Phibro Animal Health Corporation Reports Fourth Quarter and Fiscal Year Results, Provides Financial Guidance
- Net sales for Q4 increased by $10.2 million, or 6%, driven by increased demand for processing aids and vaccines
- Adjusted EBITDA for Q4 increased by $0.8 million, or 3%
- Net sales for FY2023 increased by $35.6 million, or 4%
- Animal Health sales for FY2023 increased by $52.8 million, or 9%
- Net income for FY2023 decreased by $16.6 million, or 34%
- Adjusted net income for Q4 decreased by $4.2 million, or 8%
Highlights for the three months ended June 30, 2023 (compared to the three months ended June 30, 2022)
-
Net sales of
$255.0 million $0.2 million 1% -
Net income of
$11.5 million $4.0 million 54% -
Diluted EPS of
$0.28 $0.10 54% -
Adjusted EBITDA of
$32.3 million $0.8 million 3% -
Adjusted net income of
$15.2 million $0.7 million 5% -
Adjusted diluted EPS of
$0.38 $0.02 5%
Highlights for the year ended June 30, 2023 (compared to the year ended June 30, 2022)
-
Net sales of
$977.9 million $35.6 million 4% -
Net income of
$32.6 million $16.6 million 34% -
Diluted EPS of
$0.81 $0.40 34% -
Adjusted EBITDA of
$112.8 million $1.7 million 2% -
Adjusted net income of
$49.0 million $4.2 million 8% -
Adjusted diluted EPS of
$1.21 $0.10 8%
We are providing full fiscal year 2024 guidance, which includes:
-
Net sales of
$1.0 $1.05 billion -
Adjusted EBITDA of
$115 $121 million
This guidance reflects assumed projected foreign exchange rates applicable to fiscal year 2024. Additional details on guidance are included below and will be discussed on the Company’s upcoming conference call.
COMMENTARY
“I am pleased that our business continues to grow year-over-year and we delivered fiscal year 2023 net sales and adjusted EBITDA results in line with our guidance,” said Jack Bendheim, Phibro’s Chairman, President, and Chief Executive Officer.
Jack continued, “I am excited about the opportunities on the horizon in fiscal year 2024, particularly related to vaccines and nutritional specialties. I am confident we have the team in place to grow the business and continue to realize a return on our ongoing strategic investments in key Animal Health product categories.”
QUARTERLY RESULTS
Net sales
Net sales of
Animal Health
Net sales of
Mineral Nutrition
Net sales of
Performance Products
Net sales of
Gross profit
Gross profit of
Animal Health gross profit increased
Selling, general and administrative expenses
Selling, general and administrative expenses (“SG&A”) of
Animal Health and Mineral Nutrition SG&A decreased
Interest expense, net
Interest expense, net of
Foreign currency (gains) losses, net
Foreign currency gains, net for the three months ended June 30, 2023, were
Provision for income taxes
The provision for income taxes was
Net income
Net income of
Adjusted EBITDA
Adjusted EBITDA of
Adjusted provision for income taxes
The adjusted effective income tax rates for the three months ended June 30, 2023, and 2022, were
Adjusted net income
Adjusted net income of
Adjusted diluted EPS
Adjusted diluted EPS was
FULL YEAR RESULTS
Net sales
Net sales of
Animal Health
Net sales of
Mineral Nutrition
Net sales of
Performance Products
Net sales of
Gross profit
Gross profit of
Animal Health gross profit increased
Selling, general and administrative expenses
SG&A expenses of
Animal Health SG&A increased
In July 2023, we entered into an annuity purchase agreement to irrevocably transfer a portion of the pension benefit obligation to a third-party insurance company. The annuity purchase price was
Interest expense, net
Interest expense, net of
Foreign currency (gains) losses, net
Foreign currency losses, net for the year ended June 30, 2023, were
Provision for income taxes
The provision for income taxes was
We record the GILTI-related aspects of comprehensive
In July 2023, the IRS provided guidance to taxpayers in determining whether a foreign tax is eligible for a
Net income
Net income of
Adjusted EBITDA
Adjusted EBITDA of
Adjusted provision for income taxes
The adjusted effective income tax rates for the year ended June 30, 2023, and 2022, were
The adjusted provision for income taxes for the years ended June 30, 2023, and 2022, included
Adjusted net income
Adjusted net income of
Adjusted diluted EPS
Adjusted diluted EPS was
BALANCE SHEET AND CASH FLOWS
-
Free cash flow was
$(24) million -
4.2x gross leverage ratio as of June 30, 2023
-
$476 million -
$113 million
-
-
Liquidity of
$248 million $81 million $167 million
(1) |
Free cash flow equals cash flow from operating activities less capital expenditures for the 12-months ended June 30, 2023, and excludes a |
FISCAL YEAR 2024 FINANCIAL GUIDANCE
The Company’s guidance on a consolidated basis for the year ending June 30, 2024, with year-over-year percentage growth estimates calculated using the midpoint of the ranges provided, is as follows:
-
Net sales of
$1.0 $1.05 billion 5% growth -
Net income of
$31 $36 million 2% growth -
Diluted EPS of
$0.76 $0.90 2% growth -
Adjusted EBITDA of
$115 $121 million 5% growth -
Adjusted net income of
$45 $51 million 2% decline -
Adjusted diluted EPS of
$1.12 $1.27 2% decline -
Adjusted effective tax rate of
33% to35%
Our projected growth on a consolidated basis assumes Sales and Adjusted EBITDA growth in our largest segment, Animal Health, of 5
Guidance for GAAP measures assumes projected foreign exchange rates for the year ending June 30, 2024.
WEBCAST & CONFERENCE CALL DETAILS
Phibro Animal Health Corporation will host a webcast and conference call during which the Company will review its financial results and respond to questions.
Date: |
Thursday, August 31, 2023 |
Time: |
9:00 AM Eastern |
Location: |
|
|
+1 (888) 330-2022 |
International Toll: |
+1 (365) 977-0051 |
Conference ID: |
3927884 |
NOTE: To join this conference call, all participants will be required to provide the Conference ID number.
A replay of the webcast will be archived and made available on Phibro’s website.
DISCLOSURE NOTICES
Forward-Looking Statements: This communication contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical or current fact included in this report are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. These statements are not guarantees of future performance or actions. If one or more of these risks or uncertainties materialize, or if management’s underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Phibro expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our Quarterly Report on Form 10-Q and Annual Report on Form 10-K, including in the sections thereof captioned “Forward-Looking Statements” and “Risk Factors.” These filings and subsequent filings are available online at www.sec.gov, www.pahc.com, or on request from Phibro.
Non-GAAP Financial Information: We use non-GAAP financial measures, such as adjusted EBITDA, adjusted net income, adjusted diluted EPS and free cash flow to assess and analyze our operational results and trends and to make financial and operational decisions. Management uses adjusted EBITDA as its primary operating measure. We report adjusted net income to portray the results of our operations prior to considering certain income statement elements. We believe these non-GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance. The non-GAAP financial measures included in this communication should not be considered alternatives to measurements required by GAAP, such as net income, operating income, and earnings per share, and should not be considered measures of liquidity. These non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliation of non-GAAP financial measures and GAAP financial measures are included in the tables accompanying this communication and/or our Quarterly Report on Form 10-Q and Annual Report on Form 10-K.
We are not providing a reconciliation of forward-looking guidance of non-GAAP financial measures to the most directly comparable GAAP financial measures because of the uncertainty regarding, and the potential variability of, certain of the items required for a reconciliation; accordingly, a reconciliation of the non-GAAP financial measure to the corresponding GAAP financial measure is not available without unreasonable effort.
Internet Posting of Information: We routinely post information that may be important to investors in the “Investors” section of our website at www.pahc.com. We encourage investors and potential investors to consult our website regularly for important information about us.
Phibro Animal Health Corporation
Consolidated Results of Operations
|
|
Three Months |
|
Twelve Months |
|
||||||||||||||||||||||||||
For the Periods Ended June 30 |
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
|
||||||||||||||||||
|
|
(in millions, except per share amounts and percentages) |
|
||||||||||||||||||||||||||||
Net sales |
|
$ |
255.0 |
|
|
$ |
255.3 |
|
|
$ |
(0.2 |
) |
|
(0 |
) |
% |
$ |
977.9 |
|
|
$ |
942.3 |
|
|
$ |
35.6 |
|
|
4 |
|
% |
Cost of goods sold |
|
|
178.4 |
|
|
|
176.8 |
|
|
|
1.5 |
|
|
1 |
|
% |
|
679.7 |
|
|
|
656.9 |
|
|
|
22.8 |
|
|
3 |
|
% |
Gross profit |
|
|
76.7 |
|
|
|
78.4 |
|
|
|
(1.8 |
) |
|
(2 |
) |
% |
|
298.2 |
|
|
|
285.4 |
|
|
|
12.8 |
|
|
4 |
|
% |
Selling, general and administrative |
|
|
52.9 |
|
|
|
55.5 |
|
|
|
(2.6 |
) |
|
(5 |
) |
% |
|
226.4 |
|
|
|
206.4 |
|
|
|
20.0 |
|
|
10 |
|
% |
Operating income |
|
|
23.8 |
|
|
|
22.9 |
|
|
|
0.9 |
|
|
4 |
|
% |
|
71.8 |
|
|
|
79.0 |
|
|
|
(7.1 |
) |
|
(9 |
) |
% |
Interest expense, net |
|
|
4.5 |
|
|
|
3.1 |
|
|
|
1.4 |
|
|
45 |
|
% |
|
15.3 |
|
|
|
11.9 |
|
|
|
3.4 |
|
|
29 |
|
% |
Foreign currency (gains) losses, net |
|
|
(2.2 |
) |
|
|
7.4 |
|
|
|
(9.6 |
) |
|
* |
|
|
2.5 |
|
|
|
(5.2 |
) |
|
|
7.7 |
|
|
* |
|
||
Income before income taxes |
|
|
21.4 |
|
|
|
12.4 |
|
|
|
9.1 |
|
|
73 |
|
% |
|
54.1 |
|
|
|
72.3 |
|
|
|
(18.3 |
) |
|
(25 |
) |
% |
Provision for income taxes |
|
|
9.9 |
|
|
|
4.9 |
|
|
|
5.1 |
|
|
104 |
|
% |
|
21.5 |
|
|
|
23.2 |
|
|
|
(1.7 |
) |
|
(7 |
) |
% |
Net income |
|
$ |
11.5 |
|
|
$ |
7.5 |
|
|
$ |
4.0 |
|
|
54 |
|
% |
$ |
32.6 |
|
|
$ |
49.2 |
|
|
$ |
(16.6 |
) |
|
(34 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - basic and diluted |
|
$ |
0.28 |
|
|
$ |
0.18 |
|
|
$ |
0.10 |
|
|
54 |
|
% |
$ |
0.81 |
|
|
$ |
1.21 |
|
|
$ |
(0.40 |
) |
|
(34 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
basic and diluted |
|
|
40.5 |
|
|
|
40.5 |
|
|
|
|
|
|
|
|
40.5 |
|
|
|
40.5 |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ratio to net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
|
|
30.1 |
|
% |
|
30.7 |
|
% |
|
|
|
|
|
|
30.5 |
|
% |
|
30.3 |
|
% |
|
|
|
|
|
||||
Selling, general and administrative |
|
|
20.7 |
|
% |
|
21.8 |
|
% |
|
|
|
|
|
|
23.2 |
|
% |
|
21.9 |
|
% |
|
|
|
|
|
||||
Operating income |
|
|
9.3 |
|
% |
|
9.0 |
|
% |
|
|
|
|
|
|
7.3 |
|
% |
|
8.4 |
|
% |
|
|
|
|
|
||||
Income before income taxes |
|
|
8.4 |
|
% |
|
4.8 |
|
% |
|
|
|
|
|
|
5.5 |
|
% |
|
7.7 |
|
% |
|
|
|
|
|
||||
Net income |
|
|
4.5 |
|
% |
|
2.9 |
|
% |
|
|
|
|
|
|
3.3 |
|
% |
|
5.2 |
|
% |
|
|
|
|
|
||||
Effective tax rate |
|
|
46.4 |
|
% |
|
39.5 |
|
% |
|
|
|
|
|
|
39.7 |
|
% |
|
32.0 |
|
% |
|
|
|
|
|
||||
Amounts and percentages may reflect rounding adjustments
*Calculation not meaningful
Phibro Animal Health Corporation
Segment Net Sales and Adjusted EBITDA
|
|
Three Months |
|
Twelve Months |
|
||||||||||||||||||||||||||
For the Periods Ended June 30 |
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
|
||||||||||||||||||
|
|
(in millions, except percentages) |
|
||||||||||||||||||||||||||||
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MFAs and other |
|
$ |
104.2 |
|
|
$ |
101.7 |
|
|
$ |
2.4 |
|
|
2 |
|
% |
$ |
387.3 |
|
|
$ |
361.5 |
|
|
$ |
25.8 |
|
|
7 |
|
% |
Nutritional specialties |
|
|
44.6 |
|
|
|
42.5 |
|
|
|
2.1 |
|
|
5 |
|
% |
|
172.5 |
|
|
|
157.2 |
|
|
|
15.3 |
|
|
10 |
|
% |
Vaccines |
|
|
28.0 |
|
|
|
22.3 |
|
|
|
5.7 |
|
|
25 |
|
% |
|
100.0 |
|
|
|
88.3 |
|
|
|
11.7 |
|
|
13 |
|
% |
Animal Health |
|
|
176.8 |
|
|
|
166.5 |
|
|
|
10.2 |
|
|
6 |
|
% |
|
659.9 |
|
|
|
607.1 |
|
|
|
52.8 |
|
|
9 |
|
% |
Mineral Nutrition |
|
|
58.4 |
|
|
|
69.4 |
|
|
|
(10.9 |
) |
|
(16 |
) |
% |
|
242.7 |
|
|
|
259.5 |
|
|
|
(16.9 |
) |
|
(6 |
) |
% |
Performance Products |
|
|
19.9 |
|
|
|
19.3 |
|
|
|
0.5 |
|
|
3 |
|
% |
|
75.4 |
|
|
|
75.7 |
|
|
|
(0.3 |
) |
|
(0 |
) |
% |
Total |
|
$ |
255.0 |
|
|
$ |
255.3 |
|
|
$ |
(0.2 |
) |
|
(0 |
) |
% |
$ |
977.9 |
|
|
$ |
942.3 |
|
|
$ |
35.6 |
|
|
4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Animal Health |
|
$ |
37.9 |
|
|
$ |
33.5 |
|
|
$ |
4.4 |
|
|
13 |
|
% |
$ |
136.1 |
|
|
$ |
124.1 |
|
|
$ |
12.0 |
|
|
10 |
|
% |
Mineral Nutrition |
|
|
3.9 |
|
|
|
6.7 |
|
|
|
(2.8 |
) |
|
(42 |
) |
% |
|
17.4 |
|
|
|
24.0 |
|
|
|
(6.6 |
) |
|
(28 |
) |
% |
Performance Products |
|
|
2.3 |
|
|
|
2.4 |
|
|
|
(0.1 |
) |
|
(4 |
) |
% |
|
9.3 |
|
|
|
8.7 |
|
|
|
0.6 |
|
|
7 |
|
% |
Corporate |
|
|
(11.7 |
) |
|
|
(11.1 |
) |
|
|
(0.6 |
) |
|
6 |
|
% |
|
(50.1 |
) |
|
|
(45.8 |
) |
|
|
(4.4 |
) |
|
10 |
|
% |
Total |
|
$ |
32.3 |
|
|
$ |
31.5 |
|
|
$ |
0.8 |
|
|
3 |
|
% |
$ |
112.8 |
|
|
$ |
111.1 |
|
|
$ |
1.7 |
|
|
2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ratio to segment net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Animal Health |
|
|
21.4 |
|
% |
|
20.1 |
|
% |
|
|
|
|
|
|
20.6 |
|
% |
|
20.4 |
|
% |
|
|
|
|
|
||||
Mineral Nutrition |
|
|
6.6 |
|
% |
|
9.6 |
|
% |
|
|
|
|
|
|
7.2 |
|
% |
|
9.3 |
|
% |
|
|
|
|
|
||||
Performance Products |
|
|
11.5 |
|
% |
|
12.3 |
|
% |
|
|
|
|
|
|
12.4 |
|
% |
|
11.5 |
|
% |
|
|
|
|
|
||||
Corporate (1) |
|
|
(4.6 |
) |
% |
|
(4.3 |
) |
% |
|
|
|
|
|
|
(5.1 |
) |
% |
|
(4.9 |
) |
% |
|
|
|
|
|
||||
Total (1) |
|
|
12.7 |
|
% |
|
12.4 |
|
% |
|
|
|
|
|
|
11.5 |
|
% |
|
11.8 |
|
% |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of GAAP Net Income to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
11.5 |
|
|
$ |
7.5 |
|
|
$ |
4.0 |
|
|
54 |
|
% |
$ |
32.6 |
|
|
$ |
49.2 |
|
|
$ |
(16.6 |
) |
|
(34 |
) |
% |
Interest expense, net |
|
|
4.5 |
|
|
|
3.1 |
|
|
|
1.4 |
|
|
45 |
|
% |
|
15.3 |
|
|
|
11.9 |
|
|
|
3.4 |
|
|
29 |
|
% |
Provision for income taxes |
|
|
9.9 |
|
|
|
4.9 |
|
|
|
5.1 |
|
|
104 |
|
% |
|
21.5 |
|
|
|
23.2 |
|
|
|
(1.7 |
) |
|
(7 |
) |
% |
Depreciation and amortization |
|
|
8.6 |
|
|
|
8.4 |
|
|
|
0.2 |
|
|
2 |
|
% |
|
34.0 |
|
|
|
32.7 |
|
|
|
1.3 |
|
|
4 |
|
% |
EBITDA |
|
|
34.5 |
|
|
|
23.9 |
|
|
|
10.6 |
|
|
45 |
|
% |
|
103.4 |
|
|
|
116.9 |
|
|
|
(13.5 |
) |
|
(12 |
) |
% |
Environmental remediation costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
* |
|
|
6.9 |
|
|
|
— |
|
|
|
6.9 |
|
|
* |
|
||
Gain on sale of investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
* |
|
|
— |
|
|
|
(1.2 |
) |
|
|
1.2 |
|
|
* |
|
||
Acquisition-related cost of goods sold |
|
|
— |
|
|
|
0.2 |
|
|
|
(0.2 |
) |
|
* |
|
|
— |
|
|
|
0.3 |
|
|
|
(0.3 |
) |
|
* |
|
||
Acquisition-related transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
* |
|
|
— |
|
|
|
0.3 |
|
|
|
(0.3 |
) |
|
* |
|
||
Foreign currency (gains) losses, net |
|
|
(2.2 |
) |
|
|
7.4 |
|
|
|
(9.6 |
) |
|
* |
|
|
2.5 |
|
|
|
(5.2 |
) |
|
|
7.7 |
|
|
* |
|
||
Adjusted EBITDA |
|
$ |
32.3 |
|
|
$ |
31.5 |
|
|
$ |
0.8 |
|
|
3 |
|
% |
$ |
112.8 |
|
|
$ |
111.1 |
|
|
$ |
1.7 |
|
|
2 |
|
% |
Amounts and percentages may reflect rounding adjustments
* Calculation not meaningful
(1) Reflects ratio to total net sales
Phibro Animal Health Corporation
Adjusted Net Income
|
|
Three Months |
|
Twelve Months |
|
||||||||||||||||||||||||||
For the Periods Ended June 30 |
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
|
||||||||||||||||||
|
|
(in millions, except per share amounts and percentages) |
|
||||||||||||||||||||||||||||
Reconciliation of GAAP Net Income to Adjusted Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
11.5 |
|
|
$ |
7.5 |
|
|
$ |
4.0 |
|
|
54 |
|
% |
$ |
32.6 |
|
|
$ |
49.2 |
|
|
$ |
(16.6 |
) |
|
(34 |
) |
% |
Acquisition-related intangible amortization(1) |
|
|
1.7 |
|
|
|
1.5 |
|
|
|
0.2 |
|
|
13 |
|
% |
|
6.7 |
|
|
|
5.9 |
|
|
|
0.7 |
|
|
12 |
|
% |
Acquisition-related intangible amortization(2) |
|
|
0.8 |
|
|
|
0.9 |
|
|
|
(0.2 |
) |
|
(18 |
) |
% |
|
3.0 |
|
|
|
3.0 |
|
|
|
0.1 |
|
|
2 |
|
% |
Acquisition-related cost of goods sold(1) |
|
|
— |
|
|
|
0.2 |
|
|
|
(0.2 |
) |
|
* |
|
|
— |
|
|
|
0.3 |
|
|
|
(0.3 |
) |
|
* |
|
||
Acquisition-related transaction costs(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
* |
|
|
— |
|
|
|
0.3 |
|
|
|
(0.3 |
) |
|
* |
|
||
Environmental remediation costs(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
* |
|
|
6.9 |
|
|
|
— |
|
|
|
6.9 |
|
|
* |
|
||
Gain on sale of investment(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
* |
|
|
— |
|
|
|
(1.2 |
) |
|
|
1.2 |
|
|
* |
|
||
Foreign currency (gains) losses, net(3) |
|
|
(2.2 |
) |
|
|
7.4 |
|
|
|
(9.6 |
) |
|
* |
|
|
2.5 |
|
|
|
(5.2 |
) |
|
|
7.7 |
|
|
* |
|
||
Adjustments to income taxes(4) |
|
|
3.4 |
|
|
|
(3.1 |
) |
|
|
6.5 |
|
|
* |
|
|
(2.7 |
) |
|
|
0.9 |
|
|
|
(3.6 |
) |
|
* |
|
||
Adjusted net income |
|
$ |
15.2 |
|
|
$ |
14.5 |
|
|
$ |
0.7 |
|
|
5 |
|
% |
$ |
49.0 |
|
|
$ |
53.2 |
|
|
$ |
(4.2 |
) |
|
(8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Statement of Operations Line Items - adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted cost of goods sold(1) |
|
$ |
176.7 |
|
|
$ |
175.1 |
|
|
$ |
1.6 |
|
|
1 |
|
% |
$ |
673.0 |
|
|
$ |
650.6 |
|
|
$ |
22.4 |
|
|
3 |
|
% |
Adjusted gross profit |
|
|
78.3 |
|
|
|
80.1 |
|
|
|
(1.8 |
) |
|
(2 |
) |
% |
|
304.9 |
|
|
|
291.7 |
|
|
|
13.2 |
|
|
5 |
|
% |
Adjusted selling, general and administrative(2) |
|
|
52.1 |
|
|
|
54.6 |
|
|
|
(2.5 |
) |
|
(5 |
) |
% |
|
216.5 |
|
|
|
204.4 |
|
|
|
12.1 |
|
|
6 |
|
% |
Adjusted interest expense, net |
|
|
4.5 |
|
|
|
3.1 |
|
|
|
1.4 |
|
|
45 |
|
% |
|
15.3 |
|
|
|
11.9 |
|
|
|
3.4 |
|
|
29 |
|
% |
Adjusted income before income taxes |
|
|
21.7 |
|
|
|
22.4 |
|
|
|
(0.7 |
) |
|
(3 |
) |
% |
|
73.1 |
|
|
|
75.4 |
|
|
|
(2.3 |
) |
|
(3 |
) |
% |
Adjusted provision for income taxes(4) |
|
|
6.5 |
|
|
|
8.0 |
|
|
|
(1.5 |
) |
|
(18 |
) |
% |
|
24.2 |
|
|
|
22.3 |
|
|
|
1.9 |
|
|
8 |
|
% |
Adjusted net income |
|
$ |
15.2 |
|
|
$ |
14.5 |
|
|
$ |
0.7 |
|
|
5 |
|
% |
$ |
49.0 |
|
|
$ |
53.2 |
|
|
$ |
(4.2 |
) |
|
(8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
diluted |
|
$ |
0.38 |
|
|
$ |
0.36 |
|
|
$ |
0.02 |
|
|
5 |
|
% |
$ |
1.21 |
|
|
$ |
1.31 |
|
|
$ |
(0.10 |
) |
|
(8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
diluted |
|
|
40.5 |
|
|
|
40.5 |
|
|
|
|
|
|
|
|
40.5 |
|
|
|
40.5 |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ratio to net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross profit |
|
|
30.7 |
|
% |
|
31.4 |
|
% |
|
|
|
|
|
|
31.2 |
|
% |
|
31.0 |
|
% |
|
|
|
|
|
||||
Adjusted selling, general and administrative |
|
|
20.4 |
|
% |
|
21.4 |
|
% |
|
|
|
|
|
|
22.1 |
|
% |
|
21.7 |
|
% |
|
|
|
|
|
||||
Adjusted income before income taxes |
|
|
8.5 |
|
% |
|
8.8 |
|
% |
|
|
|
|
|
|
7.5 |
|
% |
|
8.0 |
|
% |
|
|
|
|
|
||||
Adjusted net income |
|
|
6.0 |
|
% |
|
5.7 |
|
% |
|
|
|
|
|
|
5.0 |
|
% |
|
5.6 |
|
% |
|
|
|
|
|
||||
Adjusted effective tax rate |
|
|
29.9 |
|
% |
|
35.5 |
|
% |
|
|
|
|
|
|
33.0 |
|
% |
|
29.5 |
|
% |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Amounts and percentages may reflect rounding adjustments | |
* |
Calculation not meaningful |
(1) |
Adjusted cost of goods sold excludes acquisition-related intangible amortization and acquisition-related cost of goods sold |
(2) |
Adjusted selling, general and administrative excludes acquisition-related intangible amortization, environmental remediation costs, gain on sale of investment, and acquisition-related transaction costs |
(3) |
Foreign currency (gains) losses, net are excluded from adjusted net income |
(4) |
Adjusted provision for income taxes excludes the income tax effect of pre-tax income adjustments and certain income tax items |
Phibro Animal Health Corporation
Operating, Investing and Free Cash Flows
|
|
Three Months |
|
Twelve Months |
||||||||||||||||||||
For the Periods Ended June 30 |
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||||
|
|
(in millions) |
||||||||||||||||||||||
EBITDA |
|
$ |
34.5 |
|
|
$ |
23.9 |
|
|
$ |
10.6 |
|
|
$ |
103.4 |
|
|
$ |
116.9 |
|
|
$ |
(13.5 |
) |
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Environmental remediation costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6.9 |
|
|
|
— |
|
|
|
6.9 |
|
Gain on sale of investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.2 |
) |
|
|
1.2 |
|
Acquisition-related cost of goods sold |
|
|
— |
|
|
|
0.2 |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
0.3 |
|
|
|
(0.3 |
) |
Acquisition-related transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
(0.3 |
) |
Foreign currency (gains) losses, net |
|
|
(2.2 |
) |
|
|
7.4 |
|
|
|
(9.6 |
) |
|
|
2.5 |
|
|
|
(5.2 |
) |
|
|
7.7 |
|
Interest paid, net |
|
|
(4.3 |
) |
|
|
(2.9 |
) |
|
|
(1.3 |
) |
|
|
(14.6 |
) |
|
|
(11.2 |
) |
|
|
(3.4 |
) |
Income taxes paid |
|
|
(4.2 |
) |
|
|
(4.4 |
) |
|
|
0.2 |
|
|
|
(20.4 |
) |
|
|
(17.9 |
) |
|
|
(2.6 |
) |
Changes in operating assets and liabilities and other items |
|
|
(3.6 |
) |
|
|
(22.6 |
) |
|
|
19.0 |
|
|
|
(64.5 |
) |
|
|
(50.4 |
) |
|
|
(14.0 |
) |
Net cash provided by operating activities |
|
$ |
20.2 |
|
|
$ |
1.6 |
|
|
$ |
18.7 |
|
|
$ |
13.3 |
|
|
$ |
31.6 |
|
|
$ |
(18.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Short-term investments, net |
|
$ |
— |
|
|
$ |
5.1 |
|
|
$ |
(5.1 |
) |
|
$ |
(23.0 |
) |
|
$ |
26.0 |
|
|
$ |
(49.0 |
) |
Capital expenditures |
|
|
(10.9 |
) |
|
|
(11.9 |
) |
|
|
1.0 |
|
|
|
(51.8 |
) |
|
|
(37.0 |
) |
|
|
(14.8 |
) |
Business acquisition |
|
|
— |
|
|
|
(2.7 |
) |
|
|
2.7 |
|
|
|
— |
|
|
|
(13.5 |
) |
|
|
13.5 |
|
Sale of investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.4 |
|
|
|
(1.4 |
) |
Other investing, net |
|
|
0.6 |
|
|
|
0.0 |
|
|
|
0.6 |
|
|
|
0.8 |
|
|
|
0.6 |
|
|
|
0.2 |
|
Net cash used by investing activities |
|
$ |
(10.3 |
) |
|
$ |
(9.5 |
) |
|
$ |
(0.8 |
) |
|
$ |
(74.0 |
) |
|
$ |
(22.6 |
) |
|
$ |
(51.4 |
) |
Net cash flow before financing activities |
|
$ |
10.0 |
|
|
$ |
(7.9 |
) |
|
$ |
17.9 |
|
|
$ |
(60.7 |
) |
|
$ |
9.1 |
|
|
$ |
(69.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Free cash flow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash provided by operating activities |
|
$ |
20.2 |
|
|
$ |
1.6 |
|
|
$ |
18.7 |
|
|
$ |
13.3 |
|
|
$ |
31.6 |
|
|
$ |
(18.3 |
) |
Capital expenditures |
|
|
(10.9 |
) |
|
|
(11.9 |
) |
|
|
1.0 |
|
|
|
(51.8 |
) |
|
|
(37.0 |
) |
|
|
(14.8 |
) |
Building purchase |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15.0 |
|
|
|
— |
|
|
|
15.0 |
|
Free cash flow (adjusted) |
|
$ |
9.3 |
|
|
$ |
(10.3 |
) |
|
$ |
19.7 |
|
|
$ |
(23.5 |
) |
|
$ |
(5.4 |
) |
|
$ |
(18.1 |
) |
Amounts and percentages may reflect rounding adjustments
About Phibro Animal Health Corporation
Phibro Animal Health Corporation is a leading global diversified animal health and mineral nutrition company. We strive to be a trusted partner with livestock producers, farmers, veterinarians, and consumers who raise or care for farm and companion animals by providing solutions to help them maintain and enhance the health of their animals. For further information, please visit www.pahc.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230830070261/en/
Phibro Animal Health Corporation
Damian Finio
Chief Financial Officer
+1-201-329-7300
Or
investor.relations@pahc.com
Source: Phibro Animal Health Corporation
