- MORE - |
Sensient Technologies Corporation
Earnings Release - Quarter Ended September 30, 2021
October 15, 2021
|
Page 2
|
Reported
| ||||||||
Revenue |
Quarter
|
Year-to-Date
| ||||||
Flavors & Extracts
|
-0.7
|
%
|
1.6
|
%
| ||||
Color
|
19.6
|
%
|
7.1
|
%
| ||||
Asia Pacific
|
8.8
|
%
|
11.8
|
%
| ||||
Total Revenue
|
6.4
|
%
|
4.3
|
%
|
Adjusted
Local Currency (1) | ||||||||
Revenue |
Quarter
|
Year-to-Date
| ||||||
Flavors & Extracts
|
11.6
|
%
|
9.9
|
%
| ||||
Color
|
18.1
|
%
|
7.3
|
%
| ||||
Asia Pacific
|
9.5
|
%
|
8.4
|
%
| ||||
Total Revenue
|
13.0
|
%
|
8.6
|
%
| ||||
(1) Adjusted local currency percentage changes are described in more detail in the "Reconciliation of Non-GAAP Amounts" at the end of this release.
|
- MORE - |
Sensient Technologies Corporation
Earnings Release - Quarter Ended September 30, 2021
October 15, 2021
|
Page 3
|
- MORE - |
Sensient Technologies Corporation
Earnings Release - Quarter Ended September 30, 2021
October 15, 2021
|
Page 4
|
(2) |
See "Reconciliation of Non-GAAP Amounts" at the end of this release for more information.
|
- MORE - |
Sensient Technologies Corporation
Earnings Release - Quarter Ended September 30, 2021
October 15, 2021
|
Page 5
|
- MORE - |
Sensient Technologies Corporation
Earnings Release - Quarter Ended September 30, 2021
October 15, 2021
|
Page 6
|
- MORE - |
Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
|
Page 7
|
Consolidated Statements of Earnings
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
| ||||||||||||||||||||||
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
| |||||||||||||||||||
Revenue
|
$
|
344,287
|
$
|
323,566
|
6.4
|
%
|
$
|
1,039,816
|
$
|
997,333
|
4.3
|
%
| ||||||||||||
Cost of products sold
|
229,216
|
217,920
|
5.2
|
%
|
697,538
|
677,580
|
2.9
|
%
| ||||||||||||||||
Selling and administrative expenses
|
68,113
|
64,491
|
5.6
|
%
|
212,670
|
201,912
|
5.3
|
%
| ||||||||||||||||
Operating income
|
46,958
|
41,155
|
14.1
|
%
|
129,608
|
117,841
|
10.0
|
%
| ||||||||||||||||
Interest expense
|
3,037
|
3,497
|
9,792
|
11,412
| ||||||||||||||||||||
Earnings before income taxes
|
43,921
|
37,658
|
119,816
|
106,429
| ||||||||||||||||||||
Income taxes
|
10,009
|
4,748
|
28,300
|
22,126
| ||||||||||||||||||||
Net earnings
|
$
|
33,912
|
$
|
32,910
|
3.0
|
%
|
$
|
91,516
|
$
|
84,303
|
8.6
|
%
| ||||||||||||
Earnings per share of common stock:
| ||||||||||||||||||||||||
Basic
|
$
|
0.81
|
$
|
0.78
|
$
|
2.17
|
$
|
1.99
| ||||||||||||||||
Diluted
|
$
|
0.80
|
$
|
0.78
|
$
|
2.16
|
$
|
1.99
| ||||||||||||||||
Average common shares outstanding:
| ||||||||||||||||||||||||
Basic
|
42,024
|
42,307
|
42,140
|
42,299
| ||||||||||||||||||||
Diluted
|
42,206
|
42,349
|
42,287
|
42,326
|
Results by Segment
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
| ||||||||||||||||||||||
Revenue |
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
| ||||||||||||||||||
Flavors & Extracts
|
$
|
181,667
|
$
|
182,866
|
(0.7
|
%)
|
$
|
561,979
|
$
|
552,975
|
1.6
|
%
| ||||||||||||
Color
|
139,239
|
116,414
|
19.6
|
%
|
408,166
|
381,205
|
7.1
|
%
| ||||||||||||||||
Asia Pacific
|
33,442
|
30,740
|
8.8
|
%
|
99,599
|
89,062
|
11.8
|
%
| ||||||||||||||||
Intersegment elimination
|
(10,061
|
)
|
(6,454
|
)
|
(29,928
|
)
|
(25,909
|
)
| ||||||||||||||||
Consolidated
|
$
|
344,287
|
$
|
323,566
|
6.4
|
%
|
$
|
1,039,816
|
$
|
997,333
|
4.3
|
%
| ||||||||||||
Operating Income | ||||||||||||||||||||||||
Flavors & Extracts
|
$
|
25,164
|
$
|
23,844
|
5.5
|
%
|
$
|
76,718
|
$
|
67,467
|
13.7
|
%
| ||||||||||||
Color
|
27,253
|
23,559
|
15.7
|
%
|
79,462
|
75,486
|
5.3
|
%
| ||||||||||||||||
Asia Pacific
|
6,601
|
6,123
|
7.8
|
%
|
19,146
|
16,031
|
19.4
|
%
| ||||||||||||||||
Corporate & Other
|
(12,060
|
)
|
(12,371
|
)
|
(45,718
|
)
|
(41,143
|
)
| ||||||||||||||||
Consolidated
|
$
|
46,958
|
$
|
41,155
|
14.1
|
%
|
$
|
129,608
|
$
|
117,841
|
10.0
|
%
|
- MORE - |
Sensient Technologies Corporation
(In thousands)
(Unaudited)
|
Page 8 |
Consolidated Condensed Balance Sheets
|
September 30,
2021
|
December 31,
2020
| ||||||
Cash and cash equivalents
|
$
|
32,939
|
$
|
24,770
| ||||
Trade accounts receivable
|
263,710
|
234,132
| ||||||
Inventories
|
392,231
|
381,346
| ||||||
Prepaid expenses and other current assets
|
50,081
|
48,578
| ||||||
Assets held for sale
|
-
|
52,760
| ||||||
Total Current Assets
|
738,961
|
741,586
| ||||||
Goodwill & intangible assets (net)
|
437,729
|
434,220
| ||||||
Property, plant, and equipment (net)
|
437,789
|
445,493
| ||||||
Other assets
|
113,937
|
119,561
| ||||||
Total Assets
|
$
|
1,728,416
|
$
|
1,740,860
| ||||
Trade accounts payable
|
$
|
123,894
|
$
|
107,324
| ||||
Short-term borrowings
|
10,483
|
9,247
| ||||||
Other current liabilities
|
89,988
|
82,045
| ||||||
Liabilities held for sale
|
-
|
17,339
| ||||||
Total Current Liabilities
|
224,365
|
215,955
| ||||||
Long-term debt
|
490,901
|
518,004
| ||||||
Accrued employee and retiree benefits
|
30,258
|
28,941
| ||||||
Other liabilities
|
43,500
|
43,624
| ||||||
Shareholders' Equity
|
939,392
|
934,336
| ||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,728,416
|
$
|
1,740,860
|
- MORE - |
Sensient Technologies Corporation
(In thousands, except per share amounts)
(Unaudited)
|
Page 9 |
2021
|
2020
| |||||||
Cash flows from operating activities:
| ||||||||
Net earnings
|
$
|
91,516
|
$
|
84,303
| ||||
Adjustments to arrive at net cash provided by operating activities:
| ||||||||
Depreciation and amortization
|
38,828
|
36,831
| ||||||
Share-based compensation expense
|
6,431
|
4,017
| ||||||
Net loss (gain) on assets
|
203
|
(254
|
)
| |||||
Loss on divestitures and other charges
|
13,774
|
5,821
| ||||||
Deferred income taxes
|
3,793
|
(9,001
|
)
| |||||
Changes in operating assets and liabilities:
| ||||||||
Trade accounts receivable
|
(35,290
|
)
|
(7,962
|
)
| ||||
Inventories
|
(15,898
|
)
|
17,433
| |||||
Prepaid expenses and other assets
|
(15,016
|
)
|
(4,726
|
)
| ||||
Trade accounts payable and other accrued expenses
|
24,007
|
9,018
| ||||||
Accrued salaries, wages, and withholdings
|
1,763
|
7,410
| ||||||
Income taxes
|
(1,155
|
)
|
(3,899
|
)
| ||||
Other liabilities
|
3,192
|
3,936
| ||||||
Net cash provided by operating activities
|
116,148
|
142,927
| ||||||
Cash flows from investing activities:
| ||||||||
Acquisition of property, plant, and equipment
|
(37,608
|
)
|
(34,009
|
)
| ||||
Proceeds from sale of assets
|
201
|
1,022
| ||||||
Proceeds from divestiture of businesses
|
36,790
|
12,228
| ||||||
Acquisition of new business
|
(13,875
|
)
|
-
| |||||
Other investing activities
|
1,348
|
4,955
| ||||||
Net cash used in investing activities
|
(13,144
|
)
|
(15,804
|
)
| ||||
Cash flows from financing activities:
| ||||||||
Proceeds from additional borrowings
|
55,589
|
33,164
| ||||||
Debt payments
|
(67,534
|
)
|
(101,061
|
)
| ||||
Purchase of treasury stock
|
(31,467
|
)
|
-
| |||||
Dividends paid
|
(49,468
|
)
|
(49,537
|
)
| ||||
Other financing activities
|
(582
|
)
|
(415
|
)
| ||||
Net cash used in financing activities
|
(93,462
|
)
|
(117,849
|
)
| ||||
Effect of exchange rate changes on cash and cash equivalents
|
(1,373
|
)
|
(3,527
|
)
| ||||
Net increase in cash and cash equivalents
|
8,169
|
5,747
| ||||||
Cash and cash equivalents at beginning of period
|
24,770
|
21,153
| ||||||
Cash and cash equivalents at end of period
|
$
|
32,939
|
$
|
26,900
|
Supplemental Information
| ||||||||
Nine Months Ended September 30,
|
2021
|
2020
| ||||||
Dividends paid per share
|
$
|
1.17
|
$
|
1.17
|
- MORE - |
Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
|
Page 10 |
Three Months Ended September 30,
|
Nine Months Ended September 30,
| |||||||||||||||||||||||
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
| |||||||||||||||||||
Revenue (GAAP)
|
$
|
344,287
|
$
|
323,566
|
6.4
|
%
|
$
|
1,039,816
|
$
|
997,333
|
4.3
|
%
| ||||||||||||
Revenue of the divested product lines
|
(1,622
|
)
|
(23,588
|
)
|
(29,399
|
)
|
(88,390
|
)
| ||||||||||||||||
Adjusted revenue
|
$
|
342,665
|
$
|
299,978
|
14.2
|
%
|
$
|
1,010,417
|
$
|
908,943
|
11.2
|
%
| ||||||||||||
Operating income (GAAP)
|
$
|
46,958
|
$
|
41,155
|
14.1
|
%
|
$
|
129,608
|
$
|
117,841
|
10.0
|
%
| ||||||||||||
Divestiture & other related costs (income) - Cost of products sold
|
-
|
(148
|
)
|
28
|
1,791
| |||||||||||||||||||
Divestiture & other related costs - Selling and administrative expenses
|
241
|
312
|
13,473
|
8,689
| ||||||||||||||||||||
Operating loss (income) of the divested product lines
|
70
|
(2,449
|
)
|
(2,398
|
)
|
(4,165
|
)
| |||||||||||||||||
Operational improvement plan - Cost of products sold
|
-
|
35
|
-
|
35
| ||||||||||||||||||||
Operational improvement plan - Selling and administrative expenses (income)
|
483
|
2,606
|
(2,010
|
)
|
2,606
| |||||||||||||||||||
Adjusted operating income
|
$
|
47,752
|
$
|
41,511
|
15.0
|
%
|
$
|
138,701
|
$
|
126,797
|
9.4
|
%
| ||||||||||||
Net earnings (GAAP)
|
$
|
33,912
|
$
|
32,910
|
3.0
|
%
|
$
|
91,516
|
$
|
84,303
|
8.6
|
%
| ||||||||||||
Divestiture & other related costs, before tax
|
241
|
164
|
13,501
|
10,480
| ||||||||||||||||||||
Tax impact of divestiture & other related costs
|
1,179
|
(787
|
)
|
283
|
(1,212
|
)
| ||||||||||||||||||
Net loss (earnings) of the divested product lines, before tax
|
70
|
(2,449
|
)
|
(2,398
|
)
|
(4,165
|
)
| |||||||||||||||||
Tax impact of the divested product lines
|
(18
|
)
|
655
|
590
|
1,155
| |||||||||||||||||||
Operational improvement plan costs (income), before tax
|
483
|
2,641
|
(2,010
|
)
|
2,641
| |||||||||||||||||||
Tax impact of operational improvement plan
|
(115
|
)
|
(656
|
)
|
44
|
(656
|
)
| |||||||||||||||||
Adjusted net earnings
|
$
|
35,752
|
$
|
32,478
|
10.1
|
%
|
$
|
101,526
|
$
|
92,546
|
9.7
|
%
| ||||||||||||
Diluted earnings per share (GAAP)
|
$
|
0.80
|
$
|
0.78
|
2.6
|
%
|
$
|
2.16
|
$
|
1.99
|
8.5
|
%
| ||||||||||||
Divestiture & other related costs (income), net of tax
|
0.03
|
(0.01
|
)
|
0.33
|
0.22
| |||||||||||||||||||
Results of operations of the divested product lines, net of tax
|
0.00
|
(0.04
|
)
|
(0.04
|
)
|
(0.07
|
)
| |||||||||||||||||
Operational improvement plan costs (income), net of tax
|
0.01
|
0.05
|
(0.05
|
)
|
0.05
| |||||||||||||||||||
Adjusted diluted earnings per share
|
$
|
0.85
|
$
|
0.77
|
10.4
|
%
|
$
|
2.40
|
$
|
2.19
|
9.6
|
%
|
- MORE - |
Sensient Technologies Corporation
(In thousands)
(Unaudited)
|
Page 11 |
Results by Segment
|
Three Months Ended September 30,
| |||||||||||||||||||||||
Revenue |
2021
|
Adjustments (1) |
Adjusted
2021
|
2020
|
Adjustments (1) |
Adjusted
2020
| ||||||||||||||||||
Flavors & Extracts
|
$
|
181,667
|
$
|
(1,312
|
)
|
$
|
180,355
|
$
|
182,866
|
$
|
(22,978
|
)
|
$
|
159,888
| ||||||||||
Color
|
139,239
|
(310
|
)
|
138,929
|
116,414
|
(669
|
)
|
115,745
| ||||||||||||||||
Asia Pacific
|
33,442
|
-
|
33,442
|
30,740
|
(68
|
)
|
30,672
| |||||||||||||||||
Intersegment elimination
|
(10,061
|
)
|
-
|
(10,061
|
)
|
(6,454
|
)
|
127
|
(6,327
|
)
| ||||||||||||||
Consolidated
|
$
|
344,287
|
$
|
(1,622
|
)
|
$
|
342,665
|
$
|
323,566
|
$
|
(23,588
|
)
|
$
|
299,978
| ||||||||||
Operating Income | ||||||||||||||||||||||||
Flavors & Extracts
|
$
|
25,164
|
$
|
66
|
$
|
25,230
|
$
|
23,844
|
$
|
(2,241
|
)
|
$
|
21,603
| |||||||||||
Color
|
27,253
|
4
|
27,257
|
23,559
|
(185
|
)
|
23,374
| |||||||||||||||||
Asia Pacific
|
6,601
|
-
|
6,601
|
6,123
|
(23
|
)
|
6,100
| |||||||||||||||||
Corporate & Other
|
(12,060
|
)
|
724
|
(11,336
|
)
|
(12,371
|
)
|
2,805
|
(9,566
|
)
| ||||||||||||||
Consolidated
|
$
|
46,958
|
$
|
794
|
$
|
47,752
|
$
|
41,155
|
$
|
356
|
$
|
41,511
|
Results by Segment
|
Nine Months Ended September 30,
| |||||||||||||||||||||||
Revenue |
2021
|
Adjustments (1) |
Adjusted
2021
|
2020
|
Adjustments (1) |
Adjusted
2020
| ||||||||||||||||||
Flavors & Extracts
|
$
|
561,979
|
$
|
(27,616
|
)
|
$
|
534,363
|
$
|
552,975
|
$
|
(75,165
|
)
|
$
|
477,810
| ||||||||||
Color
|
408,166
|
(1,638
|
)
|
406,528
|
381,205
|
(13,242
|
)
|
367,963
| ||||||||||||||||
Asia Pacific
|
99,599
|
(295
|
)
|
99,304
|
89,062
|
(402
|
)
|
88,660
| ||||||||||||||||
Intersegment elimination
|
(29,928
|
)
|
150
|
(29,778
|
)
|
(25,909
|
)
|
419
|
(25,490
|
)
| ||||||||||||||
Consolidated
|
$
|
1,039,816
|
$
|
(29,399
|
)
|
$
|
1,010,417
|
$
|
997,333
|
$
|
(88,390
|
)
|
$
|
908,943
| ||||||||||
Operating Income | ||||||||||||||||||||||||
Flavors & Extracts
|
$
|
76,718
|
$
|
(2,859
|
)
|
$
|
73,859
|
$
|
67,467
|
$
|
(5,078
|
)
|
$
|
62,389
| ||||||||||
Color
|
79,462
|
548
|
80,010
|
75,486
|
1,029
|
76,515
| ||||||||||||||||||
Asia Pacific
|
19,146
|
(87
|
)
|
19,059
|
16,031
|
(116
|
)
|
15,915
| ||||||||||||||||
Corporate & Other
|
(45,718
|
)
|
11,491
|
(34,227
|
)
|
(41,143
|
)
|
13,121
|
(28,022
|
)
| ||||||||||||||
Consolidated
|
$
|
129,608
|
$
|
9,093
|
$
|
138,701
|
$
|
117,841
|
$
|
8,956
|
$
|
126,797
|
- MORE - |
Sensient Technologies Corporation
(In thousands, except percentages)
(Unaudited)
|
Page 12 |
Three Months Ended September 30,
| ||||||||||||||||
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Adjustments (2) |
Adjusted
Local
Currency
| ||||||||||||
Flavors & Extracts
|
(0.7
|
%)
|
1.1
|
%
|
(13.4
|
%)
|
11.6
|
%
| ||||||||
Color
|
19.6
|
%
|
1.9
|
%
|
(0.4
|
%)
|
18.1
|
%
| ||||||||
Asia Pacific
|
8.8
|
%
|
(0.5
|
%)
|
(0.2
|
%)
|
9.5
|
%
| ||||||||
Total Revenue
|
6.4
|
%
|
1.2
|
%
|
(7.8
|
%)
|
13.0
|
%
| ||||||||
Operating Income
| ||||||||||||||||
Flavors & Extracts
|
5.5
|
%
|
0.6
|
%
|
(11.1
|
%)
|
16.0
|
%
| ||||||||
Color
|
15.7
|
%
|
1.8
|
%
|
(0.9
|
%)
|
14.8
|
%
| ||||||||
Asia Pacific
|
7.8
|
%
|
(2.3
|
%)
|
(0.4
|
%)
|
10.5
|
%
| ||||||||
Corporate & Other
|
(2.5
|
%)
|
0.0
|
%
|
(21.0
|
%)
|
18.5
|
%
| ||||||||
Total Operating Income
|
14.1
|
%
|
1.1
|
%
|
(0.9
|
%)
|
13.9
|
%
| ||||||||
Diluted Earnings Per Share
|
2.6
|
%
|
0.0
|
%
|
(6.5
|
%)
|
9.1
|
%
| ||||||||
Adjusted EBITDA
|
14.2
|
%
|
1.3
|
%
|
N/A
|
12.9
|
%
|
Nine Months Ended September 30,
| ||||||||||||||||
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Adjustments (2) |
Adjusted
Local
Currency
| ||||||||||||
Flavors & Extracts
|
1.6
|
%
|
2.4
|
%
|
(10.7
|
%)
|
9.9
|
%
| ||||||||
Color
|
7.1
|
%
|
3.2
|
%
|
(3.4
|
%)
|
7.3
|
%
| ||||||||
Asia Pacific
|
11.8
|
%
|
3.6
|
%
|
(0.2
|
%)
|
8.4
|
%
| ||||||||
Total Revenue
|
4.3
|
%
|
2.8
|
%
|
(7.1
|
%)
|
8.6
|
%
| ||||||||
Operating Income
| ||||||||||||||||
Flavors & Extracts
|
13.7
|
%
|
1.9
|
%
|
(4.9
|
%)
|
16.7
|
%
| ||||||||
Color
|
5.3
|
%
|
3.5
|
%
|
0.8
|
%
|
1.0
|
%
| ||||||||
Asia Pacific
|
19.4
|
%
|
(0.7
|
%)
|
(0.3
|
%)
|
20.4
|
%
| ||||||||
Corporate & Other
|
11.1
|
%
|
0.0
|
%
|
(11.0
|
%)
|
22.1
|
%
| ||||||||
Total Operating Income
|
10.0
|
%
|
3.2
|
%
|
0.3
|
%
|
6.5
|
%
| ||||||||
Diluted Earnings Per Share
|
8.5
|
%
|
3.0
|
%
|
(1.3
|
%)
|
6.8
|
%
| ||||||||
Adjusted EBITDA
|
9.7
|
%
|
2.8
|
%
|
N/A
|
6.9
|
%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
| |||||||||||||||||||||||
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
| |||||||||||||||||||
Operating income (GAAP)
|
$
|
46,958
|
$
|
41,155
|
14.1
|
%
|
$
|
129,608
|
$
|
117,841
|
10.0
|
%
| ||||||||||||
Depreciation and amortization
|
13,011
|
12,309
|
38,828
|
36,831
| ||||||||||||||||||||
Depreciation and amortization, divested product lines
|
(49
|
)
|
(49
|
)
|
(146
|
)
|
(145
|
)
| ||||||||||||||||
Share-based compensation expense
|
2,243
|
1,355
|
6,431
|
4,017
| ||||||||||||||||||||
Divestiture & other related costs, before tax
|
241
|
164
|
13,501
|
10,480
| ||||||||||||||||||||
Results of operations of the divested product lines, before tax
|
70
|
(2,449
|
)
|
(2,398
|
)
|
(4,165
|
)
| |||||||||||||||||
Operational improvement plan costs (income), before tax
|
483
|
2,641
|
(2,010
|
)
|
2,641
| |||||||||||||||||||
Adjusted EBITDA
|
$
|
62,957
|
$
|
55,126
|
14.2
|
%
|
$
|
183,814
|
$
|
167,500
|
9.7
|
%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
| |||||||||||||||||||||||
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
| |||||||||||||||||||
Net cash provided by operating activities (GAAP)
|
$
|
26,887
|
$
|
35,313
|
(23.9
|
%)
|
$
|
116,148
|
$
|
142,927
|
(18.7
|
%)
| ||||||||||||
Capital expenditures
|
(12,058
|
)
|
(12,592
|
)
|
(37,608
|
)
|
(34,009
|
)
| ||||||||||||||||
Free Cash Flow
|
$
|
14,829
|
$
|
22,721
|
(34.7
|
%)
|
$
|
78,540
|
$
|
108,918
|
(27.9
|
%)
|
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Disclaimer
Sensient Technologies Corporation published this content on 15 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 October 2021 11:21:03 UTC.