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 Six Months Ended June 30, 2018.
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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
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Name:
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John J. Manning
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||
Title:
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Vice President, General Counsel and Secretary
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Date:
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July 20, 2018
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Exhibit 99.1 |
Sensient Technologies Corporation Earnings Press Release for the Quarter and Six Months Ended June 30, 2018.
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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
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Page 2
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Earnings Release – Quarter Ended June 30, 2018
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July 20, 2018
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Sensient Technologies Corporation
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Page 3
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Earnings Release – Quarter Ended June 30, 2018
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July 20, 2018
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Sensient Technologies Corporation
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Page 4
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Earnings Release – Quarter Ended June 30, 2018
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July 20, 2018
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Sensient Technologies Corporation
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Page 5
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Earnings Release – Quarter Ended June 30, 2018
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July 20, 2018
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Sensient Technologies Corporation
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Page 6
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Earnings Release – Quarter Ended June 30, 2018
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July 20, 2018
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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)
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|
(Unaudited)
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Consolidated Statements of Earnings
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||||||||||||
2018
|
2017
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% Change
|
2018
|
2017
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% Change
|
|||||||||||||||||||
Revenue
|
$
|
363,041
|
$
|
338,475
|
7.3
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%
|
$
|
719,518
|
$
|
679,872
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5.8
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%
|
||||||||||||
Cost of products sold
|
241,571
|
219,250
|
10.2
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%
|
474,977
|
439,702
|
8.0
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%
|
||||||||||||||||
Selling and administrative expenses
|
69,289
|
74,845
|
-7.4
|
%
|
136,679
|
171,753
|
-20.4
|
%
|
||||||||||||||||
Operating income
|
52,181
|
44,380
|
17.6
|
%
|
107,862
|
68,417
|
57.7
|
%
|
||||||||||||||||
Interest expense
|
5,555
|
4,717
|
11,110
|
9,528
|
||||||||||||||||||||
Earnings before income taxes
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46,626
|
39,663
|
96,752
|
58,889
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||||||||||||||||||||
Income taxes
|
7,503
|
8,889
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19,435
|
14,923
|
||||||||||||||||||||
Net earnings
|
$
|
39,123
|
$
|
30,774
|
27.1
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%
|
$
|
77,317
|
$
|
43,966
|
75.9
|
%
|
||||||||||||
Earnings per share of common stock:
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||||||||||||||||||||||||
Basic
|
$
|
0.93
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$
|
0.70
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$
|
1.82
|
$
|
1.00
|
||||||||||||||||
Diluted
|
$
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0.92
|
$
|
0.69
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$
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1.81
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$
|
0.99
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||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||||||
Basic
|
42,281
|
44,023
|
42,578
|
44,112
|
||||||||||||||||||||
Diluted
|
42,371
|
44,290
|
42,701
|
44,384
|
Three Months Ended June 30,
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Six Months Ended June 30,
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|||||||||||||||||||||||
2018
|
2017
|
% Change
|
2018
|
2017
|
% Change
|
|||||||||||||||||||
Operating income (GAAP)
|
$
|
52,181
|
$
|
44,380
|
17.6
|
%
|
$
|
107,862
|
$
|
68,417
|
57.7
|
%
|
||||||||||||
Restructuring - Cost of products sold
|
-
|
-
|
-
|
342
|
||||||||||||||||||||
Restructuring - Selling and administrative
|
-
|
7,415
|
-
|
27,285
|
||||||||||||||||||||
Other - Selling and administrative
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-
|
494
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-
|
11,541
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||||||||||||||||||||
Adjusted operating income
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$
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52,181
|
$
|
52,289
|
-0.2
|
%
|
$
|
107,862
|
$
|
107,585
|
0.3
|
%
|
||||||||||||
Net earnings (GAAP)
|
$
|
39,123
|
$
|
30,774
|
27.1
|
%
|
$
|
77,317
|
$
|
43,966
|
75.9
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%
|
||||||||||||
Restructuring and other, before tax
|
-
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7,909
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-
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39,168
|
||||||||||||||||||||
Tax impact of restructuring and other
|
-
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(278
|
)
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-
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(8,105
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)
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||||||||||||||||||
Adjusted net earnings
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$
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39,123
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$
|
38,405
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1.9
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%
|
$
|
77,317
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$
|
75,029
|
3.0
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%
|
||||||||||||
Diluted EPS (GAAP)
|
$
|
0.92
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$
|
0.69
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33.3
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%
|
$
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1.81
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$
|
0.99
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82.8
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%
|
||||||||||||
Restructuring and other, net of tax
|
-
|
0.17
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-
|
0.70
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||||||||||||||||||||
Adjusted diluted EPS
|
$
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0.92
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$
|
0.87
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5.7
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%
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$
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1.81
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$
|
1.69
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7.1
|
%
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Sensient Technologies Corporation
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Page 8
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(In thousands, except per share amounts)
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|
(Unaudited)
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Results by Segment
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||||||||||||
Revenue
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2018
|
2017
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% Change
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2018
|
2017
|
% Change
|
||||||||||||||||||
Flavors & Fragrances
|
$
|
198,658
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$
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185,556
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7.1
|
%
|
$
|
387,004
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$
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372,431
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3.9
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%
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||||||||||||
Color
|
144,291
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132,894
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8.6
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%
|
291,451
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266,960
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9.2
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%
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||||||||||||||||
Asia Pacific
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30,521
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28,945
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5.4
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%
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60,788
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58,581
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3.8
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%
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||||||||||||||||
Intersegment elimination
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(10,429
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)
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(8,920
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)
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(19,725
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)
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(18,100
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)
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||||||||||||||||
Consolidated
|
$
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363,041
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$
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338,475
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7.3
|
%
|
$
|
719,518
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$
|
679,872
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5.8
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%
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||||||||||||
Operating Income
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||||||||||||||||||||||||
Flavors & Fragrances
|
$
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24,001
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$
|
28,502
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-15.8
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%
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$
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49,328
|
$
|
57,272
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-13.9
|
%
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||||||||||||
Color
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31,133
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29,072
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7.1
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%
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64,805
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59,289
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9.3
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%
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||||||||||||||||
Asia Pacific
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4,634
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3,820
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21.3
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%
|
9,506
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8,970
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6.0
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%
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||||||||||||||||
Corporate & Other
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(7,587
|
)
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(17,014
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)
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(15,777
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)
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(57,114
|
)
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||||||||||||||||
Consolidated
|
$
|
52,181
|
$
|
44,380
|
17.6
|
%
|
$
|
107,862
|
$
|
68,417
|
57.7
|
%
|
Consolidated Condensed Balance Sheets
June 30,
|
2018
|
2017
|
||||||
Cash and cash equivalents
|
$
|
30,888
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$
|
26,016
|
||||
Trade accounts receivable, net
|
277,301
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216,197
|
||||||
Inventories
|
461,803
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428,932
|
||||||
Other current assets
|
53,926
|
48,203
|
||||||
Assets Held for Sale
|
1,916
|
7,333
|
||||||
Total Current Assets
|
825,834
|
726,681
|
||||||
Goodwill & intangible assets (net)
|
418,089
|
408,205
|
||||||
Property, plant, and equipment (net)
|
488,825
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480,006
|
||||||
Other assets
|
78,767
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83,441
|
||||||
Total Assets
|
$
|
1,811,515
|
$
|
1,698,333
|
||||
Trade accounts payable
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$
|
98,878
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$
|
93,018
|
||||
Short-term debt
|
20,036
|
20,385
|
||||||
Other current liabilities
|
79,756
|
75,140
|
||||||
Total Current Liabilities
|
198,670
|
188,543
|
||||||
Long-term debt
|
732,762
|
586,940
|
||||||
Accrued employee and retiree benefits
|
21,926
|
21,059
|
||||||
Other liabilities
|
41,728
|
18,076
|
||||||
Shareholders' Equity
|
816,429
|
883,715
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,811,515
|
$
|
1,698,333
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Sensient Technologies Corporation
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Page 9
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(In thousands, except per share amounts)
|
|
(Unaudited)
|
2018
|
2017
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
77,317
|
$
|
43,966
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
26,022
|
24,436
|
||||||
Stock-based compensation
|
1,783
|
4,252
|
||||||
Net loss on assets
|
259
|
328
|
||||||
Loss on divestiture of businesses
|
-
|
33,138
|
||||||
Deferred income taxes
|
9,933
|
(4,765
|
)
|
|||||
Changes in operating assets and liabilities
|
(143,508
|
)
|
(100,561
|
)
|
||||
|
||||||||
Net cash (used in) provided by operating activities
|
(28,194
|
)
|
794
|
|||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(24,000
|
)
|
(19,666
|
)
|
||||
Cash receipts on sold receivables
|
91,142
|
59,286
|
||||||
Proceeds from sale of assets
|
283
|
5,305
|
||||||
Proceeds from divestiture of businesses
|
-
|
12,457
|
||||||
Acquisition of new businesses
|
(11,313
|
)
|
-
|
|||||
Other investing activity
|
751
|
2,602
|
||||||
Net cash provided by investing activities
|
56,863
|
59,984
|
||||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
107,857
|
139,820
|
||||||
Debt payments
|
(33,009
|
)
|
(154,282
|
)
|
||||
Purchase of treasury stock
|
(72,704
|
)
|
(26,743
|
)
|
||||
Dividends paid
|
(28,244
|
)
|
(26,553
|
)
|
||||
Other financing activity
|
(2,779
|
)
|
(1,047
|
)
|
||||
Net cash used in financing activities
|
(28,879
|
)
|
(68,805
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
1,754
|
8,178
|
||||||
Net increase in cash and cash equivalents
|
1,544
|
151
|
||||||
Cash and cash equivalents at beginning of period
|
29,344
|
25,865
|
||||||
Cash and cash equivalents at end of period
|
$
|
30,888
|
$
|
26,016
|
Supplemental Information
Six Months Ended June 30,
|
2018
|
2017
|
||||||
Dividends paid per share
|
$
|
0.66
|
$
|
0.60
|