Phibro Animal Health Corporation (Nasdaq: PAHC) (“Phibro” or the
“Company”) today announced financial results for its fourth quarter
and fiscal year ended June 30, 2023, and provided guidance for the
year ending June 30, 2024.
Highlights for the three months ended June 30, 2023 (compared to
the three months ended June 30, 2022)
- Net sales of $255.0 million, a decrease of $0.2 million, or
less than 1%
- Net income of $11.5 million, an increase of $4.0 million, or
54%
- Diluted EPS of $0.28, an increase of $0.10, or 54%
- Adjusted EBITDA of $32.3 million, an increase of $0.8 million,
or 3%
- Adjusted net income of $15.2 million, an increase of $0.7
million, or 5%
- Adjusted diluted EPS of $0.38, an increase of $0.02, or 5%
Highlights for the year ended June 30, 2023 (compared to the
year ended June 30, 2022)
- Net sales of $977.9 million, an increase of $35.6 million, or
4%
- Net income of $32.6 million, a decrease of $16.6 million, or
34%
- Diluted EPS of $0.81, a decrease of $0.40, or 34%
- Adjusted EBITDA of $112.8 million, an increase of $1.7 million,
or 2%
- Adjusted net income of $49.0 million, a decrease of $4.2
million, or 8%
- Adjusted diluted EPS of $1.21, a decrease of $0.10, or 8%
We are providing full fiscal year 2024 guidance, which
includes:
- Net sales of $1.0 to $1.05 billion
- Adjusted EBITDA of $115 to $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 $255.0 million for the three months ended June 30,
2023, decreased $0.2 million, or less than 1%, as compared to the
three months ended June 30, 2022. Animal Health and Performance
Products increased $10.2 million and $0.5 million, respectively.
Mineral Nutrition decreased $10.9 million.
Animal Health
Net sales of $176.8 million for the three months ended June 30,
2023, increased $10.2 million, or 6%. Net sales of MFAs and other
increased $2.4 million, or 2%, due to increased demand for our
processing aids used in the ethanol fermentation industry. Net
sales of nutritional specialty products increased $2.1 million, or
5%, due to higher average selling prices and an increase in
microbial products. Net sales of vaccines increased $5.7 million,
or 25%, due to an increase in domestic and international demand,
along with new product launches in Latin America.
Mineral Nutrition
Net sales of $58.4 million for the three months ended June 30,
2023, decreased $10.9 million, or 16%, driven by a decrease in
demand for trace minerals, partially offset by higher average
selling prices. The increase in average selling prices is
correlated to the movement of the underlying raw material
costs.
Performance Products
Net sales of $19.9 million for the three months ended June 30,
2023, increased $0.5 million, or 3%, driven by increased demand and
higher average selling prices for copper-related products.
Gross profit
Gross profit of $76.7 million for the three months ended June
30, 2023, decreased $1.8 million, or 2%, as compared to the three
months ended June 30, 2022. Gross margin decreased 60 basis points
to 30.1% of net sales for the three months ended June 30, 2023, as
compared to 30.7% for the three months ended June 30, 2022. The
quarter ended June 30, 2022, included $0.2 million of
acquisition-related cost of goods sold.
Animal Health gross profit increased $1.4 million, primarily
driven by favorable product mix and higher sales volume, partially
offset by higher production costs. Mineral Nutrition gross profit
decreased $3.3 million, driven by lower sales volume and an
increase in raw material costs. Performance Products gross profit
decreased $0.1 million.
Selling, general and administrative expenses
Selling, general and administrative expenses (“SG&A”) of
$52.9 million for the three months ended June 30, 2023, decreased
$2.6 million, or 5%, as compared to the three months ended June 30,
2022.
Animal Health and Mineral Nutrition SG&A decreased $2.9
million and $0.5 million, respectively, due to decreased spending.
Performance Products SG&A was comparable to prior year.
Corporate costs increased by $0.7 million, driven by the planned
increase in strategic investments.
Interest expense, net
Interest expense, net of $4.5 million for the three months ended
June 30, 2023, increased by $1.4 million, as compared to the three
months ended June 30, 2022, due to increased debt outstanding and
higher floating interest rates on portions of debt outstanding,
partially offset by increased interest income and a lower average
fixed rate from our interest rate swap agreements.
Foreign currency (gains) losses, net
Foreign currency gains, net for the three months ended June 30,
2023, were $2.2 million, as compared to $7.4 million of net losses
for the three months ended June 30, 2022. Foreign currency gains
and losses were driven by fluctuations in certain currencies
relative to the U.S. dollar.
Provision for income taxes
The provision for income taxes was $9.9 million and $4.9 million
for the three months ended June 30, 2023, and 2022, respectively.
The effective income tax rate was 46.4% and 39.5% for the three
months ended June 30, 2023, and 2022, respectively. The provision
for income taxes for the three months ended June 30, 2023, included
a net cost of $1.0 million for certain one-time items including the
net cost of withholding taxes related to dividends received from an
international affiliate and the benefit of the lapse of the statute
of limitations related to certain unrecognized tax benefits. The
effective income tax rate, without these items, would have been
41.6% for the three months ended June 30, 2023.
Net income
Net income of $11.5 million for the three months ended June 30,
2023, increased $4.0 million, as compared to net income of $7.5
million for the three months ended June 30, 2022. Operating income
increased $0.9 million, driven by reduced SG&A, partially
offset by unfavorable gross profit. The decrease in gross profit
was due to lower demand for trace minerals. Interest expense, net
increased $1.4 million and foreign currency (gains) losses, net
changed by $9.6 million. Income tax expense increased by $5.1
million.
Adjusted EBITDA
Adjusted EBITDA of $32.3 million for the three months ended June
30, 2023, increased $0.8 million, or 3%, as compared to the three
months ended June 30, 2022. Animal Health Adjusted EBITDA increased
$4.4 million due to gross profit from increased sales and lower
SG&A spending. Mineral Nutrition Adjusted EBITDA decreased $2.8
million, driven by lower gross profit, partially offset by lower
SG&A spending. Performance Products Adjusted EBITDA decreased
$0.1 million due to lower gross profit. Corporate expenses
increased $0.6 million, driven by increased strategic
investments.
Adjusted provision for income taxes
The adjusted effective income tax rates for the three months
ended June 30, 2023, and 2022, were 29.9% and 35.5%,
respectively.
Adjusted net income
Adjusted net income of $15.2 million for the three months ended
June 30, 2023, increased $0.7 million, or 5%, as compared to the
prior year. The increase was driven by decreased SG&A and a
lower adjusted tax provision, partially offset by lower gross
profit and higher interest expense. The decrease in gross profit
resulted from higher raw material and production costs. SG&A
expenses decreased with reduced spending.
Adjusted diluted EPS
Adjusted diluted EPS was $0.38 for the quarter, an increase of
$0.02, or 5%, as compared to $0.36 in the prior year.
FULL YEAR RESULTS
Net sales
Net sales of $977.9 million for the year ended June 30, 2023,
increased $35.6 million, or 4%, as compared to the year ended June
30, 2022. Animal Health sales increased $52.8 million. Mineral
Nutrition and Performance Products sales decreased by $16.9 million
and $0.3 million, respectively.
Animal Health
Net sales of $659.9 million for the year ended June 30, 2023,
increased $52.8 million, or 9%. Net sales of MFAs and other
increased $25.8 million, or 7%, due to increased demand for our
MFAs, particularly in the U.S. and Latin America regions, and for
processing aids used in the ethanol fermentation industry. Net
sales of nutritional specialty products grew $15.3 million, or 10%,
due to strong demand in dairy products and increased sales of
Rejensa®, our companion animal product. Net sales of vaccines
increased $11.7 million, or 13%, with an increase in domestic and
international demand, along with new product launches in Latin
America.
Mineral Nutrition
Net sales of $242.7 million for the year ended June 30, 2023,
decreased $16.9 million, or 6%, primarily driven by a decrease in
demand for trace minerals, partially offset by higher average
selling prices. The increase in average selling prices is
correlated to the movement of the underlying raw material
costs.
Performance Products
Net sales of $75.4 million for the year ended June 30, 2023,
decreased $0.3 million, or less than 1%, as a result of decreased
demand for both personal care product ingredients and
copper-related products, partially offset by higher average selling
prices for these products.
Gross profit
Gross profit of $298.2 million for the year ended June 30, 2023,
increased $12.8 million, or 4%, as compared to the year ended June
30, 2022. Gross margin increased 20 basis points to 30.5% of net
sales for the year ended June 30, 2023, as compared to 30.3% for
the year ended June 30, 2022. The year ended June 30, 2022,
included $0.3 million of acquisition-related cost of goods
sold.
Animal Health gross profit increased $17.6 million due to higher
product demand, partially offset by higher raw material and
logistics costs. Mineral Nutrition gross profit decreased $6.9
million, driven by lower sales volume and an increase in raw
material costs. Performance Products gross profit increased $1.7
million, due primarily to more favorable product mix.
Selling, general and administrative expenses
SG&A expenses of $226.4 million for the year ended June 30,
2023, increased $20.0 million, or 10%, as compared to the year
ended June 30, 2022. SG&A for the year ended June 30, 2023,
included $6.9 million of environmental remediation costs mostly
related to the definitive settlement agreement related to the Omega
Chemical Site. SG&A for the year ended June 30, 2022, included
a $1.2 million gain on sale of investment and $0.3 million of
acquisition-related transaction costs. Excluding these items,
SG&A increased $12.2 million, or 6%.
Animal Health SG&A increased $6.6 million, primarily due to
an increase in employee-related costs, and an increase in selling
costs for our companion animal product. Mineral Nutrition SG&A
decreased $0.2 million. Performance Products SG&A increased
$1.2 million, mainly due to an increase in employee-related costs.
Corporate expenses increased $4.7 million due to an increase in
employee-related costs and strategic investments.
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
$26.4 million and was approximately equal to the benefit obligation
transferred. The annuity purchase was funded from pension assets.
During the three months ending September 30, 2023, we will
recognize the cost of a partial settlement of the pension plan to
record an expense of approximately $10.4 million, resulting from
the recognition of net pension losses currently included in
Accumulated other comprehensive income and a benefit for income
taxes of approximately $2.7 million.
Interest expense, net
Interest expense, net of $15.3 million for the year ended June
30, 2023, increased by $3.4 million as compared to the year ended
June 30, 2022. Interest expense increased as a result of increased
debt outstanding and higher floating interest rates on portions of
debt outstanding, partially offset by increased interest income and
a lower average fixed rate from our interest rate swap
agreements.
Foreign currency (gains) losses, net
Foreign currency losses, net for the year ended June 30, 2023,
were $2.5 million, as compared to net gains of $5.2 million for the
year ended June 30, 2022. Current period losses were driven by
fluctuations in certain currencies related to the U.S. dollar.
Provision for income taxes
The provision for income taxes was $21.5 million and $23.2
million for the years ended June 30, 2023, and 2022, respectively.
The effective income tax rate was 39.7% and 32.0% for the years
ended June 30, 2023, and 2022, respectively. Our effective income
tax rate has varied from period to period from a federal statutory
rate perspective due to the mix of income in the various
jurisdictions where we have operations, changes in tax rates from
period to period and the effects of certain other items. The
provision for income taxes for the year ended June 30, 2023,
included a net cost of $1.5 million for certain one-time items
including (i) Global Intangible Low-Tax Income (“GILTI”) income
taxes that were modified by IRS guidance issued subsequent to June
30, 2023, (ii) the net cost of withholding taxes related to
dividends received from an international affiliate and (iii) the
net benefit related to certain unrecognized tax benefits from
adjustments to and the lapse of statute of limitations of prior
years. The provision for income taxes for the year ended June 30,
2022, included a net cost of $0.8 million for certain items
including (i) a benefit from the reversal of uncertain tax
positions related to settlements and the lapse of statute of
limitations of prior years, (ii) an expense related to increases to
reserves for uncertain tax positions due to the complex nature of
tax law in various jurisdictions and related interpretations of tax
law, (iii) a benefit from the release of a valuation allowance, and
(iv) an expense related to a detailed analysis of various other
items. The effective income tax rate without these items would have
been 36.9% and 30.9% for the years ended June 30, 2023, and 2022,
respectively.
We record the GILTI-related aspects of comprehensive U.S. income
tax legislation as a period expense. The provision for income taxes
for the years ended June 30, 2023, and 2022, included $1.8 million
and $0.2 million of federal tax expense from the effects of GILTI,
respectively. Our effective income tax rate included 3.3% and 0.3%
related to GILTI income tax expense in the years ended June 30,
2023 and 2022, respectively. GILTI expense increased due to final
foreign tax credit regulations that were effective for our fiscal
year 2023.
In July 2023, the IRS provided guidance to taxpayers in
determining whether a foreign tax is eligible for a U.S. foreign
tax credit for tax years 2022 and 2023. As a result of this new
guidance, the Company has concluded that we will record a tax
benefit of approximately $1.2 million related to the year ended
June 30, 2023, in the three months ending September 30, 2023.
Net income
Net income of $32.6 million for the year ended June 30, 2023,
decreased $16.6 million, as compared to net income of $49.2 million
for the year ended June 30, 2022. Operating income decreased $7.1
million driven by higher SG&A, partially offset by higher gross
profit. The increase in gross profit was driven by higher product
demand in Animal Health and Performance Product, partially offset
by higher raw material costs and production costs. SG&A
expenses increased by $20.0 million due to environmental
remediation costs, higher employee-related costs and strategic
investments. Interest expense, net increased $3.4 million, and the
change in foreign currency (gains) losses, net resulted in a $7.7
million reduction in income before income taxes for the year ended
June 30, 2023. Income tax expense decreased $1.7 million.
Adjusted EBITDA
Adjusted EBITDA of $112.8 million for the year ended June 30,
2023, increased $1.7 million, or 2%, as compared to the year ended
June 30, 2022. Animal Health Adjusted EBITDA increased $12.0
million, driven by higher sales, and increased gross profit,
partially offset by an increase in SG&A. Mineral Nutrition
Adjusted EBITDA decreased $6.6 million, driven by lower sales
volume and higher raw material costs. Performance Products Adjusted
EBITDA increased by $0.6 million due to higher gross profit,
partially offset by an increase in SG&A. Corporate expenses
increased $4.4 million due to increased employee-related costs and
strategic investments.
Adjusted provision for income taxes
The adjusted effective income tax rates for the year ended June
30, 2023, and 2022, were 33.0% and 29.5%, respectively. The
increase in our adjusted effective income tax rate was driven by an
unfavorable shift in the geographical mix of earnings.
The adjusted provision for income taxes for the years ended June
30, 2023, and 2022, included $0.6 million and $0.2 million from the
adjusted effects of GILTI, respectively. Our effective income tax
rate included 0.8% and 0.3% related to adjusted GILTI income tax
expense.
Adjusted net income
Adjusted net income of $49.0 million for the year ended June 30,
2023, decreased $4.2 million, or 8%, as compared to the prior year.
The decrease was driven by higher SG&A, higher interest
expense, net and a higher provision for income taxes, partially
offset by higher gross profit. The increase in gross profit
resulted from higher sales, partially offset by higher raw material
and production costs. SG&A expenses increased due to higher
employee-related costs and a planned increase in strategic
investments.
Adjusted diluted EPS
Adjusted diluted EPS was $1.21 for the year ended June 30, 2023,
a decrease of $0.10, or 8%, as compared to $1.31 in the prior
year.
BALANCE SHEET AND CASH FLOWS
- Free cash flow was $(24) million(1) for the twelve months ended
June 30, 2023
- 4.2x gross leverage ratio as of June 30, 2023
- $476 million total debt
- $113 million Adjusted EBITDA for the twelve months ended June
30, 2023
- Liquidity of $248 million, consisting of $81 million of cash
and short-term investments on hand and $167 million of available
revolving credit (subject to leverage ratio limitations) as of June
30, 2023
(1)
Free cash flow equals cash flow from operating activities less
capital expenditures for the 12-months ended June 30, 2023, and
excludes a $15 million purchase of property financed in part by a
secured term loan during the quarter ended September 30, 2022,
included within capital expenditures in the Consolidated Statements
of Cash Flows, included in Item 8 of our Annual Report on Form
10-K.
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 to $1.05 billion, 5% growth
- Net income of $31 to $36 million, 2% growth
- Diluted EPS of $0.76 to $0.90, 2% growth
- Adjusted EBITDA of $115 to $121 million, 5% growth
- Adjusted net income of $45 to $51 million, 2% decline
- Adjusted diluted EPS of $1.12 to $1.27, 2% decline
- Adjusted effective tax rate of 33% to 35%
Our projected growth on a consolidated basis assumes Sales and
Adjusted EBITDA growth in our largest segment, Animal Health, of
5-11% and 7-10%, respectively, while our Mineral Nutrition and
Performance Products segments are projected to deliver financial
performance in line with the prior fiscal year. Our consolidated
financial guidance also assumes a planned year-over-year increase
of $3 million, or 9%, in strategic investments intended to further
broaden our vaccine, nutritional specialty and companion animal
product portfolios.
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:
https://investors.pahc.com
U.S. Toll-Free:
+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
Phibro Animal Health (NASDAQ:PAHC)
Historical Stock Chart
From Apr 2024 to May 2024
Phibro Animal Health (NASDAQ:PAHC)
Historical Stock Chart
From May 2023 to May 2024