Balchem Corporation (NASDAQ: BCPC) today reported for the fourth quarter 2016 net earnings of $15.9 million, compared to net earnings of $15.7 million for the fourth quarter 2015. Adjusted EBITDA(a) was $37.7 million, compared to adjusted EBITDA of $33.7 million for the prior year quarter. For the full year ended December 31, 2016, net earnings were $56.0 million with record adjusted EBITDA of $149.3 million, compared to net earnings and adjusted EBITDA of $59.7 million and $140.5 million, respectively, in the prior year.
Fourth Quarter 2016 Financial Highlights:
- Net sales for the quarter increased 6.1% over the prior year to $140.8 million, with sales growth in three of our four segments, aided by the addition of Albion.
- Net earnings for the quarter were $15.9 million, an increase of $0.2 million, or 1.7%, from the prior year, resulting in earnings per share of $0.50.
- Record quarterly adjusted net earnings(a) of $21.4 million increased $0.4 million from the prior year quarter, while fourth quarter adjusted earnings per share(a) of $0.67 increased $0.01 from the prior year quarter, despite an unfavorable comparative year over year tax rate.
- Record fourth quarter adjusted EBITDA(a) of $37.7 million increased $4.0 million or 11.8% from the prior year, with adjusted EBITDA margin(a) improving 140 basis points to 26.8%.
- Fourth quarter cash flows from operations were $27.8 million compared to $25.0 million in the fourth quarter 2015. Free cash flow(a) for the fourth quarter 2016 was $23.6 million compared to $11.8 million for the fourth quarter 2015, an increase of $11.8 million.
- Net principal payments made, including accelerated payments, of $17.8 million on long-term debt and the revolving loan.
Full Year 2016 Financial Highlights:
- Record full year sales of $553.2 million.
- Net earnings of $56.0 million, resulting in earnings per share of $1.75, along with record adjusted net earnings(a) of $80.4 million and record adjusted earnings per share(a) of $2.52.
- Record adjusted EBITDA of $149.3 million increased $8.8 million or 6.3% from the prior year, with adjusted EBITDA margin(a) increasing year over year by 160 basis points to 27.0%.
- Record full year 2016 cash flows from operations were $107.6 million compared to $103.8 million in 2015. Record full year free cash flow(a) of $84.6 million, an increase of $22.1 million or 35.3% over the prior year.
- Paid a $12.1 million dividend on common stock of $0.38 per share, which was nearly a 12% per share increase over the prior year cash dividend. This dividend represented the eighth consecutive increase in the annual dividend.
(a)See “Non-GAAP Financial Information” in the full press release for a reconciliation of GAAP and non-GAAP financial measures.
Selected Quarterly Financial Data*
|Consolidated Statement of Earnings|
|(In thousands, except per share data)|
|For the Three Months Ended December 31 (Unaudited),|
|Earnings from operations||24,591||22,222|
|Earnings before income tax expense||22,799||20,623|
|Income tax expense||6,875||4,964|
|Diluted net earnings per common share||$0.50||$0.49|
|Adjusted net earnings||$21,382|| $21,013|
|Adjusted net earnings per common share||$0.67||$0.66|
Selected Annual Financial Data*
|(in thousands, except per share data)|
|Year ended December 31,||2016||2015||2014||2013||2012|
|Statement of Operations Data|
|Net sales||$553,204||$552,492|| $541,383||$337,173||$310,393|
|Earnings before income tax expense||82,934||87,063||77,052||65,818||59,844|
|Income tax expense||26,962||27,341||24,226||20,944||19,839|
|Diluted net earnings per common share||$1.75||$1.89||$1.69||$1.45|| $1.32|
|Adjusted net earnings||$80,363||$79,513||$68,856||-||-|
|Adjusted net earnings per common share||$2.52||$2.51||$2.21||-||-|
|Balance Sheet Data|
|Other long-term obligations||6,896||6,683||5,950||3,877||3,431|
|Total stockholder's equity||521,033||463,705||391,898||331,358||273,012|
|Dividends per share||$0.38||$0.34||$0.30||$0.26||$0.22|