QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended:
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from
|
to
|
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
Registrant’s telephone number, including area code:
|
(
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
Accelerated Filer ☐
|
Non-Accelerated Filer ☐
|
Smaller Reporting Company
|
Emerging Growth Company
|
Class
|
Outstanding at July 31, 2023
|
|
Common Stock, par value $0.10 per share
|
|
Page No.
|
|||
PART I. FINANCIAL INFORMATION:
|
|||
Item 1.
|
Financial Statements:
|
||
|
|
||
|
1
|
||
|
|
||
|
2
|
||
|
|
||
|
3
|
||
|
|
||
|
4
|
||
|
|
||
|
5
|
||
|
6
|
||
Item 2.
|
12 |
||
|
|
|
|
Item 3.
|
16
|
||
Item 4.
|
16
|
||
PART II. OTHER INFORMATION:
|
|||
Item 1.
|
17
|
||
Item 1A.
|
17
|
||
Item 2.
|
17
|
||
Item 5. |
Other Information. |
17 |
|
Item 6.
|
17
|
||
|
Exhibit Index. |
18
|
|
|
Signatures. |
19
|
PART I. |
FINANCIAL INFORMATION
|
ITEM 1. |
FINANCIAL STATEMENTS
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cost of products sold
|
|
|
|
|
||||||||||||
Selling and administrative expenses
|
|
|
|
|
||||||||||||
Operating income
|
|
|
|
|
||||||||||||
Interest expense
|
|
|
|
|
||||||||||||
Earnings before income taxes
|
|
|
|
|
||||||||||||
Income taxes
|
|
|
|
|
||||||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic
|
|
|
|
|
||||||||||||
Diluted
|
|
|
|
|
||||||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Dividends declared per common share
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Comprehensive income
|
$
|
|
$
|
|
$
|
|
$
|
|
|
June 30,
2023
(Unaudited)
|
December 31,
2022
|
||||||
Assets |
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Trade accounts receivable
|
|
|
||||||
Inventories
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
Other assets
|
|
|
||||||
Deferred tax assets
|
|
|
||||||
Intangible assets, net
|
|
|
||||||
Goodwill
|
|
|
||||||
Property, Plant, and Equipment:
|
||||||||
Land
|
|
|
||||||
Buildings
|
|
|
||||||
Machinery and equipment
|
|
|
||||||
Construction in progress
|
|
|
||||||
|
|
|||||||
Less accumulated depreciation
|
(
|
)
|
(
|
)
|
||||
|
|
|||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities
and Shareholders’ Equity
|
||||||||
Current Liabilities:
|
||||||||
Trade accounts payable
|
$
|
|
$
|
|
||||
Accrued salaries, wages, and withholdings from employees
|
|
|
||||||
Other accrued expenses
|
|
|
||||||
Income taxes
|
|
|
||||||
Short-term borrowings
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Deferred tax liabilities
|
|
|
||||||
Other liabilities
|
|
|
||||||
Accrued employee and retiree benefits
|
|
|
||||||
Long-term debt
|
|
|
||||||
Shareholders’ Equity:
|
||||||||
Common stock
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Earnings reinvested in the business
|
|
|
||||||
Treasury stock, at cost
|
(
|
)
|
(
|
)
|
||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
Six Months
Ended June 30,
|
||||||||
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
|
$
|
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Share-based compensation expense
|
|
|
||||||
Net loss (gain) on assets
|
|
(
|
)
|
|||||
Deferred income taxes
|
(
|
)
|
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Trade accounts receivable
|
|
(
|
)
|
|||||
Inventories
|
(
|
)
|
(
|
)
|
||||
Prepaid expenses and other assets
|
|
(
|
)
|
|||||
Accounts payable and other accrued expenses
|
(
|
)
|
|
|||||
Accrued salaries, wages, and withholdings from employees
|
(
|
)
|
(
|
)
|
||||
Income taxes
|
(
|
)
|
|
|||||
Other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant, and equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sale of assets
|
|
|
||||||
Other investing activities
|
|
|
||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
|
|
||||||
Debt payments
|
(
|
)
|
(
|
)
|
||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Other financing activities
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
|
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
|
(
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
Common
|
Additional
Paid-In
|
Earnings Reinvested
in the
|
Treasury Stock
|
Accumulated
Other
Comprehensive
|
Total
|
|||||||||||||||||||||||
Three Months Ended June 30, 2023
|
Stock
|
Capital
|
Business
|
Shares
|
Amount
|
Income (Loss)
|
Equity
|
|||||||||||||||||||||
Balances at March 31, 2023
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive income
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Non-vested stock issued upon vesting | ( |
) | ( |
) | ||||||||||||||||||||||||
Other | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Balances at June 30, 2023
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Balances at March 31, 2022
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive loss
|
|
|
|
-
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Non-vested stock issued upon vesting | ( |
) | ( |
) | ||||||||||||||||||||||||
Other | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Balances at June 30, 2022
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Balances at December 31, 2022
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive income
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Non-vested stock issued upon vesting
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||||||||||||||||
Benefit plans
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
Other
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||
Balances at June 30, 2023
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Balances at December 31, 2021
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive loss
|
|
|
|
-
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Non-vested stock issued upon vesting
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||||||||||||||||
Benefit plans
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
Other
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||
Balances at June 30, 2022
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
1.
|
Accounting Policies
|
2. |
Acquisition
|
3.
|
Trade Accounts Receivable
|
(In thousands)
Three Months Ended June 30, 2023
|
Allowance for
Doubtful Accounts
|
|||
Balance at
March 31, 2023
|
$
|
|
||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
(
|
)
|
||
Translation and
other activity
|
|
|||
Balance at June
30, 2023
|
$
|
|
(In thousands)
Three Months Ended June 30, 2022
|
Allowance for
Doubtful Accounts
|
|||
Balance at March 31, 2022
|
$
|
|
||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
(
|
)
|
||
Translation and
other activity
|
(
|
)
|
||
Balance at June
30, 2022
|
$
|
|
(In thousands)
Six
Months Ended June 30, 2023
|
Allowance for
Doubtful Accounts
|
|||
Balance at
December 31, 2022
|
$
|
|
||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
(
|
)
|
||
Translation and
other activity
|
|
|||
Balance at June
30, 2023
|
$
|
|
(In thousands)
Six
Months Ended June 30, 2022
|
Allowance for
Doubtful Accounts
|
|||
Balance at
December 31, 2021
|
$
|
|
||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
( |
) | ||
Translation and
other activity
|
( |
) | ||
Balance at June
30, 2022
|
$ |
4. |
Inventories
|
5. |
Debt
|
6. |
Fair Value
|
7. |
Segment Information
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia
Pacific
|
Corporate &
Other
|
Consolidated
|
|||||||||||||||
Three months ended June 30, 2023:
|
||||||||||||||||||||
Revenue from
external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment
revenue
|
|
|
|
|
|
|||||||||||||||
Total revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Operating
income (loss)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Interest
expense
|
|
|
|
|
|
|||||||||||||||
Earnings (loss)
before income taxes
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Three months ended June 30, 2022:
|
||||||||||||||||||||
Revenue from
external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment
revenue
|
|
|
|
|
|
|||||||||||||||
Total revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Operating
income (loss)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Interest
expense
|
|
|
|
|
|
|||||||||||||||
Earnings (loss)
before income taxes
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia
Pacific
|
Corporate &
Other
|
Consolidated
|
|||||||||||||||
Six months ended June 30,
2023:
|
||||||||||||||||||||
Revenue from
external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment
revenue
|
|
|
|
|
|
|||||||||||||||
Total revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Operating
income (loss)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Interest
expense
|
|
|
|
|
|
|||||||||||||||
Earnings (loss)
before income taxes
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Six months ended June 30,
2022:
|
||||||||||||||||||||
Revenue from
external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment
revenue
|
|
|
|
|
|
|||||||||||||||
Total revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Operating
income (loss)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Interest
expense
|
|
|
|
|
|
|||||||||||||||
Earnings (loss)
before income taxes
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Three months ended June 30, 2023:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Natural
Ingredients
|
|
|
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
|
|
|
|
||||||||||||
Personal Care
|
|
|
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Three months ended June 30, 2022:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Natural
Ingredients
|
|
|
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
|
|
|
|
||||||||||||
Personal Care
|
|
|
|
|
||||||||||||
Inks
|
|
|
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Six months ended June 30,
2023:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Natural
Ingredients
|
|
|
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
|
|
|
|
||||||||||||
Personal Care
|
|
|
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Six months ended June 30, 2022:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Natural
Ingredients
|
|
|
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
|
|
|
|
||||||||||||
Personal Care
|
|
|
|
|
||||||||||||
Inks
|
|
|
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Three months ended June 30, 2023:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Three months ended June 30, 2022:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Six months ended June 30,
2023:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Six months ended June 30,
2022:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
|
8. |
Retirement Plans
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(In thousands)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest cost
|
|
|
|
|
||||||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Recognized actuarial (gain) loss
|
(
|
)
|
|
(
|
)
|
|
||||||||||
Total defined benefit expense
|
$
|
|
$
|
|
$
|
|
$
|
|
9. |
Derivative Instruments and Hedging
Activity
|
10. |
Income Taxes
|
11. |
Accumulated Other Comprehensive Income
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at December 31, 2022
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Other comprehensive income before
reclassifications
|
|
|
|
|
||||||||||||
Amounts reclassified from OCI
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Balances at June 30, 2023
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at March 31, 2023
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Other comprehensive income before
reclassifications
|
|
|
|
|
||||||||||||
Amounts reclassified from OCI
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Balances at June 30, 2023
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at December 31, 2021
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss)
before reclassifications
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Amounts reclassified from OCI
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Balances at June 30, 2022
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at March 31, 2022
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Other comprehensive loss before
reclassifications
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Amounts reclassified from OCI
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Balances at June 30, 2022
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(1) |
|
12. |
Commitments and Contingencies
|
13. |
Subsequent Event
|
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Three Months Ended June 30, 2023
|
Six Months Ended June 30, 2023
|
|||||||||||||||||||||||
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Adjusted
Local
Currency
|
Total
|
Foreign
Exchange
Rates
|
Adjusted
Local
Currency
|
||||||||||||||||||
Flavors & Extracts
|
(0.6
|
%)
|
1.0
|
%
|
(1.6
|
%)
|
(1.3
|
%)
|
0.1
|
%
|
(1.4
|
%)
|
||||||||||||
Color
|
2.7
|
%
|
1.1
|
%
|
1.6
|
%
|
5.6
|
%
|
(0.1
|
%)
|
5.7
|
%
|
||||||||||||
Asia Pacific
|
(3.5
|
%)
|
(2.8
|
%)
|
(0.7
|
%)
|
3.1
|
%
|
(3.8
|
%)
|
6.9
|
%
|
||||||||||||
Total Revenue
|
0.7
|
%
|
0.7
|
%
|
0.0
|
%
|
2.2
|
%
|
(0.4
|
%)
|
2.6
|
%
|
||||||||||||
Operating Income
|
||||||||||||||||||||||||
Flavors & Extracts
|
(18.5
|
%)
|
0.6
|
%
|
(19.1
|
%)
|
(19.0
|
%)
|
0.3
|
%
|
(19.3
|
%)
|
||||||||||||
Color
|
(6.3
|
%)
|
1.3
|
%
|
(7.6
|
%)
|
(1.2
|
%)
|
(0.5
|
%)
|
(0.7
|
%)
|
||||||||||||
Asia Pacific
|
(1.9
|
%)
|
(2.8
|
%)
|
0.9
|
%
|
5.6
|
%
|
(4.1
|
%)
|
9.7
|
%
|
||||||||||||
Corporate & Other
|
(29.3
|
%)
|
0.0
|
%
|
(29.3
|
%)
|
(19.0
|
%)
|
0.0
|
%
|
(19.0
|
%)
|
||||||||||||
Total Operating Income
|
(6.6
|
%)
|
0.7
|
%
|
(7.3
|
%)
|
(5.2
|
%)
|
(0.8
|
%)
|
(4.4
|
%)
|
||||||||||||
Diluted Earnings per Share
|
(12.0
|
%)
|
(0.0
|
%)
|
(12.0
|
%)
|
(11.1
|
)%
|
(1.1
|
%)
|
(10.0
|
%)
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
PART II. |
OTHER INFORMATION
|
ITEM 1. |
LEGAL PROCEEDINGS
|
ITEM 1A. |
RISK FACTORS
|
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 6. |
EXHIBITS
|
Exhibit
|
Description
|
Incorporated by Reference From
|
Filed Herewith
|
Note Purchase Agreement, dated as of May 31, 2023
|
Exhibit 10.1 to Current Report on Form 8-K filed June 5, 2023 (Commission File No. 1-7626)
|
||
Certifications of the Company’s Chairman, President & Chief Executive Officer and Senior Vice President & Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act
|
X
|
||
Certifications of the Company’s Chairman, President & Chief Executive Officer and Senior Vice President & Chief Financial Officer pursuant to 18 United States Code § 1350
|
X
|
||
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
|
X
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
X
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
X
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
X
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
X
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
X
|
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
X
|
SENSIENT TECHNOLOGIES CORPORATION
|
||||
Date:
|
August 8, 2023
|
By:
|
/s/ John J. Manning
|
|
John J. Manning, Senior Vice
President, General Counsel &
Secretary
|
||||
Date:
|
August 8, 2023
|
By:
|
/s/ Stephen J. Rolfs
|
|
Stephen J. Rolfs, Senior Vice
President & Chief Financial Officer
|