Balchem Corporation (NASDAQ:BCPC) continues to be on a hot streak in 2018, helped by a growing economy and strong demand for its products in a variety of markets. After double-digit growth on the top and bottom line in the first quarter, the company accomplished the same feat again in the second quarter. 

Here's a look at the high-level numbers as well as a breakdown of some key results in the quarter. 

Supplements on a table.

Image source: Getty Images.

Balchem Corporation: The Raw Numbers

Metric Q2 2018 Q2 2017 Year-Over-Year Change
Sales $163.7 million $147.1 million  11.3% 
Net income $19.7 million  $16.5 million  19% 
Diluted EPS $0.61  $0.51  19.6% 

Data Source: Balchem Corporation Q2 2018 earnings release. 

What Happened With Balchem Corporation This Quarter? 

The headline numbers are strong, but Balchem operates in four distinct businesses, so the breakdown of operations in those segments is important. Here are the highlights from the quarter. 

  • Human nutrition and health segment revenue rose 8.9% to $85.0 million and earnings from operations fell 11.1% to $10.1 million. An unfavorable mix of products sold and higher raw materials costs contributed to the decline in earnings. 
  • Animal nutrition and health sales rose 13.5% to $42.0 billion and income from operations jumped 92.8% to $7.1 million. Both higher volumes and higher selling prices helped drive results for the quarter. 
  • Specialty products revenue rose 10.1% to $22.9 million and segment earnings were up 7.8% to $8.7 million. Sales of plant nutrition products and ethylene oxide drove growth. 
  • Industrial product sales rose 22.5% to $13.8 million and earnings from operations were up 68.1% to $2.7 million. Higher choline and choline derivative sales to fracking customers were the driver of better results. 

You can see that each segment had revenue growth and there was earnings growth in three of four segments as well. In recent history, it's been rare that all four businesses performed well at the same time, but that's exactly what happened last quarter. 

Balchem also recently paid off $210.8 million on its senior secured term loan A, which was due in May 2019 with proceeds from a revolving credit agreement for up to $500 million. The new debt facility is a senior secured revolving credit facility that's due in 2023, extending maturities for the company. 

What Management Had to Say

There weren't many flaws in the second quarter. CEO Ted Harris was happy with the performance and financial adjustments that give the company more flexibility in the future: 

We are very proud of the strong performance we reported in the second quarter of 2018. We delivered outstanding financial results, with quarterly sales growth in all of our four segments and all-time record adjusted net earnings, while progressing our strategic growth initiatives, and strengthening our financial profile through our new revolving credit agreement.

With the economy growing and human and animal nutrition more of a focus for consumers, Balchem looks positioned to keep the strong results going. 

Looking Forward

Balchem doesn't give guidance, so we don't know what management is thinking for growth in the second half of the year. But I see the economic backdrop being strong and the expanded credit facility will allow for more acquisitions if management sees fit. All in all, it's tough to see many flaws in the second quarter for Balchem. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool recommends Balchem. The Motley Fool has a disclosure policy.