Date of Report (Date of earliest event reported): August 1, 2019
|
MINERALS TECHNOLOGIES INC.
|
(Exact name of registrant as specified in its charter)
|
Delaware
|
|
1-11430
|
|
25-1190717
|
(State or other jurisdiction
of incorporation) |
(Commission File
Number) |
(IRS Employer
Identification No.) |
622 Third Avenue, New York, NY
|
|
10017-6707
|
(Address of principal executive offices)
|
(Zip Code)
|
(212) 878-1800
|
||
(Registrant's telephone number, including area code)
|
Title of each class
|
Trading Symbol
|
Name of exchange on which registered
|
||
Common Stock, $0.10 par value
|
MTX
|
New York Stock Exchange
|
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.
|
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company [ ]
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act. [ ]
|
Item 2.02
|
Results of Operations and Financial Condition.
|
|||
On August 1, 2019 Minerals Technologies Inc. issued a press release regarding its financial performance for the second quarter of 2019. 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.
|
||||
Item 9.01
|
|
Financial Statements and Exhibits.
|
||
(d)
|
Exhibits
|
|||
99.1
|
SIGNATURES
|
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.
|
|
|
MINERALS TECHNOLOGIES INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Thomas J. Meek
|
||
|
|
Name:
|
Thomas J. Meek
|
Title:
|
Senior Vice President, General Counsel, Human Resources, Secretary and Chief Compliance Officer
|
||
Date: August 1, 2019
|
|
|
EXHIBIT 99.1
|
|
News Release
Investor Contact:
Cindi Buckwalter, (212) 878-1831
Media Contact:
Michael Landau, (212) 878-1840
|
•
|
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
|
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,
2019
|
Mar. 31,
2019
|
Jul. 1,
2018
|
Prior
Qtr.
|
Prior
Year
|
Jun. 30,
2019
|
Jul. 1,
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.
|
||||||||||||||||||||||
|
||||||||||||||||||||||||
Quarter Ended
|
Six Months Ended
|
|||||||||||||||||||||||
(millions of dollars) |
|
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
Net Sales
Growth
|
Foreign
Exchange
Impact
|
Sales Growth
Excluding
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,
2019
|
% of
|
Mar. 31,
2019
|
% of
|
Jul. 1,
2018
|
% of
|
Jun. 30,
2019
|
% of
|
Jul. 1,
2018
|
% of
|
||||||||||||||||||||||||||||||||||||||||||
Total Sales
|
Total Sales
|
Total Sales
|
Prior Qtr
|
Prior Year
|
Total Sales
|
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,
2019
|
Mar. 31,
2019
|
Jul. 1,
2018
|
Prior Qtr
|
Prior Year
|
Jun. 30,
2019
|
Jul. 1,
2018
|
Prior Year
|
|||||||||||||||||||||||||
SEGMENT OPERATING INCOME DATA
|
||||||||||||||||||||||||||||||||
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.
|
||||||||