EX-99.1 2 c50604exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:   Dick Hobbs
(414) 347-3836
Sensient Technologies Corporation
Reports Earnings for the First Quarter Ended March 31, 2009
Earnings per Share Increase 4.7%
Total Debt Down $11.4 Million in the Quarter and $59.5 million in Last Twelve Months
     MILWAUKEE—April 20, 2009—Sensient Technologies Corporation (NYSE: SXT) reported that diluted earnings per share for the three months ended March 31, 2009, reached 45 cents, a record level for the Company’s first quarter. Diluted earnings per share for the prior year’s comparable period were 43 cents. Consolidated revenue for the first quarter of 2009 was $282.8 million compared to $307.4 million in the first quarter of 2008. On a local currency basis, first quarter revenue was up 1.4% in comparison to the prior year.
     Cash provided by operating activities in the first quarter rose sharply to $17.5 million, compared to $9.7 million in the prior year’s comparable period. Total debt at March 31, 2009, was $468.5 million, a reduction of $11.4 million since the beginning of the year and $59.5 million in the last twelve months.
     “We have delivered our thirteenth consecutive quarter of increased earnings, despite a challenging economic environment,” said Kenneth P. Manning, Chairman and CEO of Sensient Technologies Corporation. “Our Flavors & Fragrances business delivered solid local currency growth this quarter across all major markets.”
BUSINESS REVIEW
     The Flavors & Fragrances Group reported revenue for the first quarter of 2009 of $184.5 million compared to first quarter 2008 revenue of $193.2 million. Group operating profit increased 4.0% to $30.0 million, a record level for the first quarter. Operating income for the
-MORE-

 

 

     
Sensient Technologies Corporation
  Page 2
Earnings Release – First Quarter Ended March 31, 2009
    
April 20, 2009
    
comparable period in 2008 was $28.8 million. Unfavorable foreign currency comparisons reduced Flavors & Fragrances Group revenue and operating income by approximately 9% and 8%, respectively. On a local currency basis, quarterly revenue was up 4.2%, with solid growth in all major markets. Local currency operating income increased 12.0% as price increases offset higher raw material and energy costs. Group operating margins improved 130 basis points in the first quarter to 16.2%.
     The Color Group reported first quarter revenue of $87.1 million in comparison to last year’s first quarter revenue of $102.8 million. Operating income for the quarter was $13.7 million compared to operating income of $18.5 million in the first quarter of 2008. Unfavorable foreign currency comparisons reduced revenue and operating income for the Color Group by approximately 11% in the quarter. The Color Group’s first quarter revenue and operating income, as stated in local currencies, were down 4.6% and 14.7%, respectively. Local currency sales of food and beverage colors were up slightly in the quarter and sales of non-food colors were down. Operating results for the Group were greatly affected by temporary events including higher raw material costs and customer destocking, particularly within non-food product lines. The Company projects that margins will improve going forward which will result in good annual results for the Color Group.
2009 OUTLOOK
     Sensient continues to expect 2009 diluted earnings per share to be within a range of $1.90 to $1.95.
CONFERENCE CALL
     The company will host a conference call to discuss its 2009 first quarter financial results at 10:00 a.m. CDT on Monday, April 20, 2009. 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.
-MORE-

 

 

     
Sensient Technologies Corporation
  Page 3
Earnings Release – First Quarter Ended March 31, 2009
    
April 20, 2009
    
     A replay will be available beginning at 1:00 p.m. CDT on April 20, 2009, through midnight on April 27, 2009, by calling (706) 645-9291 and referring to conference identification number 94210367. 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, 2008. 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
-MORE-

 

 

     
Sensient Technologies Corporation
  Page 4
(In thousands, except percentages and per share amounts)
    
                         
Consolidated Statements of Earnings   Three Months Ended March 31,  
    2009     2008     % Change  
 
                        
Revenue
   $ 282,824     $ 307,419       -8.0 %
 
                        
Cost of products sold
     196,294       211,777       -7.3 %
Selling and administrative expenses
     48,146       56,009       -14.0 %
 
                    
 
                        
Operating income
     38,384       39,633       -3.2 %
Interest expense
     7,246       8,578          
 
                    
 
                        
Earnings before income taxes
     31,138       31,055       0.3 %
Income taxes
     9,531       10,378          
 
                    
 
                        
Net earnings
   $ 21,607     $ 20,677       4.5 %
 
                    
 
                        
Earnings per common share:
                        
Basic
   $ 0.45     $ 0.44       2.3 %
 
                    
 
                        
Diluted
   $ 0.45     $ 0.43       4.7 %
 
                    
 
                        
Average common shares outstanding:
                        
Basic
     48,145       47,299       1.8 %
 
                    
 
                        
Diluted
     48,351       47,806       1.1 %
 
                    
                         
Results by Segment   Three Months Ended March 31,  
    2009     2008     % Change  
 
                        
Revenue
                        
Flavors & Fragrances
   $ 184,548     $ 193,240       -4.5 %
Color
     87,090       102,771       -15.3 %
Corporate & Other
     18,671       20,954       -10.9 %
Intersegment elimination
     (7,485 )     (9,546 )     -21.6 %
 
                    
 
                        
Consolidated
   $ 282,824     $ 307,419       -8.0 %
 
                    
 
                        
Operating Income
                        
Flavors & Fragrances
   $ 29,957     $ 28,816       4.0 %
Color
     13,731       18,505       -25.8 %
Corporate & Other
     (5,304 )     (7,688 )     -31.0 %
 
                    
 
                        
Consolidated
   $ 38,384     $ 39,633       -3.2 %
 
                    
-MORE-

 

 

     
Sensient Technologies Corporation   Page 5
(In thousands, except per share amounts)
    
                 
Consolidated Condensed Balance Sheets            
March 31,   2009     2008  
 
                
Current assets
   $ 616,612     $ 649,502  
Goodwill and intangibles (net)
     439,839       508,466  
Property, plant and equipment (net)
     389,284       430,138  
Other assets
     39,261       45,186  
 
            
 
                
Total Assets
   $ 1,484,996     $ 1,633,292  
 
            
 
                
Current liabilities
   $ 191,286     $ 239,858  
Long-term debt
     420,919       459,255  
Accrued employee and retiree benefits
     38,539       45,573  
Other liabilities
     26,446       28,131  
Shareholders’ equity
     807,806       860,475  
 
            
 
                
Total Liabilities and Shareholders’ Equity
   $ 1,484,996     $ 1,633,292  
 
            
                 
Consolidated Statements of Cash Flows            
Three Months Ended March 31,   2009     2008  
 
                
Net cash provided by operating activities
   $ 17,536     $ 9,734  
 
            
 
                
Cash flows from investing activities:
                
Acquisition of property, plant and equipment
     (8,836 )     (12,113 )
Proceeds from sale of assets
     4       23  
Other investing activity
     (91 )     1,462  
 
            
 
                
Net cash used in investing activities
     (8,923 )     (10,628 )
 
            
 
                
Cash flows from financing activities:
                
Proceeds from additional borrowings
     120,237       9,052  
Debt payments
     (122,234 )     (3,071 )
Dividends paid
     (9,220 )     (8,587 )
Proceeds from options exercised and other
     2,261       5,478  
 
            
 
                
Net cash (used in) provided by financing activities
     (8,956 )     2,872  
 
            
 
                
Effect of exchange rate changes on cash and cash equivalents
     203       308  
 
            
 
                
Net (decrease) increase in cash and cash equivalents
     (140 )     2,286  
Cash and cash equivalents at beginning of period
     8,498       10,522  
 
            
Cash and cash equivalents at end of period
   $ 8,358     $ 12,808  
 
            
                 
Supplemental Information        
Three Months Ended March 31,   2009   2008
 
Depreciation and amortization
   $ 10,517     $ 11,483  
Dividends per share
   $ 0.19     $ 0.18