DELAWARE | 25-1190717 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of exchange on which registered |
Common Stock, $0.10 par value | MTX | New York Stock Exchange |
YES ☒ | NO ☐ |
YES ☒ | NO ☐ |
Large Accelerated Filer ☒ | Accelerated Filer ☐ |
Non-accelerated Filer ☐ (Do not check if a smaller reporting company) | Smaller Reporting Company ☐ |
Emerging Growth Company ☐ |
YES ☐ | NO ☒ |
Page No. | ||
PART I. FINANCIAL INFORMATION | ||
Item 1. | Financial Statements: | |
8 | ||
Item 2. | ||
Item 3. | 30 | |
Item 4. | 30 | |
PART II. OTHER INFORMATION | ||
Item 1. | 32 | |
Item 1A. | 33 | |
Item 2. | 33 | |
Item 3. | 33 | |
Item 4. | 33 | |
Item 5. | 33 | |
Item 6. | 33 | |
34 |
Three Months Ended | Nine Months Ended | |||||||||||||||
(in millions, except per share data) | Sep. 30, 2018 | Oct. 1, 2017 | Sep. 30, 2018 | Oct. 1, 2017 | ||||||||||||
Product sales | $ | 444.9 | $ | 405.4 | $ | 1,302.1 | $ | 1,187.9 | ||||||||
Service revenue | 19.2 | 19.0 | 58.0 | 55.6 | ||||||||||||
Total net sales | 464.1 | 424.4 | 1,360.1 | 1,243.5 | ||||||||||||
Cost of goods sold | 332.1 | 293.0 | 972.4 | 854.7 | ||||||||||||
Cost of service revenue | 12.8 | 12.2 | 39.1 | 36.2 | ||||||||||||
Total cost of sales | 344.9 | 305.2 | 1,011.5 | 890.9 | ||||||||||||
Production margin | 119.2 | 119.2 | 348.6 | 352.6 | ||||||||||||
Marketing and administrative expenses | 45.4 | 45.2 | 135.1 | 132.8 | ||||||||||||
Research and development expenses | 5.0 | 5.9 | 17.5 | 17.8 | ||||||||||||
Acquisition-related transaction and integration costs | 0.3 | 0.5 | 1.7 | 2.8 | ||||||||||||
Restructuring and other items, net | 0.3 | 0.4 | 0.7 | 0.9 | ||||||||||||
Income from operations | 68.2 | 67.2 | 193.6 | 198.3 | ||||||||||||
Interest expense, net | (11.7 | ) | (10.5 | ) | (33.9 | ) | (32.5 | ) | ||||||||
Debt modification costs and fees | — | — | — | (3.9 | ) | |||||||||||
Pension settlement costs | (3.6 | ) | — | (3.6 | ) | — | ||||||||||
Other non-operating deductions, net | (0.9 | ) | (2.1 | ) | (0.5 | ) | (4.7 | ) | ||||||||
Total non-operating deductions, net | (16.2 | ) | (12.6 | ) | (38.0 | ) | (41.1 | ) | ||||||||
Income before provision for taxes and equity in earnings | 52.0 | 54.6 | 155.6 | 157.2 | ||||||||||||
Provision for taxes on income | 9.7 | 12.1 | 29.3 | 35.6 | ||||||||||||
Equity in earnings of affiliates, net of tax | 0.6 | 0.4 | 2.9 | 0.7 | ||||||||||||
Consolidated net income | 42.9 | 42.9 | 129.2 | 122.3 | ||||||||||||
Less: | ||||||||||||||||
Net income attributable to non-controlling interests | 1.0 | 1.2 | 3.3 | 3.0 | ||||||||||||
Net income attributable to Minerals Technologies Inc. (MTI) | $ | 41.9 | $ | 41.7 | $ | 125.9 | $ | 119.3 | ||||||||
Earnings per share: | ||||||||||||||||
Basic: | ||||||||||||||||
Income from continuing operations attributable to MTI | $ | 1.19 | $ | 1.18 | $ | 3.57 | $ | 3.40 | ||||||||
Diluted: | ||||||||||||||||
Income from continuing operations attributable to MTI | $ | 1.18 | $ | 1.17 | $ | 3.54 | $ | 3.35 | ||||||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0.15 | ||||||||
Shares used in computation of earnings per share: | ||||||||||||||||
Basic | 35.3 | 35.3 | 35.3 | 35.1 | ||||||||||||
Diluted | 35.6 | 35.6 | 35.6 | 35.6 |
Three Months Ended | Nine Months Ended | |||||||||||||||
(millions of dollars) | Sep. 30, 2018 | Oct. 1, 2017 | Sep. 30, 2018 | Oct. 1, 2017 | ||||||||||||
Consolidated net income | $ | 42.9 | $ | 42.9 | $ | 129.2 | $ | 122.3 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Foreign currency translation adjustments | (23.1 | ) | 8.0 | (62.4 | ) | 33.8 | ||||||||||
Pension and postretirement plan adjustments | 4.6 | 1.0 | 8.4 | 3.7 | ||||||||||||
Unrealized gains (losses) on derivatives | (0.4 | ) | 0.1 | (0.1 | ) | (0.2 | ) | |||||||||
Total other comprehensive income (loss), net of tax | (18.9 | ) | 9.1 | (54.1 | ) | 37.3 | ||||||||||
Total comprehensive income including non-controlling interests | 24.0 | 52.0 | 75.1 | 159.6 | ||||||||||||
Comprehensive income attributable to non-controlling interests | (0.6 | ) | (1.3 | ) | (1.8 | ) | (3.9 | ) | ||||||||
Comprehensive income attributable to MTI | $ | 23.4 | $ | 50.7 | $ | 73.3 | $ | 155.7 |
Three Months Ended | ||||||||
(in millions of dollars, except per share data) | Mar. 31, 2019 | Apr. 1, 2018 | ||||||
Product sales | $ | 417.4 | $ | 412.2 | ||||
Service revenue | 20.3 | 19.1 | ||||||
Total net sales | 437.7 | 431.3 | ||||||
Cost of goods sold | 314.0 | 305.0 | ||||||
Cost of service revenue | 14.0 | 12.8 | ||||||
Total cost of sales | 328.0 | 317.8 | ||||||
Production margin | 109.7 | 113.5 | ||||||
Marketing and administrative expenses | 42.9 | 44.4 | ||||||
Research and development expenses | 4.8 | 6.1 | ||||||
Acquisition related transaction and integration costs | — | 0.4 | ||||||
Income from operations | 62.0 | 62.6 | ||||||
Interest expense, net | (11.4 | ) | (10.7 | ) | ||||
Other non-operating deductions, net | (1.4 | ) | (2.7 | ) | ||||
Total non-operating deductions, net | (12.8 | ) | (13.4 | ) | ||||
Income from operations before tax and equity in earnings | 49.2 | 49.2 | ||||||
Provision for taxes on income | 9.3 | 9.3 | ||||||
Equity in earnings of affiliates, net of tax | 0.1 | 1.2 | ||||||
Consolidated net income | 40.0 | 41.1 | ||||||
Less: | ||||||||
Net income attributable to non-controlling interests | 0.9 | 1.2 | ||||||
Net income attributable to Minerals Technologies Inc. | $ | 39.1 | $ | 39.9 | ||||
Earnings per share: | ||||||||
Basic: | ||||||||
Income from operations attributable to Minerals Technologies Inc. | $ | 1.11 | $ | 1.13 | ||||
Diluted: | ||||||||
Income from operations attributable to Minerals Technologies Inc. | $ | 1.11 | $ | 1.12 | ||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.05 | ||||
Shares used in computation of earnings per share: | ||||||||
Basic | 35.2 | 35.4 | ||||||
Diluted | 35.3 | 35.7 |
Three Months Ended | ||||||||
(millions of dollars) | Mar. 31, 2019 | Apr. 1, 2018 | ||||||
Consolidated net income | $ | 40.0 | $ | 41.1 | ||||
Other comprehensive income (loss), net of tax: | ||||||||
Foreign currency translation adjustments | (0.4 | ) | 15.2 | |||||
Pension and postretirement plan adjustments | 1.6 | 1.9 | ||||||
Unrealized gains on derivative instruments | 1.2 | 1.6 | ||||||
Total other comprehensive income, net of tax | 2.4 | 18.7 | ||||||
Total comprehensive income including non-controlling interests | 42.4 | 59.8 | ||||||
Comprehensive income attributable to non-controlling interests | (1.4 | ) | (1.8 | ) | ||||
Comprehensive income attributable to Minerals Technologies Inc. | $ | 41.0 | $ | 58.0 |
(millions of dollars) | Sep. 30, 2018* | Dec. 31, 2017 ** | Mar. 31, 2019* | Dec. 31, 2018 ** | ||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 206.9 | $ | 212.2 | $ | 202.7 | $ | 208.8 | ||||||||
Short-term investments, at cost which approximates market | 4.3 | 2.7 | ||||||||||||||
Short-term investments | 4.3 | 3.8 | ||||||||||||||
Accounts receivable, net | 410.5 | 383.0 | 406.4 | 387.3 | ||||||||||||
Inventories | 243.4 | 219.3 | 254.4 | 239.2 | ||||||||||||
Prepaid expenses and other current assets | 38.5 | 35.0 | 36.1 | 37.2 | ||||||||||||
Total current assets | 903.6 | 852.2 | 903.9 | 876.3 | ||||||||||||
Property, plant and equipment | 2,254.5 | 2,219.6 | 2,269.0 | 2,256.0 | ||||||||||||
Less accumulated depreciation and depletion | (1,148.1 | ) | (1,158.3 | ) | (1,167.9 | ) | (1,153.1 | ) | ||||||||
Property, plant and equipment, net | 1,106.4 | 1,061.3 | 1,101.1 | 1,102.9 | ||||||||||||
Goodwill | 808.1 | 779.3 | 812.4 | 812.4 | ||||||||||||
Intangible assets | 210.3 | 196.5 | 211.8 | 214.1 | ||||||||||||
Deferred income taxes | 26.1 | 25.6 | 24.8 | 26.3 | ||||||||||||
Other assets and deferred charges | 58.0 | 55.5 | 109.4 | 55.1 | ||||||||||||
Total assets | $ | 3,112.5 | $ | 2,970.4 | $ | 3,163.4 | $ | 3,087.1 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Short-term debt | $ | 108.3 | $ | 6.3 | $ | 104.7 | $ | 105.2 | ||||||||
Current maturities of long-term debt | 3.0 | 3.8 | 2.7 | 3.3 | ||||||||||||
Accounts payable | 184.7 | 179.0 | 178.2 | 169.1 | ||||||||||||
Other current liabilities | 124.0 | 120.9 | 105.2 | 104.3 | ||||||||||||
Total current liabilities | 420.0 | 310.0 | 390.8 | 381.9 | ||||||||||||
Long-term debt, net of unamortized discount and deferred financing costs | 946.1 | 959.8 | 893.4 | 907.8 | ||||||||||||
Deferred income taxes | 164.5 | 159.4 | 198.1 | 196.8 | ||||||||||||
Accrued pension and post-retirement benefits | 136.4 | 155.0 | 124.0 | 124.2 | ||||||||||||
Other non-current liabilities | 103.9 | 107.1 | 129.7 | 91.1 | ||||||||||||
Total liabilities | 1,770.9 | 1,691.3 | 1,736.0 | 1,701.8 | ||||||||||||
Shareholders' equity: | ||||||||||||||||
Common stock | 4.9 | 4.9 | 4.9 | 4.9 | ||||||||||||
Additional paid-in capital | 429.6 | 422.7 | 432.6 | 431.9 | ||||||||||||
Retained earnings | 1,727.9 | 1,607.2 | 1,817.4 | 1,769.1 | ||||||||||||
Accumulated other comprehensive loss | (238.8 | ) | (186.1 | ) | (242.7 | ) | (233.7 | ) | ||||||||
Less common stock held in treasury | (613.4 | ) | (597.0 | ) | (618.7 | ) | (618.7 | ) | ||||||||
Total MTI shareholders' equity | 1,310.2 | 1,251.7 | ||||||||||||||
Total Minerals Technologies Inc. shareholders' equity | 1,393.5 | 1,353.5 | ||||||||||||||
Non-controlling interests | 31.4 | 27.4 | 33.9 | 31.8 | ||||||||||||
Total shareholders' equity | 1,341.6 | 1,279.1 | 1,427.4 | 1,385.3 | ||||||||||||
Total liabilities and shareholders' equity | $ | 3,112.5 | $ | 2,970.4 | $ | 3,163.4 | $ | 3,087.1 |
* | Unaudited |
** | Condensed from audited financial statements |
Nine Months Ended | Three Months Ended | |||||||||||||||
(millions of dollars) | Sep. 30, 2018 | Oct. 1, 2017 | Mar. 31, 2019 | Apr. 1, 2018 | ||||||||||||
Operating Activities: | ||||||||||||||||
Consolidated net income | $ | 129.2 | $ | 122.3 | $ | 40.0 | $ | 41.1 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation, depletion and amortization | 71.0 | 67.0 | 24.5 | 21.1 | ||||||||||||
Non-cash debt modification fees | — | 1.8 | ||||||||||||||
Non-cash pension settlement costs | 3.6 | — | ||||||||||||||
Amortization of right of use asset | 3.4 | — | ||||||||||||||
Other non-cash items | — | 8.9 | 2.1 | (1.1 | ) | |||||||||||
Pension plan funding | (18.6 | ) | (5.4 | ) | ||||||||||||
Net changes in operating assets and liabilities | (51.8 | ) | (44.0 | ) | (39.2 | ) | (25.4 | ) | ||||||||
Net cash provided by operating activities | 133.4 | 150.6 | 30.8 | 35.7 | ||||||||||||
Investing Activities: | ||||||||||||||||
Purchases of property, plant and equipment, net | (56.4 | ) | (54.2 | ) | (17.6 | ) | (17.9 | ) | ||||||||
Acquisition of business, net of cash acquired | (122.5 | ) | — | |||||||||||||
Proceeds from sales of assets | 0.4 | 1.3 | ||||||||||||||
Proceeds from sale of short-term investments | 3.3 | 2.8 | 0.9 | 0.7 | ||||||||||||
Purchases of short-term investments | (5.6 | ) | (3.5 | ) | (1.5 | ) | (2.0 | ) | ||||||||
Other investing activities | (0.1 | ) | (0.9 | ) | ||||||||||||
Net cash used in investing activities | (180.9 | ) | (54.5 | ) | (18.2 | ) | (19.2 | ) | ||||||||
Financing Activities: | ||||||||||||||||
Debt issuance costs | (1.4 | ) | — | |||||||||||||
Repayment of long-term debt | (27.4 | ) | (84.9 | ) | (15.8 | ) | (0.4 | ) | ||||||||
Issuance of short-term debt | 113.0 | — | ||||||||||||||
Repayment of short-term debt | (11.0 | ) | (0.2 | ) | (0.6 | ) | — | |||||||||
Purchase of common shares for treasury | (16.4 | ) | (0.7 | ) | ||||||||||||
Purchase of common stock for treasury | — | (5.7 | ) | |||||||||||||
Proceeds from issuance of stock under option plan | 2.2 | 14.4 | 0.1 | 0.6 | ||||||||||||
Excess tax benefits related to stock incentive programs | (3.1 | ) | (3.6 | ) | (1.9 | ) | (3.2 | ) | ||||||||
Dividends paid to non-controlling interests | (1.6 | ) | (2.4 | ) | (0.1 | ) | (0.1 | ) | ||||||||
Capital contribution by non-controlling interests | 3.7 | — | ||||||||||||||
Capital contribution from non-controlling interests | 0.8 | — | ||||||||||||||
Cash dividends paid | (5.3 | ) | (5.3 | ) | (1.7 | ) | (1.8 | ) | ||||||||
Net cash provided by (used in) financing activities | 52.7 | (82.7 | ) | |||||||||||||
Net cash used in financing activities | (19.2 | ) | (10.6 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (10.5 | ) | 9.8 | 0.5 | 5.1 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (5.3 | ) | 23.2 | |||||||||||||
Net (decrease) increase in cash and cash equivalents | (6.1 | ) | 11.0 | |||||||||||||
Cash and cash equivalents at beginning of period | 212.2 | 188.5 | 208.8 | 212.2 | ||||||||||||
Cash and cash equivalents at end of period | $ | 206.9 | $ | 211.7 | $ | 202.7 | $ | 223.2 | ||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||
Interest paid | $ | 34.6 | $ | 28.9 | $ | 10.9 | $ | 10.5 | ||||||||
Income taxes paid | $ | 28.9 | $ | 35.5 | $ | 5.8 | $ | 4.0 | ||||||||
Non-cash financing activities: | ||||||||||||||||
Treasury stock purchases settled after period end | $ | — | $ | 0.3 |
Equity Attributable to Minerals Technologies Inc. | ||||||||||||||||||||||||||||
(millions of dollars) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interests | Total | |||||||||||||||||||||
Balance as of December 31, 2018 | $ | 4.9 | $ | 431.9 | $ | 1,769.1 | $ | (233.7 | ) | $ | (618.7 | ) | $ | 31.8 | $ | 1,385.3 | ||||||||||||
Net income | — | — | 39.1 | — | — | 0.9 | 40.0 | |||||||||||||||||||||
Other comprehensive income | — | — | — | 1.9 | — | 0.5 | 2.4 | |||||||||||||||||||||
Dividends declared | — | — | (1.7 | ) | — | — | — | (1.7 | ) | |||||||||||||||||||
Dividends paid to non-controlling interests | — | — | — | — | — | (0.1 | ) | (0.1 | ) | |||||||||||||||||||
Cumulative effect of accounting change | — | — | 10.9 | (10.9 | ) | — | — | — | ||||||||||||||||||||
Capital contribution from non-controlling interests | — | — | — | — | — | 0.8 | 0.8 | |||||||||||||||||||||
Issuance of shares pursuant to employee stock compensation plans | — | 0.1 | — | — | — | — | 0.1 | |||||||||||||||||||||
Stock-based compensation | — | 0.6 | — | — | — | — | 0.6 | |||||||||||||||||||||
Balance as of March 31, 2019 | $ | 4.9 | $ | 432.6 | $ | 1,817.4 | $ | (242.7 | ) | $ | (618.7 | ) | $ | 33.9 | $ | 1,427.4 |
Equity Attributable to Minerals Technologies Inc. | ||||||||||||||||||||||||||||
(millions of dollars) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interests | Total | |||||||||||||||||||||
Balance as of December 31, 2017 | $ | 4.9 | $ | 422.7 | $ | 1,607.2 | $ | (186.1 | ) | $ | (597.0 | ) | $ | 27.4 | $ | 1,279.1 | ||||||||||||
Net income | — | — | 39.9 | — | — | 1.2 | 41.1 | |||||||||||||||||||||
Other comprehensive income | — | — | — | 18.2 | — | 0.5 | 18.7 | |||||||||||||||||||||
Dividends declared | — | — | (1.8 | ) | — | — | — | (1.8 | ) | |||||||||||||||||||
Dividends paid to non-controlling interests | — | — | — | — | — | (0.2 | ) | (0.2 | ) | |||||||||||||||||||
Issuance of shares pursuant to employee stock compensation plans | — | 0.5 | — | — | — | — | 0.5 | |||||||||||||||||||||
Purchase of common stock for treasury | — | — | — | — | (5.7 | ) | — | (5.7 | ) | |||||||||||||||||||
Balance as of April 1, 2018 | $ | 4.9 | $ | 423.2 | $ | 1,645.3 | $ | (167.9 | ) | $ | (602.7 | ) | $ | 29.0 | $ | 1,331.8 |
– | The Performance Materials segment is a leading global supplier of bentonite and bentonite-related products, chromite and leonardite. This segment also provides products for non-residential construction, environmental and infrastructure projects worldwide, serving customers engaged in a broad range of construction projects. |
– | The Specialty Minerals segment produces and sells the synthetic mineral product precipitated calcium carbonate ("PCC") and processed mineral product quicklime ("lime"), and mines mineral ores then processes and sells natural mineral products, primarily limestone and talc. |
– | The Refractories segment produces and markets monolithic and shaped refractory materials and specialty products, services and application and measurement equipment, and calcium metal and metallurgical wire products. |
– | The Energy Services segment provides services to improve the production, costs, compliance, and environmental impact of activities performed in the oil and gas industry. This segment offers a range of patented and unpatented technologies, products and services to the upstream and downstream oil and gas sector throughout the world. |
(millions of dollars) | Mar. 31, 2019 | |||
Operating lease cost | $ | 4.0 | ||
Short-term lease cost | $ | 0.1 |
(millions of dollars) | Mar. 31, 2019 | |||
Operating cash flows information: | ||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 4.0 | ||
Non-cash activity: | ||||
Right-of-use assets obtained in the exchange for operating lease liabilities | $ | 0.2 |
Weighted-average remaining operating lease term (in years) | 7.87 | |
Weighted-average operating leases discount rate | 5.0% |
(millions of dollars) | Balance Sheet Classification | Mar. 31, 2019 | |||
Right-of-use asset | Other assets and deferred charges | $ | 47.4 | ||
Lease liability - current | Other current liabilities | 12.3 | |||
Lease liability - non-current | Other non-current liabilities | 46.1 |
(millions of dollars) | Mar. 31, 2019 | |||
For the remainder of 2019 | $ | 11.5 | ||
2020 | 12.3 | |||
2021 | 9.0 | |||
2022 | 7.2 | |||
2023 | 5.9 | |||
Thereafter | 25.3 | |||
Total future minimum lease payments | 71.2 | |||
Less imputed interest | (13.0 | ) | ||
Total | $ | 58.2 |
(millions of dollars) | Dec. 31, 2018 | |||
2019 | $ | 17.3 | ||
2020 | 13.0 | |||
2021 | 9.5 | |||
2022 | 8.2 | |||
2023 | 7.0 | |||
Thereafter | 24.8 | |||
Total | $ | 79.8 |
(millions of dollars) | Dec. 31, 2018 | Dec. 31, 2017 | ||||||
Rent expense | $ | 19.5 | $ | 19.3 |
(millions of dollars) | Three Months Ended | Nine Months Ended | Three Months Ended | |||||||||||||||||||||
Net Sales | Sep. 30, 2018 | Oct. 1, 2017 | Sep. 30, 2018 | Oct. 1, 2017 | Mar. 31, 2019 | Apr. 1, 2018 | ||||||||||||||||||
Metalcasting | $ | 77.8 | $ | 73.6 | $ | 245.8 | $ | 215.9 | $ | 73.2 | $ | 79.2 | ||||||||||||
Household, Personal Care and Specialty Products | 71.9 | 42.5 | 179.2 | 123.3 | ||||||||||||||||||||
Household, Personal Care & Specialty Products | 74.9 | 48.7 | ||||||||||||||||||||||
Environmental Products | 26.3 | 21.6 | 64.2 | 51.8 | 15.9 | 12.7 | ||||||||||||||||||
Building Materials | 18.0 | 19.9 | 54.9 | 57.5 | 15.3 | 18.9 | ||||||||||||||||||
Basic Minerals | 25.5 | 31.2 | 77.2 | 90.5 | 19.9 | 27.8 | ||||||||||||||||||
Performance Materials | 219.5 | 188.8 | 621.3 | 539.0 | 199.2 | 187.3 | ||||||||||||||||||
Paper PCC | 93.1 | 96.3 | 284.6 | 282.0 | 91.5 | 97.0 | ||||||||||||||||||
Specialty PCC | 16.9 | 16.4 | 51.2 | 50.8 | 18.1 | 17.0 | ||||||||||||||||||
Ground Calcium Carbonate | 23.0 | 22.3 | 70.7 | 67.1 | 22.3 | 22.5 | ||||||||||||||||||
Talc | 13.3 | 12.7 | 40.3 | 41.0 | 12.5 | 13.1 | ||||||||||||||||||
Specialty Minerals | 146.3 | 147.7 | 446.8 | 440.9 | 144.4 | 149.6 | ||||||||||||||||||
Refractory Products | 66.7 | 56.6 | 195.7 | 169.4 | 62.0 | 62.3 | ||||||||||||||||||
Metallurgical Products | 12.4 | 12.3 | 38.3 | 38.6 | 11.8 | 13.0 | ||||||||||||||||||
Refractories | 79.1 | 68.9 | 234.0 | 208.0 | 73.8 | 75.3 | ||||||||||||||||||
Energy Services | 19.2 | 19.0 | 58.0 | 55.6 | 20.3 | 19.1 | ||||||||||||||||||
Total | $ | 464.1 | $ | 424.4 | $ | 1,360.1 | $ | 1,243.5 | $ | 437.7 | $ | 431.3 |
(millions of dollars) | Preliminary Allocation | |||
Accounts receivable | $ | 24.4 | ||
Inventories | 15.6 | |||
Other current assets | 0.6 | |||
Mineral rights | 35.0 | |||
Plant, property and equipment | 38.0 | |||
Goodwill | 30.8 | |||
Intangible assets | 20.0 | |||
Total assets acquired | 164.4 |
Current maturity of long term debt | 5.7 | |||||||||||||||
(millions of dollars) | Preliminary Allocation Previously Reported on Form 10-K as of December 31, 2018 | Increase/ (Decrease) | Allocation as of March 31, 2019 | |||||||||||||
Accounts receivable | $ | 24.4 | $ | — | $ | 24.4 | ||||||||||
Inventories | 15.6 | — | 15.6 | |||||||||||||
Other current assets | 0.6 | — | 0.6 | |||||||||||||
Mineral rights | 39.7 | — | 39.7 | |||||||||||||
Property, plant and equipment | 28.3 | — | 28.3 | |||||||||||||
Goodwill | 35.0 | — | 35.0 | |||||||||||||
Intangible assets | 26.4 | — | 26.4 | |||||||||||||
Total assets acquired | 170.0 | — | 170.0 | |||||||||||||
Current maturity of long-term debt | 5.7 | — | 5.7 | |||||||||||||
Accounts payable | 9.0 | 9.0 | — | 9.0 | ||||||||||||
Accrued expenses | 5.8 | 5.6 | — | 5.6 | ||||||||||||
Long term debt | 5.1 | |||||||||||||||
Long-term debt | 5.3 | — | 5.3 | |||||||||||||
Non-current deferred tax liability | 16.2 | 19.7 | — | 19.7 | ||||||||||||
Other non-current liabilities | 0.1 | 2.2 | — | 2.2 | ||||||||||||
Total liabilities assumed | 41.9 | 47.5 | — | 47.5 | ||||||||||||
Net assets acquired | $ | 122.5 | $ | 122.5 | $ | — | $ | 122.5 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Sep. 30, 2018 | Oct. 1, 2017 | Sep. 30, 2018 | Oct. 1, 2017 | Three Months Ended | ||||||||||||||||||||
(in millions, except per share data) | Mar. 31, 2019 | Apr. 1, 2018 | ||||||||||||||||||||||
Net income attributable to MTI | $ | 41.9 | $ | 41.7 | $ | 125.9 | $ | 119.3 | ||||||||||||||||
Net income attributable to Minerals Technologies Inc. | $ | 39.1 | $ | 39.9 | ||||||||||||||||||||
Weighted average shares outstanding | 35.3 | 35.3 | 35.3 | 35.1 | 35.2 | 35.4 | ||||||||||||||||||
Dilutive effect of stock options and stock units | 0.3 | 0.3 | 0.3 | 0.5 | 0.1 | 0.3 | ||||||||||||||||||
Weighted average shares outstanding, adjusted | 35.6 | 35.6 | 35.6 | 35.6 | 35.3 | 35.7 | ||||||||||||||||||
Basic earnings per share attributable to MTI | $ | 1.19 | $ | 1.18 | $ | 3.57 | $ | 3.40 | ||||||||||||||||
Basic earnings per share attributable to Minerals Technologies Inc. | $ | 1.11 | $ | 1.13 | ||||||||||||||||||||
Diluted earnings per share attributable to MTI | $ | 1.18 | $ | 1.17 | $ | 3.54 | $ | 3.35 | ||||||||||||||||
Diluted earnings per share attributable to Minerals Technologies Inc. | $ | 1.11 | $ | 1.12 |
(millions of dollars) | ||||
Restructuring liability, December 31, 2017 | $ | 8.1 | ||
Additional provisions | 0.7 | |||
Cash payments | (4.9 | ) | ||
Restructuring liability, September 30, 2018 | $ | 3.9 |
(millions of dollars) | ||||
Restructuring liability, December 31, 2018 | $ | 2.5 | ||
Cash payments | (0.2 | ) | ||
Restructuring liability, March 31, 2019 | $ | 2.3 |
(millions of dollars) | Sep. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Dec. 31, 2018 | ||||||||||||
Raw materials | $ | 91.9 | $ | 82.5 | $ | 102.8 | $ | 93.4 | ||||||||
Work-in-process | 12.0 | 7.9 | 10.2 | 11.2 | ||||||||||||
Finished goods | 97.0 | 92.3 | 97.5 | 92.2 | ||||||||||||
Packaging and supplies | 42.5 | 36.6 | 43.9 | 42.4 | ||||||||||||
Total inventories | $ | 243.4 | $ | 219.3 | $ | 254.4 | $ | 239.2 |
Sep. 30, 2018 | Dec. 31 2017 | Mar. 31, 2019 | Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||
(millions of dollars) | Weighted Average Useful Life (Years) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Weighted Average Useful Life (Years) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||||||||||||
Tradenames | 34 | $ | 209.8 | $ | 24.6 | $ | 199.8 | $ | 20.7 | 35 | $ | 204.2 | $ | 28.1 | $ | 204.2 | $ | 26.6 | ||||||||||||||||||||||
Technology | 12 | 18.8 | 6.0 | 18.8 | 4.8 | 13 | 18.8 | 6.8 | 18.8 | 6.4 | ||||||||||||||||||||||||||||||
Patents and trademarks | 17 | 6.4 | 5.5 | 6.4 | 5.3 | |||||||||||||||||||||||||||||||||||
Patents | 19 | 6.4 | 5.7 | 6.4 | 5.6 | |||||||||||||||||||||||||||||||||||
Customer relationships | 30 | 14.5 | 3.1 | 4.5 | 2.2 | 22 | 26.5 | 3.5 | 26.5 | 3.2 | ||||||||||||||||||||||||||||||
28 | $ | 249.5 | $ | 39.2 | $ | 229.5 | $ | 33.0 | 32 | $ | 255.9 | $ | 44.1 | $ | 255.9 | $ | 41.8 |
● | Market approach - prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. |
● | Cost approach - amount that would be required to replace the service capacity of an asset or replacement cost. |
● | Income approach - techniques to convert future amounts to a single present amount based on market expectations, including present value techniques, option-pricing and other models. |
(millions of dollars) | Sep. 30, 2018 | Dec. 31, 2017 | ||||||||||||||
(millions of dollars) | Mar. 31, 2019 | Dec. 31, 2018 | ||||||||||||||
Term Loan Facility-Variable Tranche due February 14, 2024, net of unamortized discount and deferred financing costs of $20.2 million and $22.7 million | $ | 637.8 | $ | 655.3 | ||||||||||||
Term Loan Facility- Fixed Tranche due May 9, 2021, net of unamortized discount of $0.4 million and $0.5 million | 299.6 | 299.5 | ||||||||||||||
Term Loan Facility-Variable Tranche due February 14, 2024, net of unamortized discount and deferred financing costs of $18.6 million and $19.4 million | $ | 639.4 | $ | 638.6 | ||||||||||||
Term Loan Facility- Fixed Tranche due May 9, 2021, net of unamortized discount and deferred financing costs of $0.3 million and $0.3 million | 247.8 | 262.6 | ||||||||||||||
Netherlands Term Loan due 2020 | 4.1 | — | 2.8 | 3.4 | ||||||||||||
Netherlands Term Loan due 2022 | 1.5 | — | 1.2 | 1.4 | ||||||||||||
Japan Loan Facilities | 5.1 | 5.6 | 4.9 | 5.1 | ||||||||||||
China Loan Facilities | 1.0 | 3.2 | ||||||||||||||
Total | 949.1 | 963.6 | 896.1 | 911.1 | ||||||||||||
Less: Current maturities | 3.0 | 3.8 | 2.7 | 3.3 | ||||||||||||
Long-term debt | $ | 946.1 | $ | 959.8 | ||||||||||||
Total long-term debt | $ | 893.4 | $ | 907.8 |
Pension Benefits | ||||||||
Three Months Ended | ||||||||
(millions of dollars) | Mar. 31, 2019 | Apr. 1, 2018 | ||||||
Service cost | $ | 1.8 | $ | 2.0 | ||||
Interest cost | 3.5 | 3.0 | ||||||
Expected return on plan assets | (4.6 | ) | (4.8 | ) | ||||
Amortization: | ||||||||
Prior service cost | 0.1 | 0.2 | ||||||
Recognized net actuarial loss | 2.3 | 2.7 | ||||||
Net periodic benefit cost | $ | 3.1 | $ | 3.1 |
Pension Benefits | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(millions of dollars) | Sep. 30, 2018 | Oct. 1, 2017 | Sep. 30, 2018 | Oct. 1, 2017 | ||||||||||||
Service cost | $ | 1.9 | $ | 1.4 | $ | 5.8 | $ | 5.5 | ||||||||
Interest cost | 3.2 | 3.0 | 9.3 | 9.2 | ||||||||||||
Expected return on plan assets | (5.0 | ) | (4.5 | ) | (14.6 | ) | (13.6 | ) | ||||||||
Amortization: | ||||||||||||||||
Prior service cost | 0.1 | 0.5 | 0.3 | 1.7 | ||||||||||||
Recognized net actuarial loss | 2.9 | 2.1 | 8.4 | 6.3 | ||||||||||||
Pension settlement loss | 3.6 | — | 3.6 | — | ||||||||||||
Net periodic benefit cost | $ | 6.7 | $ | 2.5 | $ | 12.8 | $ | 9.1 |
Other Benefits | Other Benefits | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | ||||||||||||||||||||||
(millions of dollars) | Sep. 30, 2018 | Oct. 1, 2017 | Sep. 30, 2018 | Oct. 1, 2017 | Mar. 31, 2019 | Apr. 1, 2018 | ||||||||||||||||||
Service cost | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 0.2 | $ | — | $ | 0.1 | ||||||||||||
Interest cost | — | 0.1 | 0.1 | 0.2 | 0.1 | 0.1 | ||||||||||||||||||
Amortization: | ||||||||||||||||||||||||
Prior service cost | (0.2 | ) | (0.8 | ) | (0.7 | ) | (2.3 | ) | — | (0.3 | ) | |||||||||||||
Recognized net actuarial (gain) loss | (0.2 | ) | (0.1 | ) | (0.5 | ) | (0.2 | ) | ||||||||||||||||
Recognized net actuarial (gain) | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||
Net periodic benefit cost | $ | (0.3 | ) | $ | (0.7 | ) | $ | (0.9 | ) | $ | (2.1 | ) | $ | (0.1 | ) | $ | (0.3 | ) |
Three Months Ended | Nine Months Ended | Three Months Ended | ||||||||||||||||||||||
(millions of dollars) | Sep. 30, 2018 | Oct. 1, 2017 | Sep. 30, 2018 | Oct. 1, 2017 | Mar. 31, 2019 | Apr. 1, 2018 | ||||||||||||||||||
Amortization of pension items: | ||||||||||||||||||||||||
Pre-tax amount | $ | 6.2 | $ | 1.7 | $ | 11.1 | $ | 5.5 | $ | 2.2 | $ | 2.4 | ||||||||||||
Tax | (1.6 | ) | (0.7 | ) | (2.7 | ) | (1.8 | ) | (0.6 | ) | (0.5 | ) | ||||||||||||
Net of tax | $ | 4.6 | $ | 1.0 | $ | 8.4 | $ | 3.7 | $ | 1.6 | $ | 1.9 |
(millions of dollars) | Foreign Currency Translation Adjustment | Unrecognized Pension Costs | Net Gain (Loss) on Derivatives | Total | Foreign Currency Translation Adjustment | Unrecognized Pension Costs | Net Gain (Loss) on Derivative Instruments | Total | ||||||||||||||||||||||||
Balance as of December 31, 2017 | $ | (104.1 | ) | $ | (86.5 | ) | $ | 4.5 | $ | (186.1 | ) | |||||||||||||||||||||
Balance as of December 31, 2018 | $ | (170.1 | ) | $ | (69.7 | ) | $ | 6.1 | $ | (233.7 | ) | |||||||||||||||||||||
Other comprehensive loss before reclassifications | (61.0 | ) | — | — | (61.0 | ) | (1.0 | ) | — | 1.3 | 0.3 | |||||||||||||||||||||
Amounts reclassified from AOCI | — | 8.4 | (0.1 | ) | 8.3 | — | 1.6 | — | 1.6 | |||||||||||||||||||||||
Net current period other comprehensive income (loss) | (61.0 | ) | 8.4 | (0.1 | ) | (52.7 | ) | (1.0 | ) | 1.6 | 1.3 | 1.9 | ||||||||||||||||||||
Balance as of September 30, 2018 | $ | (165.1 | ) | $ | (78.1 | ) | $ | 4.4 | $ | (238.8 | ) | |||||||||||||||||||||
Cumulative effect of accounting change | — | (10.4 | ) | (0.5 | ) | (10.9 | ) | |||||||||||||||||||||||||
Balance as of March 31, 2019 | $ | (171.1 | ) | $ | (78.5 | ) | $ | 6.9 | $ | (242.7 | ) |
(millions of dollars) | ||||
Asset retirement liability, December 31, 2017 | $ | 22.1 | ||
Accretion expense | 0.8 | |||
Other | 0.4 | |||
Payments | (1.0 | ) | ||
Foreign currency translation | (0.5 | ) | ||
Asset retirement liability, September 30, 2018 | $ | 21.8 |
(millions of dollars) | ||||
Asset retirement liability, December 31, 2018 | $ | 23.4 | ||
Accretion expense | 0.9 | |||
Payments | (0.7 | ) | ||
Asset retirement liability, March 31, 2019 | $ | 23.6 |
Equity Attributable to MTI | ||||||||||||||||||||||||||||
(millions of dollars) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interests | Total | |||||||||||||||||||||
Balance as of December 31, 2017 | $ | 4.9 | $ | 422.7 | $ | 1,607.2 | $ | (186.1 | ) | $ | (597.0 | ) | $ | 27.4 | $ | 1,279.1 | ||||||||||||
Net income | — | — | 125.9 | — | — | 3.3 | 129.2 | |||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | (52.7 | ) | — | (1.4 | ) | (54.1 | ) | ||||||||||||||||||
Dividends declared | — | — | (5.3 | ) | — | — | — | (5.3 | ) | |||||||||||||||||||
Dividends to non-controlling interests | — | — | — | — | — | (1.6 | ) | (1.6 | ) | |||||||||||||||||||
Capital contribution from non-controlling interests | — | — | — | — | — | 3.7 | 3.7 | |||||||||||||||||||||
Issuance of shares pursuant to employee stock compensation plans | — | 2.2 | — | — | — | — | 2.2 | |||||||||||||||||||||
Stock based compensation | — | 4.7 | — | — | — | — | 4.7 | |||||||||||||||||||||
Purchase of common stock | — | — | — | — | (16.4 | ) | — | (16.4 | ) | |||||||||||||||||||
Balance as of September 30, 2018 | $ | 4.9 | $ | 429.6 | $ | 1,727.9 | $ | (238.8 | ) | $ | (613.4 | ) | $ | 31.4 | $ | 1,341.6 |
Three Months Ended | Nine Months Ended | Three Months Ended | ||||||||||||||||||||||
(millions of dollars) | Sep. 30, 2018 | Oct. 1, 2017 | Sep. 30, 2018 | Oct. 1, 2017 | Mar. 31, 2019 | Apr. 1, 2018 | ||||||||||||||||||
Net Sales | ||||||||||||||||||||||||
Performance Materials | $ | 219.5 | $ | 188.8 | $ | 621.3 | $ | 539.0 | $ | 199.2 | $ | 187.3 | ||||||||||||
Specialty Minerals | 146.3 | 147.7 | 446.8 | 440.9 | 144.4 | 149.6 | ||||||||||||||||||
Refractories | 79.1 | 68.9 | 234.0 | 208.0 | 73.8 | 75.3 | ||||||||||||||||||
Energy Services | 19.2 | 19.0 | 58.0 | 55.6 | 20.3 | 19.1 | ||||||||||||||||||
Total | $ | 464.1 | $ | 424.4 | $ | 1,360.1 | $ | 1,243.5 | $ | 437.7 | $ | 431.3 | ||||||||||||
Income from Operations | ||||||||||||||||||||||||
Performance Materials | $ | 26.3 | $ | 26.2 | ||||||||||||||||||||
Specialty Minerals | 22.0 | 24.1 | ||||||||||||||||||||||
Refractories | 12.1 | 12.8 | ||||||||||||||||||||||
Energy Services | 2.4 | 1.5 | ||||||||||||||||||||||
Total | $ | 62.8 | $ | 64.6 |
Income from Operations | ||||||||||||||||
Performance Materials | $ | 31.8 | $ | 30.6 | $ | 87.6 | $ | 91.6 | ||||||||
Specialty Minerals | 25.0 | 26.6 | 74.2 | 77.9 | ||||||||||||
Refractories | 11.5 | 9.9 | 34.6 | 29.6 | ||||||||||||
Energy Services | 1.1 | 2.3 | 3.3 | 4.8 | ||||||||||||
Total | $ | 69.4 | $ | 69.4 | $ | 199.7 | $ | 203.9 |
Three Months Ended | Nine Months Ended | Three Months Ended | ||||||||||||||||||||||
(millions of dollars) | Sep. 30, 2018 | Oct. 1, 2017 | Sep. 30, 2018 | Oct. 1, 2017 | Mar. 31, 2019 | Apr. 1, 2018 | ||||||||||||||||||
Income from operations for reportable segments | $ | 69.4 | $ | 69.4 | $ | 199.7 | $ | 203.9 | $ | 62.8 | $ | 64.6 | ||||||||||||
Acquisition-related transaction and integration costs | (0.3 | ) | (0.5 | ) | (1.7 | ) | (2.8 | ) | ||||||||||||||||
Acquisition related transaction and integration costs | — | (0.4 | ) | |||||||||||||||||||||
Unallocated corporate expenses | (0.9 | ) | (1.7 | ) | (4.4 | ) | (2.8 | ) | (0.8 | ) | (1.6 | ) | ||||||||||||
Consolidated income from operations | 68.2 | 67.2 | 193.6 | 198.3 | 62.0 | 62.6 | ||||||||||||||||||
Non-operating deductions, net | (16.2 | ) | (12.6 | ) | (38.0 | ) | (41.1 | ) | (12.8 | ) | (13.4 | ) | ||||||||||||
Income from continuing operations before provision for taxes on income | $ | 52.0 | $ | 54.6 | $ | 155.6 | $ | 157.2 | ||||||||||||||||
Income from operations before tax and equity in earnings | $ | 49.2 | $ | 49.2 |
Three Months Ended | Nine Months Ended | Three Months Ended | ||||||||||||||||||||||
(millions of dollars) | Sep. 30, 2018 | Oct. 1, 2017 | Sep. 30, 2018 | Oct. 1, 2017 | Mar. 31, 2019 | Apr. 1, 2018 | ||||||||||||||||||
Metalcasting | $ | 77.8 | 73.6 | 245.8 | 215.9 | $ | 73.2 | $ | 79.2 | |||||||||||||||
Household, Personal Care & Specialty Products | 71.9 | 42.5 | 179.2 | 123.3 | 74.9 | 48.7 | ||||||||||||||||||
Environmental Products | 26.3 | 21.6 | 64.2 | 51.8 | 15.9 | 12.7 | ||||||||||||||||||
Building Materials | 18.0 | 19.9 | 54.9 | 57.5 | 15.3 | 18.9 | ||||||||||||||||||
Basic Minerals | 25.5 | 31.2 | 77.2 | 90.5 | 19.9 | 27.8 | ||||||||||||||||||
Paper PCC | 93.1 | 96.3 | 284.6 | 282.0 | 91.5 | 97.0 | ||||||||||||||||||
Specialty PCC | 16.9 | 16.4 | 51.2 | 50.8 | 18.1 | 17.0 | ||||||||||||||||||
Ground Calcium Carbonate | 23.0 | 22.3 | 70.7 | 67.1 | 22.3 | 22.5 | ||||||||||||||||||
Talc | 13.3 | 12.7 | 40.3 | 41.0 | 12.5 | 13.1 | ||||||||||||||||||
Refractory Products | 66.7 | 56.6 | 195.7 | 169.4 | 62.0 | 62.3 | ||||||||||||||||||
Metallurgical Products | 12.4 | 12.3 | 38.3 | 38.6 | 11.8 | 13.0 | ||||||||||||||||||
Energy Services | 19.2 | 19.0 | 58.0 | 55.6 | 20.3 | 19.1 | ||||||||||||||||||
Total | $ | 464.1 | $ | 424.4 | $ | 1,360.1 | $ | 1,243.5 | $ | 437.7 | $ | 431.3 |
Increase our presence and gain penetration of our bentonite-based foundry customers for the Metalcasting industry in emerging markets, such as China and India. |
● | Increase our presence and market share in global pet care products, particularly in emerging markets. |
● | Deploy new products in pet care such as lightweight litter. |
● | Increase our presence and market share in Asia and in the global powdered detergent market. |
● | Continue the development of our proprietary Enersol® products for agricultural applications worldwide. |
● | Pursue opportunities for our products in environmental and building and construction markets in the Middle East, Asia Pacific and South America regions. |
● | Increase our presence and market share for geosynthetic clay liners within the Environmental Products product line. |
● | Develop multiple high-filler technologies under the FulFill® platform of products, to increase the |
Develop products and processes for waste management and recycling opportunities to reduce the environmental impact of the paper mill, reduce energy consumption and improve the sustainability of the papermaking process, including our NewYield® and ENVIROFIL®products. |
Further penetration into the packaging segment of the paper industry. |
Increase our sales of PCC for paper by further penetration of the markets for paper filling at both freesheet and groundwood mills, particularly in emerging markets. |
Expand the Company's PCC coating product line using the satellite model. |
Promote the Company's expertise in crystal engineering, especially in helping papermakers customize PCC morphologies for specific paper applications. |
Expand PCC produced for paper filling applications by working with industry partners to develop new methods to increase the ratio of PCC for fiber substitutions. |
Develop unique calcium carbonate and talc products used in the manufacture of novel biopolymers, a new market opportunity. |
Deploy new talc and GCC products in paint, coating and packaging applications. |
Deploy value-added formulations of refractory materials that not only reduce costs but improve performance. |
Deploy our laser measurement technologies into new applications. |
Expand our refractory maintenance model to other steel makers globally. |
Increase our presence and market penetration in offshore produced water and offshore filtration and well testing within the Energy Services segment. |
Deploy operational excellence principles into all aspects of the organization, including system infrastructure and lean principles. |
Continue to explore selective acquisitions to fit our core competencies in minerals and fine particle technology. |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
(millions of dollars) | Sep. 30, 2018 | Oct. 1, 2017 | % Growth | Mar. 31, 2019 | Apr. 1, 2018 | % Growth | ||||||||||||||||||
Net sales | $ | 464.1 | $ | 424.4 | 9 | % | $ | 437.7 | $ | 431.3 | 1 | % | ||||||||||||
Cost of sales | 344.9 | 305.2 | 13 | % | 328.0 | 317.8 | 3 | % | ||||||||||||||||
Production margin | 119.2 | 119.2 | — | 109.7 | 113.5 | (3 | )% | |||||||||||||||||
Production margin % | 25.7 | % | 28.1 | % | 25.1 | % | 26.3 | % | ||||||||||||||||
Marketing and administrative expenses | 45.4 | 45.2 | — | 42.9 | 44.4 | (3 | )% | |||||||||||||||||
Research and development expenses | 5.0 | 5.9 | (15 | )% | 4.8 | 6.1 | (21 | )% | ||||||||||||||||
Acquisition-related transaction and integration costs | 0.3 | 0.5 | (40 | )% | ||||||||||||||||||||
Restructuring and other items, net | 0.3 | 0.4 | (25 | )% | ||||||||||||||||||||
Acquisition related transaction and integration costs | — | 0.4 | (100 | )% | ||||||||||||||||||||
Income from operations | 68.2 | 67.2 | 1 | % | 62.0 | 62.6 | (1 | )% | ||||||||||||||||
Operating margin % | 14.7 | % | 15.8 | % | 14.2 | % | 14.5 | % | ||||||||||||||||
Interest expense, net | (11.7 | ) | (10.5 | ) | 11 | % | (11.4 | ) | (10.7 | ) | 7 | % | ||||||||||||
Pension settlement costs | (3.6 | ) | — | * | ||||||||||||||||||||
Other non-operating deductions, net | (0.9 | ) | (2.1 | ) | (57 | )% | (1.4 | ) | (2.7 | ) | (48 | )% | ||||||||||||
Total non-operating deductions, net | (16.2 | ) | (12.6 | ) | 29 | % | (12.8 | ) | (13.4 | ) | (4 | )% | ||||||||||||
Income before provision for taxes and equity in earnings | 52.0 | 54.6 | (5 | )% | ||||||||||||||||||||
Income from operations before tax and equity in earnings | 49.2 | 49.2 | — | |||||||||||||||||||||
Provision for taxes on income | 9.7 | 12.1 | (20 | )% | 9.3 | 9.3 | — | |||||||||||||||||
Effective tax rate | 18.7 | % | 22.2 | % | 18.9 | % | 18.9 | % | ||||||||||||||||
Equity in earnings of affiliates, net of tax | 0.6 | 0.4 | 50 | % | 0.1 | 1.2 | (92 | )% | ||||||||||||||||
Net income | 42.9 | 42.9 | — | 40.0 | 41.1 | (3 | )% | |||||||||||||||||
Net income attributable to non-controlling interests | 1.0 | 1.2 | (17 | )% | 0.9 | 1.2 | (25 | )% | ||||||||||||||||
Net income attributable to Minerals Technologies Inc. (MTI) | $ | 41.9 | $ | 41.7 | — | $ | 39.1 | $ | 39.9 | (2 | )% |
Three Months Ended Sep. 30, 2018 | Three Months Ended Oct. 1, 2017 | Three Months Ended Mar. 31, 2019 | Three Months Ended Apr. 1, 2018 | |||||||||||||||||||||||||||||||||||||
(millions of dollars) | Net Sales | % of Total Sales | % Growth | Net Sales | % of Total Sales | Net Sales | % of Total Sales | % Growth | Net Sales | % of Total Sales | ||||||||||||||||||||||||||||||
U.S. | $ | 244.9 | 52.8 | % | 1 | % | $ | 243.6 | 57.4 | % | $ | 231.7 | 52.9 | % | — | $ | 232.3 | 53.9 | % | |||||||||||||||||||||
International | 219.2 | 47.2 | % | 21 | % | 180.8 | 42.6 | % | 206.0 | 47.1 | % | 4 | % | 199.0 | 46.1 | % | ||||||||||||||||||||||||
Total sales | $ | 464.1 | 100.0 | % | 9 | % | $ | 424.4 | 100.0 | % | $ | 437.7 | 100.0 | % | 1 | % | $ | 431.3 | 100.0 | % | ||||||||||||||||||||
Performance Materials Segment | $ | 219.5 | 47.3 | % | 16 | % | $ | 188.8 | 44.5 | % | $ | 199.2 | 45.5 | % | 6 | % | $ | 187.3 | 43.4 | % | ||||||||||||||||||||
Specialty Minerals Segment | 146.3 | 31.5 | % | (1 | )% | 147.7 | 34.8 | % | 144.4 | 33.0 | % | (3 | )% | 149.6 | 34.7 | % | ||||||||||||||||||||||||
Refractories Segment | 79.1 | 17.0 | % | 15 | % | 68.9 | 16.2 | % | 73.8 | 16.9 | % | (2 | )% | 75.3 | 17.5 | % | ||||||||||||||||||||||||
Energy Services Segment | 19.2 | 4.1 | % | 1 | % | 19.0 | 4.5 | % | 20.3 | 4.6 | % | 6 | % | 19.1 | 4.4 | % | ||||||||||||||||||||||||
Total sales | $ | 464.1 | 100.0 | % | 9 | % | $ | 424.4 | 100.0 | % | $ | 437.7 | 100.0 | % | 1 | % | $ | 431.3 | 100.0 | % |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
Performance Materials Segment | Sep. 30, 2018 | Oct. 1, 2017 | % Growth | Mar. 31, 2019 | Apr. 1, 2018 | % Growth | ||||||||||||||||||
(millions of dollars) | (millions of dollars) | |||||||||||||||||||||||
Net Sales | ||||||||||||||||||||||||
Metalcasting | $ | 77.8 | $ | 73.6 | 6 | % | $ | 73.2 | $ | 79.2 | (8 | )% | ||||||||||||
Household, Personal Care & Specialty Products | 71.9 | 42.5 | 69 | % | 74.9 | 48.7 | 54 | % | ||||||||||||||||
Environmental Products | 26.3 | 21.6 | 22 | % | 15.9 | 12.7 | 25 | % | ||||||||||||||||
Building Materials | 18.0 | 19.9 | (10 | )% | 15.3 | 18.9 | (19 | )% | ||||||||||||||||
Basic Minerals | 25.5 | 31.2 | (18 | )% | 19.9 | 27.8 | (28 | )% | ||||||||||||||||
Total net sales | $ | 219.5 | $ | 188.8 | 16 | % | $ | 199.2 | $ | 187.3 | 6 | % | ||||||||||||
Income from operations | $ | $ 31.8 | $ | $ 30.6 | $ | $ 26.3 | $ | $ 26.2 | ||||||||||||||||
% of net sales | 14.5 | % | 16.2 | % | 13.2 | % | 14.0 | % |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
Specialty Minerals Segment | Sep. 30, 2018 | Oct. 1, 2017 | % Growth | Mar. 31, 2019 | Apr. 1, 2018 | % Growth | ||||||||||||||||||
(millions of dollars) | (millions of dollars) | |||||||||||||||||||||||
Net Sales | ||||||||||||||||||||||||
Paper PCC | $ | 93.1 | $ | 96.3 | (3 | )% | $ | 91.5 | $ | 97.0 | (6 | )% | ||||||||||||
Specialty PCC | 16.9 | 16.4 | 3 | % | 18.1 | 17.0 | 6 | % | ||||||||||||||||
PCC Products | $ | 110.0 | $ | 112.7 | (2 | )% | $ | 109.6 | $ | 114.0 | (4 | )% | ||||||||||||
Ground Calcium Carbonate | $ | 23.0 | $ | 22.3 | 3 | % | $ | 22.3 | $ | 22.5 | (1 | )% | ||||||||||||
Talc | 13.3 | 12.7 | 5 | % | 12.5 | 13.1 | (5 | )% | ||||||||||||||||
Processed Minerals Products | $ | 36.3 | $ | 35.0 | 4 | % | $ | 34.8 | $ | 35.6 | (2 | )% | ||||||||||||
Total net sales | $ | 146.3 | $ | 147.7 | (1 | )% | $ | 144.4 | $ | 149.6 | (3 | )% | ||||||||||||
Income from operations | $ | 25.0 | $ | 26.6 | (6 | )% | $ | 22.0 | $ | 24.1 | (9 | )% | ||||||||||||
% of net sales | 17.1 | % | 18.0 | % | 15.2 | % | 16.1 | % |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
Refractories Segment | Sep. 30, 2018 | Oct. 1, 2017 | % Growth | Mar. 31, 2019 | Apr. 1, 2018 | % Growth | ||||||||||||||||||
(millions of dollars) | (millions of dollars) | |||||||||||||||||||||||
Net Sales | ||||||||||||||||||||||||
Refractory Products | $ | 66.7 | $ | 56.6 | 18 | % | $ | 62.0 | $ | 62.3 | — | |||||||||||||
Metallurgical Products | 12.4 | 12.3 | 1 | % | 11.8 | 13.0 | (9 | )% | ||||||||||||||||
Total net sales | $ | 79.1 | $ | 68.9 | 15 | % | $ | 73.8 | $ | 75.3 | (2 | )% | ||||||||||||
Income from operations | $ | 11.5 | $ | 9.9 | 16 | % | $ | 12.1 | $ | 12.8 | (5 | )% | ||||||||||||
% of net sales | 14.5 | % | 14.4 | % | 16.4 | % | 17.0 | % |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
Energy Services Segment | Sep. 30, 2018 | Oct. 1, 2017 | % Growth | Mar. 31, 2019 | Apr. 1, 2018 | % Growth | ||||||||||||||||||
(millions of dollars) | (millions of dollars) | |||||||||||||||||||||||
Net Sales | $ | 19.2 | $ | 19.0 | 1 | % | $ | 20.3 | $ | 19.1 | 6 | % | ||||||||||||
Income from operations | $ | 1.1 | $ | 2.3 | (52 | )% | $ | 2.4 | $ | 1.5 | 60 | % | ||||||||||||
% of net sales | 5.7 | % | 12.1 | % | 11.8 | % | 7.9 | % |
Nine Months Ended | ||||||||||||
(millions of dollars) | Sep. 30, 2018 | Oct. 1, 2017 | % Growth | |||||||||
Net sales | $ | 1,360.1 | $ | 1,243.5 | 9 | % | ||||||
Cost of sales | 1,011.5 | 890.9 | 14 | % | ||||||||
Production margin | 348.6 | 352.6 | (1 | )% | ||||||||
Production margin % | 25.6 | % | 28.4 | % | ||||||||
Marketing and administrative expenses | 135.1 | 132.8 | 2 | % | ||||||||
Research and development expenses | 17.5 | 17.8 | (2 | )% | ||||||||
Acquisition-related transaction and integration costs | 1.7 | 2.8 | (39 | )% | ||||||||
Restructuring and other items, net | 0.7 | 0.9 | (22 | )% | ||||||||
Income from operations | 193.6 | 198.3 | (2 | )% | ||||||||
Operating margin % | 14.2 | % | 15.9 | % | ||||||||
Interest expense, net | (33.9 | ) | (32.5 | ) | 4 | % | ||||||
Debt modification costs and fees | — | (3.9 | ) | * | ||||||||
Pension settlement costs | (3.6 | ) | — | * | ||||||||
Other non-operating deductions, net | (0.5 | ) | (4.7 | ) | (89 | )% | ||||||
Total non-operating deductions, net | (38.0 | ) | (41.1 | ) | (8 | )% | ||||||
Income before provision for taxes and equity in earnings | 155.6 | 157.2 | (1 | )% | ||||||||
Provision for taxes on income | 29.3 | 35.6 | (18 | )% | ||||||||
Effective tax rate | 18.8 | % | 22.6 | % | ||||||||
Equity in earnings of affiliates, net of tax | 2.9 | 0.7 | 314 | % | ||||||||
Net income | 129.2 | 122.3 | 6 | % | ||||||||
Net income attributable to non-controlling interests | 3.3 | 3.0 | 10 | % | ||||||||
Net income attributable to Minerals Technologies Inc. (MTI) | $ | 125.9 | $ | 119.3 | 6 | % |
Nine Months Ended Sep. 30, 2018 | Nine Months Ended Oct. 1, 2017 | |||||||||||||||||||
(millions of dollars) | Net Sales | % of Total Sales | % Growth | Net Sales | % of Total Sales | |||||||||||||||
U.S. | $ | 726.2 | 53.4 | % | 3 | % | $ | 705.1 | 56.7 | % | ||||||||||
International | 633.9 | 46.6 | % | 18 | % | 538.4 | 43.3 | % | ||||||||||||
Total sales | $ | 1,360.1 | 100.0 | % | 9 | % | $ | 1,243.5 | 100.0 | % | ||||||||||
Performance Materials Segment | $ | 621.3 | 45.7 | % | 15 | % | $ | 539.0 | 43.3 | % | ||||||||||
Specialty Minerals Segment | 446.8 | 32.9 | % | 1 | % | 440.9 | 35.5 | % | ||||||||||||
Refractories Segment | 234.0 | 17.2 | % | 13 | % | 208.0 | 16.7 | % | ||||||||||||
Energy Services Segment | 58.0 | 4.3 | % | 4 | % | 55.6 | 4.5 | % | ||||||||||||
Total sales | $ | 1,360.1 | 100.0 | % | 9 | % | $ | 1,243.5 | 100.0 | % |
Nine Months Ended | ||||||||||||
Performance Materials Segment | Sep. 30, 2018 | Oct. 1, 2017 | % Growth | |||||||||
(millions of dollars) | ||||||||||||
Net Sales | ||||||||||||
Metalcasting | $ | 245.8 | $ | 215.9 | 14 | % | ||||||
Household, Personal Care & Specialty Products | 179.2 | 123.3 | 45 | % | ||||||||
Environmental Products | 64.2 | 51.8 | 24 | % | ||||||||
Building Materials | 54.9 | 57.5 | (5 | )% | ||||||||
Basic Minerals | 77.2 | 90.5 | (15 | )% | ||||||||
Total net sales | $ | 621.3 | $ | 539.0 | 15 | % | ||||||
Income from operations | $ | 87.6 | $ | 91.6 | ||||||||
% of net sales | 14.1 | % | 17.0 | % |
Nine Months Ended | ||||||||||||
Specialty Minerals Segment | Sep. 30, 2018 | Oct. 1, 2017 | % Growth | |||||||||
(millions of dollars) | ||||||||||||
Net Sales | ||||||||||||
Paper PCC | $ | 284.6 | $ | 282.0 | 1 | % | ||||||
Specialty PCC | 51.2 | 50.8 | 1 | % | ||||||||
PCC Products | $ | 335.8 | $ | 332.8 | 1 | % | ||||||
Ground Calcium Carbonate | $ | 70.7 | $ | 67.1 | 5 | % | ||||||
Talc | 40.3 | 41.0 | (2 | )% | ||||||||
Processed Minerals Products | $ | 111.0 | $ | 108.1 | 3 | % | ||||||
Total net sales | $ | 446.8 | $ | 440.9 | 1 | % | ||||||
Income from operations | $ | 74.2 | $ | 77.9 | (5 | )% | ||||||
% of net sales | 16.6 | % | 17.7 | % |
Nine Months Ended | ||||||||||||
Refractories Segment | Sep. 30, 2018 | Oct. 1, 2017 | % Growth | |||||||||
(millions of dollars) | ||||||||||||
Net Sales | ||||||||||||
Refractory Products | $ | 195.7 | $ | 169.4 | 16 | % | ||||||
Metallurgical Products | 38.3 | 38.6 | (1 | )% | ||||||||
Total net sales | $ | 234.0 | $ | 208.0 | 13 | % | ||||||
Income from operations | $ | 34.6 | $ | 29.6 | 17 | % | ||||||
% of net sales | 14.8 | % | 14.2 | % |
Nine Months Ended | ||||||||||||
Energy Services Segment | Sep. 30, 2018 | Oct. 1, 2017 | % Growth | |||||||||
(millions of dollars) | ||||||||||||
Net Sales | $ | 58.0 | $ | 55.6 | 4 | % | ||||||
Income from operations | $ | 3.3 | $ | 4.8 | (31 | )% | ||||||
% of net sales | 5.7 | % | 8.6 | % |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of the Publicly Announced Program | Dollar Value of Shares that May Yet be Purchased Under the Program | ||||||||||||
July 2- July 29 | — | $ | — | 185,650 | $ | 136,655,947 | ||||||||||
July 30 - August 26 | 15,000 | $ | 66.66 | 200,650 | $ | 135,656,044 | ||||||||||
August 27 - September 30 | 30,000 | $ | 67.03 | 230,650 | $ | 133,645,212 | ||||||||||
Total | 45,000 | $ | 66.91 |
Exhibit No. | Exhibit Title | |
Letter Regarding Unaudited Interim Financial Information. | ||
Rule 13a-14(a)/15d-14(a) Certification executed by the Company's principal executive officer. | ||
Rule 13a-14(a)/15d-14(a) Certification executed by the Company's principal financial officer. | ||
Section 1350 Certifications. | ||
Information concerning Mine Safety Violations | ||
Risk Factors | ||
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |
101.LAB | XBRL Taxonomy Extension Label Linkbase | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
Minerals Technologies Inc. | ||
By: | /s/Matthew E. Garth | |
Matthew E. Garth | ||
Senior Vice President, Finance and Treasury, | ||
Chief Financial Officer | ||