Phibro Animal Health Corporation

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Viro Animal Health Corporation first quarter 2025 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 would like to ask a question during this time, simply press star, then the number one on your telephone keypad. To restart your question, press star one again. I would now like to turn the conference over to Glenn David, Chief Financial Officer. Please go ahead.

Thank you, Regina. Good morning and welcome to the FibroAnimal Health Corporation earnings call for our first quarter ending September 30th, 2024. My name is Glenn David, and I'm the Chief Financial Officer of FibroAnimal Health Corporation. I am joined today on today's call by Jack Bantam, Federalist Chairman, President, and Chief Executive Officer, Tommy Bantam, Director and Executive Vice President of Corporate Strategy, and Larry Miller, Chief Operating Officer. Today, we will cover our financial performance for our first quarter and provide updated financial guidance for our fiscal year ending June 30th, 2025. At the conclusion of our remarks, we will open the lines for your questions. I would like to remind you that we are providing a simultaneous webcast of this call on our website, p88c.com. Also, On the investor section of our website, you will find copies of the earnings press release and quarterly form 10-Q, as well as the transcript and slides discussed and 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 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 US 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 US 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 adjusting basis. Our adjusted results exclude acquisition-related items, unusual, non-operational, or non-recurring items, including stock-based compensation. Other income expense is separately reported in the consolidated statement of operations, including foreign currency losses gains net. Also, income taxes related to pre-tax income adjustments and unusual or non-recurring income tax items. Now, let me introduce our chairman, President and Chief Executive Officer, Jack Bentine, to share his opening remarks.

Thank you, Glenn, and thank you to everyone joining us this morning. We had an extremely strong start to the year with our annual animal health business growing sales at 14% in the quarter, led by vaccines growth of 22%, and MSA and other growth of 15%. And continuing the trend we saw at the end of our last fiscal year, our mineral nutrition segment grew at 5% in the quarter, while our performance product segment grew at 27%. These results reflect successes in many different areas as we look to increase our share of customer wallet, raise prices where appropriate, benefit from industry tailwinds, and in certain areas, increase seasonal disease pressures. Our leveraged bottom line growth also reflects an increased attention to operating efficiencies. We anticipate that these gains will be highlighted in the future as we begin to roll out the initiatives of our Fribo Forward program. As previously discussed, most of the impact of Fribo Forward should be seen in the upcoming fiscal years. These results are impressive in their own right, but even more so with the backdrop of the incredible amount of work done by so many of my colleagues preparing for the closing of our acquisition of the Zoetis Medicaid and Feed-Adding business. As such, I would also like to take this opportunity to thank the many Fibro employees for their tireless work and welcome our new colleagues who have joined us with the closing of the acquisition. As I stated in our press release, we see an extremely bright future for the new Fibro, as we are not only well-positioned to grow our MFAs and other categories, but we are now at a much more significant size and scale overall, which we intend to leverage for the benefit of all our portfolios. As Glenn will further detail, we are also providing updated guidance for our fiscal year 2025, which shows mid-single-digit growth is revenue and a limited P&L on a standalone basis. We anticipate the favorable momentum we saw this past quarter will continue throughout the fiscal year. The guidance provided is FIBRO standalone and does not include the Zoetis portfolio. Culinary estimates for the Zoetis portfolio for the eight-month period in fiscal year 2025 include net sales of approximately $200 million, with an adjusted EBITDA margin of approximately 20%, and adjusted earnings per share of approximately 25 cents, inclusive incremental interest expense. Negative GAAP earnings per share is driven by required purchase price accounting adjustments on cost of goods sold and one-time deal costs. I'll give it back to Glenn.