false000000932600000093262024-10-252024-10-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM8-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): October 25, 2024

Balchem Corporation
(Exact name of registrant as specified in its charter)
Maryland1-1364813-2578432
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)

5 Paragon Drive, Montvale, NJ 07645
(Address of principal executive offices) (Zip Code)

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Common Stock, par value $.06-2/3 per shareBCPCThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☐




Item 2.02     Results of Operations and Financial Condition

On October 25, 2024, Balchem Corporation, reported earnings for the quarter ended September 30, 2024, and certain other information. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1.

The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01Financial Statements and Exhibits
(d)Exhibits
Exhibit No.Description
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 BALCHEM CORPORATION
  
 By:/s/ Hatsuki Miyata 
 Hatsuki Miyata
 General Counsel and Secretary
Date: October 25, 2024

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Exhibit 99.1
Human Nutrition & Health | Animal Nutrition & Health | Specialty Products

Balchem Corporation Reports Third Quarter 2024 Financial Results

Montvale, NJ, October 25, 2024 - Balchem Corporation (NASDAQ: BCPC) reported today financial results for its 2024 fiscal third quarter ended September 30, 2024. For the quarter, the Company reported net sales of $239.9 million, net earnings of $33.8 million, adjusted EBITDA(a) of $64.4 million, and free cash flow(a) of $42.2 million.

Ted Harris, Chairman, President and CEO of Balchem said, “We delivered strong third quarter financials with solid revenue growth and record earnings from operations and adjusted EBITDA. We continue to see excellent performance in our Human Nutrition and Health and Specialty Products segments, both delivering strong sales and earnings growth.”

Third Quarter 2024 Financial Highlights:
•Net sales were $239.9 million, an increase of 4.3% compared to the prior year quarter.
•Adjusted EBITDA was a record $64.4 million, an increase of 7.6% from the prior year quarter.
•GAAP net earnings were $33.8 million, an increase of 16.4% from the prior year quarter.
•GAAP earnings per share of $1.03 compared to $0.90 in the prior year quarter and record adjusted earnings per share(a) of $1.13 compared to $1.04 in the prior year quarter.
•Cash flows from operations were $51.3 million for the third quarter of 2024, with quarterly free cash flow(a) of $42.2 million.
•Strong sales growth and earnings from operations in both our Human Nutrition and Health and Specialty Products segments.

Recent Highlights:
•Balchem’s Human Nutrition and Health segment continued to bring innovative new products to its minerals and nutrients portfolio with two new solutions, K2Vital® Delta Fermented and VitaCholine® Pro-Flo. K2Vital® Delta Fermented is a vitamin K2 from fermentation in a patented microencapsulated form, and VitaCholine® Pro-Flo is an enhanced formulation designed for inclusion in multivitamins.
•Balchem’s Animal Nutrition and Health segment launched a newly developed product, AminoShure®-XL, which is a next generation rumen protected precision release lysine solution designed to consistently, reliably, and economically meet the lysine amino acid dietary requirements of lactating dairy cattle. AminoShure®-XL offers leading performance when considering feed stability, lysine content, and bioavailability compared to other products in the market and is a great addition to the Animal Nutrition and Health segment’s portfolio of high performing encapsulated products focused on optimizing dairy cow productivity and sustainability.
•Strong cash flows in the third quarter enabled us to make repayments on our revolving debt of $39.6 million, bringing our net debt to $153.3 million, with an overall leverage ratio on a net debt basis of 0.6 times.

Mr. Harris said, “I am excited about the recent product launches in both our Human and Animal Nutrition and Health segments which add to the previously announced launch of Optifolin+® earlier this year, as we continue to focus on bringing innovative solutions for the health and nutritional needs of the world.”

Mr. Harris continued, “I am very pleased with our year-to-date 2024 financial performance as well as the progress we continue to make on our strategic growth initiatives which will help fuel our longer term growth.”

5 Paragon Drive
Montvale, NJ 07645

balchem.com
p.845.326.5600
f. 845.326.5702


Balchem Corporation (NASDAQ:BCPC)

Results for Period Ended September 30, 2024 (unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Net sales $239,940 $229,948 $713,680 $693,740 
Gross margin85,361 76,544 249,869 227,063 
Operating expenses37,369 32,930 114,404 106,205 
Earnings from operations47,992 43,614 135,465 120,858 
Interest and other expenses4,099 7,139 13,496 16,864 
Earnings before income tax expense43,893 36,475 121,969 103,994 
Income tax expense 10,056 7,400 27,077 22,099 
Net earnings $33,837 $29,075 $94,892 $81,895 
Diluted net earnings per common share$1.03 $0.90 $2.90 $2.52 
Adjusted EBITDA(a)
$64,379 $59,807 $187,515 $175,481 
Adjusted net earnings(a)
$36,928 $33,795 $106,089 $98,817 
Adjusted net earnings per common share(a)
$1.13 $1.04 $3.25 $3.05 
Shares used in the calculations of diluted and adjusted net
   earnings per common share		32,783 32,476 32,686 32,440 
(a)
See “Non-GAAP Financial Information” for a reconciliations of GAAP and non-GAAP financial measures.


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Balchem Corporation (NASDAQ:BCPC)

Financial Results for the Third Quarter of 2024:
The Human Nutrition and Health segment generated sales of $152.3 million, an increase of $7.8 million, or 5.4%, compared to the prior year quarter. The increase was primarily driven by higher sales within both the minerals and nutrients business and the food and beverage markets. Record earnings from operations for this segment of $35.6 million increased $4.3 million, or 13.8%, compared to $31.3 million in the prior year quarter, primarily due to the aforementioned higher sales and a favorable mix, partially offset by higher operating expenses. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, adjusted earnings from operations(a) for this segment were $39.0 million, compared to $35.5 million in the prior year quarter, an increase of 9.7%.
The Animal Nutrition and Health segment generated quarterly sales of $52.9 million, a decrease of $1.0 million, or 1.9%, compared to the prior year quarter. The decrease was driven by lower sales in the monogastric species markets, partially offset by higher sales in the ruminant species markets. Third quarter earnings from operations for this segment of $3.5 million decreased $1.5 million, or 30.4%, compared to $5.1 million in the prior year quarter, primarily due to the aforementioned lower sales and higher operating expenses. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, adjusted earnings from operations for this segment were $4.0 million compared to $5.1 million in the prior year quarter, a decrease of 21.2%.
The Specialty Products segment generated quarterly sales of $33.2 million, an increase of $3.2 million, or 10.6%, compared to the prior year quarter, due to higher sales in both the performance gases business and the plant nutrition business. Earnings from operations for this segment were $10.5 million, compared to $8.7 million in the prior year comparable quarter, an increase of $1.8 million, or 20.3%, primarily driven by the aforementioned higher sales and a favorable mix, partially offset by higher operating expenses. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, adjusted earnings from operations for this segment were $11.7 million, compared to $9.8 million in the prior year quarter, an increase of 18.9%.
Record quarterly consolidated gross margin of $85.4 million increased by $8.8 million, or 11.5%, compared to $76.5 million for the prior year comparable period. Gross margin as a percentage of sales was 35.6% as compared to 33.3% in the prior year period, an increase of 230 basis points, primarily due to a favorable mix. Operating expenses of $37.4 million for the quarter increased $4.4 million from the prior year comparable quarter, primarily due to higher compensation-related costs and transaction costs, partially offset by lower amortization.
Net interest expense was $4.1 million and $6.6 million in the third quarters of 2024 and 2023, respectively. The decrease in interest expense was primarily due to lower outstanding borrowings. Our effective tax rates for the three months ended September 30, 2024 and 2023 were 22.9% and 20.3%, respectively. The higher effective tax rate was primarily due to lower tax benefits from stock-based compensation and certain higher U.S. state taxes.
Third quarter cash flows provided by operating activities were $51.3 million and free cash flow was $42.2 million. The $216.5 million of net working capital on September 30, 2024 included a cash balance of $73.7 million. Significant cash payments during the quarter included repayments on the revolving loan of $39.6 million, income taxes paid of $12.4 million, and capital expenditures and intangible assets acquired of $9.1 million.
Ted Harris said, “The Balchem team delivered another strong quarter, once again highlighting the resilience of our business model in what continues to be a challenging market environment. We remain confident in the long-term growth outlook for our company as we continue to focus on progressing our strategic growth initiatives over the course of the remainder of 2024 and beyond.”

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Balchem Corporation (NASDAQ:BCPC)

Quarterly Conference Call

A quarterly conference call will be held on Friday, October 25, 2024, at 11:00 AM Eastern Time (ET) to review third quarter 2024 results. Ted Harris, Chairman, President and CEO and Martin Bengtsson, CFO will host the call. We invite you to listen to the conference by calling toll-free 1-877-407-8289 (local dial-in 1-201-689-8341), five minutes prior to the scheduled start time of the conference call. The conference call will be available for replay three hours after the conclusion of the call through end of day Friday, November 8, 2024. To access the replay of the conference call, dial 1-877-660-6853 (local dial-in 1-201-612-7415), and use conference ID #13749359.


Segment Information

Balchem Corporation reports three business segments: Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products. The Human Nutrition and Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition and Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market. Sales and production of products outside of our reportable segments and other minor business activities are included in "Other and Unallocated".


Forward-Looking Statements

This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our expectation or belief concerning future events that involve risks and uncertainties. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," “likely,” "estimate," "forecast," "outlook," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," or the negative thereof or variations thereon or similar expressions generally intended to identify forward-looking statements. Actions and performance could differ materially from what is contemplated by the forward-looking statements contained in this release. Factors that might cause differences from the forward-looking statements include those referred to or identified in Balchem’s Annual Report on Form 10-K for the year ended December 31, 2023 and other factors that may be identified elsewhere in this release or in our other SEC filings. Reference should be made to such factors and all forward-looking statements are qualified in their entirety by the above cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: Jacqueline Yarmolowicz, Balchem Corporation (Telephone: 845-326-5600)
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Balchem Corporation (NASDAQ:BCPC)

Selected Financial Data (unaudited)
($ in 000’s)
Business Segment Net Sales:Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Human Nutrition and Health$152,283 $144,455 $452,955 $412,777 
Animal Nutrition and Health52,906 53,944 156,384 180,162 
Specialty Products33,191 30,004 99,898 94,961 
Other and Unallocated (b)
1,560 1,545 4,443 5,840 
Total$239,940 $229,948 $713,680 $693,740 

Business Segment Earnings Before Income Taxes:Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Human Nutrition and Health$35,578 $31,275 $102,202 $77,209 
Animal Nutrition and Health3,529 5,070 8,282 22,230 
Specialty Products10,516 8,740 29,943 25,984 
Other and Unallocated (b)
(1,631)(1,471)(4,962)(4,565)
Interest and other expenses(4,099)(7,139)(13,496)(16,864)
Total$43,893 $36,475 $121,969 $103,994 
(b) Other and Unallocated consists of a few minor businesses which individually do not meet the quantitative thresholds for separate presentation and corporate expenses that have not been allocated to a segment. Unallocated corporate expenses consist of: (i) Transaction and integration costs of $223 and $795 for the three and nine months ended September 30, 2024, respectively, and $384 and $1,600 for the three and nine months ended September 30, 2023, respectively, and (ii) Unallocated amortization expense of $0 and $0 for the three and nine months ended September 30, 2024, respectively, and $0 and $312 for the three and nine months ended September 30, 2023, respectively, related to an intangible asset in connection with a company-wide ERP system implementation.

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Balchem Corporation (NASDAQ:BCPC)
Selected Balance Sheet Items
(Dollars in thousands)September 30, 2024December 31, 2023
(unaudited)
Cash and Cash Equivalents$73,694 $64,447 
Accounts Receivable, net 120,537 125,284 
Inventories 118,510 109,521 
Other Current Assets13,247 14,990 
Total Current Assets 325,988 314,242 
Property, Plant and Equipment, net 277,429 276,039 
Goodwill781,109 778,907 
Intangible Assets with Finite Lives, net177,525 191,212 
Right of Use Assets17,330 19,864 
Other Assets 17,563 16,947 
Total Non-current Assets1,270,956 1,282,969 
Total Assets $1,596,944 $1,597,211 
Current Liabilities$109,439 $148,491 
Revolving Loan227,000 309,569 
Deferred Income Taxes50,460 52,046 
Other Long-Term Obligations32,819 33,121 
Total Liabilities419,718 543,227 
Stockholders' Equity1,177,226 1,053,984 
Total Liabilities and Stockholders' Equity$1,596,944 $1,597,211 

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Balchem Corporation (NASDAQ:BCPC)

Balchem Corporation
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(unaudited)
Nine Months Ended September 30,
20242023
Cash flows from operating activities:
   Net earnings $94,892 $81,895 
   Adjustments to reconcile net earnings to net cash provided by operating
      activities:
        Depreciation and amortization37,077 40,878 
        Stock compensation expense 12,787 12,267 
        Other adjustments (1,022)(6,241)
        Changes in assets and liabilities(14,052)(12,444)
  Net cash provided by operating activities129,682 116,355 
 
Cash flows from investing activities:
   Capital expenditures and intangible assets acquired(22,936)(26,177)
   Cash paid for acquisitions, net of cash acquired— (1,252)
   Proceeds from the sale of assets272 1,881 
   Proceeds from settlement of net investment hedge— 2,740 
   Investment in affiliates(113)(140)
  Net cash used in investing activities(22,777)(22,948)
Cash flows from financing activities:
   Proceeds from revolving loan26,000 18,000 
   Principal payments on revolving loan(108,569)(78,000)
   Principal payments on finance lease(169)(166)
   Proceeds from stock options exercised15,084 3,888 
   Dividends paid(25,572)(22,872)
   Purchase of common stock(5,376)(4,025)
  Net cash used in financing activities(98,602)(83,175)
   Effect of exchange rate changes on cash944 160 
Increase in cash and cash equivalents9,247 10,392 
Cash and cash equivalents, beginning of period64,447 66,560 
Cash and cash equivalents, end of period$73,694 $76,952 

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Balchem Corporation (NASDAQ:BCPC)

Non-GAAP Financial Information

In addition to disclosing financial results in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains non-GAAP financial measures that we believe are helpful in understanding and comparing our past financial performance and our future results. The non-GAAP financial measures in this press release include adjusted gross margin, adjusted earnings from operations, adjusted net earnings and the related adjusted per diluted share amounts, EBITDA, adjusted EBITDA, adjusted income tax expense, and free cash flow. The non-GAAP financial measures disclosed by the company exclude certain business combination accounting adjustments and certain other items related to acquisitions, certain equity compensation, nonqualified deferred compensation plan expense (income), and certain one-time or unusual transactions. Detailed non-GAAP adjustments are described in the reconciliation tables below and also explained in the related footnotes. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Investors should not consider non-GAAP measures as alternatives to the related GAAP measures.

Set forth below are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
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Balchem Corporation (NASDAQ:BCPC)


Table 1
(unaudited)
Reconciliation of Non-GAAP Measures to GAAP
(Dollars in thousands, except per share data)

Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Reconciliation of adjusted gross margin
GAAP gross margin$85,361 $76,544 $249,869 $227,063 
Inventory valuation adjustment (1)
— — — 1,419 
Amortization of intangible assets and finance lease (2)
693 675 2,104 2,018 
Restructuring costs (3)
— 295 — 415 
Adjusted gross margin$86,054 $77,514 $251,973 $230,915 
Reconciliation of adjusted earnings from operations
GAAP earnings from operations$47,992 $43,614 $135,465 $120,858 
Inventory valuation adjustment (1)
— — — 1,419 
Amortization of intangible assets and finance lease (2)
3,854 7,008 15,559 21,310 
Restructuring costs (3)
521 1,913 521 8,179 
Transaction and integration costs (4)
223 (3,116)704 (8,300)
Impairment charge (5)
255 — 255 — 
Nonqualified deferred compensation plan expense (6)
406 (86)922 395 
Adjusted earnings from operations$53,251 $49,333 $153,426 $143,861 
Reconciliation of adjusted net earnings
GAAP net earnings$33,837 $29,075 $94,892 $81,895 
Inventory valuation adjustment (1)
— — — 1,419 
Amortization of intangible assets and finance lease (2)
3,926 7,080 15,775 21,526 
Restructuring costs (3)
521 1,913 521 8,179 
Transaction and integration costs (4)
223 (3,116)704 (8,300)
Impairment charge (5)
255 — 255 — 
Income tax adjustment (7)
(1,834)(1,157)(6,058)(5,902)
Adjusted net earnings$36,928 $33,795 $106,089 $98,817 
Adjusted net earnings per common share - diluted$1.13 $1.04 $3.25 $3.05 

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Balchem Corporation (NASDAQ:BCPC)

Table 2
(unaudited)

Reconciliation of GAAP Net Earnings to EBITDA and to Adjusted EBITDA
(Dollars in thousands)

Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Net earnings - as reported$33,837 $29,075 $94,892 $81,895 
Add back:
Provision for income taxes 10,056 7,400 27,077 22,099 
Interest and other expenses 4,099 7,139 13,496 16,864 
Depreciation and amortization 10,831 13,733 36,861 40,663 
EBITDA 58,823 57,347 172,326 161,521 
Add back:
Non-cash compensation expense related to equity awards4,151 3,749 12,787 12,267 
Inventory valuation adjustment (1)
— — — 1,419 
Restructuring costs (3)
521 1,913 521 8,179 
Transaction and integration costs (4)
223 (3,116)704 (8,300)
Impairment charge (5)
255 — 255 — 
Nonqualified deferred compensation plan expense (6)
406 (86)922 395 
Adjusted EBITDA$64,379 $59,807 $187,515 $175,481 


Table 3
(unaudited)

Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Effective Income Tax Rate
(Dollars in thousands)

Three Months Ended September 30,
2024Effective Tax Rate2023Effective Tax Rate
GAAP Income Tax Expense$10,056 22.9 %$7,400 20.3 %
Impact of ASU 2016-09 (8)
625 19 
Adjusted Income Tax Expense $10,681 24.3 %$7,419 20.3 %


Nine Months Ended September 30,
2024Effective Tax Rate2023Effective Tax Rate
GAAP Income Tax Expense$27,077 22.2 %$22,099 21.3 %
Impact of ASU 2016-09 (8)
1,952 863 
Adjusted Income Tax Expense $29,029 23.8 %$22,962 22.1 %

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Balchem Corporation (NASDAQ:BCPC)

Table 4
(unaudited)

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
(Dollars in thousands)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Net cash provided by operating activities$51,302 $46,526 $129,682 $116,355 
Capital expenditures, proceeds from the sale of assets,
   and settlement of net investment hedge		(9,065)(8,320)(22,240)(21,212)
Free cash flow$42,237 $38,206 $107,442 $95,143 


(1) Inventory valuation adjustment: Business combination accounting principles require us to measure acquired inventory at fair value. The fair value of inventory reflects the acquired company's cost of manufacturing plus a portion of the expected profit margin. The non-GAAP adjustment to our cost of sales excludes the expected profit margin component that is recorded under business combination accounting principles. We believe the adjustment is useful to investors as an additional means to reflect cost of sales and gross margin trends of our business.
(2) Amortization of intangible assets and finance lease: Amortization of intangible assets and finance lease consists of amortization of customer relationships, trademarks and trade names, developed technology, regulatory registration costs, patents and trade secrets, capitalized loan issuance costs, other intangibles acquired primarily in connection with business combinations, an intangible asset in connection with a company-wide ERP system implementation, and one finance lease. We record expense relating to the amortization of these intangibles and finance lease in our GAAP financial statements. Amortization expenses for our intangible assets and finance lease are inconsistent in amount and are significantly impacted by the timing and valuation of an acquisition. Consequently, our non-GAAP adjustments exclude these expenses to facilitate an evaluation of our current operating performance and comparisons to our past operating performance.
(3) Restructuring costs: Expenses related to a reorganization of the business. The restructuring costs are included in our GAAP financial statements. Management excludes these items for the purposes of calculating Adjusted EBITDA and other non-GAAP financial measures. We believe that excluding these items from our non-GAAP financial measures is useful to investors because they are inconsistent in amounts and frequency causing comparison of current and historical financial results to be difficult.
(4) Transaction and integration costs: Transaction and integration costs related to acquisitions and divestitures are expensed in our GAAP financial statements. Management excludes these items for the purposes of calculating Adjusted EBITDA and other non-GAAP financial measures. We believe that excluding these items from our non-GAAP financial measures is useful to investors because these are items associated with transactions that are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult.
(5) Impairment charge: An asset impairment charge in 2024 was related to the write off of an equity method investment. The impairment charge is included in our GAAP financial statements. Management excludes this item for the purposes of calculating Adjusted EBITDA and other non-GAAP financial measures. We believe that excluding this item from our non-GAAP financial measures is useful to investors because it is inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult.
(6) Nonqualified deferred compensation plan (income) expense: Gains and losses on rabbi trust assets related to our nonqualified deferred compensation plan are recorded in other (income) expense while the offsetting increases or decreases to the deferred compensation liability are recorded within earnings from operations. The increases and decreases in the deferred compensation liability are driven by market volatility and are not a true reflection of company performance. We believe excluding these amounts from our non-GAAP financial measures is useful to investors because these items are inconsistent in amount based on market conditions causing comparison of current and historical financial results to be difficult. Adjustments have been made to the prior period presentation to conform with the current period presentation.
(7) Income tax adjustment: For purposes of calculating adjusted net earnings and adjusted diluted earnings per share, we adjust the provision for (benefit from) income taxes to tax effect the taxable and deductible non-GAAP adjustments described above as they have a significant impact on our income tax (benefit) provision. Additionally, the income tax adjustment is adjusted for the impact of adopting ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” and uses our non-GAAP effective rate applied to both our GAAP earnings before income tax expense and non-GAAP adjustments described above. See Table 3 for the calculation of our non-GAAP effective tax rate.
(8) Impact of ASU 2016-09: The primary impact of ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), was the recognition during the three and nine months ended September 30, 2024 and 2023, of excess tax benefits as a reduction to the provision for income taxes and the classification of these excess tax benefits in operating activities in the consolidated statement of cash flows instead of financing activities. Management excludes this item for the purpose of calculating Adjusted Income Tax Expense. We believe that excluding the item in our non-GAAP financial measures is useful to investors because it is inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult.

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v3.24.3
Cover
Oct. 25, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 25, 2024
Entity Registrant Name Balchem Corp
Entity Incorporation, State or Country Code MD
Entity File Number 1-13648
Entity Tax Identification Number 13-2578432
Entity Address, Address Line One 5 Paragon Drive
Entity Address, City or Town Montvale
Entity Address, State or Province NJ
Entity Address, Postal Zip Code 07645
City Area Code 845
Local Phone Number 326-5600
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $.06-2/3 per share
Trading Symbol BCPC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000009326
Balchem (NASDAQ:BCPC)
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