Balchem Corporation (NASDAQ:BCPC) Q2 2023 Earnings Conference Call July 28, 2023 11:00 AM ET
Company Participants
Martin Bengtsson - CFO
Ted Harris - Chairman, President and CEO
Conference Call Participants
Bob Labick - CJS Securities
Ram Selvaraju - H.C. Wainwright
Operator
Greetings and welcome to Balchem's Second Quarter 2023 Earnings Call. 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. Thank you. You may begin.
Martin Bengtsson
Good morning, everyone. Thank you for joining our conference call this morning to discuss the results of Balchem Corporation for the quarter ending June 30th, 2023. My name is Martin Bengtsson, Chief Financial Officer and hosting this call with me is Ted Harris, our Chairman, President and CEO. Following the advice of our counsel, auditors and the SEC, at this time, I would like to read our forward-looking statements. Statements made in today's call that are not historical facts are considered forward-looking statements.
We can give no assurance that the expectations reflected in forward-looking statements will prove correct, and various factors could cause actual results to differ materially from our expectations, including risks and factors identified in Balchem's most recent Form 10-K, 10-Q and 8-K reports. The Company assumes no obligation to update these forward-looking statements. Today's calls and commentary include non-GAAP financial measures. Please refer to the reconciliation in our earnings release for further details.
I will now turn the call over to Ted Harris, our Chairman, President and CEO.
Ted Harris
Thanks, Martin. Good morning and welcome to our conference call.
This morning, we reported solid second quarter financial results with improved margins and higher profitability year-over-year despite softer sales volumes. Our revenues of $231 million were down 2.3% versus the prior year's very strong quarterly results. Gross margin grew 7.6%. And we expanded our gross margin percentage by 300 basis points to 33.4%.
Earnings from operations of $43 million were up 7.3% versus the prior-year quarter. And we delivered a record quarterly adjusted EBITDA of $59 million, an increase of 4.6% and adjusted EBITDA margin was 25.5% of sales, up 169 basis points from the prior year. Our second quarter net income of $30 million, an increase of 1.1%, resulted in earnings per share of $0.93 on a GAAP basis. On an adjusted basis, our second quarter non-GAAP net earnings of $34 million were flat with the prior year, resulting in earnings per share of $1.06 on a non-GAAP basis.