Balchem(US:BCPC)2022-04-28 16:00Financial Performance - Net sales for Q1 2022 were $228.867 million, a 23.2% increase from $185.656 million in Q1 2021[20] - Gross margin increased to $71.506 million in Q1 2022, compared to $58.727 million in Q1 2021, reflecting improved operational efficiency[20] - Net earnings for Q1 2022 were $28.930 million, up 23.5% from $23.411 million in Q1 2021[20] - Basic net earnings per share increased to $0.90 in Q1 2022, compared to $0.73 in Q1 2021, representing a 23.3% growth[20] - Comprehensive income for Q1 2022 was $27.634 million, compared to $17.787 million in Q1 2021, reflecting strong financial performance[23] - Net earnings for 2022 were $28,930 million, an increase of 23% from $23,411 million in 2021[30] - Total revenue for the three months ended March 31, 2022, was $228.87 million, a significant increase from $185.66 million in the same period of 2021, representing a growth of approximately 23.2%[88]. - The net earnings for the three months ended March 31, 2022, were $28,930, compared to $23,411 for the same period in 2021[66] Expenses and Liabilities - Research and development expenses rose to $3.231 million in Q1 2022, up from $2.749 million in Q1 2021, indicating a focus on innovation[20] - Operating expenses rose to $33.170 million, a 17.8% increase from $28.152 million, primarily due to higher compensation-related costs[146] - Income tax expense increased by 32.4% to $8.700 million, up from $6.572 million, due to reduced tax credits and higher foreign tax rates[150] - The effective tax rate for the first quarter of 2022 was 23.1%, compared to 21.9% in the prior year[150] - Total liabilities decreased to $321.226 million as of March 31, 2022, compared to $322.310 million at the end of 2021[18] - The deferred compensation liability increased to $8,206 thousand as of March 31, 2022, from $6,270 thousand as of December 31, 2021[159] Cash Flow and Investments - Net cash provided by operating activities decreased to $7,021 million in 2022 from $40,607 million in 2021, representing a decline of 82.7%[30] - Cash and cash equivalents at the end of the period decreased to $64,466 million in 2022 from $88,535 million in 2021, a decline of 27.2%[30] - Total investments in property, plant, and equipment and intangible assets were $10,256 thousand for the three months ended March 31, 2022, compared to $6,312 thousand for the same period in 2021[155] - The company borrowed $20,000 thousand against the revolving loan during Q1 2022, with $371,431 thousand available under the Credit Agreement as of March 31, 2022[156] Shareholder Returns - The company repurchased common stock worth $34.599 million during the quarter, indicating a commitment to returning value to shareholders[26] - Dividend payments increased to $20,703 thousand in Q1 2022 from $18,700 thousand in Q1 2021[157] - The company has an approved stock repurchase program with a total authorization of 3,763,038 shares, of which 3,063,929 shares have been purchased since inception[170] Segment Performance - The Human Nutrition & Health segment generated $752.12 million in sales for 2022, compared to $727.13 million in 2021, reflecting a growth of about 3.4%[79]. - The Animal Nutrition & Health segment reported sales of $165.63 million in 2022, up from $158.97 million in 2021, indicating an increase of approximately 4.7%[79]. - The Specialty Products segment's sales decreased slightly to $181.64 million in 2022 from $184.63 million in 2021, a decline of about 1.6%[79]. - Human Nutrition & Health segment sales increased by 17.2% to $122.445 million, driven by a 16.2% rise in average selling prices[141] - Animal Nutrition & Health segment sales grew by 35.6% to $69.342 million, with average selling prices contributing 32.1% to this growth[142] - Specialty Products segment sales increased by 19.0% to $33.334 million, primarily due to growth in the medical device sterilization market[142] Assets and Equity - Total current assets decreased slightly to $319.804 million as of March 31, 2022, from $322.232 million at the end of 2021[18] - Stockholders' equity as of March 31, 2022, was $873.682 million, a slight decrease from $877.015 million at the end of 2021[18] - Total inventories as of March 31, 2022, amounted to $108,411, an increase from $91,058 as of December 31, 2021[53] - Property, plant, and equipment, net, was $240,419 as of March 31, 2022, compared to $237,517 as of December 31, 2021[55] Market and Economic Factors - The military conflict between Russia and Ukraine may adversely affect foreign sales and operations, increasing supply chain disruptions and costs[166]