BCPC - Earnings call transcript Q4 2021

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Operator

Greetings and welcome to Balchem Corporation's Fourth Quarter 2021 Financial Results. At this time, all participants are in a listen-only- mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Martin Bengtsson, Chief Financial Officer. you. Thank

begin. may You

Martin Bengtsson

Martin Thank our discuss joining Corporation the December 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.

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

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

Ted Harris

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

all into year. the another strong get the with some XX.X% grew year sales $XXX of team growth to Balchem. record accomplishments of business three would in the the I our few was million minutes year-over-year I Before segments. on reflect for record of over achieved we Financially, Balchem Overall significant like XXXX past a quarter, for very sales and achieved and

from year. earnings and record adjusted million, We of an $XXX.X of million, X.X% the record of EBITDA also $XXX.X prior delivered adjusted X.X% an net of increase increase

our of the results we challenges was growth. delivering the year of chain year. year. all of in while to you our in supply us across the progress much groundbreaking from record advancing a we cash pressures in all a once faced a delivered success same contributed difficult supported effort made Thank investing and we products. our our the at and again done and that and XXXX, to continued generated an our We these inflationary way the publication And partners, challenging through of million as had job them. cognitive a year of flow, throughout $XXX.X benefits another University of to million team significant employees, by free the stakeholders segments and record maternal very we the maneuvering at flow projects our all Strategically, the throughout $XX.X In behind our research and who while throughout choline the well. time all off our intake. well the support all-time capital on business year strong of And of we pandemic subsequent science It strong incredibly with capped free addition, cash Cornell good

were Compared the was attention a performance We testing correct study signal up than sustained other the of Cornell regimen. detection performance children peer superior demonstrating offspring. of benefits, seven-year-old the that in and of at as significant pregnant XXXX, highlights to published progressed. throughout statistically to and recommended had sustained high are had follow scores ability findings infant Both very the pleased pregnancy This of children more the women during doses in through improved maternal cognitive in intake higher during group research suffered kids pregnancy children findings the to whose seven. were now enduring in new both specifically, maintain testing This twice choline took demonstrated a that dose published December superior last reviewed significant. improvements who cognitive the to confirms overall report that More journal early these the significant statistically that to paper choline were cognitive age choline childhood. led same which original those that

the analysis the by ongoing subject excited publications. also of paper of research future important additional benefits be outcome are very and this We the points data children will cognitive to in of that enduring

mobilizing of prenatal Vita benefits pregnant marketing omni and channel education in to choline to promotions Vita highlight a aimed Working are at segment. campaign We of the the benefits driving activate awareness consumer moms. choline for

this benefits proud groundbreaking to are who throughout of animal and choline the support are cycles. exploring researchers human We like depth science with breadth the and world-class life

once commercialized bring vitality market coming of are bringing are to that was five one this sales again portfolio, to indeed the engineered market years inroads year-over-year make innovation of as products which best our the close XM, XX% showing product XX% development continue growth our methionine and of AminoShure that new from with XXXX. market once with the also over highly percent protected being the our well to new over the we in really product significant We to product to new of pleased again continues that last and the rumen products metric the that in examples measures measures

new supply capacity to product From with and human the made chloride, added latter and choline for systems choline plant expansion important our Microsoft for being into geographic in project consolidate plant XXXX, tartrate by additions will encapsulates which the two's ERP perspective, human line, in our and nutrition animal the significant one, fully and completed chelated and lines, or resulting our investments in corporate time, now equipment Additionally, XXX. encapsulates a have alleviate Dynamics growth constraints we product in facilitate we coming minerals [indiscernible] in in seven chain additional or first capacity significant years.

revenues quarter, site occurring final fourth the new now system. live have our we on in go the XXX% the of With

of with operational for company. budget the across and realization to of the are move time. completion we project many focusing on to the very that are critical on extremely pleased integrated entire benefits company the This on growth delivered of of We on was being systems initiative the one and efficiency from continued implementation pleased was this and

commitment our also proudly and released and report sustainability made environmental, XXXX and to both usage ESG significant ESG are in in the which to many XXXX across alignment Earlier governance advance progress and we XXXX, of and inclusion as CEO in gas accepted the environmental, relating in the efforts third Inclusion frameworks. within our initiatives a advancing social initiatives. widely we our or to details water XX%. its reporting by goals the governance social ways for diversity organization action we advance greenhouse The the in reduce year, with pledge workplace. further announced to Diversity signed company's We report our emissions Balchem

will a responsible the future commitment on fully companies result and responsibly the the our anti-corruption. for are to Compact, human Balchem Global our was confirming integrated business anniversary by we These of America's the and our alignment of We communities one-year one Newsweek efforts our suppliers, labor, magazine UN of for Recently, and second with rights, employees, also environment celebrated to our consecutive into XX a named operating commitment strategy efforts, the most our to support customers, shareholders. principles continue year. sustainable creating and as

purpose social healthier making have continuous other responsibilities, improvement We take our higher of a made steps corporate relative the of in progress our and our to and journey important world continue the place. achievement many significant to

the Development of Ms. very Fish Innovation Kathy I Research XXXX. Board Company. in was formerly June Officer was Fish Additionally, Directors to that Procter our of the Chief at Ms. pleased added our & Company's and Gamble Board

growth to she to culture. new acumen business Board So build with ability a important experience, brings the along and direct-to-consumer Balchem and development product international her

recent again and our of dividend, the over of have to into increase pleased strong to XXth from our very forward our consecutive to our And $X.XX growth most dividend Board, share she longstanding Kathy XX.X% This significant lastly, are We make will come. strategically to XXXX the $X.XX financially another we and per on All-in-all, double-digit annual beyond. to taking year year a we in another and reinforced years for December, year-over-year. strategy. the to momentum both once our undoubtedly contributions dividends, announced look continuing marked which increase to our Balchem dividend our and growth increase commitment

Now, regarding operations X.X% and our the $XX.X were were from quarter. $XXX.X organic versus strong volume X% XXXX. year the of reported on fourth million morning, XX.X% up quarter prior This adjusted earnings results, growth, revenues of million, fourth quarter we up

Our through a GAAP $X.XX an on of of go increase results flows were back for On to million, detailed non-GAAP basis. turn am $XX.X of $XX.X of a flows. $XX.X Cash earnings operations quarter we on the continue flow per over for earnings share now of from net fourth of quarterly adjusted each cash business of our and to strong $X.XX the with per the million income share call for XX.X% third financial consolidated the were increase segments. Martin our basis. million, basis, company X.X%, $XX.X to million. to resulted I net an in free earnings deliver resulting in going results And an non-GAAP quarter cash the

Martin Bengtsson

Thank you, Ted.

As Ted challenging delivered financial environment. in mentioned, results a we overall, strong

$XXX.X of all & segments, versus million with XX.X% up Human Animal were sales three and net year Products. quarterly Health Nutrition Specialty in Health, Our prior Nutrition growth &

XX.X% million versus $XX.X gross or year. $X.X was margin quarter million, the fourth Our prior up of

accelerated quarter, the managing compared was compared prices. quarter. cost million fourth approximately sales partially quarter material, points Our freight In inflationary year basis consolidated We've the primarily material a raw by offset XXX approximately and of higher quarter, third of XX.X% was pressures we distribution fourth X all and quarter. gross XX fourth costs increased in raw although to input margin the million XXXX, the in of selling the increases decrease prior the inflation sequentially into been point XX.X% percent XXX to and from to down due experienced average year, further basis quarter,

working million approximately these And price and through recover X compared increased addition, year. we prior these million through actions. costs strategies sourcing and mitigate in increased to pass distribution the of alternate driving in dramatically, through in In freight We're the have approximately increases. to costs quarter, to actively pricing XX quarter increased fourth the costs challenges

a input here difference costs and in quarter to the price margin prices, to our between the As in raise in higher resulting period. there's increases We've ability before, of help first shared usually quarters our we've negative approximately gross one the timing impact a of XXXX costs. increased offset to implemented to two additional interim

in million the the and an With expenses quarter few were ratio XXXX XXXX part debt were on quarter an quarter company's a The higher X.XXx. was effective and year. of quarter In in the into XXXX or for research along The an first a of XXXX. third credits, costs return of was quarter fourth our income XXXX increase year. escalation of million the gross scenario was period. million. and in from Fourth and to we prior gradually for of escalating, of $XX.X to percentage driven time we The XX.X% stock-based increase levels Interest the of the prior $X.X XX.X% X.X% the year primarily will in a X.X% expenses or moderating quarter On were $X.X fourth quarter Following compensation quarter. increase $XX.X in earnings through XXXX. the $XX.X believe into million adjusted tax benefits the the rapid to rate leverage XXXX prior prior from is historic quarter quarter due a lower $X.X in rate able Net inflationary operations million, expense net an GAAP development, up of million, in certain earnings with quarter XXXX, $XX.X tax effective the and of EBITDA $XX.X quarters be adjusted where tax was tax were at increase the pressures basis more up or material, fourth our inflation compensation. margin fourth above quarter to respectively. a non-GAAP million, XX%, longer and from morning, to to we the compared as have of as $XX.X selling $X.X the primarily release debt Operating for input detailed the operations compared quarter. the seen million fourth million basis XX.X% attributable from an fourth a for later reduction overall $X.X increase related costs. million, earnings in increase this to by net million, compared and year closed was up fourth no of

per the million cash $X earnings earnings quarter million an generated for net diluted into of our adjusted the translated up out $X.XX $XX.X cash increase quarter, and income X.X% million net quarterly of year $X.XX, diluted per free fourth $X.XX This the year were $XX.X On closed with we or million, We $XXX.X of prior XX.X% quarter. prior an or of sheet. balance or compared share quarter. year compared basis, share the adjusted quarter with current flow the on with quarterly

of at As strong of health from and our XX.X% we by sales year. manufacturing well partially was for segment both higher strong costs, expenses it human and The & Earnings flash and our insurance X.X% business. due ingredients versus prior XXXX perspective, event resulting $XXX.X increased development Nutrition driven average selling sales occurred sales, of food of input increased related by quarter higher a and to as Health a quarterly minerals freight flood from operations generated the an within $XX.X million, and Human our the and costs sales costs. to prior as look prices higher an significantly increase nutrients increase primarily was offset our distribution from growth research increase nutrition segment primarily that higher second year, during the an business segment from reimbursement million, operating

million. $X.X quarter. and offset acquired the to from of with $X.X intangible of assets an of net insurance of increase Excluding earnings million $XX.X amortization non-cash for were of convertible million segment by expense million, notes compared reimbursements year effect operations $X.X impairment associated this the prior X.X% of of Adjusted

sales, higher from was to products. segment and Health protected million year in the quarter Animal Health result year higher the of increase both the of that sales companion segment ruminant markets. an prior strong freight choline, increases and were growth Overall Nutrition and in occurred by to reimbursement ruminant encapsulated Our flood up higher related in rumen within offset XX.X% distribution markets of XX.X% increase due costs in manufacturing to species solid $XX on were with from sales the the second offerings Nutrition average generated Nutrition million, partially input insurance costs. sales volumes species animal monogastric the event selling to prices Animal & XXXX, an and flash Health species the higher volumes & monogastric strong feed up and a earnings growth without & quarterly quarter proprietary XX.X% $XX.X of significant and of operations The sales quarterly prior also Animal during quarter. to compared for grade the of

this of effects of million. million acquired insurance expense a non-cash operations adjusted prior quarter. earnings and $X.X decrease of million, the with a intangible assets compared offset $X.X the amortization Excluding associated were net of for to by $X.X reimbursement segment of from X.X%

from which the medical market. Products sequentially a versus device elective prior segment of third sterilization operations go costs market, The gases million, and an million, the primarily in compared due strong of by partially increase to the Product X.X% sterilization $X.X nutrition performance distribution higher manufacturing lower the of market largely by increases XX.X% $X.X increase freight grew primarily increase input and our the partially fourth on surgeries. the into of products, of negative despite quarter was the $XX.X generated quarter, offset recovery number the sales into this Omicron sales Specialty had quarter. the medical or device increase showing for sales X.X% plant gradual sales variant of with Our volumes million, the costs. Sales XX.X%, higher of earnings to and market offset of versus quarter an products prior impact year Specialty was year due delivered

million closing for amortization of segment this of assets earnings to with With the net effect insurance an were that, million, now and Ted quarter over I'm X.X%. intangible to by million. increase of operations reimbursement adjusted the some non-cash going $X.X offset from back Fourth $X.X expense of $X.X Excluding associated remarks. call of turn for

Ted Harris

Thanks, Martin.

We and both financial sales, growth are year earlier in Balchem off Balchem's solid another earnings with results morning, tapping pleased where delivered this flows. great we for cash reported

this shortages, inflation. indirectly, directly global while cost disruptions COVID-XX supply managing and and labor with challenging leading to in All exceptionally escalating environment of chains, an

growth encouraged initiatives the ahead remain We our of also long-term about and to us. growth progress strategic continue opportunities

back much. questions. again take across thank Our this call that happen I hand helped leadership and of year the future. we employees a the Martin over day. make challenging up positioned to opportunity only where us. results today, the to in the not all have call you be the XXXX I would unique markets, now was like for we for successful of well very world who attractive are show Balchem Thank will to Martin? open but who it also the capabilities and every all to once into will

Martin Bengtsson

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

Operator

Thank from [Operator CJS of Bob you. the Securities. with Labick line comes question Our Instructions] first

Bob Labick

Congratulations on operations. strong Good morning.

Ted Harris

Hey, Bob. you. Thank

Bob Labick

Absolutely.

out Cornell and the stuff some big So of then obviously very recommendation good certainly study, two outside and the and including very of of last kind validations, you months, news, study NRC have the six really, well. the kind in as Cornell

my information So do how steps just incremental it? into -- backdrop lobbying? spending positive you further? forward? raise good is, and and lean I this drive take? question do validation, it I'm that do you validation do growth Is go how Is awareness? grow How take for you there the and What you going this with guess great this market

Ted Harris

do certainly that need validations in with governments, the the about really forth. some marketplace in one matter supplement matter, last -- in institutions if advocates over and those with there of building manufacturers we Bob, you're in recent are anticipation a really extent but will, right. beverage the because talked marketplace, to with the driving marketing doctors, or of we've So to the think year reason vitamin to more well. come. I awareness, of as And knowledge others had it's it's so this is, and two We've lobbying so honestly with And investments not nutritionists you the nutritional and and manufacturers a matter our

that really of important the by of communication, awareness, channels investing in different marketing awareness that and validation and the over been do. but there that an just really to to work And are not leg these of shows come, we've part the early go how doing and that metabolism, really significantly validation that's X to driving about But which these studies that's the continue to time choline that benefits leverage just DHA, XXXX, study the some to part of hard more about around that, work And criticality we using So of points and that's going years. in to otherwise, it's important another choline new how be we're build studies, again, of can we for to been digital talk we've we use these the it. with we're hopeful is need need able Omega marketplace. we'll really

Bob Labick

And about the Can to you translated and this the how Okay, you're improving year into new any us you past your super products and it about helpful. Thank development in you. pipeline new product, the vitality talk sales product year. spoke you an out coming get market? How then exciting going forward forward? gave looking that update into are and the

Ted Harris

Yes, absolutely.

this we I'm think across ready all that products that additional will quite releasing to of segments. not any we're our disclose year, really, business for but ready I three primetime sure or be yet

space micronutrient plant excited the in products new really our that interesting capability about, to some line. biostimulant we're bring have a product that nutrition We

year. the and on latter be as from well space, animal of to And nutrition the that. that and the about or we're market. new the then worked generation excited in and next or human both new the in ingredient beverage many as marketplace, food and And market segment, products part look the about next in products In think the new that of the we're in new about the health and They're are introducing to year working will excited them. to to two some And really really whether there. being XXXX, ones where nutrients that's side, very within also forth. choline many space. health business. the units the a And launching So we that systems, products nutrition at perspective, exciting We're we'll we're really, sub have protein, really on be those on introducing and constantly And plant-based so then space interesting where business we other that new the area. minerals developments

should we're about more more. think spending to as we R&D even on But we well, than importantly, definitely they investment we our we're marketing I money So be just R&D as because today ever And spending organization. adding arguably, talked differentially go hand-in-hand. have,

looking beefing to in the we're about forward portfolio. And So up year introducing, yes, years. new we're to products marketplace excited and We're this the investment. the coming

Operator

from of question the Ram comes Wainwright. HC next Selvaraju Our line with

Ram Selvaraju

respect to the anticipating just generally can the pace after inflation if expect macro little actions outlook if be keeping to even drill then be may just a little take overall with you you bit updated to down could talk also, you're And on, you abates. to levels costs. respect additional what maybe economic you adjustments and bit a pricing transportation maybe maybe you're mitigate sticking around pricing forward what sort of Can Firstly, with at about inflation or environment. with looking going how inflation, outstripping

helpful have significant know. of the culprits costs those we can are, you to are. there's clear most that operationally sense the front, that, that Now anything a worst would know where If do be really of, you on drivers what

Martin Bengtsson

we for it been ended which thought of This inflation, our we or getting expectations, good then times throughout if so. $X accelerated the where, full were year. have case we've $X.XX sort had consistently actions, and we taking outstripped has of And the inflation actually, side Yes, many the increases in and for to of morning, pricing of the example, start price and was the short we the inflation, so price Ram. inflation, where, we would, on side year, And up actually thinking of XXXX, proactively our of in maybe ahead pricing Martin. is many that on response house, we the

quarter the We would we that if have the year. additional if recover late here can prices so flat, in quarter price what we've stopped, speak, implemented the so in inflation first of have were us priced lost in some fourth ahead put and we that to here through increases,

really, recover is, back and we pricing question goes. get we're where to where margins that the to our is been so What they control there. return So we get have to really inflation historically, don't

on second prices, so sticking a the the on portfolio, down, The okay, come plan. input or month tell can't of out costs the even I we've that but way, around, next that should well, where based around expect will play varies do if the look. elevated you we not ones inflation's on the So question, And that, of in coming that that price continue hang will little these are already to up, part that bit, recover prices go depending based margins our your the here the in taken. actions you

we've in costs come a scenario a of benefit the down, the right of We where there's index parts delay pricing down. where us coming portfolio many a been times, have to talked XXXX, up, gone hurt there the some more we've pass delay prices is follow and about sort of index have pricing, as input reverse a in and the -- that through in that

where good you in really to reduction We if the business, on you'd levels that's prices definitely and the For best going it abilities where costs. the can to or your it's vary like of from and that of have to benefit index try net-net. and not obviously, tied back. it to we hang portfolio dynamics call hang across input on or But other and parts to be to where to elevated or the portfolio that competitive the any deflation the on give in dependent of we any so some

Ted Harris

on third via I'll dampened costs. the found that to should no spend But be it parties we've the guess the Maybe overall impact chime we've costs, or air there's freight the mitigate inflation. to that be. avoid way more transportation than We've And was needed last I question. some found to fragmented ways but somewhat. on multiple in

we extent consolidating been and we've perspective, to spend so, leveraging a bigger we've the XPL's beneficial certain spend a has lanes. fewer, cost And that can from that found particularly with some that, been of on

I'm speak, we're buying so some manufactured that product more sourcing. just we avoid of base Malaysia thinking raw European And found the it our of that really within a is material that change processing. closer of we've one shipping from also us doing that. example for We've buy companies point And and we as were our a found further can of of supplier and we using need. that now that to enabling local the to or amount reduce of area source kind freight we're of and less, to

a continue fewer there's around way no So it. some that's helping, kind and have we're of doing We'll environment. but to anyway. But that, we third with still spend inflationary as it's yet significant well found as the our consolidation parties inflation of work

Ram Selvaraju

Yes.

other then quick ones. couple And a just of Okay.

the that portfolio arena? not? effective that attractive tax your some your why that would usual, are just if If that anti-aging when it's ask in guidance Martin overall XXXX be on rate the And Do you what and might in verticals, Thank you a as general, not you feel strategic you. of, fit? opportunities for in be question recurrent or evolution? it's Firstly, look the us I'll then, good to strategies pursue what H&H exposure And interested broadening so, at specifically? all for at not, you expansion,

Martin Bengtsson

Yes.

tax I I'll past we take rate, XX%, similar above on And that wouldn't but think a around came little rate, one a I I rate or bit XXXX. So it first minus or tax effective plus in change expect maybe the to in for the take tax here for give XXXX. just what would guided we've

number the same would estimate. I best as use So that

Ted Harris

perspective, on in And aren't for studies, to young the anti-aging, of of that studies the but we be really impact others. show firmly we will that more choline. anti-aging Selenium to an a choline dementia part believe be looks the discussion. the it. the really minerals year cognition studies, human even there has your on initial choline, But about studies And element obviously, cognitive elements one opportunity an children this And that anti-aging question the be here of year, of choline embarking any there of we that will from this there for to are that there than products and today, benefits clearly Alzheimer's. are study some really part a at And we're animal and are there's serve most believe, existing excited that we

So relevance of has course, anti-aging. that for

an category for us, it to extent continue in we already some So and that play participate area. to will find ways to is interesting

Operator

of question comes next with line Mitra Sidoti. Our from the Ramgopal

Mitra Ramgopal

coming also much pricing, you implementing in the increases and just in success, several you Europe? of, can First, just the terms having then maybe in and getting, of curious if been pushback of how terms on clearly pricing back talk about a you're

Ted Harris

impacting are us, natural derived. Sure, yes. Europe product some in pretty right in It's having what's category gas are Europe But is with of around also similar in and North a many situation many now. us there is our natural on in gas raw significant materials impact ways The America. it differences as Europe

push I but cases. monthly our gone to to that, used difficult in with this that the in or that all-in-all, we're our something discussions that's quarterly is would cost to it's U.S. environment both suppliers quarterly relative having about, a significant have seeing and to way monthly quarterly have and annual inflationary very many to impacting suppliers it weekly, went and We're significantly, I and back, that difficult guess And very went quite we that in now that to in. us increases from be closely watching pressures really answer So we're Europe

want where And And so, increases. minimally customers. sort those labor material is ourselves those And, same these if things. we are inflation doing have as generally customers environment represent to very on and would of inflation, an with growth will. discussions I discussions the from significant this to and takes our all all given and of our we're raw that whole kind it as inflation's. difficult it's everybody you discussions a around We're the new in trying of introductions host the But well experiencing away pass be speaking, difficult where fact having we're of you to input bucket, those whether in significant having product our we're to say

And they're them think increases. understanding having with speaking so with inflationary because generally forward, coming just we it's us their customers prices by and to because our [indiscernible] I are able support move as well, with to to prices not and these move

ag think, I talked together, that think in area in the I all-in-all, about, talked particularly challenge in we're more well the our products cost the think some same generally, in But others, So of difficult. dairy destruction. I or I is be others of I that received, the it's have whether about increases, bit some one boat these it's can of demand a areas, where a than would industry, some cause QX

elsewhere. more it's, the or little a small important And grand we're so relatively more than again, of pushback long-term, for us, it company, of bullish we maybe one very bit were the But area that that's in scheme company. -- while a that's market and that of cautionary about the a approach having part

Mitra Ramgopal

and that to seeing since for pre-pandemic, the the with a in you're of and done before of just curious not onset that are able And the relate on changes M&A pandemic just of then opportunities receding, deals might which evaluation M&A you're COVID. But it front? couple environment has maybe out now in terms have front, some just and before your existed get nothing to there potential appetite the

Ted Harris

is always been, our company strategic our certainly, profile position our improve the of of sheet balance to been think leveraging keen on growth our smart always by same company very the and really it's the we've as I appetite acquisitions. making

plant So and we're the bit, heads, acquisition, people I think, meeting exactly our and months, same. that in an for been early our the COVID, appetite maybe little all do COVID that. without how is impacted have also we six clear touring of us about the a scratching can

return discounted active I we're to high so Valuations say, do make more all flow think ever, a on. getting than pre-COVID. us. that as behind maybe would the and we And flow, were, cash are that's and and we have we sure we're modeling certainly as do I appropriate diligence and think can analyses that need cash to active, that something due I

would a M&A valuations. say high those valuations, are knows properties I incredibly sale, advantage of challenges. so, on some it's an hot lot creating partly are to take There everybody But And been for market. market the they of because want

as So it has our we're the ever active same been. is appetite

that like the will interesting for to as once our to opportunities that and to more we you will do consider pre-COVID. strategic I'm as our actively Board acquisitions have again, Really did confident months. out, identify for continue we we pointed We we add company XX to last as continue

Mitra Ramgopal

have know, finally, Caremark Okay, on what's there? And an quickly, then going on thanks. update just you and don't relationship, I if Great.

Ted Harris

third-party The I Caremark I've significant do years speak of did validation And to we the that I nothing in cell change strong that have as has construction our I equipment as ago running material we Yes, to that. And -- couple very report, is a ever update relationship speak the do, that we're manufacturing talked past an equipment. decided partner. been. that there's but in or as with is in complete. batches can there. And as pleased we it to of about that I'm

is type materials. that equipment so, And ready run near to launch very the of needed quantities

again, file relationship on happen with bit to our been working partner, supply complete product a we're the waiting from capability. to very to us what this pretty that need manufacture continue change So we've will them. very, this be evolves. be what to based decision a being we're filing we the They years BLA. has seeing manufacturing good that is, on everything And And, doing to we're that Again, to relative they hearing of to couple very got a to a making manufacturing Caremark, it ago to ready perspective, feel as go after close our we like to market, significant believe and part doing year.

soon And from batches be forth behind be us. so the so for those BLA. that supporting And we'll qualification milestone data will and

And not continue too are future. We still the possibilities excited the progress. so Caremark we in distant to of about

Operator

it the to Mr. we like Harris have hand all back to is time closing for I'd questions. That remarks. for

Ted Harris

full for joining financially, the again, our proud Doug. progress, while quarter the that call we've Yes, just We XXXX with fourth make strategically. good macroeconomic And results the set I pleased thanks, continuing of that just really for facing. company like today. once We're XXXX. thank challenges new to And was very been our everybody the another strengthening Particularly the strong year company, we're one very records to of. year of for given

in we hard So joining today. this your your support time announcing you we QX call really And we're to be well thank going appreciate And but forward that. throughout the year, results to doing already to as it's believe again as Thank April, the morning. you. look for XXXX

Operator

does gentlemen, participation. conclude and you for Ladies teleconference. this Thank your today's

time may your at have day. You disconnect and lines a wonderful this

Balchem (BCPC) 18 Feb 222021 Q4 Earnings call transcript