Balchem Corporation Reports Third Quarter 2022 Financial Results
Balchem Corporation (NASDAQ: BCPC) reported today third quarter net earnings of $25.2 million for 2022, compared to net earnings of $25.0 million for the third quarter 2021, adjusted net earnings of $32.4 million, compared to $30.0 million in the prior year quarter, and adjusted EBITDA of $53.8 million, compared to $48.3 million in the prior year quarter.
Ted Harris, Chairman, President and CEO of Balchem said, “The third quarter of 2022 was another solid growth quarter for Balchem as we delivered both sales and earnings growth year over year in an increasingly challenging macro-economic environment. Additionally, we were very pleased to have further accelerated our strategic initiatives, highlighted by the acquisition of Bergstrom. This acquisition adds to our science based health and nutrition product offering for our Human Nutrition and Health segment and our Animal Nutrition and Health segment, and is synergistic with our existing organic growth platforms.”
Mr. Harris added, “I would like to take this opportunity to thank all of our employees for their contributions to our strong performance and for their continued dedication and focus on driving results in a unique and challenging market environment, while also welcoming once again the Bergstrom team to Balchem.”
Third Quarter 2022 Financial Highlights:
- Net sales were $244.3 million, an increase of $46.4 million, or 23.4%, compared to the prior year quarter, with sales growth in all three segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products.
- Adjusted EBITDA was $53.8 million, an increase of $5.4 million, or 11.2%, from the prior year.
- GAAP net earnings were $25.2 million, an increase of $0.2 million, or 0.9% from the prior year. These net earnings resulted in GAAP earnings per share of $0.78.
- Adjusted net earnings were $32.4 million, an increase of $2.4 million or 8.0% from the prior year. These adjusted net earnings resulted in adjusted earnings per share of $1.00.
- The effective tax rate of 18.8% was 327 basis points lower than the prior year tax rate of 22.0%.
- Cash flows from operations were $41.6 million for the third quarter 2022, with quarterly free cash flow of $26.8 million.
Quarterly Conference Call
A quarterly conference call will be held on Friday, November 4, 2022, at 11:00 AM Eastern Time (ET) to review third 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, November 18, 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 #13733850.