Balchem (BCPC) 5 Nov 192019 Q3 Earnings call transcript

Greetings, and welcome to the Balchem Corporation's Third Quarter Financial Results Conference Call. [Operator Instructions] A brief 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, Mr. Martin Bengtsson, CFO for Balchem Corporation. may you sir, you, begin. Thank

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

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

in this Forward-looking are cautionary entirety qualified statements statement. their by

I turn President. Chairman, our to CEO, over will Ted the and now Harris, call

to Martin. welcome and $XX.X basis. resulted sales per on third $XXX.X which morning, conference call. reported ladies consolidated gentlemen, a of million, and morning, million net income net or Good of quarter in quarterly This $X.XX Thanks, GAAP we share our

million year $X.XX $XX.X of per other third compared non-GAAP share. as net morning or $XX.X in to of share items earnings million an and million exclude $X.XX detailed of or per of the share this $X.X net noncash $XX.X earnings tax-adjusted per prior million represent earnings prior facilitate million year quarter Our performance amortization quarter of These $X.XX increase versus with $X.X operating share or $X.XX the of non-GAAP period. comparative per or our evaluation release

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

We segment in achieved the our higher Nutrition our by segments and of sales three gas Health Human point sales low offset The the the impact Nutrition record million Industrial decline net which to sales our quarter. growth. and to year to negative to foreign Products million driving were our XX growth with and were $X in in our prior basis four Product due prior volumes of and comparable $XXX.X compared fracking oil related a Our sales X.X% growth Animal segments in year-over-year Health sales negative where our of than quarterly quarter was third segments, healthy and remained exchange to year-over-year weaker euro, a partially impact year. Specialty

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

from XXXX. the lower XXX to mix, lower points Our efficiencies quarter, manufacturing consolidated and sales was XX% by segment. costs, in the The margins and XX.X% gross monogastric up Animal point of European certain basis was raw in partly in increase basis QX XXX of Nutrition offset percent margin business the Health within primarily due material

The were timing prior and acquisition the principally XXXX to prior as quarter recovery. $XX the Consolidated $XX.X benefiting the third operating expenses million from year million to an Chemogas increase incremental for to in year. related expenses the the insurance compared operating due was of

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

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

third from this or in X% of from $X.X to $XX quarter million million, for prior to our million million Adjusted an operations quarter reduced effective On the XXXX ratio million for basis, $X.X X.X. adjusted quarter year. EBITDA detailed million or increase primarily decrease morning, the net $X.X to XXXX the to million debt expense $X.X were a $XXX.X European GAAP tax $XX.X third for in basis were or earnings XXXX. posted research million third XXXX in $XX.X XX.X% respectively. an of prior and was and activities. on items, release Interest development million company's compared X% discrete of quarter $XX.X and the year. tax the of was were effective X.X% up as third to earnings compared XX.X%, rate million the the in net rates $XX.X operations earnings above The and our related in with being our was debt The overall attributable leverage particular was

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

translated This in of earnings release, quarter million year’s per earnings $X.X the million year, net quarter. adjusted year share, per $X.XX. last and up of compared were as in an or quarterly $XX.X $XX.X per detailed third comparable result quarterly diluted increase or for diluted share into current over our or an $X.XX earnings our $X.XX adjusted share net income prior million $X.XX On net the with diluted XX.X% basis

expenditures of closed repurchases acquired We an with the $XX.X of $X.X the million, assets $XX.X of XX.X% out generated increase free flow prior quarter to of of reduction revolving of intangible debt $XX.X $XX million. of which million million, year and a and balance record on cash quarter, compared the reflects million, capital cash quarterly stock sheet, and we

gases call cover held Before growth our to of and the in to we of quarter, passing Belgium. strategic closing important few detailed company announced to like the would results by segment, on Chemogas headquartered a Last of initiatives. you activities Martin the acquisition back a Grimbergen, privately the update specialty I NV,

and is on Chemogas our nicely is starting to progressing meet expectations. realized with synergies be to track of integration The

create our Gases. products ethylene will global noted, focused call leveraging acquisition Balchem worldwide, gases that a other on we for we are Performance previously this to which As needs services oxide and specialty business customers’

opportunities pleased We to-date. are for the integration are acquisition this excited about the and creates Balchem with

toll of loss resulting and primarily with manufacturing of business We on manufactured manufacturer continuously companies. of the sale nutrition this candidate made Formula our nature site asset. differentiated assess fit associated and the each divestiture. obvious to lack evaluate our become the emerging infant positioning, Reading businesses. strong financial infant strategic fully non-core site coupled assets On of of it Toddler Pennsylvania position an this or September An Reading of plant tolling various company and X, facility The that we contribution portfolio acquired for products. and The to divested the with integrated gain modest no for our ultimately nutrition marketer a dealings value in and business

progressing site invest in financial has is strategic intentions. believe to our fully We enhanced site growth their undoubtedly in they their as our divestiture strategic to our develop strength and balance Reading the off focus initiatives. sheet organic better improved will This hands ability continue that to our on and

This one overall August disciplined the it capital average share. program incentive in As XXX,XXX associated quarter deployment and offset indicated equity with both a per fourth started our a dilution an to component capital the this call, and on of We return offsetting earnings manner we XXXX executing by completed in largely were September, our cost of early program repurchase $XX.XX in approximately shareholders. our is of shares to dilution repurchase provide a considering stock plan stock strategy. plan repurchasing modest our at

provide our through down appropriate, our other return strategic capital strong a organic not As is retain And capital an aforementioned shareholders. our and pay dividend to attractive strategy compete it debt to growth in opportunities maintain to a balance reminder as anti-dilution where M&A that our stock to allocation consider sheet, will allocation grow for augment with growth invest lastly, to and does organic purposes our buybacks as we priorities. long

Performance States state for which Specialty and has attention. facilities concerns Within over and media sterilization local scrutiny annually have of all sterilized several received pieces environmental at specifically in products for devices enables their ongoing Gases, use. be critical half ethylene to the Ethylene and in oxide the users XX made more devices for billion received medical medical of used Balchem some safe than of United oxide

change the in emissions existing no a new simply mathematics conclusions regulators been is absence of regulation to The this EPA and be the centers in quite of used approach regulate contemplating this only assessment of new new new limits EPA much around the performed their ethylene in that the to own This statistics. definitive a change, with themselves. change of local science can assessment. subject yet not treated office more drawing which the assessment as inherent EPA, a been damaging is devices view a are in mathematical technologies by ethylene and The devices oxide new assessment the used just situation insufficient Some permissible from or and an cases are other some conservative the as has oxide. resulted controversial debate, has has the of to to state risk but and was

in Association this working which regulated the represents assessment to actively from ensure of all device the Council, Chemistry carefully on contemplates the is permissible Medical EPA, with new considers are Technology conjunction EPA Texas that and Quality We that American levels. to appropriate with AdvaMed, as the ACC, available Environmental the other stakeholders mathematical Commission changes assessments EPA Advanced industry medical the emissions and

available reports the meantime, news will be authorities to appropriately assessments ensure to of EPA inherent likely how practically quantitate with mathematical oxide the to to considers uncertainty as appropriate to all and assessment. to we will and There risk. all In state amongst the continue continued work local new ethylene the stakeholders respond

past lower be on various procedures regulations. in as We the consideration to continue will new ultimately to industry these regulate able will compliance and they adopt of with levels then believe a based assessments practices ensure emissions then and available combined that to EPA the have to

products in to rumen-protected discussed to next of the dairy stability industry-leading the This that for enhanced it we Relative world. allow farmers Health, next-generation superior most around methionine. and product our launch year of notably Animal generation offers quarter AminoShure bioavailability several value the first this and new feed Nutrition deliver XM,

the prices. by by are and new encouraged from product, nutritionist boosted farmers early protein further being dairy the this is strong for dairy interest healthier which We and

were XX% over year of important this sales nutrient prior Our the quarter up in quarter. the

progress pleased the positive our to-date and with from the are we customers. response So

We you continue work choline important to update on to several of wanted hard awareness to and studies. progress around the progress

the study report the first the cognitive in persisted if for Last results study were Cornell pregnancy into year preliminary we study were benefits to the the presented during initial to that of follow-on seen later supplementation the pleased quarter, evaluate University choline during life childhood. to

choline access website like other would to search conducted the University, please abstract go Cornell.edu choline cognition been study as well group under the publications the to this select use you of search function as studies research that for and to have abstracts. If Cornell conference by

results excited studies more look the the from continue be about Cornell to and publications. to We forward

a funded to of Carolina's Balchem the Additionally, Zeisel, to Institute study of the quarter University help choline a pilot we be and subjects informed test a the fourth you humans. determine rate after received the fully of based target or in biomarker XX grant approximately XXXX, from Health about Nutrition to the the enrollment of develop million proper funded of Institutes $X.X National North biomarker for Dr. of months. Research Steven that unit enrolled study Director is has on in NIH current expected choline a levels number half The enrolled in

progress were this humans. supplementation being would choline made lengthy a in identified of believe biomarker significantly it ultimate study, is be good a developed to that and progress is While deficiency if we the

of were Blum work pleased develop treatment autism, clinical trial. we recently CureMark completed known their and their stage as also Regarding results the a to with III the unique trial for

we INSAR last or Research on presented were the meeting International in at May As results of Society on Montreal. these the call, Autism discussed X,

can the in in behaviors easily abstract XXXX website CM-AT is INSAR on the preschoolers autism. title For those the abstract with meeting is Replacement of be under Therapy reduction annual INSAR with associated of interested, Pancreatic accessed The the you with abstracts. maladaptive

on then critical of the efficiency initiative rollover timeline over $XX and embarked remains consolidate the manufacturing to protracted encouraged supply have operational are of progress towards ERP few milestones five Balchem and with the company. our initiative, of into is months This growth in financial first focused the the sites. manufacture the for we ERP After quantities implementation project as one, Despite Microsoft enzyme discussed and planning, network implementation XXX. quarters, started April preparedness with year, our additional of the for important the in by ultimate And participants the we on launch systems and staged trials. critical last meantime encapsulated lastly, manufacturing made our Dynamics past from businesses of for this we million previous the and of the and various of in continued chain product consolidation, have trial years a across an

our in about half of that am we call, have our the we that to On revenue pleased you the now new last system the believe one-third and are of new you users next I on revenue the to company on users we middle system. system informed have we on inform had of new approximately of year. XXX% a on by and schedule our the

of with this We important project. progress the are pleased infrastructure

to I'm detailed to over call now of the results Martin the go turn for back segments. going each to our through

you, Ted. Thank

Cereal For chelated quarter an Human million driven volumes. the increase sales our increase double-digit was and sales segment X.X% Human System offset of Health higher by the partially achieved quarter, lower in or Nutrition The primarily third Nutrition sales business $X.X Pharma growth and minerals million, our of in prior on $XX.X by from record year.

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

were quarter. Excluding ruminant was higher and not X.X% prices Health seen the rise Sales the compared $X.X of in market $X.X monogastric million, of of and period of to milk is prior Monogastric respite approximately increase dairy $X.X by the volumes dairy the and with healthier year. our segment or prior in long associated an $XX.X XXXX, $XX.X% our of up nutrition poor the acquired Animal in assets products million markets. for segment X%. $XX compared sales million volumes effect a were adjusted creating to unique million, operations both since for primarily X.X% volumes for increase economics, were line for us Nutrition earnings a species of intangible non-cash to and encouraged we’re class to The species health decrease from expense Ruminant driven from approximately cows. were welcome environment or million by million, which the XX% amortization a of X up levels this in of

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

a in million Animal Nutrition quarterly and foreign impact were million The the our our million and European lower raw primarily partially most impact with by operations quarter third due ruminant notable to negative the aforementioned increased higher operating year-over-year ANH X.X% lower exchange from quarter of $X.X by volumes, the a certain is to prior up development in Health in impact earnings segment $X.X the a investments increased in sales, activity from growth. of driving negative of and and research year driven monogastric as expenses mix material of in marketing business. competitive margins offset business costs result and $X.X

higher XX.X% The both of Especially Chemogas also an product product the by legacy volumes lower $X.X $X.X versus achieved operations quarter, earnings from increase million. million and third product with due quarter increase prior $XX.X sterilization ethylene delivered quarter. the of the The year higher Plant in sales compared medical device the of quarter Nutrition sales oxide offset partially million of market for the million Specialty driven was of to record business. million for segment $X.X contribution in of third $XX.X record segment as prior-year by sales

assets aforementioned by The the primarily $X.X in from effect expense mix prior of sales partially the expenses of of driven compared $X.X for non-cash this segment quarter the Chemogas to associated million adjusted operating by to $X.X increase higher offset amortization higher with and intangible third operations was earnings acquisition. due were year. the Excluding million, million

the due industrial decreased fracking the choline $X.X sales shale segment year quarter, XX.X% derivatives $X.X and of million choline reduced million from or product prior of In applications. primarily to sales in used

more well cash. starting where We eliminating fracking costs possible demand preserve continue to to in industrial only lower to due operators slower and due as recycle but within order segments, as to additives activity, to significantly also reduce not fracking fluids, experience product the

Basin, logistical that around activity as gas As believe are are logistical reduced. and costs transportation will Permian solutions fracking oil the we added being for improve

that operators do among activities the not fracking However, yet, indication we even increase. focus that of will we've as any continued believe well in remain and seen place cost

this cyclical ups remain we the forecast such, accurately and to As and hard cautious historically market about it's downs.

the Our product earnings from a for lower operations industrial the $X.X decrease the million segment due quarter million, volumes. of to $X.X were with year prior compared sales

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

net three GAAP record within net cash Martin. headwinds facing Thanks, earnings third business with all-time from previously quarter operations market record year-over-year quarterly conditions and while monogastric gas. segments oil In the our record our flows quarter, four revenue the challenging and and consolidated comparative and within earnings, across delivered growth we third non-GAAP of noted

within positions are healthy growth years generate and the we come. serve, markets strong we to have over We to we believe, the well positioned

We are progress creating pleased disciplined and strengthening work QX our on continue and our made the to on on Company focusing seeking opportunities. our in strategies, management, acquisition strategic will initiatives growth key cost with by value exercising core

I'd call Martin? now like Martin to over to for the hand questions. up the call open back to

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

you. Thank

line with your question-and-answer Our We [Operator Please be first question from Hundley session. Global. now conducting of with a question. Seaport the will Instructions] Brett comes proceed

morning, Good gentlemen.

Good morning Brett.

on couple Animal to circle questions question then a Specialty. have and business, your want just just on with back I Guys, a of I

quarter your some for, and momentum were is feels potential in really we it that Animal, what looking solid like results were good there the within business. during So, to relative

the your to other your AminoShure demand Are moved you and are starting starting side, relates prices well? see higher in first dairy now have ruminant within see some of nutrients; a of guys questions meaningfully so, encapsulated protein mix months. for ruminant Animal to and segment if as better one to you So, Animal my recent U.S. on so benefit

this strong results is quarter driven by was We noted for the both primarily fact volumes Ted. for was up. than were up that a ruminant we us, yes, significantly Brett, was you It monogastric saw volumes that margin monogastric. Animal and growth what ruminant with nutrition business really higher the and that in quarter the pleased with the improvement really just

ruminant Our the higher margins mono are than margins.

see based to benefit get are when growth improvement mix. margin that we So, going we differential, a on

So, the earnings. quarter this was story of absolutely relative to that part

of as think the And environment no well. was economic there's volume year But, $X.XX to the healthier I even overall I much ago, over prior it or growth prices, $X, prices and was protein than or months say saw protein $X.XX. you’ve yes, up noted, is the from a want the And six part ago year. yes, I question as dairy that's last so it today were maybe

are prices or So, and in $X class milk up year. range, $XX, then from so the which meaningfully up is X prior probably up $XX

economy discussions at to and expect few story. and So, with higher we're we XX%. important least having launch the really in just prices, but an for our see of for we're our is quarters demand does But, starting as because to We're certainly and bode to and this something like dairies. AminoShure feel XXXX. I particular, see well protein that talked up improved it would dairy generation next that business The last of new next XM product in it about up been have starting volumes. result business in the methionine we think XXXX into healthier part nutritionists

back too, ASF in a that to Are at of on you data. to because question data of inventories we starting where broadly. pig chance accelerate give where And we're to Asia market in do offset get now States broiler of offset you're from point what's into China the to here we where think U.S. of some improvement mono your and September the side? investors seeing better a to And point focused within you that across business broiler speak to for think some I reach mono the have now guys see here and up started at think that time in to hog on Europe been about those can in that Do about are and we’re demand the challenges hog that where to you you U.S. maybe now producers, lot lot the noticeable starting I we I when a related I open incremental is place a happening the the know the talk potential when China? we that a hog seeing for in are sectors, demand about we are inventories when that or start mean, are benefits in dramatically right directly see some China

Yes.

answer significant positive So, We the to our growth more that really coming placement about of in in hog sign. business. should the the But honestly U.S. on as I Europe, that date, pleased driven think line side of side, and Part China. poultry we year-over-year. that's way that be to by is, our new results materially a well fuel our for in crisis China it's and and but think driven ago swine hogs the as do that swine are we up has don't quarters and X% meaningfully question But of growth. with further both in us obviously will -- China that don't the But, opportunity eliminated like a poultry are in impacted are outbreaks were and only complicated. as coming few talked to is is believe the but would the tariffs quarters, both benefit response a We our there's business products QX products, African of volumes PetShure very feel we specifically up those the by a launch that we're fever mono the in our again, bit in

and and do we of So, customers yet, play think that role our a perspective forward. is at it birds we placement hogs see our seen but going new and will it the really haven't

comment. Thank some then then is a that released BD In last other me, And your facility in closures guess Georgia. for temporary the sterilization just Georgia Specialty. the October, and one medical FDA a question for late for you those device including on some at comments on of in facilities potential for EO. the I and second closure Thanks statement regarding closure

I ask can happen supply this on on questions manage two closures they that able your you impacts makes you customer such margins, you one, what If Number forward. if issue. side guys have are additional are right material to EO won't secondly your sense? are that chain to then question their And are orders you forward seeing orders pull on because now, pull customers the any customers sales starting seeing if

what in benefit describe the you. a the you're on just can sales side now. that Thank quarter, seeing right Was you

Yes, the it our to relative on the call. those volumes. oxide seen evolving to us impact about to negative ask, important regulatory talk specific any And haven’t Sure. questions for very was ethylene relative you environment that really

moved as being we other been sites. sterilization what seeing to feel few by activities those typically up has we're orders business that really and seen don’t is have these moved though have that affected at I sites

they've pickups we've this and up business. volume So, sites sterilization seen other as picked

our ultimately staying for it's some If And just excess out there. at our that so much business saw a impact negatively business would this additional amount is significant of relatively whole sum we being sites I point. because impacted, only so, reason think capacity

been XXX% were start expect close at it's don’t industry to could it a is time as largely a impact business. And happen, to And We capacity. the but to this really point that at if tapped. in the whole that I running think

about the patients. to pleased see of very FDA of that concern specifically out are the come We their letter safety talked really

from that very situation from certain the welcome and out of of come we were in of see that And happen. the pleased more needs to the help think of devices were of drive lack it of potential ultimately seriousness and the the I will they or the that was recognition couple so could I a shutdown facilities if to that And what letter FDA result medical current availability that think the future.

out And regulate that the how there a to to they're decision the to is relative assessments EPA forward. making various going going as

and impact business this margins no been on any pleased relative far impact to think letter as I again on don’t the real point. FDA really this the as So, today, margins there's major with go, situation we're at

Thank you, Ted.

Thanks.

you. Thank

Selvaraju Our the Ram comes next Please question proceed your from H.C. Wainwright. with question. line of with

for taking my me? much very question. you Can hear thanks Hi,

Yes, we can.

Yes.

Okay.

go don’t to significantly over know wanted that what emissions quick about people if to I seems extent as related of to things oxide it a that can you by this on think the particular are though oxide couple respect just off So, ethylene they talking in appear politicians to where thoughts ethylene build have turn not XXXX. restrict with completely

all had you any political if on know specifically know the to if right on about specifics wanted Just just detailed thoughts I that. commentary you you that talked any now. had current landscape but wanted know to

Okay.

to is Ram not Ram, the IRIS kind legislature Senate. did really and what I and going the we obviously deciding how see yet then to assessment forward that poor the voted really of And speaks pay the us the what federal of house poor Illinois about in is has yes like talking bill based as in on it's data on going absence disappointed that the before EO. So, and said the assessment we're they're and EPA to feel regulate of

conclusions own and their has Illinois. to driven coming are this that authorities in Local activity

medical sterilization all is ultimately a So, of the for course really be of it's and and the an very device of passed have overall yes on impact use EO whether it part would ethylene applications small seeing would oxide market.

ethylene different applications in for would Illinois. oxide use the have many impact on So, of an

out from reaction go come comes that and away So, toward appoint will will ultimately work again that ultimately that EPA lot emission will we're the to and levels localities which and and as decision. to states watching federal EPA closely, manage can this believes industry we of their with a conclusion that a reduce in makes

looks you as Charles new we've online in to regarding about coming ask before also Louisiana I places about situation regional situation seeing we're is talked ethylene oxide. though Illinois, in and thank questions particular different, Okay, that. the like it St. And plants for Obviously wanted in the Parish.

your wondering some there's maybe that you Illinois. comparable or shift been I happen well-positioned that be to if of of how occur And any Louisiana to withstand was Chemogas changes similar talk in in because And way whether not you may might seeing in of acquisition. could also any may likely think to business what the to potentially be these we've course to

Okay.

of state-by-state, I region-by-region, say So, that. really to I and then to EPA, ultimately abide that and think really federal all to do I going by they're guess community-by-community a how want this towards regulated become work that that product. a regulate hope EPA we needs kind the I decide does the not

be or It were to of all like mentioned, or states move if activities Texas, ethylene you Louisiana, or to over one Mexico, the disappointing would oxide country another.

something ethylene appropriate has years is regulated for going regulated many forward. be I levels that oxide and been at can that think

our to us So, acquisition player But hope and how chain make a Chemogas East, really America, around whether that it's Europe, world the the have that's we you're global our correct that really expectation does customers and in service satisfy now that customers. Central our a South of turns sites it Asia, in ability can a network is supply out. Middle the we America,

world. matter were around Illinois to this country I been those regulatory no areas. and the also different country to bit in Now, be perspectives point where and that Georgia But a environments say and wanted at this They're always if move the almost the to I are current case. to say activities unique by want they

think it another. chain that country from So, were supply that or to we that the or with way move our relatively I hope region come state if doesn't it and I of to part well-positioned occur one manage yes but are to

Okay, slowdown great. situation the couple hand And questions there be because then, and on the kind United of one a stories regarding on moving front. conflicting within fracking to States appears the we're fracking the of seeing a

for doing. think is hand the But on things I what especially up considering incentives maybe OPEC frackers is there the step to other plenty of

sort seeing that products of if sort So, fracking and to could pressures of just us picture you respect might on with when we beading saw. you that wondered the front an be the updated provide on of with

Yes.

we that no arguing Martin is obviously business the down the forecasting in is this talked we there I are fact rig that mean, about think prepared year-over-year. remain counts remarks it XX% about complicated So, it. why and difficulties with I given in have cautious

would the some down that that does our that and And also been up built On see XX%. fracking to if and to activity completed. down continue is and completed would volume oil There's have for take demand up, in are will actually that my question being And the mind prices more more we others time. choline. They're fact see we XX% were spike pipelines no about year-over-year. drill

us. seems water be to the market in to lesser would had But around the just bigger to is are this that around being recycling that through process cost has reduction that a Because reduction is just say period have of in used choline difficult impacting additives the the learnings extent. and fluids in the still industry I and used concern fracking our the

And reducing very back did and if curtailed shift that's to back cost, if up question pick And back maximizing would unclear would that and up OPEC production picked cash up prices and oil our toward that's probably commensurately that go away. volume us. and bigger is would pick

to believe business. our And negatively least I that's to to think extent impact that continue going at and we that some

negatively hard to roll obviously could businesses So, an as tell well. it's us if more, and have impact that and on OPEC so does opposite impact should the and for the produces prices

But can again, and try us sell we market ways have continuing to choline been you very to a an still this results. our we the the businesses impacted Well, in we're find market, it's just the healthy important to share see still to of as the market, are cautious significantly in market. in about value

Okay. of about human in to kinetics the ask study business And vein, findings health Cornell wanted in nutrition by driven I the the adoption that that just the and data.

business even could in trajectory the And formal guideline from possibility with already see that further. sales in being segments you whether some to starting well impact think of as in as of particular in potentially data this that the you're the influence that drive kind information that of included there's a the recommendation body whether

just and on is stock One very expect Thank you all publication. could the And INSAR then, visibility repurchases into data in a some have whether the give you any clarity is you to maybe evolve at how wanted I questions. us also and future quick meeting other two ask more appear to occur to in of when likely your you. few

data the a go question. INSAR We the peer know last publication. I'll be in will do maybe from So, when not

are a aware was see in we it to intention INSAR at and can reviewed INSAR that we pleased at abstract meeting any least website in the are in presented Montreal not journal. on the put of but the peer We

and as but to Relative of buyback And to dilution of dilution at really talked we to equity will of the focused buybacks, to a on obviously look capital consideration it's continue those a shareholders. basis, our seek do stock stock to program programs. an the about also return modest that annual provide our opportunities offset on anti-dilution programs primarily the we of had

is the focus towards of on debt. M&A I our that's the can But people Relative studies maintaining dividend and on tune as they paying the organic asked on information Cornell activities our really mean that were we deployment well the as primary capital how down grow can hands at and and choline get shared that their why on call. some to our had

go think we it in really the if the vitamins talked about we're evolving on I to I've we've you'll are past, past. do there as really the studies outcome and choline. And you there impact of world the that these pleased in is think some about prenatal and of to the even haven’t other actually But again, studies really find with talked there, that business include starting also is

And regiments there as is nicely forward vitamins And business will that there part up and very that few there that's of really our choline prenatal out immediate choline include quite that's inclusion several we're of years are think prenatal few the more. and prenatal vitamin that where benefit that seeing be and even I a ago, were included going result vitamins. choline. different, there the Today of a

these milligrams tablet. and But we're vitamins just but issue prenatal even not should firstly that in because the choline saying of it's XXX be it's within on enough partly get it secondarily. Now in if at we or there real-estate milligrams what just and included included focus XX included at think is more will

out American vitamin out coming came kinds on see with should and after and already around a We to intake don’t and come or necessarily mandates include say the come that we're not besides Association labelling point did of FDA Europe, additional get any any your out But changes will body expecting doing daily positions. they to you recommended Pediatrics support prenatal choline. choline recently those and with other of out in that any

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those talking much at Well, thank for you very ventures. the

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end for like our answer closing back remarks. call Harris the We to over and Mr. turn to any the have of reached I'd session. question

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