Slide 1: Third Quarter 2023 Earnings Conference Call
Third Quarter 2023 Earnings Conference Call October 27, 2023
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: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights Net Sales Record third quarter sales $548M Record quarterly operating income +1% - Operating margin 14.1%, 170 bps improvement YoY Operating Income Cash flow generation continues to accelerate $77M - Q3 cash from operations increased 30% sequentially +15% - YTD cash fro
Slide 5: Strong Business Model Driving Performance
Strong Business Model Driving Performance Balanced • Expanding in higher growth consumer-oriented markets and geographies and stable growth • Differentiated positions in key industrial markets portfolio • Applying core technologies for continuous innovation • Price/cost benefits Broad-based margin •
Slide 6: Market Outlook
Market Outlook CONSUMER & SPECIALTIES ENGINEERED SOLUTIONS Household & Personal Care High-Temperature Technologies Strong market outlook Strong market outlook • Seasonally high period for cat litter and • Stable steel and foundry demand in North America continued growth in private label • Steady imp
Slide 7: Erik Aldag, SVP Finance and Treasury & CFO
Erik Aldag Senior Vice President, Finance and Treasury, & Chief Financial Officer
Slide 8: Third Quarter Financial Review
Third Quarter Financial Review Q3’23 YoY Seq Versus Prior Year Sales ($M) 548 +1% (1%) Sales ($M) Operating Income ($M) 77 +15% +9% +1% 10.2 1.3 547.8 541.9 Operating Margin (%) 14.1 +170bps +130bps (3.7) (1.9) EBITDA ($M) 102 +13% +10% Q3’22 Household Specialty High- Environmental Q3’23 EBITDA Marg
Slide 9: Consumer & Specialties Segment
Consumer & Specialties Segment Financial Results Third Quarter Highlights Fourth Quarter Outlook Sales, $M Household & Personal Care Household & Personal Care +2% • Strong growth in pet care, +15% YoY • Continued strength in global pet litter 284.7 290.3 291.2 demand 0% • Growth sequentially in pers
Slide 10: Engineered Solutions Segment
Engineered Solutions Segment Financial Results Third Quarter Highlights Fourth Quarter Outlook Sales, $M High-Temperature Technologies High-Temperature Technologies 0% • Continued strong pull in North America • Stable demand conditions in North foundry & steel America foundry & steel 257.2 261.2 256
Slide 11: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Cash Flow and Capital Deployment Liquidity Q3’23 Cash, Cash Equivalents, Q3’23 YTD’23 $278M and Short-Term Investments Cash From Operations $59M $138M Available Revolver $180M Total Liquidity $458M Capital Expenditures $25M $71M Free Cash Flow $34M $67M Debt & Leverage Net
Slide 12: Fourth Quarter Outlook Summary
Fourth Quarter Outlook Summary Key drivers Consumer & Specialties: Continued strength in Household & Personal Care Improving paper volumes offset other seasonal impacts in Specialty Additives Engineered Solutions: Continued strength in High-Temperature Technologies Seasonally slower peri
Slide 13: Innovative technologies. Essential solutions.
Innovative technologies. Essential solutions.”
Slide 14: Appendix
Appendix MINERALS TECHNOLOGIES
Slide 15: 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 16: Segment Operating Income Excluding Special Items and Free Cash Flow
Reconciliation Segment Operating Income Excluding Special Items and Free Cash Flow millions of dollars, except per share data Quarter Ended Nine Months Ended Oct. 1, Oct. 2, Oct. 1, Oct. 2, 2023 2022 2023 2022 Segment Operating Income (Loss) Data Consumer & Specialties Segment $ (46.6) $ (0.3) $ 5.0
Slide 17: EBITDA Excluding Special Items
Reconciliation EBITDA Excluding Special Items millions of dollars, except per share data Quarter Ended Nine Months Ended Oct. 1, Oct. 2, Oct. 1, Oct. 2, 2023 2022 2023 2022 Net income (loss) attributable to MTI $ (19.2) $ 13.4 $ 44.4 $ 102.4 Add back: Depreciation, depletion and amortization 24.3 23