☒
|
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
|
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
☐
|
Yes
☐
|
No
☑
|
Assets
|
June 30, 2015
(unaudited)
|
December 31,
2014
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
72,243
|
$
|
50,287
|
||||
Accounts receivable, net of allowance for doubtful accounts of $186 and $288 at June 30, 2015 and December 31, 2014
|
63,498
|
71,982
|
||||||
Inventories
|
47,882
|
49,623
|
||||||
Prepaid expenses
|
3,246
|
4,545
|
||||||
Prepaid income taxes
|
1,899
|
-
|
||||||
Deferred income taxes
|
1,413
|
1,390
|
||||||
Other current assets
|
3,296
|
3,475
|
||||||
Total current assets
|
193,477
|
181,302
|
||||||
Property, plant and equipment, net
|
139,749
|
131,588
|
||||||
Goodwill
|
383,906
|
383,906
|
||||||
Intangible assets with finite lives, net
|
147,752
|
160,394
|
||||||
Other assets
|
4,096
|
4,341
|
||||||
Total assets
|
$
|
868,980
|
$
|
861,531
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Trade accounts payable
|
$
|
19,091
|
$
|
24,352
|
||||
Accrued expenses
|
14,863
|
15,614
|
||||||
Accrued compensation and other benefits
|
5,066
|
9,137
|
||||||
Dividends payable
|
-
|
9,251
|
||||||
Income taxes payable
|
-
|
2,168
|
||||||
Current portion of long-term debt
|
35,000
|
35,000
|
||||||
Total current liabilities
|
74,020
|
95,522
|
||||||
Long-term debt
|
280,000
|
297,500
|
||||||
Deferred income taxes
|
70,669
|
70,661
|
||||||
Other long-term obligations
|
6,073
|
5,950
|
||||||
Total liabilities
|
430,762
|
469,633
|
||||||
Commitments and contingencies (note 14)
|
||||||||
Stockholders' equity:
|
||||||||
Preferred stock, $25 par value. Authorized 2,000,000 shares; none issued and outstanding
|
-
|
-
|
||||||
Common stock, $.0667 par value. Authorized 60,000,000 shares; 31,449,857 shares issued and outstanding at June 30, 2015 and 30,845,586 shares issued and outstanding at December 31, 2014
|
2,096
|
2,058
|
||||||
Additional paid-in capital
|
115,619
|
97,289
|
||||||
Retained earnings
|
325,290
|
295,202
|
||||||
Accumulated other comprehensive loss
|
(4,787
|
)
|
(2,651
|
)
|
||||
Total stockholders' equity
|
438,218
|
391,898
|
||||||
Total liabilities and stockholders' equity
|
$
|
868,980
|
$
|
861,531
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Net sales
|
$
|
134,773
|
$
|
132,230
|
$
|
279,635
|
$
|
218,225
|
||||||||
Cost of sales
|
92,906
|
99,895
|
194,638
|
162,675
|
||||||||||||
Gross margin
|
41,867
|
32,335
|
84,997
|
55,550
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Selling expenses
|
11,367
|
8,552
|
23,153
|
12,741
|
||||||||||||
Research and development expenses
|
1,492
|
1,119
|
2,940
|
1,892
|
||||||||||||
General and administrative expenses
|
5,234
|
6,155
|
10,092
|
11,053
|
||||||||||||
18,093
|
15,826
|
36,185
|
25,686
|
|||||||||||||
Earnings from operations
|
23,774
|
16,509
|
48,812
|
29,864
|
||||||||||||
Other expenses (income):
|
||||||||||||||||
Interest income
|
(3
|
)
|
(13
|
)
|
(5
|
)
|
(59
|
)
|
||||||||
Interest expense
|
1,594
|
1,315
|
3,475
|
1,316
|
||||||||||||
Other, net
|
16
|
(84
|
)
|
90
|
(56
|
)
|
||||||||||
Earnings before income tax expense
|
22,167
|
15,291
|
45,252
|
28,663
|
||||||||||||
Income tax expense
|
7,251
|
5,559
|
15,164
|
10,037
|
||||||||||||
Net earnings
|
$
|
14,916
|
$
|
9,732
|
$
|
30,088
|
$
|
18,626
|
||||||||
Net earnings per common share - basic
|
$
|
0.48
|
$
|
0.32
|
$
|
0.97
|
$
|
0.62
|
||||||||
Net earnings per common share - diluted
|
$
|
0.47
|
$
|
0.31
|
$
|
0.95
|
$
|
0.60
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Net earnings
|
$
|
14,916
|
$
|
9,732
|
$
|
30,088
|
$
|
18,626
|
||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Net foreign currency translation adjustment
|
550
|
(176
|
)
|
(2,130
|
)
|
(194
|
)
|
|||||||||
Net change in postretirement benefit plan, net of taxes of $2 and $1 for the three months ended June 30, 2015 and 2014, and $3 and $2 for the six months ended June 30, 2015 and 2014.
|
(3
|
)
|
(2
|
)
|
(6
|
)
|
(4
|
)
|
||||||||
Other comprehensive income (loss)
|
547
|
(178
|
)
|
(2,136
|
)
|
(198
|
)
|
|||||||||
Comprehensive income
|
$
|
15,463
|
$
|
9,554
|
$
|
27,952
|
$
|
18,428
|
Six Months Ended
June 30,
|
||||||||
2015
|
2014
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
30,088
|
$
|
18,626
|
||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
19,891
|
9,864
|
||||||
Stock compensation expense
|
2,684
|
2,348
|
||||||
Deferred income taxes
|
55
|
75
|
||||||
Provision for doubtful accounts
|
(106
|
)
|
68
|
|||||
Foreign currency transaction loss
|
60
|
7
|
||||||
Loss on disposal of assets
|
106
|
-
|
||||||
Changes in assets and liabilities
|
||||||||
Accounts receivable
|
7,962
|
(9,397
|
)
|
|||||
Inventories
|
1,378
|
(256
|
)
|
|||||
Prepaid expenses and other current assets
|
1,396
|
215
|
||||||
Accounts payable and accrued expenses
|
(9,786
|
)
|
3,262
|
|||||
Income taxes
|
(4,046
|
)
|
2,552
|
|||||
Customer deposits and other deferred revenue
|
-
|
(35
|
)
|
|||||
Other
|
184
|
274
|
||||||
Net cash provided by operating activities
|
49,866
|
27,603
|
||||||
Cash flows from investing activities:
|
||||||||
Capital expenditures
|
(15,299
|
)
|
(3,504
|
)
|
||||
Cash paid for acquisition, net of cash acquired
|
-
|
(491,057
|
)
|
|||||
Intangible assets acquired
|
(617
|
)
|
(41
|
)
|
||||
Net cash used in investing activities
|
(15,916
|
)
|
(494,602
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from long-term debt
|
-
|
350,000
|
||||||
Principal payments on long-term debt
|
(17,500
|
)
|
-
|
|||||
Proceeds from revolving loan
|
-
|
50,000
|
||||||
Principal payment on acquired debt
|
-
|
(75,550
|
)
|
|||||
Cash paid for financing costs
|
-
|
(2,543
|
)
|
|||||
Repayments of short-term obligations
|
-
|
(89
|
)
|
|||||
Proceeds from stock options exercised
|
9,920
|
2,881
|
||||||
Excess tax benefits from stock compensation
|
5,785
|
1,472
|
||||||
Dividends paid
|
(9,251
|
)
|
(7,856
|
)
|
||||
Purchase of treasury stock
|
(21
|
)
|
(267
|
)
|
||||
Net cash (used in) provided by financing activities
|
(11,067
|
)
|
318,048
|
|||||
Effect of exchange rate changes on cash
|
(927
|
)
|
(82
|
)
|
||||
Increase (decrease) in cash and cash equivalents
|
21,956
|
(149,033
|
)
|
|||||
Cash and cash equivalents beginning of period
|
50,287
|
208,747
|
||||||
Cash and cash equivalents end of period
|
$
|
72,243
|
$
|
59,714
|
Cash and cash equivalents
|
$
|
2,635
|
||
Accounts receivable
|
25,674
|
|||
Inventories
|
32,000
|
|||
Property, plant and equipment
|
75,850
|
|||
Customer relationships
|
130,300
|
|||
Trade names
|
31,100
|
|||
Developed technology
|
3,200
|
|||
Other assets
|
3,955
|
|||
Indemnification asset
|
1,650
|
|||
Trade accounts payable
|
(10,427
|
)
|
||
Accrued expenses
|
(6,326
|
)
|
||
Bank debt
|
(75,550
|
) | ||
Deferred income taxes
|
(75,760
|
)
|
||
Goodwill
|
355,391
|
|||
Amount paid to shareholders
|
493,692
|
|||
SensoryEffects bank debt paid on purchase date
|
75,550
|
|||
Total amount paid on acquisition date
|
$
|
569,242
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
Net Sales
|
Net Earnings
|
Net Sales
|
Net Earnings
|
|||||||||||||
2015 SensoryEffects actual results included in the Company’s consolidated income statement
|
$
|
54,018
|
$
|
2,787
|
$
|
108,558
|
$
|
5,693
|
||||||||
2015 Supplemental pro forma combined financial information
|
$
|
134,773
|
$
|
14,916
|
$
|
279,635
|
$
|
30,088
|
||||||||
Basic earnings per share
|
$
|
0.48
|
$
|
0.97
|
||||||||||||
Diluted earnings per share
|
$
|
0.47
|
$
|
0.95
|
||||||||||||
2014 SensoryEffects actual results included in the Company’s consolidated income statement from May 7, 2014 through June 30, 2014
|
$
|
36,395
|
$
|
(457
|
)
|
$
|
36,395
|
$
|
(457
|
)
|
||||||
2014 Supplemental pro forma combined financial information
|
$
|
157,635
|
$
|
14,726
|
$
|
302,242
|
$
|
26,483
|
||||||||
Basic earnings per share
|
$
|
0.49
|
$
|
0.88
|
||||||||||||
Diluted earnings per share
|
$
|
0.47
|
$
|
0.85
|
Increase/(Decrease) for the
Three Months Ended June 30,
|
||||||||
2015
|
2014
|
|||||||
Cost of sales
|
$
|
214
|
$
|
163
|
||||
Operating expenses
|
1,298
|
1,196
|
||||||
Net earnings
|
(982
|
)
|
(847
|
)
|
Increase/(Decrease) for the
Six Months Ended June 30,
|
||||||||
2015
|
2014
|
|||||||
Cost of sales
|
$
|
426
|
$
|
311
|
||||
Operating expenses
|
2,260
|
2,036
|
||||||
Net earnings
|
(1,743
|
)
|
(1,499
|
)
|
For the six months ended June 30, 2015
|
Shares (000s)
|
Weighted Average Exercise
Price
|
Aggregate
Intrinsic
Value
|
Weighted Average Remaining Contractual Term
|
||||||||||||
Outstanding as of December 31, 2014
|
1,470
|
$
|
27.35
|
$
|
57,742
|
|||||||||||
Granted
|
207
|
58.34
|
||||||||||||||
Exercised
|
(519
|
)
|
19.12
|
|||||||||||||
Forfeited
|
(12
|
)
|
50.46
|
|||||||||||||
Outstanding as of June 30, 2015
|
1,146
|
$
|
36.45
|
$
|
22,660
|
6.6
|
||||||||||
Exercisable as of June 30, 2015
|
718
|
$
|
26.77
|
$
|
20,785
|
5.2
|
For the six months ended June 30, 2014
|
Shares (000s)
|
Weighted Average Exercise
Price
|
Aggregate Intrinsic Value
|
Weighted Average Remaining Contractual Term
|
||||||||||||
Outstanding as of December 31, 2013
|
1,893
|
$
|
20.94
|
$
|
71,465
|
|||||||||||
Granted
|
268
|
53.80
|
||||||||||||||
Exercised
|
(249
|
)
|
11.56
|
|||||||||||||
Forfeited
|
(126
|
)
|
56.03
|
|||||||||||||
Outstanding as of June 30, 2014
|
1,786
|
$
|
24.71
|
$
|
51,517
|
5.3
|
||||||||||
Exercisable as of June 30, 2014
|
1,425
|
$
|
20.40
|
$
|
47,250
|
4.4
|
Three Months
Ended
June 30,
|
Six Months
Ended
June 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Weighted-average fair value of options granted
|
$
|
17.07
|
$
|
19.68
|
$
|
18.35
|
$
|
17.53
|
||||||||
Total intrinsic value of stock options exercised ($000s)
|
$
|
12,244
|
$
|
5,526
|
$
|
20,284
|
$
|
10,944
|
Six months ended June 30, 2015
|
Shares (000s)
|
Weighted
Average Grant
Date Fair
Value
|
||||||
Non-vested balance as of December 31, 2014
|
134
|
$
|
38.13
|
|||||
Granted
|
76
|
55.77
|
||||||
Vested
|
(11
|
)
|
16.69
|
|||||
Forfeited
|
-
|
-
|
||||||
Non-vested balance as of June 30, 2015
|
199
|
$
|
46.11
|
Six months ended June 30, 2014
|
Shares (000s)
|
Weighted
Average Grant
Date Fair
Value
|
||||||
Non-vested balance as of December 31, 2013
|
172
|
$
|
33.69
|
|||||
Granted
|
25
|
51.03
|
||||||
Vested
|
(24
|
)
|
37.61
|
|||||
Forfeited
|
(6
|
)
|
45.32
|
|||||
Non-vested balance as of June 30, 2014
|
167
|
$
|
35.27
|
Six months ended June 30, 2015
|
Shares (000s)
|
Weighted
Average Grant
Date Fair
Value
|
||||||
Non-vested balance as of December 31, 2014
|
-
|
$
|
-
|
|||||
Granted
|
29
|
58.77
|
||||||
Vested
|
-
|
-
|
||||||
Forfeited
|
9
|
58.77
|
||||||
Non-vested balance as of June 30, 2015
|
20
|
$
|
58.77
|
Six months ended June 30, 2014
|
Shares (000s)
|
Weighted
Average Grant
Date Fair
Value
|
||||||
Non-vested balance as of December 31, 2013
|
-
|
$
|
-
|
|||||
Granted
|
-
|
-
|
||||||
Vested
|
-
|
-
|
||||||
Forfeited
|
-
|
-
|
||||||
Non-vested balance as of June 30, 2014
|
-
|
$
|
-
|
June 30,
2015
|
December 31, 2014
|
|||||||
Raw materials
|
$
|
17,510
|
$
|
19,822
|
||||
Work in progress
|
2,289
|
1,989
|
||||||
Finished goods
|
28,083
|
27,812
|
||||||
Total inventories
|
$
|
47,882
|
$
|
49,623
|
June 30,
2015
|
December 31, 2014
|
|||||||
Land
|
$
|
3,022
|
$
|
3,130
|
||||
Building
|
30,819
|
31,030
|
||||||
Equipment
|
148,987
|
150,170
|
||||||
Construction in progress
|
23,125
|
10,969
|
||||||
205,953
|
195,299
|
|||||||
Less: accumulated depreciation
|
66,204
|
63,711
|
||||||
Property, plant and equipment, net
|
$
|
139,749
|
$
|
131,588
|
June 30,
2015
|
December 31,
2014
|
|||||||
SensoryEffects
|
$
|
363,784
|
$
|
383,784
|
||||
Animal Nutrition and Health
|
11,734
|
11,734
|
||||||
Specialty Products
|
7,160
|
7,160
|
||||||
Industrial Products
|
1,228
|
1,228
|
||||||
Total
|
$
|
383,906
|
$
|
383,906
|
Amortization
Period
(in years)
|
Gross
Carrying
Amount at 6/30/15
|
Accumulated
Amortization
at 6/30/15
|
Gross
Carrying
Amount at 12/31/14
|
Accumulated
Amortization
at 12/31/14
|
||||||||||||||||
Customer relationships & lists
|
10
|
$
|
167,442
|
$
|
52,408
|
$
|
167,442
|
$
|
41,238
|
|||||||||||
Trademarks & trade names
|
17
|
32,014
|
4,123
|
32,014
|
2,540
|
|||||||||||||||
Developed technology
|
5
|
3,200
|
737
|
3,200
|
420
|
|||||||||||||||
Regulatory registration costs
|
5-10
|
2,232
|
757
|
1,704
|
667
|
|||||||||||||||
Patents & trade secrets
|
15-17
|
1,719
|
978
|
1,665
|
933
|
|||||||||||||||
Other
|
5-10
|
760
|
612
|
754
|
587
|
|||||||||||||||
$
|
207,367
|
$
|
59,615
|
$
|
206,779
|
$
|
46,385
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||||||
Current portion of long-term debt
|
$
|
17,500
|
$
|
17,500
|
-
|
-
|
-
|
|||||||||||||
Long-term debt
|
-
|
17,500
|
$
|
35,000
|
$
|
35,000
|
$
|
192,500
|
||||||||||||
Total
|
$
|
17,500
|
$
|
35,000
|
$
|
35,000
|
$
|
35,000
|
$
|
192,500
|
Three months ended June 30, 2015
|
Net
Earnings
(Numerator)
|
Number of Shares
(Denominator)
|
Per Share Amount
|
|||||||||
Basic EPS – Net earnings and weighted average common shares outstanding
|
$
|
14,916
|
31,111,155
|
$
|
.48
|
|||||||
Effect of dilutive securities – stock options and restricted stock
|
521,119
|
|||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options and restricted stock
|
$
|
14,916
|
31,632,274
|
$
|
.47
|
Three months ended June 30, 2014
|
Net
Earnings
(Numerator)
|
Number of Shares
(Denominator)
|
Per Share Amount
|
|||||||||
Basic EPS – Net earnings and weighted average common shares outstanding
|
$
|
9,732
|
30,280,366
|
$
|
.32
|
|||||||
Effect of dilutive securities – stock options and restricted stock
|
869,413
|
|||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options and restricted stock
|
$
|
9,732
|
31,149,779
|
$
|
.31
|
Six months ended June 30, 2015
|
Net
Earnings
(Numerator)
|
Number of Shares
(Denominator)
|
Per Share Amount
|
|||||||||
Basic EPS – Net earnings and weighted average common shares outstanding
|
$
|
30,088
|
30,976,681
|
$
|
.97
|
|||||||
Effect of dilutive securities – stock options and restricted stock
|
547,925
|
|||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options and restricted stock
|
$
|
30,088
|
31,524,606
|
$
|
.95
|
Six months ended June 30, 2014
|
Net
Earnings
(Numerator)
|
Number of Shares
(Denominator)
|
Per Share Amount
|
|||||||||
Basic EPS – Net earnings and weighted average common shares outstanding
|
$
|
18,626
|
30,213,536
|
$
|
.62
|
|||||||
Effect of dilutive securities – stock options and restricted stock
|
898,153
|
|||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options and restricted stock
|
$
|
18,626
|
31,111,689
|
$
|
.60
|
June 30,
2015
|
December 31, 2014
|
|||||||
SensoryEffects
|
$
|
642,691
|
$
|
656,130
|
||||
Animal Nutrition & Health
|
99,743
|
90,650
|
||||||
Specialty Products
|
25,853
|
24,913
|
||||||
Industrial Products
|
20,217
|
32,330
|
||||||
Other Unallocated
|
80,476
|
57,508
|
||||||
Total
|
$
|
868,980
|
$
|
861,531
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
SensoryEffects
|
$
|
7,533
|
$
|
4,798
|
$
|
15,172
|
$
|
5,097
|
||||||||
Animal Nutrition & Health
|
1,582
|
1,852
|
3,128
|
3,373
|
||||||||||||
Specialty Products
|
300
|
353
|
641
|
713
|
||||||||||||
Industrial Products
|
297
|
128
|
640
|
579
|
||||||||||||
Total
|
$
|
9,712
|
$
|
7,131
|
$
|
19,581
|
$
|
9,762
|
Six Months Ended
June 30,
|
||||||||
2015
|
2014
|
|||||||
SensoryEffects
|
$
|
5,702
|
$
|
886
|
||||
Animal Nutriton & Health
|
8,290
|
1,803
|
||||||
Specialty Products
|
489
|
441
|
||||||
Industrial Products
|
818
|
374
|
||||||
Total
|
$
|
15,299
|
$
|
3,504
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
SensoryEffects
|
$
|
67,230
|
$
|
49,199
|
$
|
134,987
|
$
|
61,349
|
||||||||
Animal Nutrition & Health
|
41,642
|
43,221
|
84,348
|
84,074
|
||||||||||||
Specialty Products
|
13,805
|
13,642
|
27,384
|
26,434
|
||||||||||||
Industrial Products
|
12,096
|
26,168
|
32,916
|
46,368
|
||||||||||||
Total
|
$
|
134,773
|
$
|
132,230
|
$
|
279,635
|
$
|
218,225
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
SensoryEffects
|
$
|
9,087
|
$
|
2,874
|
$
|
16,793
|
$
|
5,475
|
||||||||
Animal Nutrition & Health
|
7,468
|
5,510
|
15,978
|
9,669
|
||||||||||||
Specialty Products
|
6,093
|
5,463
|
11,794
|
10,269
|
||||||||||||
Industrial Products
|
1,126
|
4,165
|
4,247
|
7,299
|
||||||||||||
Transaction and integration costs
|
-
|
(1,503
|
)
|
-
|
(2,848
|
)
|
||||||||||
Interest and other income (expense)
|
(1,607
|
)
|
(1,218
|
)
|
(3,560
|
)
|
(1,201
|
)
|
||||||||
Total
|
$
|
22,167
|
$
|
15,291
|
$
|
45,252
|
$
|
28,663
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Domestic
|
$
|
103,003
|
$
|
98,191
|
$
|
224,779
|
$
|
154,335
|
||||||||
Foreign
|
31,770
|
34,039
|
54,856
|
63,890
|
||||||||||||
Total
|
$
|
134,773
|
$
|
132,230
|
$
|
279,635
|
$
|
218,225
|
Six Months Ended
June 30,
|
||||||||
2015
|
2014
|
|||||||
Income taxes
|
$
|
12,002
|
$
|
5,933
|
||||
Interest
|
$
|
3,163
|
$
|
1,177
|
Three Months Ended
June 30,
|
||||||||
2015
|
2014
|
|||||||
Net foreign currency translation adjustment
|
$
|
550
|
$
|
(176
|
)
|
|||
Net change in postretirement benefit plan
(see Note 13 for further information)
|
||||||||
Amortization of prior service credit
|
(5
|
)
|
(5
|
)
|
||||
Amortization of loss
|
-
|
2
|
||||||
Total before tax
|
(5
|
)
|
(3
|
)
|
||||
Tax
|
2
|
1
|
||||||
Net of tax
|
(3
|
)
|
(2
|
)
|
||||
Total other comprehensive income (loss)
|
$
|
547
|
$
|
(178
|
)
|
Six Months Ended
June 30,
|
||||||||
2015
|
2014
|
|||||||
Net foreign currency translation adjustment
|
$
|
(2,130
|
)
|
$
|
(194
|
)
|
||
Net change in postretirement benefit plan (see Note 13 for further information)
|
||||||||
Amortization of prior service credit
|
(9
|
)
|
(9
|
)
|
||||
Amortization of loss
|
-
|
3
|
||||||
Total before tax
|
(9
|
)
|
(6
|
)
|
||||
Tax
|
3
|
2
|
||||||
Net of tax
|
(6
|
)
|
(4
|
)
|
||||
Total other comprehensive loss
|
$
|
(2,136
|
)
|
$
|
(198
|
)
|
Foreign currency
translation
adjustment
|
Postretirement benefit plan
|
Total
|
||||||||||
Balance December 31, 2014
|
$
|
(2,702
|
)
|
$
|
51
|
$
|
(2,651
|
)
|
||||
Other comprehensive loss
|
(2,130
|
)
|
(6
|
)
|
(2,136
|
)
|
||||||
Balance June 30, 2015
|
$
|
(4,832
|
)
|
$
|
45
|
$
|
(4,787
|
)
|
Six Months Ended
June 30,
|
||||||||
2015
|
2014
|
|||||||
Service cost
|
$
|
27
|
$
|
28
|
||||
Interest cost
|
18
|
24
|
||||||
Amortization of prior service credit
|
(9
|
)
|
(9
|
)
|
||||
Amortization of loss
|
-
|
3
|
||||||
Net periodic benefit cost
|
$
|
36
|
$
|
46
|
Year
|
||||
July 1, 2015 to December 31, 2015
|
$
|
1,196
|
||
2016
|
1,894
|
|||
2017
|
1,650
|
|||
2018
|
1,387
|
|||
2019
|
1,003
|
|||
2020
|
700
|
|||
Thereafter
|
2,909
|
|||
Total minimum lease payments
|
$
|
10,739
|
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,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
SensoryEffects
|
$
|
67,230
|
$
|
49,199
|
$
|
134,987
|
$
|
61,349
|
||||||||
Animal Nutrition & Health
|
41,642
|
43,221
|
84,348
|
84,074
|
||||||||||||
Specialty Products |
13,805
|
13,642
|
27,384
|
26,434
|
||||||||||||
Industrial Products
|
12,096
|
26,168
|
32,916
|
46,368
|
||||||||||||
Total
|
$
|
134,773
|
$
|
132,230
|
$
|
279,635
|
$
|
218,225
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
SensoryEffects
|
$
|
9,087
|
$
|
2,874
|
$
|
16,793
|
$
|
5,475
|
||||||||
Animal Nutrition & Health
|
7,468
|
5,510
|
15,978
|
9,669
|
||||||||||||
Specialty Products
|
6,093
|
5,463
|
11,794
|
10,269
|
||||||||||||
Industrial Products |
1,126
|
4,165
|
4,247
|
7,299
|
||||||||||||
Transaction and integration costs
|
-
|
(1,503
|
)
|
-
|
(2,848
|
)
|
||||||||||
Total
|
$
|
23,774
|
$
|
16,509
|
$
|
48,812
|
$
|
29,864
|
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Part II. | Other Information |
Item 1A. | Risk Factors |
Item 4. | Reserved. |
Item 6. | Exhibits |
Exhibit 10.1 | Employment Agreement with Chief Executive Officer. |
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, President and
|
|
Chief Executive Officer
|
By: /s/ William A. Backus
|
|
William A. Backus, Chief Financial Officer and Treasurer
|
|
Date: August 5, 2015 |
(1) | Habitual absence or lateness; |
(2) | Gross insubordination or material violation of published material Company policies; |
(3) | Failure to observe the provisions of Section 3 of this Agreement concerning the devotion of full time to Company’s business; |
(4) | Failure to comply with any of the provisions of Section 13 or 14 hereof; or |
(5) | Any action which constitutes a violation of any applicable criminal statute ; or |
(6) | Any action which violates Employee’s fiduciary duties to the Company. |
BALCHEM CORPORATION | ||
By:
|
/s/ Dino A. Rossi
|
|
Dino A. Rossi
|
||
Chairman, President & CEO
|
By:
|
/s/ Theodore L. Harris
|
|
Theodore L. Harris
|
1. | I have reviewed this quarterly report on Form 10-Q of Balchem Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles ; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 5, 2015
|
/s/ Theodore L. Harris
|
Theodore L. Harris,
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
1. | I have reviewed this quarterly report on Form 10-Q of Balchem Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles ; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 5, 2015
|
/s/ William A. Backus
|
William A. Backus,
|
|
Chief Financial Officer and Treasurer
|
|
(Principal Financial Officer)
|
/s/ Theodore L. Harris
|
Theodore L. Harris
|
President and Chief Executive Officer
|
(Principal Executive Officer)
|
August 5, 2015
|
/s/ William A. Backus
|
William A. Backus
|
Chief Financial Officer and Treasurer
|
(Principal Financial Officer)
|
August 5, 2015 |