Chase Corporation ,Inc.(CCF) a leading global provider o f specialty materials and components, has announced its financial results for the fiscal third quarter of 2023, which ended on May 31. The company witnessed a solid performance in terms of both net income and revenue during the quarter, reflecting its continued growth and success in the market.
Strong Revenue Growth
Chase Corporation achieved remarkable revenue growth in the fiscal third quarter of 2023. The company reported total revenue of $106.6 million, representing a significant increase compared to the same period last year when revenue stood at $88.6 million. This surge in revenue highlights Chase Corporation's ability to capture market opportunities and deliver innovative solutions to its customers.
Net Income Decline
While the company experienced strong revenue growth, its net income for the quarter showed a decline. Chase Corporation reported a net income of $12.1 million in the fiscal third quarter of 2023, compared to $15.5 million in the same quarter of the previous year. The decrease in net income can be attributed to various factors, including increased costs and expenses incurred during the period.
Cost and Expense Analysis
Chase Corporation faced higher costs and expenses during the fiscal third quarter of 2023. The cost of products and services sold amounted to $66.4 million, up from $54.4 million in the same period last year. Selling, general, and administrative expenses also increased to $19.2 million, compared to $13.8 million in the prior year. Additionally, research and product development costs, as well as acquisition-related costs, contributed to the overall expenses incurred by the company.
Operating Income and EBITDA
Despite the decline in net income, Chase Corporation maintained a solid operating performance during the quarter. The company reported operating income of $18.8 million, slightly lower than the $19.6 million achieved in the fiscal third quarter of 2022. Moreover, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to $25.6 million, compared to $23.2 million in the prior year, reflecting improved operational efficiency and profitability.
Adjusted Net Income and Diluted EPS
To provide a clearer picture of its financial performance, Chase Corporation presented adjusted net income figures. Adjusted net income for the fiscal third quarter of 2023 amounted to $12.6 million, slightly higher than the reported net income. The adjusted net income per diluted share, also known as adjusted diluted EPS, was $1.32, indicating a positive impact of certain adjustments on the company's profitability.
Strong Cash Generation
Chase Corporation demonstrated strong cash generation during the fiscal third quarter of 2023. The company reported net cash provided by operating activities of $22.6 million, showing a substantial increase compared to $11.5 million in the same quarter last year. Furthermore, the company's free cash flow, which represents the amount of cash available after accounting for capital expenditures, reached $21.4 million, reflecting efficient capital management and solid operational cash flow.
Chase Corporation's fiscal third quarter of 2023 showcased robust revenue growth despite a decline in net income. The company's strong operating performance, as reflected in its EBITDA, and adjusted net income figures indicate its ability to navigate challenges while remaining profitable. With its strategic focus on innovation and customer satisfaction, Chase Corporation is well-positioned for continued growth and success in the specialty materials and components industry.