MTX - Earnings call 3 2023 | Minerals Technologies Inc.

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Operator

Good day, everyone, and welcome to the Third Quarter 2023 Minerals Technologies Earnings Call. Today's call is being recorded. At this time, I'd like to turn the call over to Lydia Kopylova, Head of Investor Relations for Minerals Technologies. Please go ahead, Ms. Kopylova.

Lydia Kopylova

Melinda. you, Thank and conference everyone, our quarter third Good welcome earnings call. XXXX morning, to will Chairman Aldag. Today's Officer, led be call by and Financial Doug and Chief Officer, Erik Dietrich; Executive Chief

open and about Following Erik's note securities release reminder, of our the this constitute statements Doug the laws. meaning forward-looking the in may to during earnings call statements prepared we'll Please some this and made statements forward-looking slide. questions.As contained it on remarks, of a language up cautionary within federal the

disclose appendix financial SEC can may note financial are our to today Our forward-looking materially which and cause comments found our certain I'll non-GAAP reconciliation also filings posted on risks GAAP A from our uncertainties, actual measures. it Doug? measures that statements.Please this differ Doug. of over website.Now our to to which some presentation, of results and be to in turn in refer earnings release these

Douglas Dietrich

Thanks, giving joining Lydia. Good morning, start today's a outline you off call. for for me today.Let quick everyone, and thanks by

sure have questions our the at end the Erik ourselves time general take our review financials and take conditions earnings for you through of to that, we give Then comments.I'm third on performance you fourth why I'll update part reviewed last give of we've then outlook plenty this an business deeper I already program bit as a of want to some share provide quarter also I'll I'll time I release. it's quarter and of an highlights third a strong week. provide increase And After indication on this, quarter. to we'll commentary press announced trends. on market feel our an I of repurchase Barretts quick how spend Minerals. the for the and and continued improvement. the positioned want dividend profit going of and you've bit update drove a into quarter's First, will your what

operating sales cash of So any are flow. third let's some increased go delivered quarter, we're through strategically quarter, are Each ourselves market and we've conditions record operating for margins the quarter highlights. record from how this, to our how record the an significantly despite segments third executing and face improved sales. Both continue These performing results We business of perspective. through for of MTI well. quarter, but reflective achieved our had positioned main income mixed

some give of Let highlights. me the you

to the paper growth North year Specialty household increased highlight Consumer and animal although due care the volumes feed remained our segment, continues across in & to with growth of strength improved care our natural slow, paper and line Asia develop.In as XX% geographies. Specialties Within The Europe from all product stable year, markets additive over product satellites continues last last sales, to region. show the the line, in were products the main XX% and which Additives personal market health markets pet America being and newest stronger

carbonates calcium products North We in performance ground solid saw our America. also from

stable maintaining performance. treatment, In and lining line, located high-temperature our breaking Solutions very hit production savings environmental facilities. wastewater input business on product This pricing, market U.S. the our sales cost remained delivering improve over products last quarter, pricing cylinders, performance quarter. operations, product each improved delivered quarter, improve waterproofing fact, to commercial share, productivities market.Next, In and We production, to infrastructure this a margins to segments point technologies EBIT markets our savings, environmental our at strong operating capturing reduction and expanded of solid all a base the margins Western Both line construction income and Engineered drilling segment, record our a and XX.X% the continue activity had systems the leverage gaining continues a China operating any In in margins held year. GCC expanded and Strong yielded in cases, income, especially for had sales facility program. improvement the many America records. expanded strong and strong steel is foundry in with $XX quarter, North and pricing foundry million fixed cost spending and to continue in a $XX cost expense we captured XXX see MTI. and through progress million significantly. quarter disciplined weak input which market basis for

doubled million. it flow expected, year-to-date, last Cash cash we $XXX more year XX% than over to and sequentially, has As is improving. increased from operations

portfolio With the flow forward. of confident expansion margins, in we're profit sales of trajectory cash the going levels our stable of and businesses stronger

confidence, this where program.Before is we Barretts $X.XX I with last brief move the of on are shares on, from quarterly our and week by repurchase the Minerals. $XX in Board increase authorization want Our new which $X.XX to illustrated million a to a update give dividend you share I

claims. X, safety stood of filed products. for business. BMI these against XX the calls, The year, announced reality on the BMI cases protection. always small claims this discussed defend these cost we've continued as of filed these these believe itself be as over result, And to well costs overwhelmed a BMI's we on as We Chapter and that increase against to As to past have soaring the by legal October meritless, it

is the this, associated In fourth for quarter, using process. we As this to of charge protect fixed a options recorded business, Process will business bankruptcy well expect a as a with to X-year performance our all want focused sure per usual and stakeholders. and operate as we ensuring and and you BMI what's driving what's was onetime energy few squarely our in to the into litigation that continue. as to remove to a progresses. achieving will highlight them noncash from the and be take impairment see it MTI rather corporate we're this our step the just bankruptcy and a as to quarter, go why update fully numbers take them, will result forward best targets.I resolve, minutes We the BMI I time to assets the throughout. deeper that the We'll costs fully the on continue significant charge process to behind path moving bit our We financial to that results. confident several considered growth a decided this did, but not of illustrate

and culture higher-growth advantage deploy the mineral ability of through core other now our growth gain top our resilient geographies. and unique markets technologies, operating of portfolio pet of care quarter that and performance with ingrained operational a about a while driven line our of positions establishing product coming ourselves made are strong in elements Our in owning this higher strategy model. by up our It by stable our is reserves.We've combined starts extensively profile, together, revenue supported and to excellence consumer specialties positioned businesses, like consumer-oriented our we've with talked strong how we global long-term also several

the the recover, This much had yields and growth we meaningfully And America that these like end areas company growth. as markets other growth markets sales it the in These give balance offset quarter, stable experienced past. the other is slowness the combination markets stable higher more construction European than accelerate. from North This in will long-term steel. our commercial

continuing combined see expansion growth from our are them going main products margins forward. going We the discipline driving quarter, natural mix see X potential, areas leads margins to Improved that fixed also higher costs, we flow cost base. outlined this growth our margin these expanding X to ability for targets. expansion this and with improved in of on our you to to All to price and long-term leverage and cash There the we generation. our margin higher-margin margin increased expansion elements growth contributed contribute forward.MTI's

M&A to with well have balance this program. fund cash around shape is our pursue Combined targeted sheet and net financial levels. as an Our new in capital ample share expenditures, dividend we good stronger generation, support repurchase debt as increased with resources

All stating commitment cash has culture. technological that business of capital deployment wrap integration our potential that approach and one with people-centered growth and powerful MTI me and up specifically a capabilities, shareholders.Let operating our vertical a this revenue balanced and to consistent of stability this by slide combines history strong is returning to model, with discipline,

that to excellent but the it us, example meeting how how the they of continue elements we're out outlook potential. Erik, in markets. those for what our quarter together me let targets more you the on we're pass provide tank, and remains strong we're a on last for an through markets and and to came we our our earlier to few got you is speak, for to value gas a had seeing. it to the will a in shared I quarter before seasonal quarter with future. laid exception Overall, entering we way year.Okay, more This and some our this We've take well This market is periods similar what lot financial so of

growth with start market. the is continued America in markets. care U.S. both this in Europe, litter both the see personal driving in are where more Further, mining for There several offerings to strong we're and production we our which as X trends our segment. and conditions that market the strong next well and we're & broadly, strength. continue Europe cat to and positive Asia the see positioned Overall, premium near-term care Consumer pet as Let's continued market, well with is label we this are period in over North seeing Specialties household capture trends seasonally each demand positioned and But across Pet entering demand private in quarters. locations. long-term litter we're its

personal the period fourth markets, Additives, We residential In animal improvement expect and through stable market diesel, paper to path and outlook our positive.Though for renewable expect oils, construction, remains QX also we growth edible in North market. their gradual HPC Specialty remain American care XXXX. is the a slower seasonally also in on typically including other quarter health

see right taking will into now. paper year, and boost we the place are Asia that in Looking ramp-ups X satellite in volumes a packaging next from

new have pipeline also a solid We of business packaging opportunities.

into and continue growth and transition our we growth transition continue adjacency. We market as this our

markets. North Engineered we and in conditions next we signed high-temperature our mixed for for for a at drive China. and our foundry help stable for sales in have year, improvement and as And see We've continued gradual outlook higher.Moving these foundry market Infrastructure. foundry come As several In we Solutions the it the see We products continued & equipment. generally number laser both technologies, of and markets, contracts America long-term refractory look steel volumes a Environmental more steel and the conditions. application will to a online positive

more as remediation well in end to systems our lining these and We mixed QX. view cautious markets. on slow as have environmental and tend a for market major The projects QX

in the which has side, construction The improvement infrastructure any also quarter. positive solid remain We see commercial waterproofing and don't all year. should to environmental expect drilling throughout been slow market, market wastewater the

team as more.In product another us it review strides sets unique capabilities More active available the head Looking for up Erik further momentum detail. let summary, over to has The and XXXX.Now to for technology learn great on presented for in strong PFAS our technology all over turn This strong the financials attention website trials me and FLUORO-SORB lines, we has our across you're interested in and gaining Erik? year. if of and the our business we've for more markets making into so, presentation to end out, see is our recently year strong built XXX relatively which PFAS symposium. us we currently we been remediation. at Gabelli our pilots

Erik Aldag

Thanks, outlook I'll our provide the quarter start and fourth for everyone.I'll by our performance, third Doug, morning, good also and reviewing quarter.

call for the third our review let's my Following turn over we'll quarter questions.Now results. remarks,

Overall for Let EBITDA, me million, strong and we quarter $XXX and and similar prior both marked had records margin income sales by improvement a cash the saying higher flow. prior significant adjusted to by year. operating start were quarter third

margin the earnings representation are to when were on You that bridge from conditions time year and segments.Operating we the and products for year million, was strong. can result specialty the higher-margin combination on mix products. lower, This and on to productivity having XX.X% reflecting versus improvements basis sales points quarter. that above growth and assets deliver The is our X XX% margin of in X market sales. driven right markets of aren't the the stability good special has was excluding EBITDA $XXX quarter. this are noting basis of within of It's company overall Adjusted was targeted improved points result million.Our this third $XX of our in mixed other higher-growth X special that consumer-oriented grew the This MTI. above X% experiencing the growth providing worth price/cost X our benefit included in quarterly all in the sequentially, higher results are Barretts generated that bridge represented and XXX impairment quarter see top favorable as remain the And reported year. XX.X% we portfolio, both improved lines a largest fixed sequentially significantly last track the Operating items, noncash into $XX by was million first Inc. a to sales last the a we leveraging of $XXX million the the income, across record XXX recovery, Minerals And items sales our and increased improvement. of of higher EBITDA the product

XX%. of shows $XX interest BMI was a years, our X% last litigation for not personal higher performance trend excluding X year This in & the protection. beginning expense special to X% over X% our million, be years.Now X% segments, year. which last versus line Additives Sales were apparent you the other give Specialty filing EPS compound year. review includes the in To third EPS and $XXX $X.XX. million for the at dynamics in its the household last consumer EPS above $X.XX since sales quarter Sales the segment X% product bankruptcy last higher the included up item & were Specialties. lower lower of last similar Consumer care on line over given left, higher X% sequentially. And was and might related second year The XXXX. so growth play were and third sequentially. growth higher also care pet Growth I'll line strong charge trends some were the remained And significant quarter. specialty rate in perspective, across this X items and with Sales sales markets to we've with annual quarter product Consumer several costs the in even second EPS than Specialties special product last our than a the

below million, of in construction, residential improved remained demand due with segment the facility. from remodeling prior in recovery. operating for production levels in higher second our and to increased America by new paper price/cost American XX% impact margin by to improved in was satellite products are new North part While to Meanwhile, activity, remained year the helping driven points, of offset Europe. driven used steady that both operating builds.Adjusted the volumes XXX quarter, demand mixed $XX ramp-up primarily our Asia conditions North fewer In the income year-over-year, and for year-over-year basis market

segment. and and additional In offset and other Asia. to guidance consumer expect going construction, by in that operating satellites Looking Specialty to million for expect income typical in to fourth in Engineered from our we revenue turn in continued household profit personal means reflects results America in BMI, strong Additives, care quarter.Now which continued be be deconsolidation quarter. in $XX the volume partially from specialty of new by paper we North strength in the around segment products. total, we BMI's production let's Note the sales fourth Solutions care expect pet the the quarter, from gradual improvement In improvement and beginning forward this will excluded MTI's fourth seasonality the driven continued

prior in grow a XX% Defense for technologies, continue one than improvement than quarter and basis were an this quarter, including steel foundry of FLUORO-SORB volumes higher strong, sales, completion demand in similar drilling, solid year & sales the margin Solutions was $XXX were grow, applications sales using was year. the location.Third remediation in Environmental Price/cost segment foundry Department year. quarter lower for income In and technology, XXX prior activity China. X% Infrastructure, which to million, to sales PFAS wastewater of of million, high-temperature remained last our as and products last were North at project drove $XX In commercial operating continue in and the construction remediation above another points. the Engineered the operating recovery the as XX.X% of Third segment Sales we year remained U.S. to America slow. for execution X% expansion

the remain Looking quarter, continued ahead fourth anticipate we similar Asia, North we expect strong in growth conditions America, will to the trend continue. for Europe Technologies, In high-temperature to demand China we in foundry volumes in and expect sequentially.

line, laser million & finally, will lower seasonally we In a sequentially Environmental segment, the In we and the the operating benefit sales Infrastructure income will see the fourth $XX sales. be enter for for And equipment slow measurement product period expect we in to environmental projects. approximately total from higher be as quarter. in addition, expect construction

year-to-date cash some year. year-to-date the million, we and bringing $XX million more million. includes and quarter, cash accelerated expected, to strike, than UAW period limited double the quarter year-to-date the guidance $XXX balance flow highlights. sheet we expenditures flow in Our last from situation.Now were flow cash same turn Cash to impact free $XX was from our operations to let's to third $XX Capital are the in continuing and bringing million, as monitor total the the

free cash For the million. flow full year, $XXX we continue million between and to expect $XXX

strong. for Our flow target EBITDA. liquidity to EBITDA our the balance are sheet to we leverage our $XXX Total of quarter program.Now expect repurchase another I'll positioned in well for third In our approaching improved maintain at to experience as segment, laser as approach and leverage fourth household strong improve, Consumer expect million, pet sales come driven strength gradual X.Xx includes & Specialties performance which In cash the around returning Xx construction and we Asia quarter. America in continuing allocation, BMI and fourth satellites to from was solid shareholders remains and of offset expect new the lower end our very capital balanced we net With high-temperature Overall, the and outlook care our quarter. to production the capital through MTI, from volumes. MTI's and into care, by the line the by Solutions deconsolidation and typical North paper seasonally in driven activity in product segment, and continued higher growing in will Environmental higher sales well particular. market foundry the & Engineered Infrastructure personal equipment packaging we of will the improvement seasonality. measurement results. technologies, Meanwhile, demand Specialty Additives, be by dividend continued In rates

sit, growth a As currently year this year, and mixed despite quarter of of we've we trajectory. earnings continuation represents see million $XX per $X.XX $XX between markets year experienced full this full growth fourth This EPS XX% $X.XX. operating earnings equates And guidance between company's the X%. to million guidance and X% approximately share operating income and growth of and we the income to

In flow year. cash quarter to expect strongest addition, be the quarter fourth our the we of

earlier, over were performance model cash generation As business forward.With on And will quarter. drive flow turn full that, to this going of MTI's this display margin Doug questions. the stability, growth, highlighted I'll our and of elements call key for the combination improvement continue powerful

Operator

And question first we take our from Moore Daniel with CJS [Operator Securities. Instructions]

Dan Moore

for, both you to Consumer you've could pricing Maybe well and the give gains made us if pricing kind as as price a Engineered on sense with, & strong across Specialties margin Erik, a strong long obviously, versus remain of Congrats you tailwind? and start expect how Solutions volume execution improvement.

Erik Aldag

Dan. Sure,

quarter. Specialties. improvement pricing the in to across of margin lot positive particularly the yes, that we So both contributed positive recovery had the segments, price/cost you quarter & in And that's so Consumer a that saw more happening this and the of so

out you I year, like XXXX, that versus something of think on this to company, margin points through all last XXX And go back down XXX basis as year to inflation. of recover being when we a pricing. upside to basis points absorbed we'd set from price

margin you what gets of averaging as to we've end that's a rate what so XX.X% of of previously operating this by run the year. kind stated And

track that. on for And so we're

half So what in less the been coming more the pricing it's it But of a and segment. from we're the in last do has so we overall would actions year. is we impact, achieving the Specialties price/cost third said some recovery much as we've our greater extent first quarter to Consumer the lapped significant & than pricing

So pricing range the line. of low impact the our of now in we're kind in on seeing an single-digit top terms

Dan Moore

that just is that kind we Very see exceeded XX%. a seasonally somewhat XX.X% in I maybe of across not helpful. your businesses. as for And margin, relatively And you timing stronger ]. demand this the least [ environment, XX% adjusted potentially this exited, some but of if quarter you just realize conservative, of longer-term talked your a about goal quarter the tepid being to Do operating at apps than getting

Douglas Dietrich

we'd Dan. we've jump quarter, XXXX. I'll one, see, stronger the think to start start at knew cost, of our Maybe selling hold. those in seeing out We've see to as And the of that And it This and we representative margins by market great the looking a the target kind set think through to we'd is job a well. you're of that playing We you'll Doug. over. on that capture done I seasonally in pricing but that continues value Look, I our Yes, is potential. start gross see products to think are you do I value. a of deflation, XX%

because reserves. unique supplier our are own we long stable We time a mineral

I we're that continue to think the And make think consumer to we for products. business improve care. that I our enables that, continue value you customers improve, and to in sure see pet the see as us getting

specialty those XX%, in part growth of also think Yes, products, are to higher higher-margin margin. push That's XX% through I expansion. starting margin You're that that can growth. which the see we

are And past in fixed those out. products told though, on to year, think, there's stable profile and we leveraging it's we're that on take focused XX% Those years and potential like that Those but going to our also market. new getting I the laser X you specialty innovative think I XXXX. out higher-margin XX%, further, get products growth delivering by products. a are yes, those

there. start So

Dan Moore

if you and anything where comparable mind, just sense back, would can apples-to-apples, at there's taking we or to bring I the next should what And in of route tell taking there be? the your the us are bankruptcy a Is process, step about steps in maybe why look sensing full accomplished sort protect asbestos of hadn't cases, and but you it MTX liability the know be from no it whether others, parent. that maybe ring

So be any really I appreciate update helpful. would there it, Doug.

Douglas Dietrich

each Yes, made these in different, as We've processes we and looked We really at mentioned, scenarios. was understood dynamics. the we have are they of different different landscape. what sure happening

that mentioned just in load overwhelmed tote the I business. just pulled of ] feel, my was As into kind the this [ case kind comments, of BMI we being

a it structured best we in and look, very that way was the protection, a There dynamics puts to transparent for to through. have of that bankruptcy forward and path well-defined so And to felt stakeholders, seek going for worked the including that, are and MTI be BMI, number again, all are shareholders, process.

of hard at right time, at or play this in out. really time point So you it. the that how It's give just it's frame will to a beginning

going And once fund we'll the and assets. probably this idea kind of of time next play a better trust. out frame. to assets, will be is to through the and the that milestone think how the using that, to the I we're major have selling BMI of

out, premature that give it it ring-fence make and you and play how to it's protect we now, will company process, steps but we've to what is bit designed take through the sure protect that's right done. the and a So MTI to the

Dan Moore

All right.

of have prepared the times longer-term you Lastly, targets the remarks. mentioned the you a as in couple XXXX,

it on So the say have to your fair that any impact of doesn't talc targets is in removal those mind?

Douglas Dietrich

BMI million think business. was $XX a I No,

So it call and to sales year with next impact, out and in out. difference profit the year-over-year we're have going probably the the comparisons to have an will to

So I changes think things. But we'll that, do no, don't that that.

being of a $X.X over of $X.X a have X% in will of $XX of potential X front million scale And the at next billion, difference. growth think kind board an the the running we to think target, that. us I is target on growth average going of I that the make offset don't revenue billion years, big across a

going be right. don't that's will our couple some to of change giving we So But you I quarters, have target so bridged you for growth. comparisons next no, meaningfully the it think

Operator

Instructions] And next Research the with Seaport Harrison of to line go we Partners. Mike [Operator

Michael Harrison

on a on Congratulations business. quarter. I strong the question had a household

One of space many main We that shortages. pet players It significant quarter. care last has owners switch that dynamic cyber that, some in understand attack pet the to to led product led any a to a all having Can seen in have what different consumers brand. you impact to acceleration care be label may event about that And you pet business? talk at switching your on private brands? had

Douglas Dietrich

Yes.

did to longer an make right. noted see order this quarter. some past bit of uptick likely a volume I the and I We for you're term, I temporary. that. occurred won't that me But up substantial, little that. that it's take And most we think Let issue say in think

yes, built that as position the you know. America, faster through grows, acquisitions, pet we're think grows positioned America. is private North category the seeing to And We've a as of the couple a litter we're category the in average. well of bit in labels North growing than I private supply label that

kind driving looking the when think branded America. we product a assets provider, from folks our with and And being that's benefited our label that's has a North in private that trouble. brands with yes, so bit locations, for But private growth I some what's mining of And label temporary.

Michael Harrison

Okay.

if with I switch switching. think more would So stick I that of guess cat you some one be try consumers a don't that to is maybe that to ignite could that litter unavailable, end becomes up being envision something going permanent there's brand. something permanent. And

see that don't You happening?

Douglas Dietrich

is brand brand a a has there Yes, loyalty. and insect you hiccup, agree loyalty, some when might that understand with I you, I

going So I I instance available demand general, of on you as of that is the just incidents whether remains like wasn't for demand because guess But happened we shelf. outgrowing volume general, in be And to and private from trend will that's that unfortunate one a the is little for company. I'm answering to a that, It I quarter in think that this tell regardless be sticky. the that bit label I to long-term outside the that other. think the it one question benefited a seen

to I answer benefit it think a going I forward. going Can rate that growth long-term base that's trend that's way? our

Michael Harrison

cost still where guys process? Are we of quickly, fine. the rate that's No, we pretty a that as in quarter? just of the were we realizing early you in terms think And of Yes. end you third Or are then kind of the actions? worth run do of million do of where have $XX

Erik Aldag

We're through Yes, Mike, a a of this basis... way run on about is perspective savings Erik. through rate from third quarter the the X/X

Douglas Dietrich

of year, we year. the Mike, full rate run beginning by next get half the next first of

on well with track savings. that with those we're So

Michael Harrison

Perfect.

a And Okay. then me of allocation. for on capital couple questions

increase shareholders. could dividend is future your provide expected new growth? be Or on maybe the forward, Maybe the just dividend, considering the in and rate to a Board that With policy new line any approach curious, going the other comments is returns earnings to in $X.XX increases to just with quarter? you

Douglas Dietrich

we to permanent So to increase continue we go yes, how to Board going that that the dividend $X.XX I quarterly as that at allocate the look do $X.XX. think is forward, capital. a to is

make us repurchases we're for to that of capital we is opportunity M&A sure flexibility steer the preferred one we've cash. value the use share what some there's because think that a higher able that using as up, if something to comes know, higher to you As gives

and $X.XX Board dividend where are a is will that going And increase. now increase is look But continue that so permanent at I policy forward. the think we to

So right now. going but where that's we at the forward, for look will dividend are Board increases

Michael Harrison

of years All curious, right. deal And kind of then when another a back in did terms in you you a just were ago. M&A, guys deal acquired few AMCOL XXXX at and you looking major transformative

debt-to-EBITDA would that transformative if criteria sheet transaction? in for need wondering What larger be target provide meet? appetite leverage how Just more lever a on balance net versus much can to your thoughts some to up updated the larger order you deal. And it willing to a you X.Xx would complete or

Douglas Dietrich

by So this. let start answering me

We've part bolt-on over stated past So we X X going a through kind probably now on demonstrated as years. have the growth X of of that our M&A strategy. acquisitions

pieces them we capital have each that the said, opportunity both good as product positions sense And of and see our we and make have we the pull an I'll in in also to opportunities that So fund I for opportunities. each build to company. that product as have valuable some inorganic lines, lines, of organic X note

set up it's so way. And that

I given past. nice bolt-ons a targets And to that that help And so lines we've product the of each in the some you some there's think and of forward. additional for pipeline in going we're going actually to the growth look at continue accelerate

we're those As our in far as of those of different portfolio are there some a elements. transformative that looking at that acquisition, a at. we look are But things on number

delever past, all will understood, and the these that risks debt And look cash both deals we that I would in the probably leverage that be are And the think go to our where our AMCOL it, the was so would well understood, lever it willing say we're into we transaction. we risks that markets and were X.Xx up let's at capital see, think are I that environment, demonstrated to ability them we would with synergies when and we how say the with with would depends in rapidly. before. go targets and that synergies lower sure the available than angles associated to are the AMCOL, very where say, paydown much But flow that. I we happens we as environment understood on what I forward. the from very making our

profile. would company, I how that of debt created and would do the we same it. paydown. It's We have size these. think and type anything first would we rapid the to foremost, the the look benefit at at That's risks, look value

time. how the So go. target high It I at we the and can't answer see depends we'd really what on

Operator

comment question of & the from comes with next Company. Steve Sidoti line Our or Ferazani

Alex Hantman

buyback. Hantman is question is for around This the My Alex on Steve. first

Given And reduce generally, debt reduction? room buyback there still share the you to repurchases is sizable prioritize how announcement, and debt? do

Douglas Dietrich

Sure.

kind allocate of program. our we cash see is history, to repurchase typically average, allocation way which and year of at free the is and look we about a of $XXX of and our to kind back So with we expansion. million policy around flow, look typically capital the at and a grow Over the form continuing XX% that that profit shareholders our share typically we growth in

that of we're our that at And cash kind free flow. flow to million usually increase, of time, repurchase capital And we But still be share again, the around free gives that dividend a able of $XX us cash so kind is at this Xx. which of this when allocation program in leverage, at point half plus half target look delever. is around to

year, balance an around we have steered down shareholders. in if with to going around X. acquisition up past look the make we're cash that sheet then sure the we usually to to And share Free gets Xx, been repurchases. towards flow get X.Xx, we've So back

M&A the have transaction an flexibility that's we So around. if sizable comes

sufficient is the sufficient your increase repurchase, we capital or on So dividend X-year repurchase reduction bolt-on put share to for reserving the the capital for and share potential balance debt sheet going for to the see yes, to both the have both and M&A. capital, question answer forward we

good of gives It expanding and trying generates, With lot flexibility the cash sales, that of describe. options. it's that's a with that the flexibility, think to sheet keep in that and our us of type stable company shape generated balance our lot historically I we're we've sales, a us a to X% margins, capital shareholders. gives return to conversion

Alex Hantman

the talked you've laid in significant previously that given we've I out appreciate opportunities the today, of expect PFAS And in do you additional sizable capital remediation the business? investments color about allocation, speaking there.

Douglas Dietrich

Yes, organic investments.

continuing XX%, answer used that we R&D. if So about it the We're got I making now of pipeline X% talk increased your to We we've to question, We've we're XX%, time are We've that we X sales. accelerated impact. sales and around from XX% are from We've to to be products. invest I how ago. was new in in. development. revenue invest, less the doubled of if than the properly, coming back each million products gone sales. investments new understood a of sizable approaching half market, We'll in years get much bring products new you a the cut half number of our We've them $XXX this and year, to product new we've about year.

investing We're very in working new We're we yield So customers higher-margin call maps. build investing technologies. to products. with closely we are what in new road technologies that

That's their sufficient them building products And and with new customers guides into technology and that have And what seeing X, maps plants years make goes innovation. our yes, products. are the But And have in to with coming flow your return we keep those our that program. is previous question, expenditure on sales. make our about excess shareholders. after through of X to our capacity so what looking we're to that out free and capital yet normal straight all then needs that road sheet we cash and able our to capital sure be to balance still, investing X%

with that yes, best ourselves many one in as find you. be investments, investing are ourselves. And the in in investing ways we of we So think we to honest

Alex Hantman

additional And might PFAS of in had Absolutely. little a on quick some clarification investments of bit meant specifically to and more remediation that you the line just focus business. I that. have one on

Douglas Dietrich

Yes.

Environmental Investor type technologies. we've is and are They water to remediation a We wall of Day part of even sediment had technologies. Infrastructure wastewater environmental drinking look a chance to remediation in host of at to this So slurry that remediation & remediation. laid water our capping in host groundwater Hopefully, from a out.

have to sure we up be make currently to PFAS technologies, invest be so satisfy new to we new And cover we number have a have capacity capacity able to and areas that. we installed in like of plenty ramp make to remediation. able to sure And of also targets to

a keeping eye going an understand we slow for our plant, ramp, we're when but it's technologies the specifically of willing capabilities the see it. PFAS and the points the We look, certainly and on capacities invest So forward. to inflection

Alex Hantman

for out. for might the me, And helpful. consumer talk existing Very see opportunities about last technologies you growing for industrial of any round you it you product Perfect. We've and discussed pruning? how portfolio and a Can everyday mix question life. evaluate to just

Douglas Dietrich

health, investment been which Well, care, I personal pet least we've growth of at in into broadening consumer building like portfolio in edible oil product a the our care. in business. and And biodiesel goes think that or of see lines. We think in potential that animal them lot business, a purification portfolio number there's of I strengthening continued filtration and

growth that There the areas we I if going potential that other are capital see those or So we're contribution to at consider we those would we'll think look they that don't pruning. to build. the the if or have continue to don't allocation

ones that So at highest and portfolio the are going And steps through value we will for to that we're making yield and taking that process sure consider go to don't. of do those the our looking highest profits. and capital growth the steering that highest we

Operator

question Silver King. take David Instructions] [Operator next CL from with We'll our

David Silver

somewhat related improved margins operating think I'll and to so I year-over-year, but they're had the ask but questions first income to few and the revenues disproportionately. up question, be all going the smidgen my a idea were that

guess, still maybe them. I But in amongst Asia thing your highlight so you are is could businesses PCC about Asian First I'd say ask in that particular, and foundry to the it if to and improved fair like say, trending, mean, you is trends your probably those would case, activities, And this let's that I if then say are say, close through levels, fully sequentially is recovered year. mind? below being your how you earlier but in let's they've the to, they

Douglas Dietrich

answer on to sure of ups Or your question the want board? the just and it correctly. specifically kind of So make David, question it mix is I I is down. Asia around across just

David Silver

where disturbed, very programs your there growth wasn't But has balance China I and environment trend the or of last the I'm guess, Asia, are to, and somewhat China. of But about about then sorry, were you thinking trends But longer-term the in including I how ago? or a year been sequentially changed the moved, X I'm how I precise. just thinking outside let's have over India, you has years. guess, been back couple say, close of

Douglas Dietrich

and Brett specific it packaging market So market, today then this D.J. talk and would in to probably and our to China the to about market in in markets, up, give major the right? from Where is general, step different I the businesses foundry and X I'm in are, China. I'll is market. different think, their where paper in we our be going markets

we're the different a due that are them. through market where is may driving think both than it to as levels many We in of market. And that's market be. that the I we've pre-COVID businesses. And due ahead of or that's well in the that see there, those penetration And been of place somewhere in back where to but was in probably we

to a even though be may levels bit little or the back further, demand grow. to continued pre-COVID we've So levels

continue grow We to with our products.

packaging. grow We it continue into blended business. in to products been continuing We've to our grow

past the And normal to well. doing grown the years. over even we're if market its X rates So X hasn't at

the So start we with let are color give Maybe DJ. and where versus paper market. China me packaging some on and India and in

D. J. Monagle

is and Asia on we've of side as products. Look, been penetration growth the for Certainly. introduction paper saying, our story the new

on volumes, is overall quarter's ramping of growth new into the the product So in we've the what then growth you're good and piece I one immediate that next on seeing start the top a the On satellites, a as GCC. we up satellites that, growth of And we look results the been is at sharing income. in satellites packaging. this everyone this of on up China. quarter, with trajectory, those good one contributing Included our we're India. as quarter, in even just It's speak, a new good major did goes And sales, growth plans. in couple major offering, last

new part quarter satellite got early in China. top one that that, of one offering. XXXX, yet we've of that's just satellites, then the India those also new yield the into about talked coming of had on on the now. go online last So And next in We another coming we quarter, the fact as was

the So you're just that been is growth and new to seeing the growth more the we've and up of there's introduction products. to, that penetration from working all come about penetration

pretty a in Asia. we're good So in spot

Douglas Dietrich

foundry talk about to And you want the do market? Brett,

Brett Argirakis

China Sure, North makes up XX-XX the between Doug. of David, and look, historically, in of green bulk sand bonds about course, America. And have that. split Asia been Asia,

continues market business to continuous China improvement green bond our the quarter-on-quarter. has sand As shown recover,

a fact, We've to a bit X% year-on-year. room seen XXXX. do we're bit fourth more more does growth. peak maybe from hit go or growth it similar expect its have or with But the little probably X% to We X%. remain In quarter X% levels to

So we on definitely have some room, and now. we're working plan XXXX the

X. see So expect or improvement for to modest some next we also year

in a we're good potential, think I and So position, definitely China. we especially have growth in

David Silver

question Okay. is I maybe it. of a Doug, more this about appreciate Great. pricing.

offset situations. always the But as going say, I you about you to over of for has different products to environment? let's but value. cost in targets? inflationary want kind been incrementally maybe guess without X general important best or And Doug, areas. quote are So best But you we're in, pricing price what X prospects a would the your pricing incremental in for those say would you your pushing hitting valued tailwind right the current I'm products, here, mixed kind and now. say out for value And higher of on year environment past in and getting proposition for I'm is call or are a or some even inflation much X, portfolio in of costs what if then, And but special price prospects the environment, how XXXX getting slightly you mean, your cost I particular, that to to a company I'm guessing, thinking talk

Douglas Dietrich

deliver be that to the marketplace. we're David, table, off with of higher We've higher get there long the guess always price to think to in deserve guess products our and room on a designing always and spot. of margins. still the fair you out we've with go, is answer think I And my that But I that there appropriately always the you has I'll really been. over and with will back our we price value And They took developing had price say products I there the relations Yes, I some our increases. think I go gets say they and the customers, value. to looked and customers. good term that value share products that margins our

So X we pricing reason up just for like It products. inflation. the past catch were always gotten on in to pricing is our we've only years the looked

labor So through yes, there get into value-driven now price we place that. they And products that energy we'll inflation we think happen. to always that and based going we make through will get on pricing type and price. were costs that But normal elements we're a is back and like had that we're I to to that our the make where still the deliver. that sure absorbing capture value there's But pushing sure we're

not it's isn't for to lever to that's us that XX%. incremental necessary that I the get pricing us going think

that think I company of I've outlined that that that. a profile. there's balanced structural will elements kind kind has other help more Having of growth

be then in the are X,XXX mixed waste with push cycle looking find our remove that they stable So goes We've slower at kind to line track, of we're capacity product will higher Kaizen through. when and and markets more of operational model operating in Kaizen events our times for start business our our events, lots growth up, when a great in comes able XX,XXX to a as to ability, some down markets waste. revenue that stable this weak, our got manufacturing with held excellence our in company ways systems We've of provide got systems, growth almost working products productivity that year margin processes. to our always other of And costs. fixed squeeze ways hold and in of but on our products level to to plants. operating growth. and We and We're model consumer up a

provides but CapEx.Those an pricing, we X things. pricing to those leverage So other elements, to necessary those And fixed pricing But and pricing, need hold. be it's think And as down it's drive yes, combination I of just really going things. it's to I that going asset things way higher to a some element, get base driver to our expansion think costs good a utilization it's alone higher-margin high not only to it's going be on we don't some hold that incremental as are model margins. margins -- to hold incremental take get the that products or that don't really

well we're the kind think I on on company get is there just own. track its to structured of the way with

David Silver

separate. one, PCC, Okay. But that's course, heard focus that's opening typically GCC that I just last And unit. remarks what's XXXX? I'm outlook But in what that the performance continued then GCC a unit one project just in performance on but I in and for in record in maybe cite And today China for D.J. in the record the assuming for about not of the product that growth you your to related would

D. J. Monagle

are is we it's West our there complement So situated what operation now, applications. of and particular it's the that improvements well in was California with it's we specifically, between for yourself demand on Lucerne Valley, tile that going a David, in And seeing new like dual unit GCC Doug into balanced as non-paper California. serves sort the highlighting things bit so roofing, it that much time, the of this and into saw but which little products not Coast, into more right in startups, is flooring elements. glass those the is

at things into the trying elements for leverage the was customers the from Doug certainly implementing looking has improvements, that's one good put implementing that a also lot on relatively changing extraordinary low those really our cost highlight from part. They've we assets, which referring trends all staying for them those of leading So and debottleneck A they've like demand better edge to to been also like What on team of engagement of ahead which some a at our position. to OE. become were and sustainability that diesel biofuel helping just in employees step faster. been just and of serving on the ways just

strong very a record. So

going forward? say, it's place every look good that be quarter, telling I'm David. can't we're to they a that to place, to does tell and gotten a going record have you a new and proud. You pretty I it's be, just how

Douglas Dietrich

on we residential my and appreciate in that you that can I as That higher question. to one because through those I really productivity, beach And work and to has highlight push be is great facility take utilize And assets. asking of David, a a and results. example deliver been wanted I of make that in construction, put challenging like this. business it able throughput higher of sales to of team reason. doing great our a the ability levels market levels

And so that's them. to got from to just records why X that want say congratulations we've facility. I

David Silver

Yes. a I head. made and I that to stop did think facility. whole that, was tied that GCC just my did specific there. GCC a But me was not for I'll which construction, err, I thought scratch Anyway, as

Operator

I'd turn closing remarks. the this to back for call At Mr. Dietrich to any time, like

Douglas Dietrich

you I appreciate appreciate to in. I I listening questions. that. Thanks, Melinda. everyone appreciate you who Thank joined today. the

I be January. and a quarter, end talking back strong we'll to to fourth you, of forward Looking think,

Thank is. date the think you much. I very

Operator

you Thank today's your you. participation. This for thank conclude does We teleconference.

lines You may this time. your disconnect at

Minerals (MTX) 27 Oct 232023 Q3 Earnings call transcript