Exhibit 99.1

Contact:
Amy Agallar
(414) 347-3706

Sensient Technologies Corporation
Reports Results for the Quarter Ended December 31, 2019
 
MILWAUKEE—February 14, 2020 — Sensient Technologies Corporation (NYSE: SXT) reported a loss per share of 40 cents in the fourth quarter of 2019 compared to diluted earnings per share of 78 cents in the fourth quarter of 2018. Revenue was $318.6 million in this year’s fourth quarter compared to $324.6 million in the comparable period last year. Operating loss was $14.5 million in the fourth quarter of 2019 compared to operating income of $45.3 million in last year’s fourth quarter. Foreign currency translation did not have a significant impact on revenue, operating income or earnings per share in the quarter.

The 2019 reported fourth quarter results include divestiture & other related costs, primarily non-cash impairment charges, which decreased net earnings $43.2 million ($1.02 per diluted share). The 2018 fourth quarter includes an adjustment to the provisional amount recorded in 2017 for the impact of the Tax Cuts and Jobs Act (2017 Tax Legislation), which decreased net earnings $0.4 million ($0.01 per diluted share). These adjustments are described in more detail under “Reconciliation of Non-GAAP Amounts” below.

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Sensient Technologies Corporation
Earnings Release – Quarter Ended December 31, 2019
February 14, 2020
Page 2
BUSINESS REVIEW

   
Reported
  
Revenue
  
Quarter
  
Color
    
(1.6
%)
Flavors & Fragrances
    
(3.7
%)
Asia Pacific
    
(1.6
%)
Total Revenue
    
(1.8
%)

   
Local Currency (1)
  
Revenue
  
Quarter
  
Color
    
(0.6
%)
Flavors & Fragrances
    
(3.3
%)
Asia Pacific
    
(3.7
%)
Total Revenue
    
(1.4
%)
 
        
(1) Local currency percentage changes are described in more detail in the
“Reconciliation of Non-GAAP Amounts” below.

The reported results include the impact of foreign currency, which is described in more detail under “Reconciliation of Non-GAAP Amounts” below. In contrast, the non-GAAP amounts eliminate the impact of currency movements, depreciation and amortization, non-cash share-based compensation, divestiture & other related costs, and the adjustment to the provisional estimate related to the 2017 Tax Legislation and enhance the overall understanding of the Company’s performance when viewed together with the GAAP results.  Refer to “Reconciliation of Non-GAAP Amounts” below.

The Color Group reported revenue of $125.4 million in the quarter compared to $127.4 million in last year’s fourth quarter. Segment operating income was $19.7 million in the quarter compared to $21.9 million in last year’s comparable period. Foreign currency translation decreased revenue by approximately 1% and operating income by approximately 2% in the quarter. Continued growth in natural colors in the Food & Beverage Colors business and growth in the Pharmaceutical business was offset by lower volumes in inks and some industrial product lines. Color Group operating income was lower in the quarter primarily due to the lower segment sales and unfavorable product mix.

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Sensient Technologies Corporation
Earnings Release – Quarter Ended December 31, 2019
February 14, 2020
Page 3
The Flavors & Fragrances Group reported fourth quarter revenue of $169.1 million compared to $175.5 million reported in the comparable period last year. Higher revenue in the finished flavors and extracts product lines was more than offset by lower revenue in certain flavor ingredient product lines. Segment operating income was $14.2 million in the fourth quarter compared to $22.3 million reported in the fourth quarter of 2018. The Group’s lower profit was primarily a result of the lower segment sales and production volumes, costs associated with certain customer bankruptcy charges, and higher raw material costs. Foreign currency translation did not have a significant effect on revenue or operating income in the quarter.

The Asia Pacific Group reported revenue of $30.6 million in the quarter compared to $31.1 million reported in the comparable prior year period. Segment operating income was $5.6 million in both periods. Foreign currency translation increased segment revenue by approximately 2% and increased operating income by approximately 6% in the quarter.

Corporate & Other reported operating costs of $53.9 million in the current quarter compared to $4.6 million in the fourth quarter of 2018. The higher costs are primarily due to divestiture & other costs of $45.9 million in the current period and the reduction in non-cash performance-based compensation expense in last year’s fourth quarter.

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Sensient Technologies Corporation
Earnings Release – Quarter Ended December 31, 2019
February 14, 2020
Page 4
2020 OUTLOOK

Sensient expects 2020 diluted earnings per share to be between $1.85 and $2.15, which includes an estimate of 65 to 75 cents per share of divestiture & other related costs and the results of the operations to be divested. The divestiture & other related costs are primarily non-cash charges related to the anticipated divestitures. The Company expects adjusted diluted earnings per share(2), which excludes divestiture & other related costs and the results of the operations to be divested, to be between $2.60 and $2.80. The Company’s 2020 diluted earnings per share and adjusted earnings per share will be impacted by a higher tax rate and higher non-cash performance-based compensation.

In addition, the Company expects 2020 Adjusted EBITDA(2) to grow at a low to mid-single digit rate and Adjusted Operating Income(2) to be flat to down at a low-single digit rate, in each case on a local currency basis. Adjusted Operating Income will be impacted by higher non-cash performance-based compensation. The Company expects low to mid-single digit revenue growth in 2020 on a local currency basis, excluding the revenues of the product lines to be divested.


 (2)
See “Reconciliation of Non-GAAP Amounts” below for more information. In addition to the adjustments described for 2019 results under “Reconciliation of Non-GAAP Amounts” below, our 2020 outlook on an adjusted basis provided above excludes the results of operations for the product lines we are planning to divest.  Because it is uncertain when these divestitures will be consummated, it is difficult to predict their impact to our full year results. We also believe that providing our outlook in this manner will be useful to investors as they assess the comparability of the performance in our remaining core businesses. For reference, the product lines identified to be divested represented approximately $140 million in 2019 annual revenue and approximately $2 million of 2019 annual operating income.

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Sensient Technologies Corporation
Earnings Release – Quarter Ended December 31, 2019
February 14, 2020
Page 5
CONFERENCE CALL

The Company will host a conference call to discuss its 2019 fourth quarter financial results at 8:30 a.m. CST on Friday, February 14, 2020. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078 and ask to join the Sensient Technologies Corporation conference call. Alternatively, the call can be accessed by using the webcast link that is available on the Investor Information section of the Company’s web site at www.sensient.com.

A replay of the call will be available one hour after the end of the conference call through February 21, 2020, by calling (877) 344-7529 and referring to conference identification number 10136561. An audio replay and written transcript of the call will be posted on the Investor Information section of the Company’s web site at www.sensient.com on or after February 18, 2020.

This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2020 Outlook” above. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following: the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to successfully implement its strategy to create sustainable, long-term shareholder value; the Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts; the success of the Company’s efforts to explore strategic alternatives for certain non-core businesses; changes in costs or availability of raw materials, including energy; industry and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors, including increased intensity of competition; the loss of any customers in certain product lines in which our sales are made to a relatively small number of customers; product liability claims or product recalls; the costs of compliance, or failure to comply, with laws and regulations applicable to our industries and markets; changing consumer preferences and changing technologies; currency exchange rate fluctuations; and failure to complete and integrate future acquisitions or dispositions. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition, and results of operations. This release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. Except to the extent required by applicable laws, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized. Additional information regarding these risks can be found in our most recent Annual Report on Form 10-K/A and subsequent reports that we file with the SEC.

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Sensient Technologies Corporation
Earnings Release – Quarter Ended December 31, 2019
February 14, 2020
Page 6
ABOUT SENSIENT TECHNOLOGIES

Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and fragrances.  Sensient employs advanced technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, inkjet and specialty inks and colors, and other specialty and fine chemicals.  The Company’s customers include major international manufacturers representing most of the world’s best-known brands.  Sensient is headquartered in Milwaukee, Wisconsin.

www.sensient.com

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Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
Page 7
Consolidated Statements of Earnings
  
Three Months Ended December 31,
    
Twelve Months Ended December 31,
  
                                     
   
2019
    
2018
    
% Change
    
2019
    
2018
    
% Change
  
                                     
Revenue
  
$
318,585
    
$
324,563
      
(1.8
%)
  
$
1,322,934
    
$
1,386,815
      
(4.6
%)
                                                 
Cost of products sold
    
233,105
      
218,548
      
6.7
%
    
908,061
      
920,686
      
(1.4
%)
Selling and administrative expenses
    
99,946
      
60,763
      
64.5
%
    
293,763
      
262,751
      
11.8
%
                                                 
Operating (loss) income
    
(14,466
)
    
45,252
      
(132.0
%)
    
121,110
      
203,378
      
(40.5
%)
Interest expense
    
4,569
      
5,336
              
20,107
      
21,853
          
                                                 
Earnings (loss) before income taxes
    
(19,035
)
    
39,916
              
101,003
      
181,525
          
Income taxes (benefit)
    
(2,073
)
    
7,066
              
18,956
      
24,165
          
                                                 
Net (loss) earnings
  
$
(16,962
)
  
$
32,850
      
(151.6
%)
  
$
82,047
    
$
157,360
      
(47.9
%)
                                                 
Earnings (loss) per share of common stock:
                                                
Basic
  
$
(0.40
)
  
$
0.78
            
$
1.94
    
$
3.71
          
 
                                                
Diluted
  
$
(0.40
)
  
$
0.78
            
$
1.94
    
$
3.70
          
                                                 
Average common shares outstanding:
                                                
Basic
    
42,272
      
42,224
              
42,263
      
42,404
          
 
                                                
Diluted
    
42,272
      
42,287
              
42,294
      
42,499
          

Reconciliation of Non-GAAP Amounts

The Company’s results for the three and twelve months ended December 31, 2019 and 2018, include adjusted operating income, adjusted net earnings, and adjusted diluted EPS, which exclude divestiture & other related costs as well as the impact of the 2017 Tax Legislation.

   
Three Months Ended December 31,
    
Twelve Months Ended December 31,
  
   
2019
    
2018
    
% Change
    
2019
    
2018
    
% Change
  
Operating (loss) income (GAAP)
  
$
(14,466
)
  
$
45,252
      
(132.0
%)
  
$
121,110
    
$
203,378
      
(40.5
%)
Divestiture & other related costs – Cost of products sold
    
10,567
      
-
              
10,567
      
-
          
Divestiture & other related costs – Selling and administrative expenses
    
35,313
      
-
              
35,313
      
-
          
Adjusted operating income
  
$
31,414
    
$
45,252
      
(30.6
%)
  
$
166,990
    
$
203,378
      
(17.9
%)
                                                 
Net (loss) earnings (GAAP)
  
$
(16,962
)
  
$
32,850
      
(151.6
%)
  
$
82,047
    
$
157,360
      
(47.9
%)
Divestiture & other related costs, before tax
    
45,880
      
-
              
45,880
      
-
          
Tax impact of divestiture & other related costs
    
(2,671
)
    
-
              
(2,671
)
    
-
          
Impact of the 2017 Tax Legislation
    
-
      
427
              
-
      
(6,634
)
        
Adjusted net earnings
  
$
26,247
    
$
33,277
      
(21.1
%)
  
$
125,256
    
$
150,726
      
(16.9
%)
                                                 
Diluted EPS (GAAP)
  
$
(0.40
)
  
$
0.78
      
(151.3
%)
  
$
1.94
    
$
3.70
      
(47.6
%)
Divestiture & other related costs, net of tax
    
1.02
      
-
              
1.02
      
-
          
Impact of the 2017 Tax Legislation
    
-
      
0.01
              
-
      
(0.16
)
        
Adjusted diluted EPS
  
$
0.62
    
$
0.79
      
(21.5
%)
  
$
2.96
    
$
3.55
      
(16.6
%)

Note: Earnings per share calculations may not foot due to rounding differences.

The following table summarizes the percentage change in the 2019 results compared to the 2018 results for the corresponding periods.

   
Three Months Ended December 31,
    
Twelve Months Ended December 31,
  
Revenue
  
Total
    
Foreign
Exchange
Rates
    
Local
Currency
    
Total
    
Foreign
Exchange
Rates
    
Local
Currency
  
Flavors & Fragrances
    
(3.7
%)
    
(0.4
%)
    
(3.3
%)
    
(6.2
%)
    
(1.4
%)
    
(4.8
%)
Color
    
(1.6
%)
    
(1.0
%)
    
(0.6
%)
    
(3.4
%)
    
(2.7
%)
    
(0.7
%)
Asia Pacific
    
(1.6
%)
    
2.1
%
    
(3.7
%)
    
(4.0
%)
    
(0.4
%)
    
(3.6
%)
Total Revenue
    
(1.8
%)
    
(0.4
%)
    
(1.4
%)
    
(4.6
%)
    
(1.8
%)
    
(2.8
%)
 
                                                
Operating Income
                                                
Flavors & Fragrances
    
(36.4
%)
    
0.0
%
    
(36.4
%)
    
(22.3
%)
    
(0.5
%)
    
(21.8
%)
Color
    
(10.3
%)
    
(1.5
%)
    
(8.8
%)
    
(10.7
%)
    
(2.9
%)
    
(7.8
%)
Asia Pacific
    
(0.8
%)
    
5.5
%
    
(6.3
%)
    
(7.1
%)
    
2.9
%
    
(10.0
%)
Corporate & Other
    
1077.8
%
    
(0.1
%)
    
1077.9
%
    
173.4
%
    
(0.1
%)
    
173.5
%
Total Operating Income
    
(132.0
%)
    
0.0
%
    
(132.0
%)
    
(40.5
%)
    
(1.6
%)
    
(38.9
%)
Diluted EPS
    
(151.3
%)
    
0.0
%
    
(151.3
%)
    
(47.6
%)
    
(1.4
%)
    
(46.2
%)
Adjusted EBITDA
    
(23.3
%)
    
(0.1
%)
    
(23.2
%)
    
(13.9
%)
    
(1.3
%)
    
(12.6
%)

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Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
Page 8
Reconciliation of Non-GAAP Amounts - Continued

The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three and twelve months ended December 31, 2019 and 2018.

 
Three Months Ended December 31,
  
Twelve Months Ended December 31,
  
                         
 
2019
  
2018
  
% Change
  
2019
  
2018
  
% Change
  
Operating (loss) income (GAAP)
  
$
(14,466
)
  
$
45,252
      
(132.0
%)
  
$
121,110
    
$
203,378
      
(40.5
%)
Depreciation and amortization
    
13,309
      
14,187
              
55,015
      
53,244
          
Share-based compensation expense (income)
    
77
      
(1,038
)
            
(739
)
    
503
          
Divestiture & other related costs, before tax
    
45,880
      
-
              
45,880
      
-
          
Adjusted EBITDA
  
$
44,800
    
$
58,401
      
(23.3
%)
  
$
221,266
    
$
257,125
      
(13.9
%)

We have included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable period-over-period performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this release and our SEC filings. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and we believe the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

Results by Segment
  
Three Months Ended December 31,
    
Twelve Months Ended December 31,
  
                                     
Revenue
  
2019
    
2018
    
% Change
    
2019
    
2018
    
% Change
  
                                     
Flavors & Fragrances
  
$
169,092
    
$
175,531
      
(3.7
%)
  
$
700,356
    
$
746,932
      
(6.2
%)
Color
    
125,363
      
127,423
      
(1.6
%)
    
535,159
      
554,004
      
(3.4
%)
Asia Pacific
    
30,602
      
31,101
      
(1.6
%)
    
118,248
      
123,164
      
(4.0
%)
Intersegment elimination
    
(6,472
)
    
(9,492
)
            
(30,829
)
    
(37,285
)
        
                                                 
Consolidated
  
$
318,585
    
$
324,563
      
(1.8
%)
  
$
1,322,934
    
$
1,386,815
      
(4.6
%)
                                                 
                                                 
                                                 
Operating Income
                                                
                                                 
Flavors & Fragrances
  
$
14,186
    
$
22,291
      
(36.4
%)
  
$
74,961
    
$
96,433
      
(22.3
%)
Color
    
19,678
      
21,936
      
(10.3
%)
    
101,190
      
113,306
      
(10.7
%)
Asia Pacific
    
5,557
      
5,600
      
(0.8
%)
    
19,382
      
20,856
      
(7.1
%)
Corporate & Other
    
(53,887
)
    
(4,575
)
    
1077.8
%
    
(74,423
)
    
(27,217
)
    
173.4
%
                                                 
Consolidated
  
$
(14,466
)
  
$
45,252
      
(132.0
%)
  
$
121,110
    
$
203,378
      
(40.5
%)

The Company’s reportable segments consist of the Flavors & Fragrances, Color, and Asia Pacific segments.  During the third quarter of 2018, the Company completed the acquisition of Mazza Innovation Limited (now known as Sensient Natural Extraction Inc.). This business was included in Corporate & Other in 2018.  Beginning in the first quarter of 2019, the results of operations of this business are now reported in the Color segment.  The results for 2018 have been restated to reflect this change.

Consolidated Condensed Balance Sheets
  
December 31,
2019
    
December 31,
2018
  
             
Cash and cash equivalents
  
$
21,153
    
$
31,901
  
Trade accounts receivable (net)
    
213,201
      
255,350
  
Inventories
    
422,517
      
490,757
  
Other current assets
    
131,342
      
44,857
  
Total Current Assets
    
788,213
      
822,865
  
                 
Goodwill & intangible assets (net)
    
418,844
      
435,042
  
Property, plant, and equipment (net)
    
437,179
      
491,056
  
Other assets
    
95,915
      
75,977
  
                 
Total Assets
  
$
1,740,151
    
$
1,824,940
  
                 
Trade accounts payable
  
$
94,653
    
$
131,812
  
Short-term debt
    
20,612
      
20,046
  
Other current liabilities
    
86,110
      
62,842
  
Total Current Liabilities
    
201,375
      
214,700
  
                 
Long-term debt
    
598,499
      
689,553
  
Accrued employee and retiree benefits
    
25,822
      
23,210
  
Other liabilities
    
32,866
      
37,530
  
Shareholders’ Equity
    
881,589
      
859,947
  
                 
Total Liabilities and Shareholders’ Equity
  
$
1,740,151
    
$
1,824,940
  

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Sensient Technologies Corporation
(In thousands, except per share amounts)
(Unaudited)
Page 9
Consolidated Statements of Cash Flows
Twelve Months Ended December 31,

   
2019
    
2018
  
Cash flows from operating activities:
            
Net earnings
  
$
82,047
    
$
157,360
  
Adjustments to arrive at net cash provided by operating activities:
                
Depreciation and amortization
    
55,015
      
53,244
  
Share-based compensation (income) expense
    
(739
)
    
503
  
Net (gain) loss on assets
    
(1,122
)
    
63
  
Loss on divestitures
    
44,375
      
-
  
Deferred income taxes
    
(19,340
)
    
9,844
  
Changes in operating assets and liabilities:
                
Trade accounts receivable
    
10,930
      
(96,638
)
Inventories
    
25,238
      
(34,114
)
Prepaid expenses and other assets
    
3,257
      
(12,544
)
Accounts payable and other accrued expenses
    
(18,251
)
    
7,457
  
Accrued salaries, wages and withholdings from employees
    
(3,039
)
    
599
  
Income taxes
    
(1,836
)
    
(7,335
)
Other liabilities
    
647
      
5,081
  
                 
Net cash provided by operating activities
    
177,182
      
83,520
  
                 
Cash flows from investing activities:
                
Acquisition of property, plant and equipment
    
(39,100
)
    
(50,740
)
Cash receipts on sold receivables
    
-
      
91,142
  
Proceeds from sale of assets
    
2,242
      
2,615
  
Acquisition of new businesses
    
-
      
(31,100
)
Other investing activity
    
(553
)
    
2,916
  
                 
Net cash (used in) provided by investing activities
    
(37,411
)
    
14,833
  
                 
Cash flows from financing activities:
                
Proceeds from additional borrowings
    
47,083
      
322,529
  
Debt payments
    
(134,449
)
    
(284,332
)
Purchase of treasury stock
    
-
      
(76,734
)
Dividends paid
    
(62,190
)
    
(57,410
)
Other financing activity
    
(1,027
)
    
(2,777
)
                 
Net cash used in financing activities
    
(150,583
)
    
(98,724
)
                 
Effect of exchange rate changes on cash and cash equivalents
    
64
      
2,928
  
                 
Net (decrease) increase in cash and cash equivalents
    
(10,748
)
    
2,557
  
Cash and cash equivalents at beginning of period
    
31,901
      
29,344
  
Cash and cash equivalents at end of period
  
$
21,153
    
$
31,901
  

The Company adopted Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, in the first quarter of 2018 using monthly cash receipts as its unit of account. This ASU requires that certain cash receipts received on securitized accounts receivable, which were previously reported as cash flows from operating activities, are reported as cash flows from investing activities. In the second quarter of 2018, the Company updated its unit of account to daily cash receipts for the cash received related to the beneficial interest in the previously transferred receivables. As a result, the Company has included $91 million in net cash provided by investing activities for fiscal 2018.

Supplemental Information
Twelve Months Ended December 31,
  
2019
    
2018
  
             
Dividends paid per share
  
$
1.47
    
$
1.35