Sensient Technologies Corporation Reports Results for the Quarter Ended December 31, 2020 | Financial Buzz

Sensient Technologies Corporation Reports Results for the Quarter Ended December 31, 2020

Sensient Technologies Corporation (NYSE: SXT) reported consolidated revenue of $334.7 million in this year’s fourth quarter compared to $318.6 million in last year’s fourth quarter. Reported operating income in the fourth quarter of 2020 was $34.8 million compared to an operating loss of $14.5 million in the fourth quarter of 2019. Reported diluted earnings per share was 59 cents in the fourth quarter of 2020 compared to a loss per share of 40 cents in the fourth quarter of 2019. Foreign currency translation increased revenue by approximately 1% and had an immaterial impact on earnings per share in the quarter.

The 2020 fourth quarter reported results include divestiture & other related costs, operational improvement plan costs, and costs associated with a one-time COVID-19 related payment to employees, which in total decreased fourth quarter net earnings by $3.2 million ($0.07 per diluted share). The 2019 fourth quarter results include divestiture & other related costs which decreased net earnings by $43.2 million ($1.02 per diluted share). The 2020 and 2019 fourth quarter results also include the operations of the product lines divested or to be divested, which increased diluted earnings per share by $0.06 in the fourth quarter of 2020 and $0.01 in the fourth quarter of 2019. These adjustments are described in more detail under “Reconciliation of Non-GAAP Amounts” at the end of this release.

BUSINESS REVIEW

 

 

 

 

 

 

 

Reported

Revenue

 

Quarter

 

Year-to-date

Flavors & Extracts

11.8%

 

6.0%

Color

 

-4.4%

 

-6.4%

Asia Pacific

 

5.1%

 

2.5%

Total Revenue

 

5.0%

 

0.7%

 

 

 

 

 

 

 

Adjusted

 

 

Local Currency (1)

Revenue

 

Quarter

 

Year-to-date

Flavors & Extracts

14.0%

 

8.8%

Color

 

1.1%

 

-0.7%

Asia Pacific

 

2.8%

 

3.0%

Total Revenue

 

7.9%

 

4.3%

 

 

 

(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 fourth quarter revenue of $189.1 million compared to $169.1 million reported in the comparable period last year, an increase of 11.8%. Adjusted local currency revenue increased 14.0% in the quarter. The higher revenue was primarily the result of continued growth in natural ingredients and flavors, extracts, and flavor ingredients. Segment operating income was $23.5 million in the current quarter compared to $14.2 million reported in the comparable period last year, an increase of 65.7%. Adjusted local currency operating profit increased 54.9%. The Group’s higher profit was primarily a result of the higher volumes and the favorable impact of the Group’s cost reduction initiatives, offset by higher raw material costs in natural ingredients. Foreign currency translation increased segment revenue by approximately 1% and had an immaterial impact on operating income in the quarter.

The Color Group reported revenue of $119.8 million in the quarter compared to $125.4 million in last year’s comparable period, a decrease of 4.4%. Adjusted local currency revenue increased 1.1% in the quarter. The Group continued to experience growth in food and pharmaceutical colors; however, this growth was offset by lower volumes in the personal care business, primarily as a result of the continued lower demand for makeup during the COVID-19 pandemic. Segment operating income was $20.5 million in the quarter compared to $19.7 million in last year’s comparable period, an increase of 4.4%. Adjusted local currency operating income was up 0.5% to prior year. Despite double-digit growth rates in food and pharmaceutical colors profit, the lower volumes in personal care continued to negatively impact the Color Group’s operating income in the quarter. Foreign currency translation increased segment revenue and operating income by approximately 1% in the quarter.

The Asia Pacific Group reported revenue of $32.2 million in the quarter compared to $30.6 million in last year’s comparable period, an increase of 5.1%. Adjusted local currency revenue increased 2.8% in the quarter. Segment operating income was $6.0 million in the quarter compared to $5.6 million in last year’s comparable quarter, an increase of 8.8%. Adjusted local currency operating income increased 7.8% in the quarter. The higher profit was primarily a result of the favorable volume growth. Foreign currency translation increased segment revenue and operating income by approximately 3% and 1%, respectively, in the quarter.

Corporate & Other reported operating costs of $15.3 million in the current quarter compared to $53.9 million in last year’s comparable period. The lower costs are primarily due to lower divestiture & other costs reported in the fourth quarter of 2020 compared to the amount recorded in the fourth quarter of 2019.

Cash provided by operating activities was $75.9 million for the fourth quarter of 2020 compared to $49.6 million in the fourth quarter of 2019, an increase of 52.9%. Total debt decreased by $34.3 million during the fourth quarter of 2020.

2021 OUTLOOK

Sensient expects 2021 full year 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 to 30 cents per share of estimated divestiture & other related costs, the results of the operations to be divested, and the operational improvement plan costs.

The Company expects 2021 adjusted local currency revenue (2) to grow at a low to mid-single digit rate and adjusted local currency EBITDA (2) to grow at a mid-single digit rate. The Company also expects, 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 of $2.79.

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 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, COVID-19 employee payment costs, and the results of the operations divested or to be divested. 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 2020 fourth quarter and year end financial results at 8:30 a.m. CST on Friday, February 12, 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 February 19, 2021, by calling (877) 344-7529 and referring to conference identification number 10150402. 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 February 16, 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, 2019, the Quarterly Report on Form 10-Q for the quarter ended September 30, 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 December 31,

Twelve Months Ended December 31,

 

 

 

 

2020

 

2019

 

% Change

 

2020

 

2019

 

% Change

 

 

Revenue

$

334,668

 

$

318,585

 

5.0%

$

1,332,001

 

$

1,322,934

 

0.7%

 

 

Cost of products sold

 

230,674

 

 

233,105

 

(1.0%)

 

908,254

 

 

908,061

 

0.0%

Selling and administrative expenses

 

69,179

 

 

99,946

 

(30.8%)

 

271,091

 

 

293,763

 

(7.7%)

 

 

Operating income (loss)

 

34,815

 

 

(14,466

)

(340.7%)

 

152,656

 

 

121,110

 

26.0%

Interest expense

 

3,399

 

 

4,569

 

 

 

14,811

 

 

20,107

 

 

 

 

Earnings (loss) before income taxes

 

31,416

 

 

(19,035

)

 

 

137,845

 

 

101,003

 

 

Income taxes (benefit)

 

6,247

 

 

(2,073

)

 

 

28,373

 

 

18,956

 

 

 

 

Net earnings (loss)

$

25,169

 

$

(16,962

)

(248.4%)

$

109,472

 

$

82,047

 

33.4%

 

 

Earnings per share of common stock:

 

 

Basic

$

0.59

 

$

(0.40

)

 

$

2.59

 

$

1.94

 

 

 

 

Diluted

$

0.59

 

$

(0.40

)

 

$

2.59

 

$

1.94

 

 

 

 

Average common shares outstanding:

 

 

Basic

 

42,307

 

 

42,272

 

 

 

42,301

 

 

42,263

 

 

 

 

Diluted

 

42,404

 

 

42,272

 

 

 

42,346

 

 

42,294

 

 

 

 

 

 

 

 

Results by Segment

Three Months Ended December 31,

Twelve Months Ended December 31,

 

 

Revenue

2020

 

2019

 

% Change

 

2020

 

2019

 

% Change

 

 

Flavors & Extracts

$

189,060

 

$

169,092

 

11.8%

$

742,035

 

$

700,356

 

6.0%

Color

 

119,813

 

 

125,363

 

(4.4%)

 

501,018

 

 

535,159

 

(6.4%)

Asia Pacific

 

32,165

 

 

30,602

 

5.1%

 

121,227

 

 

118,248

 

2.5%

Intersegment elimination

 

(6,370

)

 

(6,472

)

 

 

(32,279

)

 

(30,829

)

 

 

 

Consolidated

$

334,668

 

$

318,585

 

5.0%

$

1,332,001

 

$

1,322,934

 

0.7%

 

 

 

 

Operating Income

 

 

 

 

Flavors & Extracts

$

23,507

 

$

14,186

 

65.7%

$

90,974

 

$

74,961

 

21.4%

Color

 

20,548

 

 

19,678

 

4.4%

 

96,034

 

 

101,190

 

(5.1%)

Asia Pacific

 

6,044

 

 

5,557

 

8.8%

 

22,075

 

 

19,382

 

13.9%

Corporate & Other

 

(15,284

)

 

(53,887

)

 

 

(56,427

)

 

(74,423

)

 

 

 

Consolidated

$

34,815

 

$

(14,466

)

(340.7%)

$

152,656

 

$

121,110

 

26.0%

 

 

Sensient Technologies Corporation
(In thousands)
(Unaudited)
 
Consolidated Condensed Balance Sheets

December 31,

December 31,

2020

2019

 
Cash and cash equivalents

$

24,770

$

21,153

Trade accounts receivable (net)

 

234,132

 

213,201

Inventories

 

381,346

 

422,517

Prepaid expenses and other current assets

 

48,578

 

40,049

Assets held for sale

 

52,760

 

91,293

Total Current Assets

 

741,586

 

788,213

 
Goodwill & intangible assets (net)

 

434,220

 

418,844

Property, plant, and equipment (net)

 

445,493

 

437,179

Other assets

 

119,561

 

95,915

 
Total Assets

$

1,740,860

$

1,740,151

 
Trade accounts payable

$

107,324

$

94,653

Short-term borrowings

 

9,247

 

20,612

Other current liabilities

 

82,045

 

66,925

Liabilities held for sale

 

17,339

 

19,185

Total Current Liabilities

 

215,955

 

201,375

 
Long-term debt

 

518,004

 

598,499

Accrued employee and retiree benefits

 

28,941

 

25,822

Other liabilities

 

43,624

 

32,866

Shareholders’ Equity

 

934,336

 

881,589

 
Total Liabilities and Shareholders’ Equity

$

1,740,860

$

1,740,151

 
Sensient Technologies Corporation
(In thousands, except per share amounts)
(Unaudited)
 
Consolidated Statements of Cash Flows
Twelve Months Ended December 31,

2020

2019

Cash flows from operating activities:
Net earnings

$

109,472

 

$

82,047

 

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

 

49,641

 

 

55,015

 

Share-based compensation expense (income)

 

5,608

 

 

(739

)

Net gain on assets

 

(252

)

 

(1,122

)

Net loss on divestitures and other charges

 

6,904

 

 

44,375

 

Deferred income taxes

 

(8,705

)

 

(19,340

)

Changes in operating assets and liabilities:
Trade accounts receivable

 

(11,357

)

 

10,930

 

Inventories

 

46,828

 

 

25,238

 

Prepaid expenses and other assets

 

(12,868

)

 

3,257

 

Accounts payable and other accrued expenses

 

15,524

 

 

(18,251

)

Accrued salaries, wages and withholdings from employees

 

15,140

 

 

(3,039

)

Income taxes

 

22

 

 

(1,836

)

Other liabilities

 

2,823

 

 

647

 

 
Net cash provided by operating activities

 

218,780

 

 

177,182

 

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

 

(52,162

)

 

(39,100

)

Proceeds from sale of assets

 

1,075

 

 

2,242

 

Proceeds from divesture of businesses

 

12,595

 

 

 

Other investing activity

 

5,071

 

 

(553

)

 
Net cash used in investing activities

 

(33,421

)

 

(37,411

)

 
Cash flows from financing activities:
Proceeds from additional borrowings

 

36,667

 

 

47,083

 

Debt payments

 

(154,348

)

 

(134,449

)

Dividends paid

 

(66,057

)

 

(62,190

)

Other financing activity

 

(415

)

 

(1,027

)

 
Net cash used in financing activities

 

(184,153

)

 

(150,583

)

 
Effect of exchange rate changes on cash and cash equivalents

 

2,411

 

 

64

 

 
Net increase (decrease) in cash and cash equivalents

 

3,617

 

 

(10,748

)

Cash and cash equivalents at beginning of period

 

21,153

 

 

31,901

 

Cash and cash equivalents at end of period

$

24,770

 

$

21,153

 

 
 
Supplemental Information
Twelve Months Ended December 31,

2020

2019

 
Dividends paid per share

$

1.56

 

$

1.47

 

 
 

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 twelve months ended December 31, 2020 and 2019 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, the results of operations divested or to be divested, and the COVID-19 employee payment.

 
Three Months Ended December 31, Twelve Months Ended December 31,

 

 

2020

 

2019

 

% Change

 

2020

 

2019

 

% Change

Revenue (GAAP)

$

334,668

 

$

318,585

 

5.0%

$

1,332,001

 

$

1,322,934

 

0.7%

Revenue of the product lines divested or to be divested

 

(25,163

)

 

(33,683

)

 

(113,553

)

 

(143,172

)

Adjusted revenue

$

309,505

 

$

284,902

 

8.6%

$

1,218,448

 

$

1,179,762

 

3.3%

 
Operating income (loss) (GAAP)

$

34,815

 

$

(14,466

)

(340.7%)

$

152,656

 

$

121,110

 

26.0%

Divestiture & other related costs – Cost of products sold

 

4

 

 

10,567

 

 

1,795

 

 

10,567

 

Divestiture & other related costs – Selling and administrative expenses

 

1,671

 

 

35,313

 

 

10,360

 

 

35,313

 

Operating income of the product lines divested or to be divested

 

(3,415

)

 

(745

)

 

(7,580

)

 

(1,978

)

Operational improvement plan – Cost of products sold

 

 

 

 

 

35

 

 

 

Operational improvement plan – Selling and administrative expenses

 

698

 

 

 

 

3,304

 

 

 

COVID-19 employee payment – Cost of products sold

 

1,036

 

 

 

 

1,036

 

 

 

COVID-19 employee payment – Selling and administrative expenses

 

1,986

 

 

 

 

1,986

 

 

 

Adjusted operating income

$

36,795

 

$

30,669

 

20.0%

$

163,592

 

$

165,012

 

(0.9%)

 
Net earnings (loss) (GAAP)

$

25,169

 

$

(16,962

)

(248.4%)

$

109,472

 

$

82,047

 

33.4%

Divestiture & other related costs, before tax

 

1,675

 

 

45,880

 

 

12,155

 

 

45,880

 

Tax impact of divestiture & other related costs

 

(1,393

)

 

(2,671

)

 

(2,605

)

 

(2,671

)

Net earnings of the product lines divested or to be divested, before tax

 

(3,415

)

 

(745

)

 

(7,580

)

 

(1,978

)

Tax impact of the product lines divested or to be divested

 

790

 

 

196

 

 

1,945

 

 

399

 

Operational improvement plan costs, before tax

 

698

 

 

 

 

3,339

 

 

 

Tax impact of operational improvement plan

 

(170

)

 

 

 

(826

)

 

 

COVID-19 employee payment, before tax

 

3,022

 

 

 

 

3,022

 

 

 

Tax impact of COVID-19 employee payment

 

(675

)

 

 

 

(675

)

 

 

Adjusted net earnings

$

25,701

 

$

25,698

 

0.0%

$

118,247

 

$

123,677

 

(4.4%)

 
Diluted earnings (loss) per share (GAAP)

$

0.59

 

$

(0.40

)

(247.5%)

$

2.59

 

$

1.94

 

33.5%

Divestiture & other related costs, net of tax

 

0.01

 

 

1.02

 

 

0.23

 

 

1.02

 

Results of operations of the product lines divested or to be divested, net of tax

 

(0.06

)

 

(0.01

)

 

(0.13

)

 

(0.04

)

Operational improvement plan costs, net of tax

 

0.01

 

 

 

 

0.06

 

 

 

COVID-19 employee payment, net of tax

 

0.06

 

 

 

 

0.06

 

 

 

Adjusted diluted earnings per share

$

0.61

 

$

0.61

 

0.0%

$

2.79

 

$

2.92

 

(4.5%)

 
Note: Earnings per share calculations may not foot due to rounding differences.
 
Results by Segment Three Months Ended December 31,

Adjusted

Adjusted

Revenue

2020

Adjustments (1)

2020

2019

Adjustments (1)

2019

 
Flavors & Extracts

$

189,060

 

$

(24,378

)

$

164,682

 

$

169,092

 

$

(25,308

)

$

143,784

 

Color

 

119,813

 

 

(766

)

 

119,047

 

 

125,363

 

 

(8,412

)

 

116,951

 

Asia Pacific

 

32,165

 

 

(116

)

 

32,049

 

 

30,602

 

 

(149

)

 

30,453

 

Intersegment elimination

 

(6,370

)

 

97

 

 

(6,273

)

 

(6,472

)

 

186

 

 

(6,286

)

 
Consolidated

$

334,668

 

$

(25,163

)

$

309,505

 

$

318,585

 

$

(33,683

)

$

284,902

 

 
 
Operating Income
 
Flavors & Extracts

$

23,507

 

$

(3,214

)

$

20,293

 

$

14,186

 

$

(1,039

)

$

13,147

 

Color

 

20,548

 

 

(158

)

 

20,390

 

 

19,678

 

 

332

 

 

20,010

 

Asia Pacific

 

6,044

 

 

(43

)

 

6,001

 

 

5,557

 

 

(38

)

 

5,519

 

Corporate & Other

 

(15,284

)

 

5,395

 

 

(9,889

)

 

(53,887

)

 

45,880

 

 

(8,007

)

 
Consolidated

$

34,815

 

$

1,980

 

$

36,795

 

$

(14,466

)

$

45,135

 

$

30,669

 

 
Results by Segment Twelve Months Ended December 31,

Adjusted

Adjusted

Revenue

2020

Adjustments (1)

2020

2019

Adjustments (1)

2019

 
Flavors & Extracts

$

742,035

 

$

(99,543

)

$

642,492

 

$

700,356

 

$

(107,363

)

$

592,993

 

Color

 

501,018

 

 

(14,008

)

 

487,010

 

 

535,159

 

 

(36,002

)

 

499,157

 

Asia Pacific

 

121,227

 

 

(518

)

 

120,709

 

 

118,248

 

 

(712

)

 

117,536

 

Intersegment elimination

 

(32,279

)

 

516

 

 

(31,763

)

 

(30,829

)

 

905

 

 

(29,924

)

 
Consolidated

$

1,332,001

 

$

(113,553

)

$

1,218,448

 

$

1,322,934

 

$

(143,172

)

$

1,179,762

 

 
 
Operating Income
 
Flavors & Extracts

$

90,974

 

$

(8,292

)

$

82,682

 

$

74,961

 

$

(1,236

)

$

73,725

 

Color

 

96,034

 

 

871

 

 

96,905

 

 

101,190

 

 

(562

)

 

100,628

 

Asia Pacific

 

22,075

 

 

(159

)

 

21,916

 

 

19,382

 

 

(180

)

 

19,202

 

Corporate & Other

 

(56,427

)

 

18,516

 

 

(37,911

)

 

(74,423

)

 

45,880

 

 

(28,543

)

 
Consolidated

$

152,656

 

$

10,936

 

$

163,592

 

$

121,110

 

$

43,902

 

$

165,012

 

(1) For Revenue, adjustments consist of revenues of the product lines divested or to be divested. For Operating Income, adjustments consist of the results of the product lines divested or to be divested, divestitures & other related costs, operational improvement plan costs, and the one-time 2020 COVID-19 employee payment.
Sensient Technologies Corporation

 

 

 

 

 

 

 

 

(In thousands, except percentages)

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Amounts – Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table summarizes the percentage change in the 2020 results compared to the 2019 results for the corresponding periods.

 

 

 

 

 

 

 

 

Three Months Ended December 31,

Twelve Months Ended December 31,

Revenue

Total

Foreign

Exchange

Rates

Adjustments (2)

Adjusted

Local

Currency

Total

Foreign

Exchange

Rates

Adjustments (2)

Adjusted

Local

Currency

Flavors & Extracts

11.8%

1.1%

(3.3%)

14.0%

6.0%

(0.3%)

(2.5%)

8.8%

Color

(4.4%)

0.9%

(6.4%)

1.1%

(6.4%)

(1.8%)

(3.9%)

(0.7%)

Asia Pacific

5.1%

2.5%

(0.2%)

2.8%

2.5%

(0.3%)

(0.2%)

3.0%

Total Revenue

5.0%

1.1%

(4.0%)

7.9%

0.7%

(0.9%)

(2.7%)

4.3%

 

 

 

 

 

 

 

 

Operating Income

 

 

 

 

 

 

 

 

Flavors & Extracts

65.7%

0.0%

10.8%

54.9%

21.4%

(0.7%)

9.0%

13.1%

Color

4.4%

0.9%

3.0%

0.5%

(5.1%)

(1.6%)

(1.1%)

(2.4%)

Asia Pacific

8.8%

0.9%

0.1%

7.8%

13.9%

(0.2%)

(0.2%)

14.3%

Corporate & Other

(71.6%)

0.0%

(95.0%)

23.4%

(24.2%)

0.0%

(57.0%)

32.8%

Total Operating Income

(340.7%)

(1.6%)

(358.3%)

19.2%

26.0%

(1.9%)

27.5%

0.4%

Diluted Earnings Per Share

(247.5%)

0.0%

(247.5%)

0.0%

33.5%

(2.1%)

39.0%

(3.4%)

Adjusted EBITDA

17.6%

0.7%

N/A

16.9%

2.1%

(1.1%)

N/A

3.2%

(2) For Revenue, adjustments consist of revenues of the product lines divested or to be divested. For Operating Income, Diluted Earnings per Share, and Adjusted EBITDA adjustments consist of the results of the product lines divested or to be divested, divestitures & other related costs, operational improvement plan costs, and the one-time 2020 COVID-19 employee payment.
The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three and twelve months ended December 31, 2020 and 2019.
 
Three Months Ended December 31, Twelve Months Ended December 31,
 

2020

2019

% Change

2020

2019

% Change

Operating income (loss) (GAAP)

$

34,815

 

$

(14,466

)

(340.7%)

$

152,656

 

$

121,110

 

26.0%

Depreciation and amortization

 

12,810

 

 

13,309

 

 

49,641

 

 

55,015

 

Depreciation and amortization, product lines divested or to be divested

 

(48

)

 

(570

)

 

(193

)

 

(5,065

)

Share-based compensation expense (income)

 

1,591

 

 

77

 

 

5,608

 

 

(739

)

Divestiture & other related costs, before tax

 

1,675

 

 

45,880

 

 

12,155

 

 

45,880

 

Results of operations of the product lines divested or to be divested, before tax

 

(3,415

)

 

(745

)

 

(7,580

)

 

(1,978

)

Operational improvement plan costs, before tax

 

698

 

 

 

 

3,339

 

 

 

COVID-19 employee payment

 

3,022

 

 

 

 

3,022

 

 

 

Adjusted EBITDA

$

51,148

 

$

43,485

 

17.6%

$

218,648

 

$

214,223

 

2.1%

 
 
The following table summarizes the reconciliation between Net cash provided by operating activities (GAAP) and Free Cash Flow for the three and twelve months ended December 31, 2020 and 2019.
 
Three Months Ended December 31, Twelve Months Ended December 31,

 

 

 

2020

 

2019

 

% Change

 

2020

 

2019

 

% Change

Net cash provided by operating activities (GAAP)

$

75,853

 

$

49,601

 

52.9%

$

218,780

 

$

177,182

 

23.5%

Capital expenditures

 

(18,153

)

 

(13,027

)

 

(52,162

)

 

(39,100

)

Free Cash Flow

$

57,700

 

$

36,574

 

57.8%

$

166,618

 

$

138,082

 

20.7%

 

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

Contacts

Amy Agallar

(414) 347-3706