BCPC - Earnings call transcript Q1 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. Welcome to the Balchem Corporation financial results call. [Operator Instructions]. Please note this conference is being recorded. At this time, I'll turn the conference over to Martin Bengtsson, Chief Financial Officer. Mr. ahead. go please Bengtsson,

Carl Bengtsson

Martin Thank our discuss joining Corporation the March me name quarter everyone. hosting Officer. this call CEO this for conference and morning ending with is My XXXX. to results Ted XX, Chief you morning, Financial our And Harris, for is call the Bengtsson, Chairman, Good of Balchem President.

involve likely counsel, read will at this does like including risks to will our Following the reflect statement. prove can or and SEC, Balchem's in contain risks materially cause forward-looking no statements expectations various Balchem's the time, and assurance differ belief factors events contain the could or advice statements, which factors identified and concerning auditors that and uncertainties. XX-K. of We correct, that results release Form forward-looking forward-looking our The expectations, reflected our expectation in to give I'd future from

entirety the Harris, I in statement. by qualified cautionary are CEO Chairman, our over statements call and President. their Forward-looking this turn to now will Ted

Theodore Harris

morning, Thanks, to call. welcome Martin. and our conference Good

discuss I to quarter, into response to the I'd like COVID-XX get the Before crisis. our

in the by taken that became to of early primary we for off COVID-XX protocols be response domestic widespread. visitation the got be to as to take world Europe, example, located rest an to of We needed smaller deal to work well including our visitors the protection us restrictions; density sites, reduce morning, equipment, of work development elimination new the in the non-research necessary strict one prepared within internal, for home actions large the face the employees; all delivery the something restrictions of and groups the pandemic. work site personal were travel for this employees the of to pandemic As of has external procedures. and start quarter. been for such safety and and countries personnel; company groups manufacturing press to situation, impacted drivers; both early actions gatherings; more first in non-manufacturing this effort teams; with as Having to masks to from We early that first facilities mandatory in separation shared release relative protocols in around since X X the employees, focus to our in sanitation Italy, international,

in and increasing moved they and customers to our also products well specific prepositioning activated response manage our the inventory certain and the be important with make efforts examining ability to We ensure would need where in Team, of to services we our day-to-day to one various Management on, the continuity disruptive. levels or goods CMT, appropriate Crisis locations decisions. by business and Very lowering timely the relating early risk pandemic to supply chains as by case activities our our serve as facility

for workforce and recognize Centers the and to the work of employees requirements, the and made the and employee Some the positive based of individual during customers the keep creation attendance response to informed response our eventuality early pandemic. or CDC and Board of the bonuses hard within a special of and strategy engagement plan, of decisions employees holding to communication guidelines; nonexecutive plan base, a are and Disease ensure Board examples Control execution of meeting involvement Prevention, outcomes; of of to CMT hourly decisions Directors in an approval cases by on salaried special

allowing running manufacturing keep near-normal sites various open at and the The supplied. the of conditions, taken us employees our of and combination to resilience keep all of actions have our us and to commitment enabled customers our

on teams development our their of carrying all innovation remotely. employees other and and efforts, functions advancing our research responsibilities Our and

that both are were employees are of employees, early X pandemic, individual of had the CDC in recovering and test played and adoption Both COVID-XX. of, stages We cases the impact mitigation approximately mitigating early employees aware the an out our using positive employees have our on the based well. for X,XXX we managed role our our the important cases company. guidelines, response which and these exposure of on is believe effectively our in actions plan, cases of We

the From a limited. financial perspective, first quarter on the was Balchem the pandemic impact of in

likely that attuned is customers will over on to ability aid in far closely, serve to and shifts. and demand we the customers' from our impact from are on, more it However, studying longer more the be significant. same the be demand carries the it that therefore, markets pandemic very at needs respond our to we the our staying will And time, to

strength We tested credit under facility our and capital debt various to we the adjusted trailing our into noncritical significant cash cash revolving and relative this scenarios. our with preserve Despite cash low And and market balance taking are cash. downturn XX expenditures our wherever have of stress going to flows, free actions position sheet expenses pleased given reduce expected liquidity X.Xx we months uncertain to on are hand, this position sheet environment. access balance undrawn net strength, of relatively EBITDA, possible

by We sterilization the medical and food lower surgeries nutrients, to somewhat immunity over including markets, device functional store that food lower products, potential will As in the needs, we raw aiding demand activities. material preservation grocery due quarters certain look protein food demand benefits and anticipate offsetting minerals elective fewer technologies few services; challenged be ahead, weaker from next there costs. animal fracking strengthening and will protein; in strengthening dairy sales be

markets. is forces, revenues impacting global across difficult understand quarter in impact the to duration pandemic, but sequentially the the downsides very given dimensional these overall on this dynamics and lower second experience that of time economic tell of significant upsides the specific for is the overall market and will these at the we While expectation our activity we disruption

take nimble, resources like to over very significant the dedicated I response Balchem watch to COVID-XX approximately we response the Balchem all circumstances. are first of could compassionate respond and the results quarter, the thank Balchem world these given to I be the the will employees proud with flexible and we remain to team. X,XXX to date living for this through. across would accordingly. each ready more the pandemic We of part has are the not closely pleased all to their that of tremendous to of and markets be and opportunity

release our the $X.XX this first represent quarter $XX.X record non-GAAP XXXX, a with quarter which million per of in sales per per $X.XX earnings $XX.X of operating morning detailed resulted amortization million net facilitate first of Now earnings year income we non-GAAP share, record prior net quarter evaluation of an $X.XX this of record share. million as million share and noncash reported $X.XX first to $XX.X $XXX.X per of basis. of $X.X record or A million net prior comparative tax quarterly performance share versus or first of million, the net of increase other quarter $XX.X items, to compared morning, consolidated regard quarter $X.XX period. These GAAP with earnings exclude million or share year or per the on in adjusted $X.X or

solid first cash of million delivered $XX.X quarterly for quarterly quarter free with also XXXX, cash the of from million. We of operations flow flows $XX.X

higher prior Our million quarterly year net sales quarter. than XX.X% the of comparable were $XXX.X

we this and strategic with portfolio Products. revised other all-time release to on As other nutrition, in minor our and three sales Products been and have Nutrition our Human align resources Animal X achieved health focus given morning, of retrospectively This production sales our record Specialty Products, in of our in in Nutrition earnings order included our XXXX all of realignment our operating business unallocated. are We and Industrial noted the has scale Health segments: and previously of in reporting reportable to & segment evaluation segments. structure reported and applied. & reporting activities performance allocation Industrial Health, and reduction

With negative our our impact offset to sales in Industrial negative included these weaker the sales in sales driven The business $X.X related impact to primarily a XX a euro, basis million fracking a in segment, due activity. record a to driving year-over-year of by by foreign point shale was Products formerly the decline exchange to growth. partially decrease sales

of QX up with $XX.X XX.X% the in million period $XX.X same the margin dollars were compared $X.X million prior consolidated million or for gross Our year.

recovery. year Our consolidated XX quarter of the expenses The costs. up related certain and year. increase sales the quarter, million XX.X% as in Chemogas first was of XXXX. of the timing for the were expenses benefiting principally incremental to gross increase points QX XXXX compared the operating mix in margin $XX.X raw to basis lower XX to was acquisitions, the prior to primarily material insurance basis operating was point an from prior of from Consolidated in percent due Zumbro $XX.X and million XX.X% The and due

Excluding assets noncash $X.X expenses sales. with million, were $XX.X operating of expense million or of XX.X% intangible of associated amortization operating

Looking leveraging focus will tightly controlling infrastructure. our existing operating continue and forward, our expenses on we to SG&A

were the prior GAAP quarter XX.X% basis, primarily quarter decrease rates respectively. earnings to EBITDA tax is and expense in for our adjusted were was detailed million morning, $X.X $XX.X X.X% $XX.X from in quarter of an states. for debt $X.X a $XX.X XXXX of as million rates company's the debt The earnings the million, several release effective of was compared with the On X.X% decrease earnings quarter from to overall for were this year. lower operations first $XXX.X The X.X. $X.X in first or to adjusted Interest or XXXX in and posted X.X% $XX.X basis tax operations the $X.X million and enacted XX.X%, compared million an net or above Record on of the the prior million leverage was up tax million, of rate million year. effective $XX.X million from million first attributable a XXXX net ratio XXXX. first our

quarter. $XX.X closed X.X% from the prior income net Consolidated the quarter year million, at up

for million of translated quarter-adjusted our $X.XX. result as an to in earnings We million quarterly first generated were quarter quarterly net $XX.X earnings and $X.XX with the of income turn segments. This free or per share, with year cash over to quarterly through into balance diluted on results comparable call share year's the XX.X% Martin $XX.X earnings share $X.X per the adjusted diluted $X.XX each going go of detailed quarter. year, up sheet. current an out or $XX prior net our the closed back in last flow cash $X.XX basis compared I'm our or of diluted we million, the for increase On and detailed per from $XX.X now to the of net $X.XX of million release, million

Carl Bengtsson

Thank you, Ted.

strong increase sales record Health or offset minerals by December sales all-time growth associated The quarter, XX.X% closed an nutrients, impact choline we sales with the within of XXXX, of acquisition of in markets, was of $XX.X that divested chelated the and by the higher driven Redding of segment beverage For and $XX.X primarily million in quarterly our manufacturing partially food the Pennsylvania the sales sales Nutrition the million, Zumbro achieved prior from Human site elimination we XXXX. & beneficial and increase year.

of the the our first impact was quarter. HNH in on pandemic limited COVID-XX The relatively business

we However, negatively expect all a the shutdowns. demand our as HNH been service end-market impacted quarters to has do portion coming food see business serves to market, where some of by the impact

expenses prior Health of XX.X% timing compared offset sales. operating from of primarily year, & an the million to recovery, first prior higher operations million, by quarter or Our to partially the a from segment $X.X resulting the due aforementioned insurance of Human benefiting earnings also higher year Nutrition decrease from delivered $XX.X

from with from the $X.X million Excluding effect million, $X.X of of were an assets a associated compared The million benefiting $X.X decrease, insurance year noncash recovery. from earnings timing $XX.X year million acquired operations of amortization and resulted mentioned the to of inventory for earlier, prior expense of segment of X% this valuation adjusted or an adjustment in the the intangible $XX.X as prior decrease million, quarter.

for ruminant volumes over we for Ruminant AminoShure the in increase Nutrition the markets. increase sales or ReaShure, to record methionine the a both of monogastric was rumen-protected up and million choline year. with a demand result in $XX.X million, & rumen-protected quarterly as XM, mid-XXXX. of an XX.X% Health $X.X Animal that strong all-time in segment sales prior delivered launched volumes XX% strong well primarily of higher Our demand The were compared as

with terms improved spoke we on about of protein earnings prices market the environment and our the the dairy X last In unique products the of and economics, line for us to nutrition healthier dairy calls of milk health cows. for

uncertainty, at high impact products. on for the is demand degree COVID-XX current it's and volatile highly of this moment may what the With to our with predict pandemic, hard a us environment this have for

in with choline, XX%, offerings. minerals approximately companion strong our up for supported dry and growth aqueous by and animal chelated were growth further in solid demand strong volumes Monogastric our

pressure in continue to the in we We near this continue to experience competitive and term. price Europe, expect

due we the estimate increased related to in first noted stock certain growth COVID-XX to that this basis XXX to demand contributed we their approximately the Additionally, customers uncertainties. increasing And quarter. points ANH European of

Health Animal and material or $X of from higher Nutrition prior costs. primarily million XX% raw million to lower certain earnings up quarterly from aforementioned due operations quarter, & the the were year sales $X.X

in prior Excluding from of with adjusted operations were an the million this intangible XX.X% for assets associated quarter. million amortization of increase $X.X of expense million, to earnings the noncash million, acquired year effect or of $X.X segment compared $X.X $X.X

record $XX.X was $XX.X market nutrition quarterly prior increase quarter. of plant contribution Chemogas sales higher the both sales, by as due driven and of delivered for increased to for year in sterilization Our the the oxide medical sales as compared Specialty all-time volumes well higher product million as segment the of ethylene legacy XX% with device business. million The Products of

market to the on The our supplies by fight surgeries, of pandemic. medical medical a used and with COVID-XX decline has scheduled pandemic increase been the relatively neutral other device in equipment sterilization an impact largely in COVID-XX offset

by expenses million of The prior aforementioned segment sales, million by was the Chemogas. from of increase operating earnings of Specialty $X.X higher first achieved million partially to or and acquisition quarter the XX.X%. primarily quarter, higher Products due mix driven versus the an also increase record The offset operations $X.X year in $X.X

Excluding adjusted the assets to in segment million expense effect quarter associated prior $X.X of XX.X%. the with earnings operations of for increase or of noncash $X.X first an intangible amortization million $X.X million year, this of from were $X.X million, compared

$X.X quarter. prior million, the shale decrease operations Products were from decline by of accelerated prior in the driven Sales compared from the a were fracking sharp segment a million, relating included in to oil primarily loss And decrease XX.X% $X.X decline prices. business of with million quarter, year the activity, further Industrial $X.X year or by formerly in of $X.X a million earnings

to I'm now closing going to some for turn over the call remarks. back Ted

Theodore Harris

of another Thanks, pandemic responded Martin. for extraordinarily well strong a The a to Balchem COVID-XX caring and team the one with sense has special purpose.

to reported market, quarter. to been to continued the device first and the criticality protein that our vitamin infant of us and early X nutrients the medical the have and primary for employees today given products Balchem cash team industry, have has manufacturers, customers for manufacturers, health vital industry, quarter to These our be and to safety first choline agricultural top allowed business prenatal solid our focus by since the extraordinary and micronutrients of our we helped the With as The supply continue efforts minerals deliver period. growth we ingredients focus global formula in the to priority, free to strong for segments time nutrients to flow additional sterilants and earnings net in the deliver to the to to all services COVID-XX the food in food animal nutrition chains. sales the the provide company the to will some effort and makers, leading and the minerals our of mineral response

net and quarter, the positioning The resources on As growth recognize trailing company there to we global our be response, liquidity, into us resilience the through access more once our will allow we of our will our business to we to way dedicate ratio maneuvering of while second debt combined have balance with coming sheet, head the in and long-term toward X.Xx invest EBITDA, quarters. and the uncertain strong cash continue key will initiatives model, to XX-month environment. substantial in market generation adjusted leverage company, today's of our that again impact

would the Martin, back open the up call for will I questions. over to call now like to Martin? who hand

Carl Bengtsson

conference the questions. we for now concludes up point, the will call the This portion Ted. Thanks, open this conference. formal of At

Operator

[Operator Instructions].

is line Ram question first H.C. the Our Selvaraju Wainwright. with from of

Raghuram Selvaraju

in was the differential markets, just wondering, seeing could general in international you you're on is particularly Europe? comment that I sense, if a impact the U.S. how COVID-XX versus

Theodore Harris

thanks and customers. than significant the earlier activity Europe That's Ram, speaking, prebuying in impact from I for We our question. more we certainly But joining, Yes, obvious in for saw an thanks we U.S. the the of also and generally saw did sort statement. think,

So about we in when was would that related was we that, Europe. COVID-XX ANH points prebuy. overall strong highlighted all saw XXX say, of Almost from basis we of in the growth

which So prebuying and much the Europe. focused the on Europe, really is And been that the earlier our impact in see question in because regionally, of Italy. U.S. impact sites was We Europe, was not manufacturing that us, X was being was it, in were XXX% of epicenter it almost really did we that what same call the, just X, the in are sort in activities -- your prebuying for the saw in Europe, of the may have

so was course, we preorder, And have of the closely part didn't different states, in plants the various and work with center. them were in and our to customers across of strategy ask like U.S., States whereas, necessarily United the feel our in to very we

that's So difference from regionally my the really been perspective.

Raghuram Selvaraju

since Specifically give the you how can? relative in extent plants respect the individual to whatever they're plant particular how impact reopening, the the U.S., pandemic, reopening responses spread mentioned clearly responses your within you of on the maybe that you an to individual plants differential granularity expect about could states you locations you the states out across that by with on And to the regarding and some seeing have U.S., operations basis, we're us to to process? going

Theodore Harris

Right.

important So epicenter all Missouri pandemic. so I continued think in note Italy, and it's forth our of York near-normal to whether Ohio, New or conditions manufacturing or country the first in to through sites, Utah, that or have the the Louisiana operate in at across

would facilitate, demand states through products we've customers. reasonably ship up, and to as that really only full time to start our of and I say, pandemic open on to the drivers managed the so our will well that, And like of availability relatively it things shipments,

of opening but think I the performance states that plants the things, not the So by will drastically. change up the facilitate

time start start so, we like been the go functions the XXX will call. really to What work or our sales people managing one work actually And relatively XX rush a or employees those or that, or something whether a XX those ones indicates IT we're we pretty business seminars back up back We, we people XXX had we've our it sales, for what of or XXX have organizations had we've we've or been to anecdote. to over phone to bit actually on to think take attend we long normally, and done back because our normally. me, The be XX to the have how remotely, and we're is able and Health last time, those by our to call. participate that and on up impact when office XXX sign I sign offices. good month well. or on may been & functions Nutrition Animal give I'll a everybody it's have giving in video. or going that. XX get just And manage finance marketing managing quickly get to well, or in the you, going Obviously, we've which to conservative But can do job

we've a sales, good difficult feel and that, to about and to how forth manage So like video tools using able digital how been pretty we've been even so and able -- function tools that conference we manage remotely.

have tunnel. the of impact light manufacturing up it think, a our end is point. So won't But the real sites of states, opening significant of operating just a It's sign this how on at we're for all at a I the the positive us.

Raghuram Selvaraju

industries, ask to oxide pandemic, demand specific the like in of on you be And that? lastly, boosting I Nutrition then product if from Secondly, products, any to & pandemic, to do With in of culling example, due you I about demand side, processing all? not dairy see ethylene here Health you would do of was wanted expect the wondering at ANH that heard capabilities & course, the to the because could Health which how and the lot meat or to X. respect Human the impact of expect on to to specifically due for in In Animal the things livestock division largest we've, your certain really lines context potential elaborate you negative Nutrition but U.S., about which there sure immune impact products demand increase expect the for rise? disruptions a

Theodore Harris

Right.

has been elective to the offset it's And positive sterilization negatives. the But places negative respond market. all the So to medical the lot balanced important devices to course, the of those we And to caveat definitely oxide, other respirators and to surgeries to the COVID-XX difficult date, in largely we have But or tried there obviously, impacts incredibly whether seen equal or ethylene the that. a and reduction prepared topics, just has rush in our relatively tell. really pandemic appropriate and highlight remarks. get, in to is, it's

So And surgeries. type the up single negative. modestly to I'll in that as -- have seen, they QX we've into we reported of early like that April, with delay low of volumes a pick we But again. April, did I normally back talking we're little been. up end think, gone bit towards a the in see we've the we've more the part speak associated seen of legacy negatives elective -- April, digits of

going a huge will don't chosen I from for see of a allowing boom will don't oxide We bit a states pick ethylene that, we nice short-lived But other elective I applications. business things. the those to that think blip, your to relative a think the demand sterilization and earlier be certain be think back dynamic. sterilant -- going fairly We start we'll surgeries. see and So to be back it's see masks perspective, that also guess, see it's up. question, and I And to

So oxide, ethylene think, overall, negatives. relatively positives balanced and I

On certain nutrition and choline. on minerals, boosting and minerals are just minerals in there were see people health generally minerals that vitamins we those forth. side, so focusing really and and to continued viewed zinc iron selenium. And and But immunity their are growth I are the human pleased in are as and think taking and speaking,

real so And seeing strength in there QX. we're

people we're doing their some of of on volume up work minerals. We're relative to was choline is intake immunity of awareness. and a those Our XX% And year-over-year. I is that very volume Part driven vitamins. growth by rates, of Minerals and healthy was of a the minerals is that year-over-year just part basis. that part of XX% continuing that, think, nature of seeing increasing

immunity we into and see health. those thinking So I used our about and we do to as actually And QX lasting beyond. get effect continuing have think may a

area very, were a question would areas where environment. think the that's the out as And specifically Health was in was and obviously, jumping QX, very booming Those healthy business, were was Nutrition protein the I high, So would X & milk today. we QX. really business and uncertainty increasing there's were the in exports say environment most say, a I your were in it prices positive then you? And I specifically. part are in what's first very at of we Animal

little as not down. here. a Health for thought, and business. have Animal quite has Nutrition come thought, up Protein down, bit picked may healthy we our as quite as we have actually maybe prices to continued come down, to Milk prices much not be as actually & April come continue far have

of -- yet. on So business. of necessarily the some and euthanizing But the sites, get the places It how running up inevitably, milk, have shutdowns some backlog, the of and those milk the of is we're to so cleaned appropriate our and that processing linked we'll the the to getting the impact seeing and quickly plants given impact will all inventories, just not and backlog processors be and filling forth. animals discarding back can

there. uncertainty of lot a So

We has results talking QX. pleased We continued the of amount just April a quite uncertainty. really is to haven't strong Nutrition change the along it Animal had day-by-day an with there's almost move ANH. it in And yet. & incredibly really that But We're tremendous Health nicely. team, And seen a market. to for

very And potential was in it thought concern closely. challenge we're a our forward. up remarks, I to as prepared appropriate it that bring So or going watching

Raghuram Selvaraju

Okay. things. And pretty making any on time predictions in sense, are you Or that term, it of was possibility to of impact a wondering the internal the quarters? if you for open-ended? are COVID-XX of if staying on in then intend you lastly, course then at just this sometime long expect X Or to last? X charges, you expect the very goodwill the pandemic? just result impairment few of three Is choline a long entirely the is weighing pending a quick of the over in sort any you or regarding if Secondly, I the sort recovery as specifically U.S. pandemic-related take exiting fracking end, industrial months? how next And segment industry? that general your

Theodore Harris

remember question try is, goodwill quarter the those. we and I'll no, First, not again of we've got closing we've businesses. to the of But gone at as of the all expect. looked audit cushion absolutely various the three plenty like We and do through feel

selling aligned segment obviously and our that really we this market. But talked we not on expect reporting a the reporting expect exit to do that structure. do go that we've seem into business. for revenue to we've We future, do sales in away Again, to to plans the as strategic from very at X.X% leverage are industrial of point to not It I changed would were have not not foreseeable market from perspective. that's say that to exit that make the business. no, corporate into So existing perspective. stop these will be time. our focus assets overall in saw the not minimal didn't before, sales a exiting if expect but we sense QX we just industrial out like Relative anything to us our with

pandemic, is open countries encouraging And do the open see to up, length the relative states to think of I it up.

Again, come And time, we a really so where as at QX this is then starting see to significant the point we and quarter in the impact, a more that coming surgeries by were if and QX business the feel the back, of elective in there. it that to if will though be are first do that. back our backlog about there's are it parts you one after start think pandemic, things of impacted is to

see So back think quickly. of announcements chains, Food be how service, will come and you whether will over many about coming making forth. thousands brand months it's Yum the various up opening that pretty so we stores

those positive things are our of company. for All

have us. some of less these the up And talked speaking, generally think down an we some and like be and running we'll get businesses forth down endure, being the and I we just and minerals or XX%, will strengths of and forth, think and opening and that XX% so impact impact less us they'll immunity XX% that about, on that instead nutrients up the and so of

improvement from think we then is quarter, QX and we'll the there. So see bigger

Raghuram Selvaraju

Be you I Stay crisis. And a job this safe well. very guys managing credible think through and are doing healthy.

Operator

[Operator Instructions].

Ramgopal We question from of Company. the coming Mitra have a & line Sidoti with

Lalishwar Ramgopal

to with couple start wanted just of housekeeping a I items.

potential relative both divested? loss that of also was the contributions And sales eliminated or in site manufacturing sale Chemogas the us with Redding the that the quarter? give from could the and Zumbro were you If

Carl Bengtsson

$XX approximately Sure, divestiture and Mitra. way went Zumbro together $X.X other and for million. Chemogas about the the million, contributed Redding

Lalishwar Ramgopal

it a a being difficult know you time. incremental of by et quarter just I safe, and I of yourself, getting A incremental you're know as number sense, and balance companies, could with But lot was incurring COVID? being result wondering just a cost cetera. sort in don't I as how if when look are And Okay. at to give costs. the of obviously, COVID, including et the margins, I'm And sure we us much have a you impacted compliant sense if to cetera, of it's

Theodore Harris

Yes.

incremental significant in at stab costs. not We saw various decided maybe QX, that. right, those I'll We to So a adjust reasons. you're for out take

would $XXX,XXX costs our number overall in And for include or QX. frontline the in for the response. expenses we the bunch associated we that to incentive to our to of extra salaried And work primarily laptop quarter what double our and employees, gave included in in a nonexecutive, part labs and and incremental extra operate see manufacturing cleaning. We'll so And incentive would similar Very bonuses like to buy folks with us things something who they're roughly the take and that say the sites with printers that numbers. obviously, had to biggest the hourly -- that COVID-XX were pay I And our associated -- continue that $XXX,XXX, about that. of quarter. and our but computers were So was forth.

So in $X we million and million that QX, it. -- expect something be to in $X.X QX, maybe similar

Lalishwar Ramgopal

a us are if of And Okay. sense implementation? can No, you the to being by it's ERP on as great. COVID-XX? that's was wondering you And on give how I impacted the still where costs, subject

Theodore Harris

Yes.

we we It's last and our really sites people And on I we we're system. on the and were like budget had we think new So XX% progressing. how on out, the plan. reported and of operating with in well, something were revenue pleased

the had additional We sites. go-lives have at to pause

are but And big paused sites bang a the that. And implementing so of not more approach, as was way we this theory a at have really X X, you time. we a know,

end through year. be implementing think of We in this And half and of this the of now second into quarter hoped so be finished XXXX kind to we originally of XXXX. year, early midyear will first that, we of had the overall the

X months. probably X to delayed we're So

optimizing contributing budget. new in to are a we until Some that under But that. and had time end. this think resources on And the we're the can optimization, still the budgeted the $XX can under taking in plan for come had we to We refocus the We acquisitions come to leave project. on of basically originally we budget. project million

kind taking be thing. resources optimization that And so a we're efforts to to and to pause finding of actually period this great dedicate

and still budget kind So overall of it's still delayed, pleased project. on the we're with

Lalishwar Ramgopal

any the how resulting was changes in environment wondering potential to you maybe hand, before? and I et that then CapEx cash I And preserve I cash. the of relatively sheet that And balance are Obviously, acquisition is you debt, strong did Okay. reducing of cetera. terms -- current know does the might dividend? there in looking little terms activity, very on curious financials. on was potential have opportunities balance just you just some But sheet, to if mention in have not been a And

Theodore Harris

Yes.

faced the the as and I But -- originally the much that's of to when a do clearer as think say testing I'll particularly, early start, Let say, has of Martin. over of we unknown started we subsided to March, unknown. it I'd bit hand just me we're quickly when picture. now cash with conserving we have I extraordinary pandemic, a February, stress in of the would for concern of that and just

good business this balance lot all uncertainties, of bit about our sheet While on there's feel little this still likely forward. a our impact clearer about going picture really of a of and the and

So we've a were That in paid doing we some something actually, even down month, of to debt. was cash. bit little last the not preserve

So that perspective. have concerns no we from really

Martin is But that early-on very I'll get of some And language to this. to response into related more let specifics. really

Carl Bengtsson

$XXX into in Mitra, Sure. sheet access we're and obviously I we about that. a debt We're that our credit liquidity, a spot. mean, to you facility is of using this good for benefiting low going about with in balance million. have a revolving also think fortunate level, a if And we're The strong us. half position

on so. numbers we another can to runs there's So XXXX. do need one June should we our draw And at that round discretion, million through that $XXX

same here But generate and continue due various the in cash debt model in can as coming So that we flows. happen, near favorable sizes there's we generating cash disruptions downsides potential overall. scenarios, time, of most various at term. flows no favorable to of will we And keep that scenarios sort and

CapEx balance preserving cash a of So just moment, today. From sheet here abundance we're we strong spending sit as good an in it's a less. perspective, obviously, the it's at caution, --

we this originally to that we're in $XX amount to and year do million cash, kind to think spending year the of to bigger just on the the delays. that be this planning had of environment. I $XX not of beginning at million going spending guided hard It's projects we're also due

go of for I not down terms So see at could by least that of more, spend. year CapEx, the $X million if in terms in

Lalishwar Ramgopal

to would it's know was then obviously, But but there anything of some again, opportunities contemplating and I as could now. get trying just it's acquisitions obviously, And a I difficult or something assume an environment. in -- keeping on, and be might I to I it's eye that be again, would difficult assume result environment this do to be resulting this done

Carl Bengtsson

little of due so. say, to looking overall, now do see number do at We're to go the options, as and when different a I a to in we people. obviously it's It's right point we one evaluating harder hard do. of any environment couple at keep diligence always would time a targets a we always But continue

sellers work the bid-ask continuing last for. we're we doing what push cetera, call, And potential bit I wish little in still evaluate what can't diligence have I going an the been phase, a a doing on and of I that bit spread, on at an this there. predict leave hard like to forward inflow environment few should that little targets. based into areas really and It's it would widening processes due with et as sort the if Obviously, environment. to is, do I'll there buyers we slower. to and between move go So to a so. the But looking is years we're the think, overall, future strategic for They are

Lalishwar Ramgopal

the in. in obviously, one year? was is always expecting. rest was little it then should the finally, I I just And view the it a for No, know wondering get we right of lower I to than know quarter, tough that's rate first the was I tax just great. a how

Carl Bengtsson

We Yes. use of which had last little X modeling rates, on we we call their to said our that it, tax which favorable It changed tax previously a particularly or or so, sort appreciate. lower. bit a when this was for deferred We rate XX% had had, us, your impact I X time. states had to around a liabilities, there believe, call

I XX% an think and range so, our probably to opportunity quarter somewhere in year first that XX% on be given basis. full we have between or a

somewhere use the would I in range. So

Operator

Partners. Lawrence Our next questions line the from come Santa of Monica Goldstein with

Lawrence Goldstein

relative have not that's I since well, I'll questions. it that of Otherwise, the were you question. pandemic out thought my or to this uses you're EO What -- of ask out is use questions. I wouldn't asked but one,

Theodore Harris

Larry. the Appreciate Yes. you're I hope Thanks, Staying safe. question. doing well.

sterilized EO. would relative pandemic. I any So doesn't oxide, have are use say, sterilant with sterilized catheters But necessarily EO. ethylene There that there special a to with are the as syringes are

Some ventilators, of sorry, of, EO. with equipments, the the forgetting name the other I'm are sterilized

the do off the and gassing need period for role some a there as used. beneficial. supplies around discussion application for there have or manufactured, it's oxide that time push play those masks promoting real that been ethylene So a that's it's masks There sterilization for to been getting are in some and of that, of right a the not could of already protocols given to dirty -- was was it the places but strong are that, could so-called And forth. have so not who and ideal masks,

So of special the that's new adequate so not for it forth. added has really getting of benefited a just us. Where ventilators opportunity number the been has on kind out of of and so buildup and kind

and pent-up a My waiting And one. can get the she's impacted been little from get it, she's I've bit elective been it. I go that wife here she surgeries. and a is in waiting But She delay negatively knee and real the waiting. needs surgery, to a said, day we're demand. probably kind there's and first think of going And

I demand the itself So there that her as experience we'll do we oxide. that to market, normal want that over but think a not works there. out demand whole is pent-up And extrapolate for of year, see sort ethylene to the

Operator

Capital. Tony question Aegis is Polak next line Our from the of with

Anthony Polak

that could new. wanted a you on there's feedback I assume us it. just you're going it's the you all mention Are on But nothing continuing? matter a on? Or And Just CureMark. there didn't done? know FDA. give still whether studies know little is to of I

Theodore Harris

Yes.

ultimate continues their optimal work manufacturing things. There to Tony. there. side -- on right, to strategy. no And you're continuing news on So are really strategy work CureMark manufacturing our of is we

situation. work is say, there pandemic So It's, would the I continuing.

While has as an it it had this delayed far as really on hasn't certain impact concerned. we're things,

things to we're is responsible those that and And have you So we update more to CureMark we'll same. on continue the for, hopefully, quarter. advance doing next

Operator

time, closing this back the session. turn question-and-answer we've to I'll At of Ted for our remarks. floor Harris reached end the

Theodore Harris

Once And much, are record call thank you Balchem our difficult joining and Thanks, in of really the face it for I strong say of market pleased very business support today very conditions. your the company. continued We enough, team. results, the extraordinary the everybody, the the again, model Rob. QX the resilience can't response of Great. of with

Farm-to-Market conference. be will in one-on-one course, Just meeting will, to the let day schedule. presentation be you of now and on Annual participating May But a XX, a we be of know, full virtual. have BMO making XXth It we'll

talking of then. with some you be I'm sure So we will

in today, look in for forward again late QX results thanks the call to July. reporting participating and out So we

thanks So again.

Operator

concludes conference. This today's

disconnect You lines may at time. this for Thank your you your participation.

Balchem (BCPC) 1 May 202020 Q1 Earnings call transcript