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

Rhea-AI Summary

Sensient Technologies Corporation (NYSE: SXT) reported a consolidated revenue of $340.4 million for Q4 2021, marking a 1.7% increase compared to Q4 2020. The company achieved a diluted earnings per share of 65 cents, up from 59 cents in the previous year. The Flavors & Extracts Group saw a 6.1% revenue decrease primarily due to divesting Fragrances, whereas Color and Asia Pacific groups reported double-digit revenue and profit growth. For 2022, Sensient anticipates mid-teen growth in GAAP diluted EPS and mid-single-digit growth in local currency revenue.

Positive

• Consolidated revenue increased by 1.7% to $340.4 million.
• Diluted earnings per share rose to 65 cents, a 10.2% increase year-over-year.
• Color Group revenue grew by 14.4%, driven by strong volume growth.
• Asia Pacific Group revenue increased by 11.1%, indicating robust performance.

Negative

• Flavors & Extracts Group revenue declined by 6.1%, primarily due to the divestiture of the Fragrances product line.
• Foreign currency translation negatively impacted revenue by approximately 1% and earnings per share by 2%.

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

MILWAUKEE--(BUSINESS WIRE)-- 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20220210005725/en/

Amy Agallar

(414) 347-3706

Source: Sensient Technologies Corporation

FAQ

What were Sensient Technologies' Q4 2021 earnings?

Sensient Technologies reported Q4 2021 earnings of 65 cents per diluted share, compared to 59 cents in Q4 2020.

What is Sensient Technologies' revenue growth in Q4 2021?

The company saw a consolidated revenue growth of 1.7% year-over-year, totaling $340.4 million in Q4 2021.

How did the Flavors & Extracts Group perform in Q4 2021?

The Flavors & Extracts Group reported a revenue decline of 6.1% in Q4 2021, primarily due to the divestiture of the Fragrances product line.

What is the 2022 outlook for Sensient Technologies?

For 2022, Sensient expects mid-teen growth in GAAP diluted earnings per share and mid-single-digit growth in local currency revenue.

How did foreign currency affect Sensient's earnings?

Foreign currency translation decreased revenue by approximately 1% and diluted earnings per share by about 2% for the quarter.