Phibro Animal Health Corporation (Nasdaq: PAHC) (“Phibro” or the
“Company”) today announced financial results for its third quarter
and year-to-date ended March 31, 2023.
Highlights for the three months ended March 31, 2023 (compared
to the three months ended March 31, 2022)
- Net sales of $245.7 million, an increase of $6.1 million, or
3%
- Net income of $10.0 million, a decrease of $7.6 million, or
43%
- Diluted EPS of $0.25, a decrease of $0.19, or 43%
- Adjusted EBITDA of $27.4 million, a decrease of $0.6 million,
or 2%
- Adjusted net income of $11.6 million, a decrease of $1.7
million, or 13%
- Adjusted diluted EPS of $0.29, a decrease of $0.04, or 13%
Highlights for the nine months ended March 31, 2023 (compared to
the nine months ended March 31, 2022)
- Net sales of $722.8 million, an increase of $35.8 million, or
5%
- Net income of $21.1 million, a decrease of $20.6 million, or
49%
- Diluted EPS of $0.52, a decrease of $0.51, or 49%
- Adjusted EBITDA of $80.4 million, an increase of $0.9 million,
or 1%
- Adjusted net income of $33.8 million, a decrease of $4.9
million, or 13%
- Adjusted diluted EPS of $0.83, a decrease of $0.13, or 13%
COMMENTARY
Jack Bendheim, Phibro’s Chairman, President, and Chief Executive
Officer, commented, “Despite the challenging market and economic
conditions, our Animal Health segment has achieved a remarkable 10%
increase in net sales compared to last year. This growth has been
well balanced across our three Animal Health product categories. I
am especially pleased with our vaccine growth in Latin America. We
recently opened a new autogenous vaccine facility in Brazil and
launched new commercial poultry vaccines in the region. I am
confident that it’s still early days relative to our potential
sales of vaccines in this region. We are, unfortunately, seeing
some signs of recessionary pressure in our Mineral Nutrition
segment, as our customers are seeking to reduce purchases and lower
inventories. We will be taking steps over the next few months to
make sure our inventory is better balanced to the needs of our
customers.”
QUARTERLY RESULTS
Net sales
Net sales of $245.7 million for the three months ended March 31,
2023, increased $6.1 million, or 3%, as compared to the three
months ended March 31, 2022. Animal Health increased $15.8 million.
Mineral Nutrition and Performance Products decreased $6.1 million
and $3.7 million, respectively.
Animal Health
Net sales of $164.4 million for the three months ended March 31,
2023, increased $15.8 million, or 11%. Net sales of MFAs and other
increased $8.9 million, or 11%, due to increased demand for our
MFAs in the U.S., Latin America and Canada and for our processing
aids used in the ethanol fermentation industry. Net sales of
nutritional specialty products increased $3.6 million, or 9%, due
mostly to higher domestic demand and higher average selling prices
for dairy products, along with growth in the companion animal
product. Net sales of vaccines increased $3.3 million, or 15%, due
to an increase in domestic and international demand, along with new
product launches in Latin America.
Mineral Nutrition
Net sales of $62.9 million for the three months ended March 31,
2023, decreased $6.1 million, or 9%, driven by a decrease in demand
for trace minerals as customers reduced purchases with the higher
costs of capital, 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 $18.3 million for the three months ended March 31,
2023, decreased $3.7 million, or 17%, driven by 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 $75.5 million for the three months ended March
31, 2023, increased $3.9 million, or 5%, as compared to the three
months ended March 31, 2022. Gross margin increased 80 basis points
to 30.7% of net sales for the three months ended March 31, 2023, as
compared to 29.9% for the three months ended March 31, 2022, due to
higher product demand and favorable product and geographical
mix.
Animal Health gross profit increased $7.5 million, primarily
driven by higher sales volumes and favorable production costs.
Mineral Nutrition gross profit decreased $3.4 million, driven by
lower sales volume and an increase in raw material costs.
Performance Products gross profit decreased $0.2 million as a
result of lower product demand and higher costs for raw
materials.
Selling, general and administrative expenses
Selling, general and administrative expenses (“SG&A”) of
$57.0 million for the three months ended March 31, 2023, increased
$4.6 million, or 9%, as compared to the three months ended March
31, 2022. SG&A for the three months ended March 31, 2023,
included $0.3 million of additional environmental remediation
costs. SG&A for the three months ended March 31, 2022, included
$0.3 million of acquisition-related transaction costs. Excluding
these items, SG&A increased $4.5 million.
Animal Health SG&A increased $2.3 million, primarily due to
an increase in employee-related costs. Mineral Nutrition SG&A
was comparable to the prior year. Performance Products SG&A
increased $0.3 million. Corporate costs increased by $1.8 million,
driven by the planned increase in strategic investments.
Interest expense, net
Interest expense, net of $3.9 million for the three months ended
March 31, 2023, increased by $0.9 million, as compared to the three
months ended March 31, 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, net
Foreign currency gains, net for the three months ended March 31,
2023, were $0.4 million, as compared to $10.6 million of net gains
for the three months ended March 31, 2022. Prior period gains were
driven by fluctuations in certain currencies relative to the U.S.
dollar.
Provision for income taxes
The provision for income taxes was $5.1 million and $9.1 million
for the three months ended March 31, 2023 and 2022, respectively.
The effective income tax rate was 33.5% and 34.1% for the three
months ended March 31, 2023 and 2022, respectively. The current
provision for income taxes was impacted by the final foreign tax
credit regulations that were in effect during the three months
ended March 31, 2023, in addition to losses generated in
international jurisdictions where no tax benefit is being
recognized.
Net income
Net income of $10.0 million for the three months ended March 31,
2023, decreased $7.6 million, as compared to net income of $17.7
million for the three months ended March 31, 2022. Operating income
decreased $0.6 million, driven by higher SG&A, partially offset
by favorable gross profit. The increase in gross profit was due to
higher product demand and higher average selling prices. Interest
expense, net increased $0.9 million and foreign currency gains, net
decreased $10.1 million. Income tax expense decreased by $4.1
million.
Adjusted EBITDA
Adjusted EBITDA of $27.4 million for the three months ended
March 31, 2023, decreased $0.6 million, or 2%, as compared to the
three months ended March 31, 2022. Animal Health Adjusted EBITDA
increased $5.0 million due to gross profit from increased sales,
partially offset by higher SG&A. Mineral Nutrition Adjusted
EBITDA decreased $3.4 million, driven by lower gross profit.
Performance Products Adjusted EBITDA decreased $0.5 million due to
lower gross profit and higher SG&A. Corporate expenses
increased $1.7 million, driven by increased strategic
investments.
Adjusted provision for income taxes
The adjusted effective income tax rates for the three months
ended March 31, 2023 and 2022, were 33.2% and 29.1%, respectively.
The increase in our adjusted effective income tax rate was driven
by changes in the final foreign tax credit regulations that went
into effect on July 1, 2022, in addition to losses generated in
international jurisdictions where no tax benefit is being
recognized.
Adjusted Net Income
Adjusted net income of $11.6 million for the three months ended
March 31, 2023, decreased $1.7 million, or 13%, as compared to the
prior year. The decrease was driven by higher SG&A and a higher
tax provision, 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 $0.29 for the quarter, a decrease of
$0.04, or 13%, as compared to $0.33 in the prior year.
YEAR-TO-DATE RESULTS
Net sales
Net sales of $722.8 million for the nine months ended March 31,
2023, increased $35.8 million, or 5%, as compared to the nine
months ended March 31, 2022. Animal Health sales increased by $42.6
million. Mineral Nutrition and Performance Products sales decreased
$5.9 million and $0.8 million, respectively.
Animal Health
Net sales of $483.1 million for the nine months ended March 31,
2023, increased $42.6 million, or 10%. Net sales of MFAs and other
increased $23.4 million, or 9%, due to higher demand for MFAs
primarily in U.S., Latin America and Canada and for processing aids
used in the ethanol fermentation industry. Net sales of nutritional
specialty products increased $13.2 million, or 12%, driven by
strong demand in dairy products and increased sales of our
companion animal product. Net sales of vaccines increased $6.0
million, or 9%, due to increased domestic and international
volumes.
Mineral Nutrition
Net sales of $184.2 million for the nine months ended March 31,
2023, decreased $5.9 million, or 3%, 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 $55.5 million for the nine months ended March 31,
2023, decreased $0.8 million, or 1%, driven by decreased demand in
personal care product ingredients and copper-related products,
partially offset by higher average selling prices for these
products.
Gross profit
Gross profit of $221.6 million for the nine months ended March
31, 2023, increased $14.6 million, or 7%, as compared to the nine
months ended March 31, 2022. Gross margin increased 60 basis points
to 30.7% of net sales for the nine months ended March 31, 2023, as
compared to 30.1% for the nine months ended March 31, 2022.
Animal Health gross profit increased $16.4 million as a result
of higher product demand, partially offset by higher raw material
and logistics costs. Mineral Nutrition gross profit decreased $3.6
million, driven by lower sales volume and an increase in raw
material costs. Performance Products gross profit increased $1.8
million due to higher sales, partially offset by higher raw
material costs.
Selling, general and administrative expenses
SG&A of $173.5 million for the nine months ended March 31,
2023, increased $22.6 million, or 15%, as compared to the nine
months ended March 31, 2022. SG&A for the nine months ended
March 31, 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 nine months ended
March 31, 2022, included a $1.2 million gain on sale of investment
and $0.3 million acquisition-related transaction costs. Excluding
these items, SG&A increased $14.8 million, or 10%.
Animal Health SG&A increased $9.4 million primarily due to
an increase in employee-related costs. Mineral Nutrition SG&A
increased $0.3 million. Performance Products SG&A increased
$1.1 million, mainly due to an increase in employee-related costs.
Corporate expenses increased $4.0 million due to an increase in
employee-related costs and strategic investments.
Interest expense, net
Interest expense, net of $10.8 million for the nine months ended
March 31, 2023, increased $2.1 million, or 23%, as compared to the
nine months ended March 31, 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 (gains) losses, net for the nine months ended
March 31, 2023, amounted to net losses of $4.6 million, as compared
to net gains of $12.6 million for the nine months ended March 31,
2022. Current period losses were driven by fluctuations in certain
currencies relative to the U.S. dollar.
Provision for income taxes
The provision for income taxes was $11.5 million and $18.3
million for the nine months ended March 31, 2023 and 2022,
respectively. The effective income tax rate was 35.3% and 30.5% for
the nine months ended March 31, 2023 and 2022, respectively. The
provision for income taxes for the nine months ended March 31,
2023, included a $0.9 million benefit related to exchange rate
differences on intercompany dividends and a $0.2 million expense
from changes in uncertain tax positions related to prior years. The
effective income tax rate, without these items, would have been
37.5% for the nine months ended March 31, 2023. The provision for
income taxes for the nine months ended March 31, 2022, included a
$0.5 million expense for a change in deferred taxes, a $0.6 million
expense from changes in uncertain tax positions related to prior
years, and a $0.2 million benefit related to final regulations for
the GILTI tax. The effective income tax rate, without these items,
would have been 29.0% for the nine months ended March 31, 2022.
Net income
Net income of $21.1 million for the nine months ended March 31,
2023, decreased $20.6 million, as compared to net income of $41.7
million for the nine months ended March 31, 2022. Operating income
decreased $8.0 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, partially offset by higher
raw material cost and production costs. SG&A expenses increased
by $22.6 million due to environmental remediation costs, higher
employee-related costs and strategic investments. The change in
foreign currency (gains) losses resulted in a $4.6 million
reduction in income before income taxes for the nine months ended
March 31, 2023. Income tax expense decreased $6.7 million.
Adjusted EBITDA
Adjusted EBITDA of $80.4 million for the nine months ended March
31, 2023, increased $0.9 million, or 1%, as compared to the nine
months ended March 31, 2022. Animal Health Adjusted EBITDA
increased $7.7 million, resulting from higher sales and increased
gross profit, partially offset by higher SG&A. Performance
Products Adjusted EBITDA increased $0.7 million, driven by higher
sales and gross profit, partially offset by an increase in
SG&A. Mineral Nutrition Adjusted EBITDA decreased $3.8 million.
Corporate expenses increased $3.8 million due to increased
employee-related costs and strategic investments.
Adjusted provision for income taxes
The adjusted effective income tax rates for the nine months
ended March 31, 2023 and 2022, were 34.3% and 27.0%, respectively.
The increase in our adjusted effective income tax rate was driven
by changes in the final foreign tax credit regulations that went
into effect on July 1, 2022, in addition to losses generated in
international jurisdictions where no tax benefit is being
recognized.
Adjusted Net Income
Adjusted net income of $33.8 million for the nine months ended
March 31, 2023, decreased $4.9 million, or 13%, as compared to the
prior year. The decrease was driven by higher SG&A and a higher
tax provision, 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 $0.83 for the nine months ended March
31, 2023, a decrease of $0.13, or 13%, as compared to $0.96 in the
prior year.
BALANCE SHEET AND CASH FLOWS
- Free cash flow was $(43) million(1) for the twelve months ended
March 31, 2023
- 4.3x gross leverage ratio as of March 31, 2023
- $482 million total debt
- $112 million Adjusted EBITDA for the twelve months ended March
31, 2023
- Liquidity of $192 million, consisting of $77 million of cash
and short-term investments on hand and $115 million of available
revolving credit (subject to leverage ratio limitations) as of
March 31, 2023
(1)
Free cash flow equals cash flow
from operating activities less capital expenditures for the
trailing 12-months ended March 31, 2023, and excluded 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 1 of our most recent Quarterly Report on Form 10-Q.
The $(43) million in free cash flow for the twelve months ended
March 31, 2023, is driven primarily by a $43 million increase in
inventory over the same period, representing approximately one
month of additional inventory on hand intended to mitigate the risk
of supply chain disruptions impacting the Company’s ability to
fulfill customer orders on a timely basis.
FISCAL YEAR 2023 FINANCIAL GUIDANCE
The Company reiterated guidance for the year ending June 30,
2023, as follows:
- Net sales of $960 million - $1 billion
- Net income of $34 - $38 million
- Diluted EPS of $0.84 - $0.94
- Adjusted EBITDA of $113 - $118 million
- Adjusted net income of $49 - $53 million
- Adjusted diluted EPS of $1.21 - $1.31
- Adjusted effective tax rate of 33%
Guidance for GAAP measures assumes actual foreign exchange
losses for the nine months ended March 31, 2023, and the Company’s
projected foreign exchanges rates for the three months ending June
30, 2023.
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, May 4, 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
Nine Months
For the Periods Ended March 31
2023
2022
Change
2023
2022
Change
(in millions, except per share
amounts and percentages)
Net sales
$
245.7
$
239.6
$
6.1
3
%
$
722.8
$
687.0
$
35.8
5
%
Cost of goods sold
170.1
168.0
2.1
1
%
501.3
480.0
21.2
4
%
Gross profit
75.5
71.6
3.9
5
%
221.6
207.0
14.6
7
%
Selling, general and administrative
57.0
52.4
4.6
9
%
173.5
150.9
22.6
15
%
Operating income
18.6
19.2
(0.6
)
(3
)%
48.1
56.1
(8.0
)
(14
)%
Interest expense, net
3.9
2.9
0.9
32
%
10.8
8.8
2.1
23
%
Foreign currency (gains) losses, net
(0.4
)
(10.6
)
10.1
*
4.6
(12.6
)
17.3
*
Income before income taxes
15.1
26.8
(11.7
)
(44
)%
32.6
60.0
(27.3
)
(46
)%
Provision for income taxes
5.1
9.1
(4.1
)
(45
)%
11.5
18.3
(6.7
)
(37
)%
Net income
$
10.0
$
17.7
$
(7.6
)
(43
)%
$
21.1
$
41.7
$
(20.6
)
(49
)%
Net income per share - basic and
diluted
$
0.25
$
0.44
$
(0.19
)
(43
)%
$
0.52
$
1.03
$
(0.51
)
(49
)%
Weighted average common shares
outstanding
basic and diluted
40.5
40.5
40.5
40.5
Ratio to net sales
Gross profit
30.7
%
29.9
%
30.7
%
30.1
%
Selling, general and administrative
23.2
%
21.9
%
24.0
%
22.0
%
Operating income
7.6
%
8.0
%
6.7
%
8.2
%
Income before income taxes
6.1
%
11.2
%
4.5
%
8.7
%
Net income
4.1
%
7.4
%
2.9
%
6.1
%
Effective tax rate
33.5
%
34.1
%
35.3
%
30.5
%
Amounts and percentages may reflect rounding adjustments
*Calculation not meaningful
Phibro Animal Health
Corporation
Segment Net Sales and Adjusted
EBITDA
Three Months
Nine Months
For the Periods Ended March 31
2023
2022
Change
2023
2022
Change
(in millions, except
percentages)
Net Sales
MFAs and other
$
93.2
$
84.3
$
8.9
11
%
$
283.2
$
259.8
$
23.4
9
%
Nutritional specialties
45.0
41.4
3.6
9
%
127.9
114.7
13.2
12
%
Vaccines
26.2
22.9
3.3
15
%
72.0
66.0
6.0
9
%
Animal Health
164.4
148.6
15.8
11
%
483.1
440.5
42.6
10
%
Mineral Nutrition
62.9
69.0
(6.1
)
(9
)%
184.2
190.1
(5.9
)
(3
)%
Performance Products
18.3
22.0
(3.7
)
(17
)%
55.5
56.4
(0.8
)
(1
)%
Total
$
245.7
$
239.6
$
6.1
3
%
$
722.8
$
687.0
$
35.8
5
%
Adjusted EBITDA
Animal Health
$
34.2
$
29.2
$
5.0
17
%
$
98.2
$
90.6
$
7.7
8
%
Mineral Nutrition
3.9
7.3
(3.4
)
(47
)%
13.6
17.4
(3.8
)
(22
)%
Performance Products
2.4
2.9
(0.5
)
(16
)%
7.1
6.3
0.7
12
%
Corporate
(13.1
)
(11.4
)
(1.7
)
15
%
(38.5
)
(34.7
)
(3.8
)
11
%
Total
$
27.4
$
28.0
$
(0.6
)
(2
)%
$
80.4
$
79.6
$
0.9
1
%
Ratio to segment net sales
Animal Health
20.8
%
19.7
%
20.3
%
20.6
%
Mineral Nutrition
6.1
%
10.6
%
7.4
%
9.1
%
Performance Products
13.2
%
13.0
%
12.7
%
11.2
%
Corporate (1)
(5.3
)%
(4.8
)%
(5.3
)%
(5.1
)%
Total (1)
11.1
%
11.7
%
11.1
%
11.6
%
Reconciliation of GAAP Net Income to
Adjusted EBITDA
Net income
$
10.0
$
17.7
$
(7.6
)
(43
)%
$
21.1
$
41.7
$
(20.6
)
(49
)%
Interest expense, net
3.9
2.9
0.9
32
%
10.8
8.8
2.1
23
%
Provision for income taxes
5.1
9.1
(4.1
)
(45
)%
11.5
18.3
(6.7
)
(37
)%
Depreciation and amortization
8.5
8.4
0.0
1
%
25.4
24.3
1.1
5
%
EBITDA
27.5
38.2
(10.7
)
(28
)%
68.9
93.0
(24.1
)
(26
)%
Environmental remediation costs
0.3
—
0.3
*
6.9
—
6.9
*
Gain on sale of investment
—
—
—
*
—
(1.2
)
1.2
*
Acquisition-related cost of goods sold
—
0.1
(0.1
)
*
—
0.1
(0.1
)
*
Acquisition-related transaction costs
—
0.3
(0.3
)
*
—
0.3
(0.3
)
*
Foreign currency (gains) losses, net
(0.4
)
(10.6
)
10.1
*
4.6
(12.6
)
17.3
*
Adjusted EBITDA
$
27.4
$
28.0
$
(0.6
)
(2
)%
$
80.4
$
79.6
$
0.9
1
%
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
Nine Months
For the Periods Ended March 31
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
$
10.0
$
17.7
$
(7.6
)
(43
)%
$
21.1
$
41.7
$
(20.6
)
(49
)%
Acquisition-related intangible
amortization(1)
1.7
1.6
0.1
5
%
5.0
4.5
0.5
12
%
Acquisition-related intangible
amortization(2)
0.8
0.7
0.1
16
%
2.3
2.1
0.2
11
%
Acquisition-related cost of goods
sold(1)
—
0.1
(0.1
)
*
—
0.1
(0.1
)
*
Acquisition-related transaction
costs(2)
—
0.3
(0.3
)
*
—
0.3
(0.3
)
*
Environmental remediation costs(2)
0.3
—
0.3
*
6.9
—
6.9
*
Gain on sale of investment(2)
—
—
—
*
—
(1.2
)
1.2
*
Foreign currency (gains) losses,
net(3)
(0.4
)
(10.6
)
10.1
*
4.6
(12.6
)
17.3
*
Adjustments to income taxes(4)
(0.7
)
3.7
(4.4
)
*
(6.1
)
4.0
(10.1
)
*
Adjusted net income
$
11.6
$
13.4
$
(1.7
)
(13
)%
$
33.8
$
38.7
$
(4.9
)
(13
)%
Statement of Operations Line Items -
adjusted
Adjusted cost of goods sold(1)
$
168.5
$
166.3
$
2.1
1
%
$
496.3
$
475.5
$
20.8
4
%
Adjusted gross profit
77.2
73.3
3.9
5
%
226.5
211.5
15.0
7
%
Adjusted selling, general and
administrative(2)
55.9
51.5
4.4
9
%
164.3
149.8
14.6
10
%
Adjusted interest expense, net
3.9
2.9
0.9
32
%
10.8
8.8
2.1
23
%
Adjusted income before income taxes
17.4
18.9
(1.4
)
(8
)%
51.4
53.0
(1.6
)
(3
)%
Adjusted provision for income taxes(4)
5.8
5.5
0.3
5
%
17.7
14.3
3.3
23
%
Adjusted net income
$
11.6
$
13.4
$
(1.7
)
(13
)%
$
33.8
$
38.7
$
(4.9
)
(13
)%
Adjusted net income per share
diluted
$
0.29
$
0.33
$
(0.04
)
(13
)%
$
0.83
$
0.96
$
(0.13
)
(13
)%
Weighted average common shares
outstanding
diluted
40.5
40.5
40.5
40.5
Ratio to net sales
Adjusted gross profit
31.4
%
30.6
%
31.3
%
30.8
%
Adjusted selling, general and
administrative
22.8
%
21.5
%
22.7
%
21.8
%
Adjusted income before income taxes
7.1
%
7.9
%
7.1
%
7.7
%
Adjusted net income
4.7
%
5.6
%
4.7
%
5.6
%
Adjusted effective tax rate
33.2
%
29.1
%
34.3
%
27.0
%
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
Nine Months
For the Periods Ended March 31
2023
2022
Change
2023
2022
Change
(in millions)
EBITDA
$
27.5
$
38.2
$
(10.7
)
$
68.9
$
93.0
$
(24.1
)
Adjustments
Environmental remediation costs
0.3
—
0.3
6.9
—
6.9
Acquisition-related cost of goods sold
—
0.1
(0.1
)
—
0.1
(0.1
)
Acquisition-related transaction costs
—
0.3
(0.3
)
—
0.3
(0.3
)
Gain on sale of investment
—
—
—
—
(1.2
)
1.2
Foreign currency (gains) losses, net
(0.4
)
(10.6
)
10.1
4.6
(12.6
)
17.3
Interest paid, net
(3.7
)
(2.7
)
(0.9
)
(10.3
)
(8.2
)
(2.1
)
Income taxes paid
(6.8
)
(7.4
)
0.5
(16.2
)
(13.4
)
(2.7
)
Changes in operating assets and
liabilities and other items
(10.6
)
(11.7
)
1.2
(60.9
)
(27.8
)
(33.1
)
Net cash (used) provided by operating
activities
$
6.3
$
6.1
$
0.1
$
(6.9
)
$
30.1
$
(37.0
)
Short-term investments, net
$
(30.0
)
$
10.0
$
(40.0
)
$
(23.0
)
$
20.9
$
(43.9
)
Capital expenditures
(7.9
)
(10.0
)
2.1
(40.9
)
(25.2
)
(15.7
)
Business acquisition
—
(10.8
)
10.8
—
(10.8
)
10.8
Sale of investment
—
—
—
—
1.4
(1.4
)
Other investing, net
0.1
0.9
(0.7
)
0.2
0.6
(0.5
)
Net cash used by investing activities
$
(37.8
)
$
(9.9
)
$
(27.8
)
$
(63.7
)
$
(13.0
)
$
(50.7
)
Net cash flow before financing
activities
$
(31.5
)
$
(3.8
)
$
(27.7
)
$
(70.7
)
$
17.0
$
(87.7
)
Free cash flow:
Net cash (used) provided by operating
activities
$
6.3
$
6.1
$
0.1
$
(6.9
)
$
30.1
$
(37.0
)
Capital expenditures
(7.9
)
(10.0
)
2.1
(40.9
)
(25.2
)
(15.7
)
Building purchase
—
—
—
15.0
—
15.0
Free cash flow (adjusted)
$
(1.6
)
$
(3.9
)
$
2.2
$
(32.8
)
$
4.9
$
(37.8
)
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/20230503005610/en/
Phibro Animal Health Corporation Damian Finio Chief Financial
Officer +1-201-329-7300 Or investor.relations@pahc.com
Phibro Animal Health (NASDAQ:PAHC)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Phibro Animal Health (NASDAQ:PAHC)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024