EX-99.1 2 pressrelease.htm FOURTH QUARTER EARNINGS RELEASE

              

EXHIBIT 99.1
 
News

For Immediate Release
Contact:
January 31, 2013
Rick B. Honey
 
(212) 878-1831



MINERALS TECHNOLOGIES ACHIEVES RECORD ANNUAL EARNINGS
 OF $2.09 PER SHARE, AN 11-PERCENT INCREASE
----------
Company Reported Earnings per Share of $0.50 for the Fourth Quarter
----------
Operating Income Grew 9 Percent for 2012
----------
2012 Highlights:

·
Third consecutive year of record earnings
·
Signed two new satellite PCC contracts for China
·
Six commercial agreements for FulFillTM
·
Two-for-one stock split; quarterly dividend doubled
·
Repurchased $28 million in shares for 2012; $19 million in fourth quarter

NEW YORK, January 31—Minerals Technologies Inc. (NYSE: MTX) today reported record earnings per share of $2.09 for the full year of 2012 compared with earnings of $1.89 in the prior year, excluding special items, an increase of 11 percent. Reported net income for the full year was $74.1 million, a 10-percent increase over the $67.5 million recorded in 2011. Reported earnings in 2011 were $1.86 per share.
Operating income for the full year 2012 grew 9 percent to a record $110.0 million compared to $100.8 million in the prior year, excluding special items. Operating income, as reported in 2011, was $100.3 million. This increase was due to a strong operating performance highlighted by a 6-percent company-wide productivity improvement and 3-percent lower expenses. Operating income improved despite a 4-percent decrease in worldwide sales due to unfavorable foreign exchange and weakening market conditions in Europe.
Worldwide sales were $1.01 billion compared with $1.04 billion recorded in 2011. The impact of foreign exchange on sales was $26.5 million, or 3 percentage points.  In addition to the impact of foreign exchange, several paper and steel mill closures in Europe and North America contributed to the sales decrease, which was offset by increased sales in the Paper PCC product line. Excluding the effect of foreign currency and the paper and steel mill closures, sales grew 1 percent.
"This marks the third consecutive year that Minerals Technologies has recorded the highest annual earnings in its 20-year history," said Joseph C. Muscari, chairman and chief executive officer. "Our growth strategies of geographic expansion and new product innovation continued to gain momentum during 2012. We signed two contracts for new satellite PCC plants in China, began operations of new satellites in India and Thailand and, in 2013, we will expand four satellite plants in the United States. We also succeeded in gaining further adoption of our FulFill™ portfolio of products on a worldwide basis, signing six more to commercial agreements during 2012, which brings the total to 10. In 2013, we will continue to advance these strategies to achieve the company's long-term growth objectives."
Income from operations for the Specialty Minerals segment, which includes the PCC and Processed Minerals product lines, increased 14 percent to $84.1 million from $73.8 million, excluding special items, in 2011. This increase was attributable to a strong performance in the Processed Minerals product line that was a result of productivity improvements, price increases and lower energy costs. In addition, operating income improved in the Paper PCC product line due to contributions from the FulFill™ technology, new satellite PCC plants becoming operational, productivity improvements and expense savings. Full-year worldwide sales for the Specialty Minerals segment decreased 2 percent to $662.2 million from $676.1 million in 2011.  Foreign exchange had an unfavorable impact on sales of $17.3 million, or 3 percentage points.
            Worldwide sales of PCC, which is used primarily in the manufacturing processes of the paper industry, decreased 3 percent to $546.2 million from $560.6 million recorded in the prior year. Processed Minerals products sales increased slightly to $116.0 million from $115.5 million in 2011.
"In addition to the adoption of the FulFill™ E-325 technology by 10 paper mills around the world, the company's Performance Minerals business, which is comprised of Processed Minerals and the Specialty PCC product lines, launched a number of new products in 2012," said Mr. Muscari. "These include two Optibloc® talc blends, which are new antiblocking products for high-clarity film and bag applications, and Titanium Dioxide (TiO2) extenders."
The Refractories segment, which primarily serves the steel industry, recorded operating income of $32.6 million, which was flat with the previous year. Sales in the Refractories segment decreased 7 percent to $343.4 million from $368.8 million recorded in 2011. Foreign exchange had an unfavorable impact on sales of $9.3 million, or 3 percentage points. Refractory products sales decreased 8 percent to $264.1 million from $287.4 million in the prior year due primarily to continued weakness in the global steel industry resulting in the closure of four steel mills worldwide. Metallurgical products sales decreased 3 percent to $79.3 million from $81.4 million in the prior year due primarily to weakness in the European steel market.
In 2012, Minteq International, the operating division of Refractories, also signed an agreement with United Steel Company B.S.C. (SULB) to perform all refractory maintenance at a greenfield steel mill in Bahrain that started up in the third quarter of 2012.  Minteq, working with other refractory companies, will be responsible for coordinating refractory maintenance of the steel furnaces and the other steel production vessels. This agreement is expected to generate between $25 million and $30 million in revenues over a three-year period. The Refractory segment also introduced a new, fourth generation Lacam® laser measurement system for use in the worldwide steel industry that is 17 times faster than the previous version. This new technology provides the fastest and most accurate laser scanning for hot surfaces available today. Also, during the year, the business engineered and installed its first Scantrol® laser refractory measuring system for basic oxygen steel-making furnaces at the Nizhny Tagil Metallurgical Plant (NTMK) in the Sverdlovsk region of Russia. NTMK is one of the largest fully integrated steel production facilities in Russia.

Fourth Quarter
Minerals Technologies' income from operations for the quarter was $25.7 million, a 2-percent increase over the $25.1 million recorded in the fourth quarter of 2011. The company's fourth quarter earnings were $0.50 per share, compared with $0.52 per share, excluding special items, in the fourth quarter of 2011. Reported earnings in the fourth quarter of 2011 were $0.55 per share.
Cash flow from operations for the quarter was $35 million and the company repurchased $19 million in shares.
Fourth quarter worldwide sales declined 3 percent to $244.2 million from $251.7 million in the same period in 2011. Foreign exchange had an unfavorable impact on sales of $3.1 million, or 1 percentage point.
In the fourth quarter, income from operations for the Specialty Minerals segment increased 21 percent to $19.6 million from $16.2 million in the same period in 2011. This increase was attributable to price increases, improved productivity, lower energy costs, the impact of new satellite plants coming on line and the contribution from adoption of the FulFill™ technology.  Fourth quarter worldwide sales for the Specialty Minerals segment increased 1 percent to $160.8 million from $159.9 million in the same quarter of 2011.
            Worldwide sales of PCC increased 1 percent to $134.9 million from the $133.1 million recorded in the fourth quarter of 2011.  Processed Minerals products fourth quarter sales decreased 3 percent to $25.9 million from $26.8 million in the same period of 2011.
The Refractory segment recorded operating income of $7.5 million in the fourth quarter of 2012 compared with $10.4 million in the prior year, a 28-percent decrease. This decrease was primarily attributable to the closure of four steel mills, global weakness in the worldwide steel industry and lower equipment sales. Fourth quarter sales in the Refractories segment decreased 9 percent to $83.4 million from $91.8 million recorded in the same period in 2011. Refractory products sales declined 11 percent to $63.5 million from $71.3 million in the prior year. Metallurgical products sales decreased 3 percent to $19.9 million from $20.5 million in the same period in 2011.
 "In 2012, we saw our strategies of geographic expansion and new product development gain momentum. Today, Minerals Technologies is a strong operating company driven by our focus on productivity and cost reduction through our Operational Excellence/Lean initiative and employee engagement," said Mr. Muscari. "Our Refractories and Performance Minerals product lines have shown significant improvement, and our Paper PCC business continues on a strong growth track. Looking ahead, we expect to continue to improve our financial performance through the execution of our key strategic initiatives of new product development, geographic expansion and Operational Excellence."
----------
On December 11, 2012, the company effected a two-for-one stock split in the form of a stock dividend. Accordingly, all share and per share data presented in this press release reflect the effect of the stock split.
----------
Minerals Technologies has scheduled an analyst conference call for Friday, February 1, 2013 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 2011 Annual Report on Form 10-K and in our other reports filed with the Securities and Exchange Commission.
####


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF OPERATIONS
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
(in thousands, except per share data)
 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
% Growth
 
Year Ended
 
% Growth
 
 
 
 
Dec. 31,
Sept. 30,
Dec. 31,
 
 
 
 
 
Dec. 31,
Dec. 31,
 
 
 
 
 
 
2012
 
2012
 
2011
 
Prior Qtr.
Prior Year
 
2012
 
2011
 
Prior Year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
244,165
$
250,346
$
251,742
 
(2)%
 
(3)%
 
$
1,005,619
$
1,044,853
 
(4)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
 
191,069
 
195,347
 
199,072
 
(2)%
 
(4)%
 
 
786,245
 
832,657
 
(6)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Production margin
 
53,096
 
54,999
 
52,670
 
(3)%
 
1%
 
 
219,374
 
212,196
 
3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing  and administrative expenses
 
22,377
 
22,046
 
22,666
 
2%
 
(1)%
 
 
89,161
 
92,058
 
(3)%
 
Research and development expenses
 
4,995
 
5,105
 
4,841
 
(2)%
 
3%
 
 
20,172
 
19,330
 
4%
 
Restructuring and other charges
 
0
 
0
 
0
 
*
 
*
 
 
0
 
470
 
(100)%
 
 
Income from operations
 
25,724
 
27,848
 
25,163
 
(8)%
 
2%
 
 
110,041
 
100,338
 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-operating income (deductions) - net
 
(979)
 
(650)
 
701
 
51%
 
(240)%
 
 
(2,995)
 
(2,598)
 
15%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, before tax
24,745
 
27,198
 
25,864
 
(9)%
 
(4)%
 
 
107,046
 
97,740
 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for taxes on income
 
6,506
 
8,015
 
5,800
 
(19)%
 
12%
 
 
30,777
 
27,486
 
12%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated net income
 
18,239
 
19,183
 
20,064
 
(5)%
 
(9)%
 
 
76,269
 
70,254
 
9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: Net income attributable to non-controlling interests
469
 
553
 
425
 
(15)%
 
10%
 
 
2,122
 
2,733
 
(22)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income attributable to  Minerals Technologies Inc. (MTI)
$
17,770
$
18,630
$
19,639
 
(5)%
 
(10)%
 
$
74,147
$
67,521
 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
35,196
 
35,280
 
35,288
 
 
 
 
 
 
35,340
 
36,018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
35,467
 
35,466
 
35,474
 
 
 
 
 
 
35,529
 
36,236
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share attributable to MTI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic:
$
0.50
$
0.53
$
0.56
 
(6)%
 
(11)%
 
$
2.10
$
1.87
 
12%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted:
$
0.50
$
0.53
$
0.55
 
(6)%
 
(9)%
 
$
2.09
$
1.86
 
12%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends declared per common share
$
0.05
$
0.025
$
0.025
 
 
 
 
 
$
0.125
$
0.10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Percentage not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
 
NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1)
For comparative purposes, the quarterly periods ended December 31, 2012, September 30, 2012 and December 31, 2011 consisted of 92 days, 91 days, and 90 days, respectively.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2)
On December 11, 2012, the Company effected a 2-for-1 stock split in the form of a stock dividend.  Accordingly, all share and per share data presented herein reflects the effect of the stock split.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 income (loss), excluding special items, for the three month periods ended December 31, 2012, September 30, 2012 and December 31, 2011 and the twelve month periods ended December 31, 2012 and December 31, 2011, and a reconciliation to net income 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. 30,
Dec. 31,
 
Dec. 31,
Dec. 31,
 
 
 
2012
 
2012
 
2011
 
 
 
2012
 
2011
 
 
 
Net Income attributable to MTI, as reported
$
17.8
$
18.6
$
19.6
 
 
$
74.1
$
67.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special items:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other costs
 
0.0
 
0.0
 
0.0
 
 
 
0.0
 
0.5
 
 
 
Currency translation loss upon deconsolidation of foreign entity
0.0
 
0.0
 
0.0
 
 
 
0.0
 
1.4
 
 
 
Income tax settlement
 
0.0
 
0.0
 
(1.0)
 
 
 
0.0
 
(1.0)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Related tax effects on special items
 
0.0
 
0.0
 
0.0
 
 
 
0.0
 
(0.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to MTI, excluding special items
$
17.8
$
18.6
$
18.6
 
 
$
74.1
$
68.3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share, excluding special items
$
0.50
$
0.53
$
0.53
 
 
$
2.10
$
1.90
 
 
 
Diluted earnings per share, excluding special items
$
0.50
$
0.53
$
0.52
 
 
$
2.09
$
1.89
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4)
Free cash flow is defined as cash flow from operations less capital expenditures. The following is a presentation of the Company's non-GAAP free cash flow for the three month periods ended December 31, 2012, September 30, 2012  and December 31, 2011 and the twelve month periods ended December 31, 2012 and December 31, 2011 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. 30,
Dec. 31,
 
 
Dec. 31,
Dec. 31,
 
 
 
 
2012
 
2012
 
2011
 
 
 
2012
 
2011
 
 
 
Cash flow from operations
$
35.1
$
40.0
$
40.8
 
 
$
139.9
$
133.7
 
 
 
Capital expenditures
 
14.3
 
14.0
 
15.1
 
 
 
52.1
 
52.0
 
 
 
Free cash flow
$
20.8
$
26.0
$
25.7
 
 
$
87.8
$
81.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5)
The following table reflects the components of non-operating income and deductions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(millions of dollars)
 
Quarter Ended
 
 
 
Year Ended
 
 
 
 
 
Dec. 31,
Sept. 30,
Dec. 31,
 
Dec. 31,
Dec. 31,
 
 
 
2012
 
2012
 
2011
 
 
 
2012
 
2011
 
 
 
Interest income
$
0.7
$
0.7
$
1.0
 
 
$
3.2
$
3.9
 
 
 
Interest expense
 
(0.8)
 
(0.8)
 
(0.9)
 
 
 
(3.2)
 
(3.3)
 
 
 
Foreign exchange gains  (losses)
 
(0.6)
 
(0.1)
 
0.3
 
 
 
(1.3)
 
(1.2)
 
 
 
Currency translation loss upon
 
 
 
 
 
 
 
 
 
 
 
    deconsolidation of foreign entity
 
0.0
 
0.0
 
0.0
 
 
 
0.0
 
(1.4)
 
 
 
          Other income (deductions)
 
(0.3)
 
(0.4)
 
0.3
 
 
 
(1.7)
 
(0.6)
 
 
 
Non-operating income (deductions), net
$
(1.0)
$
(0.6)
$
0.7
 
 
$
(3.0)
$
(2.6)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6)
The analyst conference call to discuss operating results for the fourth quarter is scheduled for Friday, February 1, 2013 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. 30,
Dec. 31,
 
 
 
 
 
 
Dec. 31,
 
Dec. 31,
 
 
 
 
2012
 
2012
 
2011
 
Prior Qtr
Prior Year
 
2012
 
2011
 
Prior Year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
135.0
$
138.3
$
136.7
 
(2)%
 
(1)%
 
$
562.5
$
557.5
 
1%
International
 
109.2
 
112.0
 
115.0
 
(3)%
 
(5)%
 
 
443.1
 
487.4
 
(9)%
      Net Sales
$
244.2
$
250.3
$
251.7
 
(2)%
 
(3)%
 
$
1,005.6
$
1,044.9
 
(4)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Paper PCC
$
118.8
$
120.6
$
117.7
 
(1)%
 
1%
 
$
480.3
$
497.0
 
(3)%
Specialty PCC
 
16.1
 
16.4
 
15.4
 
(2)%
 
5%
 
 
65.9
 
63.6
 
4%
PCC Products
$
134.9
$
137.0
$
133.1
 
(2)%
 
1%
 
$
546.2
$
560.6
 
(3)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Talc
$
11.0
$
11.9
$
11.5
 
(8)%
 
(4)%
 
$
48.1
$
46.9
 
3%
Ground Calcium Carbonate
14.9
 
16.7
 
15.3
 
(11)%
 
(3)%
 
 
67.9
 
68.6
 
(1)%
Processed Minerals Products
$
25.9
$
28.6
$
26.8
 
(9)%
 
(3)%
 
$
116.0
$
115.5
 
0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Minerals Segment
$
160.8
$
165.6
$
159.9
 
(3)%
 
1%
 
$
662.2
$
676.1
 
(2)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refractory products
$
63.5
$
66.0
$
71.3
 
(4)%
 
(11)%
 
$
264.1
$
287.4
 
(8)%
Metallurgical Products
 
19.9
 
18.7
 
20.5
 
6%
 
(3)%
 
 
79.3
 
81.4
 
(3)%
Refractories Segment
$
83.4
$
84.7
$
91.8
 
(2)%
 
(9)%
 
$
343.4
$
368.8
 
(7)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Net Sales
$
244.2
$
250.3
$
251.7
 
(2)%
 
(3)%
 
$
1,005.6
$
1,044.9
 
(4)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SEGMENT OPERATING INCOME (LOSS) DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Minerals Segment
$
19.6
$
22.6
$
15.6
 
(13)%
 
26%
 
$
84.1
$
72.8
 
16%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refractories Segment
$
7.5
$
7.2
$
11.0
 
4%
 
(32)%
 
$
32.6
$
33.2
 
(2)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unallocated Corporate Expenses
$
(1.4)
$
(2.0)
$
(1.5)
 
(30)%
 
(7)%
 
$
(6.7)
$
(5.7)
 
18%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
25.7
$
27.8
$
25.1
 
(8)%
 
2%
 
$
110.0
$
100.3
 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SEGMENT RESTRUCTURING and IMPAIRMENT COSTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Minerals Segment
$
0.0
$
0.0
$
0.6
 
*
 
*
 
$
0.0
$
1.0
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refractories Segment
$
0.0
$
0.0
$
(0.6)
 
*
 
*
 
$
0.0
$
(0.6)
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
0.0
$
0.0
$
0.0
 
*
 
*
 
$
0.0
$
0.5
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 (the restructuring and impairment costs set forth in the above table), for the three month periods ended December 31, 2012, September 30, 2012 and December 31, 2011 and the twelve month periods ended December 31, 2012 and December 31, 2011, 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. 30,
Dec. 31,
 
 
 
 
 
 
Dec. 31,
 
Dec. 31,
 
 
     EXCLUDING SPECIAL ITEMS
2012
 
2012
 
2011
 
Prior Qtr.
Prior Year
 
2012
 
2011
 
Prior Year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Minerals Segment
$
19.6
$
22.6
$
16.2
 
(13)%
 
21%
 
$
84.1
$
73.8
 
14%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refractories Segment
$
7.5
$
7.2
$
10.4
 
4%
 
(28)%
 
$
32.6
$
32.6
 
0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unallocated Corporate Expenses
$
(1.4)
$
(2.0)
$
(1.5)
 
(30)%
 
(7)%
 
$
(6.7)
$
(5.7)
 
18%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
25.7
$
27.8
$
25.1
 
(8)%
 
2%
 
$
110.0
$
100.8
 
9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Percentage not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands of Dollars)
 
 
 
 
 
 
 
 
December 31,
December 31,
 
 
 
 
2012*
 
2011**
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash & cash equivalents
$
454,092
$
395,152
 
Short-term investments
 
14,178
 
18,494
 
Accounts receivable, net
 
193,328
 
194,317
 
Inventories
 
84,569
 
90,760
 
Prepaid expenses and other current assets
18,318
 
21,566
 
 
Total current assets
 
764,485
 
720,289
 
 
 
 
 
 
 
 
Property, plant and equipment
 
1,261,952
 
1,248,649
 
Less accumulated depreciation
 
944,283
 
930,515
 
 
Net property, plant & equipment
317,669
 
318,134
 
 
 
 
 
 
 
 
Goodwill
 
65,829
 
64,671
 
Other assets and deferred charges
 
63,206
 
61,861
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
1,211,189
$
1,164,955
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Short-term debt
$
7,111
$
5,846
 
Current maturities of long-term debt
 
76,977
 
8,552
 
Accounts payable
 
98,371
 
103,354
 
Restructuring liabilities
 
318
 
1,411
 
Other current liabilities
 
67,321
 
61,739
 
 
Total current liabilities
 
250,098
 
180,902
 
 
 
 
 
 
 
 
Long-term debt
 
8,478
 
85,449
 
Other non-current liabilities
 
138,894
 
130,584
 
 
Total liabilities
 
397,470
 
396,935
 
 
 
 
 
 
 
 
Total MTI shareholders' equity
 
790,411
 
741,612
 
Non-controlling Interest
 
23,308
 
26,408
 
 
Total shareholders' equity
 
813,719
 
768,020
 
 
 
 
 
 
 
 
 
Total liabilities and shareholders' equity
$
1,211,189
$
1,164,955
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Unaudited
 
 
 
 
**
Condensed from audited financial statements.