Financials

Balchem Corporation (NASDAQ: BCPC) today reported for the first quarter 2017 net earnings of $15.5 million, compared to net earnings of $11.9 million for the first quarter 2016. Adjusted net earnings(a) were $18.9 million, compared to $18.4 million in the prior year quarter.  

First Quarter 2017 Financial Highlights:

  • Net sales of $137.7 million for first quarter 2017, an increase of 1.9%, compared to the first quarter of 2016.
  • Record first quarter net earnings were $15.5 million, an increase of $3.6 million, or 30.6% from the prior year, resulting in earnings per share of $0.48.
  • First quarter adjusted net earnings of $18.9 million increased $0.5 million or 2.7% from the prior year, resulting in adjusted earnings per share(a) of $0.59.
  • Record first quarter sales and earnings from operations for our Human Nutrition & Health and Specialty Products segments, along with an increase in both sales and earnings from operations for our Industrial Products segment compared to the first quarter 2016.
  • First quarter cash flows from operations generated $22.8 million for 2017 compared to $29.3 million for 2016. Free cash flow(a) for the first quarter 2017 was $19.9 million compared to $18.7 million for the first quarter 2016, an increase of $1.2 million.
  • Net principal payments made, including accelerated payments, of $11.8 million on long-term debt and the revolving loan. 

Recent Highlights:

  • Our Animal Nutrition and Health segment launched a new line of specialty nutrients and unique processing additives developed for the pet food market and sold under the brand PetShure™.
  • On March 24, 2017, Balchem entered into an agreement to purchase the assets of Chol-Mix Kft, a privately held manufacturer of dry choline chloride, located in Hungary. This small acquisition will provide our Animal Nutrition & Health segment with additional dry choline chloride capacity in Europe, geographic expansion opportunities in Eastern Europe, and technical knowledge supporting the application of liquids on carrier.
     

(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 March 31 (Unaudited),
   2017  2016
 Net sales $137,728  $135,141
 Gross margin 44,429  42,824
 Operating expenses 21,726 22,856
 Earnings from operations 22,703 19,968
 Other expense  1,993  1,987
 Earnings before income tax expense  20,710  17,981
 Income tax expense  5,192 6,095
 Net earnings  $15,518  $11,886
 Diluted net earnings per common share  $0.48  $0.37
 Adjusted EBITDA  $35,807  $35,462
 Adjusted net earnings  $18,914   $18,424
 Adjusted net earnings per common share  $0.59  $0.58

 

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