|
|
|
(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
|
|
|
|
|
No ☐
|
|
No ☐
|
|
Accelerated Filer ☐
|
Non-accelerated Filer ☐
|
Smaller Reporting Company
|
Emerging Growth Company
|
Yes
|
No ☒
|
Page No.
|
||
PART I. FINANCIAL INFORMATION
|
||
Item 1.
|
Financial Statements:
|
|
Condensed Consolidated Statements of Income for the three-month and six-month periods ended July 3, 2022 and July 4, 2021 (Unaudited)
|
3
|
|
Condensed Consolidated Statements of Comprehensive
Income for the three-month and six-month periods ended July 3, 2022 and July 4, 2021 (Unaudited)
|
4
|
|
Condensed Consolidated Balance Sheets as of July 3, 2022 (Unaudited) and December 31, 2021
|
5
|
|
Condensed Consolidated Statements of Cash Flows for the six-month periods ended July 3, 2022
and July 4, 2021 (Unaudited)
|
6
|
|
Condensed Consolidated Statements of Changes in Shareholders'
Equity for the three-month periods ended July 3, 2022 and April 3, 2022 and July 4, 2021 and April 4, 2021 (Unaudited)
|
7
|
|
8
|
||
19
|
||
Item 2.
|
20
|
|
Item 3.
|
31
|
|
Item 4.
|
32
|
|
PART II. OTHER INFORMATION
|
||
Item 1.
|
32
|
|
Item 1A.
|
32
|
|
Item 2.
|
32
|
|
Item 3.
|
32
|
|
Item 4.
|
32
|
|
Item 5.
|
33
|
|
Item 6.
|
33
|
|
34
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(millions of dollars, except per share data)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
Jul. 3,
2022
|
Jul. 4,
2021
|
||||||||||||
Net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cost of goods sold
|
|
|
|
|
||||||||||||
Production margin
|
|
|
|
|
||||||||||||
Marketing and administrative expenses
|
|
|
|
|
||||||||||||
Research and development expenses
|
|
|
|
|
||||||||||||
Acquisition related transaction and integration costs
|
|
|
|
|
||||||||||||
Litigation costs
|
|
|
|
|
||||||||||||
Income from operations
|
|
|
|
|
||||||||||||
Interest expense, net
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Non-cash pension settlement charge
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Other non-operating income (deductions), net
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|||||||||
Total non-operating deductions, net
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Income before tax and equity in earnings
|
|
|
|
|
||||||||||||
Provision for taxes on income
|
|
|
|
|
||||||||||||
Equity in earnings of affiliates, net of tax
|
|
|
|
|
||||||||||||
Consolidated net income
|
|
|
|
|
||||||||||||
Less:
|
||||||||||||||||
Net income attributable to non-controlling interests
|
|
|
|
|
||||||||||||
Net income attributable to Minerals Technologies Inc.
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Earnings per share:
|
||||||||||||||||
Basic:
|
||||||||||||||||
Income attributable to Minerals Technologies Inc.
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted:
|
||||||||||||||||
Income attributable to Minerals Technologies Inc.
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cash dividends declared per common share
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Shares used in computation of earnings per share:
|
||||||||||||||||
Basic
|
|
|
|
|
||||||||||||
Diluted
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(millions of dollars)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
Jul. 3,
2022
|
Jul. 4,
2021
|
||||||||||||
Consolidated net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Foreign currency translation adjustments
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Pension and postretirement plan adjustments
|
|
|
|
|
||||||||||||
Unrealized gains (losses) on derivative instruments
|
|
(
|
)
|
|
|
|||||||||||
Total other comprehensive income (loss), net of tax
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Total comprehensive income including non-controlling interests
|
|
|
|
|
||||||||||||
Comprehensive (income) loss attributable to non-controlling interests
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Comprehensive income attributable to Minerals Technologies Inc.
|
$
|
|
$
|
|
$
|
|
$
|
|
(millions of dollars)
|
Jul. 3,
2022*
|
Dec. 31,
2021 **
|
||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Short-term investments
|
|
|
||||||
Accounts receivable, net
|
|
|
||||||
Inventories
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
Property, plant and equipment
|
|
|
||||||
Less accumulated depreciation and depletion
|
(
|
)
|
(
|
)
|
||||
Property, plant and equipment, net
|
|
|
||||||
Goodwill
|
|
|
||||||
Intangible assets
|
|
|
||||||
Deferred income taxes
|
|
|
||||||
Other assets and deferred charges
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Short-term debt
|
$
|
|
$
|
|
||||
Current maturities of long-term debt
|
|
|
||||||
Accounts payable
|
|
|
||||||
Other current liabilities
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Long-term debt, net of unamortized discount and deferred financing costs
|
|
|
||||||
Deferred income taxes
|
|
|
||||||
Accrued pension and post-retirement benefits
|
|
|
||||||
Other non-current liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Shareholders' equity:
|
||||||||
Common stock
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Less common stock held in treasury
|
(
|
)
|
(
|
)
|
||||
Total Minerals Technologies Inc. shareholders' equity
|
|
|
||||||
Non-controlling interests
|
|
|
||||||
Total shareholders' equity
|
|
|
||||||
Total liabilities and shareholders' equity
|
$
|
|
$
|
|
* |
|
** |
|
Six Months Ended
|
||||||||
(millions of dollars)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
||||||
Operating Activities:
|
||||||||
Consolidated net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation, depletion and amortization
|
|
|
||||||
Non-cash pension settlement charge
|
|
|
||||||
Reduction of right of use asset
|
|
|
||||||
Other non-cash items
|
|
|
||||||
Pension plan funding
|
(
|
)
|
(
|
)
|
||||
Net changes in operating assets and liabilities
|
(
|
)
|
(
|
)
|
||||
Net cash provided by operating activities
|
|
|
||||||
Investing Activities:
|
||||||||
Purchases of property, plant and equipment, net
|
(
|
)
|
(
|
)
|
||||
Acquisition of business, net of cash acquired
|
(
|
)
|
|
|||||
Proceeds from sale of assets
|
|
|
||||||
Proceeds from sale of short-term investments
|
|
|
||||||
Purchases of short-term investments
|
(
|
)
|
(
|
)
|
||||
Other investing activities
|
|
|
||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Financing Activities:
|
||||||||
Repayment of long-term debt
|
(
|
)
|
(
|
)
|
||||
Proceeds from short-term debt
|
|
|
||||||
Purchase of common stock for treasury
|
(
|
)
|
(
|
)
|
||||
Proceeds from issuance of stock under option plan
|
|
|
||||||
Excess tax benefits related to stock incentive programs
|
(
|
)
|
(
|
)
|
||||
Dividends paid to non-controlling interests
|
(
|
)
|
(
|
)
|
||||
Cash dividends paid
|
(
|
)
|
(
|
)
|
||||
Net cash provided by (used in) financing activities
|
(
|
)
|
(
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(
|
)
|
(
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
(
|
)
|
|
|||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Interest paid
|
$
|
|
$
|
|
||||
Income taxes paid
|
$
|
|
$
|
|
||||
Non-cash financing activities:
|
||||||||
Treasury stock purchases settled after period end
|
$
|
|
$
|
|
Equity Attributable to Minerals Technologies Inc.
|
||||||||||||||||||||||||||||
(millions of dollars)
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Loss
|
Treasury
Stock
|
Non-controlling
Interests
|
Total
|
|||||||||||||||||||||
Balance as of December 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||
Net income
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other comprehensive income (loss)
|
|
|
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||
Dividends declared
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|||||||||||||||||||
Dividends paid to non-controlling interests
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Issuance of shares pursuant to employee stock compensation plans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Purchase of common stock for treasury
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Conversion of RSU's for tax withholding
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||||||||||||||
Balance as of April 3, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||
Net income
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other comprehensive loss
|
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||
Dividends declared
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|||||||||||||||||||
Dividends paid to non-controlling interests
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Issuance of shares pursuant to employee stock compensation plans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Purchase of common stock for treasury
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of July 3, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
Equity Attributable to Minerals Technologies Inc.
|
||||||||||||||||||||||||||||
(millions of dollars)
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Loss
|
Treasury
Stock
|
Non-controlling
Interests
|
Total
|
|||||||||||||||||||||
Balance as of December 31, 2020
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||
Net income
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other comprehensive loss
|
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||
Dividends declared
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|||||||||||||||||||
Dividends paid to non-controlling interests
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Issuance of shares pursuant to employee stock compensation plans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Purchase of common stock for treasury
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Conversion of RSU's for tax withholding
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||||||||||||||
Balance as of April 4, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||
Net income
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Dividends declared
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|||||||||||||||||||
Dividends paid to non-controlling interests
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Issuance of shares pursuant to employee stock compensation plans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Purchase of common stock for treasury
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of July 4, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
–
|
The Performance Materials segment is a leading global supplier of bentonite and bentonite-related products 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 and remediation projects as well as offers a range of patented and unpatented
technologies, products and services to the upstream and downstream oil and gas sector throughout the world.
|
–
|
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.
|
(millions of dollars)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
Net Sales
|
Jul. 3,
2022
|
Jul. 4,
2021
|
Jul. 3,
2022
|
Jul. 4,
2021
|
||||||||||||
Household, Personal Care & Specialty Products
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Metalcasting
|
|
|
|
|
||||||||||||
Environmental Products
|
|
|
|
|
||||||||||||
Building Materials
|
|
|
|
|
||||||||||||
Performance Materials
|
|
|
|
|
||||||||||||
Paper PCC
|
|
|
|
|
||||||||||||
Specialty PCC
|
|
|
|
|
||||||||||||
Ground Calcium Carbonate
|
|
|
|
|
||||||||||||
Talc
|
|
|
|
|
||||||||||||
Specialty Minerals
|
|
|
|
|
||||||||||||
Refractory Products
|
|
|
|
|
||||||||||||
Metallurgical Products
|
|
|
|
|
||||||||||||
Refractories
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(millions of dollars)
|
Preliminary Allocation
Previously Reported
on Form 10-K as of
July 3, 2022
|
|||
Accounts receivable
|
$
|
|
||
Inventories
|
|
|||
Other current assets
|
|
|||
Property, plant and equipment
|
|
|||
Goodwill
|
|
|||
Intangible assets
|
|
|||
Total assets acquired
|
|
|||
Accounts payable
|
|
|||
Accrued expenses
|
|
|||
Total liabilities assumed
|
|
|||
Net assets acquired
|
$
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(in millions, except per share data)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
Jul. 3,
2022
|
Jul. 4,
2021
|
||||||||||||
Net income attributable to Minerals Technologies Inc.
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average shares outstanding
|
|
|
|
|
||||||||||||
Dilutive effect of stock options and stock units
|
|
|
|
|
||||||||||||
Weighted average shares outstanding, adjusted
|
|
|
|
|
||||||||||||
Basic earnings per share attributable to Minerals Technologies Inc.
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted earnings per share attributable to Minerals Technologies Inc.
|
$
|
|
$
|
|
$
|
|
$
|
|
(millions of dollars)
|
||||
Restructuring liability, December 31, 2021
|
$
|
|
||
Additional provision
|
|
|||
Cash payments
|
(
|
)
|
||
Restructuring liability, July 3, 2022
|
$
|
|
(millions of dollars)
|
Jul. 3,
2022
|
Dec. 31,
2021
|
||||||
Raw materials
|
$
|
|
$
|
|
||||
Work-in-process
|
|
|
||||||
Finished goods
|
|
|
||||||
Packaging and supplies
|
|
|
||||||
Total inventories
|
$
|
|
$
|
|
July 3, 2022
|
December 31, 2021
|
|||||||||||||||||||
(millions of dollars)
|
Weighted Average
Useful Life
(Years)
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
|||||||||||||||
Tradenames
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Technology
|
|
|
|
|
|
|||||||||||||||
Patents and trademarks
|
|
|
|
|
|
|||||||||||||||
Customer relationships
|
|
|
|
|
|
|||||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
●
|
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)
|
Jul. 3,
2022
|
December 31,
2021
|
||||||
Term Loan Facility-Variable Tranche due
|
$
|
|
$
|
|
||||
Senior Notes due ,
net of unamortized deferred financing costs of $
|
|
|
||||||
Netherlands Term Loan due
|
|
|
||||||
Japan Loan Facilities
|
|
|
||||||
Austria Term Loan due
|
|
|
||||||
Slovakia Term Loan due
|
|
|
||||||
Total
|
|
|
||||||
Less: Current maturities
|
|
|
||||||
Total long-term debt
|
$
|
|
$
|
|
Pension Benefits
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(millions of dollars)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
Jul. 3,
2022
|
Jul. 4,
2021
|
||||||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest cost
|
|
|
|
|
||||||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Amortization:
|
||||||||||||||||
Prior service cost
|
|
|
|
|
||||||||||||
Recognized net actuarial loss
|
|
|
|
|
||||||||||||
Settlement loss
|
|
|
|
|
||||||||||||
Net periodic benefit cost
|
$
|
|
$
|
|
$
|
|
$
|
|
Post-Retirement Benefits
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(millions of dollars)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
Jul. 3,
2022
|
Jul. 4,
2021
|
||||||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest cost
|
|
|
|
|
||||||||||||
Amortization:
|
||||||||||||||||
Recognized net actuarial (gain) loss
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net periodic benefit cost
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(millions of dollars)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
Jul. 3,
2022
|
Jul. 4,
2021
|
||||||||||||
Amortization of pension items:
|
||||||||||||||||
Pre-tax amount
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Tax
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net of tax
|
$
|
|
$
|
|
$
|
|
$
|
|
(millions of dollars)
|
Foreign Currency
Translation Adjustment
|
Unrecognized
Pension Costs
|
Net Gain (Loss)
on Derivative Instruments
|
Total
|
||||||||||||
Balance as of December 31, 2021
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Amounts reclassified from AOCI
|
|
|
|
|
||||||||||||
Net current period other comprehensive income (loss)
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Balance as of July 3, 2022
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(millions of dollars)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
Jul. 3,
2022
|
Jul. 4,
2021
|
||||||||||||
Net Sales
|
||||||||||||||||
Performance Materials
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Specialty Minerals
|
|
|
|
|
||||||||||||
Refractories
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Income from Operations
|
||||||||||||||||
Performance Materials
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Specialty Minerals
|
|
|
|
|
||||||||||||
Refractories
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(millions of dollars)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
Jul. 3,
2022
|
Jul. 4,
2021
|
||||||||||||
Income from operations for reportable segments
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Acquisition related transaction and integration costs
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Litigation costs
|
(
|
)
|
|
(
|
)
|
|
||||||||||
Unallocated and other corporate expenses
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Consolidated income from operations
|
|
|
|
|
||||||||||||
Non-operating deductions, net
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Income before tax and equity in earnings
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(millions of dollars)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
Jul. 3,
2022
|
Jul. 4,
2021
|
||||||||||||
Household, Personal Care & Specialty Products
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Metalcasting
|
|
|
|
|
||||||||||||
Environmental Products
|
|
|
|
|
||||||||||||
Building Materials
|
|
|
|
|
||||||||||||
Paper PCC
|
|
|
|
|
||||||||||||
Specialty PCC
|
|
|
|
|
||||||||||||
Ground Calcium Carbonate
|
|
|
|
|
||||||||||||
Talc
|
|
|
|
|
||||||||||||
Refractory Products
|
|
|
|
|
||||||||||||
Metallurgical Products
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
● |
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 FLUORO-SORB® products which remediate contamination of Per-and polyflouroalkyl substances (PFAS) and Perflourooctane sulfanate
(PFOS).
|
● |
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.
|
● |
Continue the development of our proprietary products for agricultural applications worldwide.
|
● |
Develop multiple high-filler technologies under the FulFill® platform of
products, to increase the fill rate in freesheet paper and continue to progress with commercial discussions and full-scale paper machine trials.
|
● |
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.
|
● |
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
|
||||||||||||
(millions of dollars)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
%
Change
|
|||||||||
Net sales
|
$
|
557.0
|
$
|
455.6
|
22
|
%
|
||||||
Cost of sales
|
429.7
|
340.2
|
26
|
%
|
||||||||
Production margin
|
127.3
|
115.4
|
10
|
%
|
||||||||
Production margin %
|
22.9
|
%
|
25.3
|
%
|
||||||||
Marketing and administrative expenses
|
48.8
|
46.4
|
5
|
%
|
||||||||
Research and development expenses
|
5.0
|
4.9
|
2
|
%
|
||||||||
Acquisition related transaction and integration costs
|
2.6
|
0.4
|
*
|
|||||||||
Litigation costs
|
1.5
|
—
|
*
|
|||||||||
Income from operations
|
69.4
|
63.7
|
9
|
%
|
||||||||
Operating margin %
|
12.5
|
%
|
14.0
|
%
|
||||||||
Interest expense, net
|
(10.4
|
)
|
(9.1
|
)
|
14
|
%
|
||||||
Non-cash pension settlement charge
|
(1.5
|
)
|
(2.2
|
)
|
(32
|
)%
|
||||||
Other non-operating deductions, net
|
(1.2
|
)
|
(0.1
|
)
|
*
|
|||||||
Total non-operating deductions, net
|
(13.1
|
)
|
(11.4
|
)
|
15
|
%
|
||||||
Income before tax and equity in earnings
|
56.3
|
52.3
|
8
|
%
|
||||||||
Provision for taxes on income
|
11.4
|
9.8
|
16
|
%
|
||||||||
Effective tax rate
|
20.2
|
%
|
18.7
|
%
|
||||||||
Equity in earnings of affiliates, net of tax
|
0.6
|
0.5
|
20
|
%
|
||||||||
Consolidated net income
|
45.5
|
43.0
|
6
|
%
|
||||||||
Net income attributable to non-controlling interests
|
0.6
|
1.1
|
(45
|
)%
|
||||||||
Net income attributable to Minerals Technologies Inc.
|
$
|
44.9
|
$
|
41.9
|
7
|
%
|
Three Months Ended
Jul. 3, 2022
|
Three Months Ended
Jul. 4, 2021
|
|||||||||||||||||||
(millions of dollars)
|
Net Sales
|
% of Total Sales
|
% Change
|
Net Sales
|
% of Total Sales
|
|||||||||||||||
U.S.
|
$
|
303.1
|
54.4
|
%
|
26
|
%
|
$
|
239.9
|
52.7
|
%
|
||||||||||
International
|
253.9
|
45.6
|
%
|
18
|
%
|
215.7
|
47.3
|
%
|
||||||||||||
Total sales
|
$
|
557.0
|
100.0
|
%
|
22
|
%
|
$
|
455.6
|
100.0
|
%
|
||||||||||
Performance Materials Segment
|
$
|
299.6
|
53.8
|
%
|
26
|
%
|
$
|
238.4
|
52.3
|
%
|
||||||||||
Specialty Minerals Segment
|
164.3
|
29.5
|
%
|
15
|
%
|
142.7
|
31.3
|
%
|
||||||||||||
Refractories Segment
|
93.1
|
16.7
|
%
|
25
|
%
|
74.5
|
16.4
|
%
|
||||||||||||
Total sales
|
$
|
557.0
|
100.0
|
%
|
22
|
%
|
$
|
455.6
|
100.0
|
%
|
Three Months Ended
|
||||||||||||
Performance Materials Segment
|
Jul. 3,
2022
|
Jul. 4,
2021
|
%
Change
|
|||||||||
(millions of dollars)
|
||||||||||||
Net Sales
|
||||||||||||
Household, Personal Care & Specialty Products
|
$
|
140.1
|
$
|
102.6
|
37
|
%
|
||||||
Metalcasting
|
88.8
|
80.5
|
10
|
%
|
||||||||
Environmental Products
|
54.4
|
39.9
|
36
|
%
|
||||||||
Building Materials
|
16.3
|
15.4
|
6
|
%
|
||||||||
Total net sales
|
$
|
299.6
|
$
|
238.4
|
26
|
%
|
||||||
Income from operations
|
$
|
36.9
|
$
|
34.7
|
6
|
%
|
||||||
% of net sales
|
12.3
|
%
|
14.6
|
%
|
Three Months Ended
|
||||||||||||
Specialty Minerals Segment
|
Jul. 3,
2022
|
Jul. 4,
2021
|
%
Change
|
|||||||||
(millions of dollars)
|
||||||||||||
Net Sales
|
||||||||||||
Paper PCC
|
$
|
91.9
|
$
|
85.8
|
7
|
%
|
||||||
Specialty PCC
|
28.0
|
18.5
|
51
|
%
|
||||||||
PCC Products
|
$
|
119.9
|
$
|
104.3
|
15
|
%
|
||||||
Ground Calcium Carbonate
|
$
|
28.9
|
$
|
25.5
|
13
|
%
|
||||||
Talc
|
15.5
|
12.9
|
20
|
%
|
||||||||
Processed Minerals Products
|
$
|
44.4
|
$
|
38.4
|
16
|
%
|
||||||
Total net sales
|
$
|
164.3
|
$
|
142.7
|
15
|
%
|
||||||
Income from operations
|
$
|
20.2
|
$
|
20.0
|
1
|
%
|
||||||
% of net sales
|
12.3
|
%
|
14.0
|
%
|
Three Months Ended
|
||||||||||||
Refractories Segment
|
Jul. 3,
2022
|
Jul. 4,
2021
|
%
Change
|
|||||||||
(millions of dollars)
|
||||||||||||
Net Sales
|
||||||||||||
Refractory Products
|
$
|
70.2
|
$
|
58.0
|
21
|
%
|
||||||
Metallurgical Products
|
22.9
|
16.5
|
39
|
%
|
||||||||
Total net sales
|
$
|
93.1
|
$
|
74.5
|
25
|
%
|
||||||
Income from operations
|
$
|
16.2
|
$
|
11.7
|
38
|
%
|
||||||
% of net sales
|
17.4
|
%
|
15.7
|
%
|
Six Months Ended
|
||||||||||||
(millions of dollars)
|
Jul. 3,
2022
|
Jul. 4,
2021
|
%
Change
|
|||||||||
Net sales
|
$
|
1,076.1
|
$
|
908.2
|
18
|
%
|
||||||
Cost of sales
|
827.1
|
681.0
|
21
|
%
|
||||||||
Production margin
|
249.0
|
227.2
|
10
|
%
|
||||||||
Production margin %
|
23.1
|
%
|
25.0
|
%
|
||||||||
Marketing and administrative expenses
|
97.6
|
94.4
|
3
|
%
|
||||||||
Research and development expenses
|
10.1
|
9.9
|
2
|
%
|
||||||||
Acquisition related transaction and integration costs
|
4.2
|
0.4
|
*
|
|||||||||
Litigation costs
|
1.5
|
—
|
*
|
|||||||||
Income from operations
|
135.6
|
122.5
|
11
|
%
|
||||||||
Operating margin %
|
12.6
|
%
|
13.5
|
%
|
||||||||
Interest expense, net
|
(20.2
|
)
|
(19.0
|
)
|
6
|
%
|
||||||
Non-cash pension settlement charge
|
(1.5
|
)
|
(2.2
|
)
|
(32
|
)%
|
||||||
Other non-operating income (deductions), net
|
(1.6
|
)
|
0.4
|
*
|
||||||||
Total non-operating deductions, net
|
(23.3
|
)
|
(20.8
|
)
|
12
|
%
|
||||||
Income before tax and equity in earnings
|
112.3
|
101.7
|
10
|
%
|
||||||||
Provision for taxes on income
|
22.6
|
18.7
|
21
|
%
|
||||||||
Effective tax rate
|
20.1
|
%
|
18.4
|
%
|
||||||||
Equity in earnings of affiliates, net of tax
|
0.7
|
1.0
|
(30
|
)%
|
||||||||
Consolidated net income
|
90.4
|
84.0
|
8
|
%
|
||||||||
Net income attributable to non-controlling interests
|
1.4
|
2.2
|
(36
|
)%
|
||||||||
Net income attributable to Minerals Technologies Inc.
|
$
|
89.0
|
$
|
81.8
|
9
|
%
|
Six Months Ended
Jul. 3, 2022
|
Six Months Ended
Jul. 4, 2021
|
|||||||||||||||||||
(millions of dollars)
|
Net Sales
|
% of Total Sales
|
% Growth
|
Net Sales
|
% of Total Sales
|
|||||||||||||||
U.S.
|
$
|
572.8
|
53.2
|
%
|
23
|
%
|
$
|
467.4
|
51.5
|
%
|
||||||||||
International
|
503.3
|
46.8
|
%
|
14
|
%
|
440.8
|
48.5
|
%
|
||||||||||||
Total sales
|
$
|
1,076.1
|
100.0
|
%
|
18
|
%
|
$
|
908.2
|
100.0
|
%
|
||||||||||
Performance Materials Segment
|
$
|
571.7
|
53.1
|
%
|
22
|
%
|
$
|
469.3
|
51.7
|
%
|
||||||||||
Specialty Minerals Segment
|
327.4
|
30.4
|
%
|
13
|
%
|
290.5
|
32.0
|
%
|
||||||||||||
Refractories Segment
|
177.0
|
16.5
|
%
|
19
|
%
|
148.4
|
16.3
|
%
|
||||||||||||
Total sales
|
$
|
1,076.1
|
100.0
|
%
|
18
|
%
|
$
|
908.2
|
100.0
|
%
|
Six Months Ended
|
||||||||||||
Performance Materials Segment
|
Jul. 3,
2022
|
Jul. 4,
2021
|
%
Change
|
|||||||||
(millions of dollars)
|
||||||||||||
Net Sales
|
||||||||||||
Household, Personal Care & Specialty Products
|
$
|
282.6
|
$
|
212.0
|
33
|
%
|
||||||
Metalcasting
|
169.0
|
162.2
|
4
|
%
|
||||||||
Environmental Products
|
90.3
|
65.9
|
37
|
%
|
||||||||
Building Materials
|
29.8
|
29.2
|
2
|
%
|
||||||||
Total net sales
|
$
|
571.7
|
$
|
469.3
|
22
|
%
|
||||||
Income from operations
|
$
|
70.6
|
$
|
64.5
|
9
|
%
|
||||||
% of net sales
|
12.3
|
%
|
13.7
|
%
|
Six Months Ended
|
||||||||||||
Specialty Minerals Segment
|
Jul. 3,
2022
|
Jul. 4,
2021
|
%
Change
|
|||||||||
(millions of dollars)
|
||||||||||||
Net Sales
|
||||||||||||
Paper PCC
|
$
|
188.7
|
$
|
175.4
|
8
|
%
|
||||||
Specialty PCC
|
52.2
|
38.9
|
34
|
%
|
||||||||
PCC Products
|
$
|
240.9
|
$
|
214.3
|
12
|
%
|
||||||
Ground Calcium Carbonate
|
$
|
55.4
|
$
|
49.5
|
12
|
%
|
||||||
Talc
|
31.1
|
26.7
|
16
|
%
|
||||||||
Processed Minerals Products
|
$
|
86.5
|
$
|
76.2
|
14
|
%
|
||||||
Total net sales
|
$
|
327.4
|
$
|
290.5
|
13
|
%
|
||||||
Income from operations
|
$
|
38.6
|
$
|
41.1
|
(6
|
)%
|
||||||
% of net sales
|
11.8
|
%
|
14.1
|
%
|
Six Months Ended
|
||||||||||||
Refractories Segment
|
Jul. 3,
2022
|
Jul. 4,
2021
|
%
Change
|
|||||||||
(millions of dollars)
|
||||||||||||
Net Sales
|
||||||||||||
Refractory Products
|
$
|
135.0
|
$
|
116.8
|
16
|
%
|
||||||
Metallurgical Products
|
42.0
|
31.6
|
33
|
%
|
||||||||
Total net sales
|
$
|
177.0
|
$
|
148.4
|
19
|
%
|
||||||
Income from operations
|
$
|
32.7
|
$
|
23.7
|
38
|
%
|
||||||
% of net sales
|
18.5
|
%
|
16.0
|
%
|
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
|
||||||||||||
April 4 - May 1
|
120,050
|
$
|
63.14
|
525,455
|
$
|
38,923,572
|
||||||||||
May 2 - May 29
|
122,492
|
$
|
65.03
|
647,947
|
$
|
30,958,392
|
||||||||||
May 30 - July 3
|
134,650
|
$
|
62.85
|
782,597
|
$
|
22,495,138
|
||||||||||
Total
|
377,192
|
$
|
63.65
|
Exhibit No.
|
Exhibit Title
|
|
Amendment to Minerals Technologies Inc. Savings and Investment Plan, dated May 25, 2022
|
||
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 (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL
document).
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase
|
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contain in Exhibit 101).
|
Minerals Technologies Inc.
|
||
By:
|
/s/ Matthew E. Garth
|
|
Matthew E. Garth
|
||
Senior Vice President, Finance and Treasury,
|
||
Chief Financial Officer
|
||
July 29, 2022
|