8-K
Sensient Technologies Corp (SXT)
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
April 23, 2021
(Date of Report/Date of earliest event reported)
SENSIENT TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)
| Wisconsin | 001-07626 | 39-0561070 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
777 East Wisconsin Avenue
Milwaukee, Wisconsin 53202-5304
(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:
| ☐ | 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) |
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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:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, par value $0.10 per share | SXT | New York Stock Exchange |
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. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
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Sensient Technologies Corporation (the “Company”) issued a press release on April 23, 2021 disclosing its results of operations for its quarter ended March 31, 2021, and its financial condition at that date. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Item 2.02 (including Exhibit 99.1) is intended to be furnished under Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.
| Item 7.01 | Regulation FD Disclosure. |
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On April 23, 2021, the Company also posted an updated investor presentation for its quarter ended March 31, 2021 on the “Investor Information” section of its website. A copy of the investor presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
The information contained in this Item 7.01 (including Exhibit 99.2) is intended to be furnished under Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.
| Item 9.01 | Financial Statements and Exhibits. |
|---|---|
| (d) | Exhibits. The following exhibits are furnished with this Current Report on Form<br> 8-K: |
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EXHIBIT INDEX
| Exhibit<br><br> <br>Number | Description |
|---|---|
| 99.1 | Sensient Technologies Corporation Earnings Press Release for the Quarter Ended March 31, 2021. |
| 99.2 | Sensient Technologies Corporation Investor Presentation – Q1 2021. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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.
| SENSIENT TECHNOLOGIES CORPORATION | |
|---|---|
| By: | /s/ John J. Manning |
| Name: | John J. Manning |
| Title: | Senior Vice President, General Counsel, and Secretary |
| Date: | April 23, 2021 |
Exhibit 99.1
| Contact: | Amy Agallar |
|---|---|
| (414) 347-3706 |
Sensient Technologies Corporation
Reports Results for the Quarter Ended March 31, 2021
Flavors & Extracts Group and the Asia Pacific Group Report Strong Revenue and Profit Growth
Personal Care Continues to be Negatively Impacted by the COVID-19 Pandemic
In April, the Company Completed the Divestiture of Fragrances
MILWAUKEE— April 23, 2021 — Sensient Technologies Corporation (NYSE: SXT) reported consolidated revenue of $359.7 million in this year’s first quarter compared to $350.7 million in last year’s first quarter. Reported operating income in the first quarter of 2021 was $46.9 million compared to $34.6 million in the first quarter of 2020. Reported diluted earnings per share was 75 cents in the first quarter of 2021 compared to 49 cents in the first quarter of 2020. Foreign currency translation increased revenue and earnings per share by approximately 3% and 4%, respectively, in the quarter.
The 2021 first quarter reported results include divestiture & other related costs and operational improvement plan costs, which in total decreased first quarter net earnings by $3.1 million ($0.07 per diluted share). The 2020 first quarter results include divestiture & other related costs which decreased net earnings by $10.9 million ($0.26 per diluted share). The 2021 and 2020 first quarter results also include the operations of the product lines divested or to be divested, which increased diluted earnings per share by $0.05 in the first quarter of 2021 and $0.03 in the first quarter of 2020. These adjustments are described in more detail under “Reconciliation of Non-GAAP Amounts” at the end of this release.
| Sensient Technologies Corporation<br><br> <br>Earnings Release – Quarter Ended March 31, 2021<br><br> <br>April 23, 2021 | Page 2 |
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BUSINESS REVIEW
| Revenue | Reported<br><br> <br>Quarter | |
|---|---|---|
| Flavors & Extracts | 7.7 | % |
| Color | -5.4 | % |
| Asia Pacific | 11.1 | % |
| Total Revenue | 2.6 | % |
| Revenue | Adjusted<br><br> <br>Local Currency ^(1)^<br><br> <br>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. |
The Flavors & Extracts Group reported first quarter revenue of $200.9 million compared to $186.5 million reported in the comparable period last year, an increase of 7.7%. Adjusted local currency revenue increased 8.9% in the quarter. The higher revenue was the result of strong growth in all product categories. Segment operating income was $27.0 million in the current quarter compared to $20.9 million reported in the comparable period last year, an increase of 29.5%. Adjusted local currency operating income increased 21.2%. The Group’s higher profit was primarily a result of the higher volumes, product mix from strong flavor sales, and the favorable impact of the Group’s cost reduction initiatives. Foreign currency translation increased both segment revenue and operating income by approximately 2% in the quarter.
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| Sensient Technologies Corporation<br><br> <br>Earnings Release – Quarter Ended March 31, 2021<br><br> <br>April 23, 2021 | Page 3 |
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The Color Group reported revenue of $135.7 million in the quarter compared to $143.5 million in last year’s comparable period, a decrease of 5.4%. Adjusted local currency revenue decreased 1.9% in the quarter. The Group continued to experience growth in food and pharmaceutical colors; however, this growth was offset by lower volumes in the personal care business, primarily as a result of the continued lower demand for makeup due to the COVID-19 pandemic. Segment operating income was $26.6 million in the quarter compared to $29.7 million in last year’s comparable period, a decrease of 10.3%. Adjusted local currency operating income decreased 13.3% compared to prior year’s first quarter. The lower operating income is primarily a result of the lower volumes in personal care and unfavorable product mix in food & pharmaceutical colors. Foreign currency translation increased segment revenue and operating income by approximately 2% and 3%, respectively, in the quarter.
The Asia Pacific Group reported revenue of $33.8 million in the quarter compared to $30.4 million in last year’s comparable period, an increase of 11.1%. Adjusted local currency revenue increased 4.7% in the quarter. Segment operating income was $6.8 million in the quarter compared to $5.1 million in last year’s comparable quarter, an increase of 33.5%. Adjusted local currency operating income increased 31.4% in the quarter. The higher profit was primarily a result of the favorable volume growth combined with lower operating costs. Foreign currency translation increased segment revenue and operating income by approximately 6% and 1%, respectively, in the quarter.
Corporate & Other reported operating costs of $13.5 million in the current quarter compared to $21.0 million in last year’s comparable period, a decrease of 36.0%. The lower costs are primarily due to lower divestiture & other costs reported in the first quarter of 2021 compared to the amount recorded in the first quarter of 2020. Adjusted local currency operating expenses for Corporate & Other increased 18.5% in the quarter primarily due to higher performance based executive compensation.
In April 2021, the Company completed the divestiture of its Fragrances product line.
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| Sensient Technologies Corporation<br><br> <br>Earnings Release – Quarter Ended March 31, 2021<br><br> <br>April 23, 2021 | Page 4 |
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2021 OUTLOOK
Sensient is reconfirming its previously issued 2021 guidance for GAAP diluted earnings per share to grow at a mid to high single digit growth rate compared to the Company’s 2020 reported GAAP diluted earnings per share of $2.59. Our full year 2021 guidance includes approximately 30 cents per share of estimated divestiture & other related costs, the results of the operations to be divested, and the operational improvement plan costs.
The Company is also reconfirming its previously issued 2021 adjusted local currency revenue ^(2)^ to grow at a low to mid-single digit rate and adjusted local currency EBITDA ^(2)^ to grow at a mid-single digit rate. The Company also continues to expect, on a local currency basis, 2021 adjusted diluted earnings per share^(2)^ to grow at a mid-single digit growth rate compared to the Company’s 2020 adjusted diluted earnings per share of $2.79.
The Company expects earnings per share reported on a U.S. dollar basis to benefit by approximately ten cents based on current exchange rates.
The Company’s guidance is based upon current trends, current tax law, and the effects of COVID-19 to date. The full impacts of the ongoing COVID-19 pandemic remain uncertain and management will continue to monitor its impacts on our business.
| ^(2)^ | See “Reconciliation of Non-GAAP Amounts” at the end of this release for more information. |
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USE OF NON-GAAP FINANCIAL MEASURES
The Company’s non-GAAP financial measures eliminate the impact of certain items, which, depending on the measure, include, currency movements, depreciation and amortization, non-cash share-based compensation, divestiture & other related costs, operational improvement plan costs, and the results of the operations divested or to be divested. These measures are provided 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<br><br> <br>Earnings Release – Quarter Ended March 31, 2021<br><br> <br>April 23, 2021 | Page 5 |
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CONFERENCE CALL
The Company will host a conference call to discuss its 2021 first quarter financial results at 8:30 a.m. CDT on Friday, April 23, 2021. 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 April 30, 2021, by calling (877) 344-7529 and referring to conference identification number 10153329. 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 April 27, 2021.
This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2021 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, the availability of 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, acquisition and divestiture activities, and operational improvement plan; 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, 2020, 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<br><br> <br>Earnings Release – Quarter Ended March 31, 2021<br><br> <br>April 23, 2021 | Page 6 |
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ABOUT SENSIENT TECHNOLOGIES
Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. Sensient uses advanced technologies and robust global supply chain capabilities to develop specialized solutions for food and beverages, as well as products that serve the pharmaceutical, nutraceutical, cosmetic, and personal care industries. Sensient’s customers range in size from small entrepreneurial businesses to 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<br><br> <br>(In thousands, except percentages and per share amounts)<br><br> <br>(Unaudited) | Page 7 | ||||||||
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| 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 | % | |||
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| Sensient Technologies Corporation<br><br> <br>(In thousands)<br><br> <br>(Unaudited) | Page 8 | |||
|---|---|---|---|---|
| Consolidated Condensed Balance Sheets | March 31,<br><br> <br>2021 | December 31,<br><br> <br>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 |
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| Sensient Technologies Corporation<br><br> <br>(In thousands, except per share amounts)<br><br> <br>(Unaudited) | Page 9 | |||||
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| 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 | ||
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| Sensient Technologies Corporation<br><br> <br>(In thousands, except percentages and per share amounts)<br><br> <br>(Unaudited) | Page 10 |
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Reconciliation of Non-GAAP Amounts
The Company’s results for the three months ended March 31, 2021 and 2020 include adjusted revenue, adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which exclude divestiture & other related costs, operational improvement plan costs, and the results of operations divested or to be divested.
| 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 | % |
Note: Earnings per share calculations may not foot due to rounding differences.
| Results by Segment | Three Months Ended March 31, | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 2021 | Adjustments ^(1)^ | Adjusted<br><br> <br>2021 | 2020 | Adjustments ^(1)^ | Adjusted<br><br> <br>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 |
(1) For Revenue, adjustments consist of revenues of the product lines divested or to be divested. For Operating Income, adjustments consist of the results of the product lines divested or to be divested, divestiture & other related costs, and operational improvement plan costs.
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| Sensient Technologies Corporation<br><br> <br>(In thousands, except percentages)<br><br> <br>(Unaudited) | Page 11 |
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Reconciliation of Non-GAAP Amounts - Continued
The following table summarizes the percentage change in the 2021 results compared to the 2020 results for the corresponding periods.
| Three Months Ended March 31, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Total | Foreign Exchange<br><br> <br>Rates | Adjustments ^(2)^ | Adjusted<br><br> <br>Local <br><br> 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 | % |
(2) For Revenue, adjustments consist of revenues of the product lines divested or to be divested. For Operating Income, Diluted Earnings per Share, and Adjusted EBITDA, adjustments consist of the results of the product lines divested or to be divested, divestiture & other related costs, and operational improvement plan costs.
The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three months ended March 31, 2021 and 2020.
| 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 | % |
The following table summarizes the reconciliation between Net cash provided by operating activities (GAAP) and Free Cash Flow for the three months ended March 31, 2021 and 2020.
| 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 | %) |
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.
Exhibit 99.2
First Quarter 2021 Investor Presentation
2 FORWARD-LOOKING STATEMENTS This document contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2021 Financial Outlook” in this presentation. 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, the availability of 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, acquisition and divestiture activities, and operational improvement plan; 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, 2020 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 presentation contains time-sensitive information that reflects management’s best analysis only as of the date of this presentation. 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.
3 NON-GAAP FINANCIAL MEASURES Within this document, the Company reports certain non-GAAP financial measures, including: (1) adjusted revenue, adjusted operating income, adjusted net earnings, adjusted EBITDA, and adjusted diluted earnings per share (which exclude divestiture & other related costs, operational improvement plan costs, and the results of operations divested or to be divested), (2) adjusted results by segment (which exclude divestiture & other related costs, operational improvement plan costs, and the results of operations divested or to be divested), (3) percentage changes in revenue, operating income, diluted earnings per share, and EBITDA on an adjusted local currency basis (which eliminate the effects that result from translating its international operations into U.S. dollars and exclude divestiture & other related costs, operational improvement plan costs, and the results of operations divested or to be divested), and (4) adjusted EBITDA (which excludes depreciation and amortization expense, non- cash share based compensation expense, the results of the product lines divested or to be divested, the divestiture & other related costs, and operational improvement plan costs). The Company has included each of these non-GAAP measures in order to provide additional information regarding the 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 presentation and the Company’s 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 the Company believes 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. Refer to “Non-GAAP Financial Measures” at the end of this presentation for reconciliations and additional information.
4 Over 135 years of Industry Leadership Established in 1882 as Meadow Springs DistilleryEvolved into Universal Foods as a diversified food and ingredientscompanyName changed to Sensient Technologies Corporation in 2000Today, we are a provider of advanced technologies, serving markets with strong growth profiles through delivery of customized solutions for food and beverages, pharmaceutical, personal care, and other applications
5 Innovative Technologies Creating Unique Solutions Applications expertise and solutions-based sellingHigh impact relative to costTechnically-driven products that are difficult to replace Strong consumer trendsOpportunities to grow organically and through M&A
6 Focusing our portfolio and strengthening our commitment to the end markets Investing in core focus areas of Flavors and Extracts, NaturalIngredients, Food and Pharmaceutical Colors, and Personal CareDivested non-core product lines (inks, fragrances, and yogurt fruitprep product lines) where Sensient lacked scale to competeThe sale of these product lines solidifies our focus on core strategic businesses and improves the Company’s future growth profile
7 Color Group2020 Revenue: $501M 2020 Adj. Revenue*: $487M Core Areas of Focus: Food and Pharmaceutical Colors and Personal CareFlavors & Extracts Group2020 Revenue: $742M 2020 Adj. Revenue*: $642MCore Areas of Focus: Flavors and Extracts, Natural Ingredients, and Other Flavor IngredientsAsia Pacific Group2020 Revenue: $121M 2020 Adj. Revenue*: $121M Core Areas of Focus: Flavors and Colors for food and beverage Global Revenue by Group 2020 Global Revenues include intercompany sales which are eliminated on a consolidated basis.*Adj. Revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.
8 Global market leaderNatural color innovatorUnmatched innovation & applications expertise Color Group
9 Color Overview Food and Pharmaceutical 69% of Segment Revenue 71% of Adj. Segment Revenue LC Revenue ChangeQ1 ’21 +1.2% Market trend toward natural colors in food and beverageUnique value proposition for Pharmaceutical customers includescolors, flavors, coatings, and extracts Personal Care 28% of Segment Revenue 29% of Adj. Segment Revenue LC Revenue ChangeQ1 ’21 (8.5%) Demand for innovative products with multiple benefitsProduct line includes formulation aides and ingredients for colorcosmetics, hair care, and skin careResults continue to be negatively impacted by lower demand due to COVID Inks 3% of Segment Revenue Completed divestiture in June 2020 2020 Revenue: $501M 2020 Adj. Revenue*: $487M *Local-currency (LC) revenue and adjusted revenue are Non-GAAP metrics, please see our GAAP to Non- GAAP Reconciliation at the end of this document.
10 Flavors & Extracts Group Broad product offeringUnique ability to service global,regional, and local customersLeading technology platformsUnmatched applications expertise
11 Flavors & Extracts Overview Flavors, Extracts, and Flavor Ingredients 54% of Segment Revenue 62% of Adj. Segment Revenue LC Revenue Change Q1 ’21 +9.4% Opportunities for on trend products with extracts, taste modulation, and natural flavors NaturalIngredients 33% of Segment Revenue 38% of Adj. Segment Revenue LC Revenue ChangeQ1 ’21 +7.9% Leading provider of dehydrated onion, garlic, and other products Fragrances 11% of Segment Revenue LC Revenue Change Q1 ’21 (5.7%) Completed divestiture in April 2021 Yogurt Fruit Prep 2% of Segment Revenue Completed divestiture in September 2020 2020 Revenue: $742M 2020 Adj. Revenue*: $642M *Local-currency (LC) revenue and adjusted revenue are Non-GAAP metrics, please see our GAAP to Non- GAAP Reconciliation at the end of this document.
12 Asia Pacific Group 2020 adjusted revenue of $121 million and adjusted operating income of $22 millionSensient’s sales of flavors and colors for Food and Pharmaceutical are managed on a geographic basis and reported as a separate segmentManufacturing capabilities in Australia, New Zealand, China, Japan, Philippines, Thailand, and India; R&D capabilities in Singapore, Thailand, and ChinaQ1 2021 local currency adjusted revenue and operating profit improved 4.7% and 31.4%, respectively * Adjusted revenue, adjusted local currency revenue, adjusted operating income, and adjusted local currency operating income are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document.
13 2021 Q1 Segment Results Local Currency Adjusted Revenue* Q1 Color (1.9%) Flavors & Extracts 8.9% Asia Pacific 4.7% Color Group first quarter revenue decreased due to continued lower volume in Personal Care as a result of ongoing COVID impacts in the makeup category. Operating income was down in the quarter due to lower volumes in Personal Care and unfavorable product mix in Food and Pharmaceutical Colors.Flavors & Extracts Group reported higher revenue in the quarter driven by growth in all product categories. Operating income was up as a result of the higher volumes, product mix shift to more flavor sales, and the favorable impacts from cost reduction efforts.Asia Pacific Group first quarter revenue increased; however, COVID continues to impact the group in certain regions.Operating income improved substantially due to volume growthand lower operating costs as a result of previous cost reductioninitiatives. Local Currency Adjusted OperatingIncome* Q1 Color (13.3%) Flavors & Extracts 21.2% Asia Pacific 31.4% * Local-currency adjusted revenue and adjusted operating income are Non-GAAP metrics.Please see our GAAP to Non-GAAP Reconciliation at the end of this document.
14 2021 Q1 Consolidated Results Q1 Local Currency Adjusted Revenue* +4.0% Local Currency Adjusted OperatingIncome* +0.3% Local Currency Adjusted Diluted EPS* +4.2% Local Currency Adjusted EBITDA* +2.1% Q1 consolidated revenue was up due to continued strong growth in Flavors & Extracts and Asia Pacific groups. In particular, we continued to see growth in the savory, sweet and natural ingredients product lines. Consolidated revenue continues to be negatively impacted by COVID, particularly in the Personal Care business and certain countries within Asia Pacific.Q1 consolidated operating income was up due to volume growth in the Flavors & Extracts and Asia Pacific groups, portfolio mix shift to flavor product solutions in the Flavors & Extracts Group, and the realized benefits from our cost control initiatives across the groups. The operating income improvement was partially offset by lower volume in Personal Care and higher year-over-year Corporate expenses related to performance-based compensation. * Local-currency adjusted revenue, adjusted operating income, adjusted diluted EPS, and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document.
15 Capital Allocation Prioritize ROI capital projects Maintain dividend payout ratio Debt reduction to maintain targeted leverage Maintain financial flexibility to pursue M&A Excess capital returned to shareholdersthrough opportunistic share repurchases $50 $87 $50 $54 $57 $81 $56 $51 $39 $52 $31 $25 $9 $87 $118 $77 $62 $66 2017 2018 2019 2020 $- $50 $100 $150 $200 $250 2016 DOLLARS IN MILLIONS Share Repurchase Acquisitions Dividends Debt Repayments Capital Expenditures
15 Capital Allocation Prioritize ROI capital projects Maintain dividend payout ratio Debt reduction to maintain targeted leverage Maintain financial flexibility to pursue M&A Excess capital returned to shareholdersthrough opportunistic share repurchases $50 $87 $50 $54 $57 $81 $56 $51 $39 $52 $31 $25 $9 $87 $118 $77 $62 $66 2017 2018 2019 2020 $- $50 $100 $150 $200 $250 2016 DOLLARS IN MILLIONS Share Repurchase Acquisitions Dividends Debt Repayments Capital Expenditures
16 2021 Financial Outlook * Local-currency adjusted revenue, adjusted diluted EPS, and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. Metric Guidance Comments Diluted EPS (GAAP) Mid-to-high single digit growth Includes approximately 30 cents of divestiture related costs, operational improvement plan costs, and the results of operations of the remaining business to be divestedAt current rates FX provides a 10 cent benefit Adjusted Diluted EPS in LocalCurrency* Mid-single digit growth Excludes divestiture and other related costs and operational improvement plan costsExcludes results of operations of product lines divested or to bedivested Adjusted Local Currency Revenue* Low-to-mid-single digit growth Excludes revenue of product lines divested or to be divested Adjusted Local Currency EBITDA* Mid-single digit growth Excludes divestiture and other related costs and operational improvement plan costsExcludes results of operations of product lines divested or to bedivested
17 Why Invest? Strong competitive position‘Sticky’ business (& low portion of customer costs)Global presenceExposure to stable and growing markets Focused on improving returns and on growth
18 ESG Information Click here to access our Environmental Sensient is committed to the principles of sound environmental stewardship and the responsible and sustainable use of energy and natural resources.Long-term goals to reduce Energy, Water, and Hazardous Waste intensitySeed-to-shelf program focused on sustainable supply chainEmphasis on new products and technologies that minimize waste and environmental impactsChemical Risk Strategy implemented to identify and reduce risk in our portfolio Social Sensient strives to conduct business in an ethical manner and to make a positive contribution to society through our product offerings and business activities.Sensient’s Code of Conduct and Supplier Code of Conduct require strong ethical behavior, fair employment practices, and strict human rights practices and product safety standardsRobust product, environmental, and raw material safety programs designed to exceed industry standards.Raw material traceability and sustainability programsSupport for our local communities through volunteerism, financial donations, sponsorships, and employee education opportunities Governance Sensient is committed to maintaining the highest standards of professional conduct and strong corporategovernance practices through our comprehensive corporate governance framework.Board comprised of a majority of independent directors with diverse and accomplished backgroundsCommitted to board diversity and refreshment, we are a 2020 Women on Boards Winning Company for the seventh year in a row and we have added seven new directors since 2013. 40% of our Board is female.Robust Code of Conduct built on a foundation of ethics, safety and quality, and professionalism resulting in ethical and lawful conduct of our business
APPENDIX – NON-GAAP TABLES
20 Non-GAAP Financial Measures Note: EPS Calculations may not foot due to rounding differences Three Months EndedMarch 31, 2021 Three Months EndedMarch 31, 2020 Revenue (GAAP) $ 359,702 $ 350,677 Revenue of the product lines divested or to be divested (25,570) (36,585) Adjusted revenue $ 334,132 $ 314,092 Operating income (GAAP) $ 46,897 $ 34,561 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 Net earnings (GAAP) $ 31,668 $ 20,773 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 Diluted earnings per share (GAAP) $ 0.75 $ 0.49 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
21 Non-GAAP Financial Measures (Cont’d) Revenue Total ForeignExchange Rates Adjustments* AdjustedLocal 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% The following table summarizes the percentage change in the 2021 results compared to the 2020 results for the corresponding periods:Three Months Ended March 31, * For Revenue, adjustments consist of revenues of the product lines divested or to be divested. For Operating Income, Diluted Earnings per Share, and Adjusted EBITDA, adjustments consist of the results of the product lines divested or to be divested, divestiture & other related costs, and operational improvement plan costs.
22 Non-GAAP Financial Measures (Cont’d) 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,
22 Non-GAAP Financial Measures (Cont’d) 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,
23 Non-GAAP Financial Measures (Cont’d) Note: *Inks was divested in June 2020 and Yogurt Fruit Prep was divested in September 2020. Revenue Total Foreign Exchange Rates Local Currency Flavors, Extracts and Flavor Ingredients 12.2% 2.8% 9.4% Natural Ingredients 8.0% 0.1% 7.9% Fragrances 2.0% 7.7% (5.7%) Yogurt Fruit Prep* (58.3%) 0.0% (58.3%) Flavors & Extracts Group 7.7% 2.4% 5.3% Food and Pharmaceutical 3.5% 2.3% 1.2% Personal Care (5.6%) 2.9% (8.5%) Inks* (95.3%) 1.4% (96.7%) Color Group (5.4%) 2.4% (7.8%) Asia PacificTotal revenue including product lines divested or to be divested 11.1%2.6% 5.9%2.7% 5.2%(0.1%) Three Months Ended March 31, 2021
* For Revenue, adjustments consist of revenues of the product lines divested or to be divested. For Operating Income, adjustments consist of the results of the product lines divested or to be divested, divestiture & other related costs, and operational improvement plan costs.24 Q1 Divested Operations Results by Segment Three Months Ended March 31, Adjusted Adjusted Revenue 2021 Adjustments* 2021 2020 Adjustments* 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
25