|
|
|
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
| Item 2.02 |
Results of Operations and Financial Condition.
|
| Item 7.01 |
Regulation FD Disclosure.
|
| Item 9.01 |
Financial Statements and Exhibits.
|
| (d) |
Exhibits. The following exhibits are furnished with this Current Report on Form 8-K:
|
|
Exhibit
Number
|
Description
|
|
Sensient Technologies Corporation Earnings Press Release for the Quarter Ended March 31, 2022.
|
|
|
Sensient Technologies Corporation Investor Presentation – Q1 2022.
|
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
|
SENSIENT TECHNOLOGIES CORPORATION
|
|||
|
By:
|
/s/ John J. Manning
|
||
|
Name:
|
John J. Manning
|
||
|
Title:
|
Senior Vice President, General Counsel, and Secretary
|
||
|
Date:
|
April 29, 2022
|
||
|
Contact:
|
Amy Agallar
|
|
(414) 347-3706
|
|
Sensient Technologies Corporation
|
Page 2
|
|
Earnings Release – Quarter Ended March 31, 2022
April 29, 2022
|
|
Revenue
|
Reported
Quarter
|
|||
|
Flavors & Extracts
|
-9.1
|
%
|
||
|
Color
|
9.4
|
%
|
||
|
Asia Pacific
|
7.8
|
%
|
||
|
Total Revenue
|
-1.2
|
%
|
||
|
Revenue
|
Adjusted
Local Currency (1)
Quarter
|
|||
|
Flavors & Extracts
|
5.1
|
%
|
||
|
Color
|
11.8
|
%
|
||
|
Asia Pacific
|
14.4
|
%
|
||
|
Total Revenue
|
8.4
|
%
|
||
|
(1)
|
Adjusted local currency percentage changes are described in more detail in the "Reconciliation of Non-GAAP Amounts" at the end of this release.
|
|
Sensient Technologies Corporation
|
Page 3
|
|
Earnings Release – Quarter Ended March 31, 2022
April 29, 2022
|
|
Sensient Technologies Corporation
|
Page 4
|
|
Earnings Release – Quarter Ended March 31, 2022
April 29, 2022
|
| (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 March 31, 2022
April 29, 2022
|
|
Sensient Technologies Corporation
|
Page 6
|
|
Earnings Release – Quarter Ended March 31, 2022
April 29, 2022
|
|
Sensient Technologies Corporation
|
Page 7
|
|
(In thousands, except percentages and per share amounts)
(Unaudited)
|
|
Consolidated Statements of Earnings
|
Three Months Ended March 31,
|
|||||||||||
|
2022
|
2021
|
% Change
|
||||||||||
|
Revenue
|
$
|
355,521
|
$
|
359,702
|
(1.2
|
%)
|
||||||
|
Cost of products sold
|
230,675
|
244,089
|
(5.5
|
%)
|
||||||||
|
Selling and administrative expenses
|
72,057
|
68,716
|
4.9
|
%
|
||||||||
|
Operating income
|
52,789
|
46,897
|
12.6
|
%
|
||||||||
|
Interest expense
|
2,993
|
3,433
|
||||||||||
|
Earnings before income taxes
|
49,796
|
43,464
|
||||||||||
|
Income taxes
|
12,725
|
11,796
|
||||||||||
|
Net earnings
|
$
|
37,071
|
$
|
31,668
|
17.1
|
%
|
||||||
|
Earnings per share of common stock:
|
||||||||||||
|
Basic
|
$
|
0.89
|
$
|
0.75
|
||||||||
|
Diluted
|
$
|
0.88
|
$
|
0.75
|
||||||||
|
Average common shares outstanding:
|
||||||||||||
|
Basic
|
41,865
|
42,263
|
||||||||||
|
Diluted
|
42,148
|
42,389
|
||||||||||
|
Results by Segment
|
Three Months Ended March 31,
|
|||||||||||
|
Revenue
|
2022
|
2021
|
% Change
|
|||||||||
|
Flavors & Extracts
|
$
|
182,727
|
$
|
200,911
|
(9.1
|
%)
|
||||||
|
Color
|
148,438
|
135,720
|
9.4
|
%
|
||||||||
|
Asia Pacific
|
36,465
|
33,840
|
7.8
|
%
|
||||||||
|
Intersegment elimination
|
(12,109
|
)
|
(10,769
|
)
|
||||||||
|
Consolidated
|
$
|
355,521
|
$
|
359,702
|
(1.2
|
%)
|
||||||
|
Operating Income
|
||||||||||||
|
Flavors & Extracts
|
$
|
27,579
|
$
|
27,018
|
2.1
|
%
|
||||||
|
Color
|
30,657
|
26,594
|
15.3
|
%
|
||||||||
|
Asia Pacific
|
8,204
|
6,752
|
21.5
|
%
|
||||||||
|
Corporate & Other
|
(13,651
|
)
|
(13,467
|
)
|
||||||||
|
Consolidated
|
$
|
52,789
|
$
|
46,897
|
12.6
|
%
|
||||||
|
Sensient Technologies Corporation
|
Page 8
|
|
(In thousands)
(Unaudited)
|
|
Consolidated Condensed Balance Sheets
|
March 31,
2022
|
December 31,
2021
|
||||||
|
Cash and cash equivalents
|
$
|
32,175
|
$
|
25,740
|
||||
|
Trade accounts receivable
|
282,265
|
261,121
|
||||||
|
Inventories
|
422,837
|
411,635
|
||||||
|
Prepaid expenses and other current assets
|
46,081
|
42,657
|
||||||
|
Total Current Assets
|
783,358
|
741,153
|
||||||
|
Goodwill & intangible assets (net)
|
429,814
|
435,009
|
||||||
|
Property, plant, and equipment (net)
|
445,251
|
446,478
|
||||||
|
Other assets
|
130,196
|
122,853
|
||||||
|
Total Assets
|
$
|
1,788,619
|
$
|
1,745,493
|
||||
|
Trade accounts payable
|
$
|
114,858
|
$
|
125,519
|
||||
|
Short-term borrowings
|
7,475
|
8,539
|
||||||
|
Other current liabilities
|
92,050
|
98,247
|
||||||
|
Total Current Liabilities
|
214,383
|
232,305
|
||||||
|
Long-term debt
|
530,005
|
503,006
|
||||||
|
Accrued employee and retiree benefits
|
28,441
|
28,579
|
||||||
|
Other liabilities
|
54,080
|
43,178
|
||||||
|
Shareholders' Equity
|
961,710
|
938,425
|
||||||
|
Total Liabilities and Shareholders' Equity
|
$
|
1,788,619
|
$
|
1,745,493
|
||||
|
Sensient Technologies Corporation
|
Page 9
|
|
(In thousands, except per share amounts)
(Unaudited)
|
|
Consolidated Statements of Cash Flows
Three Months Ended March 31,
|
||||||||
|
2022
|
2021
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Net earnings
|
$
|
37,071
|
$
|
31,668
|
||||
|
Adjustments to arrive at net cash (used in) provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
13,056
|
12,799
|
||||||
|
Share-based compensation expense
|
4,163
|
2,113
|
||||||
|
Net (gain) loss on assets
|
(48
|
)
|
161
|
|||||
|
Loss on divestitures and other charges
|
-
|
1,238
|
||||||
|
Deferred income taxes
|
4,211
|
4,257
|
||||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Trade accounts receivable
|
(20,841
|
)
|
(27,237
|
)
|
||||
|
Inventories
|
(11,901
|
)
|
27,621
|
|||||
|
Prepaid expenses and other assets
|
(11,111
|
)
|
(13,239
|
)
|
||||
|
Trade accounts payable and other accrued expenses
|
(10,267
|
)
|
(6,242
|
)
|
||||
|
Accrued salaries, wages, and withholdings from employees
|
(12,425
|
)
|
(10,872
|
)
|
||||
|
Income taxes
|
7,063
|
5,742
|
||||||
|
Other liabilities
|
137
|
955
|
||||||
|
Net cash (used in) provided by operating activities
|
(892
|
)
|
28,964
|
|||||
|
Cash flows from investing activities:
|
||||||||
|
Acquisition of property, plant, and equipment
|
(12,736
|
)
|
(14,244
|
)
|
||||
|
Proceeds from sale of assets
|
89
|
69
|
||||||
|
Proceeds from divestiture of businesses
|
-
|
4,059
|
||||||
|
Other investing activities
|
434
|
286
|
||||||
|
Net cash used in investing activities
|
(12,213
|
)
|
(9,830
|
)
|
||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from additional borrowings
|
40,099
|
21,530
|
||||||
|
Debt payments
|
(6,275
|
)
|
(8,999
|
)
|
||||
|
Purchase of treasury stock
|
-
|
(11,665
|
)
|
|||||
|
Dividends paid
|
(17,211
|
)
|
(16,535
|
)
|
||||
|
Other financing activities
|
(1,679
|
)
|
(228
|
)
|
||||
|
Net cash provided by (used in) financing activities
|
14,934
|
(15,897
|
)
|
|||||
|
Effect of exchange rate changes on cash and cash equivalents
|
4,606
|
(7
|
)
|
|||||
|
Net increase in cash and cash equivalents
|
6,435
|
3,230
|
||||||
|
Cash and cash equivalents at beginning of period
|
25,740
|
24,770
|
||||||
|
Cash and cash equivalents at end of period
|
$
|
32,175
|
$
|
28,000
|
||||
|
Supplemental Information
|
||||||||
|
Three Months Ended March 31,
|
2022
|
2021
|
||||||
|
Dividends paid per share
|
$
|
0.41
|
$
|
0.39
|
||||
|
Sensient Technologies Corporation
|
Page 10 |
|
(In thousands, except percentages and per share amounts)
(Unaudited)
|
|
Three Months Ended March 31,
|
||||||||||||
|
2022
|
2021
|
% Change
|
||||||||||
|
Revenue (GAAP)
|
$
|
355,521
|
$
|
359,702
|
(1.2
|
%)
|
||||||
|
Revenue of the divested product lines
|
-
|
(25,570
|
)
|
|||||||||
|
Adjusted revenue
|
$
|
355,521
|
$
|
334,132
|
6.4
|
%
|
||||||
|
Operating income (GAAP)
|
$
|
52,789
|
$
|
46,897
|
12.6
|
%
|
||||||
|
Divestiture & other related costs – Cost of products sold
|
-
|
25
|
||||||||||
|
Divestiture & other related costs – Selling and administrative expenses
|
-
|
1,547
|
||||||||||
|
Operating income of the divested product lines
|
-
|
(2,927
|
)
|
|||||||||
|
Operational improvement plan - Selling and administrative expenses
|
-
|
1,001
|
||||||||||
|
Adjusted operating income
|
$
|
52,789
|
$
|
46,543
|
13.4
|
%
|
||||||
|
Net earnings (GAAP)
|
$
|
37,071
|
$
|
31,668
|
17.1
|
%
|
||||||
|
Divestiture & other related costs, before tax
|
-
|
1,572
|
||||||||||
|
Tax impact of divestiture & other related costs
|
-
|
793
|
||||||||||
|
Net earnings of the divested product lines, before tax
|
-
|
(2,927
|
)
|
|||||||||
|
Tax impact of the divested product lines
|
-
|
723
|
||||||||||
|
Operational improvement plan costs, before tax
|
-
|
1,001
|
||||||||||
|
Tax impact of operational improvement plan
|
-
|
(296
|
)
|
|||||||||
|
Adjusted net earnings
|
$
|
37,071
|
$
|
32,534
|
13.9
|
%
|
||||||
|
Diluted earnings per share (GAAP)
|
$
|
0.88
|
$
|
0.75
|
17.3
|
%
|
||||||
|
Divestiture & other related costs, net of tax
|
-
|
0.06
|
||||||||||
|
Results of operations of the divested product lines, net of tax
|
-
|
(0.05
|
)
|
|||||||||
|
Operational improvement plan costs, net of tax
|
-
|
0.02
|
||||||||||
|
Adjusted diluted earnings per share
|
$
|
0.88
|
$
|
0.77
|
14.3
|
%
|
||||||
|
Sensient Technologies Corporation
|
Page 11 |
|
(In thousands)
(Unaudited)
|
|
Results by Segment
|
Three Months Ended March 31,
|
|||||||||||||||||||||||
|
Revenue
|
2022
|
Adjustments (1)
|
Adjusted
2022 |
2021
|
Adjustments (1)
|
Adjusted
2021 |
||||||||||||||||||
|
Flavors & Extracts
|
$
|
182,727
|
$
|
-
|
$
|
182,727
|
$
|
200,911
|
$
|
(24,889
|
)
|
$
|
176,022
|
|||||||||||
|
Color
|
148,438
|
-
|
148,438
|
135,720
|
(536
|
)
|
135,184
|
|||||||||||||||||
|
Asia Pacific
|
36,465
|
-
|
36,465
|
33,840
|
(295
|
)
|
33,545
|
|||||||||||||||||
|
Intersegment elimination
|
(12,109
|
)
|
-
|
(12,109
|
)
|
(10,769
|
)
|
150
|
(10,619
|
)
|
||||||||||||||
|
Consolidated
|
$
|
355,521
|
$
|
-
|
$
|
355,521
|
$
|
359,702
|
$
|
(25,570
|
)
|
$
|
334,132
|
|||||||||||
|
Operating Income
|
||||||||||||||||||||||||
|
Flavors & Extracts
|
$
|
27,579
|
$
|
-
|
$
|
27,579
|
$
|
27,018
|
$
|
(2,880
|
)
|
$
|
24,138
|
|||||||||||
|
Color
|
30,657
|
-
|
30,657
|
26,594
|
40
|
26,634
|
||||||||||||||||||
|
Asia Pacific
|
8,204
|
-
|
8,204
|
6,752
|
(87
|
)
|
6,665
|
|||||||||||||||||
|
Corporate & Other
|
(13,651
|
)
|
-
|
(13,651
|
)
|
(13,467
|
)
|
2,573
|
(10,894
|
)
|
||||||||||||||
|
Consolidated
|
$
|
52,789
|
$
|
-
|
$
|
52,789
|
$
|
46,897
|
$
|
(354
|
)
|
$
|
46,543
|
|||||||||||
|
Sensient Technologies Corporation
|
Page 12 |
|
(In thousands, except percentages)
(Unaudited)
|
|
Three Months Ended March 31,
|
||||||||||||||||
|
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Adjustments (2)
|
Adjusted
Local
Currency
|
||||||||||||
|
Flavors & Extracts
|
(9.1
|
%)
|
(1.9
|
%)
|
(12.3
|
%)
|
5.1
|
%
|
||||||||
|
Color
|
9.4
|
%
|
(1.9
|
%)
|
(0.5
|
%)
|
11.8
|
%
|
||||||||
|
Asia Pacific
|
7.8
|
%
|
(5.6
|
%)
|
(1.0
|
%)
|
14.4
|
%
|
||||||||
|
Total Revenue
|
(1.2
|
%)
|
(2.2
|
%)
|
(7.4
|
%)
|
8.4
|
%
|
||||||||
|
Operating Income
|
||||||||||||||||
|
Flavors & Extracts
|
2.1
|
%
|
(1.2
|
%)
|
(11.4
|
%)
|
14.7
|
%
|
||||||||
|
Color
|
15.3
|
%
|
(2.4
|
%)
|
0.2
|
%
|
17.5
|
%
|
||||||||
|
Asia Pacific
|
21.5
|
%
|
(7.8
|
%)
|
(1.7
|
%)
|
31.0
|
%
|
||||||||
|
Corporate & Other
|
1.4
|
%
|
0.0
|
%
|
(24.0
|
%)
|
25.4
|
%
|
||||||||
|
Total Operating Income
|
12.6
|
%
|
(3.2
|
%)
|
(0.4
|
%)
|
16.2
|
%
|
||||||||
|
Diluted Earnings Per Share
|
17.3
|
%
|
(4.0
|
%)
|
4.4
|
%
|
16.9
|
%
|
||||||||
|
Adjusted EBITDA
|
14.0
|
%
|
(2.3
|
%)
|
N/A
|
16.3
|
%
|
|||||||||
|
Three Months Ended March 31,
|
||||||||||||
|
2022
|
2021
|
% Change
|
||||||||||
|
Operating income (GAAP)
|
$
|
52,789
|
$
|
46,897
|
12.6
|
%
|
||||||
|
Depreciation and amortization
|
13,056
|
12,799
|
||||||||||
|
Depreciation and amortization, divested product lines
|
-
|
(49
|
)
|
|||||||||
|
Share-based compensation expense
|
4,163
|
2,113
|
||||||||||
|
Divestiture & other related costs, before tax
|
-
|
1,572
|
||||||||||
|
Results of operations of the divested product lines, before tax
|
-
|
(2,927
|
)
|
|||||||||
|
Operational improvement plan costs, before tax
|
-
|
1,001
|
||||||||||
|
Adjusted EBITDA
|
$
|
70,008
|
$
|
61,406
|
14.0
|
%
|
||||||
|
Three Months Ended March 31,
|
||||||||||||
|
2022
|
2021
|
% Change
|
||||||||||
|
Net cash (used in) provided by operating activities (GAAP)
|
$
|
(892
|
)
|
$
|
28,964
|
(103.1
|
%)
|
|||||
|
Capital expenditures
|
(12,736
|
)
|
(14,244
|
)
|
||||||||
|
Free Cash Flow
|
$
|
(13,628
|
)
|
$
|
14,720
|
(192.6
|
%)
|
|||||