Slide 1: Fourth Quarter 2023 Earnings Conference Call
Fourth Quarter 2023 Earnings Conference Call February 2, 2024
Slide 2: Forward Looking Statements and Non-GAAP Measures
Forward Looking Statements and Non-GAAP Measures This presentation may contain "forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations and forecasts of future events such as new products, revenue
Slide 3: Douglas T. Dietrich, Chairman & Chief Executive Officer
Douglas T. Dietrich Chairman & Chief Executive Officer
Slide 4: Fourth Quarter 2023 Highlights
Fourth Quarter 2023 Highlights Sales Record fourth quarter sales $525M Consumer & Specialties sales +3% YoY Engineered Solutions sales +4% YoY +3% Operating Operating margin of 13.2% Income $69M Record fourth quarter earnings per share +57% Quarterly cash from operations $95M EPS $1.28 Increased
Slide 5: 2023 Year-in-Review: Executing on Our Priorities
2023 Year-in-Review: Executing on Our Priorities Sales Record sales with growth in both segments $2.17B Solid growth across all strategic priorities Supported by strong Benefited from the balanced portfolio culture of Operational +2% Excellence Strong operating margin expansion Operating Income
Slide 6: Growth Driver Spotlight: Innovation Aligned With Key Macro Trends
Growth Driver Spotlight: Innovation Aligned With Key Macro Trends Long-term growth drivers Revenue as % of Sales from New A Well-Balanced New Product Products Portfolio Expansion in higher Environmental & Infrastructure Household & growth consumer- 20% 18% 13% Personal Care 34% 15% oriented markets
Slide 7: Erik Aldag, Chief Financial Officer
Erik Aldag Senior Vice President, Finance and Treasury, & Chief Financial Officer
Slide 8: Fourth Quarter Financial Review
Fourth Quarter Financial Review Q4’23 YoY Fourth Quarter 2023 Versus Prior Year Sales ($M) 525 +3% Sales ($M) +6% Operating Income ($M) 69 +57% 16 4 13 525 508 496 Operating Margin (%) 13.2 +450bps (4) (12) EBITDA ($M) 90 +38% Q4’22 BMI Q4’22 Adj Household Specialty High- Environmental Q4’23 EBITDA
Slide 9: Full Year Financial Review
Full Year Financial Review FY’23 YoY Full Year 2023 Versus Prior Year Sales ($M) 2,170 +2% Sales ($M) Operating Income ($M) 280 +11% +3% 41 6 18 2,170 Operating Margin (%) 12.9 +100bps 2,126 2,114 (10) (12) EBITDA ($M) 370 +8% EBITDA Margin (%) 17.1 +100bps 2022 BMI Adj 2022 Household & Personal Spe
Slide 10: Consumer & Specialties Segment
Consumer & Specialties Segment Fourth Quarter Full Year Sales, $M Sales +8%, Excluding BMI Sales, $M +3% +3% Household & Personal Care Household & Personal Care 1,125 1,160 273 281 • Sales +13% YoY • Sales +9% YoY • Strong cat litter demand • Strong cat litter demand • Double-digit growth in animal
Slide 11: Engineered Solutions Segment
Engineered Solutions Segment Fourth Quarter Full Year Sales, $M High-Temperature Technologies Sales, $M High-Temperature Technologies • Sales +7% YoY +1% • Sales +3% YoY +4% • Steady demand in North America 1,001 1,010 • Stable demand for steel & foundry 234 243 steel & foundry in North America • Gr
Slide 12: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Cash Flow and Capital Deployment Liquidity Cash Flow Q4’23 Q4’23 FY’23 Cash, Cash Equivalents, $322M and Short-Term Investments Cash From Operations $95M $234M Available Revolver $206M Capital Expenditures $22M $94M Total Liquidity $528M Free Cash Flow $73M $140M Debt & Lev
Slide 13: First Quarter Outlook Summary
First Quarter Outlook Summary Key drivers Similar market conditions in both segments sequentially Consumer & Specialties: Strength in Household & Personal Care Seasonally slow period in Specialty Additives, gradual improvement in NA paper Engineered Solutions: Stable demand in High-Tempe
Slide 14: Douglas T. Dietrich, Chairman & Chief Executive Officer
Douglas T. Dietrich Chairman & Chief Executive Officer
Slide 15: 2024 Priorities and Outlook
2024 Priorities and Outlook Balanced Stable market trends across majority of markets and stable Continued strong growth in Household & Personal Care growth Further expansion in Asia in Specialty Additives and High-Temperature Technologies portfolio Expect improved demand conditions in North
Slide 16: A powerful combination to drive shareholder value
MTI values and culture A powerful Differentiated technologies combination MTI to drive Financial strength Business shareholder Application System value expertise Global mineral reserves
Slide 17: Innovative technologies. Essential solutions.
Innovative technologies. Essential solutions.”
Slide 18: Appendix
Appendix 18
Slide 19: Net Income and Diluted EPS Excluding Special Items
Reconciliation Net Income and Diluted EPS Excluding Special Items The information set forth in the Analyst Presentation presents financial measures of the Company that exclude certain special items, and are therefore not in accordance with GAAP. The following is a presentation of the Company’s non-G
Slide 20: Segment Operating Income Excluding Special Items
Reconciliation Segment Operating Income Excluding Special Items millions of dollars Quarter Ended Twelve Months Ended Dec. 31, Oct. 1, Dec. 31, Dec. 31, Dec. 31, 2023 2023 2022 2023 2022 SEGMENT OPERATING INCOME(LOSS) DATA Consumer & Specialties Segment $ 36.6 $ (46.6) $ 16.4 $ 41.6 $ 79.0 Engineere
Slide 21: EBITDA Excluding Special Items
Reconciliation EBITDA Excluding Special Items Quarter Ended Twelve Months Ended millions of dollars Dec. 31, Oct. 1, Dec. 31, Dec. 31, Dec. 31, 2023 2023 2022 2023 2022 Net income (loss) $ 39.8 $ (19.2) $ 20.0 $ 84.1 $ 122.2 Add back: Depreciation, depletion and amortization 23.5 24.3 23.0 95.0 94.2
Slide 22: The Company Sales Growth Excluding BMI
Reconciliation The Company Sales Growth Excluding BMI To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of the Company's year over year sales growth, excluding the sales of Barretts Minerals Inc. for the three months ende
Slide 23: Free Cash Flow
Reconciliation Free Cash Flow Quarter Ended Twelve Months Ended millions of dollars Dec. 31, Oct. 1, Dec. 31, Dec. 31, Dec. 31, 2023 2023 2022 2023 2022 Cash flow from operations $ 95.3 $ 59.1 $ 42.3 $ 233.6 $ 105.9 Capital expenditures 22.5 25.1 22.9 93.5 82.3 Free cash flow $ 72.8 $ 34.0 $ 19.4 $