|
--Cash Flows from Operations Increase 8.4% to $43.1 Million
Sensient Technologies Corporation (SXT) reported diluted earnings
per share of 66 cents in the quarter, a third quarter record and an
increase of 3.1% over the 64 cents earned in last year’s third quarter.
In local currency, third quarter earnings per share increased 7.8% as
the impact of foreign currency translation reduced reported earnings by
three cents per share. Foreign currency translation also significantly
reduced revenue and operating income in the quarter. Revenue was $369.4
million in the third quarter compared to $363.8 million in last year’s
third quarter. Operating income increased to $50.7 million from the
$49.9 million reported in the comparable period last year. In local
currency, both revenue and operating income increased by more than 5% in
the quarter.
Diluted earnings per share were $1.94 for the first nine months of 2012,
an increase of 5.4% over the $1.84 reported in last year’s first nine
months. Foreign currency translation reduced year to date earnings by
seven cents per share. In local currency, revenue increased 4.5% and
diluted earnings per share increased 9.2% in the first nine months of
this year.
Cash flows from operations increased to $43.1 million in the third
quarter, up 8.4% from the $39.7 million generated in last year’s third
quarter. Debt was reduced by over $13 million in the third quarter.
"Sensient delivered another strong performance in the third quarter
despite the difficult economic conditions," said Kenneth P. Manning,
Chairman and CEO of Sensient Technologies Corporation. "We continue to
see opportunities for growth in all of our Groups and I remain very
optimistic about the Company’s future."
BUSINESS REVIEW
The Color Group reported revenue of $120.7 million in the third quarter,
compared to $121.0 million reported in the comparable period last year.
Operating income increased 2.5% to a third quarter record of $23.5
million, from $22.9 million in last year’s third quarter. In local
currency, revenue and operating income increased 5.0% and 7.9%,
respectively. The Color Group’s focus on higher value products resulted
in stronger operating margins. The operating margin in the quarter
increased to 19.4%, up from 18.9% reported in last year’s third quarter.
The Flavors & Fragrances Group reported third quarter revenue of $224.7
million compared to $220.3 million in last year’s third quarter.
Operating income was $31.8 million in the quarter compared to $33.1
million in the third quarter of 2011. Foreign currency translation
reduced revenue by 3.4% and operating income by 1.4% in the quarter.
Third quarter results were affected by customer inventory destocking and
higher raw material costs.
The Corporate & Other segment, which includes the Company’s operations
in Asia Pacific and China, and the flavor businesses in Central and
South America, reported revenue of $40.8 million in the quarter, an
increase of 8.4% over the $37.6 million reported in last year’s third
quarter.
2012 OUTLOOK
Sensient has narrowed its guidance for 2012 diluted earnings per share,
which is now expected to be between $2.51 and $2.56.
CONFERENCE CALL
The company will host a conference call to discuss its 2012 third
quarter financial results at 10:00 a.m. CDT on Friday, October 19, 2012.
To make a reservation for the conference call, please contact InterCall
Teleconferencing at (706) 645-6973 and refer to the Sensient
Technologies Corporation conference call.
A replay will be available beginning at 1:00 p.m. CDT on October 19,
2012, through midnight on October 26, 2012, by calling (404) 537-3406
and referring to conference identification number 36872451. A transcript
of the call will also be posted on the company’s web site at www.sensient.com
after the call concludes.
This release contains forward-looking statements (as that term is
defined in the Private Securities Litigation Reform Act of 1995) that
reflect management’s current assumptions and estimates of future
economic circumstances, industry conditions, company performance and
financial results. A variety of factors could cause the Company’s
actual results and experience to differ materially from the anticipated
results, including, but not limited to the factors noted in this press
release and in the Management’s Discussion and Analysis in our most
recently filed annual report on Form 10-K for the year ended December
31, 2011, and quarterly report on Form 10-Q for the quarter ended June
30, 2012. The forward-looking statements in this press release speak
only as to the date of this release. Sensient Technologies
Corporation expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to such statements to reflect any
change in its expectations upon which such statements are based.
ABOUT SENSIENT TECHNOLOGIES
Sensient Technologies Corporation is a leading global manufacturer and
marketer of colors, flavors and fragrances. Sensient employs advanced
technologies at facilities around the world to develop specialty food
and beverage systems, cosmetic and pharmaceutical systems, inkjet and
specialty inks and colors, and other specialty and fine chemicals. The
Company’s customers include major international manufacturers
representing most of the world’s best-known brands. Sensient is
headquartered in Milwaukee, Wisconsin.
www.sensient.com
Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
Consolidated Statements of Earnings Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------------------- ------------------------------------------------
2012 2011 % Change 2012 2011 % Change
---------------- ---------------- ----------- ------------------ ------------------ ----------
Revenue $ 369,371 $ 363,751 1.5 % $ 1,102,808 $ 1,090,431 1.1 %
Cost of products sold 251,778 249,086 1.1 % 749,928 748,916 0.1 %
Selling and administrative expenses 66,892 64,722 3.4 % 201,392 193,642 4.0 %
------- ------- --------- ---------
Operating income 50,701 49,943 1.5 % 151,488 147,873 2.4 %
Interest expense 4,483 4,934 13,236 14,919
------- ------- --------- ---------
Earnings before income taxes 46,218 45,009 2.7 % 138,252 132,954 4.0 %
Income taxes 13,342 13,012 41,565 41,056
------- ------- --------- ---------
Net earnings $ 32,876 $ 31,997 2.7 % $ 96,687 $ 91,898 5.2 %
=== ======= === ======= === ========= === =========
Earnings per common share:
Basic $ 0.66 $ 0.64 3.1 % $ 1.95 $ 1.85 5.4 %
=== ======= === ======= === ========= === =========
Diluted $ 0.66 $ 0.64 3.1 % $ 1.94 $ 1.84 5.4 %
=== ======= === ======= === ========= === =========
Average common shares outstanding:
Basic 49,536 49,776 -0.5 % 49,616 49,723 -0.2 %
======= ======= ========= =========
Diluted 49,785 49,967 -0.4 % 49,850 49,911 -0.1 %
======= ======= ========= =========
Results by Segment Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------------------- ------------------------------------------------
Revenue 2012 2011 % Change 2012 2011 % Change
----------------------------------- ------------- ------------- --------- --------------- --------------- --------
Flavors & Fragrances $ 224,699 $ 220,266 2.0 % $ 658,348 $ 652,063 1.0 %
Color 120,660 120,975 -0.3 % 379,851 379,038 0.2 %
Corporate & Other* 40,790 37,643 8.4 % 116,443 108,515 7.3 %
Intersegment elimination (16,778 ) (15,133 ) 10.9 % (51,834 ) (49,185 ) 5.4 %
------- --- ------- --- --------- --- --------- ---
Consolidated $ 369,371 $ 363,751 1.5 % $ 1,102,808 $ 1,090,431 1.1 %
=== ======= === ======= === ========= === =========
Operating Income
-----------------------------------
Flavors & Fragrances $ 31,810 $ 33,149 -4.0 % $ 94,334 $ 97,634 -3.4 %
Color 23,459 22,891 2.5 % 74,930 69,886 7.2 %
Corporate & Other* (4,568 ) (6,097 ) -25.1 % (17,776 ) (19,647 ) -9.5 %
------- --- ------- --- --------- --- --------- ---
Consolidated $ 50,701 $ 49,943 1.5 % $ 151,488 $ 147,873 2.4 %
=== ======= === ======= === ========= === =========
* Beginning in the first quarter of 2012, the results of operations for
the Company’s flavors business in Central and South America, previously
reported in the Flavors & Fragrances Group, are reported in the
Corporate & Other segment. Results for 2011 have been restated to
reflect this change.
Sensient Technologies Corporation
(In thousands, except per share amounts)
Consolidated Condensed Balance Sheets
September 30, 2012 2011
-------------------- --------------------
Current assets $ 750,358 $ 697,625
Goodwill and intangibles (net) 458,370 455,360
Property, plant and equipment (net) 488,707 437,998
Other assets 39,405 40,442
--------- ---------
Total Assets $ 1,736,840 $ 1,631,425
==== ========= ==== =========
Current liabilities $ 208,511 $ 212,967
Long-term debt 328,837 301,064
Accrued employee and retiree benefits 56,420 57,740
Other liabilities 31,085 26,758
Shareholders’ equity 1,111,987 1,032,896
--------- ---------
Total Liabilities and Shareholders’ Equity $ 1,736,840 $ 1,631,425
==== ========= ==== =========
Consolidated Statements of Cash Flows
Three Months Ended September 30, 2012 2011
-------------------- --------------------
Net cash provided by operating activities $ 43,093 $ 39,737
---- --------- ---- ---------
Cash flows from investing activities:
Acquisition of property, plant and equipment (19,753 ) (20,367 )
Other investing activity (36 ) (51 )
--------- ---- --------- ----
Net cash used in investing activities (19,789 ) (20,418 )
--------- ---- --------- ----
Cash flows from financing activities:
Proceeds from additional borrowings 8,060 6,001
Debt payments (22,777 ) (6,291 )
Dividends paid (10,941 ) (10,450 )
Proceeds from options exercised and other 526 252
--------- ---------
Net cash used in financing activities (25,132 ) (10,488 )
--------- ---- --------- ----
Effect of exchange rate changes on cash and cash equivalents 2,113 (9,644 )
--------- --------- ----
Net increase (decrease) in cash and cash equivalents 285 (813 )
Cash and cash equivalents at beginning of period 12,055 14,297
--------- ---------
Cash and cash equivalents at end of period $ 12,340 $ 13,484
==== ========= ==== =========
Supplemental Information
Three Months Ended September 30, 2012 2011
-------------------- --------------------
Depreciation and amortization $ 12,051 $ 11,509
Dividends per share $ 0.22 $ 0.21
SOURCE: Sensient Technologies Corporation
Sensient Technologies Corporation
Dick Hobbs, (414) 347-3706
|
