.
In the company’s Refractories segment,
sales for the fourth quarter were $85.9 million, a 20-percent increase over the
$71.8 million recorded in the third quarter. Excluding special items, the
segment recorded operating income of $3.3 million compared to an operating loss
of $1.1 million in the third quarter.
Sales of refractory products and
systems, used primarily in the steel market, increased 21 percent
in the fourth quarter to $68.5 million from $56.8 million in the third quarter
of 2009. This increase was attributable to improved production rates in the
worldwide steel industry, which resulted in 15 percent higher volumes in
refractory products, and to additional equipment sales. Sales in the
metallurgical product line increased 16 percent sequentially to $17.4 million
from $15.0 million in the previous quarter due to a favorable product mix in the
calcium cored wire product line.
Year-Over-Year
Comparisons
Fourth
Quarter
The
company's fourth quarter net income of $4.1 million or $0.22 per share compares
with $5.7 million, or $0.31 per share, in the fourth quarter of 2008. Earnings
per share, excluding special items, were $0.62 compared to $0.41 per share in
the prior year, a 51-percent improvement.
This
increase is primarily attributable to the improvements in the company’s end
markets when compared to the dramatic downturn that occurred in the steel,
paper, construction and automotive industries in the latter part of the fourth
quarter of 2008, when the U.S. steel industry, for example, saw production drop
by 50 percent over the third quarter of the same year.
Fourth quarter worldwide sales
increased 7 percent to $256.2 million from $240.0 million in the same period in
2008 as a result of foreign exchange gains and slight volume increases in all
product lines. Foreign exchange had a favorable impact on sales of approximately
$11.0 million or 5 percentage points. Excluding special items, operating income
of $17.3 million increased 84 percent from the $9.4 million recorded in the
fourth quarter of 2008. As reported, income from operations was $4.5 million
compared to $3.1 million in the prior year.
Fourth quarter worldwide sales for the
Specialty Minerals segment increased 7 percent to $170.3 million from $159.8
million recorded in the same quarter of 2008 due to the favorable impact of
foreign exchange and to volume increases in both product lines. Foreign exchange
had a favorable impact on sales of approximately $6.1 million, or 4 percentage
points. Excluding special items, income from operations increased 80 percent to
$15.1 million from $8.4 million the same period in 2008. This increase was
attributable to volume increases, to the contractual recovery of the raw
material cost increases and to the benefits from the restructuring.
PCC sales increased 6 percent to $146.3
million from the $137.4 million recorded in the fourth
quarter of 2008 on a volume increase of about 1 percent and the favorable impact
of foreign exchange. Processed Minerals products fourth quarter sales increased
7 percent to $24.0 million from $22.4 million in the same period of 2008 on
volume increases of 5 percent.
Refractories segment sales in the
fourth quarter of 2009 increased 7 percent to $85.9 million from the $80.2
million recorded in the same period in 2008. Refractory volumes increased 2
percent from the fourth quarter of 2008. Metallurgical products sales increased
16 percent to $17.4 million from $15.0 million recorded in the prior year due to
a 22-percent increase in volume. The Refractory segment recorded operating
income of $3.3 million, excluding special items, compared to operating income of
$1.6 million in the fourth quarter of 2008. This increase was primarily
attributable to the benefits of the restructuring program and to improved market
conditions.
Full-Year
Results
The
company recorded a net loss of $23.8 million for the full year 2009 compared to
net income of $65.3 million for 2008. The loss per share for the full year 2009
was $1.27 compared to earnings of $3.44 per share for 2008. Excluding special
items, earnings were $1.55 per share as compared with $3.44 per share in the
prior year.
Minerals Technologies' worldwide sales
for the full year 2009 were $907.3 million compared to $1,112.2 million in 2008,
an 18 percent decline. Operating income, excluding special items, for the full
year decreased 53 percent to $44.8 million compared to $95.6 million recorded in
2008. The company reported a loss from operations of $17.1 million in 2009
compared to income of operations of $82.0 million in 2008.
----------
The company also declared a regular
quarterly dividend of $0.05 per share on its common stock. The dividend is
payable on March 17, 2010 to shareholders of record on February 26,
2010.
----------
Minerals
Technologies has scheduled an analyst conference call for Friday, February 5,
2010 at 11:00 a.m. to discuss operating results for the fourth quarter. The
conference call will be broadcast over the company’s website,
www.mineralstech.com.
####
----------
This
press release may contain forward-looking statements, which describe or are
based on current expectations; in particular, statements of anticipated changes
in the business environment in which the company operates and in the company’s
future operating results. 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 2008 Annual Report on Form 10-K and in our other
reports filed with the Securities and Exchange Commission.
####
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CONSOLIDATED
STATEMENTS OF OPERATIONS
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||||||||||||||||||||||||||||||||
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MINERALS
TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
||||||||||||||||||||||||||||||||
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(in
thousands, except per share data)
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||||||||||||||||||||||||||||||||
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(unaudited)
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||||||||||||||||||||||||||||||||
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Quarter
Ended
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%
Growth
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Year Ended
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%
Growth
|
|||||||||||||||||||||||||||||
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Dec
31,
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Sept
27,
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Dec
31,
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Dec
31,
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Dec
31,
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||||||||||||||||||||||||||||
|
2009
|
2009
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2008
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Prior Year
|
Prior Qtr.
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2009
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2008
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Prior Year
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|||||||||||||||||||||||||
|
Net
sales
|
$ | 256,208 | $ | 234,256 | $ | 239,981 | 7 | % | 9 | % | $ | 907,321 | $ | 1,112,212 | (18 | )% | ||||||||||||||||
|
Cost
of goods sold
|
210,030 | 190,266 | 201,959 | 4 | % | 10 | % | 751,503 | 891,738 | (16 | )% | |||||||||||||||||||||
|
Production
margin
|
46,178 | 43,990 | 38,022 | 21 | % | 5 | % | 155,818 | 220,474 | (29 | )% | |||||||||||||||||||||
|
Marketing and
administrative expenses
|
23,355 | 24,583 | 23,218 | 1 | % | (5 | )% | 91,075 | 101,857 | (11 | )% | |||||||||||||||||||||
|
Research
and development expenses
|
5,569 | 5,147 | 5,485 | 2 | % | 8 | % | 19,941 | 23,052 | (13 | )% | |||||||||||||||||||||
|
Impairment
of assets
|
2,315 | 0 | 209 | * | * | 39,831 | 209 | * | ||||||||||||||||||||||||
|
Restructuring
and other charges
|
10,479 | 1,443 | 6,021 | 74 | % | 626 | % | 22,024 | 13,365 | 65 | % | |||||||||||||||||||||
|
Income
(loss) from operations
|
4,460 | 12,817 | 3,089 | 44 | % | (65 | )% | (17,053 | ) | 81,991 | * | |||||||||||||||||||||
|
Non-operating
income (deductions) - net
|
(1,588 | ) | (709 | ) | 2,229 | * | 124 | % | (6,087 | ) | 276 | * | ||||||||||||||||||||
|
Income
(loss) from continuing operations, before tax
|
2,872 | 12,108 | 5,318 | (46 | )% | (76 | )% | (23,140 | ) | 82,267 | * | |||||||||||||||||||||
|
Provision
for taxes on income
|
(1,281 | ) | 2,574 | 1,152 | * | * | (5,387 | ) | 24,079 | * | ||||||||||||||||||||||
|
Income
(loss) from continuing operations, net of tax
|
4,153 | 9,534 | 4,166 | (0 | )% | (56 | )% | (17,753 | ) | 58,188 | * | |||||||||||||||||||||
|
Income
(loss) from discontinued operations, net of tax
|
182 | 279 | 2,309 | (92 | )% | (35 | )% | (3,151 | ) | 10,282 | * | |||||||||||||||||||||
|
Consolidated
net income (loss)
|
4,335 | 9,813 | 6,475 | (33 | )% | (56 | )% | (20,904 | ) | 68,470 | * | |||||||||||||||||||||
|
Less:
Net income attributable to non-controlling interests
|
(281 | ) | (913 | ) | (738 | ) | (62 | )% | (69 | )% | (2,892 | ) | (3,183 | ) | (9 | )% | ||||||||||||||||
|
Net
Income (loss) attributable to Minerals Technologies
Inc. (MTI)
|
$ | 4,054 | $ | 8,900 | $ | 5,737 | (29 | )% | (54 | )% | $ | (23,796 | ) | $ | 65,287 | * | ||||||||||||||||
|
Weighted
average number of common shares outstanding:
|
||||||||||||||||||||||||||||||||
|
Basic
|
18,734 | 18,730 | 18,710 | 18,724 | 18,893 | |||||||||||||||||||||||||||
|
Diluted
|
18,842 | 18,786 | 18,756 | 18,724 | 18,983 | |||||||||||||||||||||||||||
|
Earnings
per share:
|
||||||||||||||||||||||||||||||||
|
Basic:
|
||||||||||||||||||||||||||||||||
|
Income
(loss) from continuing operations attributable to MTI
|
$ | 0.21 | $ | 0.46 | $ | 0.19 | 11 | % | (54 | )% | $ | (1.10 | ) | $ | 2.91 | * | ||||||||||||||||
|
Income
(loss) from discontinued operations attributable to MTI
|
0.01 | 0.01 | 0.12 | (92 | )% | 0 | % | (0.17 | ) | 0.54 | * | |||||||||||||||||||||
|
Net
income (loss) attributable to MTI common shareholders
|
$ | 0.22 | $ | 0.47 | $ | 0.31 | (29 | )% | (53 | )% | $ | (1.27 | ) | $ | 3.45 | * | ||||||||||||||||
|
Diluted:
|
||||||||||||||||||||||||||||||||
|
Income
(loss) from continuing operations attributable to MTI
|
$ | 0.21 | $ | 0.46 | $ | 0.19 | 11 | % | (54 | )% | $ | (1.10 | ) | $ | 2.90 | * | ||||||||||||||||
|
Income
(loss) from discontinued operations attributable to MTI
|
0.01 | 0.01 | 0.12 | (92 | )% | 0 | % | (0.17 | ) | 0.54 | * | |||||||||||||||||||||
|
Net
income (loss) attributable to MTI common
shareholders
|
$ | 0.22 | $ | 0.47 | $ | 0.31 | (29 | )% | (53 | )% | $ | (1.27 | ) | $ | 3.44 | * | ||||||||||||||||
|
Cash
dividends declared per common share
|
$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.20 | $ | 0.20 | ||||||||||||||||||||||
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*
Percentage not meaningful
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||||||||||||||||||||||||||||||||
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MINERALS
TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||||
|
NOTES
TO CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||||||||||||||
|
1)
|
Sales
increased in the United States 2% in the fourth quarter of
2009 as compared with the fourth quarter of
2008. International sales increased 12% in the fourth quarter
2009 as compared with the comparable period of the prior
year. Sequentially,sales increased 2% in the United States and
increased 18% internationally from the third quarter of 2009. Sales for
the full year of 2009 decreased 18% both in the United States and
internationally as compared with the prior year.
|
||||||||||||||
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2)
|
In
the third quarter of 2007, the Company initiated a plan to realign its
business operations to improve profitability and increase shareholder
value. The realignment consisted of exiting certain businesses
and consolidating some product lines to better position the Company for
future success by focusing on the Company’s core
strengths. Major components of this realignment included
exiting certain product lines which are reflected in discontinued
operations, modification of the PCC coating product line from a merchant
business model to a satellite business model, consolidation of certain
manufacturing facilities and the write down of other underutilized assets
worldwide. In addition, as part of this program, the Company
initiated a plan to reduce its workforce by approximately 7 percent to
better control operating expenses and improve
efficiencies. Additional charges were recorded in 2008 and the
first quarter 2009 associated with this realignment.
|
||||||||||||||
|
As
a result of the workforce reduction associated with the restructuring
program and the associated distribution of benefits, included in the
restucturing charges for the three month and twelve month periods ended
December 31, 2008 was a pension settlement loss of $2.1 million
and $6.8 million, respectively, related to the Company's defined benefit
plan in the US. The restructuring charges recorded were as follows
(millions of dollars):
|
|||||||||||||||
|
Three
Months Ended
|
Full
Year
|
||||||||||||||
|
Dec
31,
|
Sept
27,
|
Dec
31,
|
Dec
31,
|
Dec
31,
|
|||||||||||
|
2009
|
2009
|
2008
|
2009
|
2008
|
|||||||||||
|
Restructuring
and other costs
|
|||||||||||||||
|
Severance
and other employee benefits
|
$
|
0.0
|
$
|
(0.1)
|
$
|
0.3
|
$
|
0.0
|
$
|
0.0
|
|||||
|
Pension
settlement costs
|
0.0
|
0.0
|
2.1
|
0.0
|
6.8
|
||||||||||
|
Other
exit costs
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
||||||||||
|
$
|
0.0
|
$
|
(0.1)
|
$
|
2.4
|
$
|
0.0
|
$
|
6.8
|
||||||
|
In
the fourth quarter of 2008, as a result of the worldwide economic
downturn, the Company initiated an additional restructuring program
primarily consisting of severance and other related costs. The reduction
in force represented approximately 340 employees and reflected both
permanent reductions and temporary layoffs. The restructuring charges
recorded were as follows (millions of dollars):
|
|||||||||||||||
|
Three
Months Ended
|
Full
Year
|
||||||||||||||
|
Dec
31,
|
Sept
27,
|
Dec
31,
|
Dec
31,
|
Dec
31,
|
|||||||||||
|
2009
|
2009
|
2008
|
2009
|
2008
|
|||||||||||
|
Restructuring
and other costs
|
|||||||||||||||
|
Severance
and other employee benefits
|
$
|
0.1
|
$
|
(0.2)
|
$
|
3.9
|
$
|
0.9
|
$
|
3.9
|
|||||
|
Other
exit costs
|
0.0
|
0.0
|
0.0
|
0.1
|
0.0
|
||||||||||
|
$
|
0.1
|
$
|
(0.2)
|
$
|
3.9
|
$
|
1.0
|
$
|
3.9
|
||||||
|
3)
|
During
the second quarter of 2009, as a result of the continuation of the severe
downturn in the worldwide steel industry, the Company initiated a
restructuring program, primarily in the Refractories
Segment, to improve efficiencies through consolidation of
manfacturing operations and reduction of costs. This
realignment was put in place to better position ourselves strategically
for improved profitability when the economy recovers. As part of this
program, the Company will consolidate its Old Bridge, NJ operation into
Bryan, Ohio and Baton Rouge, Louisiana in order to improve operational
efficiencies and reduce logistics for key raw materials; rationalize its
North American specialty shapes product line; rationalize some of its
European operations that are deemed non-strategic; record further
impairment charges of its Asian refractory operations as a result
of continued difficulties in market penetration as well as
consideration of
|
||||||||||||||
|
consolidation
of its Asian operations and selection of a regional alliance to aid in
marketing its high value products; recognize impairment charges for
refractory application equipment in North America and Europe due to
customer underutilized assets under depressed volume conditions; recognize
impairment charges for the Company's PCC facility in Millinocket, Maine,
which has been idle since September 2008; and record a restructuring
charge reflecting the severance costs related to plant consolidations as
well as streamlining the management structure to operate more
efficiently.
|
|||||||||||||||
|
The
impairment and restructuring charges recorded in association with this
program are as follows (millions of dollars):
|
|||||||||||||||
|
Three
Months Ended
|
Full
Year
|
||||||||||||||
|
Dec
31,
|
Sept
27,
|
Dec
31,
|
Dec
31,
|
Dec
31,
|
|||||||||||
|
Impairment
of assets:
|
2009
|
2009
|
2008
|
2009
|
2008
|
||||||||||
|
Americas
Refractories:
|
$
|
0.0
|
$
|
0.0
|
$
|
0.0
|
$
|
9.5
|
$
|
0.0
|
|||||
|
Europe
Refractories:
|
0.3
|
0.0
|
0.0
|
11.8
|
0.0
|
||||||||||
|
Asia
Refractories:
|
0.0
|
0.0
|
0.0
|
10.0
|
0.0
|
||||||||||
|
North
America Paper PCC:
|
2.0
|
0.0
|
0.0
|
8.5
|
0.0
|
||||||||||
|
Total
Impairment of assets charge
|
$
|
2.3
|
$
|
0.0
|
$
|
0.0
|
$
|
39.8
|
$
|
0.0
|
|||||
|
Three
Months Ended
|
Full
Year
|
||||||||||||||
|
Dec
31,
|
Sept
27,
|
Dec
31,
|
Dec
31,
|
Dec
31,
|
|||||||||||
|
2009
|
2009
|
2008
|
2009
|
2008
|
|||||||||||
|
Restructuring
and other costs
|
|||||||||||||||
|
Severance
and other employee benefits
|
$
|
0.6
|
$
|
1.2
|
$
|
0.0
|
$
|
10.2
|
$
|
0.0
|
|||||
|
Pension
settlement costs
|
8.9
|
0.5
|
0.0
|
9.4
|
0.0
|
||||||||||
|
Other
exit costs
|
0.9
|
0.0
|
0.0
|
1.4
|
0.0
|
||||||||||
|
$
|
10.4
|
$
|
1.7
|
$
|
0.0
|
$
|
21.0
|
$
|
0.0
|
||||||
|
In
the fourth quarter of 2009, the Company recorded an impairment of assets
charge for its satellite facility at Franklin, Virginia due to the
announced closure of the host mill at that location.
|
|||||||||||||||
|
As
a result of the workforce reduction associated with the restructuring
program and the associated distribution of benefits, included in
restructuring costs for the three-month periods ended September 27, 2009
and December 31, 2009 are pension settlement costs of $0.5 million and
$8.9 million, respectively, associated with some of our pension plans in
the U.S.
|
|||||||||||||||
|
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 income (loss), excluding special items, for the three month and
twelve month periods ended December 31, 2009 and December 31, 2008 and the
three month period ended September 27, 2008 and a reconcilation to net
income(loss) 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)
|
Three
Months Ended
|
Full
Year
|
|||||||||||||
|
Dec
31,
|
Sept
27,
|
Dec
31,
|
Dec
31,
|
Dec
31,
|
|||||||||||
|
2009
|
2009
|
2008
|
2009
|
2008
|
|||||||||||
|
Net
Income attributable to MTI, as reported
|
$
|
4.1
|
$
|
8.9
|
$
|
5.7
|
$
|
(23.8)
|
$
|
65.3
|
|||||
|
Special
items:
|
|||||||||||||||
|
Impairment
of assets
|
2.3
|
0.0
|
0.2
|
45.5
|
0.2
|
||||||||||
|
Restructuring
and other costs
|
10.5
|
1.4
|
6.1
|
22.0
|
13.4
|
||||||||||
|
Currency
translation losses
|
0.0
|
0.0
|
0.0
|
2.3
|
0.0
|
||||||||||
|
Gain
on sale of assets
|
(0.1)
|
0.0
|
(3.5)
|
(0.1)
|
(13.7)
|
||||||||||
|
Related
tax effects on special items
|
(5.1)
|
(0.4)
|
(0.9)
|
(16.8)
|
0.1
|
||||||||||
|
Net
income attributable to MTI, excluding special items
|
$
|
11.7
|
$
|
9.9
|
$
|
7.6
|
$
|
29.1
|
$
|
65.3
|
|||||
|
Basic
earnings per share, excluding special items
|
$
|
0.62
|
$
|
0.53
|
$
|
0.41
|
$
|
1.55
|
$
|
3.45
|
|||||
|
Diluted
earnings per share, excluding special items
|
$
|
0.62
|
$
|
0.53
|
$
|
0.41
|
$
|
1.55
|
$
|
3.44
|
|||||
|
5)
|
During
the fourth quarter of 2007, the Company exited its Synsil® Products
product line and reclassified such operations as
discontinued. In addition, the Company reclassified
to discontinued operations its two Midwest plants located in Mt. Vernon,
Indiana and Wellsville, Ohio. In 2008, the Company sold its
Synsil Plants and its operations at Wellsville, Ohio. In the fourth
quarter of 2009, the Company sold its facility at Mt. Vernon,
Indiana.
|
||||||||||||||
|
The
following table details selected financial information for the businesses
included within discontinued operations in the Consolidated
Statements of Income (millions of dollars):
|
|||||||||||||||
|
|
|||||||||||||||
|
Three
Months Ended
|
Full
Year
|
||||||||||||||
|
Dec
31,
|
Sept
27,
|
Dec
31,
|
Dec
31,
|
Dec
31,
|
|||||||||||
|
2009
|
2009
|
2008
|
2009
|
2008
|
|||||||||||
|
Net
sales
|
$
|
2.0
|
$
|
5.8
|
$
|
4.5
|
$
|
15.6
|
$
|
23.2
|
|||||
|
Production
margin
|
0.1
|
0.7
|
0.3
|
1.1
|
3.3
|
||||||||||
|
Total
expenses
|
0.0
|
0.2
|
0.2
|
0.6
|
0.8
|
||||||||||
|
Impairment
of assets
|
0.0
|
0.0
|
0.0
|
5.6
|
0.0
|
||||||||||
|
Restructuring
charges (reversals)
|
0.0
|
0.0
|
0.0
|
0.0
|
0.1
|
||||||||||
|
Income
(loss) from operations
|
0.1
|
0.5
|
0.1
|
(5.1)
|
2.4
|
||||||||||
|
Provision
for taxes on income
|
0.0
|
0.2
|
0.0
|
(1.9)
|
0.9
|
||||||||||
|
Income
(loss) from operations, net of tax
|
0.1
|
0.3
|
0.1
|
(3.2)
|
1.5
|
||||||||||
|
Pre-tax
gains on sales of discontinued business
|
0.1
|
0.0
|
3.5
|
0.1
|
13.7
|
||||||||||
|
Provision
for taxes on gains
|
0.0
|
0.0
|
(1.3)
|
0.0
|
(4.9)
|
||||||||||
|
Income
(loss) from discontinued operations, net of tax
|
$
|
0.2
|
$
|
0.3
|
$
|
2.3
|
$
|
(3.1)
|
$
|
10.3
|
|||||
|
The
Company recorded impairment of assets charges in the second quarter of
2009 to recognize the lower market value of its Mt. Vernon, Indiana
facility.
|
|||||||||||||||
|
6)
|
The
following table reflects the components of non-operating income and
deductions (millions of dollars):
|
||||||||||||||
|
Three
Months Ended
|
Full
Year
|
||||||||||||||
|
Dec
31,
|
Sept
27,
|
Dec
31,
|
Dec
31,
|
Dec
31,
|
|||||||||||
|
2009
|
2009
|
2008
|
2009
|
2008
|
|||||||||||
|
Interest
income
|
$
|
0.8
|
$
|
0.6
|
$
|
1.3
|
$
|
2.9
|
$
|
4.9
|
|||||
|
Interest
expense
|
(0.8)
|
(0.9)
|
(1.4)
|
(3.5)
|
(5.2)
|
||||||||||
|
Foreign
exchange gains (losses)
|
(1.1)
|
(0.1)
|
2.5
|
(2.4)
|
1.7
|
||||||||||
|
Currency
translation loss
|
0.0
|
0.0
|
0.0
|
(2.3)
|
0.0
|
||||||||||
|
Other
deductions
|
(0.5)
|
(0.3)
|
(0.2)
|
(0.8)
|
(1.1)
|
||||||||||
|
Non-operating
income (deductions), net
|
$
|
(1.6)
|
$
|
(0.7)
|
$
|
2.2
|
$
|
(6.1)
|
$
|
0.3
|
|||||
|
Included
in non-operating deductions for the year ended December 31, 2009 is a
foreign currency translation loss of $2.3 million recognized upon
liquidation of the Company's operations at Gomez Palacio,
Mexico.
|
|||||||||||||||
|
7)
|
The
analyst conference call to discuss operating results for the fourth
quarter is scheduled for Friday,February 5, 2010 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
|
Year
Ended
|
%
Growth
|
|||||||||||||||||||||||||||||
|
SALES
DATA
|
Dec
31,
|
Sept
27,
|
Dec
31,
|
Dec
31,
|
Dec
31,
|
|||||||||||||||||||||||||||
|
2009
|
2009
|
2008
|
Prior Year
|
Prior Qtr.
|
2009
|
2008
|
Prior Year
|
|||||||||||||||||||||||||
|
United
States
|
$ | 129.3 | $ | 126.3 | $ | 126.5 | 2 | % | 2 | % | $ | 478.4 | $ | 586.5 | (18 | )% | ||||||||||||||||
|
International
|
126.9 | 108.0 | 113.5 | 12 | % | 18 | % | 428.9 | 525.7 | (18 | )% | |||||||||||||||||||||
|
Net
Sales
|
$ | 256.2 | $ | 234.3 | $ | 240.0 | 7 | % | 9 | % | $ | 907.3 | $ | 1,112.2 | (18 | )% | ||||||||||||||||
|
Paper
PCC
|
$ | 132.3 | $ | 124.1 | $ | 125.5 | 5 | % | 7 | % | $ | 484.6 | $ | 547.2 | (11 | )% | ||||||||||||||||
|
Specialty
PCC
|
14.0 | 13.4 | 11.9 | 18 | % | 4 | % | 50.1 | 58.5 | (14 | )% | |||||||||||||||||||||
|
PCC
Products
|
$ | 146.3 | $ | 137.5 | $ | 137.4 | 6 | % | 6 | % | $ | 534.7 | $ | 605.7 | (12 | )% | ||||||||||||||||
|
Talc
|
$ | 9.3 | $ | 8.6 | $ | 7.4 | 26 | % | 8 | % | $ | 32.3 | $ | 35.9 | (10 | )% | ||||||||||||||||
|
Ground
Calcium Carbonate
|
14.7 | 16.4 | 15.0 | (2 | )% | (10 | )% | 61.4 | 74.8 | (18 | )% | |||||||||||||||||||||
|
Processed
Minerals Products
|
$ | 24.0 | $ | 25.0 | $ | 22.4 | 7 | % | (4 | )% | $ | 93.7 | $ | 110.7 | (15 | )% | ||||||||||||||||
|
Specialty
Minerals Segment
|
$ | 170.3 | $ | 162.5 | $ | 159.8 | 7 | % | 5 | % | $ | 628.4 | $ | 716.4 | (12 | )% | ||||||||||||||||
|
Refractory
products
|
$ | 68.5 | $ | 56.8 | $ | 65.2 | 5 | % | 21 | % | $ | 225.4 | $ | 320.8 | (30 | )% | ||||||||||||||||
|
Metallurgical
Products
|
17.4 | 15.0 | 15.0 | 16 | % | 16 | % | 53.5 | 75.0 | (29 | )% | |||||||||||||||||||||
|
Refractories
Segment
|
$ | 85.9 | $ | 71.8 | $ | 80.2 | 7 | % | 20 | % | $ | 278.9 | $ | 395.8 | (30 | )% | ||||||||||||||||
|
Net
Sales
|
$ | 256.2 | $ | 234.3 | $ | 240.0 | 7 | % | 9 | % | $ | 907.3 | $ | 1,112.2 | (18 | )% | ||||||||||||||||
|
SEGMENT
OPERATING INCOME (LOSS) DATA
|
||||||||||||||||||||||||||||||||
|
Specialty
Minerals Segment
|
$ | 5.9 | $ | 14.2 | $ | 5.1 | 16 | % | (58 | )% | $ | 34.2 | $ | 57.0 | (40 | )% | ||||||||||||||||
|
Refractories
Segment
|
$ | (0.3 | ) | $ | (0.9 | ) | $ | (1.4 | ) | (79 | )% | (67 | )% | $ | (48.8 | ) | $ | 26.3 | * | |||||||||||||
|
Unallocated
Corporate Expenses
|
$ | (1.1 | ) | $ | (0.5 | ) | $ | (0.6 | ) | 83 | % | 120 | % | $ | (2.5 | ) | $ | (1.3 | ) | 92 | % | |||||||||||
|
Consolidated
|
$ | 4.5 | $ | 12.8 | $ | 3.1 | 45 | % | (65 | )% | $ | (17.1 | ) | $ | 82.0 | * | ||||||||||||||||
|
SEGMENT
RESTRUCTURING and
|
||||||||||||||||||||||||||||||||
|
IMPAIRMENT
COSTS
|
||||||||||||||||||||||||||||||||
|
Specialty
Minerals Segment
|
$ | 9.2 | $ | 1.6 | $ | 3.3 | 179 | % | 475 | % | $ | 20.0 | $ | 7.9 | * | |||||||||||||||||
|
Refractories
Segment
|
$ | 3.6 | $ | (0.2 | ) | $ | 3.0 | 20 | % | * | $ | 41.9 | $ | 5.7 | * | |||||||||||||||||
|
Consolidated
|
$ | 12.8 | $ | 1.4 | $ | 6.3 | 103 | % | * | $ | 61.9 | $ | 13.6 | * | ||||||||||||||||||
|
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 (the restructuring and
impairment costs set forth in the above table), for the three-month
periods ended December 31, 2009, September 27, 2009 and December 31,
2008 and the years ended December 31, 2009 and 2008, constituting a
reconcilation 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
|
Year
Ended
|
%
Growth
|
|||||||||||||||||||||||||||||
|
SEGMENT
OPERATING INCOME,
|
Dec
31,
|
Sept
27,
|
Dec
31,
|
Dec
31,
|
Dec
31,
|
|||||||||||||||||||||||||||
|
EXCLUDING
SPECIAL ITEMS
|
2009 | 2009 | 2008 |
Prior Year
|
Prior Qtr.
|
2009 | 2008 |
Prior Year
|
||||||||||||||||||||||||
|
Specialty
Minerals Segment
|
$ | 15.1 | $ | 15.8 | $ | 8.4 | 80 | % | (4 | )% | $ | 54.2 | $ | 64.9 | (16 | )% | ||||||||||||||||
|
Refractories
Segment
|
$ | 3.3 | $ | (1.1 | ) | $ | 1.6 | 106 | % | * | $ | (6.9 | ) | $ | 32.0 | * | ||||||||||||||||
|
Unallocated
Corporate Expenses
|
$ | (1.1 | ) | $ | (0.5 | ) | $ | (0.6 | ) | 83 | % | 120 | % | $ | (2.5 | ) | $ | (1.3 | ) | 92 | % | |||||||||||
|
Consolidated
|
$ | 17.3 | $ | 14.2 | $ | 9.4 | 84 | % | 22 | % | $ | 44.8 | $ | 95.6 | (53 | )% | ||||||||||||||||
|
*
Percentage not meaningful
|
||||||||||||||||||||||||||||||||
|
MINERALS
TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
||||||
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||
|
ASSETS
|
||||||
|
(In
Thousands of Dollars)
|
||||||
|
December 31,
|
December
31,
|
|||||
|
2009*
|
2008**
|
|||||
|
Current
assets:
|
||||||
|
Cash
& cash equivalents
|
$
|
310,946
|
$
|
181,876
|
||
|
Short-term
investments
|
8,940
|
9,258
|
||||
|
Accounts
receivable, net
|
173,665
|
163,475
|
||||
|
Inventories
|
82,483
|
133,983
|
||||
|
Prepaid
expenses and other current assets
|
24,679
|
23,281
|
||||
|
Assets
held for disposal
|
0
|
19,674
|
||||
|
Total
current assets
|
600,713
|
531,547
|
||||
|
Property,
plant and equipment
|
1,223,710
|
1,324,230
|
||||
|
Less
accumulated depreciation
|
864,332
|
894,637
|
||||
|
Net
property, plant & equipment
|
359,378
|
429,593
|
||||
|
Goodwill
|
68,101
|
66,414
|
||||
|
Prepaid
pension costs
|
0
|
483
|
||||
|
Other
assets and deferred charges
|
43,946
|
39,583
|
||||
|
Total
assets
|
$
|
1,072,138
|
$
|
1,067,620
|
||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||
|
Current
liabilities:
|
||||||
|
Short-term
debt
|
$
|
6,892
|
$
|
14,984
|
||
|
Current
maturities of long-term debt
|
4,600
|
4,000
|
||||
|
Accounts
payable
|
74,513
|
67,393
|
||||
|
Restructuring
liabilities
|
8,282
|
6,840
|
||||
|
Other
current liabilities
|
58,627
|
56,902
|
||||
|
Liabilities
of assets held for disposal-current
|
0
|
734
|
||||
|
Total
current liabilities
|
152,914
|
150,853
|
||||
|
Long-term
debt
|
92,621
|
97,221
|
||||
|
Other
non-current liabilities
|
78,860
|
84,715
|
||||
|
Total
liabilities
|
324,395
|
332,789
|
||||
|
Total
MTI shareholders' equity
|
724,161
|
711,584
|
||||
|
Noncontrolling
Interest
|
23,582
|
23,247
|
||||
|
Total
shareholders' equity
|
747,743
|
734,831
|
||||
|
Total
liabilities and shareholders' equity
|
$
|
1,072,138
|
$
|
1,067,620
|
||
|
*
|
Unaudited
|
|||||
|
**
|
Condensed
from audited financial statements.
|
|||||