Minerals Technologies Reports Third Quarter Earnings of $1.18 Per Share, or $1.27 Per Share, Excluding Special Items
Highlights:
- Sales Increase 9 Percent to
$464.1 Million - Earnings Per Share, Excluding Special Items, Up 7 Percent
- Sequential Operating Margin Improvement Across All Segments
- Productivity Improvement of 6 Percent
- Debt Reduction of
$30 Million in the Third Quarter
“We had a solid third quarter, executing on a number of fronts to position MTI for continued profitable growth,” said
Worldwide net sales increased 9 percent to
Segment Information
Performance Materials and Specialty Minerals
Sales in the Minerals businesses, which include the Performance Materials and Specialty Minerals segments, grew 9 percent in the third quarter to
Performance Materials segment sales increased 16 percent to
Specialty Minerals segment sales, which consist of the Precipitated Calcium Carbonate (PCC) and Processed Minerals product lines, decreased 1 percent to
Worldwide sales of PCC, which is used mainly in the manufacturing processes of the paper industry, decreased 2 percent to
Sales of Processed Minerals products increased 4 percent to
Refractories and Energy Services
Sales in the Service businesses, which include the Refractories and Energy Services segments, grew 12 percent in the third quarter to
Refractories segment sales increased 15 percent to
Energy Services segment sales increased 1 percent to
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FORWARD-LOOKING STATEMENTS
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which describe or are based on current expectations. Actual results may differ materially from these expectations. In addition, any statements that are not historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this document should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned in the risk factors and other cautionary statements in our 2017 Annual Report on Form 10-K and in our other reports filed with the
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | |||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
Quarter Ended | % Growth | Nine Months Ended | % Growth | ||||||||||||||||||||||
Sept. 30 | Jul. 1 | Oct. 1 | Sept. 30 | Oct. 1 | |||||||||||||||||||||
2018 | 2018 | 2017 | Prior Qtr | Prior Year | 2018 | 2017 | Prior Year | ||||||||||||||||||
Net sales | |||||||||||||||||||||||||
Product sales | $ | 444.9 | $ | 445.0 | $ | 405.4 | (0 | )% | 10 | % | $ | 1,302.1 | $ | 1,187.9 | 10 | % | |||||||||
Service revenue | 19.2 | 19.7 | 19.0 | (3 | )% | 1 | % | 58.0 | 55.6 | 4 | % | ||||||||||||||
Total net sales | 464.1 | 464.7 | 424.4 | (0 | )% | 9 | % | 1,360.1 | 1,243.5 | 9 | % | ||||||||||||||
Cost of sales | |||||||||||||||||||||||||
Cost of goods sold | 332.1 | 335.3 | 293.0 | (1 | )% | 13 | % | 972.4 | 854.7 | 14 | % | ||||||||||||||
Cost of service revenue | 12.8 | 13.5 | 12.2 | (5 | )% | 5 | % | 39.1 | 36.2 | 8 | % | ||||||||||||||
Total cost of sales | 344.9 | 348.8 | 305.2 | (1 | )% | 13 | % | 1,011.5 | 890.9 | 14 | % | ||||||||||||||
Production margin | 119.2 | 115.9 | 119.2 | 3 | % | 0 | % | 348.6 | 352.6 | (1 | )% | ||||||||||||||
Marketing and administrative expenses | 45.4 | 45.3 | 45.2 | 0 | % | 0 | % | 135.1 | 132.8 | 2 | % | ||||||||||||||
Research and development expenses | 5.0 | 6.4 | 5.9 | (22 | )% | (15 | )% | 17.5 | 17.8 | (2 | )% | ||||||||||||||
Acquisition-related transaction and integration costs | 0.3 | 1.0 | 0.5 | (70 | )% | (40 | )% | 1.7 | 2.8 | (39 | )% | ||||||||||||||
Restructuring and other items, net | 0.3 | 0.4 | 0.4 | * | (25 | )% | 0.7 | 0.9 | (22 | )% | |||||||||||||||
Income from operations | 68.2 | 62.8 | 67.2 | 9 | % | 1 | % | 193.6 | 198.3 | (2 | )% | ||||||||||||||
Interest expense, net | (11.7 | ) | (11.5 | ) | (10.5 | ) | 2 | % | 11 | % | (33.9 | ) | (32.5 | ) | 4 | % | |||||||||
Debt modification costs and fees | 0.0 | 0.0 | 0.0 | * | * | 0.0 | (3.9 | ) | * | ||||||||||||||||
Non-cash pension settlement costs | (3.6 | ) | 0.0 | 0.0 | * | * | (3.6 | ) | 0.0 | * | |||||||||||||||
Other non-operating income (deductions), net | (0.9 | ) | 3.1 | (2.1 | ) | * | * | (0.5 | ) | (4.7 | ) | * | |||||||||||||
Total non-operating deductions, net | (16.2 | ) | (8.4 | ) | (12.6 | ) | 93 | % | 29 | % | (38.0 | ) | (41.1 | ) | (8 | )% | |||||||||
Income before tax and equity in earnings | 52.0 | 54.4 | 54.6 | (4 | )% | (5 | )% | 155.6 | 157.2 | (1 | )% | ||||||||||||||
Provision for taxes on income | 9.7 | 10.3 | 12.1 | (6 | )% | (20 | )% | 29.3 | 35.6 | (18 | )% | ||||||||||||||
Equity in earnings of affiliates, net of tax | 0.6 | 1.1 | 0.4 | (45 | )% | * | 2.9 | 0.7 | * | ||||||||||||||||
Consolidated net income | 42.9 | 45.2 | 42.9 | (5 | )% | 0 | % | 129.2 | 122.3 | 6 | % | ||||||||||||||
Less: Net income attributable to non-controlling interests | 1.0 | 1.1 | 1.2 | (9 | )% | (17 | )% | 3.3 | 3.0 | 10 | % | ||||||||||||||
Net Income attributable to Minerals Technologies Inc. (MTI) | $ | 41.9 | $ | 44.1 | $ | 41.7 | (5 | )% | 0 | % | $ | 125.9 | $ | 119.3 | 6 | % | |||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||||
Basic | 35.3 | 35.3 | 35.3 | 35.3 | 35.1 | ||||||||||||||||||||
Diluted | 35.6 | 35.6 | 35.6 | 35.6 | 35.6 | ||||||||||||||||||||
Earnings per share attributable to MTI: | |||||||||||||||||||||||||
Basic | $ | 1.19 | $ | 1.25 | $ | 1.18 | (5 | )% | 1 | % | $ | 3.57 | $ | 3.40 | 5 | % | |||||||||
Diluted | $ | 1.18 | $ | 1.24 | $ | 1.17 | (5 | )% | 1 | % | $ | 3.54 | $ | 3.35 | 6 | % | |||||||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0.15 | |||||||||||||||
* Percentage not meaningful | |||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | |||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
1) | For comparative purposes, the quarterly periods ended September 30, 2018, July 1, 2018 and October 1, 2017 each consisted of 91 days. The nine month periods ended September 30, 2018 and October 1, 2017 consisted of 273 days and 274 days, respectively. | ||||||||||||||||||
2) | 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 September 30, 2018, July 1, 2018 and October 1, 2017 and the nine month periods ended September 30, 2018 and October 1, 2017 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 | Nine Months Ended | |||||||||||||||||
Sept. 30 | Jul. 1 | Oct. 1 | Sept. 30 | Oct. 1 | |||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
Income from continuing operations attributable to MTI | $ | 41.9 | $ | 44.1 | $ | 41.7 | $ | 125.9 | $ | 119.3 | |||||||||
% of sales | 9.0 | % | 9.5 | % | 9.8 | % | 9.3 | % | 9.6 | % | |||||||||
Special items: | |||||||||||||||||||
Acquisition-related transaction and integration costs | 0.3 | 1.0 | 0.5 | 1.7 | 2.8 | ||||||||||||||
Debt modification costs and fees | 0.0 | 0.0 | 0.0 | 0.0 | 3.9 | ||||||||||||||
Restructuring and other items, net | 0.3 | 0.4 | 0.4 | 0.7 | 0.9 | ||||||||||||||
Non-cash inventory step-up charges | 0.0 | 0.5 | 0.0 | 0.5 | 0.0 | ||||||||||||||
Non-cash pension settlement charge | 3.6 | 0.0 | 0.0 | 3.6 | 0.0 | ||||||||||||||
Related tax effects on special items | (1.0 | ) | (0.5 | ) | (0.3 | ) | (1.6 | ) | (2.9 | ) | |||||||||
Income from continuing operations attributable to MTI, excluding special items | $ | 45.1 | $ | 45.5 | $ | 42.3 | $ | 130.8 | $ | 124.0 | |||||||||
% of sales | 9.7 | % | 9.8 | % | 10.0 | % | 9.6 | % | 10.0 | % | |||||||||
Diluted earnings per share, excluding special items | $ | 1.27 | $ | 1.28 | $ | 1.19 | $ | 3.67 | $ | 3.48 | |||||||||
3) | Free cash flow is defined as cash flow from continuing operations less capital expenditures. The following is a presentation of the Company's non-GAAP free cash flow for the quarterly periods ended September 30, 2018, July 1, 2018 and October 1, 2017 and the nine month periods ended September 30, 2018 and October 1, 2017 and a reconciliation to cash flow from operations for such periods. The Company's management believes this non-GAAP measure provides meaningful supplemental information as management uses this measure to evaluate the Company's ability to maintain capital assets, satisfy current and future obligations, repurchase stock, pay dividends and fund future business opportunities. Free cash flow is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure. The Company's definition of free cash flow may not be comparable to similarly titled measures reported by other companies. | ||||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||||
(millions of dollars) | Sept. 30 | Jul. 1 | Oct. 1 | Sept. 30 | Oct. 1 | ||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
Cash flow from continuing operations | $ | 53.2 | $ | 44.5 | $ | 73.0 | $ | 133.4 | $ | 150.6 | |||||||||
Capital expenditures | 14.3 | 24.2 | 20.7 | 56.4 | 54.2 | ||||||||||||||
Free cash flow | $ | 38.9 | $ | 20.3 | $ | 52.3 | $ | 77.0 | $ | 96.4 | |||||||||
4) | The following table reflects the components of non-operating income and deductions: | ||||||||||||||||||
(millions of dollars) | Quarter Ended | Nine Months Ended | |||||||||||||||||
Sept. 30 | Jul. 1 | Oct. 1 | Sept. 30 | Oct. 1 | |||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
Interest income | $ | 0.5 | $ | 0.5 | $ | 0.6 | $ | 1.5 | $ | 1.6 | |||||||||
Interest expense | (12.2 | ) | (12.0 | ) | (11.1 | ) | (35.4 | ) | (34.1 | ) | |||||||||
Debt modification costs and fees | 0.0 | 0.0 | 0.0 | 0.0 | (3.9 | ) | |||||||||||||
Non-cash pension settlement costs | (3.6 | ) | 0.0 | 0.0 | (3.6 | ) | 0.0 | ||||||||||||
Foreign exchange gains (losses) | 1.0 | 4.9 | (0.2 | ) | 5.2 | 0.4 | |||||||||||||
Other deductions | (1.9 | ) | (1.8 | ) | (1.9 | ) | (5.7 | ) | (5.1 | ) | |||||||||
Non-operating deductions, net | $ | (16.2 | ) | $ | (8.4 | ) | $ | (12.6 | ) | $ | (38.0 | ) | $ | (41.1 | ) | ||||
On January 1, 2018, the Company adopted the provisions of ASU 2017-07, "Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". As a result of this accounting change, the Company reclassified approximately $0.4 million and $1.3 million from Marketing and administrative expense to other deductions for the three months and nine months ended October 1, 2017, respectively, to conform to current year presentation. | |||||||||||||||||||
Included in non-operating deductions for the three-month and nine month periods ended September 30, 2018 are non-cash pension settlement costs of $3.6 million, respectively, associated with some of our pension plans in the U.S. | |||||||||||||||||||
5) | The analyst conference call to discuss operating results for the third quarter is scheduled for Friday, November 2, 2018 at 11:00 am E.T. and will be broadcast over the Company's website (www.mineralstech.com). The broadcast will remain on the Company's website for no less than one year. | ||||||||||||||||||
SUPPLEMENTARY DATA | ||||||||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | ||||||||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||
Quarter Ended | % Growth | Nine Months Ended | % Growth | |||||||||||||||||||||||||||
SALES DATA | Sept. 30 | % of | Jul. 1 | % of | Oct. 1 | % of | Sept. 30 | % of | Oct. 1 | % of | ||||||||||||||||||||
2018 | Total Sales | 2018 | Total Sales | 2017 | Total Sales | Prior Qtr | Prior Year | 2018 | Total Sales | 2017 | Total Sales | Prior Year | ||||||||||||||||||
United States | $ | 244.9 | 53 | % | $ | 249.0 | 54 | % | $ | 243.6 | 57 | % | (2 | )% | 1 | % | $ | 726.2 | 53 | % | $ | 705.1 | 57 | % | 3 | % | ||||
International | 219.2 | 47 | % | 215.7 | 46 | % | 180.8 | 43 | % | 2 | % | 21 | % | 633.9 | 47 | % | 538.4 | 43 | % | 18 | % | |||||||||
Net Sales | $ | 464.1 | 100 | % | $ | 464.7 | 100 | % | $ | 424.4 | 100 | % | (0 | )% | 9 | % | $ | 1,360.1 | 100 | % | $ | 1,243.5 | 100 | % | 9 | % | ||||
Metalcasting | $ | 77.8 | 17 | % | $ | 88.8 | 19 | % | $ | 73.6 | 17 | % | (12 | )% | 6 | % | $ | 245.8 | 18 | % | $ | 215.9 | 17 | % | 14 | % | ||||
Household, Personal Care & Specialty Products | 71.9 | 15 | % | 58.6 | 13 | % | 42.5 | 10 | % | 23 | % | 69 | % | 179.2 | 13 | % | 123.3 | 10 | % | 45 | % | |||||||||
Environmental Products | 26.3 | 6 | % | 25.2 | 5 | % | 21.6 | 5 | % | 4 | % | 22 | % | 64.2 | 5 | % | 51.8 | 4 | % | 24 | % | |||||||||
Building Materials | 18.0 | 4 | % | 18.0 | 4 | % | 19.9 | 5 | % | 0 | % | (10 | )% | 54.9 | 4 | % | 57.5 | 5 | % | (5 | )% | |||||||||
Basic Minerals | 25.5 | 5 | % | 23.9 | 5 | % | 31.2 | 7 | % | 7 | % | (18 | )% | 77.2 | 6 | % | 90.5 | 7 | % | (15 | )% | |||||||||
Performance Materials Segment | $ | 219.5 | 47 | % | $ | 214.5 | 46 | % | $ | 188.8 | 44 | % | 2 | % | 16 | % | $ | 621.3 | 46 | % | $ | 539.0 | 43 | % | 15 | % | ||||
Paper PCC | $ | 93.1 | 20 | % | $ | 94.5 | 20 | % | $ | 96.3 | 23 | % | (1 | )% | (3 | )% | $ | 284.6 | 21 | % | $ | 282.0 | 23 | % | 1 | % | ||||
Specialty PCC | 16.9 | 4 | % | 17.3 | 4 | % | 16.4 | 4 | % | (2 | )% | 3 | % | 51.2 | 4 | % | 50.8 | 4 | % | 1 | % | |||||||||
PCC Products | $ | 110.0 | 24 | % | $ | 111.8 | 24 | % | $ | 112.7 | 27 | % | (2 | )% | (2 | )% | $ | 335.8 | 25 | % | $ | 332.8 | 27 | % | 1 | % | ||||
Ground Calcium Carbonate | $ | 23.0 | 5 | % | $ | 25.2 | 5 | % | $ | 22.3 | 5 | % | (9 | )% | 3 | % | $ | 70.7 | 5 | % | $ | 67.1 | 5 | % | 5 | % | ||||
Talc | 13.3 | 3 | % | 13.9 | 3 | % | 12.7 | 3 | % | (4 | )% | 5 | % | 40.3 | 3 | % | 41.0 | 3 | % | (2 | )% | |||||||||
Processed Minerals Products | $ | 36.3 | 8 | % | $ | 39.1 | 8 | % | $ | 35.0 | 8 | % | (7 | )% | 4 | % | $ | 111.0 | 8 | % | $ | 108.1 | 9 | % | 3 | % | ||||
Specialty Minerals Segment | $ | 146.3 | 32 | % | $ | 150.9 | 32 | % | $ | 147.7 | 35 | % | (3 | )% | (1 | )% | $ | 446.8 | 33 | % | $ | 440.9 | 35 | % | 1 | % | ||||
Total Minerals Businesses | $ | 365.8 | 79 | % | $ | 365.4 | 79 | % | $ | 336.5 | 79 | % | 0 | % | 9 | % | $ | 1,068.1 | 79 | % | $ | 979.9 | 79 | % | 9 | % | ||||
Refractory Products | $ | 66.7 | 14 | % | $ | 66.7 | 14 | % | $ | 56.6 | 13 | % | 0 | % | 18 | % | $ | 195.7 | 14 | % | $ | 169.4 | 14 | % | 16 | % | ||||
Metallurgical Products | 12.4 | 3 | % | 12.9 | 3 | % | 12.3 | 3 | % | (4 | )% | 1 | % | 38.3 | 3 | % | 38.6 | 3 | % | (1 | )% | |||||||||
Refractories Segment | $ | 79.1 | 17 | % | $ | 79.6 | 17 | % | $ | 68.9 | 16 | % | (1 | )% | 15 | % | $ | 234.0 | 17 | % | $ | 208.0 | 17 | % | 13 | % | ||||
Energy Services Segment | $ | 19.2 | 4 | % | $ | 19.7 | 4 | % | $ | 19.0 | 4 | % | (3 | )% | 1 | % | $ | 58.0 | 4 | % | $ | 55.6 | 4 | % | 4 | % | ||||
Total Service Businesses | $ | 98.3 | 21 | % | $ | 99.3 | 21 | % | $ | 87.9 | 21 | % | (1 | )% | 12 | % | $ | 292.0 | 21 | % | $ | 263.6 | 21 | % | 11 | % | ||||
Net Sales | $ | 464.1 | 100 | % | $ | 464.7 | 100 | % | $ | 424.4 | 100 | % | (0 | )% | 9 | % | $ | 1,360.1 | 100 | % | $ | 1,243.5 | 100 | % | 9 | % | ||||
SUPPLEMENTARY DATA | |||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
Quarter Ended | % Growth | Nine Months Ended | % Growth | ||||||||||||||||||||||
Sept. 30 | Jul. 1 | Oct. 1 | Sept. 30 | Oct. 1 | |||||||||||||||||||||
SEGMENT OPERATING INCOME DATA | 2018 | 2018 | 2017 | Prior Qtr | Prior Year | 2018 | 2017 | Prior Year | |||||||||||||||||
Performance Materials Segment | $ | 31.8 | $ | 29.6 | $ | 30.6 | 7 | % | 4 | % | $ | 87.6 | $ | 91.6 | (4 | )% | |||||||||
% of Sales | 14.5 | % | 13.8 | % | 16.2 | % | 14.1 | % | 17.0 | % | |||||||||||||||
Specialty Minerals Segment | $ | 25.0 | $ | 25.1 | $ | 26.6 | (0 | )% | (6 | )% | $ | 74.2 | $ | 77.9 | (5 | )% | |||||||||
% of Sales | 17.1 | % | 16.6 | % | 18.0 | % | 16.6 | % | 17.7 | % | |||||||||||||||
Total Minerals Businesses | $ | 56.8 | $ | 54.7 | $ | 57.2 | 4 | % | (1 | )% | $ | 161.8 | $ | 169.5 | (5 | )% | |||||||||
% of Sales | 15.5 | % | 15.0 | % | 17.0 | % | 15.1 | % | 17.3 | % | |||||||||||||||
Refractories Segment | $ | 11.5 | $ | 10.3 | $ | 9.9 | 12 | % | 16 | % | $ | 34.6 | $ | 29.6 | 17 | % | |||||||||
% of Sales | 14.5 | % | 12.9 | % | 14.4 | % | 14.8 | % | 14.2 | % | |||||||||||||||
Energy Services Segment | $ | 1.1 | $ | 0.7 | $ | 2.3 | 57 | % | (52 | )% | $ | 3.3 | $ | 4.8 | (31 | )% | |||||||||
% of Sales | 5.7 | % | 3.6 | % | 12.1 | % | 5.7 | % | 8.6 | % | |||||||||||||||
Total Service Businesses | $ | 12.6 | $ | 11.0 | $ | 12.2 | 15 | % | 3 | % | $ | 37.9 | $ | 34.4 | 10 | % | |||||||||
% of Sales | 12.8 | % | 11.1 | % | 13.9 | % | 13.0 | % | 13.1 | % | |||||||||||||||
Unallocated Corporate Expenses | $ | (0.9 | ) | $ | (1.9 | ) | $ | (1.7 | ) | 53 | % | 47 | % | $ | (4.4 | ) | $ | (2.8 | ) | (57 | )% | ||||
Acquisition-related transaction costs | $ | (0.3 | ) | $ | (1.0 | ) | $ | (0.5 | ) | 70 | % | (40 | )% | $ | (1.7 | ) | $ | (2.8 | ) | 39 | % | ||||
Consolidated | $ | 68.2 | $ | 62.8 | $ | 67.2 | 9 | % | 1 | % | $ | 193.6 | $ | 198.3 | (2 | )% | |||||||||
% of Sales | 14.7 | % | 13.5 | % | 15.8 | % | 14.2 | % | 15.9 | % | |||||||||||||||
SPECIAL ITEMS | |||||||||||||||||||||||||
Performance Materials Segment | $ | 0.0 | $ | 0.5 | $ | 0.0 | * | * | $ | 0.5 | $ | 0.0 | * | ||||||||||||
Specialty Minerals Segment | $ | 0.0 | $ | 0.0 | $ | 0.0 | * | * | $ | 0.0 | $ | 0.0 | * | ||||||||||||
Total Minerals Businesses | $ | 0.0 | $ | 0.5 | $ | 0.0 | * | * | $ | 0.5 | $ | 0.0 | * | ||||||||||||
Refractories Segment | $ | 0.0 | $ | 0.0 | $ | 0.0 | * | * | $ | 0.0 | $ | 0.0 | * | ||||||||||||
Energy Services Segment | $ | 0.3 | $ | 0.4 | $ | (0.7 | ) | * | * | $ | 0.7 | $ | (0.2 | ) | * | ||||||||||
Total Service Businesses | $ | 0.3 | $ | 0.4 | $ | (0.7 | ) | * | * | $ | 0.7 | $ | (0.2 | ) | * | ||||||||||
Unallocated and Other Corporate Expenses | $ | 0.0 | $ | 0.0 | $ | 1.1 | * | * | $ | 0.0 | $ | 1.1 | * | ||||||||||||
Acquisition related transaction costs | $ | 0.3 | $ | 1.0 | $ | 0.5 | (70 | )% | (40 | )% | $ | 1.7 | $ | 2.8 | (39 | )% | |||||||||
Consolidated | $ | 0.6 | $ | 1.9 | $ | 0.9 | (68 | )% | (33 | )% | $ | 2.9 | $ | 3.7 | (22 | )% | |||||||||
To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of the Company's non-GAAP operating income, excluding special items (acquisition-related transaction costs set forth in the above table), for the quarterly periods ended September 30, 2018, July 1, 2018 and October 1, 2017, and the nine month periods ended September 30, 2018 and October 1, 2017 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 | Nine Months Ended | % Growth | ||||||||||||||||||||||
SEGMENT OPERATING INCOME, | Sept. 30 | Jul. 1 | Oct. 1 | Sept. 30 | Oct. 1 | ||||||||||||||||||||
EXCLUDING SPECIAL ITEMS | 2018 | 2018 | 2017 | Prior Qtr | Prior Year | 2018 | 2017 | Prior Year | |||||||||||||||||
Performance Materials Segment | $ | 31.8 | $ | 30.1 | $ | 30.6 | 6 | % | 4 | % | $ | 88.1 | $ | 91.6 | (4 | )% | |||||||||
% of Sales | 14.5 | % | 14.0 | % | 16.2 | % | 14.2 | % | 17.0 | % | |||||||||||||||
Specialty Minerals Segment | $ | 25.0 | $ | 25.1 | $ | 26.6 | (0 | )% | (6 | )% | $ | 74.2 | $ | 77.9 | (5 | )% | |||||||||
% of Sales | 17.1 | % | 16.6 | % | 18.0 | % | 16.6 | % | 17.7 | % | |||||||||||||||
Total Minerals Businesses | $ | 56.8 | $ | 55.2 | $ | 57.2 | 3 | % | (1 | )% | $ | 162.3 | $ | 169.5 | (4 | )% | |||||||||
% of Sales | 15.5 | % | 15.1 | % | 17.0 | % | 15.2 | % | 17.3 | % | |||||||||||||||
Refractories Segment | $ | 11.5 | $ | 10.3 | $ | 9.9 | 12 | % | 16 | % | $ | 34.6 | $ | 29.6 | 17 | % | |||||||||
% of Sales | 14.5 | % | 12.9 | % | 14.4 | % | 14.8 | % | 14.2 | % | |||||||||||||||
Energy Services Segment | $ | 1.4 | $ | 1.1 | $ | 1.6 | 27 | % | (13 | )% | $ | 4.0 | $ | 4.6 | (13 | )% | |||||||||
% of Sales | 7.3 | % | 5.6 | % | 8.4 | % | 6.9 | % | 8.3 | % | |||||||||||||||
Total Service Businesses | $ | 12.9 | $ | 11.4 | $ | 11.5 | 13 | % | 12 | % | $ | 38.6 | $ | 34.2 | 13 | % | |||||||||
% of Sales | 13.1 | % | 11.5 | % | 13.1 | % | 13.2 | % | 13.0 | % | |||||||||||||||
Unallocated Corporate Expenses | $ | (0.9 | ) | $ | (1.9 | ) | $ | (0.6 | ) | 53 | % | (50 | )% | $ | (4.4 | ) | $ | (1.7 | ) | (159 | )% | ||||
Consolidated | $ | 68.8 | $ | 64.7 | $ | 68.1 | 6 | % | 1 | % | $ | 196.5 | $ | 202.0 | (3 | )% | |||||||||
% of Sales | 14.8 | % | 13.9 | % | 16.0 | % | 14.4 | % | 16.2 | % | |||||||||||||||
* Percentage not meaningful | |||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
ASSETS | ||||
(in millions of dollars) | ||||
September 30, | December 31, | |||
2018* | 2017** | |||
Current assets: | ||||
Cash & cash equivalents | $ | 206.9 | $ | 212.2 |
Short-term investments | 4.3 | 2.7 | ||
Accounts receivable, net | 410.5 | 383.0 | ||
Inventories | 243.4 | 219.3 | ||
Prepaid expenses and other current assets | 38.5 | 35.0 | ||
Total current assets | 903.6 | 852.2 | ||
Property, plant and equipment | 2,254.5 | 2,219.6 | ||
Less accumulated depreciation | 1,148.1 | 1,158.3 | ||
Net property, plant & equipment | 1,106.4 | 1,061.3 | ||
Goodwill | 808.1 | 779.3 | ||
Intangible assets | 210.3 | 196.5 | ||
Other assets and deferred charges | 84.1 | 81.1 | ||
Total assets | $ | 3,112.5 | $ | 2,970.4 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Short-term debt | $ | 108.3 | $ | 6.3 |
Current maturities of long-term debt | 3.0 | 3.8 | ||
Accounts payable | 184.7 | 179.0 | ||
Other current liabilities | 124.0 | 120.9 | ||
Total current liabilities | 420.0 | 310.0 | ||
Long-term debt | 946.1 | 959.8 | ||
Deferred income taxes | 164.5 | 159.4 | ||
Other non-current liabilities | 240.3 | 262.1 | ||
Total liabilities | 1,770.9 | 1,691.3 | ||
Total MTI shareholders' equity | 1,310.2 | 1,251.7 | ||
Non-controlling Interests | 31.4 | 27.4 | ||
Total shareholders' equity | 1,341.6 | 1,279.1 | ||
Total liabilities and shareholders' equity | $ | 3,112.5 | $ | 2,970.4 |
* Unaudited | ||||
** Condensed from audited financial statements. |
Contact:
(212) 878-1831
Source: Minerals Technologies Inc.