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NEW HAMPTON, N.Y., Nov. 04, 2016 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ:BCPC) today reported for the third quarter net earnings of $14.0 million, compared to net earnings of $14.0 million for the third quarter 2015. Adjusted EBITDA(a) was $36.6 million, compared to adjusted EBITDA of $35.7 million for the third quarter 2015. For the nine months ended September 30, 2016, net earnings were $40.0 million with record adjusted EBITDA of $111.6 million, compared to net earnings and adjusted EBITDA of $44.1 million and $106.7 million, respectively, in the prior year. Adjusted EBITDA margin was strong, increasing in the third quarter 2016 to 26.4% from 25.5% in the prior year quarter, and this was a significant contributor to these results in a challenging marketplace. Ted Harris, CEO and President of Balchem said, “While we continue to face top line challenges, particularly in the oil and gas business within Industrial Products, our team was able to deliver both solid earnings and record third quarter free cash flow for the quarter. Our strong cash flow continues to provide us with the flexibility to further deleverage our balance sheet while maintaining the ability to invest strategically in our business.” (a)See “Non-GAAP Financial Information” for a reconciliation of GAAP and non-GAAP financial measures. (b)Beginning in fiscal year 2016, the Company has renamed its SensoryEffects segment Human Nutrition & Health, as this segment now includes encapsulates, choline, mineral amino acid chelates, specialized mineral salts, mineral complexes, and customized food and beverage solutions (the aforementioned three mineral product lines are contributions from the Albion International, Inc. acquisition). The Company believes that this segment name change provides more clarity as to the segment’s core businesses and strategies. (c)Beginning in fiscal year 2016, the Specialty Products segment now also includes chelated minerals for the micronutrient agricultural market (this plant nutrition product line is a contribution from the Albion International, Inc. acquisition). Segment Financial Results for the Third Quarter of 2016: The Human Nutrition & Health(b) (HNH) segment generated record quarterly sales of $74.9 million, an increase of $1.9 million or 2.7% compared to the prior year quarter. Net sales increased due to the acquisition of the Albion business, partially offset by lower sales volumes, particularly in our Powder Systems business, and an unfavorable mix. Sequentially from the second quarter 2016, without the impact of Albion, volumes in HNH increased 1.8%, driven primarily by a sequential improvement in Powder Systems. Third quarter earnings from operations for this segment were $10.5 million, versus $11.6 million in the prior year comparable quarter, a decrease of $1.1 million or 9.9%. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets of $6.0 million, adjusted earnings from operations(a) for this segment were $16.5 million compared to $17.2 million in the prior year quarter, a decrease of $0.8 million or 4.4%. Earnings from operations for the quarter were negatively impacted primarily by the aforementioned lower sales related to Powder Systems. The Animal Nutrition & Health (ANH) segment sales of $40.9 million increased 2.5% or $1.0 million on a 6.6% increase in volumes compared to the prior year quarter. The increased sales were primarily due to increased volumes related to both ruminant species and monogastric species products. This was partially offset by lower average selling prices related to certain lower raw material costs and mix. Earnings from operations for the ANH segment increased 20.6% to $6.8 million as compared to $5.6 million in the prior year comparable quarter, an impact of the aforementioned higher sales and cost decreases of key raw materials. The Specialty Products(c) segment generated quarterly sales of $16.5 million, a $2.7 million or 19.2% increase from the comparable prior year quarter, due to the Albion plant nutrition contribution. Quarterly earnings from operations for this segment were $5.2 million, versus $6.0 million in the prior year comparable quarter, a decrease of $0.8 million or 13.2%. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets of $0.8 million and inventory valuation adjustments of $0.3 million relating to acquisition accounting, adjusted earnings from operations for this segment were $6.3 million compared to $6.2 million in the prior year quarter, an increase of $0.1 million or 2.4%. The Industrial Products segment sales declined $7.2 million or 53.9% from the prior year comparable quarter, primarily due to significantly reduced volumes sold of choline and choline derivatives for oil and natural gas fracking in North America. Earnings from operations for the Industrial Products segment were $0.5 million, a reduction of $0.6 million compared with the prior year comparable quarter which was primarily a reflection of the aforementioned reduced volume and lower average selling prices. Earnings from operations for the Industrial Products segment increased on a sequential basis from the second quarter 2016 by $0.3 million. Consolidated gross margin for the quarter ended September 30, 2016 increased 3.4% to $44.7 million, as compared to $43.2 million for the prior year comparable period. Gross margin as a percentage of sales increased to 32.2% as compared to 30.8% in the prior year comparative period. Adjusted gross margin(a) for the quarter ended September 30, 2016 increased 5.2% to $45.6 million, as compared to $43.4 million for the prior year comparable period. For the three months ended September 30, 2016, adjusted gross margin as a percentage of sales was 32.9% compared to 30.9% in the prior year comparative period. The improvement was primarily due to a favorable product mix and lower raw material costs. Operating (Selling, Research & Development, General & Administrative) expenses of $21.7 million for the third quarter were higher than the prior year comparable quarter principally due to the inclusion of Albion operating expenses and amortization expense related to the aforementioned acquisition, partially offset by a prior year one-time equity compensation charge of $1.5 million. Excluding transaction and integration costs of $0.1 million and non-cash operating expense associated with amortization of intangible assets of $6.9 million, operating expenses were $14.8 million, or 10.7% of sales. Interest expense was $1.8 million in the third quarter of 2016, all of which related to the debt financing of the SensoryEffects and Albion acquisitions. Our effective tax rates for the three months ended September 30, 2016 and 2015 were 32.5% and 34.0%, respectively. The decrease in the effective tax rate is primarily attributable to certain tax credits and deductions. The Company continues to build on its solid financial structure. Third quarter free cash flow was $19.8 million for the quarter ended September 30, 2016, and diligent working capital controls continue to contribute strongly to the business performance. The $99.0 million of net working capital on September 30, 2016 included a cash balance of $32.5 million, which reflects scheduled and accelerated principal payments on long-term debt and the revolving loan of $25.8 million and capital expenditures of $4.1 million in the third quarter of 2016. The Company continues to invest in projects across all facilities to improve capabilities and operating efficiencies. Ted Harris said, “Strong margins, the accretive benefits of the Albion acquisition, and record third quarter free cash flow, while facing a challenging business climate, prove the value of our business model.”      Mr. Harris went on to add, “We are pleased with the recently announced strategic alliance with Perdue AgriBusiness, as the combined expertise of both companies is leveraged to advance the science of precision feeding principles while bringing to market new products for dairy cattle. This alliance, along with our previously announced collaboration with BASF, signals our continued intention to provide science-based innovative products to the animal nutrition and health markets.” Quarterly Conference Call A quarterly conference call will be held on Friday, November 4, 2016, at 11:00 AM Eastern Time (ET) to review Third Quarter 2016 results. Ted Harris, President & Chief Executive Officer, and Bill Backus, Chief Financial Officer, 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, 2016. To access the replay of the conference call, dial 1-877-660-6853 (local dial-in 1-201-612-7415), and use conference ID #13649128. Segment Information Balchem Corporation reports four business segments: Human Nutrition & Health (formerly SensoryEffects); Animal Nutrition & Health; Specialty Products; and Industrial Products. The Human Nutrition & Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market. The Industrial Products segment manufactures and supplies certain derivative products into industrial applications. Forward-Looking Statements This release contains forward-looking statements, which reflect Balchem’s expectation or belief concerning future events that involve risks and uncertainties. Balchem can give no assurance that the expectations reflected in forward-looking statements will prove correct and various factors could cause results to differ materially from Balchem’s expectations, including risks and factors identified in Balchem’s annual report on Form 10-K for the year ended December 31, 2015. Forward-looking statements are qualified in their entirety by the above cautionary statement. Balchem assumes no duty to update its outlook or other forward-looking statements as of any future date. In addition to disclosing financial results in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains non-GAAP financial measures that we believe are helpful in understanding and comparing our past financial performance and our future results. The non-GAAP financial measures disclosed by the company exclude certain business combination accounting adjustments and certain other items related to acquisitions, and certain unallocated equity compensation. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Management believes that these non-GAAP measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. The non-GAAP financial measures in this press release include adjusted gross margin, adjusted earnings from operations, adjusted net earnings and the related adjusted per diluted share amounts, EBITDA, and adjusted EBITDA. EBITDA is defined as earnings before interest, other expense/income, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before interest, other expense/income, taxes, depreciation, amortization, stock-based compensation, acquisition-related expenses and legal settlements, and the fair valuation of acquired inventory.  Free cash flow is defined as net cash provided by operating activities less capital expenditures. Set forth below are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. 1 Inventory valuation adjustment: Business combination accounting principles require us to measure acquired inventory at fair value. The fair value of inventory reflects the acquired company’s cost of manufacturing plus a portion of the expected profit margin. The non-GAAP adjustment to our cost of sales excludes the expected profit margin component that is recorded under business combination accounting principles. We believe the adjustment is useful to investors as an additional means to reflect cost of sales and gross margin trends of our business. 2 Amortization of intangible assets: Amortization of intangible assets consists of amortization of customer relationships, trademarks and trade names, developed technology, regulatory registration costs, patents and trade secrets, and other intangibles acquired primarily in connection with business combinations. We record expense relating to the amortization of these intangibles in our GAAP financial statements. Amortization expenses for our intangible assets are inconsistent in amount and are significantly impacted by the timing and valuation of an acquisition. Consequently, our non-GAAP adjustments exclude these expenses to facilitate an evaluation of our current operating performance and comparisons to our past operating performance. 3 Transaction costs, integration costs and legal settlement: Transaction and integration costs related to acquisitions are expensed in our GAAP financial statements. Legal settlements related to acquisitions are included as expense offset in our GAAP financial statements. Management excludes these items for the purposes of calculating Adjusted EBITDA and other non-GAAP financial measures. We believe that excluding these items from our non-GAAP financial measures is useful to investors because these are items associated with each transaction, and are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult. 4 Unallocated equity compensation: Unallocated equity compensation is one-time equity compensation expense related to the retirement from the Company of the former CEO and current Chairman of the Board of Directors, Dino A. Rossi.  As this is a one-time expense, our non-GAAP adjustments exclude this expense to facilitate an evaluation of our current operating performance and comparisons to our past operating performance. 5 Income tax adjustment: For purposes of calculating adjusted net earnings and adjusted diluted earnings per share, we adjust the provision for (benefit from) income taxes to tax effect the non-GAAP adjustments described above as they have a significant impact on our income tax (benefit) provision. The following table sets forth a reconciliation of Net Income calculated using amounts determined in accordance with GAAP to EBITDA and to Adjusted EBITDA for the three and nine months ended September 30, 2016 and 2015. The following table sets forth a reconciliation of net cash provided by operating activities to free cash flow for the three and nine months ended September 30, 2016 and 2015.


News Article | November 24, 2016
Site: www.newsmaker.com.au

According to Stratistics MRC, the Global Microencapsulation market is estimated at $5.6 billion in 2015 and is expected to reach $9.20 billion by 2022 growing at a CAGR of 10.43% from 2015 to 2022. Rising prevalence of encapsulation methods in medical products, agriculture and detergent market is projected to drive the market growth in the couple of years. Increasing requirements for phase change materials (PCM) in HVAC and construction applications for providing improved efficiency is expected to have a positive impact on the market in the near future. In 2013, Pharmaceuticals was the largest in application segment which holds more than 65% of market revenue share. Rising importance for the market in controlled release of energetic products and focused drug delivery is expected to have a positive impact on the market. Pharmaceuticals development in emerging economies of India, China and Brazil is projected to have a prospective growth in the market over the coming years. Entry of nanotechnology and macrotechnology in pharmaceutical industry are the key challenges for the market growth in the next upcoming years. Some of the key players in the market are Encapsys, GAT Microencapsulation GmbH, Reed Pacific, Ronald T Dodge Co., Balchem Corporation, Microtek Laboratories, Nestle, Aveka Inc., Procter & Gamble Co. (P&G), Lipo Technologies, BASF, Capsulae, 3M Company, Evonik Industries AG, Dow Corning Corp., Taste Tech Ltd. and Bayer AG. Regions Covered: • North America o US o Canada o Mexico • Europe o Germany o France o Italy o UK  o Spain   o Rest of Europe     • Asia Pacific o Japan        o China        o India        o Australia        o New Zealand       o Rest of Asia Pacific     • Rest of the World o Middle East o Brazil o Argentina o South Africa o Egypt What our report offers: - Market share assessments for the regional and country level segments - Market share analysis of the top industry players - Strategic recommendations for the new entrants - Market forecasts for a minimum of 7 years of all the mentioned segments, sub segments and the regional markets - Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations) - Strategic recommendations in key business segments based on the market estimations - Competitive landscaping mapping the key common trends - Company profiling with detailed strategies, financials, and recent developments - Supply chain trends mapping the latest technological advancements


News Article | December 2, 2016
Site: www.newsmaker.com.au

This report studies sales (consumption) of United States Food Dietary Supplement market, focuses on the top players, with sales, price, revenue and market share for each player, covering Split by product types, with sales, revenue, price, market share and growth rate of each type, can be divided into Type I Type II Type III Split by applications, this report focuses on sales, market share and growth rate of Food Dietary Supplement in each application, can be divided into View Full Report With Complete TOC, List Of Figure and Table: http://globalqyresearch.com/united-states-food-dietary-supplement-market-report-2016 United States Food Dietary Supplement Market Report 2016 1 Food Dietary Supplement Overview 1.1 Product Overview and Scope of Food Dietary Supplement 1.2 Classification of Food Dietary Supplement 1.2.1 Type I 1.2.2 Type II 1.2.3 Type III 1.3 Application of Food Dietary Supplement 1.3.1 Application 1 1.3.2 Application 2 1.3.3 Application 3 1.4 United States Market Size Sales (Value) and Revenue (Volume) of Food Dietary Supplement (2011-2021) 1.4.1 United States Food Dietary Supplement Sales and Growth Rate (2011-2021) 1.4.2 United States Food Dietary Supplement Revenue and Growth Rate (2011-2021) 5 United States Food Dietary Supplement Manufacturers Profiles/Analysis 5.1 Maat Nutritionals 5.1.1 Company Basic Information, Manufacturing Base and Competitors 5.1.2 Food Dietary Supplement Product Type, Application and Specification 5.1.2.1 Type I 5.1.2.2 Type II 5.1.3 Maat Nutritionals Food Dietary Supplement Sales, Revenue, Price and Gross Margin (2011-2016) 5.1.4 Main Business/Business Overview 5.2 Natures Product Inc. 5.2.2 Food Dietary Supplement Product Type, Application and Specification 5.2.2.1 Type I 5.2.2.2 Type II 5.2.3 Natures Product Inc. Food Dietary Supplement Sales, Revenue, Price and Gross Margin (2011-2016) 5.2.4 Main Business/Business Overview 5.3 Multivitamin Direct,Inc. 5.3.2 Food Dietary Supplement Product Type, Application and Specification 5.3.2.1 Type I 5.3.2.2 Type II 5.3.3 Multivitamin Direct,Inc. Food Dietary Supplement Sales, Revenue, Price and Gross Margin (2011-2016) 5.3.4 Main Business/Business Overview 5.4 Bactolac Pharmaceutical 5.4.2 Food Dietary Supplement Product Type, Application and Specification 5.4.2.1 Type I 5.4.2.2 Type II 5.4.3 Bactolac Pharmaceutical Food Dietary Supplement Sales, Revenue, Price and Gross Margin (2011-2016) 5.4.4 Main Business/Business Overview 5.5 Superior Supplement Manufacturing 5.5.2 Food Dietary Supplement Product Type, Application and Specification 5.5.2.1 Type I 5.5.2.2 Type II 5.5.3 Superior Supplement Manufacturing Food Dietary Supplement Sales, Revenue, Price and Gross Margin (2011-2016) 5.5.4 Main Business/Business Overview 5.6 Asiamerica Ingredients, Inc. 5.6.2 Food Dietary Supplement Product Type, Application and Specification 5.6.2.1 Type I 5.6.2.2 Type II 5.6.3 Asiamerica Ingredients, Inc. Food Dietary Supplement Sales, Revenue, Price and Gross Margin (2011-2016) 5.6.4 Main Business/Business Overview 5.7 Balchem Corporation 5.7.2 Food Dietary Supplement Product Type, Application and Specification 5.7.2.1 Type I 5.7.2.2 Type II 5.7.3 Balchem Corporation Food Dietary Supplement Sales, Revenue, Price and Gross Margin (2011-2016) 5.7.4 Main Business/Business Overview 5.8 Barrington Nutritionals 5.8.2 Food Dietary Supplement Product Type, Application and Specification 5.8.2.1 Type I 5.8.2.2 Type II 5.8.3 Barrington Nutritionals Food Dietary Supplement Sales, Revenue, Price and Gross Margin (2011-2016) 5.8.4 Main Business/Business Overview 5.9 Lallemand Bio-Ingredients 5.9.2 Food Dietary Supplement Product Type, Application and Specification 5.9.2.1 Type I 5.9.2.2 Type II 5.9.3 Lallemand Bio-Ingredients Food Dietary Supplement Sales, Revenue, Price and Gross Margin (2011-2016) 5.9.4 Main Business/Business Overview Global QYResearch is the one spot destination for all your research needs. Global QYResearch holds the repository of quality research reports from numerous publishers across the globe. Our inventory of research reports caters to various industry verticals including Healthcare, Information and Communication Technology (ICT), Technology and Media, Chemicals, Materials, Energy, Heavy Industry, etc. With the complete information about the publishers and the industries they cater to for developing market research reports, we help our clients in making purchase decision by understanding their requirements and suggesting best possible collection matching their needs.


News Article | November 24, 2016
Site: www.newsmaker.com.au

According to StratisticsMRC, the Global Food encapsulation market is estimated at $29.43 billion in 2015 and is expected to reach $48.63 billion by 2022 growing at a CAGR of 7.4% from 2015 to 2022. Increasing demand for convenience food and rising product demand by improvising taste, flavour and colour are the key drivers fueling the market growth. Lack of technological developments in food encapsulation is hampering the market. Government initiatives and developing technology are the opportunities to the market growth. Physical Process segment is anticipated to have huge share in technology segment. Lipids and Emulsifiers shell materials holds the largest share in shell material segment. North America region holds the largest share in the food encapsulation market due to high demand for functional food and Asia Pacific region is expected to grow at a highest CAGR due to huge investments by companies in packaged food industry and developing nations like India and China are the growing at a faster phase in Asia Pacific region. Some of the key players in the market include International Flavors & Fragrances Inc., Taste Tech Ltd., Frieslandcampina Kievit, Lycored Group, Symrise AG, Ingredion Incorporated, Sensient Technologies Corporation, Cargill, Incorporated, Royal DSM, Koninklijke DSMN.V.(ADR), Appvion, Inc., BASFSES/ADR, Kerry Group, AVEKA Group, Balchem Corporation, Givaudan SAADR and Firmenich International SA. Technology Covered: • Chemical Process o  Supercritical Fluid o Liposomes o Coacervation o Freeze Drying o Other Chemical Process • Physical Process o Fluid-bed Coating o Atomization § Spinning Disk § Spray Drying § Spray Chilling o Centrifugal Extrusion o Emulsification o Other Physical Process • Physico-Chemical Shell Material Covered: • Lipids • Polysaccharides • Emulsifiers • Proteins • Other Shell Materials Core Phase Covered: • Colors • Vitamins o Water-Soluble Vitamins § Vitamin C § Vitamin B Complex o Phosphatase o Lactase o Minerals o Fat-Soluble Vitamins § Vitamin D § Vitamin K § Vitamin A § Vitamin E o Enzymes o Lipase • Preservatives o Prebiotics o Probiotics • Flavors & Essences o Sweeteners • Organic Acids o Fumaric Acid o Citric Acid o Sorbic Acid o Lactic Acid • Other Core Phases Applications Covered: • Bakery Products • Frozen Products • Dietary Supplements • Confectionery • Dairy Product • Functional Food • Animal Nutrition • Beverages Regions Covered: • North America o US o Canada o Mexico • Europe o Germany o France o Italy o UK  o Spain   o Rest of Europe     • Asia Pacific o Japan        o China        o India        o Australia        o New Zealand       o Rest of Asia Pacific     • Rest of the World o Middle East o Brazil o Argentina o South Africa o Egypt What our report offers: - Market share assessments for the regional and country level segments - Market share analysis of the top industry players - Strategic recommendations for the new entrants - Market forecasts for a minimum of 7 years of all the mentioned segments, sub segments and the regional markets - Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations) - Strategic recommendations in key business segments based on the market estimations - Competitive landscaping mapping the key common trends - Company profiling with detailed strategies, financials, and recent developments - Supply chain trends mapping the latest technological advancements


Patent
Balchem Corporation | Date: 2016-06-02

The present disclosure relates to choline salt compositions, and methods of preparing the same, containing choline salts, sugar alcohols, alginates, phosphate salts, or combinations thereof. The compositions are free flowing and compatible in various manufacturing processes.


The present disclosure relates to food compositions and methods of preparing the same containing an encapsulated calcium source and a biocompatible polymer. In particular, the present disclosure relates to an improved pasta dough and a method of preparing the same containing an encapsulated calcium salt and an alginate. The encapsulated calcium source and biocompatible polymer can be used for the partial or complete replacement of whole eggs or egg whites in pasta.


NEW HAMPTON, N.Y., Feb. 28, 2017 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ:BCPC) today reported for the fourth quarter 2016 net earnings of $15.9 million, compared to net earnings of $15.7 million for the fourth quarter 2015. Adjusted EBITDA(a) was $37.7 million, compared to adjusted EBITDA of $33.7 million for the prior year quarter. For the full year ended December 31, 2016, net earnings were $56.0 million with record adjusted EBITDA of $149.3 million, compared to net earnings and adjusted EBITDA of $59.7 million and $140.5 million, respectively, in the prior year. Ted Harris, Chairman, CEO, and President of Balchem said, “We are very proud to report these fourth quarter results as well as another full year of sales and adjusted earnings growth.  While we faced certain headwinds in 2016 we are pleased with the strategic progress we have made as a company, highlighted by the acquisition of Albion International, Inc. which strengthened our health and nutrition portfolio, the earnings growth we delivered in three of our four business segments, and the record free cash flow we generated.” (a)See “Non-GAAP Financial Information” for a reconciliation of GAAP and non-GAAP financial measures. (b)Beginning in fiscal year 2016, the Company has renamed its SensoryEffects segment Human Nutrition & Health, as this segment now includes encapsulates, choline, mineral amino acid chelates, specialized mineral salts, mineral complexes, and customized food and beverage solutions (the aforementioned three mineral product lines are contributions from the Albion International, Inc. acquisition). The Company believes that this segment name change provides more clarity as to the segment’s core businesses and strategies. (c)Beginning in fiscal year 2016, the Specialty Products segment now also includes chelated minerals for the micronutrient agricultural market (this plant nutrition product line is a contribution from the Albion International, Inc. acquisition). Segment Financial Results for the Fourth Quarter of 2016: The Human Nutrition & Health(b) (HNH) segment generated record quarterly sales of $75.9 million, an increase of $5.5 million or 7.9% compared to the prior year quarter. Net sales increased due to the acquisition of the Albion business along with volume increases in certain market sectors, partially offset by an unfavorable mix and continued softness in Powder Systems. Sequentially from the third quarter 2016, without the impact of Albion, volumes in HNH increased 1.4%, driven primarily by a sequential improvement in Powder Systems, Inclusions, and Choline Nutrients. Fourth quarter earnings from operations for this segment were $10.3 million, versus $9.9 million in the prior year comparable quarter, an increase of $0.4 million or 4.0%. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets of $6.1 million, adjusted earnings from operations for this segment were $16.4 million compared to $15.5 million in the prior year quarter, an increase of $0.8 million or 5.4%. Earnings from operations for the quarter were driven by the inclusion of Albion and volume growth in certain market sectors, partially offset by the previously noted softness in the Powder Systems business. The Animal Nutrition & Health (ANH) segment sales of $42.5 million increased $1.1 million, or 2.6%, on a 4.8% increase in volumes compared to the prior year quarter. Sequentially from the third quarter 2016, sales increased $1.6 million, or 3.9%, on a 5.0% increase in volumes. The increased sales were primarily due to increased volumes related to both ruminant species and monogastric species products. This was partially offset by lower average selling prices for monogastric species products related to certain lower raw material costs, mix and increased competition. Earnings from operations for the ANH segment increased 29.0% to $8.1 million as compared to $6.2 million in the prior year comparable quarter, an impact of the aforementioned higher sales volumes, favorable mix and cost decreases of key raw materials. The Specialty Products(c) segment generated quarterly sales of $16.2 million, a $3.2 million or 24.3% increase from the comparable prior year quarter, primarily due to the Albion plant nutrition contribution. Quarterly earnings from operations for this segment were $5.3 million, versus $6.2 million in the prior year comparable quarter, a decrease of $0.8 million or 13.8%. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets of $0.8 million, adjusted earnings from operations for this segment were $6.1 million compared to $6.3 million in the prior year quarter, a decrease of $0.2 million or 3.2%. Earnings from operations for the quarter were impacted primarily by an unfavorable mix and certain higher raw material costs. Earnings from operations for the Specialty Products segment increased on a sequential basis from the third quarter 2016 by $0.1 million. The Industrial Products segment sales declined $1.7 million or 22.1% from the prior year comparable quarter, primarily due to significantly reduced volumes sold of choline and choline derivatives for oil and natural gas fracking in North America. Earnings from operations for the Industrial Products segment were $0.9 million, an increase of $0.7 million compared with the prior year comparable quarter, and were primarily a reflection of stronger gross margins due to a more favorable customer mix and improved cost structure. Earnings from operations for the Industrial Products segment increased on a sequential basis from the third quarter 2016 by $0.4 million. Consolidated gross margin for the quarter ended December 31, 2016 increased 17.5% to $46.9 million, as compared to $39.9 million for the prior year comparable period. Gross margin as a percentage of sales increased to 33.3% as compared to 30.1% in the prior year comparative period. Adjusted gross margin(a) for the quarter ended December 31, 2016 increased 18.6% to $47.6 million, as compared to $40.1 million for the prior year comparable period. For the fourth quarter 2016, adjusted gross margin as a percentage of sales was 33.8% compared to 30.2% in the prior year comparative period. The improvement was primarily due to a favorable product mix and lower raw material costs. Operating (Selling, Research & Development, General & Administrative) expenses of $22.3 million for the fourth quarter were higher than the prior year comparable quarter principally due to the inclusion of Albion operating expenses and amortization expense related to the aforementioned acquisition. Excluding non-cash operating expense associated with amortization of intangible assets of $6.9 million, operating expenses were $15.4 million, or 11.0% of sales. Interest expense was $1.7 million in the fourth quarter of 2016, all of which related to the debt financing of the SensoryEffects and Albion acquisitions. Our effective tax rates for the three months ended December 31, 2016 and 2015 were 30.2% and 24.1%, respectively. The increase in the effective tax rate is related to discreet events and the timing of certain tax credits. The Company continues to build on its solid financial structure. Fourth quarter free cash flow was $23.6 million for the quarter ended December 31, 2016, and diligent working capital controls continue to contribute strongly to the business performance. The $87.4 million of net working capital on December 31, 2016 included a cash balance of $38.6 million, which reflects scheduled and accelerated net principal payments on long-term debt and the revolving loan of $17.8 million and capital expenditures of $4.2 million in the fourth quarter of 2016. The Company continues to invest in projects across all facilities to improve capabilities and operating efficiencies. Ted Harris said, “Our strong fourth quarter and full year results once again highlight the strength and resilience of our business model in what has proved to be a challenging business environment.” Mr. Harris went on to add, “As we focus now on 2017, we will continue to drive strategic growth initiatives, particularly in Human Nutrition & Health and Animal Nutrition & Health, through both organic investments in new manufacturing capabilities and new product development, as well as by pursuing strategic acquisitions.” Quarterly Conference Call A quarterly conference call will be held on Tuesday, February 28, 2017, at 11:00 AM Eastern Time (ET) to review Fourth Quarter 2016 results. Ted Harris, President & Chief Executive Officer, and Bill Backus, Chief Financial Officer, 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 Tuesday, March 14, 2017. To access the replay of the conference call, dial 1-877-660-6853 (local dial-in 1-201-612-7415), and use conference ID #13655593. Segment Information Balchem Corporation reports four business segments: Human Nutrition & Health (formerly SensoryEffects); Animal Nutrition & Health; Specialty Products; and Industrial Products. The Human Nutrition & Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market. The Industrial Products segment manufactures and supplies certain derivative products into industrial applications. Forward-Looking Statements This release contains forward-looking statements, which reflect Balchem’s expectation or belief concerning future events that involve risks and uncertainties. Balchem can give no assurance that the expectations reflected in forward-looking statements will prove correct and various factors could cause results to differ materially from Balchem’s expectations, including risks and factors identified in Balchem’s annual report on Form 10-K for the year ended December 31, 2015. Forward-looking statements are qualified in their entirety by the above cautionary statement. Balchem assumes no duty to update its outlook or other forward-looking statements as of any future date. In addition to disclosing financial results in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains non-GAAP financial measures that we believe are helpful in understanding and comparing our past financial performance and our future results. The non-GAAP financial measures disclosed by the company exclude certain business combination accounting adjustments and certain other items related to acquisitions, and certain unallocated equity compensation. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Management believes that these non-GAAP measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. The non-GAAP financial measures in this press release include adjusted gross margin, adjusted earnings from operations, adjusted net earnings and the related adjusted per diluted share amounts, EBITDA, adjusted EBITDA and free cash flow. EBITDA is defined as earnings before interest, other expense/income, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before interest, other expense/income, taxes, depreciation, amortization, stock-based compensation, acquisition-related expenses and legal settlements, and the fair valuation of acquired inventory.  Free cash flow is defined as net cash provided by operating activities less capital expenditures. Set forth below are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. 1 Inventory valuation adjustment: Business combination accounting principles require us to measure acquired inventory at fair value. The fair value of inventory reflects the acquired company’s cost of manufacturing plus a portion of the expected profit margin. The non-GAAP adjustment to our cost of sales excludes the expected profit margin component that is recorded under business combination accounting principles. We believe the adjustment is useful to investors as an additional means to reflect cost of sales and gross margin trends of our business. 2 Amortization of intangible assets: Amortization of intangible assets consists of amortization of customer relationships, trademarks and trade names, developed technology, regulatory registration costs, patents and trade secrets, and other intangibles acquired primarily in connection with business combinations. We record expense relating to the amortization of these intangibles in our GAAP financial statements. Amortization expenses for our intangible assets are inconsistent in amount and are significantly impacted by the timing and valuation of an acquisition. Consequently, our non-GAAP adjustments exclude these expenses to facilitate an evaluation of our current operating performance and comparisons to our past operating performance. 3 Transaction costs, integration costs and legal settlement: Transaction and integration costs related to acquisitions are expensed in our GAAP financial statements. Legal settlements related to acquisitions are included as expense offset in our GAAP financial statements. Management excludes these items for the purposes of calculating Adjusted EBITDA and other non-GAAP financial measures. We believe that excluding these items from our non-GAAP financial measures is useful to investors because these are items associated with each transaction, and are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult. 4 Unallocated equity compensation: Unallocated equity compensation is one-time equity compensation expense related to the retirement from the Company of the former CEO and current Chairman of the Board of Directors, Dino A. Rossi.  As this is a one-time expense, our non-GAAP adjustments exclude this expense to facilitate an evaluation of our current operating performance and comparisons to our past operating performance. 5 Income tax adjustment: For purposes of calculating adjusted net earnings and adjusted diluted earnings per share, we adjust the provision for (benefit from) income taxes to tax effect the non-GAAP adjustments described above as they have a significant impact on our income tax (benefit) provision. The following table sets forth a reconciliation of Net Income calculated using amounts determined in accordance with GAAP to EBITDA and to Adjusted EBITDA for the three months and year ended December 31, 2016 and 2015. The following table sets forth a reconciliation of net cash provided by operating activities to free cash flow for the three months and year ended December 31, 2016 and 2015.


NEW HAMPTON, N.Y., Feb. 17, 2017 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ:BCPC) today announced that a conference call will be held on Tuesday, February 28, 2017 at 11:00 AM Eastern Time (ET) to review fourth quarter 2016 results. Ted Harris, Chairman of the Board, CEO and President, and Bill Backus, Chief Financial Officer, will host the call. Fourth quarter and full year results will be published prior to the market opening on Tuesday, February 28, 2017. The press release, and its accompanying financial exhibits, will also be available on the Company website, www.balchem.com, prior to the conference 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 Tuesday, March 14, 2017. To access the replay of the conference call, dial 1-877-660-6853 (local dial-in 1-201-612-7415), and use conference ID #13655593. About Balchem Corporation Balchem Corporation consists of four business segments: Human Nutrition and Health; Animal Nutrition and Health; Specialty Products; and Industrial Products. The Human Nutrition and Health segment provides customized food and beverage ingredient systems and proprietary microencapsulation solutions to a variety of applications in the human food, pharmaceutical and nutrition marketplaces.  The Animal Nutrition and Health segment manufactures and supplies products to numerous animal health markets.  Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and the Industrial Products segment, provides certain derivative products into industrial applications, predominately as a component for hydraulic fracturing of shale natural gas wells.


NEW HAMPTON, N.Y., Oct. 27, 2016 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ:BCPC) today announced that a conference call will be held on Friday, November 4, 2016, at 11:00 AM Eastern Time (ET) to review third quarter 2016 results. Ted Harris, President & Chief Executive Officer, and Bill Backus, Chief Financial Officer, will host the call. Third quarter results will be published prior to the market opening on Friday, November 4, 2016. The press release, and its accompanying financial exhibits, will also be available on the Company website, www.balchem.com, prior to the conference 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, 2016. To access the replay of the conference call, dial 1-877-660-6853 (local dial-in 1-201-612-7415), and use conference ID #13649128. About Balchem Corporation Balchem Corporation consists of four business segments: Human Nutrition and Health; Animal Nutrition and Health; Specialty Products; and Industrial Products. The Human Nutrition and Health segment provides customized food and beverage ingredient systems and proprietary microencapsulation solutions to a variety of applications in the human food, pharmaceutical and nutrition marketplaces.  The Animal Nutrition and Health segment manufactures and supplies products to numerous animal health markets.  Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and the Industrial Products segment, provides certain derivative products into industrial applications, predominately as a component for hydraulic fracturing of shale natural gas wells.


News Article | December 15, 2016
Site: globenewswire.com

NEW HAMPTON, N.Y., Dec. 15, 2016 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ:BCPC) today announced that on December 13, 2016, its Board of Directors declared a dividend on its shares of common stock equal to $0.38 per share, payable on January 20, 2017 to holders of record on December 27, 2016. This dividend reflects a nearly 12% increase over the prior year cash dividend. Ted Harris, Balchem’s President and CEO, stated, “Balchem has a long standing commitment to an annual dividend and we are pleased to announce the continuation of that commitment.  This dividend represents the eighth consecutive increase in our annual dividend, reflecting both the consistently outstanding economic performance the company has delivered and the Board’s continued confidence in our long term strategies.” Segment Information Balchem Corporation reports four business segments: Human Nutrition & Health (formerly SensoryEffects); Animal Nutrition & Health; Specialty Products; and Industrial Products. The Human Nutrition & Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market. The Industrial Products segment manufactures and supplies certain derivative products into industrial applications. Forward-Looking Statements This release contains forward-looking statements, which reflect Balchem’s expectation or belief concerning future events that involve risks and uncertainties. Balchem can give no assurance that the expectations reflected in forward-looking statements will prove correct and various factors could cause results to differ materially from Balchem’s expectations, including risks and factors identified in Balchem’s annual report on Form 10-K for the year ended December 31, 2015. Forward-looking statements are qualified in their entirety by the above cautionary statement. Balchem assumes no duty to update its outlook or other forward-looking statements as of any future date.

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