|
Wisconsin
|
001-07626
|
39-0561070
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
| ☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
| ☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
| ☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
| ☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
Common stock, par value $0.10 per share
|
SXT
|
New York Stock Exchange
|
| Item 2.02 |
Results of Operations and Financial Condition.
|
| Item 7.01 |
Regulation FD Disclosure.
|
| Item 9.01 |
Financial Statements and Exhibits.
|
|
|
(d) |
Exhibits. The following exhibits are furnished with this Current Report
on Form 8-K:
|
|
Exhibit
Number
|
Description
|
|
Sensient Technologies Corporation Earnings Press Release for the Quarter Ended March 31, 2023.
|
|
|
Sensient Technologies Corporation Investor Presentation – Q1 2023.
|
|
| 104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
|
SENSIENT TECHNOLOGIES CORPORATION
|
|||
|
By:
|
/s/ John J. Manning
|
||
|
Name:
|
John J. Manning
|
||
|
Title:
|
Senior Vice President, General Counsel, and Secretary
|
||
|
Date:
|
April 28, 2023
|
||
|
Contact:
|
Amy Agallar
|
|
Reported
|
||||
|
Revenue
|
Quarter
|
|||
|
Flavors & Extracts
|
-2.1
|
%
|
||
|
Color
|
8.6
|
%
|
||
|
Asia Pacific
|
9.9
|
%
|
||
|
Total Revenue
|
3.8
|
%
|
||
|
Local Currency (1)
Quarter
|
||||
|
Revenue
|
||||
|
Flavors & Extracts
|
-1.3
|
%
|
||
|
Color
|
10.0
|
%
|
||
|
Asia Pacific
|
14.6
|
%
|
||
|
Total Revenue
|
5.2
|
%
|
||
|
(1) Local currency percentage changes are described in more detail in the "Reconciliation of Non-GAAP Amounts" at the end of this release.
|
||||
|
Sensient Technologies Corporation
|
Page 2
|
|
Earnings Release – Quarter Ended March 31, 2023
|
|
|
April 28, 2023
|
|
Sensient Technologies Corporation
|
Page 3
|
|
Earnings Release – Quarter Ended March 31, 2023
|
|
|
April 28, 2023
|
| (2) |
See “Reconciliation of Non-GAAP Amounts” at the end of this release for more information.
|
|
Sensient Technologies Corporation
|
Page 4
|
|
Earnings Release – Quarter Ended March 31, 2023
|
|
|
April 28, 2023
|
|
Sensient Technologies Corporation
|
Page 5
|
|
Earnings Release – Quarter Ended March 31, 2023
|
|
|
April 28, 2023
|
|
Sensient Technologies Corporation
|
Page 6
|
|
(In thousands, except percentages and per share amounts)
|
|
|
(Unaudited)
|
|
Consolidated Statements of Earnings
|
Three Months Ended March 31,
|
|||||||||||
|
2023
|
2022
|
% Change
|
||||||||||
|
Revenue
|
$
|
369,006
|
$
|
355,521
|
3.8
|
%
|
||||||
|
Cost of products sold
|
244,343
|
230,675
|
5.9
|
%
|
||||||||
|
Selling and administrative expenses
|
73,825
|
72,057
|
2.5
|
%
|
||||||||
|
Operating income
|
50,838
|
52,789
|
(3.7
|
%)
|
||||||||
|
Interest expense
|
6,002
|
2,993
|
||||||||||
|
Earnings before income taxes
|
44,836
|
49,796
|
||||||||||
|
Income taxes
|
11,185
|
12,725
|
||||||||||
|
Net earnings
|
$
|
33,651
|
$
|
37,071
|
(9.2
|
%)
|
||||||
|
Earnings per share of common stock:
|
||||||||||||
|
Basic
|
$
|
0.80
|
$
|
0.89
|
||||||||
|
Diluted
|
$
|
0.80
|
$
|
0.88
|
||||||||
|
Average common shares outstanding:
|
||||||||||||
|
Basic
|
41,970
|
41,865
|
||||||||||
|
Diluted
|
42,255
|
42,148
|
||||||||||
|
Results by Segment
|
Three Months Ended March 31,
|
|||||||||||
|
2023
|
2022
|
% Change
|
||||||||||
|
Revenue
|
||||||||||||
|
Flavors & Extracts
|
$
|
178,852
|
$
|
182,727
|
(2.1
|
%)
|
||||||
|
Color
|
161,161
|
148,438
|
8.6
|
%
|
||||||||
|
Asia Pacific
|
40,085
|
36,465
|
9.9
|
%
|
||||||||
|
Intersegment elimination
|
(11,092
|
)
|
(12,109
|
)
|
||||||||
|
Consolidated
|
$
|
369,006
|
$
|
355,521
|
3.8
|
%
|
||||||
|
Operating Income
|
||||||||||||
|
Flavors & Extracts
|
$
|
22,180
|
$
|
27,579
|
(19.6
|
%)
|
||||||
|
Color
|
31,885
|
30,657
|
4.0
|
%
|
||||||||
|
Asia Pacific
|
9,241
|
8,204
|
12.6
|
%
|
||||||||
|
Corporate & Other
|
(12,468
|
)
|
(13,651
|
)
|
||||||||
|
Consolidated
|
$
|
50,838
|
$
|
52,789
|
(3.7
|
%)
|
||||||
|
Sensient Technologies Corporation
|
Page 7
|
|
(In thousands)
|
|
|
(Unaudited)
|
|
Consolidated Condensed Balance Sheets
|
March 31,
2023
|
December 31,
2022
|
||||||
|
Cash and cash equivalents
|
$
|
24,017
|
$
|
20,921
|
||||
|
Trade accounts receivable
|
312,530
|
302,109
|
||||||
|
Inventories
|
573,706
|
564,110
|
||||||
|
Prepaid expenses and other current assets
|
49,639
|
47,640
|
||||||
|
Total Current Assets
|
959,892
|
934,780
|
||||||
|
Goodwill & intangible assets (net)
|
437,871
|
434,315
|
||||||
|
Property, plant, and equipment (net)
|
493,779
|
483,193
|
||||||
|
Other assets
|
131,185
|
129,326
|
||||||
|
Total Assets
|
$
|
2,022,727
|
$
|
1,981,614
|
||||
|
Trade accounts payable
|
$
|
121,290
|
$
|
142,365
|
||||
|
Short-term borrowings
|
24,849
|
20,373
|
||||||
|
Other current liabilities
|
88,512
|
109,415
|
||||||
|
Total Current Liabilities
|
234,651
|
272,153
|
||||||
|
Long-term debt
|
679,779
|
630,331
|
||||||
|
Accrued employee and retiree benefits
|
27,224
|
26,364
|
||||||
|
Other liabilities
|
52,852
|
53,168
|
||||||
|
Shareholders' Equity
|
1,028,221
|
999,598
|
||||||
|
Total Liabilities and Shareholders' Equity
|
$
|
2,022,727
|
$
|
1,981,614
|
||||
|
Sensient Technologies Corporation
|
Page 8
|
|
(In thousands, except per share amounts)
|
|
|
(Unaudited)
|
|
Consolidated Statements of Cash Flows
|
||||||||
|
Three Months Ended March 31,
|
||||||||
|
2023
|
2022
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Net earnings
|
$
|
33,651
|
$
|
37,071
|
||||
|
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
14,150
|
13,056
|
||||||
|
Share-based compensation expense
|
2,267
|
4,163
|
||||||
|
Net loss (gain) on assets
|
8
|
(48
|
)
|
|||||
|
Deferred income taxes
|
(2,351
|
)
|
4,211
|
|||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Trade accounts receivable
|
(7,142
|
)
|
(20,841
|
)
|
||||
|
Inventories
|
(4,374
|
)
|
(11,901
|
)
|
||||
|
Prepaid expenses and other assets
|
(2,062
|
)
|
(11,111
|
)
|
||||
|
Trade accounts payable and other accrued expenses
|
(19,251
|
)
|
(10,267
|
)
|
||||
|
Accrued salaries, wages, and withholdings
|
(21,187
|
)
|
(12,425
|
)
|
||||
|
Income taxes
|
2,548
|
7,063
|
||||||
|
Other liabilities
|
698
|
137
|
||||||
|
Net cash used in operating activities
|
(3,045
|
)
|
(892
|
)
|
||||
|
Cash flows from investing activities:
|
||||||||
|
Acquisition of property, plant, and equipment
|
(22,278
|
)
|
(12,736
|
)
|
||||
|
Proceeds from sale of assets
|
1
|
89
|
||||||
|
Other investing activities
|
(602
|
)
|
434
|
|||||
|
Net cash used in investing activities
|
(22,879
|
)
|
(12,213
|
)
|
||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from additional borrowings
|
50,827
|
40,099
|
||||||
|
Debt payments
|
(1,351
|
)
|
(6,275
|
)
|
||||
|
Dividends paid
|
(17,255
|
)
|
(17,211
|
)
|
||||
|
Other financing activities
|
(7,669
|
)
|
(1,679
|
)
|
||||
|
Net cash provided by financing activities
|
24,552
|
14,934
|
||||||
|
Effect of exchange rate changes on cash and cash equivalents
|
4,468
|
4,606
|
||||||
|
Net increase in cash and cash equivalents
|
3,096
|
6,435
|
||||||
|
Cash and cash equivalents at beginning of period
|
20,921
|
25,740
|
||||||
|
Cash and cash equivalents at end of period
|
$
|
24,017
|
$
|
32,175
|
||||
|
Supplemental Information
|
||||||||
|
Three Months Ended March 31,
|
2023
|
2022
|
||||||
|
Dividends paid per share
|
$
|
0.41
|
$
|
0.41
|
||||
|
Sensient Technologies Corporation
|
Page 9
|
|
(In thousands, except percentages)
|
|
|
(Unaudited)
|
|
Three Months Ended March 31,
|
||||||||||||
|
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Local
Currency
|
|||||||||
|
Flavors & Extracts
|
(2.1
|
%)
|
(0.8
|
%)
|
(1.3
|
%)
|
||||||
|
Color
|
8.6
|
%
|
(1.4
|
%)
|
10.0
|
%
|
||||||
|
Asia Pacific
|
9.9
|
%
|
(4.7
|
%)
|
14.6
|
%
|
||||||
|
Total Revenue
|
3.8
|
%
|
(1.4
|
%)
|
5.2
|
%
|
||||||
|
Operating Income
|
||||||||||||
|
Flavors & Extracts
|
(19.6
|
%)
|
(0.1
|
%)
|
(19.5
|
%)
|
||||||
|
Color
|
4.0
|
%
|
(2.3
|
%)
|
6.3
|
%
|
||||||
|
Asia Pacific
|
12.6
|
%
|
(5.4
|
%)
|
18.0
|
%
|
||||||
|
Corporate & Other
|
(8.7
|
%)
|
(0.1
|
%)
|
(8.6
|
%)
|
||||||
|
Total Operating Income
|
(3.7
|
%)
|
(2.2
|
%)
|
(1.5
|
%)
|
||||||
|
Diluted Earnings Per Share
|
(9.1
|
%)
|
(2.3
|
%)
|
(6.8
|
%)
|
||||||
|
Adjusted EBITDA
|
(3.9
|
%)
|
(1.9
|
%)
|
(2.0
|
%)
|
||||||
|
Three Months Ended March 31,
|
||||||||||||
|
2023
|
2022
|
% Change
|
||||||||||
|
Operating income (GAAP)
|
$
|
50,838
|
$
|
52,789
|
(3.7
|
%)
|
||||||
|
Depreciation and amortization
|
14,150
|
13,056
|
||||||||||
|
Share-based compensation expense
|
2,267
|
4,163
|
||||||||||
|
Adjusted EBITDA
|
$
|
67,255
|
$
|
70,008
|
(3.9
|
%)
|
||||||
|
March 31,
|
||||||||
|
Debt
|
2023
|
2022
|
||||||
|
Short-term borrowings
|
$
|
24,849
|
$
|
7,475
|
||||
|
Long-term debt
|
679,779
|
530,005
|
||||||
|
Credit Agreement adjustments(1)
|
(11,525
|
)
|
(18,590
|
)
|
||||
|
Net Debt
|
$
|
693,103
|
$
|
518,890
|
||||
|
Operating income (GAAP)
|
$
|
194,800
|
$
|
175,920
|
||||
|
Depreciation and amortization
|
53,561
|
52,308
|
||||||
|
Share-based compensation expense
|
14,242
|
11,623
|
||||||
|
Other non-operating (gains) losses(2)
|
(3,359
|
)
|
8,544
|
|||||
|
Credit Adjusted EBITDA
|
$
|
259,244
|
$
|
248,395
|
||||
|
Net Debt to Credit Adjusted EBITDA
|
2.7
|
x
|
2.1
|
x
|
||||
|
Twelve Months Ended December 31,
|
||||
|
2022
|
||||
|
Diluted earnings per share (GAAP)
|
$
|
3.34
|
||
|
Divestiture & other related income, net of tax
|
(0.04
|
)
|
||
|
Adjusted diluted earnings per share
|
$
|
3.29
|
||