SXT 8-K
Sensient Technologies Corp (SXT)
8-K
2020-04-29
For: 2020-04-29
View Original
Added on
July 04, 2026
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
(Date of Report/Date of earliest event reported)
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address and zip code of principal executive offices)
(414 ) 271-6755
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of
the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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ITEM 2.02
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RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
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On April 29, 2020, Sensient Technologies Corporation issued a press release disclosing its results of operations for its quarter ended March 31, 2020, and its financial
condition at that date. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
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ITEM 9.01
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FINANCIAL STATEMENTS AND EXHIBITS.
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(d) Exhibits. The following exhibit is furnished with this Current Report on Form 8-K:
EXHIBIT INDEX
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Exhibit 104:
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Cover Page Interactive Data File (embedded within the Inline XBRL document).
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
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SENSIENT TECHNOLOGIES CORPORATION
(Registrant)
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By:
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/s/ John J. Manning
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Name:
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John J. Manning
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Title:
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Senior Vice President, General Counsel and Secretary
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Date:
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April 29, 2020
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Exhibit 99.1
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Contact:
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Amy Agallar
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(414) 347-3706
Sensient Technologies Corporation
Reports Results for the Quarter Ended March 31, 2020
Cash Provided by Operating Activities Increased 58% in the Quarter
Sensient Plants Remain Operational to Meet Customer Demand
Consolidated Revenue Increased 0.9%; Adjusted Local Currency Consolidated Revenue increased 3.1%
Sensient Confirms Full Year Guidance
MILWAUKEE—April 29, 2020 — Sensient Technologies Corporation (NYSE: SXT) reported diluted earnings per share of 49
cents in the first quarter of 2020 compared to diluted earnings per share of 78 cents in the first quarter of 2019. Revenue was $350.7 million in this year’s first quarter compared to $347.5 million in the comparable period last year. Operating
income was $34.6 million in the first quarter of 2020 compared to operating income of $49.4 million in last year’s first quarter. Foreign currency translation decreased revenues and operating income by approximately 2% and earnings per share by
approximately 3% in the quarter.
The 2020 reported first quarter results include divestiture & other related costs, primarily non-cash impairment charges, which decreased net
earnings by $10.9 million ($0.26 per diluted share), and the results of operations of the product lines to be divested, which increased net earnings by $1.1 million ($0.03 per diluted share). The 2019 first quarter results of operations of the
product lines to be divested were not significant to net earnings or diluted earnings per share. These adjustments are described in more detail under “Reconciliation of Non-GAAP
Amounts” at the end of this release.
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Sensient Technologies Corporation
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Page 2 |
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Earnings Release – Quarter Ended March 31, 2020
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April 29, 2020
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“While this market is challenging for all businesses as a result of COVID-19, our results for the first quarter were in line with my expectations, and we are on track for
the year,” said Paul Manning, Chairman, President and CEO of Sensient Technologies Corporation. “All of our production facilities are open and producing to support our customers and their demand for our products during these unprecedented times.”
BUSINESS REVIEW
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Revenue
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Reported
Quarter
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Color
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(0.3
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%)
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Flavors & Fragrances
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1.6
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%
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Asia Pacific
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6.8
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%
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Total Revenue
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0.9
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%
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Adjusted
Local Currency (1)
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Revenue
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Quarter
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Color
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2.8
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%
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Flavors & Fragrances
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3.6
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%
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Asia Pacific
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8.5
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%
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Total Revenue
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3.1
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%
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(1) Adjusted local currency percentage changes are described in more detail in the “Reconciliation of
Non-GAAP Amounts” at the end of this release.
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The reported results include the impact of foreign currency, which is described in more detail under “Reconciliation of Non-GAAP Amounts” at the end of this release. 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 results of the operations to be divested to enhance the overall understanding of the Company’s performance when viewed together with the GAAP results. Refer to “Reconciliation of Non-GAAP Amounts” at the end of this release.
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Sensient Technologies Corporation
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Page 3 |
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Earnings Release – Quarter Ended March 31, 2020
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April 29, 2020
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The Color Group reported revenue of $143.5 million in the quarter compared to $143.9 million in last year’s first quarter. Adjusted local currency
revenue increased 2.8% in the quarter. Segment operating income was $29.7 million in the quarter compared to $30.2 million in last year’s comparable period. Foreign currency translation decreased revenue 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 in the Personal Care business. Color Group operating income was slightly
lower in the quarter as higher profit in the Food & Beverage Colors business was offset by the impact of foreign currency translation and lower profit in the Personal Care business mainly due to the impact of COVID-19 and lower overall demand for
makeup products.
The Flavors & Fragrances Group reported first quarter revenue of $186.5 million compared to $183.6 million reported in the comparable period last
year. Adjusted local currency revenue increased 3.6% in the quarter. Higher revenue was primarily the result of strong natural ingredients growth and increases in finished flavors and extracts product lines during the period. Segment operating income
was $20.9 million in the first quarter compared to $23.1 million reported in the first quarter of 2019. The Group’s lower profit was primarily a result of higher raw material costs, mainly in natural ingredients, timing of cost reductions relative to
lower production volumes, and the timing of inventory reductions. Foreign currency translation decreased revenue and operating income by approximately 1% in the quarter.
The Asia Pacific Group reported revenue of $30.4 million in the quarter compared to $28.5 million reported in the comparable prior year period.
Adjusted local currency revenue increased 8.5% in the quarter. Segment operating income was $5.1 million in the quarter compared to $4.2 million in last year’s comparable period. Foreign currency translation decreased segment revenue by approximately
2% and increased operating income by approximately 1% in the quarter.
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Sensient Technologies Corporation
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Page 4 |
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Earnings Release – Quarter Ended March 31, 2020
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April 29, 2020
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Corporate & Other reported operating costs of $21.0 million in the current quarter compared to $8.1 million in the first quarter of 2019. The
higher costs are primarily due to divestiture & other related costs of $11.8 million in the current period, which are primarily non-cash impairment charges, and higher non-cash performance based compensation.
Cash flow from operations was $36.9 million in this year’s first quarter compared to $23.4 million in the first quarter of 2019, an increase of
approximately 58%.
2020 OUTLOOK
Based upon current trends, Sensient is reconfirming its previously issued diluted earnings per share guidance for 2020 of $1.85 to $2.15. The guidance
now includes 55 to 65 cents per share of divestiture & other related costs and the results of the operations to be divested. The guidance also includes approximately 10 cents of foreign currency headwinds based on current exchanges rates.
Based upon current trends, the Company is also reconfirming the previously issued guidance of $2.60 to $2.80 for adjusted diluted earnings per share(2),
which excludes divestiture & other related costs, the results of the operations to be divested, and foreign currency impacts.
The following table summarizes the Company’s 2020 Outlook
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Previous Guidance
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Current Guidance
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Diluted Earnings Per Share (GAAP)
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$
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1.85
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$
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2.15
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$
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1.85
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$
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2.15
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Divestiture & Other Costs and Results of Operations to be Divested
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0.75
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0.65
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0.65
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0.55
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Foreign Currency Headwinds
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-
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-
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0.10
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0.10
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Adjusted Diluted Earnings Per Share in Local Currency
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$
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2.60
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$
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2.80
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$
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2.60
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$
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2.80
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The Company is also confirming, based upon current trends, its previously issued guidance, which calls for low to mid-single digit revenue growth in
2020 on a local currency basis, excluding the revenues of the product lines to be divested. 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 full impact of COVID-19 is unknown and creates uncertainty. The Company will continue to monitor the impact of COVID-19 and will update the
outlook at each of the quarterly calls this year, as appropriate.
| (2) |
See “Reconciliation of Non-GAAP Amounts” at the end of this release for more information.
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Sensient Technologies Corporation
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Page 5 |
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Earnings Release – Quarter Ended March 31, 2020
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April 29, 2020
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CONFERENCE CALL
The Company will host a conference call to discuss its 2020 first quarter financial results at 8:30 a.m. CDT on Wednesday, April 29, 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 May 6, 2020, by calling (877) 344-7529 and referring to
conference identification number 10139552. An audio replay and written transcript of the call will also be posted on the Investor Information section of the Company’s web site at www.sensient.com
on or after May 1, 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 impact and uncertainty created by the ongoing
COVID-19 pandemic, including, but not limited to, its effects on our employees, facilities, customers and suppliers, the availability and cost of raw materials and other supplies, logistics and transportation, governmental regulations and
restrictions and general economic conditions; the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to anticipate and respond to changing consumer preferences and changing technologies; the
Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts and acquisition and divestiture activities; the success of the Company’s efforts to explore
strategic alternatives for certain non-core product lines; the effectiveness of the Company’s past restructuring activities; changes in costs of raw materials, including energy; industry, regulatory, legal, 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; currency
exchange rate fluctuations; and other factors included in “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, and in other documents that the Company files with the SEC. 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.
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Sensient Technologies Corporation
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Page 6 |
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Earnings Release – Quarter Ended March 31, 2020
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April 29, 2020
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ABOUT SENSIENT TECHNOLOGIES
Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and fragrances. Sensient uses advanced
technologies at facilities around the world to develop specialty food and beverage systems, cosmetic, fragrance, pharmaceutical, and nutraceutical ingredients and systems, specialty inks and colors, and other specialty and fine chemicals. The
Company’s customers include major international manufacturers representing some of the world’s best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.
www.sensient.com
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Sensient Technologies Corporation
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Page 7 |
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(In thousands, except percentages and per share amounts)
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(Unaudited)
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Consolidated Statements of Earnings
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Three Months Ended March 31,
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|||||||||||
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2020
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2019
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% Change
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||||||||||
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Revenue
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$
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350,677
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$
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347,513
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0.9
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%
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||||||
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Cost of products sold
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238,784
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232,288
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2.8
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%
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||||||||
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Selling and administrative expenses
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77,332
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65,805
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17.5
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%
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||||||||
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Operating income
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34,561
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49,420
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(30.1
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%)
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||||||||
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Interest expense
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4,307
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5,402
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||||||||||
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Earnings before income taxes
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30,254
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44,018
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||||||||||
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Income taxes
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9,481
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11,211
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Net earnings
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$
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20,773
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$
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32,807
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(36.7
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%)
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||||||
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Earnings per share of common stock:
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||||||||||||
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Basic
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$
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0.49
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$
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0.78
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||||||||
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Diluted
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$
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0.49
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$
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0.78
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||||||||
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Average common shares outstanding:
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||||||||||||
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Basic
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42,284
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42,239
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||||||||||
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Diluted
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42,307
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42,275
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||||||||||
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Results by Segment
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Three Months Ended March 31,
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|||||||||||
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Revenue
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2020
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2019
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% Change
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|||||||||
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Flavors & Fragrances
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$
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186,498
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$
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183,553
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1.6
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%
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||||||
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Color
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143,495
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143,879
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(0.3
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%)
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||||||||
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Asia Pacific
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30,449
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28,519
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6.8
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%
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||||||||
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Intersegment elimination
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(9,765
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)
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(8,438
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)
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Consolidated
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$
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350,677
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$
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347,513
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0.9
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%
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||||||
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Operating Income
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||||||||||||
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Flavors & Fragrances
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$
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20,871
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$
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23,125
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(9.7
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%)
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||||||
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Color
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29,664
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30,199
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(1.8
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%)
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Asia Pacific
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5,059
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4,218
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19.9
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%
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Corporate & Other
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(21,033
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)
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(8,122
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)
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159.0
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%
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||||||
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Consolidated
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$
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34,561
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$
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49,420
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(30.1
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%)
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||||||
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Sensient Technologies Corporation
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Page 8 |
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(In thousands)
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(Unaudited)
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|
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Consolidated Condensed Balance Sheets
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March 31,
2020
|
December 31,
2019
|
||||||
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Cash and cash equivalents
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$
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23,085
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$
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21,153
|
||||
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Trade accounts receivable (net)
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240,123
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213,201
|
||||||
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Inventories
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384,157
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422,517
|
||||||
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Other current assets
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38,768
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40,049
|
||||||
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Assets held for sale
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78,612
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91,293
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||||||
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Total Current Assets
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764,745
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788,213
|
||||||
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Goodwill & intangible assets (net)
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411,978
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418,844
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||||||
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Property, plant, and equipment (net)
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422,995
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437,179
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||||||
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Other assets
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93,108
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95,915
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||||||
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Total Assets
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$
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1,692,826
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$
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1,740,151
|
||||
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Trade accounts payable
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$
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91,437
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$
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94,653
|
||||
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Short-term debt
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20,105
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20,612
|
||||||
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Other current liabilities
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69,274
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66,925
|
||||||
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Liabilities held for sale
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19,821
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19,185
|
||||||
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Total Current Liabilities
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200,637
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201,375
|
||||||
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Long-term debt
|
589,339
|
598,499
|
||||||
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Accrued employee and retiree benefits
|
25,457
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25,822
|
||||||
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Other liabilities
|
34,735
|
32,866
|
||||||
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Shareholders’ Equity
|
842,658
|
881,589
|
||||||
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Total Liabilities and Shareholders’ Equity
|
$
|
1,692,826
|
$
|
1,740,151
|
||||
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Sensient Technologies Corporation
|
Page 9 |
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(In thousands, except per share amounts)
|
|
|
(Unaudited)
|
|
Consolidated Statements of Cash Flows
Three Months Ended March 31, |
2020
|
2019
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Net earnings
|
$
|
20,773
|
$
|
32,807
|
||||
|
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
12,404
|
13,672
|
||||||
|
Share-based compensation expense
|
1,177
|
687
|
||||||
|
Net loss (gain) on assets
|
14
|
(41
|
)
|
|||||
|
Loss on divestitures
|
10,558
|
-
|
||||||
|
Deferred income taxes
|
4,077
|
2,674
|
||||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Trade accounts receivable
|
(41,684
|
)
|
(19,230
|
)
|
||||
|
Inventories
|
29,058
|
22,112
|
||||||
|
Prepaid expenses and other assets
|
(6,048
|
)
|
(7,573
|
)
|
||||
|
Accounts payable and other accrued expenses
|
2,773
|
(21,857
|
)
|
|||||
|
Accrued salaries, wages and withholdings from employees
|
1,611
|
(3,022
|
)
|
|||||
|
Income taxes
|
1,662
|
2,213
|
||||||
|
Other liabilities
|
553
|
982
|
||||||
|
Net cash provided by operating activities
|
36,928
|
23,424
|
||||||
|
Cash flows from investing activities:
|
||||||||
|
Acquisition of property, plant and equipment
|
(9,411
|
)
|
(8,300
|
)
|
||||
|
Proceeds from sale of assets
|
6
|
45
|
||||||
|
Other investing activity
|
4,505
|
(301
|
)
|
|||||
|
Net cash used in investing activities
|
(4,900
|
)
|
(8,556
|
)
|
||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from additional borrowings
|
9,669
|
16,689
|
||||||
|
Debt payments
|
(11,104
|
)
|
(12,577
|
)
|
||||
|
Dividends paid
|
(16,500
|
)
|
(15,218
|
)
|
||||
|
Other financing activity
|
(249
|
)
|
(803
|
)
|
||||
|
Net cash used in financing activities
|
(18,184
|
)
|
(11,909
|
)
|
||||
|
Effect of exchange rate changes on cash and cash equivalents
|
(11,912
|
)
|
(964
|
)
|
||||
|
Net increase in cash and cash equivalents
|
1,932
|
1,995
|
||||||
|
Cash and cash equivalents at beginning of period
|
21,153
|
31,901
|
||||||
|
Cash and cash equivalents at end of period
|
$
|
23,085
|
$
|
33,896
|
||||
|
Supplemental Information
|
||||||||
|
Three Months Ended March 31,
|
2020
|
2019
|
||||||
|
Dividends paid per share
|
$
|
0.39
|
$
|
0.36
|
||||
|
Sensient Technologies Corporation
|
Page 10 |
|
(In thousands, except percentages and per share amounts)
|
|
|
(Unaudited)
|
|
Reconciliation of Non-GAAP Amounts
The Company’s results for the three months ended March 31, 2020 and 2019 include adjusted revenue, adjusted operating income, adjusted net earnings, and adjusted
diluted EPS, which exclude divestiture & other related costs and the results of operations to be divested.
|
Three Months Ended March 31,
|
||||||||||||
|
2020
|
2019
|
% Change
|
||||||||||
|
Revenue (GAAP)
|
$
|
350,677
|
$
|
347,513
|
0.9
|
%
|
||||||
|
Revenue of the product lines to be divested
|
(36,585
|
)
|
(39,021
|
)
|
||||||||
|
Adjusted revenue
|
$
|
314,092
|
$
|
308,492
|
1.8
|
%
|
||||||
|
Operating income (GAAP)
|
$
|
34,561
|
$
|
49,420
|
(30.1
|
%)
|
||||||
|
Divestiture & other related costs – Cost of products sold
|
190
|
-
|
||||||||||
|
Divestiture & other related costs – Selling and administrative expenses
|
11,653
|
-
|
||||||||||
|
Operating income of the product lines to be divested
|
(1,385
|
)
|
(32
|
)
|
||||||||
|
Adjusted operating income
|
$
|
45,019
|
$
|
49,388
|
(8.8
|
%)
|
||||||
|
Net earnings (GAAP)
|
$
|
20,773
|
$
|
32,807
|
(36.7
|
%)
|
||||||
|
Divestiture & other related costs, before tax
|
11,843
|
-
|
||||||||||
|
Tax impact of divestiture & other related costs
|
(934
|
)
|
-
|
|||||||||
|
Net earnings of the product lines to be divested, before tax
|
(1,385
|
)
|
(32
|
)
|
||||||||
|
Tax impact of the product lines to be divested
|
297
|
11
|
||||||||||
|
Adjusted net earnings
|
$
|
30,594
|
$
|
32,786
|
(6.7
|
%)
|
||||||
|
Diluted EPS (GAAP)
|
$
|
0.49
|
$
|
0.78
|
(37.2
|
%)
|
||||||
|
Divestiture & other related costs, net of tax
|
0.26
|
-
|
||||||||||
|
Result of operations of the product lines to be divested, net of tax
|
(0.03
|
)
|
-
|
|||||||||
|
Adjusted diluted EPS
|
$
|
0.72
|
$
|
0.78
|
(7.7
|
%)
|
||||||
Note: Earnings per share calculations may not foot due to rounding differences.
|
Results by Segment
|
Three Months Ended March 31,
|
|||||||||||||||||||||||
|
Revenue
|
2020
|
Product Lines
to be divested
|
Adjusted
2020
|
2019
|
Product Lines
to be divested
|
Adjusted
2019
|
||||||||||||||||||
|
Flavors & Fragrances
|
$
|
186,498
|
$
|
(27,445
|
)
|
$
|
159,053
|
$
|
183,553
|
$
|
(28,806
|
)
|
$
|
154,747
|
||||||||||
|
Color
|
143,495
|
(9,072
|
)
|
134,423
|
143,879
|
(10,280
|
)
|
133,599
|
||||||||||||||||
|
Asia Pacific
|
30,449
|
(121
|
)
|
30,328
|
28,519
|
(108
|
)
|
28,411
|
||||||||||||||||
|
Intersegment elimination
|
(9,765
|
)
|
53
|
(9,712
|
)
|
(8,438
|
)
|
173
|
(8,265
|
)
|
||||||||||||||
|
Consolidated
|
$
|
350,677
|
$
|
(36,585
|
)
|
$
|
314,092
|
$
|
347,513
|
$
|
(39,021
|
)
|
$
|
308,492
|
||||||||||
|
Operating Income
|
||||||||||||||||||||||||
|
Flavors & Fragrances
|
$
|
20,871
|
$
|
(1,218
|
)
|
$
|
19,653
|
$
|
23,125
|
$
|
107
|
$
|
23,232
|
|||||||||||
|
Color
|
29,664
|
(133
|
)
|
29,531
|
30,199
|
(110
|
)
|
30,089
|
||||||||||||||||
|
Asia Pacific
|
5,059
|
(34
|
)
|
5,025
|
4,218
|
(29
|
)
|
4,189
|
||||||||||||||||
|
Corporate & Other
|
(21,033
|
)
|
11,843
|
(9,190
|
)
|
(8,122
|
)
|
-
|
(8,122
|
)
|
||||||||||||||
|
Consolidated
|
$
|
34,561
|
$
|
10,458
|
$
|
45,019
|
$
|
49,420
|
$
|
(32
|
)
|
$
|
49,388
|
|||||||||||
The following table summarizes the percentage change in the 2020 results compared to the 2019 results for the corresponding periods.
|
Three Months Ended March 31,
|
|||||||||||||||||
|
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Product
Lines to be
Divested
|
Adjusted
Local
Currency
|
|||||||||||||
|
Flavors & Fragrances
|
1.6
|
%
|
(1.1
|
%)
|
(0.9
|
%)
|
3.6
|
%
|
|||||||||
|
Color
|
(0.3
|
%)
|
(2.2
|
%)
|
(0.9
|
%)
|
2.8
|
%
|
|||||||||
|
Asia Pacific
|
6.8
|
%
|
(1.7
|
%)
|
0.0
|
%
|
8.5
|
%
|
|||||||||
|
Total Revenue
|
0.9
|
%
|
(1.6
|
%)
|
(0.6
|
%)
|
3.1
|
%
|
|||||||||
|
Operating Income
|
|||||||||||||||||
|
Flavors & Fragrances
|
(9.7
|
%)
|
(0.9
|
%)
|
5.7
|
%
|
(14.5
|
%)
|
|||||||||
|
Color
|
(1.8
|
%)
|
(2.3
|
%)
|
0.2
|
%
|
0.3
|
%
|
|||||||||
|
Asia Pacific
|
19.9
|
%
|
0.7
|
%
|
0.0
|
%
|
19.2
|
%
|
|||||||||
|
Corporate & Other
|
159.0
|
%
|
0.0
|
%
|
145.8
|
%
|
13.2
|
%
|
|||||||||
|
Total Operating Income
|
(30.1
|
%)
|
(1.8
|
%)
|
(21.1
|
%)
|
(7.2
|
%)
|
|||||||||
|
Diluted EPS
|
(37.2
|
%)
|
(2.6
|
%)
|
(29.5
|
%)
|
(5.1
|
%)
|
|||||||||
|
Adjusted EBITDA
|
(6.0
|
%)
|
(1.5
|
%)
|
N/A
|
(4.5
|
%)
|
||||||||||
|
Sensient Technologies Corporation
|
Page 11 |
|
(In thousands, except percentages)
|
|
|
(Unaudited)
|
|
Reconciliation of Non-GAAP Amounts - Continued
The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three months ended March 31, 2020 and 2019.
|
Three Months Ended March 31,
|
||||||||||||
|
2020
|
2019
|
% Change
|
||||||||||
|
Operating income (GAAP)
|
$
|
34,561
|
$
|
49,420
|
(30.1
|
%)
|
||||||
|
Depreciation and amortization
|
12,404
|
13,672
|
||||||||||
|
Depreciation and amortization, product lines to be divested
|
(80
|
)
|
(1,496
|
)
|
||||||||
|
Share-based compensation expense
|
1,177
|
687
|
||||||||||
|
Divestiture & other related costs, before tax
|
11,843
|
-
|
||||||||||
|
Results of operations of the product lines to be divested, before tax
|
(1,385
|
)
|
(32
|
)
|
||||||||
|
Adjusted EBITDA
|
$
|
58,520
|
$
|
62,251
|
(6.0
|
%)
|
||||||
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.