bcpc-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission file number: 1-13648

_______________________________________________________________________________________________________________

Balchem Corporation

(Exact name of Registrant as specified in its charter)


Maryland						13-2578432
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

52 Sunrise Park Road, New Hampton, NY 10958

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (845) 326-5600

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, par value $.06-2/3 per share	BCPC	Nasdaq Global Market

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 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 ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

(Check one):

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of April 21, 2022, the registrant had 32,116,459 shares of its Common Stock, $.06 2/3 par value, outstanding.

Table of Contents

BALCHEM CORPORATION

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

Page No.

PART I

FINAN CIAL INFORMATION

Item 1.

Financial Statements (unaudited)

Condensed Consolidated Balance Sheets as of March 31, 202 2 and December 31, 202 1

Condensed Consolidated Statements of Earnings for the Three Months Ended March 31, 202 2 and 202 1

Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 202 2 and 202 1

Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended March 31, 202 2 and 202 1

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 202 2 and 202 1

Notes to Condensed Consolidated Financial Statements

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

Issuer Purchase of Equity Securities

Part I. Financial Information

Item 1. Financial Statements

BALCHEM CORPORATION

Condensed Consolidated Balance Sheets

(Dollars in thousands, except share and per share data)


Assets	March 31, 2022 (unaudited)		December 31, 2021
Current assets:
Cash and cash equivalents	$	64,466	$	103,239
Accounts receivable, net of allowance for doubtful accounts of $1,164 and $928 at March 31, 2022 and December 31, 2021 respectively	136,974		117,408
Inventories, net	108,411		91,058
Prepaid expenses	5,383		6,116
Other current assets	4,570		4,411
Total current assets	319,804		322,232

Property, plant and equipment, net	240,419		237,517

Goodwill	522,587		523,949
Intangible assets with finite lives, net	88,525		94,665
Right of use assets - operating leases	6,901		6,929
Right of use assets - finance lease	2,308		2,359
Derivative assets	882		—
Other assets	13,482		11,674
Total assets	$	1,194,908	$	1,199,325

Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable	$	46,819	$	56,243
Accrued expenses	53,957		43,411
Accrued compensation and other benefits	10,325		19,567
Dividends payable	129		20,886
Income taxes payable	9,936		1,334
Operating lease liabilities - current	2,194		2,194
Finance lease liabilities - current	169		167
Total current liabilities	123,529		143,802

Revolving loan	128,569		108,569
Deferred income taxes	47,033		46,455
Operating lease liabilities - non-current	4,730		4,811
Finance lease liabilities - non-current	2,260		2,303
Derivative liabilities	—		2,658
Other long-term obligations	15,105		13,712
Total liabilities	321,226		322,310
Commitments and contingencies (Note 15)
Stockholders' equity:
Preferred stock, $25 par value. Authorized 2,000,000 shares; none issued and outstanding	—		—
Common stock, $

SEC Form 10-Q filed by Balchem Corporation