04/23/2021 | Press release | Distributed by Public on 04/23/2021 05:01
Contact:
|
Amy Agallar
|
(414) 347-3706
|
Sensient Technologies Corporation
Earnings Release - Quarter Ended March 31, 2021
April 23, 2021
|
Page 2
|
Revenue
|
Reported
Quarter
|
||
Flavors & Extracts
|
7.7
|
% | |
Color
|
-5.4
|
% | |
Asia Pacific
|
11.1
|
% | |
Total Revenue
|
2.6
|
% | |
Revenue
|
Adjusted
Local Currency (1)
Quarter
|
||
Flavors & Extracts
|
8.9
|
%
|
|
Color
|
-1.9
|
%
|
|
Asia Pacific
|
4.7
|
%
|
|
Total Revenue
|
4.0
|
%
|
|
(1) Adjusted local currency percentage changes are described in more detail in the 'Reconciliation of Non-GAAP Amounts' at the end of this release.
|
- MORE -
|
Sensient Technologies Corporation
Earnings Release - Quarter Ended March 31, 2021
April 23, 2021
|
Page 3
|
- MORE -
|
Sensient Technologies Corporation
Earnings Release - Quarter Ended March 31, 2021
April 23, 2021
|
Page 4
|
|
(2) |
See 'Reconciliation of Non-GAAP Amounts' at the end of this release for more information.
|
- MORE -
|
Sensient Technologies Corporation
Earnings Release - Quarter Ended March 31, 2021
April 23, 2021
|
Page 5
|
- MORE -
|
Sensient Technologies Corporation
Earnings Release - Quarter Ended March 31, 2021
April 23, 2021
|
Page 6
|
- MORE -
|
Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
|
Page 7
|
Consolidated Statements of Earnings
|
Three Months Ended March 31,
|
|||||||||||
2021
|
2020
|
% Change
|
||||||||||
Revenue
|
$
|
359,702
|
$
|
350,677
|
2.6
|
%
|
||||||
Cost of products sold
|
244,089
|
238,784
|
2.2
|
%
|
||||||||
Selling and administrative expenses
|
68,716
|
77,332
|
(11.1
|
%)
|
||||||||
Operating income
|
46,897
|
34,561
|
35.7
|
%
|
||||||||
Interest expense
|
3,433
|
4,307
|
||||||||||
Earnings before income taxes
|
43,464
|
30,254
|
||||||||||
Income taxes
|
11,796
|
9,481
|
||||||||||
Net earnings
|
$
|
31,668
|
$
|
20,773
|
52.4
|
%
|
||||||
Earnings per share of common stock:
|
||||||||||||
Basic
|
$
|
0.75
|
$
|
0.49
|
||||||||
Diluted
|
$
|
0.75
|
$
|
0.49
|
||||||||
Average common shares outstanding:
|
||||||||||||
Basic
|
42,263
|
42,284
|
||||||||||
Diluted
|
42,389
|
42,307
|
Results by Segment
|
Three Months Ended March 31,
|
|||||||||||
Revenue
|
2021
|
2020
|
% Change
|
|||||||||
Flavors & Extracts
|
$
|
200,911
|
$
|
186,498
|
7.7
|
%
|
||||||
Color
|
135,720
|
143,495
|
(5.4
|
%)
|
||||||||
Asia Pacific
|
33,840
|
30,449
|
11.1
|
%
|
||||||||
Intersegment elimination
|
(10,769
|
)
|
(9,765
|
)
|
||||||||
Consolidated
|
$
|
359,702
|
$
|
350,677
|
2.6
|
%
|
||||||
Operating Income
|
||||||||||||
Flavors & Extracts
|
$
|
27,018
|
$
|
20,871
|
29.5
|
%
|
||||||
Color
|
26,594
|
29,664
|
(10.3
|
%)
|
||||||||
Asia Pacific
|
6,752
|
5,059
|
33.5
|
%
|
||||||||
Corporate & Other
|
(13,467
|
)
|
(21,033
|
)
|
||||||||
Consolidated
|
$
|
46,897
|
$
|
34,561
|
35.7
|
%
|
- MORE -
|
Sensient Technologies Corporation
(In thousands)
(Unaudited)
|
Page 8
|
Consolidated Condensed Balance Sheets
|
March 31,
2021
|
December 31,
2020
|
||||||
Cash and cash equivalents
|
$
|
28,000
|
$
|
24,770
|
||||
Trade accounts receivable
|
257,289
|
234,132
|
||||||
Inventories
|
350,294
|
381,346
|
||||||
Prepaid expenses and other current assets
|
51,978
|
48,578
|
||||||
Assets held for sale
|
49,597
|
52,760
|
||||||
Total Current Assets
|
737,158
|
741,586
|
||||||
Goodwill & intangible assets (net)
|
427,453
|
434,220
|
||||||
Property, plant, and equipment (net)
|
442,080
|
445,493
|
||||||
Other assets
|
114,318
|
119,561
|
||||||
Total Assets
|
$
|
1,721,009
|
$
|
1,740,860
|
||||
Trade accounts payable
|
$
|
101,225
|
$
|
107,324
|
||||
Short-term borrowings
|
6,057
|
9,247
|
||||||
Other current liabilities
|
76,138
|
82,045
|
||||||
Liabilities held for sale
|
15,353
|
17,339
|
||||||
Total Current Liabilities
|
198,773
|
215,955
|
||||||
Long-term debt
|
524,244
|
518,004
|
||||||
Accrued employee and retiree benefits
|
29,198
|
28,941
|
||||||
Other liabilities
|
43,148
|
43,624
|
||||||
Shareholders' Equity
|
925,646
|
934,336
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,721,009
|
$
|
1,740,860
|
- MORE -
|
Sensient Technologies Corporation
(In thousands, except per share amounts)
(Unaudited)
|
Page 9
|
Consolidated Statements of Cash Flows
|
||||||||
Three Months Ended March 31,
|
||||||||
2021
|
2020
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
31,668
|
$
|
20,773
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
12,799
|
12,404
|
||||||
Share-based compensation expense
|
2,113
|
1,177
|
||||||
Net loss on assets
|
161
|
14
|
||||||
Loss on divestitures and other charges
|
1,238
|
10,558
|
||||||
Deferred income taxes
|
4,257
|
4,077
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Trade accounts receivable
|
(27,237
|
)
|
(41,684
|
)
|
||||
Inventories
|
27,621
|
29,058
|
||||||
Prepaid expenses and other assets
|
(13,239
|
)
|
(6,048
|
)
|
||||
Trade accounts payable and other accrued expenses
|
(6,242
|
)
|
2,773
|
|||||
Accrued salaries, wages, and withholdings
|
(10,872
|
)
|
1,611
|
|||||
Income taxes
|
5,742
|
1,662
|
||||||
Other liabilities
|
955
|
553
|
||||||
Net cash provided by operating activities
|
28,964
|
36,928
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant, and equipment
|
(14,244
|
)
|
(9,411
|
)
|
||||
Proceeds from sale of assets
|
69
|
6
|
||||||
Proceeds from divestiture of businesses
|
4,059
|
-
|
||||||
Other investing activities
|
286
|
4,505
|
||||||
Net cash used in investing activities
|
(9,830
|
)
|
(4,900
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
21,530
|
9,669
|
||||||
Debt payments
|
(8,999
|
)
|
(11,104
|
)
|
||||
Purchase of treasury stock
|
(11,665
|
)
|
-
|
|||||
Dividends paid
|
(16,535
|
)
|
(16,500
|
)
|
||||
Other financing activities
|
(228
|
)
|
(249
|
)
|
||||
Net cash used in financing activities
|
(15,897
|
)
|
(18,184
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(7
|
)
|
(11,912
|
)
|
||||
Net increase in cash and cash equivalents
|
3,230
|
1,932
|
||||||
Cash and cash equivalents at beginning of period
|
24,770
|
21,153
|
||||||
Cash and cash equivalents at end of period
|
$
|
28,000
|
$
|
23,085
|
Supplemental Information
|
||||||||
Three Months Ended March 31,
|
2021
|
2020
|
||||||
Dividends paid per share
|
$
|
0.39
|
$
|
0.39
|
- MORE -
|
Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
|
Page 10
|
Three Months Ended March 31,
|
||||||||||||
2021
|
2020
|
% Change
|
||||||||||
Revenue (GAAP)
|
$
|
359,702
|
$
|
350,677
|
2.6
|
%
|
||||||
Revenue of the product lines divested or to be divested
|
(25,570
|
)
|
(36,585
|
)
|
||||||||
Adjusted revenue
|
$
|
334,132
|
$
|
314,092
|
6.4
|
%
|
||||||
Operating income (GAAP)
|
$
|
46,897
|
$
|
34,561
|
35.7
|
%
|
||||||
Divestiture & other related costs - Cost of products sold
|
25
|
190
|
||||||||||
Divestiture & other related costs - Selling and administrative expenses
|
1,547
|
11,653
|
||||||||||
Operating income of the product lines divested or to be divested
|
(2,927
|
)
|
(1,385
|
)
|
||||||||
Operational improvement plan - Selling and administrative expenses
|
1,001
|
-
|
||||||||||
Adjusted operating income
|
$
|
46,543
|
$
|
45,019
|
3.4
|
%
|
||||||
Net earnings (GAAP)
|
$
|
31,668
|
$
|
20,773
|
52.4
|
%
|
||||||
Divestiture & other related costs, before tax
|
1,572
|
11,843
|
||||||||||
Tax impact of divestiture & other related costs
|
793
|
(934
|
)
|
|||||||||
Net earnings of the product lines divested or to be divested, before tax
|
(2,927
|
)
|
(1,385
|
)
|
||||||||
Tax impact of the product lines divested or to be divested
|
723
|
297
|
||||||||||
Operational improvement plan costs, before tax
|
1,001
|
-
|
||||||||||
Tax impact of operational improvement plan
|
(296
|
)
|
-
|
|||||||||
Adjusted net earnings
|
$
|
32,534
|
$
|
30,594
|
6.3
|
%
|
||||||
Diluted earnings per share (GAAP)
|
$
|
0.75
|
$
|
0.49
|
53.1
|
%
|
||||||
Divestiture & other related costs, net of tax
|
0.06
|
0.26
|
||||||||||
Results of operations of the product lines divested or to be divested, net of tax
|
(0.05
|
)
|
(0.03
|
)
|
||||||||
Operational improvement plan costs, net of tax
|
0.02
|
-
|
||||||||||
Adjusted diluted earnings per share
|
$
|
0.77
|
$
|
0.72
|
6.9
|
%
|
Results by Segment
|
Three Months Ended March 31,
|
|||||||||||||||||||||||
Revenue
|
2021
|
Adjustments (1)
|
Adjusted
2021
|
2020
|
Adjustments (1)
|
Adjusted
2020
|
||||||||||||||||||
Flavors & Extracts
|
$
|
200,911
|
$
|
(24,889
|
)
|
$
|
176,022
|
$
|
186,498
|
$
|
(27,445
|
)
|
$
|
159,053
|
||||||||||
Color
|
135,720
|
(536
|
)
|
135,184
|
143,495
|
(9,072
|
)
|
134,423
|
||||||||||||||||
Asia Pacific
|
33,840
|
(295
|
)
|
33,545
|
30,449
|
(121
|
)
|
30,328
|
||||||||||||||||
Intersegment elimination
|
(10,769
|
)
|
150
|
(10,619
|
)
|
(9,765
|
)
|
53
|
(9,712
|
)
|
||||||||||||||
Consolidated
|
$
|
359,702
|
$
|
(25,570
|
)
|
$
|
334,132
|
$
|
350,677
|
$
|
(36,585
|
)
|
$
|
314,092
|
||||||||||
Operating Income
|
||||||||||||||||||||||||
Flavors & Extracts
|
$
|
27,018
|
$
|
(2,880
|
)
|
$
|
24,138
|
$
|
20,871
|
$
|
(1,218
|
)
|
$
|
19,653
|
||||||||||
Color
|
26,594
|
40
|
26,634
|
29,664
|
(133
|
)
|
29,531
|
|||||||||||||||||
Asia Pacific
|
6,752
|
(87
|
)
|
6,665
|
5,059
|
(34
|
)
|
5,025
|
||||||||||||||||
Corporate & Other
|
(13,467
|
)
|
2,573
|
(10,894
|
)
|
(21,033
|
)
|
11,843
|
(9,190
|
)
|
||||||||||||||
Consolidated
|
$
|
46,897
|
$
|
(354
|
)
|
$
|
46,543
|
$
|
34,561
|
$
|
10,458
|
$
|
45,019
|
- MORE -
|
Sensient Technologies Corporation
(In thousands, except percentages)
(Unaudited)
|
Page 11
|
Three Months Ended March 31,
|
||||||||||||||||
Revenue
|
Total
|
Foreign Exchange
Rates
|
Adjustments (2)
|
Adjusted
Local
Currency |
||||||||||||
Flavors & Extracts
|
7.7
|
%
|
2.4
|
%
|
(3.6
|
%)
|
8.9
|
%
|
||||||||
Color
|
(5.4
|
%)
|
2.4
|
%
|
(5.9
|
%)
|
(1.9
|
%)
|
||||||||
Asia Pacific
|
11.1
|
%
|
5.9
|
%
|
0.5
|
%
|
4.7
|
%
|
||||||||
Total Revenue
|
2.6
|
%
|
2.7
|
%
|
(4.1
|
%)
|
4.0
|
%
|
||||||||
Operating Income
|
||||||||||||||||
Flavors & Extracts
|
29.5
|
%
|
1.9
|
%
|
6.4
|
%
|
21.2
|
%
|
||||||||
Color
|
(10.3
|
%)
|
3.3
|
%
|
(0.3
|
%)
|
(13.3
|
%)
|
||||||||
Asia Pacific
|
33.5
|
%
|
1.3
|
%
|
0.8
|
%
|
31.4
|
%
|
||||||||
Corporate & Other
|
(36.0
|
%)
|
0.0
|
%
|
(54.5
|
%)
|
18.5
|
%
|
||||||||
Total Operating Income
|
35.7
|
%
|
4.1
|
%
|
31.3
|
%
|
0.3
|
%
|
||||||||
Diluted Earnings Per Share
|
53.1
|
%
|
4.1
|
%
|
44.8
|
%
|
4.2
|
%
|
||||||||
Adjusted EBITDA
|
4.9
|
%
|
2.8
|
%
|
N/A
|
2.1
|
%
|
Three Months Ended March 31,
|
||||||||||||
2021
|
2020
|
% Change
|
||||||||||
Operating income (GAAP)
|
$
|
46,897
|
$
|
34,561
|
35.7
|
%
|
||||||
Depreciation and amortization
|
12,799
|
12,404
|
||||||||||
Depreciation and amortization, product lines divested or to be divested
|
(49
|
)
|
(80
|
)
|
||||||||
Share-based compensation expense
|
2,113
|
1,177
|
||||||||||
Divestiture & other related costs, before tax
|
1,572
|
11,843
|
||||||||||
Results of operations of the product lines divested or to be divested, before tax
|
(2,927
|
)
|
(1,385
|
)
|
||||||||
Operational improvement plan costs, before tax
|
1,001
|
-
|
||||||||||
Adjusted EBITDA
|
$
|
61,406
|
$
|
58,520
|
4.9
|
%
|
Three Months Ended March 31,
|
||||||||||||
2021
|
2020
|
% Change
|
||||||||||
Net cash provided by operating activities (GAAP)
|
$
|
28,964
|
$
|
36,928
|
(21.6
|
%)
|
||||||
Capital expenditures
|
(14,244
|
)
|
(9,411
|
)
|
||||||||
Free Cash Flow
|
$
|
14,720
|
$
|
27,517
|
(46.5
|
%)
|