Financials

Balchem Corporation (NASDAQ: BCPC) today reported record second quarter 2017 net earnings of $16.5 million, compared to net earnings of $14.2 million for the second quarter 2016. Adjusted net earnings(a) were $20.5 million, compared to $21.1 million in the prior year quarter.   

Second Quarter 2017 Financial Highlights:

  • Record second quarter net sales of $147.1 million in 2017, an increase of 6.0%, compared to the second quarter of 2016.
  • Record sales and record second quarter earnings from operations for our Human Nutrition & Health segment, along with record sales and record earnings from operations for our Specialty Products segment, and a significant increase in both sales and earnings from operations for our Industrial Products segment compared to the second quarter 2016.
  • Lower sales and earnings from operations for our Animal Nutrition & Health segment, with decreased ruminant volumes and monogastric margin compression.
  • Record second quarter net earnings were $16.5 million, an increase of $2.4 million, or 16.9% from the prior year, resulting in earnings per share of $0.51.
  • Second quarter adjusted net earnings of $20.5 million decreased $0.6 million or 2.7% from the prior year, resulting in adjusted earnings per share(a) of $0.64.
  • Second quarter cash flows from operations were $22.9 million for 2017 compared to $26.6 million for 2016. Free cash flow(a) for the second quarter 2017 was $15.0 million compared to $22.6 million for the second quarter 2016, a decrease of $7.6 million.
  • • Principal payments made, including accelerated payments, of $13.3 million on long-term debt and the revolving loan.

Recent Highlights:

  • On June 1, 2017, the Company acquired 100 percent of the outstanding common shares of Innovative Food Processors, Inc. (“IFP”), a privately held manufacturer of agglomerated and microencapsulated food and nutrition ingredients, headquartered in Faribault, Minnesota. The acquisition of IFP expands the Company’s Human Nutrition & Health segment, adding processing technology and market reach, while bringing innovative and value-added systems to food, beverage, and nutrition customers.

(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 June 30 (Unaudited),
   2017  2016
 Net sales $147,082  $138,794
 Gross margin 46,761  46,449
 Operating expenses 21,930 23,116
 Earnings from operations 24,831 23,333
 Other expense  2,271  1,950
 Earnings before income tax expense  22,560  21,383
 Income tax expense  6,024 7,233
 Net earnings  $16,536  $14,150
 Diluted net earnings per common share  $0.51  $0.44
 Adjusted EBITDA  $36,315  $39,512
 Adjusted net earnings  $20,527   $21,093
 Adjusted net earnings per common share  $0.64  $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
Net earnings 55,972 59,722 52,826 44,874 40,005
Diluted net earnings per common share $1.75  $1.89  $1.69  $1.45  $1.32
Adjusted EBITDA $149,263  $140,470  $121,835  - -
Adjusted net earnings $80,363  $79,513 $68,856 - -
Adjusted net earnings per common share $2.52  $2.51 $2.21 - -

 

 December 31,  2016 2015 
2014 
2013 
2012
Balance Sheet Data     
Total assets $948,626 $879,686 $861,531 $376,682 $312,545
Long-term debt 226,490 260,963 297,500 - -
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