Sensient Technologies Corporation Reports Results for the Quarter Ended September 30, 2022

Sensient Reaffirms its 2022 Guidance

MILWAUKEE--()--Sensient Technologies Corporation (NYSE: SXT) reported consolidated revenue of $361.1 million in this year’s third quarter compared to $344.3 million in last year’s third quarter. Reported operating income in the third quarter of 2022 was $47.5 million compared to $47.0 million in the third quarter of 2021. Reported diluted earnings per share was 85 cents in the third quarter of 2022 compared to 80 cents in the third quarter of 2021. Foreign currency translation decreased revenue by approximately 4% and earnings per share by approximately 6% in the present quarter.

The 2021 third quarter reported results included divestiture & other related costs and operational improvement plan costs, which in total decreased 2021 third quarter diluted earnings per share by $0.04. The 2021 third quarter reported results also included the operations of the divested product lines, which were not material to diluted earnings per share in the third quarter of 2021. We did not make any adjustments to our 2022 third quarter reported results for divestiture & other related costs, operational improvement plan costs, or results of the divested product lines. 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  

3.0%

 

-0.5%

Color  

8.8%

 

11.8%

Asia Pacific  

5.3%

 

9.5%

Total Revenue  

4.9%

 

4.7%

 

 

 

 

 

Adjusted

 

Local Currency(1)

Revenue  

Quarter

 

Year-to-Date

Flavors & Extracts  

6.7%

 

6.9%

Color  

14.6%

 

16.0%

Asia Pacific  

14.5%

 

17.2%

Total Revenue  

9.9%

 

11.0%

   
(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 third quarter revenue of $187.0 million compared to $181.7 million in last year’s third quarter, an increase of 3.0%. Adjusted local currency revenue increased 6.7% in the quarter. The Group benefited from pricing across all of its product lines. Segment operating income was $26.3 million in the current quarter compared to $25.2 million reported in the comparable period last year, an increase of 4.7%. Adjusted local currency operating income increased 5.6% in the quarter. The higher operating income was primarily due to the favorable pricing, partially offset by higher input costs. Foreign currency translation decreased segment revenue by approximately 3% and segment operating income by approximately 1% in the quarter. Segment operating income as a percent of revenue in the third quarter of 2022 was 14.1%.

The Color Group reported revenue of $151.5 million in the quarter compared to $139.2 million in last year’s third quarter, an increase of 8.8%. Adjusted local currency revenue increased 14.6% in the quarter. The Group had strong volume growth and higher pricing in both Food & Pharmaceutical Colors and Personal Care. Segment operating income was $28.2 million in the quarter compared to $27.3 million in last year’s comparable period, an increase of 3.5%. Adjusted local currency operating income increased 10.9% compared to the prior year’s third quarter. The higher operating income is primarily a result of the higher volumes and favorable pricing, partially offset by higher input costs. Foreign currency translation decreased segment revenue by approximately 6% and segment operating income by approximately 7% in the quarter. Segment operating income as a percent of revenue in the third quarter of 2022 was 18.6%.

The Asia Pacific Group reported revenue of $35.2 million in the quarter compared to $33.4 million in last year’s third quarter, an increase of 5.3%. Adjusted local currency revenue increased 14.5% in the quarter. The higher revenue was a result of strong volume growth and higher pricing. Segment operating income was $7.0 million in the quarter compared to $6.6 million in last year’s third quarter, an increase of 5.3%. Adjusted local currency operating income increased 16.3% in the quarter. The higher operating income was primarily a result of the favorable volume growth and higher pricing. Foreign currency translation decreased segment revenue and operating income by approximately 9% and 11%, respectively, in the quarter. Segment operating income as a percent of revenue in the third quarter of 2022 was 19.7%.

Corporate & Other reported operating costs of $14.0 million in the current quarter compared to $12.1 million in last year’s third quarter, an increase of 16.0%. Adjusted local currency operating expenses for Corporate & Other increased 23.5% in the quarter primarily due to higher performance-based compensation.

2022 OUTLOOK

Sensient is reconfirming its expectation for 2022 full year GAAP diluted earnings per share to grow at a high-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 & other related costs, operational improvement plan costs, or results of divested businesses.

The Company continues to expect 2022 revenue to grow at a high single-digit rate in local currency compared to the Company’s 2021 adjusted revenue(2). The Company continues to expect its 2022 adjusted EBITDA(2) and diluted earnings per share to grow at a high single- to double-digit rate in local currency compared to the Company’s 2021 adjusted EBITDA(2) and the Company’s 2021 adjusted diluted earnings per share(2) of $3.13.

The Company expects full year 2022 earnings per share reported on a U.S. dollar basis to be impacted by foreign currency headwinds of approximately twenty cents based on current exchange rates.

The Company’s guidance is based on current conditions and trends in the economy and the markets in which the Company operates and is subject to various risks and uncertainties as described below. The Company will continue to monitor the impacts of the COVID-19 pandemic and the conflict between Russia and Ukraine 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, 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 2022 third quarter financial results at 8:30 a.m. CDT on Friday, October 21, 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 October 28, 2022, by calling (877) 344-7529 and referring to conference identification number 2992460. 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 October 25, 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 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 uncertain impacts of the ongoing conflict between Russia and Ukraine on our supply chain, input costs, including energy and transportation, and on general economic conditions; 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; 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, 2021, as updated and supplemented by the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and in other documents that the Company files with the SEC. 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 September 30,

 

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

 

 

2022

2021

 

% Change

 

2022

2021

 

% Change

 
Revenue

$

361,076

 

$

344,287

 

4.9

%

$

1,088,303

 

$

1,039,816

 

4.7

%

 
Cost of products sold

 

239,318

 

 

229,216

 

4.4

%

 

710,696

 

 

697,538

 

1.9

%

Selling and administrative expenses

 

74,265

 

 

68,113

 

9.0

%

 

222,081

 

 

212,670

 

4.4

%

 
Operating income

 

47,493

 

 

46,958

 

1.1

%

 

155,526

 

 

129,608

 

20.0

%

Interest expense

 

3,672

 

 

3,037

 

 

9,748

 

 

9,792

 

 
Earnings before income taxes

 

43,821

 

 

43,921

 

 

145,778

 

 

119,816

 

Income taxes

 

7,773

 

 

10,009

 

 

34,012

 

 

28,300

 

 
Net earnings

$

36,048

 

$

33,912

 

6.3

%

$

111,766

 

$

91,516

 

22.1

%

 
Earnings per share of common stock:
Basic

$

0.86

 

$

0.81

 

$

2.67

 

$

2.17

 

 
Diluted

$

0.85

 

$

0.80

 

$

2.65

 

$

2.16

 

 
Average common shares outstanding:
Basic

 

41,896

 

 

42,024

 

 

41,885

 

 

42,140

 

 
Diluted

 

42,242

 

 

42,206

 

 

42,199

 

 

42,287

 

 
 
 
Results by Segment

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

 

 

Revenue

2022

2021

% Change

 

2022

2021

% Change

 
Flavors & Extracts

$

187,046

 

$

181,667

 

3.0

%

$

559,110

 

$

561,979

 

(0.5

%)

Color

 

151,469

 

 

139,239

 

8.8

%

 

456,175

 

 

408,166

 

11.8

%

Asia Pacific

 

35,221

 

 

33,442

 

5.3

%

 

109,014

 

 

99,599

 

9.5

%

Intersegment elimination

 

(12,660

)

 

(10,061

)

 

(35,996

)

 

(29,928

)

 
Consolidated

$

361,076

 

$

344,287

 

4.9

%

$

1,088,303

 

$

1,039,816

 

4.7

%

 
 
Operating Income
 
Flavors & Extracts

$

26,337

 

$

25,164

 

4.7

%

$

83,929

 

$

76,718

 

9.4

%

Color

 

28,200

 

 

27,253

 

3.5

%

 

90,035

 

 

79,462

 

13.3

%

Asia Pacific

 

6,952

 

 

6,601

 

5.3

%

 

22,877

 

 

19,146

 

19.5

%

Corporate & Other

 

(13,996

)

 

(12,060

)

 

(41,315

)

 

(45,718

)

 
Consolidated

$

47,493

 

$

46,958

 

1.1

%

$

155,526

 

$

129,608

 

20.0

%

Sensient Technologies Corporation
(In thousands)
(Unaudited)
 
Consolidated Condensed Balance Sheets

September 30,

 

December 31,

2022

 

2021

 
Cash and cash equivalents

$

46,579

$

25,740

Trade accounts receivable

 

287,197

 

261,121

Inventories

 

501,382

 

411,635

Prepaid expenses and other current assets

 

45,582

 

42,657

Total Current Assets

 

880,740

 

741,153

 
Goodwill & intangible assets (net)

 

404,840

 

435,009

Property, plant, and equipment (net)

 

440,439

 

446,478

Other assets

 

113,189

 

122,853

 
Total Assets

$

1,839,208

$

1,745,493

 
Trade accounts payable

$

132,904

$

125,519

Short-term borrowings

 

21,947

 

8,539

Other current liabilities

 

100,574

 

98,247

Total Current Liabilities

 

255,425

 

232,305

 
Long-term debt

 

547,190

 

503,006

Accrued employee and retiree benefits

 

27,854

 

28,579

Other liabilities

 

54,225

 

43,178

Shareholders' Equity

 

954,514

 

938,425

 
Total Liabilities and Shareholders' Equity

$

1,839,208

$

1,745,493

Sensient Technologies Corporation
(In thousands, except per share amounts)
(Unaudited)
 
Consolidated Statements of Cash Flows
Nine Months Ended September 30,

2022

 

2021

Cash flows from operating activities:
Net earnings

$

111,766

 

$

91,516

 

Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization

 

39,262

 

 

38,828

 

Share-based compensation expense

 

12,476

 

 

6,431

 

Net loss on assets

 

283

 

 

203

 

Loss on divestitures and other charges

 

-

 

 

13,774

 

Deferred income taxes

 

20,465

 

 

3,793

 

Changes in operating assets and liabilities:
Trade accounts receivable

 

(39,520

)

 

(35,290

)

Inventories

 

(112,021

)

 

(15,898

)

Prepaid expenses and other assets

 

(39,598

)

 

(15,016

)

Trade accounts payable and other accrued expenses

 

24,110

 

 

24,007

 

Accrued salaries, wages, and withholdings

 

1,819

 

 

1,763

 

Income taxes

 

(4,342

)

 

(1,155

)

Other liabilities

 

198

 

 

3,192

 

 
Net cash provided by operating activities

 

14,898

 

 

116,148

 

 
Cash flows from investing activities:
Acquisition of property, plant, and equipment

 

(51,703

)

 

(37,608

)

Proceeds from sale of assets

 

94

 

 

201

 

Proceeds from divestiture of businesses

 

-

 

 

36,790

 

Acquisition of new businesses

 

(1,048

)

 

(13,875

)

Other investing activities

 

947

 

 

1,348

 

 
Net cash used in investing activities

 

(51,710

)

 

(13,144

)

 
Cash flows from financing activities:
Proceeds from additional borrowings

 

187,715

 

 

55,589

 

Debt payments

 

(87,657

)

 

(67,534

)

Purchase of treasury stock

 

-

 

 

(31,467

)

Dividends paid

 

(51,681

)

 

(49,468

)

Other financing activities

 

(2,056

)

 

(582

)

 
Net cash provided by (used in) financing activities

 

46,321

 

 

(93,462

)

 
Effect of exchange rate changes on cash and cash equivalents

 

11,330

 

 

(1,373

)

 
Net increase in cash and cash equivalents

 

20,839

 

 

8,169

 

Cash and cash equivalents at beginning of period

 

25,740

 

 

24,770

 

Cash and cash equivalents at end of period

$

46,579

 

$

32,939

 

 
 
Supplemental Information
Nine Months Ended September 30,

2022

 

2021

 
Dividends paid per share

$

1.23

 

$

1.17

 

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 nine months ended September 30, 2022 and 2021 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, and the results of the divested operations.

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

2022

2021

 

% Change

 

2022

2021

 

% Change

Revenue (GAAP)

$

361,076

$

344,287

 

4.9

%

$

1,088,303

$

1,039,816

 

4.7

%

Revenue of the divested product lines

 

-

 

(1,622

)

 

-

 

(29,399

)

Adjusted revenue

$

361,076

$

342,665

 

5.4

%

$

1,088,303

$

1,010,417

 

7.7

%

 
Operating income (GAAP)

$

47,493

$

46,958

 

1.1

%

$

155,526

$

129,608

 

20.0

%

Divestiture & other related costs – Cost of products sold

 

-

 

-

 

 

-

 

28

 

Divestiture & other related costs – Selling and administrative expenses

 

-

 

241

 

 

-

 

13,473

 

Operating loss (income) of the divested product lines

 

-

 

70

 

 

-

 

(2,398

)

Operational improvement plan - Selling and administrative expenses (income)

 

-

 

483

 

 

-

 

(2,010

)

Adjusted operating income

$

47,493

$

47,752

 

(0.5

%)

$

155,526

$

138,701

 

12.1

%

 
Net earnings (GAAP)

$

36,048

$

33,912

 

6.3

%

$

111,766

$

91,516

 

22.1

%

Divestiture & other related costs, before tax

 

-

 

241

 

 

-

 

13,501

 

Tax impact of divestiture & other related costs(1)

 

-

 

1,179

 

 

-

 

283

 

Net loss (earnings) of the divested product lines, before tax

 

-

 

70

 

 

-

 

(2,398

)

Tax impact of the divested product lines(1)

 

-

 

(18

)

 

-

 

590

 

Operational improvement plan costs (income), before tax

 

-

 

483

 

 

-

 

(2,010

)

Tax impact of operational improvement plan(1)

 

-

 

(115

)

 

-

 

44

 

Adjusted net earnings

$

36,048

$

35,752

 

0.8

%

$

111,766

$

101,526

 

10.1

%

 
Diluted earnings per share (GAAP)

$

0.85

$

0.80

 

6.3

%

$

2.65

$

2.16

 

22.7

%

Divestiture & other related costs, net of tax

 

-

 

0.03

 

 

-

 

0.33

 

Results of operations of the divested product lines, net of tax

 

-

 

-

 

-

 

(0.04

)

Operational improvement plan costs (income), net of tax

 

-

 

0.01

 

 

-

 

(0.05

)

Adjusted diluted earnings per share

$

0.85

$

0.85

 

0.0

%

$

2.65

$

2.40

 

10.4

%

 

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.

Sensient Technologies Corporation
(In thousands)
(Unaudited)
 
Reconciliation of Non-GAAP Amounts - Continued
 
Results by Segment

Three Months Ended September 30,

 

 

 

 

Adjusted

 

 

 

 

 

Adjusted

Revenue

2022

Adjustments(2)

2022

2021

Adjustments(2)

2021

 
Flavors & Extracts

$

187,046

 

$

-

$

187,046

 

$

181,667

 

$

(1,312

)

$

180,355

 

Color

 

151,469

 

 

-

 

151,469

 

 

139,239

 

 

(310

)

 

138,929

 

Asia Pacific

 

35,221

 

 

-

 

35,221

 

 

33,442

 

 

-

 

 

33,442

 

Intersegment elimination

 

(12,660

)

 

-

 

(12,660

)

 

(10,061

)

 

-

 

 

(10,061

)

 
Consolidated

$

361,076

 

$

-

$

361,076

 

$

344,287

 

$

(1,622

)

$

342,665

 

 
 
Operating Income
 
Flavors & Extracts

$

26,337

 

$

-

$

26,337

 

$

25,164

 

$

66

 

$

25,230

 

Color

 

28,200

 

 

-

 

28,200

 

 

27,253

 

 

4

 

 

27,257

 

Asia Pacific

 

6,952

 

 

-

 

6,952

 

 

6,601

 

 

-

 

 

6,601

 

Corporate & Other

 

(13,996

)

 

-

 

(13,996

)

 

(12,060

)

 

724

 

 

(11,336

)

 
Consolidated

$

47,493

 

$

-

$

47,493

 

$

46,958

 

$

794

 

$

47,752

 

 
Results by Segment

Nine Months Ended September 30,

 

 

 

 

Adjusted

 

 

 

 

 

Adjusted

Revenue

2022

Adjustments(2)

2022

2021

Adjustments(2)

2021

 
Flavors & Extracts

$

559,110

 

$

-

$

559,110

 

$

561,979

 

$

(27,616

)

$

534,363

 

Color

 

456,175

 

 

-

 

456,175

 

 

408,166

 

 

(1,638

)

 

406,528

 

Asia Pacific

 

109,014

 

 

-

 

109,014

 

 

99,599

 

 

(295

)

 

99,304

 

Intersegment elimination

 

(35,996

)

 

-

 

(35,996

)

 

(29,928

)

 

150

 

 

(29,778

)

 
Consolidated

$

1,088,303

 

$

-

$

1,088,303

 

$

1,039,816

 

$

(29,399

)

$

1,010,417

 

 
 
Operating Income
 
Flavors & Extracts

$

83,929

 

$

-

$

83,929

 

$

76,718

 

$

(2,859

)

$

73,859

 

Color

 

90,035

 

 

-

 

90,035

 

 

79,462

 

 

548

 

 

80,010

 

Asia Pacific

 

22,877

 

 

-

 

22,877

 

 

19,146

 

 

(87

)

 

19,059

 

Corporate & Other

 

(41,315

)

 

-

 

(41,315

)

 

(45,718

)

 

11,491

 

 

(34,227

)

 
Consolidated

$

155,526

 

$

-

$

155,526

 

$

129,608

 

$

9,093

 

$

138,701

 

 
(2) 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, and 2021 operational improvement plan costs and income.
Sensient Technologies Corporation
(In thousands, except percentages)

(Unaudited)

Reconciliation of Non-GAAP Amounts - Continued

The following tables summarize the percentage change in the 2022 results compared to the 2021 results for the corresponding periods.
 
Three Months Ended September 30,
Revenue Total Foreign
Exchange
Rates
Adjustments(3) Adjusted
Local
Currency
Flavors & Extracts

 

3.0

%

 

(2.9

%)

(0.8

%)

 

6.7

%

Color

 

8.8

%

 

(5.5

%)

(0.3

%)

 

14.6

%

Asia Pacific

 

5.3

%

 

(9.2

%)

0.0

%

 

14.5

%

Total Revenue

 

4.9

%

 

(4.4

%)

(0.6

%)

 

9.9

%

 
Operating Income
Flavors & Extracts

 

4.7

%

 

(1.1

%)

0.2

%

 

5.6

%

Color

 

3.5

%

 

(7.4

%)

0.0

%

 

10.9

%

Asia Pacific

 

5.3

%

 

(11.0

%)

0.0

%

 

16.3

%

Corporate & Other

 

16.0

%

 

(0.1

%)

(7.4

%)

 

23.5

%

Total Operating Income

 

1.1

%

 

(6.5

%)

1.8

%

 

5.8

%

Diluted Earnings Per Share

 

6.3

%

 

(6.3

%)

5.5

%

 

7.1

%

Adjusted EBITDA

 

2.2

%

 

(5.6

%)

N/A

 

 

7.8

%

 
Nine Months Ended September 30,
Revenue Total Foreign
Exchange
Rates
Adjustments(3) Adjusted
Local
Currency
Flavors & Extracts

 

(0.5

%)

 

(2.4

%)

(5.0

%)

 

6.9

%

Color

 

11.8

%

 

(3.8

%)

(0.4

%)

 

16.0

%

Asia Pacific

 

9.5

%

 

(7.4

%)

(0.3

%)

 

17.2

%

Total Revenue

 

4.7

%

 

(3.3

%)

(3.0

%)

 

11.0

%

 
Operating Income
Flavors & Extracts

 

9.4

%

 

(1.2

%)

(4.0

%)

 

14.6

%

Color

 

13.3

%

 

(4.9

%)

0.9

%

 

17.3

%

Asia Pacific

 

19.5

%

 

(9.6

%)

(0.5

%)

 

29.6

%

Corporate & Other

 

(9.6

%)

 

0.0

%

(30.4

%)

 

20.8

%

Total Operating Income

 

20.0

%

 

(5.1

%)

8.4

%

 

16.7

%

Diluted Earnings Per Share

 

22.7

%

 

(5.1

%)

12.8

%

 

15.0

%

Adjusted EBITDA

 

12.8

%

 

(4.0

%)

N/A

 

 

16.8

%

 

(3) 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, and 2021 operational improvement plan costs and income.

 

The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three and nine months ended September 30, 2022 and 2021.
 

Three Months Ended September 30,

 

Nine Months Ended September 30,

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Operating income (GAAP)

$

47,493

 

$

46,958

 

1.1

%

$

155,526

 

$

129,608

 

20.0

%

Depreciation and amortization

 

13,082

 

 

13,011

 

 

39,262

 

 

38,828

 

Depreciation and amortization, divested product lines

 

-

 

 

(49

)

 

-

 

 

(146

)

Share-based compensation expense

 

3,785

 

 

2,243

 

 

12,476

 

 

6,431

 

Divestiture & other related costs, before tax

 

-

 

 

241

 

 

-

 

 

13,501

 

Results of operations of the divested product lines, before tax

 

-

 

 

70

 

 

-

 

 

(2,398

)

Operational improvement plan costs (income), before tax

 

-

 

 

483

 

 

-

 

 

(2,010

)

Adjusted EBITDA

$

64,360

 

$

62,957

 

2.2

%

$

207,264

 

$

183,814

 

12.8

%

 

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

Contacts

Amy Agallar
(414) 347-3706

Contacts

Amy Agallar
(414) 347-3706