Stock Monitor: AAC Holdings Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 28, 2018 / Active-Investors.com has just released a free earnings report on Phibro Animal Health Corp. (NASDAQ: PAHC) (“Phibro”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PAHC. Phibro reported its second quarter fiscal 2018 operating and financial results on February 05, 2018. The maker of animal health products and nutritional supplements outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Phibro Animal Health most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
Phibro's net sales of $205.9 million for the three months ended December 31, 2017, increased 7% compared to net sales of $191.6 million in Q2 FY17. The Company's reported numbers exceeded analysts' expectations by $11.11 million.
During Q2 FY18, Phibro's gross profit of $66.9 million, jumped 5% from $63.5 million in Q2 FY17. The Company's gross profit decreased to 32.5% of net sales for the reported quarter compared to 33.1% for the prior year's same quarter. Phibro's Q2 FY18 results included $1.4 million of acquisition-related cost of goods sold.
For Q2 FY18, Phibro's selling, general, and administrative expenses (SG&A) of $43.0 million, increased 5% from $40.9 million in Q2 FY17. The Company's SG&A for the reported quarter included $1.7 million in costs relating to the partial settlement of the pension plan. For Q2 FY18, Phibro's adjusted EBITDA of $32.5 million grew 4% compared to $31.2 million in Q2 FY17.
Phibro's net income was $7.0 million, or $0.17 per diluted share, for Q2 FY18 compared to net income of $13.4 million, or $0.34 per diluted share, for Q2 FY17. The decrease in earnings was primarily due to a $8.3 million increase in income tax expense.
Phibro's adjusted earnings were $0.44 per share for Q2 FY18, up 12.8% compared to $0.39 per share in Q2 FY17. Higher gross profit, lower interest expense, net, and a lower effective income tax rate were the primary contributors to the improvement. The Company's earnings beat Wall Street's estimates of $0.39 per share.
Phibro Animal Health's Segment Results
During Q2 FY18, the Animal Health segment's net sales of $132.8 million advanced 7% compared to $123.7 million in Q2 FY17, primarily due to volume increases across all product groups within the segment. Within the Animal Health division, Nutritional specialty products jumped 12% to $32.6 million on a y-o-y basis, primarily due to volume growth of its products for the dairy and poultry industries in the United States and by penetration into various international countries. The segment's Vaccines sales rose 7% to $18.2 million, primarily due to volume growth in international markets. The segment's MFA sales gained 6% to $82.0 million.
Excluding the effects of the acquisition-related cost of goods sold, Animal Health's gross profit increased $3.9 million on a y-o-y basis due to volume growth, higher average selling prices on selected products, and lower unit costs from improved operating efficiencies. Animal Health's adjusted EBITDA for the reported quarter edged up 1% to $35.0 million on a y-o-y basis, due to sales growth and increased gross profit.
For Q2 FY18, the Mineral Nutrition segment's net sales totaled $59.6 million reflecting growth of 5% compared to $56.7 million in Q2 FY17. The increased revenue was due to favorable product mix, plus higher average selling prices resulting from underlying raw material commodity price increases. Mineral Nutrition gross profit increased $0.9 million on a y-o-y basis due to favorable product mix and higher average selling prices. Mineral Nutrition adjusted EBITDA advanced 18% to $5.6 million on a y-o-y basis.
During Q2 FY18, the Performance Products segment's net sales surged 19% to $13.4 million compared to $11.2 million in Q2 FY17, due to higher average selling prices of copper-based products and higher volumes of copper-based and personal care products. The segment's adjusted EBITDA was similar to the prior year's same quarter at $0.3 million as higher volumes and selling prices were offset by higher product costs.
Phibro had $67 million cash and short-term investments on hand at December 31, 2017. The Company had 2.6x leverage ratio at December 31, 2017, with total debt of $318 million.
Stock Performance Snapshot
February 27, 2018 - At Tuesday's closing bell, Phibro's stock was slightly down 0.52%, ending the trading session at $38.55.
Volume traded for the day: 156.06 thousand shares, which was above the 3-month average volume of 106.34 thousand shares.
Stock performance in the last month – up 7.53%; previous three-month period – up 11.26%; past twelve-month period – up 35.74%; and year-to-date – up 15.07%
After yesterday's close, Phibro's market cap was at $1.53 billion.
Price to Earnings (P/E) ratio was at 22.58.
The stock has a dividend yield of 1.04%.
The stock is part of the Healthcare sector, categorized under the Specialized Health Services industry.
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