Investor Presentation Q4 2024 1 Safe Harbor Statement 2 • During the course of this presentation, management may make forward-looking statements regarding financial performance and future events. • We will attempt to identify these statements by use of words such as expect, believe, anticipate, intend, and other words that denote future events. You should understand that, even though our forward-looking statements are based on assumptions we believe are reasonable when made, they are still subject to uncert ...

分组1 - Blachem reported quarterly earnings of $1.03 per share, missing the Zacks Consensus Estimate of $1.11 per share, but showing an increase from $0.82 per share a year ago, resulting in an earnings surprise of -7.21% [1][2] - The company posted revenues of $240 million for the quarter, which was 1.21% below the Zacks Consensus Estimate and an increase from $228.7 million year-over-year, having surpassed consensus revenue estimates only once in the last four quarters [2][3] - Blachem shares have declined approximately 1% year-to-date, contrasting with the S&P 500's gain of 4% [3] 分组2 - The future performance of Blachem's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook, including current consensus earnings expectations for upcoming quarters [4][6] - The current consensus EPS estimate for the next quarter is $1.13 on revenues of $249.46 million, and for the current fiscal year, it is $4.65 on revenues of $1.03 billion [7] - The Chemical - Specialty industry, to which Blachem belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Record net sales of $240.0 million for Q4 2024, an increase of $11.3 million or 4.9% year-over-year[4] - GAAP net earnings for Q4 2024 were $33.6 million, reflecting a 26.0% increase from the prior year quarter[4] - Adjusted EBITDA reached a record $62.8 million in Q4 2024, up 13.4% compared to the same quarter last year[4] - Full year 2024 net sales totaled $953.7 million, an increase of $31.2 million or 3.4% year-over-year[4] - Adjusted net earnings for the full year 2024 were $143.0 million, a 10.2% increase from the prior year[4] - Net earnings for the year ended December 31, 2024, were $128,475, representing an 18.4% increase compared to $108,543 in 2023[21] - Adjusted net earnings for the year ended December 31, 2024, were $142,965, a 10.2% increase from $129,718 in 2023[25] Segment Performance - The Human Nutrition & Health segment generated Q4 sales of $147.3 million, a 6.8% increase from the prior year quarter[7] - The Animal Nutrition & Health segment reported Q4 sales of $58.3 million, a slight increase of 0.3% year-over-year[7] - The Specialty Products segment achieved Q4 sales of $32.9 million, an increase of 6.0% compared to the prior year quarter[8] - Human Nutrition & Health segment reported earnings before income taxes of $33,755 for the three months ended December 31, 2024, up 33.5% from $25,210 in 2023[18] Cash Flow and Capital Expenditures - Free cash flow for Q4 2024 was $39.8 million, with cash flows from operations at $52.3 million[11] - Net cash provided by operating activities for Q4 2024 was $52,317 million, a decrease from $67,406 million in Q4 2023[30] - Free cash flow for Q4 2024 was $39,768 million, down from $55,965 million in Q4 2023[30] - Total net cash provided by operating activities for the year ended December 31, 2024 was $181,999 million, slightly down from $183,761 million in 2023[30] - Capital expenditures for the year ended December 31, 2024, were $35,661, slightly down from $37,892 in 2023[21] - Capital expenditures for Q4 2024 were $(12,549) million, compared to $(11,441) million in Q4 2023[30] Debt and Balance Sheet - The company paid down $119.6 million of debt during 2024, strengthening its balance sheet[3] - Total assets decreased to $1,575,371 as of December 31, 2024, down from $1,597,211 in 2023[19] - Cash and cash equivalents decreased to $49,515 at the end of 2024, down from $64,447 at the end of 2023[19] Tax and Other Costs - The effective tax rate for GAAP income tax expense was 24.5% for the three months ended December 31, 2024, compared to 19.9% in 2023[28] - The company incurred transaction and integration costs of $689 for the three months ended December 31, 2024, compared to a benefit of $(1,383) in the same period of 2023[25] Adjusted Measures and Non-GAAP Information - Adjusted EBITDA calculations exclude restructuring costs, transaction and integration costs, and impairment charges to provide a clearer view of operating performance[30] - The company noted that amortization of intangible assets and finance lease expenses are inconsistent and excluded from non-GAAP measures for better performance evaluation[30] - The company believes that excluding inconsistent items from non-GAAP measures is useful for investors to compare current and historical financial results[30]

Core Insights - Balchem Corporation reported strong financial results for the fourth quarter and full year of 2024, achieving record net sales and adjusted EBITDA across all segments [2][3][6]. Financial Performance - Fourth quarter net sales reached $240.0 million, a 4.9% increase from $228.7 million in the prior year quarter [5][6]. - Net earnings for the fourth quarter were $33.6 million, reflecting a 26.0% increase from $26.6 million in the prior year quarter [6]. - Adjusted EBITDA for the fourth quarter was $62.8 million, up 13.4% from $55.4 million in the prior year quarter [6]. - For the full year 2024, net sales totaled $953.7 million, a 3.4% increase from $922.4 million in 2023 [6]. - Full year net earnings were $128.5 million, an 18.4% increase from $108.5 million in the prior year [6]. Segment Performance - The Human Nutrition & Health segment generated fourth quarter sales of $147.3 million, a 6.8% increase from the prior year quarter, with earnings from operations rising 33.9% to $33.8 million [8]. - The Animal Nutrition & Health segment reported quarterly sales of $58.3 million, a slight increase of 0.3%, with earnings from operations increasing 7.2% to $5.7 million [9]. - The Specialty Products segment achieved fourth quarter sales of $32.9 million, a 6.0% increase, with earnings from operations rising 15.9% to $10.0 million [10]. Cash Flow and Dividends - Free cash flow for the fourth quarter was $39.8 million, with cash flows from operations amounting to $52.3 million [6][13]. - The company paid down $119.6 million of debt during the year, allowing for a double-digit increase in dividends [3][6]. Balance Sheet Highlights - As of December 31, 2024, total assets were $1.575 billion, with total liabilities of $425.5 million [21][22]. - Cash and cash equivalents decreased to $49.5 million from $64.4 million in the prior year [21]. Management Outlook - The CEO expressed optimism about growth opportunities for 2025 and beyond, indicating a strong position for ongoing shareholder growth [4][14].

Core Viewpoint - Balchem Corporation will hold a conference call on February 21, 2025, to discuss its fourth quarter and full year 2024 results, with key executives participating [1][2]. Group 1: Conference Call Details - The conference call is scheduled for 11:00 AM Eastern Time on February 21, 2025, and will be hosted by Ted Harris, Chairman and CEO, and Martin Bengtsson, CFO [1]. - Fourth quarter and full year results will be published before the market opens on the same day, and the press release will be available on the company's website [2]. - Participants can join the call by dialing a toll-free number or local number five minutes prior to the start time, and a replay will be available for a limited time after the call [3]. Group 2: Company Overview - Balchem Corporation specializes in developing, manufacturing, and marketing specialty ingredients aimed at enhancing health and well-being across various industries [4]. - The company operates through three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products [4]. - The Human Nutrition & Health segment focuses on customized food and beverage ingredient systems, while the Animal Nutrition & Health segment supplies products for animal health markets [4].

Group 1 - Balchem Corporation will hold a conference call on February 21, 2025, at 11:00 AM ET to discuss fourth quarter and full year 2024 results [1][2] - The financial results will be published before the market opens on the same day, and the press release will be available on the company's website [2] - The conference call can be accessed toll-free at 1-877-407-8289, with a replay available until March 7, 2025 [3] Group 2 - Balchem Corporation specializes in developing, manufacturing, and marketing specialty ingredients that enhance health and well-being across various industries [4] - The company operates through three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products [4] - The Human Nutrition & Health segment focuses on customized food and beverage ingredient systems, while the Animal Nutrition & Health segment supplies products to animal health markets [4]

Group 1 - Balchem Corporation will present at the CJS Securities New Ideas for the New Year Virtual Conference on January 14, 2025, with key executives participating [1] - The company operates in three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products [2] - The Human Nutrition & Health segment focuses on customized food and beverage ingredient systems and key nutrients for food, supplement, and pharmaceutical industries [2] Group 2 - The Animal Nutrition & Health segment supplies products to various animal health markets [2] - Specialty Products segment provides specialty-packaged chemicals for healthcare and other industries, including chelated minerals for the micronutrient agricultural market [2]

Industry Overview - The chemicals industry experienced significant growth prior to and during the COVID-19 pandemic, but has since faced a downturn, with growth rates dropping to under 2% per year since late 2022, compared to a 24% annual increase in global indexes during the same period [1][2] Factors Affecting Performance - Persistent inflation, high energy prices, regulatory changes, and an imbalance between production capacity and demand have contributed to the industry's decline [2] - Industries that heavily utilize chemical products, such as consumer packaged goods and automotive, have seen slowed or reversed growth, negatively impacting demand for chemicals [2] Company-Specific Insights Quaker Houghton - Quaker Houghton has faced challenges due to soft-end market conditions, resulting in a 6% year-over-year decline in net sales to $462 million for the latest quarter [5][6] - Despite these challenges, new business initiatives and strong pricing have helped mitigate negative impacts [3][5] - The company is expected to potentially overcome pandemic-related setbacks in 2025 [6] Balchem Corporation - Balchem has performed better than Quaker, with a one-year return of 16.3% and a more than 4% increase in net sales year-over-year, driven by its Human Nutrition and Health and Special Products segments [7][8] - The Human Nutrition and Health segment may see further growth if political changes favor the industry [8] - Balchem's free cash flow of over $42 million allowed it to reduce debt and increase dividends by 10%, maintaining a manageable payout ratio of 23.4% [9] H.B. Fuller - H.B. Fuller has diversified its operations through acquisitions, leading to increased net debt of about $2 billion, but maintains a solid foundation with $3.5 billion in sales for 2023 [11] - The company has seen a decline of over 15% in share price over the past year, making it a potential value candidate with a P/S ratio of about 1.1 [12] - Analysts rate H.B. Fuller as a Moderate Buy, with a consensus price target of $92.75, indicating a potential upside of about 34% from current levels [12]

Core Insights - The article emphasizes the importance of identifying and sustaining trends in short-term investing, highlighting that a solid trend can lead to successful trading [1][2]. Group 1: Stock Performance - Blachem (BCPC) has shown a solid price increase of 1.2% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has maintained a price increase of 0.4% over the last four weeks, suggesting that the upward trend is still intact [5]. - BCPC is currently trading at 85% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - BCPC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests utilizing the "Recent Price Strength" screen to identify stocks like BCPC that are on an uptrend supported by strong fundamentals [3][8]. - It mentions that there are over 45 Zacks Premium Screens available for investors to find winning stock picks based on their personal investing styles [8].

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting the need for sound fundamentals and positive earnings estimates to maintain momentum [1][2]. Group 1: Stock Performance - Blachem (BCPC) has shown a solid price increase of 3.7% over the past 12 weeks, indicating investor willingness to pay more for potential upside [4]. - Over the last four weeks, BCPC's price increased by 6.8%, suggesting that the upward trend is still intact [5]. - BCPC is currently trading at 87.7% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - BCPC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests using the "Recent Price Strength" screen to identify stocks like BCPC that are on an uptrend supported by strong fundamentals [3]. - It mentions that there are over 45 Zacks Premium Screens available for investors to find winning stock picks based on their personal investing styles [8].