Exhibit 99.1
| Contact: | Dick Hobbs |
(414) 347-3836
Sensient Technologies Corporation
Reports Earnings for the Quarter Ended March 31, 2003
Sensient Marks Sixth Consecutive Quarter of Double-Digit Earnings Increases
MILWAUKEE—April 17, 2003 — Sensient Technologies Corporation (NYSE: SXT) announced today that revenue in the first quarter ended March 31, 2003, increased 10.3% to $235.1 million from $213.1 million reported for last year’s first quarter. Diluted earnings per share were up 19.4% to 43 cents in the first quarter versus 36 cents per share in the comparable quarter in 2002. First quarter 2003 results include a tax benefit of three cents per share for the settlement of prior years’ tax liabilities.
“Our consistently strong performance demonstrates that our strategy for growth is succeeding. This is our sixth consecutive quarter of double-digit increases in earnings and comes after our announcement of a record 2002,” said Kenneth P. Manning, Chairman, President and CEO of Sensient Technologies Corporation.
BUSINESS REVIEW
Flavors & Fragrances Group revenue increased 4.2% to $139.5 million in the first quarter ended March 31, 2003. Operating income increased 5.8% to $20 million compared to $18.9 million in the prior year’s first quarter. Results reflected improved performance in European flavor operations, which offset lower U.S. flavor demand during the first quarter.
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Sensient Technologies Corporation Earnings Release – Quarter ended March 31, 2003 April 17, 2003 | Page 2 |
Color Group revenue rose 18% to $89.6 million in the first quarter of 2003. Higher revenue was fueled by new product development in the core North American food color segment and strong sales in cosmetic and inkjet ink product lines. Operating income was up 13.5% to $20.2 million compared to $17.8 million in the prior year’s first quarter.
2003 OUTLOOK
For 2003, Sensient expects diluted earnings per share to reach $1.86, which includes a three cents per share tax benefit for this year’s first quarter. Diluted earnings per share for second quarter 2003 are expected to be approximately 48 cents.
CONFERENCE CALL
The company will hold its conference call to discuss 2003 first quarter results at 9:00 a.m. CDT on Thursday, April 17, 2003. To make a reservation for the conference call, contact InterCall Teleconferencing at (706) 645-6973 and refer to the Sensient Technologies Corporation conference call.
A replay will be available beginning at 11:00 a.m. CDT on April 17, 2003, through 11:00 p.m. CDT on April 24, 2003, by calling (706) 645-9291 and referring to passcode 9540667. A transcript of the call will also be posted on the Company’s web site at www.sensient-tech.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 Analysis of Operations & Financial Condition in our most recently filed annual report on Form 10-K for the year ended December 31, 2002. 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.
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Sensient Technologies Corporation Earnings Release – Quarter ended March 31, 2003 April 17, 2003 | Page 3 |
ABOUT SENSIENT TECHNOLOGIES
Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors and fragrances. Using specialized technologies at facilities around the world, the Company develops unique formulations that bring life to its customers’ products. Sensient manufactures a full range of color and flavor products for the food, cosmetic, pharmaceutical and specialized printing and imaging industries. The Company’s customers include leading global manufacturers representing some of the world’s best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.
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Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
Consolidated Earnings
Three Months Ended March 31, | |||||||||||
2003 | 2002 | % Change | |||||||||
Revenue | $ | 235,097 |
| $ | 213,123 |
| 10.3 |
| |||
Cost of products sold |
| 157,593 |
|
| 142,526 |
| 10.6 |
| |||
Selling and administrative expenses |
| 42,570 |
|
| 38,062 |
| 11.8 |
| |||
Operating income |
| 34,934 |
|
| 32,535 |
| 7.4 |
| |||
Interest expense |
| 7,245 |
|
| 7,616 |
| |||||
Earnings before income taxes |
| 27,689 |
|
| 24,919 |
| 11.1 |
| |||
Income taxes |
| 7,227 |
|
| 7,974 |
| |||||
Net earnings | $ | 20,462 |
| $ | 16,945 |
| 20.8 |
| |||
Earnings per common share: | |||||||||||
Basic | $ | 0.43 |
| $ | 0.36 |
| 19.4 |
| |||
Diluted | $ | 0.43 |
| $ | 0.36 |
| 19.4 |
| |||
Average common shares outstanding: | |||||||||||
Basic |
| 47,058 |
|
| 47,344 |
| (0.6 | ) | |||
Diluted |
| 47,398 |
|
| 47,670 |
| (0.6 | ) | |||
Results by Segment | |||||||||||
Three Months Ended March 31, | |||||||||||
Revenue | 2003 | 2002 | % Change | ||||||||
Flavors and Fragrances | $ | 139,528 |
| $ | 133,882 |
| 4.2 |
| |||
Color |
| 89,568 |
|
| 75,888 |
| 18.0 |
| |||
Corporate and other |
| 14,978 |
|
| 13,749 |
| 8.9 |
| |||
Intersegment elimination |
| (8,977 | ) |
| (10,396 | ) | (13.6 | ) | |||
Consolidated | $ | 235,097 |
| $ | 213,123 |
| 10.3 |
| |||
Operating Income | 2003 | 2002 | % Change | ||||||||
Flavors and Fragrances | $ | 20,028 |
| $ | 18,937 |
| 5.8 |
| |||
Color |
| 20,196 |
|
| 17,789 |
| 13.5 |
| |||
Corporate and other |
| (5,290 | ) |
| (4,191 | ) | 26.2 |
| |||
Consolidated | $ | 34,934 |
| $ | 32,535 |
| 7.4 |
| |||
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Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
Consolidated Condensed Balance Sheets March 31,
| 2003 | 2002 | ||||||
Current assets | $ | 493,263 |
| $ | 418,364 |
| ||
Intangibles (net) |
| 398,483 |
|
| 338,101 |
| ||
Property, plant and equipment (net) |
| 337,680 |
|
| 313,577 |
| ||
Other assets |
| 90,031 |
|
| 75,357 |
| ||
Total Assets | $ | 1,319,457 |
| $ | 1,145,399 |
| ||
Current liabilities | $ | 224,546 |
| $ | 211,834 |
| ||
Long-term debt |
| 514,446 |
|
| 425,759 |
| ||
Accrued employee and retiree benefits |
| 37,368 |
|
| 35,744 |
| ||
Other liabilities |
| 31,895 |
|
| 26,743 |
| ||
Shareholders’ equity |
| 511,202 |
|
| 445,319 |
| ||
Total Liabilities and Shareholders' equity | $ | 1,319,457 |
| $ | 1,145,399 |
| ||
Consolidated Statements of Cash Flows Three Months Ended March 31,
| 2003 | 2002 | ||||||
Net cash provided by operating activities | $ | 853 |
| $ | 23,371 |
| ||
Cash flows from investing activities: | ||||||||
Acquisition of property, plant and equipment |
| (10,336 | ) |
| (5,099 | ) | ||
Acquisition of new businesses (net of cash acquired) |
| (4,107 | ) |
| (43,374 | ) | ||
Proceeds from sale of assets |
| 1,948 |
|
| 3,492 |
| ||
Decrease in other assets |
| 68 |
|
| 26 |
| ||
Net cash used in investing activities |
| (12,427 | ) |
| (44,955 | ) | ||
Cash flows from financing activities: | ||||||||
Proceeds from additional borrowings |
| 23,232 |
|
| 22,554 |
| ||
Reduction in debt |
| (691 | ) |
| (313 | ) | ||
Purchase of treasury stock |
| (4,969 | ) |
| — |
| ||
Dividends paid |
| (6,763 | ) |
| (6,286 | ) | ||
Proceeds from options exercised and other |
| 2,693 |
|
| 3,447 |
| ||
Net cash provided by financing activities |
| 13,502 |
|
| 19,402 |
| ||
Effect of exchange rate changes on cash and cash equivalents |
| 526 |
|
| (84 | ) | ||
Net increase (decrease) in cash and cash equivalents |
| 2,454 |
|
| (2,266 | ) | ||
Cash and cash equivalents at beginning of period |
| 2,103 |
|
| 2,317 |
| ||
Cash and cash equivalents at end of period | $ | 4,557 |
| $ | 51 |
| ||
Supplemental Information Three Months Ended March 31,
| 2003 | 2002 | ||||||
Depreciation and amortization | $ | 11,074 |
| $ | 9,680 |
| ||
Dividends per share | $ | 0.1400 |
| $ | 0.1325 |
| ||
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