-----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, V8eL66XVtLv+tB+vuxSCGNPMUXRRw/F95l2rVNH/DD9uD5sSKUTHuGifw6JpJpCc OdLXfbdO3LKSZE7t1U8lXA== 0000914317-96-000403.txt : 19961115 0000914317-96-000403.hdr.sgml : 19961115 ACCESSION NUMBER: 0000914317-96-000403 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961113 SROS: AMEX 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: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 001-13648 FILM NUMBER: 96661877 BUSINESS ADDRESS: STREET 1: P O BOX 175 CITY: SLATE HILL STATE: NY ZIP: 10973 BUSINESS PHONE: 9143555345 MAIL ADDRESS: STREET 1: P O BOX 175 CITY: SLATE HILL STATE: NY ZIP: 10973 10QSB 1 FORM 10-Q SB SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 For Quarter Ended September 30, 1996 Commission File No. 1-13648 BALCHEM CORPORATION ------------------------------------------------------ (Exact Name of Registrant as Specified in its Charter) Maryland 13-2578432 - ------------------------------- ------------------------------- (State of Other Jurisdiction of (I.R.S. Employer Identification Incorporation or Organization) Number) P.O. Box 175, Slate Hill, NY 10973 - ---------------------------------------- ---------- (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, including area code: (914) 355-5300 --------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ X ] No [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report. 3,143,828 Shares Common Stock
BALCHEM CORPORATION BALANCE SHEET ASSETS 9/30/96 09/30/95 ---------- ---------- CURRENT ASSETS CASH & INVESTMENTS ............................... 221,287 45,993 ACCOUNTS RECEIVABLE ............................. 3,236,721 3,168,684 INVENTORIES ..................................... 1,944,322 1,626,569 PREPAID EXPENSES ................................ 179,572 240,405 CURRENT INCOME TAX DEFERRED INCOME TAXES ........................... 148,678 104,575 TOTAL CURRENT ASSETS .......................... 5,730,580 5,186,226 ---------- ---------- PROPERTY,PLANT & EQUIPMENT LAND ............................................ 84,710 53,648 BUILDING ........................................ 4,146,623 3,949,582 EQUIPMENT ....................................... 10,065,955 9,504,611 TOTAL .......................................... 14,297,288 13,507,841 LESS:ACCUMULATED DEPRECIATION ........................ 6,935,755 5,989,511 NET PROPERTY, PLANT,EQUIPMENT ................. 7,361,533 7,518,330 ---------- ---------- OTHER ASSETS LICENSE ......................................... 10,781 12,656 FINANCING COSTS ................................ 13,024 17,660 GOODWILL ........................................ 7,258 7,558 CUSTOMER LISTS .................................. 744,593 321,494 PATENTS,TRADEMARKS®ISTRATIONS ................ 333,694 190,685 OTHER ........................................... 60,153 47,671 TOTAL OTHER ASSETS ........................... 1,169,503 597,724 ---------- ---------- TOTAL ASSETS ......................................... 14,261,616 13,302,280 ---------- ---------- BALCHEM CORPORATION BALANCE SHEET (continued) LIABILITIES & STOCKHOLDER EQUITY 9/30/96 09/30/95 ---------- ---------- CURRENT LIABILITIES PAYABLES (TRADE& ACCRUALS) ...................... 2,348,268 2,119,850 NOTES PAYABLE ................................... 24,735 DIVIDEND PAYABLE SHORT TERM REVOLVER .................................. 110,000 CURRENT DEBT .................................... 467,474 510,336 CURRENT INCOME TAX .............................. 32,688 5,112 TOTAL CURRENT LIABILITIES ..................... 2,848,430 2,770,033 ---------- ---------- NOTES PAYABLE LONG TERM ......................... 26,027 38,343 LONG TERM DEBT .................................. 1,684,000 2,696,000 DEFERRED INCOME TAX ............................. 698,273 657,199 DEFERRED COMPENSATION .......................... 123,193 89,806 TOTAL LIABILITIES .................................... 5,379,923 6,251,381 ---------- ---------- STOCKHOLDERS EQUITY COMMON STOCK ..................................... 209,589 208,085 PAID IN CAPITAL .................................. 1,768,887 1,716,364 RETAINED EARNINGS ................................ 6,903,217 5,126,450 TOTAL STOCKHOLDERS' EQUITY .................... 8,881,693 7,050,899 ---------- ---------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY ............. 14,261,616 13,302,280 ---------- ----------
BALCHEM CORPORATION STATEMENT OF CASH FLOWS FOR THE PERIOD ENDING SEPTEMBER 30, 1996 AND SEPTEMBER 30, 1995 1996 1995 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES NET EARNINGS ................................ 1,427,099 1,125,659 ADJUSTMENT TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES DEFERRED TAXES .............................. (6,034) 52,909 DEPRECIATION & AMORTIZATION ................. 812,140 602,526 CHANGES IN ASSETS & LIABILITIES ACCOUNTS RECEIVABLE ......................... (91,229) (580,407) INVENTORIES ................................. (71,484) (324,695) PREPAID EXPENSES ............................ 366,020 199,521 ACCOUNTS PAYABLE ............................ (146,850) 46,623 INCOME TAX PAYABLE ......................... 25,015 (85,108) DEFERRED COMPENSATION ....................... 17,531 6,002 TOTAL ADJUSTMENTS ................................ 905,109 (82,629) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES ............................. 2,332,208 1,043,030 CASH FLOWS FROM INVESTING ACTIVITIES CAPITAL EXPENDITURES ........................ (353,909) (630,476) INVESTMENTS IN OTHER ASSETS ................ (500,157) (191,559) NET CASH USED IN INVESTING ACTIVITIES ............ (854,066) (822,035) CASH FLOWS FROM FINANCING ACTIVITIES NET BORROWINGS UNDER SHORT TERM REVOLVER .... 0 (405,000) NOTES PAYABLE ............................... (353,768) (201,920) NOTE PAYABLE LONG TERM ...................... (8,492) (7,650) PROCEEDS FROM LONG TERM BORROWINGS .......... 3,500,000 PRINCIPAL PAYMENT ON SHORT TERM DEBT ........ (447,167) PRINCIPAL PAYMENT ON LONG TERM DEBT ........ (942,000) (2,573,500) STOCK OPTIONS ............................... 6,702 5,592 DIVIDENDS PAYABLE ........................... (109,976) (85,802) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES ............................. (1,407,534) (215,447) INCREASE( DECREASE) IN CASH ...................... 70,608 5,548 CASH BEGINNING .................................. 150,679 40,445 CASH ENDING ..................................... 221,287 45,993
BALCHEM CORPORATION SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) INCOME STATEMENT FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED -------------------------- ------------------------- 9/30/96 9/30/95 % CHANGE 9/30/96 9/30/95 % CHANGE ------- ------- -------- ------- ------- -------- SALES & OTHER REVENUES 6,654,300 6,499,397 2.4% 19,736,497 18,263,213 8.1% COST OF SALES 3,380,967 3,558,186 10,091,307 9,879,366 % OF SALES 50.81% 54.75% -3.94% 51.13% 54.09% -2.96% INTEREST EXPENSE 61,742 84,200 205,062 262,191 % OF SALES 0.93% 1.30% -0.37% 1.04% 1.44% -0.40% OTHER EXPENSES 2,443,379 2,226,583 7,268,845 6,375,353 % OF SALES 36.72% 34.26% 2.46% 36.83% 34.91% 1.92% OPERATING COSTS AND EXPENSES 5,886,089 5,868,970 17,565,215 16,516,911 PRE - TAX OPERATING EARNINGS 768,211 630,427 2,171,282 1,746,302 % OF SALES 11.54% 9.70% 1.84% 11.00% 9.56% 1.44% INCOME TAXES 247,798 235,617 744,184 620,644 NET INCOME 520,413 394,810 1,427,098 1,125,658 % OF SALES 7.82% 6.07% 1.75% 7.23% 6.16% 1.07% NUMBER OF OUTSTANDING SHARES 3,143,828 3,121,395 3,143,828 3,121,395 EARNINGS PER SHARE 0.166 0.126 0.454 0.361 BALCHEM CORPORATION SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) INCOME STATEMENT (continued) FOR THE THREE MONTHS ENDED -------------------------- 9/30/96 6/30/96 % CHANGE ------- ------- -------- SALES & OTHER REVENUES 6,654,300 6,740,326 -1.3% COST OF SALES 3,380,967 3,503,206 % OF SALES 50.81% 51.97% -1.17% INTEREST EXPENSE 61,742 69,127 % OF SALES 0.93% 1.03% -0.10% OTHER EXPENSES 2,443,379 2,432,805 % OF SALES 36.72% 36.09% 0.63% OPERATING COSTS AND EXPENSES 5,886,089 6,005,139 PRE - TAX OPERATING EARNINGS 768,211 735,187 % OF SALES 11.54% 10.91% 0.64% INCOME TAXES 247,798 263,109 NET INCOME 520,413 472,078 % OF SALES 7.82% 7.00% 0.82% NUMBER OF OUTSTANDING SHARES 3,143,828 3,143,828 EARNINGS PER SHARE 0.166 0.150
MANAGEMENT DISCUSSION AND ANALYSIS REVENUES REVENUES INCREASED 2.4% FOR THE QUARTER ENDED 9/30/96 COMPARED TO THE QUARTER ENDED 9/30/95 AND 8.1% FOR THE THE NINE MONTHS ENDED 9/30/96 COMPARED TO 9/30/95 WHICH IS ATTRIBUTED TO INCREASED PURCHASES FROM ESTABLISHED CUSTOMER BASE. REVENUES DECREASED 1.3% FOR THE QUARTER ENDED 9/30/96 COMPARED TO THE QUARTER ENDED 6/30/96 DUE TO THE TIMING OF SHIPMENTS IN THE ENCAPSULATED BUSINESS. OPERATIONAL COSTS AND EXPENSES COST OF SALES DECREASED 3.94% ,AS A PERCENTAGE OF SALES, FOR THE QUARTER ENDED 9/30/96 AS COMPARED TO THE QUARTER ENDED ENDED 9/30/95 AND 1.17% ,AS A PERCENTAGE OF SALES, FOR THE QUARTER ENDED 9/30/96 COMPARING THE QUARTER ENDED 6/30/96. THE DOLLAR DECREASE IN THE COST OF SALES DURING THESE TIME FRAMES IS A RESULT OF SOME RAW MATERIAL PRICE DELINES AND IT ALSO REFLECTS THE ELIMINATION IN COSTS OF THE CONTRACT MANUFACTURING BUSINESS THAT CEASED ON JANUARY 1, 1996. COMPARING SEPTEMBER YTD 1996 VS. 1995,COST OF SALES INCREASED 2.1% BUT DECREASED 2.96% , AS A PERCENTAGE AS SALES, THE COST INCREASE IS ATTRIBUTED TO INCREASED DEPRECIATION EXPENSES ASSOCIATED WITH THE ELIMINATION OF THE CONTRACT MANUFACTURING BUSINESS AT THE GREEN POND, S,C, FACILITY. INTEREST EXPENSE DECREASED 26.7% OR .37%, AS A PERCENTAGE OF SALES, FOR THE QUARTER ENDED 9/30/96 AS COMPARED TO THE QUARTER ENDED 9/30/95; DECREASED 21.8% OR .40%, AS A PERCENTAGE OF SALES, FOR THE NINE MONTHS ENDED 9/30/96 AS COMPARED TO 9/30/95 AND DECREASED 12% OR .10% AS A PERCENTAGE OF SALES, FOR THE QUARTER ENDED 9/30/96 COMPARED TO THE QUARTER ENDED 6/30/96. THE REDUCTION IN INTEREST EXPENSE FOR THE AFOREMENTIONED PERIODS WAS THE RESULT OF ADDITIONAL PRINCIPAL PAYMENTS MADE AGAINST THE LONG-TERM DEBT OBLIGATION DURING THE SECOND AND THIRD QUARTERS OF 1996 AND THE RATE REDUCTION OBTAINED FROM AFFILIATED BANK IN 2Q '96. OTHER EXPENSES INCREASED 9.7% OR 2.46% , AS A PERCENTAGE OF SALES,FOR THE QUARTER ENDED 9/30/96 AS COMPARED TO THE QUARTER ENDED 9/30/95 INCREASED 14.0% OR 1.92%, AS A PERCENTAGE OF SALES, FOR THE NINE MONTHS ENDED 9/30/96 COMPARED TO 9/30/95 AND .43% OR .63% AS A PERCENTAGE OF SALES FOR THE QUARTER ENDED 9/30/96 AS COMPARED TO THE QUARTER ENDED 6/30/96. THE INCREASED EXPENSES COMPARING 1996 TO 1995 ARE A RESULT OF INCREASED STAFFING OF SENIOR MANAGEMENT AND SALES PROFESSIONALS, RECRUITING AND RELOCATION EXPENSES ASSOCIATED WITH SAME AND INCREASED SALES EXPENSES INCURRED FOR TRAVEL IN DOMESTIC AND INTERNATIONAL MARKETS. PRE-TAX EARNINGS AS A RESULT OF THE BUSINESS CONDITIONS PREVIOUSLY DESCRIBED, PRE-TAX EARNINGS INCREASED 21.9% OR 1.84%, AS A PERCENTAGE OF SALES, FOR THE QUARTER ENDED 9/30/96 COMPARED TO THE QUARTER ENDED 9/30/95; INCREASED 24.3% OR 1.44%, AS A PERCENTAGE OF SALES, FOR THE NINE MONTHS ENDED 9/30/96 COMPARED TO 9/30/95 AND INCREASED 4.5% OR .64%, AS A PERCENTAGE OF SALES, FOR THE QUARTER ENDED 9/30/96 AS COMPARED TO THE QUARTER ENDED 6/30/96. INVENTORIES INVENTORIES AS STATED FOR THE PERIOD 9/30/96 AND 9/30/95 WERE $1,944,322 AND $1,626,569, RESPECTIVELY,INCLUSIVE OF THE FOLLOWING BREAKDOWN:
1996 1995 ---- ---- RAW MATERIALS 1,154,658 810,179 FINISHED PRODUCT 789,664 816,390 WORK IN PROCESS 0 0 TOTAL INVENTORY 1,944,322 1,626,569
ADJUSTMENTS IN THE OPINION OF MANAGEMENT, THE ACCOMPANYING STATEMENTS ARE REPRESENTATIVE OF ALL THE ADJUSTMENTS TO FAIRLY PRESENT THE CONSOLIDATED POSITION AS OF SEPTEMBER 30, 1996 AND SEPTEMBER 30, 1995. SIGNATURE PURSUANT TO THE REQUIREMENT OF THE SECURITIES EXCHANGE ACT OF 1934 THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREWITH DULY AUTHORIZED. BALCHEM CORPORATION (REGISTRANT) DATED: NOVEMBER 11, 1996 BY: /s/Dino A. Rossi ---------------- DINO A. ROSSI VICE-PRESIDENT/ CHIEF FINANCIAL OFFICER EX-27 2
5 9-MOS DEC-31-1996 SEP-30-1996 221,287 0 3,236,721 0 1,944,322 5,730,580 14,297,288 6,935,755 14,261,616 2,848,430 0 0 0 209,589 8,672,104 8,881,693 6,654,300 6,654,300 3,380,967 5,886,089 2,443,379 0 61,742 768,211 247,798 520,413 0 0 0 520,413 .163 .162
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