-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TP37LYVBflAtU+R/Gtt/hLyyssSfVaQxu9x4p9MRQBsnKleXqkelVGWH59lZQm5L qHLAK8AfqEpbOsbSbL/95Q== 0000950137-07-001930.txt : 20070212 0000950137-07-001930.hdr.sgml : 20070212 20070212092755 ACCESSION NUMBER: 0000950137-07-001930 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070212 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070212 DATE AS OF CHANGE: 20070212 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SENSIENT TECHNOLOGIES CORP CENTRAL INDEX KEY: 0000310142 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 390561070 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07626 FILM NUMBER: 07600504 BUSINESS ADDRESS: STREET 1: 777 EAST WISCONSIN AVENUE CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4142716755 MAIL ADDRESS: STREET 1: PO BOX 737 CITY: MILWAUKEE STATE: WI ZIP: 53201 FORMER COMPANY: FORMER CONFORMED NAME: UNIVERSAL FOODS CORP DATE OF NAME CHANGE: 19920703 8-K 1 c12198e8vk.htm CURRENT REPORT e8vk
 

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 12, 2007
(Date of Report/Date of earliest event reported)
 
SENSIENT TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)
 
         
WISCONSIN
(State or other jurisdiction
of incorporation)
  1-7626
(Commission File Number)
  39-0561070
(IRS Employer
Identification No.)
777 East Wisconsin Avenue
Milwaukee, Wisconsin 53202-5304
(Address and zip code of principal executive offices)
(414) 271-6755
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On February 12, 2007, Sensient Technologies Corporation issued a press release disclosing its results of operations for its quarter and fiscal year ended December 31, 2006 and its financial condition at that date. The press release is furnished as Exhibit 99.1 to this Report on
Form 8-K.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
     
Exhibit 99.1:
  The following exhibit is furnished with this Report on Form 8-K: Sensient Technologies Corporation Earnings Press Release for the Quarter and Fiscal Year Ended December 31, 2006

2


 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  SENSIENT TECHNOLOGIES CORPORATION
(Registrant)
 
 
  By:   /s/ John L. Hammond    
    Name:   John L. Hammond   
    Title:   Vice President, Secretary and General Counsel   
 
  Date: February 12, 2007
     
     
     

3


 

         
EXHIBIT INDEX
     
Exhibit 99.1:
  The following exhibit is furnished with this Report on Form 8-K: Sensient Technologies Corporation Earnings Press Release for the Quarter and Fiscal Year ended December 31, 2006

EX-99.1 2 c12198exv99w1.htm PRESS RELEASE exv99w1
 

Contact:   Dick Hobbs
(414) 347-3836
Sensient Technologies Corporation
Reports Earnings for the Year Ended December 31, 2006
Earnings Increase Sharply on Strong Revenues
Flavors & Fragrances Group Achieves Record Results
     MILWAUKEE—February 12, 2007—Sensient Technologies Corporation (NYSE: SXT) reported that its consolidated revenue for the year ended December 31, 2006, increased 7.3% to $1.1 billion. Fourth quarter revenue for 2006 was up 7.9% to $272.8 million. The increase in annual revenue was driven by higher Color segment sales and record sales within the Flavors & Fragrances segment. Foreign currency exchange rates had a favorable impact on revenue of .9% and 3.1%, respectively, for the year and the fourth quarter.
     Diluted earnings per share for the twelve months ended December 31, 2006, increased 25.2% to $1.44 compared to $1.15 per share before 2005 restructuring and other charges of $.21 per share. Diluted earnings per share for the fourth quarter of 2006 rose 37.5% to $.33 compared to $.24 reported in the prior year’s fourth quarter before the 2005 restructuring and other charges. Reported earnings per share for the 2005 full year and fourth quarter were $.94 and $.03, respectively, when restructuring and other charges of $.21 per share are included.
     “Our major business segments enjoyed good volume growth and improved product mix during 2006,” said Kenneth P. Manning, Chairman, President and CEO of Sensient Technologies Corporation. “This was an outstanding year and I expect our businesses to continue to perform well in 2007.”
- MORE -

 


 

Sensient Technologies Corporation
Earnings Release — Year ended December 31, 2006
February 12, 2007
  Page 2
BUSINESS REVIEW
     The Flavors & Fragrances Group achieved record results in 2006, as revenue for the twelve months increased 9.4% to $733.4 million and operating income increased 26.7% to $104.5 million. Flavors & Fragrances Group revenue grew 9.4% to $185.0 million in the quarter ended December 31, 2006, compared to $169.1 million in the prior year’s fourth quarter. Quarterly operating income jumped 42.8% to $27.0 million compared to $18.9 million in the fourth quarter of 2005.
     Flavors & Fragrances Group revenue in the year and the quarter benefited from higher volumes and improved pricing, particularly in the United States. Flavor sales in Latin America and sales within the Fragrances product line were also up. Profit was boosted by higher sales, improved product mix and the Company’s cost reduction efforts.
     Color Group revenue for the twelve months ended December 31, 2006, increased 3.0% to $350.2 million and operating income was up 9.6% to $59.4 million. Color Group revenue for the fourth quarter increased 6.0% to $83.4 million from the comparable quarter in 2005. Fourth quarter operating income rose to $13.8 million, an increase of 19.1% from the 2005 fourth quarter. Annual and quarterly revenues reflect solid growth within the Group’s cosmetic and food and beverage product lines. Higher sales drove the increase in operating income, which was enhanced by favorable product mix and an improved cost structure.
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Sensient Technologies Corporation
Earnings Release — Year ended December 31, 2006
February 12, 2007
  Page 3
2007 OUTLOOK
     Sensient expects reported 2007 diluted earnings per share to be between $1.52 and $1.54.
CONFERENCE CALL
     The company will host a conference call to discuss its 2006 fourth quarter and year-end financial results at 10:00 a.m. CST on Monday, February 12, 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. CST on February 12, 2007, through midnight on February 19, 2007, by calling (706) 645-9291 and referring to passcode 7263882. A transcript of the call will also be posted on the company’s web site at www.sensient-tech.com after the call concludes.
     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, 2005, and quarterly report on Form 10-Q for the quarter ended September 30, 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.
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Sensient Technologies Corporation
Earnings Release — Year ended December 31, 2006
February 12, 2007
  Page 4
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 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 5
Consolidated Statements of Earnings
                                                 
    Three Months Ended December 31,     Twelve Months Ended December 31,  
    2006     2005     % Change     2006     2005     % Change  
 
                                               
Revenue
  $ 272,760     $ 252,887       7.9     $ 1,098,774     $ 1,023,930       7.3  
 
                                               
Cost of products sold (includes restructuring charges of $4,340 in 2005)
    189,036       187,266       0.9       766,506       731,253       4.8  
Selling and administrative expenses
    53,891       45,912       17.4       202,991       189,998       6.8  
Restructuring and other charges
          8,465                     8,465          
 
                                       
 
                                               
Operating income
    29,833       11,244       165.3       129,277       94,214       37.2  
Interest expense
    8,969       9,291               35,748       35,737          
 
                                       
 
                                               
Earnings before income taxes
    20,864       1,953       968.3       93,529       58,477       59.9  
Income taxes
    5,497       580               27,104       14,282          
 
                                       
 
                                               
Net earnings
  $ 15,367     $ 1,373       1,019.2     $ 66,425     $ 44,195       50.3  
 
                                       
 
                                               
Earnings per common share:
                                               
Basic
  $ 0.33     $ 0.03       1,000.0     $ 1.45     $ 0.95       52.6  
 
                                       
Diluted
  $ 0.33     $ 0.03       1,000.0     $ 1.44     $ 0.94       53.2  
 
                                       
 
                                               
Average common shares outstanding:
                                               
Basic
    46,031       46,486       (1.0 )     45,900       46,746       (1.8 )
 
                                       
Diluted
    46,511       46,749       (0.5 )     46,204       47,067       (1.8 )
 
                                       

                                                 
Results by Segment   Three Months Ended December 31,     Twelve Months Ended December 31,  
    2006     2005     % Change     2006     2005     % Change  
Revenue
                                               
 
                                               
Flavors & Fragrances
  $ 185,046     $ 169,083       9.4     $ 733,421     $ 670,594       9.4  
Color
    83,372       78,649       6.0       350,174       339,939       3.0  
Corporate & Other
    10,672       10,761       (0.8 )     41,301       41,526       (0.5 )
Intersegment elimination
    (6,330 )     (5,606 )     12.9       (26,122 )     (28,129 )     (7.1 )
 
                                       
 
                                               
Consolidated
  $ 272,760     $ 252,887       7.9     $ 1,098,774     $ 1,023,930       7.3  
 
                                       
 
                                               
Operating Income
                                               
 
                                               
Flavors & Fragrances
  $ 27,001     $ 18,906       42.8     $ 104,457     $ 82,473       26.7  
Color
    13,824       11,604       19.1       59,384       54,197       9.6  
Corporate & Other
    (10,992 )     (19,266 )     (42.9 )     (34,564 )     (42,456 )     (18.6 )
 
                                       
 
                                               
Consolidated
  $ 29,833     $ 11,244       165.3     $ 129,277     $ 94,214       37.2  
 
                                       
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Sensient Technologies Corporation
(In thousands, except per share amounts)
  Page 6
                 
Consolidated Condensed Balance Sheets            
December 31,   2006     2005  
 
               
Current assets
  $ 551,702     $ 520,344  
Intangibles (net)
    463,701       435,165  
Property, plant and equipment (net)
    391,456       379,380  
Other assets
    47,208       63,384  
 
           
Total Assets
  $ 1,454,067     $ 1,398,273  
 
           
 
               
Current liabilities
  $ 260,610     $ 442,087  
Long-term debt
    441,306       283,123  
Accrued employee and retiree benefits
    43,957       41,980  
Other liabilities
    4,090       8,855  
Shareholders’ equity
    704,104       622,228  
 
           
Total Liabilities and Shareholders’ Equity
  $ 1,454,067     $ 1,398,273  
 
           

                 
Consolidated Statements of Cash Flows            
Twelve Months Ended December 31,   2006     2005  
 
               
Net cash provided by operating activities
  $ 99,217     $ 110,290  
 
           
 
               
Cash flows from investing activities:
               
Acquisition of property, plant and equipment
    (39,314 )     (36,102 )
Proceeds from sale of assets
    3,321       1,101  
Decrease in other assets
    2,152       1,033  
 
           
 
               
Net cash used in investing activities
    (33,841 )     (33,968 )
 
           
 
               
Cash flows from financing activities:
               
Proceeds from additional borrowings
    247,483       80,652  
Debt and capital lease payments
    (290,992 )     (109,163 )
Purchase of treasury stock
    (4,563 )     (18,005 )
Dividends paid
    (28,292 )     (28,276 )
Proceeds from options exercised and other equity transactions
    7,681       3,630  
 
           
 
               
Net cash used in financing activities
    (68,683 )     (71,162 )
 
           
 
               
Effect of exchange rate changes on cash and cash equivalents
    1,274       (335 )
 
           
 
               
Net (decrease) increase in cash and cash equivalents
    (2,033 )     4,825  
Cash and cash equivalents at beginning of year
    7,068       2,243  
 
           
Cash and cash equivalents at end of year
  $ 5,035     $ 7,068  
 
           

                 
Supplemental Information            
Twelve Months Ended December 31,   2006     2005  
 
               
Depreciation and amortization
  $ 43,044     $ 44,859  
 
               
Dividends per share
  $ 0.61     $ 0.60  
# # #

 

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