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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☐ | 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)) |
☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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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, 2015. |
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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October 21, 2015
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Exhibit 99.1 | Sensient Technologies Corporation Earnings Press Release for the Quarter and Nine Months Ended September 30, 2015. |
Contact:
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John Collopy
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Consolidated Statements of Earnings
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
|||||||||||||||||||
Revenue
|
$
|
344,533
|
$
|
364,504
|
-5.5
|
%
|
$
|
1,036,768
|
$
|
1,105,002
|
-6.2
|
%
|
||||||||||||
Cost of products sold
|
231,761
|
243,003
|
-4.6
|
%
|
688,408
|
729,597
|
-5.6
|
%
|
||||||||||||||||
Selling and administrative expenses
|
69,552
|
85,407
|
-18.6
|
%
|
213,627
|
280,981
|
-24.0
|
%
|
||||||||||||||||
Operating income
|
43,220
|
36,094
|
19.7
|
%
|
134,733
|
94,424
|
42.7
|
%
|
||||||||||||||||
Interest expense
|
4,295
|
4,016
|
12,316
|
11,866
|
||||||||||||||||||||
Earnings before income taxes
|
38,925
|
32,078
|
122,417
|
82,558
|
||||||||||||||||||||
Income taxes
|
11,287
|
9,414
|
34,502
|
27,116
|
||||||||||||||||||||
Earnings from continuing operations
|
27,638
|
22,664
|
87,915
|
55,442
|
||||||||||||||||||||
Loss from discontinued operations, net of tax
|
(47
|
)
|
(1,359
|
)
|
(348
|
)
|
(7,151
|
)
|
||||||||||||||||
Net earnings
|
$
|
27,591
|
$
|
21,305
|
29.5
|
%
|
$
|
87,567
|
$
|
48,291
|
81.3
|
%
|
||||||||||||
Earnings per share of common stock:
|
||||||||||||||||||||||||
Basic:
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||||||||||||||||||||||||
Continuing operations
|
$
|
0.61
|
$
|
0.47
|
$
|
1.90
|
$
|
1.14
|
||||||||||||||||
Discontinued operations
|
-
|
(0.03
|
)
|
(0.01
|
)
|
(0.15
|
)
|
|||||||||||||||||
Earnings per share of common stock
|
$
|
0.61
|
$
|
0.44
|
$
|
1.89
|
$
|
0.99
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||||||||||||||||
Diluted:
|
||||||||||||||||||||||||
Continuing operations
|
$
|
0.61
|
$
|
0.47
|
$
|
1.89
|
$
|
1.13
|
||||||||||||||||
Discontinued operations
|
-
|
(0.03
|
)
|
(0.01
|
)
|
(0.15
|
)
|
|||||||||||||||||
Earnings per share of common stock
|
$
|
0.60
|
$
|
0.44
|
$
|
1.88
|
$
|
0.98
|
||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||||||
Basic
|
45,392
|
47,902
|
46,239
|
48,799
|
||||||||||||||||||||
Diluted
|
45,675
|
48,230
|
46,543
|
49,080
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
|||||||||||||||||||
Operating income from continuing operations (GAAP)
|
$
|
43,220
|
$
|
36,094
|
19.7
|
%
|
$
|
134,733
|
$
|
94,424
|
42.7
|
%
|
||||||||||||
Restructuring - Cost of products sold
|
2,814
|
1,914
|
3,095
|
1,914
|
||||||||||||||||||||
Restructuring & other - Selling and administrative
|
8,156
|
19,118
|
25,467
|
76,873
|
||||||||||||||||||||
Adjusted operating income
|
$
|
54,190
|
$
|
57,126
|
-5.1
|
%
|
$
|
163,295
|
$
|
173,211
|
-5.7
|
%
|
||||||||||||
Net earnings from continuing operations (GAAP)
|
$
|
27,638
|
$
|
22,664
|
21.9
|
%
|
$
|
87,915
|
$
|
55,442
|
58.6
|
%
|
||||||||||||
Restructuring & other, before tax
|
10,970
|
21,032
|
28,562
|
78,787
|
||||||||||||||||||||
Tax impact of restructuring & other
|
(3,396
|
)
|
(5,941
|
)
|
(7,759
|
)
|
(20,901
|
)
|
||||||||||||||||
Adjusted net earnings
|
$
|
35,212
|
$
|
37,755
|
-6.7
|
%
|
$
|
108,718
|
$
|
113,328
|
-4.1
|
%
|
||||||||||||
Diluted EPS from continuing operations (GAAP)
|
$
|
0.61
|
$
|
0.47
|
29.8
|
%
|
$
|
1.89
|
$
|
1.13
|
67.3
|
%
|
||||||||||||
Restructuring & other, net of tax
|
0.17
|
0.31
|
0.45
|
1.18
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||||||||||||||||||||
Adjusted diluted EPS
|
$
|
0.77
|
$
|
0.78
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-1.3
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%
|
$
|
2.34
|
$
|
2.31
|
1.3
|
%
|
Results by Segment
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
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||||||||||||||||||||||
Revenue
|
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
||||||||||||||||||
Flavors & Fragrances
|
$
|
207,373
|
$
|
216,635
|
-4.3
|
%
|
$
|
617,983
|
$
|
648,458
|
-4.7
|
%
|
||||||||||||
Color
|
116,446
|
128,126
|
-9.1
|
%
|
356,310
|
393,351
|
-9.4
|
%
|
||||||||||||||||
Corporate & Other
|
31,471
|
32,753
|
-3.9
|
%
|
96,999
|
100,379
|
-3.4
|
%
|
||||||||||||||||
Intersegment elimination
|
(10,757
|
)
|
(13,010
|
)
|
(34,524
|
)
|
(37,186
|
)
|
||||||||||||||||
Consolidated
|
$
|
344,533
|
$
|
364,504
|
-5.5
|
%
|
$
|
1,036,768
|
$
|
1,105,002
|
-6.2
|
%
|
||||||||||||
Operating Income
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
31,369
|
$
|
30,613
|
2.5
|
%
|
$
|
94,354
|
$
|
95,001
|
-0.7
|
%
|
||||||||||||
Color
|
22,859
|
28,799
|
-20.6
|
%
|
73,806
|
89,299
|
-17.3
|
%
|
||||||||||||||||
Corporate & Other
|
(11,008
|
)
|
(23,318
|
)
|
(33,427
|
)
|
(89,876
|
)
|
||||||||||||||||
Consolidated
|
$
|
43,220
|
$
|
36,094
|
19.7
|
%
|
$
|
134,733
|
$
|
94,424
|
42.7
|
%
|
Consolidated Condensed Balance Sheets
September 30, |
2015
|
2014
|
||||||
Cash and cash equivalents
|
$
|
24,180
|
$
|
25,789
|
||||
Trade accounts receivable, net
|
246,166
|
243,894
|
||||||
Inventories
|
442,352
|
475,011
|
||||||
Other current assets
|
65,844
|
75,310
|
||||||
Total Current Assets
|
778,542
|
820,004
|
||||||
Goodwill & intangible assets (net)
|
418,019
|
446,637
|
||||||
Property, plant, and equipment (net)
|
475,940
|
489,720
|
||||||
Other assets
|
71,148
|
70,870
|
||||||
Total Assets
|
$
|
1,743,649
|
$
|
1,827,231
|
||||
Trade accounts payable
|
$
|
110,077
|
$
|
97,128
|
||||
Short term debt
|
24,945
|
18,953
|
||||||
Other current liabilities
|
95,879
|
113,278
|
||||||
Total Current Liabilities
|
230,901
|
229,359
|
||||||
Long-term debt
|
604,629
|
441,610
|
||||||
Accrued employee and retiree benefits
|
24,684
|
21,382
|
||||||
Other liabilities
|
11,305
|
34,580
|
||||||
Shareholders' Equity
|
872,130
|
1,100,300
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,743,649
|
$
|
1,827,231
|
Consolidated Statements of Cash Flows
Three Months Ended September 30, |
2015
|
2014
|
||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
27,591
|
$
|
21,305
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
12,116
|
13,066
|
||||||
Stock-based compensation
|
(697
|
)
|
1,186
|
|||||
Loss on assets
|
2,557
|
18,293
|
||||||
Deferred income taxes
|
1,434
|
(1,972
|
)
|
|||||
Changes in operating assets and liabilities
|
(26,404
|
)
|
5,792
|
|||||
Net cash provided by operating activities
|
16,597
|
57,670
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(18,538
|
)
|
(16,974
|
)
|
||||
Proceeds from sale of assets
|
199
|
(4
|
)
|
|||||
Other investing activity
|
(67
|
)
|
(65
|
)
|
||||
Net cash used in investing activities
|
(18,406
|
)
|
(17,043
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
68,617
|
16,319
|
||||||
Debt payments
|
(11,753
|
)
|
(42,158
|
)
|
||||
Purchase of treasury stock
|
(37,896
|
)
|
-
|
|||||
Dividends paid
|
(12,301
|
)
|
(12,052
|
)
|
||||
Proceeds from options exercised and other
|
-
|
180
|
||||||
Net cash used in financing activities
|
6,667
|
(37,711
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(2,463
|
)
|
(5,555
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
2,395
|
(2,639
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
21,785
|
28,428
|
||||||
Cash and cash equivalents at end of period
|
$
|
24,180
|
$
|
25,789
|
Supplemental Information
Three Months Ended September 30, |
2015
|
2014
|
||||||
Depreciation and amortization
|
$
|
12,116
|
$
|
13,066
|
||||
Dividends paid per share
|
$
|
0.27
|
$
|
0.25
|