-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AWipepEVfH4F3WDtuXNeglMeyDWPPlDcMFQFlrvGC5aianQYg7nVzV2qH+s3ikE2 xLqYX6R9H243ctjSz2rtTQ== 0000914317-04-002852.txt : 20040728 0000914317-04-002852.hdr.sgml : 20040728 20040727103035 ACCESSION NUMBER: 0000914317-04-002852 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040727 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BALCHEM CORP CENTRAL INDEX KEY: 0000009326 STANDARD INDUSTRIAL CLASSIFICATION: CHEMICALS & ALLIED PRODUCTS [2800] IRS NUMBER: 132578432 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13648 FILM NUMBER: 04932417 BUSINESS ADDRESS: STREET 1: P O BOX 600 CITY: NEW HAMPTON STATE: NY ZIP: 10958 BUSINESS PHONE: 8453265632 MAIL ADDRESS: STREET 1: P O BOX 600 CITY: NEW HAMPTON STATE: NY ZIP: 10958 8-K 1 form8k-61882_balchem.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (date of earliest event reported): July 27, 2004 Balchem Corporation (Exact name of registrant as specified in its charter) Maryland 1-13648 13-257-8432 (State or other jurisdiction of (Commission file number) (I.R.S. Employer incorporation or organization) Identification Number) P.O. Box 600, New Hampton, NY 10958 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (845) 326-5600 Item 7. Financial Statements and Exhibits (c) Exhibits 99 Press Release of Balchem Corporation dated July 27, 2004, reporting Balchem's financial results for the second quarter of 2004. Item 12. Results of Operations and Financial Condition On July 27, 2004, Balchem Corporation issued a press release announcing its financial results for the second quarter of 2004. A copy of the press release is attached as Exhibit 99 to this report. The information in this report, including Exhibit 99, is being furnished and shall not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. SIGNATURE Under the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the authorized undersigned. BALCHEM CORPORATION By:/s/ Dino A. Rossi ------------------------- Dino A. Rossi, President, Chief Executive Officer Dated: July 27, 2004 EXHIBIT INDEX Exhibit No. Description 99 Press Release of Balchem Corporation dated July 27, 2004, reporting Balchem's financial results for the second quarter of 2004. EX-99 2 ex99.txt July 27, 2004 BALCHEM CORPORATION (AMEX: BCP) ------------------------------- Reported as follows (unaudited) for the Quarter ended June 30, 2004 ($000 Omitted Except for Net Earnings Per Share) For the Three Months Ended June 30, ----------------------------------- 2004 2003 ---- ---- Net sales $16,449 $14,860 Gross profit 6,023 5,488 Operating expenses 2,834 2,725 ------- ------- Earnings from operations 3,189 2,763 Other expense 22 71 ------- ------- Earnings before income tax expense 3,167 2,692 Income tax expense 1,166 1,001 ------- ------- Net earnings $ 2,001 $ 1,691 ======= ======= Basic net earnings per common share $ 0.40 $ 0.35 Diluted net earnings per common share $ 0.39 $ 0.34 For the Six Months Ended June 30, --------------------------------- 2004 2003 ---- ---- Net sales $32,093 $29,676 Gross profit 11,636 11,139 Operating expenses 5,519 5,619 ------- ------- Earnings from operations 6,117 5,520 Other expense 49 144 ------- ------- Earnings before income tax expense 6,068 5,376 Income tax expense 2,251 2,002 ------- ------- Net earnings $ 3,817 $ 3,374 ======= ======= Basic net earnings per common share $ 0.77 $ 0.70 Diluted net earnings per common share $ 0.74 $ 0.68 Balchem Corporation (AMEX:BCP) Page 2 Net sales for the second quarter ended June 30, 2004 were a record $16.4 million, an increase of 10.7%, as compared to $14.9 million for the comparable prior year period. Net earnings for the second quarter were $2.0 million, an increase of 18.3% as compared with the same period last year. This resulted in a diluted net earnings increase of 14.4% to $0.39 per share for the second quarter of 2004 versus $0.34 per share for the comparable quarter of the prior year. In this second quarter of 2004, all three segments of the company reported improved sales and earnings as follows. The ARC Specialty Products segment generated earnings from operations of approximately $2.5 million on record second quarter sales of $7.1 million. Net sales were 11.5% higher than the prior year comparable quarter and earnings from operations were 5.1% higher, driven by increased sales volume of packaged ethylene oxide and sales of single use ethylene oxide canisters for use in medical device sterilization. The BCP Ingredients segment recorded sales of approximately $3.0 million, increasing 8.9% over the prior year comparable quarter, with continued strong sales volumes in dry and aqueous choline products for the poultry and swine industries. Earnings from operations for this segment improved 42.3% to approximately $0.20 million as compared to $0.14 million in the prior year comparable quarter. Sales of the Encapsulated/Nutritional Products segment were $6.4 million in the period, an increase of 10.7% from the prior year comparable quarter, principally due to improvements in the domestic and international food markets as well as increasing dairy industry acceptance of Nitroshure, which was launched in the first quarter of 2004. Earnings from operations for this segment improved to $0.47 million in the current quarterly period as compared to $0.23 million in the prior year comparable quarter. Consolidated gross profit for the quarter ended June 30, 2004 was $6.0 million compared to $5.5 million for the comparable year-ago period due to the above noted increase in sales volumes. Operating (Selling, R&D, and Administrative) expenses were approximately 17.2% of net sales, consistent with the first quarter results, improving from 18.3% of net sales in the prior year comparable quarter. For the six months ended June 30, 2004, net sales increased 8.1% to $32.1 million compared to $29.7 million in the comparable prior year period, while net earnings increased 13.1% to $3.8 million or $0.74 per diluted share, compared to net earnings of $3.4 million, or $0.68 per diluted share in the prior year comparable period. Our balance sheet ratios and cash flow continue to be strong. During the quarter ended June 30, 2004, the Company reduced long term debt, as scheduled, by $0.4 million from $7.4 million to $7.0 million. Our cash balance closed the quarter at $13.6 million, an increase of $4.4 million over the year end balance of $9.2 million and approximately $11.1 million over the previous year's June 30 level. Outlook Commenting on the outlook for 2004, Dino A. Rossi, President and CEO of Balchem, said "Strength in the ARC Specialty Products and BCP Ingredients Unencapsulated Feed Supplements segments should continue. Sales in our Encapsulated/Nutritional Products segment, increased 12.9% sequentially from the quarter ending March 31, 2004 and we continue to see signs of volume improvement in the human food and nutrition market as well as animal nutrition. This segment should continue to improve through 2004. We have also added additional personnel talent to this segment in the marketing, sales and application R&D areas to improve our ability to serve our markets and exploit our technology. Based on the foregoing, we expect modest consolidated sales and earnings growth for the balance of 2004 over the first six months of this year, and double digit growth in earnings for the balance of 2004 over 2003 second half results. Balchem Corporation (AMEX:BCP) Page 3 Quarterly Conference Call A quarterly conference call will be conducted on Tuesday, July 27, 2004, at 2:00 PM Eastern Time (ET) to review second quarter 2004 results (for the period ending June 30, 2004). Dino A. Rossi, President and CEO, and Frank Fitzpatrick, Chief Financial Officer, will host the call. We invite you to listen to the call by dialing 800-475-2151 five minutes prior to the scheduled start time of the conference call. The conference call will be available for digital replay through July 29, 2004. To access the replay of the conference call, dial 877-519-4471, Pin #4965065. This press release, and its accompanying financial exhibits, will also be available on the Company website, www.balchem.com, prior --------------- to the conference call. Segment Information Balchem Corporation consists primarily of three business segments: ARC Specialty Products, Encapsulated/Nutritional Products, and BCP Ingredients. Through ARC Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries. The Encapsulated/Nutritional Products segment provides proprietary microencapsulation solutions to a variety of applications in the food and human nutrition marketplaces. BCP Ingredients manufactures and supplies choline chloride and derivatives used primarily in the poultry and swine industries. Forward Looking Statements This release contains forward-looking statements, which reflect Balchem's expectation or belief concerning future events that involve risks and uncertainties. Balchem can give no assurance that the expectations reflected in forward looking statements will prove correct and various factors could cause results to differ materially from Balchem's expectations, including risks and factors identified in Balchem's annual report on Form 10-K for the year ended December 31, 2003. Forward-looking statements are qualified in their entirety by the above cautionary statement. Balchem assumes no duty to update its outlook or other forward-looking statements as of any future date. Contact: Jackie Powell, Investor Relations Coordinator, Telephone: 845-326-5600 Balchem Corporation (AMEX:BCP) Page 4 Selected Financial Data ($ in 000's)
Business Segment Net Sales: - ---------------------------------------------------------------------------------------------------------- Three Months Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 - ---------------------------------------------------------------------------------------------------------- Specialty Products $ 7,116 $ 6,384 $ 14,144 $ 12,322 Encap/Nutritional Products 6,377 5,761 12,023 11,904 BCP Ingredients 2,956 2,715 5,926 5,450 - ---------------------------------------------------------------------------------------------------------- Total $ 16,449 $ 14,860 $ 32,093 $ 29,676 - ----------------------------------------------------------------------------------------------------------
Business Segment Earnings (Loss): - --------------------------------------------------------------------------------------------------------- Three Months Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 - --------------------------------------------------------------------------------------------------------- Specialty Products $ 2,522 $ 2,399 $ 5,098 $ 4,448 Encap/Nutritional Products 472 227 556 776 BCP Ingredients 195 137 463 296 Other expense (22) (71) (49) (144) - --------------------------------------------------------------------------------------------------------- Earnings before income taxes $ 3,167 $ 2,692 $ 6,068 $ 5,376 - ---------------------------------------------------------------------------------------------------------
Selected Balance Sheet Items June 30, December 31, 2004 2003 ---- ---- Cash $ 13,563 $ 9,239 Accounts Receivable 7,517 7,233 Inventories 6,993 5,961 Other Current Assets 1,470 1,197 -------- -------- Current Assets 29,543 23,630 Property, Plant, & Equipment (net) 24,818 25,636 Other Assets 7,156 7,640 -------- -------- Total Assets $ 61,517 $ 56,906 ======== ======== Current Liabilities $ 5,955 $ 6,075 Long-Term Debt 6,968 7,839 Other Long-Term Obligations 3,223 3,211 -------- -------- Total Liabilities 16,146 17,125 Stockholders' Equity 45,371 40,285 Less: Treasury Stock @ Cost -- (504) -------- -------- Net Stockholders Equity 45,371 39,781 -------- -------- Total Liability and Stockholders' Equity $ 61,517 $ 56,906 ======== ======== -----END PRIVACY-ENHANCED MESSAGE-----