WESTWOOD, MA – Chase Corp. reported fiscal third quarter Adhesives, Sealants and Additives revenue was $33.9 million, up 47.7%, with $7.2 million from organic revenue growth.

Revenue growth was largely driven by the Asian and European markets, as well as inorganic growth provided by the acquired operations of ABchimie, as sales within the electronic and industrial coatings product line increased. The functional additives product line also experienced both organic and inorganic volume growth over the period, with the acquired operations of ETi supporting the product line.

For the nine-month period ended May 31, the segment posted $95.5 million, up 30.5% year-over-year.

For the fiscal third quarter, Chase reported total revenue of $79.6 million, up 23%. Net Income was $14.3 million, up 44% year-over-year. Adjusted EBITDA was $22.4 million, up 40%.

Free cash flow was $15.9 million, up 6%. The company ended the fiscal third quarter with a cash balance of $102.9 million.

"The recovering demand across our segments and our third quarter performance are testaments to the resiliency of our business, the loyalty of our customers, and our ability to execute on our strategic growth drivers," said Adam P. Chase, president and CEO, Chase. "The Adhesives, Sealants and Additives segment led the company’s top-line improvement in the third quarter, with significant momentum in international markets, as well as the successful integrations of the recent acquisitions of ABchimie and the operations of Emerging Technologies.

"We made additional progress in our efforts to streamline our operations, optimize our footprint and drive greater efficiency within our portfolio during the third quarter. We advanced on the previously announced movement of our Newark, CA, production plant to our Hickory, NC, facility. Additionally, we announced our adhesives systems production facility in Woburn, MA, will be consolidating into our existing O’Hara Township, PA, location. We believe these consolidation initiatives will allow us to more effectively meet customer requirements.

"Over the last nine months, the company has labored tirelessly to keep our employees and our communities safe, while continuing to work to exceed the expectations of our customers in this difficult time. We made significant strides in improving our operational efficiencies and expanding margins, and believe we are well-positioned to drive top- and bottom-line growth through organic and inorganic opportunities in the coming quarters. Our business model and suite of products allows us to serve high growth trends, including 5G, electric vehicles, and Internet of Things technologies, while consistently reviewing and refining our current portfolio of companies, end markets and segments to achieve optimal operational and cost efficiencies.

"As we move forward into the fourth quarter, we continue to face global raw material inflationary pressures and supply chain challenges. Chase continues to meet its customers’ increasing demand by leveraging our global network, partnering with customers and suppliers and driving further efficiencies throughout our production and logistics processes. While we look to drive cost savings, we will also continue to institute customer price adjustments as needed across all affected product lines to protect gross margins.”

"We are encouraged to see each of our operating segments achieve top-line expansion year-over-year, as our recent acquisitions, ABchimie and ETi, helped drive our performance for the third quarter, as well as establish a strong footing for future growth in the coming quarters. We are pleased with the synergy these acquisitions have had amongst our product portfolio, further attesting to our ability to drive operational efficiencies and inorganic growth," said Michael J. Bourque, treasurer and CFO, Chase. "We finished the quarter with no debt, an overall cash balance of $102.9 million, and have full access to our $150 million credit facility to invest in growth, as needed. To further support growth initiatives and maintain financial flexibility, we plan to enter into a new facility prior to our current facility’s December 2021 maturity date."