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 Year Ended December 31, 2013.
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SENSIENT TECHNOLOGIES CORPORATION
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(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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February 10, 2014
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Sensient Technologies Corporation Earnings Press Release for the Quarter and Year Ended December 31, 2013.
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Contact:
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Dick Hobbs
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Sensient Technologies Corporation
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Page 2
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Earnings Release – Fourth Quarter and Year Ended December 31, 2013
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February 10, 2014
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Sensient Technologies Corporation
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Page 3
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Earnings Release – Fourth Quarter and Year Ended December 31, 2013
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February 10, 2014
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Sensient Technologies Corporation
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Page 4
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Earnings Release – Fourth Quarter and Year Ended December 31, 2013
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February 10, 2014
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Sensient Technologies Corporation
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Page 5
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Earnings Release – Fourth Quarter and Year Ended December 31, 2013
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February 10, 2014
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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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Consolidated Statements of Earnings
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Three Months Ended December 31,
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Twelve Months Ended December 31,
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||||||||||||||||||||||
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||||||||||||||||||||||||
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2013
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2012
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% Change
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2013
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2012
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% Change
|
||||||||||||||||||
|
||||||||||||||||||||||||
Revenue
|
$
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351,111
|
$
|
356,242
|
-1.4
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%
|
$
|
1,467,550
|
$
|
1,459,050
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0.6
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Cost of products sold
|
234,926
|
245,979
|
-4.5
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%
|
991,648
|
995,907
|
-0.4
|
%
|
||||||||||||||||
Selling and administrative expenses
|
77,629
|
70,543
|
10.0
|
%
|
303,540
|
271,935
|
11.6
|
%
|
||||||||||||||||
|
||||||||||||||||||||||||
Operating income
|
38,556
|
39,720
|
-2.9
|
%
|
172,362
|
191,208
|
-9.9
|
%
|
||||||||||||||||
Interest expense
|
3,830
|
3,665
|
16,147
|
16,901
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Earnings before income taxes
|
34,726
|
36,055
|
-3.7
|
%
|
156,215
|
174,307
|
-10.4
|
%
|
||||||||||||||||
Income taxes
|
6,677
|
8,834
|
42,920
|
50,399
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Net earnings
|
$
|
28,049
|
$
|
27,221
|
3.0
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%
|
$
|
113,295
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$
|
123,908
|
-8.6
|
%
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||||||||||||
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||||||||||||||||||||||||
Earnings per common share:
|
||||||||||||||||||||||||
Basic
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$
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0.56
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$
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0.55
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1.8
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%
|
$
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2.28
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$
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2.50
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-8.8
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%
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||||||||||||
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||||||||||||||||||||||||
Diluted
|
$
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0.56
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$
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0.55
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1.8
|
%
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$
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2.27
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$
|
2.49
|
-8.8
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%
|
||||||||||||
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||||||||||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||||||
Basic
|
49,796
|
49,538
|
0.5
|
%
|
49,755
|
49,596
|
0.3
|
%
|
||||||||||||||||
|
||||||||||||||||||||||||
Diluted
|
50,004
|
49,737
|
0.5
|
%
|
49,934
|
49,822
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0.2
|
%
|
|
Three Months Ended December 31,
|
|||||||||||||||||||
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||||||||||||||||||||
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Reported
2013 |
Restructuring
Impact |
Adjusted
2013 |
Reported
2012 |
% Change
|
|||||||||||||||
|
||||||||||||||||||||
Revenue
|
$
|
351,111
|
$
|
-
|
$
|
351,111
|
$
|
356,242
|
-1.4
|
%
|
||||||||||
|
||||||||||||||||||||
Cost of products sold
|
234,926
|
423
|
234,503
|
245,979
|
-4.7
|
%
|
||||||||||||||
Selling and administrative expenses
|
77,629
|
5,311
|
72,318
|
70,543
|
2.5
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%
|
||||||||||||||
|
||||||||||||||||||||
Operating income
|
38,556
|
(5,734
|
)
|
44,290
|
39,720
|
11.5
|
%
|
|||||||||||||
Interest expense
|
3,830
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-
|
3,830
|
3,665
|
||||||||||||||||
|
||||||||||||||||||||
Earnings before income taxes
|
34,726
|
(5,734
|
)
|
40,460
|
36,055
|
12.2
|
%
|
|||||||||||||
Income taxes
|
6,677
|
(2,264
|
)
|
8,941
|
8,834
|
|||||||||||||||
|
||||||||||||||||||||
Net earnings
|
$
|
28,049
|
$
|
(3,470
|
)
|
$
|
31,519
|
$
|
27,221
|
15.8
|
%
|
|||||||||
|
||||||||||||||||||||
Earnings per common share:
|
||||||||||||||||||||
Basic
|
$
|
0.56
|
$
|
(0.07
|
)
|
$
|
0.63
|
$
|
0.55
|
14.5
|
%
|
|||||||||
|
||||||||||||||||||||
Diluted
|
$
|
0.56
|
$
|
(0.07
|
)
|
$
|
0.63
|
$
|
0.55
|
14.5
|
%
|
|||||||||
|
||||||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||
Basic
|
49,796
|
49,796
|
49,538
|
0.5
|
%
|
|||||||||||||||
|
||||||||||||||||||||
Diluted
|
50,004
|
50,004
|
49,737
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0.5
|
%
|
Sensient Technologies Corporation
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Page 7 |
(In thousands, except percentages and per share amounts) |
|
|
Twelve Months Ended December 31,
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|||||||||||||||||||
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||||||||||||||||||||
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Reported
2013 |
Restructuring
Impact |
Adjusted
2013 |
Reported
2012 |
% Change
|
|||||||||||||||
|
||||||||||||||||||||
Revenue
|
$
|
1,467,550
|
$
|
-
|
$
|
1,467,550
|
$
|
1,459,050
|
0.6
|
%
|
||||||||||
|
||||||||||||||||||||
Cost of products sold
|
991,648
|
1,840
|
989,808
|
995,907
|
-0.6
|
%
|
||||||||||||||
Selling and administrative expenses
|
303,540
|
29,895
|
273,645
|
271,935
|
0.6
|
%
|
||||||||||||||
|
||||||||||||||||||||
Operating income
|
172,362
|
(31,735
|
)
|
204,097
|
191,208
|
6.7
|
%
|
|||||||||||||
Interest expense
|
16,147
|
-
|
16,147
|
16,901
|
||||||||||||||||
|
||||||||||||||||||||
Earnings before income taxes
|
156,215
|
(31,735
|
)
|
187,950
|
174,307
|
7.8
|
%
|
|||||||||||||
Income taxes
|
42,920
|
(9,776
|
)
|
52,696
|
50,399
|
|||||||||||||||
|
||||||||||||||||||||
Net earnings
|
$
|
113,295
|
$
|
(21,959
|
)
|
$
|
135,254
|
$
|
123,908
|
9.2
|
%
|
|||||||||
|
||||||||||||||||||||
Earnings per common share:
|
||||||||||||||||||||
Basic
|
$
|
2.28
|
$
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(0.44
|
)
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$
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2.72
|
$
|
2.50
|
8.8
|
%
|
|||||||||
|
||||||||||||||||||||
Diluted
|
$
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2.27
|
$
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(0.44
|
)
|
$
|
2.71
|
$
|
2.49
|
8.8
|
%
|
|||||||||
|
||||||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||
Basic
|
49,755
|
49,755
|
49,596
|
0.3
|
%
|
|||||||||||||||
|
||||||||||||||||||||
Diluted
|
49,934
|
49,934
|
49,822
|
0.2
|
%
|
Results by Segment
|
Three Months Ended December 31,
|
Twelve Months Ended December 31,
|
||||||||||||||||||||||
|
||||||||||||||||||||||||
Revenue
|
2013
|
2012
|
% Change
|
2013
|
2012
|
% Change
|
||||||||||||||||||
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
210,069
|
$
|
216,933
|
-3.2
|
%
|
$
|
881,298
|
$
|
875,281
|
0.7
|
%
|
||||||||||||
Color *
|
115,651
|
115,611
|
0.0
|
%
|
493,972
|
499,210
|
-1.0
|
%
|
||||||||||||||||
Corporate & Other
|
38,067
|
36,998
|
2.9
|
%
|
150,444
|
145,580
|
3.3
|
%
|
||||||||||||||||
Intersegment elimination
|
(12,676
|
)
|
(13,300
|
)
|
-4.7
|
%
|
(58,164
|
)
|
(61,021
|
)
|
-4.7
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Consolidated
|
$
|
351,111
|
$
|
356,242
|
-1.4
|
%
|
$
|
1,467,550
|
$
|
1,459,050
|
0.6
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Operating Income
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
29,170
|
$
|
28,663
|
1.8
|
%
|
$
|
122,410
|
$
|
122,997
|
-0.5
|
%
|
||||||||||||
Color *
|
23,085
|
19,859
|
16.2
|
%
|
103,601
|
96,406
|
7.5
|
%
|
||||||||||||||||
Corporate & Other
|
(13,699
|
)
|
(8,802
|
)
|
(53,649
|
)
|
(28,195
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Consolidated
|
$
|
38,556
|
$
|
39,720
|
-2.9
|
%
|
$
|
172,362
|
$
|
191,208
|
-9.9
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Consolidated Excluding Restructuring Charge
|
$
|
44,290
|
$
|
39,720
|
11.5
|
%
|
$
|
204,097
|
$
|
191,208
|
6.7
|
%
|
Sensient Technologies Corporation |
Page 8
|
(In thousands, except per share amounts) |
|
Consolidated Condensed Balance Sheets December 31,
|
2013
|
2012
|
||||||
|
||||||||
Current assets
|
$
|
789,825
|
$
|
751,354
|
||||
Goodwill and intangibles (net)
|
467,815
|
462,896
|
||||||
Property, plant and equipment (net)
|
565,308
|
514,708
|
||||||
Other assets
|
47,786
|
47,685
|
||||||
|
||||||||
Total Assets
|
$
|
1,870,734
|
$
|
1,776,643
|
||||
|
||||||||
Current liabilities
|
$
|
222,893
|
$
|
204,236
|
||||
Long-term debt
|
348,124
|
333,979
|
||||||
Accrued employee and retiree benefits
|
28,538
|
60,527
|
||||||
Other liabilities
|
28,495
|
24,003
|
||||||
Shareholders' equity
|
1,242,684
|
1,153,898
|
||||||
|
||||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,870,734
|
$
|
1,776,643
|
Consolidated Statements of Cash Flows
Twelve Months Ended December 31,
|
2013
|
2012
|
||||||
|
||||||||
Net cash provided by operating activities
|
$
|
153,553
|
$
|
139,366
|
||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(104,246
|
)
|
(103,806
|
)
|
||||
Proceeds from sale of assets
|
6,225
|
1,364
|
||||||
Other investing activity
|
(208
|
)
|
(242
|
)
|
||||
|
||||||||
Net cash used in investing activities
|
(98,229
|
)
|
(102,684
|
)
|
||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
194,973
|
73,903
|
||||||
Debt payments
|
(198,686
|
)
|
(58,052
|
)
|
||||
Purchase of treasury stock
|
-
|
(23,154
|
)
|
|||||
Dividends paid
|
(45,513
|
)
|
(43,426
|
)
|
||||
Proceeds from options exercised and other
|
1,007
|
1,957
|
||||||
|
||||||||
Net cash used in financing activities
|
(48,219
|
)
|
(48,772
|
)
|
||||
|
||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(2,331
|
)
|
4,297
|
|||||
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
4,774
|
(7,793
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
15,062
|
22,855
|
||||||
Cash and cash equivalents at end of period
|
$
|
19,836
|
$
|
15,062
|
Supplemental Information
Twelve Months Ended December 31,
|
2013
|
2012
|
||||||
|
||||||||
Depreciation and amortization
|
$
|
52,016
|
$
|
48,352
|
||||
|
||||||||
Dividends per share
|
$
|
0.91
|
$
|
0.87
|