We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Phibro Animal S | LSE:PAHC | London | Ordinary Share | COM SHS USD0.0001 (REGS) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 5.225 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
RNS Number : 2384E
Phibro Animal Health Corporation
24 September 2008
For release: IMMEDIATE
PHIBRO ANIMAL HEALTH CORPORATION ANNUAL RESULTS FOR THE TWELVE MONTHS ENDED 30 JUNE 2008
RIDGEFIELD PARK, New Jersey, 24 September 2008 - Phibro Animal Health Corporation ("Phibro" or the "Company") announces its results for
the twelve months ended 30 June 2008. For additional information, the Company's Annual Report will shortly be available at www.pahc.com.
FINANCIAL HIGHLIGHTS
($millions) 2008 2007 Increase % Change
Sales $511.4 $453.0 $58.4 13%
Adjusted ebitda $50.7 $47.4 $3.3 7%
FINANCIAL STATEMENTS
Consolidated statements of operations
For the years ended June 30 2008 2007 2006
(in thousands, except per share amounts)
Net sales $ 511,437 $ 453,045 $ 398,402
Cost of goods sold 389,676 340,175 296,825
Belgium Plant Transactions and Brazil start-up costs - 1,646 10,461
Gross profit 121,761 111,224 91,116
Selling, general and administrative expenses 81,252 76,162 68,110
Costs related to equity transactions 11,163 - -
Cost of agreement with subsidiary stockholder - 3,000 -
Operating income 29,346 32,062 23,006
Interest expense 29,822 29,968 33,108
Interest (income) (168) (234) (340)
Other (income) expense, net (6,222) (2,365) (1,821)
Post-redemption redemption price adjustment on
Series C preferred shares 4,000 - -
Loss on extinguishment of debt - 11,001 -
Income (loss) from continuing operations
before income taxes 1,914 (6,308) (7,941)
Provision for income taxes 2,550 406 5,205
Income (loss) from continuing operations (636) (6,714) (13,146)
Gain on disposal of discontinued operations,
net of income taxes 2,838 - -
Net income (loss) $ 2,202 $ (6,714) $ (13,146)
Earnings (loss) per common share - basic and diluted:
Income (loss) from continuing operations $ (0.01) $ (0.11) $ (0.22)
Income (loss) from discontinued operations $ 0.05 $ - $ -
Net income (loss) $ 0.04 $ (0.11) $ (0.22)
Consolidated balance sheets
As of June 30 2008 2007 2006
(in thousands)
ASSETS
Cash and cash equivalents $ 6,994 $ 11,994 $ 8,688
Accounts receivable, net 90,869 76,112 58,990
Inventories 110,437 89,394 96,803
Prepaid expenses and other current assets 17,304 14,003 12,165
Total current assets 225,604 191,503 176,646
Property, plant and equipment, net 75,188 53,592 51,326
Intangibles, net 5,996 7,382 8,784
Other assets 18,287 19,373 11,520
$ 325,075 $ 271,850 $ 248,276
LIABILITIES AND SHAREHOLDERS' DEFICIT
Loans payable to banks $ - $ - $ 8,500
Current portion of long-term debt 435 546 1,317
Accounts payable 54,064 45,998 41,639
Accrued expenses and other current liabilities 40,515 42,761 49,499
Total current liabilities 95,014 89,305 100,955
Domestic senior credit facility 5,850 8,485 -
Long-term debt 241,418 240,080 209,810
Other liabilities 21,185 22,019 21,264
Total liabilities 363,467 359,889 332,029
Commitments and contingencies
Preferred shares - - 521
Common shares 7 6 6
Paid-in capital 40,622 800 856
Accumulated deficit (93,143) (96,646) (89,932)
Accumulated other comprehensive income 14,122 7,801 4,796
Total shareholders' deficit (38,392) (88,039) (83,753)
$ 325,075 $ 271,850 $ 248,276
Consolidated statements of cash flows
For the years ended June 30 2008 2007 2006
(in thousands)
OPERATING ACTIVITIES
Net income (loss) $ 2,202 $ (6,714) $ (13,146)
Adjustment for discontinued operations (2,838)
- -
Income (loss) from continuing operations (636) (6,714) (13,146)
Adjustments to reconcile income (loss) from continuing operations to net cash
provided (used) by operating activities:
Depreciation and amortization 10,007 10,717 13,991
Amortization of deferred financing costs 1,380 1,597 4,064
Deferred income taxes 673 1,201 (520)
Net (gains) from sales of assets (154) (511)
(6)
Equity (income) loss on investment 193
- -
Effects of changes in foreign currency (7,730) (3,524) 442
Other (184) (126)
-
Post-redemption redemption price adjustment 4,000
- -
Loss on extinguishment of debt 11,001
- -
Payments of tender premiums on long-term debt (9,940)
- -
Changes in operating assets and liabilities
Accounts receivable (13,117) (16,756) (1,157)
Inventories (16,456) 10,571 2,042
Prepaid expenses and other current assets (1,346) 191 77
Other assets (2,163) (984) 102
Accounts payable 7,524 3,909 4,629
Accrued expenses and other liabilities 381 1,060 (3,619)
Accrued expenses: Belgium Plant Transactions (2,674) (10,057) (5,459)
Accrued expenses: Cost of agreement with
subsidiary stockholder (3,000) 3,000
-
Net cash provided (used) by operating (23,302) (4,734) 809
activities
INVESTING ACTIVITIES
Capital expenditures (19,833) (10,621) (15,092)
Proceeds from Belgium Plant Transactions 7,997
- -
Proceeds from sales of assets 244 501 1,998
Other investing 717 (1,809) (205)
Discontinued operations 2,953
- -
Net cash provided (used) by investing (15,919) (11,929) (5,302)
activities
FINANCING ACTIVITIES
Net increase (decrease) in book overdrafts 36 (40) 155
Net increase (decrease) in short-term debt (8,500) 462
-
Borrowings under the domestic senior credit facility 121,251 81,298
-
Repayments of the domestic senior credit facility (123,886) (72,813)
-
Proceeds from the sale of common shares 45,000
- -
Proceeds from long-term debt 240,000
- -
Post-redemption redemption price adjustment (4,000)
- -
Payments of long-term debt and capital leases (230) (210,659) (1,159)
Equity transactions costs (3,954)
- -
Debt financing costs (8,852)
- -
Redemption of Series A preferred stock (577)
- -
Net cash provided (used) by financing 34,217 19,857 (542)
activities
Effect of exchange rate changes on cash 112 126
4
Net increase (decrease) in cash and cash (5,000) 3,306 (4,909)
equivalents
Cash and cash equivalents at beginning of period 11,994 8,688 13,597
Cash and cash equivalents at end of period $ 6,994 $ 11,994 $ 8,688
Supplemental cash flow information
Interest paid $ 28,275 $ 20,319 $ 22,178
Income taxes paid 4,640 5,596 5,084
Capital lease additions 41 622
-
The table below reconciles net income (loss) to ebitda and adjusted ebitda:
For the years ended June 2008 2007 2006
30
(in thousands)
Net income (loss) $ 2,202 $ (6,714) $ (13,146)
Plus
(Income) loss from,
and disposal of,
discontinued
operations, net of (2,838) - -
income taxes
Provision for income 2,550 406 5,205
taxes
Interest expense, 29,654 29,734 32,768
net
Other (income) (6,222) (2,365) (1,821)
expense, net
Post-redemption 4,000 - -
redemption price
adjustment
Net loss (gain) on - 11,001 -
extinguishment of
debt
Depreciation and 10,007 10,717 13,991
amortization
Ebitda $ 39,353 $ 42,779 $ 36,997
Adjustments
Belgium Plant - 1,646 5,928
Transactions and
Brazil start-up
costs
Cost of agreement - 3,000 -
with subsidiary
stockholder
Costs related to 11,163 - -
equity transaction
Prince Agri Products 196 - -
plant consolidation
costs
Adjusted ebitda $ 50,712 $ 47,425 $ 42,925
COMPARISON OF YEARS ENDED 30 JUNE 2008 AND 2007
Net sales of $511.4 million increased $58.4 million, or 13%. Animal Health and Nutrition sales of $417.9 million grew $58.0 million, or
16%, due to higher average selling prices (related to cost increases) and volume increases. Distribution sales of $58.6 million increased
$6.1 million, or 12%, due to higher unit volumes and higher average selling prices. Industrial Chemicals sales of $34.9 million decreased by
$5.7 million, or 14%, due to reduced unit volumes and a $3.6 million customer contract early termination payment received last year.
Gross profit of $121.8 million increased $10.5 million, to 23.8% of net sales. Adjusted gross profit, excluding the Belgium Plant
Transactions and Brazil start-up costs, increased $8.9 million. Animal Health & Nutrition gross profit improved due to higher unit volumes
and higher average selling prices. Higher manufacturing costs associated with the strengthening of the Brazilian Real and higher raw
material costs offset part of the increase. Distribution gross profit increased due to unit volume growth and sales of higher margin
products. Industrial Chemicals gross profit decreased due to a customer contract early termination payment, net of related accelerated
depreciation, received last year.
Selling, general and administrative expenses of $81.3 million increased $5.1 million, or 7%. Expenses increased due to increased
headcount and advertising and promotional expenditures to support sales growth in all operating segments offset in part by lower Industrial
Chemicals legal expenses.
Prince Agri Products recorded expense of $0.2 million in fiscal 2008 for accrued severance costs related to the planned consolidation
of manufacturing facilities. We expect to record total severance expense of $1.4 million through June 2010 as existing facilities are closed
and the employees at those locations are terminated.
Costs related to equity transactions of $11.2 million included $2.8 million of transaction costs incurred by us related to the sale of
existing common shares from Phibro shareholders to 3i Quoted Private Equity Limited ("3iQPEL"). The costs also included $6.7 million of
executive and management bonuses.
During fiscal 2007, the Company accrued $3.0 million related to a shareholder agreement. Such amount was paid during 2008.
Adjusted ebitda of $50.7 million increased $3.3 million, or 7%, primarily due to increased unit volumes of Animal Health & Nutrition
products and increased unit volumes and sales of higher margin products in Distribution.
OPERATING SEGMENTS COMPARISON OF YEARS ENDED 30 JUNE 2008 AND 2007
ANIMAL HEALTH & NUTRITION
Net sales of $417.9 million increased $58.0 million, or 16%. NFA net sales increased by $54.2 million due to higher average selling
prices (related to cost increases), higher unit volumes and improved sales of higher margin specialty products. MFA net sales increased by
$3.7 million. MFA revenues were higher for sales of antibiotics and were lower for antibacterials and anthelmintics. The increase in MFA
revenues was primarily due to higher unit volumes.
Adjusted ebitda of $54.6 million increased $3.0 million, or 6%, due to unit volume growth and favorable product mix offset in part by
higher selling, general and administrative expenses due to increased sales force headcount and advertising and promotional costs, higher
manufacturing costs associated with the strengthening of the Brazilian Real and raw material cost increases and lower margins for MFA
products.
PERFORMANCE PRODUCTS
Distribution net sales of $58.6 million increased $6.1 million, or 12%. Net sales increased due to unit volume growth and increased
average selling prices. Distribution ebitda of $13.5 million improved $2.2 million, or 19%, due to increased unit volumes and sales of
higher margin products.
Industrial Chemicals net sales of $34.9 million decreased $5.7 million. Sales declined due to a $3.6 million customer contract early
termination payment received last year, expiration of a toll manufacturing agreement and lower unit volumes offset by higher selling prices
of copper related products. The ebitda loss of $1.9 million was unfavorable by $2.1 million compared with last year, due to unfavorable raw
material costs, reduced unit volumes and a customer contract early termination payment received last year, offset in part by higher legal
costs last year.
LIQUIDITY AND CAPITAL RESOURCES
Capital expenditures were $19.8 million and included $7.9 million for capacity expansion at our Brazil production facility. Other
capital expenditures included: expansion of manufacturing capacity for wood treatment preservatives; expansion of laboratory facilities
serving the ethanol industry; purchase and implementation of computer software; and maintenance of our existing asset base and for
environmental, health and safety projects.
In July 2008, we purchased approximately 26 acres near Quincy, Illinois as the location of new manufacturing, warehousing and laboratory
facilities. In September 2008, we started construction of such new facilities. We plan to consolidate our U.S. feed ingredient operations at
the new facilities and close our facilities in Marion, Iowa and Bremen, Indiana in phases as the new facilities become operational through
June 2010.
Working capital as of 30 June 2008 was $125.4 million compared to $90.8 million at 30 June 2007, an increase of $34.6 million. We define
working capital as total current assets (excluding cash and cash equivalents) less total current liabilities (excluding loans payable to
banks, current portion of long-term debt and liabilities related to the equity transactions). The increase in working capital primarily was
due to increased accounts receivable and inventories to support business growth.
LIQUIDITY
At 30 June 2008, we had outstanding borrowings of $5.9 million under our domestic senior credit facility and outstanding letters of
credit and other commitments of $19.6 million, leaving $39.5 million available for borrowings and letters of credit under our domestic
senior credit facility.
UNREGISTERED SALES OF EQUITY SECURITIES
Effective 12 March 2008, 3i QPEL purchased from shareholders of Phibro 19.5% of the then-outstanding common shares in Phibro for an
amount of $52.65 million in cash pursuant to a Stock Purchase Agreement between and among 3i QPEL (as purchaser), Phibro, and the
shareholders of Phibro signatory thereto. 3i QPEL is a public closed-ended investment company listed on the London Stock Exchange.
On 4 April 2008, Phibro sold 9.0 million common shares, representing approximately 13% of the post-transaction equity, and realized
$45.0 million of gross proceeds. In connection with such sale, the common shares of Phibro have been listed on AIM.
The common shares are now held 70% by BFI, a Bendheim family investment vehicle, and 30% by other non-U.S. institutional investors
including 3i QPEL. Jack C. Bendheim has sole authority to vote the common shares owned by BFI. BFI and 3i QPEL hold 48.30 million and 20.61
million common shares, representing 70.0% and 29.9%, respectively, of Phibro's issued share capital.
After payment of transaction and other related costs, the Company used approximately $25.5 million of net proceeds from the equity sale
to reduce amounts outstanding under its senior credit facility.
OUTLOOK
The Company's expectations are for its business to continue at similar or improving levels for the new fiscal year. Revenues subsequent
to our fiscal year end have continued at recent historical levels.
BOARD
E. Thomas Corcoran was appointed as an independent non-executive Director of the Company in May 2008. Mr. Corcoran joined Fort Dodge
Animal Health, a division of Wyeth, Inc. ("Fort Dodge") in 1985 as Division President. In 1995, Mr. Corcoran was promoted to President of
Fort Dodge. He retired from Fort Dodge in early 2008. During this time Mr. Corcoran served as a member of the Operations Committee of the
Corporation and also served on the Management and Human Resources and Benefits committees.
ABOUT THE COMPANY
PAHC is a diversified global manufacturer and marketer of a broad range of animal health and nutrition products to the poultry, swine
and cattle markets. PAHC is also a manufacturer and marketer of performance products for the ethanol, wood preservation and personal care
industries. For more information, please visit www.pahc.com.
For further information please contact:
Phibro Animal Health Corporation +1 201 329 7300
Richard Johnson, Chief Financial
Officer
investor.relations@pahc.com
Panmure Gordon (UK) Limited +44 (0) 207 459 3600
Andrew Godber
Rakesh Sharma
This announcement is available on the PAHC website at: www.PAHC.com
REGULATION S
The securities discussed in this release have not been registered under the U.S. Securities Act of 1933, as amended ("Securities Act"),
and may not be offered or sold in the United States or to U.S. Persons (as defined in Regulation S promulgated under the Securities Act)
absent registration or an applicable exemption from the registration requirements of the Securities Act.
FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements, including statements regarding management's expectations and beliefs regarding
the future results or performance of the Company. Because these statements apply to future events, they are subject to risks and
uncertainties. When used in this announcement, the words "anticipate", "believe", "estimate", "expect", "expectation", "project" and
"intend" and similar expressions are intended to identify such forward-looking statements. Our actual results could differ materially from
those projected in the forward-looking statements. Additionally, you should not consider past results to be an indication of our future
performance. We do not intend to update any of the forward-looking statements after the date of this announcement to conform these
statements to actual results, to changes in management's expectations or otherwise, except as may be required by law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEDFILSASEEU
1 Year Phibro Animal S Chart |
1 Month Phibro Animal S Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
