Sensient Technologies Corporation Reports Results for the Quarter Ended March 31, 2013

  Sensient Technologies Corporation Reports Results for the Quarter Ended
  March 31, 2013

      Reported EPS of 43 Cents Includes Restructuring Charge of 19 Cents

     Adjusted EPS of 62 Cents is a 7% Increase and a First Quarter Record

 Cash Provided by Operations in the First Quarter Increased to $25.6 Million

Business Wire

MILWAUKEE -- April 18, 2013

Sensient Technologies Corporation (NYSE: SXT) reported diluted earnings per
share of 43 cents for the three months ended March 31, 2013, which includes
restructuring costs of 19 cents per share. As adjusted, to remove the impact
of the restructuring costs, diluted earnings per share were 62 cents, an
increase of 6.9% over the 58 cents reported in the first three months of 2012,
and a record for the first quarter. Consolidated revenue of $366 million in
the first quarter was unchanged from the prior year. Operating income was
$36.3 million, as reported, and included $12.8 million of pre-tax
restructuring costs. Adjusted operating income increased 5.6% to $49.1
million, from $46.5 million in the first quarter of 2012. The Company’s
operating margin, as reported, was 9.9%. As adjusted, the Company’s operating
margin was 13.4%, an increase of 70 basis points from 12.7% in last year’s
first quarter. Foreign currency translation did not have a significant impact
on either revenue or operating income in the first quarter.

Cash provided by operating activities was $25.6 million in the first quarter
of 2013, compared to $9.0 million in the first quarter of 2012. The $16.6
million improvement was driven by improved utilization of working capital.

Earlier this year, the Company announced that it was initiating a broad and
strategic restructuring plan. The plan includes relocating the Flavors &
Fragrances Group headquarters to Chicago, consolidating several operating
facilities throughout Europe and North America, and reducing headcount by more
than 200 employees. The Company has included non-GAAP results, to remove the
costs related to the restructuring plan and provide investors with a view of
operating performance excluding significant and non-recurring items.

“I am very pleased with the Company’s performance in the first quarter,” said
Kenneth P. Manning, Chairman and CEO of Sensient Technologies Corporation. “We
will remain focused on improving profitability, and our restructuring program
will enhance this effort. We started to realize some savings from this plan in
the first quarter, and we will achieve greater cost savings as the year
progresses. I am very optimistic about the Company’s future.”

                               BUSINESS REVIEW

The Color Group reported revenue of $127.9 million in the first quarter of
2013, compared to $132.3 million in the comparable period last year. Operating
income increased to $26.0 million from $25.8 million reported in the first
quarter of 2012. Foreign currency did not have a significant impact on either
revenue or operating income in the quarter. The Group’s operating margin for
the first quarter increased 80 basis points to 20.3%, from 19.5% in last
year’s first quarter. Strong performances in industrial inks and the food and
beverage businesses in Latin America and Brazil contributed to the operating
margin improvement.

The Flavors & Fragrances Group reported revenue of $217.0 million in this
year’s first quarter, compared to $214.7 million in the comparable period last
year. Operating income for the quarter was $28.9 million compared to $29.1
million in last year’s first quarter. Foreign currency translation did not
have a significant impact on either revenue or operating income. The
relocation of the Flavors & Fragrances Group headquarters to Chicago is on
schedule, and the move is expected to be completed before the end of the year.
The costs related to the relocation are included in the restructuring costs,
which are reported in the results of the Corporate & Other segment.

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 $36.0 million, compared to $35.0 million in the first
quarter of 2012.

                                 2013 OUTLOOK

Sensient has increased its guidance for 2013 diluted earnings per share, which
is now expected to be between $2.66 and $2.73, excluding the impact of the
restructuring charge. The Company’s previous guidance had been a range of
$2.64 to $2.72 per share, excluding the restructuring charge.

                               CONFERENCE CALL

The Company will host a conference call to discuss its 2013 first quarter
financial results at 10:00 a.m. CDT on Friday, April 19, 2013. To make a
reservation for the conference call, contact InterCall Teleconferencing at
(706) 645-6973. To participate in the conference call, contact InterCall
Teleconferencing at (706) 758-1089 and refer to conference identification
number 31527714.

A replay will be available beginning at 1:00 p.m. CDT on April 19, 2013,
through midnight on April 26, 2013, by calling (404) 537-3406 and referring to
conference identification number 31527714. 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, 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 March 31,
                                                                      
                                              2013        2012        % Change
                                                                      
Revenue                                       $ 365,640   $ 365,660   0.0    %
                                                                      
Cost of products sold                           248,503     250,328   -0.7   %
Selling and administrative expenses            80,799     68,843    17.4   %
                                                                      
Operating income                                36,338      46,489    -21.8  %
Interest expense                               4,261      4,406
                                                                      
Earnings before income taxes                    32,077      42,083    -23.8  %
Income taxes                                   10,638     13,177
                                                                      
Net earnings                                  $ 21,439    $ 28,906    -25.8  %
                                                                      
Earnings per common share:
Basic                                         $ 0.43      $ 0.58      -25.9  %
                                                                      
Diluted                                       $ 0.43      $ 0.58      -25.9  %
                                                                      
Average common shares outstanding:
Basic                                          49,711     49,795    -0.2   %
                                                                      
Diluted                                        49,867     50,016    -0.3   %
                                                                             

Reconciliation of Non-GAAP Amounts
                                                                  
The Company's results include restructuring charges of $12.8 million pre-tax
($9.4 million after-tax or $0.19 per share) related primarily to a broad
restructuring program to relocate the Flavors & Fragrances Group headquarters
to Chicago, as well as a profit improvement plan across all segments of the
Company.
                                                                        
                   Three Months Ended March 31,
                                                                        
                   Reported     Restructuring   Adjusted    Reported
                   2013         Impact          2013        2012        %
                                                                        Change
                                                                        
Revenue            $  365,640   $  -            $ 365,640   $ 365,660   0.0  %
                                                                        
Cost of               248,503      595            247,908     250,328   -1.0 %
products sold
Selling and
administrative       80,799      12,178       68,621     68,843    -0.3 %
expenses
                                                                        
Operating             36,338       (12,773  )     49,111      46,489    5.6  %
income
Interest             4,261       -            4,261      4,406
expense
                                                                        
Earnings before       32,077       (12,773  )     44,850      42,083    6.6  %
income taxes
Income taxes         10,638      (3,366   )    14,004     13,177
                                                                        
Net earnings       $  21,439    $  (9,407   )   $ 30,846    $ 28,906    6.7  %
                                                                        
Earnings per
common share:
Basic              $  0.43      $  (0.19    )   $ 0.62      $ 0.58      6.9  %
                                                                        
Diluted            $  0.43      $  (0.19    )   $ 0.62      $ 0.58      6.9  %
                                                                        
Average common
shares
outstanding:
Basic                49,711                     49,711     49,795    -0.2 %
                                                                        
Diluted              49,867                     49,867     50,016    -0.3 %
                                                                        
The Company is presenting these non-GAAP amounts to provide investors
with a view of operating performance excluding the restructuring
impact.
                                                                        

Sensient Technologies                                             
Corporation
(In thousands, except per
share amounts)
                                                                     
Results by Segment            Three Months Ended March 31,
                                                                     
Revenue                       2013                 2012              % Change
                                                                     
Flavors & Fragrances          $   217,041          $  214,731        1.1    %
Color *                           127,878             132,256        -3.3   %
Corporate & Other                 35,993              34,996         2.8    %
Intersegment elimination         (15,272   )        (16,323  )     -6.4   %
                                                                     
Consolidated                  $   365,640         $  365,660       0.0    %
                                                                     
Operating Income
                                                                     
Flavors & Fragrances          $   28,920           $  29,065         -0.5   %
Color *                           25,973              25,783         0.7    %
Corporate & Other                (18,555   )        (8,359   )           
                                                                     
Consolidated                  $   36,338          $  46,489        -21.8  %
                                                                     
Consolidated Excluding        $   49,111          $  46,489        5.6    %
Restructuring Charge
                                                                     
* Beginning in the first quarter of 2013, the results of operations for the
Company’s cosmetic and pharmaceutical businesses in Asia Pacific and China,
previously reported in the Corporate & Other segment, are reported in the
Color Group. Results for 2012 have been restated to reflect this change.


Consolidated Condensed Balance Sheets                       
March 31,                                            2013          2012
                                                                   
Current assets                                       $ 756,090     $ 733,790
Goodwill and intangibles (net)                         452,257       466,461
Property, plant and equipment (net)                    512,247       463,082
Other assets                                          47,418       38,070
                                                                   
Total Assets                                         $ 1,768,012   $ 1,701,403
                                                                   
Current liabilities                                  $ 206,458     $ 198,700
Long-term debt                                         327,625       336,716
Accrued employee and retiree benefits                  60,939        54,068
Other liabilities                                      25,028        32,523
Shareholders' equity                                  1,147,962    1,079,396
                                                                   
Total Liabilities and Shareholders' Equity           $ 1,768,012   $ 1,701,403
                                                                     

Sensient Technologies Corporation                                
(In thousands, except per share amounts)
                                                                   
Consolidated Statements of Cash Flows
Three Months Ended March 31,                         2013          2012
                                                                   
Net cash provided by operating activities            $ 25,589     $ 8,978   
                                                                   
Cash flows from investing activities:
Acquisition of property, plant and equipment           (21,039 )     (16,939 )
Proceeds from sale of assets                           24            32
Other investing activity                              (70     )    (94     )
                                                                   
Net cash used in investing activities                 (21,085 )    (17,001 )
                                                                   
Cash flows from financing activities:
Proceeds from additional borrowings                    33,438        31,364
Debt payments                                          (23,954 )     (11,613 )
Purchase of treasury stock                             -             (15,360 )
Dividends paid                                         (10,999 )     (10,561 )
Proceeds from options exercised and other             56          272     
                                                                   
Net cash used in financing activities                 (1,459  )    (5,898  )
                                                                   
Effect of exchange rate changes on cash and cash      1,363       4,415   
equivalents
                                                                   
Net increase (decrease) in cash and cash               4,408         (9,506  )
equivalents
Cash and cash equivalents at beginning of period      15,062      22,855  
Cash and cash equivalents at end of period           $ 19,470     $ 13,349  
                                                                   
Supplemental Information
Three Months Ended March 31,                         2013          2012
                                                                   
Depreciation and amortization                        $ 12,963      $ 12,037
                                                                   
Dividends per share                                  $ 0.22        $ 0.21

Contact:

Sensient Technologies Corporation
Dick Hobbs, (414) 347-3706
 
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