Annual Report

Fellow Shareholders,


Chase Corporation celebrated its 70th anniversary in FY2016. From its beginnings in Randolph, Massachusetts in 1946, Chase has been focused on leveraging what it does well and has always sought value-enhancing growth opportunities.

Over the years, the Company has explored many markets and opportunities. Not every pursuit was successful, but every pursuit added organizational learning and focus. Today, Chase is a leading manufacturer of protective materials for high-reliability applications, across a range of market sectors. Our evolution from regional manufacturer to global competitor has been achieved through improving our core businesses and enhancing operational infrastructure while leveraging commonalities to gain competitive advantage.



Revenue of $238.09 million was a slight increase over FY2015 revenue of $238.05 million. Net income attributable to Chase increased 25% to $32.81 million from $26.32 million in FY2015. Adjusted EBITDA increased $8.41 million, or 15%, to $64.01 million, compared to $55.60 million in FY2015. Earnings per diluted share rose to $3.50, or 24%, compared to $2.82 in FY2015. We also announced a cash dividend of $0.70 per share.



The global economic environment remained sluggish, and uncertainty at the government level and in certain markets contributed to slower sales later in the fiscal year. Bottom line performance, however, showed good growth and benefited from a favorable product mix

With the market pressures experienced in the past expected to continue into FY2017, our strategic diversification is serving us well. Core drivers—mergers & acquisitions, operational consolidation, organic growth through market-driven development—are the keys to sustainable growth.

All of this is grounded in our value proposition: single-minded customer focus. We understand that enduring customer relationships are partnerships serving the broader needs of each party, and they enhance the value of our products. Our success will ultimately come from how well and consistently we accept customer challenges—raising the bar—and how well we respond with solutions that exceed their expectations.

We remain focused on those markets and technologies that, together, will allow us to weather segment specific demand fluctuations. A critical key to this is information. Investment in platforms and systems that enable our managers to make decisions that anticipate downturns and illuminate opportunities remains a top priority. Enterprise Resource Planning (ERP) provides enhanced financial information that is helping our team focus on improvements in service levels, working capital and overall cost management.



Acquisitions remain a primary focus and our efforts are yielding opportunities for shareholder value creation despite elevated valuations. The key considerations are opportunities to expand our presence in our existing markets, and opportunities to advance our technologies through new products and applications that move the Company into new territories and adjacencies.

In the first quarter of FY2017, we acquired Resin Designs, LLC, a formulator of customized adhesive and sealant systems used in high-reliability electronic applications such as semiconductor packaging, EMI shielding, enclosures, smart cards and hybrid microelectronics assemblies. While we compete in most of these industries already, Resin Designs brings new R&D capabilities that add a dimension of innovation that will have application across the board.

Our FY2016 acquisition in India will be strategically important to our electronic coatings business, giving us a foothold in one of the world’s largest marketplaces, and with it, expanded distribution and sales opportunities to add to our current activities in Asia.



In FY2016, the Company published its Investor Presentation. It will serve to provide an in-depth look at Chase Corporation’s organization and market focus. It will also answer questions that can offer further insights to both current and prospective investors. We encourage you to download the PDF from the “Investor Relations” section of our website at

We expect FY2017 to be every bit as challenging as FY2016. Economic recovery is likely to remain slow and the outcome of national elections in the U.S. poses uncertainties. Oil and gas prices are cost factors for the Company, and market fluctuations in all segments of the business will challenge management skills and creativity.

In spite of this, Chase Corporation remains strategically sound. Our direction of the past five years will continue: strategic acquisitions, consolidation and market-driven development for organic growth. We will continue investments in R&D and information systems, and above all in the human resources that will ultimately allow us to continue our success.

We are proud of our 70 years, and with the continued support of you, our shareholders, the success we experience today will be our path in the future.

Adam P. Chase
President and Chief Executive Office

Peter R. Chase
Executive Chairman