MTX - Earnings call 4 2023 | Minerals Technologies Inc.

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Operator

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

Lydia Kopylova

Shirley. you, Thank and conference everyone, our quarter fourth 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 Following Erik's Doug to prepared we'll and questions. it remarks, up

our statements this cautionary As during may statements language the of about this within slide. laws. securities in made the a forward-looking statements of federal forward-looking earnings Please call on some meaning reminder, release the and constitute note contained the

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

to it Now over I'll Doug. Doug? turn

Douglas Dietrich

Good Lydia. today. Thanks, everyone, joining morning, for thanks and

you outline start quick for by me call. giving today's Let a

highlights. and you take main our I'll First, they you results through long-term initiatives. and I'll align drivers year through I the of strategic how fourth quarter do so, our walk with full And our as

of remarks. with made after take and MTI more for slides. then highlight quarter outlook record a review to press you We'll finish next our in an a questions As had continue for and new to year to give then an year. minutes that details few on I'm out coming share the at your a our a leave sure I'm update going to our XXXX. we I'll the impact also an innovation provide will close to outlook and going plenty excited take strong saw release, be do in and to time products on we'll to an you few so financials forward. Erik the

across performance Overall, report fourth records. great we set it started was happy few to quarter a fourth get record for quarter, portfolio. sales that and levels us, quarter. broad-based I'm with our another our We growth the generated Let's for with

excluding Our the coming in strategic the few markets. Sales markets up higher-growth growth with for geographies segments, our business. and remainder company Inc. were saw of end deconsolidation Minerals ongoing of X%, we for this the the our than our quarter, of, underlying both offset performance in X%, Barretts a from the consumer the up quarter positions better illustrating sales of more were the softness

quarter. Operating margins in last household expenses. product improved productivity segments Solutions, Margins this XX.X% growth another to expanded all over and in and Within basis both its the line product quarter, XXX technologies stable across personal tightly line improvement input captured segment, cost year. this our we expanded operations as managed trajectory high-temperature segment drove Consumer Engineered savings, the In and continues to a our Specialty care geographies. solid point

Our for quarter. at record And income, of another $XX is significantly level record of in which higher year. $X.XX, came operating sales and million last per share our these expanded earnings margins fourth than yielded

a from we initiating operations. X-year our demonstrate generation highlight $XX a the share to at $XX that Other cash is continue company's in cash time, million We delivering same doubling program. the and for profile, the announced strong repurchase quarter million dividend of

communicated major throughout and themes they with how realigning change core record today. us. eventful light markets full was a business on This it all I organizational year. to where for and for efficiencies, better to the Investor MTI and started to leading is the you'll of cash out levels outlined drove across potential in, each me similar how key to we're priority the One higher segments yield our an performance our areas. reflect We of an Throughout and achieve performance. XXXX we of to technologies in held faster the growth right year see progress generation, you so, realignment on year and targets. Day the and hidden Let the decision-making our May, potential. undertaken growth, the by a those year, performance. Back of X-year flow for made and balanced targets, year and move we summarize And our unlock we as company tighter expansion MTI's do margin track the collaboration to combine

steadily other were manufacturing water to more more support them, infrastructure environmental economic driven in growth despite safer start in as in Specialty a for in trends our experienced projects serve and the feed of markets nature edible cleanup expected. Sales deployment increased markets sales geographies, performed year. health year fuels. Growth oil pockets, some newest we to in geographies with by renewable demand which animal factors these products. fluctuations of these we efficient few processes, the cycles and infrastructure through. our as temporary growing Engineered animal consumer segment demand demand positions were expansion Solutions Consumer and see additives the driven for these an the than remediation and experienced of the cat wastewater demand. and higher-growth for driven and But a expanding strong have the products local portfolio ownership, natural and lower of primarily by offsetting play Sales renewable driven the our was for like drilling full sales. we'll macro segment products refractories, fuel globally. Due both serve the areas single-digit for markets growing double-digit growing this pet and Let's litter, with by environmental strongest softer Sales in in of record MTI and and technologies growth segments. high in from products. These and markets by filtration demand the We and positions the increase

performing a our XXX priority over call margins balanced given top a example how Our average improving should economic portfolio see long emphasized term. We factors operating in year, great It's was up points. long-term what our slightly between -- this and us, local area margins year. basis market number for we growth moving and per the with how down and focus X% increased line we average of year, that or by any

free deliver flow. the significantly, million we Used than improved double up cash for were to our another flows to customers, I is to the of input record dedicated record expanded and the values. continue in leveraged year balance sheet, million over to above strategy delivered team, XX.X% leverage return adherence cash target and shareholders. Drive synergies to We margin earlier productivity half noting capture deliver more from $XXX company. Full and $XXX an communicated the share cash and operating takes drive we to operating earlier, that a Earnings EBITDA EBITDA value million, XX% these last to were operations, record leverage X.Xx as up performance. year. Record and $XXX year $X.XX, engaged improvements. this year income through $XXX and sales our unwavering reorganization, in mentioned year operating Worth savings million, in capital per of strengthen this our X% cost margins year. from consistent averaged reducing for create for It our and, the and the of cash a our second strong the last net culture

on great a did year fronts. job team this Our all

tools they and MTI. very built to We have training have business continuous any improvement a with manufacturing thinking see, the employees We here an culture remove environment excellence and and analyze equipped strong at of waste of need or from operational process.

level. our Our Kaizen high essence suggestions employees and a engagement This of something over events the apart. In improvement at provide XXXX continuous culture an world high-performance transformational extraordinarily teams XX and that by our the problem-solving MTI summary, MTI. conduct for of sets around every day and was year is

build this another and year's one a record in foundation intend drivers XXXX. There supporting number we our every of Our in performance deliver on is growth. to long-term key are solid aspect, to

some always has One developed and influential of them MTI's products growth are that a part story. I technologies of out take few MTI our highlight DNA, significant part offer market new work tremendous and want at our large we've is opportunities to of been at happening the an a potential. innovation. to newest becoming us that of aimed that's point a of Innovation moment

are newest highest needs. Results efforts of at process closer innovation value with evident with chart products time refined year, for focused commercialization. the drove collaboration company. in our reaching level past record product products to the our our the For middle, on the this the We accelerate from from efforts a several meet and to ideation their of new the customers development our sales years, our we've shortening MTI, on to the XX% percentage developing

right, can of X On balanced innovation product our lines. distribution is all the pipeline you how the across see

we're expanding the line, arc & and Environmental Fluoro-Sorb higher-performing with every developing robotic highlighted development large potential these in stages for in came through. a Technologies, technologies owners product have litter consumer through leveraging the Care new We're the creating health products systems. Collectively, natural with me products products formulas over hardening challenges Let infrastructure that in to of feed real-time we and home Infrastructure litter Household development. In & cat improved all and several core are create help driven farm But hygiene, their the new our and training. that offer projects have improve Personal for billion control to product and $X developing around in aimed soil continue box customers odor development highlight animal and additives our And it these trends products applications today new idea we filtration the support evolving with representing sales. analytics. In steel are technologies for improve to better the water transforming latest for coatings that pipeline, line, developing removing and furnaces. valuable Additives, High-Temperature trends the refractory Minscan with this of fluid aligned units, we're makes developing technology XXX natural sustainable electric at new new association we're I've future the drilling over data geothermal process demand like our Not expertise critical we're way good provide marketplace. additives grid to demand growing brown today's software renewable solutions at the barrier in in our products for our and and forever fuels. Specialty at chemicals energy Scantrol to examples pipeline, process packaging units world. recycling application various targeted food white And growing mineral-based packaging. In system the

Now I'd Erik to of turn the details to like the financials. to Erik? over review it

Erik Aldag

begin results, of everyone. and financial provide Doug, Thanks, our for first by and I'll morning, quarter also outlook and the full fourth review summarizing I'll year followed a segment by our good quarter. our

perspective year ahead. Following call to additional the on my remarks, Doug back over for I'll turn the some

Now review let's our quarter first results.

contributed Technologies. Fourth $X.XX, excluding in quarter and High-Temperature portfolio, growth million grew XX.X% prices special quarter, items we year, another saying & and BMI, our for had sales. Personal performance free year-over-year, in across quarter. And underlying lines. $XX strong Sales prior by the by operating XX% cash in very income for if operating X X million, very in of and continued we of Household of company. product was deconsolidation to flow sales Earnings at quarter. up strong adjust $XXX a X% million that and year a grew margin begin me per the versus you selling fourth Let volume growth $XX and off benefited fourth X% was growth our represented of for the level was driven Care strong record capping Higher the from was share the

on margin want I rate points for performance that Before basis. of May, with XXX for I basis year, Investor move year XXXX full exit to against margin Day in operating last the a our set improvement highlight ourselves we target projected we to would XXXX. At our run XXXX we versus the

rate Given a from the the half year quarter, year experienced typical full good seasonality perspective indication margin. where we the a we run the on is second of fourth in of are

achieved productivity cost operating for basis XX.X% primarily well second recovery XXXX of the as half sales, target achieve through of us squarely full points conversion as at year was margin our improvements XXXX. price this above the this XXX in Our We improvement, in XX% track And to XXXX performance XXXX. our operating XXXX litter rate on margin variable targeted puts cat XX% run and in recent acquisitions. and cost margin

per billion year Now XXXX financial a above last let's income, excluding and performance items. solid earnings operating records share, sales, EBITDA at $X.X for in of X% Sales take full special our delivered We year. were a performance. with look

XX.X% of year XX.X% operating and income XXX and slide, demonstrating well sales. $XXX the points the at basis as million, Looking our side during see was as in both the EBITDA the mixed on increased million of sales. most end XX% growth market for portfolio bridge sales of right you margin to the our of of balance conditions. Operating in represented product segments to can lines, improved $XXX

share, can X% give offset bridge expense. year full $X.XX the Our of the more XXXX. To excluding little earnings see higher growth, headwind contributed compared special a was earnings than a our EPS in that bottom to left $X.XX, per increase $X.XX items, on from income a perspective, you interest which more performance

year Our primarily XX%, be our million or due level cash approximately for and of changes the X.X% was effective slight for for rate normal more sales. flow of XX%, to tax we to a company increase, for rate the laws. to in global $XXX tax the Free expect a year returned the XXXX,

up Specialties and segment beginning X% Specialties. with last review $XXX Consumer quarter Now year, in & up BMI. & the excluding versus million, sales let's our more X% Consumer were performance Fourth in segment detail,

growth Our sales remained XX% year-over-year. specialty our cat line high-margin our lower satellites operating over $XX.X in purification. Underlying as margin operating operating input strong for Household and our income price The costs above and to year product continued ex-BMI America. Fourth million, sales income year from offset Care and growth trajectory improvement in prior sales. and sales paper and household double-digit in were newest as in XX% a we last volume increasing including Personal in logistics of was several in increase volumes significant packaging that products spike litter fuel selling Asia driven renewable by Additives line animal on adjustments our the its was year, in was edible quarter prior care and inflationary the & Demand product X% favorable with in Specialty increases oil products energy line, compared health saw we absorbed in Europe. and product growth in as strong, personal well North

$X.X the side. sales on Turning Segment to stats the grew full right year X%. of billion

for Our growth cat continued on X% Household demand strong & line delivered Personal Care product litter.

the softness Asia for been and satellites sales Specialty packaging While in growth our market dedicated and paper to customers significantly products, ramping paper X% packaging satellite some XXXX were income up adjustments. Demand sales points and mixed the animal impacted destocking offset and Three million destocking were with higher. new rose volumes XX% and activity other end North new into contractual edible and in $XXX customer and to to helping high-margin China. Despite markets, operating XXXX America Europe, oil in purification. newest serving food specialty increased, Specialty underlying lower remodeling in pharma. Operating including pricing to XX.X%. margin construction our XX% XXX primarily new as and to and in saw growth of in by packaging and in Additives satellites paper segment driven growing such construction has in sales X% consumer fuel In residential products basis improved the for some in for we renewable Additives, health

we ahead demand cat Care specialty Additives, sales in and satellites. another from our improving Asia, for Paper performance driven the Personal additional expect and see driven in new Specialty to North demand expect and to improvement our by Looking strong for of Packaging by the ramp-up Household first volumes & America we litter products. In quarter,

slightly in income the sequentially. construction expected remain up to first operating be for the quarter activity. we Segment seasonally is for period However, slower

X% some in fourth million, were our North we product margin in strong Now softness to sales to versus increase operating High-Temperature applications year foundry market X% the XX.X%. by prior the to significant volume. Sales $XXX let's steel Fourth steady delivered over another XX% turn Solutions quarter construction. In continue to the the Technologies, and challenges, demand points in million. America. $XX.X Asia commercial in in Despite Engineered delivered was year basis operating & Environmental foundry income we Solutions performance. Operating growth And Infrastructure quarter segment the XXX for Engineered improved segment. lower, driven line of in see increased and prior an

sales Infrastructure, lining start for affected & solutions wastewater environmental waterproofing soft China. In in delivered conditions were the in while Environmental X% a were X% America, product growth. year, year The for following and steady X%. conditions improved demand the market the Demand our North steel segment and Asia XX% spot, construction lower market through High-Temperature full systems. Europe Technologies gradually persisted foundry conditions sales last in remediation a grew line bright slow demand in than and through as more For Sales compared to increasing remained sales year year.

We also growth income to XXXX an our XX Full $XXX by operating operating infrastructure points margin projects. in improved saw improved from demand basis XX%. sustainable geothermal double-digit and and in drilling uptick million year projects product in energy from driven X% sales, to

to first product we similar income expect the the to expect both to be operating across conditions we similar see and Turning quarter. to lines, mostly market quarter. fourth

balance our sheet free million of in quarter were the flow, million million. $XX year cash fourth expenditures delivered for We $XX bringing operations of $XX million highlights. with cash strong review free our let's $XXX cash and Now cash and from the to year. flow flow cash Capital flow full

inflationary Our of XXXX cash for the strong working flow as impact normal more our the subsided. company generation has levels free capital flow return the marks on to cash in

million of we As to million another XXXX, year solid ahead $XXX in flow look expect generation free to the range. we cash $XXX

EBITDA. debt, million million balance the returned down of year, and we pay year $XX million leverage liquidity million a the $XXX $XX The we dividends. repurchases total with X.Xx shareholders and very over of share our ended $XX and During to to ratio $X We strong. million used remains cash in through of flow sheet net

continued EPS higher for expect In by similar Additives, strong in care and In Solutions, in personal North first North packaging in Engineered improving we and sales & conditions summarize performance the in and quarter. for new quarter. Overall, Consumer see typical New Europe, similar we Environmental Technologies and expect outlook quarter. Specialty for And we quarter for company, of end fourth with demand other paper sequentially in conditions we the satellites Lunar which on due prior profitable to and continuing High-Temperature year, Asia in in $X.XX, approximately XX% $XX trend MTI, a from driven Year. markets. Overall, and experience similarly America at seasonal also Specialties, America. And & between the our household and up we demand fourth in from strong I'll the our similar conditions and Now for least lower Infrastructure, first of the represent the demand seasonality expect solid across around around XX% will last continuing $X.XX million, year to trajectory. the growth earnings growth our income operating volumes would

the I'll Doug XXXX. additional perspective back turn for over Now call to some on

Douglas Dietrich

Erik. Thanks,

our As priorities we new MTI markets, are move into into penetration strong XXXX, the generation. Further clear. business higher-growth products, model continuing expanding margins and strengthening flow by developing and innovative maintaining our cash

the we're positive generally markets. On as seeing end year, front, cases, in and, the more stable we across our trends into some sales head

markets edible to deliver like remains litter, and oil and and animal health double-digit pet of consumer-oriented single-digit high Our will renewable growth. strong fuel year another filtration

to for application commercial in India these satellites the second of XXXX in the year levels in which where North a construction early signed in as are in China. call, we've additional of last last will and is up Our year. seen X are see end likely X carbonate long-term market, could next. Other be item and grow project or packaging this stable late as though its contracts comes businesses Asia compared packaging and These the paper packaging our our and last volumes we year start we for improvement some will much Packaging year. satellite saw to Paper constructed with foundry we to to expected automotive, year. calcium One similar for to over and steel area in another additional Markets NewYield and construction show course the Personal the this America year last to Asia, ground year such the also stronger an businesses markets newest destocking and activity in highlight since and ramp-up continue remain residential this half recovery in haven't change markets Care of and rebound. One in

operating we're we mix, and in diligent and with margin and Erik improvement we're targeting sheet stronger the gives higher end in will product higher XX% by solid need As keep this flow. mentioned, continuous to resources operations. Sales control XXXX, on position. pricing, growth continue generate cash the cost margins our This to strong us a of to margin the a balance track achieve

joining be our stability, a applications us thank While thank to mineral at strong will capital continue for year, the flexibility The and positions a to culture a see what up to reserves shareholders. In financial sets year that the both for return MTI markets, formula I differentiated and value the like MTI. with our for opportunities today. same teams setting XXXX technologies great and MTI time, is growing M&A shareholders. I'd combination at providing pursue and truly expertise, summary, you strong global in apart and call of long-term drive to to for another

to Now, let's questions. go

Operator

[Operator Instructions] Daniel question Moore CJS Securities. with Our from coming is first

Dan Moore

the I outlook. kind line with the of Start appreciate top color.

fiscal puts a of shaping end do up the that and shy various How lot kind or obviously, maybe hit the of cause to takes growth longer-term up even visibility [indiscernible] see to come relative color a a X% that you growth enter gave You've but exceed year. do see target, biggest markets perspective around you top a you great X% perfect, you got line the from where longer-term we it? could isn't that, 'XX as little

Douglas Dietrich

Yes.

went the this didn't year year, XX% that underlying me kind X% and of let XX% Dan, so and grew of so excluding you And perspective how of give around business. company last little the me growth on Let BMI a or kind -- a backwards characterize bit.

that, strong the and I packaging, what some destocking that of which paper again a XX%, I continue XX% So of construction, tried is -- the we majority highlight saw -- markets. grow think, to some see of and grow this that to that we to destocking is signs move and back going and forward. year. And those seeing the to early of starts We're commercial rebound in is

rebounding. next commercial that right which everything commercial me later a is So could tells with improve are X% we kind what back that, on construction, leads looks booming. are, really year. That on average volumes of That construction, that up could see depending sideways So where when right? bit X% those go and from now refers to higher happens we going and things

that in growth think over highlighted side average local depending I average could it we on that. go up think why up or factors economic that's X% on minus back rate of that Little plus commercial could back exceed on X%. I reverting we're construction. to change But depending to factors that we local. that X% But time either

Dan Moore

for to To expect be do year HX pricing what helpful. say, both impact pricing extent on do growth? -- and Really expect you that what you to I I should the overall be full guess,

Douglas Dietrich

another going sure opportunities saw still pushing the the of where That's almost we we're but the great value getting in for of we to be that the year. years through probably value customers. to get deliver be the can that impact products past this over to pricing it's $XXX couple to make our price drive levels the it. million we're pricing, pipeline. to have pockets we're There's not for and stronger going positive say continuing at that I We still

Dan Moore

sure just we're margin make is on the year? maybe same is XX% expectation hairs, operating XXXX? page, for the run sort but helpful. splitting full Very that the exit of Or to rate for the that And

Erik Aldag

of that been talking indicated for good this Right We've Thanks since the more products that end mix talking prepared that achieving of all the pet the levers fixed Dan, run about. line feel we sight really the we've cost by the that including new its we really about pricing, have to that's care come from in XX%. to we we're I been about but now, continued that X It's margin remarks, Erik. question. that good XX%. Investor year, improvement of a it's rate launching. Day, is Yes, leverage, It's about. talked in the

they in if the go by markets Doug our feel XX% We rate weren't stay So I'd of full a of basis favor our last about year. where end And really about as the favor better the to good year. XX% say about, run that if was we are, market as in that on feel talking that year start well.

Dan Moore

going ask related. Really exit of look year you there I HX helpful. Or to of of would rate I'm more at we in be HX back. would take there If that at year XX.X%, run a cause least to the with last this for X building? is step anything

Douglas Dietrich

Yes.

I couldn't hear think the -- sorry, Erik question.

on right, to think that rate, I same I exiting we're you're run and Dan. think there's opportunities build that, on

similar, but level then -- as first the quarter, fourth a similar in Erik quarter, us. through started some hitting at really if I we for mentioned, going look quarters think probably as we're you strong the

and that were third second some I are second the we soft third personal company. And the some even the see markets, said, for construction strong typically The they in of third where paper care rebounding -- like and and of like markets last strongest are and the year. these typically them

to we the the So into in we some think going year. we're going strength the going in, middle margins of -- have real especially

Operator

Research with from Seaport is Partners. Our Harrison next question Mike coming

Michael Harrison

growth Care Personal seeing on to specific talk nice business. on and were over you the looked fourth pet different strength Household were I that Are some destocking I label. you color the the a and about like could you And versus a kind what benefiting the bit private Doug, in care, from then in if end that wondering shift maybe headwind guess toward maybe subside Congrats QX regions? you destocking of across to still to Or that more give quarter? share was the did the side, little there a Care in QX? any was appear bit on year. little Personal seeing the

Douglas Dietrich

Mike. Thanks, Yes.

there. color let's the question me to DJ Let and that segment, talk more about you give give

D. J. Monagle

the Thanks for question, Yes. Mike.

So let's pet care. care, first strong very dig volumes. of kind into Pet

We continue see that to trajectory.

a really had we sort earlier long-term imagined X% to growing be this we is team, of the those going was X% label. I for about things. both that how reliable go still is And their addition in see the we operational rising, year, rate. meet and bit shift full to all to excellence That Doug promotions ability growth a year the -- in segment outlook feel seeing label our have further, on little particular, We delivering on of go of a in ability and more culture that seen really America requests that said to to the and As to at and their time good and and just the highlighting about our Europe. stretch general that. The some improved North this was extremely with be private talking we're across volumes. private into he we and

us aggressive. But that vertical further So brands on particularly we helped integration. also our relationships the given a was as private the label out lot, have developing

go solutions. things, books. looking we of beauty was And really would got in more comfortable the also going. on looks some that order leverage is first are behind destocking. you area. Then quarter, and that strong we say the it's destocking as that, had care into we're about like see as we're and destocking pet There's books the pricing So consumer way specialty with side order the I particularly some happy the now We've still asked at health the us. that in the we

that product positive is outlook line. So very for

Michael Harrison

North sense of to since Paper ask of you And you, where have like XXXX. operating customer in that rates them to I business. would in PCC then a for maybe kind be on similar maybe question just Get America, particular, the those a DJ, maybe

rates still dealing destocking were and if curious you Just something far guess, in lower you maybe fourth and in operating quarter I early feel those were like February? then, how with trending and the are January thus

D. J. Monagle

Yes.

couple a perspectives of So on that.

at look starting our lagging climb is up. Europe Europe been have little down sluggish. North operating at affected look we by been have a if customers to We've rates. inventory in those fortunate in America and that So XX% levels, that, that bit still down. but the low decline, We is less Europe, come still XXs, in

we're Asia. North will not how rate we be of And year. it's but certainly volumes but than this hoping see course, that of that looks. And So some that the better projecting to That's for, back, year. better come then, we're starting at last are America

were Asia the dependent rates. on operating less

Asia a penetration go story, to that continues and favorably. very is

Michael Harrison

And right. All over on metal of then, maybe just casting business. the I guess, the side

a maybe of a talk Asia. if of curious kind just But can slower more You detail being in pace QX recovery maybe you the talked I'm about period seasonal about China. in little in

to last that time were to are starting hoping materialized other this I hasn't signs rate China think maybe everybody and some you recovery, we stimulus a more actions that government in going really in year way. was that of improvement market robust drive the see of some seeing around Are place that are there?

Douglas Dietrich

continued growth the Mike. casting metal quarter, -- Thanks, as me saying, it we're going over last of kind we after by trend. Brett that saw to still pass let But Yes. after I'm business, quarter and referring well. seeing Drakes to start to quarter or look, year,

really in year going looks us contracts for ramping metal new solid a right paper, both also casting. some just DJ us, but satellites XXXX, for like as in So on new into mentioned, now, up, it

me Let there. to give to Brett it you some color give over

Brett Argirakis

saw to that peak again, low get XX% But those point, is go volumes a the Dan, with last about same China, of in we was 'XX. but thanks in period continuous continued continuous. was a green can questions. recovery the to volume Doug bond versus the you prior but about as increased year. recovery but quarter slow still that Look, see market sand year, X% room for have we the improved The levels said, it fourth over China a plenty to -- XXXX. The

You mentioned some impact the stimulus government stimulus boost been programs. from the There them. to several economy, seeing are and we have programs

Investor During about blended presentation, products more going we into the some the the these so -- -- markets. Day talked into of the mature

in We other have We're mature moving markets. the markets. into it them

initiative. that continue we So

XXXX with similar growth year. around see we all, about of in this X% X% all So to

Michael Harrison

casting And the that specifically business comment overall? for is a on sorry, metal or China

Brett Argirakis

That's No, specific. China no.

Michael Harrison

Got it.

me last then maybe for more And X question for Okay. is Erik.

your fixed is exposed year at versus your just Just of us QX and full remind expense curious how for and interest to thoughts debt rate? rate both much variable some for the maybe on

Erik Aldag

Sure, Thanks. Mike.

right debt of is Average our around is rate XX% So now interest roughly X.XX%. variable. right now

are is and rate X%. notes fixed is Those the the floating the X.X%. at around So

and down, benefit interest of the piece debt. some see we'll if So floating when rates come that on

expense, term shorter think sequentially I QX quarter, of pay about fourth down just to we QX probably see to QX. $XXX,XXX to were in able QX to since lower some debt going interest the

hopefully, that helps. So

Operator

Silver David from coming is CL question with next King. Our

David Silver

Yes.

forth bit. of have here, going So go and I'm I of demonstrate lack a organization I'll my probably and but back a do to number questions,

level, fourth First and know had would looking I you from general new of that the pricing volume trends. apologize quarter, plus was how place your you -- price mean right? number there introductions. How at slides. I a I have don't if think it just the question the volume in highlighted don't initiatives I the know in I would you look X%, And of you breakdown ex-BMI, price? you How through at would I year. helpful. perspective, were breakdown? X% was but at saw on product know be I if But I much company-wide much it in be missed increase? it, any kind

Erik Aldag

Yes. Dave. Thanks,

less became year-over-year move XXXX, we through as of So a impact. pricing

we So the quarter, to as the in got terms of single in is change. revenue low fourth year-over-year pricing digits

that say, pockets it case much mix as Household XXXX be be talking staying Doug few a in forward. that's going strong, markets they in our volume than going about. has So going is volume just see XXXX. growth of improvement. And driven from good were would the in and Personal lot & less X% been price that the to has Care where growth, been I'll of years. coming say is I to and Dave, X recovering last We a from

So the going driven. much expect more to growth forward, be we volume

David Silver

me would would a on I of with months But basis. Erik, effect XX bit lagging ago, that follow you kind a initiatives guess, had little your up. -- they And take indicated it just pricing let

goods mix in of of So you've all least for balance? what Or what's cost your I In then but just covering improvements a number expectations right, that baked givebacks? fully your your achieved for wanted other you up, than to price outlook, And it's offset prices clarify, your next view, that but for customers' from across is if for positioning, are is into your the maybe words, fourth request the of at expectations price kind quarter, your could, would areas, view? you're from you of say costs? And the XXXX? nature has year the some the slightly softer. better or labor cost What's price cost a regarding maintaining

Erik Aldag

Yes. Thanks, Dave.

got any would a in I'd But really up. our shape. I perspective, we're still pricing pricing have I make years. of to pockets would closely a input overall sure in terms our costs. historically position we're to that providing quickly in caught good in We commercial capturing input So We've X and an than to say we've from an chain better with been more right we that outlook team. a standpoint, cost than we're the changes value much customers. have say working power we much now facing the we're some today more go, supply reacting From have of inflationary largely the pricing say over last stable to inflationary

to any we're feel point. this terms pricing anticipating overall, we position changes But mitigate that able a of about So in at good being good in we're not power.

Douglas Dietrich

of to I are, DJ and the out products the how year on, where is prior. mix this and pricing new give can to Yes, feel David, versus again kind a what's Brett going over products, our sort playing maybe you

I DJ, want to with So start you.

D. J. Monagle

Certainly.

our David, contracts. well the covered segment, So at that's we've course, as looking with of got of part pricing I'm

and Specialty power and on if to strong. We've able broader been that supplier pretty that's side and the reliable have recover the requests our packaging the of look stuff and be pricing on to and Additives just is orders strong paper out ability So ability keeps that And price. at agreements. other I in group, been very folks on our our us when running hold execute to

significance On the consumer earlier, this but higher is with the on are of new products pull the pet and is that of all for margins remains products strong, new specialty care the side, better about a into Doug side us. that value, levels the good of And which products. translating very and for pointed providing underlying had still these is they

year. versus not in So the our those us add we've expand same being But able Doug price to all probably to inflation. to as things further previous degree of upon up said, that seen the

Douglas Dietrich

you? about how Brett,

Brett Argirakis

Yes.

most do that they're our pointed less. The or costs, course, solutions, works this formulation but there But that alternative Engineered with we'll whether of faster Doug provide So applies additional we lower continue may are our appears to and continue steel also really in and stable more only look price pricing, but the product customers product or David, to that. efficiently the them, higher to be close pockets, them that using so technology out business different group segment, cost offset not now, prices. earlier, Solutions to for the for in be cases, a as require

of that of require course, products that some we price. labor labor, certain instance, higher For necessary. And to parts continues rise. We're formulation have adjusting where

that. we closely but but that their requirements. customers assure with our doing to very again, require, what We're we're we're -- also So offsetting working getting

Douglas Dietrich

that good it the marketplace kind year, summarize us this a we inflationary you all me year, see in when an impact ahead of strong be, in the give last basis that to sure in of over plays just David, because saying Erik year. and was comparison you stronger were year pricing And for we through growth, XXXX. of out for that may may a still we less in There's at and What terms more for have pricing, pretty it. On we strong the volume to how putting a huge opportunities cycle. pricing least we're increases volume make be let hold than on of volume power

to through So revenue to lead margin. this going going is more volume-driven growth. But some to leverage that's that our be pricing still gross year a lot

volume fixed through gross line. margin covering translate those income into and to operating because and plants, costs down So more that's that expansion going

fixed hold expenses, You know and stable going to flat this us, year. we're pretty corporate our that's expenses with

that expansion. margin that that's on on in led pretty income, we helps. we're come it's earlier or where sure to that Hopefully, Erik bullish exceed those you why going And we operating that's why hit okay? really for said, off So targets making

David Silver

and if X business, don't That's more, to kind in separate of great. And refractories mind. you traditional ask high I'm Well, apologize want first actually, questions X on I'll advance. I ask your going activities. But to temperature, do Brett

did show growth year-over-year. good You XQ

signed several new should in stop that play incremental the group, agreements contracts at that the that North have a And or have you What those least in effect the American new just I outlook X year. start expect is were one. number the would out go believe of went back. I have supposed to And meaningful into cited years? XX over XX, over we that. steel. with next signed in XXXX? for months, to You I'll I'll like last past past? regard booked I supply you for mean, with what that you

Brett Argirakis

closely a job, our good Look, our our combination and equipment and that. selling solving has very Yes. this application work technology. problems by out, as No environment happy creating answer business customers. David. materials, problem, much working of our pointed I'm In laser refractory a to safer done a really using Doug with again, value,

run $XX wire million, 'XX contracts million about And is for XXXX. The is the $XX In We about business in duration also far contracts in product and steel will about we've than $XXX $XX and about refractory annual 'XX. XX in which as 'XX. place. agreements and -- currently are equipment. generate I grow these have our higher able forward, include, through been 'XX this Dave, $XX and in about as said, million Net as the the X metallurgical we wire standpoint looking for operation. from value in addition, business to years million go, rate cleaner million a But was

steelmaker giving his people be the So this to is a the great protect his efficient, needs protect market and he and opportunity, changing what to more safer furnaces.

we're into So expanding world. forward of regions other the to looking this

David Silver

has Okay. to in queue. progress Great. then of guess I seasonal And your PFAS. In some for environmental issues I'll for was things an testing account Brett, impact maybe just reading for probably getting made I commercialization, there's trials other get municipal? back and in a beta hoping Is the it past penetration is date. presented in it in groundwater? prevalent? or the from No, moving in to point it full greatest update the In on I particular, words, I particular, what with of was other Is it think there you water? on the that's comment one extremely other promise And the perspective, Where soil has helpful. Is then remediation? where just on been was to to But and and commercialization. last But in And decline. give kind and pace the guess I you could drinking us uptake the PFAS year-over-year this activities. most

Brett Argirakis

sure. Yes,

update bit you propose this beyond, that proposal. the In the date, a a regulations. no on drinking course. of of of year, does PFAS regulating continue finalization regulations, but been EPA give they To has March was did water year me standards, the PFAS the and of last there but an plan national little Let to

that it to putting out. making seems that's that rule but expect year, stone, this is March in that's target EPA the We not be of

Let you me update on give Fluoro-Sorb. an

course, and of going you're that X level interest. Fluoro-Sorb that's participating implementations of has water, now, to then, sometime commence are treatment, and slow to we and think space, And water level leachate expect full-scale media, we on. in the year, the accept hopefully where in actively implementations currently half. is X is activity new this space of we And have lot technology. a first again, more full-scale Right But a where high the that I continues going water course, remediation, piloting increasing verticals. institute drinking an inquiries drinking across those of because verticals X requests to for groundwater. The generate landfill really are of

in We also drinking water Belgium. U.K., pilot and have that a initiated soil programs stabilization and we for Germany couple Europe, of

Fluoro-Sorb. PFAS. we're And leachate also world to remediation to the using in control actively addition, the largest with we on continue of entity the segment landfill and pursue some companies treatment working In

expected in have in to Defense XXXX. sites States. Department recently And we are generate opportunities fact, in So sales been United of the specified favorable these X into

remains Fluoro-Sorb 'XX. this through continue to fully overall, we business high. and So activity expect our expand to

bag. now, is but interesting. it's slowest, water a right most Drinking So is mixed the probably it generating also the

Operator

Our is & May Sidoti next Kyle with from coming question Company.

Kyle May

quick a for Just one me.

below is that the you ratio think leverage the your about or Xx. change way program? approach that buyback that Does Now

Douglas Dietrich

No, it doesn't change it right now.

We now, to we have that intend program. right complete -- fully

And to cash allocation good debt think make to shareholders, I of like -- shape. we'll I typical XX% our balance of $XX doubling sheet XX% be with at to that's another sheet flow, also share reserves. shareholders back the our to is about we're look The to is through of up return to of XXXX. think going probably kind and balance $XX keeping our million repurchase to this free in dividend, once some the building year allocation leverage we balance sure program our our the cash probably on continue million in ratio. This

if of if As opportunity could we one XXXX. conditions M&A back that the comes flex Erik to have, flex finishing on we money the to and in that's repurchase. If our have we year and to that if said, million. We probably If that opportunistic around. warrant. and the like we right them later course share always But about now, increase can that we're we change not, in that XX% That improve see -- $XXX opportunities hold some market for up. may

Kyle May

I Got us XXXX? correct I could over with that about potentially I'm there of assume come that with billion $X maybe I on curious give wrong, those you products me products this a development much long-term said growth in touched And of pipeline in great. it. contribute much just believe if you also, were But could year? how That's product target. curious to any appreciate color was product that's potential could revenue. new maybe you how and then XXX And if revenue then I it. pipeline the through in

Douglas Dietrich

Yes.

freshness you XX% of so an gave of is going that's percentage right? be So to how much indicator, gives And been It's probably the new generated XX% between you, from products X has idea our think kind revenue We kind that of the past the the number generated. I that's -- over and years. of like a XX%. sales

I out think XX% is there. overall benchmark

we're generating back kind the something -- of every products, will -- falls to and and be something how years, but in. from freshness off of products the between we're replace ones So pace XX% these sales still XX% if else count we that they commercializing the comes X

probably we're know, are I of ones, coming XX projects. how things new of we large call many about some probably There's So are that, out. Probably gives that commercializing. of but those don't XX% kind are XX, really some products smaller There replacement. year, an than you every that idea higher

So are or versions selling there something higher-margin before. been of we've upgrades

or them all the other of of of them is produced ones they're the -- -- them. We're us growth. sustainability they're increasing lower the way XX% and them, a the of and say have them I recyclability, by they're either the and I -- growth of to would consumption of or about energy consumed some And replacement, half element talking at are growth by whether and customers. used targeted our for guess, how XX% them

you feel that gives so a for And them.

some sales that's $X that said, there year big last. I expect everything and in going ones is rate not it are And probably through. but commercialization potential. make level a of similar to is going commercialized there, I Technologies. to this earlier, these are opportunities We that billion mentioned portfolio, High-Temperature the of big consumer big in in opportunities in are as environmental some Brett new big big recycling, that some ones at space. And of and targeted opportunities space, we've mentioned opportunities, big also, in into the technologies the

So hopefully there. color way giving long-winded some what's -- you a on of in

Operator

coming Securities. is question next CJS Daniel with Our from Moore

Dan Moore

Part count the Erik, what share the Doug, Maybe of And for just might covered. size And if about at? was looking mentioned M&A. anything, just bit XX. as pipeline maybe just my you like? what about quick prospects deals December little follow-up type you be looks housekeeping, of talk a But of potential

Erik Aldag

so to make press a but check going give on number, this. you me release, sure it's you I'm the Dan, in Yes,

right count around the it's year, the end share at there. XX.X I'll but get of the you think I the number

Douglas Dietrich

was will count. so the going the But while for the be -- and answer we'll they sure I make to share correct Yes, that's share for the case. M&A you there's scramble in count,

them by our those for starting then in financials. variable capacity, integrating. And through mean So completed X pet that these care M&A, getting X us We've I terms we been is And that. reduce safety time truly noticed. modernization. And focus in downtime, culture, acquisitions past And opportunities upgrading and of far were there's what on you're the quiet terms As acquisitions used the the speed in X years, see integrating facilities the we costs, about years. right? the acquisitions them to into bringing couple them, OE, and is up look, to really truly done in as as benefits what really X we've seeing to of there's it's that of looking that getting years. We've to over And I a productivities, space. company think we're the expand you're you've think thing our and call into of -- -- probably

MTI operating from. margin that's the into true If the you come That's system really the operating practices in expansion Consumer -- that's Specialties, MTI and these. at the where putting look that & culture ,

businesses So highlighted, the teams -- and on front. in a good a done this job We're with did tremendous of year we've they terms that where this how those. DJ spot those job in a great taken year

memory So to muscle in great and able turn company we've be them this to into got in a pull value. acquisitions

some year, of could there this think the kind opportunities as market. be I

some and able We're something. a going to lull, think a been to be -- the great sheet of I I couple that. think be about come got years to could execute that shape balance bit cautious of on We've there's a in around. of

You us and we're do the know look at things, with us, our it, what to diligent going provides about it we're opportunity how to going for shareholders. be we

into year. and think this that So there some sheet, do could it way we'll come we the opportunities balance go our be but cautiously,

Operator

is question David Silver with coming And our next from CL King.

David Silver

million the to did thereabouts your I program efforts. Day $XX announced during or cost ask reduction you was that want about with Investor the

for do million think reflected full the general, in results? quarter maybe feel was of of cadence the $XX your was then you how the any Just in benefit? if And capturing there kind much fourth for remainder

Erik Aldag

Yes. Sure, Dave.

way XX% about that of we're So through program. the

finished this of year. be half in we'll So the first

we've to got $X around more So for around help XXXX. million basis this points go by XX which year, should margins

David Silver

the for business. DJ, Two be, it. PCC next I the question it's but And parts about to Great. guess, Okay. would

an wondering project new unfair satellites us PCC then in or your ask secondly, but could This was I First, I give view maybe I'll question. in love children you all if equally, of were if I'm China that business book the India. you about a of that book to currently? And you opportunity you is and working your sure funnel with your the thinking stipulate. you're set business,

have a of new You in number healthy areas. both relatively projects

other risks. bit where a growth? -- in of of plans of the -- to the it words, little of environment high-growth occur? you bit the opportunities. countries, necessarily very your types is? business be which where might think a X shortfall it in there you they're Regarding those business whatever not the may and or either in do environment be a both more sure then best I'm factors other In might see growth what where kind consider relevant. I little source upside of if other But mean, And you was navigate difficult maybe might slowdown do a being anticipated

D. J. Monagle

So answer I'm those. going to try and David,

us standard product the about NewYield into that new crystal space. And part XX,XXX PCC just what the let's tons baseline. roughly then Erik and we plants of is the mixture a going Let early, of not on X That PCCs. products. is GCC, too me -- type -- X of mentioned China tons I'll here. just on X packaging but on, was And on here, towards the had engineered And came the in year. And be that's coming which of our end XXX,XXX get PCC had came script of those and those get the Asia. and to established set of something to just for part new call

that specialty this then be that process is who combination India of of on of Asia, of tons packaging NewYield in these a a see are we -- in -- those Doug you'll XX,XXX printing also in PCCs, is coming closing the the writing projects benefit soon but year it, X just got call already picked building is have So other you'll full remark tons GCC. What of it this XXX,XXX in towards say kind I'd We of see of in had the GCC tons and again, PCC. announcing the bring it's end PCC of as PCC, we'll are. Asia the also of XXX,XXX is traditional of China. X application. And projects but is tons one XXX,XXX that traditional year other on packaging and But and we what and up and customers standard we've papers are mentioned a grade. grade, those

tons So the and GCC. the call tons engineered that's it of crystals another, XXX,XXX of XX,XXX

packaging got we've interesting, getting that to look world. new what I and the all especially related broader is growth at it's our of interest as that, in that's and the We're on coming a pursuit pocket. And pipeline, So products. the around lot

these It penetration America different our it course, hard, offered we've before, North than And us Europe. products but packaging curious of as is would -- shows there's certainly offering something in up I than in something what So interest Latin more America. say folks. Asia shows into are to new well. And it is pulling shows of in up up and those

that So lots coming on. of lot is in A pocket. the

right. helps. You all in is as I at bit love on. results coming you're more XXXX, what developing, of a to already coming 'XX. is show a part -- we're started is has getting And say that because in new I what packaging, would good babies. But these pursuit a is Asia, the products, of of that it's because the I look little know going XXXX seeing if more pull broader our We have this where Asia else the on. of but up not just global still growth,

Operator

further time. appears this it And are there questions no at

back call I So remarks. to Mr. any turn for Dietrich closing the to would like

Douglas Dietrich

it. on months. talk to I joining do Thanks, for bit a X you Thanks. for call longer. the again We'll staying appreciate in today, everyone,

Operator

call. concludes Thank your This participation. for today's you

You disconnect. may now

Minerals (MTX) 2 Feb 242023 Q4 Earnings call transcript