Full Year 2022 Reported Consolidated Revenue
Growth of 4.1% Full Year 2022 Adjusted Local Currency Revenue
Growth of 9.7%
Full Year 2022 Reported Operating Profit Growth
of 15.7% Full Year 2022 Adjusted Local Currency Operating Profit
Growth of 12.5%
Sensient Technologies Corporation (NYSE: SXT) reported
consolidated revenue of $348.7 million in this year’s fourth
quarter compared to $340.4 million in last year’s fourth quarter.
Reported operating income in the fourth quarter of 2022 was $41.2
million compared to $40.4 million in the fourth quarter of 2021.
Reported diluted earnings per share was 69 cents in the fourth
quarter of 2022 compared to 65 cents in the fourth quarter of 2021.
Foreign currency translation decreased revenue by approximately 3%
and earnings per share by approximately 6% in the current
quarter.
The 2022 fourth quarter reported results included income related
to an earnout payment received in connection with the divestiture
of our yogurt fruit preparations business, which in total increased
2022 fourth quarter net earnings by $1.9 million ($0.04 per diluted
share). The 2021 fourth quarter reported results include
divestiture & other related costs and operational improvement
plan costs, which in total decreased 2021 fourth quarter net
earnings by $3.0 million ($0.07 per diluted share). The 2021 fourth
quarter reported results also include the operations of the
divested product lines, which were not material to the results in
the fourth quarter of 2021. 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
0.8%
-0.2%
Color
7.8%
10.8%
Asia Pacific
-3.3%
6.1%
Total Revenue
2.4%
4.1%
Adjusted
Local Currency(1)
Revenue
Quarter
Year-to-Date
Flavors & Extracts
2.7%
5.8%
Color
11.9%
15.0%
Asia Pacific
6.4%
14.4%
Total Revenue
5.9%
9.7%
(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 $178.9 million compared to $177.4 million in last year’s fourth
quarter, an increase of 0.8%. Adjusted local currency revenue
increased 2.7% in the quarter. The Group benefited from pricing
across all of its product lines. Segment operating income was $21.5
million in the current quarter compared to $21.9 million reported
in the comparable period last year, a decrease of 2.0%. Adjusted
local currency operating income decreased 4.1% in the quarter. The
lower operating income was primarily due to higher input costs and
lower volumes, partially offset by favorable pricing. Foreign
currency translation decreased segment revenue by approximately 2%
and was not material on segment operating income in the
quarter.
The Color Group reported revenue of $147.8 million in the
quarter compared to $137.1 million in last year’s fourth quarter,
an increase of 7.8%. Adjusted local currency revenue increased
11.9% in the quarter. The Group benefited from higher pricing and
higher volumes. Segment operating income was $24.6 million in the
quarter compared to $24.1 million in last year’s comparable period,
an increase of 2.0%. Adjusted local currency operating income
increased 7.8% compared to the prior year’s fourth quarter. The
higher operating income is primarily a result of the higher volumes
and favorable pricing, partially offset by higher input costs.
Foreign currency translation decreased segment revenue by
approximately 4% and segment operating income by approximately 6%
in the quarter.
The Asia Pacific Group reported revenue of $34.6 million in the
quarter compared to $35.7 million in last year’s fourth quarter, a
decrease of 3.3%, primarily due to foreign currency translation.
Adjusted local currency revenue increased 6.4% in the quarter,
primarily as a result of higher pricing. Segment operating income
was $6.6 million in the quarter compared to $7.2 million in last
year’s fourth quarter, a decrease of 7.9%, primarily due to foreign
currency translation. Adjusted local currency operating income
increased 3.6% in the quarter, primarily as a result of the higher
pricing, partially offset by higher input costs. Foreign currency
translation decreased segment revenue and operating income by
approximately 10% and 12%, respectively, in the quarter.
Corporate & Other reported an operating loss of $11.5
million in the current quarter compared to $12.8 million in last
year’s fourth quarter, a decrease of 10.5%. In the fourth quarter
of 2022, the Company recorded $2.5 million of divestiture related
income related to an earnout payment received in connection with
the divestiture of our yogurt fruit preparations business. The
fourth quarter results of 2021 include $0.8 million of divestiture
and operational improvement plan costs. Adjusted local currency
operating expenses for Corporate & Other increased 16.1% in the
quarter primarily due to higher performance-based compensation.
2023 OUTLOOK
Sensient expects 2023 full year GAAP diluted earnings per share
to be flat to low-single digit growth compared to our 2022 reported
GAAP diluted earnings per share of $3.34.
The Company expects 2023 revenue to grow at a mid-single digit
rate on a local currency basis compared to the Company’s 2022
revenue. The Company expects 2023 diluted earnings per share to be
flat to low-single digit growth on a local currency basis compared
to the Company’s 2022 adjusted diluted earnings per share(2) of
$3.29. The Company expects 2023 adjusted EBITDA(2) to grow at a
mid-to-high single digit rate on a local currency basis compared to
the Company’s 2022 adjusted EBITDA(2).
The Company expects its 2023 diluted earnings per share to be
impacted by higher interest rates and a higher tax rate. The
Company currently expects interest expense to increase by
approximately $11 million ($0.20 per diluted share) in 2023
compared to the Company’s 2022 full year interest expense of $14.5
million. The Company also expects its full year 2023 tax rate to be
approximately 25%.
Based on current exchange rates, the Company expects foreign
exchange rates to be a headwind for the beginning of the year, and
modestly favorable for the full year.
The Company’s guidance is based on current conditions and
economic and market trends in the markets in which the Company
operates and is subject to various risks and uncertainties as
described below. We do not anticipate any divestiture related
costs, operational improvement plan costs, or results of divested
business in 2023 at this time.
(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 and
income, operational improvement plan costs and income, 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 2022
fourth quarter financial results at 8:30 a.m. CST on Friday,
February 10, 2023. 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 17, 2023, by calling (877)
344-7529 and referring to conference identification number 7722006.
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 14, 2023.
This release contains statements that may constitute
“forward-looking statements” within the meaning of Federal
securities laws including under “2023 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 Company’s ability
to manage economic and capital market conditions and the impact of
recessions and economic downturns; the impact of macroeconomic and
geopolitical volatility, including inflation and shortages
impacting the availability and cost of raw materials, energy, and
other supplies; the availability and cost of labor, logistics, and
transportation; the impact and uncertainty created by the COVID-19
pandemic and efforts to manage it on the global economy, including,
but not limited to, its effects on our employees, facilities,
customers, and suppliers, governmental regulations and
restrictions, and general economic conditions; the uncertain
impacts of the ongoing conflict between Russia and Ukraine on our
supply chain, input costs, including energy and transportation, and
on 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; 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, 2021, as updated and supplemented by the
Company’s Quarterly Report on Form 10-Q for the quarter ended March
31, 2022, 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, 2022 that will be filed by March 1, 2023.
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, 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,
2022
2021
% Change
2022
2021
% Change
Revenue
$
348,736
$
340,448
2.4%
$
1,437,039
$
1,380,264
4.1%
Cost of products sold
237,232
228,065
4.0%
947,928
925,603
2.4%
Selling and administrative expenses
70,279
71,963
(2.3%)
292,360
284,633
2.7%
Operating income
41,225
40,420
2.0%
196,751
170,028
15.7%
Interest expense
4,799
2,752
14,547
12,544
Earnings before income taxes
36,426
37,668
182,204
157,484
Income taxes
7,305
10,439
41,317
38,739
Net earnings
$
29,121
$
27,229
6.9%
$
140,887
$
118,745
18.6%
Earnings per share of common stock: Basic
$
0.70
$
0.65
$
3.36
$
2.82
Diluted
$
0.69
$
0.65
$
3.34
$
2.81
Average common shares outstanding: Basic
41,896
41,890
41,888
42,077
Diluted
42,255
42,173
42,213
42,258
Results by Segment Three Months
Ended December 31, Year Ended December 31,
Revenue
2022
2021
% Change
2022
2021
% Change
Flavors & Extracts
$
178,893
$
177,448
0.8%
$
738,003
$
739,427
(0.2%)
Color
147,842
137,104
7.8%
604,017
545,270
10.8%
Asia Pacific
34,567
35,749
(3.3%)
143,581
135,348
6.1%
Intersegment elimination
(12,566
)
(9,853
)
(48,562
)
(39,781
)
Consolidated
$
348,736
$
340,448
2.4%
$
1,437,039
$
1,380,264
4.1%
Operating Income
Flavors & Extracts
$
21,495
$
21,942
(2.0%)
$
105,424
$
98,660
6.9%
Color
24,584
24,113
2.0%
114,619
103,575
10.7%
Asia Pacific
6,615
7,184
(7.9%)
29,492
26,330
12.0%
Corporate & Other
(11,469
)
(12,819
)
(52,784
)
(58,537
)
Consolidated
$
41,225
$
40,420
2.0%
$
196,751
$
170,028
15.7%
Sensient Technologies Corporation (In thousands)
(Unaudited) Consolidated Condensed Balance
Sheets December 31, December 31,
2022
2021
Cash and cash equivalents
$
20,921
$
25,740
Trade accounts receivable
302,109
261,121
Inventories
564,110
411,635
Prepaid expenses and other current assets
47,640
42,657
Total Current Assets
934,780
741,153
Goodwill & intangible assets (net)
434,315
435,009
Property, plant, and equipment (net)
483,193
446,478
Other assets
129,326
122,853
Total Assets
$
1,981,614
$
1,745,493
Trade accounts payable
$
142,365
$
125,519
Short-term borrowings
20,373
8,539
Other current liabilities
109,415
98,247
Total Current Liabilities
272,153
232,305
Long-term debt
630,331
503,006
Accrued employee and retiree benefits
26,364
28,579
Other liabilities
53,168
43,178
Shareholders' Equity
999,598
938,425
Total Liabilities and Shareholders' Equity
$
1,981,614
$
1,745,493
Sensient Technologies Corporation (In thousands, except
per share amounts) (Unaudited) Consolidated
Statements of Cash Flows Year Ended December 31,
2022
2021
Cash flows from operating activities: Net earnings
$
140,887
$
118,745
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization
52,467
52,051
Share-based compensation expense
16,138
9,573
Net loss on assets
276
331
Net (gain) loss on divestitures and other charges
(2,532
)
14,021
Deferred income taxes
(11,010
)
(6,071
)
Changes in operating assets and liabilities: Trade accounts
receivable
(46,086
)
(34,571
)
Inventories
(159,014
)
(36,323
)
Prepaid expenses and other assets
(5,055
)
(6,057
)
Trade accounts payable and other accrued expenses
17,489
21,326
Accrued salaries, wages, and withholdings
3,486
7,321
Income taxes
4,422
4,275
Other liabilities
602
597
Net cash provided by operating activities
12,070
145,218
Cash flows from investing activities: Acquisition of
property, plant, and equipment
(79,322
)
(60,788
)
Proceeds from sale of assets
264
216
Proceeds from divestiture of businesses
2,532
37,790
Acquisition of new businesses
(22,714
)
(13,875
)
Other investing activities
792
1,097
Net cash used in investing activities
(98,448
)
(35,560
)
Cash flows from financing activities: Proceeds from
additional borrowings
328,597
112,194
Debt payments
(171,447
)
(110,168
)
Purchase of treasury stock
-
(42,511
)
Dividends paid
(68,915
)
(66,694
)
Other financing activities
(2,056
)
(582
)
Net cash provided by (used in) financing activities
86,179
(107,761
)
Effect of exchange rate changes on cash and cash equivalents
(4,620
)
(927
)
Net (decrease) increase in cash and cash equivalents
(4,819
)
970
Cash and cash equivalents at beginning of period
25,740
24,770
Cash and cash equivalents at end of period
$
20,921
$
25,740
Supplemental Information Year Ended
December 31,
2022
2021
Dividends paid per share
$
1.64
$
1.58
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, 2022 and
2021 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, and the results of the divested
operations.
Three Months Ended December
31,
Year Ended December
31,
2022
2021
% Change
2022
2021
% Change
Revenue (GAAP)
$
348,736
$
340,448
2.4
%
$
1,437,039
$
1,380,264
4.1
%
Revenue of the divested product lines
-
(663
)
-
(30,062
)
Adjusted revenue
$
348,736
$
339,785
2.6
%
$
1,437,039
$
1,350,202
6.4
%
Operating income (GAAP)
$
41,225
$
40,420
2.0
%
$
196,751
$
170,028
15.7
%
Divestiture & other related costs – Cost of products sold
-
58
-
86
Divestiture & other related (income) costs – Selling and
administrative expenses
(2,532
)
579
(2,532
)
14,052
Operating loss (income) of the divested product lines
-
518
-
(1,880
)
Operational improvement plan - Selling and administrative expenses
(income)
-
115
-
(1,895
)
Adjusted operating income
$
38,693
$
41,690
(7.2
%)
$
194,219
$
180,391
7.7
%
Net earnings (GAAP)
$
29,121
$
27,229
6.9
%
$
140,887
$
118,745
18.6
%
Divestiture & other related (income) costs, before tax
(2,532
)
637
(2,532
)
14,138
Tax impact of divestiture & other related costs(1)
636
1,809
636
2,092
Net loss (earnings) of the divested product lines, before tax
-
518
-
(1,880
)
Tax impact of the divested product lines(1)
-
(130
)
-
460
Operational improvement plan costs (income), before tax
-
115
-
(1,895
)
Tax impact of operational improvement plan(1)
-
427
-
471
Adjusted net earnings
$
27,225
$
30,605
(11.0
%)
$
138,991
$
132,131
5.2
%
Diluted earnings per share (GAAP)
$
0.69
$
0.65
6.2
%
$
3.34
$
2.81
18.9
%
Divestiture & other related (income) costs, net of tax
(0.04
)
0.06
(0.04
)
0.38
Results of operations of the divested product lines, net of tax
-
0.01
-
(0.03
)
Operational improvement plan costs (income), net of tax
-
0.01
-
(0.03
)
Adjusted diluted earnings per share
$
0.64
$
0.73
(12.3
%)
$
3.29
$
3.13
5.1
%
Note: Earnings per share calculations may not foot due to rounding
differences. (1) Tax impact adjustments were determined
based on the nature of the underlying non-GAAP adjustments and
their relevant jurisdictional tax rates.
Sensient Technologies
Corporation (In thousands) (Unaudited)
Reconciliation of Non-GAAP Amounts - Continued
Results by Segment Three Months Ended December 31,
Adjusted
Adjusted
Revenue
2022
Adjustments(2)
2022
2021
Adjustments(2)
2021
Flavors & Extracts
$
178,893
$
-
$
178,893
$
177,448
$
(221
)
$
177,227
Color
147,842
-
147,842
137,104
(442
)
136,662
Asia Pacific
34,567
-
34,567
35,749
-
35,749
Intersegment elimination
(12,566
)
-
(12,566
)
(9,853
)
-
(9,853
)
Consolidated
$
348,736
$
-
$
348,736
$
340,448
$
(663
)
$
339,785
Operating Income
Flavors & Extracts
$
21,495
$
-
$
21,495
$
21,942
$
491
$
22,433
Color
24,584
-
24,584
24,113
27
24,140
Asia Pacific
6,615
-
6,615
7,184
-
7,184
Corporate & Other
(11,469
)
(2,532
)
(14,001
)
(12,819
)
752
(12,067
)
Consolidated
$
41,225
$
(2,532
)
$
38,693
$
40,420
$
1,270
$
41,690
Results by Segment Year Ended December 31,
Adjusted
Adjusted
Revenue
2022
Adjustments(2)
2022
2021
Adjustments(2)
2021
Flavors & Extracts
$
738,003
$
-
$
738,003
$
739,427
$
(27,837
)
$
711,590
Color
604,017
-
604,017
545,270
(2,080
)
543,190
Asia Pacific
143,581
-
143,581
135,348
(295
)
135,053
Intersegment elimination
(48,562
)
-
(48,562
)
(39,781
)
150
(39,631
)
Consolidated
$
1,437,039
$
-
$
1,437,039
$
1,380,264
$
(30,062
)
$
1,350,202
Operating Income
Flavors & Extracts
$
105,424
$
-
$
105,424
$
98,660
$
(2,368
)
$
96,292
Color
114,619
-
114,619
103,575
575
104,150
Asia Pacific
29,492
-
29,492
26,330
(87
)
26,243
Corporate & Other
(52,784
)
(2,532
)
(55,316
)
(58,537
)
12,243
(46,294
)
Consolidated
$
196,751
$
(2,532
)
$
194,219
$
170,028
$
10,363
$
180,391
(2) 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 and income, and 2021 operational
improvement plan costs and income.
Sensient Technologies
Corporation (In thousands, except percentages)
(Unaudited) Reconciliation of Non-GAAP Amounts -
Continued The following tables summarize the percentage
change in the 2022 results compared to the 2021 results for the
corresponding periods.
Three Months Ended December
31, Revenue
Total
Foreign Exchange Rates
Adjustments(3)
Adjusted Local
Currency
Flavors & Extracts
0.8%
(1.8%)
(0.1%)
2.7%
Color
7.8%
(3.8%)
(0.3%)
11.9%
Asia Pacific
(3.3%)
(9.7%)
0.0%
6.4%
Total Revenue
2.4%
(3.3%)
(0.2%)
5.9%
Operating Income
Flavors & Extracts
(2.0%)
(0.1%)
2.2%
(4.1%)
Color
2.0%
(5.9%)
0.1%
7.8%
Asia Pacific
(7.9%)
(11.5%)
0.0%
3.6%
Corporate & Other
(10.5%)
0.0%
(26.6%)
16.1%
Total Operating Income
2.0%
(5.6%)
9.3%
(1.7%)
Diluted Earnings Per Share
6.2%
(6.1%)
19.1%
(6.8%)
Adjusted EBITDA
(4.3%)
(4.6%)
N/A
0.3%
Year Ended December
31,
Revenue
Total
Foreign Exchange Rates
Adjustments(3)
Adjusted Local
Currency
Flavors & Extracts
(0.2%)
(2.2%)
(3.8%)
5.8%
Color
10.8%
(3.8%)
(0.4%)
15.0%
Asia Pacific
6.1%
(8.0%)
(0.3%)
14.4%
Total Revenue
4.1%
(3.4%)
(2.2%)
9.7%
Operating Income
Flavors & Extracts
6.9%
(0.9%)
(2.5%)
10.3%
Color
10.7%
(5.1%)
0.7%
15.1%
Asia Pacific
12.0%
(10.1%)
(0.4%)
22.5%
Corporate & Other
(9.8%)
0.0%
(29.4%)
19.6%
Total Operating Income
15.7%
(5.2%)
8.4%
12.5%
Diluted Earnings Per Share
18.9%
(5.3%)
14.3%
9.9%
Adjusted EBITDA
8.7%
(4.1%)
N/A
12.8%
(3) 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
and income, and 2021 operational improvement plan costs and income.
The following table summarizes the reconciliation between Operating
Income (GAAP) and Adjusted EBITDA for the three and twelve months
ended December 31, 2022 and 2021.
Three Months Ended
December 31, Year Ended December 31,
2022
2021
% Change
2022
2021
% Change
Operating income (GAAP)
$
41,225
$
40,420
2.0
%
$
196,751
$
170,028
15.7
%
Depreciation and amortization
13,205
13,223
52,467
52,051
Depreciation and amortization, divested product lines
-
-
-
(146
)
Share-based compensation expense
3,662
3,142
16,138
9,573
Divestiture & other related (income) costs, before tax
(2,532
)
637
(2,532
)
14,138
Results of operations of the divested product lines, before tax
-
518
-
(1,880
)
Operational improvement plan costs (income), before tax
-
115
-
(1,895
)
Adjusted EBITDA
$
55,560
$
58,055
(4.3
%)
$
262,824
$
241,869
8.7
%
Sensient Technologies Corporation (In thousands, except
percentages) (Unaudited) Reconciliation of
Non-GAAP Amounts - Continued Year Ended December
31, Debt
2022
2021
Short-term borrowings
$
20,373
$
8,539
Long-term debt
630,331
503,006
Credit Agreement adjustments(4)
(10,180
)
(14,900
)
Net Debt
$
640,524
$
496,645
Operating income (GAAP)
$
196,751
$
170,028
Depreciation and amortization
52,467
52,051
Depreciation and amortization, divested product lines
-
(146
)
Share-based compensation expense
16,138
9,573
Divestiture & other related (income) costs, before tax
(2,532
)
14,138
Results of operations of the divested product lines, before tax
-
(1,880
)
Operational improvement plan income, before tax
-
(1,895
)
Other non-operating (gains) losses(5)
(866
)
1,027
Credit Adjusted EBITDA
$
261,958
$
242,896
Net Debt to Credit Adjusted EBITDA 2.4x 2.0x
(4) Adjustments include cash and cash equivalents, as described in
the Company's Third Amended and Restated Credit Agreement (Credit
Agreement), and certain letters of credit and hedge contracts. (5)
Adjustments consist of certain financing transaction costs, certain
non-financing interest items, and gains and losses related to
certain non-cash, non-operating, and/or non-recurring items as
described in the Credit Agreement. 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.
With respect to Net Debt to Credit Adjusted EBITDA, this represents
our leverage ratio as calculated for purposes of compliance with
covenants under our Credit Agreement. In addition to use for these
purposes, management utilizes this measure to assess leverage
trends and may from time to time disclose it to investors to be
used for these purposes.
Category: Earnings
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230209005557/en/
Amy Agallar (414) 347-3706
Sensient Technologies (NYSE:SXT)
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