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 Employer Identification 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: |
Sensient Technologies Corporation Earnings Press Release for the Quarter and Year Ended December 31, 2017.
|
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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February 8, 2018
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Exhibit 99.1 |
Sensient Technologies Corporation Earnings Press Release for the Quarter and Year Ended December 31, 2017.
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Contact:
|
Kim Chase
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Sensient Technologies Corporation
Earnings Release – Quarter Ended December 31, 2017
February 8, 2018
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Page 2
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Sensient Technologies Corporation
Earnings Release – Quarter Ended December 31, 2017
February 8, 2018
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Page 3
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Sensient Technologies Corporation
Earnings Release – Quarter Ended December 31, 2017
February 8, 2018
|
Page 4
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Sensient Technologies Corporation
Earnings Release – Quarter Ended December 31, 2017
February 8, 2018
|
Page 5
|
Sensient Technologies Corporation
Earnings Release – Quarter Ended December 31, 2017
February 8, 2018
|
Page 6
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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 December 31,
|
Twelve Months Ended December 31,
|
||||||||||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
|||||||||||||||||||
Revenue
|
$
|
328,874
|
$
|
330,244
|
-0.4
|
%
|
$
|
1,362,265
|
$
|
1,383,210
|
-1.5
|
%
|
||||||||||||
Cost of products sold
|
216,289
|
217,657
|
-0.6
|
%
|
886,775
|
907,783
|
-2.3
|
%
|
||||||||||||||||
Selling and administrative expenses
|
65,206
|
69,313
|
-5.9
|
%
|
307,684
|
289,818
|
6.2
|
%
|
||||||||||||||||
Operating income
|
47,379
|
43,274
|
9.5
|
%
|
167,806
|
185,609
|
-9.6
|
%
|
||||||||||||||||
Interest expense
|
4,909
|
4,303
|
19,383
|
18,324
|
||||||||||||||||||||
Earnings before income taxes
|
42,470
|
38,971
|
148,423
|
167,285
|
||||||||||||||||||||
Income taxes
|
29,049
|
7,621
|
58,823
|
44,372
|
||||||||||||||||||||
Earnings from continuing operations
|
13,421
|
31,350
|
89,600
|
122,913
|
||||||||||||||||||||
Gain from discontinued operations, net of tax
|
-
|
-
|
-
|
3,343
|
||||||||||||||||||||
Net earnings
|
$
|
13,421
|
$
|
31,350
|
-57.2
|
%
|
$
|
89,600
|
$
|
126,256
|
-29.0
|
%
|
||||||||||||
Earnings per share of common stock:
|
||||||||||||||||||||||||
Basic:
|
||||||||||||||||||||||||
Continuing operations
|
$
|
0.31
|
$
|
0.71
|
$
|
2.05
|
$
|
2.76
|
||||||||||||||||
Discontinued operations
|
-
|
-
|
-
|
0.08
|
||||||||||||||||||||
Earnings per share of common stock
|
$
|
0.31
|
$
|
0.71
|
$
|
2.05
|
$
|
2.84
|
||||||||||||||||
Diluted:
|
||||||||||||||||||||||||
Continuing operations
|
$
|
0.31
|
$
|
0.70
|
$
|
2.03
|
$
|
2.74
|
||||||||||||||||
Discontinued operations
|
-
|
-
|
-
|
0.07
|
||||||||||||||||||||
Earnings per share of common stock
|
$
|
0.31
|
$
|
0.70
|
$
|
2.03
|
$
|
2.82
|
||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||||||
Basic
|
43,285
|
44,284
|
43,780
|
44,523
|
||||||||||||||||||||
Diluted
|
43,509
|
44,611
|
44,031
|
44,843
|
Three Months Ended December 31,
|
Twelve Months Ended December 31,
|
|||||||||||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
|||||||||||||||||||
Operating income from continuing operations (GAAP)
|
$
|
47,379
|
$
|
43,274
|
9.5
|
%
|
$
|
167,806
|
$
|
185,609
|
-9.6
|
%
|
||||||||||||
Restructuring - Cost of products sold
|
(526
|
)
|
1,255
|
2,889
|
2,065
|
|||||||||||||||||||
Restructuring - Selling and administrative
|
3,415
|
3,898
|
33,627
|
12,486
|
||||||||||||||||||||
Other - Selling and administrative
|
-
|
1,052
|
11,555
|
11,535
|
||||||||||||||||||||
Adjusted operating income
|
$
|
50,268
|
$
|
49,479
|
1.6
|
%
|
$
|
215,877
|
$
|
211,695
|
2.0
|
%
|
||||||||||||
Net earnings from continuing operations (GAAP)
|
$
|
13,421
|
$
|
31,350
|
-57.2
|
%
|
$
|
89,600
|
$
|
122,913
|
-27.1
|
%
|
||||||||||||
Restructuring and other, before tax
|
2,889
|
6,205
|
48,071
|
26,086
|
||||||||||||||||||||
Tax impact of restructuring and other
|
1,822
|
(2,000
|
)
|
(5,602
|
)
|
(4,999
|
)
|
|||||||||||||||||
Impact of the 2017 Tax Legislation
|
18,446
|
-
|
18,446
|
-
|
||||||||||||||||||||
Adjusted net earnings
|
$
|
36,578
|
$
|
35,555
|
2.9
|
%
|
$
|
150,515
|
$
|
144,000
|
4.5
|
%
|
||||||||||||
Diluted EPS from continuing operations (GAAP)
|
$
|
0.31
|
$
|
0.70
|
-55.7
|
%
|
$
|
2.03
|
$
|
2.74
|
-25.9
|
%
|
||||||||||||
Restructuring and other, net of tax
|
0.11
|
0.09
|
0.96
|
0.47
|
||||||||||||||||||||
2017 Tax Legislation
|
0.42
|
-
|
0.42
|
-
|
||||||||||||||||||||
Adjusted diluted EPS
|
$
|
0.84
|
$
|
0.80
|
5.0
|
%
|
$
|
3.42
|
$
|
3.21
|
6.5
|
%
|
Sensient Technologies Corporation
|
Page 8
|
(In thousands, except per share amounts)
|
Results by Segment
|
Three Months Ended December 31,
|
Twelve Months Ended December 31,
|
||||||||||||||||||||||
Revenue
|
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
||||||||||||||||||
Flavors & Fragrances
|
$
|
178,520
|
$
|
187,064
|
-4.6
|
%
|
$
|
746,943
|
$
|
795,811
|
-6.1
|
%
|
||||||||||||
Color
|
126,180
|
119,716
|
5.4
|
%
|
526,363
|
504,131
|
4.4
|
%
|
||||||||||||||||
Asia Pacific
|
31,904
|
30,773
|
3.7
|
%
|
123,193
|
121,196
|
1.6
|
%
|
||||||||||||||||
Intersegment elimination
|
(7,730
|
)
|
(7,309
|
)
|
(34,234
|
)
|
(37,928
|
)
|
||||||||||||||||
Consolidated
|
$
|
328,874
|
$
|
330,244
|
-0.4
|
%
|
$
|
1,362,265
|
$
|
1,383,210
|
-1.5
|
%
|
||||||||||||
Operating Income
|
||||||||||||||||||||||||
Flavors & Fragrances
|
$
|
24,065
|
$
|
28,565
|
-15.8
|
%
|
$
|
114,343
|
$
|
124,059
|
-7.8
|
%
|
||||||||||||
Color
|
25,468
|
22,867
|
11.4
|
%
|
113,381
|
105,814
|
7.2
|
%
|
||||||||||||||||
Asia Pacific
|
6,022
|
6,103
|
-1.3
|
%
|
20,772
|
23,603
|
-12.0
|
%
|
||||||||||||||||
Corporate & Other
|
(8,176
|
)
|
(14,261
|
)
|
(80,690
|
)
|
(67,867
|
)
|
||||||||||||||||
Consolidated
|
$
|
47,379
|
$
|
43,274
|
9.5
|
%
|
$
|
167,806
|
$
|
185,609
|
-9.6
|
%
|
Consolidated Condensed Balance Sheets December 31,
|
2017
|
2016
|
||||||
Cash and cash equivalents
|
$
|
29,344
|
$
|
25,865
|
||||
Trade accounts receivable, net
|
195,439
|
194,509
|
||||||
Inventories
|
463,517
|
404,320
|
||||||
Other current assets
|
45,175
|
92,367
|
||||||
Total Current Assets
|
733,475
|
717,061
|
||||||
Goodwill & intangible assets (net)
|
416,206
|
391,694
|
||||||
Property, plant, and equipment (net)
|
498,523
|
476,523
|
||||||
Other assets
|
76,136
|
82,582
|
||||||
Total Assets
|
$
|
1,724,340
|
$
|
1,667,860
|
||||
Trade accounts payable
|
$
|
109,780
|
$
|
92,450
|
||||
Short-term debt
|
20,130
|
20,578
|
||||||
Other current liabilities
|
86,413
|
100,647
|
||||||
Total Current Liabilities
|
216,323
|
213,675
|
||||||
Long-term debt
|
604,159
|
582,780
|
||||||
Accrued employee and retiree benefits
|
19,294
|
19,911
|
||||||
Other liabilities
|
32,263
|
15,753
|
||||||
Shareholders' Equity
|
852,301
|
835,741
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,724,340
|
$
|
1,667,860
|
Sensient Technologies Corporation
|
Page 9
|
(In thousands, except per share amounts)
|
Consolidated Statements of Cash Flows
Three Months Ended December 31,
|
2017
|
2016
|
||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
13,421
|
$
|
31,350
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
11,892
|
11,843
|
||||||
Stock-based compensation
|
(441
|
)
|
966
|
|||||
Net loss on assets
|
1,181
|
1,862
|
||||||
Deferred income taxes
|
26,501
|
1,974
|
||||||
Changes in operating assets and liabilities
|
16,830
|
23,889
|
||||||
Net cash provided by operating activities
|
69,384
|
71,884
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(23,519
|
)
|
(23,212
|
)
|
||||
Proceeds from sale of assets
|
5,041
|
2,657
|
||||||
Other investing activity
|
(77
|
)
|
(159
|
)
|
||||
Net cash used in investing activities
|
(18,555
|
)
|
(20,714
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
42,787
|
59,192
|
||||||
Debt payments
|
(49,786
|
)
|
(61,395
|
)
|
||||
Purchase of treasury stock
|
(22,731
|
)
|
(22,372
|
)
|
||||
Dividends paid
|
(14,342
|
)
|
(13,278
|
)
|
||||
Other financing activity
|
(2,395
|
)
|
(4,115
|
)
|
||||
Net cash used in financing activities
|
(46,467
|
)
|
(41,968
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
328
|
(6,842
|
)
|
|||||
Net increase in cash and cash equivalents
|
4,690
|
2,360
|
||||||
Cash and cash equivalents at beginning of period
|
24,654
|
23,505
|
||||||
Cash and cash equivalents at end of period
|
$
|
29,344
|
$
|
25,865
|
Supplemental Information
Three Months Ended December 31, |
2017
|
2016
|
||||||
Dividends paid per share
|
$
|
0.33
|
$
|
0.30
|