MTI(MTX) - 2024 Q4 - Annual Report

Financial Performance - Worldwide sales decreased 2% in 2024 to $2.119 billion compared to$ 2.170 billion in 2023[199] - Consolidated income from operations was $286.5 million in 2024, up from$ 171.8 million in the prior year, with a net income of $167.1 million compared to$ 84.1 million in 2023[199] - Income from operations in 2024 was $286.5 million, representing 13.5% of sales, compared to$ 171.8 million (7.9% of sales) in 2023[217] - Consolidated net income attributable to shareholders was $170.9 million in 2024, including a$ 31.7 million charge, compared to $88.3 million in 2023 with an$ 85.8 million charge[228] - Non-operating deductions in 2024 were $62.9 million, slightly down from$ 64.1 million in 2023, with net interest expense decreasing to $56.4 million from$ 59.2 million[219] Sales Performance - Net sales in the United States decreased 4.8% to $1.089 billion in 2024, representing 51.0% of consolidated net sales[209] - International sales increased 0.3% to$ 1.029 billion in 2024, representing 49.0% of consolidated net sales[209] - The Consumer & Specialties segment reported net sales of $1,140.2 million in 2024, a decrease of 1.7% from$ 1,160.2 million in 2023, while income from operations surged to $165.5 million from$ 41.6 million[231] - Household & Personal Care sales in the Consumer & Specialties segment increased by 2.4% to $530.0 million in 2024, driven by strong demand for pet litter products[231] - The Engineered Solutions segment's net sales decreased by 3.1% to$ 978.3 million in 2024, but income from operations increased to $174.0 million, representing 17.8% of sales[237] Cash Flow and Capital Expenditures - Cash flow from operations for 2024 was$ 236.4 million, with cash, cash equivalents, and short-term investments totaling $337.1 million as of December 31, 2024[202] - Cash provided from continuing operations in 2024 was$ 236.4 million, slightly up from $233.6 million in the prior year, primarily used for capital expenditures and debt repayment[244] - The Company anticipates capital expenditures for 2025 to be between$ 90 million and $100 million, primarily to improve operations and meet strategic growth objectives[253] Debt and Financing - The Company refinanced its senior secured revolving credit facility, increasing commitments to$ 400 million and extending maturities to 2029[200] - The Company entered into a Refinancing Facility Agreement, establishing a new senior secured revolving credit facility with commitments of $400 million and a senior secured term loan facility with commitments of$ 575 million[245] - As of December 31, 2024, the Company had $4.5 million in loans and$ 9.1 million in letters of credit outstanding under the Revolving Facility[247] - The Company has a financial covenant requiring a maximum Net Leverage Ratio of 4.00 to 1.00 for each four fiscal quarter period[250] - The Company assumed $1.9 million in long-term debt as part of the Concept Pet acquisition, with repayments of$ 0.3 million made during 2024[252] Tax and Regulatory Matters - Provision for taxes on income was $59.4 million in 2024, with an effective tax rate of 26.6%, up from 22.0% in 2023[221] - The Company began implementing the Pillar Two Global Minimum Tax rules in Q1 2024, assessing its effects across jurisdictions[227] Shareholder Returns - The Company repurchased 1,034,692 shares for$ 75 million at an average price of approximately $72.48 per share under a share repurchase program that is now complete[256] - The Company has authorized a new share repurchase program of up to$ 200 million, with $2.8 million spent on repurchasing 34,934 shares as of December 31, 2024[257] - The Company declared a regular quarterly dividend of$ 0.11 per share on January 22, 2025[258] Pension and Employee Benefits - The Company recognized pension expense of $1.9 million in 2024 compared to$ 5.7 million in 2023[276] - Total actuarial losses recognized in Accumulated other comprehensive loss for pension plans were $1.3 million at the end of 2024, down from$ 32.1 million in 2023[276] - The average rate of return on pension plan assets from inception through December 31, 2024, was approximately 9%[275] - The Company has approximately 55% of its pension assets in equity securities, 33% in fixed income securities, and 12% in other securities as of December 31, 2024[275] Asset Management - The Company recorded a $12.3 million net gain on the sale of assets in 2024, contributing to the increase in income from operations in the Engineered Solutions segment[238] - The Company uses discounted cash flow models or cost approach to estimate the fair value of property, plant, and equipment[269] Interest Rate and Credit Losses - A one percentage point change in interest rates would cost$ 4.3 million in incremental interest charges on an annual basis[290] - The Company recorded a provision for credit loss of $30 million in the second quarter of 2024[292] - The Company recorded a$ 30.0 million provision for credit losses in connection with the Debtor-in-Possession Credit Agreement[214] Interest Rate Swaps - The Company entered into a floating to fixed interest rate swap for a notional amount of $150 million in the second quarter of 2023[290] Qualitative Assessments - The Company performed a qualitative assessment of its reporting units and determined that it was not more likely than not that the fair value of any reporting unit was less than their carrying values[267]