UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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
Pursuant To Section 13 OR 15(d) of The Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported):
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(Exact name of registrant as specified in its charter)
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(State or other jurisdiction
of incorporation) |
(Commission File
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(IRS Employer
Identification No.) |
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(Address of principal executive offices)
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(Zip Code)
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(
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(Registrant's telephone number, including area code)
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Title of each class
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Trading Symbol
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Name of exchange on which registered
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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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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 [
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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. [ ]
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Item 2.02
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Results of Operations and Financial Condition.
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On February 1, 2024, Minerals Technologies Inc. issued a press release regarding its financial performance for the fourth 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.
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Item 9.01
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Financial Statements and Exhibits.
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(d)
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Exhibits
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99.1
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104
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Cover Page Interactive Data File (formatted as inline XBRL)
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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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By:
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/s/ Timothy J. Jordan
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Name:
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Timothy J. Jordan
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Title:
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Vice President, General Counsel, Secretary and Chief Compliance Officer
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Date: February 1, 2024
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| EXHIBIT 99.1 |
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News Release
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Investor Contact:
Lydia Kopylova, (212) 878-1831
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Media Contact:
Jennifer Albert, (212) 878-1840
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Minerals Technologies Reports Fourth Quarter 2023 Earnings Per Share of $1.22, or $1.28 Excluding Special Items, a Record for Current
Quarter
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The Company Reports Full Year 2023 Earnings of $2.58, Or $5.21 Per Share, Excluding Special Items, a Record Year for MTI
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•
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Record Fourth Quarter Revenue of $525 Million
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•
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Strong Cash Flow from Operations of $95 Million and Free Cash Flow of $73 Million
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•
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Increased Dividend and Initiated a New, 1-Year, $75M Share
Repurchase Program
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Full Year Highlights:
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•
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Record Revenue of $2.17 Billion
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Record EPS of $5.21, Excluding Special Items
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•
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Strong Cash Flow from Operations of $234 Million and Free Cash Flow of $140 Million
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Repaid $49 Million of Debt; Net Leverage Ratio at 1.9 Times EBITDA
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•
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Reorganized Around Core Technologies and End-Markets, and Announced 5-Year Financial Targets
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NEW YORK, February 1, 2024 – Minerals Technologies Inc. (NYSE: MTX) (“MTI” or “the Company”) today reported diluted earnings per share of $1.28 for the
fourth quarter ended December 31, 2023, excluding special items. Reported diluted earnings per share were $1.22.
For the full year 2023, The Company reported earnings per share of $5.21, excluding special items, compared with $4.88 in the prior year. Reported
earnings per share were $2.58.
“Our team delivered a record year of sales, operating income, and earnings per share in 2023. The realignment of our business segments with our key
markets and core technologies highlights our balanced portfolio of consumer and industrial businesses. It also drives organizational efficiencies that lead to higher levels of performance,” said Douglas T. Dietrich, Chairman and Chief Executive
Officer. “The combination of our leading business positions, continued margin expansion, and strong cash flow generation demonstrates the power of our business model.”
Fourth Quarter 2023
Worldwide net sales were $525 million, up 3 percent from the prior year. Underlying sales, excluding the deconsolidation of Barretts Minerals Inc. (BMI),
grew 6 percent. Reported operating income was $67 million. Operating income excluding special items was $69 million representing 13.2 percent of sales.
Cash flow from operations was $95 million and free cash flow was $73
million. The Company repurchased $14 million of shares in the quarter and repaid $28 million of debt.
Consumer & Specialties segment
sales were $281 million in the fourth quarter, up 3 percent over the prior year. Underlying sales, excluding the deconsolidation of BMI, grew 8 percent over the prior year.
Household & Personal Care sales were $134 million, up 13 percent from the prior year driven by continued strong demand for
our cat litter products as well as growth in other consumer-oriented products. Specialty Additives sales were $147 million, 5 percent below the prior year.
Underlying sales, excluding the deconsolidation of BMI, grew 3 percent over the prior year.
Segment operating income was $37 million, a significant improvement over the prior year driven by higher volumes in Household & Personal Care and
price-cost recovery. Operating margin excluding special items was 13.0 percent.
The Consumer & Specialties segment provides technologically enhanced products to consumer-driven end markets, including
mineral-to-market 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 $243
million in the fourth quarter, up 4 percent over the prior year.
High-Temperature Technologies sales were $182 million, up 7 percent from the prior year on strong demand in North America and higher volumes in Asia.
Environmental & Infrastructure sales were $61 million, 6 percent lower than the prior year, primarily due to commercial construction market conditions in North America.
Segment operating income was $37 million, up 16 percent from the prior year, driven by higher
sales in High-Temperature Technologies and a strong operating performance. Operating margin represented 15.1 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.
Full Year 2023
Worldwide net sales were $2.17 billion, up 2 percent from the prior year. Reported operating income was $172 million. Operating income excluding special
items was $280 million representing 12.9 percent of sales, 100 basis points above prior year.
Cash flow from operations was $234 million, more than double the prior year
and free cash flow improved significantly to $140 million. The Company repaid $49 million of debt and repurchased $14 million of shares. The Company’s balance sheet remains strong with a net leverage ratio of 1.9 times EBITDA.
Consumer & Specialties segment sales were
$1.16 billion, up 3 percent over the prior year.
Household & Personal Care sales were $518 million, up 9 percent mainly driven by strong demand for our cat litter products and growth in other
high-margin consumer-oriented products. Specialty Additives sales were $643 million, 1 percent below the prior year. Underlying sales, excluding the
deconsolidation of BMI, grew 1 percent over prior year.
Segment operating income was $141 million excluding special items, a significant improvement over the prior year driven by strong operating performance
and price-cost recovery across both product lines. Operating margin excluding special items was 12.2 percent, up 210 basis points over the prior year.
Engineered Solutions segment sales were $1.01
billion, up 1 percent over the prior year.
High-Temperature Technologies sales were $721 million, up 3 percent from the prior year driven by strong demand in North America market and volume growth
in Asia in the second half of the year. Environmental & Infrastructure sales were $289 million, 3 percent lower than the prior year due to weak commercial construction activity.
Segment operating income excluding special items was $151 million, 3 percent up from the prior year. Operating margin excluding special items was 15.0
percent of sales, up 30 basis points over prior year.
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Minerals Technologies will host a conference call
tomorrow, February 2, 2024, 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 February 2, 2024.
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FORWARD-LOOKING STATEMENTS
This press release may contain "forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of
1995. 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; risks and uncertainties related to the voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code
filed by our subsidiaries Barretts Minerals Inc. and Barretts Ventures Texas LLC; 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 $2.2 billion in 2023. For further information, please visit our website at www.mineralstech.com.
###
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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||||||||||||||||||||||||||||||||
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MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
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||||||||||||||||||||||||||||||||
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(in millions, except per share data)
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||||||||||||||||||||||||||||||||
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(unaudited)
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Quarter Ended
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% Growth
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Twelve Months Ended
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% Growth
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|||||||||||||||||||||||||||||
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Dec. 31,
2023
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Oct. 1,
2023
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Dec. 31,
2022
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Prior Qtr.
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Prior Year
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Dec. 31,
2023
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Dec. 31,
2022
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Prior Year
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Net sales
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$
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524.5
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$
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547.8
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$
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507.6
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(4
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)%
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3
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%
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$
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2,169.9
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$
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2,125.5
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2
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%
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||||||||||||||||
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Cost of goods sold
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399.2
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414.7
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409.9
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(4
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)%
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(3
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)%
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1,662.8
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1,660.5
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0
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%
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|||||||||||||||||||||
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Production margin
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125.3
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133.1
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97.7
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(6
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)%
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28
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%
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507.1
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465.0
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9
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%
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Marketing and administrative expenses
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51.0
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50.9
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48.5
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0
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%
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5
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%
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206.0
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192.1
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7
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%
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|||||||||||||||||||||
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Research and development expenses
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5.1
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5.2
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5.2
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(2
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)%
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(2
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)%
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21.2
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20.4
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4
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%
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Restructuring and other items, net
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0.0
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0.3
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0.0
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*
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*
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6.9
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0.0
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*
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||||||||||||||||||||||||
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Impairment of assets
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0.0
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71.7
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0.0
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*
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*
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71.7
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0.0
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*
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||||||||||||||||||||||||
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Acquisition-related expenses
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0.0
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0.0
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0.4
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*
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*
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0.3
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5.1
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(94
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)%
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|||||||||||||||||||||||
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Litigation expenses
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2.4
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12.9
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0.0
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(81
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)%
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*
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29.2
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32.6
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(10
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)%
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Income (loss) from operations
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66.8
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(7.9
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)
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43.6
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*
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53
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%
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171.8
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214.8
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(20
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)%
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|||||||||||||||||||||
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Interest expense, net
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(15.2
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)
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(15.3
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)
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(12.7
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)
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(1
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)%
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20
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%
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(59.2
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)
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(43.9
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)
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35
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%
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||||||||||||||||
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Debt extinguishment expenses
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0.0
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0.0
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0.0
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*
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*
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0.0
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(6.9
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)
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*
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|||||||||||||||||||||||
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Non-cash pension settlement charge
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0.0
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0.0
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(1.8
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)
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*
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*
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0.0
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(3.5
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)
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*
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||||||||||||||||||||||
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Other non-operating income (deductions), net
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(3.0
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)
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0.6
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(1.7
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)
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*
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*
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(4.9
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)
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(3.8
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)
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29
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%
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|||||||||||||||||||
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Total non-operating deductions, net
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(18.2
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)
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(14.7
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)
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(16.2
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)
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24
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%
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12
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%
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(64.1
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)
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(58.1
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)
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10
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%
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||||||||||||||||
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Income (loss) before tax and equity in earnings
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48.6
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(22.6
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)
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27.4
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*
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77
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%
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107.7
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156.7
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(31
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)%
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|||||||||||||||||||||
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Provision (benefit) for taxes on income
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9.2
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(3.5
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)
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6.3
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*
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46
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%
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23.7
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32.1
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(26
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)%
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|||||||||||||||||||||
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Equity in earnings of affiliates, net of tax
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1.4
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1.0
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0.3
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40
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%
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367
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%
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4.3
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1.7
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153
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%
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|||||||||||||||||||||
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Net income (loss)
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40.8
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(18.1
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)
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21.4
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*
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91
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%
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88.3
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126.3
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(30
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)%
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|||||||||||||||||||||
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Less: Net income attributable to non-controlling interests
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1.0
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1.1
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1.4
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(9
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)%
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(29
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)%
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4.2
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4.1
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2
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%
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|||||||||||||||||||||
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Net Income (loss) attributable to Minerals Technologies Inc. (MTI)
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$
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39.8
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$
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(19.2
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)
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$
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20.0
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*
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99
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%
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$
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84.1
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$
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122.2
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(31
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)%
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||||||||||||||||
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Weighted average number of common shares outstanding:
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||||||||||||||||||||||||||||||||
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Basic
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32.5
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32.5
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32.5
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32.5
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32.7
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|||||||||||||||||||||||||||
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Diluted
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32.5
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32.5
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32.5
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32.6
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32.8
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|||||||||||||||||||||||||||
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Earnings (loss) per share attributable to MTI:
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Basic
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$
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1.22
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$
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(0.59
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)
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$
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0.62
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*
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97
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%
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$
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2.59
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$
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3.74
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(31
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)%
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||||||||||||||||
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Diluted
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$
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1.22
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$
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(0.59
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)
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$
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0.62
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*
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97
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%
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$
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2.58
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$
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3.73
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(31
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)%
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||||||||||||||||
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Cash dividends declared per common share
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$
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0.10
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$
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0.05
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$
|
0.05
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$
|
0.25
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$
|
0.20
|
||||||||||||||||||||||
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* Percentage not meaningful
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||||||||||||||||||||||||||||||||
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MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
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|||||||||||||||||||||||||||
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NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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|||||||||||||||||||||||||||
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1
|
)
|
For comparative purposes, the quarterly periods ended December 31, 2023, October 1, 2023, and December 31, 2022 each consisted of 91 days, 91 days and
90 days, respectively. The twelve month periods ended December 31, 2023 and December 31, 2022 each consisted of 365 days, respectively.
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2
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)
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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.
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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.
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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.
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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.
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3
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)
|
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 December 31, 2023, October 1, 2023, and December 31, 2022, and the twelve month periods ended December 31, 2023 and December 31, 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
|
Twelve Months Ended
|
|||||||||||||||||||||||||
|
Dec. 31,
2023
|
Oct. 1,
2023
|
Dec. 31,
2022
|
Dec. 31,
2023
|
Dec. 31,
2022
|
|||||||||||||||||||||||
|
Net income (loss) attributable to MTI
|
$
|
39.8
|
$
|
(19.2
|
)
|
$
|
20.0
|
$
|
84.1
|
$
|
122.2
|
||||||||||||||||
|
% of sales
|
7.59
|
%
|
*
|
3.9
|
%
|
3.9
|
%
|
5.7
|
%
|
||||||||||||||||||
|
Special items:
|
|||||||||||||||||||||||||||
|
Restructuring and other items, net
|
0.0
|
0.3
|
0.0
|
6.9
|
0.0
|
||||||||||||||||||||||
|
Impairment of assets
|
0.0
|
71.7
|
0.0
|
71.7
|
0.0
|
||||||||||||||||||||||
|
Acquisition-related expenses
|
0.0
|
0.0
|
0.4
|
0.3
|
5.1
|
||||||||||||||||||||||
|
Litigation expenses
|
2.4
|
12.9
|
0.0
|
29.2
|
32.6
|
||||||||||||||||||||||
|
Debt extinguishment expenses
|
0.0
|
0.0
|
0.0
|
0.0
|
6.9
|
||||||||||||||||||||||
|
Non-cash pension settlement charge
|
0.0
|
0.0
|
1.8
|
0.0
|
3.5
|
||||||||||||||||||||||
|
Related tax effects on special items
|
(0.5
|
)
|
(17.2
|
)
|
(0.5
|
)
|
(22.3
|
)
|
(10.2
|
)
|
|||||||||||||||||
|
Net income attributable to MTI, excluding special items
|
$
|
41.7
|
$
|
48.5
|
$
|
21.7
|
$
|
169.9
|
$
|
160.1
|
|||||||||||||||||
|
% of sales
|
8.0
|
%
|
8.9
|
%
|
4.3
|
%
|
7.8
|
%
|
7.5
|
%
|
|||||||||||||||||
|
Diluted earnings per share, excluding special items
|
$
|
1.28
|
$
|
1.49
|
$
|
0.67
|
$
|
5.21
|
$
|
4.88
|
|||||||||||||||||
|
In the third quarter of 2023, the Company recorded a non-cash impairment of assets charge of $71.7 million associated with the Chapter 11 filing of
Barretts Minerals Inc. within the Consumer & Specialties segment.
|
|||||||||||||||||||||||||||
|
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 $6.9 million related to severance and other costs for the twelve months ended December 31, 2023.
|
|||||||||||||||||||||||||||
|
Included in litigation expenses for the twelve month periods ended December 31, 2023, the Company recorded incremental litigation costs of $29.2 million
to defend against, opportunistically settle, and restore our reserve for claims associated with certain talc products from our Barretts Minerals Inc. subsidiary. Included in litigation expenses for the twelve month periods ended December 31,
2022 are costs of $32.6 million, incurred to defend against, opportunistically settle, and establish a 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 December 31, 2023, October 1, 2023, and December 31, 2022, and the twelve month periods ended December 31, 2023 and December 31, 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
|
Twelve Months Ended
|
||||||||||||||||||||||||||
|
(millions of dollars)
|
Dec. 31,
2023
|
Oct. 1,
2023
|
Dec. 31,
2022
|
Dec. 31,
2023
|
Dec. 31,
2022
|
||||||||||||||||||||||
|
Cash flow from operations
|
$
|
95.3
|
$
|
59.1
|
$
|
42.3
|
$
|
233.6
|
$
|
105.9
|
|||||||||||||||||
|
Capital expenditures
|
22.5
|
25.1
|
22.9
|
93.5
|
82.3
|
||||||||||||||||||||||
|
Free cash flow
|
$
|
72.8
|
$
|
34.0
|
$
|
19.4
|
$
|
140.1
|
$
|
23.6
|
|||||||||||||||||
|
Depreciation, depletion and amortization expense
|
$
|
23.5
|
$
|
24.3
|
$
|
23.0
|
$
|
95.0
|
$
|
94.2
|
|||||||||||||||||
|
5
|
)
|
To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of the Company's year
over year sales growth, excluding the sales of Barretts Minerals Inc. for the three months ended December 31, 2022, constituting a reconciliation to GAAP sales growth set forth below. On October 2, 2023, Barretts Minerals Inc. filed for
relief under Chapter 11 of the U.S. Bankruptcy Code and as such the results of Barretts Minerals are not included the the Company's consolidated results for the fourth quarter of 2023. Barretts Minerals sales for the fourth quarter of 2022
were $12.0 million. The Company's management feels this non-GAAP measure provides meaningful supplemental information regarding its performance and facilitates investors' understanding of sales trends for the fourth quarter of 2023.
|
|||||||||||||||||||||||||
|
Quarter Ended December 31, 2023
|
Year Ended December 31, 2023
|
||||||||||||||||||||||||||
|
Sales
|
Impact of
|
|
Sales
|
Impact of
|
|
||||||||||||||||||||||
|
Year over Year Sales Growth
|
Growth
|
BMI Q4
|
Underlying
|
Growth
|
BMI Q4
|
Underlying
|
|||||||||||||||||||||
|
As Reported
|
Deconsolidation
|
Sales Growth
|
As Reported
|
Deconsolidation
|
Sales Growth
|
||||||||||||||||||||||
|
Specialty Additives
|
(5
|
)%
|
(8
|
)%
|
3
|
%
|
(1
|
)%
|
(2
|
)%
|
1
|
%
|
|||||||||||||||
|
Consumer & Specialties
|
3
|
%
|
(5
|
)%
|
8
|
%
|
3
|
%
|
(1
|
)%
|
4
|
%
|
|||||||||||||||
|
MTI Consolidated
|
3
|
%
|
(3
|
)%
|
6
|
%
|
2
|
%
|
(1
|
)%
|
3
|
%
|
|||||||||||||||
|
6
|
)
|
“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 December 31, 2023, October 1, 2023, and December 31, 2022, and the twelve month periods ended December 31,
2023 and December 31, 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
|
Twelve Months Ended
|
||||||||||||||||||||||||||
|
(millions of dollars)
|
Dec. 31,
2023
|
Oct. 1,
2023
|
Dec. 31,
2022
|
Dec. 31,
2023
|
Dec. 31,
2022
|
||||||||||||||||||||||
|
Net income (loss)
|
$
|
39.8
|
$
|
(19.2
|
)
|
$
|
20.0
|
$
|
84.1
|
$
|
122.2
|
||||||||||||||||
|
Add back:
|
|||||||||||||||||||||||||||
|
Depreciation, depletion and amortization
|
23.5
|
24.3
|
23.0
|
95.0
|
94.2
|
||||||||||||||||||||||
|
Interest expense, net
|
15.2
|
15.3
|
12.7
|
59.2
|
43.9
|
||||||||||||||||||||||
|
Equity in earnings of affiliates, net of tax
|
(1.4
|
)
|
(1.0
|
)
|
(0.3
|
)
|
(4.3
|
)
|
(1.7
|
)
|
|||||||||||||||||
|
Net income attributable to non-controlling interests
|
1.0
|
1.1
|
1.4
|
4.2
|
4.1
|
||||||||||||||||||||||
|
Provision (benefit) for taxes on income
|
9.2
|
(3.5
|
)
|
6.3
|
23.7
|
32.1
|
|||||||||||||||||||||
|
EBITDA
|
87.3
|
17.0
|
63.1
|
261.9
|
294.8
|
||||||||||||||||||||||
|
Add special items:
|
|||||||||||||||||||||||||||
|
Restructuring and other items, net
|
0.0
|
0.3
|
0.0
|
6.9
|
0.0
|
||||||||||||||||||||||
|
Impairment of assets
|
0.0
|
71.7
|
0.0
|
71.7
|
0.0
|
||||||||||||||||||||||
|
Acquisition-related expenses
|
0.0
|
0.0
|
0.4
|
0.3
|
5.1
|
||||||||||||||||||||||
|
Litigation expenses
|
2.4
|
12.9
|
0.0
|
29.2
|
32.6
|
||||||||||||||||||||||
|
Debt extinguishment expenses
|
0.0
|
0.0
|
0.0
|
0.0
|
6.9
|
||||||||||||||||||||||
|
Non-cash pension settlement charge
|
0.0
|
0.0
|
1.8
|
0.0
|
3.5
|
||||||||||||||||||||||
|
Adjusted EBITDA
|
$
|
89.7
|
$
|
101.9
|
$
|
65.3
|
$
|
370.0
|
$
|
342.9
|
|||||||||||||||||
|
% of sales
|
17.1
|
%
|
18.6
|
%
|
12.9
|
%
|
17.1
|
%
|
16.1
|
%
|
|||||||||||||||||
|
7
|
)
|
The following table reflects the components of non-operating income and deductions:
|
|||||||||||||||||||||||||
|
(millions of dollars)
|
Quarter Ended
|
Twelve Months Ended
|
|||||||||||||||||||||||||
|
Dec. 31,
2023
|
Oct. 1,
2023
|
Dec. 31,
2022
|
Dec. 31,
2023
|
Dec. 31,
2022
|
|||||||||||||||||||||||
|
Interest income
|
$
|
1.2
|
$
|
1.2
|
$
|
0.7
|
$
|
3.9
|
$
|
3.4
|
|||||||||||||||||
|
Interest expense
|
(16.4
|
)
|
(16.5
|
)
|
(13.4
|
)
|
(63.1
|
)
|
(47.3
|
)
|
|||||||||||||||||
|
Non-cash pension settlement charge
|
0.0
|
0.0
|
(1.8
|
)
|
0.0
|
(3.5
|
)
|
||||||||||||||||||||
|
Debt extinguishment expenses
|
0.0
|
0.0
|
0.0
|
0.0
|
(6.9
|
)
|
|||||||||||||||||||||
|
Foreign exchange gains (losses)
|
(0.6
|
)
|
1.8
|
(0.1
|
)
|
2.7
|
2.1
|
||||||||||||||||||||
|
Other deductions
|
(2.4
|
)
|
(1.2
|
)
|
(1.6
|
)
|
(7.6
|
)
|
(5.9
|
)
|
|||||||||||||||||
|
Non-operating deductions, net
|
$
|
(18.2
|
)
|
$
|
(14.7
|
)
|
$
|
(16.2
|
)
|
$
|
(64.1
|
)
|
$
|
(58.1
|
)
|
||||||||||||
|
Included in non-operating deductions for the three and twelve month periods ended December 31, 2022 are non-cash pension settlement charges associated
with some of our pension plans in the U.S of $1.8 million and $3.5 million, respectively. In addition, included in non-operating deductions for the twelve month periods ended December 31, 2022 are debt extinguishment expenses of $6.9 million
related to the refinancing of our credit facilities.
|
|||||||||||||||||||||||||||
|
8
|
)
|
The analyst conference call to discuss operating results for the fourth quarter is scheduled for Friday, February 2, 2024 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
|
Twelve Months Ended
|
% Growth
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
SALES DATA
|
Dec. 31,
2023
|
% of
Total Sales
|
Oct. 1,
2023
|
% of
Total Sales
|
Dec. 31,
2022
|
% of
Total Sales
|
Prior Qtr.
|
Prior Year
|
Dec. 31,
2023
|
% of
Total Sales
|
Dec. 31,
2022
|
% of
Total Sales
|
Prior Year
|
|||||||||||||||||||||||||||||||||||||||
|
United States
|
$
|
269.7
|
51
|
%
|
$
|
291.6
|
53
|
%
|
$
|
273.0
|
54
|
%
|
(8
|
)%
|
(1
|
)%
|
$
|
1,144.0
|
53
|
%
|
$
|
1,135.6
|
53
|
%
|
1
|
%
|
||||||||||||||||||||||||||
|
International
|
254.8
|
49
|
%
|
256.2
|
47
|
%
|
234.6
|
46
|
%
|
(1
|
)%
|
9
|
%
|
1,025.9
|
47
|
%
|
989.9
|
47
|
%
|
4
|
%
|
|||||||||||||||||||||||||||||||
|
Net Sales
|
$
|
524.5
|
100
|
%
|
$
|
547.8
|
100
|
%
|
$
|
507.6
|
100
|
%
|
(4
|
)%
|
3
|
%
|
$
|
2,169.9
|
100
|
%
|
$
|
2,125.5
|
100
|
%
|
2
|
%
|
||||||||||||||||||||||||||
|
Household & Personal Care
|
$
|
134.0
|
26
|
%
|
$
|
128.9
|
24
|
%
|
$
|
118.2
|
23
|
%
|
4
|
%
|
13
|
%
|
$
|
517.6
|
24
|
%
|
$
|
476.2
|
22
|
%
|
9
|
%
|
||||||||||||||||||||||||||
|
Specialty Additives
|
147.4
|
28
|
%
|
162.3
|
30
|
%
|
155.1
|
31
|
%
|
(9
|
)%
|
(5
|
)%
|
642.6
|
30
|
%
|
648.4
|
31
|
%
|
(1
|
)%
|
|||||||||||||||||||||||||||||||
|
Consumer & Specialties Segment
|
$
|
281.4
|
54
|
%
|
$
|
291.2
|
54
|
%
|
$
|
273.3
|
54
|
%
|
(3
|
)%
|
3
|
%
|
$
|
1,160.2
|
54
|
%
|
$
|
1,124.6
|
53
|
%
|
3
|
%
|
||||||||||||||||||||||||||
|
High-Temperature Technologies
|
$
|
182.3
|
35
|
%
|
$
|
177.4
|
32
|
%
|
$
|
169.8
|
33
|
%
|
3
|
%
|
7
|
%
|
$
|
720.9
|
33
|
%
|
$
|
702.5
|
33
|
%
|
3
|
%
|
||||||||||||||||||||||||||
|
Environmental & Infrastructure
|
60.8
|
11
|
%
|
79.2
|
14
|
%
|
64.5
|
13
|
%
|
(23
|
)%
|
(6
|
)%
|
288.8
|
13
|
%
|
298.4
|
14
|
%
|
(3
|
)%
|
|||||||||||||||||||||||||||||||
|
Engineered Solutions Segment
|
$
|
243.1
|
46
|
%
|
$
|
256.6
|
46
|
%
|
$
|
234.3
|
46
|
%
|
(5
|
)%
|
4
|
%
|
$
|
1,009.7
|
46
|
%
|
$
|
1,000.9
|
47
|
%
|
1
|
%
|
||||||||||||||||||||||||||
|
Net Sales
|
$
|
524.5
|
100
|
%
|
$
|
547.8
|
100
|
%
|
$
|
507.6
|
100
|
%
|
(4
|
)%
|
3
|
%
|
$
|
2,169.9
|
100
|
%
|
$
|
2,125.5
|
100
|
%
|
2
|
%
|
||||||||||||||||||||||||||
|
SUPPLEMENTARY DATA
|
||||||||||||||||||||||||||||||||
|
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
||||||||||||||||||||||||||||||||
|
(millions of dollars)
|
||||||||||||||||||||||||||||||||
|
(unaudited)
|
||||||||||||||||||||||||||||||||
|
Quarter Ended
|
% Growth
|
Twelve Months Ended
|
% Growth
|
|||||||||||||||||||||||||||||
|
Dec. 31,
2023
|
Oct. 1,
2023
|
Dec. 31,
2022
|
Prior
Qtr.
|
Prior
Year
|
Dec. 31,
2023
|
Dec. 31,
2022
|
Prior Year
|
|||||||||||||||||||||||||
|
SEGMENT OPERATING INCOME(LOSS) DATA
|
||||||||||||||||||||||||||||||||
|
Consumer & Specialties Segment
|
$
|
36.6
|
$
|
(46.6
|
)
|
$
|
16.4
|
*
|
123
|
%
|
$
|
41.6
|
$
|
79.0
|
(47
|
)%
|
||||||||||||||||
|
% of Sales
|
13.0
|
%
|
*
|
6.0
|
%
|
3.6
|
%
|
7.0
|
%
|
|||||||||||||||||||||||
|
Engineered Solutions Segment
|
$
|
36.7
|
$
|
40.6
|
$
|
31.7
|
(10
|
)%
|
16
|
%
|
$
|
147.8
|
$
|
147.1
|
0
|
%
|
||||||||||||||||
|
% of Sales
|
15.1
|
%
|
15.8
|
%
|
13.5
|
%
|
14.6
|
%
|
14.7
|
%
|
||||||||||||||||||||||
|
Unallocated and Other Corporate Expenses
|
$
|
(6.5
|
)
|
$
|
(1.9
|
)
|
$
|
(4.5
|
)
|
242
|
%
|
44
|
%
|
$
|
(17.6
|
)
|
$
|
(11.3
|
)
|
56
|
%
|
|||||||||||
|
Consolidated
|
$
|
66.8
|
$
|
(7.9
|
)
|
$
|
43.6
|
*
|
53
|
%
|
$
|
171.8
|
$
|
214.8
|
(20
|
)%
|
||||||||||||||||
|
% of Sales
|
12.7
|
%
|
*
|
8.6
|
%
|
7.9
|
%
|
10.1
|
%
|
|||||||||||||||||||||||
|
SPECIAL ITEMS
|
||||||||||||||||||||||||||||||||
|
Consumer & Specialties Segment
|
$
|
0.0
|
$
|
84.9
|
$
|
0.3
|
*
|
*
|
$
|
99.4
|
$
|
34.7
|
*
|
|||||||||||||||||||
|
Engineered Solutions Segment
|
$
|
0.0
|
$
|
0.0
|
$
|
0.0
|
*
|
*
|
$
|
3.2
|
$
|
0.0
|
*
|
|||||||||||||||||||
|
Unallocated and Other Corporate Expenses
|
$
|
2.4
|
$
|
0.0
|
$
|
0.1
|
*
|
*
|
$
|
5.5
|
$
|
3.0
|
*
|
|||||||||||||||||||
|
Consolidated
|
$
|
2.4
|
$
|
84.9
|
$
|
0.4
|
*
|
*
|
$
|
108.1
|
$
|
37.7
|
*
|
|||||||||||||||||||
|
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 December 31, 2023, October 1, 2023, and December 31, 2022, and the twelve month periods ended December 31, 2023 and
December 31, 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
|
Twelve Months Ended
|
% Growth
|
|||||||||||||||||||||||||||||
|
SEGMENT OPERATING INCOME,
|
Dec. 31,
2023
|
Oct. 1,
2023
|
Dec. 31,
2022
|
Prior Qtr.
|
Prior Year
|
Dec. 31,
2023
|
Dec. 31,
2022
|
Prior Year
|
||||||||||||||||||||||||
|
EXCLUDING SPECIAL ITEMS
|
||||||||||||||||||||||||||||||||
|
Consumer & Specialties Segment
|
$
|
36.6
|
$
|
38.3
|
$
|
16.7
|
(5
|
)%
|
119
|
%
|
$
|
141.0
|
$
|
113.7
|
24
|
%
|
||||||||||||||||
|
% of Sales
|
13.0
|
%
|
13.2
|
%
|
6.1
|
%
|
12.2
|
%
|
10.1
|
%
|
||||||||||||||||||||||
|
Engineered Solutions Segment
|
$
|
36.7
|
$
|
40.6
|
$
|
31.7
|
(10
|
)%
|
16
|
%
|
$
|
151.0
|
$
|
147.1
|
3
|
%
|
||||||||||||||||
|
% of Sales
|
15.1
|
%
|
15.8
|
%
|
13.5
|
%
|
15.0
|
%
|
14.7
|
%
|
||||||||||||||||||||||
|
Unallocated Corporate Expenses
|
$
|
(4.1
|
)
|
$
|
(1.9
|
)
|
$
|
(4.4
|
)
|
116
|
%
|
(7
|
)%
|
$
|
(12.1
|
)
|
$
|
(8.3
|
)
|
(46
|
)%
|
|||||||||||
|
Consolidated
|
$
|
69.2
|
$
|
77.0
|
$
|
44.0
|
(10
|
)%
|
57
|
%
|
$
|
279.9
|
$
|
252.5
|
11
|
%
|
||||||||||||||||
|
% of Sales
|
13.2
|
%
|
14.1
|
%
|
8.7
|
%
|
12.9
|
%
|
11.9
|
%
|
||||||||||||||||||||||
|
* Percentage not meaningful
|
||||||||||||||||||||||||||||||||
|
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||
|
ASSETS
|
||||||||||
|
(In Millions of Dollars)
|
||||||||||
|
December 31,
|
December 31,
|
|||||||||
|
2023
|
*
|
2022
|
**
|
|||||||
|
Current assets:
|
||||||||||
|
Cash & cash equivalents
|
$
|
317.2
|
$
|
247.2
|
||||||
|
Short-term investments
|
4.3
|
5.6
|
||||||||
|
Accounts receivable, net
|
399.1
|
404.0
|
||||||||
| Inventories |
325.4 |
348.8 |
||||||||
|
Prepaid expenses and other current assets
|
53.0
|
64.9
|
||||||||
|
Total current assets
|
1,099.0
|
1,070.5
|
||||||||
|
Property, plant and equipment
|
2,190.1
|
2,288.6
|
||||||||
|
Less accumulated depreciation
|
1,203.3
|
1,238.2
|
||||||||
|
Net property, plant & equipment
|
986.8
|
1,050.4
|
||||||||
| Goodwill | 913.6 |
914.8 |
||||||||
|
Intangible assets
|
231.0
|
241.9
|
||||||||
|
Other assets and deferred charges
|
116.2
|
124.0
|
||||||||
|
Total assets
|
$
|
3,346.6
|
$
|
3,401.6
|
||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||
|
Current liabilities:
|
||||||||||
|
Short-term debt
|
$
|
85.4
|
$
|
119.7
|
||||||
|
Current maturities of long-term debt
|
18.0
|
14.5
|
||||||||
|
Accounts payable
|
188.7
|
193.8
|
||||||||
|
Other current liabilities
|
165.2
|
174.6
|
||||||||
|
Total current liabilities
|
457.3
|
502.6
|
||||||||
|
Long-term debt
|
911.1
|
928.1
|
||||||||
|
Deferred income taxes
|
139.3
|
180.4
|
||||||||
|
Other non-current liabilities
|
152.2
|
177.3
|
||||||||
|
Total liabilities
|
1,659.9
|
1,788.4
|
||||||||
|
Total MTI shareholders' equity
|
1,652.0
|
1,579.5
|
||||||||
|
Non-controlling Interests
|
34.7
|
33.7
|
||||||||
|
Total shareholders' equity
|
1,686.7
|
1,613.2
|
||||||||
|
Total liabilities and shareholders' equity
|
$
|
3,346.6
|
$
|
3,401.6
|
||||||
|
*
|
Unaudited |
|||||||||
|
**
|
Condensed from audited financial statements. | |||||||||