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): July 27, 2023

MINERALS TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)

Delaware
   
    001-11430
   
25-1190717
(State or other jurisdiction
of incorporation)
 
(Commission File
Number)
 
(IRS Employer
 Identification No.)

622 Third Avenue, New York, New York
                
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 per share
 
MTX
 
NYSE

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 July 27, 2023, Minerals Technologies Inc. issued a press release regarding its financial performance for the second quarter of 2023. 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
     
104
Cover Page Interactive Data File (formatted as inline XBRL)



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/ Timothy J. Jordan
 
 
Name:
Timothy J. Jordan
   
Title:
 
Vice President, General Counsel, Secretary and Chief Compliance Officer
     
  Date:  July 27, 2023
 
 







 
                                                           EXHIBIT 99.1
News Release
 
Investor Contact:
Lydia Kopylova, (212) 878-1831
For Immediate Release
July 27, 2023
Media Contact:
Jennifer Albert, (212) 878-1840

Minerals Technologies Reports Second Quarter 2023 Earnings Per Share of $0.82,
 or $1.31 Excluding Special Items
----------
Company Initiated a Restructuring and Cost Savings Program
----------
Highlights:
Operating Margin of 9%, or 12.8% Excluding Special Items, Up 120 bps Sequentially
Cash Flow from Operations: $79 Million Year-To-Date, More Than Double Prior Year
Initiated $10 Million Cost Savings Program
Announced Plan to Exit Talc Business
Signed Agreement in Brazil to Deploy NewYield® LO Technology
Published 15th Annual Corporate Responsibility and Sustainability Report


NEW YORK, July 27, 2023 – Minerals Technologies Inc. (NYSE: MTX) (“MTI” or “the Company”) today reported diluted earnings per share of $1.31 excluding special items for the second quarter ended July 3, 2023. Reported earnings per share were $0.82.

“We delivered a solid quarter with continued margin and cash flow improvement. This was driven by our team’s focused execution and the commitment to deliver on our targets. In addition, following our recent re-segmentation, we identified organizational efficiencies that will further streamline our cost structure,” said Douglas T. Dietrich, Chairman and Chief Executive Officer.

“Further, we announced our subsidiary, Barretts Minerals Inc., will exit from the talc market, and we initiated a sale process. We are also taking prudent steps to ensure that any liabilities associated with talc are dealt with effectively and efficiently,” said Mr. Dietrich.

Second Quarter 2023

Worldwide net sales were $552 million, up 1 percent sequentially and down 1 percent from the prior year. Foreign exchange had an unfavorable impact of approximately $8 million or 1 percentage point.

Operating income was $50 million. Excluding special items, operating income was $71 million, up 12 percent sequentially and 4 percent below the prior year as the Company continues to catch up on inflationary cost increases through higher pricing. Operating margin excluding special items was 12.8 percent, a 120 basis point improvement sequentially.

The Company recorded special items of $20.7 million, primarily consisting of severance costs of $6.6 million related to a restructuring program and $13.9 million of additional litigation costs. The litigation costs were incurred to defend against and restore its reserve for claims associated with certain talc products from the Barretts Minerals Inc. subsidiary. The Company previously announced that it will exit the talc business following a strategic review of its operations and amidst the backdrop of the talc-related litigation environment.

Consumer & Specialties segment sales were $290 million in the second quarter, down 2 percent sequentially and up 3 percent over the prior year.

Household & Personal Care sales were $126 million, down 3 percent sequentially and up 6 percent from the prior year as the impact from our pricing actions and continued strong demand for our pet litter products more than offset mixed demand conditions across other consumer end markets. Specialty Additives sales were $165 million, down 2 percent sequentially and flat over the prior year.

Segment operating income was $34 million, excluding special items, up 5 percent sequentially and 1 percent over the prior year. Operating margin excluding special items was 11.7 percent, up 90 basis points sequentially as the segment benefitted from pricing actions and strong demand for pet litter. Reported segment operating income was $19 million, or 6.7 percent of sales.

Additionally, the Company announced that it has entered into an agreement with a leading pulp and paper company to deploy MTI’s sustainable New Yield® LO Precipitated Calcium Carbonate (PCC) technology at an existing plant in Brazil.

The Consumer & Specialties segment provides technologically enhanced products to consumer-driven end markets, including mineral-to-shelf household products, as well as specialty additives that become functional components in a variety of consumer and industrial goods. This segment includes two product lines: Household & Personal Care and Specialty Additives. 

Engineered Solutions segment sales were $261 million in the second quarter, up 5 percent sequentially, but 5 percent below the prior year.

High-Temperature Technologies sales were $183 million, an increase of 2 percent sequentially and 2 percent below the prior year driven by soft steel market conditions in Europe. Environmental & Infrastructure sales were $79 million, 12 percent higher sequentially but 10 percent lower than the prior year due to the weak commercial construction market conditions in North America.

Segment operating income was $38 million excluding special items, 9 percent higher sequentially, but 8 percent lower than the prior year. Operating margins represented 14.7 percent of sales, excluding special items. Reported segment operating income was $35 million and 13.5 percent of sales.

The Engineered Solutions segment provides advanced process technologies and solutions that are designed to improve our customers’ manufacturing processes and projects. This segment includes two product lines: High-Temperature Technologies and Environmental & Infrastructure.  

Company-wide cost savings program

MTI has initiated a cost savings program, primarily through workforce reductions. The annualized savings from the program will be approximately $10 million, beginning late in the third quarter of 2023 and achieving full run-rate in the first half of 2024. The Company will provide additional details in the coming quarters as part of its regular earnings reporting cycle.

-----------------
Minerals Technologies will host a conference call tomorrow, July 28, 2023, at 11 a.m. Eastern Time. The live earnings webcast can be accessed at https://investors.mineralstech.com/quarterly-results-conference-calls. A presentation for the call will be available at the same location at approximately 10:30 a.m. Eastern Time on July 28, 2023.
-----------------

FORWARD-LOOKING STATEMENTS

This press release may contain "forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations and forecasts of future events such as new products, revenues and financial performance, and are not limited to describing historical or current facts. They can be identified by the use of words such as “believes,” “expects,” “plans,” “intends,” “anticipates,” and other words and phrases of similar meaning. Forward-looking statements are necessarily based on assumptions, estimates and limited information available at the time they are made. A broad variety of risks and uncertainties, both known and unknown, as well as the inaccuracy of assumptions and estimates, can affect the realization of the expectations or forecasts in these statements. Actual future results may vary materially. Significant factors that could affect the expectations and forecasts include worldwide general economic, business, and industry conditions; the cyclicality of our customers’ businesses and their changing regional demands; our ability to compete in very competitive industries; consolidation in customer industries, principally paper, foundry and steel; our ability to renew or extend long term sales contracts for our satellite operations; our ability to generate cash to service our debt; our ability to comply with the covenants in the agreements governing our debt; our ability to effectively achieve and implement our growth initiatives or consummate the transactions described in the statements; our ability to successfully develop new products; our ability to defend our intellectual property; the increased risks of doing business abroad; the availability of raw materials and access to ore reserves at our mining operations, or increases in costs of raw materials, energy, or shipping; compliance with or changes to regulation in the areas of environmental, health and safety, and tax; claims for legal, environmental and tax matters or product stewardship issues; the continuing effects of the COVID-19 pandemic and the resulting preventative measures; operating risks and capacity limitations affecting our production facilities; seasonality of some of our businesses; cybersecurity and other threats relating to our information technology systems; and other risk factors and cautionary statements in our 2022 Annual Report on Form 10‐K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward‐looking statement, whether as a result of new information, future events, or otherwise.


About Minerals Technologies Inc.
New York-based Minerals Technologies Inc. (MTI) is a leading, technology-driven specialty minerals company that develops, produces, and markets a broad range of mineral and mineral-based products, related systems, and services. MTI serves globally a wide range of consumer and industrial markets, including household, food and pharmaceutical, paper, packaging, automotive, construction, and environmental. The Company reported global sales of $2.1 billion in 2022. For further information, please visit our website at www.mineralstech.com.
###



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
 
   
Jul. 2,
2023
   
Apr. 2,
2023
   
Jul. 3,
2022
     
Prior Qtr.
     
Prior Year
   
Jul. 2,
2023
   
Jul. 3,
2022
     
Prior Year
 
                                 
                                                 
                                                 
Net sales
 
$
551.5
   
$
546.1
   
$
557.0
     
1
%
   
(1
)%
 
$
1,097.6
   
$
1,076.1
     
2
%
                                                                 
Cost of goods sold
   
423.5
     
425.4
     
429.7
     
(0
)%
   
(1
)%
   
848.9
     
827.1
     
3
%
                                                                 
Production margin
   
128.0
     
120.7
     
127.3
     
6
%
   
1
%
   
248.7
     
249.0
     
(0
)%
                                                                 
Marketing and administrative expenses
   
51.8
     
52.3
     
48.8
     
(1
)%
   
6
%
   
104.1
     
97.6
     
7
%
Research and development expenses
   
5.6
     
5.3
     
5.0
     
6
%
   
12
%
   
10.9
     
10.1
     
8
%
Restructuring and other items, net
   
6.6
     
0.0
     
0.0
     
*
     
*
     
6.6
     
0.0
     
*
 
Acquisition related expenses
   
0.2
     
0.1
     
2.6
     
*
     
*
     
0.3
     
4.2
     
*
 
Litigation expenses
   
13.9
     
0.0
     
1.5
     
*
     
*
     
13.9
     
1.5
     
*
 
                                                                 
Income from operations
   
49.9
     
63.0
     
69.4
     
(21
)%
   
(28
)%
   
112.9
     
135.6
     
(17
)%
                                                                 
Interest expense, net
   
(14.5
)
   
(14.2
)
   
(10.4
)
   
2
%
   
39
%
   
(28.7
)
   
(20.2
)
   
42
%
Non-cash pension settlement charge
   
0.0
     
0.0
     
(1.5
)
   
*
     
*
     
0.0
     
(1.5
)
   
*
 
Other non-operating income (deductions), net
   
(1.4
)
   
(1.1
)
   
(1.2
)
   
27
%
   
17
%
   
(2.5
)
   
(1.6
)
   
*
 
Total non-operating deductions, net
   
(15.9
)
   
(15.3
)
   
(13.1
)
   
4
%
   
21
%
   
(31.2
)
   
(23.3
)
   
34
%
                                                                 
Income before tax and equity in earnings
   
34.0
     
47.7
     
56.3
     
(29
)%
   
(40
)%
   
81.7
     
112.3
     
(27
)%
                                                                 
Provision for taxes on income
   
7.5
     
10.5
     
11.4
     
(29
)%
   
(34
)%
   
18.0
     
22.6
     
(20
)%
Equity in earnings of affiliates, net of tax
   
1.1
     
0.9
     
0.6
     
22
%
   
83
%
   
2.0
     
0.7
     
186
%
                                                                 
Net income
   
27.6
     
38.1
     
45.5
     
(28
)%
   
(39
)%
   
65.7
     
90.4
     
(27
)%
                                                                 
Less: Net income attributable to non-controlling interests
   
1.0
     
1.1
     
0.6
     
(9
)%
   
67
%
   
2.1
     
1.4
     
50
%
                                                                 
Net Income attributable to Minerals Technologies Inc. (MTI)
 
$
26.6
   
$
37.0
   
$
44.9
     
(28
)%
   
(41
)%
 
$
63.6
   
$
89.0
     
(29
)%
                                                                 
Weighted average number of common shares outstanding:
                                                 
                                                                 
Basic
   
32.5
     
32.5
     
32.8
                     
32.5
     
33.0
         
                                                                 
Diluted
   
32.6
     
32.5
     
32.9
                     
32.5
     
33.1
         
                                                                 
Earnings per share attributable to MTI:
                                                               
                                                                 
Basic
 
$
0.82
   
$
1.14
   
$
1.37
     
(28
)%
   
(40
)%
 
$
1.96
   
$
2.70
     
(27
)%
                                                                 
Diluted
 
$
0.82
   
$
1.14
   
$
1.36
     
(28
)%
   
(40
)%
 
$
1.96
   
$
2.69
     
(27
)%
                                                                 
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 July 2, 2023, April 2, 2023, and July 3, 2022 consisted of 91 days, 92 days, and 91 days, respectively. The six month periods ended July 2, 2023 and July 3, 2022 consisted of 183 days and 184 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 2023, the Company realigned its business reporting structure into two segments, Consumer & Specialties and Engineered Solutions.

 
     
The Consumer & Specialties segment provides technologically enhanced products to consumer-driven end markets, including mineral-to-shelf household products, as well as specialty additives that become functional components in a variety of consumer and industrial goods. This segment includes two product lines: Household & Personal Care and Specialty Additives. The Engineered Solutions segment provides advanced process technologies and solutions that are designed to improve our customers’ manufacturing processes and projects. This segment includes two product lines: High-Temperature Technologies and Environmental & Infrastructure.

 
     
We believe the new structure better aligns our businesses and technologies with our customers and end markets and creates a more efficient and effective management structure that reflects the way performance is evaluated and resources are allocated.
 
                                     
     
For historical consolidated financial information based upon the new segment reporting structure, please see the Company's Form 8-K filed on March 15, 2023.
 
                                     
 
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 July 2, 2023, April 2, 2023, and July 3, 2022, and the six month periods ended July 2, 2023 and July 3, 2022 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
 
         
Jul. 2,
2023
   
Apr. 2,
2023
   
Jul. 3,
2022
   
Jul. 2,
2023
   
Jul. 3,
2022
 
                           
                                               
     
Net income attributable to MTI
 
$
26.6
   
$
37.0
   
$
44.9
   
$
63.6
   
$
89.0
 
     
% of sales
   
4.8
%
   
6.8
%
   
8.1
%
   
5.8
%
   
8.3
%
                                               
     
Special items:
                                       
     
Restructuring and other items, net
   
6.6
     
0.0
     
0.0
     
6.6
     
0.0
 
     
Acquisition related expenses
   
0.2
     
0.1
     
2.6
     
0.3
     
4.2
 
     
Litigation expenses
   
13.9
     
0.0
     
1.5
     
13.9
     
1.5
 
     
Non-cash pension settlement charge
   
0.0
     
0.0
     
1.5
     
0.0
     
1.5
 
     
Related tax effects on special items
   
(4.6
)
   
0.0
     
(1.3
)
   
(4.6
)
   
(1.7
)
                                               
     
Net income attributable to MTI, excluding special items
 
$
42.7
   
$
37.1
   
$
49.2
   
$
79.8
   
$
94.5
 
     
% of sales
   
7.7
%
   
6.8
%
   
8.8
%
   
7.3
%
   
8.8
%
                                               
     
Diluted earnings per share, excluding special items
 
$
1.31
   
$
1.14
   
$
1.50
   
$
2.46
   
$
2.85
 
                                               
     
In the second quarter of 2023, the Company initiated a restructuring and cost savings program to further streamline our cost structure as a result of organizational efficiencies gained through our recent resegmentation. Accordingly, the Company recorded restructuring and other charges of $6.6 million related to severance and other costs.
 
                                               
     
In the second quarter of 2023, the Company recorded incremental litigation costs of $13.9 million incurred to defend against, opportunistically settle, and restore our reserve for claims associated with certain talc products from our Barretts Minerals Inc. subsidiary.
 
                                               
 
4
)
Free cash flow is defined as cash flow from operations less capital expenditures. The following is a presentation of the Company's non-GAAP free cash flow for the quarterly periods ended July 2, 2023, April 2, 2023, and July 3, 2022, and the six month periods ended July 2, 2023 and July 3, 2022 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)
 
Jul. 2,
2023
   
Apr. 2,
2023
   
Jul. 3,
2022
   
Jul. 2,
2023
   
Jul. 3,
2022
 
                           
     
Cash flow from operations
 
$
45.5
   
$
33.7
   
$
32.9
   
$
79.2
   
$
33.2
 
     
Capital expenditures
   
21.4
     
24.5
     
21.2
     
45.9
     
40.2
 
     
Free cash flow
 
$
24.1
   
$
9.2
   
$
11.7
   
$
33.3
   
$
(7.0
)
                                               
     
Depreciation, depletion and amortization expense
 
$
23.5
   
$
23.7
   
$
23.7
   
$
47.2
   
$
47.9
 
                                               
 
5
)
“Adjusted EBITDA” is a non-GAAP financial measure and refers to earnings before interest, taxes, depreciation and amortization (EBITDA), excluding special items. The following is a presentation of the Company's non-GAAP EBITDA and Adjusted EBITDA for the quarterly periods ended July 2, 2023, April 2, 2023, and July 3, 2022, and the six month periods ended July 2, 2023 and July 3, 2022, and a reconciliation to net income for such periods. The Company's management believes these non-GAAP measures provide meaningful supplemental information regarding its performance and facilitates investors' understanding of historic operating trends.
 
                                               
         
Quarter Ended
   
Six Months Ended
 
     
(millions of dollars)
 
Jul. 2,
2023
   
Apr. 2,
2023
   
Jul. 3,
2022
   
Jul. 2,
2023
   
Jul. 3,
2022
 
                           
                                               
     
Net income
 
$
26.6
   
$
37.0
   
$
44.9
   
$
63.6
   
$
89.0
 
     
Add back:
                                       
     
        Depreciation, depletion and amortization
   
23.5
     
23.7
     
23.7
     
47.2
     
47.9
 
     
        Interest expense, net
   
14.5
     
14.2
     
10.4
     
28.7
     
20.2
 
     
        Equity in earnings of affiliates, net of tax
   
(1.1
)
   
(0.9
)
   
(0.6
)
   
(2.0
)
   
(0.7
)
     
        Net income attributable to non-controlling interests
   
1.0
     
1.1
     
0.6
     
2.1
     
1.4
 
     
        Provision for taxes on income
   
7.5
     
10.5
     
11.4
     
18.0
     
22.6
 
     
                   EBITDA
   
72.0
     
85.6
     
90.4
     
157.6
     
180.4
 
     
Add special items:
                                       
     
        Restructuring and other items, net
   
6.6
     
0.0
     
0.0
     
6.6
     
0.0
 
     
        Acquisition related expenses
   
0.2
     
0.1
     
2.6
     
0.3
     
4.2
 
     
        Litigation expenses
   
13.9
     
0.0
     
1.5
     
13.9
     
1.5
 
     
        Non-cash pension settlement charge
   
0.0
     
0.0
     
1.5
     
0.0
     
1.5
 
     
                   Adjusted EBITDA
 
$
92.7
   
$
85.7
   
$
96.0
   
$
178.4
   
$
187.6
 
     
                   % of sales
   
16.8
%
   
15.7
%
   
17.2
%
   
16.3
%
   
17.4
%
                                               
 
6
)
The following table reflects the components of non-operating income and deductions:
         
                                               
     
(millions of dollars)
 
Quarter Ended
   
Six Months Ended
 
         
Jul. 2,
2023
   
Apr. 2,
2023
   
Jul. 3,
2022
   
Jul. 2,
2023
   
Jul. 3,
2022
 
                           
     
          Interest income
 
$
0.8
   
$
0.7
   
$
0.8
   
$
1.5
   
$
1.6
 
     
          Interest expense
   
(15.3
)
   
(14.9
)
   
(11.2
)
   
(30.2
)
   
(21.8
)
     
          Non-cash pension settlement charge
   
0.0
     
0.0
     
(1.5
)
   
0.0
     
(1.5
)
     
          Foreign exchange gains
   
1.3
     
0.2
     
0.6
     
1.5
     
1.5
 
     
          Other deductions
   
(2.7
)
   
(1.3
)
   
(1.8
)
   
(4.0
)
   
(3.1
)
     
             Non-operating deductions, net
 
$
(15.9
)
 
$
(15.3
)
 
$
(13.1
)
 
$
(31.2
)
 
$
(23.3
)
                                               
     
Included in non-operating deductions for both the three month and six month periods ended July 3, 2022 are non-cash pension settlement charges of $1.5 million associated with some of our pension plans in the U.S.
 
                                               
 
7
)
The analyst conference call to discuss operating results for the second quarter is scheduled for Friday, July 28, 2023 at 11:00 am ET 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
 
Jul. 2,
2023
   
% of
Total Sales
   
Apr. 2,
2023
   
% of
Total Sales
   
Jul. 3,
2022
   
% of
Total Sales
     
Prior Qtr.
     
Prior Year
   
Jul. 2,
2023
   
% of
Total Sales
   
Jul. 3,
2022
   
% of
Total Sales
     
Prior Year
 
                                                     
                                                                               
United States
 
$
294.7
     
53
%
 
$
288.0
     
53
%
 
$
303.1
     
54
%
   
2
%
   
(3
)%
 
$
582.7
     
53
%
 
$
572.8
     
53
%
   
2
%
International
   
256.8
     
47
%
   
258.1
     
47
%
   
253.9
     
46
%
   
(1
)%
   
1
%
   
514.9
     
47
%
   
503.3
     
47
%
   
2
%
      Net Sales
 
$
551.5
     
100
%
 
$
546.1
     
100
%
 
$
557.0
     
100
%
   
1
%
   
(1
)%
 
$
1,097.6
     
100
%
 
$
1,076.1
     
100
%
   
2
%
                                                                                                         
Household & Personal Care
 
$
125.5
     
23
%
 
$
129.2
     
23
%
 
$
118.9
     
21
%
   
(3
)%
   
6
%
 
$
254.7
     
24
%
 
$
239.3
     
23
%
   
6
%
Specialty Additives
   
164.8
     
30
%
   
168.1
     
31
%
   
164.3
     
29
%
   
(2
)%
   
0
%
   
332.9
     
30
%
   
327.4
     
30
%
   
2
%
Consumer & Specialties Segment
 
$
290.3
     
53
%
 
$
297.3
     
54
%
 
$
283.2
     
50
%
   
(2
)%
   
3
%
 
$
587.6
     
54
%
 
$
566.7
     
53
%
   
4
%
                                                                                                         
High-Temperature Technologies
 
$
182.6
     
33
%
 
$
178.6
     
33
%
 
$
186.7
     
34
%
   
2
%
   
(2
)%
 
$
361.2
     
33
%
 
$
356.6
     
33
%
   
1
%
Environmental & Infrastructure
   
78.6
     
14
%
   
70.2
     
13
%
   
87.1
     
16
%
   
12
%
   
(10
)%
   
148.8
     
13
%
   
152.8
     
14
%
   
(3
)%
Engineered Solutions Segment
 
$
261.2
     
47
%
 
$
248.8
     
46
%
 
$
273.8
     
50
%
   
5
%
   
(5
)%
 
$
510.0
     
46
%
 
$
509.4
     
47
%
   
0
%
                                                                                                         
       Net Sales
 
$
551.5
     
100
%
 
$
546.1
     
100
%
 
$
557.0
     
100
%
   
1
%
   
(1
)%
 
$
1,097.6
     
100
%
 
$
1,076.1
     
100
%
   
2
%




SUPPLEMENTARY DATA
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
(millions of dollars)
(unaudited)
                                                 
   
Quarter Ended
   
% Growth
   
Six Months Ended
   
% Growth
 
   
Jul. 2,
2023
   
Apr. 2,
2023
   
Jul. 3,
2022
   
Prior
Qtr.
   
Prior
Year
   
Jul. 2,
2023
   
Jul. 3,
2022
     
Prior Year
 
SEGMENT OPERATING INCOME DATA
                               
                                                 
Consumer & Specialties Segment
 
$
19.4
   
$
32.2
   
$
31.6
     
(40
)%
   
(39
)%
 
$
51.6
   
$
62.9
     
(18
)%
% of Sales
   
6.7
%
   
10.8
%
   
11.2
%
                   
8.8
%
   
11.1
%
       
Engineered Solutions Segment
 
$
35.2
   
$
35.3
   
$
41.7
     
(0
)%
   
(16
)%
 
$
70.5
   
$
79.0
     
(11
)%
% of Sales
   
13.5
%
   
14.2
%
   
15.2
%
                   
13.8
%
   
15.5
%
       
Unallocated and Other Corporate Expenses
 
$
(4.7
)
 
$
(4.5
)
 
$
(3.9
)
   
4
%
   
21
%
 
$
(9.2
)
 
$
(6.3
)
   
46
%
                                                                 
Consolidated
 
$
49.9
   
$
63.0
   
$
69.4
     
(21
)%
   
(28
)%
 
$
112.9
   
$
135.6
     
(17
)%
% of Sales
   
9.0
%
   
11.5
%
   
12.5
%
                   
10.3
%
   
12.6
%
       
                                                                 
 SPECIAL ITEMS
                                                               
                                                                 
Consumer & Specialties Segment
 
$
14.5
   
$
0.0
   
$
2.0
     
*
     
*
   
$
14.5
   
$
3.0
     
*
 
                                                                 
Engineered Solutions Segment
 
$
3.2
   
$
0.0
   
$
0.0
     
*
     
*
   
$
3.2
   
$
0.0
     
*
 
                                                                 
Unallocated and Other Corporate Expenses
 
$
3.0
   
$
0.1
   
$
2.1
     
*
     
*
   
$
3.1
   
$
2.7
     
*
 
                                                                 
Consolidated
 
$
20.7
   
$
0.1
   
$
4.1
     
*
     
*
   
$
20.8
   
$
5.7
     
*
 
                                                                 
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. This excludes special items (set forth in the above table), for the quarterly periods ended July 2, 2023, April 2, 2023, and July 3, 2022, and the six month periods ended July 2, 2023 and July 3, 2022, 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,
 
Jul. 2,
2023
   
Apr. 2,
2023
   
Jul. 3,
2022
      
Prior Qtr.
      
Prior Year
   
Jul. 2,
2023
   
Jul. 3,
2022
      
Prior Year
 
     EXCLUDING SPECIAL ITEMS
                               
                                                                 
Consumer & Specialties Segment
 
$
33.9
   
$
32.2
   
$
33.6
     
5
%
   
1
%
 
$
66.1
   
$
65.9
     
0
%
% of Sales
   
11.7
%
   
10.8
%
   
11.9
%
                   
11.2
%
   
11.6
%
       
Engineered Solutions Segment
 
$
38.4
   
$
35.3
   
$
41.7
     
9
%
   
(8
)%
 
$
73.7
   
$
79.0
     
(7
)%
% of Sales
   
14.7
%
   
14.2
%
   
15.2
%
                   
14.5
%
   
15.5
%
       
Unallocated Corporate Expenses
 
$
(1.7
)
 
$
(4.4
)
 
$
(1.8
)
   
(61
)%
   
6
%
 
$
(6.1
)
 
$
(3.6
)
   
(69
)%
                                                                 
Consolidated
 
$
70.6
   
$
63.1
   
$
73.5
     
12
%
   
(4
)%
 
$
133.7
   
$
141.3
     
(5
)%
% of Sales
   
12.8
%
   
11.6
%
   
13.2
%
                   
12.2
%
   
13.1
%
       
* Percentage not meaningful
                                                               




               
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
               
               
               
ASSETS
               
(In Millions of Dollars)
           
     
July 2,
2023
   
December 31,
2022
 
     
*
 
**
                   
Current assets:
               
Cash & cash equivalents
 
$
247.1
   
$
247.2
 
Short-term investments
   
8.3
     
5.6
 
Accounts receivable, net
   
419.8
     
404.0
 
Inventories
   
354.7
     
348.8
 
Prepaid expenses and other current assets
   
49.9
     
64.9
 
Total current assets
   
1,079.8
     
1,070.5
 
                   
Property, plant and equipment
   
2,293.9
     
2,288.6
 
Less accumulated depreciation
   
1,243.3
     
1,238.2
 
Net property, plant & equipment
   
1,050.6
     
1,050.4
 
                   
 Goodwill     914.3
      914.8
 
Intangible assets
   
235.9
     
241.9
 
Other assets and deferred charges
   
127.6
     
124.0
 
                   
                   
Total assets
 
$
3,408.2
   
$
3,401.6
 
                   
                   
LIABILITIES AND SHAREHOLDERS' EQUITY
                   
Current liabilities:
               
Short-term debt
 
$
107.1
   
$
119.7
 
Current maturities of long-term debt
   
14.5
     
14.5
 
Accounts payable
   
204.3
     
193.8
 
Other current liabilities
   
146.3
     
174.6
 
Total current liabilities
   
472.2
     
502.6
 
                   
Long-term debt
   
921.2
     
928.1
 
Deferred income taxes
   
177.4
     
180.4
 
Other non-current liabilities
   
175.9
     
177.3
 
Total liabilities
   
1,746.7
     
1,788.4
 
                   
Total MTI shareholders' equity
   
1,626.5
     
1,579.5
 
Non-controlling Interests
   
35.0
     
33.7
 
Total shareholders' equity
   
1,661.5
     
1,613.2
 
                   
Total liabilities and shareholders' equity
 
$
3,408.2
   
$
3,401.6
 
                   
                   
*
Unaudited
               
**
Condensed from audited financial statements.