Financials

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.

Recent Highlights:

  • 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 September 30  (Unaudited),
   2016  2015
 Net sales $140,760  $132,729
 Gross margin 46,932  39,926
 Operating expenses 22,341 17,704
 Earnings from operations 24,591 22,222
 Other expense  1,792  1,599
 Earnings before income tax expense  22,799  20,623
 Income tax expense  6,875 4,964
 Net earnings  $15,924  $15,659
 Diluted net earnings per common share  $0.50  $0.49
 Adjusted EBITDA  $37,684  $33,722
 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
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