Blachem (BCPC) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.16%. A quarter ago, it was expected that this chemical company would post earnings of $0.94 per share when it actually produced earnings of $0.89, delivering a surprise of -5.32%.Over the last four quarters, the company ...

[Second Quarter 2024 Financial Results Overview](index=1&type=section&id=Second%20Quarter%202024%20Financial%20Results%20Overview) Balchem Corporation achieved robust financial performance in Q2 2024 with growth in net sales, GAAP net earnings, and adjusted EBITDA, alongside a new product launch and significant debt repayment [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Balchem Corporation reported strong Q2 2024 financial results with increased net sales, GAAP net earnings, and adjusted EBITDA, supported by a new product launch and debt reduction 2024 Second Quarter Key Financial Data | Metric | Q2 2024 | Q2 2023 | Change (%) | | :----- | :------ | :------ | :--------- | | Net Sales | $234.1 million | $231.2 million | +1.2% | | Adjusted EBITDA | $62.3 million | $59.3 million | +5.0% | | GAAP Net Earnings | $32.1 million | $30.1 million | +6.5% | | GAAP EPS | $0.98 | $0.93 | +5.4% | | Adjusted EPS | $1.09 | $1.06 | +2.8% | | Cash flows from operations | $45.0 million | N/A | N/A | | Free cash flow | $38.4 million | N/A | N/A | - The company launched **Optifolin+** on May 20, a patented, choline-rich, bioactive reduced folate ingredient designed to support cellular health across all life stages[4](index=4&type=chunk)[5](index=5&type=chunk) - Strong cash flow in Q2 enabled the company to repay **$35 million** in revolving debt, reducing net debt to **$202.8 million** with a net debt leverage ratio of **0.9x**[4](index=4&type=chunk) [CEO Commentary and Strategic Focus](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Focus) CEO Ted Harris expressed satisfaction with Q2 performance, highlighting strong growth in Human Nutrition & Health and Specialty Products, and reaffirming commitment to strategic growth and innovation - The CEO is pleased with the outstanding performance of the Human Nutrition & Health and Specialty Products segments, both achieving strong sales and earnings growth[3](index=3&type=chunk)[4](index=4&type=chunk)[12](index=12&type=chunk) - The company will continue to focus on bringing innovative solutions to global health and nutrition needs, such as the newly launched Optifolin+, and advancing strategic growth initiatives[5](index=5&type=chunk)[12](index=12&type=chunk) - The Balchem team delivered solid financial results in Q2, once again highlighting the resilience of the company's business model[12](index=12&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) Balchem's consolidated financial performance in Q2 2024 showed growth in key GAAP metrics, improved gross margin, and strong cash flow generation used for debt reduction [Income Statement Summary (GAAP)](index=2&type=section&id=Income%20Statement%20Summary%20%28GAAP%29) Balchem's Q2 2024 GAAP income statement shows year-over-year growth in net sales, gross profit, operating earnings, and net earnings, driven by favorable product mix and lower manufacturing costs 2024 Second Quarter GAAP Income Statement Highlights | Metric | Q2 2024 (thousand USD) | Q2 2023 (thousand USD) | Change (%) | | :--- | :--------------------- | :--------------------- | :----------- | | Net Sales | 234,081 | 231,252 | +1.2% | | Gross Profit | 82,994 | 77,349 | +7.3% | | Operating Earnings | 45,797 | 42,836 | +6.9% | | Net Earnings | 32,069 | 30,110 | +6.5% | | GAAP EPS | 0.98 | 0.93 | +5.4% | - Consolidated gross profit reached a record **$83 million**, increasing **7.3%** year-over-year[10](index=10&type=chunk) - Gross margin as a percentage of sales was **35.5%**, an increase of **210 basis points** from **33.4%** in the prior year, primarily due to a favorable product mix and lower manufacturing costs[10](index=10&type=chunk) [Balance Sheet Summary](index=6&type=section&id=Balance%20Sheet%20Summary) As of June 30, 2024, Balchem's total assets slightly decreased due to reduced current and long-term liabilities, leading to an increase in stockholders' equity Selected Balance Sheet Items (thousand USD) | Item | June 30, 2024 | December 31, 2023 | | :--- | :------------ | :---------------- | | Cash and Cash Equivalents | 63,738 | 64,447 | | Total Assets | 1,574,966 | 1,597,211 | | Current Liabilities | 113,322 | 148,491 | | Long-Term Debt | 266,569 | 309,569 | | Total Liabilities | 462,602 | 543,227 | | Stockholders' Equity | 1,112,364 | 1,053,984 | [Cash Flow Summary](index=3&type=section&id=Cash%20Flow%20Summary) Balchem generated strong operating cash flow of $45.0 million and free cash flow of $38.4 million in Q2 2024, enabling significant repayment of revolving debt 2024 Second Quarter Cash Flow Highlights (thousand USD) | Metric | Q2 2024 | H1 2024 | | :--- | :------------- | :----------- | | Cash flows from operations | 44,992 | 78,380 | | Free cash flow | 38,390 | 65,205 | | Revolving loan repayment | 35,000 | 69,000 | | Capital expenditures | 6,900 | 13,788 | - Net working capital was **$206.8 million** as of June 30, 2024, with a cash balance of **$63.7 million**[11](index=11&type=chunk) [Segment-Specific Performance](index=3&type=section&id=Segment-Specific%20Performance) Balchem's Q2 2024 segment performance saw strong growth in Human Nutrition & Health and Specialty Products, while Animal Nutrition & Health experienced a decline [Human Nutrition & Health Segment](index=3&type=section&id=Human%20Nutrition%20%26%20Health%20Segment) The Human Nutrition & Health segment achieved robust Q2 2024 performance with increased sales and operating earnings, primarily from minerals and nutrients, favorable product mix, and lower manufacturing costs Human Nutrition & Health Segment Performance (thousand USD) | Metric | Q2 2024 | Q2 2023 | Change (%) | | :--- | :------------- | :------------- | :----------- | | Net Sales | 147,928 | 135,669 | +9.0% | | Operating Earnings | 33,367 | 27,499 | +21.3% | | Adjusted Operating Earnings | 37,400 | 31,800 | +17.6% | - Sales growth was primarily driven by higher sales in the minerals and nutrients business[8](index=8&type=chunk) [Animal Nutrition & Health Segment](index=3&type=section&id=Animal%20Nutrition%20%26%20Health%20Segment) The Animal Nutrition & Health segment faced challenges in Q2 2024, experiencing significant declines in sales and operating earnings due to reduced demand in monogastric and ruminant markets Animal Nutrition & Health Segment Performance (thousand USD) | Metric | Q2 2024 | Q2 2023 | Change (%) | | :--- | :------------- | :------------- | :----------- | | Net Sales | 49,557 | 61,329 | -19.2% | | Operating Earnings | 2,693 | 7,662 | -64.9% | | Adjusted Operating Earnings | 3,000 | 7,600 | -61.1% | - Sales decline was primarily driven by lower sales in the monogastric and ruminant species markets[8](index=8&type=chunk) [Specialty Products Segment](index=3&type=section&id=Specialty%20Products%20Segment) The Specialty Products segment delivered strong Q2 2024 results with increased sales and operating earnings, driven by higher performance gases sales and reduced manufacturing costs Specialty Products Segment Performance (thousand USD) | Metric | Q2 2024 | Q2 2023 | Change (%) | | :--- | :------------- | :------------- | :----------- | | Net Sales | 35,094 | 32,726 | +7.2% | | Operating Earnings | 11,228 | 9,298 | +20.8% | | Adjusted Operating Earnings | 12,300 | 10,500 | +17.1% | - Sales growth was primarily driven by higher sales in the performance gases business[9](index=9&type=chunk) [Other and Unallocated](index=5&type=section&id=Other%20and%20Unallocated) The "Other and Unallocated" segment saw a slight decrease in net sales and a narrowed pre-tax loss in Q2 2024, primarily reflecting changes in transaction and integration costs Other and Unallocated Segment Performance (thousand USD) | Metric | Q2 2024 | Q2 2023 | | :--- | :------------- | :------------- | | Net Sales | 1,502 | 1,528 | | Pre-tax Earnings | (1,491) | (1,623) | - Unallocated corporate expenses, including transaction and integration costs, were **$132 thousand** in Q2 2024, down from **$651 thousand** in the prior year period[18](index=18&type=chunk) [Non-GAAP Financial Information](index=8&type=section&id=Non-GAAP%20Financial%20Information) Balchem utilizes non-GAAP financial measures to provide a clearer view of operational performance by excluding specific accounting adjustments and non-recurring transactions [Non-GAAP Measures Explanation](index=8&type=section&id=Non-GAAP%20Measures%20Explanation) Balchem uses non-GAAP financial metrics to provide a clearer understanding of operational performance by excluding specific business combination adjustments and non-recurring transactions - Non-GAAP financial measures aim to exclude certain business combination accounting adjustments, equity compensation, non-qualified deferred compensation plan expenses, and certain one-time or non-recurring transactions to provide a clearer view of operating performance[23](index=23&type=chunk) [Reconciliation of Adjusted Gross Margin](index=9&type=section&id=Reconciliation%20of%20Adjusted%20Gross%20Margin) Adjusted gross margin for Q2 2024 was $83.7 million, exceeding GAAP gross margin of $82.994 million, primarily due to adjustments for amortization of intangible assets and financing leases Reconciliation of Adjusted Gross Margin (thousand USD) | Metric | Q2 2024 | Q2 2023 | | :--- | :------------- | :------------- | | GAAP Gross Margin | 82,994 | 77,349 | | Amortization of Intangible Assets and Financing Leases | 707 | 662 | | Adjusted Gross Margin | 83,701 | 78,348 | [Reconciliation of Adjusted Earnings from Operations](index=9&type=section&id=Reconciliation%20of%20Adjusted%20Earnings%20from%20Operations) Adjusted earnings from operations for Q2 2024 were $51.254 million, higher than GAAP operating earnings of $45.797 million, reflecting adjustments for amortization and transaction costs Reconciliation of Adjusted Earnings from Operations (thousand USD) | Metric | Q2 2024 | Q2 2023 | | :--- | :------------- | :------------- | | GAAP Earnings from Operations | 45,797 | 42,836 | | Amortization of Intangible Assets and Financing Leases | 5,303 | 6,952 | | Transaction and Integration Costs | 41 | (7,349) | | Adjusted Earnings from Operations | 51,254 | 49,166 | [Reconciliation of Adjusted Net Earnings and EPS](index=9&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Earnings%20and%20EPS) Adjusted net earnings for Q2 2024 were $35.577 million and adjusted diluted EPS was $1.09, surpassing GAAP figures due to various non-GAAP adjustments Reconciliation of Adjusted Net Earnings and EPS (thousand USD, except per share data) | Metric | Q2 2024 | Q2 2023 | | :--- | :------------- | :------------- | | GAAP Net Earnings | 32,069 | 30,110 | | Amortization of Intangible Assets and Financing Leases | 5,375 | 7,024 | | Transaction and Integration Costs | 41 | (7,349) | | Income Tax Adjustment | (1,908) | (1,827) | | Adjusted Net Earnings | 35,577 | 34,441 | | Adjusted Diluted EPS | 1.09 | 1.06 | [Reconciliation of EBITDA and Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA reached a record **$62.27 million** in Q2 2024, growing **5.0%** year-over-year, calculated by adding back non-cash expenses and specific costs to GAAP net earnings Reconciliation of EBITDA and Adjusted EBITDA (thousand USD) | Metric | Q2 2024 | Q2 2023 | | :--- | :------------- | :------------- | | Net Earnings | 32,069 | 30,110 | | Provision for Income Taxes | 9,157 | 8,290 | | Interest and Other Expenses | 4,571 | 4,436 | | Depreciation and Amortization | 12,433 | 13,355 | | EBITDA | 58,230 | 56,191 | | Non-Cash Equity Compensation Expense | 3,886 | 3,748 | | Adjusted EBITDA | 62,270 | 59,317 | [Reconciliation of Adjusted Income Tax Rate](index=10&type=section&id=Reconciliation%20of%20Adjusted%20Income%20Tax%20Rate) The adjusted effective income tax rate for Q2 2024 was **23.7%**, higher than the GAAP effective rate of **22.2%**, primarily due to adjustments related to ASU 2016-09 Reconciliation of Adjusted Income Tax Rate (thousand USD) | Metric | Q2 2024 | Q2 2023 | | :--- | :------------- | :------------- | | GAAP Income Tax Expense | 9,157 | 8,290 | | GAAP Effective Tax Rate | 22.2% | 21.6% | | Impact of ASU 2016-09 | 620 | 448 | | Adjusted Income Tax Expense | 9,777 | 8,738 | | Adjusted Effective Tax Rate | 23.7% | 22.8% | [Reconciliation of Free Cash Flow](index=11&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Free cash flow for Q2 2024 was **$38.39 million**, derived from net cash provided by operating activities less capital expenditures and other investment-related adjustments Reconciliation of Free Cash Flow (thousand USD) | Metric | Q2 2024 | Q2 2023 | | :--- | :------------- | :------------- | | Net Cash Provided by Operating Activities | 44,992 | 34,991 | | Capital Expenditures, Proceeds from Asset Sales, etc | (6,602) | (3,280) | | Free Cash Flow | 38,390 | 31,711 | [Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides details on Balchem's quarterly conference call, descriptions of its business segments, and a disclaimer regarding forward-looking statements [Quarterly Conference Call](index=4&type=section&id=Quarterly%20Conference%20Call) Balchem Corporation will host a quarterly conference call on July 26, 2024, at 11:00 AM ET to discuss Q2 2024 results, with a replay service available - The quarterly conference call will be held on July 26, 2024, at 11:00 AM ET, hosted by Chairman, President, and CEO Ted Harris and CFO Martin Bengtsson[13](index=13&type=chunk) - A replay service for the conference call will be available three hours after the call concludes until Friday, August 9, 2024[13](index=13&type=chunk) [Business Segment Descriptions](index=4&type=section&id=Business%20Segment%20Descriptions) Balchem Corporation operates through three segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products, each focusing on distinct markets and product offerings - The Human Nutrition & Health segment provides customized food and beverage ingredient systems and essential nutrients for the food, supplement, and pharmaceutical industries[14](index=14&type=chunk) - The Animal Nutrition & Health segment manufactures and supplies products for numerous animal health markets[14](index=14&type=chunk) - The Specialty Products segment offers specialty packaging chemicals for healthcare and other industries, along with chelated minerals for the micronutrient agricultural market[14](index=14&type=chunk) [Forward-Looking Statements Disclaimer](index=4&type=section&id=Forward-Looking%20Statements%20Disclaimer) This press release contains forward-looking statements subject to risks and uncertainties, where actual results may differ materially, and the company disclaims any obligation to update them - Forward-looking statements involve risks and uncertainties that could cause actual actions and results to differ materially from expectations[15](index=15&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise[15](index=15&type=chunk)

Core Insights - Balchem Corporation reported solid financial results for the second quarter of 2024, with record earnings from operations and adjusted EBITDA, driven by strong performance in the Human Nutrition and Health and Specialty Products segments [1][2][12] Financial Performance - Quarterly net sales reached $234.1 million, a 1.2% increase compared to the same quarter last year [2][4] - Adjusted EBITDA was a record $62.3 million, reflecting a 5.0% increase year-over-year [2][5] - GAAP net earnings were $32.1 million, up 6.5% from the prior year quarter, with earnings per share increasing to $0.98 from $0.93 [2][5] - Free cash flow for the quarter was $38.4 million, supported by strong cash flows from operations of $45.0 million [2][11] Segment Performance - The Human Nutrition & Health segment generated sales of $147.9 million, a 9.0% increase, with earnings from operations rising 21.3% to $33.4 million [6][12] - The Animal Nutrition & Health segment saw a decline in sales to $49.6 million, a decrease of 19.2%, with earnings from operations dropping 64.9% to $2.7 million [7][12] - The Specialty Products segment reported sales of $35.1 million, a 7.2% increase, with earnings from operations reaching a record $11.2 million, up 20.8% [8][12] Cash Flow and Debt Management - Strong cash flows allowed the company to repay $35.0 million of revolving debt, reducing net debt to $202.8 million, with a leverage ratio of 0.9 times [3][11] - The company maintained a cash balance of $63.7 million as of June 30, 2024 [11][20] Strategic Initiatives - Balchem launched a new product, Optifolin+®, aimed at supporting cellular health, enhancing its portfolio in the minerals and nutrients market [3][12] - The company continues to focus on strategic growth initiatives while delivering solid financial results [3][12]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to capitalize on established price movements for profitable trades [1] Company Overview: Blachem (BCPC) - Blachem currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy) [2] - Stocks rated Zacks Rank 1 and 2 with Style Scores of A or B tend to outperform the market over the following month [2] Price Performance - BCPC shares have increased by 3.47% over the past week, outperforming the Zacks Chemical - Specialty industry, which rose by 3.4% [3] - Over the past month, BCPC's price change is 9.17%, significantly higher than the industry's 1.91% [3] - In the last quarter, BCPC shares rose by 16.85%, and over the past year, they gained 28.57%, compared to the S&P 500's increases of 11.69% and 26.6%, respectively [4] Trading Volume - BCPC's average 20-day trading volume is 122,920 shares, indicating a bullish sign when combined with rising stock prices [4] Earnings Outlook - In the past two months, one earnings estimate for BCPC has increased, while none have decreased, raising the consensus estimate from $3.86 to $3.89 [5] - For the next fiscal year, one estimate has moved upwards with no downward revisions during the same period [5] Conclusion - Given the strong performance metrics and positive earnings outlook, BCPC is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling near-term investment option [6]

Company Overview - Balchem Corporation develops, manufactures, and markets specialty ingredients aimed at improving health and well-being across various industries globally [3] - The company operates through three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products [3] - The Human Nutrition & Health segment focuses on customized food and beverage ingredient systems and key nutrients for food, supplement, and pharmaceutical applications [3] - The Animal Nutrition & Health segment supplies products to various animal health markets [3] - Specialty Products offers specialty-packaged chemicals for healthcare and other industries, as well as chelated minerals for the micronutrient agricultural market [3] Upcoming Events - A conference call is scheduled for July 26, 2024, at 11:00 AM ET to review second quarter results [1] - Second quarter results will be published before the market opens on the same day [1] - The press release and financial exhibits will be available on the company website prior to the conference call [1] Conference Call Details - Participants can join the conference call by calling toll-free 1-877-407-8289 or local dial-in 1-201-689-8341, five minutes before the start time [2] - A replay of the conference call will be available three hours after its conclusion until the end of the day on August 9, 2024 [2] - To access the replay, dial 1-877-660-6853 or local dial-in 1-201-612-7415, using conference ID 13747779 [2]

MONTVALE, N.J., July 12, 2024 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ:BCPC) today announced that a conference call will be held on Friday, July 26, 2024, at 11:00 AM Eastern Time (ET) to review second quarter results. Ted Harris, Chairman of the Board, President and CEO, and Martin Bengtsson, CFO, will host the call. Second quarter results will be published prior to the market opening on Friday, July 26, 2024. The press release, and its accompanying financial exhibits, will also be available on the ...

Core Viewpoint - Growth investors are increasingly focusing on stocks with above-average financial growth, and Blachem (BCPC) is highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Earnings Growth - Blachem's historical EPS growth rate is 0.8%, but projected EPS growth for this year is 16%, surpassing the industry average of 14.9% [3]. Cash Flow Growth - The year-over-year cash flow growth for Blachem is currently at 4%, significantly higher than the industry average of -2.6%. The company's annualized cash flow growth rate over the past 3-5 years is 2.8%, compared to the industry average of 1.1% [4]. Earnings Estimate Revisions - The current-year earnings estimates for Blachem have been revised upward, with the Zacks Consensus Estimate increasing by 0.8% over the past month [5]. Overall Positioning - Blachem has achieved a Zacks Rank 1 (Strong Buy) and a Growth Score of B, positioning it well for potential outperformance in the market [6][7].

MONTVALE, N.J., June 26, 2024 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ:BCPC), a global specialty ingredient manufacturer for health and nutrition markets, announced they will present at the CJS Securities 24th Annual New Ideas Summer Conference on July 10, 2024. Ted Harris, Chairman of the Board, President and Chief Executive Officer, Martin Bengtsson, Chief Financial Officer and Allison Baurichter, Senior Director Investor Relations will present at the conference. About Balchem Corporation Balchem C ...

Company Overview - Balchem Corporation is a global specialty ingredient manufacturer focused on health and nutrition markets [2] - The company operates through three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products [2] Business Segments - The Human Nutrition & Health segment provides customized food and beverage ingredient systems and key nutrients for food, supplement, and pharmaceutical applications [2] - The Animal Nutrition & Health segment supplies products to various animal health markets [2] - Specialty Products segment offers specialty-packaged chemicals for healthcare and other industries, as well as chelated minerals for the micronutrient agricultural market [2] Upcoming Events - Balchem Corporation will present at the CJS Securities 24th Annual New Ideas Summer Conference on July 10, 2024 [1] - Key executives including Ted Harris (Chairman, President, and CEO), Martin Bengtsson (CFO), and Allison Baurichter (Senior Director Investor Relations) will represent the company at the conference [1]

MONTVALE, N.J., May 29, 2024 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ:BCPC), a global specialty ingredient manufacturer for health and nutrition markets, announced they will present at the Wells Fargo Industrials Conference on June 12, 2024. Ted Harris, Chairman of the Board, President and Chief Executive Officer, Martin Bengtsson, Chief Financial Officer, and Allison Baurichter, Senior Director Investor Relations will present at the conference. About Balchem Corporation Balchem Corporation develops, ...