Date of Report (Date of earliest event reported): January 29, 2015
|
MINERALS TECHNOLOGIES INC.
|
(Exact name of registrant as specified in its charter)
|
Delaware
|
|
1-11430
|
|
25-1190717
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(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)
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[ ]
|
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 29, 2015 Minerals Technologies Inc. issued a press release regarding its financial performance for the fourth quarter of 2014. 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 29, 2015
|
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.
|
|
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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 29, 2015
|
|
|
MINERALS TECHNOLOGIES INC.
|
||
EXHIBIT INDEX
|
||
Exhibit No.
__________ |
|
Subject Matter
____________________________________________________________ |
99.1
|
|
Press Release dated January 29, 2015
|
EXHIBIT 99.1
|
|
News
|
|
For Immediate Release
|
Contact:
|
January 29, 2015
|
Rick Honey
|
(212) 878-1831
|
·
|
Acquisition Highly Accretive to Earnings
|
·
|
Synergies Continue to Track Ahead of Target
|
·
|
Operating Income, Excluding Special Items, increased 139% for the Fourth Quarter and 89% for the Full Year
|
·
|
Strong Cash Flows of $120 Million in Fourth Quarter; Debt Repayment of $100 Million in Second Half of 2014
|
·
|
Company Restructures Operations to Improve Performance
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
||||||||||||||||||||||||||||||||
(in millions, except per share data)
|
||||||||||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||||||||||
Quarter Ended
|
% Growth
|
Year Ended
|
% Growth
|
|||||||||||||||||||||||||||||
Dec. 31,
|
Sep. 28,
|
Dec. 31,
|
Prior | Prior |
Dec. 31,
|
Dec. 31,
|
Prior | |||||||||||||||||||||||||
2014
|
2014
|
2013
|
Qtr.
|
Year
|
2014
|
2013
|
Year
|
|||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||||||||||
Product sales
|
$
|
439.9
|
$
|
458.1
|
$
|
256.6
|
(4
|
)%
|
71
|
%
|
$
|
1,514.9
|
$
|
1,018.2
|
49
|
%
|
||||||||||||||||
Service revenue
|
76.1
|
85.4
|
0.0
|
(11
|
)%
|
*
|
210.1
|
0.0
|
*
|
|||||||||||||||||||||||
Total net sales
|
516.0
|
543.5
|
256.6
|
(5
|
)%
|
101
|
%
|
1,725.0
|
1,018.2
|
69
|
%
|
|||||||||||||||||||||
Cost of sales
|
||||||||||||||||||||||||||||||||
Cost of goods sold
|
329.5
|
337.8
|
197.6
|
(2
|
)%
|
67
|
%
|
1,141.5
|
784.5
|
46
|
%
|
|||||||||||||||||||||
Cost of service revenue
|
54.1
|
60.7
|
0.0
|
(11
|
)%
|
*
|
148.1
|
0.0
|
*
|
|||||||||||||||||||||||
Total cost of sales
|
383.6
|
398.5
|
197.6
|
(4
|
)%
|
94
|
%
|
1,289.6
|
784.5
|
64
|
%
|
|||||||||||||||||||||
Production margin
|
132.4
|
145.0
|
59.0
|
(9
|
)%
|
124
|
%
|
435.4
|
233.7
|
86
|
%
|
|||||||||||||||||||||
Marketing and administrative expenses
|
50.0
|
59.7
|
22.9
|
(16
|
)%
|
118
|
%
|
177.4
|
89.2
|
99
|
%
|
|||||||||||||||||||||
Research and development expenses
|
6.4
|
6.6
|
5.1
|
(3
|
)%
|
25
|
%
|
24.4
|
20.1
|
21
|
%
|
|||||||||||||||||||||
Amortization expense of intangible assets acquired
|
1.9
|
1.9
|
0.0
|
*
|
*
|
4.8
|
0.0
|
*
|
||||||||||||||||||||||||
Acquisition related transaction and integration costs
|
2.4
|
4.2
|
0.0
|
(43
|
)%
|
*
|
19.1
|
0.0
|
*
|
|||||||||||||||||||||||
Restructuring and other charges
|
31.4
|
5.8
|
0.0
|
*
|
*
|
43.2
|
0.0
|
*
|
||||||||||||||||||||||||
Insurance / litigation settlement (gain)
|
(2.3
|
)
|
0.0
|
(2.5
|
)
|
*
|
*
|
(2.3
|
)
|
(2.5
|
)
|
*
|
||||||||||||||||||||
Income from operations
|
42.6
|
66.8
|
33.5
|
(36
|
)%
|
27
|
%
|
168.8
|
126.9
|
33
|
%
|
|||||||||||||||||||||
Interest expense, net
|
(16.6
|
)
|
(16.0
|
)
|
0.1
|
*
|
*
|
(41.8
|
)
|
(0.3
|
)
|
*
|
||||||||||||||||||||
Premium on early extinguishment of debt
|
0.0
|
0.0
|
0.0
|
*
|
*
|
(5.8
|
)
|
0.0
|
*
|
|||||||||||||||||||||||
Other non-operating income (deductions), net
|
1.3
|
0.9
|
(0.7
|
)
|
*
|
*
|
1.8
|
(2.9
|
)
|
*
|
||||||||||||||||||||||
Total non-operating deductions, net
|
(15.3
|
)
|
(15.1
|
)
|
(0.6
|
)
|
*
|
*
|
(45.8
|
)
|
(3.2
|
)
|
*
|
|||||||||||||||||||
Income from continuing operations before tax and equity in earnings
|
27.3
|
51.7
|
32.9
|
(47
|
)%
|
(17
|
)%
|
123.0
|
123.7
|
(1
|
)%
|
|||||||||||||||||||||
Provision for taxes on income
|
6.0
|
14.4
|
9.3
|
(58
|
)%
|
(35
|
)%
|
30.8
|
34.5
|
(11
|
)%
|
|||||||||||||||||||||
Equity in earnings of affiliates, net of tax
|
0.6
|
0.3
|
0.0
|
*
|
*
|
1.2
|
0.0
|
*
|
||||||||||||||||||||||||
Income from continuing operations, net of tax
|
21.9
|
37.6
|
23.6
|
(42
|
)%
|
(7
|
)%
|
93.4
|
89.2
|
5
|
%
|
|||||||||||||||||||||
Income (loss) from discontinued operations, net of tax
|
0.1
|
0.2
|
0.0
|
*
|
*
|
2.1
|
(5.7
|
)
|
*
|
|||||||||||||||||||||||
Consolidated net income
|
22.0
|
37.8
|
23.6
|
(42
|
)%
|
(7
|
)%
|
95.5
|
83.5
|
14
|
%
|
|||||||||||||||||||||
Less: Net income attributable to non-controlling interests
|
0.7
|
0.8
|
1.0
|
(13
|
)%
|
(30
|
)%
|
3.1
|
3.2
|
(3
|
)%
|
|||||||||||||||||||||
Net Income attributable to Minerals Technologies Inc. (MTI)
|
$
|
21.3
|
$
|
37.0
|
$
|
22.6
|
(42
|
)%
|
(6
|
)%
|
$
|
92.4
|
$
|
80.3
|
15
|
%
|
||||||||||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||||||||||||||||||
Basic
|
34.6
|
34.5
|
34.4
|
34.5
|
34.7
|
|||||||||||||||||||||||||||
Diluted
|
34.9
|
34.8
|
34.8
|
34.8
|
35.0
|
|||||||||||||||||||||||||||
Earnings per share attributable to MTI:
|
||||||||||||||||||||||||||||||||
Basic:
|
||||||||||||||||||||||||||||||||
Income from continuing operations attributable to MTI
|
$
|
0.61
|
$
|
1.07
|
$
|
0.66
|
(43
|
)%
|
(8
|
)%
|
$
|
2.62
|
$
|
2.48
|
5
|
%
|
||||||||||||||||
Income (loss) from discontinued operations attributable to MTI
|
0.01
|
0.00
|
0.00
|
*
|
*
|
0.06
|
(0.16
|
)
|
*
|
|||||||||||||||||||||||
Net Income attributable to MTI common shareholders
|
$
|
0.62
|
$
|
1.07
|
$
|
0.66
|
(42
|
)%
|
(6
|
)%
|
$
|
2.68
|
$
|
2.32
|
15
|
%
|
||||||||||||||||
Diluted:
|
||||||||||||||||||||||||||||||||
Income from continuing operations attributable to MTI
|
$
|
0.61
|
$
|
1.06
|
$
|
0.65
|
(42
|
)%
|
(6
|
)%
|
$
|
2.59
|
$
|
2.46
|
5
|
%
|
||||||||||||||||
Income (loss) from discontinued operations attributable to MTI
|
0.00
|
0.00
|
0.00
|
*
|
*
|
0.06
|
(0.16
|
)
|
*
|
|||||||||||||||||||||||
Net Income attributable to MTI common shareholders
|
$
|
0.61
|
$
|
1.06
|
$
|
0.65
|
(42
|
)%
|
(6
|
)%
|
$
|
2.65
|
$
|
2.30
|
15
|
%
|
||||||||||||||||
Cash dividends declared per common share
|
$
|
0.05
|
$
|
0.05
|
$
|
0.05
|
$
|
0.20
|
$
|
0.20
|
||||||||||||||||||||||
* 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, 2014, September 28, 2014, and December 31, 2013 each consisted of 94 days, 91 days, and 93 days. As a result of the acquisition of AMCOL International on May 9, 2014, the year-to-date financial results of the acquired business reflect 237 days.
|
||||||||||||||
2)
|
During the fourth quarter of 2014, as a result of the continuation of the restructuring program initiated during the second quarter of 2014, the Company announced an additional 2 percent reduction of its workforce over the 8 percent previously announced reduction for a total permanent reduction of approximately 10 percent of its workforce. In addition, the Company realigned its business operations to improve efficiencies and profitability through consolidation of certain manufacturing operations and administrative offices. The Company will consolidate two of its Construction Technologies' European operations and one in Asia into the others in these regions. In addition, the Company will consolidate one of its Performance Materials blending facilities within U.S. The Company also recognized impairment charges for certain underutilized coiled tubing equipment within the Energy Services segment.
The impairment and restructuring charges recorded in association with this program are as follows:
|
||||||||||||||
(millions of dollars)
|
Quarter Ended
|
Year Ended
|
|||||||||||||
Dec. 31,
|
Sept. 28,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
|||||||||||
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||
Impairment of assets
|
|||||||||||||||
Performance Materials
|
$
|
0.4
|
$
|
0.0
|
$
|
0.0
|
$
|
0.4
|
$
|
0.0
|
|||||
Construction Technologies
|
11.7
|
0.0
|
0.0
|
11.7
|
0.0
|
||||||||||
Energy Services
|
11.6
|
0.0
|
0.0
|
11.6
|
0.0
|
||||||||||
Total impairment of assets charge
|
$
|
23.7
|
$
|
0.0
|
$
|
0.0
|
$
|
23.7
|
$
|
0.0
|
|||||
Restructuring and other costs
|
|||||||||||||||
Severance and other employee benefits
|
|||||||||||||||
Specialty Minerals
|
$
|
0.3
|
$
|
0.5
|
$
|
0.0
|
$
|
3.0
|
$
|
0.0
|
|||||
Refractories
|
0.1
|
0.0
|
0.0
|
0.7
|
0.0
|
||||||||||
Performance Materials
|
2.4
|
2.0
|
0.0
|
5.6
|
0.0
|
||||||||||
Construction Technologies
|
2.8
|
2.0
|
0.0
|
5.8
|
0.0
|
||||||||||
Energy Services
|
1.4
|
1.3
|
0.0
|
3.7
|
0.0
|
||||||||||
7.0
|
5.8
|
0.0
|
18.8
|
0.0
|
|||||||||||
Other costs
|
|||||||||||||||
Performance Materials
|
0.7
|
0.0
|
0.0
|
0.7
|
0.0
|
||||||||||
Total restructuring and other costs
|
$
|
7.7
|
$
|
5.8
|
$
|
0.0
|
$
|
19.5
|
$
|
0.0
|
|||||
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 quarterly periods ended December 31, 2014, September 28, 2014, and December 31, 2013 and the twelve months period ended December 31, 2014 and December 31, 2013 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. 28,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
|||||||||||
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||
Income from continuing operations attributable to MTI
|
$
|
21.2
|
$
|
36.8
|
$
|
22.6
|
$
|
90.3
|
$
|
86.0
|
|||||
Special items:
|
|||||||||||||||
Acquisition related transaction and integration costs
|
2.4
|
4.2
|
0.0
|
19.1
|
0.0
|
||||||||||
Premium on early extinguishment of debt
|
0.0
|
0.0
|
0.0
|
5.8
|
0.0
|
||||||||||
Non-cash inventory step-up charges
|
0.0
|
0.0
|
0.0
|
5.6
|
0.0
|
||||||||||
Restructuring and other charges
|
31.4
|
5.8
|
0.0
|
43.2
|
0.0
|
||||||||||
Insurance / litigation settlement (gain)
|
(2.3)
|
0.0
|
(2.5)
|
(2.3)
|
(2.5)
|
||||||||||
Related tax effects on special items
|
(10.0)
|
(3.2)
|
1.0
|
(22.6)
|
1.0
|
||||||||||
Income from continuing operations attributable to MTI, excluding special items
|
$
|
42.7
|
$
|
43.6
|
$
|
21.1
|
$
|
139.1
|
$
|
84.5
|
|||||
Diluted earnings per share, excluding special items
|
$
|
1.22
|
$
|
1.25
|
$
|
0.61
|
$
|
4.00
|
$
|
2.42
|
|||||
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, 2014, September 28, 2014, and December 31, 2013 and the twelve months period ended ended December 31, 2014, and December 31, 2013 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. 28,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
||||||||||
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||
Cash flow from continuing operations
|
$
|
119.8
|
$
|
86.9
|
$
|
44.2
|
$
|
314.1
|
$
|
137.5
|
|||||
Capital expenditures
|
19.4
|
25.7
|
11.6
|
81.8
|
43.9
|
||||||||||
Free cash flow
|
$
|
100.4
|
$
|
61.2
|
$
|
32.6
|
$
|
232.3
|
$
|
93.6
|
|||||
5)
|
The following table reflects the components of non-operating income and deductions:
|
||||||||||||||
(millions of dollars)
|
Quarter Ended
|
Year Ended
|
|||||||||||||
Dec. 31,
|
Sept. 28,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
|||||||||||
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||
Interest income
|
$
|
1.2
|
$
|
0.8
|
$
|
0.9
|
$
|
3.4
|
$
|
3.0
|
|||||
Interest expense
|
(17.8)
|
(16.8)
|
(0.8)
|
(45.2)
|
(3.3)
|
||||||||||
Premium on early extinguishment of debt
|
0.0
|
0.0
|
0.0
|
(5.8)
|
0.0
|
||||||||||
Foreign exchange gains (losses)
|
1.6
|
1.6
|
(0.6)
|
3.3
|
(2.1)
|
||||||||||
Other deductions
|
(0.3)
|
(0.7)
|
(0.1)
|
(1.5)
|
(0.8)
|
||||||||||
Non-operating income (deductions), net
|
$
|
(15.3)
|
$
|
(15.1)
|
$
|
(0.6)
|
$
|
(45.8)
|
$
|
(3.2)
|
|||||
Amortization of deferred financing costs of $1.0M, $1.1M and $2.6M are included in interest expense for the three months ended December 31, 2014 and September 28, 2014, and twelve months period ended December 31, 2014, respectively.
|
|||||||||||||||
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. 28,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
|||||||||||
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||
Net Sales
|
$
|
0.0
|
$
|
0.0
|
$
|
0.0
|
$
|
0.0
|
$
|
1.6
|
|||||
Production Margin
|
0.0
|
0.0
|
0.0
|
0.0
|
(2.1)
|
||||||||||
Total Expenses (income)
|
(0.1)
|
(0.2)
|
0.0
|
(0.3)
|
0.5
|
||||||||||
Facility closure costs accrual (reversal)
|
0.0
|
0.0
|
0.0
|
(2.4)
|
5.9
|
||||||||||
Income (loss) from operations
|
$
|
0.1
|
$
|
0.2
|
$
|
0.0
|
$
|
2.7
|
$
|
(8.5)
|
|||||
Provision (benefit) for taxes on income
|
0.0
|
0.0
|
0.0
|
0.6
|
(2.8)
|
||||||||||
Income (loss) from discontinued operations, net of tax
|
$
|
0.1
|
$
|
0.2
|
$
|
0.0
|
$
|
2.1
|
$
|
(5.7)
|
|||||
The Company reversed a facility closure accrual of $2.4 million to settle its contractual obligations at the Walsum, Germany site.
|
|||||||||||||||
7)
|
The analyst conference call to discuss operating results for the fourth quarter is scheduled for Friday, January 30, 2015 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. 28,
|
Dec. 31,
|
Prior | Prior |
Dec. 31,
|
Dec. 31,
|
Prior | |||||||||
2014
|
2014
|
2013
|
Qtr
|
Year
|
2014
|
2013
|
Year
|
||||||||||
United States
|
$
|
299.8
|
$
|
326.3
|
$
|
138.7
|
(8)%
|
116%
|
$
|
1,004.4
|
$
|
563.5
|
78%
|
||||
International
|
216.2
|
217.2
|
117.9
|
(0)%
|
83%
|
720.6
|
454.7
|
58%
|
|||||||||
Net Sales
|
$
|
516.0
|
$
|
543.5
|
$
|
256.6
|
(5)%
|
101%
|
$
|
1,725.0
|
$
|
1,018.2
|
69%
|
||||
Paper PCC
|
$
|
113.2
|
$
|
113.4
|
$
|
122.0
|
(0)%
|
(7)%
|
$
|
454.5
|
$
|
480.0
|
(5)%
|
||||
Specialty PCC
|
15.4
|
16.5
|
16.3
|
(7)%
|
(6)%
|
66.1
|
67.2
|
(2)%
|
|||||||||
PCC Products
|
$
|
128.6
|
$
|
129.9
|
$
|
138.3
|
(1)%
|
(7)%
|
$
|
520.6
|
$
|
547.2
|
(5)%
|
||||
Talc
|
$
|
13.8
|
$
|
13.8
|
$
|
12.7
|
0%
|
9%
|
$
|
55.5
|
$
|
50.9
|
9%
|
||||
Ground Calcium Carbonate
|
17.2
|
19.3
|
16.1
|
(11)%
|
7%
|
74.0
|
71.7
|
3%
|
|||||||||
Processed Minerals Products
|
$
|
31.0
|
$
|
33.1
|
$
|
28.8
|
(6)%
|
8%
|
$
|
129.5
|
$
|
122.6
|
6%
|
||||
Specialty Minerals Segment
|
$
|
159.6
|
$
|
163.0
|
$
|
167.1
|
(2)%
|
(4)%
|
650.1
|
669.8
|
(3)%
|
||||||
`
|
|||||||||||||||||
Refractory products
|
$
|
72.5
|
$
|
69.7
|
$
|
68.2
|
4%
|
6%
|
$
|
273.9
|
$
|
264.0
|
4%
|
||||
Metallurgical Products
|
20.4
|
20.7
|
21.3
|
(1)%
|
(4)%
|
85.8
|
84.4
|
2%
|
|||||||||
Refractories Segment
|
$
|
92.9
|
$
|
90.4
|
$
|
89.5
|
3%
|
4%
|
$
|
359.7
|
$
|
348.4
|
3%
|
||||
Metalcasting
|
$
|
72.0
|
$
|
70.0
|
$
|
0.0
|
3%
|
*
|
$
|
181.4
|
$
|
0.0
|
*
|
||||
Household, Personal Care & Specialty Products
|
41.8
|
42.8
|
0.0
|
(2)%
|
*
|
108.0
|
0.0
|
*
|
|||||||||
Basic Minerals & Other Products
|
27.6
|
22.8
|
0.0
|
21%
|
*
|
63.4
|
0.0
|
*
|
|||||||||
Performance Materials Segment
|
$
|
141.4
|
$
|
135.6
|
$
|
0.0
|
4%
|
*
|
$
|
352.8
|
$
|
0.0
|
*
|
||||
Environmental products
|
$
|
18.9
|
$
|
34.5
|
$
|
0.0
|
(45)%
|
*
|
$
|
70.7
|
$
|
0.0
|
*
|
||||
Building Materials & Other Products
|
27.1
|
34.6
|
0.0
|
(22)%
|
*
|
81.6
|
0.0
|
*
|
|||||||||
Construction Technologies Segment
|
$
|
46.0
|
$
|
69.1
|
$
|
0.0
|
(33)%
|
*
|
$
|
152.3
|
$
|
0.0
|
*
|
||||
Energy Services Segment
|
$
|
76.1
|
$
|
85.4
|
$
|
0.0
|
(11)%
|
*
|
$
|
210.1
|
$
|
0.0
|
*
|
||||
Net Sales
|
$
|
516.0
|
$
|
543.5
|
$
|
256.6
|
(5)%
|
101%
|
$
|
1,725.0
|
$
|
1,018.2
|
69%
|
||||
SUPPLEMENTARY DATA
|
|||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||||||
(millions of dollars)
|
|||||||||||||||||
(unaudited)
|
|||||||||||||||||
Quarter Ended
|
% Growth
|
Year Ended
|
% Growth
|
||||||||||||||
Dec. 31,
|
Sept. 28,
|
Dec. 31,
|
Prior | Prior |
Dec. 31,
|
Dec. 31,
|
Prior | ||||||||||
SEGMENT OPERATING INCOME DATA
|
2014
|
2014
|
2013
|
Qtr.
|
Year
|
2014
|
2013
|
Year
|
|||||||||
Specialty Minerals Segment
|
$
|
24.4
|
$
|
26.0
|
$
|
24.0
|
(6)%
|
2%
|
$
|
95.8
|
$
|
98.4
|
(3)%
|
||||
% of Sales
|
15.3%
|
16.0%
|
14.4%
|
14.7%
|
14.7%
|
||||||||||||
Refractories Segment
|
$
|
14.2
|
$
|
9.7
|
$
|
12.1
|
46%
|
17%
|
$
|
43.2
|
$
|
35.9
|
20%
|
||||
% of Sales
|
15.3%
|
10.7%
|
13.5%
|
12.0%
|
10.3%
|
||||||||||||
Performance Materials Segment
|
$
|
18.0
|
$
|
18.7
|
$
|
0.0
|
(4)%
|
*
|
$
|
41.0
|
$
|
0.0
|
*
|
||||
% of Sales
|
12.7%
|
13.8%
|
11.6%
|
||||||||||||||
Construction Technologies Segment
|
$
|
(9.8)
|
$
|
8.3
|
$
|
0.0
|
(218)%
|
*
|
$
|
(0.8)
|
$
|
0.0
|
*
|
||||
% of Sales
|
-21.3%
|
12.0%
|
-0.5%
|
||||||||||||||
Energy Services Segment
|
$
|
0.2
|
$
|
10.2
|
$
|
0.0
|
(98)%
|
*
|
$
|
16.3
|
$
|
0.0
|
*
|
||||
% of Sales
|
0.3%
|
11.9%
|
7.8%
|
||||||||||||||
Unallocated Corporate Expenses
|
$
|
(2.0)
|
$
|
(1.9)
|
$
|
(2.6)
|
5%
|
(23)%
|
$
|
(7.6)
|
$
|
(7.4)
|
3%
|
||||
Acquisition related transaction costs
|
$
|
(2.4)
|
$
|
(4.2)
|
$
|
0.0
|
*
|
*
|
$
|
(19.1)
|
$
|
0.0
|
*
|
||||
Consolidated
|
$
|
42.6
|
$
|
66.8
|
$
|
33.5
|
(36)%
|
27%
|
$
|
168.8
|
$
|
126.9
|
33%
|
||||
% of Sales
|
8.3%
|
12.3%
|
13.1%
|
9.8%
|
12.5%
|
||||||||||||
SPECIAL ITEMS
|
|||||||||||||||||
Specialty Minerals Segment
|
$
|
0.3
|
$
|
0.5
|
$
|
0.0
|
*
|
*
|
$
|
3.0
|
$
|
0.0
|
*
|
||||
Refractories Segment
|
$
|
(2.1)
|
$
|
0.0
|
$
|
(2.5)
|
*
|
*
|
$
|
(1.5)
|
$
|
(2.5)
|
*
|
||||
Performance Materials Segment
|
$
|
3.5
|
$
|
2.0
|
$
|
0.0
|
*
|
*
|
$
|
10.3
|
$
|
0.0
|
*
|
||||
Construction Technologies Segment
|
$
|
14.4
|
$
|
2.0
|
$
|
0.0
|
*
|
*
|
$
|
19.5
|
$
|
0.0
|
*
|
||||
Energy Services Segment
|
$
|
13.0
|
$
|
1.3
|
$
|
0.0
|
*
|
*
|
$
|
15.3
|
$
|
0.0
|
*
|
||||
Acquisition related transaction costs
|
$
|
2.4
|
$
|
4.2
|
$
|
0.0
|
(43)%
|
*
|
$
|
19.1
|
$
|
0.0
|
*
|
||||
Consolidated
|
$
|
31.5
|
$
|
10.0
|
$
|
(2.5)
|
*
|
*
|
$
|
65.7
|
$
|
(2.5)
|
*
|
||||
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 December 31, 2014, September 28, 2014, and December 31, 2013, and the twelve month periods ended December 31, 2014 and 2013 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. 28,
|
Dec. 31,
|
Prior | Prior |
Dec. 31,
|
Dec. 31,
|
Prior | |||||||||
EXCLUDING SPECIAL ITEMS
|
2014
|
2014
|
2013
|
Qtr.
|
Year
|
2014
|
2013
|
Year
|
|||||||||
Specialty Minerals Segment
|
$
|
24.7
|
$
|
26.5
|
$
|
24.0
|
(7)%
|
3%
|
$
|
98.8
|
$
|
98.4
|
0%
|
||||
% of Sales
|
15.5%
|
16.3%
|
14.4%
|
15.2%
|
14.7%
|
||||||||||||
Refractories Segment
|
$
|
12.1
|
$
|
9.7
|
$
|
9.6
|
25%
|
26%
|
$
|
41.7
|
$
|
33.4
|
25%
|
||||
% of Sales
|
13.0%
|
10.7%
|
10.7%
|
11.6%
|
9.6%
|
||||||||||||
Performance Materials Segment
|
$
|
21.5
|
20.7
|
$
|
0.0
|
4%
|
*
|
$
|
51.3
|
$
|
0.0
|
*
|
|||||
% of Sales
|
15.2%
|
15.3%
|
14.5%
|
||||||||||||||
Construction Technologies Segment
|
$
|
4.6
|
10.3
|
$
|
0.0
|
(55)%
|
*
|
$
|
18.7
|
$
|
0.0
|
*
|
|||||
% of Sales
|
10.0%
|
14.9%
|
12.3%
|
||||||||||||||
Energy Services Segment
|
$
|
13.2
|
11.5
|
$
|
0.0
|
15%
|
*
|
$
|
31.6
|
$
|
0.0
|
*
|
|||||
% of Sales
|
17.3%
|
13.5%
|
15.0%
|
||||||||||||||
Unallocated Corporate Expenses
|
$
|
(2.0)
|
$
|
(1.9)
|
$
|
(2.6)
|
5%
|
(23)%
|
$
|
(7.6)
|
$
|
(7.4)
|
3%
|
||||
Consolidated
|
$
|
74.1
|
$
|
76.8
|
$
|
31.0
|
(4)%
|
139%
|
$
|
234.5
|
$
|
124.4
|
89%
|
||||
% of Sales
|
14.4%
|
14.1%
|
12.1%
|
13.6%
|
12.2%
|
||||||||||||
* Percentage not meaningful
|
|||||||||||||||||
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||
ASSETS
|
||||||
(In Millions of Dollars)
|
||||||
December 31,
|
December 31,
|
|||||
2014*
|
2013**
|
|||||
Current assets:
|
||||||
Cash & cash equivalents
|
$
|
249.6
|
$
|
490.3
|
||
Short-term investments
|
0.8
|
15.8
|
||||
Accounts receivable, net
|
412.6
|
204.4
|
||||
Inventories
|
211.8
|
89.2
|
||||
Prepaid expenses and other current assets
|
49.8
|
15.4
|
||||
Total current assets
|
924.6
|
815.1
|
||||
Property, plant and equipment
|
2,174.2
|
1,282.3
|
||||
Less accumulated depreciation
|
992.1
|
976.3
|
||||
Net property, plant & equipment
|
1,182.1
|
306.0
|
||||
Goodwill
|
770.9
|
64.4
|
||||
Intangible assets
|
212.1
|
3.0
|
||||
Other assets and deferred charges
|
137.0
|
29.0
|
||||
Total assets
|
$
|
3,226.7
|
$
|
1,217.5
|
||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||
Current liabilities:
|
||||||
Short-term debt
|
$
|
5.6
|
$
|
5.5
|
||
Current maturities of long-term debt
|
0.3
|
8.2
|
||||
Accounts payable
|
170.4
|
94.9
|
||||
Other current liabilities
|
176.6
|
72.3
|
||||
Total current liabilities
|
352.9
|
180.9
|
||||
Long-term debt
|
1,455.5
|
75.0
|
||||
Deferred income taxes
|
314.5
|
0.0
|
||||
Other non-current liabilities
|
214.9
|
87.2
|
||||
Total liabilities
|
2,337.8
|
343.1
|
||||
Total MTI shareholders' equity
|
863.0
|
847.5
|
||||
Non-controlling Interest
|
25.9
|
26.9
|
||||
Total shareholders' equity
|
888.9
|
874.4
|
||||
Total liabilities and shareholders' equity
|
$
|
3,226.7
|
$
|
1,217.5
|
||
*
|
Unaudited
|
|||||
**
|
Condensed from audited financial statements.
|
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