Phibro Animal Health Corporation

Thank you for standing by and welcome to the Fibro Animal Health Corporation Q4 2020 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. Damien Finio, Chief Financial Officer. Thank you. Please go ahead, sir.

Thank you, Rebecca. Good morning, and welcome to the FIBRO Animal Health Earnings Call for our fourth quarter and year end of June 30th, 2021. My name is Damien Finio, and I am the Chief Financial Officer of FIBRO Animal Health Corporation. I am joined on today's call by Jack Benheim, FIBRO's Chairman, President, and Chief Executive Officer, and Daniel Benheim, Director and Executive Vice President of Corporate Strategies. On today's call, we will cover financial performance for the fourth quarter and our full fiscal year 2021, as well as guidance for our fiscal year ending June 30, 2022. At the conclusion of our opening remarks, we will open the line for questions. I'd like to remind you that we are providing a simultaneous webcast of this call on our website, pahc.com. Also, on the investor section of our website, you will find copies of the earnings press release and annual report on Form 10-K filed with the SEC yesterday, as well as the transcripts and slides presented on this call. 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 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 our 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. 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, including stock-based compensation and restructuring costs. Other income expense is separately reported in the consolidated statements of operations, including foreign currency gains and losses. And lastly, income tax effects related to pre-tax adjustments and unusual or non-recurring income tax items. Now, let me introduce our Chairman, President, and Chief Executive Officer, Jack Benheim, to share his opening remarks, which will include his perspective on the fourth quarter, full-year financial performance, and guidance for our fiscal year 2022.

Jack? Thank you, Damian, and hello, everyone. I am pleased to announce that we ended our fiscal year strong, posting a fourth consecutive quarter of net sales growth and financial results ahead of our previously communicated projections. Net sales for the quarter were up 19% versus a year ago, while full-year sales were up 4%. Adjusted EBITDA for the quarter was up 13%, while full-year adjusted EBITDA was up 6%. I would be proud of these numbers under any circumstances, but as we all know too well, the year ending June 30th, 2021 was one filled with unprecedented challenges for our industry. Quarantines, lockdowns, and political unrest around the world drove input prices higher, prompted significant shipping delays and labor shortages, which required all of us to work that much harder and be that much more innovative. Our employees really stepped up, and I want to acknowledge their significant efforts, which enabled our organization to not only survive but grow during these turbulent times. Our efforts to build a companion animal franchise are progressing. Sales of our canine growth joint care product, Regenza, continue to grow, in fact, doubling again in the second half of the year. Our plan going forward is to continue working with our exclusive distribution partner while at the same time expanding our direct sales force in order to service veterinary clinics with the intent to double sales of Regenza again in our upcoming fiscal year. And behind Regentsa, we completed a quarter of city progress on our pet product development pipeline, specifically in terms of our Dermacare and oral care products. We are optimistic these projects will propel our growth in the mid to long term. We made significant efforts to better streamline our business and financial process to strengthen our internal control framework. Although we've been in business since 1946, we went public in 2014. After running our business as a privately held company for nearly 70 years, coupled with the diversity and complexity of our product offerings and geographic spread of our facilities, gaining compliance under the Sarbanes-Oxley Act of 2002 presented some challenges to our organization. But as you'll read in our annual Form 10-K filed yesterday with the SEC, our material weaknesses have been fully remediated, and we are now fully in compliance with SOX, the SOX Act. Now let me share a few thoughts on the current state of the business and what we plan to deliver on our fiscal year ahead. Since the beginning of the global pandemic, our perspective and approach to managing the challenges it's presented have not wavered. We continue to sell our products in over 80 countries across all species of feed animals. It's the diversity of our portfolio that enabled us to keep our business stable and on our path to modest growth. The most challenging conditions we face as a business are in those countries where the economies are struggling. We expect this visibility by country to continue, but in aggregate, we remain confident that the diversity of our product portfolio will keep 501 a course of growth while we continue making investments in our future. For our fiscal year 2022, we are projecting net sales in the range of $840 million to $870 million, which reflects growth of approximately 1% to 4%. an adjusted EBITDA of $110 to $114 million, reflecting about 2% to 6% growth. I am excited that despite our increased spend on future projects, we are in a position to leverage our organization to see greater bottom-line margin expansion. Overall, it was a great quarter and a solid year all around. We are projecting top and bottom-line growth next year, despite the continued challenges of the pandemic. Now let me hand the call back to Damien to go through these items in more detail. Damien.