Sensient Technologies Corporation Reports Results for the Quarter Ended December 31, 2023
Fourth Quarter Consolidated Results
-
Reported revenue increased 0.2% to
$349.3 million in the fourth quarter of 2023 versus last year’s fourth quarter results of$348.7 million . On a local currency basis(1), revenue decreased 1.8%. -
Reported operating income declined 80.4% to
$8.1 million compared to$41.2 million recorded in the fourth quarter of 2022. In the fourth quarter of 2023, the Company recorded$27.8 million of costs, primarily non-cash, related to its recently enacted Portfolio Optimization Plan. Local currency adjusted operating income(1) and local currency adjusted EBITDA(1) decreased 9.6% and 8.5%, respectively, in the fourth quarter, with each decreasing as a result of lower sales volumes. -
Reported earnings per share was a loss of
14 cents in the fourth quarter of 2023 compared to income of69 cents in the fourth quarter of 2022. Adjusted local currency EPS(1) decreased 23.4% in the fourth quarter as a result of lower sales volumes and higher interest expense.
“As expected, 2023 was a transitional year for the market and
Fourth Quarter Group Results |
||||||||||||
Reported | Local Currency(1) | |||||||||||
Revenue | Quarter | Year-to-Date | Quarter | Year-to-Date | ||||||||
Flavors & Extracts |
2.3 |
% |
|
0.4 |
% |
|
0.4 |
% |
|
-0.8 |
% |
|
Color |
-4.4 |
% |
|
0.7 |
% |
|
-7.0 |
% |
|
-0.9 |
% |
|
|
-3.9 |
% |
|
1.7 |
% |
|
-4.6 |
% |
|
3.5 |
% |
|
Total Revenue |
0.2 |
% |
|
1.4 |
% |
|
-1.8 |
% |
|
0.3 |
% |
|
Reported | Adjusted Local Currency(1) | |||||||||||
Operating Profit | Quarter | Year-to-Date | Quarter | Year-to-Date | ||||||||
Flavors & Extracts |
-16.0 |
% |
|
-16.7 |
% |
|
-16.6 |
% |
|
-17.3 |
% |
|
Color |
-13.2 |
% |
|
-8.1 |
% |
|
-16.2 |
% |
|
-9.6 |
% |
|
|
-11.0 |
% |
|
4.4 |
% |
|
-11.9 |
% |
|
6.3 |
% |
|
Total Operating Profit |
-80.4 |
% |
|
-21.2 |
% |
|
-9.6 |
% |
|
-6.8 |
% |
|
Corporate & Other reported operating expenses of
During the fourth quarter of 2023, the Company initiated a Portfolio Optimization Plan to undertake an effort to optimize its organizational structure with a focus on driving improved productivity and delivering cost improvement. The Company currently estimates that the Portfolio Optimization Plan will deliver annual cost savings of approximately
In addition, the Company will be increasing its Board of Directors from nine to ten directors and nominating
2024 OUTLOOK
The Company expects 2024 revenue, 2024 adjusted EBITDA(1), and 2024 adjusted diluted earnings per share(1) to grow at a low-to-mid single-digit rate on a local currency basis compared to the Company’s 2023 revenue, the Company’s 2023 adjusted EBITDA(1),and the Company’s 2023 adjusted diluted earnings per share(1) of
The Company expects its 2024 diluted earnings per share to be impacted by higher interest expense. The Company currently expects interest expense to increase by approximately
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.
(1) |
Please refer to “Reconciliation of Non-GAAP Amounts” at the end of this release for more information regarding our non-GAAP financial measures. |
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, Portfolio Optimization Plan costs, divestiture and other related income, and non-cash share-based compensation. 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 2023 fourth quarter financial results at
A replay of the call will be available one hour after the end of the conference call through
This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2024 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 general business, economic, and capital market conditions, including actions taken by customers in response to such 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, disruptions and delays in the Company’s supply chain, and the conflicts between
ABOUT
|
||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Consolidated Statements of Earnings |
Three Months Ended |
Year Ended |
||||||||||||||||||||
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||||
Revenue |
$ |
349,302 |
|
$ |
348,736 |
|
0.2 |
% |
$ |
1,456,450 |
|
$ |
1,437,039 |
|
1.4 |
% |
||||||
Cost of products sold |
|
249,472 |
|
|
237,232 |
|
5.2 |
% |
|
996,153 |
|
|
947,928 |
|
5.1 |
% |
||||||
Selling and administrative expenses |
|
91,767 |
|
|
70,279 |
|
30.6 |
% |
|
305,274 |
|
|
292,360 |
|
4.4 |
% |
||||||
Operating income |
|
8,063 |
|
|
41,225 |
|
(80.4 |
%) |
|
155,023 |
|
|
196,751 |
|
(21.2 |
%) |
||||||
Interest expense |
|
6,524 |
|
|
4,799 |
|
|
25,172 |
|
|
14,547 |
|
||||||||||
Earnings before income taxes |
|
1,539 |
|
|
36,426 |
|
|
129,851 |
|
|
182,204 |
|
||||||||||
Income taxes |
|
7,372 |
|
|
7,305 |
|
|
36,457 |
|
|
41,317 |
|
||||||||||
Net earnings |
$ |
(5,833 |
) |
$ |
29,121 |
|
(120.0 |
%) |
$ |
93,394 |
|
$ |
140,887 |
|
(33.7 |
%) |
||||||
Earnings per share of common stock: | ||||||||||||||||||||||
Basic |
$ |
(0.14 |
) |
$ |
0.70 |
|
$ |
2.22 |
|
$ |
3.36 |
|
||||||||||
Diluted |
$ |
(0.14 |
) |
$ |
0.69 |
|
$ |
2.21 |
|
$ |
3.34 |
|
||||||||||
Average common shares outstanding: | ||||||||||||||||||||||
Basic |
|
42,051 |
|
|
41,896 |
|
|
42,027 |
|
|
41,888 |
|
||||||||||
Diluted |
|
42,051 |
|
|
42,255 |
|
|
42,242 |
|
|
42,213 |
|
||||||||||
Results by Segment |
Three Months Ended |
Year Ended |
||||||||||||||||||||
Revenue |
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
|||||||||||
Flavors & Extracts |
$ |
182,939 |
|
$ |
178,893 |
|
2.3 |
% |
$ |
741,072 |
|
$ |
738,003 |
|
0.4 |
% |
||||||
Color |
|
141,396 |
|
|
147,842 |
|
(4.4 |
%) |
|
607,959 |
|
|
604,017 |
|
0.7 |
% |
||||||
|
|
33,202 |
|
|
34,567 |
|
(3.9 |
%) |
|
146,090 |
|
|
143,581 |
|
1.7 |
% |
||||||
Intersegment elimination |
|
(8,235 |
) |
|
(12,566 |
) |
|
(38,671 |
) |
|
(48,562 |
) |
||||||||||
Consolidated |
$ |
349,302 |
|
$ |
348,736 |
|
0.2 |
% |
$ |
1,456,450 |
|
$ |
1,437,039 |
|
1.4 |
% |
||||||
Operating Income | ||||||||||||||||||||||
Flavors & Extracts |
$ |
18,059 |
|
$ |
21,495 |
|
(16.0 |
%) |
$ |
87,773 |
|
$ |
105,424 |
|
(16.7 |
%) |
||||||
Color |
|
21,343 |
|
|
24,584 |
|
(13.2 |
%) |
|
105,370 |
|
|
114,619 |
|
(8.1 |
%) |
||||||
|
|
5,889 |
|
|
6,615 |
|
(11.0 |
%) |
|
30,800 |
|
|
29,492 |
|
4.4 |
% |
||||||
Corporate & Other |
|
(37,228 |
) |
|
(11,469 |
) |
|
(68,920 |
) |
|
(52,784 |
) |
||||||||||
Consolidated |
$ |
8,063 |
|
$ |
41,225 |
|
(80.4 |
%) |
$ |
155,023 |
|
$ |
196,751 |
|
(21.2 |
%) |
|
||||||
(In thousands) | ||||||
(Unaudited) | ||||||
Consolidated Condensed Balance Sheets |
|
|
||||
2023 |
2022 |
|||||
Cash and cash equivalents |
$ |
28,934 |
$ |
20,921 |
||
Trade accounts receivable |
|
272,164 |
|
302,109 |
||
Inventories |
|
598,399 |
|
564,110 |
||
Prepaid expenses and other current assets |
|
37,119 |
|
47,640 |
||
Total Current Assets |
|
936,616 |
|
934,780 |
||
|
|
436,177 |
|
434,315 |
||
Property, plant, and equipment (net) |
|
505,277 |
|
483,193 |
||
Other assets |
|
136,437 |
|
129,326 |
||
Total Assets |
$ |
2,014,507 |
$ |
1,981,614 |
||
Trade accounts payable |
$ |
131,114 |
$ |
142,365 |
||
Short-term borrowings |
|
13,460 |
|
20,373 |
||
Other current liabilities |
|
91,732 |
|
109,415 |
||
Total Current Liabilities |
|
236,306 |
|
272,153 |
||
Long-term debt |
|
645,085 |
|
630,331 |
||
Accrued employee and retiree benefits |
|
27,715 |
|
26,364 |
||
Other liabilities |
|
52,077 |
|
53,168 |
||
Shareholders' Equity |
|
1,053,324 |
|
999,598 |
||
Total Liabilities and Shareholders' Equity |
$ |
2,014,507 |
$ |
1,981,614 |
|
|||||||
(In thousands, except per share amounts) | |||||||
(Unaudited) | |||||||
Consolidated Statements of Cash Flows | |||||||
Year Ended |
|||||||
2023 |
2022 |
||||||
Cash flows from operating activities: | |||||||
Net earnings |
$ |
93,394 |
|
$ |
140,887 |
|
|
Adjustments to arrive at net cash provided by operating activities: | |||||||
Depreciation and amortization |
|
57,820 |
|
|
52,467 |
|
|
Share-based compensation expense |
|
8,933 |
|
|
16,138 |
|
|
Net loss on assets |
|
541 |
|
|
276 |
|
|
Net gain on divestiture of business |
|
- |
|
|
(2,532 |
) |
|
Portfolio optimization plan costs |
|
24,089 |
|
|
- |
|
|
Deferred income taxes |
|
(5,100 |
) |
|
(11,010 |
) |
|
Changes in operating assets and liabilities: | |||||||
Trade accounts receivable |
|
35,801 |
|
|
(46,086 |
) |
|
Inventories |
|
(28,193 |
) |
|
(159,014 |
) |
|
Prepaid expenses and other assets |
|
5,767 |
|
|
(5,055 |
) |
|
Trade accounts payable and other accrued expenses |
|
(5,978 |
) |
|
17,489 |
|
|
Accrued salaries, wages, and withholdings |
|
(17,830 |
) |
|
3,486 |
|
|
Income taxes |
|
(1,175 |
) |
|
4,422 |
|
|
Other liabilities |
|
1,628 |
|
|
602 |
|
|
Net cash provided by operating activities |
|
169,697 |
|
|
12,070 |
|
|
Cash flows from investing activities: | |||||||
Acquisition of property, plant, and equipment |
|
(87,868 |
) |
|
(79,322 |
) |
|
Proceeds from sale of assets |
|
156 |
|
|
264 |
|
|
Proceeds from divestiture of business |
|
- |
|
|
2,532 |
|
|
Acquisiton of new businesses |
|
(1,650 |
) |
|
(22,714 |
) |
|
Other investing activities |
|
1,741 |
|
|
792 |
|
|
Net cash used in investing activities |
|
(87,621 |
) |
|
(98,448 |
) |
|
Cash flows from financing activities: | |||||||
Proceeds from additional borrowings |
|
351,662 |
|
|
328,597 |
|
|
Debt payments |
|
(355,161 |
) |
|
(171,447 |
) |
|
Dividends paid |
|
(69,222 |
) |
|
(68,915 |
) |
|
Other financing activities |
|
(9,278 |
) |
|
(2,056 |
) |
|
Net cash (used in) provided by financing activities |
|
(81,999 |
) |
|
86,179 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
7,936 |
|
|
(4,620 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
8,013 |
|
|
(4,819 |
) |
|
Cash and cash equivalents at beginning of period |
|
20,921 |
|
|
25,740 |
|
|
Cash and cash equivalents at end of period |
$ |
28,934 |
|
$ |
20,921 |
|
|
Supplemental Information | |||||||
Year Ended |
2023 |
2022 |
|||||
Dividends paid per share |
$ |
1.64 |
|
$ |
1.64 |
|
|
||||||||||||||||||||||||
(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 |
||||||||||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||||||||
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||||||
Operating income (GAAP) |
$ |
8,063 |
|
$ |
41,225 |
|
|
(80.4 |
%) |
$ |
155,023 |
|
$ |
196,751 |
|
|
(21.2 |
%) |
||||||
Divestiture & other related income – Selling and |
|
|
|
|
|
|
|
|
||||||||||||||||
administrative expenses |
- |
(2,532 |
) |
- |
(2,532 |
) | ||||||||||||||||||
Portfolio optimization plan costs – Cost of products sold |
|
3,135 |
|
|
- |
|
|
3,135 |
|
|
- |
|
||||||||||||
Portfolio optimization plan costs – Selling and administrative |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
expenses |
24,706 |
- |
24,706 |
- |
||||||||||||||||||||
Adjusted operating income |
$ |
35,904 |
|
$ |
38,693 |
|
|
(7.2 |
%) |
$ |
182,864 |
|
$ |
194,219 |
|
|
(5.8 |
%) |
||||||
Net earnings (GAAP) |
$ |
(5,833 |
) |
$ |
29,121 |
|
|
(120.0 |
%) |
$ |
93,394 |
|
$ |
140,887 |
|
|
(33.7 |
%) |
||||||
Divestiture & other related income, before tax |
|
- |
|
|
(2,532 |
) |
|
- |
|
|
(2,532 |
) |
||||||||||||
Tax impact of divestiture & other related income(1) |
|
- |
|
|
636 |
|
|
- |
|
|
636 |
|
||||||||||||
Portfolio optimization plan costs, before tax |
|
27,841 |
|
|
- |
|
|
27,841 |
|
|
- |
|
||||||||||||
Tax impact of portfolio optimization plan costs(1) |
|
(415 |
) |
|
- |
|
|
(415 |
) |
|
- |
|
||||||||||||
Adjusted net earnings |
$ |
21,593 |
|
$ |
27,225 |
|
|
(20.7 |
%) |
$ |
120,820 |
|
$ |
138,991 |
|
|
(13.1 |
%) |
||||||
Diluted earnings per share (GAAP) |
$ |
(0.14 |
) |
$ |
0.69 |
|
|
(120.3 |
%) |
$ |
2.21 |
|
$ |
3.34 |
|
|
(33.8 |
%) |
||||||
Divestiture & other related income, net of tax |
|
- |
|
|
(0.04 |
) |
|
- |
|
|
(0.04 |
) |
||||||||||||
Portfolio optimization plan costs, net of tax |
|
0.65 |
|
|
- |
|
|
0.65 |
|
|
- |
|
||||||||||||
Adjusted diluted earnings per share |
$ |
0.51 |
|
$ |
0.64 |
|
|
(20.3 |
%) |
$ |
2.86 |
|
$ |
3.29 |
|
|
(13.1 |
%) |
||||||
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. | ||||||||||||||||||||||||
Results by Segment |
Three Months Ended |
|||||||||||||||||||||||
Adjusted | Adjusted | |||||||||||||||||||||||
Operating Income |
2023 |
|
Adjustments(2) |
|
2023 |
|
2022 |
|
Adjustments(2) |
|
2022 |
|||||||||||||
Flavors & Extracts |
$ |
18,059 |
|
$ |
- |
|
$ |
18,059 |
|
$ |
21,495 |
|
$ |
- |
|
$ |
21,495 |
|
||||||
Color |
|
21,343 |
|
|
- |
|
|
21,343 |
|
|
24,584 |
|
|
- |
|
|
24,584 |
|
||||||
|
|
5,889 |
|
|
- |
|
|
5,889 |
|
|
6,615 |
|
|
- |
|
|
6,615 |
|
||||||
Corporate & Other |
|
(37,228 |
) |
|
27,841 |
|
|
(9,387 |
) |
|
(11,469 |
) |
|
(2,532 |
) |
|
(14,001 |
) |
||||||
Consolidated |
$ |
8,063 |
|
$ |
27,841 |
|
$ |
35,904 |
|
$ |
41,225 |
|
$ |
(2,532 |
) |
$ |
38,693 |
|
||||||
Results by Segment |
Year Ended |
|||||||||||||||||||||||
Adjusted | Adjusted | |||||||||||||||||||||||
Operating Income |
2023 |
|
Adjustments(2) |
|
2023 |
|
2022 |
|
Adjustments(2) |
|
2022 |
|||||||||||||
Flavors & Extracts |
$ |
87,773 |
|
$ |
- |
|
$ |
87,773 |
|
$ |
105,424 |
|
$ |
- |
|
$ |
105,424 |
|
||||||
Color |
|
105,370 |
|
|
- |
|
|
105,370 |
|
|
114,619 |
|
|
- |
|
|
114,619 |
|
||||||
|
|
30,800 |
|
|
- |
|
|
30,800 |
|
|
29,492 |
|
|
- |
|
|
29,492 |
|
||||||
Corporate & Other |
|
(68,920 |
) |
|
27,841 |
|
|
(41,079 |
) |
|
(52,784 |
) |
|
(2,532 |
) |
|
(55,316 |
) |
||||||
Consolidated |
$ |
155,023 |
|
$ |
27,841 |
|
$ |
182,864 |
|
$ |
196,751 |
|
$ |
(2,532 |
) |
$ |
194,219 |
|
||||||
(2) For Operating Income, adjustments consist of divestiture & other related income in 2022 and portfolio optimization plan costs in 2023. |
|
|||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Reconciliation of Non-GAAP Amounts | |||||||||||||||||
The following table summarizes the percentage change in the 2023 results compared to the 2022 results for the corresponding periods. | |||||||||||||||||
Three Months Ended |
|||||||||||||||||
Revenue | Total | Foreign Exchange Rates | Adjustments(3) | Adjusted Local Currency | |||||||||||||
Flavors & Extracts |
|
2.3% |
|
|
1.9% |
|
N/A |
|
|
0.4% |
|||||||
Color |
|
(4.4%) |
|
|
2.6% |
|
N/A |
|
|
(7.0%) |
|||||||
|
|
(3.9%) |
|
|
0.7% |
|
N/A |
|
|
(4.6%) |
|||||||
Total Revenue |
|
0.2% |
|
|
2.0% |
|
N/A |
|
|
(1.8%) |
|||||||
|
|
|
|
|
|
|
|||||||||||
Operating Income |
|
|
|
|
|
|
|
||||||||||
Flavors & Extracts |
|
(16.0%) |
|
|
0.6% |
|
0.0% |
|
|
(16.6%) |
|||||||
Color |
|
(13.2%) |
|
|
3.0% |
|
0.0% |
|
|
(16.2%) |
|||||||
|
|
(11.0%) |
|
|
0.9% |
|
0.0% |
|
|
(11.9%) |
|||||||
Corporate & Other |
|
224.6% |
|
|
0.0% |
|
257.6% |
|
|
(33.0%) |
|||||||
Total Operating Income |
|
(80.4%) |
|
|
2.3% |
|
(73.1%) |
|
|
(9.6%) |
|||||||
Diluted Earnings Per Share |
|
(120.3%) |
|
|
1.4% |
|
(98.3%) |
|
|
(23.4%) |
|||||||
Adjusted EBITDA |
|
(6.4%) |
|
|
2.1% |
|
N/A |
|
|
(8.5%) |
|||||||
|
|
|
|
|
|
|
|||||||||||
Year Ended |
|||||||||||||||||
Revenue |
Total |
|
Foreign Exchange Rates |
|
Adjustments(3) |
|
Adjusted Local Currency |
||||||||||
Flavors & Extracts |
|
0.4% |
|
|
1.2% |
|
N/A |
|
|
(0.8%) |
|||||||
Color |
|
0.7% |
|
|
1.6% |
|
N/A |
|
|
(0.9%) |
|||||||
|
|
1.7% |
|
|
(1.8%) |
|
N/A |
|
|
3.5% |
|||||||
Total Revenue |
|
1.4% |
|
|
1.1% |
|
N/A |
|
|
0.3% |
|||||||
|
|
|
|
|
|
|
|||||||||||
Operating Income |
|
|
|
|
|
|
|
||||||||||
Flavors & Extracts |
|
(16.7%) |
|
|
0.6% |
|
0.0% |
|
|
(17.3%) |
|||||||
Color |
|
(8.1%) |
|
|
1.5% |
|
0.0% |
|
|
(9.6%) |
|||||||
|
|
4.4% |
|
|
(1.9%) |
|
0.0% |
|
|
6.3% |
|||||||
Corporate & Other |
|
30.6% |
|
|
0.0% |
|
56.3% |
|
|
(25.7%) |
|||||||
Total Operating Income |
|
(21.2%) |
|
|
1.0% |
|
(15.4%) |
|
|
(6.8%) |
|||||||
Diluted Earnings Per Share |
|
(33.8%) |
|
|
0.9% |
|
(20.7%) |
|
|
(14.0%) |
|||||||
Adjusted EBITDA |
|
(5.0%) |
|
|
0.9% |
|
N/A |
|
|
(5.9%) |
|||||||
(3) For Operating Income, Diluted Earnings per Share, and Adjusted EBITDA, adjustments consist divestiture & other related income in 2022 and portfolio optimization plan costs in 2023. | |||||||||||||||||
The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three months and year ended |
|||||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||||
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
|||||||
Operating income (GAAP) |
$ |
8,063 |
$ |
41,225 |
(80.4%) |
$ |
155,023 |
$ |
196,751 |
(21.2%) |
|||||||
Depreciation and amortization |
|
14,460 |
|
13,205 |
|
57,820 |
|
52,467 |
|||||||||
Share-based compensation expense |
|
1,648 |
|
3,662 |
|
8,933 |
|
16,138 |
|||||||||
Divestiture & other related income, before tax |
|
- |
|
(2,532) |
|
- |
|
(2,532) |
|||||||||
Portfolio optimization plan costs, before tax |
|
27,841 |
|
- |
|
27,841 |
|
- |
|||||||||
Adjusted EBITDA |
$ |
52,012 |
$ |
55,560 |
(6.4%) |
$ |
249,617 |
$ |
262,824 |
(5.0%) |
|
|||||||||
(In thousands, except percentages) | |||||||||
(Unaudited) | |||||||||
Reconciliation of Non-GAAP Amounts - Continued | |||||||||
The following table summarizes the reconciliation between Debt (GAAP) and Net Debt, and Operating Income (GAAP) and Credit Adjusted EBITDA for the year ended |
|||||||||
Year Ended |
|||||||||
Debt |
2023 |
2022 |
|||||||
Short-term borrowings |
$ |
13,460 |
|
$ |
20,373 |
|
|||
Long-term debt |
|
645,085 |
|
|
630,331 |
|
|||
Credit Agreement adjustments(1) |
|
(16,743 |
) |
|
(10,180 |
) |
|||
Net Debt |
$ |
641,802 |
|
$ |
640,524 |
|
|||
Operating income (GAAP) |
$ |
155,023 |
|
$ |
196,751 |
|
|||
Depreciation and amortization |
|
57,820 |
|
|
52,467 |
|
|||
Share-based compensation expense |
|
8,933 |
|
|
16,138 |
|
|||
Divestiture & other related income, before tax |
|
- |
|
|
(2,532 |
) |
|||
Portfolio optimization plan costs, before tax |
|
27,841 |
|
|
- |
|
|||
Other non-operating gains(2) |
|
(762 |
) |
|
(866 |
) |
|||
Credit Adjusted EBITDA |
$ |
248,855 |
|
$ |
261,958 |
|
|||
Net Debt to Credit Adjusted EBITDA | 2.6x | 2.4x | |||||||
(1) 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. | |||||||||
(2) 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 |
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20240207126895/en/
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investor.relations@sensient.com
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