Montvale, NJ, October 27, 2023 – Balchem Corporation (NASDAQ: BCPC) reported today third quarter net sales of $229.9 million for 2023, compared to net sales of $244.3 million in the prior year quarter. Third quarter net earnings were $29.1 million for 2023, compared to net earnings of $25.2 million for the third quarter 2022. Adjusted net earnings(a) were $33.8 million for the third quarter of 2023, compared to $32.4 million for the third quarter of 2022. Quarterly adjusted EBITDA(a) was $59.9 million, compared to $53.8 million in the prior year quarter.
Third Quarter 2023 Financial Highlights:
Third quarter net sales were $229.9 million, a decrease of $14.3 million, or 5.9%, compared to the prior year.
Record quarterly adjusted EBITDA was $59.9 million, an increase of $6.1 million, or 11.4%, from the prior year.
GAAP net earnings were $29.1 million, an increase of $3.8 million, or 15.2%, from the prior year. These net earnings resulted in GAAP earnings per share of $0.90 compared to $0.78 in the prior year quarter.
Adjusted net earnings were $33.8 million, an increase of $1.4 million, or 4.3%, from the prior year. These adjusted net earnings resulted in adjusted earnings per share(a) of $1.04 compared to $1.00 in the prior year quarter.
The effective tax rate of 20.3% was 151 basis points higher than the prior year tax rate of 18.8%.
Cash flows from operations were $46.5 million for the third quarter of 2023, with quarterly free cash flow(a) of $38.2 million.
Recent Highlights:
Balchem’s Board of Directors elected two new board members to the Board of Directors. Olivier Rigaud, Chief Executive Officer of Corbion N.V. and Monica Vicente, Senior Vice President and Chief Financial Officer of Fresh Del Monte Produce Inc. were elected to the Board on September 6, 2023, and they both bring relevant market expertise and strong global business acumen to the Board.
Three new papers were published in Q3 adding to the extensive library of research showing the benefits and importance of feeding ReaShure® to transition dairy cows to enhance both milk production as well as offspring health and growth.
Cash flows in the third quarter enabled us to make net repayments on our revolving debt of $25.0 million, bringing our net debt to $303.6 million, with an overall leverage ratio on a net debt basis of 1.3 times.
Quarterly Conference Call
A quarterly conference call will be held on Friday, October 27, 2023, at 11:00 AM Eastern Time (ET) to review third quarter 2023 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 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 #13741887.
(a) See “Non-GAAP Financial Information” for a reconciliation of GAAP and non-GAAP financial measures.
Ted Harris, Chairman, President and CEO said, "We delivered solid second quarter financials with record earnings from operations and adjusted EBITDA. I am particularly pleased with the excellent performance in our Human Nutrition and Health and Specialty Products segments, both delivering strong sales and earnings growth."
Ted Harris, Chairman, President and CEO of Balchem said, "The first quarter was a very good start to the year for Balchem. We delivered record net sales, adjusted EBITDA, and net earnings, as well as solid first quarter cash flows, despite the continued challenging environment in parts of our portfolio.”
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