New Hampton, NY, February 18, 2022 – Balchem Corporation (NASDAQ: BCPC) reported today fourth quarter net earnings of $24.9 million for 2021, compared to net earnings of $22.2 million for the fourth quarter 2020. Fourth quarter adjusted net earnings were $27.8 million, compared to $26.9 million in the prior year quarter. Record fourth quarter adjusted EBITDA was $45.6 million, compared to $43.6 million in the prior year quarter. Balchem Corporation also reported for the full year 2021 net earnings of $96.1 million, compared to net earnings of $84.6 million for 2020. Full year adjusted net earnings were $116.6 million, compared to $107.8 million in the prior year, and full year adjusted EBITDA was $189.8 million, compared to $174.2 million in the prior year.
Ted Harris, Chairman, CEO, and President of Balchem said, “The Balchem team delivered an excellent fourth quarter performance, setting new records for sales and adjusted EBITDA, while delivering solid sales growth in all three reporting segments and consolidated organic volume growth of almost 8%. We also delivered strong cash flows, showing consistency in translating our profits into cash.”
Mr. Harris added, “We continue to see healthy overall demand for our product offerings. At the same time, we are still operating in a very challenging macro-economic environment with global supply chain disruptions, significant input cost inflation, as well as a tight labor market. In response to the significant inflationary pressures we have faced, our teams have been actively implementing alternate sourcing strategies, while also raising prices, and we believe that margins should recover over the coming quarters as inflationary pressures ease. I am extremely proud of how the company has responded to these challenges and proven its resilience and ability to execute in this environment. Heading into 2022, I believe we are well positioned within the markets we serve, and I look forward to another growth year for the company.”
Fourth Quarter 2021 Financial Highlights:
• Record net sales of $213.1 million, increased $32.4 million, or 17.9%, compared to the prior year quarter with quarterly sales growth in all three segments; Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products.
• Record fourth quarter adjusted EBITDA was $45.6 million, an increase of $2.1 million, or 4.7%, from the prior year.
• GAAP net earnings were $24.9 million, an increase of $2.8 million, or 12.6% from the prior year. These net earnings resulted in GAAP earnings per share of $0.76.
• Adjusted net earnings of $27.8 million increased $1.0 million or 3.5% from the prior year, resulting in adjusted earnings per share(a) of $0.85.
• The effective tax rate of 24.7% was 375 basis points higher than the prior year tax rate of 21.0%.
• Cash flows from operations were $44.5 million for the fourth quarter 2021, with quarterly free cash flow of $30.5 million.
Full Year 2021 Financial Highlights:
• Record full year net sales of $799.0 million, increased $95.4 million, or 13.6%, compared to the prior year’s full year net sales with record sales achieved in all three segments; Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products.
• Record adjusted EBITDA was $189.8 million, an increase of $15.6 million, or 8.9%, from the prior year.
• Record GAAP net earnings were $96.1 million, an increase of $11.5 million, or 13.6% from the prior year. These net earnings resulted in record GAAP earnings per share of $2.94.
• Record adjusted net earnings of $116.6 million increased $8.8 million or 8.2% from the prior year, resulting in adjusted earnings per share of $3.57.
• The effective tax rate of 23.3% was 278 basis points higher than the prior year tax rate of 20.5%.
• Cash flows from operations were $160.5 million for 2021, an increase of $10.0 million from prior year, with full year free cash flow of $124.4 million for 2021 compared to $117.7 million in 2020.
Quarterly Conference Call
A conference call will be held on Friday, February 18th at 11:00 AM Eastern Time (ET) to review fourth quarter results. Ted Harris, Chairman of the Board, CEO and President and Martin Bengtsson, CFO will host the call. We invite you to listen to the conference by calling toll-free 1-877-407-8289 (local dial-in 1-201-689-8341), five minutes prior to the scheduled start time of the conference call. The conference call will be available for replay two hours after the conclusion of the call through end of day Friday, March 4, 2022. To access the replay of the conference call, dial 1-877-660-6853 (local dial-in 1-201-612-7415), and use conference ID #13726833.
