Financials

Balchem Corporation (NASDAQ: BCPC) today reported record third quarter 2017 net earnings of $16.0 million, compared to net earnings of $14.0 million for the third quarter 2016. Adjusted net earnings(a) were $20.4 million, compared to $19.5 million in the prior year quarter.   

Third Quarter 2017 Financial Highlights:

  • Third quarter net sales of $150.7 million in 2017, an increase of 8.8%, compared to the third quarter of 2016.
  • Record sales for our Human Nutrition & Health segment and record third quarter sales for our Specialty Products segment, along with a significant increase in sales for our Industrial Products segment, while Animal Nutrition & Health segment sales decreased compared to the third quarter 2016.
  • Record third quarter net earnings were $16.0 million, an increase of $2.0 million, or 14.5% from the prior year, resulting in earnings per share of $0.50.
  • Third quarter adjusted net earnings of $20.4 million increased $0.9 million or 4.6% from the prior year, resulting in adjusted earnings per share(a) of $0.63.
  • Third quarter cash flows from operations were $33.8 million for 2017 compared to $23.9 million for 2016. Free cash flow(a) for the third quarter 2017 was $26.9 million compared to $19.8 million for the third quarter 2016, an increase of $7.1 million.
  • Principal payments made, including accelerated payments, of $40.3 million on long-term debt and the revolving loan.

Recent Highlights:

  • Substantial progress has been made to strengthen the balance sheet of the company. We have now fully paid down our outstanding revolver balance from the $85 million that were used to finance the acquisition of IFP in June 2017 and partially fund the Albion acquisition in 2016.
  • The expansion project at our Ogden, Utah manufacturing facility, to essentially replace the manufacturing capabilities destroyed in the fire at our Clearfield, Utah site in 2016, is largely complete. The buildout and mechanical capabilities are substantially in place, we are in the equipment and product qualifying stage, and should start commercial production late in the year.

(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),
   2017  2016
 Net sales $150,716  $138,509
 Gross margin 46,181  44,656
 Operating expenses 23,126 21,710
 Earnings from operations 23,055 22,946
 Other expense  2,358  2,175
 Earnings before income tax expense  20,697  20,771
 Income tax expense  4,654 6,759
 Net earnings  $16,043  $14,012
 Diluted net earnings per common share  $0.50  $0.44
 Adjusted EBITDA  $35,720  $36,604
 Adjusted net earnings  $20,360   $19,464
 Adjusted net earnings per common share  $0.63  $0.61


Consolidated Statement of Earnings 
(In thousands, except per share data)  
For the Nine Months Ended September 30 (Unaudited),
   2017  2016
 Net sales $435,526  $412,444
 Gross margin 137,371  133,929
 Operating expenses 66,782 67,682
 Earnings from operations 70,589 66,247
 Other expense  6,623  6,112
 Earnings before income tax expense  63,966  60,135
 Income tax expense  15,870 20,087
 Net earnings  $48,096  $40,048
 Diluted net earnings per common share  $1.49  $1.26
 Adjusted EBITDA  $107,841  $111,579
 Adjusted net earnings  $59,800   $58,981
 Adjusted net earnings per common share  $1.86  $1.85

 

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