WESTWOOD, MA – Chase Corp. reported fiscal fourth quarter revenue of $23 million, down 11.4% year-over-year.

For the quarter ended Aug. 31, the company reported revenue fell 9% to $63.9 million. Net Income was $9 million, down 10.9% year-over-year. Adjusted EBITDA was $14.5 million, a decrease of 17.1% year-over-year.

Free cash flow in the fiscal fourth quarter was $12.7 million, compared to $18.6 million in the prior-year quarter.

"Our disciplined focus on margins and cash flow drove solid results for both the quarter and fiscal year, despite revenue headwinds resulting from the Covid-19 pandemic,” said president and CEO Adam P. Chase. “Thanks to the efforts of our dedicated employees, we were safely able to continue meeting the needs of our customers during this challenging time.

"Progress was made on all of our core strategic drivers. The ABchimie acquisition demonstrated our commitment to inorganic growth initiatives. This acquisition broadens our electronics coatings product portfolio within the Adhesives, Sealants and Additives reporting segment with high-performance, environmentally friendly technologies that are complementary to our product offerings. ABchimie’s UV LED coating technology provides an exciting low-energy curing solution for this emerging industry trend. The transaction is expected to be immediately accretive to our results but does not represent a significant business combination. We continue to benefit from our strategic diversification, strength in 5G-related demand and an increase in sales of products for electronics applications, including new electric vehicle qualifications.”

Adhesives, Sealants and Additives segment revenue for fiscal 2020 decreased 8% to $96.2 million year-over-year.

The year-over-year decline was primarily due to the electronic and industrial coatings product line’s sales volume decrease. Contributing factors to this decline included North American, European, and Asian automotive and industrial weakness, exacerbated by Covid-19. The market downturn also affected the royalty received from our licensed manufacturer in Asia. Revenue attributable to the segment’s North American-focused specialty chemical intermediates product line was also down in fiscal 2020.

For the fiscal year ended Aug. 31, Chase reported total revenue of $261.2 million, down 7.2% compared to the same quarter last year. Net Income was $34.2 million, an increase of 4.6%. Adjusted EBITDA was $60.2 million, down 7.7%.

The company ended fiscal 2020 with a cash balance of $99.1 million.

"We continue to focus on our controllable expenses to mitigate the impact from declining revenue. I am pleased with our financial discipline and ability to drive higher margins and generate cash in this environment," said Christian J. Talma, treasurer and CFO. "We remain free of debt with a record cash balance of $99.1 million and fully available $150 million credit facility, which provides capital for opportunistic investments to bring value to Chase Corporation. This was demonstrated most recently with our all-cash purchase of ABchimie."

Chase is the parent company of Humiseal.

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