WISCONSIN
|
1-7626
|
39-0561070
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS EmployerIdentification No.)
|
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | 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 Six Months Ended June 30, 2015. |
SENSIENT TECHNOLOGIES
CORPORATION
|
|||
(Registrant)
|
|||
By:
|
/s/ John L. Hammond
|
||
Name:
|
John L. Hammond
|
||
Title:
|
Senior Vice President, General
Counsel and Secretary
|
||
Date:
|
July 23, 2015
|
Exhibit 99.1 | Sensient Technologies Corporation Earnings Press Release for the Quarter and Six Months Ended June 30, 2015. |
Contact:
|
John Collopy
|
Sensient Technologies Corporation
|
Page 2
|
Earnings Release – Quarter Ended June 30, 2015
|
|
July 23, 2015
|
Sensient Technologies Corporation
|
Page 3
|
Earnings Release – Quarter Ended June 30, 2015
|
|
July 23, 2015
|
Sensient Technologies Corporation
|
Page 4
|
Earnings Release – Quarter Ended June 30, 2015
|
|
July 23, 2015
|
Sensient Technologies Corporation
|
Page 5
|
Earnings Release – Quarter Ended June 30, 2015
|
|
July 23, 2015
|
Sensient Technologies Corporation
|
Page 6
|
Earnings Release – Quarter Ended June 30, 2015
|
|
July 23, 2015
|
Sensient Technologies Corporation
|
Page 7
|
(In thousands, except percentages and per share amounts)
|
Consolidated Statements of Earnings
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
|||||||||||||||||||
Revenue
|
$
|
346,009
|
$
|
373,373
|
-7.3
|
%
|
$
|
692,235
|
$
|
740,498
|
-6.5
|
%
|
||||||||||||
Cost of products sold
|
227,854
|
243,965
|
-6.6
|
%
|
456,647
|
486,594
|
-6.2
|
%
|
||||||||||||||||
Selling and administrative expenses
|
73,088
|
79,664
|
-8.3
|
%
|
144,075
|
195,574
|
-26.3
|
%
|
||||||||||||||||
Operating income
|
45,067
|
49,744
|
-9.4
|
%
|
91,513
|
58,330
|
56.9
|
%
|
||||||||||||||||
Interest expense
|
4,106
|
3,718
|
8,021
|
7,849
|
||||||||||||||||||||
Earnings before income taxes
|
40,961
|
46,026
|
83,492
|
50,481
|
||||||||||||||||||||
Income taxes
|
11,419
|
15,879
|
23,215
|
17,703
|
||||||||||||||||||||
Earnings from continuing operations
|
29,542
|
30,147
|
60,277
|
32,778
|
||||||||||||||||||||
Loss from discontinued operations, net of tax
|
(92
|
)
|
(1,086
|
)
|
(301
|
)
|
(5,792
|
)
|
||||||||||||||||
Net earnings
|
$
|
29,450
|
$
|
29,061
|
$
|
59,976
|
$
|
26,986
|
||||||||||||||||
Earnings per share of common stock:
|
||||||||||||||||||||||||
Basic:
|
||||||||||||||||||||||||
Continuing operations
|
$
|
0.64
|
$
|
0.62
|
$
|
1.29
|
$
|
0.67
|
||||||||||||||||
Discontinued operations
|
-
|
(0.02
|
)
|
(0.01
|
)
|
(0.12
|
)
|
|||||||||||||||||
Earnings per share of common stock
|
$
|
0.64
|
$
|
0.60
|
$
|
1.29
|
$
|
0.55
|
||||||||||||||||
Diluted:
|
||||||||||||||||||||||||
Continuing operations
|
$
|
0.64
|
$
|
0.62
|
$
|
1.28
|
$
|
0.66
|
||||||||||||||||
Discontinued operations
|
-
|
(0.02
|
)
|
(0.01
|
)
|
(0.12
|
)
|
|||||||||||||||||
Earnings per share of common stock
|
$
|
0.63
|
$
|
0.59
|
$
|
1.28
|
$
|
0.55
|
||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||||||
Basic
|
46,168
|
48,665
|
-5.1
|
%
|
46,670
|
49,256
|
-5.3
|
%
|
||||||||||||||||
Diluted
|
46,470
|
48,953
|
-5.1
|
%
|
46,984
|
49,512
|
-5.1
|
%
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
|||||||||||||||||||
Operating income from continuing operations (GAAP)
|
$
|
45,067
|
$
|
49,744
|
-9.4
|
%
|
$
|
91,513
|
$
|
58,330
|
56.9
|
%
|
||||||||||||
Restructuring - Cost of products sold
|
140
|
-
|
281
|
-
|
||||||||||||||||||||
Restructuring & other - Selling and administrative
|
10,337
|
11,568
|
17,311
|
57,755
|
||||||||||||||||||||
Adjusted operating income
|
$
|
55,544
|
$
|
61,312
|
-9.4
|
%
|
$
|
109,105
|
$
|
116,085
|
-6.0
|
%
|
||||||||||||
Net earnings from continuing operations (GAAP)
|
$
|
29,542
|
$
|
30,147
|
-2.0
|
%
|
$
|
60,277
|
$
|
32,778
|
83.9
|
%
|
||||||||||||
Restructuring & other, before tax
|
10,477
|
11,568
|
17,592
|
57,755
|
||||||||||||||||||||
Tax impact of restructuring & other
|
(2,766
|
)
|
(1,848
|
)
|
(4,363
|
)
|
(14,960
|
)
|
||||||||||||||||
Adjusted net earnings
|
$
|
37,253
|
$
|
39,867
|
-6.6
|
%
|
$
|
73,506
|
$
|
75,573
|
-2.7
|
%
|
||||||||||||
Diluted EPS from continuing operations (GAAP)
|
$
|
0.64
|
$
|
0.62
|
3.2
|
%
|
$
|
1.28
|
$
|
0.66
|
93.9
|
%
|
||||||||||||
Restructuring & other, net of tax
|
0.17
|
0.20
|
0.28
|
0.86
|
||||||||||||||||||||
Adjusted diluted EPS
|
$
|
0.80
|
$
|
0.81
|
-1.2
|
%
|
$
|
1.56
|
$
|
1.53
|
2.0
|
%
|
Sensient Technologies Corporation
|
Page 8
|
(In thousands, except per share amounts)
|
Results by Segment
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
Revenue
|
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
||||||||||||||||||
Flavors & Fragrances
|
$
|
204,632
|
$
|
217,490
|
-5.9
|
%
|
$
|
410,610
|
$
|
431,823
|
-4.9
|
%
|
||||||||||||
Color
|
119,349
|
132,234
|
-9.7
|
%
|
239,864
|
265,225
|
-9.6
|
%
|
||||||||||||||||
Corporate & Other
|
33,907
|
35,385
|
-4.2
|
%
|
65,528
|
67,626
|
-3.1
|
%
|
||||||||||||||||
Intersegment elimination
|
(11,879
|
)
|
(11,736
|
)
|
(23,767
|
)
|
(24,176
|
)
|
||||||||||||||||
Consolidated
|
$
|
346,009
|
$
|
373,373
|
-7.3
|
%
|
$
|
692,235
|
$
|
740,498
|
-6.5
|
%
|
||||||||||||
Operating Income
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
32,526
|
$
|
34,144
|
-4.7
|
%
|
$
|
62,985
|
$
|
64,388
|
-2.2
|
%
|
||||||||||||
Color
|
24,808
|
30,726
|
-19.3
|
%
|
50,947
|
60,500
|
-15.8
|
%
|
||||||||||||||||
Corporate & Other
|
(12,267
|
)
|
(15,126
|
)
|
(22,419
|
)
|
(66,558
|
)
|
||||||||||||||||
Consolidated
|
$
|
45,067
|
$
|
49,744
|
-9.4
|
%
|
$
|
91,513
|
$
|
58,330
|
56.9
|
%
|
Consolidated Condensed Balance Sheets
|
||||||||
June 30,
|
2015
|
2014
|
||||||
Cash and cash equivalents
|
$
|
21,785
|
$
|
28,428
|
||||
Trade accounts receivable, net
|
248,110
|
265,641
|
||||||
Inventories
|
428,444
|
479,450
|
||||||
Other current assets
|
62,459
|
74,373
|
||||||
Total Current Assets
|
760,798
|
847,892
|
||||||
Goodwill & intangible assets (net)
|
423,919
|
469,248
|
||||||
Property, plant, and equipment (net)
|
476,816
|
520,027
|
||||||
Other assets
|
72,097
|
89,305
|
||||||
Total Assets
|
$
|
1,733,630
|
$
|
1,926,472
|
||||
Trade accounts payable
|
$
|
106,960
|
$
|
98,693
|
||||
Short term debt
|
24,073
|
22,521
|
||||||
Other current liabilities
|
99,772
|
126,992
|
||||||
Total Current Liabilities
|
230,805
|
248,206
|
||||||
Long-term debt
|
549,475
|
472,105
|
||||||
Accrued employee and retiree benefits
|
25,498
|
27,145
|
||||||
Other liabilities
|
11,620
|
32,521
|
||||||
Shareholders' Equity
|
916,232
|
1,146,495
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,733,630
|
$
|
1,926,472
|
Sensient Technologies Corporation
|
Page 9
|
(In thousands, except per share amounts)
|
Consolidated Statements of Cash Flows
|
||||||||
Three Months Ended June 30,
|
2015
|
2014
|
||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
29,450
|
$
|
29,061
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
11,874
|
12,971
|
||||||
Stock-based compensation
|
374
|
1,827
|
||||||
Loss on assets
|
3,680
|
9,178
|
||||||
Deferred income taxes
|
(1,350
|
)
|
815
|
|||||
Changes in operating assets and liabilities
|
2,260
|
(4,248
|
)
|
|||||
Net cash provided by operating activities
|
46,288
|
49,604
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(23,539
|
)
|
(15,041
|
)
|
||||
Proceeds from sale of assets
|
34
|
11
|
||||||
Acquisition of new business
|
(8,393
|
)
|
-
|
|||||
Other investing activity
|
(77
|
)
|
(526
|
)
|
||||
Net cash used in investing activities
|
(31,975
|
)
|
(15,556
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
79,128
|
125,487
|
||||||
Debt payments
|
(13,060
|
)
|
(30,382
|
)
|
||||
Purchase of treasury stock
|
(65,077
|
)
|
(106,029
|
)
|
||||
Dividends paid
|
(11,668
|
)
|
(12,270
|
)
|
||||
Proceeds from options exercised and other
|
370
|
65
|
||||||
Net cash used in financing activities
|
(10,307
|
)
|
(23,129
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(304
|
)
|
46
|
|||||
Net increase in cash and cash equivalents
|
3,702
|
10,965
|
||||||
Cash and cash equivalents at beginning of period
|
18,083
|
17,463
|
||||||
Cash and cash equivalents at end of period
|
$
|
21,785
|
$
|
28,428
|
Supplemental Information
|
||||||||
Three Months Ended June 30,
|
2015
|
2014
|
||||||
Depreciation and amortization
|
$
|
11,874
|
$
|
12,971
|
||||
Dividends paid per share
|
$
|
0.25
|
$
|
0.25
|