*Revenue was $54.1 million lower than last year. COVID-19 continued to negatively impact our results, primarily across the Promotional Solutions, Cloud Solutions and Checks segments. *The Payments segment delivered strong revenue growth of 15.6% over the same period last year, benefiting from Treasury Management revenue growth of 20.9% in the third quarter driven primarily by December 2019 sales wins. *Net income of $29.4 million was impacted by COVID-19, compared to a net loss of $318.5 million in the third quarter 2019. 2019 results included pre-tax, non-cash asset impairment charges of $391.0 million. The impairment charges related to goodwill, as well as amortizable intangible assets. *Cash flow from operations for the nine months ending September 30, 2020 was $166.8 million and capital expenditures were $42.7 million. Free cash flow, defined as cash provided by operating activities less capital expenditures, was $124.1 million, a decrease of $34.2 million as compared to 2019. In addition to COVID-19, free cash flow was impacted by previously disclosed expenditures to support the Company’s business transformation and the ongoing secular decline in checks. These impacts were partially offset by lower income taxes and a legal settlement in the prior year. *At the end of the third quarter, the Company had $1.04 billion of total debt outstanding under its revolving credit facility, compared to $883.5 million at the beginning of 2020. Liquidity was $413.0 million, with cash and cash equivalents totaling $310.4 million at the end of the quarter.
Sun Chemical has launched two new color travel effect pigments, Reflecks™ MD Midnight Cherry and Reflecks™ MD Midnight Sapphire, to join its Reflecks™ MultiDimensions product family.
These two blackened metallic-like effect pigments based on calcium sodium borosilicate, utilize innovative multilayer technology that delivers intense chroma, color travel, and sparkle. With a new patent-pending process, the absorption colorant is embedded within the coating, aiding in easier and faster formulation as well as benefitting the end customer by minimally staining the skin.
“We are proud of our research and development capabilities, as our scientists continue to innovate new and exciting products for the cosmetics and personal care market,” said Gabe Uzunian, Head of Development and Expert Services for Cosmetic Effect Pigments. “With the Reflecks™ Midnight family, we also introduce a new technology to embed D&C Black 2 in a borosilicate-based color variable pigment. As we create new processes like this one, we help shape next-level innovation for cosmetic effect pigments.”
Both new products utilize color travel. Reflecks™ MD Midnight Cherry shifts from red to green and Reflecks™ MD Midnight Sapphire shifts from blue to red. The intensity of the color travel is enhanced by the built-in background color using a cutting-edge process that embeds the absorption colorant into the coating layers. This process also aids in faster and easier formulation.
Using effect pigments based on this new process can eliminate the need for additional absorption colorants, depending on the cosmetic formula. The new technology also helps minimize staining on the skin, especially when compared to blended absorption pigments.
“We launched the first Reflecks™ MultiDimensions over 15 years ago and are excited to add the new Reflecks™ MD Midnight products to this popular line,” said Diane Jansson, Global Business Manager Cosmetics. “As a leader in innovation, we not only deliver high-quality products, but also bring cutting-edge processes to the cosmetics market as with our new process.”