0001140361-23-051828.txt : 20231107 0001140361-23-051828.hdr.sgml : 20231107 20231107114949 ACCESSION NUMBER: 0001140361-23-051828 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 55 CONFORMED PERIOD OF REPORT: 20230930 FILED AS OF DATE: 20231107 DATE AS OF CHANGE: 20231107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SENSIENT TECHNOLOGIES CORP CENTRAL INDEX KEY: 0000310142 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 390561070 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07626 FILM NUMBER: 231382461 BUSINESS ADDRESS: STREET 1: 777 EAST WISCONSIN AVENUE CITY: MILWAUKEE STATE: WI ZIP: 53202-5304 BUSINESS PHONE: 4142716755 MAIL ADDRESS: STREET 1: 777 EAST WISCONSIN AVENUE CITY: MILWAUKEE STATE: WI ZIP: 53202-5304 FORMER COMPANY: FORMER CONFORMED NAME: UNIVERSAL FOODS CORP DATE OF NAME CHANGE: 19920703 10-Q 1 ef20012497_10q.htm 10-Q
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549

FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended:
September 30, 2023
  

OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from
to
  
Commission file number: 001-07626

Sensient Technologies Corporation
(Exact name of registrant as specified in its charter)

Wisconsin
  
39-0561070
(State or other jurisdiction of incorporation or organization)
  
(I.R.S. Employer Identification Number)

777 EAST WISCONSIN AVENUE, MILWAUKEE, WISCONSIN 53202-5304
(Address of principal executive offices)

Registrant’s telephone number, including area code:
(414) 271-6755

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.10 per share
SXT
New York Stock Exchange LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days.Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer   ☒
Accelerated Filer ☐
Non-Accelerated Filer ☐
Smaller Reporting Company ☐
Emerging Growth Company ☐
  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐    No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class
  
Outstanding at October 31, 2023
Common Stock, par value $0.10 per share
  
42,249,509

SENSIENT TECHNOLOGIES CORPORATION
INDEX

      
Page No.
       
PART I. FINANCIAL INFORMATION:
  
       
 
Item 1.
Financial Statements:
  
 

 
  
 

1
 

 
  
 

2
 
 
 
  
 

3
 

 
  
 

4
 
 
 
  
 

5
   
 
  
 

6
   
 
  
 
Item 2.
 13
 

 

 
Item 3.
17
   
 
  
 
Item 4.
17
       
PART II. OTHER INFORMATION:
  
       
 
Item 1.
18
   
 
  
 
Item 1A.
18
   
 
  
 
Item 2.
18
   
 
  
  Item 5.
 18
   
 
  
 
Item 6.
18
   
 
  
 

19
   
 
  
 

20

PART I.
FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS

SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands except per share amounts)
(Unaudited)

 
Three Months
Ended September 30,
    
Nine Months
Ended September 30,
  
   
2023
    
2022
    
2023
    
2022
  
                         
Revenue
  
$
363,829
    
$
361,076
    
$
1,107,148
    
$
1,088,303
  
Cost of products sold
    
250,202
      
239,318
      
746,681
      
710,696
  
Selling and administrative expenses
    
69,096
      
74,265
      
213,507
      
222,081
  
Operating income
    
44,531
      
47,493
      
146,960
      
155,526
  
Interest expense
    
6,294
      
3,672
      
18,648
      
9,748
  
Earnings before income taxes
    
38,237
      
43,821
      
128,312
      
145,778
  
Income taxes
    
6,694
      
7,773
      
29,085
      
34,012
  
Net earnings
  
$
31,543
    
$
36,048
    
$
99,227
    
$
111,766
  
                                 
Weighted average number of common shares outstanding:
                                
Basic
    
42,045
      
41,896
      
42,020
      
41,885
  
Diluted
    
42,233
      
42,242
      
42,241
      
42,199
  
                                 
Earnings per common share:
                                
Basic
  
$
0.75
    
$
0.86
    
$
2.36
    
$
2.67
  
Diluted
  
$
0.75
    
$
0.85
    
$
2.35
    
$
2.65
  
                                 
Dividends declared per common share
  
$
0.41
    
$
0.41
    
$
1.23
    
$
1.23
  

See accompanying notes to consolidated condensed financial statements.

1
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)

 
Three Months
Ended September 30,
    
Nine Months
Ended September 30,
  
   
2023
    
2022
    
2023
    
2022
  
                         
Comprehensive income
  
$
18,229
    
$
8,997
    
$
109,380
    
$
56,171
  

See accompanying notes to consolidated condensed financial statements.

2
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)


  
September 30,
2023
(Unaudited)
    
December 31,
2022
  
Assets
           
Current Assets:
            
Cash and cash equivalents
  
$
31,985
    
$
20,921
  
Trade accounts receivable
    
284,668
      
302,109
  
Inventories
    
587,024
      
564,110
  
Prepaid expenses and other current assets
    
41,477
      
47,640
  
                 
Total current assets
    
945,154
      
934,780
  
                 
Other assets
    
94,646
      
96,609
  
Deferred tax assets
    
30,857
      
32,717
  
Intangible assets, net
    
17,352
      
18,600
  
Goodwill
    
415,618
      
415,715
  
Property, Plant, and Equipment:
                
Land
    
31,269
      
31,444
  
Buildings
    
336,152
      
322,268
  
Machinery and equipment
    
759,191
      
722,294
  
Construction in progress
    
71,223
      
65,809
  
     
1,197,835
      
1,141,815
  
Less accumulated depreciation
    
(691,286
)
    
(658,622
)
     
506,549
      
483,193
  
                 
Total assets
  
$
2,010,176
    
$
1,981,614
  
                 
Liabilities and Shareholders’ Equity
                
                 
Current Liabilities:
                
Trade accounts payable
  
$
110,973
    
$
142,365
  
Accrued salaries, wages, and withholdings from employees
    
26,818
      
43,738
  
Other accrued expenses
    
55,676
      
51,231
  
Income taxes
    
7,543
      
14,446
  
Short-term borrowings
    
22,807
      
20,373
  
                 
Total current liabilities
    
223,817
      
272,153
  
                 
Deferred tax liabilities
    
16,202
      
15,977
  
Other liabilities
    
37,115
      
37,191
  
Accrued employee and retiree benefits
    
26,830
      
26,364
  
Long-term debt
    
648,556
      
630,331
  
Shareholders’ Equity:
                
Common stock
    
5,396
      
5,396
  
Additional paid-in capital
    
116,775
      
124,043
  
Earnings reinvested in the business
    
1,750,027
      
1,702,700
  
Treasury stock, at cost
    
(624,007
)
    
(631,853
)
Accumulated other comprehensive loss
    
(190,535
)
    
(200,688
)
                 
Total shareholders’ equity
    
1,057,656
      
999,598
  
                 
Total liabilities and shareholders’ equity
  
$
2,010,176
    
$
1,981,614
  

See accompanying notes to consolidated condensed financial statements.

3
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 
Nine Months
Ended September 30,
  
   
2023
    
2022
  
             
Cash flows from operating activities:
            
Net earnings
  
$
99,227
    
$
111,766
  
Adjustments to arrive at net cash provided by operating activities:
                
Depreciation and amortization
    
43,360
      
39,262
  
Share-based compensation expense
    
7,285
      
12,476
  
Net (gain) loss on assets
    
(81
)
    
283
  
Deferred income taxes
    
2,082
      
20,465
  
Changes in operating assets and liabilities:
                
Trade accounts receivable
    
18,830
      
(39,520
)
Inventories
    
(21,455
)
    
(112,021
)
Prepaid expenses and other assets
    
842
      
(39,598
)
Accounts payable and other accrued expenses
    
(20,572
)
    
24,110
  
Accrued salaries, wages, and withholdings from employees
    
(16,749
)
    
1,819
  
Income taxes
    
(6,536
)
    
(4,342
)
Other liabilities
    
587
      
198
  
                 
Net cash provided by operating activities
    
106,820
      
14,898
  
                 
Cash flows from investing activities:
                
Acquisition of property, plant, and equipment
    
(67,718
)
    
(51,703
)
Proceeds from sale of assets
    
130
      
94
  
Acquisition of new business
     -       (1,048 )
Other investing activities
    
2,036
      
947
  
                 
Net cash used in investing activities
    
(65,552
)
    
(51,710
)
                 
Cash flows from financing activities:
                
Proceeds from additional borrowings
    
197,577
      
187,715
  
Debt payments
    
(174,083
)
    
(87,657
)
Dividends paid
    
(51,900
)
    
(51,681
)
Other financing activities
    
(8,034
)
    
(2,056
)
                 
Net cash (used in) provided by financing activities
    
(36,440
)
    
46,321
  
                 
Effect of exchange rate changes on cash and cash equivalents
    
6,236
      
11,330
  
                 
Net increase in cash and cash equivalents
    
11,064
      
20,839
  
Cash and cash equivalents at beginning of period
    
20,921
      
25,740
  
Cash and cash equivalents at end of period
  
$
31,985
    
$
46,579
  

See accompanying notes to consolidated condensed financial statements.

4
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In thousands, except share and per share amounts)
(Unaudited)

 

   
   
   
Treasury Stock
    
   

 
Three Months Ended September 30, 2023
  
Common
Stock
    
Additional
Paid-In
Capital
    
Earnings
Reinvested
in the
Business
    
Shares
    
Amount
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Total
Equity
  
Balances at June 30, 2023
  
$
5,396
    
$
114,330
    
$
1,735,807
      
11,909,833
    
$
(624,048
)
  
$
(177,221
)
  
$
1,054,264
  
Net earnings
    
-
      
-
      
31,543
      
-
      
-
      
-
      
31,543
  
Other comprehensive loss
    
-
      
-
      
-
      
-
      
-
      
(13,314
)
    
(13,314
)
Cash dividends paid – $0.41 per share
    
-
      
-
      
(17,323
)
    
-
      
-
      
-
      
(17,323
)
Share-based compensation
    
-
      
2,519
      
-
      
-
      
-
      
-
      
2,519
  
Non-vested stock issued upon vesting
     -       (67 )     -       (1,285 )     67       -       -  
Other
     -       (7 )     -       492       (26 )     -       (33 )
Balances at September 30, 2023
  
$
5,396
    
$
116,775
    
$
1,750,027
      
11,909,040
    
$
(624,007
)
  
$
(190,535
)
  
$
1,057,656
  

Three Months Ended September 30, 2022
                                          
Balances at June 30, 2022
  
$
5,396
    
$
116,596
    
$
1,672,000
      
12,058,773
    
$
(631,853
)
  
$
(203,172
)
  
$
958,967
  
Net earnings
    
-
      
-
      
36,048
      
-
      
-
      
-
      
36,048
  
Other comprehensive loss
    
-
      
-
      
-
      
-
      
-
      
(27,051
)
    
(27,051
)
Cash dividends paid – $0.41 per share
    
-
      
-
      
(17,235
)
    
-
      
-
      
-
      
(17,235
)
Share-based compensation
    
-
      
3,785
      
-
      
-
      
-
      
-
      
3,785
  
Balances at September 30, 2022
  
$
5,396
    
$
120,381
    
$
1,690,813
      
12,058,773
    
$
(631,853
)
  
$
(230,223
)
  
$
954,514
  

Nine Months Ended September 30, 2023  
                                         
Balances at December 31, 2022
  
$
5,396
    
$
124,043
    
$
1,702,700
      
12,058,773
    
$
(631,853
)
  
$
(200,688
)
  
$
999,598
  
Net earnings
    
-
      
-
      
99,227
      
-
      
-
      
-
      
99,227
  
Other comprehensive income
    
-
      
-
      
-
      
-
      
-
      
10,153
      
10,153
  
Cash dividends paid – $1.23 per share
    
-
      
-
      
(51,900
)
    
-
      
-
      
-
      
(51,900
)
Share-based compensation
    
-
      
7,285
      
-
      
-
      
-
      
-
      
7,285
  
Non-vested stock issued upon vesting
    
-
      
(12,686
)
    
-
      
(242,110
)
    
12,686
      
-
      
-
  
Benefit plans
    
-
      
375
      
-
      
(18,172
)
    
952
      
-
      
1,327
  
Other
    
-
      
(2,242
)
    
-
      
110,549
      
(5,792
)
    
-
      
(8,034
)
Balances at September 30, 2023
  
$
5,396
    
$
116,775
    
$
1,750,027
      
11,909,040
    
$
(624,007
)
  
$
(190,535
)
  
$
1,057,656
  

Nine Months Ended September 30, 2022  
                                         
Balances at December 31, 2021
  
$
5,396
    
$
111,352
    
$
1,630,713
      
12,107,549
    
$
(634,408
)
  
$
(174,628
)
  
$
938,425
  
Net earnings
    
-
      
-
      
111,766
      
-
      
-
      
-
      
111,766
  
Other comprehensive loss
    
-
      
-
      
-
      
-
      
-
      
(55,595
)
    
(55,595
)
Cash dividends paid – $1.23 per share
    
-
      
-
      
(51,681
)
    
-
      
-
      
-
      
(51,681
)
Share-based compensation
    
-
      
12,476
      
-
      
-
      
-
      
-
      
12,476
  
Non-vested stock issued upon vesting
    
-
      
(3,239
)
    
-
      
(61,821
)
    
3,239
      
-
      
-
  
Benefit plans
    
-
      
560
      
-
      
(11,786
)
    
618
      
-
      
1,178
  
Other
    
-
      
(768
)
    
15
      
24,831
      
(1,302
)
    
-
      
(2,055
)
Balances at September 30, 2022
  
$
5,396
    
$
120,381
    
$
1,690,813
      
12,058,773
    
$
(631,853
)
  
$
(230,223
)
  
$
954,514
  

See accompanying notes to consolidated condensed financial statements.

5
SENSIENT TECHNOLOGIES CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1.
Accounting Policies

In the opinion of Sensient Technologies Corporation (the Company), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of September 30, 2023, and the results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended September 30, 2023 and 2022, and cash flows for the nine months ended September 30, 2023 and 2022. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.

Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2022, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change.

2.
Acquisition

On October 3, 2022, the Company acquired Endemix Doğal Maddeler A.Ş. and Teknoloji Yatırımları ve Danışmanlık Sanayi ve Ticaret A.Ş. (collectively, Endemix), a natural colors business located in Turkey. The Company paid $23.3 million in cash for this acquisition, which is net of $1.3 million in debt assumed, with $1.7 million of such amount being held back by the Company for 12 months to satisfy any indemnification claims that may arise. The assets acquired and liabilities assumed were recorded at their estimated fair value as of the acquisition date. The Company acquired net assets of $8.9 million and identified intangible assets, principally technological know-how and customer relationships, of $4.9 million. The remaining $9.5 million was allocated to goodwill. This business is part of the Color segment.

3.
Trade Accounts Receivable

Trade accounts receivables are recorded at their face amount, less an allowance for expected losses on doubtful accounts. The allowance for doubtful accounts is calculated based on customer-specific analysis and an aging methodology using historical loss information. The Company believes historical loss information is a reasonable basis for expected credit losses as the Company’s historical credit loss experience correlates with its customer delinquency status. This information is also adjusted for any known current economic conditions. Forecasted economic conditions have not had a significant impact on the current credit loss estimate due to the short-term nature of the Company’s customer receivables; however, the Company will continue to monitor and evaluate as economic conditions change. Additionally, as the Company only has one portfolio segment, there are not different risks between portfolios. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible.

The following table summarizes the changes in the allowance for doubtful accounts during the three and nine month periods ended September 30, 2023 and 2022:

(In thousands)
Three Months Ended September 30, 2023
  
Allowance for
Doubtful Accounts
  
Balance at June 30, 2023
  
$
4,293
  
Provision for expected credit losses
    
13
  
Accounts written off
    
(244
)
Translation and other activity
    
(76
)
Balance at September 30, 2023
  
$
3,986
  

(In thousands)
Three Months Ended September 30, 2022
  
Allowance for
Doubtful Accounts
  
Balance at June 30, 2022
  
$
4,494
  
Provision for expected credit losses
    
51
  
Accounts written off
    
(33
)
Translation and other activity
    
(105
)
Balance at September 30, 2022
  
$
4,407
  

(In thousands)
Nine Months Ended September 30, 2023
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2022
  
$
4,436
  
Provision for expected credit losses
    
504
  
Accounts written off
    
(1,051
)
Translation and other activity
    
97
Balance at September 30, 2023
  
$
3,986
  

(In thousands)
Nine Months Ended September 30, 2022
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2021
  
$
4,877
  
Provision for expected credit losses
    
883
  
Accounts written off
     (1,129 )
Translation and other activity
     (224 )
Balance at September 30, 2022
   $ 4,407  

6
4.
Inventories
 
At September 30, 2023, and December 31, 2022, inventories included finished and in-process products totaling $414.8 million and $385.2 million, respectively, and raw materials and supplies of $172.2 million and $178.9 million, respectively.

5.
Debt

On May 31, 2023, the Company entered into an agreement to issue $75 million and €40 million in five-year, fixed-rate, senior notes at coupon rates of 4.94% and 4.15%, respectively. The notes were issued on May 31, 2023, and proceeds have been used to repay a portion of existing indebtedness under the Company’s Third Amended and Restated Credit Agreement, as amended. The notes will mature in May 2028.

On August 31, 2023, the Company entered into Amendment No. 10 (Amendment) to the Receivables Purchase Agreement, dated as of October 3, 2016.  The Amendment extended the termination date from August 31, 2023 to August 30, 2024.

6.
Fair Value

Accounting Standards Codification 820, Fair Value Measurement, defines fair value for financial assets and liabilities, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, trade accounts payable, accrued expenses, and short-term borrowings were approximately the same as the fair values as of September 30, 2023 and December 31, 2022. The net fair value of the forward exchange contracts based on current pricing obtained for comparable derivative products (Level 2 inputs) was an asset of $1.0 million and a liability of $0.2 million as of September 30, 2023 and December 31, 2022, respectively. The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at September 30, 2023 and December 31, 2022 was $648.8 million and $630.8 million, respectively. The fair value of the long-term debt at September 30, 2023 and December 31, 2022 was $639.5 million and $622.2 million, respectively.

7.
Segment Information

The Company evaluates performance based on operating income before share-based compensation, interest expense, and income taxes (segment operating income). Total revenue and segment operating income by business segment and geographic region include both sales to customers, as reported in the Company’s Consolidated Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation.

7
The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. The Company’s three reportable segments are the Flavors & Extracts and Color segments, which are both managed on a product line basis, and the Asia Pacific segment, which is managed on a geographic basis. The Company’s Flavors & Extracts segment produces flavor, extracts, and essential oils products that impart a desired taste, texture, aroma, or other characteristics to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, such as colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color, flavor, and essential oils products in the Asia Pacific countries. The Company’s corporate expenses and share-based compensation are included in the “Corporate & Other” category.

Operating results by segment for the periods presented are as follows:

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia
Pacific
    
Corporate &
Other
    
Consolidated
  
Three months ended September 30, 2023:
                              
Revenue from external customers
  
$
185,029
    
$
142,026
    
$
36,774
    
$
-
    
$
363,829
  
Intersegment revenue
    
5,968
   
2,913
   
-
      
-
      
8,881
Total revenue
  
$
190,997
    
$
144,939
    
$
36,774
    
$
-
    
$
372,710
  
                                         
Operating income (loss)
  
$
23,078
    
$
22,925
    
$
8,095
    
$
(9,567
)
  
$
44,531
  
Interest expense
    
-
      
-
      
-
      
6,294
      
6,294
  
Earnings (loss) before income taxes
  
$
23,078
    
$
22,925
    
$
8,095
    
$
(15,861
)
  
$
38,237
  
                                         
Three months ended September 30, 2022:
                                        
Revenue from external customers
  
$
181,397
    
$
144,570
    
$
35,109
    
$
-
    
$
361,076
  
Intersegment revenue
    
5,649
   
6,899
   
112
   
-
      
12,660
Total revenue
  
$
187,046
    
$
151,469
    
$
35,221
    
$
-
    
$
373,736
  
                                         
Operating income (loss)
  
$
26,337
    
$
28,200
    
$
6,952
    
$
(13,996
)
  
$
47,493
  
Interest expense
    
-
      
-
      
-
      
3,672
      
3,672
  
Earnings (loss) before income taxes
  
$
26,337
    
$
28,200
    
$
6,952
    
$
(17,668
)
  
$
43,821
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia
Pacific
    
Corporate &
Other
    
Consolidated
  
Nine months ended September 30, 2023:
                              
Revenue from external customers
  
$
538,753
    
$
455,507
    
$
112,888
    
$
-
    
$
1,107,148
  
Intersegment revenue
    
19,380
   
11,056
   
-
      
-
      
30,436
Total revenue
  
$
558,133
    
$
466,563
    
$
112,888
    
$
-
    
$
1,137,584
  
                                         
Operating income (loss)
  
$
69,714
    
$
84,027
    
$
24,911
    
$
(31,692
)
  
$
146,960
  
Interest expense
    
-
      
-
      
-
      
18,648
      
18,648
  
Earnings (loss) before income taxes
  
$
69,714
    
$
84,027
    
$
24,911
    
$
(50,340
)
  
$
128,312
  
                                         
Nine months ended September 30, 2022:
                                        
Revenue from external customers
  
$
539,014
    
$
440,568
    
$
108,721
    
$
-
    
$
1,088,303
  
Intersegment revenue
    
20,096
   
15,607
   
293
   
-
      
35,996