EX-99.1 2 c14356exv99w1.htm PRESS RELEASE exv99w1
 

     
Contact:
  Dick Hobbs
 
  (414) 347-3836
Sensient Technologies Corporation
Reports Earnings for the Quarter Ended March 31, 2007
EPS Increases 8.8% on Record First Quarter Revenue
 
     MILWAUKEE—April 20, 2007 — Sensient Technologies Corporation (NYSE: SXT) reported that diluted earnings per share for its first quarter ended March 31, 2007, increased 8.8%, to 37 cents from 34 cents last year. First quarter 2007 revenue increased 8.5% to $285.3 million as a result of strong sales in each of the Company’s operating segments. Foreign currency translation had a favorable impact of 3.1% on first quarter revenue.
     “Our cosmetic and food and beverage product lines performed very well, resulting in record first quarter sales,” said Kenneth P. Manning, Chairman, President and CEO of Sensient Technologies Corporation. “We are off to a good start and I expect continued growth in 2007.”
BUSINESS REVIEW
     The Flavors & Fragrances Group posted record first quarter revenue of $184.3 million, an increase of 8.1% over the prior year. Solid revenue growth was recorded in the United States, Latin America and China. First quarter operating income was up 14.3%, to $26.2 million on higher sales volume and favorable pricing.
      
     For the quarter, Color Group revenue grew 7.7%, to $96.0 million compared to $89.2 million for the comparable period in 2006. Strong demand within the Company’s cosmetic
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Sensient Technologies Corporation
  Page 2
Earnings Release — First quarter ended March 31, 2007
    
April 20, 2007
    
 
    
and food and beverage product lines contributed to record first quarter revenue. Operating income for the first quarter increased 8.8%, to $17.2 million on the higher sales volume.
2007 OUTLOOK
     Sensient now expects reported 2007 diluted earnings per share to be between $1.54 and $1.56.
CONFERENCE CALL
     The Company will host a conference call to discuss its 2007 first quarter financial results at 10:00 a.m. CDT on Friday, April 20, 2007. To make a reservation for the conference call, please contact InterCall Teleconferencing at (706) 645-6973 and refer to the Sensient Technologies Corporation conference call.
     A replay will be available beginning at 1:00 p.m. CDT on April 20, 2007, through midnight on April 27, 2007, by calling (706) 645-9291 and referring to passcode 4910432. A transcript of the call will also be posted on the Company’s web site at www.sensient-tech.com after the call concludes.
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Sensient Technologies Corporation
  Page 3
Earnings Release — First quarter ended March 31, 2007
    
April 20, 2007
    
 
    
     This release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) that reflect management’s current assumptions and estimates of future economic circumstances, industry conditions, company performance and financial results. A variety of factors could cause the company’s actual results and experience to differ materially from the anticipated results, including, but not limited to the factors noted in this press release and in the Management’s Discussion and Analysis in our most recently filed annual report on Form 10-K for the year ended December 31, 2006. The forward-looking statements in this press release speak only as to the date of this release. Sensient Technologies Corporation expressly disclaims any obligation or undertaking to release publicly any updates or revisions to such statements to reflect any change in its expectations upon which such statements are based.
ABOUT SENSIENT TECHNOLOGIES
     Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors and fragrances. Sensient employs advanced technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, inkjet and specialty inks and colors, and other specialty chemicals. The company’s customers include major international manufacturers representing some of the world’s best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.
     www.sensient-tech.com
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Sensient Technologies Corporation
(In thousands, except percentages and per share amounts) 		  Page 4
Consolidated Statements of Earnings
                         
    Three Months Ended March 31,  
    2007     2006     % Change  
 
                        
Revenue
   $ 285,268     $ 262,924       8.5  
 
                        
Cost of products sold
     199,120       183,485       8.5  
Selling and administrative expenses
     51,936       48,664       6.7  
 
                    
 
                        
Operating income
     34,212       30,775       11.2  
Interest expense
     9,252       8,708          
 
                    
 
                        
Earnings before income taxes
     24,960       22,067       13.1  
Income taxes
     7,614       6,449          
 
                    
 
                        
Net earnings
   $ 17,346     $ 15,618       11.1  
 
                    
 
                        
Earnings per common share:
                        
Basic
   $ 0.37     $ 0.34       8.8  
 
                    
Diluted
   $ 0.37     $ 0.34       8.8  
 
                    
 
                        
Average common shares outstanding:
                        
Basic
     46,402       45,805       1.3  
 
                    
Diluted
     46,909       45,972       2.0  
 
                    
Results by Segment
                         
    Three Months Ended March 31,  
    2007     2006     % Change  
 
                        
Revenue
                        
 
                        
Flavors & Fragrances
   $ 184,274     $ 170,514       8.1  
Color
     96,030       89,156       7.7  
Corporate & Other
     12,064       10,004       20.6  
Intersegment elimination
     (7,100 )     (6,750 )     5.2  
 
                    
Consolidated
   $ 285,268     $ 262,924       8.5  
 
                    
 
                        
Operating Income
                        
 
                        
Flavors & Fragrances
   $ 26,174     $ 22,893       14.3  
Color
     17,232       15,845       8.8  
Corporate & Other
     (9,194 )     (7,963 )     15.5  
 
                    
Consolidated
   $ 34,212     $ 30,775       11.2  
 
                    
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Sensient Technologies Corporation
(In thousands, except percentages and per share amounts) 		  Page 5
Consolidated Condensed Balance Sheets
                 
March 31,   2007     2006  
 
                
Current assets
   $ 568,516     $ 517,970  
Goodwill and intangibles (net)
     464,649       437,778  
Property, plant and equipment (net)
     387,419       371,647  
Other assets
     47,924       60,754  
 
            
Total Assets
   $ 1,468,508     $ 1,388,149  
 
            
 
                
Current liabilities
   $ 251,698     $ 423,052  
Long-term debt
     437,012       280,726  
Accrued employee and retiree benefits
     45,263       43,038  
Other liabilities
     16,921       9,095  
Shareholders’ equity
     717,614       632,238  
 
            
Total Liabilities and Shareholders’ Equity
   $ 1,468,508     $ 1,388,149  
 
            
Consolidated Statements of Cash Flows
                 
Three Months Ended March 31,   2007     2006  
 
                
Net cash provided by operating activities
   $ 5,095     $ 20,782  
 
            
 
                
Cash flows from investing activities:
                
Acquisition of property, plant and equipment
     (6,827 )     (4,383 )
Proceeds from sale of assets
     1,418       64  
Decrease in other assets
     252       512  
 
            
 
                
Net cash used in investing activities
     (5,157 )     (3,807 )
 
            
 
                
Cash flows from financing activities:
                
Proceeds from additional borrowings
     24,679       22,624  
Debt payments
     (19,744 )     (32,455 )
Purchase of treasury stock
     —       (4,563 )
Dividends paid
     (7,481 )     (6,949 )
Proceeds from options exercised and other
     2,514       —  
 
            
 
                
Net cash used in financing activities
     (32 )     (21,343 )
 
            
 
                
Effect of exchange rate changes on cash and cash equivalents
     (14 )     152  
 
            
 
                
Net decrease in cash and cash equivalents
     (108 )     (4,216 )
Cash and cash equivalents at beginning of period
     5,035       7,068  
 
            
Cash and cash equivalents at end of period
   $ 4,927     $ 2,852  
 
            
Supplemental Information
                 
Three Months Ended March 31,   2007     2006  
 
                
Depreciation and amortization
   $ 11,201     $ 10,973  
 
                
Dividends per share
   $ 0.16     $ 0.15