Financials

Balchem Corporation (NASDAQ: BCPC) today reported for the third quarter net earnings of $14.0 million, compared to net earnings of $14.0 million for the third quarter 2015. Adjusted EBITDA(a) was $36.6 million, compared to adjusted EBITDA of $35.7 million for the third quarter 2015. For the nine months ended September 30, 2016, net earnings were $40.0 million with record adjusted EBITDA of $111.6 million, compared to net earnings and adjusted EBITDA of $44.1 million and $106.7 million, respectively, in the prior year. Adjusted EBITDA margin was strong, increasing in the third quarter 2016 to 26.4% from 25.5% in the prior year quarter, and this was a significant contributor to these results in a challenging marketplace.

Third Quarter 2016 Financial Highlights: 

  • Net sales of $138.5 million, a decrease of 1.2% compared to the third quarter of 2015, with sales growth in three of our four segments, aided by the addition of Albion, offset by continued lower oil & gas sales and lower average selling prices.
  • Quarterly adjusted EBITDA(a) of $36.6 million increased $0.9 million or 2.6% from the prior year..
  • Adjusted EBITDA margin(a) improved to 26.4% versus 25.5% in the third quarter 2015 principally due to improved product mix and lower raw material costs.
  • Quarterly adjusted net earnings(a) of $19.5 million increased $0.1 million from the prior year, while third quarter adjusted earnings per share(a) of $0.61 was flat with the prior year.
  • Record third quarter free cash flow(a) was $19.8 million compared to $16.2 million for the third quarter 2015.
  • Principal payments made, including accelerated payments, of $25.8 million on long-term debt and the revolving loan.

Recent Highlights:

  • A strategic alliance was formed with Perdue AgriBusiness, which will focus on advancing the science of precision feeding for dairy cattle and bringing new products to the dairy industry. The initial efforts will be in the area of ruminant amino acids nutrition and will evolve into creating precision feeding solutions for other nutrients such as minerals, lipids and carbohydrates.

*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 September 30  (Unaudited),
   2016  2015
 Net sales $138,509  $ 140,128
 Gross margin 44,656  43,174
 Operating expenses 21,710 20,252
 Earnings from operations 22,946 22,922
 Other expense  2,175  1,733
 Earnings before income tax expense  20,771  21,189
 Income tax expense  6,759 7,213
 Net earnings  $14,012  $13,976
 Diluted net earnings per common share  $0.44  $0.44
 Adjusted EBITDA  $36,604  $35,669
 Adjusted net earnings  $19,464   $19,406
 Adjusted net earnings per common share  $0.61  $0.61

 

Selected Annual Financial Data* 

  (in thousands, except per share data)
Year ended December 31, 2015  2014  2013 2012  2011
Statement of Operations Data     
Net sales  $552,492  $541,383  $337,173 $310,393  $291,867
Earnings before income tax expense 87,063 77,052 65,818 59,844 56,738
Income tax expense 27,341 24,226 20,944 19,839 17,973
Net earnings 59,722 52,826 44,874 40,005 38,765
Diluted net earnings per common share $1.89  $1.69  $1.45  $1.32  $1.28
Adjusted EBITDA $140,470  $121,835  -  - -
Adjusted net earnings $79,513  $68,856 - - -
Adjusted net earnings per common share $2.51  $2.21 - - -

 

 December 31,  2015 2014 
2013 
2012 
2011
Balance Sheet Data     
Total assets $881,223 $861,531 $376,682 $312,545 $271,717
Long-term debt 262,500 297,500 - - 1,410
Other long-term obligations 6,683 5,950 3,877 3,431 2,788
Total stockholder's equity 463,705 391,898 331,358 273,012 232,009
Dividends per share $0.34  $0.30 $0.26  $0.22 $0.18