☒ |
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
☐ |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Maryland
|
13-2578432
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
52 Sunrise Park Road, New Hampton, New York
|
10958
|
|
(Address of principal executive offices)
|
(Zip Code)
|
845-326-5600
|
||
Registrant’s telephone number, including area code:
|
Yes ☑
|
No ☐
|
Yes ☑
|
No ☐
|
Large accelerated filer ☑
|
Accelerated filer ☐
|
|
Non-accelerated filer ☐
|
Smaller reporting company☐
|
Emerging growth company☐
|
Yes ☐ No ☑
|
Part I.
|
Financial Information
|
Item 1.
|
Financial Statements
|
Assets
|
June 30, 2018
(unaudited)
|
December 31,
2017
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
62,476
|
$
|
40,416
|
||||
Accounts receivable, net of allowance for doubtful accounts of $507 and $431 at June 30, 2018 and
December 31, 2017, respectively
|
98,595
|
91,226
|
||||||
Inventories
|
70,071
|
60,696
|
||||||
Prepaid expenses
|
4,923
|
4,774
|
||||||
Prepaid income taxes
|
2,600
|
-
|
||||||
Assets held for sale
|
237
|
-
|
||||||
Other current assets
|
2,235
|
2,224
|
||||||
Total current assets
|
241,137
|
199,336
|
||||||
Property, plant and equipment, net
|
184,767
|
189,793
|
||||||
Goodwill
|
441,554
|
441,361
|
||||||
Intangible assets with finite lives, net
|
115,873
|
128,073
|
||||||
Other assets
|
6,136
|
5,073
|
||||||
Total assets
|
$
|
989,467
|
$
|
963,636
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Trade accounts payable
|
$
|
30,079
|
$
|
28,451
|
||||
Accrued expenses
|
21,206
|
22,930
|
||||||
Accrued compensation and other benefits
|
9,308
|
8,531
|
||||||
Dividends payable
|
39
|
13,484
|
||||||
Current portion of long-term debt
|
-
|
35,000
|
||||||
Total current liabilities
|
60,632
|
108,396
|
||||||
Revolving loan
|
210,750
|
-
|
||||||
Long-term debt
|
-
|
183,964
|
||||||
Deferred income taxes
|
48,547
|
48,548
|
||||||
Other long-term obligations
|
6,318
|
5,847
|
||||||
Total liabilities
|
326,247
|
346,755
|
||||||
Commitments and contingencies (note 16)
|
||||||||
Stockholders' equity:
|
||||||||
Preferred stock, $25 par value. Authorized 2,000,000 shares; none issued and outstanding
|
-
|
-
|
||||||
Common stock, $.0667 par value. Authorized 120,000,000 shares; 32,213,094 shares issued and 32,208,686 outstanding at June 30, 2018 and 32,019,605 shares issued and outstanding at
December 31, 2017
|
2,148
|
2,135
|
||||||
Additional paid-in capital
|
161,005
|
151,749
|
||||||
Retained earnings
|
503,665
|
464,639
|
||||||
Accumulated other comprehensive loss
|
(3,161
|
)
|
(1,642
|
)
|
||||
Treasury stock, at cost: 4,408 and 0 shares at June 30, 2018 and December 31, 2017, respectively
|
(437
|
)
|
-
|
|||||
Total stockholders' equity
|
663,220
|
616,881
|
||||||
Total liabilities and stockholders' equity
|
$
|
989,467
|
$
|
963,636
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Net sales
|
$
|
163,687
|
$
|
147,082
|
$
|
325,097
|
$
|
284,810
|
||||||||
Cost of sales
|
110,221
|
100,321
|
220,172
|
193,620
|
||||||||||||
Gross margin
|
53,466
|
46,761
|
104,925
|
91,190
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Selling expenses
|
14,495
|
13,569
|
28,554
|
27,281
|
||||||||||||
Research and development expenses
|
3,230
|
2,280
|
5,799
|
4,095
|
||||||||||||
General and administrative expenses
|
8,122
|
6,081
|
15,541
|
12,280
|
||||||||||||
25,847
|
21,930
|
49,894
|
43,656
|
|||||||||||||
Earnings from operations
|
27,619
|
24,831
|
55,031
|
47,534
|
||||||||||||
Other expenses (income):
|
||||||||||||||||
Interest income
|
(3
|
)
|
(2
|
)
|
(5
|
)
|
(3
|
)
|
||||||||
Interest expense
|
2,268
|
1,891
|
4,144
|
3,690
|
||||||||||||
Other, net
|
293
|
382
|
654
|
578
|
||||||||||||
Earnings before income tax expense
|
25,061
|
22,560
|
50,238
|
43,269
|
||||||||||||
Income tax expense
|
5,382
|
6,024
|
11,213
|
11,216
|
||||||||||||
Net earnings
|
$
|
19,679
|
$
|
16,536
|
$
|
39,025
|
$
|
32,053
|
||||||||
Net earnings per common share - basic
|
$
|
0.61
|
$
|
0.52
|
$
|
1.22
|
$
|
1.01
|
||||||||
Net earnings per common share - diluted
|
$
|
0.61
|
$
|
0.51
|
$
|
1.21
|
$
|
1.00
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Net earnings
|
$
|
19,679
|
$
|
16,536
|
$
|
39,025
|
$
|
32,053
|
||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||
Net foreign currency translation adjustment
|
(2,911
|
)
|
2,697
|
(1,548
|
)
|
3,238
|
||||||||||
Net change in postretirement benefit plans, net of taxes of $(0) and $(4) for the three months ended
June 30, 2018 and 2017, and $(4) and $(9) for the six months ended June 30, 2018 and 2017.
|
16
|
11
|
29
|
21
|
||||||||||||
Other comprehensive (loss)/income
|
(2,895
|
)
|
2,708
|
(1,519
|
)
|
3,259
|
||||||||||
Comprehensive income
|
$
|
16,784
|
$
|
19,244
|
$
|
37,506
|
$
|
35,312
|
Six Months Ended
June 30,
|
||||||||
2018
|
2017
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
39,025
|
$
|
32,053
|
||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
22,426
|
22,083
|
||||||
Stock compensation expense
|
3,459
|
2,885
|
||||||
Deferred income taxes
|
(179
|
)
|
(11
|
)
|
||||
Provision for doubtful accounts
|
(50
|
)
|
170
|
|||||
Foreign currency transaction (gain)/loss
|
(137
|
)
|
218
|
|||||
Asset impairment charge
|
979
|
-
|
||||||
(Gain)/loss on disposal of assets
|
(551
|
)
|
188
|
|||||
Changes in assets and liabilities
|
||||||||
Accounts receivable
|
(7,560
|
)
|
1,917
|
|||||
Inventories
|
(9,565
|
)
|
(1,990
|
)
|
||||
Prepaid expenses and other current assets
|
(724
|
)
|
(1,732
|
)
|
||||
Accounts payable and accrued expenses
|
754
|
(7,575
|
)
|
|||||
Income taxes
|
(1,958
|
)
|
(2,628
|
)
|
||||
Other
|
777
|
114
|
||||||
Net cash provided by operating activities
|
46,696
|
45,692
|
||||||
Cash flows from investing activities:
|
||||||||
Cash paid for acquisitions, net of cash acquired
|
-
|
(16,759
|
)
|
|||||
Capital expenditures
|
(7,700
|
)
|
(10,819
|
)
|
||||
Proceeds from insurance
|
1,590
|
2,000
|
||||||
Proceeds from sale of assets
|
576
|
-
|
||||||
Intangible assets acquired
|
(296
|
)
|
(330
|
)
|
||||
Net cash used in investing activities
|
(5,830
|
)
|
(25,908
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from revolving loan
|
210,750
|
22,000
|
||||||
Principal payments on revolving loan
|
-
|
(9,500
|
)
|
|||||
Principal payments on long-term debt
|
(219,500
|
)
|
(17,500
|
)
|
||||
Principal payment on acquired debt
|
-
|
(2,384
|
)
|
|||||
Cash paid for financing costs
|
(1,123
|
)
|
-
|
|||||
Proceeds from stock options exercised
|
6,578
|
4,893
|
||||||
Dividends paid
|
(13,428
|
)
|
(12,069
|
)
|
||||
Purchase of treasury stock
|
(1,223
|
)
|
(1,741
|
)
|
||||
Net cash used in financing activities
|
(17,946
|
)
|
(16,301
|
)
|
||||
Effect of exchange rate changes on cash
|
(860
|
)
|
1,473
|
|||||
Increase in cash and cash equivalents
|
22,060
|
4,956
|
||||||
Cash and cash equivalents beginning of period
|
40,416
|
38,643
|
||||||
Cash and cash equivalents end of period
|
$
|
62,476
|
$
|
43,599
|
Cash and cash equivalents
|
$
|
5,065
|
||
Accounts receivable
|
2,860
|
|||
Inventories
|
2,537
|
|||
Prepaid expenses
|
186
|
Property, plant and equipment
|
12,219
|
|||
Customer relationships
|
2,942
|
|||
Developed technology
|
1,078
|
|||
Trademark & trade name
|
1,388
|
|||
Covenant not to compete
|
126
|
|||
Goodwill
|
1,340
|
|||
Trade accounts payable
|
(844
|
)
|
||
Accrued expenses
|
(1,416
|
)
|
||
Bank debt
|
(2,384
|
) | ||
Deferred income taxes | (3,871 | ) | ||
Amount paid to shareholders
|
21,226
|
|||
IFP bank debt paid on purchase date
|
2,384 | |||
Total amount paid
|
$
|
23,610
|
Increase/(Decrease) for the
Three Months Ended June 30,
|
||||||||
2018
|
2017
|
|||||||
Cost of sales
|
$
|
242
|
$
|
(167
|
)
|
|||
Operating expenses
|
1,424
|
1,210
|
||||||
Net earnings
|
(1,280
|
)
|
(663
|
)
|
Increase/(Decrease) for the
Six Months Ended June 30,
|
||||||||
2018
|
2017
|
|||||||
Cost of sales
|
$
|
487
|
$
|
144
|
||||
Operating expenses
|
2,972
|
2,740
|
||||||
Net earnings
|
(2,657
|
)
|
(1,830
|
)
|
For the six months ended
June 30, 2018
|
Shares (000s)
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Weighted
Average
Remaining
Contractual
Term
|
||||||||||||
Outstanding as of December 31, 2017
|
946
|
$
|
55.44
|
$
|
24,714
|
|||||||||||
Granted
|
148
|
74.57
|
||||||||||||||
Exercised
|
(152
|
)
|
43.32
|
|||||||||||||
Forfeited
|
(2
|
)
|
75.44
|
|||||||||||||
Cancelled
|
(1
|
)
|
25.39
|
|||||||||||||
Outstanding as of June 30, 2018
|
939
|
$
|
60.42
|
$
|
35,409
|
6.6
|
||||||||||
Exercisable as of June 30, 2018
|
534
|
$
|
49.19
|
$
|
26,142
|
5.3
|
For the six months ended
June 30, 2017
|
Shares (000s)
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Weighted
Average
Remaining
Contractual
Term
|
||||||||||||
Outstanding as of December 31, 2016
|
1,066
|
$
|
45.32
|
$
|
41,161
|
|||||||||||
Granted
|
220
|
85.23
|
||||||||||||||
Exercised
|
(150
|
)
|
32.54
|
|||||||||||||
Forfeited
|
(39
|
)
|
70.57
|
|||||||||||||
Cancelled
|
(19
|
)
|
58.61
|
|||||||||||||
Outstanding as of June 30, 2017
|
1,078
|
$
|
54.10
|
$
|
27,001
|
6.6
|
||||||||||
Exercisable as of June 30, 2017
|
603
|
$
|
40.83
|
$
|
22,249
|
4.7
|
Three Months
Ended
June 30,
|
Six Months
Ended
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Weighted-average fair value of options granted
|
$
|
-
|
$
|
20.54
|
$
|
18.62
|
$
|
23.21
|
||||||||
Total intrinsic value of stock options exercised ($000s)
|
$
|
5,375
|
$
|
2,375
|
$
|
7,200
|
$
|
7,596
|
Six months ended June 30, 2018
|
Shares (000s)
|
Weighted
Average Grant
Date Fair
Value
|
||||||
Non-vested balance as of December 31, 2017
|
66
|
$
|
65.66
|
|||||
Granted
|
37
|
75.19
|
||||||
Vested
|
(17
|
)
|
57.65
|
|||||
Forfeited
|
-
|
-
|
||||||
Non-vested balance as of June 30, 2018
|
86
|
$
|
71.40
|
Six months ended June 30, 2017
|
Shares (000s)
|
Weighted
Average Grant
Date Fair
Value
|
||||||
Non-vested balance as of December 31, 2016
|
102
|
$
|
54.18
|
|||||
Granted
|
9
|
85.40
|
||||||
Vested
|
(41
|
)
|
50.07
|
|||||
Forfeited
|
(4
|
)
|
55.45
|
|||||
Non-vested balance as of June 30, 2017
|
66
|
$
|
61.05
|
Six months ended June 30, 2018
|
Shares (000s)
|
Weighted
Average Grant
Date Fair
Value
|
||||||
Non-vested balance as of December 31, 2017
|
39
|
$
|
72.62
|
|||||
Granted
|
32
|
71.27
|
||||||
Vested
|
(15
|
)
|
58.78
|
|||||
Forfeited
|
-
|
-
|
||||||
Non-vested balance as of June 30, 2018
|
56
|
$
|
75.47
|
Six months ended June 30, 2017
|
Shares (000s)
|
Weighted
Average Grant
Date Fair
Value
|
||||||
Non-vested balance as of December 31, 2016
|
34
|
$
|
61.06
|
|||||
Granted
|
16
|
93.85
|
||||||
Vested
|
-
|
-
|
||||||
Forfeited
|
(7
|
)
|
69.18
|
|||||
Non-vested balance as of June 30, 2017
|
43
|
$
|
72.26
|
June 30,
2018
|
December 31,
2017
|
|||||||
Raw materials
|
$
|
25,690
|
$
|
20,520
|
||||
Work in progress
|
3,047
|
6,308
|
||||||
Finished goods
|
41,334
|
33,868
|
||||||
Total inventories
|
$
|
70,071
|
$
|
60,696
|
June 30,
2018
|
December 31,
2017
|
|||||||
Land
|
$
|
6,173
|
$
|
7,262
|
||||
Building
|
64,112
|
63,224
|
||||||
Equipment
|
205,889
|
201,341
|
||||||
Construction in progress
|
12,846
|
13,860
|
||||||
289,020
|
285,687
|
|||||||
Less: accumulated depreciation
|
104,253
|
95,894
|
||||||
Property, plant and equipment, net
|
$
|
184,767
|
$
|
189,793
|
Amortization
Period
(in years)
|
Gross
Carrying
Amount at
6/30/18
|
Accumulated
Amortization
at 6/30/18
|
Gross
Carrying
Amount at
12/31/17
|
Accumulated
Amortization
at 12/31/17
|
||||||||||||||||
Customer relationships & lists
|
10
|
$
|
190,032
|
$
|
114,007
|
$
|
190,061
|
$
|
105,573
|
|||||||||||
Trademarks & trade names
|
5-17
|
40,630
|
14,894
|
40,630
|
12,895
|
|||||||||||||||
Developed technology
|
5
|
13,338
|
7,270
|
13,338
|
5,936
|
|||||||||||||||
Other
|
3-18
|
13,749
|
5,705
|
13,466
|
5,018
|
|||||||||||||||
$
|
257,749
|
$
|
141,876
|
$
|
257,495
|
$
|
129,422
|
Three months ended June 30, 2018
|
Net
Earnings
(Numerator)
|
Number of
Shares
(Denominator)
|
Per Share
Amount
|
|||||||||
Basic EPS – Net earnings and weighted average common shares outstanding
|
$
|
19,679
|
32,077,353
|
$
|
.61
|
|||||||
Effect of dilutive securities – stock options, restricted stock, and performance shares
|
360,366
|
|||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options, restricted
stock, and performance shares
|
$
|
19,679
|
32,437,719
|
$
|
.61
|
Three months ended June 30, 2017
|
Net
Earnings
(Numerator)
|
Number of
Shares
(Denominator)
|
Per Share
Amount
|
|||||||||
Basic EPS – Net earnings and weighted average common shares outstanding
|
$
|
16,536
|
31,798,773
|
$
|
.52
|
|||||||
Effect of dilutive securities – stock options, restricted stock, and performance shares
|
403,782
|
|||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options, restricted
stock, and performance shares
|
$
|
16,536
|
32,202,555
|
$
|
.51
|
Six months ended June 30, 2018
|
Net
Earnings (Numerator)
|
Number of
Shares
(Denominator)
|
Per Share
Amount |
|||||||||
Basic EPS – Net earnings and weighted average common shares outstanding
|
$
|
39,025
|
32,031,342
|
$
|
1.22
|
|||||||
Effect of dilutive securities – stock options, restricted stock, and performance shares
|
346,324
|
|||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options, restricted
stock, and performance shares
|
$
|
39,025
|
32,377,666
|
$
|
1.21
|
Six months ended June 30, 2017
|
Net
Earnings
(Numerator)
|
Number of
Shares
(Denominator)
|
Per Share
Amount
|
|||||||||
Basic EPS – Net earnings and weighted average common shares outstanding
|
$
|
32,053
|
31,752,489
|
$
|
1.01
|
|||||||
Effect of dilutive securities – stock options, restricted stock, and performance shares
|
442,563
|
|||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options, restricted
stock, and performance shares
|
$
|
32,053
|
32,195,052
|
$
|
1.00
|
June 30,
2018
|
December 31,
2017
|
|||||||
Human Nutrition & Health
|
$
|
718,103
|
$
|
719,010
|
||||
Animal Nutrition & Health
|
111,240
|
118,418
|
||||||
Specialty Products
|
60,375
|
63,141
|
||||||
Industrial Products
|
28,571
|
18,471
|
||||||
Other Unallocated
|
71,178
|
44,596
|
||||||
Total
|
$
|
989,467
|
$
|
963,636
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Human Nutrition & Health
|
8,384
|
8,196
|
16,916
|
16,311
|
||||||||||||
Animal Nutrition & Health
|
$ |
1,294
|
$ |
1,145
|
$ |
2,599
|
$ |
3,034
|
||||||||
Specialty Products
|
1,010
|
1,023
|
2,020
|
2,039
|
||||||||||||
Industrial Products
|
180
|
264
|
351
|
453
|
||||||||||||
Total
|
$
|
10,868
|
$
|
10,628
|
$
|
21,886
|
$
|
21,837
|
Six Months Ended
June 30,
|
||||||||
2018
|
2017
|
|||||||
Human Nutrition & Health
|
$
|
4,091
|
$
|
8,594
|
||||
Animal Nutrition & Health
|
1,763
|
1,403
|
||||||
Specialty Products
|
1,202
|
411
|
||||||
Industrial Products
|
644 |
411
|
||||||
Total
|
$
|
7,700
|
$
|
10,819
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Human Nutrition & Health
|
85,013
|
78,031
|
168,076
|
151,158
|
||||||||||||
Animal Nutrition & Health
|
$ | 42,036 | $ | 37,048 | $ | 88,177 | $ | 75,126 | ||||||||
Specialty Products
|
22,864
|
20,759
|
40,604
|
39,549
|
||||||||||||
Industrial Products
|
13,774
|
11,244
|
28,240
|
18,977
|
||||||||||||
Total
|
$
|
163,687
|
$
|
147,082
|
$
|
325,097
|
$
|
284,810
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Human Nutrition & Health
|
$
|
10,066
|
$
|
11,320
|
$
|
23,069
|
$
|
21,516
|
||||||||
Animal Nutrition & Health
|
7,113
|
3,689
|
14,597
|
9,065
|
||||||||||||
Specialty Products
|
8,679
|
8,055
|
13,814
|
14,518
|
||||||||||||
Industrial Products
|
2,654
|
1,579
|
5,133
|
2,301
|
||||||||||||
Transaction and integration costs
|
(893
|
)
|
(1,899
|
)
|
(1,582
|
)
|
(1,953
|
)
|
||||||||
Indemnification settlement
|
-
|
2,087
|
-
|
2,087
|
||||||||||||
Interest and other income (expense)
|
(2,558
|
)
|
(2,271
|
)
|
(4,793
|
)
|
(4,265
|
)
|
||||||||
Total
|
$
|
25,061
|
$
|
22,560
|
$
|
50,238
|
$
|
43,269
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Product Sales
|
$
|
149,052
|
$
|
133,149
|
$
|
297,834
|
$
|
257,772
|
||||||||
Co-manufacturing
|
11,830
|
11,210
|
20,669
|
21,309
|
||||||||||||
Bill and Hold
|
1,555
|
1,401
|
2,844
|
2,384
|
||||||||||||
Consignment
|
333
|
594
|
1,378
|
1,237
|
||||||||||||
Product Sales Revenue
|
162,770
|
146,354
|
322,725
|
282,702
|
||||||||||||
Royalty Revenue
|
917
|
728
|
2,372
|
2,108
|
||||||||||||
Total Revenue
|
$
|
163,687
|
$
|
147,082
|
$
|
325,097
|
$
|
284,810
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Domestic Revenue
|
$
|
125,019
|
$
|
113,227
|
$
|
245,687
|
$
|
219,527
|
||||||||
Foreign Revenue
|
38,668
|
33,855
|
79,410
|
65,283
|
||||||||||||
Total Revenue
|
$
|
163,687
|
$
|
147,082
|
$
|
325,097
|
$
|
284,810
|
Six Months Ended
June 30,
|
||||||||
2018
|
2017
|
|||||||
Income taxes
|
$
|
12,830
|
$
|
14,508
|
||||
Interest
|
$
|
3,576
|
$
|
3,436
|
Three Months Ended
June 30,
|
||||||||
2018
|
2017
|
|||||||
Net foreign currency translation adjustment
|
$
|
(2,911
|
)
|
$
|
2,697
|
|||
Net change in postretirement benefit plan (see Note 15 for further information)
|
||||||||
Amortization of prior service cost
|
17
|
19
|
||||||
Amortization of gain
|
(1
|
)
|
(4
|
)
|
||||
Total before tax
|
16
|
15
|
||||||
Tax
|
-
|
(4
|
)
|
|||||
Net of tax
|
16
|
11
|
||||||
Total other comprehensive (loss)/income
|
$
|
(2,895
|
)
|
$
|
2,708
|
Six Months Ended
June 30,
|
||||||||
2018
|
2017
|
|||||||
Net foreign currency translation adjustment
|
$
|
(1,548
|
)
|
$
|
3,238
|
|||
Net change in postretirement benefit plan (see Note 15 for further information)
|
||||||||
Amortization of prior service cost
|
35
|
38
|
||||||
Amortization of gain
|
(2
|
)
|
(8
|
)
|
||||
Total before tax
|
33
|
30
|
||||||
Tax
|
(4
|
)
|
(9
|
)
|
||||
Net of tax
|
29
|
21
|
||||||
Total other comprehensive (loss)/income
|
$
|
(1,519
|
)
|
$
|
3,259
|
Foreign currency
translation
adjustment
|
Postretirement
benefit plan
|
Total
|
||||||||||
Balance December 31, 2017
|
$
|
(1,303
|
)
|
$
|
(339
|
)
|
$
|
(1,642
|
)
|
|||
Other comprehensive loss
|
(1,548
|
)
|
29
|
(1,519
|
)
|
|||||||
Balance June 30, 2018
|
$
|
(2,851
|
)
|
$
|
(310
|
)
|
$
|
(3,161
|
)
|
Six Months Ended
June 30,
|
||||||||
2018
|
2017
|
|||||||
Service cost
|
$
|
39
|
$
|
34
|
||||
Interest cost
|
22
|
23
|
||||||
Amortization of prior service cost
|
35
|
38
|
||||||
Amortization of gain
|
(2
|
)
|
(8
|
)
|
||||
Net periodic benefit cost
|
$
|
94
|
$
|
87
|
Year
|
|||||
July 1, 2018 to December 31, 2018
|
$
|
1,555
|
|||
2019
|
3,156
|
||||
2020
|
2,785
|
||||
2021
|
2,342
|
||||
2022
|
1,611
|
||||
2023 |
1,220 | ||||
Thereafter
|
4,369
|
||||
Total minimum lease payments
|
$
|
17,038
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations (All dollar amounts in thousands)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Human Nutrition & Health
|
85,013
|
78,031
|
168,076
|
151,158
|
||||||||||||
Animal Nutrition & Health
|
$ |
42,036
|
$ |
37,048
|
$ |
88,177
|
$ | 75,126 | ||||||||
Specialty Products
|
22,864
|
20,759
|
40,604
|
39,549
|
||||||||||||
Industrial Products
|
13,774
|
11,244
|
28,240
|
18,977
|
||||||||||||
Total
|
$
|
163,687
|
$
|
147,082
|
$
|
325,097
|
$
|
284,810
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Human Nutrition & Health
|
$
|
10,066
|
$
|
11,320
|
$
|
23,069
|
$
|
21,516
|
||||||||
Animal Nutrition & Health
|
7,113
|
3,689
|
14,597
|
9,065
|
||||||||||||
Specialty Products
|
8,679
|
8,055
|
13,814
|
14,518
|
||||||||||||
Industrial Products
|
2,654
|
1,579
|
5,133
|
2,301
|
||||||||||||
Transaction and integration costs
|
(893
|
)
|
(1,899
|
)
|
(1,582
|
)
|
(1,953
|
)
|
||||||||
Indemnification settlement
|
-
|
2,087
|
-
|
2,087
|
||||||||||||
Total
|
$
|
27,619
|
$
|
24,831
|
$
|
55,031
|
$
|
47,534
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4. |
Controls and Procedures
|
(a)
|
Evaluation of Disclosure Controls and Procedures
|
(b)
|
Changes in Internal Controls
|
Part II.
|
Other Information
|
Item 1A. |
Risk Factors
|
Item 2C. |
Issuer Purchase of Equity Securities
|
Total Number of
Shares
Purchased(1)
|
Average
Price Paid
Per
Share(2)
|
Total Number of
Shares Purchased
as Part of Publicly
Announced
Programs(1)
|
Approximate
Dollar Value of
Shares that
May Yet Be
Purchased
Under the Plans
or Programs
|
|||||||||||||
April 1 – 30, 2018
|
-
|
$
|
-
|
-
|
$
|
156,660,470
|
||||||||||
May 1 – 31, 2018
|
-
|
$
|
-
|
-
|
$
|
156,660,470
|
||||||||||
June 1 – 30, 2018
|
4,408
|
$
|
99.24
|
4,408
|
$
|
156,223,010
|
||||||||||
4,408
|
4,408
|
Item 6. |
Exhibits
|
Exhibit 10.1
|
Credit Agreement dated June 27, 2018 among Balchem Corporation, the Domestic Guarantors (as defined in the Credit Agreement), JPMorgan Chase Bank,
N.A., as administrative agent, and the Lenders Guarantors (as defined in the Credit Agreement) (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated July 5, 2018). |
|
Exhibit 10.2 |
Security and Pledge Agreement dated June 27, 2018 among Balchem Corporation, the Domestic Guarantors and JPMorgan Chase Bank, N.A. (incorporated by
reference to Exhibit 4.2 to the Company's Current Report on Form 8-K dated July 5, 2018). |
|
Exhibit 31.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a).
|
|
Exhibit 31.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a).
|
|
Exhibit 32.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code.
|
|
Exhibit 32.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code.
|
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
BALCHEM CORPORATION
|
|
By: /s/ Theodore L. Harris
|
|
Theodore L. Harris, Chairman, President and Chief Executive Officer
|
|
By: /s/ Mary Theresa Coelho
|
|
Mary Theresa Coelho, Chief Financial Officer and Treasurer
|
|
Date: August 3, 2018
|
Exhibit No.
|
Description
|
Credit Agreement dated June 27, 2018 among Balchem Corporation, the Domestic Guarantors (as defined in the Credit Agreement), JPMorgan Chase Bank, N.A., as
administrative agent, and the Lenders Guarantors (as defined in the Credit Agreement) (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated July 5, 2018).
|
|
Security and Pledge Agreement dated June 27, 2018 among Balchem Corporation, the Domestic Guarantors and JPMorgan Chase Bank, N.A. (incorporated by
reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K dated July 5, 2018).
|
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a).
|
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a).
|
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code.
|
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code.
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|