Sensient Technologies Corporation Reports Results for the Quarter and Year Ended December 31, 2018
MILWAUKEE—February 15, 2019 — Sensient Technologies Corporation (NYSE: SXT) reported earnings per share of 78 cents in the fourth quarter of 2018 compared to 31 cents in last year’s fourth quarter. Revenue was $324.6 million in this year’s fourth quarter compared to $328.9 million in the comparable period last year. Operating income was $45.3 million in the fourth quarter of 2018 and $47.4 million in last year’s fourth quarter. Foreign currency translation decreased revenue and operating income by approximately 2% and earnings per share by approximately 6% in the fourth quarter.
For the year ended December 31, 2018, earnings per share were $3.70 compared to $2.03 for the year ended December 31, 2017. Revenue was approximately $1.4 billion in both 2018 and 2017. Operating income was $203.4 million and $167.8 million for the years ended December 31,
The reported results include the impact of the Tax Cuts and Jobs Act (“2017 Tax Legislation”) and restructuring and other costs, which are described in more detail under “Reconciliation of Non-GAAP Amounts” below. The impact of the 2017 Tax Legislation decreased net earnings by $0.4 million, or 1 cent per share, in the current quarter and increased net earnings by $6.6 million, or 16 cents per share for the full year of 2018. In 2017, the impact of the 2017 Tax Legislation decreased net earnings by $18.4 million, or 42 cents per share, in both the fourth quarter and for the full year 2017.
In 2017, restructuring and other costs reduced operating income by $2.9 million ($4.7 million after-tax or 11 cents per share), in the fourth quarter and $48.1 million ($42.5 million after-tax or 96 cents per share), for the full year of 2017. The Company completed its restructuring activities in 2017 and did not incur any restructuring or other costs in 2018.
The adjusted results, discussed below, eliminate the impact of restructuring and other costs, and the 2017 Tax Legislation, and enhance the overall understanding of the Company’s performance when viewed together with our GAAP results. Refer to “Reconciliation of Non-GAAP Amounts” below. Sensient’s adjusted earnings per share were 79 cents in this year’s fourth quarter, compared to 84 cents in the comparable period last year. Fourth quarter adjusted operating income was $45.3 million, compared to $50.3 million reported in the fourth quarter of 2017. Foreign currency translation decreased adjusted operating income and adjusted earnings per share by approximately 2% in the fourth quarter of 2018.
For the year ended December 31, 2018, adjusted earnings per share were $3.55, an increase of approximately 4%, from last year’s result of $3.42. Adjusted operating income was $203.4 million for the full year of 2018 compared to $215.9 million in the comparable period last year. Foreign currency translation increased full year 2018 adjusted operating income and adjusted earnings by approximately 1%.
Cash provided by operating activities was $83.5 million for the full year of 2018 compared to $36.3 million in the prior year. The 2018 cash flows provided by investing activities includes $91.1 million of cash receipts on sold receivables compared to $141.5 million in the comparable period last year that were previously reported as cash provided by operating activities. Total debt decreased $56.5 million in the fourth quarter of 2018.
Full Report Available from the SEC.
| Contact: | Amy Agallar |
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