Phibro Animal Health Corporation

Thank you for standing by. Welcome to the Fibrio Animal Health Corporation Q3 2021 conference call. 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'll need to press star 1 on your telephone. Requiring further assistance, please press star 0. We now have a conference over to Damian Finio, Chief Financial Officer. Please go ahead.

Thank you, Tabitha. Good morning and welcome to the FIBRO Animal Health Earnings Call for our third quarter ended March 31st, 2021. I am Damian Finio, Chief Financial Officer of FIBRO, and I'm joined on today's call by Jack Benheim, FIBRO's Chairman, President, and Chief Executive Officer, as well as Donnie Benheim, Director and Executive Vice President of Corporate Strategy. We plan to cover key themes for the quarter, financial performance for the quarter and year to date, and guidance for our fourth quarter and full fiscal year ending June 30th, 2021, before opening 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 are also providing a simultaneous webcast of this morning's call, which can also be accessed on the website. A replay of today's presentation, the slides that accompany the presentation, and a transcript of the call will also be available on our website. 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 statement section in our earnings press release. Our remarks 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 our 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. I want to remind everyone that we present our results on a GAAP basis and on an adjusted basis. We present adjusted results that exclude acquisition-related items, unusual, non-operational, or non-recurring items, including stock-based compensation and restructuring costs, other income and expense as separately reported in the Consolidated Statements of Operations, including foreign currency gains or losses, NET, income tax effects related to pre-tax adjustments, and unusual or non-recurring income tax items. And now I am pleased to start by asking Jack to share his opening remarks, including a walkthrough of our key themes for the third quarter.

Jack? Thank you, Damian, and good morning, everyone. Let me share what I see as our four key themes for the third quarter. First, we boast in solid financial performance. In the third quarter, consolidated net sales and adjusted diluted EPS were both ahead of guidance, and sales were comparable for the same quarter of the prior year. While it's difficult to quantify, the comparable performance relative to last year has masked a little bit of year-over-year growth, as our industry saw some customer stocking in those crazy last days of March 2020, where the world was just beginning to grapple in earnest with COVID-19. Our profitability clients value due to unfavorable product mix and increases in certain expenses, including incremental investments in our future. And I'm pleased to report that we received EU GMP approval for our new vaccine facility in Sligo, Ireland. We continue to build our companion animal pipeline, having recently finalized an agreement that adds two early-stage oral care products. Looking ahead, we expect a strong fourth quarter to close out our fiscal year, well ahead of the same quarter of the prior year because our business was hardest hit by the effects of the pandemic and the quarter ending June 30, 2020. Our next earnings call in the latter half of August will focus sharing full-year actual financial performance and I hope to be able to provide a view of our future projections as well. Jamie will share more details about our actual projected financial performance in just a few minutes. Second, COVID-19 recovery varies by country. As you are aware, we sell our products in over 75 countries across all species of food animal. The diversity of our portfolio has certainly helped to stabilize our business throughout the course of the pandemic. We continue to monitor recovery on a country-by-country basis, and we see the most challenging conditions in our Macy region, which is impacting our vaccine business, while fast food companies and other geographies are helping offset those impacts. And those countries still struggling to control the spread of the virus will just need to see how those situations unfold. Despite this continued variability, I remain bullish on the outlook of Fibro and our industry. We will continue to make investments that will drive our business going forward. Third, we formalize our ESG efforts. ESG continues to gain momentum. It's on the minds of not only investors, but really all stakeholders we work with daily, including our own employees. Although we centralized our ESG efforts internally in the third quarter under Damien's leadership, the principles driving the philosophy behind ESG today have long been ingrained in the culture of FIBO. Our intentions are to publish our first ESG report later this calendar year. so you'll have more insight into ESG-related activities at Fibro. Lastly, we completed refinancing of our existing credit facilities. On April 22nd, after the close of our third quarter, we issued a press release announcing that we executed an amended and restated credit agreement in the amount of $550 million with a widely syndicated bank group, primarily consisting of our previous lenders. With that, I'll turn the call back over to Damian to give a little more color on the refinancing and to review our actual and projected financial performance in more detail. Damian.