Sensient Technologies Corporation Reports Results for the Quarter Ended December 31, 2021

Reported Consolidated Revenue Growth of 1.7%

Adjusted Consolidated Local Currency Revenue Growth of 10.7%

Flavors & Extracts Continues its Strong Performance

Color and Asia Pacific Groups Report Double Digit Revenue and Profit Growth

Sensient Technologies Corporation (NYSE: SXT) reported consolidated revenue of $340.4 million in this year’s fourth quarter compared to $334.7 million in last year’s fourth quarter. Reported operating income in the fourth quarter of 2021 was $40.4 million compared to $34.8 million in the fourth quarter of 2020. Reported diluted earnings per share was 65 cents in the fourth quarter of 2021 compared to 59 cents in the fourth quarter of 2020. Foreign currency translation decreased revenue by approximately 1% and earnings per share by approximately 2% in the quarter.

The 2021 fourth quarter reported results include divestiture & other related costs and operational improvement plan costs, which in total decreased fourth quarter net earnings by $3.0 million ($0.07 per diluted share). The 2020 fourth quarter reported results include divestiture & other related costs, operational improvement plan costs, and a one-time COVID-19 employee payment, which in total decreased net earnings by $3.2 million ($0.07 per diluted share). The 2021 and 2020 fourth quarter reported results also include the operations of the divested product lines, which increased revenue by $0.7 million and $25.2 million in 2021 and 2020, respectively. The operations of the divested product lines also decreased diluted earnings per share by $0.01 in the fourth quarter of 2021 and increased diluted earnings per share by $0.06 in the fourth quarter of 2020. The adjustments to our reported results 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

-6.1%

-0.4%

Color

14.4%

8.8%

Asia Pacific

11.1%

11.6%

Total Revenue

1.7%

3.6%

 
Adjusted
Local Currency (1)
Revenue Quarter Year-to-Date
Flavors & Extracts

8.0%

9.4%

Color

15.8%

9.4%

Asia Pacific

15.0%

10.1%

Total Revenue

10.7%

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 fourth quarter revenue of $177.4 million compared to $189.1 million reported in the comparable period last year, a decrease of 6.1%, primarily due to the divestiture of the Fragrances product line in April 2021. Adjusted local currency revenue increased 8.0% in the quarter. The higher adjusted local currency revenue was primarily the result of favorable pricing and volume growth. Segment operating income was $21.9 million in the current quarter compared to $23.5 million reported in the comparable period last year, a decrease of 6.7%, primarily due to the divestiture of the Fragrance product line. Adjusted local currency operating income increased 10.6% in the quarter. The higher adjusted local currency operating income was primarily due to the favorable pricing and higher volumes. Foreign currency translation decreased both segment revenue and operating income by approximately 1% in the quarter.

The Color Group reported revenue of $137.1 million in the quarter compared to $119.8 million in last year’s comparable period, an increase of 14.4%. Adjusted local currency revenue increased 15.8% in the quarter. The Group experienced strong volume growth in both Food & Pharmaceutical Colors and Personal Care. Segment operating income was $24.1 million in the quarter compared to $20.5 million in last year’s comparable period, an increase of 17.3%. Adjusted local currency operating income increased 19.1% compared to the prior year’s fourth quarter. The higher operating income is primarily a result of the higher volumes. Foreign currency translation decreased both segment revenue and operating income by approximately 1% in the quarter.

The Asia Pacific Group reported revenue of $35.7 million in the quarter compared to $32.2 million in last year’s comparable period, an increase of 11.1%. Adjusted local currency revenue increased 15.0% in the quarter. Segment operating income was $7.2 million in the quarter compared to $6.0 million in last year’s comparable quarter, an increase of 18.9%. Adjusted local currency operating income increased 24.9% in the quarter. The higher profit was primarily a result of the favorable volume growth. Foreign currency translation decreased segment revenue and operating income by approximately 4% and 5%, respectively, in the quarter.

Corporate & Other reported operating costs of $12.8 million in the current quarter compared to $15.3 million in last year’s comparable period, a decrease of 16.1%. The lower costs are primarily due to the one-time COVID-19 employee payment in the fourth quarter of 2020. Adjusted local currency operating expenses for Corporate & Other increased 22.1% in the quarter primarily due to higher performance-based compensation.

2022 OUTLOOK

Sensient expects 2022 full year GAAP diluted earnings per share to grow at a mid-teen growth rate compared to the Company’s 2021 reported GAAP diluted earnings per share of $2.81. Our full year 2022 guidance does not include any material divestiture related costs, operational improvement plan costs, or results of divested businesses.

The Company expects 2022 local currency revenue to grow at a mid-single-digit rate compared to the Company’s 2021 adjusted revenue(2). The Company expects 2022 local currency adjusted EBITDA(2) and local currency diluted earnings per share to grow at a high single-digit rate compared to the Company’s 2021 adjusted EBITDA(2) and the Company’s 2021 adjusted diluted earnings per share(2) of $3.13, respectively.

The Company expects earnings per share reported on a U.S. dollar basis to be impacted by approximately ten cents of foreign currency headwinds 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 income, the 2020 COVID-19 employee payment 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 fourth quarter financial results at 8:30 a.m. CST on Friday, February 11, 2022. 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 18, 2022, by calling (877) 344-7529 and referring to conference identification number 4903818. 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 15, 2022.

This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2022 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, energy, and other supplies, the availability and cost of labor, logistics, and transportation, governmental regulations and restrictions, and general economic conditions, including inflation; 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, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 that will be filed by March 1, 2022. 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,

Year Ended December 31,

 

 

2021

 

2020

 

% Change

 

2021

 

2020

 

% Change

 

 

Revenue

$

340,448

 

$

334,668

 

1.7%

$

1,380,264

 

$

1,332,001

 

3.6%

 

 

Cost of products sold

 

228,065

 

 

230,674

 

(1.1%)

 

925,603

 

 

908,254

 

1.9%

Selling and administrative expenses

 

71,963

 

 

69,179

 

4.0%

 

284,633

 

 

271,091

 

5.0%

 

 

Operating income

 

40,420

 

 

34,815

 

16.1%

 

170,028

 

 

152,656

 

11.4%

Interest expense

 

2,752

 

 

3,399

 

 

 

12,544

 

 

14,811

 

 

 

 

Earnings before income taxes

 

37,668

 

 

31,416

 

 

 

157,484

 

 

137,845

 

 

Income taxes

 

10,439

 

 

6,247

 

 

 

38,739

 

 

28,373

 

 

 

 

Net earnings

$

27,229

 

$

25,169

 

8.2%

$

118,745

 

$

109,472

 

8.5%

 

 

Earnings per share of common stock:

 

 

Basic

$

0.65

 

$

0.59

 

 

$

2.82

 

$

2.59

 

 

 

 

Diluted

$

0.65

 

$

0.59

 

 

$

2.81

 

$

2.59

 

 

 

 

Average common shares outstanding:

 

 

Basic

 

41,890

 

 

42,307

 

 

 

42,077

 

 

42,301

 

 

 

 

Diluted

 

42,173

 

 

42,404

 

 

 

42,258

 

 

42,346

 

 

 

 

 

 

 

 

Results by Segment

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

Revenue

2021

 

2020

 

% Change

 

2021

 

2020

 

% Change

 

 

Flavors & Extracts

$

177,448

 

$

189,060

 

(6.1%)

$

739,427

 

$

742,035

 

(0.4%)

Color

 

137,104

 

 

119,813

 

14.4%

 

545,270

 

 

501,018

 

8.8%

Asia Pacific

 

35,749

 

 

32,165

 

11.1%

 

135,348

 

 

121,227

 

11.6%

Intersegment elimination

 

(9,853

)

 

(6,370

)

 

 

(39,781

)

 

(32,279

)

 

 

 

Consolidated

$

340,448

 

$

334,668

 

1.7%

$

1,380,264

 

$

1,332,001

 

3.6%

 

 

 

 

Operating Income

 

 

 

 

Flavors & Extracts

$

21,942

 

$

23,507

 

(6.7%)

$

98,660

 

$

90,974

 

8.4%

Color

 

24,113

 

 

20,548

 

17.3%

 

103,575

 

 

96,034

 

7.9%

Asia Pacific

 

7,184

 

 

6,044

 

18.9%

 

26,330

 

 

22,075

 

19.3%

Corporate & Other

 

(12,819

)

 

(15,284

)

 

 

(58,537

)

 

(56,427

)

 

 

 

Consolidated

$

40,420

 

$

34,815

 

16.1%

$

170,028

 

$

152,656

 

11.4%

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

December 31,

 

December 31,

2021

 

2020

 
Cash and cash equivalents

$

25,740

$

24,770

Trade accounts receivable

 

261,121

 

234,132

Inventories

 

411,635

 

381,346

Prepaid expenses and other current assets

 

42,657

 

48,578

Assets held for sale

 

-

 

52,760

Total Current Assets

 

741,153

 

741,586

 
Goodwill & intangible assets (net)

 

435,009

 

434,220

Property, plant, and equipment (net)

 

446,478

 

445,493

Other assets

 

122,853

 

119,561

 
Total Assets

$

1,745,493

$

1,740,860

 
Trade accounts payable

$

125,519

$

107,324

Short-term borrowings

 

8,539

 

9,247

Other current liabilities

 

98,247

 

82,045

Liabilities held for sale

 

-

 

17,339

Total Current Liabilities

 

232,305

 

215,955

 
Long-term debt

 

503,006

 

518,004

Accrued employee and retiree benefits

 

28,579

 

28,941

Other liabilities

 

43,178

 

43,624

Shareholders' Equity

 

938,425

 

934,336

 
Total Liabilities and Shareholders' Equity

$

1,745,493

$

1,740,860

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

2021

 

2020

Cash flows from operating activities:
Net earnings

$

118,745

 

$

109,472

 

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

 

52,051

 

 

49,641

 

Share-based compensation expense

 

9,573

 

 

5,608

 

Net loss (gain) on assets

 

331

 

 

(252

)

Loss on divestitures and other charges

 

14,021

 

 

6,904

 

Deferred income taxes

 

(6,071

)

 

(8,705

)

Changes in operating assets and liabilities:
Trade accounts receivable

 

(34,571

)

 

(11,357

)

Inventories

 

(36,323

)

 

46,828

 

Prepaid expenses and other assets

 

(6,057

)

 

(12,868

)

Trade accounts payable and other accrued expenses

 

21,326

 

 

15,524

 

Accrued salaries, wages, and withholdings from employees

 

7,321

 

 

15,140

 

Income taxes

 

4,275

 

 

22

 

Other liabilities

 

597

 

 

2,823

 

 
Net cash provided by operating activities

 

145,218

 

 

218,780

 

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

 

(60,788

)

 

(52,162

)

Proceeds from sale of assets

 

216

 

 

1,075

 

Proceeds from divestiture of businesses

 

37,790

 

 

12,595

 

Acquisition of new business

 

(13,875

)

 

-

 

Other investing activities

 

1,097

 

 

5,071

 

 
Net cash used in investing activities

 

(35,560

)

 

(33,421

)

 
Cash flows from financing activities:
Proceeds from additional borrowings

 

112,194

 

 

36,667

 

Debt payments

 

(110,168

)

 

(154,348

)

Purchase of treasury stock

 

(42,511

)

 

-

 

Dividends paid

 

(66,694

)

 

(66,057

)

Other financing activities

 

(582

)

 

(415

)

 
Net cash used in financing activities

 

(107,761

)

 

(184,153

)

 
Effect of exchange rate changes on cash and cash equivalents

 

(927

)

 

2,411

 

 
Net increase in cash and cash equivalents

 

970

 

 

3,617

 

Cash and cash equivalents at beginning of period

 

24,770

 

 

21,153

 

Cash and cash equivalents at end of period

$

25,740

 

$

24,770

 

 
 
Supplemental Information
Year Ended December 31,

 

2021

 

 

2020

 

 
Dividends paid per share

$

1.58

 

$

1.56

 

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, 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, the results of the divested operations, and the 2020 COVID-19 employee payment.

Three Months Ended December 31,

Year Ended December 31,

2021

2020

% Change

2021

2020

% Change

Revenue (GAAP)

$

340,448

 

$

334,668

 

1.7%

$

1,380,264

 

$

1,332,001

 

3.6%

Revenue of the divested product lines

 

(663

)

 

(25,163

)

 

 

(30,062

)

 

(113,553

)

 

Adjusted revenue

$

339,785

 

$

309,505

 

9.8%

$

1,350,202

 

$

1,218,448

 

10.8%

 

 

Operating income (GAAP)

$

40,420

 

$

34,815

 

16.1%

$

170,028

 

$

152,656

 

11.4%

Divestiture & other related costs – Cost of products sold

 

58

 

 

4

 

 

 

86

 

 

1,795

 

 

Divestiture & other related costs – Selling and administrative expenses

 

579

 

 

1,671

 

 

 

14,052

 

 

10,360

 

 

Operating loss (income) of the divested product lines

 

518

 

 

(3,415

)

 

 

(1,880

)

 

(7,580

)

 

Operational improvement plan - Cost of products sold

 

-

 

 

-

 

 

 

-

 

 

35

 

 

Operational improvement plan - Selling and administrative expenses (income)

 

115

 

 

698

 

 

 

(1,895

)

 

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

$

41,690

 

$

36,795

 

13.3%

$

180,391

 

$

163,592

 

10.3%

 

 

Net earnings (GAAP)

$

27,229

 

$

25,169

 

8.2%

$

118,745

 

$

109,472

 

8.5%

Divestiture & other related costs, before tax

 

637

 

 

1,675

 

 

 

14,138

 

 

12,155

 

 

Tax impact of divestiture & other related costs

 

1,809

 

 

(1,393

)

 

 

2,092

 

 

(2,605

)

 

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

 

518

 

 

(3,415

)

 

 

(1,880

)

 

(7,580

)

 

Tax impact of the divested product lines

 

(130

)

 

790

 

 

 

460

 

 

1,945

 

 

Operational improvement plan costs (income), before tax

 

115

 

 

698

 

 

 

(1,895

)

 

3,339

 

 

Tax impact of operational improvement plan

 

427

 

 

(170

)

 

 

471

 

 

(826

)

 

COVID-19 employee payment, before tax

 

-

 

 

3,022

 

 

 

-

 

 

3,022

 

 

Tax impact of COVID-19 employee payment

 

-

 

 

(675

)

 

 

-

 

 

(675

)

 

Adjusted net earnings

$

30,605

 

$

25,701

 

19.1%

$

132,131

 

$

118,247

 

11.7%

 

 

Diluted earnings per share (GAAP)

$

0.65

 

$

0.59

 

10.2%

$

2.81

 

$

2.59

 

8.5%

Divestiture & other related costs, net of tax

 

0.06

 

 

0.01

 

 

 

0.38

 

 

0.23

 

 

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

 

0.01

 

 

(0.06

)

 

 

(0.03

)

 

(0.13

)

 

Operational improvement plan costs (income), net of tax

 

0.01

 

 

0.01

 

 

 

(0.03

)

 

0.06

 

 

COVID-19 employee payment, net of tax

 

-

 

 

0.06

 

 

 

-

 

 

0.06

 

 

Adjusted diluted earnings per share

$

0.73

 

$

0.61

 

19.7%

$

3.13

 

$

2.79

 

12.2%

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 December 31,

 

 

 

 

Adjusted

 

 

 

 

 

Adjusted

Revenue

2021

 

Adjustments (1)

 

2021

 

2020

 

Adjustments (1)

 

2020

 
Flavors & Extracts

$

177,448

 

$

(221

)

$

177,227

 

$

189,060

 

$

(24,378

)

$

164,682

 

Color

 

137,104

 

 

(442

)

 

136,662

 

 

119,813

 

 

(766

)

 

119,047

 

Asia Pacific

 

35,749

 

 

-

 

 

35,749

 

 

32,165

 

 

(116

)

 

32,049

 

Intersegment elimination

 

(9,853

)

 

-

 

 

(9,853

)

 

(6,370

)

 

97

 

 

(6,273

)

 
Consolidated

$

340,448

 

$

(663

)

$

339,785

 

$

334,668

 

$

(25,163

)

$

309,505

 

 
 
Operating Income
 
Flavors & Extracts

$

21,942

 

$

491

 

$

22,433

 

$

23,507

 

$

(3,214

)

$

20,293

 

Color

 

24,113

 

 

27

 

 

24,140

 

 

20,548

 

 

(158

)

 

20,390

 

Asia Pacific

 

7,184

 

 

-

 

 

7,184

 

 

6,044

 

 

(43

)

 

6,001

 

Corporate & Other

 

(12,819

)

 

752

 

 

(12,067

)

 

(15,284

)

 

5,395

 

 

(9,889

)

 
Consolidated

$

40,420

 

$

1,270

 

$

41,690

 

$

34,815

 

$

1,980

 

$

36,795

 

 
Results by Segment

Year Ended December 31,

 

 

 

 

Adjusted

 

 

 

 

 

Adjusted

Revenue

2021

 

Adjustments (1)

 

2021

 

2020

 

Adjustments (1)

 

2020

 
Flavors & Extracts

$

739,427

 

$

(27,837

)

$

711,590

 

$

742,035

 

$

(99,543

)

$

642,492

 

Color

 

545,270

 

 

(2,080

)

 

543,190

 

 

501,018

 

 

(14,008

)

 

487,010

 

Asia Pacific

 

135,348

 

 

(295

)

 

135,053

 

 

121,227

 

 

(518

)

 

120,709

 

Intersegment elimination

 

(39,781

)

 

150

 

 

(39,631

)

 

(32,279

)

 

516

 

 

(31,763

)

 
Consolidated

$

1,380,264

 

$

(30,062

)

$

1,350,202

 

$

1,332,001

 

$

(113,553

)

$

1,218,448

 

 
 
Operating Income
 
Flavors & Extracts

$

98,660

 

$

(2,368

)

$

96,292

 

$

90,974

 

$

(8,292

)

$

82,682

 

Color

 

103,575

 

 

575

 

 

104,150

 

 

96,034

 

 

871

 

 

96,905

 

Asia Pacific

 

26,330

 

 

(87

)

 

26,243

 

 

22,075

 

 

(159

)

 

21,916

 

Corporate & Other

 

(58,537

)

 

12,243

 

 

(46,294

)

 

(56,427

)

 

18,516

 

 

(37,911

)

 
Consolidated

$

170,028

 

$

10,363

 

$

180,391

 

$

152,656

 

$

10,936

 

$

163,592

 

 
(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, operational improvement plan costs and income, and the 2020 COVID-19 employee payment.
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 December 31,

Revenue

Total

 

Foreign

Exchange

Rates

 

Adjustments (2)

 

Adjusted

Local

Currency

Flavors & Extracts

(6.1%)

 

(0.7%)

 

(13.4%)

 

8.0%

Color

14.4%

 

(1.1%)

 

(0.3%)

 

15.8%

Asia Pacific

11.1%

 

(3.5%)

 

(0.4%)

 

15.0%

Total Revenue

1.7%

 

(1.2%)

 

(7.8%)

 

10.7%

 

 

 

 

 

 

 

Operating Income

 

 

 

 

 

 

 

Flavors & Extracts

(6.7%)

 

(0.7%)

 

(16.6%)

 

10.6%

Color

17.3%

 

(0.8%)

 

(1.0%)

 

19.1%

Asia Pacific

18.9%

 

(5.1%)

 

(0.9%)

 

24.9%

Corporate & Other

(16.1%)

 

0.0%

 

(38.2%)

 

22.1%

Total Operating Income

16.1%

 

(1.8%)

 

3.3%

 

14.6%

Diluted Earnings Per Share

10.2%

 

(1.7%)

 

(9.4%)

 

21.3%

Adjusted EBITDA

13.5%

 

(1.2%)

 

N/A

 

14.7%

 

 

 

 

 

 

 

Year Ended December 31,

Revenue

Total

 

Foreign

Exchange

Rates

 

Adjustments (2)

 

Adjusted

Local

Currency

Flavors & Extracts

(0.4%)

 

1.6%

 

(11.4%)

 

9.4%

Color

8.8%

 

2.1%

 

(2.7%)

 

9.4%

Asia Pacific

11.6%

 

1.7%

 

(0.2%)

 

10.1%

Total Revenue

3.6%

 

1.8%

 

(7.3%)

 

9.1%

 

 

 

 

 

 

 

Operating Income

 

 

 

 

 

 

 

Flavors & Extracts

8.4%

 

1.2%

 

(8.0%)

 

15.2%

Color

7.9%

 

2.6%

 

0.5%

 

4.8%

Asia Pacific

19.3%

 

(1.8%)

 

(0.5%)

 

21.6%

Corporate & Other

3.7%

 

0.0%

 

(18.4%)

 

22.1%

Total Operating Income

11.4%

 

2.1%

 

1.0%

 

8.3%

Diluted Earnings Per Share

8.5%

 

1.9%

 

(3.4%)

 

10.0%

Adjusted EBITDA

10.6%

 

2.0%

 

N/A

 

8.6%

 

(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, operational improvement plan costs and income, and the 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, 2021 and 2020.
 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

 

% Change

 

2021

 

2020

 

% Change

Operating income (GAAP)

$

40,420

 

$

34,815

 

16.1%

$

170,028

 

$

152,656

 

11.4%

Depreciation and amortization

 

13,223

 

 

12,810

 

 

 

52,051

 

 

49,641

 

 

Depreciation and amortization, divested product lines

 

-

 

 

(48

)

 

 

(146

)

 

(193

)

 

Share-based compensation expense

 

3,142

 

 

1,591

 

 

 

9,573

 

 

5,608

 

 

Divestiture & other related costs, before tax

 

637

 

 

1,675

 

 

 

14,138

 

 

12,155

 

 

Results of operations of the divested product lines, before tax

 

518

 

 

(3,415

)

 

 

(1,880

)

 

(7,580

)

 

Operational improvement plan costs (income), before tax

 

115

 

 

698

 

 

 

(1,895

)

 

3,339

 

 

COVID-19 employee payment, before tax

 

-

 

 

3,022

 

 

 

-

 

 

3,022

 

 

Adjusted EBITDA

$

58,055

 

$

51,148

 

13.5%

$

241,869

 

$

218,648

 

10.6%

 
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, 2021 and 2020.
 

Three Months Ended December 31,

 

Year Ended December 31,

2021

 

2020

 

% Change

 

2021

 

2020

 

% Change

Net cash provided by operating activities (GAAP)

$

29,070

 

$

75,853

 

(61.7%)

$

145,218

 

$

218,780

 

(33.6%)

Capital expenditures

 

(23,180

)

 

(18,153

)

 

 

(60,788

)

 

(52,162

)

 

Free Cash Flow

$

5,890

 

$

57,700

 

(89.8%)

$

84,430

 

$

166,618

 

(49.3%)

 
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

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