Phibro Animal Health Corporation Reports Second Quarter Results, Updates Financial Guidance
Highlights for the three months ended
-
Net sales of
$249.9 million , an increase of$5.3 million , or 2% -
Net income of
$1.3 million , a decrease of$5.9 million -
Diluted earnings per share of
$0.03 , a decrease of$0.15 -
Adjusted EBITDA of
$29.5 million , a decrease of$1.5 million , or 5% -
Adjusted net income of
$13.5 million , a decrease of$0.3 million , or 2% -
Adjusted diluted EPS of
$0.33 , a decrease of$0.01 , or 2%
We affirm our previously issued fiscal year 2024 guidance for the following measures:
-
Net sales of
$980 million to$1.020 billion -
Adjusted EBITDA of
$106 million to$112 million -
Adjusted net income of
$42 million to$47 million , and -
Adjusted diluted EPS of
$1.04 to$1.16
We have updated our fiscal year 2024 guidance for the following measures:
-
Net income of
$12 million to$17 million -
Diluted EPS of
$0.30 to$0.42 - Adjusted effective tax rate of 28% to 30%
COMMENTARY
“I am pleased that we once again have delivered very strong top line growth in our core
Jack continued, “We expect continuing growth in our
Jack added, “I am very excited to welcome
QUARTERLY RESULTS
Net sales
Net sales of
Net sales of
Mineral Nutrition
Net sales of $61.3 million for the three months ended
Performance Products
Net sales of $15.5 million for the three months ended
Gross profit
Gross profit of $78.6 million for the three months ended
Selling, general and administrative expenses
Selling, general and administrative expenses (“SG&A”) of
Animal Health SG&A increased
Interest expense, net
Interest expense, net of
Foreign currency losses (gains), net
Foreign currency losses, net for the three months ended
Provision for income taxes
The provision for income taxes was
Net income
Net income of
Adjusted EBITDA
Adjusted EBITDA of
Adjusted provision for income taxes
The adjusted provision for income taxes was
Adjusted net income
Adjusted net income of
Adjusted diluted earnings per share
Adjusted diluted earnings per share was
BALANCE SHEET AND CASH FLOWS
-
Free cash flow was
$37.0 million for the twelve months endedDecember 31, 2023 -
4.4x gross leverage ratio as of
December 31, 2023 $476 million total debt$108 million Adjusted EBITDA for the twelve months endedDecember 31, 2023
-
Cash and short-term investments of
$92.5 million as ofDecember 31, 2023
FISCAL YEAR 2024 FINANCIAL GUIDANCE
Our affirmed or updated fiscal year 2024 financial guidance is as shown in the table below. Comparisons are to the prior fiscal year and year-over-year percentages are calculated using the midpoint of the guidance ranges.
-
Net sales of
$980 million to$1.020 billion , growth of 2%, affirmed -
Net income of
$12 million to$17 million , a decline of 55%, updated -
Diluted EPS of
$0.30 to$0.42 , a decline of 56%, updated -
Adjusted EBITDA of
$106 million to$112 million , a decline of 3%, affirmed -
Adjusted net income of
$42 million to$47 million , a decline of 9%, affirmed -
Adjusted diluted EPS of
$1.04 to$1.16 , a decline of 9%, affirmed - Adjusted effective tax rate of 28% to 30%, updated
The updated guidance reflects recent developments, including expense for
WEBCAST & CONFERENCE CALL DETAILS
Date: |
|
|
Time: |
|
|
Location: |
||
|
+1 (888) 330-2022 |
|
International Toll: |
+1 (365) 977-0051 |
|
Conference ID: |
3927884 |
NOTE: To join this conference call, all participants will be required to provide the Conference ID number.
A replay of the webcast will be archived and made available on Phibro’s website.
DISCLOSURE NOTICES
Forward-Looking Statements: This communication contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical or current fact included in this report are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. These statements are not guarantees of future performance or actions. If one or more of these risks or uncertainties materialize, or if management’s underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Phibro expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our Quarterly Report on Form 10-Q and Annual Report on Form 10-K, including in the sections thereof captioned “Forward-Looking Statements” and “Risk Factors.” These filings and subsequent filings are available online at www.sec.gov, www.pahc.com, or on request from Phibro.
Non-GAAP Financial Information: We use non-GAAP financial measures, such as adjusted EBITDA, adjusted net income, adjusted diluted EPS and free cash flow to assess and analyze our operational results and trends and to make financial and operational decisions. Management uses adjusted EBITDA as its primary operating measure. We report adjusted net income to portray the results of our operations prior to considering certain income statement elements. We believe these non-GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance. The non-GAAP financial measures included in this communication should not be considered alternatives to measurements required by GAAP, such as net income, operating income and earnings per share, and should not be considered measures of liquidity. These non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliation of non-GAAP financial measures and GAAP financial measures are included in the tables accompanying this communication and/or our Quarterly Report on Form 10-Q and Annual Report on Form 10-K.
We are not providing a reconciliation of forward-looking guidance of non-GAAP financial measures to the most directly comparable GAAP financial measures because of the uncertainty regarding, and the potential variability of, certain of the items required for a reconciliation; accordingly, a reconciliation of the non-GAAP financial measure to the corresponding GAAP financial measure is not available without unreasonable effort.
Internet Posting of Information: We routinely post information that may be important to investors in the “Investors” section of our website at www.pahc.com. We encourage investors and potential investors to consult our website regularly for important information about us.
Consolidated Results of Operations |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months |
Six Months |
||||||||||||||||||||||||||||
For the Periods Ended |
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
|||||||||||||||||||
|
|
(in millions, except per share amounts and percentages) |
|||||||||||||||||||||||||||||
Net sales |
|
$ |
249.9 |
|
$ |
244.6 |
|
$ |
5.3 |
|
|
2 |
% |
$ |
481.3 |
|
$ |
477.2 |
|
$ |
4.1 |
|
|
1 |
% |
||||||
Cost of goods sold |
|
|
171.3 |
|
|
167.3 |
|
|
4.1 |
|
|
2 |
% |
|
335.0 |
|
|
331.1 |
|
|
3.8 |
|
|
1 |
% |
||||||
Gross profit |
|
|
78.6 |
|
|
77.4 |
|
|
1.2 |
|
|
2 |
% |
|
146.3 |
|
|
146.0 |
|
|
0.3 |
|
|
0 |
% |
||||||
Selling, general and administrative |
|
|
62.9 |
|
|
61.5 |
|
|
1.4 |
|
|
2 |
% |
|
131.4 |
|
|
116.5 |
|
|
14.9 |
|
|
13 |
% |
||||||
Operating income |
|
|
15.7 |
|
|
15.8 |
|
|
(0.1 |
) |
|
(1 |
)% |
|
15.0 |
|
|
29.5 |
|
|
(14.6 |
) |
|
* |
% |
||||||
Interest expense, net |
|
|
4.7 |
|
|
3.9 |
|
|
0.8 |
|
|
20 |
% |
|
9.2 |
|
|
7.0 |
|
|
2.3 |
|
|
33 |
% |
||||||
Foreign currency losses (gains), net |
|
|
7.5 |
|
|
(0.1 |
) |
|
7.6 |
|
|
* |
|
14.2 |
|
|
5.1 |
|
|
9.1 |
|
|
* |
||||||||
Income (loss) before income taxes |
|
|
3.6 |
|
|
12.1 |
|
|
(8.5 |
) |
|
(71 |
)% |
|
(8.4 |
) |
|
17.5 |
|
|
(25.9 |
) |
|
* |
|||||||
Provision (benefit) for income taxes |
|
|
2.3 |
|
|
4.9 |
|
|
(2.6 |
) |
|
(53 |
)% |
|
(1.7 |
) |
|
6.5 |
|
|
(8.1 |
) |
|
* |
|||||||
Net income (loss) |
|
$ |
1.3 |
|
$ |
7.2 |
|
$ |
(5.9 |
) |
|
(82 |
)% |
$ |
(6.7 |
) |
$ |
11.1 |
|
$ |
(17.8 |
) |
|
* |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
basic |
|
$ |
0.03 |
|
$ |
0.18 |
|
$ |
(0.15 |
) |
|
(82 |
)% |
$ |
(0.17 |
) |
$ |
0.27 |
|
$ |
(0.44 |
) |
|
* |
|||||||
diluted |
|
$ |
0.03 |
|
$ |
0.18 |
|
$ |
(0.15 |
) |
|
(82 |
)% |
$ |
(0.17 |
) |
$ |
0.27 |
|
$ |
(0.44 |
) |
|
* |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
basic |
|
|
40.5 |
|
|
40.5 |
|
|
|
|
|
|
40.5 |
|
|
40.5 |
|
|
|
|
|
||||||||||
diluted |
|
|
40.5 |
|
|
40.5 |
|
|
|
|
|
|
40.5 |
|
|
40.5 |
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ratio to net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gross profit |
|
|
31.5 |
% |
|
31.6 |
% |
|
|
|
|
|
30.4 |
% |
|
30.6 |
% |
|
|
|
|
||||||||||
Selling, general and administrative |
|
|
25.2 |
% |
|
25.2 |
% |
|
|
|
|
|
27.3 |
% |
|
24.4 |
% |
|
|
|
|
||||||||||
Operating income |
|
|
6.3 |
% |
|
6.5 |
% |
|
|
|
|
|
3.1 |
% |
|
6.2 |
% |
|
|
|
|
||||||||||
Income (loss) before income taxes |
|
|
1.4 |
% |
|
4.9 |
% |
|
|
|
|
|
(1.7 |
)% |
|
3.7 |
% |
|
|
|
|
||||||||||
Net income (loss) |
|
|
0.5 |
% |
|
2.9 |
% |
|
|
|
|
|
(1.4 |
)% |
|
2.3 |
% |
|
|
|
|
||||||||||
Effective tax rate |
|
|
64.3 |
% |
|
40.5 |
% |
|
|
|
|
|
19.9 |
% |
|
36.9 |
% |
|
|
|
|
Amounts and percentages may reflect rounding adjustments. | |
* |
Calculation not meaningful |
Segment |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months |
Six Months |
||||||||||||||||||||||||||||
For the Periods Ended |
|
2023 |
2022 |
Change |
2023 |
2022 |
Change |
||||||||||||||||||||||||
|
|
(in millions, except percentages) |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
MFAs and other |
|
$ |
101.9 |
|
$ |
97.2 |
|
$ |
4.8 |
|
|
5 |
% |
$ |
196.0 |
|
$ |
190.0 |
|
$ |
6.1 |
|
|
3 |
% |
||||||
Nutritional specialties |
|
|
41.4 |
|
|
43.9 |
|
|
(2.4 |
) |
|
(6 |
)% |
|
81.6 |
|
|
82.9 |
|
|
(1.3 |
) |
|
(2 |
)% |
||||||
Vaccines |
|
|
29.7 |
|
|
22.8 |
|
|
7.0 |
|
|
31 |
% |
|
55.9 |
|
|
45.8 |
|
|
10.2 |
|
|
22 |
% |
||||||
|
|
|
173.1 |
|
|
163.8 |
|
|
9.3 |
|
|
6 |
% |
|
333.6 |
|
|
318.7 |
|
|
15.0 |
|
|
5 |
% |
||||||
Mineral Nutrition |
|
|
61.3 |
|
|
61.6 |
|
|
(0.3 |
) |
|
(0 |
)% |
|
117.4 |
|
|
121.3 |
|
|
(3.9 |
) |
|
(3 |
)% |
||||||
Performance Products |
|
|
15.5 |
|
|
19.2 |
|
|
(3.7 |
) |
|
(19 |
)% |
|
30.3 |
|
|
37.2 |
|
|
(6.9 |
) |
|
(19 |
)% |
||||||
Total |
|
$ |
249.9 |
|
$ |
244.6 |
|
$ |
5.3 |
|
|
2 |
% |
$ |
481.3 |
|
$ |
477.2 |
|
$ |
4.1 |
|
|
1 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
$ |
39.3 |
|
$ |
37.1 |
|
$ |
2.2 |
|
|
6 |
% |
$ |
67.8 |
|
$ |
64.0 |
|
$ |
3.8 |
|
|
6 |
% |
||||||
Mineral Nutrition |
|
|
3.5 |
|
|
4.4 |
|
|
(0.9 |
) |
|
(20 |
)% |
|
6.4 |
|
|
9.7 |
|
|
(3.3 |
) |
|
(34 |
)% |
||||||
Performance Products |
|
|
0.8 |
|
|
2.3 |
|
|
(1.5 |
) |
|
(64 |
)% |
|
2.2 |
|
|
4.7 |
|
|
(2.4 |
) |
|
(52 |
)% |
||||||
Corporate |
|
|
(14.2 |
) |
|
(12.8 |
) |
|
(1.3 |
) |
|
10 |
% |
|
(28.3 |
) |
|
(25.3 |
) |
|
(3.0 |
) |
|
12 |
% |
||||||
Total |
|
$ |
29.5 |
|
$ |
30.9 |
|
$ |
(1.5 |
) |
|
(5 |
)% |
$ |
48.1 |
|
$ |
53.0 |
|
$ |
(4.9 |
) |
|
(9 |
)% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ratio to segment net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
22.7 |
% |
|
22.6 |
% |
|
|
|
|
|
20.3 |
% |
|
20.1 |
% |
|
|
|
|
||||||||||
Mineral Nutrition |
|
|
5.7 |
% |
|
7.1 |
% |
|
|
|
|
|
5.4 |
% |
|
8.0 |
% |
|
|
|
|
||||||||||
Performance Products |
|
|
5.3 |
% |
|
11.9 |
% |
|
|
|
|
|
7.4 |
% |
|
12.5 |
% |
|
|
|
|
||||||||||
Corporate (1) |
|
|
(5.7 |
)% |
|
(5.2 |
)% |
|
|
|
|
|
(5.9 |
)% |
|
(5.3 |
)% |
|
|
|
|
||||||||||
Total (1) |
|
|
11.8 |
% |
|
12.6 |
% |
|
|
|
|
|
10.0 |
% |
|
11.1 |
% |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income (loss) |
|
$ |
1.3 |
|
$ |
7.2 |
|
$ |
(5.9 |
) |
|
(82 |
)% |
$ |
(6.7 |
) |
$ |
11.1 |
|
$ |
(17.8 |
) |
|
* |
|||||||
Interest expense, net |
|
|
4.7 |
|
|
3.9 |
|
|
0.8 |
|
|
20 |
% |
|
9.2 |
|
|
7.0 |
|
|
2.3 |
|
|
33 |
% |
||||||
Provision (benefit) for income taxes |
|
|
2.3 |
|
|
4.9 |
|
|
(2.6 |
) |
|
(53 |
)% |
|
(1.7 |
) |
|
6.5 |
|
|
(8.1 |
) |
|
* |
|||||||
Depreciation and amortization |
|
|
8.9 |
|
|
8.5 |
|
|
0.4 |
|
|
5 |
% |
|
17.8 |
|
|
16.9 |
|
|
0.8 |
|
|
5 |
% |
||||||
EBITDA |
|
|
17.1 |
|
|
24.5 |
|
|
(7.4 |
) |
|
(30 |
)% |
|
18.6 |
|
|
41.4 |
|
|
(22.8 |
) |
|
(55 |
)% |
||||||
Acquisition-related cost of goods sold |
|
|
0.3 |
|
|
— |
|
|
0.3 |
|
|
* |
|
0.3 |
|
|
— |
|
|
0.3 |
|
|
* |
||||||||
Pension settlement cost |
|
|
0.2 |
|
|
— |
|
|
0.2 |
|
|
* |
|
10.7 |
|
|
— |
|
|
10.7 |
|
|
* |
||||||||
|
|
|
4.2 |
|
|
— |
|
|
4.2 |
|
|
* |
|
4.2 |
|
|
— |
|
|
4.2 |
|
|
* |
||||||||
Stock-based compensation |
|
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
* |
|
0.2 |
|
|
— |
|
|
0.2 |
|
|
* |
||||||||
Environmental remediation costs |
|
|
— |
|
|
6.6 |
|
|
(6.6 |
) |
|
* |
|
— |
|
|
6.6 |
|
|
(6.6 |
) |
|
* |
||||||||
Foreign currency losses (gains), net |
|
|
7.5 |
|
|
(0.1 |
) |
|
7.6 |
|
|
* |
|
14.2 |
|
|
5.1 |
|
|
9.1 |
|
|
* |
||||||||
Adjusted EBITDA |
|
$ |
29.5 |
|
$ |
30.9 |
|
$ |
(1.5 |
) |
|
(5 |
)% |
$ |
48.1 |
|
$ |
53.0 |
|
$ |
(4.9 |
) |
|
(9 |
)% |
Amounts and percentages may reflect rounding adjustments. | |
* |
Calculation not meaningful |
(1) |
Reflects ratio to total net sales |
Adjusted Net Income |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months |
Six Months |
||||||||||||||||||||||||||||
For the Periods Ended |
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
|||||||||||||||||||
|
|
|
(in millions, except per share amounts and percentages) |
||||||||||||||||||||||||||||
Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income (loss) |
|
$ |
1.3 |
|
$ |
7.2 |
|
$ |
(5.9 |
) |
|
(82 |
)% |
$ |
(6.7 |
) |
$ |
11.1 |
|
$ |
(17.8 |
) |
|
* |
|||||||
Acquisition-related intangible amortization (1) |
|
|
1.7 |
|
|
1.7 |
|
|
0.0 |
|
|
1 |
% |
|
3.3 |
|
|
3.3 |
|
|
0.0 |
|
|
1 |
% |
||||||
Acquisition-related intangible amortization (2) |
|
|
0.8 |
|
|
0.8 |
|
|
0.0 |
|
|
3 |
% |
|
1.6 |
|
|
1.5 |
|
|
0.0 |
|
|
3 |
% |
||||||
Acquisition-related cost of goods sold (1) |
|
|
0.3 |
|
|
— |
|
|
0.3 |
|
|
* |
|
0.3 |
|
|
— |
|
|
0.3 |
|
|
* |
||||||||
Pension settlement cost (2) |
|
|
0.2 |
|
|
— |
|
|
0.2 |
|
|
* |
|
10.7 |
|
|
— |
|
|
10.7 |
|
|
* |
||||||||
|
|
|
4.2 |
|
|
— |
|
|
4.2 |
|
|
* |
|
4.2 |
|
|
— |
|
|
4.2 |
|
|
* |
||||||||
Stock-based compensation (2) |
|
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
* |
|
0.2 |
|
|
— |
|
|
0.2 |
|
|
* |
||||||||
Environmental remediation costs (2) |
|
|
— |
|
|
6.6 |
|
|
(6.6 |
) |
|
* |
|
— |
|
|
6.6 |
|
|
(6.6 |
) |
|
* |
||||||||
Foreign currency losses (gains), net (3) |
|
|
7.5 |
|
|
(0.1 |
) |
|
7.6 |
|
|
* |
|
14.2 |
|
|
5.1 |
|
|
9.1 |
|
|
* |
||||||||
Adjustments to income taxes (4) |
|
|
(2.6 |
) |
|
(2.3 |
) |
|
(0.3 |
) |
|
* |
|
(8.7 |
) |
|
(5.4 |
) |
|
(3.3 |
) |
|
* |
||||||||
Adjusted net income |
|
$ |
13.5 |
|
$ |
13.8 |
|
$ |
(0.3 |
) |
|
(2 |
)% |
$ |
19.0 |
|
$ |
22.1 |
|
$ |
(3.1 |
) |
|
(14 |
)% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Statement of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted cost of goods sold (1) |
|
$ |
169.3 |
|
$ |
165.6 |
|
$ |
3.7 |
|
|
2 |
% |
$ |
331.3 |
|
$ |
327.8 |
|
$ |
3.5 |
|
|
1 |
% |
||||||
Adjusted gross profit |
|
|
80.6 |
|
|
79.0 |
|
|
1.6 |
|
|
2 |
% |
|
150.0 |
|
|
149.3 |
|
|
0.7 |
|
|
0 |
% |
||||||
Adjusted selling, general and administrative (2) |
|
|
57.6 |
|
|
54.2 |
|
|
3.4 |
|
|
6 |
% |
|
114.8 |
|
|
108.4 |
|
|
6.3 |
|
|
6 |
% |
||||||
Adjusted interest expense, net |
|
|
4.7 |
|
|
3.9 |
|
|
0.8 |
|
|
20 |
% |
|
9.2 |
|
|
7.0 |
|
|
2.3 |
|
|
33 |
% |
||||||
Adjusted income before income taxes |
|
|
18.4 |
|
|
21.0 |
|
|
(2.6 |
) |
|
(12 |
)% |
|
26.0 |
|
|
34.0 |
|
|
(8.0 |
) |
|
(23 |
)% |
||||||
Adjusted provision for income taxes (4) |
|
|
4.9 |
|
|
7.2 |
|
|
(2.3 |
) |
|
(32 |
)% |
|
7.0 |
|
|
11.9 |
|
|
(4.9 |
) |
|
(41 |
)% |
||||||
Adjusted net income |
|
$ |
13.5 |
|
$ |
13.8 |
|
$ |
(0.3 |
) |
|
(2 |
)% |
$ |
19.0 |
|
$ |
22.1 |
|
$ |
(3.1 |
) |
|
(14 |
)% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
diluted |
|
$ |
0.33 |
|
$ |
0.34 |
|
$ |
(0.01 |
) |
|
(2 |
)% |
$ |
0.47 |
|
$ |
0.55 |
|
$ |
(0.08 |
) |
|
(14 |
)% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
diluted |
|
|
40.5 |
|
|
40.5 |
|
|
|
|
|
|
40.5 |
|
|
40.5 |
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ratio to net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted gross profit |
|
|
32.2 |
% |
|
32.3 |
% |
|
|
|
|
|
31.2 |
% |
|
31.3 |
% |
|
|
|
|
||||||||||
Adjusted selling, general and administrative |
|
|
23.0 |
% |
|
22.2 |
% |
|
|
|
|
|
23.8 |
% |
|
22.7 |
% |
|
|
|
|
||||||||||
Adjusted income before income taxes |
|
|
7.3 |
% |
|
8.6 |
% |
|
|
|
|
|
5.4 |
% |
|
7.1 |
% |
|
|
|
|
||||||||||
Adjusted net income |
|
|
5.4 |
% |
|
5.6 |
% |
|
|
|
|
|
3.9 |
% |
|
4.6 |
% |
|
|
|
|
||||||||||
Adjusted effective tax rate |
|
|
26.7 |
% |
|
34.3 |
% |
|
|
|
|
|
27.0 |
% |
|
34.9 |
% |
|
|
|
|
Amounts and percentages may reflect rounding adjustments. | |
* |
Calculation not meaningful |
(1) |
Adjusted cost of goods sold excludes acquisition-related intangible amortization and acquisition-related cost of goods sold |
(2) |
Adjusted selling, general and administrative excludes acquisition-related intangible amortization, pension settlement cost, |
(3) |
Foreign currency losses (gains), net, are excluded from adjusted net income |
(4) |
Adjusted provision for income taxes excludes the income tax effect of pre-tax income adjustments and certain income tax items |
Operating, Investing and Free Cash Flows |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Three Months |
|
Six Months |
||||||||||||||||||||
For the Periods Ended |
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||||
|
|
(in millions) |
||||||||||||||||||||||
EBITDA |
|
$ |
17.1 |
|
|
$ |
24.5 |
|
|
$ |
(7.4 |
) |
|
$ |
18.6 |
|
|
$ |
41.4 |
|
|
$ |
(22.8 |
) |
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Acquisition-related cost of goods sold |
|
|
0.3 |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
0.3 |
|
Pension settlement cost |
|
|
0.2 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
10.7 |
|
|
|
— |
|
|
|
10.7 |
|
|
|
|
4.2 |
|
|
|
— |
|
|
|
4.2 |
|
|
|
4.2 |
|
|
|
— |
|
|
|
4.2 |
|
Stock-based compensation |
|
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.2 |
|
Environmental remediation costs |
|
|
— |
|
|
|
6.6 |
|
|
|
(6.6 |
) |
|
|
— |
|
|
|
6.6 |
|
|
|
(6.6 |
) |
Foreign currency losses (gains), net |
|
|
7.5 |
|
|
|
(0.1 |
) |
|
|
7.6 |
|
|
|
14.2 |
|
|
|
5.1 |
|
|
|
9.1 |
|
Interest paid, net |
|
|
(4.4 |
) |
|
|
(3.7 |
) |
|
|
(0.7 |
) |
|
|
(8.7 |
) |
|
|
(6.6 |
) |
|
|
(2.1 |
) |
Income taxes paid |
|
|
(4.5 |
) |
|
|
(5.5 |
) |
|
|
1.1 |
|
|
|
(9.1 |
) |
|
|
(9.3 |
) |
|
|
0.2 |
|
Changes in operating assets and liabilities and other items |
|
|
11.0 |
|
|
|
(24.2 |
) |
|
|
35.1 |
|
|
|
17.5 |
|
|
|
(50.3 |
) |
|
|
67.8 |
|
Net cash provided (used) by operating activities |
|
$ |
31.6 |
|
|
$ |
(2.5 |
) |
|
$ |
34.0 |
|
|
$ |
47.8 |
|
|
$ |
(13.2 |
) |
|
$ |
60.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Short-term investments, net |
|
$ |
(11.5 |
) |
|
$ |
— |
|
|
$ |
(11.5 |
) |
|
$ |
(19.5 |
) |
|
$ |
7.0 |
|
|
$ |
(26.5 |
) |
Capital expenditures |
|
|
(11.0 |
) |
|
|
(9.8 |
) |
|
|
(1.1 |
) |
|
|
(18.4 |
) |
|
|
(33.0 |
) |
|
|
14.6 |
|
Business acquisition |
|
|
(3.3 |
) |
|
|
— |
|
|
|
(3.3 |
) |
|
|
(3.3 |
) |
|
|
— |
|
|
|
(3.3 |
) |
Other investing, net |
|
|
0.9 |
|
|
|
— |
|
|
|
0.9 |
|
|
|
1.1 |
|
|
|
0.0 |
|
|
|
1.0 |
|
Net cash used by investing activities |
|
$ |
(24.9 |
) |
|
$ |
(9.8 |
) |
|
$ |
(15.0 |
) |
|
$ |
(40.2 |
) |
|
$ |
(26.0 |
) |
|
$ |
(14.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Free cash flow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash provided (used) by operating activities |
|
$ |
31.6 |
|
|
$ |
(2.5 |
) |
|
$ |
34.0 |
|
|
$ |
47.8 |
|
|
$ |
(13.2 |
) |
|
$ |
60.9 |
|
Capital expenditures |
|
|
(11.0 |
) |
|
|
(9.8 |
) |
|
|
(1.1 |
) |
|
|
(18.4 |
) |
|
|
(33.0 |
) |
|
|
14.6 |
|
Building purchase (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15.0 |
|
|
|
(15.0 |
) |
Free cash flow (adjusted) |
|
$ |
20.6 |
|
|
$ |
(12.3 |
) |
|
$ |
32.9 |
|
|
$ |
29.3 |
|
|
$ |
(31.2 |
) |
|
$ |
60.5 |
|
Amounts and percentages may reflect rounding adjustments. | |
(1) |
Adjusted free cash flow for the six months ended |
About Phibro Animal Health Corporation
View source version on businesswire.com: https://www.businesswire.com/news/home/20240207615458/en/
Chief Financial Officer
+1-201-329-7300
Or
investor.relations@pahc.com
Source: