Slide 1: Second Quarter 2024 Earnings Conference Call
SECOND QUARTER 2024 EARNINGS CONFERENCE CALL July 26, 2024 © 2024 Minerals Technologies Inc. All Rights Reserved.
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 and Chief Executive Officer
Douglas T. Dietrich Chairman and Chief Executive Officer
Slide 4: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights $85M 15.7% $1.65 $50M $541M Operating Operating Earnings Cash Flow Sales From Income Margin Per Share Operations +1%* +20% +290bps +26% +10% *Underlying sales growth Highlights Record quarterly operating income and EPS Continued momentum with margin expansion – ahe
Slide 5: Strong Portfolio Built for Higher Performance
Strong Portfolio Built for Higher Performance H1’24 Consumer & Specialties Built a leading global vertically integrated pet litter Household & business Strong portfolio of leading Personal Care Investing in higher growth consumer-oriented $1.1B businesses Sales businesses Leading new recycling
Slide 6: Current Market Dynamics
Current Market Dynamics Consumer & Specialties Household & Strong demand in cat litter and other Personal Care consumer-oriented markets Specialty Stable overall paper and packaging Additives and residential construction markets Engineered Solutions High- Temperature Stable markets; slow-down
Slide 7: Erik C. Aldag, Chief Financial Officer
Erik C. Aldag Senior Vice President, Finance and Treasury and Chief Financial Officer
Slide 8: Second Quarter Financial Summary
Second Quarter Financial Summary Q2 ’24 Q2 ’23 YoY Sales vs Prior Year ($M) 552 (14) +1% Sales ($M) 541 538* +1%* 6 2 538 1 541 Gross Margin (%) 26.6 23.2 +340bps (6) Operating Income ($M) 85 71 +20% Q2 ’23 BMI Q2 ’23 H & PC Spec Adds High-Temp Env & Q2 ’24 Tech Infrastructure Operating Margin (%) 1
Slide 9: Consumer & Specialties Segment Second Quarter 2024 Performance
CONSUMER & SPECIALTIES SEGMENT Second Quarter 2024 Performance +3%* Second Quarter Highlights Third Quarter Outlook $277M $284M $284M Household & Personal Care sales up 1% Similar market conditions across the Sales Growth in high-margin consumer products segment Q2 ’23* Q2 ’24 continues YoY sa
Slide 10: Engineered Solutions Segment Second Quarter 2024 Performance
ENGINEERED SOLUTIONS SEGMENT Second Quarter 2024 Performance -2% Second Quarter Highlights Third Quarter Outlook $261M $257M $257M High-Temperature Technologies sales up 1% Similar market conditions across the Sales Market demand in N. America remained steady; segment Q2 ’23 Q2 ’24 late quarter
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow and Capital Deployment Liquidity & Debt Cash From Operations Free Cash Flow Q2 ’24 $106M Cash, Cash Equivalents, and $316M $79M Short-Term Investments $69M Available Revolver $222M $33M Total Liquidity $538M YTD ’23 YTD ’24 ($112M) Q2’24 YTD’24 $787M $675M 1.7X
Slide 12: Third Quarter Outlook Summary
Third Quarter Outlook Summary $535M-$545M Sales Sales on trend with the first half of 2024 Consumer-oriented markets continue to grow Softness in some industrial markets $77M-$80M Margins remain strong Operating Income Continued strong cash flow generation On track with long-term strateg
Slide 13: Douglas T. Dietrich, Chairman and Chief Executive Officer
Douglas T. Dietrich Chairman and Chief Executive Officer
Slide 14: 16th Annual Sustainability Report
16th Annual Sustainability Report Continue to Advance Sustainability Initiatives Comprehensive view into who we are and our culture Demonstrates our progress meeting environmental targets: • Achieved 10 out of 12 targets ahead of 2025 target year Explains our focus on further enhancing disclos
Slide 15: © 2024 Minerals Technologies Inc. All Rights Reserved.
© 2024 Minerals Technologies Inc. All Rights Reserved.
Slide 16: Appendix
Appendix © 2024 Minerals Technologies Inc. All Rights Reserved.
Slide 17: 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 18: Segment Operating Income Excluding Special Items
Reconciliation Segment Operating Income Excluding Special Items (millions of dollars, except per share data) Quarter Ended Six Months Ended Jun. 30, Jul. 2, Jun. 30, Jul. 2, 2024 2023 2024 2023 Segment Operating Income Data Consumer & Specialties Segment $ 43.9 $ 19.4 $ 85.9 $ 51.6 Engineered Soluti
Slide 19: Adjusted EBITDA Excluding Special Items
Reconciliation Adjusted EBITDA Excluding Special Items (millions of dollars, except per share data) Quarter Ended Six Months Ended Jun. 30, Jul. 2, Jun. 30, Jul. 2, 2024 2023 2024 2023 Net income attributable to MTI $ 19.7 $ 26.6 $ 66.4 $ 63.6 Add back: Depreciation, depletion and amortization 24.0
Slide 20: Sales Growth Excluding BMI Oldco
Reconciliation The Company Sales Growth Excluding BMI Oldco (f/k/a Barretts Minerals Inc.) 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 BMI Oldco f
Slide 21: Free Cash Flow
Reconciliation Free Cash Flow (millions of dollars, except per share data) Quarter Ended Six Months Ended Jun. 30, Jul. 2, Jun. 30, Jul. 2, 2024 2023 2024 2023 Cash flow from operations $ 50.1 $ 45.5 $ 106.0 $ 79.2 Capital expenditures 20.2 21.4 36.7 45.9 Free cash flow $ 29.9 $ 24.1 $ 69.3 $ 33.3 2