Financials

Balchem Corporation (NASDAQ: BCPC) today reported for the fourth quarter 2017 record quarterly net earnings of $42.0 million, compared to net earnings of $15.9 million for the fourth quarter 2016. Record adjusted net earnings(a) were $21.9 million, compared to $21.4 million in the prior year quarter. Record Adjusted EBITDA(a) was $40.0 million, compared to $37.7 million in the prior year quarter.   

Fourth Quarter 2017 Financial Highlights:

  • Fourth quarter net sales of $159.3 million in 2017, an increase of 13.2%, compared to the fourth quarter of 2016.
  • Year over year sales growth in each of our four Segments, with record sales for our Human Nutrition & Health segment and record fourth quarter sales for our Specialty Products segment, resulting in earnings from operations growth in three of the four segments.
  • Record fourth quarter net earnings were $42.0 million, an increase of $26.1 million, or 163.6% from the prior year, resulting in earnings per share of $1.30, with the earnings favorably impacted by a one-time $24.9 million tax benefit, primarily due to the revaluation of deferred tax assets and liabilities associated with the Tax Cuts and Jobs Act. Fourth quarter adjusted net earnings of $21.9 million increased $0.5 million or 2.4% from the prior year, resulting in adjusted earnings per share(a) of $0.68.
  • Fourth quarter adjusted EBITDA of $40.0 million increased $2.3 million or 6.1% from the prior year.
  • Fourth quarter cash flows from operations were $31.2 million for 2017 compared to $27.8 million for 2016. Scheduled and accelerated principal payments made of $16.8 million on long-term debt, with our revolver continuing to be fully available to provide flexibility for both organic and acquisitive growth.

Full Year Highlights:

  • Record full year sales of $594.8 million, an increase of 7.5% over the prior year.
  • Record net earnings of $90.1 million, resulting in record earnings per share of $2.79, along with record adjusted net earnings of $81.7 million and record adjusted earnings per share(a) of $2.53.
  • Adjusted EBITDA of $147.8 million compared with $149.3 million from the prior year.
  • Record full year 2017 cash flows from operations were $110.6 million compared to $107.6 million in 2016.

Recent Highlights:

  • Paid a $13.4 million dividend on common stock of $0.42 per share, which was nearly an 11% per share increase over the prior year cash dividend. This dividend represented the ninth consecutive increase in the annual dividend.
  • The National Institutes of Health granted $2.6M to the University of North Carolina Nutrition Research Institute for Dr. Steven Zeisel to develop a test to determine the level of choline present in humans. This grant followed a successful pilot study performed by Dr. Zeisel, which was funded by Balchem.
  • The American Academy of Pediatrics has identified choline as one of the most essential brain building nutrients for infants and young children in their first 1,000 days of life.

(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),
   2017  2016
 Net sales $159,264  $140,760
 Gross margin 51,638  46,932
 Operating expenses 24,972 22,341
 Earnings from operations 26,666 24,591
 Other expense  2,144  1,792
 Earnings before income tax expense  24,522  22,799
 Income tax expense  (17,453) 6,875
 Net earnings  $41,975  $15,924
 Diluted net earnings per common share  $1.30  $0.50
 Adjusted EBITDA  $39,992  $37,684
 Adjusted net earnings  $21,889   $21,382
 Adjusted net earnings per common share  $0.68  $0.67


Consolidated Statement of Earnings 
(In thousands, except per share data)  
For the Year Ended December 31 (Unaudited),
   2017  2016
 Net sales $594,790  $553,204
 Gross margin 189,009  180,861
 Operating expenses 91,754 90,023
 Earnings from operations 97,255 90,838
 Other expense  8,767  7,904
 Earnings before income tax expense  88,488  82,934
 Income tax expense  (1,583) 26,962
 Net earnings  $90,071  $55,972
 Diluted net earnings per common share  $2.79  $1.75
 Adjusted EBITDA  $147,833  $149,263
 Adjusted net earnings  $81,689   $80,363
 Adjusted net earnings per common share  $2.53  $2.52

 

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 $147,833 $149,263  $140,470  $121,835  -
Adjusted net earnings $81,689 $80,363  $79,513 $68,856 -
Adjusted net earnings per common share $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