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Balchem Corporation Announces Third Quarter 2009 Results
Thursday, October 29, 2009 9:53 AM


(Source: PrimeNewswire)trackingNEW HAMPTON, N.Y., Oct. 29, 2009 (GLOBE NEWSWIRE) -- Balchem Corporation (Nasdaq:BCPC) reported as follows (unaudited) for the period ended September 30, 2009.


          ($000 Omitted Except for Net Earnings per Share)

               For the Three Months Ended September 30,
               ----------------------------------------

                                                   2009       2008
                                                   ----       ----

 Net sales                                       $ 54,292   $ 58,235
 Gross profit                                      16,399     12,712
 Operating expenses                                 6,096      5,486
                                                 --------   --------
 Earnings from operations                          10,303      7,226
 Other income (expense)                                20       (290)
                                                 --------   --------
 Earnings before income tax expense                10,323      6,936
 Income tax expense                                 3,471      2,143
                                                 --------   --------
 Net earnings                                    $  6,852   $  4,793
                                                 ========   ========

 Basic net earnings per common share             $   0.37   $   0.27
 Diluted net earnings per common share           $   0.36   $   0.25

 Shares used in the calculation of diluted net
  earnings per common share                        19,303     19,131

                 For the Nine Months Ended September 30,
                 ---------------------------------------

                                                   2009       2008
                                                   ----       ----

 Net sales                                      $ 160,254  $ 177,997
 Gross profit                                      50,001     39,146
 Operating expenses                                20,103     17,276
                                                ---------  ---------
 Earnings from operations                          29,898     21,870
 Other expense                                       (106)      (742)
                                                ---------  ---------
 Earnings before income tax expense                29,792     21,128
 Income tax expense                                 9,973      6,970
                                                ---------  ---------
 Net earnings                                   $  19,819  $  14,158
                                                =========  =========

 Basic net earnings per common share            $    1.09  $    0.79
 Diluted net earnings per common share          $    1.03  $    0.75

 Shares used in the calculation of diluted net
  earnings per common share                        19,172     18,987

Record Third Quarter Earnings

For the quarter ended September 30, 2009, the company achieved record third quarter net earnings of $6.9 million, an increase of $2.1 million, or 43.0%. The $6.9 million generated diluted net earnings per common share of $0.36 versus $0.25 for the prior year comparable period, an increase of 44.0%. Net sales of $54.3 million were approximately 6.8% below the $58.2 million result of the prior year comparable quarter; however, on a sequential basis, sales were 2.5% greater than the second quarter 2009 sales results.

Detailing this third quarter of 2009, Animal Nutrition and Health, including industrial choline and derivative product sales, totaled $36.5 million, a decrease of 7.7%, or $3.0 million from the prior year comparable quarter. This business segment continues to be affected by the well-publicized softness in the U.S. poultry and swine markets as well as weak dairy economics which resulted in lower demand for our products when compared to the prior year quarter; however, on a sequential basis, we did see improvement in sales to these end markets, as they appear to have stabilized, and are beginning to further improve in this fourth quarter. We also realized lower export sales from our North American choline plants, largely due to the stronger U.S. dollar and international political factors affecting poultry exports. Sales of industrial derivatives (both choline and methylamines) were negatively impacted principally by the general economic downturn; however, there was improvement on a sequential basis. Sales of our specialty animal nutrition and health products, targeted for ruminant production animals and companion animals, were up slightly from the prior year comparable quarter primarily due to improved sales of chelated mineral products and new sales generated from AminoShure(TM)-L., our rumen protected lysine. While the market activities fluctuated, earnings from operations for the entire Animal Nutrition and Health segment increased to $5.3 million as compared to $2.3 million in the prior year comparable quarter. Reductions in key raw materials and improved production/supply chain efficiencies in both the U.S.



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