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: | Sensient Technologies Corporation Earnings Press Release for the Quarter and Nine Months Ended September 30, 2014. |
SENSIENT TECHNOLOGIES
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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
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||
Counsel and Secretary
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Date:
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October 23, 2014
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Exhibit 99.1 | Sensient Technologies Corporation Earnings Press Release for the Quarter and Nine Months Ended September 30, 2014. |
Sensient Technologies Corporation
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Page 2
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Earnings Release – Quarter Ended September 30, 2014
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October 23, 2014
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Sensient Technologies Corporation
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Page 3
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Earnings Release – Quarter Ended September 30, 2014
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October 23, 2014
|
Sensient Technologies Corporation
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Page 4
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Earnings Release – Quarter Ended September 30, 2014
|
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October 23, 2014
|
Sensient Technologies Corporation
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Page 5
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Earnings Release – Quarter Ended September 30, 2014
|
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October 23, 2014
|
Sensient Technologies Corporation
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Page 6
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Earnings Release – Quarter Ended September 30, 2014
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October 23, 2014
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Sensient Technologies Corporation
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Page 7
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Consolidated Statements of Earnings
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Three Months Ended September 30,
|
Nine Months Ended September 30,
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||||||||||||||||||||||
2014
|
2013
|
% Change
|
2014
|
2013
|
% Change
|
|||||||||||||||||||
Revenue
|
$
|
364,504
|
$
|
370,457
|
-1.6
|
%
|
$
|
1,105,002
|
$
|
1,112,006
|
-0.6
|
%
|
||||||||||||
Cost of products sold
|
243,003
|
250,645
|
-3.0
|
%
|
729,597
|
752,891
|
-3.1
|
%
|
||||||||||||||||
Selling and administrative expenses
|
85,407
|
70,685
|
20.8
|
%
|
280,981
|
224,231
|
25.3
|
%
|
||||||||||||||||
Operating income
|
36,094
|
49,127
|
-26.5
|
%
|
94,424
|
134,884
|
-30.0
|
%
|
||||||||||||||||
Interest expense
|
4,016
|
4,048
|
11,866
|
12,317
|
||||||||||||||||||||
Earnings before income taxes
|
32,078
|
45,079
|
82,558
|
122,567
|
||||||||||||||||||||
Income taxes
|
9,414
|
13,315
|
27,116
|
36,558
|
||||||||||||||||||||
Earnings from continuing operations
|
22,664
|
31,764
|
55,442
|
86,009
|
||||||||||||||||||||
Loss from discontinued operations, net of tax
|
(1,359
|
)
|
(239
|
)
|
(7,151
|
)
|
(763
|
)
|
||||||||||||||||
Net earnings
|
$
|
21,305
|
$
|
31,525
|
$
|
48,291
|
$
|
85,246
|
||||||||||||||||
Earnings per share of common stock:
|
||||||||||||||||||||||||
Basic:
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||||||||||||||||||||||||
Continuing operations
|
$
|
0.47
|
$
|
0.64
|
-26.6
|
%
|
$
|
1.14
|
$
|
1.73
|
-34.1
|
%
|
||||||||||||
Discontinued operations
|
(0.03
|
)
|
-
|
(0.15
|
)
|
(0.02
|
)
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|||||||||||||||||
Earnings per share of common stock
|
$
|
0.44
|
$
|
0.63
|
-30.2
|
%
|
$
|
0.99
|
$
|
1.71
|
-42.1
|
%
|
||||||||||||
Diluted:
|
||||||||||||||||||||||||
Continuing operations
|
$
|
0.47
|
$
|
0.64
|
-26.6
|
%
|
$
|
1.13
|
$
|
1.72
|
-34.3
|
%
|
||||||||||||
Discontinued operations
|
(0.03
|
)
|
-
|
(0.15
|
)
|
(0.02
|
)
|
|||||||||||||||||
Earnings per share of common stock
|
$
|
0.44
|
$
|
0.63
|
-30.2
|
%
|
$
|
0.98
|
$
|
1.71
|
-42.7
|
%
|
||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||||||
Basic
|
47,902
|
49,761
|
-3.7
|
%
|
48,799
|
49,741
|
-1.9
|
%
|
||||||||||||||||
Diluted
|
48,230
|
49,946
|
-3.4
|
%
|
49,080
|
49,910
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-1.7
|
%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2014
|
2013
|
% Change
|
2014
|
2013
|
% Change
|
|||||||||||||||||||
Operating income from continuing operations (GAAP)
|
$
|
36,094
|
$
|
49,127
|
-26.5
|
%
|
$
|
94,424
|
$
|
134,884
|
-30.0
|
%
|
||||||||||||
Restructuring - Cost of products sold
|
1,914
|
545
|
1,914
|
1,417
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||||||||||||||||||||
Restructuring & other - Selling and administrative
|
19,118
|
6,041
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76,873
|
24,584
|
||||||||||||||||||||
Adjusted operating income
|
$
|
57,126
|
$
|
55,713
|
2.5
|
%
|
$
|
173,211
|
$
|
160,885
|
7.7
|
%
|
||||||||||||
Net earnings from continuing operations (GAAP)
|
$
|
22,664
|
$
|
31,764
|
-28.6
|
%
|
$
|
55,442
|
$
|
86,009
|
-35.5
|
%
|
||||||||||||
Restructuring & other, before tax
|
21,032
|
6,586
|
78,787
|
26,001
|
||||||||||||||||||||
Tax impact of restructuring & other
|
(5,941
|
)
|
(2,206
|
)
|
(20,901
|
)
|
(7,512
|
)
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||||||||||||||||
Adjusted net earnings
|
$
|
37,755
|
$
|
36,144
|
4.5
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%
|
$
|
113,328
|
$
|
104,498
|
8.4
|
%
|
||||||||||||
Diluted EPS from continuing operations (GAAP)
|
$
|
0.47
|
$
|
0.64
|
-26.6
|
%
|
$
|
1.13
|
$
|
1.72
|
-34.3
|
%
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||||||||||||
Restructuring & other, net of tax
|
0.31
|
0.09
|
1.18
|
0.37
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||||||||||||||||||||
Adjusted diluted EPS
|
$
|
0.78
|
$
|
0.72
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8.3
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%
|
$
|
2.31
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$
|
2.09
|
10.5
|
%
|
Sensient Technologies Corporation
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Page 8
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Results by Segment
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Three Months Ended September 30,
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Nine Months Ended September 30,
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||||||||||||||||||||||
Revenue
|
2014
|
2013
|
% Change
|
2014
|
2013
|
% Change
|
||||||||||||||||||
Flavors & Fragrances
|
$
|
215,502
|
$
|
225,002
|
-4.2
|
%
|
$
|
645,073
|
$
|
667,469
|
-3.4
|
%
|
||||||||||||
Color
|
127,842
|
124,057
|
3.1
|
%
|
392,406
|
378,870
|
3.6
|
%
|
||||||||||||||||
Corporate & Other
|
36,201
|
36,192
|
0.0
|
%
|
110,535
|
108,721
|
1.7
|
%
|
||||||||||||||||
Intersegment elimination
|
(15,041
|
)
|
(14,794
|
)
|
(43,012
|
)
|
(43,054
|
)
|
||||||||||||||||
Consolidated
|
$
|
364,504
|
$
|
370,457
|
-1.6
|
%
|
$
|
1,105,002
|
$
|
1,112,006
|
-0.6
|
%
|
||||||||||||
Operating Income
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
30,169
|
$
|
31,205
|
-3.3
|
%
|
$
|
93,662
|
$
|
91,595
|
2.3
|
%
|
||||||||||||
Color
|
29,100
|
27,902
|
4.3
|
%
|
89,960
|
83,758
|
7.4
|
%
|
||||||||||||||||
Corporate & Other
|
(23,175
|
)
|
(9,980
|
)
|
(89,198
|
)
|
(40,469
|
)
|
||||||||||||||||
Consolidated
|
$
|
36,094
|
$
|
49,127
|
-26.5
|
%
|
$
|
94,424
|
$
|
134,884
|
-30.0
|
%
|
Consolidated Condensed Balance Sheets
|
||||||||
September 30,
|
2014
|
2013
|
||||||
Current assets
|
$
|
820,004
|
$
|
789,408
|
||||
Goodwill & intangible assets (net)
|
446,637
|
464,541
|
||||||
Property, plant, and equipment (net)
|
489,720
|
547,467
|
||||||
Other assets
|
70,870
|
45,388
|
||||||
Total Assets
|
$
|
1,827,231
|
$
|
1,846,804
|
||||
Current liabilities
|
$
|
229,359
|
$
|
240,179
|
||||
Long-term debt
|
441,610
|
334,852
|
||||||
Accrued employee and retiree benefits
|
21,382
|
43,222
|
||||||
Other liabilities
|
34,580
|
18,396
|
||||||
Shareholders' Equity
|
1,100,300
|
1,210,155
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,827,231
|
$
|
1,846,804
|
Sensient Technologies Corporation
|
Page 9
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Consolidated Statements of Cash Flows
|
||||||||
Three Months Ended September 30,
|
2014
|
2013
|
||||||
Net cash provided by operating activities
|
$
|
57,670
|
$
|
47,725
|
||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(16,974
|
)
|
(22,006
|
)
|
||||
Proceeds from sale of assets
|
(4
|
)
|
5,900
|
|||||
Other investing activity
|
(65
|
)
|
(33
|
)
|
||||
Net cash used in investing activities
|
(17,043
|
)
|
(16,139
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
16,319
|
4,978
|
||||||
Debt payments
|
(42,158
|
)
|
(27,238
|
)
|
||||
Dividends paid
|
(12,052
|
)
|
(11,509
|
)
|
||||
Proceeds from options exercised and other
|
180
|
93
|
||||||
Net cash used in financing activities
|
(37,711
|
)
|
(33,676
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(5,555
|
)
|
(320
|
)
|
||||
Net decrease in cash and cash equivalents
|
(2,639
|
)
|
(2,410
|
)
|
||||
Cash and cash equivalents at beginning of period
|
28,428
|
26,665
|
||||||
Cash and cash equivalents at end of period
|
$
|
25,789
|
$
|
24,255
|
Supplemental Information
|
||||||||
Three Months Ended September 30,
|
2014
|
2013
|
||||||
Depreciation and amortization
|
$
|
13,066
|
$
|
13,158
|
||||
Dividends paid per share
|
$
|
0.25
|
$
|
0.23
|