Financials

Balchem Corporation (NASDAQ: BCPC) today reported for the third quarter 2018 record third quarter net earnings of $19.2 million, compared to net earnings of $16.0 million for the third quarter 2017. Record third quarter adjusted net earnings(a) were $23.7 million, compared to $20.4 million in the prior year quarter. Record third quarter adjusted EBITDA(a) was $38.4 million, compared to $35.7 million in the prior year quarter.  

Third Quarter 2018 Financial Highlights:

  • Quarterly net sales of $155.0 million in the third quarter 2018, an increase of $4.3 million, or 2.9%, compared to the prior year quarter.
  • Year over year sales growth in three of our four segments, with record quarterly sales for our Human Nutrition & Health segment and record third quarter sales for our Specialty Products segment.
  • Record third quarter earnings from operations of $25.5 million, an increase of $2.4 million, or 10.5%, from the prior year.
  • Record third quarter net earnings were $19.2 million, an increase of $3.2 million, or 19.8%, from the prior year, resulting in earnings per share of $0.59.
  • Record third quarter adjusted EBITDA of $38.4 million increased $2.7 million, or 7.4%, from the prior year.
  • Record third quarter adjusted net earnings of $23.7 million increased $3.3 million or 16.2% from the prior year, resulting in adjusted earnings per share(a) of $0.73
  • Third quarter cash flows from operations were $32.5 million for 2018 with record third quarter free cash flow(a) of $26.9 million.

Recent Highlights:

  • On August 29, 2018 the Company acquired 100% of the outstanding common shares of Bioscreen Technologies, S.r.l., a privately held manufacturer of encapsulated and fermented feed nutrition ingredients, headquartered in Bertinoro, Italy. Bioscreen manufactures high-performance encapsulates and fermented products that deliver value-added solutions to an international animal nutrition and health customer base.
  • The Company reduced its revolving loan by $32.8 million in the third quarter of 2018, reducing net debt to $135.3 million as of September 30, 2018.

(a)See “Non-GAAP Financial Information” 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),
   2018  2017
 Net sales $155,043 $150,716
 Gross margin 48,002 46,181
 Operating expenses 22,537 23,126
 Earnings from operations 25,465 23,055
 Other expense 1,936 2,358
 Earnings before income tax expense 23,529 20,697
 Income tax expense 4,315 4,654
 Net earnings $19,214 $16,043
 Diluted net earnings per common share $0.59 $0.50
 Adjusted EBITDA(a) $38,380 $35,720
 Adjusted net earnings(a) $23,653 $20,360
 Adjusted net earnings per common share(a) $0.73 $0.63


Consolidated Statement of Earnings 
(In thousands, except per share data)  
For the Nine Months Ended September 30 (Unaudited),
   2018  2017
 Net sales $480,140 $435,526
 Gross margin 152,927 137,371
 Operating expenses 72,431 66,782
 Earnings from operations 80,496 70,589
 Other expense 6,729 6,623
 Earnings before income tax expense 73,767 63,966
 Income tax expense 15,528 15,870
 Net earnings $58,239 $48,096
 Diluted net earnings per common share $1.79 $1.49
 Adjusted EBITDA(a) $120,338 $107,841
 Adjusted net earnings(a) $72,601 $59,800
 Adjusted net earnings per common share(a) $2.24 $1.86


 

Selected Annual Financial Data* 

  (in thousands, except per share data)
Year ended December 31, 2017  2016  2015 2014  2013
Statement of Operations Data     
Net sales  $594,790 $553,204  $552,492  $541,383 $337,173
Earnings before income tax expense 88,488 82,934 87,063 77,052 65,818
Income tax expense (1,583) 26,962 27,341 24,226 20,944
Net earnings 90,071 55,972 59,722 52,826 44,874
Diluted net earnings per common share $2.79 $1.75  $1.89  $1.69  $1.45
Adjusted EBITDA(a) $147,833 $149,263  $140,470  $121,835  -
Adjusted net earnings(a) $81,689 $80,363  $79,513 $68,856 -
Adjusted net earnings per common share(a) $2.53 $2.52  $2.51 $2.21 -

 

 December 31,  2017 2016 
2015 
2014 
2013
Balance Sheet Data     
Total assets $963,636 $948,626 $879,686 $861,531 $376,682
Long-term debt 183,964 226,490 260,963 297,500 -
Other long-term obligations 5,847 6,896 6,683 5,950 3,877
Total stockholder's equity 616,881 521,033 463,705 391,898 331,358
Dividends per share $0.42 $0.38  $0.34 $0.30  $0.26