0000891014-14-000004.txt : 20140130 0000891014-14-000004.hdr.sgml : 20140130 20140130170952 ACCESSION NUMBER: 0000891014-14-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20140130 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20140130 DATE AS OF CHANGE: 20140130 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MINERALS TECHNOLOGIES INC CENTRAL INDEX KEY: 0000891014 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INORGANIC CHEMICALS [2810] IRS NUMBER: 251190717 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11430 FILM NUMBER: 14561524 BUSINESS ADDRESS: STREET 1: 622 THIRD AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-6707 BUSINESS PHONE: 212-878-1800 MAIL ADDRESS: STREET 1: 622 THIRD AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-6707 8-K 1 8k4q2013.htm MTI REPORT ON FORM 8-K - 4Q 2013 EARNINGS RESULTS

 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549


FORM 8-K

CURRENT REPORT
 Pursuant To Section 13 OR 15(d) of The Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): January 30, 2014
 

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

Delaware
   
    1-11430
   
25-1190717
(State or other jurisdiction
 of incorporation)
 
(Commission File
 Number)
 
(IRS Employer
  Identification No.)

  622 Third Avenue, New York, NY
                
10017-6707
(Address of principal executive offices)
 
(Zip Code)

 
(212) 878-1800
 
(Registrant's telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.
 
[  ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[  ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[  ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[  ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
 (17 CFR 240.13e-4(c))

 
 
 




 
 
 
Item 2.02
 
Results of Operations and Financial Condition.
 
 
 
On January 30, 2014 Minerals Technologies Inc. issued a press release regarding its financial performance for the fourth quarter of 2013. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.
 
The information in this Item 2.02 and Exhibit 99.1 shall not be deemed filed for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
 
 
 
Item 9.01
 
Financial Statements and Exhibits.
 
 
 
(d)
Exhibits
 
 
 
99.1
Press Release dated January 30, 2014





SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



                                          
                                        
MINERALS TECHNOLOGIES INC.
 
 
(Registrant)
 
 
 
 
 
 
 
 
 
 
By:
/s/ Thomas J. Meek
 
 
Name:
Thomas J. Meek
 
 
Title:
 
Senior Vice President, General Counsel, Human Resources, Secretary and Chief Compliance Officer
 
 
 
  Date:  January 30, 2014
 
 









MINERALS TECHNOLOGIES INC.
 
 
EXHIBIT INDEX
 
 
 
 
Exhibit No.
 __________
     
Subject Matter                                                       
 ____________________________________________________________
 
 
 
99.1
     
Press Release dated January 30, 2014



EX-99.1 2 pressrelease.htm


EXHIBIT 99.1
News
For Immediate Release
Contact:
January 30, 2014
Rick Honey
 
(212) 878-1831




MINERALS TECHNOLOGIES ACHIEVES RECORD ANNUAL EARNINGS
 OF $2.42 PER SHARE, A 12-PERCENT INCREASE OVER 2012
----------
2013 Earnings per Share, Including Special Items, were $2.46
----------
Company Reported Fourth Quarter Earnings per Share of $0.61,
Excluding Special Items; Reported Earnings were $0.65 per Share
----------
Fourth Quarter Sales Grew 6-Percent over Prior Year
----------
2013 Highlights:

·
Fourth consecutive year of record earnings
·
Operating Income, excluding special items, increased 15% for the fourth quarter and 10% for the full year
·
Operating Margin expanded from 11.4% of sales to 12.2% for the full year, excluding special items
·
Signed two new satellite PCC contracts and four commercial agreements for FulFill® high-filler technology in 2013

NEW YORK, January 30—Minerals Technologies Inc. (NYSE: MTX) today reported record earnings per share from continuing operations of $2.42, excluding special items, for the full year of 2013 compared with earnings of $2.16 per share in the prior year, an increase of 12 percent. Reported earnings per share from continuing operations were $2.46 for the full year.

Operating income for the full year 2013 grew 10 percent to a record $124.4 million,
excluding special items, compared to $113.6 million in the prior year. This increase was due to a strong operating performance highlighted by sales growth in both segments, a 5-percent company-wide productivity improvement and continued cost and expense control. Operating income, as reported, which included an insurance settlement gain, grew 12 percent to $126.9 million, or 12.5% of sales.
 
Worldwide underlying sales grew 3 percent to $1.02 billion. Including the effect of foreign exchange, sales increased 2 percent.

Cash flow from operations for the year was $137.5 million and the company repurchased $52 million in treasury stock.

"Our strong financial performance for 2013 is evidence of the traction our growth strategies of geographic expansion, new product innovation and operational excellence have gained," said Robert S. Wetherbee, president and chief executive officer. "We have broken company earnings records for the last four years. We signed contracts for new satellite precipitated calcium carbonate plants in China and Europe, and in January 2014 we signed an agreement with UPM-Kymmene Corporation for a 100,000-ton satellite in Changshu, China. We began operations of new satellites in Thailand and India. During the year, we also added four new agreements with paper mills around the world for the adoption of our FulFill® E-325 high-filler technology, bringing the total to 14, and in January, we signed our fifteenth agreement with a European papermaker. In 2014, we will continue to advance these strategies to achieve the company's long-term growth objectives."

Full-year underlying worldwide sales for the Specialty Minerals segment, which includes the PCC and Processed Minerals product lines, increased 4 percent to $669.8 million in 2013.  Including foreign exchange, sales increased 3 percent. Income from operations for Specialty Minerals increased 12 percent to a record $98.4 million in 2013. This increase was attributable to a strong performance in Paper PCC due to contributions from the FulFill® technology, the startup of two new satellite plants, productivity improvements and pricing. The Processed Minerals product line also contributed as a result of productivity improvements, price increases and sales volume growth.

Worldwide sales of PCC, which is used primarily in the manufacturing processes of the paper industry, increased 2 percent to $547.2 million. Processed Minerals products sales increased 6 percent to $122.6 million.

"In addition to the adoption of the FulFill™ E-325 technology by four paper mills around the world, the Performance Minerals business unit, which is comprised of Processed Minerals and Specialty PCC, launched a new calcium carbonate product for reinforcement of plastic. This product, called VICRON® FRP, is for use in such applications as Sheet Molding Compound, Bulk Molding Compound and thermoset polyesters. The business unit also completed the first phase of a 10,000-ton expansion of its production line for ultrafine Specialty PCC at the company's Adams, Massachusetts, facility," said Mr. Wetherbee.

Underlying sales in the Refractories segment, which primarily serves the steel industry, increased 3 percent to $348.4 million. Including foreign exchange, sales increased 1 percent. Refractory products sales were $264.0 million, the same as the prior year. Metallurgical products sales increased 6 percent to $84.4 million. The segment achieved a record operating income of $33.4 million, excluding special items, a 2-percent increase over the same period of 2012. The segment achieved this record through strong productivity improvements, higher metallurgical wire sales and improved European sales. Operating income, as reported, was $35.9 million.

Fourth Quarter

Minerals Technologies' fourth quarter underlying worldwide sales increased 7 percent to $256.6 million from the $243.0 million in the same period in 2012. Including the effect of foreign exchange, sales increased 6 percent.

Minerals Technologies' income from operations for the quarter was $31.0 million, excluding special items, a 15-percent increase over the prior year. Operating income, as reported, grew 24 percent to $33.5 million. The company's fourth quarter earnings, a record for a fourth quarter, were $0.61 per share, excluding special items, a 15-percent increase over the $0.53 recorded in the fourth quarter of 2012. Reported earnings in the fourth quarter of 2013 were $0.65 per share, which included an insurance settlement gain.

Cash flow from operations for the quarter was $44.2 million and the company repurchased $7.5 million in treasury stock.

Fourth quarter underlying worldwide sales for the Specialty Minerals segment increased 6 percent to $167.1 million from the same period in 2012. This was attributable primarily to stronger PCC volumes in Asia and Europe, and improved sales in ground calcium carbonate, talc and Specialty PCC. Including foreign exchange, sales increased 5 percent.

Income from operations for the Specialty Minerals segment increased 15 percent to $24.0 million. Income from operations as a percentage of sales expanded to 14.4 percent of sales compared with 13.0 percent in the fourth quarter of 2012. This increase was attributable to price increases, improved profitability in Processed Minerals, productivity gains, the impact of new satellite plants coming on line and the contribution from adoption of the FulFill® technology.

Worldwide underlying sales of PCC increased 4 percent to $138.3 million.  Processed Minerals products fourth quarter sales increased 11 percent to $28.8 million. Talc sales increased 14 percent and GCC sales increased 9 percent.

Fourth quarter underlying sales in the Refractories segment increased 9 percent to $89.5 million over the fourth quarter of 2012. Operating income, excluding special items, in the fourth quarter of 2013 was $9.6 million, a 26-percent increase over the prior year. This was primarily attributable to increased sales and profits in Europe and Asia and to higher equipment sales in the quarter. Operating income, as reported was $12.1 million.

Refractory products underlying sales increased 9 percent to $68.2 million. Metallurgical products underlying sales increased 8 percent to $21.3 million.

"We continue on a strong growth and performance track based upon our strategies of geographic expansion and new product innovation," said Mr. Wetherbee.  "In the fourth quarter, underlying sales increased 7 percent over the prior year, which is our third consecutive quarter of revenue growth. As a strong operating company, we will continue our focus on productivity and cost reduction through our Operational Excellence initiative and employee engagement. Our Paper PCC product line continues its solid performance through expansion into Asia and the continued global adoption of our FulFill® high-filler technology, and our Refractories and Performance Minerals product lines continue on a strong performance track. Looking ahead, we expect continued performance improvement and global growth."

----------
Minerals Technologies has scheduled an analyst conference call for Friday, January 31, 2014 at 11:00 a.m. to discuss operating results for the fourth quarter. The conference call will be broadcast over the company's website, www.mineralstech.com.
####
----------
This press release may contain forward-looking statements, which describe or are based on current expectations; in particular, statements of anticipated changes in the business environment in which the company operates and in the company's future operating results. 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 2012 Annual Report on Form 10-K and in our other reports filed with the Securities and Exchange Commission.
####


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
 
(in thousands, except per share data)
 
 
 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
% Growth
 
Year Ended
 
% Growth
 
 
 
 
 
 
Dec. 31,
 
Sept. 29,
 
Dec. 31,
 
 
 
 
 
 
Dec. 31,
 
Dec. 31,
 
 
 
 
 
 
 
 
2013
 
2013
 
2012
 
Prior Qtr.
 
Prior Year
 
 
2013
 
2012
 
Prior Year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
256,633
$
254,192
$
243,045
 
1%
 
6%
 
$
1,018,181
$
996,764
 
2%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
 
197,640
 
194,272
 
188,775
 
2%
 
5%
 
 
784,536
 
774,466
 
1%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Production margin
 
58,993
 
59,920
 
54,270
 
(2)%
 
9%
 
 
233,645
 
222,298
 
5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and administrative expenses
 
22,914
 
21,861
 
22,229
 
5%
 
3%
 
 
89,231
 
88,485
 
1%
 
 
Research and development expenses
 
5,108
 
5,302
 
4,995
 
(4)%
 
2%
 
 
20,053
 
20,173
 
(1)%
 
 
Insurance settlement (gain)
 
(2,491)
 
0
 
0
 
*
 
*
 
 
(2,491)
 
0
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
33,462
 
32,757
 
27,046
 
2%
 
24%
 
 
126,852
 
113,640
 
12%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-operating deductions - net
 
(569)
 
(1,234)
 
(979)
 
(54)%
 
(42)%
 
 
(3,142)
 
(2,995)
 
5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, before tax
 
32,893
 
31,523
 
26,067
 
4%
 
26%
 
 
123,710
 
110,645
 
12%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for taxes on income
 
9,295
 
8,952
 
6,927
 
4%
 
34%
 
 
34,515
 
31,926
 
8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, net of tax
 
23,598
 
22,571
 
19,140
 
5%
 
23%
 
 
89,195
 
78,719
 
13%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations, net of tax
 
(39)
 
(21)
 
(901)
 
*
 
*
 
 
(5,744)
 
(2,450)
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated net income
 
23,559
 
22,550
 
18,239
 
4%
 
29%
 
 
83,451
 
76,269
 
9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: Net income attributable to non-controlling interests
 
969
 
686
 
469
 
41%
 
107%
 
 
3,121
 
2,122
 
47%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income attributable to Minerals Technologies Inc. (MTI)
$
22,590
$
21,864
$
17,770
 
3%
 
27%
 
$
80,330
$
74,147
 
8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
34,362
 
34,615
 
35,196
 
 
 
 
 
 
34,690
 
35,340
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
 
34,752
 
34,881
 
35,467
 
 
 
 
 
 
34,976
 
35,529
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share attributable to MTI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations attributable to MTI
$
0.66
$
0.63
$
0.53
 
5%
 
25%
 
$
2.48
$
2.17
 
14%
 
 
 
 
Loss from discontinued operations attributable to MTI
 
0.00
 
0.00
 
(0.03)
 
*
 
*
 
 
(0.17)
 
(0.07)
 
*
 
 
 
 
Net Income attributable to MTI common shareholders
$
0.66
$
0.63
$
0.50
 
5%
 
32%
 
$
2.32
$
2.10
 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations attributable to MTI
$
0.65
$
0.63
$
0.53
 
3%
 
23%
 
$
2.46
$
2.16
 
14%
 
 
 
 
Loss from discontinued operations attributable to MTI
 
0.00
 
0.00
 
(0.03)
 
*
 
*
 
 
(0.16)
 
(0.07)
 
*
 
 
 
 
Net Income attributable to MTI common shareholders
$
0.65
$
0.63
$
0.50
 
3%
 
30%
 
$
2.30
$
2.09
 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends declared per common share
$
0.05
$
0.05
$
0.05
 
 
 
 
 
$
0.20
$
0.125
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Percentage not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1)
For comparative purposes, the quarterly periods ended December 31, 2013, September 29, 2013 and December 31, 2012 consisted of 93 days, 91 days, and 92 days, respectively.
2)
This press release contains a measure of underlying sales growth year-over-year excluding the impact of foreign exchange.  This is a non-GAAP measure.  We believe this measure provides investors with a more complete understanding of underlying sales trends by providing sales growth on a a consistent basis.  The reconcilation of reported sales growth to underlying sales growth for the fourth quarter is as follows:
 
 
 
 
Unfavorable
 
 
 
 
 
 
 
 
 
 
 
 
Reported
 
 Foreign
 
Underlying
 
 
 
 
 
 
 
 
 
 
Net Sales
 
Exchange
 
Sales
 
 
 
 
 
 
 
 
 
 
Growth
 
Impact
 
Growth
 
 
 
 
 
 
 
 
Specialty Minerals Segment
 
4.7%
 
0.9%
 
5.6%
 
 
 
 
 
 
 
 
Refractories Segment
 
7.3%
 
1.3%
 
8.6%
 
 
 
 
 
 
 
 
Minerals Technologies Inc.
 
5.6%
 
1.1%
 
6.7%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The reconcilation of reported sales growth to underlying sales growth for full year 2013 is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unfavorable
 
 
 
 
 
 
 
 
 
 
 
 
Reported
 
 Foreign
 
Underlying
 
 
 
 
 
 
 
 
 
 
Net Sales
 
Exchange
 
Sales
 
 
 
 
 
 
 
 
 
 
Growth
 
Impact
 
Growth
 
 
 
 
 
 
 
 
Specialty Minerals Segment
 
2.5%
 
1.0%
 
3.5%
 
 
 
 
 
 
 
 
Refractories Segment
 
1.5%
 
1.5%
 
3.0%
 
 
 
 
 
 
 
 
Minerals Technologies Inc.
 
2.1%
 
1.2%
 
3.3%
 
 
 
 
 
 
 
 
 
 
 
3)
To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of the Company's non-GAAP earnings per share, excluding special items, for the three month periods ended December 31, 2013, September 29, 2013 and December 31, 2012 and the twelve month periods ended December 31, 2013 and December 31, 2012, 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 feels 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
 
 
 
Year Ended
 
 
 
Dec. 31,
 
Sept. 29,
 
Dec. 31,
 
 
 
Dec. 31,
 
Dec. 31,
 
 
 
2013
 
2013
 
2012
 
 
 
2013
 
2012
 
Diluted earnings per share from continuing operations attributable to MTI
$
0.65
$
0.63
$
0.53
 
 
$
2.46
$
2.16
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special items:
 
 
 
 
 
 
 
 
 
 
 
 
 
Insurance settlement (gain), net of tax
 
(0.04)
 
0.00
 
0.00
 
 
 
(0.04)
 
0.00
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per share from continuing operations attributable to MTI, excluding special items
$
0.61
$
0.63
$
0.53
 
 
$
2.42
$
2.16
 
 
 
4)
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 December 31, 2013, September 29, 2013  and December 31, 2012  and the twelve month periods ended December 31, 2013 and December 31, 2012 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
 
 
 
Year Ended
 
 
(millions of dollars)
 
Dec. 31,
 
Sept. 29,
 
Dec. 31,
 
 
 
Dec. 31,
 
Dec. 31,
 
 
 
 
2013
 
2013
 
2012
 
 
 
2013
 
2012
 
 
Cash flow from continuing operations
$
44.2
$
33.5
$
34.8
 
 
$
137.5
$
142.1
 
 
Capital expenditures
 
11.6
 
10.4
 
15.4
 
 
 
43.9
 
52.1
 
 
Free cash flow
$
32.6
$
23.1
$
19.4
 
 
$
93.6
$
90.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5)
The following table reflects the components of non-operating income and deductions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(millions of dollars)
 
Quarter Ended
 
 
 
Year Ended
 
 
 
 
Dec. 31,
 
Sept. 29,
 
Dec. 31,
 
 
 
Dec. 31,
 
Dec. 31,
 
 
 
 
2013
 
2013
 
2012
 
 
 
2013
 
2012
 
 
          Interest income
$
0.9
$
0.7
$
0.7
 
 
$
3.0
$
3.2
 
 
          Interest expense
 
(0.8)
 
(0.8)
 
(0.8)
 
 
 
(3.3)
 
(3.2)
 
 
          Foreign exchange losses
 
(0.6)
 
(0.9)
 
(0.6)
 
 
 
(2.1)
 
(1.4)
 
 
          Other deductions
 
(0.1)
 
(0.2)
 
(0.3)
 
 
 
(0.7)
 
(1.6)
 
 
             Non-operating deductions, net
$
(0.6)
$
(1.2)
$
(1.0)
 
 
$
(3.1)
$
(3.0)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6)
During the second quarter of 2013, the Company ceased operations at its Paper PCC merchant plant in Walsum, Germany and reclassified such operations as discontinued.
 
 
The following table details selected financial information for the Walsum plant included within discontinued operations in the Consolidated Statements of Income:
 
(millions of dollars)
 
Quarter Ended
 
 
 
Year Ended
 
 
 
 
 
Dec. 31,
 
Sept. 29,
 
Dec. 31,
 
 
 
Dec. 31,
 
Dec. 31,
 
 
 
 
 
2013
 
2013
 
2012
 
 
 
2013
 
2012
 
 
 
Net Sales
$
0.0
$
0.0
$
1.2
 
 
$
1.6
$
8.9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Production Margin
 
0.0
 
0.0
 
(1.2)
 
 
 
(2.1)
 
(2.9)
 
 
 
Total Expenses
 
0.0
 
0.0
 
0.1
 
 
 
0.5
 
0.7
 
 
 
Facility closure costs
 
0.0
 
0.0
 
0.0
 
 
 
5.9
 
0.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss from operations
$
0.0
$
0.0
$
(1.3)
 
 
$
(8.5)
$
(3.6)
 
 
 
Benefit for taxes on income
 
0.0
 
0.0
 
(0.4)
 
 
 
(2.8)
 
(1.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations, net of tax
$
0.0
$
0.0
$
(0.9)
 
 
$
(5.7)
$
(2.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7)
The analyst conference call to discuss operating results for the fourth quarter is scheduled for Friday, January 31, 2014 at 11:00 am 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
 
 
Year Ended
 
 % Growth
SALES DATA
 
Dec. 31,
 
Sept. 29,
 
Dec. 31,
 
 
 
 
 
 
Dec. 31,
 
Dec. 31,
 
 
 
 
2013
 
2013
 
2012
 
Prior Qtr
 
Prior Year
 
 
2013
 
2012
 
Prior Year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
138.7
$
142.1
$
135.0
 
(2)%
 
3%
 
$
563.5
$
562.5
 
0%
International
 
117.9
 
112.1
 
108.0
 
5%
 
9%
 
 
454.7
 
434.3
 
5%
      Net Sales
$
256.6
$
254.2
$
243.0
 
1%
 
6%
 
$
1,018.2
$
996.8
 
2%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Paper PCC
$
122.0
$
119.3
$
117.7
 
2%
 
4%
 
$
480.0
$
471.5
 
2%
Specialty PCC
 
16.3
 
16.6
 
16.1
 
(2)%
 
1%
 
 
67.2
 
65.9
 
2%
PCC Products
$
138.3
$
135.9
$
133.8
 
2%
 
3%
 
$
547.2
$
537.4
 
2%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Talc
$
12.7
$
12.8
$
11.1
 
(1)%
 
14%
 
$
50.9
$
48.1
 
6%
Ground Calcium Carbonate
 
16.1
 
18.7
 
14.8
 
(14)%
 
9%
 
 
71.7
 
67.9
 
6%
Processed Minerals Products
$
28.8
$
31.5
$
25.9
 
(9)%
 
11%
 
$
122.6
$
116.0
 
6%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Minerals Segment
$
167.1
$
167.4
$
159.7
 
(0)%
 
5%
 
$
669.8
$
653.4
 
3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refractory products
$
68.2
$
66.3
$
63.5
 
3%
 
7%
 
$
264.0
$
264.1
 
(0)%
Metallurgical Products
 
21.3
 
20.5
 
19.8
 
4%
 
8%
 
 
84.4
 
79.3
 
6%
Refractories Segment
$
89.5
$
86.8
$
83.3
 
3%
 
7%
 
$
348.4
$
343.4
 
1%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Net Sales
$
256.6
$
254.2
$
243.0
 
1%
 
6%
 
$
1,018.2
$
996.8
 
2%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SEGMENT OPERATING INCOME DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Minerals Segment
$
24.0
$
26.0
$
20.8
 
(8)%
 
15%
 
$
98.4
$
87.7
 
12%
% of Sales
 
14.4%
 
15.5%
 
13.0%
 
 
 
 
 
 
14.7%
 
13.4%
 
 
Refractories Segment
$
12.1
$
8.4
$
7.6
 
44%
 
59%
 
$
35.9
$
32.6
 
10%
% of Sales
 
13.5%
 
9.7%
 
9.1%
 
 
 
 
 
 
10.3%
 
9.5%
 
 
Unallocated Corporate Expenses
$
(2.6)
$
(1.6)
$
(1.4)
 
63%
 
86%
 
$
(7.4)
$
(6.7)
 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
33.5
$
32.8
$
27.0
 
2%
 
24%
 
$
126.9
$
113.6
 
12%
% of Sales
 
13.1%
 
12.9%
 
11.1%
 
 
 
 
 
 
12.5%
 
11.4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SEGMENT SPECIAL ITEMS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Minerals Segment
$
0.0
$
0.0
$
0.0
 
*
 
*
 
$
0.0
$
0.0
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refractories Segment
$
(2.5)
$
0.0
$
0.0
 
*
 
*
 
$
(2.5)
$
0.0
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
(2.5)
$
0.0
$
0.0
 
*
 
*
 
$
(2.5)
$
0.0
 
*
 
 
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 (insurance settlement gain set forth in the above table), for the three month periods ended December 31, 2013, September 29, 2013 and December 31, 2012, and the twelve month periods ended December 31, 2013 and 2012, 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 feels inclusion of these non-GAAP measures also provides consistency in its financial reporting and facilitates investors' understanding of historic operating trends.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
% Growth
 
 
Year Ended
 
 
 
% Growth
SEGMENT OPERATING INCOME,
 
Dec. 31,
 
Sept. 29,
 
Dec. 31,
 
 
 
 
 
 
Dec. 31,
 
Dec. 31,
 
 
     EXCLUDING SPECIAL ITEMS
 
2013
 
2013
 
2012
 
Prior Qtr.
 
Prior Year
 
 
2013
 
2012
 
Prior Year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Minerals Segment
$
24.0
$
26.0
$
20.8
 
(8)%
 
15%
 
$
98.4
$
87.7
 
12%
% of Sales
 
14.4%
 
15.5%
 
13.0%
 
 
 
 
 
 
14.7%
 
13.4%
 
 
Refractories Segment
$
9.6
$
8.4
$
7.6
 
14%
 
26%
 
$
33.4
$
32.6
 
2%
% of Sales
 
10.7%
 
9.7%
 
9.1%
 
 
 
 
 
 
9.6%
 
9.5%
 
 
Unallocated Corporate Expenses
$
(2.6)
$
(1.6)
$
(1.4)
 
63%
 
86%
 
$
(7.4)
$
(6.7)
 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
31.0
$
32.8
$
27.0
 
(5)%
 
15%
 
$
124.4
$
113.6
 
10%
% of Sales
 
12.1%
 
12.9%
 
11.1%
 
 
 
 
 
 
12.2%
 
11.4%
 
 
* Percentage not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
(In Thousands of Dollars)
 
 
 
 
 
 
 
 
December 31,
 
December 31,
 
 
 
 
2013*
 
2012**
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash & cash equivalents
$
490,267
$
454,092
 
Short-term investments
 
15,769
 
14,178
 
Accounts receivable, net
 
204,449
 
193,328
 
Inventories
 
 
89,169
 
84,569
 
Prepaid expenses and other current assets
 
15,463
 
18,318
 
 
Total current assets
 
815,117
 
764,485
 
 
 
 
 
 
 
 
Property, plant and equipment
 
1,282,336
 
1,261,952
 
Less accumulated depreciation
 
976,265
 
944,283
 
 
Net property, plant & equipment
 
306,071
 
317,669
 
 
 
 
 
 
 
 
Goodwill
 
 
64,432
 
65,829
 
Other assets and deferred charges
 
31,927
 
63,206
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
1,217,547
$
1,211,189
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Short-term debt
$
5,504
$
7,111
 
Current maturities of long-term debt
 
8,200
 
76,977
 
Accounts payable
 
94,855
 
98,371
 
Other current liabilities
 
72,335
 
67,639
 
 
Total current liabilities
 
180,894
 
250,098
 
 
 
 
 
 
 
 
Long-term debt
 
75,000
 
8,478
 
Other non-current liabilities
 
87,245
 
138,894
 
 
Total liabilities
 
343,139
 
397,470
 
 
 
 
 
 
 
 
Total MTI shareholders' equity
 
852,097
 
790,411
 
Non-controlling Interest
 
22,311
 
23,308
 
 
Total shareholders' equity
 
874,408
 
813,719
 
 
 
 
 
 
 
 
 
Total liabilities and shareholders' equity
$
1,217,547
$
1,211,189
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Unaudited
 
 
 
 
 
**
Condensed from audited financial statements.
 
 
 
 
 
 
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