Minerals Technologies Inc. · NYSE:MTX
Minerals Technologies — Q2 2020 Earnings Presentation
16 slides from Minerals Technologies's earnings presentation, Jul 30, 2020
Slide 1: Second Quarter 2020 Conference Call
I N N O VAT I O N • L E A D E R S H I P • E X C E L L E N C E SECOND QUARTER 2020 CONFERENCE CALL July 31, 2020
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 Dietrich, Chief Executive Officer
I N N O VAT I O N • L E A D E R S H I P • E X C E L L E N C E DOUGLAS DIETRICH CHIEF EXECUTIVE OFFICER
Slide 4: Second Quarter 2020 Highlights
Second Quarter 2020 Highlights • #1 Priority: Safety of Our Employees, Customers, and Suppliers $357M • Significant End Market Changes, Including COVID-19 Related REVENUE Customer Shutdowns • Solid Operating Performance in a Challenging Environment • Operating Margin* of 11.8% • Strong Cash From Ope
Slide 5: Corporate Responsibility and Sustainability
Corporate Responsibility and Sustainability 12th Annual Corporate Responsibility & Sustainability Report Solid Progress Against 2025 Targets 5
Slide 6: Matthew Garth, Chief Financial Officer
I N N O VAT I O N • L E A D E R S H I P • E X C E L L E N C E MATTHEW GARTH CHIEF FINANCIAL OFFICER
Slide 7: Second Quarter Financial Highlights
Second Quarter Financial Highlights Year-over-Year Comparison Sequential Comparison Sales, $M Sales, $M -21% -13% 463.8 453.9 417.5 411.5 (9.9) 4.7 357.2 (6.0) 2.1 357.2 (101.4) (56.4) Q2’19 FX Adjusted Vol / Mix Price Q2’20 Q1’20 FX Adjusted Vol / Mix Price Q2’20 Baseline Baseline Operating Income*
Slide 8: Second Quarter Operating Margin
Second Quarter Operating Margin Year-over-Year Comparison Sequential Comparison Operating Margin*, % Operating Margin*, % +280 bps +110 bps 13.2 13.1 14.0 13.9 1.8 11.8 0.6 11.8 (0.1) 1.0 (0.1) 0.5 (3.2) (4.1) Q2’19 FX Adjusted Vol / Price Cost Q2’20 Q1’20 FX Adjusted Vol / Price Cost Q2’20 Baseline
Slide 9: EPS Reconciliation
EPS Reconciliation EPS, Excluding Special Items $0.85 Pre-tax After-tax Loss Loss Non-Cash Pension Settlement $4.3M $3.3M $0.10 Impairment of Assets and Other Items $6.5M $5.1M $0.15 Litigation Settlement $8.3M $6.2M $0.18 Reported EPS $0.42 9
Slide 10: Performance Materials
Performance Materials Second Quarter Results Sales, $M Operating Income*, $M -13% -7% 215.4 27.7 24.1 186.2 21.0 173.8 Q2’19 Q1’20 Q2’20 Margin* 12.9% 12.9% 12.1% Q2’19 Q1’20 Q2’20 Second Quarter Highlights Daily Sales Rates • Resiliency in Consumer Oriented 2019 2020 Product Sales YoY • Pet Care +3
Slide 11: Specialty Minerals
Specialty Minerals Second Quarter Results Sales, $M Operating Income*, $M -20% -25% 145.1 22.5 137.1 20.3 109.8 15.3 Q2’19 Q1’20 Q2’20 Margin* 15.5% 14.8% 13.9% Q2’19 Q1’20 Q2’20 Second Quarter Highlights Daily Sales Rates 2019 2020 PCC Sales Lower than Anticipated • Extended Outages • Lower Operati
Slide 12: Refractories
Refractories Second Quarter Results Sales, $M Operating Income*, $M -47% -19% 77.5 11.2 10.4 69.0 55.9 5.9 Q2’19 Q1’20 Q2’20 Margin* 13.4% 16.2% 10.6% Q2’19 Q1’20 Q2’20 Second Quarter Highlights Daily Sales Rates 2019 2020 • Refractory Product Sales Lower by 16% and Metallurgical Products Sales Down
Slide 13: Energy Services
Energy Services Second Quarter Results Sales, $M Operating Income*, $M -30% -56% 25.8 25.2 3.2 2.7 17.7 1.4 Q2’19 Q1’20 Q2’20 Margin* 10.5% 12.7% 7.9% Q2’19 Q1’20 Q2’20 Second Quarter Highlights Daily Sales Rates 2019 2020 • NA Well Test Remained Strong • Global Filtration Activity Lower • COVID-19
Slide 14: Cash Flow and Liquidity Highlights
Cash Flow and Liquidity Highlights Cash Flow and Capital Deployment Debt and Leverage Cash From Operations, $M Capital Expenditure, $M Q2'20 Net Leverage Ratio 2.2X Free Cash Flow Total Debt, $M 67.5 63.8 981 928 897 1,049 49.6 48.8 17.9 15.0 Q2’19 Q1’20 Q2’20 Proforma* Q2’19 Q2’20 Maturities, $M 65
Slide 15: MTI Outlook
MTI Outlook MTI Focus Areas and Outlook MTI Daily Sales Rates Continued Focus Areas 2019 2020 • Health and Safety of Employees • Meeting Customers’ Needs • Advancing Growth Strategy Near-term Outlook • July Sales Rates +5% Vs June (+1% Vs Full Q2’20 Rate) • Significant Uncertainty Going Forward • Ac
Slide 16: Second Quarter 2020 Conference Call
I N N O VAT I O N • L E A D E R S H I P • E X C E L L E N C E SECOND QUARTER 2020 CONFERENCE CALL July 31, 2020
Minerals Technologies — Q2 2020 Earnings Presentation on 6ix