WESTWOOD, MA – Chase Corp. posted fiscal second quarter adhesives, sealants and additives revenue increased 29.2% year-over-year to $31.6 million, with $5.4 million from organic revenue growth. The revenue improvement was largely attributed to electronic and industrial coatings product line sales to Asian and European customers and contributions from ABchimie.

The company’s functional additives product line sales, which have a North American concentration, also experienced volume growth, with the operations of ETi added to the product line following its Feb. 5 acquisition.

For the six-month period ended Feb. 28, the adhesives segment recorded revenue of $61.6 million, up 22.6% year-over-year.

For the fiscal quarter, Chase reported total revenue up 4.4% year-over-year to $68.4 million.

Net Income was $9.2 million, up 16.5% compared to the fiscal second quarter of 2020.

Free cash flow in the fiscal second quarter was $11.9 million, compared to $9.2 million in the prior-year period. The company ended the quarter with a cash balance of $86.2 million.

For the six-month period ended Feb. 28, total revenue was $135.6 million, an increase of 2.4% year-over-year. Net income was $20 million, up 31.3%.

"The positive trends reflected in our second quarter results demonstrated a net rebound in demand for our products and the success that can be achieved through the continued execution of our key strategic growth drivers," said Adam P. Chase, president and CEO, Chase. "We were encouraged by the returning demand levels from Asian and European customers, which drove our adhesives, sealants and additives segment’s performance.

"Our ongoing cost structure improvements, including our efforts to consolidate facilities, progressed further as we announced the closing of our Newark, CA, sealant systems production facility and planned relocation to Hickory, NC. The facility consolidation is in line with Chase’s ongoing effort to streamline its existing processes and achieve greater operational efficiency.

"Our team has made significant strides in expanding our organic and inorganic growth initiatives within the challenging environment of the last twelve months. Commitment to specification work for electric vehicle applications, leveraging our long-term success in providing reliable product solutions, contributed to our favorable results. Our recent acquisition of the superabsorbent polymers solution provider Emerging Technologies (ETi), coupled with the prior addition of ABchimie to our portfolio, broadens our specialty chemical offerings, as well as expands our market reach within the adhesives, sealants and additives segment. These two acquisitions provide us with high-performance, environmentally friendly technologies, which will complement our existing product offerings. I want to thank our global employees, as the success of our business is directly attributable to their hard work and resolve to meet the needs of our customers.”

"Our business continues to capture both organic and inorganic growth opportunities, execute on strategic top-line expansion and generate strong cash flow. We are pleased to see our combined investment in ABchimie and ETi is already accretive to our adhesives, sealants and additives segment, and we are confident these businesses will further enhance our ability to achieve our forward-looking initiatives in a cost-efficient manner," said Michael J. Bourque, treasurer and CFO, Chase. "We remain debt-free, with an overall cash balance of $86.2 million, and our $150 million credit facility is available to invest in growth. We intend to renew this facility prior to its December 2021 maturity date to further support core growth initiatives and capital projects."

Chase is the parent company of Humiseal.

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