Financials

Balchem Corporation (NASDAQ: BCPC) today reported for the first quarter 2018 record first quarter net earnings of $19.3 million, compared to net earnings of $15.5 million for the first quarter 2017. Record adjusted net earnings(a) were $24.4 million, compared to $18.9 million in the prior year quarter. Record adjusted EBITDA(a) was $40.9 million, compared to $35.8 million in the prior year quarter.   

First Quarter 2018 Financial Highlights:

  • Record first quarter net sales of $161.4 million in 2018, an increase of $23.7 million, or 17.2%, compared to the first quarter of 2017.
  • Year over year sales growth in three of our four segments, with record first quarter sales for our Human Nutrition & Health and Animal Nutrition & Health segments, resulting in earnings from operations growth in three of the four segments.
  • Record first quarter net earnings were $19.3 million, an increase of $3.8 million, or 24.7%, from the prior year, resulting in earnings per share of $0.60.
  • Record quarterly adjusted net earnings of $24.4 million increased $5.5 million or 29.1% from the prior year, resulting in adjusted earnings per share(a) of $0.76.
  • Record quarterly adjusted EBITDA of $40.9 million increased $5.1 million or 14.3% from the prior year.
  • First quarter cash flows from operations were $25.5 million for 2018 compared to $22.8 million for 2017. Free cash flow(a) for the first quarter 2018 was $21.7 million compared to $19.9 million for the first quarter 2017, an increase of $1.9 million. Scheduled principal payments made of $8.8 million on long-term debt, with our revolver continuing to be fully available.

Recent Highlights:

  • Expanding availability of choline for human nutrition through large retail outlets is an important development to accompany the growing awareness of this essential nutrient. Choline tablets, using Balchem’s VitaCholine® branded product, are now available for sale across many Walmart and Target stores in the United States.
  • Announced in April the decision to close one of the acquired IFP manufacturing sites with the intent to transfer the production capabilities to other Balchem locations. This transition will improve the efficiency of our network, lower overall costs and further improve the profitability of the Human Nutrition and Health Segment. Once finalized, we believe the integration activities associated with the IFP acquisition will largely be complete.

(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 March 31 (Unaudited),
   2018  2017
 Net sales $161,410 $137,728
 Gross margin 51,459 44,429
 Operating expenses 24,047 21,726
 Earnings from operations 27,412 22,703
 Other expense 2,235 1,993
 Earnings before income tax expense 25,177 20,710
 Income tax expense 5,831 5,192
 Net earnings $19,346 $15,518
 Diluted net earnings per common share $0.60 $0.48
 Adjusted EBITDA(a) $40,912 $35,807
 Adjusted net earnings(a) $24,418 $18,914
 Adjusted net earnings per common share(a) $0.76 $0.59


 

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