Balchem Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Balchem Corp. has filed its 2023 10-K report detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

BALCHEM CORP (BCPC) filed a Annual Report (10-K) with the SEC on February 16, 2024. Balchem Corp. filed its 2023 Form 10-K on February 16, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 5 Paragon Drive, Montvale, NJ 07645. Balchem Corp. is classified under SIC code 2800 (Chemicals & Allied Products). The filing includes data for fiscal years 2020 through 2023.

Why It Matters

For investors and stakeholders tracking BALCHEM CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Balchem's financial health, operational performance, and strategic direction for the past fiscal year, which is crucial for investors to assess the company's value and future prospects. The detailed financial data and risk factors disclosed in the 10-K are essential for investors and analysts to make informed decisions regarding Balchem Corp. (BCPC) stock.

Risk Assessment

Risk Level: medium — BALCHEM CORP shows moderate risk based on this filing. The company operates in the chemicals sector, which can be subject to regulatory changes, raw material price volatility, and competitive pressures, as indicated by its SIC code and general industry knowledge.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Balchem Corp.'s performance and potential challenges.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240216 — Filing Date (FILED AS OF DATE)
• 2800 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• 132578432 — IRS Number (IRS NUMBER)
• MD — State of Incorporation (STATE OF INCORPORATION)

Key Players & Entities

• BALCHEM CORP (company) — FILER
• 0001628280-24-005397 (other) — ACCESSION NUMBER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240216 (date) — FILED AS OF DATE
• 5 PARAGON DRIVE (address) — BUSINESS ADDRESS
• MONTVALE (location) — CITY
• NJ (location) — STATE
• 07645 (postal_code) — ZIP

FAQ

Industry Context

Balchem Corp. operates within the Chemicals & Allied Products industry, a sector characterized by innovation, regulatory oversight, and global supply chains.

Regulatory Implications

Companies in the chemical sector are subject to various environmental, health, and safety regulations, which can impact operations and compliance costs.

What Investors Should Do

1. Review Balchem Corp.'s revenue and net income trends for fiscal year 2023.
2. Analyze the company's debt-to-equity ratio and cash position.
3. Examine the risk factors section for potential operational or market challenges.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-16: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the 2023 fiscal year, providing a baseline for future comparisons.

Key Financial Figures

• $42,957 — ber 31, 2023, we had a total backlog of $42,957 (comprised of $32,418 for the HNH segme
• $32,418 — total backlog of $42,957 (comprised of $32,418 for the HNH segment; $7,639 for the ANH
• $7,639 — mprised of $32,418 for the HNH segment; $7,639 for the ANH segment; $2,678 for the Spe
• $2,678 — NH segment; $7,639 for the ANH segment; $2,678 for the Specialty Products segment, and
• $222 — for the Specialty Products segment, and $222 for other), as compared to a total back
• $47,022 — her), as compared to a total backlog of $47,022 at December 31, 2022 (comprised of $31,
• $31,550 — ,022 at December 31, 2022 (comprised of $31,550 for the HNH segment; $11,983 for the AN
• $11,983 — mprised of $31,550 for the HNH segment; $11,983 for the ANH segment; $2,980 for the Spe
• $2,980 — H segment; $11,983 for the ANH segment; $2,980 for the Specialty Products segment and
• $509 — for the Specialty Products segment and $509 for other). It has generally been our p
• $15,049 — d development expenses of approximately $15,049, $12,191, and $13,524, respectively, on
• $12,191 — ment expenses of approximately $15,049, $12,191, and $13,524, respectively, on Company-
• $13,524 — of approximately $15,049, $12,191, and $13,524, respectively, on Company-sponsored res
• $37,274 — capital expenditures were approximately $37,274, $49,086, and $36,142 for 2023, 2022 an
• $49,086 — xpenditures were approximately $37,274, $49,086, and $36,142 for 2023, 2022 and 2021, r

Filing Documents

• bcpc-20231231.htm (10-K) — 1993KB
• axex41descriptionofsecurit.htm (EX-4.1) — 35KB
• axex107xrsuformagreementfe.htm (EX-10.7) — 76KB
• axex108xpsuformagreementfe.htm (EX-10.8) — 119KB
• axex109xstockoptionsformag.htm (EX-10.9) — 90KB
• axex1010xofficerretireepro.htm (EX-10.10) — 10KB
• bcpc202310k-ex211.htm (EX-21.1) — 15KB
• bcpc202310k-ex231.htm (EX-23.1) — 3KB
• bcpc202310k-ex311.htm (EX-31.1) — 10KB
• bcpc202310k-ex312.htm (EX-31.2) — 10KB
• bcpc202310k-ex321.htm (EX-32.1) — 6KB
• bcpc202310k-ex322.htm (EX-32.2) — 6KB
• axex971xbalchemclawbackpol.htm (EX-97.1) — 30KB
• bcpc-20231231_g1.jpg (GRAPHIC) — 143KB
• image_0.jpg (GRAPHIC) — 3KB
• 0001628280-24-005397.txt (&nbsp;) — 13047KB
• bcpc-20231231.xsd (EX-101.SCH) — 70KB
• bcpc-20231231_cal.xml (EX-101.CAL) — 114KB
• bcpc-20231231_def.xml (EX-101.DEF) — 384KB
• bcpc-20231231_lab.xml (EX-101.LAB) — 1048KB
• bcpc-20231231_pre.xml (EX-101.PRE) — 721KB
• bcpc-20231231_htm.xml (XML) — 2127KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 14 Item 1C. Cybersecurity 15 Item 2.

Properties

Properties 16 Item 3.

Legal Proceedings

Legal Proceedings 16 Item 4. Mine Safety Disclosures 16 Information about Our Executive Officers 17 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 18 Item 6. [Reserved] 20 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 28 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 68 Item 9A.

Controls and Procedures

Controls and Procedures 68 Item 9B. Other Information 69 PART III Item 10. Directors, Executive Officers and Corporate Governance 70 Item 11.

Executive Compensation

Executive Compensation 70 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 70 Item 13. Certain Relationships and Related Transactions, and Director Independence 70 Item 14. Principal Accounting Fees and Services 70 PART IV Item 15. Exhibits and Financial Statement schedules 71 SIGNATURE PAGE 74 Table of Contents PART I

Business (All amounts in thousands, except share and per share data)

Item 1. Business (All amounts in thousands, except share and per share data) General Balchem Corporation ("Balchem," the "Company," "we" or "us"), was incorporated in the State of Maryland in 1967. We develop, manufacture, distribute and market specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition and industrial markets. Our three reportable segments are strategic businesses that offer products and services to different markets: Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products. Sales and production of products outside of our reportable segments and other minor business activities are included in "Other and Unallocated". We sell our products through our own sales force, independent distributors and sales agents. Financial information concerning our business, business segments and geographic information appears in Management's Discussion and Analysis of Financial Condition and Results of Operations under Item 7 below and in the Notes to our Consolidated Financial Statements included under Item 8 below, which information is incorporated herein by reference. Human Nutrition and Health The Human Nutrition and Health ("HNH") segment provides human grade choline nutrients and mineral amino acid chelated products through this segment for nutrition and health applications. Choline is recognized to play a key role in the development and structural integrity of brain cell membranes in infants, processing dietary fat, reproductive development and neural functions, such as memory and muscle function. The Company's mineral amino acid chelates, specialized mineral salts, and mineral complexes are used as raw materials for inclusion in premier human nutrition products; proprietary technologies have been combined to create an organic molecule in a form the body can readily assimilate. Sales growth for human nutrition applications is reliant on differen

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