Balchem Corporation (NASDAQ: BCPC) reported today fourth quarter net sales of $232.5 million for 2022, compared to net sales of $213.1 million for the fourth quarter 2021. Fourth quarter net earnings were $21.4 million for 2022, compared to net earnings of $24.9 million for the fourth quarter 2021. Balchem Corporation also reported for the full year 2022 net sales of $942.4 million, compared to $799.0 million for 2021. Full year 2022 net earnings were $105.4 million, compared to net earnings of $96.1 million for 2021.
Ted Harris, Chairman, CEO, and President of Balchem said, “The fourth quarter capped off another strong year for Balchem. For the full year, we achieved record sales of $942 million dollars, growing almost 18 percent year over year, with record sales in all three of our business segments.”
Mr. Harris added, “In 2022, we continued to deliver strong results in a challenging macro-economic environment, supported by our strong positions within the markets we serve and our attractive product offerings. I am extremely proud of how the company responded to the unprecedented market environment over the last year. As I look forward to 2023, I believe we are well positioned to drive continued growth and progress on our strategic growth initiatives while managing through the new challenges we will undoubtedly face within this dynamic global market environment.”
Fourth Quarter 2022 Financial Highlights:
- Net sales of $232.5 million, an increase of $19.4 million, or 9.1%, compared to the prior year quarter with quarterly sales growth in both the Human Nutrition & Health and Specialty Products segments.
- Fourth quarter adjusted EBITDA was $52.3 million, an increase of $6.6 million, or 14.6%, from the prior year.
- GAAP net earnings were $21.4 million, a decrease of $3.5 million, or 14.2% from the prior year. These net earnings resulted in GAAP earnings per share of $0.66.
- Adjusted net earnings of $30.3 million, an increase of $2.5 million or 9.1% from the prior year, resulting in adjusted earnings per share of $0.94.
- The effective tax rate of 17.0% was 778 basis points lower than the prior year tax rate of 24.7%.
- Cash flows from operations were $41.7 million for the fourth quarter 2022, with quarterly free cash flow of $27.5 million.
Full Year 2022 Financial Highlights:
- Record full year net sales of $942.4 million, an increase of $143.3 million, or 17.9%, compared to the prior year’s full year net sales with record sales achieved in all three segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products.
- Record adjusted EBITDA was $216.1 million, an increase of $26.2 million, or 13.8%, from the prior year.
- Record GAAP net earnings were $105.4 million, an increase of $9.3 million, or 9.6% from the prior year. These net earnings resulted in record GAAP earnings per share of $3.25.
- Record adjusted net earnings of $130.5 million, an increase of $13.9 million or 11.9% from the prior year, resulting in record adjusted earnings per shareof $4.03.
- The effective tax rate of 21.2% was 204 basis points lower than the prior year tax rate of 23.3%.
- Cash flows from operations were $138.5 million for 2022, with full year free cash flow of $89.4 million. Net debt was $374.0 million as of December 31, 2022, with an overall leverage ratio on a net debt basis of 1.7.
Quarterly Conference Call
A quarterly conference call will be held on Friday, February 24, 2023, at 11:00 AM Eastern Time (ET) to review fourth quarter 2022 results. Ted Harris, Chairman, President, and CEO 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 10, 2023. To access the replay of the conference call, dial 1-877-660-6853 (local dial-in 1-201-612-7415), and use conference ID #13736459.
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