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EX - 99.1 2 exhibit991 - q22021.htm EX - 99.1 Balchem Corporation Reports Record Second Quarter Sales of $ 202.4 Million , Net Earnings of $ 22.7 Million , GAAP EPS of $ 0.70 , and Adjusted EPS of $ 0.93 New Hampton , NY , July 30 , 2021 - Balchem Corporation ( NASDAQ : BCPC ) reported today record second quarter net earnings of $ 22.7 million for 2021 , compared to net earnings of $ 21.1 million for the second quarter 2020 , adjusted net earnings ( a ) of $ 30.4 million , compared to $ 27.6 million in the prior year quarter , and adjusted EBITDA ( a ) of $ 50.1 million , compared to $ 43.9 million in the prior year quarter . ● balchem Solve Today . Shape Tomorrow . Second Quarter 2021 Financial Highlights : Net sales were $ 202.4 million , an increase of $ 29.0 million , or 16.7 % , compared to the prior year quarter , with record sales in all three segments : Human Nutrition and Health , Animal Nutrition and Health , and Specialty Products . Adjusted EBITDA was $ 50.1 million , an increase of $ 6.3 million , or 14.3 % , from the prior year . GAAP net earnings were $ 22.7 million , an increase of $ 1.6 million , or 7.6 % from the prior year . These net earnings resulted in GAAP earnings per share of $ 0.70 . ● Exhibit 99.1 Human Nutrition & Health | Animal Nutrition & Health | Specialty Products Adjusted net earnings were $ 30.4 million , an increase of $ 2.8 million or 10.3 % from the prior year . These adjusted net earnings resulted in adjusted earnings per share ( a ) of $ 0.93 . The effective tax rate of 24.3 % was 561 basis point higher than the prior year tax rate of 18.7 % . Quarterly cash flows from operations were $ 35.8 million for the second quarter 2021 , with quarterly free cash flow of $ 28.4 million . Recent Highlights : In June , Balchem's Board of Directors elected Ms. Kathy Fish to fill a vacancy on the Board . Ms. Fish recently retired from the position of Chief Research , Development and Innovation Officer at The Procter & Gamble Company ( NYSE : PG ) . Over a long career at Procter & Gamble , Ms. Fish held various roles within the research and development function of increasing responsibility before leading the function from 2014 to 2020. Ms. Fish brings to the Balchem Board important new product development and direct to consumer expertise , along with her international business acumen and experience in driving a growth culture . Ms. Fish will serve on the Corporate Governance & Nominating Committee . We released our annual Sustainability Report in April in support of our Environmental , Social , and Corporate Governance ideals . We also disclosed our 2030 goals around emissions reduction and water conservation focused on reducing both greenhouse gas emissions and water use by 25 % . We are committed to operating with excellence as strong stewards of our stakeholders while providing innovative solutions for the health and nutritional needs of the world . In May , our Verona , Missouri plant experienced a flash flood event as a result of very localized storms in the southwest part of the state . The plant was shut down for several weeks as we repaired affected equipment , cleaned the site , and safely re - started activities . The negative direct financial impact to the quarter was approximately $ 3.8 million , primarily due to the write off of damaged inventory and the costs associated with external service providers used for the clean - up efforts . Customer requirements were largely satisfied through inventory on hand and by leveraging alternate and redundant manufacturing capabilities across our supply chain . The manufacturing site is now fully operational and we have filed a related insurance claim with the expectation to partially offset these expenses with future insurance recoveries . 52 Sunrise Park Road New Hampton , NY 10958 Strong cash flows in the second quarter enabled the company to make repayments on its revolving debt of $ 30.0 million , lowering net debt to $ 43.7 million , with an overall leverage ratio on a net debt basis of 0.2 . balchem.com p.845.326.5600 f . 845.326.5702