WISCONSIN
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1-7626
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39-0561070
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS EmployerIdentification No.)
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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. |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS. |
Exhibit 99.1:
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Sensient Technologies Corporation Earnings Press Release for the Quarter and Nine Months Ended September 30, 2013.
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SENSIENT TECHNOLOGIES CORPORATION
(Registrant)
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By:
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/s/ John L. Hammond
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Name:
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John L. Hammond
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Title:
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Senior Vice President, General Counsel and Secretary
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Date:
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Sensient Technologies Corporation Earnings Press Release for the Quarter and Nine Months Ended September 30, 2013.
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Contact:
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Dick Hobbs
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(414) 347-3706
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Sensient Technologies Corporation
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Page 2
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Earnings Release – Third Quarter Ended September 30, 2013
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October 17, 2013
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Sensient Technologies Corporation
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Page 3
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Earnings Release – Third Quarter Ended September 30, 2013
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October 17, 2013
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Sensient Technologies Corporation
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Page 4
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Earnings Release – Third Quarter Ended September 30, 2013
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October 17, 2013
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Sensient Technologies Corporation
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Page 5
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(In thousands, except percentages and per share amounts)
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Consolidated Statements of Earnings
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Three Months Ended September 30,
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Nine Months Ended September 30,
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||||||||||||||||||||||
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||||||||||||||||||||||||
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2013
|
2012
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% Change
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2013
|
2012
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% Change
|
||||||||||||||||||
|
||||||||||||||||||||||||
Revenue
|
$
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371,993
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$
|
369,371
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0.7
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%
|
$
|
1,116,439
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$
|
1,102,808
|
1.2
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Cost of products sold
|
251,934
|
251,778
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0.1
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%
|
756,722
|
749,928
|
0.9
|
%
|
||||||||||||||||
Selling and administrative expenses
|
71,269
|
66,892
|
6.5
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%
|
225,911
|
201,392
|
12.2
|
%
|
||||||||||||||||
|
||||||||||||||||||||||||
Operating income
|
48,790
|
50,701
|
-3.8
|
%
|
133,806
|
151,488
|
-11.7
|
%
|
||||||||||||||||
Interest expense
|
4,048
|
4,483
|
12,317
|
13,236
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Earnings before income taxes
|
44,742
|
46,218
|
-3.2
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%
|
121,489
|
138,252
|
-12.1
|
%
|
||||||||||||||||
Income taxes
|
13,217
|
13,342
|
36,243
|
41,565
|
||||||||||||||||||||
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||||||||||||||||||||||||
Net earnings
|
$
|
31,525
|
$
|
32,876
|
-4.1
|
%
|
$
|
85,246
|
$
|
96,687
|
-11.8
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%
|
||||||||||||
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||||||||||||||||||||||||
Earnings per common share:
|
||||||||||||||||||||||||
Basic
|
$
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0.63
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$
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0.66
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-4.5
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%
|
$
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1.71
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$
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1.95
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-12.3
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%
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||||||||||||
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||||||||||||||||||||||||
Diluted
|
$
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0.63
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$
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0.66
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-4.5
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%
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$
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1.71
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$
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1.94
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-11.9
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%
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||||||||||||
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||||||||||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||||||
Basic
|
49,761
|
49,536
|
0.5
|
%
|
49,741
|
49,616
|
0.3
|
%
|
||||||||||||||||
|
||||||||||||||||||||||||
Diluted
|
49,946
|
49,785
|
0.3
|
%
|
49,910
|
49,850
|
0.1
|
%
|
|
Three Months Ended September 30,
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|||||||||||||||||||
|
||||||||||||||||||||
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Reported
|
Restructuring
|
Adjusted
|
Reported
|
||||||||||||||||
|
2013
|
Impact
|
2013
|
2012
|
% Change
|
|||||||||||||||
|
||||||||||||||||||||
Revenue
|
$
|
371,993
|
$
|
-
|
$
|
371,993
|
$
|
369,371
|
0.7
|
%
|
||||||||||
|
||||||||||||||||||||
Cost of products sold
|
251,934
|
545
|
251,389
|
251,778
|
-0.2
|
%
|
||||||||||||||
Selling and administrative expenses
|
71,269
|
6,041
|
65,228
|
66,892
|
-2.5
|
%
|
||||||||||||||
|
||||||||||||||||||||
Operating income
|
48,790
|
(6,586
|
)
|
55,376
|
50,701
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9.2
|
%
|
|||||||||||||
Interest expense
|
4,048
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-
|
4,048
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4,483
|
||||||||||||||||
|
||||||||||||||||||||
Earnings before income taxes
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44,742
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(6,586
|
)
|
51,328
|
46,218
|
11.1
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%
|
|||||||||||||
Income taxes
|
13,217
|
(2,206
|
)
|
15,423
|
13,342
|
|||||||||||||||
|
||||||||||||||||||||
Net earnings
|
$
|
31,525
|
$
|
(4,380
|
)
|
$
|
35,905
|
$
|
32,876
|
9.2
|
%
|
|||||||||
|
||||||||||||||||||||
Earnings per common share:
|
||||||||||||||||||||
Basic
|
$
|
0.63
|
$
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(0.09
|
)
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$
|
0.72
|
$
|
0.66
|
9.1
|
%
|
|||||||||
|
||||||||||||||||||||
Diluted
|
$
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0.63
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$
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(0.09
|
)
|
$
|
0.72
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$
|
0.66
|
9.1
|
%
|
|||||||||
|
||||||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||
Basic
|
49,761
|
49,761
|
49,536
|
0.5
|
%
|
|||||||||||||||
|
||||||||||||||||||||
Diluted
|
49,946
|
49,946
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49,785
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0.3
|
%
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Sensient Technologies Corporation
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Page 6
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(In thousands, except percentages and per share amounts)
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|
|
Nine Months Ended September 30,
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|||||||||||||||||||
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||||||||||||||||||||
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Reported
|
Restructuring
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Adjusted
|
Reported
|
||||||||||||||||
|
2013
|
Impact
|
2013
|
2012
|
% Change
|
|||||||||||||||
|
||||||||||||||||||||
Revenue
|
$
|
1,116,439
|
$
|
-
|
$
|
1,116,439
|
$
|
1,102,808
|
1.2
|
%
|
||||||||||
|
||||||||||||||||||||
Cost of products sold
|
756,722
|
1,417
|
755,305
|
749,928
|
0.7
|
%
|
||||||||||||||
Selling and administrative expenses
|
225,911
|
24,584
|
201,327
|
201,392
|
0.0
|
%
|
||||||||||||||
|
||||||||||||||||||||
Operating income
|
133,806
|
(26,001
|
)
|
159,807
|
151,488
|
5.5
|
%
|
|||||||||||||
Interest expense
|
12,317
|
-
|
12,317
|
13,236
|
||||||||||||||||
|
||||||||||||||||||||
Earnings before income taxes
|
121,489
|
(26,001
|
)
|
147,490
|
138,252
|
6.7
|
%
|
|||||||||||||
Income taxes
|
36,243
|
(7,512
|
)
|
43,755
|
41,565
|
|||||||||||||||
|
||||||||||||||||||||
Net earnings
|
$
|
85,246
|
$
|
(18,489
|
)
|
$
|
103,735
|
$
|
96,687
|
7.3
|
%
|
|||||||||
|
||||||||||||||||||||
Earnings per common share:
|
||||||||||||||||||||
Basic
|
$
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1.71
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$
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(0.38
|
)
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$
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2.09
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$
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1.95
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7.2
|
%
|
|||||||||
|
||||||||||||||||||||
Diluted
|
$
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1.71
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$
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(0.37
|
)
|
$
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2.08
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$
|
1.94
|
7.2
|
%
|
|||||||||
|
||||||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||
Basic
|
49,741
|
49,741
|
49,616
|
0.3
|
%
|
|||||||||||||||
|
||||||||||||||||||||
Diluted
|
49,910
|
49,910
|
49,850
|
0.1
|
%
|
Results by Segment
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
||||||||||||||||||||||||
Revenue
|
2013
|
2012
|
% Change
|
2013
|
2012
|
% Change
|
||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
226,270
|
$
|
224,699
|
0.7
|
%
|
$
|
671,229
|
$
|
658,348
|
2.0
|
%
|
||||||||||||
Color *
|
123,854
|
122,102
|
1.4
|
%
|
378,321
|
383,599
|
-1.4
|
%
|
||||||||||||||||
Corporate & Other
|
37,579
|
37,809
|
-0.6
|
%
|
112,377
|
108,582
|
3.5
|
%
|
||||||||||||||||
Intersegment elimination
|
(15,710
|
)
|
(15,239
|
)
|
3.1
|
%
|
(45,488
|
)
|
(47,721
|
)
|
-4.7
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Consolidated
|
$
|
371,993
|
$
|
369,371
|
0.7
|
%
|
$
|
1,116,439
|
$
|
1,102,808
|
1.2
|
%
|
||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Operating Income
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
31,759
|
$
|
31,810
|
-0.2
|
%
|
$
|
93,240
|
$
|
94,334
|
-1.2
|
%
|
||||||||||||
Color *
|
26,833
|
24,211
|
10.8
|
%
|
80,516
|
76,547
|
5.2
|
%
|
||||||||||||||||
Corporate & Other
|
(9,802
|
)
|
(5,320
|
)
|
(39,950
|
)
|
(19,393
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Consolidated
|
$
|
48,790
|
$
|
50,701
|
-3.8
|
%
|
$
|
133,806
|
$
|
151,488
|
-11.7
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Consolidated Excluding Restructuring Charge
|
$
|
55,376
|
$
|
50,701
|
9.2
|
%
|
$
|
159,807
|
$
|
151,488
|
5.5
|
%
|
Sensient Technologies Corporation
|
Page 7
|
(In thousands, except per share amounts)
|
|
Consolidated Condensed Balance Sheets
|
||||||||
September 30,
|
2013
|
2012
|
||||||
|
||||||||
Current assets
|
$
|
789,408
|
$
|
750,358
|
||||
Goodwill and intangibles (net)
|
464,541
|
458,370
|
||||||
Property, plant and equipment (net)
|
547,467
|
488,707
|
||||||
Other assets
|
45,388
|
39,405
|
||||||
|
||||||||
Total Assets
|
$
|
1,846,804
|
$
|
1,736,840
|
||||
|
||||||||
Current liabilities
|
$
|
240,179
|
$
|
208,511
|
||||
Long-term debt
|
334,852
|
328,837
|
||||||
Accrued employee and retiree benefits
|
43,222
|
56,420
|
||||||
Other liabilities
|
18,396
|
31,085
|
||||||
Shareholders' equity
|
1,210,155
|
1,111,987
|
||||||
|
||||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,846,804
|
$
|
1,736,840
|
Consolidated Statements of Cash Flows
|
||||||||
Three Months Ended September 30,
|
2013
|
2012
|
||||||
|
||||||||
Net cash provided by operating activities
|
$
|
47,725
|
$
|
43,093
|
||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(22,006
|
)
|
(19,753
|
)
|
||||
Proceeds from sale of assets
|
5,900
|
-
|
||||||
Other investing activity
|
(33
|
)
|
(36
|
)
|
||||
|
||||||||
Net cash used in investing activities
|
(16,139
|
)
|
(19,789
|
)
|
||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
4,978
|
8,060
|
||||||
Debt payments
|
(27,238
|
)
|
(22,777
|
)
|
||||
Dividends paid
|
(11,509
|
)
|
(10,941
|
)
|
||||
Proceeds from options exercised and other
|
93
|
526
|
||||||
|
||||||||
Net cash used in financing activities
|
(33,676
|
)
|
(25,132
|
)
|
||||
|
||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(320
|
)
|
2,113
|
|||||
|
||||||||
Net (decrease) increase in cash and cash equivalents
|
(2,410
|
)
|
285
|
|||||
Cash and cash equivalents at beginning of period
|
26,665
|
12,055
|
||||||
Cash and cash equivalents at end of period
|
$
|
24,255
|
$
|
12,340
|
Supplemental Information
|
||||||||
Three Months Ended September 30,
|
2013
|
2012
|
||||||
|
||||||||
Depreciation and amortization
|
$
|
13,158
|
$
|
12,051
|
||||
|
||||||||
Dividends per share
|
$
|
0.23
|
$
|
0.22
|