Balchem Corporation (BCPC) has reported an 1.69 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $15.92 million, or $0.50 a share in the quarter, compared with $15.66 million, or $0.49 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $21.38 million, or $0.67 a share compared with $21.01 million or $0.66 a share, a year ago.
Revenue during the quarter grew 6.05 percent to $140.76 million from $132.73 million in the previous year period. Gross margin for the quarter expanded 326 basis points over the previous year period to 33.34 percent. Total expenses were 82.53 percent of quarterly revenues, down from 83.26 percent for the same period last year. This has led to an improvement of 73 basis points in operating margin to 17.47 percent.
Operating income for the quarter was $24.59 million, compared with $22.22 million in the previous year period.
However, the adjusted operating income for the quarter stood at $32.16 million compared to $29.16 million in the prior year period. At the same time, adjusted operating margin improved 88 basis points in the quarter to 22.85 percent from 21.97 percent in the last year period.
Ted Harris, chairman, chief executive officer, and president of Balchem said, "We are very proud to report these fourth quarter results as well as another full year of sales and adjusted earnings growth. While we faced certain headwinds in 2016 we are pleased with the strategic progress we have made as a company, highlighted by the acquisition of Albion International, Inc. which strengthened our health and nutrition portfolio, the earnings growth we delivered in three of our four business segments, and the record free cash flow we generated."
Operating cash flow improves marginally
Balchem Corporation has generated cash of $107.61 million from operating activities during the year, up 3.65 percent or $3.79 million, when compared with the last year.
The company has spent $133.59 million cash to meet investing activities during the year as against cash outgo of $42.28 million in the last year.
The company has spent $19.45 million cash to carry out financing activities during the year as against cash outgo of $25.84 million in the last year period.
Cash and cash equivalents stood at $38.64 million as on Dec. 31, 2016, down 54.43 percent or $46.15 million from $84.80 million on Dec. 31, 2015.
Working capital drops significantly
Balchem Corporation has witnessed a decline in the working capital over the last year. It stood at $87.43 million as at Dec. 31, 2016, down 25.72 percent or $30.27 million from $117.71 million on Dec. 31, 2015. Current ratio was at 1.87 as on Dec. 31, 2016, down from 2.45 on Dec. 31, 2015.
Debt comes down
Balchem Corporation has recorded a decline in total debt over the last one year. It stood at $280.49 million as on Dec. 31, 2016, down 5.23 percent or $15.47 million from $295.96 million on Dec. 31, 2015. Total debt was 29.57 percent of total assets as on Dec. 31, 2016, compared with 33.59 percent on Dec. 31, 2015. Debt to equity ratio was at 0.54 as on Dec. 31, 2016, down from 0.64 as on Dec. 31, 2015.
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