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Phibro Animal Health Reports on Q4 and FY 2019

08/29/2019

In a press release dated August 27th Phibro Animal Health Corp. (PAHC) announced results for the 4th Quarter and Fiscal 2019 ending June 30th.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

4th Quarter Ending: June 30th.

2019

2018

Difference (%)

Sales:

$203,900

$211,800

-3.7

Gross profit:

$65,300

$67,500

-3.3

Operating income:

$12,100

$26,100

-53.6

Pre-tax Income

Net Income

$9,200

$8,800

$23,500

$22,100

-60.9

-60.2

Diluted earnings per share:

$0.22

$0.55

-60.0

Gross Margin (%)

32.0

31.9

+0.3

Operating Margin (%)

5.9

12.3

-52.0

Profit Margin (%)

4.3

10.4

-58.2

Long-term Debt:

$356,429

$343,514

+3.8

12 Months Trailing:

     

%Return on Assets

7.9

   

%Return on Equity

27.3

   

%Operating Margin

5.9

   

%Profit Margin

6.6

   

Total Assets

$726,671

$671,679

+8.2

Market Capitalization

$855,200

   

52-Week Range in Share Price: $20.09 to $47.85

Market Close: Tuesday 27th pre-release $31.49. Open Wednesday 28 th post-release $23.15.

Forward P/E: 13.6 Beta 0.33.

For FY 2019 Phibro Animal Health posted sales of $828.0 million with net earnings of $54.7 million reflected in an EPS of $1.35. Comparable values for FY 2018 were sales $822.0 million, net earnings of $64.9 million and an EPS of $1.61.

For FY 2019 Segment breakdown of sales included Animal Health 64 percent and Mineral Nutrition 28 percent. U.S. sales represented 58 percent of total followed by Latin America and Canada attaining 18 percent and Asia, 13 percent.

Poultry products comprised 60 percent of sales in FY 2019. Sales breakdown by product category included Medicated Feed Additives at 66 percent, Nutritionals at 21 percent and vaccines 13 percent.

In commenting on Q4 and FY 2019 results Jack Bendheim, Phibro's Chairman, President and CEO stated, "the effects of African swine fever, as discussed last quarter, have significantly impacted our performance in the June quarter and will have an even larger impact in the new fiscal year,"

He added. "we have made the strategic decision to continue to accelerate our new product initiatives despite the challenges posed by ASF, recognizing the short-term impact on our financial results".

He concluded "overall, we continue to be bullish on the long-term potential of the animal health industry. That is why we have invested, and intend to continue to invest, in major strategic initiatives to support future growth. Our recent acquisition of the Osprey Biotechnics business aligns with this belief, and we are excited by this acquisition and confident that their products and expertise can drive profitable growth. While still far from certain, we are encouraged by our ASF vaccine development project. Other initiatives include the continuing build-out of our Irish vaccine facility, the introduction of an automated vaccine delivery system, our companion animal projects, and the launch of several new products. These investments require significant P&L expense dollars and are a major factor in reduced profitability in fiscal 2020."

Guidance for FY 2020 included sales in the range of $$833 to $863 million, up 1 to 4 percent but a range for EPS of $0.84 to $0.90, down 33 to 37 percent.