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)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02
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RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
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ITEM 9.01
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FINANCIAL STATEMENTS AND EXHIBITS.
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Exhibit 99.1:
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Sensient Technologies Corporation Earnings Press Release for the Quarter and Six Months Ended June 30, 2016.
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SENSIENT TECHNOLOGIES CORPORATION
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|||
(Registrant)
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|||
By:
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/s/ John J. Manning
|
||
Name:
|
John J. Manning
|
||
Title:
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Vice President, General Counsel and Secretary
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||
Date:
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July 21, 2016
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Sensient Technologies Corporation Earnings Press Release for the Quarter and Six Months Ended June 30, 2016.
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Contact:
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John Collopy
(414) 347-3706
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Sensient Technologies Corporation
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Page 2
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Earnings Release – Quarter Ended June 30, 2016
|
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July 21, 2016
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Sensient Technologies Corporation
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Page 3
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Earnings Release – Quarter Ended June 30, 2016
|
|
July 21, 2016
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Sensient Technologies Corporation
|
Page 4
|
Earnings Release – Quarter Ended June 30, 2016
|
|
July 21, 2016
|
Sensient Technologies Corporation
|
Page 5
|
Earnings Release – Quarter Ended June 30, 2016
|
|
July 21, 2016
|
Sensient Technologies Corporation
|
Page 6
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Earnings Release – Quarter Ended June 30, 2016
|
|
July 21, 2016
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Sensient Technologies Corporation
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Page 7
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(In thousands, except percentages and per share amounts)
|
Consolidated Statements of Earnings
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
2016
|
2015
|
% Change
|
2016
|
2015
|
% Change
|
|||||||||||||||||||
Revenue
|
$
|
360,836
|
$
|
346,009
|
4.3
|
%
|
$
|
703,304
|
$
|
692,235
|
1.6
|
%
|
||||||||||||
Cost of products sold
|
236,402
|
227,854
|
3.8
|
%
|
463,027
|
456,647
|
1.4
|
%
|
||||||||||||||||
Selling and administrative expenses
|
80,769
|
73,088
|
10.5
|
%
|
149,093
|
144,075
|
3.5
|
%
|
||||||||||||||||
Operating income
|
43,665
|
45,067
|
-3.1
|
%
|
91,184
|
91,513
|
-0.4
|
%
|
||||||||||||||||
Interest expense
|
4,637
|
4,106
|
9,437
|
8,021
|
||||||||||||||||||||
Earnings before income taxes
|
39,028
|
40,961
|
81,747
|
83,492
|
||||||||||||||||||||
Income taxes
|
14,277
|
11,419
|
25,803
|
23,215
|
||||||||||||||||||||
Earnings from continuing operations
|
24,751
|
29,542
|
55,944
|
60,277
|
||||||||||||||||||||
Gain (loss) from discontinued operations, net of tax
|
3,365
|
(92
|
)
|
3,343
|
(301
|
)
|
||||||||||||||||||
Net earnings
|
$
|
28,116
|
$
|
29,450
|
-4.5
|
%
|
$
|
59,287
|
$
|
59,976
|
-1.1
|
%
|
||||||||||||
Earnings per share of common stock:
|
||||||||||||||||||||||||
Basic:
|
||||||||||||||||||||||||
Continuing operations
|
$
|
0.56
|
$
|
0.64
|
$
|
1.25
|
$
|
1.29
|
||||||||||||||||
Discontinued operations
|
0.08
|
-
|
0.07
|
(0.01
|
)
|
|||||||||||||||||||
Earnings per share of common stock
|
$
|
0.63
|
$
|
0.64
|
$
|
1.33
|
$
|
1.29
|
||||||||||||||||
Diluted:
|
||||||||||||||||||||||||
Continuing operations
|
$
|
0.55
|
$
|
0.64
|
$
|
1.25
|
$
|
1.28
|
||||||||||||||||
Discontinued operations
|
0.08
|
-
|
0.07
|
(0.01
|
)
|
|||||||||||||||||||
Earnings per share of common stock
|
$
|
0.63
|
$
|
0.63
|
$
|
1.32
|
$
|
1.28
|
||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||||||
Basic
|
44,562
|
46,168
|
44,640
|
46,670
|
||||||||||||||||||||
Diluted
|
44,822
|
46,470
|
44,902
|
46,984
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2016
|
2015
|
% Change
|
2016
|
2015
|
% Change
|
|||||||||||||||||||
Operating income from continuing operations (GAAP)
|
$
|
43,665
|
$
|
45,067
|
-3.1
|
%
|
$
|
91,184
|
$
|
91,513
|
-0.4
|
%
|
||||||||||||
Restructuring - Cost of products sold
|
166
|
140
|
810
|
281
|
||||||||||||||||||||
Restructuring - Selling and administrative
|
3,109
|
9,482
|
5,807
|
16,456
|
||||||||||||||||||||
Other - Selling and administrative
|
10,292
|
855
|
10,292
|
855
|
||||||||||||||||||||
Adjusted operating income
|
$
|
57,232
|
$
|
55,544
|
3.0
|
%
|
$
|
108,093
|
$
|
109,105
|
-0.9
|
%
|
||||||||||||
Net earnings from continuing operations (GAAP)
|
$
|
24,751
|
$
|
29,542
|
-16.2
|
%
|
$
|
55,944
|
$
|
60,277
|
-7.2
|
%
|
||||||||||||
Restructuring and other, before tax
|
13,567
|
10,477
|
16,909
|
17,592
|
||||||||||||||||||||
Tax impact of restructuring and other
|
(738
|
)
|
(2,766
|
)
|
(1,600
|
)
|
(4,363
|
)
|
||||||||||||||||
Adjusted net earnings
|
$
|
37,580
|
$
|
37,253
|
0.9
|
%
|
$
|
71,253
|
$
|
73,506
|
-3.1
|
%
|
||||||||||||
Diluted EPS from continuing operations (GAAP)
|
$
|
0.55
|
$
|
0.64
|
-14.1
|
%
|
$
|
1.25
|
$
|
1.28
|
-2.3
|
%
|
||||||||||||
Restructuring and other, net of tax
|
0.29
|
0.17
|
0.34
|
0.28
|
||||||||||||||||||||
Adjusted diluted EPS
|
$
|
0.84
|
$
|
0.80
|
5.0
|
%
|
$
|
1.59
|
$
|
1.56
|
1.9
|
%
|
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
|
2016
|
2015
|
% Change
|
2016
|
2015
|
% Change
|
||||||||||||||||||
Flavors & Fragrances
|
$
|
209,327
|
$
|
204,632
|
2.3
|
%
|
$
|
407,666
|
$
|
410,610
|
-0.7
|
%
|
||||||||||||
Color
|
131,596
|
121,850
|
8.0
|
%
|
257,630
|
244,048
|
5.6
|
%
|
||||||||||||||||
Asia Pacific
|
31,823
|
29,749
|
7.0
|
%
|
61,530
|
58,552
|
5.1
|
%
|
||||||||||||||||
Intersegment elimination
|
(11,910
|
)
|
(10,222
|
)
|
(23,522
|
)
|
(20,975
|
)
|
||||||||||||||||
Consolidated
|
$
|
360,836
|
$
|
346,009
|
4.3
|
%
|
$
|
703,304
|
$
|
692,235
|
1.6
|
%
|
Operating Income
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
35,307
|
$
|
32,526
|
8.6
|
%
|
$
|
62,817
|
$
|
62,985
|
-0.3
|
%
|
||||||||||||
Color
|
28,004
|
25,528
|
9.7
|
%
|
55,848
|
51,791
|
7.8
|
%
|
||||||||||||||||
Asia Pacific
|
6,112
|
6,094
|
0.3
|
%
|
12,117
|
11,745
|
3.2
|
%
|
||||||||||||||||
Corporate & Other
|
(25,758
|
)
|
(19,081
|
)
|
(39,598
|
)
|
(35,008
|
)
|
||||||||||||||||
Consolidated
|
$
|
43,665
|
$
|
45,067
|
-3.1
|
%
|
$
|
91,184
|
$
|
91,513
|
-0.4
|
%
|
Consolidated Condensed Balance Sheets
June 30 |
2016
|
2015
|
||||||
Cash and cash equivalents
|
$
|
20,193
|
$
|
21,785
|
||||
Trade accounts receivable, net
|
254,635
|
248,110
|
||||||
Inventories
|
381,945
|
428,444
|
||||||
Other current assets
|
92,628
|
41,996
|
||||||
Total Current Assets
|
749,401
|
740,335
|
||||||
Goodwill & intangible assets (net)
|
406,497
|
423,919
|
||||||
Property, plant, and equipment (net)
|
468,248
|
476,816
|
||||||
Other assets
|
89,856
|
98,017
|
||||||
Total Assets
|
$
|
1,714,002
|
$
|
1,739,087
|
||||
Trade accounts payable
|
$
|
97,631
|
$
|
106,960
|
||||
Short term debt
|
20,747
|
24,073
|
||||||
Other current liabilities
|
97,176
|
99,772
|
||||||
Total Current Liabilities
|
215,554
|
230,805
|
||||||
Long-term debt
|
601,840
|
549,075
|
||||||
Accrued employee and retiree benefits
|
20,300
|
25,498
|
||||||
Other liabilities
|
13,990
|
17,477
|
||||||
Shareholders' Equity
|
862,318
|
916,232
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,714,002
|
$
|
1,739,087
|
Sensient Technologies Corporation
|
Page 9
|
(In thousands, except per share amounts)
|
Consolidated Statements of Cash Flows
Three Months Ended June 30, |
2016
|
2015
|
||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
28,116
|
$
|
29,450
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
11,689
|
11,874
|
||||||
Stock-based compensation
|
2,785
|
374
|
||||||
Loss on assets
|
7,649
|
3,680
|
||||||
Liquidation of foreign entity
|
(3,257
|
)
|
-
|
|||||
Deferred income taxes
|
7,580
|
(1,350
|
)
|
|||||
Changes in operating assets and liabilities
|
110
|
2,260
|
||||||
Net cash provided by operating activities
|
54,672
|
46,288
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(20,174
|
)
|
(23,539
|
)
|
||||
Proceeds from sale of assets
|
873
|
34
|
||||||
Acquisition of new business
|
-
|
(8,393
|
)
|
|||||
Other investing activity
|
(30
|
)
|
(77
|
)
|
||||
Net cash used in investing activities
|
(19,331
|
)
|
(31,975
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
11,922
|
79,128
|
||||||
Debt payments
|
(35,783
|
)
|
(13,060
|
)
|
||||
Purchase of treasury stock
|
(3,135
|
)
|
(65,077
|
)
|
||||
Dividends paid
|
(12,103
|
)
|
(11,668
|
)
|
||||
Proceeds from options exercised and other
|
129
|
370
|
||||||
Net cash used in financing activities
|
(38,970
|
)
|
(10,307
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(881
|
)
|
(304
|
)
|
||||
Net (decrease) increase in cash and cash equivalents
|
(4,510
|
)
|
3,702
|
|||||
Cash and cash equivalents at beginning of period
|
24,703
|
18,083
|
||||||
Cash and cash equivalents at end of period
|
$
|
20,193
|
$
|
21,785
|
Supplemental Information
Three Months Ended June 30, |
2016
|
2015
|
||||||
Dividends paid per share
|
$
|
0.27
|
$
|
0.25
|