Phibro Animal Health Corporation

Ladies and gentlemen, thank you for standing by. My name is Brent and I will be your operator today. At this time, I'd like to welcome everyone to the Fibro Animal Health Corporation fourth quarter 2023 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session If you'd like to ask a question at that time, simply press star followed by number one on your telephone keypad. If you would like to withdraw your question again, press star one. Thank you. It is now my pleasure to turn today's call over to Damien Finio. Sir, please go ahead.

Thank you, Brent. Good morning and welcome to the FIBRO Animal Health Corporation earnings call for our fourth quarter and year-end of June 30th, 2023. My name is Damian Finio and I am the Chief Financial Officer of FIBRO. I'm joined on today's call by Jack Benheim, FIBRO's Chairman, President, and Chief Executive Officer, and Donny Benheim, Director and Executive Vice President of Corporate Strategies. Today, we will review financial performance for our fourth quarter and fiscal year-ending June 30th, 2023, as well as provide financial guidance for the fiscal year ending June 30, 2024. At the conclusion of our opening remarks, we will open the lines for questions. I'd like to remind you that we are providing a simultaneous webcast of this call on our website, www.pahc.com. Also, on the investor section of our website, you will find copies of the earnings press release, 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 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 both a GAAP and 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 and expense as separately reported in the consolidated statements of operations, including foreign currency gains and losses, net. 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 our fiscal year 2023 fourth quarter and full-year financial performance and guidance for our fiscal year 2024. Jack?

Thank you, Damian, and hello, everyone. For our year ending June 30, 2023, our business delivered both sales and adjusted EBITDA performance in line with the guidance we communicated to the market. On a consolidated basis, net sales were $978 million, a 4% improvement over the prior year, and adjusted EBITDA of $113 million, a 2% improvement. Our largest and core segment, animal health, reported that we believed to be above market performance, posting sales growth of 9% and adjusted EBITDA growth of 10% over the prior year. Within animal health, each product category grew net sales significantly. MFA and other sales were up 7%, while nutritional specialties improved 10%, and vaccines were up 13%, reflected of the double-digit percentage growth expectations we've historically communicated. The impressive financial performance of our animal health segment was somewhat dampened by our mineral nutrition and performance product segments. which when combined accounted for a decline in both net sales and adjusted EBITDA in comparison to their respective strong financial performances delivered in fiscal year 2022. The strength of our animal health segment had helped to fuel our manufacturing capacity innovation. We made investments to expand manufacturing capacity, most notably at our site in Illinois and with the opening of a new autogenous vaccine facility in Brazil. We also introduced new vaccine products, line extensions, and nutritional specialties, and continued to progress our companion animal development pipeline. As we look ahead to the opportunities before us for fiscal year 2024, we are projecting continued top and bottom line growth. From a sales perspective, we are projecting sales of billion to a billion five in fiscal year 2024. From adjusted EBITDA perspective, we are projecting $115 million to $121 million. Both sales and adjusted EBITDA projections reflect roughly 5% year-on-year growth at the midpoint of our guidance range. This growth is driven by animal health, while we expect mineral nutrition and performance product performance in line with fiscal year 2023. Overall, we delivered financial results in line with guidance and are projecting further growth in the coming year. With that, I ask Damien to go through our actual results and projections in more detail before opening the line for questions. Damien.