Phibro Animal Health Corporation

Ladies and gentlemen, thank you for standing by and welcome to the Fibro Animal Health Corporation Q1 2021 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today. Richard Johnson, Chief Financial Officer. Thank you. Please go ahead, sir.

Richard Johnson, Chief Financial Officer. Thank you, Operator. Good morning, everyone, and thank you for joining us today. And welcome to the Fibril Animal Health Earnings Call for our first quarter ended September 30th, 2020. On the call today are Jack Van Dyke, our Chief Executive Officer, myself, and Damian Finio, our incoming Chief Financial Officer. We'll provide an overview of our quarterly results and our guidance for our December quarter, and then we'll open the lines for your questions. Before we begin, let me remind you that the earnings press release and financial tables can be found on the investor section of our website at pahc.com. We're also providing a simultaneous webcast of this morning's call, which also can be accessed on the website. Today's presentation slides and a replay and transcript of the call will be available on the website later today. Our remarks today will include forward-looking statements, and actual results could differ materially from those projections. For a list and description of certain factors that could cause results to differ, I refer you to the forward-looking statements section in our earnings press release. Our remarks today will also include references to certain financial measures which were not prepared in accordance with generally accepted accounting principles or U.S. GAAP. I refer you to the non-GAAP financial information section in the earnings press release for discussion of these measures. Reconciliations of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures are included in the financial tables that accompany the earnings press release. Now, before we get into the numbers, let me just briefly remind everyone that we present our results on a GAAP basis and on an adjusted basis. Our adjusted results exclude acquisition-related items, unusual non-operational or non-recurring items, other income and expense items as separately reported in the Consolidated Statement of Operations, and the income tax effects related to any pre-tax adjustments as well as unusual or non-recurring income tax items. And now here is Jack Benheim with some introductory comments.

Jack. Thank you, Jack. Our first quarter saw a very nice bounce back in performance as we emerged from what we hoped was the depths of the COVID crisis. Our animal segment net sales grew 5% with similar growth across all product lines. We posted a stronger adjusted EBITDA than we had anticipated, as we saw favorable product mix and restrained operating expenses spending in the quarter. Beyond the numbers, I'm really excited about what is happening on a daily basis at Fibro. Over the last few months, we have significantly strengthened our sales organization around the globe in quality and in quantity, and the results are starting to show. On the nutritional specialty side, we are for the first time showing real growth in the European and Asian dairy sectors, where we have accelerated penetration in these important regions. We continue to grow our market share in U.S. poultry segments as we provide valuable and often custom solutions to our poultry customers. On the vaccine side, as we launch and register our new products in major segments, we are pleased with vaccine penetration and our increasing market share in our key target markets. Globally, we have had 15 significant vaccine registrations approved in the last 12 months, and our expectation over the next three years is for an additional 70 approvals. On the NFIA side, we know that the industry recognizes and appreciates Fiber's commitment to safety and to science, and our willingness to take the necessary actions to keep products available for their use. Finally, we continue to grow our Regenza business. Even though we are encountering difficulties in accessing vet clinics due to COVID restrictions, We are committed to strengthening our pet business and look forward to sharing some additional color on our initiatives in the coming months. As we look to our current quarter, we believe our momentum will continue, but our optimism is somewhat tempted by the fact that the world is clearly dealing with a new wave of COVID and some economies are in recession. We think protein demand in the U.S. and Europe will remain relatively healthy, but we are seeing signs that some developing countries are experiencing and will halt the recovery. I also want to make note that this is Dick Johnson's final investor call as CFO. Dick has been a valued partner and friend for more than 18 years. During his tenure, Fiverr has matured into the global business we see today. Much of what we have accomplished is due to his diligence and business understanding. On behalf of myself and the 1,700 employees in the Fiverr family, I want to say thank you to Dick, and we wish you continued good health and enjoyment for years to come. I also want to extend a warm welcome to Damien Finio, our incoming CFO. Damien has had a successful career in financial management, and he brings the skills and experience needed to play a key role in Fibro's success. I look forward to working with Damien as we address future opportunities. With that, I would like to have Damien say a few words, and then Dick will lead us through the quarterly numbers. I look forward to taking your questions at the end of the call. Damien.