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Dec 31, 2019
Balchem Q4 2019 Earnings Report
Balchem reported record fourth quarter sales and adjusted net earnings, leading to solid results for the full year 2019.
Key Takeaways
Balchem Corporation reported fourth quarter net sales of $166.5 million, GAAP EPS of $0.63, and adjusted EPS of $0.88. The company saw sales growth in three of its four segments and record adjusted net earnings.
Net sales reached $166.5 million, a 1.8% increase compared to the prior year quarter.
GAAP net earnings were $20.4 million, resulting in GAAP earnings per share of $0.63.
Adjusted net earnings increased by 12.9% to $28.4 million, with adjusted earnings per share of $0.88.
Cash flows from operations were $33.0 million, with free cash flow of $26.3 million.
Balchem
Balchem
Balchem Revenue by Segment
Revenue by Segment
Human Nutrition & Health Revenue
CapyFin.comAnimal Nutrition & Health Revenue
CapyFin.comSpecialty Products Revenue
CapyFin.comIndustrial Products Revenue
CapyFin.com Forward Guidance
Balchem is positioned to continue to drive growth into the future, progressing organic growth initiatives and seeking value-creating acquisitions in 2020.
Positive Outlook
- Delivered record fourth quarter sales.
- Achieved record adjusted net earnings.
- Experienced sales growth in three of four segments.
- Maintained strong cash conversion.
- Well positioned to continue to drive growth into the future.
Challenges Ahead
- Significantly lower Industrial Products sales due to the oil and gas fracking market.
- Manufacturing inefficiencies in Human Nutrition & Health segment.
- Higher bad debt expense.
- A non-cash restructuring charge in the Human Nutrition & Health segment.
- Continued competitive pressures on volume and pricing in the European monogastric business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income