Phibro Animal Health Corporation (NASDAQ:PAHC) Q4 2017 Earnings Conference Call - Final Transcript

Aug 31, 2017 • 09:00 am ET


Phibro Animal Health Corporation (NASDAQ:PAHC) Q4 2017 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Phibro Fourth Quarter Financial Results Call. At this time, all participants are in listen-only mode. [Operator Instructions] Later, we will conduct a question-and-answer session and instructions will follow at that time.

I'd now like to introduce your host for today's conference, Mr. Richard Johnson, Chief Financial Officer. Sir, please go ahead.

Richard Johnson

Thank you, operator. Good morning everyone and welcome to the Phibro Animal Health earnings call for our fourth quarter and fiscal year ended June 2017. On the call today are Jack Bendheim, our Chief Executive Officer; and myself, the Chief Financial Officer. We will provide an overview of our quarterly and annual results for fiscal 2017 and then we will discuss our fiscal year 2018 guidance and then after that we will open it up for your questions.

Before we begin the standard language, let me remind you that the earnings press release and financial tables can be found on the Investors section of our website at We're also providing a simultaneous webcast of this morning's call, which can be accessed on the website as well. Today's presentation slides and a replay and transcript of the call will also be available on the website later today.

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 today will also 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 on our earnings press release for a 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. So with that out of the way, I will turn it over to Jack Bendheim for some introductory comments. Jack?

Jack Bendheim

Thank you, Dick, and thank you everyone who are joining us today for this call. Our June quarter was a solid finish to our fiscal year. Our animal health business saw continued strong growth in nutritional specialties and vaccines. MFAs, and other sales declined due to the ongoing reduction in United States sales of medically important antimicrobials, and a continued challenging economic environment in Brazil.

We continue and are increasingly investing in animal health product development and organizational capabilities to build the business for future growth. Our Mineral Nutritional business completed the year with another strong quarter of income growth and we are optimistic about our business in the broader animal health industry as we enter our new fiscal year.

We have numerous opportunities to grow our business through additional penetration, geographic expansion, new product introductions, and acquisitions. We expect continued double digit growth in nutritional specialties and vaccines. We see growth opportunities for MFAs and other products in international