as a result of new information, future events, or otherwise.
About Minerals Technologies Inc.
New York-based Minerals Technologies Inc. (MTI) is a global resource- and technology-based company that develops, produces and markets a broad range of specialty mineral, mineral-based and synthetic mineral products and related systems and services. MTI serves the paper, foundry, steel, construction, environmental, energy, polymer and consumer products industries. The Company reported sales of $1.6 billion in 2020. For further information, please visit our website at www.mineralstech.com. (MTI-E)
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
------------------------ ---------------- -------------------- ----------
Oct. Jul. Sep.
3, 4, 27, Oct. 3, Sep. 27,
Prior Prior
2021 2021 2020 Qtr. Year 2021 2020 Prior Year
------ ------ ------ ------- ------- -------- -------- ----------
Net sales $473.2 $455.6 $388.3 4% 22% $1,381.4 $1,163.0 19%
Cost of goods sold 359.9 340.2 289.9 6% 24% 1,040.9 868.9 20%
----- ----- ----- --- --- ------- ------- ------
Production margin 113.3 115.4 98.4 (2)% 15% 340.5 294.1 16%
Marketing and
administrative
expenses 45.5 46.4 42.1 (2)% 8% 139.9 127.3 10%
Research and
development expenses 4.6 4.9 4.8 (6)% (4)% 14.5 15.0 (3)%
Acquisition-related
expenses 1.5 0.4 0.0 275% * 1.9 0.0 *
Litigation expenses 0.0 0.0 1.5 * * 0.0 10.4 *
Restructuring and
other items, net 1.1 0.0 1.5 * (27)% 1.1 8.0 (86)%
----- ----- ----- ------- --- ------- ------- ------
Income from
operations 60.6 63.7 48.5 (5)% 25% 183.1 133.4 37%
Interest expense, net (9.2) (9.1) (10.1) 1% (9)% (28.2) (27.5) 3%
Non-cash pension
settlement charge (0.8) (2.2) (1.1) (64)% (27)% (3.0) (5.4) (44)%
Other non-operating
income (deductions),
net (0.1) (0.1) (1.5) * (93)% 0.3 (1.1) (127)%
----- ----- ----- ------- --- ------- ------- ------
Total non-operating
deductions, net (10.1) (11.4) (12.7) (11)% (20)% (30.9) (34.0) (9)%
Income before tax and
equity in earnings 50.5 52.3 35.8 (3)% 41% 152.2 99.4 53%
Provision for taxes on
income 8.9 9.8 7.0 (9)% 27% 27.6 17.6 57%
Equity in earnings of
affiliates, net of
tax 0.8 0.5 0.5 60% 60% 1.8 2.0 (10)%
----- ----- ----- --- --- ------- ------- ------
Consolidated net
income 42.4 43.0 29.3 (1)% 45% 126.4 83.8 51%
Less: Net income
attributable to
non-controlling
interests 1.0 1.1 1.0 (9)% 0% 3.2 2.5 28%
----- ----- ----- --- --- ------- ------- ------
Net Income
attributable to
Minerals
Technologies Inc. $ 41.4 $ 41.9 $ 28.3 (1)% 46% $ 123.2 $ 81.3 52%
----- ----- ----- --- --- ------- ------- ------
Weighted average
number of common
shares outstanding:
Basic 33.5 33.7 34.1 33.7 34.2
Diluted 33.8 34.1 34.1 33.9 34.2
Earnings per share
attributable to
Minerals Technologies
Inc.:
Basic $ 1.24 $ 1.24 $ 0.83 0% 49% $ 3.66 $ 2.38 54%
----- ----- ----- ------- -------
Diluted $ 1.22 $ 1.23 $ 0.83 (1)% 47% $ 3.63 $ 2.38 53%
----- ----- ----- ------- -------
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
For comparative purposes, the quarterly periods ended
October 3, 2021, July 4, 2021 and September 27, 2020
each consisted of 91 days, respectively. The nine
month periods ended October 3, 2021 and September
1 ) 27, 2020 consisted of 276 days and 271 days, respectively.
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 2021, in order to support MTI's key growth initiatives
and more closely align complementary technologies,
processes and capabilities, the Company reorganized
the management structure for its Energy Services and
Performance Materials operating segments to better
reflect the way performance is evaluated and resources
are allocated. As a result, Energy Services was combined
into Environmental Products under the Performance
Materials operating segment. Presented below are the
restated financial results, by product line, for each
of the quarters and full year 2020 of this operating
2 ) segment to conform to the current management structure.
Full Year
(millions of dollars) Quarter Ended Ended
--------------------------------------------- ---------
Mar. 29, Jun. 28, Sep. 27, Dec. 31, Dec. 31,
2020 2020 2020 2020 2020
--------- --------- --------- --------- ---------
Sales
-----------------------
Metalcasting $ 61.7 $ 52.8 $ 66.3 $ 77.3 $ 258.1
Household, Personal
Care & Specialty
Products 96.2 87.9 93.9 102.2 380.2
Environmental Products 36.7 37.6 30.2 27.1 131.6
Building Materials 16.8 13.2 13.5 12.4 55.9
----- ----- ----- ----- -----
Performance
Materials Segment $211.4 $191.5 $203.9 $219.0 $ 825.8
Operating Income
-----------------------
Performance Materials
Segment $ 27.3 $ 22.4 $ 28.2 $ 30.9 $ 108.8
% of Sales 12.9% 11.7% 13.8% 14.1% 13.2%
In September 2021, PCA Corporation discontinued the
use of PCC at their mill in Jackson, Alabama. As a
result, the Company recorded a non-cash impairment
of assets charge of $0.7 million and $0.4 million
in severance related and other closures costs for
3 ) its Paper PCC satellite facility at this mill.
In August 2020, Domtar Corporation announced that
they will permanently shut down their previously idled
paper machine at their mill in Ashdown, Arkansas.
As a result, the Company recorded a non-cash impairment
of assets charge of $1.1 million in the third quarter
for its Paper PCC satellite facility at this mill.
The Company also recorded lease termination costs
at one of the closed mills.
In June 2020, Verso Papers announced that they would
be idling two of their paper mills indefinitely. As
a result, the Company recorded a non-cash impairment
of assets charge of $6.0 million and $0.3 million
in severance related costs for its Paper PCC satellite
facilities at these mills.
(millions of dollars)
Quarter Ended Nine Months Ended
--------------------------------- -------------------------------
Oct. 3, Jul. 4, Sep. 27, Oct. 3, Sep. 27,