UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 2, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-11430

MINERALS TECHNOLOGIES INC.

(Exact name of registrant as specified in its charter)

Delaware		25-1190717
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

622 Third Avenue, New York, New York 10017-6707

(Address of principal executive offices, including zip code)

(212) 878-1800

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of exchange on which registered
Common Stock, $0.10 par value	MTX	New York Stock Exchange LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒

No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒

No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or and emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒	Accelerated Filer ☐
Non-accelerated Filer ☐	Smaller Reporting Company ☐
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐

No ☒

As of April 19, 2023, there were 32,543,370 shares of common stock, par value of $0.10 per share, of the registrant outstanding.

MINERALS TECHNOLOGIES INC.

INDEX TO FORM 10-Q

		Page No.
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements:

	Condensed Consolidated Statements of Income for the three-month periods ended April 2, 2023 and April 3, 2022 (Unaudited)	3

	Condensed Consolidated Statements of Comprehensive Income for the three-month periods ended April 2, 2023 and April 3, 2022 (Unaudited)	4

	Condensed Consolidated Balance Sheets as of April 2, 2023 (Unaudited) and December 31, 2022	5

	Condensed Consolidated Statements of Cash Flows for the three-month periods ended April 2, 2023 and April 3, 2022 (Unaudited)	6

	Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three-month periods ended April 2, 2023 and April 3, 2022 (Unaudited)	7

	Notes to Condensed Consolidated Financial Statements (Unaudited)	8

	Report of Independent Registered Public Accounting Firm	18

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	25

Item 4.	Controls and Procedures	26

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	26

Item 1A.	Risk Factors	26

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26

Item 3.	Default Upon Senior Securities	26

Item 4.	Mine Safety Disclosures	26

Item 5.	Other Information	27

Item 6.	Exhibits	27

Signature		28

PART 1. FINANCIAL INFORMATION

ITEM 1. Financial Statements

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended
(in millions of dollars, except per share data)	Apr. 2, 2023			Apr. 3, 2022
Net sales	$	546.1		$	519.1

Cost of goods sold		425.4			397.4

Production margin		120.7			121.7

Marketing and administrative expenses		52.3			48.8
Research and development expenses		5.3			5.1
Acquisition-related expenses		0.1			1.6

Income from operations		63.0			66.2

Interest expense, net		(14.2	)		(9.8	)
Other non-operating (deductions) income, net		(1.1	)		(0.4	)
Total non-operating deductions, net		(15.3	)		(10.2	)

Income before tax and equity in earnings		47.7			56.0

Provision for taxes on income		10.5			11.2
Equity in earnings of affiliates, net of tax		0.9			0.1

Net income		38.1			44.9
Less:
Net income attributable to non-controlling interests		1.1			0.8
Net income attributable to Minerals Technologies Inc.	$	37.0		$	44.1

Earnings per share:

Basic:
Net income attributable to Minerals Technologies Inc.	$	1.14		$	1.33

Diluted:
Net income attributable to Minerals Technologies Inc.	$	1.14		$	1.33

Cash dividends declared per common share	$	0.05		$	0.05

Shares used in computation of earnings per share:
Basic		32.5			33.1
Diluted		32.5			33.2

See accompanying Notes to Condensed Consolidated Financial Statements.

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended
(in millions of dollars)	Apr. 2, 2023			Apr. 3, 2022
Net income	$	38.1		$	44.9
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		10.0			(8.2	)
Pension and postretirement plan adjustments		0.4			1.2
Unrealized (loss) gains on cash flow hedges		(2.3	)		3.1
Total other comprehensive income (loss), net of tax		8.1			(3.9	)
Total comprehensive income including non-controlling interests		46.2			41.0
Comprehensive income attributable to non-controlling interests		1.4			0.9
Comprehensive income attributable to Minerals Technologies Inc.	$	44.8		$	40.1

See accompanying Notes to Condensed Consolidated Financial Statements.

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions of dollars)	Apr. 2, 2023*			Dec. 31, 2022 **
ASSETS

Current assets:
Cash and cash equivalents	$	249.7		$	247.2
Short-term investments		6.2			5.6
Accounts receivable, net		421.1			404.0
Inventories		370.1			348.8
Prepaid expenses and other current assets		67.8			64.9
Total current assets		1,114.9			1,070.5

Property, plant and equipment		2,293.2			2,288.6
Less accumulated depreciation and depletion		(1,235.7	)		(1,238.2	)
Property, plant and equipment, net		1,057.5			1,050.4
Goodwill		915.3			914.8
Intangible assets		239.1			241.9
Deferred income taxes		24.5			24.4
Other assets and deferred charges		99.4			99.6
Total assets	$	3,450.7		$	3,401.6

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Short-term debt	$	118.6		$	119.7
Current maturities of long-term debt		14.5			14.5
Accounts payable		225.7			193.8
Other current liabilities		154.2			174.6
Total current liabilities		513.0			502.6

Long-term debt, net of unamortized discount and deferred financing costs		924.7			928.1
Deferred income taxes		178.9			180.4
Accrued pension and post-retirement benefits		63.2			63.5
Other non-current liabilities		112.9			113.8
Total liabilities		1,792.7			1,788.4

Commitments and contingencies

Shareholders’ equity:
Common stock		4.9			4.9
Additional paid-in capital		487.8			487.6
Retained earnings		2,320.0			2,284.6
Accumulated other comprehensive loss		(358.8	)		(366.5	)
Less common stock held in treasury		(831.1	)		(831.1	)

Total Minerals Technologies Inc. shareholders’ equity		1,622.8			1,579.5
Non-controlling interests		35.2			33.7
Total shareholders’ equity		1,658.0			1,613.2
Total liabilities and shareholders’ equity	$	3,450.7		$	3,401.6

Unaudited

**	Condensed from audited financial statements

See accompanying Notes to Condensed Consolidated Financial Statements.

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended
(in millions of dollars)	Apr. 2, 2023			Apr. 3, 2022
Operating Activities:

Net income	$	38.1		$	44.9

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		23.7			24.2
Reduction of right of use asset		3.4			3.1
Other non-cash items, net		4.2			5.9
Net changes in operating assets and liabilities		(35.7	)		(77.8	)
Net cash provided by operating activities		33.7			0.3

Investing Activities:

Purchases of property, plant and equipment, net		(24.4	)		(19.0	)
Proceeds from sale of short-term investments		1.6			1.9
Purchases of short-term investments		(2.0	)		(1.2	)
Other investing activities		0.1			1.2
Net cash used in investing activities		(24.7	)		(17.1	)

Financing Activities:

Repayment of long-term debt		(3.8	)		(0.3	)
Proceeds from issuance of short-term debt		—			30.0
Repayment of short-term debt		(1.2	)		—
Purchase of common stock for treasury		—			(16.7	)
Proceeds from issuance of stock under option plan		0.2			0.9
Excess tax benefits related to stock incentive programs		(2.8	)		(3.3	)
Dividends paid to non-controlling interests		—			(0.1	)
Cash dividends paid		(1.6	)		(1.6	)
Net cash (used in) provided by financing activities		(9.2	)		8.9

Effect of exchange rate changes on cash and cash equivalents		2.7			(3.6	)

Net increase (decrease) in cash and cash equivalents		2.5			(11.5	)
Cash and cash equivalents at beginning of period		247.2			299.5
Cash and cash equivalents at end of period	$	249.7		$	288.0

Supplemental disclosure of cash flow information:
Interest paid	$	19.1		$	14.6
Income taxes paid	$	4.7		$	8.9

See accompanying Notes to Condensed Consolidated Financial Statements.

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Unaudited)

	Equity Attributable to Minerals Technologies Inc.
(in millions of dollars)	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Non-controlling Interests		Total
Balance as of December 31, 2022	$	4.9	$	487.6		$	2,284.6		$	(366.5	)	$	(831.1	)	$	33.7	$	1,613.2

Net income		—		—			37.0			—			—			1.1		38.1
Other comprehensive income, net		—		—			—			7.7			—			0.4		8.1
Dividends declared		—		—			(1.6	)		—			—			—		(1.6	)
Issuance of shares pursuant to employee stock compensation plans		—		0.2			—			—			—			—		0.2
Stock-based compensation		—		2.7			—			—			—			—		2.7
Conversion of RSU's for tax withholding		—		(2.7	)		—			—			—			—		(2.7	)
Balance as of April 2, 2023	$	4.9	$	487.8		$	2,320.0		$	(358.8	)	$	(831.1	)	$	35.2	$	1,658.0

	Equity Attributable to Minerals Technologies Inc.
(in millions of dollars)	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss			Treasury Stock			Non-controlling Interests		Total
Balance as of December 31, 2021	$	4.9	$	474.2	$	2,168.9	$	(333.6	)	$	(775.1	)	$	40.2	$	1,579.5

Net income		—		—		44.1		—			—			0.8		44.9
Other comprehensive (loss) income, net		—		—		—		(4.0	)

SEC Form 10-Q filed by Minerals Technologies Inc.