Balchem Corp. reported unaudited consolidated earnings results for the fourth quarter and year ended of December 31, 2017. For the quarter, the company reported net sales of $159,264,000 compared to $140,760,000 a year ago. Earnings from operations were $26,666,000 compared to $24,591,000 a year ago. Earnings before income tax expense was $24,522,000 compared to $22,799,000 a year ago. Net earnings were $41,975,000 compared to $15,924,000 a year ago. Diluted net earnings per common share were $1.30 compared to $0.50 a year ago. Adjusted EBITDA was $39,992,000 compared to $37,684,000 a year ago. Adjusted net earnings were $21,889,000 compared to $21,382,000 a year ago. Adjusted net earnings per common share were $0.68 compared to $0.67 a year ago. EBITDA was $37,761,000 compared to $36,282,000 a year ago. Adjusted earnings from operations were $33,620,000 compared to $32,160,000 a year ago. Free cash flow was $21,314,000 compared with $23,562,000 a year ago, even with capital expenditures being higher than usual as the company closed out certain key projects.

For the full year, the company reported net sales of $594,790,000 compared to $553,204,000 a year ago. Earnings from operations were $97,255,000 compared to $90,838,000 a year ago. Earnings before income tax expense was $88,488,000 compared to $82,934,000 a year ago. Net earnings were $90,071,000 compared to $55,972,000 a year ago. Diluted net earnings per common share were $2.79 compared to $1.75 a year ago. Adjusted EBITDA was $147,833,000 compared to $149,263,000 a year ago. Adjusted net earnings were $81,689,000 compared to $80,363,000 a year ago. Adjusted net earnings per common share were $2.53 compared to $2.52 a year ago. Net cash provided by operating activities was $110,618,000 compared to $107,612,000 a year ago. Capital expenditures and intangible assets acquired were $28,095,000 compared to $23,993,000 a year ago. EBITDA was $141,160,000 compared to $136,514,000 a year ago. Free cash flow was $83,092,000 compared with $84,578,000 a year ago. Adjusted earnings from operations were $124,448,000 compared to $126,789,000 a year ago.

Based on its current estimates, the companies are expecting a 2018 effective tax rate of 25% to 27%. This compares to a normalized 2017 effective tax rate of 33% which is normalized for the exclusion of tax benefits related to the adoption of updated share-based payment accounting and one-time beneficial items in 2017. Also, as previously mentioned, the 2017 amounts recorded due to Tax Reform are provisional amounts subject to adjustment in 2018.