WESTWOOD, MA – Chase Corp. reported fiscal first quarter revenue in the adhesives, sealants and additives segment was $30.1 million, up 16.5% year-over-year.

The increase in revenue was primarily due to a $4.6 million increase in revenue from both organic and inorganic growth in the company’s electronic and industrial coatings product line.

On Sept. 1, Chase acquired ABchimie for $22.2 million using cash on hand. The operations of ABchimie proved immediately accretive to the company’s results, while strong organic gains were seen internationally. Negatively impacting the segment’s sales was a decrease in revenue from the North American-focused functional additives product line totaling $300,000.

For the three months ended Nov. 30, total revenue for the company was $67.2 million, an increase of 0.6% compared to the same period in the prior year. Net Income was $10.8 million, up 45.9%. Adjusted EBITDA was $18.1 million in the fiscal first quarter, up 23.1% year-over-year.

Free cash flow was $13.4 million, compared to $17.5 million in the same quarter the prior year. Chase ended the fiscal first quarter of 2021 with a cash balance of $90.1 million.

"Our first quarter results demonstrated the resiliency of our business model and solid execution of our core strategic growth drivers," said Adam P. Chase, president and CEO. "The ABchimie acquisition, utilizing our excess cash, provided immediate margin accretion with business integration on track with expectations.

"We were pleased to experience a strong rebound in Asian demand, benefiting our adhesives, sealants and additives segment. Renewable energy-related applications provided an additional boost, not only for this segment, but also for our industrial tapes segment. However, continued oil and gas market headwinds negatively affected both our industrial tapes and corrosion protection and waterproofing segments’ revenue. Helping to counteract these effects on corrosion protection and waterproofing was pent-up demand from architectural project delays. Despite the broad-based global effects of the Covid-19 pandemic, all our domestic and international operating facilities remain open, servicing our customers and adhering to CDC and local guidelines.

"Cost structure improvements from last year’s first quarter facility consolidation and ongoing operation optimization efforts helped drive operational income pull through, producing an adjusted EBITDA improvement over the pre-pandemic comparative period.

"I am pleased with our success in continuing to improve gross margin and operating margin, while driving strong healthy adjusted EBITDA growth. The growth of our business is directly attributable to the dedication of our employees around the world, whom I am honored to work with and lead through this unprecedented period.”

"The strength of our underlying business and ability to capture organic opportunities continues to deliver meaningful cashflow generation and support our overall performance. We are pleased with the early integration of our cash investment to acquire ABchimie and its immediate accretion, and we remain confident this business will further support our international marketing opportunities within the adhesives, sealants and additives segment," said Christian J. Talma, treasurer and CFO of Chase. "We are committed to prudently using our available cash and our credit facility, if necessary, to drive revenue growth across our business, while consistently generating meaningful total shareholder returns. Our $150 million revolving credit facility is set to mature in December 2021, and the company expects to renew this facility prior to its expiration to maintain our ability to support our strategic initiatives."

Chase is the parent company of Humiseal.

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