[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents the company's unaudited consolidated financial statements and related notes for the periods ended March 31, 2024 [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Details the company's revenues, costs, and profits for the three and nine months ended March 31, 2024 and 2023 Consolidated Statements of Operations (Three Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net sales | $263,223 | $245,673 | | Gross profit | $79,600 | $75,540 | | Operating income | $19,924 | $18,553 | | Net income | $8,405 | $10,042 | | Basic EPS | $0.21 | $0.25 | | Diluted EPS | $0.21 | $0.25 | Consolidated Statements of Operations (Nine Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net sales | $744,515 | $722,840 | | Gross profit | $225,942 | $221,571 | | Operating income | $34,899 | $48,081 | | Net income | $1,664 | $21,108 | | Basic EPS | $0.04 | $0.52 | | Diluted EPS | $0.04 | $0.52 | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Reports net income and other comprehensive income changes for the three and nine-month periods Consolidated Statements of Comprehensive Income (Three Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net income | $8,405 | $10,042 | | Other comprehensive income (loss) | $(4,389) | $(1,223) | | Comprehensive income | $4,016 | $8,819 | Consolidated Statements of Comprehensive Income (Nine Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net income | $1,664 | $21,108 | | Other comprehensive income (loss) | $206 | $3,359 | | Comprehensive income | $1,870 | $24,467 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Outlines the company's assets, liabilities, and stockholders' equity as of March 31, 2024 Consolidated Balance Sheets (As of March 31, 2024 vs. June 30, 2023) | Metric (in thousands) | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Total current assets | $597,180 | $585,723 | | Total assets | $979,035 | $971,397 | | Total current liabilities | $189,072 | $176,000 | | Total liabilities | $708,941 | $688,888 | | Total stockholders' equity | $270,094 | $282,509 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash movements from operating, investing, and financing activities for the nine-month period Consolidated Statements of Cash Flows (Nine Months Ended March 31) | Activity (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided (used) by operating activities | $59,165 | $(6,928) | | Net cash used by investing activities | $(39,083) | $(63,736) | | Net cash (used) provided by financing activities | $(8,555) | $33,319 | | Net increase (decrease) in cash and cash equivalents | $8,944 | $(37,010) | | Cash and cash equivalents at end of period | $50,225 | $37,238 | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Details the changes in stockholders' equity components over the nine-month period Changes in Stockholders' Equity (Nine Months Ended March 31, 2024) | Metric (in thousands) | As of June 30, 2023 | As of March 31, 2024 | | :--- | :--- | :--- | | Total Stockholders' Equity | $282,509 | $270,094 | | Retained Earnings | $260,912 | $247,995 | | Accumulated Other Comprehensive Loss | $(114,210) | $(114,004) | - Dividends declared remained constant at **$0.12 per share** for each quarter during the nine months ended March 31, 2024 and 2023[17](index=17&type=chunk)[19](index=19&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides supplementary details on accounting policies, segment data, debt, and other financial items [1. Description of Business](index=8&type=section&id=1.%20Description%20of%20Business) - Phibro Animal Health Corporation is a diversified global developer, manufacturer, and marketer of animal health and mineral nutrition products for food and companion animals, as well as performance products for personal care, industrial chemical, and chemical catalyst industries[21](index=21&type=chunk) [2. Summary of Significant Accounting Policies and New Accounting Standards](index=8&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies%20and%20New%20Accounting%20Standards) - No material changes to significant accounting policies as of March 31, 2024[24](index=24&type=chunk) - The company is evaluating the impact and potential early adoption of **ASU 2023-07 (Segment Reporting)** and **ASU 2023-09 (Income Taxes)**, which will be effective for fiscal years ending June 30, 2025, and June 30, 2026, respectively[30](index=30&type=chunk)[31](index=31&type=chunk) [3. Statements of Operations—Additional Information](index=9&type=section&id=3.%20Statements%20of%20Operations%E2%80%94Additional%20Information) - The company recognized **$10,674 thousand of expense** in SG&A during the nine months ended March 31, 2024, due to a partial pension plan settlement[43](index=43&type=chunk) Net Sales by Product Type (Three Months Ended March 31) | Product Type (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Animal Health | $181,333 | $164,434 | | MFAs and other | $108,216 | $93,217 | | Nutritional specialties | $40,194 | $45,016 | | Vaccines | $32,923 | $26,201 | | Mineral Nutrition | $64,228 | $62,922 | | Performance Products | $17,662 | $18,317 | | Total | $263,223 | $245,673 | Net Sales by Region (Three Months Ended March 31) | Region (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | United States | $159,314 | $148,529 | | Latin America and Canada | $53,653 | $53,881 | | Europe, Middle East and Africa | $33,175 | $28,174 | | Asia Pacific | $17,081 | $15,089 | | Total | $263,223 | $245,673 | [4. Balance Sheets—Additional Information](index=11&type=section&id=4.%20Balance%20Sheets%E2%80%94Additional%20Information) Inventories (As of March 31, 2024 vs. June 30, 2023) | Category (in thousands) | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Raw materials | $75,638 | $84,328 | | Work-in-process | $26,110 | $22,350 | | Finished goods | $180,541 | $170,892 | | Total Inventories | $282,289 | $277,570 | Accumulated Other Comprehensive Loss (As of March 31, 2024 vs. June 30, 2023) | Category (in thousands) | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Derivative instruments | $16,182 | $24,589 | | Foreign currency translation adjustment | $(117,249) | $(115,062) | | Unrecognized net pension losses | $(12,485) | $(23,996) | | Income tax (provision) benefit | $(452) | $259 | | Total | $(114,004) | $(114,210) | [5. Debt](index=12&type=section&id=5.%20Debt) - As of March 31, 2024, the company had **$165,000 thousand** in borrowings drawn under the 2021 Revolver, with **$142,706 thousand available** for further borrowings[51](index=51&type=chunk) - The company was in compliance with all financial covenants under the 2021 Credit Agreement as of March 31, 2024[50](index=50&type=chunk) Debt Maturities (As of March 31, 2024 vs. June 30, 2023) | Debt Type (in thousands) | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | 2021 Term A Loan | $262,500 | $273,750 | | 2023 Incremental Term Loan | $46,250 | $50,000 | | 2022 Term Loan | $11,370 | $11,685 | | Long-term debt (net of current maturities) | $291,008 | $311,541 | [6. Related Party Transactions](index=14&type=section&id=6.%20Related%20Party%20Transactions) - Relatives of the CEO provided services, receiving approximately **$392 thousand** and **$1,209 thousand** in compensation for the three and nine months ended March 31, 2024, respectively[55](index=55&type=chunk) [7. Stock Incentive Plan](index=14&type=section&id=7.%20Stock%20Incentive%20Plan) - The Board approved grants of **600,000 restricted stock units (RSUs)** to officers, with vesting based on time and performance (stock price targets)[56](index=56&type=chunk) - Stock-based compensation expense for the three and nine months ended March 31, 2024, was **$135 thousand** and **$296 thousand**, respectively; Unrecognized compensation expense was **$2,967 thousand** as of March 31, 2024, to be recognized over 4.1 years[58](index=58&type=chunk) [8. Commitments and Contingencies](index=15&type=section&id=8.%20Commitments%20and%20Contingencies) - The company is subject to extensive environmental laws and regulations, with ongoing investigation and remediation efforts at various sites[59](index=59&type=chunk)[60](index=60&type=chunk) - Estimated costs for environmental investigation and remediation, including the Omega Chemical Site lawsuit, were approximately **$4,270 thousand** at March 31, 2024, down from **$8,505 thousand** at June 30, 2023[65](index=65&type=chunk) - A definitive settlement agreement was signed in February 2023 for the Omega Chemical Site groundwater plume lawsuit, providing a 'cash-out' settlement for Phibro-Tech and its affiliates, with all cash payments made as of March 31, 2024[64](index=64&type=chunk) [9. Derivatives](index=17&type=section&id=9.%20Derivatives) - The company uses foreign currency option contracts and an interest rate swap to manage exposure to foreign currency exchange rates and interest rates, designating them as cash flow hedges[67](index=67&type=chunk)[69](index=69&type=chunk) Fair Value of Derivatives (As of March 31, 2024 vs. June 30, 2023) | Derivative (in thousands) | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Foreign currency option contracts, net | $467 | $333 | | Interest rate swap | $15,813 | $24,256 | [10. Fair Value Measurements](index=20&type=section&id=10.%20Fair%20Value%20Measurements) - Short-term investments, current assets, current liabilities, and debt are generally carried at amounts representative of their fair value due to their nature or variable rates[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - Derivative instruments' fair values are determined using pricing models with observable market inputs[75](index=75&type=chunk) [11. Business Segments](index=20&type=section&id=11.%20Business%20Segments) - The company evaluates performance and allocates resources based on three segments: Animal Health, Mineral Nutrition, and Performance Products, using Adjusted EBITDA as the primary operating measure[78](index=78&type=chunk)[79](index=79&type=chunk) Segment Net Sales (Nine Months Ended March 31) | Segment (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Animal Health | $514,967 | $483,096 | | Mineral Nutrition | $181,601 | $184,212 | | Performance Products | $47,947 | $55,532 | | Total segments | $744,515 | $722,840 | Segment Adjusted EBITDA (Nine Months Ended March 31) | Segment (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Animal Health | $104,317 | $98,240 | | Mineral Nutrition | $11,053 | $13,555 | | Performance Products | $4,597 | $7,069 | | Total segments | $119,967 | $118,864 | [12. Subsequent Event – Agreement to Acquire an MFA product portfolio and related assets](index=22&type=section&id=12.%20Subsequent%20Event%20%E2%80%93%20Agreement%20to%20Acquire%20an%20MFA%20product%20portfolio%20and%20related%20assets) - In April 2024, Phibro entered an agreement to acquire Zoetis Inc.'s medicated feed additive (MFA) product portfolio and related assets for **$350,000 thousand**, to be financed primarily with **$325,000 thousand** of new debt[84](index=84&type=chunk)[85](index=85&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial performance, condition, liquidity, and operational results [Introduction](index=23&type=section&id=Introduction) - The MD&A aims to help readers understand the company's performance, financial condition, and cash flows, and should be read with the consolidated financial statements[87](index=87&type=chunk) [Overview of our business](index=23&type=section&id=Overview%20of%20our%20business) - Phibro Animal Health Corporation is a global diversified animal health and mineral nutrition company, also manufacturing specialty ingredients for personal care, industrial chemical, and chemical catalyst industries[88](index=88&type=chunk) [Agreement to acquire an MFA product portfolio and related assets](index=23&type=section&id=Agreement%20to%20acquire%20an%20MFA%20product%20portfolio%20and%20related%20assets) - Phibro plans to acquire Zoetis' medicated feed additive (MFA) product portfolio and related assets for **$350,000 thousand**, primarily funded by **$325,000 thousand** in new debt[89](index=89&type=chunk)[90](index=90&type=chunk) [Armed Conflicts](index=24&type=section&id=Armed%20Conflicts) - The company has three manufacturing sites and approximately 500 employees in Israel, which account for **28% of consolidated assets** and **21% of consolidated net sales** for the nine months ended March 31, 2024[93](index=93&type=chunk)[94](index=94&type=chunk) - Despite initial disruptions from the Israel-Hamas conflict and a significant escalation in April 2024, operations in Israel have maintained supply commitments[93](index=93&type=chunk) - Sales to Russia and Ukraine represented approximately **1% of consolidated net sales** for the 12 months ended March 31, 2024, with no production or direct distribution operations in Russia[96](index=96&type=chunk) [Regulatory developments](index=25&type=section&id=Regulatory%20developments) - The FDA issued a final order in November 2023 to revoke the approved method for detecting carbadox residues and proposed withdrawing approval for carbadox use in medicated swine feed[99](index=99&type=chunk) - Phibro has formally requested an evidentiary hearing and filed a lawsuit to invalidate the order revoking the regulatory method for carbadox (Mecadox), which generated approximately **$20.0 million in sales** for the 12 months ended March 31, 2024[99](index=99&type=chunk) [Analysis of the consolidated statements of operations](index=26&type=section&id=Analysis%20of%20the%20consolidated%20statements%20of%20operations) [Summary Results of Operations](index=26&type=section&id=Summary%20Results%20of%20Operations) Summary Results of Operations (Three Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $263,223 | $245,673 | $17,550 | 7% | | Gross profit | $79,600 | $75,540 | $4,060 | 5% | | Operating income | $19,924 | $18,553 | $1,371 | 7% | | Net income | $8,405 | $10,042 | $(1,637) | (16)% | | Basic EPS | $0.21 | $0.25 | $(0.04) | (16)% | | Diluted EPS | $0.21 | $0.25 | $(0.04) | (16)% | Summary Results of Operations (Nine Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $744,515 | $722,840 | $21,675 | 3% | | Gross profit | $225,942 | $221,571 | $4,371 | 2% | | Operating income | $34,899 | $48,081 | $(13,182) | * | | Net income | $1,664 | $21,108 | $(19,444) | * | | Basic EPS | $0.04 | $0.52 | $(0.48) | * | | Diluted EPS | $0.04 | $0.52 | $(0.48) | * | [Net sales, Adjusted EBITDA and reconciliation of GAAP net income to Adjusted EBITDA](index=26&type=section&id=Net%20sales,%20Adjusted%20EBITDA%20and%20reconciliation%20of%20GAAP%20net%20income%20to%20Adjusted%20EBITDA) Segment Net Sales (Three Months Ended March 31) | Segment (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Animal Health | $181,333 | $164,434 | $16,899 | 10% | | Mineral Nutrition | $64,228 | $62,922 | $1,306 | 2% | | Performance Products | $17,662 | $18,317 | $(655) | (4)% | | Total | $263,223 | $245,673 | $17,550 | 7% | Segment Adjusted EBITDA (Three Months Ended March 31) | Segment (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Animal Health | $36,524 | $34,217 | $2,307 | 7% | | Mineral Nutrition | $4,665 | $3,859 | $806 | 21% | | Performance Products | $2,371 | $2,413 | $(42) | (2)% | | Corporate | $(13,856) | $(13,122) | $(734) | 6% | | Total | $29,704 | $27,367 | $2,337 | 9% | Reconciliation of Net Income to Adjusted EBITDA (Nine Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | Change ($) | | :--- | :--- | :--- | :--- | | Net income | $1,664 | $21,108 | $(19,444) | | Interest expense, net | $13,798 | $10,822 | $2,976 | | Provision for income taxes | $2,844 | $11,522 | $(8,678) | | Depreciation and amortization | $26,977 | $25,438 | $1,539 | | EBITDA | $45,283 | $68,890 | $(23,607) | | Pension settlement cost | $10,674 | — | $10,674 | | Brazil employment taxes | $4,202 | — | $4,202 | | Foreign currency losses (gains), net | $16,593 | $4,629 | $11,964 | | Adjusted EBITDA | $77,807 | $80,413 | $(2,606) | [Adjusted net income](index=29&type=section&id=Adjusted%20net%20income) Adjusted Net Income (Three Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net income | $8,405 | $10,042 | $(1,637) | (16)% | | Adjusted net income | $12,697 | $11,643 | $1,054 | 9% | | Adjusted diluted EPS | $0.31 | $0.29 | $0.02 | 9% | Adjusted Net Income (Nine Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net income | $1,664 | $21,108 | $(19,444) | * | | Adjusted net income | $31,697 | $33,754 | $(2,057) | (6)% | | Adjusted diluted EPS | $0.78 | $0.83 | $(0.05) | (6)% | [Comparison of three months ended March 31, 2024 and 2023](index=31&type=section&id=Comparison%20of%20three%20months%20ended%20March%2031,%202024%20and%202023) - Net sales increased by **$17.6 million (7%)** to $263.2 million, driven by Animal Health (up $16.9 million or 10%) and Mineral Nutrition (up $1.3 million or 2%), partially offset by a decrease in Performance Products[109](index=109&type=chunk) - Gross profit increased by **$4.1 million (5%)** to $79.6 million, but gross margin decreased by 50 basis points to 30.2% due to unfavorable product mix[113](index=113&type=chunk) - Net income decreased by **$1.6 million (16%)** to $8.4 million, primarily due to increased interest expense, higher foreign currency losses, and increased SG&A, despite higher operating income[120](index=120&type=chunk) - Adjusted EBITDA increased by **$2.3 million (9%)** to $29.7 million, mainly from Animal Health's gross profit increase[121](index=121&type=chunk) [Comparison of nine months ended March 31, 2024 and 2023](index=33&type=section&id=Comparison%20of%20nine%20months%20ended%20March%2031,%202024%20and%202023) - Net sales increased by **$21.7 million (3%)** to $744.5 million, primarily due to Animal Health sales increasing by $31.9 million (7%)[126](index=126&type=chunk) - Gross profit increased by **$4.4 million**, but gross margin decreased by 40 basis points to 30.3% due to unfavorable product mix[130](index=130&type=chunk) - Net income decreased by **$19.4 million** to $1.7 million, largely due to a $13.2 million decrease in operating income (driven by higher SG&A including pension settlement costs and Brazil employment taxes) and increased foreign currency losses[138](index=138&type=chunk) - Adjusted EBITDA decreased by **$2.6 million (3%)** to $77.8 million, with Animal Health increasing by $6.1 million, offset by decreases in Mineral Nutrition and Performance Products, and higher Corporate expenses[140](index=140&type=chunk) [Analysis of financial condition, liquidity and capital resources](index=35&type=section&id=Analysis%20of%20financial%20condition,%20liquidity%20and%20capital%20resources) - Operating activities provided **$59.2 million in cash** for the nine months ended March 31, 2024, a significant improvement from a $6.9 million usage in the prior year, driven by changes in operating assets and liabilities[147](index=147&type=chunk) - Investing activities used **$39.1 million**, primarily for capital expenditures ($28.2 million) and net purchases of short-term investments ($8.5 million), and a business acquisition ($3.3 million)[148](index=148&type=chunk) - Financing activities used **$8.6 million**, including $14.6 million in dividends paid and $15.3 million in long-term debt payments, partially offset by $24.0 million in net borrowings from the revolving credit facility[149](index=149&type=chunk) - The company expects adequate liquidity for at least the next 12 months, supported by cash on hand, operating cash flows, and financing arrangements, including **$142.7 million available** under the 2021 Revolver as of March 31, 2024[150](index=150&type=chunk)[153](index=153&type=chunk) Net Cash Provided (Used) by Activities (Nine Months Ended March 31) | Activity (in thousands) | 2024 | 2023 | Change ($) | | :--- | :--- | :--- | :--- | | Operating activities | $59,165 | $(6,928) | $66,093 | | Investing activities | $(39,083) | $(63,736) | $24,653 | | Financing activities | $(8,555) | $33,319 | $(41,874) | | Net increase (decrease) in cash and cash equivalents | $8,944 | $(37,010) | $45,954 | [General description of non-GAAP financial measures](index=38&type=section&id=General%20description%20of%20non-GAAP%20financial%20measures) - **Adjusted EBITDA** is used by management as a primary operating measure for financial and operating decisions, and annual budgets, reflecting performance before certain income statement elements and unusual/non-recurring items[159](index=159&type=chunk)[160](index=160&type=chunk) - **Adjusted net income** and **adjusted diluted EPS** are presented to show operational results before certain income statement elements, including amortization of acquired intangibles, acquisition-related costs, stock-based compensation, and unusual/non-recurring items[162](index=162&type=chunk) - Foreign currency gains and losses are considered non-operational and largely non-cash, arising principally from intercompany transactions[166](index=166&type=chunk) [New accounting standards](index=40&type=section&id=New%20accounting%20standards) - Refers to Note 2 for discussion of new accounting standards, including ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Taxes)[167](index=167&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [Critical Accounting Policies](index=40&type=section&id=Critical%20Accounting%20Policies) - No significant changes in critical accounting estimates since June 30, 2023, as disclosed in the Annual Report on Form 10-K[167](index=167&type=chunk) [Forward-Looking Statements](index=40&type=section&id=Forward-Looking%20Statements) - The report contains forward-looking statements subject to risks and uncertainties, including outbreaks of animal diseases, regulatory actions (e.g., FDA withdrawal of Mecadox), competition, weather, armed conflicts (Israel-Hamas, Russia-Ukraine), and economic conditions[168](index=168&type=chunk)[169](index=169&type=chunk)[171](index=171&type=chunk) - The company cautions that actual results may differ materially from expectations due to various factors, and undertakes no obligation to update these statements[173](index=173&type=chunk)[174](index=174&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses the company's exposure to interest rate, foreign currency, and commodity price risks - The company is exposed to market risks from changes in interest rates, foreign currency exchange rates, and commodity prices[175](index=175&type=chunk) - Derivatives (foreign currency contracts and interest rate swaps) are used for hedging, not speculative purposes[175](index=175&type=chunk) - No material changes in financial market risks from those disclosed in the Annual Report as of the report date[176](index=176&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and notes no material changes in internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2024[177](index=177&type=chunk) - There were no material changes to internal control over financial reporting during the quarter ended March 31, 2024[178](index=178&type=chunk) [PART II—OTHER INFORMATION](index=43&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) Refers to the financial statement notes for details on legal matters and contingencies - Information on legal proceedings is incorporated by reference from 'Notes to Consolidated Financial Statements—Commitments and Contingencies' (Note 8)[179](index=179&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) Directs readers to the Annual Report for a comprehensive discussion of risk factors - Readers should consider risk factors discussed in Item 1A of the Annual Report[180](index=180&type=chunk) - No material changes in the company's risk factors from those disclosed in the Annual Report[181](index=181&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Indicates no unregistered sales of equity securities or use of proceeds occurred - No unregistered sales of equity securities and use of proceeds[182](index=182&type=chunk) [Item 3. Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) States that no defaults upon senior securities occurred during the reporting period - No defaults upon senior securities[183](index=183&type=chunk) [Item 4. Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Indicates that mine safety disclosures are not applicable to the company - Mine Safety Disclosures are not applicable[184](index=184&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) Discloses a Rule 10b5-1 trading arrangement adopted by an entity controlled by the CEO - BFI Co, LLC, controlled by the CEO, adopted a Rule 10b5-1 trading arrangement to sell up to **528,000 shares** of Class A common stock through November 15, 2024[185](index=185&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) Lists the exhibits filed with the Form 10-Q, including certifications and XBRL documents - The report includes certifications from the Chief Executive Officer and Chief Financial Officer pursuant to the Sarbanes-Oxley Act of 2002 (Sections 302 and 906), along with Inline XBRL documents[186](index=186&type=chunk) [SIGNATURES](index=45&type=section&id=SIGNATURES) Contains the official signatures of the company's executive officers, dated May 8, 2024 - The report was signed by Jack C. Bendheim, Chairman, President and Chief Executive Officer, and Glenn C. David, Chief Financial Officer, on May 8, 2024[190](index=190&type=chunk)

Phibro Animal Health Corporation (NASDAQ:PAHC) Q2 2024 Earnings Conference Call February 8, 2024 9:00 AM ET Company Participants Richard Johnson - Chief Financial Officer Jack Bendheim - Chairman, President and Chief Executive Officer Daniel Bendheim - Executive Vice President, Corporate Strategy Glenn David - Incoming Chief Financial Officer Conference Call Participants Erin Wright - Morgan Stanley Mikaela Franceschina - Barclays Brian Wright - Roth MKM Operator Hello and thank you for standing by. My name ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36410 Phibro Animal Health Corporation (Exact name of registrant as specified in its charter) Delaware 13- ...

Phibro Animal Health Corporation (NASDAQ:PAHC) Q1 2024 Earnings Conference Call November 9, 2023 9:00 AM ET Company Participants Daniel M. Bendheim - EVP, Corporate Strategy Jack C. Bendheim - Chairman, President & CEO Richard G. Johnson - Interim CFO Conference Call Participants Unidentified Analyst - Barclays Michael Ryskin - Bank of America Securities Brian Wright - ROTH MKM Partners Linda Bolduc - Morgan Stanley Operator Hello, and thank you for standing by. My name is Regina, and I will be your confere ...

Phibro Animal Health Corporation Webcast and Conference Call November 9, 2023 U.S. toll-free +1.888.330.2022 International toll +1.365.977.0051 Conference ID: [3927884] November 9, 2023 Webcast & Conference Call Cautionary Statement Regarding Forward-Looking Statements Non-GAAP Financial Measures Internet Posting of Information This presentation is a supplement to, and should be read in conjunction with, Phibro Animal Health Corporation's earnings release for the quarter ended September 30, 2023. Key Themes ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36410 Phibro Animal Health Corporation (Exact name of registrant as specified in its charter) Delaware 13 ...

Phibro Animal Health Corporation (NASDAQ:PAHC) Q4 2023 Results Conference Call August 31, 2023 9:00 AM ET Company Participants Damian Finio - Chief Financial Officer Jack Bendheim - Chairman, President and Chief Executive Officer Donny Bendheim - Director and Executive Vice President, Corporate Strategy Conference Call Participants Brian Wright - ROTH MKM Michael Ryskin - Bank of America Operator Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your operator today. At this ti ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36410 Phibro Animal Health Corporation (Exact name of registrant as specified in its charter) Delaware 13-1840497 (Sta ...

Financial Performance & Guidance - The company's FY2023 financial guidance projects net sales between $960 million and $1 billion, representing a 2-6% year-over-year growth[98] - Adjusted EBITDA for FY2023 is guided between $113 million and $118 million, also reflecting a 2-6% year-over-year increase[98] - Before strategic investments, adjusted EBITDA guidance is $150-155 million, representing a 7-11% year-on-year growth[112] Business Segment Performance - In fiscal year 2022, Animal Health segment sales were $607 million and adjusted EBITDA was $124 million[63] - Mineral Nutrition segment sales reached $221 million in 2021[94] - Performance Products segment sales were $76 million with an adjusted EBITDA of $9 million in 2022[89] Growth Strategies & Investments - Nutritional specialties net sales increased from $52 million to $157 million since the IPO[51] - Vaccine net sales increased from $29 million to $88 million[119] - The company plans to invest $37 million in R&D and other projects, including companion animal, nutritional specialty, and vaccine development[111] Companion Animal Focus - The company estimates the addressable market for atopic dermatitis in dogs worldwide at $1 billion[72] - The estimated addressable market for oral care in cats and dogs worldwide is $2 billion[72] - The estimated addressable market for pain management in dogs worldwide is over $1 billion[79]

Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2023 were $246 million, reflecting a 3% increase compared to the same quarter last year [55] - Adjusted net income and adjusted diluted earnings per share decreased by 13%, driven by higher SG&A expenses and taxes, offset by higher gross profit [28] - Consolidated adjusted EBITDA decreased by $0.6 million or 2% compared to the prior year's quarter, influenced by lower adjusted EBITDA in the Mineral Nutrition and Performance Products segments [7] Business Line Data and Key Metrics Changes - The Animal Health segment achieved a 10% year-to-date increase in net sales compared to the same period last year, with Q3 net sales of $164.4 million, an 11% increase year-over-year [4][8] - Within the Animal Health segment, MFAs and other products increased by $8.9 million or 11%, nutritional specialties grew by 9%, and vaccines saw a $3.3 million or 15% increase [5][29] - The Mineral Nutrition segment reported net sales of $62.9 million, a decline of 9% year-over-year, driven by decreased demand for trace minerals [9] - Performance Products segment net sales were $18.3 million, reflecting a $3.7 million decline primarily due to decreased demand for copper-based products [30] Market Data and Key Metrics Changes - The company is experiencing recessionary pressures in the Mineral Nutrition segment as customers reduce purchases and lower inventory [4] - The company noted strong demand for its products in Latin America, particularly in the vaccine category, following the opening of a new facility in Brazil [5] Company Strategy and Development Direction - The company continues to focus on raising prices when market conditions allow and remains optimistic about growth opportunities in the Animal Health segment [6] - The Companion Animal segment is viewed as a medium-term growth driver, with ongoing development in the pipeline [26] - The company is taking steps to better balance inventory to meet customer needs, particularly in the Mineral Nutrition segment [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year guidance despite challenging market conditions, projecting net sales of $960 million to $1 billion for the fiscal year [34] - The company anticipates improvements in free cash flow as it focuses on cost control and managing working capital [11] - Management views the business as recession-resistant, noting that demand for protein remains stable even during economic downturns [46] Other Important Information - The company had $192 million of liquidity available at the quarter end, including cash and short-term investments of $77 million [12] - The gross leverage ratio at quarter end was 4.3x, calculated by dividing total debt of $482 million by trailing 12-month adjusted EBITDA of $112 million [33] - The company plans to publish its second ESG report, reflecting progress made in 2022 [35] Q&A Session Summary Question: Update on feedlot dynamics in Mineral Nutrition - Management noted that demand is influenced by inventory adjustments following previous supply chain concerns, with a focus on managing working capital [36][37] Question: Impact of China's lifting of the embargo on Brazilian beef imports - Management acknowledged this change as a potential tailwind for the Latin America Animal Health business, which has been performing well [38] Question: Capacity of the Brazilian vaccine facility - The facility is involved in custom vaccine production, which is a farm-by-farm business, and recent approvals for poultry vaccines are expected to enhance growth [39] Question: U.S. broiler volumes and Brazilian cattle dynamics - U.S. broiler volumes are reported to be flat and holding steady, while Brazilian cattle business remains flat to slightly up [40][42]