Contact:
|
Amy Agallar
|
Reported
|
||||||||
Revenue
|
Quarter
|
Year-to-Date
|
||||||
Flavors & Extracts
|
-0.6
|
%
|
-1.3
|
%
|
||||
Color
|
2.7
|
%
|
5.6
|
%
|
||||
Asia Pacific
|
-3.5
|
%
|
3.1
|
%
|
||||
Total Revenue
|
0.7
|
%
|
2.2
|
%
|
||||
Local Currency(1)
|
||||||||
Revenue
|
Quarter
|
Year-to-Date
|
||||||
Flavors & Extracts
|
-1.6
|
%
|
-1.4
|
%
|
||||
Color
|
1.6
|
%
|
5.7
|
%
|
||||
Asia Pacific
|
-0.7
|
%
|
6.9
|
%
|
||||
Total Revenue
|
0.0
|
%
|
2.6
|
%
|
Sensient Technologies Corporation
|
Page 2
|
Earnings Release – Quarter Ended June 30, 2023
|
|
July 21, 2023
|
|
Sensient Technologies Corporation
|
Page 3
|
Earnings Release – Quarter Ended June 30, 2023
|
|
July 21, 2023
|
|
Sensient Technologies Corporation
|
Page 4
|
Earnings Release – Quarter Ended June 30, 2023
|
|
July 21, 2023
|
|
(2) |
See “Reconciliation of Non-GAAP Amounts” at the end of this release for more information.
|
Sensient Technologies Corporation
|
Page 5
|
Earnings Release – Quarter Ended June 30, 2023
|
|
July 21, 2023
|
|
Sensient Technologies Corporation
|
Page 6
|
Earnings Release – Quarter Ended June 30, 2023
|
|
July 21, 2023
|
|
Sensient Technologies Corporation
|
Page 7
|
(In thousands, except percentages and per share amounts)
|
|
(Unaudited)
|
|
Consolidated Statements of Earnings
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
2023
|
2022
|
% Change
|
2023
|
2022
|
% Change
|
|||||||||||||||||||
Revenue
|
$
|
374,313
|
$
|
371,706
|
0.7
|
%
|
$
|
743,319
|
$
|
727,227
|
2.2
|
%
|
||||||||||||
Cost of products sold
|
252,136
|
240,703
|
4.7
|
%
|
496,479
|
471,378
|
5.3
|
%
|
||||||||||||||||
Selling and administrative expenses
|
70,586
|
75,759
|
(6.8
|
%)
|
144,411
|
147,816
|
(2.3
|
%)
|
||||||||||||||||
Operating income
|
51,591
|
55,244
|
(6.6
|
%)
|
102,429
|
108,033
|
(5.2
|
%)
|
||||||||||||||||
Interest expense
|
6,352
|
3,083
|
12,354
|
6,076
|
||||||||||||||||||||
Earnings before income taxes
|
45,239
|
52,161
|
90,075
|
101,957
|
||||||||||||||||||||
Income taxes
|
11,206
|
13,514
|
22,391
|
26,239
|
||||||||||||||||||||
Net earnings
|
$
|
34,033
|
$
|
38,647
|
(11.9
|
%)
|
$
|
67,684
|
$
|
75,718
|
(10.6
|
%)
|
||||||||||||
Earnings per share of common stock:
|
||||||||||||||||||||||||
Basic
|
$
|
0.81
|
$
|
0.92
|
$
|
1.61
|
$
|
1.81
|
||||||||||||||||
Diluted
|
$
|
0.81
|
$
|
0.92
|
$
|
1.60
|
$
|
1.80
|
||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||||||
Basic
|
42,043
|
41,893
|
42,006
|
41,879
|
||||||||||||||||||||
Diluted
|
42,235
|
42,208
|
42,245
|
42,178
|
Results by Segment
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
Revenue
|
2023
|
2022
|
% Change
|
2023
|
2022
|
% Change
|
||||||||||||||||||
Flavors & Extracts
|
$
|
188,284
|
$
|
189,337
|
(0.6
|
%)
|
$
|
367,136
|
$
|
372,064
|
(1.3
|
%)
|
||||||||||||
Color
|
160,463
|
156,268
|
2.7
|
%
|
321,624
|
304,706
|
5.6
|
%
|
||||||||||||||||
Asia Pacific
|
36,029
|
37,328
|
(3.5
|
%)
|
76,114
|
73,793
|
3.1
|
%
|
||||||||||||||||
Intersegment elimination
|
(10,463
|
)
|
(11,227
|
)
|
(21,555
|
)
|
(23,336
|
)
|
||||||||||||||||
Consolidated
|
$
|
374,313
|
$
|
371,706
|
0.7
|
%
|
$
|
743,319
|
$
|
727,227
|
2.2
|
%
|
||||||||||||
Operating Income
|
||||||||||||||||||||||||
Flavors & Extracts
|
$
|
24,456
|
$
|
30,013
|
(18.5
|
%)
|
$
|
46,636
|
$
|
57,592
|
(19.0
|
%)
|
||||||||||||
Color
|
29,217
|
31,178
|
(6.3
|
%)
|
61,102
|
61,835
|
(1.2
|
%)
|
||||||||||||||||
Asia Pacific
|
7,575
|
7,721
|
(1.9
|
%)
|
16,816
|
15,925
|
5.6
|
%
|
||||||||||||||||
Corporate & Other
|
(9,657
|
)
|
(13,668
|
)
|
(22,125
|
)
|
(27,319
|
)
|
||||||||||||||||
Consolidated
|
$
|
51,591
|
$
|
55,244
|
(6.6
|
%)
|
$
|
102,429
|
$
|
108,033
|
(5.2
|
%)
|
Sensient Technologies Corporation
|
Page 8 |
(In thousands)
|
|
(Unaudited)
|
|
Consolidated Condensed Balance Sheets
|
June 30,
|
December 31,
|
||||||
2023
|
2022
|
|||||||
Cash and cash equivalents
|
$
|
36,546
|
$
|
20,921
|
||||
Trade accounts receivable
|
300,741
|
302,109
|
||||||
Inventories
|
588,459
|
564,110
|
||||||
Prepaid expenses and other current assets
|
42,945
|
47,640
|
||||||
Total Current Assets
|
968,691
|
934,780
|
||||||
Goodwill & intangible assets (net)
|
440,038
|
434,315
|
||||||
Property, plant, and equipment (net)
|
504,981
|
483,193
|
||||||
Other assets
|
132,502
|
129,326
|
||||||
Total Assets
|
$
|
2,046,212
|
$
|
1,981,614
|
||||
Trade accounts payable
|
$
|
119,340
|
$
|
142,365
|
||||
Short-term borrowings
|
15,436
|
20,373
|
||||||
Other current liabilities
|
87,870
|
109,415
|
||||||
Total Current Liabilities
|
222,646
|
272,153
|
||||||
Long-term debt
|
686,589
|
630,331
|
||||||
Accrued employee and retiree benefits
|
27,141
|
26,364
|
||||||
Other liabilities
|
55,572
|
53,168
|
||||||
Shareholders' Equity
|
1,054,264
|
999,598
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
2,046,212
|
$
|
1,981,614
|
Sensient Technologies Corporation
|
Page 9 |
(In thousands, except per share amounts)
|
|
(Unaudited)
|
|
Consolidated Statements of Cash Flows
|
||||||||
Six Months Ended June 30,
|
||||||||
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
67,684
|
$
|
75,718
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
28,590
|
26,180
|
||||||
Share-based compensation expense
|
4,766
|
8,691
|
||||||
Net loss (gain) on assets
|
81
|
(38
|
)
|
|||||
Deferred income taxes
|
(2,643
|
)
|
12,244
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Trade accounts receivable
|
6,062
|
(41,592
|
)
|
|||||
Inventories
|
(16,927
|
)
|
(51,768
|
)
|
||||
Prepaid expenses and other assets
|
3,534
|
(25,919
|
)
|
|||||
Trade accounts payable and other accrued expenses
|
(18,329
|
)
|
20,501
|
|||||
Accrued salaries, wages, and withholdings
|
(19,713
|
)
|
(4,188
|
)
|
||||
Income taxes
|
(1,998
|
)
|
2,765
|
|||||
Other liabilities
|
595
|
199
|
||||||
Net cash provided by operating activities
|
51,702
|
22,793
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant, and equipment
|
(45,137
|
)
|
(32,468
|
)
|
||||
Proceeds from sale of assets
|
53
|
92
|
||||||
Other investing activities
|
2,054
|
1,571
|
||||||
Net cash used in investing activities
|
(43,030
|
)
|
(30,805
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
187,037
|
69,424
|
||||||
Debt payments
|
(143,923
|
)
|
(31,547
|
)
|
||||
Dividends paid
|
(34,577
|
)
|
(34,446
|
)
|
||||
Other financing activities
|
(8,003
|
)
|
(2,056
|
)
|
||||
Net cash provided by financing activities
|
534
|
1,375
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
6,419
|
6,168
|
||||||
Net increase (decrease) in cash and cash equivalents
|
15,625
|
(469
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
20,921
|
25,740
|
||||||
Cash and cash equivalents at end of period
|
$
|
36,546
|
$
|
25,271
|
||||
Supplemental Information
|
||||||||
Six Months Ended June 30,
|
2023
|
2022
|
||||||
Dividends paid per share
|
$
|
0.82
|
$
|
0.82
|
Sensient Technologies Corporation
|
Page 10
|
(In thousands, except percentages)
|
|
(Unaudited)
|
|
Three Months Ended June 30,
|
||||||||||||
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Local
Currency
|
|||||||||
Flavors & Extracts
|
(0.6
|
%)
|
1.0
|
%
|
(1.6
|
%)
|
||||||
Color
|
2.7
|
%
|
1.1
|
%
|
1.6
|
%
|
||||||
Asia Pacific
|
(3.5
|
%)
|
(2.8
|
%)
|
(0.7
|
%)
|
||||||
Total Revenue
|
0.7
|
%
|
0.7
|
%
|
0.0
|
%
|
||||||
Operating Income
|
||||||||||||
Flavors & Extracts
|
(18.5
|
%)
|
0.6
|
%
|
(19.1
|
%)
|
||||||
Color
|
(6.3
|
%)
|
1.3
|
%
|
(7.6
|
%)
|
||||||
Asia Pacific
|
(1.9
|
%)
|
(2.8
|
%)
|
0.9
|
%
|
||||||
Corporate & Other
|
(29.3
|
%)
|
0.0
|
%
|
(29.3
|
%)
|
||||||
Total Operating Income
|
(6.6
|
%)
|
0.7
|
%
|
(7.3
|
%)
|
||||||
Diluted Earnings Per Share
|
(12.0
|
%)
|
0.0
|
%
|
(12.0
|
%)
|
||||||
Adjusted EBITDA
|
(6.0
|
%)
|
0.6
|
%
|
(6.6
|
%)
|
Six Months Ended June 30,
|
||||||||||||
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Local
Currency
|
|||||||||
Flavors & Extracts
|
(1.3
|
%)
|
0.1
|
%
|
(1.4
|
%)
|
||||||
Color
|
5.6
|
%
|
(0.1
|
%)
|
5.7
|
%
|
||||||
Asia Pacific
|
3.1
|
%
|
(3.8
|
%)
|
6.9
|
%
|
||||||
Total Revenue
|
2.2
|
%
|
(0.4
|
%)
|
2.6
|
%
|
||||||
Operating Income
|
||||||||||||
Flavors & Extracts
|
(19.0
|
%)
|
0.3
|
%
|
(19.3
|
%)
|
||||||
Color
|
(1.2
|
%)
|
(0.5
|
%)
|
(0.7
|
%)
|
||||||
Asia Pacific
|
5.6
|
%
|
(4.1
|
%)
|
9.7
|
%
|
||||||
Corporate & Other
|
(19.0
|
%)
|
0.0
|
%
|
(19.0
|
%)
|
||||||
Total Operating Income
|
(5.2
|
%)
|
(0.8
|
%)
|
(4.4
|
%)
|
||||||
Diluted Earnings Per Share
|
(11.1
|
%)
|
(1.1
|
%)
|
(10.0
|
%)
|
||||||
Adjusted EBITDA
|
(5.0
|
%)
|
(0.6
|
%)
|
(4.4
|
%)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2023
|
2022
|
% Change
|
2023
|
2022
|
% Change
|
|||||||||||||||||||
Operating income (GAAP)
|
$
|
51,591
|
$
|
55,244
|
(6.6
|
%)
|
$
|
102,429
|
$
|
108,033
|
(5.2
|
%)
|
||||||||||||
Depreciation and amortization
|
14,440
|
13,124
|
28,590
|
26,180
|
||||||||||||||||||||
Share-based compensation expense
|
2,499
|
4,528
|
4,766
|
8,691
|
||||||||||||||||||||
Adjusted EBITDA
|
$
|
68,530
|
$
|
72,896
|
(6.0
|
%)
|
$
|
135,785
|
$
|
142,904
|
(5.0
|
%)
|
Sensient Technologies Corporation
|
Page 11
|
(In thousands, except percentages)
|
|
(Unaudited)
|
|
|
|
Reconciliation of Non-GAAP Amounts - Continued
|
|
The following table summarizes the reconciliation between Debt (GAAP) and Net Debt, and Operating Income (GAAP) and Credit Adjusted EBITDA for the trailing twelve months ended
June 30, 2023 and 2022.
|
June 30,
|
||||||||
Debt
|
2023
|
2022
|
||||||
Short-term borrowings
|
$
|
15,436
|
$
|
26,624
|
||||
Long-term debt
|
686,589
|
498,715
|
||||||
Credit Agreement adjustments(1)
|
(19,755
|
)
|
(13,744
|
)
|
||||
Net Debt
|
$
|
682,270
|
$
|
511,595
|
||||
Operating income (GAAP)
|
$
|
191,147
|
$
|
195,411
|
||||
Depreciation and amortization
|
54,877
|
52,414
|
||||||
Share-based compensation expense
|
12,213
|
14,076
|
||||||
Other non-operating (gains) losses(2)
|
(3,326
|
)
|
200
|
|||||
Credit Adjusted EBITDA
|
$
|
254,911
|
$
|
262,101
|
||||
Net Debt to Credit Adjusted EBITDA
|
2.7
|
x
|
2.0
|
x
|
Twelve Months Ended December 31,
|
||||
2022
|
||||
Diluted earnings per share (GAAP)
|
$
|
3.34
|
||
Divestiture & other related income, net of tax
|
(0.04
|
)
|
||
Adjusted diluted earnings per share
|
$
|
3.29
|