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.
|
Exhibit
Number |
Description
|
Sensient Technologies Corporation Earnings Press Release for the Quarter Ended September 30, 2023.
|
|
Sensient Technologies Corporation Investor Presentation – Q3 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:
|
October 20, 2023
|
Contact:
Amy Agallar
(414) 347-3706
investor.relations@sensient.com
|
|
• |
Reported revenue increased 0.8% to $363.8 million versus last year’s results of $361.1 million. On a local currency basis(1), revenue decreased 2.0%.
|
|
• |
Reported operating income declined 6.2% to $44.5 million compared to $47.5 million recorded in the third quarter of 2022. On a local currency basis(1), operating income decreased 9.8%.
Local currency adjusted EBITDA(1) was down 7.1% in the third quarter, as a result of lower sales volumes.
|
|
• |
Reported diluted earnings per share was 75 cents in the third quarter of 2023 compared to 85 cents in the third quarter of 2022, a decrease of 11.8%. Local currency EPS(1) decreased
15.3% in the third quarter as a result of lower sales volumes and higher interest expense.
|
Sensient Technologies Corporation | Page 2 |
Earnings Release – Quarter Ended September 30, 2023
|
|
October 20, 2023
|
|
Reported
|
Local Currency(1)
|
|||||||||||||||
Revenue
|
Quarter
|
Year-to-Date
|
Quarter
|
Year-to-Date
|
||||||||||||
Flavors & Extracts
|
2.1
|
%
|
-0.2
|
%
|
-0.5
|
%
|
-1.1
|
%
|
||||||||
Color
|
-4.3
|
%
|
2.3
|
%
|
-8.2
|
%
|
1.1
|
%
|
||||||||
Asia Pacific
|
4.4
|
%
|
3.6
|
%
|
4.3
|
%
|
6.1
|
%
|
||||||||
Total Revenue
|
0.8
|
%
|
1.7
|
%
|
-2.0
|
%
|
1.0
|
%
|
Reported
|
Local Currency(1)
|
|||||||||||||||
Operating Profit
|
Quarter
|
Year-to-Date
|
Quarter
|
Year-to-Date
|
||||||||||||
Flavors & Extracts
|
-12.4
|
%
|
-16.9
|
%
|
-13.6
|
%
|
-17.5
|
%
|
||||||||
Color
|
-18.7
|
%
|
-6.7
|
%
|
-23.4
|
%
|
-7.8
|
%
|
||||||||
Asia Pacific
|
16.4
|
%
|
8.9
|
%
|
15.8
|
%
|
11.6
|
%
|
||||||||
Total Operating Profit
|
-6.2
|
%
|
-5.5
|
%
|
-9.8
|
%
|
-6.1
|
%
|
Sensient Technologies Corporation | Page 3 |
Earnings Release – Quarter Ended September 30, 2023
|
|
October 20, 2023
|
|
Sensient Technologies Corporation | Page 4 |
Earnings Release – Quarter Ended September 30, 2023
|
|
October 20, 2023
|
|
|
(1) |
Please refer to “Reconciliation of Non-GAAP Amounts” at the end of this release for more information regarding our non-GAAP
financial measures.
|
Sensient Technologies Corporation | Page 5 |
Earnings Release – Quarter Ended September 30, 2023
|
|
October 20, 2023
|
|
Sensient Technologies Corporation | Page 6 |
Earnings Release – Quarter Ended September 30, 2023
|
|
October 20, 2023
|
|
Sensient Technologies Corporation
|
Page 7
|
(In thousands, except percentages and per share amounts)
|
|
(Unaudited)
|
|
Consolidated Statements of Earnings
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
2023
|
2022
|
% Change
|
2023
|
2022
|
% Change
|
|||||||||||||||||||
Revenue
|
$
|
363,829
|
$
|
361,076
|
0.8
|
%
|
$
|
1,107,148
|
$
|
1,088,303
|
1.7
|
%
|
||||||||||||
Cost of products sold
|
250,202
|
239,318
|
4.5
|
%
|
746,681
|
710,696
|
5.1
|
%
|
||||||||||||||||
Selling and administrative expenses
|
69,096
|
74,265
|
(7.0
|
%)
|
213,507
|
222,081
|
(3.9
|
%)
|
||||||||||||||||
Operating income
|
44,531
|
47,493
|
(6.2
|
%)
|
146,960
|
155,526
|
(5.5
|
%)
|
||||||||||||||||
Interest expense
|
6,294
|
3,672
|
18,648
|
9,748
|
||||||||||||||||||||
Earnings before income taxes
|
38,237
|
43,821
|
128,312
|
145,778
|
||||||||||||||||||||
Income taxes
|
6,694
|
7,773
|
29,085
|
34,012
|
||||||||||||||||||||
Net earnings
|
$
|
31,543
|
$
|
36,048
|
(12.5
|
%)
|
$
|
99,227
|
$
|
111,766
|
(11.2
|
%)
|
||||||||||||
Earnings per share of common stock:
|
||||||||||||||||||||||||
Basic
|
$
|
0.75
|
$
|
0.86
|
$
|
2.36
|
$
|
2.67
|
||||||||||||||||
Diluted
|
$
|
0.75
|
$
|
0.85
|
$
|
2.35
|
$
|
2.65
|
||||||||||||||||
Average common shares outstanding:
|
||||||||||||||||||||||||
Basic
|
42,045
|
41,896
|
42,020
|
41,885
|
||||||||||||||||||||
Diluted
|
42,233
|
42,242
|
42,241
|
42,199
|
Results by Segment
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
Revenue
|
2023
|
2022
|
% Change
|
2023
|
2022
|
% Change
|
||||||||||||||||||
Flavors & Extracts
|
$
|
190,997
|
$
|
187,046
|
2.1
|
%
|
$
|
558,133
|
$
|
559,110
|
(0.2
|
%)
|
||||||||||||
Color
|
144,939
|
151,469
|
(4.3
|
%)
|
466,563
|
456,175
|
2.3
|
%
|
||||||||||||||||
Asia Pacific
|
36,774
|
35,221
|
4.4
|
%
|
112,888
|
109,014
|
3.6
|
%
|
||||||||||||||||
Intersegment elimination
|
(8,881
|
)
|
(12,660
|
)
|
(30,436
|
)
|
(35,996
|
)
|
||||||||||||||||
Consolidated
|
$
|
363,829
|
$
|
361,076
|
0.8
|
%
|
$
|
1,107,148
|
$
|
1,088,303
|
1.7
|
%
|
||||||||||||
Operating Income
|
||||||||||||||||||||||||
Flavors & Extracts
|
$
|
23,078
|
$
|
26,337
|
(12.4
|
%)
|
$
|
69,714
|
$
|
83,929
|
(16.9
|
%)
|
||||||||||||
Color
|
22,925
|
28,200
|
(18.7
|
%)
|
84,027
|
90,035
|
(6.7
|
%)
|
||||||||||||||||
Asia Pacific
|
8,095
|
6,952
|
16.4
|
%
|
24,911
|
22,877
|
8.9
|
%
|
||||||||||||||||
Corporate & Other
|
(9,567
|
)
|
(13,996
|
)
|
(31,692
|
)
|
(41,315
|
)
|
||||||||||||||||
Consolidated
|
$
|
44,531
|
$
|
47,493
|
(6.2
|
%)
|
$
|
146,960
|
$
|
155,526
|
(5.5
|
%)
|
Sensient Technologies Corporation
|
Page 8
|
(In thousands)
|
|
(Unaudited)
|
Consolidated Condensed Balance Sheets
|
September 30,
|
December 31,
|
||||||
2023
|
2022
|
|||||||
Cash and cash equivalents
|
$
|
31,985
|
$
|
20,921
|
||||
Trade accounts receivable
|
284,668
|
302,109
|
||||||
Inventories
|
587,024
|
564,110
|
||||||
Prepaid expenses and other current assets
|
41,477
|
47,640
|
||||||
Total Current Assets
|
945,154
|
934,780
|
||||||
Goodwill & intangible assets (net)
|
432,970
|
434,315
|
||||||
Property, plant, and equipment (net)
|
506,549
|
483,193
|
||||||
Other assets
|
125,503
|
129,326
|
||||||
Total Assets
|
$
|
2,010,176
|
$
|
1,981,614
|
||||
Trade accounts payable
|
$
|
110,973
|
$
|
142,365
|
||||
Short-term borrowings
|
22,807
|
20,373
|
||||||
Other current liabilities
|
90,037
|
109,415
|
||||||
Total Current Liabilities
|
223,817
|
272,153
|
||||||
Long-term debt
|
648,556
|
630,331
|
||||||
Accrued employee and retiree benefits
|
26,830
|
26,364
|
||||||
Other liabilities
|
53,317
|
53,168
|
||||||
Shareholders' Equity
|
1,057,656
|
999,598
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
2,010,176
|
$
|
1,981,614
|
Sensient Technologies Corporation
|
Page 9
|
(In thousands, except per share amounts)
|
|
(Unaudited)
|
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
99,227
|
$
|
111,766
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
43,360
|
39,262
|
||||||
Share-based compensation expense
|
7,285
|
12,476
|
||||||
Net (gain) loss on assets
|
(81
|
)
|
283
|
|||||
Deferred income taxes
|
2,082
|
20,465
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Trade accounts receivable
|
18,830
|
(39,520
|
)
|
|||||
Inventories
|
(21,455
|
)
|
(112,021
|
)
|
||||
Prepaid expenses and other assets
|
842
|
(39,598
|
)
|
|||||
Trade accounts payable and other accrued expenses
|
(20,572
|
)
|
24,110
|
|||||
Accrued salaries, wages, and withholdings
|
(16,749
|
)
|
1,819
|
|||||
Income taxes
|
(6,536
|
)
|
(4,342
|
)
|
||||
Other liabilities
|
587
|
198
|
||||||
Net cash provided by operating activities
|
106,820
|
14,898
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant, and equipment
|
(67,718
|
)
|
(51,703
|
)
|
||||
Proceeds from sale of assets
|
130
|
94
|
||||||
Acquisiton of new businesses
|
-
|
(1,048
|
)
|
|||||
Other investing activities
|
2,036
|
947
|
||||||
Net cash used in investing activities
|
(65,552
|
)
|
(51,710
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
197,577
|
187,715
|
||||||
Debt payments
|
(174,083
|
)
|
(87,657
|
)
|
||||
Dividends paid
|
(51,900
|
)
|
(51,681
|
)
|
||||
Other financing activities
|
(8,034
|
)
|
(2,056
|
)
|
||||
Net cash (used in) provided by financing activities
|
(36,440
|
)
|
46,321
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
6,236
|
11,330
|
||||||
Net increase in cash and cash equivalents
|
11,064
|
20,839
|
||||||
Cash and cash equivalents at beginning of period
|
20,921
|
25,740
|
||||||
Cash and cash equivalents at end of period
|
$
|
31,985
|
$
|
46,579
|
||||
Supplemental Information
|
||||||||
Nine Months Ended September 30,
|
2023
|
2022
|
||||||
Dividends paid per share
|
$
|
1.23
|
$
|
1.23
|
Sensient Technologies Corporation
|
Page 10
|
(In thousands, except percentages)
|
|
(Unaudited)
|
|
Three Months Ended September 30,
|
|||||||||||
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Local
Currency
|
|||||||||
Flavors & Extracts
|
2.1
|
%
|
2.6
|
%
|
(0.5
|
%)
|
||||||
Color
|
(4.3
|
%)
|
3.9
|
%
|
(8.2
|
%)
|
||||||
Asia Pacific
|
4.4
|
%
|
0.1
|
%
|
4.3
|
%
|
||||||
Total Revenue
|
0.8
|
%
|
2.8
|
%
|
(2.0
|
%)
|
||||||
Operating Income
|
||||||||||||
Flavors & Extracts
|
(12.4
|
%)
|
1.2
|
%
|
(13.6
|
%)
|
||||||
Color
|
(18.7
|
%)
|
4.7
|
%
|
(23.4
|
%)
|
||||||
Asia Pacific
|
16.4
|
%
|
0.6
|
%
|
15.8
|
%
|
||||||
Corporate & Other
|
(31.6
|
%)
|
0.0
|
%
|
(31.6
|
%)
|
||||||
Total Operating Income
|
(6.2
|
%)
|
3.6
|
%
|
(9.8
|
%)
|
||||||
Diluted Earnings Per Share
|
(11.8
|
%)
|
3.5
|
%
|
(15.3
|
%)
|
||||||
Adjusted EBITDA
|
(3.9
|
%)
|
3.2
|
%
|
(7.1
|
%)
|
Nine Months Ended September 30,
|
||||||||||||
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Local
Currency
|
|||||||||
Flavors & Extracts
|
(0.2
|
%)
|
0.9
|
%
|
(1.1
|
%)
|
||||||
Color
|
2.3
|
%
|
1.2
|
%
|
1.1
|
%
|
||||||
Asia Pacific
|
3.6
|
%
|
(2.5
|
%)
|
6.1
|
%
|
||||||
Total Revenue
|
1.7
|
%
|
0.7
|
%
|
1.0
|
%
|
||||||
Operating Income
|
||||||||||||
Flavors & Extracts
|
(16.9
|
%)
|
0.6
|
%
|
(17.5
|
%)
|
||||||
Color
|
(6.7
|
%)
|
1.1
|
%
|
(7.8
|
%)
|
||||||
Asia Pacific
|
8.9
|
%
|
(2.7
|
%)
|
11.6
|
%
|
||||||
Corporate & Other
|
(23.3
|
%)
|
0.0
|
%
|
(23.3
|
%)
|
||||||
Total Operating Income
|
(5.5
|
%)
|
0.6
|
%
|
(6.1
|
%)
|
||||||
Diluted Earnings Per Share
|
(11.3
|
%)
|
0.4
|
%
|
(11.7
|
%)
|
||||||
Adjusted EBITDA
|
(4.7
|
%)
|
0.5
|
%
|
(5.2
|
%)
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2023
|
2022
|
% Change
|
2023
|
2022
|
% Change
|
|||||||||||||||||||
Operating income (GAAP)
|
$
|
44,531
|
$
|
47,493
|
(6.2
|
%)
|
$
|
146,960
|
$
|
155,526
|
(5.5
|
%)
|
||||||||||||
Depreciation and amortization
|
14,770
|
13,082
|
43,360
|
39,262
|
||||||||||||||||||||
Share-based compensation expense
|
2,519
|
3,785
|
7,285
|
12,476
|
||||||||||||||||||||
Adjusted EBITDA
|
$
|
61,820
|
$
|
64,360
|
(3.9
|
%)
|
$
|
197,605
|
$
|
207,264
|
(4.7
|
%)
|
Sensient Technologies Corporation
|
Page 11
|
(In thousands, except percentages)
|
|
(Unaudited)
|
September 30,
|
||||||||
Debt
|
2023
|
2022
|
||||||
Short-term borrowings
|
$
|
22,807
|
$
|
21,947
|
||||
Long-term debt
|
648,556
|
547,190
|
||||||
Credit Agreement adjustments(1)
|
(19,463
|
)
|
(30,694
|
)
|
||||
Net Debt
|
$
|
651,900
|
$
|
538,443
|
||||
Operating income (GAAP)
|
$
|
188,185
|
$
|
195,946
|
||||
Depreciation and amortization
|
56,565
|
52,485
|
||||||
Share-based compensation expense
|
10,947
|
15,618
|
||||||
Other non-operating (gains) losses(2)
|
(3,783
|
)
|
122
|
|||||
Credit Adjusted EBITDA
|
$
|
251,914
|
$
|
264,171
|
||||
Net Debt to Credit Adjusted EBITDA
|
2.6
|
x |
2.0
|
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
|