Company Release - 5/1/2019 11:54 AM ET
MILWAUKEE--(BUSINESS WIRE)--
Earlier today, Sensient Technologies Corporation (NYSE: SXT) reported
results for the first quarter of 2019 and reaffirmed local currency
segment growth and earnings per share guidance for 2019. As discussed
during the Earnings Call this morning, the Company wishes to clarify the
discussion of the headwinds impacting 2019 earnings per share. The
release earlier today could have been interpreted to imply that these
headwinds would cause both consolidated operating income and earnings
per share to decline 8% to 11% in comparison to prior year results. As
clarified on the Earnings Call, however, this guidance should be read to
apply only to earnings per share and not to consolidated operating
income. See updated outlook statement below, which clarifies this point.
2019 OUTLOOK
The Company reaffirms its previously issued local currency segment
growth and earnings per share guidance for 2019.
The Company previously described three headwinds that will impact the
comparison of 2019 results relative to 2018 results for consolidated
earnings per share. The first headwind relates to higher Corporate
expense as a result of higher non-cash stock-based compensation in 2019
compared to 2018, which is now anticipated to be approximately ten to
twelve cents of diluted earnings per share for the full year. The second
headwind relates to a higher tax rate, which is still anticipated to be
approximately 24 cents for the full year. The third headwind relates to
currency, which is still expected to reduce diluted earnings per share
by approximately five cents for the full year.
These headwinds will cause reported earnings per share to decline 8% to
11% in comparison to 2018 reported diluted earnings per share of $3.70
and cause adjusted diluted earnings per share to be down 4% to 7% in
comparison to 2018 adjusted diluted earnings per share of $3.55. Diluted
earnings per share as reported in US dollars are expected to be down a
further 1% to 2%, or about five cents per share below local currency
earnings per share.
As a result of these headwinds, in 2019, the Company introduced the
metric of Adjusted EBITDA(1) as a supplemental measure of the
performance of the Company’s underlying business in 2019. This metric
represents EBITDA before non-cash stock-based compensation. The
Company’s local currency guidance for this metric is mid-single digit
growth in 2019.
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(1)
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Adjusted EBITDA represents operating income before depreciation
and amortization and non-cash stock-based compensation expense.
See the previously issued “Reconciliation of Non–GAAP Amounts”
in our first quarter earnings release for more information.
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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
Company’s customers include major international manufacturers
representing most of the world’s best-known brands. Sensient is
headquartered in Milwaukee, Wisconsin.
www.sensient.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20190501005758/en/
Amy Agallar
(414) 347-3706
Source: Sensient Technologies Corporation