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Sensient Technologies Corporation Reports Results For The Quarter And Year Ended December 31, 2012

A replay will be available beginning at 1:00 p.m. CST on February 8, 2013, through midnight on February 15, 2013, by calling (404) 537-3406 and referring to conference identification number 91449690. 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 September 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 December 31, Twelve Months Ended December 31,
 
2012 2011 % Change 2012 2011 % Change
 
Revenue $ 356,242 $ 340,358 4.7 % $ 1,459,050 $ 1,430,789 2.0 %
 
Cost of products sold 245,979 232,221 5.9 % 995,907 981,137 1.5 %
Selling and administrative expenses   70,543     65,187   8.2 %   271,935     258,829   5.1 %
 
Operating income 39,720 42,950 -7.5 % 191,208 190,823 0.2 %
Interest expense   3,665     4,520     16,901     19,439  
 
Earnings before income taxes 36,055 38,430 -6.2 % 174,307 171,384 1.7 %
Income taxes   8,834     9,844     50,399     50,900  
 
Net earnings $ 27,221   $ 28,586   -4.8 % $ 123,908   $ 120,484   2.8 %
 
Earnings per common share:
Basic $ 0.55   $ 0.57   -3.5 % $ 2.50   $ 2.42   3.3 %
 
Diluted $ 0.55   $ 0.57   -3.5 % $ 2.49   $ 2.41   3.3 %
 
Average common shares outstanding:
Basic   49,538     49,814   -0.6 %   49,596     49,746   -0.3 %
 
Diluted   49,737     50,013   -0.6 %   49,822     49,937   -0.2 %
 
 
 
 
Results by Segment Three Months Ended December 31, Twelve Months Ended December 31,
 

Revenue

2012 2011 % Change 2012 2011 % Change
 
 
Flavors & Fragrances $ 216,933 $ 205,397 5.6 % $ 875,281 $ 857,460 2.1 %
Color 114,294 112,843 1.3 % 494,145 491,881 0.5 %
Corporate & Other* 40,369 35,050 15.2 % 156,812 143,565 9.2 %
Intersegment elimination   (15,354 )   (12,932 ) 18.7 %   (67,188 )   (62,117 ) 8.2 %
 
Consolidated $ 356,242   $ 340,358   4.7 % $ 1,459,050   $ 1,430,789   2.0 %
 
 
 

Operating Income

 
 
Flavors & Fragrances $ 28,663 $ 31,802 -9.9 % $ 122,997 $ 129,436 -5.0 %
Color 19,128 20,331 -5.9 % 94,058 90,217 4.3 %
Corporate & Other*   (8,071 )   (9,183 ) -12.1 %   (25,847 )   (28,830 ) -10.3 %
 
Consolidated $ 39,720   $ 42,950   -7.5 % $ 191,208   $ 190,823   0.2 %

* Beginning in the first quarter of 2012, the results of operations for certain flavor locations 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
December 31, 2012 2011
 
Current assets $ 751,354 $ 706,870
Goodwill and intangibles (net) 462,896 457,025
Property, plant and equipment (net) 514,708 451,539
Other assets   47,685     38,730  
 
Total Assets $ 1,776,643   $ 1,654,164  
 
Current liabilities $ 204,236 $ 207,275
Long-term debt 333,979 312,422
Accrued employee and retiree benefits 60,527 52,252
Other liabilities 24,003 33,005
Shareholders' equity   1,153,898     1,049,210  
 
Total Liabilities and Shareholders' Equity $ 1,776,643   $ 1,654,164  
 
 
 
Consolidated Statements of Cash Flows
Twelve Months Ended December 31, 2012 2011
 
Net cash provided by operating activities $ 139,366   $ 142,877  
 
Cash flows from investing activities:
Acquisition of property, plant and equipment (103,806 ) (72,200 )
Proceeds from sale of assets 1,364 2,076
Acquisition of new businesses, net of cash acquired - (3,706 )
Other investing activity   (242 )   (207 )
 
Net cash used in investing activities   (102,684 )   (74,037 )
 
Cash flows from financing activities:
Proceeds from additional borrowings 73,903 184,074
Debt payments (58,052 ) (198,259 )
Purchase of treasury stock (23,154 ) -
Dividends paid (43,426 ) (41,968 )
Proceeds from options exercised and other   1,957     3,205  
 
Net cash used in financing activities   (48,772 )   (52,948 )
 
Effect of exchange rate changes on cash and cash equivalents   4,297     (7,292 )
 
Net (decrease) increase in cash and cash equivalents (7,793 ) 8,600
Cash and cash equivalents at beginning of period   22,855     14,255  
Cash and cash equivalents at end of period $ 15,062   $ 22,855  
 
 
 
Supplemental Information
Twelve Months Ended December 31, 2012 2011
 
Depreciation and amortization $ 48,352 $ 46,099
 
Dividends per share $ 0.87 $ 0.84




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