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     112  0 Kommentare Sensient Technologies Corporation Reports Results for the Quarter Ended June 30, 2021

    Sensient Technologies Corporation (NYSE: SXT) reported consolidated revenue of $335.8 million in this year’s second quarter compared to $323.1 million in last year’s second quarter. Reported operating income in the second quarter of 2021 was $35.8 million compared to $42.1 million in the second quarter of 2020. Reported diluted earnings per share was 61 cents in the second quarter of 2021 compared to 72 cents in the second quarter of 2020. Foreign currency translation increased revenue and earnings per share by approximately 4% and 6%, respectively, in the quarter.

    The 2021 second quarter reported results include divestiture & other related costs and operational improvement plan costs, which in total decreased second quarter net earnings by $7.0 million ($0.16 per diluted share). The 2020 second quarter reported results include divestiture & other related costs which increased net earnings by $1.0 million ($0.02 per diluted share). The 2021 and 2020 second quarter results also include the operations of the divested product lines, which included $2.2 million of revenue and decreased diluted earnings per share by $0.01 in the second quarter of 2021, and included $28.2 million of revenue and were not significant to diluted earnings per share in the second quarter of 2020. These adjustments are described in more detail under “Reconciliation of Non-GAAP Amounts” at the end of this release.

    BUSINESS REVIEW

     

    Reported

    Revenue

    Quarter

    Flavors & Extracts

    -2.3%

    Color

    9.8%

    Asia Pacific

    15.9%

    Total Revenue

    3.9%

     

    Adjusted

    Local Currency (1)

    Revenue

    Quarter

    Flavors & Extracts

    9.1%

    Color

    7.1%

    Asia Pacific

    11.3%

    Total Revenue

    9.1%

     

    (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 second quarter revenue of $179.4 million compared to $183.6 million reported in the comparable period last year, a decrease of 2.3%, primarily due to the divestiture of the Fragrances product line in early April 2021. Adjusted local currency revenue increased 9.1% in the quarter. The higher adjusted local currency revenue was the result of strong growth in all product categories. Segment operating income was $24.5 million in the current quarter compared to $22.8 million reported in the comparable period last year, an increase of 7.8%. Adjusted local currency operating income increased 13.2% in the quarter. The Group’s higher profit was primarily a result of favorable volume growth. Foreign currency translation increased segment revenue and operating income by approximately 4% and 3%, respectively, in the quarter.

    The Color Group reported revenue of $133.2 million in the quarter compared to $121.3 million in last year’s comparable period, an increase of 9.8%. Adjusted local currency revenue increased 7.1% in the quarter. The Group experienced growth in Food & Pharmaceutical colors and in Personal Care. Segment operating income was $25.6 million in the quarter compared to $22.3 million in last year’s comparable period, an increase of 15.1%. Adjusted local currency operating income increased 5.2% compared to prior year’s second quarter. The higher operating income is primarily a result of the higher volumes. Foreign currency translation increased both segment revenue and operating income by approximately 5% in the quarter.

    The Asia Pacific Group reported revenue of $32.3 million in the quarter compared to $27.9 million in last year’s comparable period, an increase of 15.9%. Adjusted local currency revenue increased 11.3% in the quarter. Segment operating income was $5.8 million in the quarter compared to $4.8 million in last year’s comparable quarter, an increase of 19.5%. Adjusted local currency operating income increased 21.6% in the quarter. The higher profit was primarily a result of the favorable volume growth. Foreign currency translation increased segment revenue by approximately 6% and decreased segment operating income by approximately 1% in the quarter.

    Corporate & Other reported operating costs of $20.2 million in the current quarter compared to $7.7 million in last year’s comparable period, an increase of 160.9%. The higher costs are primarily due to higher divestiture & other costs reported in the second quarter of 2021 compared to the amount recorded in the second quarter of 2020. Adjusted local currency operating expenses for Corporate & Other increased 29.4% in the quarter partly due to higher performance based executive compensation.

    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 25 cents per share of estimated divestiture & other related costs, the results of the divested operations, and the operational improvement plan costs. The Company expects its reported tax rate to be approximately 24% for the last six months of 2021.

    The Company now expects its 2021 adjusted local currency revenue(2) to grow at a mid-single digit rate. The Company’s previous 2021 guidance for adjusted local currency revenue(2) was a low to mid-single digit growth rate. The Company reconfirms its previously issued 2021 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(2) of $2.79. The Company expects its adjusted tax rate(2) to be approximately 22% for the last six months of 2021.

    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.

    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 divested operations. 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.

    CONFERENCE CALL

    The Company will host a conference call to discuss its 2021 second quarter financial results at 8:30 a.m. CDT on Friday, July 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 July 30, 2021, by calling (877) 344-7529 and referring to conference identification number 10156624. 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 July 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.

    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

    Sensient Technologies Corporation

     

     

    (In thousands, except percentages and per share amounts)

     

     

    (Unaudited)

     

     

     

     

    Consolidated Statements of Earnings

    Three Months Ended June 30,

    Six Months Ended June 30,

     

     

    2021

    2020

    % Change

    2021

    2020

    % Change

     

     

    Revenue

    $

    335,827

     

    $

    323,090

     

    3.9%

    $

    695,529

     

    $

    673,767

     

    3.2%

     

     

    Cost of products sold

     

    224,233

     

     

    220,876

     

    1.5%

     

    468,322

     

     

    459,660

     

    1.9%

    Selling and administrative expenses

     

    75,841

     

     

    60,089

     

    26.2%

     

    144,557

     

     

    137,421

     

    5.2%

     

     

    Operating income

     

    35,753

     

     

    42,125

     

    (15.1%)

     

    82,650

     

     

    76,686

     

    7.8%

    Interest expense

     

    3,322

     

     

    3,608

     

     

     

    6,755

     

     

    7,915

     

     

     

     

    Earnings before income taxes

     

    32,431

     

     

    38,517

     

     

     

    75,895

     

     

    68,771

     

     

    Income taxes

     

    6,495

     

     

    7,897

     

     

     

    18,291

     

     

    17,378

     

     

     

     

    Net earnings

    $

    25,936

     

    $

    30,620

     

    (15.3%)

    $

    57,604

     

    $

    51,393

     

    12.1%

     

     

    Earnings per share of common stock:

     

     

    Basic

    $

    0.62

     

    $

    0.72

     

     

    $

    1.37

     

    $

    1.22

     

     

     

     

    Diluted

    $

    0.61

     

    $

    0.72

     

     

    $

    1.36

     

    $

    1.21

     

     

     

     

    Average common shares outstanding:

     

     

    Basic

     

    42,135

     

     

    42,305

     

     

     

    42,199

     

     

    42,294

     

     

     

     

    Diluted

     

    42,267

     

     

    42,322

     

     

     

    42,328

     

     

    42,315

     

     

     

     

     

     

     

     

    Results by Segment

    Three Months Ended June 30,

    Six Months Ended June 30,

     

     

    Revenue

    2021

    2020

    % Change

    2021

    2020

    % Change

     

     

    Flavors & Extracts

    $

    179,401

     

    $

    183,611

     

    (2.3%)

    $

    380,312

     

    $

    370,109

     

    2.8%

    Color

     

    133,207

     

     

    121,296

     

    9.8%

     

    268,927

     

     

    264,791

     

    1.6%

    Asia Pacific

     

    32,317

     

     

    27,873

     

    15.9%

     

    66,157

     

     

    58,322

     

    13.4%

    Intersegment elimination

     

    (9,098

    )

     

    (9,690

    )

     

     

    (19,867

    )

     

    (19,455

    )

     

     

     

    Consolidated

    $

    335,827

     

    $

    323,090

     

    3.9%

    $

    695,529

     

    $

    673,767

     

    3.2%

     

     

     

     

    Operating Income

     

     

     

     

    Flavors & Extracts

    $

    24,536

     

    $

    22,752

     

    7.8%

    $

    51,554

     

    $

    43,623

     

    18.2%

    Color

     

    25,615

     

     

    22,263

     

    15.1%

     

    52,209

     

     

    51,927

     

    0.5%

    Asia Pacific

     

    5,793

     

     

    4,849

     

    19.5%

     

    12,545

     

     

    9,908

     

    26.6%

    Corporate & Other

     

    (20,191

    )

     

    (7,739

    )

     

     

    (33,658

    )

     

    (28,772

    )

     

     

     

    Consolidated

    $

    35,753

     

    $

    42,125

     

    (15.1%)

    $

    82,650

     

    $

    76,686

     

    7.8%

     

     

     
    Sensient Technologies Corporation
    (In thousands)
    (Unaudited)
     
    Consolidated Condensed Balance Sheets June 30, December 31,

    2021

    2020

     
    Cash and cash equivalents

    $

    33,306

    $

    24,770

    Trade accounts receivable

     

    258,411

     

    234,132

    Inventories

     

    360,240

     

    381,346

    Prepaid expenses and other current assets

     

    56,111

     

    48,578

    Assets held for sale

     

    -

     

    52,760

    Total Current Assets

     

    708,068

     

    741,586

     
    Goodwill & intangible assets (net)

     

    429,204

     

    434,220

    Property, plant, and equipment (net)

     

    442,022

     

    445,493

    Other assets

     

    118,436

     

    119,561

     
    Total Assets

    $

    1,697,730

    $

    1,740,860

     
    Trade accounts payable

    $

    115,325

    $

    107,324

    Short-term borrowings

     

    771

     

    9,247

    Other current liabilities

     

    80,320

     

    82,045

    Liabilities held for sale

     

    -

     

    17,339

    Total Current Liabilities

     

    196,416

     

    215,955

     
    Long-term debt

     

    483,230

     

    518,004

    Accrued employee and retiree benefits

     

    29,863

     

    28,941

    Other liabilities

     

    43,944

     

    43,624

    Shareholders' Equity

     

    944,277

     

    934,336

     
    Total Liabilities and Shareholders' Equity

    $

    1,697,730

    $

    1,740,860

     
    Sensient Technologies Corporation
    (In thousands, except per share amounts)
    (Unaudited)
     
    Consolidated Statements of Cash Flows
    Six Months Ended June 30,

    2021

    2020

    Cash flows from operating activities:
    Net earnings

    $

    57,604

     

    $

    51,393

     

    Adjustments to arrive at net cash provided by operating activities:
    Depreciation and amortization

     

    25,817

     

     

    24,522

     

    Share-based compensation expense

     

    4,188

     

     

    2,662

     

    Net loss on assets

     

    206

     

     

    50

     

    Loss on divestitures and other charges

     

    13,511

     

     

    6,634

     

    Deferred income taxes

     

    1,702

     

     

    1,075

     

    Changes in operating assets and liabilities:
    Trade accounts receivable

     

    (26,902

    )

     

    (20,494

    )

    Inventories

     

    19,357

     

     

    24,816

     

    Prepaid expenses and other assets

     

    (15,573

    )

     

    (3,975

    )

    Trade accounts payable and other accrued expenses

     

    9,632

     

     

    9,961

     

    Accrued salaries, wages, and withholdings

     

    (3,944

    )

     

    6,483

     

    Income taxes

     

    1,953

     

     

    3,899

     

    Other liabilities

     

    1,710

     

     

    588

     

     
    Net cash provided by operating activities

     

    89,261

     

     

    107,614

     

     
    Cash flows from investing activities:
    Acquisition of property, plant, and equipment

     

    (25,550

    )

     

    (21,417

    )

    Proceeds from sale of assets

     

    169

     

     

    6

     

    Proceeds from divestiture of businesses

     

    36,255

     

     

    11,255

     

    Other investing activities

     

    (254

    )

     

    4,395

     

     
    Net cash provided by (used in) investing activities

     

    10,620

     

     

    (5,761

    )

     
    Cash flows from financing activities:
    Proceeds from additional borrowings

     

    25,997

     

     

    38,670

     

    Debt payments

     

    (62,578

    )

     

    (98,849

    )

    Purchase of treasury stock

     

    (22,507

    )

     

    -

     

    Dividends paid

     

    (33,027

    )

     

    (33,018

    )

    Other financing activities

     

    (582

    )

     

    (414

    )

     
    Net cash used in financing activities

     

    (92,697

    )

     

    (93,611

    )

     
    Effect of exchange rate changes on cash and cash equivalents

     

    1,352

     

     

    (8,519

    )

     
    Net increase (decrease) in cash and cash equivalents

     

    8,536

     

     

    (277

    )

    Cash and cash equivalents at beginning of period

     

    24,770

     

     

    21,153

     

    Cash and cash equivalents at end of period

    $

    33,306

     

    $

    20,876

     

     
     
    Supplemental Information
    Six Months Ended June 30,

    2021

    2020

     
    Dividends paid per share

    $

    0.78

     

    $

    0.78

     

     
     
    Sensient Technologies Corporation

     

     

    (In thousands, except percentages and per share amounts)

     

     

    (Unaudited)

     

     

     

     

    Reconciliation of Non-GAAP Amounts

     

     

     

     

    The Company's results for the three and six months ended June 30, 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 income, and the results of the divested operations.

     

     

    Three Months Ended June 30,

    Six Months Ended June 30,

    2021

    2020

    % Change

    2021

    2020

    % Change

    Revenue (GAAP)

    $

    335,827

     

    $

    323,090

     

    3.9%

    $

    695,529

     

    $

    673,767

     

    3.2%

    Revenue of the divested product lines

     

    (2,207

    )

     

    (28,217

    )

     

     

    (27,777

    )

     

    (64,802

    )

     

    Adjusted revenue

    $

    333,620

     

    $

    294,873

     

    13.1%

    $

    667,752

     

    $

    608,965

     

    9.7%

     

     

    Operating income (GAAP)

    $

    35,753

     

    $

    42,125

     

    (15.1%)

    $

    82,650

     

    $

    76,686

     

    7.8%

    Divestiture & other related costs – Cost of products sold

     

    3

     

     

    1,749

     

     

     

    28

     

     

    1,939

     

     

    Divestiture & other related costs – Selling and administrative expenses

     

    11,685

     

     

    (3,276

    )

     

     

    13,232

     

     

    8,377

     

     

    Operating loss (income) of the divested product lines

     

    459

     

     

    (331

    )

     

     

    (2,468

    )

     

    (1,716

    )

     

    Operational improvement plan - Selling and administrative expenses

     

    (3,494

    )

     

    -

     

     

     

    (2,493

    )

     

    -

     

     

    Adjusted operating income

    $

    44,406

     

    $

    40,267

     

    10.3%

    $

    90,949

     

    $

    85,286

     

    6.6%

     

     

    Net earnings (GAAP)

    $

    25,936

     

    $

    30,620

     

    (15.3%)

    $

    57,604

     

    $

    51,393

     

    12.1%

    Divestiture & other related costs, before tax

     

    11,688

     

     

    (1,527

    )

     

     

    13,260

     

     

    10,316

     

     

    Tax impact of divestiture & other related costs

     

    (1,689

    )

     

    509

     

     

     

    (896

    )

     

    (425

    )

     

    Net loss (earnings) of the divested product lines, before tax

     

    459

     

     

    (331

    )

     

     

    (2,468

    )

     

    (1,716

    )

     

    Tax impact of the divested product lines

     

    (115

    )

     

    203

     

     

     

    608

     

     

    500

     

     

    Operational improvement plan income, before tax

     

    (3,494

    )

     

    -

     

     

     

    (2,493

    )

     

    -

     

     

    Tax impact of operational improvement plan

     

    455

     

     

    -

     

     

     

    159

     

     

    -

     

     

    Adjusted net earnings

    $

    33,240

     

    $

    29,474

     

    12.8%

    $

    65,774

     

    $

    60,068

     

    9.5%

     

     

    Diluted earnings per share (GAAP)

    $

    0.61

     

    $

    0.72

     

    (15.3%)

    $

    1.36

     

    $

    1.21

     

    12.4%

    Divestiture & other related costs, net of tax

     

    0.24

     

     

    (0.02

    )

     

     

    0.29

     

     

    0.23

     

     

    Results of operations of the divested product lines, net of tax

     

    0.01

     

     

    -

     

     

     

    (0.04

    )

     

    (0.03

    )

     

    Operational improvement plan income, net of tax

     

    (0.07

    )

     

    -

     

     

     

    (0.06

    )

     

    -

     

     

    Adjusted diluted earnings per share

    $

    0.79

     

    $

    0.70

     

    12.9%

    $

    1.55

     

    $

    1.42

     

    9.2%

     

     

    Note: Earnings per share calculations may not foot due to rounding differences.
    Sensient Technologies Corporation
    (In thousands)
    (Unaudited)
     
    Reconciliation of Non-GAAP Amounts - Continued
     
    Results by Segment Three Months Ended June 30,
    Adjusted Adjusted

    Revenue

    2021

    Adjustments(1)

    2021

    2020

    Adjustments(1)

    2020

     
    Flavors & Extracts

    $

    179,401

     

    $

    (1,415

    )

    $

    177,986

     

    $

    183,611

     

    $

    (24,742

    )

    $

    158,869

     

    Color

     

    133,207

     

     

    (792

    )

     

    132,415

     

     

    121,296

     

     

    (3,501

    )

     

    117,795

     

    Asia Pacific

     

    32,317

     

     

    -

     

     

    32,317

     

     

    27,873

     

     

    (213

    )

     

    27,660

     

    Intersegment elimination

     

    (9,098

    )

     

    -

     

     

    (9,098

    )

     

    (9,690

    )

     

    239

     

     

    (9,451

    )

     
    Consolidated

    $

    335,827

     

    $

    (2,207

    )

    $

    333,620

     

    $

    323,090

     

    $

    (28,217

    )

    $

    294,873

     

     
    Operating Income
     
    Flavors & Extracts

    $

    24,536

     

    $

    (45

    )

    $

    24,491

     

    $

    22,752

     

    $

    (1,619

    )

    $

    21,133

     

    Color

     

    25,615

     

     

    504

     

     

    26,119

     

     

    22,263

     

     

    1,347

     

     

    23,610

     

    Asia Pacific

     

    5,793

     

     

    -

     

     

    5,793

     

     

    4,849

     

     

    (59

    )

     

    4,790

     

    Corporate & Other

     

    (20,191

    )

     

    8,194

     

     

    (11,997

    )

     

    (7,739

    )

     

    (1,527

    )

     

    (9,266

    )

     
    Consolidated

    $

    35,753

     

    $

    8,653

     

    $

    44,406

     

    $

    42,125

     

    $

    (1,858

    )

    $

    40,267

     

     
    Results by Segment Six Months Ended June 30,
    Adjusted Adjusted

    Revenue

    2021

    Adjustments(1)

    2021

    2020

    Adjustments(1)

    2020

     
    Flavors & Extracts

    $

    380,312

     

    $

    (26,304

    )

    $

    354,008

     

    $

    370,109

     

    $

    (52,187

    )

    $

    317,922

     

    Color

     

    268,927

     

     

    (1,328

    )

     

    267,599

     

     

    264,791

     

     

    (12,573

    )

     

    252,218

     

    Asia Pacific

     

    66,157

     

     

    (295

    )

     

    65,862

     

     

    58,322

     

     

    (334

    )

     

    57,988

     

    Intersegment elimination

     

    (19,867

    )

     

    150

     

     

    (19,717

    )

     

    (19,455

    )

     

    292

     

     

    (19,163

    )

     
    Consolidated

    $

    695,529

     

    $

    (27,777

    )

    $

    667,752

     

    $

    673,767

     

    $

    (64,802

    )

    $

    608,965

     

     
    Operating Income
     
    Flavors & Extracts

    $

    51,554

     

    $

    (2,925

    )

    $

    48,629

     

    $

    43,623

     

    $

    (2,837

    )

    $

    40,786

     

    Color

     

    52,209

     

     

    544

     

     

    52,753

     

     

    51,927

     

     

    1,214

     

     

    53,141

     

    Asia Pacific

     

    12,545

     

     

    (87

    )

     

    12,458

     

     

    9,908

     

     

    (93

    )

     

    9,815

     

    Corporate & Other

     

    (33,658

    )

     

    10,767

     

     

    (22,891

    )

     

    (28,772

    )

     

    10,316

     

     

    (18,456

    )

     
    Consolidated

    $

    82,650

     

    $

    8,299

     

    $

    90,949

     

    $

    76,686

     

    $

    8,600

     

    $

    85,286

     

     
    (1) For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, adjustments consist of the results of the divested product lines, divestiture & other related costs, and 2021 operational improvement plan costs and income.
     
    Sensient Technologies Corporation

     

     

     

     

    (In thousands, except percentages)

     

     

     

     

    (Unaudited)

     

     

     

     

     

     

     

     

    Reconciliation of Non-GAAP Amounts - Continued

     

     

     

     

    The following tables summarize the percentage change in the 2021 results compared to the 2020 results for the corresponding periods.

     

     

     

     

    Three Months Ended June 30,

    Revenue

    Total

    Foreign
    Exchange
    Rates

    Adjustments(2)

    Adjusted
    Local
    Currency

    Flavors & Extracts

    (2.3%)

    3.7%

    (15.1%)

    9.1%

    Color

    9.8%

    5.3%

    (2.6%)

    7.1%

    Asia Pacific

    15.9%

    5.5%

    (0.9%)

    11.3%

    Total Revenue

    3.9%

    4.4%

    (9.6%)

    9.1%

     

     

     

     

    Operating Income

     

     

     

     

    Flavors & Extracts

    7.8%

    3.1%

    (8.5%)

    13.2%

    Color

    15.1%

    5.4%

    4.5%

    5.2%

    Asia Pacific

    19.5%

    (0.6%)

    (1.5%)

    21.6%

    Corporate & Other

    160.9%

    0.1%

    131.4%

    29.4%

    Total Operating Income

    (15.1%)

    4.5%

    (25.4%)

    5.8%

    Diluted Earnings Per Share

    (15.3%)

    5.5%

    (29.4%)

    8.6%

    Adjusted EBITDA

    10.4%

    4.4%

    N/A

    6.0%

     

     

     

     

    Six Months Ended June 30,

    Revenue

    Total

    Foreign
    Exchange
    Rates

    Adjustments(2)

    Adjusted
    Local
    Currency

    Flavors & Extracts

    2.8%

    3.1%

    (9.3%)

    9.0%

    Color

    1.6%

    3.8%

    (4.5%)

    2.3%

    Asia Pacific

    13.4%

    5.7%

    (0.1%)

    7.8%

    Total Revenue

    3.2%

    3.5%

    (6.7%)

    6.4%

     

     

     

     

    Operating Income

     

     

     

     

    Flavors & Extracts

    18.2%

    2.6%

    (1.5%)

    17.1%

    Color

    0.5%

    4.1%

    1.4%

    (5.0%)

    Asia Pacific

    26.6%

    0.3%

    (0.3%)

    26.6%

    Corporate & Other

    17.0%

    0.1%

    (7.1%)

    24.0%

    Total Operating Income

    7.8%

    4.3%

    0.6%

    2.9%

    Diluted Earnings Per Share

    12.4%

    5.0%

    1.8%

    5.6%

    Adjusted EBITDA

    7.5%

    3.5%

    N/A

    4.0%

     

     

     

     

    (2) For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, Diluted Earnings per Share, and Adjusted EBITDA, adjustments consist of the results of the divested product lines, divestiture & other related costs, and 2021 operational improvement plan costs and income.
    The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three and six months ended June 30, 2021 and 2020.
     
    Three Months Ended June 30, Six Months Ended June 30,

     

     

     

    2021

     

    2020

     

    % Change

     

    2021

     

    2020

     

    % Change

    Operating income (GAAP)

    $

    35,753

     

    $

    42,125

     

    (15.1%)

    $

    82,650

     

    $

    76,686

     

    7.8%

    Depreciation and amortization

     

    13,018

     

     

    12,118

     

     

    25,817

     

     

    24,522

     

    Depreciation and amortization, divested product lines

     

    (48

    )

     

    (16

    )

     

    (97

    )

     

    (96

    )

    Share-based compensation expense

     

    2,075

     

     

    1,485

     

     

    4,188

     

     

    2,662

     

    Divestiture & other related costs, before tax

     

    11,688

     

     

    (1,527

    )

     

    13,260

     

     

    10,316

     

    Results of operations of the divested product lines, before tax

     

    459

     

     

    (331

    )

     

    (2,468

    )

     

    (1,716

    )

    Operational improvement plan costs (income), before tax

     

    (3,494

    )

     

    -

     

     

    (2,493

    )

     

    -

     

    Adjusted EBITDA

    $

    59,451

     

    $

    53,854

     

    10.4%

    $

    120,857

     

    $

    112,374

     

    7.5%

     
    The following table summarizes the reconciliation between Net cash provided by operating activities (GAAP) and Free Cash Flow for the three and six months ended June 30, 2021 and 2020.
     
    Three Months Ended June 30, Six Months Ended June 30,

     

     

     

    2021

     

    2020

     

    % Change

     

    2021

     

    2020

     

    % Change

    Net cash provided by operating activities (GAAP)

    $

    60,297

     

    $

    70,686

     

    (14.7%)

    $

    89,261

     

    $

    107,614

     

    (17.1%)

    Capital expenditures

     

    (11,306

    )

     

    (12,006

    )

     

    (25,550

    )

     

    (21,417

    )

    Free Cash Flow

    $

    48,991

     

    $

    58,680

     

    (16.5%)

    $

    63,711

     

    $

    86,197

     

    (26.1%)

     
    Sensient Technologies Corporation
    (In thousands, except percentages)
    (Unaudited)
     
    The following table summarizes the reconciliation between Forecasted GAAP Tax Rate and Forecasted Adjusted Tax Rate for the last six months of 2021.
     
    Last Six Months of 2021
    Forecasted GAAP Tax Rate

    24%

    Forecasted tax impact of divestiture and other related costs,
    the results of operations of the divested product lines, and the
    operational improvement plan costs

    (2%)

    Forecasted Adjusted Tax Rate

    22%

     
     
    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.

    Category: Earnings



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    Sensient Technologies Corporation Reports Results for the Quarter Ended June 30, 2021 Sensient Technologies Corporation (NYSE: SXT) reported consolidated revenue of $335.8 million in this year’s second quarter compared to $323.1 million in last year’s second quarter. Reported operating income in the second quarter of 2021 was $35.8 …