Balchem(BCPC) - 2024 Q4 - Annual Results

Financial Performance - Record net sales of $240.0 million for Q4 2024, an increase of$ 11.3 million or 4.9% year-over-year[4] - GAAP net earnings for Q4 2024 were $33.6 million, reflecting a 26.0% increase from the prior year quarter[4] - Adjusted EBITDA reached a record$ 62.8 million in Q4 2024, up 13.4% compared to the same quarter last year[4] - Full year 2024 net sales totaled $953.7 million, an increase of$ 31.2 million or 3.4% year-over-year[4] - Adjusted net earnings for the full year 2024 were $143.0 million, a 10.2% increase from the prior year[4] - Net earnings for the year ended December 31, 2024, were$ 128,475, representing an 18.4% increase compared to $108,543 in 2023[21] - Adjusted net earnings for the year ended December 31, 2024, were$ 142,965, a 10.2% increase from $129,718 in 2023[25] Segment Performance - The Human Nutrition & Health segment generated Q4 sales of$ 147.3 million, a 6.8% increase from the prior year quarter[7] - The Animal Nutrition & Health segment reported Q4 sales of $58.3 million, a slight increase of 0.3% year-over-year[7] - The Specialty Products segment achieved Q4 sales of$ 32.9 million, an increase of 6.0% compared to the prior year quarter[8] - Human Nutrition & Health segment reported earnings before income taxes of $33,755 for the three months ended December 31, 2024, up 33.5% from$ 25,210 in 2023[18] Cash Flow and Capital Expenditures - Free cash flow for Q4 2024 was $39.8 million, with cash flows from operations at$ 52.3 million[11] - Net cash provided by operating activities for Q4 2024 was $52,317 million, a decrease from$ 67,406 million in Q4 2023[30] - Free cash flow for Q4 2024 was $39,768 million, down from$ 55,965 million in Q4 2023[30] - Total net cash provided by operating activities for the year ended December 31, 2024 was $181,999 million, slightly down from$ 183,761 million in 2023[30] - Capital expenditures for the year ended December 31, 2024, were $35,661, slightly down from$ 37,892 in 2023[21] - Capital expenditures for Q4 2024 were $(12,549) million, compared to$ (11,441) million in Q4 2023[30] Debt and Balance Sheet - The company paid down $119.6 million of debt during 2024, strengthening its balance sheet[3] - Total assets decreased to$ 1,575,371 as of December 31, 2024, down from $1,597,211 in 2023[19] - Cash and cash equivalents decreased to$ 49,515 at the end of 2024, down from $64,447 at the end of 2023[19] Tax and Other Costs - The effective tax rate for GAAP income tax expense was 24.5% for the three months ended December 31, 2024, compared to 19.9% in 2023[28] - The company incurred transaction and integration costs of$ 689 for the three months ended December 31, 2024, compared to a benefit of $(1,383) in the same period of 2023[25] Adjusted Measures and Non-GAAP Information - Adjusted EBITDA calculations exclude restructuring costs, transaction and integration costs, and impairment charges to provide a clearer view of operating performance[30] - The company noted that amortization of intangible assets and finance lease expenses are inconsistent and excluded from non-GAAP measures for better performance evaluation[30] - The company believes that excluding inconsistent items from non-GAAP measures is useful for investors to compare current and historical financial results[30]