Pyxus Intl Inc New

Thank you, Operator. With me today is Peter Sickle, our President and CEO, and Dustin Steins, our Interim CFO and Executive Vice President of Business Strategy and Sales. Before we begin discussing our financial results, I would like to cover a few points. You may hear statements during the course of this call that express a belief, expectation, or intention, as well as those that are not historical facts. These statements are forward-looking and involve a number of risks and uncertainties that may cause actual events and results to differ materially from these forward-looking statements. These risks and uncertainties are described in detail along with other risks and uncertainties in our filings with the SEC, including our most recent Form 10-K. We do not undertake to update any forward-looking statements made on this conference call to reflect any change in management's expectations or any change in assumptions or circumstances on which these statements are based. Included in our call today may be discussion of non-GAAP financial measurements, including earnings before interest, taxes, depreciation, and amortization, commonly referred to as EBITDA, as well as adjusted EBITDA and adjusted free cash flow, that are not measures of results of operations under generally accepted accounting principles in the United States and should not be considered as an alternative to U.S. GAAP measurements. A table including a reconciliation of and other disclosures regarding these historical non-GAAP financial measures is available in our website at www.PIXIS.com. Any replay, rebroadcast, transcript, or other reproduction of this conference call, other than the replay as provided by PIXIS International, has not been authorized and is strictly prohibited. Investors should be aware that any unauthorized reproduction of this conference call may not be an accurate reflection of its contents. Now I'll hand the call over to Peter.

Good morning, everyone, and thank you for joining our call today. Fiscal year 2025 was an exemplary year for PIXIS, evidenced by a consistent delivery of strong financial and operational performance. At this time last year, many global agricultural companies, including PIXIS, were facing the potential risks associated with an El Nino weather event. In this highly dynamic market, we continue to build on the growth and improvement of the prior two fiscal years. I am pleased to say we successfully navigated one of the more complex market environments in recent history. Our disciplined execution and sustained customer demand enabled our delivery of solid results across the board, outperforming the guidance we announced at the beginning of the fiscal year and successfully managing market-wide supply constraints to deliver significant growth, a clear signal of our strength and differentiation globally. Our experienced and dedicated teams around the world leveraged our geographic footprint to procure additional volume from Africa and Asia to offset the weather-related crop reductions in South America. By sourcing from these markets and shifting our customer mix, we seized opportunities for additional growth and profits and reinforced our competitive position. We delivered a strong fiscal 2025 during which Our overall volume increased by 3% by sourcing additional inventory from Africa and Asia, growing our market share in certain geographies, and accelerating the timing of shipments. We grew full-year sales by 22% to $2.5 billion. We increased our annual gross profit by 10% to $343 million for fiscal 2025, compared to $312 million in fiscal 2024. We increased our operating income for the year by 12% to $153 million and achieved net income of $15 million compared to $3 million in the prior year. And our full-year adjusted EBITDA reached $208 million, showing continued growth compared to $194 million in the prior year at an 18% compounded annual growth rate over the last three years. Our disciplined approach to managing working capital and strong demand positioned the business to accelerate our operating cycle by 38 days compared to fiscal 2024. This strong efficiency gain combined with our growth in profits and a more normalized purchasing cadence in the fourth quarter supported the generation of $152 million in adjusted free cash flow during the fiscal year. We continue to improve our capital structure through the repayment of long-term debt and the elimination of the associated interest expense. As we will detail later in the call, since the beginning of March 2024, we've reduced our long-term debt by approximately 25%. Beyond financial progress, fiscal 2025 was a milestone year with respect to our commitment to sustainability. Following an in-depth review and approval process, the Science-Based Target Initiative validated our company's near-term emission reduction targets. This validation reflects the consistency of our targets with the goals established by the Paris Agreement and drives further alignment with our global customer base and other key stakeholders. In the third quarter, we released our annual sustainability report, sharing our 16% reduction of indirect emissions since fiscal year 2021. This is a testament to our engagement efforts with our contracted farmers to promote the adoption of climate smart best practices. With approximately one third of our employees focused on the agronomic side of our business, we have the unique ability to work hand in hand with our contracted farmers throughout the crop season. This approach allows for ongoing farmer training and supports crop quality and yield, which enhances our capability to manage risks, meet customer requirements, and provide consistent product delivery. I'll reserve some additional comments for closing, but first, it's my pleasure to introduce Dustin Science, PIXUS Interim Chief Financial Officer. Dustin has been with the company for 20 years in a variety of leadership positions in finance, sales, and business strategy. His deep institutional knowledge combined with our shared strategic vision for the company's future has allowed for a seamless transition as we prepare for a strong fiscal 2026. Dustin?

Good morning, everyone. And Peter, thank you for that introduction.