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)
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐ |
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.
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ITEM 9.01 |
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, 2017.
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SENSIENT TECHNOLOGIES
CORPORATION
(Registrant)
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|||
By:
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/s/ John J. Manning | ||
Name:
|
John J. Manning
|
||
Title:
|
Vice President, General Counsel and Secretary
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||
Date:
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July 20, 2017
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Sensient Technologies Corporation Earnings Press Release for the Quarter and Six Months Ended June 30, 2017.
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Contact:
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Kim Chase
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(414) 347-3706
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Sensient Technologies Corporation
Earnings Release – Quarter Ended June 30, 2017
July 20, 2017
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Page 2
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Sensient Technologies Corporation
Earnings Release – Quarter Ended June 30, 2017
July 20, 2017
|
Page 3
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Sensient Technologies Corporation
Earnings Release – Quarter Ended June 30, 2017
July 20, 2017
|
Page 4
|
Sensient Technologies Corporation
Earnings Release – Quarter Ended June 30, 2017
July 20, 2017
|
Page 5
|
Sensient Technologies Corporation
Earnings Release – Quarter Ended June 30, 2017
July 20, 2017
|
Page 6
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Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
|
Page 7
|
Consolidated Statements of Earnings
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
|||||||||||||||||||
Revenue
|
$
|
338,475
|
$
|
360,836
|
-6.2
|
%
|
$
|
679,872
|
$
|
703,304
|
-3.3
|
%
|
||||||||||||
Cost of products sold
|
219,250
|
236,402
|
-7.3
|
%
|
439,702
|
463,027
|
-5.0
|
%
|
||||||||||||||||
Selling and administrative expenses
|
74,845
|
80,769
|
-7.3
|
%
|
171,753
|
149,093
|
15.2
|
%
|
||||||||||||||||
Operating income
|
44,380
|
43,665
|
1.6
|
%
|
68,417
|
91,184
|
-25.0
|
%
|
||||||||||||||||
Interest expense
|
4,717
|
4,637
|
9,528
|
9,437
|
||||||||||||||||||||
Earnings before income taxes
|
39,663
|
39,028
|
58,889
|
81,747
|
||||||||||||||||||||
Income taxes
|
8,889
|
14,277
|
14,923
|
25,803
|
||||||||||||||||||||
Earnings from continuing operations
|
30,774
|
24,751
|
43,966
|
55,944
|
||||||||||||||||||||
Gain from discontinued operations, net of tax
|
-
|
3,365
|
-
|
3,343
|
||||||||||||||||||||
Net earnings
|
$
|
30,774
|
$
|
28,116
|
9.5
|
%
|
$
|
43,966
|
$
|
59,287
|
-25.8
|
%
|
||||||||||||
Earnings per share of common stock:
|
||||||||||||||||||||||||
Basic:
|
||||||||||||||||||||||||
Continuing operations
|
$
|
0.70
|
$
|
0.56
|
$
|
1.00
|
$
|
1.25
|
||||||||||||||||
Discontinued operations
|
-
|
0.08
|
-
|
0.07
|
||||||||||||||||||||
Earnings per share of common stock
|
$
|
0.70
|
$
|
0.63
|
$
|
1.00
|
$
|
1.33
|
||||||||||||||||
Diluted:
|
||||||||||||||||||||||||
Continuing operations
|
$
|
0.69
|
$
|
0.55
|
$
|
0.99
|
$
|
1.25
|
||||||||||||||||
Discontinued operations
|
-
|
0.08
|
-
|
0.07
|
||||||||||||||||||||
Earnings per share of common stock
|
$
|
0.69
|
$
|
0.63
|
$
|
0.99
|
$
|
1.32
|
||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||||||
Basic
|
44,023
|
44,562
|
44,112
|
44,640
|
||||||||||||||||||||
Diluted
|
44,290
|
44,822
|
44,384
|
44,902
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
|||||||||||||||||||
Operating income from continuing operations (GAAP)
|
$
|
44,380
|
$
|
43,665
|
1.6
|
%
|
$
|
68,417
|
$
|
91,184
|
-25.0
|
%
|
||||||||||||
Restructuring - Cost of products sold
|
-
|
166
|
342
|
810
|
||||||||||||||||||||
Restructuring - Selling and administrative
|
7,415
|
3,109
|
27,285
|
5,807
|
||||||||||||||||||||
Other - Selling and administrative
|
494
|
10,292
|
11,541
|
10,292
|
||||||||||||||||||||
Adjusted operating income
|
$
|
52,289
|
$
|
57,232
|
-8.6
|
%
|
$
|
107,585
|
$
|
108,093
|
-0.5
|
%
|
||||||||||||
Net earnings from continuing operations (GAAP)
|
$
|
30,774
|
$
|
24,751
|
24.3
|
%
|
$
|
43,966
|
$
|
55,944
|
-21.4
|
%
|
||||||||||||
Restructuring and other, before tax
|
7,909
|
13,567
|
39,168
|
16,909
|
||||||||||||||||||||
Tax impact of restructuring and other
|
(278
|
)
|
(738
|
)
|
(8,105
|
)
|
(1,600
|
)
|
||||||||||||||||
Adjusted net earnings
|
$
|
38,405
|
$
|
37,580
|
2.2
|
%
|
$
|
75,029
|
$
|
71,253
|
5.3
|
%
|
||||||||||||
Diluted EPS from continuing operations (GAAP)
|
$
|
0.69
|
$
|
0.55
|
25.5
|
%
|
$
|
0.99
|
$
|
1.25
|
-20.8
|
%
|
||||||||||||
Restructuring and other, net of tax
|
0.17
|
0.29
|
0.70
|
0.34
|
||||||||||||||||||||
Adjusted diluted EPS
|
$
|
0.87
|
$
|
0.84
|
3.6
|
%
|
$
|
1.69
|
$
|
1.59
|
6.3
|
%
|
Sensient Technologies Corporation
(In thousands, except per share amounts)
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Page 8
|
Results by Segment
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
Revenue
|
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
||||||||||||||||||
Flavors & Fragrances
|
$
|
185,556
|
$
|
209,488
|
-11.4
|
%
|
$
|
372,431
|
$
|
407,972
|
-8.7
|
%
|
||||||||||||
Color
|
132,894
|
132,201
|
0.5
|
%
|
266,960
|
258,683
|
3.2
|
%
|
||||||||||||||||
Asia Pacific
|
28,945
|
30,123
|
-3.9
|
%
|
58,581
|
58,330
|
0.4
|
%
|
||||||||||||||||
Intersegment elimination
|
(8,920
|
)
|
(10,976
|
)
|
(18,100
|
)
|
(21,681
|
)
|
||||||||||||||||
Consolidated
|
$
|
338,475
|
$
|
360,836
|
-6.2
|
%
|
$
|
679,872
|
$
|
703,304
|
-3.3
|
%
|
||||||||||||
Operating Income
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
28,502
|
$
|
35,461
|
-19.6
|
%
|
$
|
57,272
|
$
|
63,108
|
-9.2
|
%
|
||||||||||||
Color
|
29,072
|
28,309
|
2.7
|
%
|
59,289
|
56,425
|
5.1
|
%
|
||||||||||||||||
Asia Pacific
|
3,820
|
5,653
|
-32.4
|
%
|
8,970
|
11,249
|
-20.3
|
%
|
||||||||||||||||
Corporate & Other
|
(17,014
|
)
|
(25,758
|
)
|
(57,114
|
)
|
(39,598
|
)
|
||||||||||||||||
Consolidated
|
$
|
44,380
|
$
|
43,665
|
1.6
|
%
|
$
|
68,417
|
$
|
91,184
|
-25.0
|
%
|
Consolidated Condensed Balance Sheets
June 30,
|
2017
|
2016
|
||||||
Cash and cash equivalents
|
$
|
26,016
|
$
|
20,193
|
||||
Trade accounts receivable, net
|
216,197
|
254,635
|
||||||
Inventories
|
428,932
|
381,945
|
||||||
Other current assets
|
55,536
|
92,628
|
||||||
Total Current Assets
|
726,681
|
749,401
|
||||||
Goodwill & intangible assets (net)
|
408,205
|
406,497
|
||||||
Property, plant, and equipment (net)
|
480,006
|
468,248
|
||||||
Other assets
|
83,441
|
89,856
|
||||||
Total Assets
|
$
|
1,698,333
|
$
|
1,714,002
|
||||
Trade accounts payable
|
$
|
93,018
|
$
|
97,631
|
||||
Short-term debt
|
20,385
|
20,747
|
||||||
Other current liabilities
|
75,140
|
97,176
|
||||||
Total Current Liabilities
|
188,543
|
215,554
|
||||||
Long-term debt
|
586,940
|
601,840
|
||||||
Accrued employee and retiree benefits
|
21,059
|
20,300
|
||||||
Other liabilities
|
18,076
|
13,990
|
||||||
Shareholders' Equity
|
883,715
|
862,318
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,698,333
|
$
|
1,714,002
|
Sensient Technologies Corporation
(In thousands, except per share amounts)
|
Page 9
|
Consolidated Statements of Cash Flows
Three Months Ended June 30,
|
2017
|
2016
|
||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
30,774
|
$
|
28,116
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
12,295
|
11,689
|
||||||
Stock-based compensation
|
2,322
|
2,785
|
||||||
Net (gain) loss on assets
|
(58
|
)
|
7,649
|
|||||
Loss on divestiture of businesses
|
1,256
|
-
|
||||||
Deferred income taxes
|
(6,967
|
)
|
7,580
|
|||||
Liquidation of foreign entity
|
-
|
(3,257
|
)
|
|||||
Changes in operating assets and liabilities
|
(14,374
|
)
|
110
|
|||||
Net cash provided by operating activities
|
25,248
|
54,672
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(9,597
|
)
|
(20,174
|
)
|
||||
Proceeds from sale of assets
|
5,200
|
873
|
||||||
Other investing activity
|
(69
|
)
|
(30
|
)
|
||||
Net cash used in investing activities
|
(4,466
|
)
|
(19,331
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
134,163
|
11,922
|
||||||
Debt payments
|
(134,932
|
)
|
(35,783
|
)
|
||||
Purchase of treasury stock
|
(14,378
|
)
|
(3,135
|
)
|
||||
Dividends paid
|
(13,247
|
)
|
(12,103
|
)
|
||||
Other financing activity
|
(570
|
)
|
129
|
|||||
Net cash used in financing activities
|
(28,964
|
)
|
(38,970
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
5,089
|
(881
|
)
|
|||||
Net decrease in cash and cash equivalents
|
(3,093
|
)
|
(4,510
|
)
|
||||
Cash and cash equivalents at beginning of period
|
29,109
|
24,703
|
||||||
Cash and cash equivalents at end of period
|
$
|
26,016
|
$
|
20,193
|
Supplemental Information
Three Months Ended June 30,
|
2017
|
2016
|
||||||
Dividends paid per share
|
$
|
0.30
|
$
|
0.27
|