Financials

Balchem Corporation (NASDAQ: BCPC) today reported for the second quarter 2018 record second quarter net earnings of $19.7 million, compared to net earnings of $16.5 million for the second quarter 2017. Record adjusted net earnings(a) were $24.5 million, compared to $20.5 million in the prior year quarter. Record adjusted EBITDA(a) was $41.0 million, compared to $36.3 million in the prior year quarter.   

Second Quarter 2018 Financial Highlights:

  • Record quarterly net sales of $163.7 million in the second quarter 2018, an increase of $16.6 million, or 11.3%, compared to the prior year quarter.
  • Year over year sales growth in all four of our segments, with record quarterly sales for our Human Nutrition & Health and Specialty Products segments.
  • Year over year earnings from operations growth in three of the four segments.
  • Record second quarter net earnings were $19.7 million, an increase of $3.1 million, or 19.0%, from the prior year, resulting in earnings per share of $0.61.
  • Record quarterly adjusted net earnings of $24.5 million increased $4.0 million or 19.5% from the prior year, resulting in adjusted earnings per share(a) of $0.76.
  • Record quarterly adjusted EBITDA of $41.0 million increased $4.7 million or 13.0% from the prior year.
  • Second quarter cash flows from operations were $21.2 million for 2018 compared to $22.9 million for 2017. Free cash flow(a) for the second quarter 2018 was $17.3 million compared to $15.0 million for the second quarter 2017, an increase of $2.2 million.

Recent Highlights:

  • Entered into a new credit agreement with lenders in the form of a senior secured revolving credit facility, due 2023. The new revolving credit agreement allows for up to $500 million of borrowing. The Company used initial proceeds from the new credit agreement to repay the outstanding balance of $210.8 million on its senior secured term loan A, due May 2019.
  • Collaborated with several leading dairy research institutions to present seven new research projects demonstrating the benefits of Choline in dairy cows and calves at the recent American Dairy Science Association (ADSA) annual meeting.

(a)See “Non-GAAP Financial Information” 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 June 30 (Unaudited),
   2018  2017
 Net sales $163,687 $147,082
 Gross margin 53,466 46,761
 Operating expenses 25,847 21,930
 Earnings from operations 27,619 24,831
 Other expense 2,558 2,271
 Earnings before income tax expense 25,061 22,560
 Income tax expense 5,382 6,024
 Net earnings $19,679 $16,536
 Diluted net earnings per common share $0.61 $0.51
 Adjusted EBITDA(a) $41,046 $36,315
 Adjusted net earnings(a) $24,530 $20,527
 Adjusted net earnings per common share(a) $0.76 $0.64


Consolidated Statement of Earnings 
(In thousands, except per share data)  
For the Six Months Ended June 30 (Unaudited),
   2018  2017
 Net sales $325,097 $284,810
 Gross margin 104,925 91,190
 Operating expenses 49,894 43,656
 Earnings from operations 55,031 47,534
 Other expense 4,793 4,265
 Earnings before income tax expense 50,238 43,269
 Income tax expense 11,213 11,216
 Net earnings $39,025 $32,053
 Diluted net earnings per common share $1.21 $1.00
 Adjusted EBITDA(a) $81,958 $72,122
 Adjusted net earnings(a) $48,948 $39,440
 Adjusted net earnings per common share(a) $1.51 $1.23


 

Selected Annual Financial Data* 

  (in thousands, except per share data)
Year ended December 31, 2017  2016  2015 2014  2013
Statement of Operations Data     
Net sales  $594,790 $553,204  $552,492  $541,383 $337,173
Earnings before income tax expense 88,488 82,934 87,063 77,052 65,818
Income tax expense (1,583) 26,962 27,341 24,226 20,944
Net earnings 90,071 55,972 59,722 52,826 44,874
Diluted net earnings per common share $2.79 $1.75  $1.89  $1.69  $1.45
Adjusted EBITDA(a) $147,833 $149,263  $140,470  $121,835  -
Adjusted net earnings(a) $81,689 $80,363  $79,513 $68,856 -
Adjusted net earnings per common share(a) $2.53 $2.52  $2.51 $2.21 -

 

 December 31,  2017 2016 
2015 
2014 
2013
Balance Sheet Data     
Total assets $963,636 $948,626 $879,686 $861,531 $376,682
Long-term debt 183,964 226,490 260,963 297,500 -
Other long-term obligations 5,847 6,896 6,683 5,950 3,877
Total stockholder's equity 616,881 521,033 463,705 391,898 331,358
Dividends per share $0.42 $0.38  $0.34 $0.30  $0.26