Attached files
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| 8-K - FORM 8-K - SENSIENT TECHNOLOGIES CORP | c64147e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
|
Dick Hobbs | |
| (414) 347-3836 |
Sensient Technologies Corporation
Reports Results for the First Quarter Ended March 31, 2011
Reports Results for the First Quarter Ended March 31, 2011
First Quarter Revenue and EPS Reach New Highs
Cash Flow Increased 21% to a First Quarter Record
MILWAUKEE—April 18, 2011—Sensient Technologies Corporation (NYSE: SXT)
reported that diluted earnings per share for the three months ended March 31, 2011, were 53 cents,
a record level for the first quarter and an increase of 10.4% over the 2010 first quarter results
of 48 cents. Consolidated revenue for the first quarter of 2011 increased 11.3% to an all-time
quarterly record of $349.7 million compared to $314.1 million in the first quarter of 2010.
Favorable foreign currency translation increased consolidated revenue by approximately 1%.
Cash provided by operating activities in the first quarter rose 21.2% to a first quarter
record of $28.4 million, compared to $23.4 million in the prior year’s comparable period. Total
debt at March 31, 2011, was $343.9 million, a reduction of $5.9 million in the quarter and $71.3
million in the last twelve months.
“All of our businesses performed very well this quarter, led by the Color Group, which
reported all-time quarterly highs for both revenue and operating profit,” said Kenneth P.
Manning, Chairman and CEO of Sensient Technologies Corporation. “We remain very optimistic
about the Company’s future and see solid opportunities for growth.”
-MORE-
| Sensient Technologies Corporation | Page 2 | |
| Earnings Release — First Quarter Ended March 31, 2011 | ||
| April 18, 2011 |
BUSINESS REVIEW
The Color Group reported all-time quarterly record revenue of $125.7 million, an increase of
16.4% over last year’s first quarter revenue of $108.0 million. Operating income for the quarter
increased 23.4% to an all-time quarterly record of $22.3 million, compared to $18.1 million in the
first quarter of 2010. Favorable foreign currency translation increased both revenue and operating
income for the Color Group by approximately 1%. Revenue grew across all product lines. Sales of
food and beverage colors were particularly strong, driven by strong demand for natural colors.
Group operating margins improved 100 basis points in the quarter to 17.8%.
The Flavors & Fragrances Group reported revenue of $206.7 million, a record for the first
quarter and an increase of 8.4% compared to first quarter 2010 revenue of $190.7 million. Revenues
were higher in both traditional flavors and dehydrated flavors due to strong volume gains. Group
operating profit increased 6.5% to $29.0 million in the quarter, compared to $27.2 million in the
first quarter of 2010. Favorable foreign currency translation increased Flavors & Fragrances Group
revenue and operating income by approximately 1% and 2%, respectively.
Corporate & Other, which includes the Company’s operations in Asia Pacific and China, reported
revenue of $31.5 million for the first quarter, an increase of 29.8% compared to the prior year’s
revenue of $24.3 million. The revenue gains were particularly strong in China, Thailand and
Singapore.
2011 OUTLOOK
Sensient has increased its guidance for 2011 diluted earnings per share, which is now expected
to be between $2.28 and $2.34. The Company’s previous guidance had been between $2.26 and $2.32.
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| Sensient Technologies Corporation | Page 3 | |
| Earnings Release — First Quarter Ended March 31, 2011 | ||
| April 18, 2011 |
CONFERENCE CALL
The company will host a conference call to discuss its 2011 first quarter financial results at
10:00 a.m. CDT on Monday, April 18, 2011. 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 April 18, 2011, through midnight on
April 25, 2011, by calling (706) 645-9291 and referring to conference identification number
37548935. 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, 2010. 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 chemicals. The company’s customers include 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 | Page 4 | |
| (In thousands, except percentages and per share amounts) |
| Three Months Ended March 31, | ||||||||||||
| Consolidated Statements of Earnings | 2011 | 2010 | % Change | |||||||||
Revenue |
$ | 349,686 | $ | 314,076 | 11.3 | % | ||||||
Cost of products sold |
241,979 | 219,130 | 10.4 | % | ||||||||
Selling and administrative expenses |
64,110 | 56,291 | 13.9 | % | ||||||||
Operating income |
43,597 | 38,655 | 12.8 | % | ||||||||
Interest expense |
4,850 | 4,778 | ||||||||||
Earnings before income taxes |
38,747 | 33,877 | 14.4 | % | ||||||||
Income taxes |
12,332 | 10,410 | ||||||||||
Net earnings |
$ | 26,415 | $ | 23,467 | 12.6 | % | ||||||
Earnings per common share: |
||||||||||||
Basic |
$ | 0.53 | $ | 0.48 | 10.4 | % | ||||||
Diluted |
$ | 0.53 | $ | 0.48 | 10.4 | % | ||||||
Average common shares outstanding: |
||||||||||||
Basic |
49,637 | 48,825 | 1.7 | % | ||||||||
Diluted |
49,818 | 49,121 | 1.4 | % | ||||||||
| Three Months Ended March 31, | ||||||||||||
| Results by Segment | 2011 | 2010 | % Change | |||||||||
Revenue |
||||||||||||
Flavors & Fragrances |
$ | 206,689 | $ | 190,702 | 8.4 | % | ||||||
Color |
125,671 | 107,956 | 16.4 | % | ||||||||
Corporate & Other |
31,515 | 24,271 | 29.8 | % | ||||||||
Intersegment elimination |
(14,189 | ) | (8,853 | ) | 60.3 | % | ||||||
Consolidated |
$ | 349,686 | $ | 314,076 | 11.3 | % | ||||||
Operating Income |
||||||||||||
Flavors & Fragrances |
$ | 28,958 | $ | 27,184 | 6.5 | % | ||||||
Color |
22,347 | 18,108 | 23.4 | % | ||||||||
Corporate & Other |
(7,708 | ) | (6,637 | ) | 16.1 | % | ||||||
Consolidated |
$ | 43,597 | $ | 38,655 | 12.8 | % | ||||||
- MORE -
| Sensient Technologies Corporation | Page 5 | |
| (In thousands, except per share amounts) |
| Consolidated Condensed Balance Sheets | ||||||||
| March 31, | 2011 | 2010 | ||||||
Current assets |
$ | 693,612 | $ | 656,610 | ||||
Goodwill and intangibles (net) |
472,150 | 455,127 | ||||||
Property, plant and equipment (net) |
442,195 | 414,429 | ||||||
Other assets |
35,854 | 37,833 | ||||||
Total Assets |
$ | 1,643,811 | $ | 1,563,999 | ||||
Current liabilities |
$ | 195,203 | $ | 209,082 | ||||
Long-term debt |
323,216 | 373,745 | ||||||
Accrued employee and retiree benefits |
55,016 | 52,411 | ||||||
Other liabilities |
35,782 | 26,948 | ||||||
Shareholders’ equity |
1,034,594 | 901,813 | ||||||
Total Liabilities and Shareholders’ Equity |
$ | 1,643,811 | $ | 1,563,999 | ||||
| Consolidated Statements of Cash Flows | ||||||||
| Three Months Ended March 31, | 2011 | 2010 | ||||||
Net cash provided by operating activities |
$ | 28,413 | $ | 23,441 | ||||
Cash flows from investing activities: |
||||||||
Acquisition of property, plant and equipment |
(10,124 | ) | (8,305 | ) | ||||
Proceeds from sale of assets |
— | 36 | ||||||
Other investing activity |
(60 | ) | (49 | ) | ||||
Net cash used in investing activities |
(10,184 | ) | (8,318 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from additional borrowings |
12,002 | 14,495 | ||||||
Debt payments |
(23,131 | ) | (20,566 | ) | ||||
Dividends paid |
(10,487 | ) | (9,345 | ) | ||||
Proceeds from options exercised and other |
1,319 | 3,348 | ||||||
Net cash used in financing activities |
(20,297 | ) | (12,068 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
1,833 | (4,312 | ) | |||||
Net decrease in cash and cash equivalents |
(235 | ) | (1,257 | ) | ||||
Cash and cash equivalents at beginning of period |
14,255 | 12,219 | ||||||
Cash and cash equivalents at end of period |
$ | 14,020 | $ | 10,962 | ||||
| Supplemental Information | ||||||||
| Three Months Ended March 31, | 2011 | 2010 | ||||||
Depreciation and amortization |
$ | 11,588 | $ | 10,808 | ||||
Dividends per share |
$ | 0.21 | $ | 0.19 | ||||