Form 8-K SENSIENT TECHNOLOGIES For: Feb 05

---

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

�

FORM 8-K

�

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

February 5, 2015

(Date of Report/Date of earliest event reported)

�

SENSIENT TECHNOLOGIES CORPORATION

(Exact name of registrant as specified in its charter)

�

777 East Wisconsin Avenue

Milwaukee, Wisconsin 53202-5304

(Address and zip code of principal executive offices)

(414) 271-6755

(Registrants telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

�

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

�

---

---

ITEM 2.02

RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On February 5, 2015, Sensient Technologies Corporation issued a press release disclosing its results of operations for its quarter and year ended December 31, 2014, and its financial condition at that date.� The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

ITEM 9.01

FINANCIAL STATEMENTS AND EXHIBITS.

The following exhibit is furnished with this Current Report on Form 8-K:

Exhibit 99.1:

Sensient Technologies Corporation Earnings Press Release for the Quarter and Year Ended December 31, 2014.

�

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

EXHIBIT INDEX

Exhibit 99.1

Sensient Technologies Corporation Earnings Press Release for the Quarter and Year Ended December 31, 2014.

�

�

---

---

Exhibit 99.1

�

Contact:	John Collopy
�	(414) 347-3706

Sensient Technologies Corporation

Reports Results for the Fourth Quarter and Year Ended December 31, 2014

Fourth Quarter Adjusted EPS from Continuing Operations Increases 11% to 71 Cents

Reported Fourth Quarter EPS from Continuing Operations of 55 Cents

2014 Adjusted EPS from Continuing Operations Increases 11% to $3.02

Reported EPS from Continuing Operations of $1.67

Operating Cash Flows Increase by 23% in 2014

Free Cash Flow Increases more than 100% to $110 Million in 2014

MILWAUKEEFebruary 5, 2015  Sensient Technologies Corporation (NYSE: SXT) reported fourth quarter adjusted earnings per share from continuing operations of 71 cents, an increase of 10.9% over last years adjusted earnings per share from continuing operations of 64 cents.� Consolidated revenue was $342.8 million and $350.1 million in the fourth quarters of 2014 and 2013, respectively.� Adjusted operating income increased 7.6% to $48.0 million compared to $44.6 million of adjusted operating income reported in the fourth quarter of 2013.� Sensients adjusted operating margin increased 130 basis points to 14.0% in the fourth quarter.� The adjusted results eliminate the impact of the 2014 and 2013 restructuring costs, which are discussed in more detail below.� As reported, diluted earnings per share from continuing operations were 55 cents and 57 cents in the fourth quarters of 2014 and 2013, respectively.�� Reported operating income was $36.2 million in this years fourth quarter compared to $38.9 million in last years fourth quarter.� Operating income was reduced by restructuring costs of $11.8 million and $5.7 million, in the fourth quarters of 2014 and 2013, respectively.� As reported, operating margins were 10.6% in the fourth quarter of this year and 11.1% in last years fourth quarter.� Foreign currency translation reduced consolidated revenue and operating income, as reported, by 3.9% and 4.4%, respectively, in the fourth quarter.

�

 MORE 

�

---

Sensient Technologies Corporation	Page 2�
Earnings Release  Quarter and Year Ended December 31, 2014	�
February 5, 2015	�

�

For the year ended December 31, 2014, adjusted earnings per share from continuing operations were $3.02 compared to $2.73 in 2013, an increase of 10.6%.� Consolidated revenue was approximately $1.45 billion in both 2014 and 2013.� Adjusted operating income was $221.2 million in 2014, an increase of 7.6% over the adjusted operating income of $205.5 million in 2013.� The 2014 adjusted operating margin was 15.3%, an increase of 120 basis points over last years margin.� As reported, earnings per share from continuing operations were $1.67 and $2.29 in 2014 and 2013, respectively.� Operating income, as reported, was $130.7 million in 2014 compared to $173.8 million in 2013.� The 2014 operating margin, as reported, was 9.0%.� Restructuring and other costs were $90.6 million in 2014, compared to $31.7 million last year.

��Sensient initiated a restructuring plan in the first quarter of 2014 to eliminate underperforming operations, consolidate manufacturing facilities, and improve efficiencies within the Company.� In 2013, the Company incurred restructuring costs to relocate the headquarters of the Flavors & Fragrances Group and consolidate manufacturing facilities.� As noted above, the Companys continuing operations incurred pre-tax restructuring costs of $11.8 million in the fourth quarter of 2014, including $4.1 million of non-cash charges for the write-down of fixed assets.� For the full year, restructuring and other costs for continuing operations were $90.6 million, including $65.3 million of non-cash charges.� In 2013, restructuring costs were $5.7 million in the fourth quarter and $31.7 million for the full year.� In connection with the restructuring plan, the Company stopped operating a business unit in the Color Group during the year, and its results are being reported as a discontinued operation for all periods reported.� The reported loss from discontinued operations includes both operating losses and restructuring costs related to this business unit, net of tax.

---

Sensient Technologies Corporation	Page�3�
Earnings Release  Quarter and Year Ended December 31, 2014	�
February 5, 2015	�

Cash provided by operating activities increased 73.5% to $62.1 million in the quarter, compared to $35.8 million in last years comparable quarter.�� For the full year, operating cash flows increased 23.2% to $189.2 million.� Free cash flow, representing cash flow from operations less capital expenditures, was $109.8 million in 2014, more than twice the free cash flow generated in 2013.� The strong cash flows in both the fourth quarter and full-year periods were driven by higher cash earnings and working capital reductions in the second half of the year.� The Company repurchased 500,000 shares of its common stock in the fourth quarter, and 2.5 million shares during 2014.� Including dividend payments, the Company returned $185 million to its stockholders during the year.

It was a successful year for Sensient, said Paul Manning, President and CEO of Sensient Technologies Corporation.� The Color and Asia Pacific Groups delivered strong performances, and the Flavors & Fragrances Group continues to make progress on its strategic initiatives.� Our strategy is working, and we remain committed to delivering sustainable long term value to our shareholders.

BUSINESS REVIEW

The Color Group reported revenue of $115.7 million and $116.2 million in the fourth quarters of 2014 and 2013, respectively.� Operating income increased 3.4% to $24.9 million from $24.1 million in last years fourth quarter. The Color Groups operating margin increased 70 basis points to 21.5% in the quarter, led by strong performances from the digital inks and the North American food and beverage color businesses. Foreign currency translation reduced both revenue and operating income by approximately five percent in the fourth quarter.� In local currency, fourth quarter revenue and operating income increased by 4.3% and 8.5%, respectively.

For the full year, Color Group revenue was $508.1 million, an increase of 2.6% from the $495.1 million reported last year.� Operating income increased 6.5% to $114.9 million compared to $107.9 million for the comparable period last year.� Foreign currency translation reduced both revenue and operating income by approximately one percent for the year.� In local currency, revenue and operating income increased by 3.7% and 7.3%, respectively.

�

 MORE 

---

Sensient Technologies Corporation	Page�4�
Earnings Release  Quarter and Year Ended December 31, 2014	�
February 5, 2015	�

The Flavors & Fragrances Group reported fourth quarter revenue of $201.9 million compared to the $209.0 million reported in the fourth quarter of 2013.� Several of the Groups businesses reported operating profit growth and higher margins in the quarter as the Company continued its efforts to reduce costs and strategically reposition the Group by emphasizing higher margin, differentiated products.� For the Group as a whole, operating income declined to $25.4 million, compared to $28.7 million in last years fourth quarter as a result of soft demand across several markets.� Foreign currency translation reduced revenue by 3.4% and operating income by 1.2% in the fourth quarter.

The Flavors & Fragrances Group reported revenue of $847.0 million and $876.5 million in 2014 and 2013, respectively.� Operating income was $119.1 million for the year compared to $120.3 million last year.� Foreign currency translation reduced both revenue and operating income by approximately one percent in 2014.� In local currency, revenue was off about three percent, and operating income was comparable to 2013.

The Corporate & Other segment, which includes the Companys operations in Asia Pacific, and the flavor businesses in Central and South America, reported revenue of $36.2 million and $36.5 million in the fourth quarters of 2014 and 2013, respectively.� For the full year, revenue was $146.7 million compared to $145.2 million reported last year.� Foreign currency translation reduced revenue by approximately three percent for both the fourth quarter and full year periods.

�

 MORE 

---

Sensient Technologies Corporation	Page�5�
Earnings Release  Quarter and Year Ended December 31, 2014	�
February 5, 2015	�

�

2015 OUTLOOK

Foreign currency exchange rates will have a significant effect on Sensients 2015 reported results due to the stronger U.S. dollar.� In addition, the recent strengthening of the Swiss Franc will have a further impact on the reported growth within the Color Group in 2015.� Based on current exchange rates, Sensient expects 2015 reported earnings per share from continuing operations to be within a range of $3.02 and $3.12, excluding restructuring costs.

CONFERENCE CALL

The Company will host a conference call to discuss its 2014 fourth quarter and year-end financial results at 10:00 a.m. CST on Friday, February 6, 2015.� To participate in the conference call, please contact InterCall Teleconferencing at (706) 758-1089 and refer to conference identification number 64152150.� A webcast of the conference call will be available on the Investor Information section of the Companys web site at www.sensient.com.

A replay will be available beginning at 1:00 p.m. CST on February 6, 2015, through midnight on February 13, 2015, by calling (404) 537-3406 and referring to conference identification number 64152150.� A transcript of the call will also be posted on the Companys web site at www.sensient.com after the call concludes.

---

Sensient Technologies Corporation	Page�6�
Earnings Release  Quarter and Year Ended December 31, 2014	�
February 5, 2015	�

ABOUT SENSIENT TECHNOLOGIES

Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors and fragrances.� Sensient employs advanced technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, inkjet and specialty inks and colors, and other specialty and fine chemicals.� The Companys customers include major international manufacturers representing most of the worlds best-known brands.� Sensient is headquartered in Milwaukee, Wisconsin.

www.sensient.com

�

 MORE 

---

(In thousands, except percentages and per share amounts)

Consolidated Statements of Earnings

�

Three Months Ended December 31,

�

�

Twelve Months Ended December 31,

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

2014

�

�

2013

�

�

% Change

�

�

2014

�

�

2013

�

�

% Change

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Revenue

�

$

342,819

�

�

$

350,120

�

�

�

-2.1

%

�

$

1,447,821

�

�

$

1,462,126

�

�

�

-1.0

%

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Cost of products sold

�

�

229,714

�

�

�

234,189

�

�

�

-1.9

%

�

�

959,311

�

�

�

987,080

�

�

�

-2.8

%

Selling and administrative expenses

�

�

76,864

�

�

�

77,035

�

�

�

-0.2

%

�

�

357,845

�

�

�

301,266

�

�

�

18.8

%

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Operating income

�

�

36,241

�

�

�

38,896

�

�

�

-6.8

%

�

�

130,665

�

�

�

173,780

�

�

�

-24.8

%

Interest expense

�

�

4,201

�

�

�

3,830

�

�

�

�

�

�

�

16,067

�

�

�

16,147

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Earnings before income taxes

�

�

32,040

�

�

�

35,066

�

�

�

�

�

�

�

114,598

�

�

�

157,633

�

�

�

�

�

Income taxes

�

�

5,711

�

�

�

6,777

�

�

�

�

�

�

�

32,827

�

�

�

43,335

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Earnings from continuing operations

�

�

26,329

�

�

�

28,289

�

�

�

�

�

�

�

81,771

�

�

�

114,298

�

�

�

�

�

Loss from discontinued operations, net of tax

�

�

(974

)

�

�

(240

)

�

�

�

�

�

�

(8,125

)

�

�

(1,003

)

�

�

�

�

Net earnings

�

$

25,355

�

�

$

28,049

�

�

�

�

�

�

$

73,646

�

�

$

113,295

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Earnings per share of common stock:

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Basic:

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Continuing operations

�

$

0.55

�

�

$

0.57

�

�

�

-3.5

%

�

$

1.69

�

�

$

2.30

�

�

�

-26.5

%

Discontinued operations

�

�

(0.02

)

�

�

-

�

�

�

�

�

�

�

(0.17

)

�

�

(0.02

)

�

�

�

�

Earnings per share of common stock

�

$

0.53

�

�

$

0.56

�

�

�

-5.4

%

�

$

1.52

�

�

$

2.28

�

�

�

-33.3

%

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Diluted:

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Continuing operations

�

$

0.55

�

�

$

0.57

�

�

�

-3.5

%

�

$

1.67

�

�

$

2.29

�

�

�

-27.1

%

Discontinued operations

�

�

(0.02

)

�

�

-

�

�

�

�

�

�

�

(0.17

)

�

�

(0.02

)

�

�

�

�

Earnings per share of common stock

�

$

0.53

�

�

$

0.56

�

�

�

-5.4

%

�

$

1.51

�

�

$

2.27

�

�

�

-33.5

%

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Average common shares outstanding:

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Basic

�

�

47,712

�

�

�

49,796

�

�

�

-4.2

%

�

�

48,525

�

�

�

49,755

�

�

�

-2.5

%

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Diluted

�

�

48,047

�

�

�

50,004

�

�

�

-3.9

%

�

�

48,819

�

�

�

49,934

�

�

�

-2.2

%

Sensient Technologies Corporation

Page�8�

(In thousands, except per share amounts)

Beginning in the first quarter of 2014, the results of operations for the Companys Fragrances businesses in Asia Pacific and China, previously reported in the Corporate & Other segment, are reported in the Flavors & Fragrances Group, and the results of operations for the Companys pharmaceutical flavors business, previously reported in the Flavors & Fragrances Group, are reported in the Color Group with the pharmaceutical colors business.� Results for 2013 have been restated to reflect this change. During the year ended December 31, 2014, one of the business units in the Color Group met the criteria as a discontinued operation and is classified accordingly in the Company's Consolidated Statements of Earnings for all periods presented. Restructuring and other charges related to continuing operations are reported in the Corporate & Other segment.

�

 MORE 

---

(In thousands, except per share amounts)

�

�

�

---