Balchem Corp. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended of December 31, 2017; Provides Effective Tax Rate Guidance for the Year 2018
February 27, 2018 at 05:30 pm IST
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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.
Balchem Corporation develops, manufactures, distributes and markets specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition and industrial markets. The Company's segments include Human Nutrition and Health (HNH), Animal Nutrition and Health (ANH), and Specialty Products. The HNH segment provides human grade choline nutrients and mineral amino acid chelated products for nutrition and health applications. This segment also manufactures specialty vitamin K2, which plays a role in the human body for bone health, heart health and immunity, and methylsulfonylmethane (MSM). ANH segment provides nutritional products derived from its microencapsulation and chelation technologies in addition to the nutrient choline chloride. Through Specialty Products, it re-packages and distributes a number of gases and chemicals for various uses by its customers, notably ethylene oxide, propylene oxide, and ammonia.
Balchem Corp. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended of December 31, 2017; Provides Effective Tax Rate Guidance for the Year 2018