Good day, ladies and gentlemen and welcome to the Phibro First Quarter Financial Results Conference Call. [Operator Instructions]. I would now like to turn the call over to Richard Johnson, Chief Financial Officer. Sir, you may begin.

Thank you operator, and good morning everyone. Welcome to the Phibro Animal Health earnings call for our first quarter ended September 30. On the call today is myself, I’m the Chief Financial Officer; Jack Bendheim is traveling internationally and most likely will not be able to join us. On the call today, we will provide an overview of our quarterly results and also some updated guidance for our fiscal year ending next June, and then we’ll open the lines for your questions. Before we begin, some of the standard things like we remind you that the earnings Press Release and financial Tables can be found on the Investors section of our website at www.pahc.com. We are 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 on our earnings press release. Our remarks today also will include references to certain financial measures, which were not prepared in accordance with generally accepted accounting principles or U.S. GAAP. I refer you to the non-GAAP financial information section in our earnings release for a discussion of these measures. Reconciliations of these non-GAAP financial measures for the most directly comparable U.S. GAAP measures are included in the financial tables that accompany the Earnings Press Release. Before we get into the numbers, let me remind you and let me remind everyone that we present our results on a GAAP basis and on an adjusted basis. We present adjusted results…

Thank you. [Operator Instructions]. Our first question comes from Erin Wright from Credit Suisse. Your line is now open.

This is Katie Tryhane on for Erin. We are just wondering, what was the acquisition that you mentioned in the press release, and can you just elaborate or quantify that contribution? Thanks.

I didn’t hear the word, Katie, what that we mentioned on the press release?

What was the acquisition?

The acquisition. We had – well we did two things in the quarter, one that we talked about as part of our year-end release. We finalized the full purchase of the, it’s called MJB swine vaccines in the United States, and that was the bulk of the spending in the quarter, like the business acquisition, cash flow in the quarter, that was a swine vaccine. We also bought a small vaccine manufacturer and sort of a developer, which we haven’t released more information about. But they do have some, and we did acquire some interesting technology and potential products for the agriculture industry.

Okay, got it. That’s helpful. And then can you just speak a little bit more to when you could get back to double-digit growth in vaccines and nutritional specialties? Thanks.

It’s hard to say, you know precisely when. I think, as we said we are seeing this year our visibility is probably more cloudy than it’s been in a while as far as the – as what our customers are thinking how their businesses are progressing. So, I’m hesitant to say precisely when, I think, you know it will be - it’s hard to say when. So, can’t really put a date on it. But I think we still have a lot of confidence and belief in the portfolio, and we see our customers more and more broadly accepting the fact that these are kind of the best products for them to use. But there’s a lot of other factors affecting our customers right now.

Okay, got it. Thanks.

[Operator Instructions] And our next question comes from Derik De Bruin from Bank of America. Your line is now open.

Hey guys, it’s Mike Ryskin on for Derik. Thanks for talking the call. A couple questions, I want to start with sort of your closing remarks there. You talked about all the challenging conditions. I think the biggest one still in my mind and correct me if I’m wrong, is the challenges in the dairy markets and how that’s affecting some of the nutritional specialties. That’s been ongoing for some time, but it seems like it’s really, you know in the broader market gone to worse in recent months. Do you have any sense of visibility into when that will improve, because in my understanding that’s mostly tied to just the glut [ph] in the market in terms of oversupply, but if you could just talk about the dairy markets in a little bit more detail?

Yes. This is a global problem, Mike. But most of our business today is in the United States. And so what we’re seeing is dairy producers, the farmers are just getting squeezed unmercifully by the supply demand imbalance. So this is only going to sort itself out when the industry probably sorts itself out in terms of only the strong survive and some of the weaker players fall away and you know supply comes back into more of a balance. There’s also global factors of how much of dairy products. And when you think of dairy, everyone thinks of liquid milk, but really we are talking about skimmed milk powder, whole milk powder, components of dairy really that go into many foods around the world. So, I think this has been lower, longer than many people have expected, and the industry will come out if at some point, but hard to put a timeline on when that might happen.

All right, thanks. And especially in vaccines and some of the other segments you talked about the international impact on some of the timing. I was curious if there was, if you could break out a currency, a straight FX impact as well.

Actually, so the currency is not so much just, that we - the currency is the fact that in many markets we price in U.S. dollars, but if the local currency devalues by 20% or 30% or more percent, all of a sudden you know that customer’s price in his market has gone up by 20% or 30%. So it’s a complicated equation, we don’t have a precise number I can give you. But I can tell you it was a negative to our business in several markets. And then in some markets, we do price in local currency, and there we’ve seen currencies devalue, and that’s hurt our top line and hurt our profitability too.

Okay, thanks. And then, one last one if I could squeeze it in. You talked a lot about you know investment in SG&A, investment in the portfolio, if you could give a little bit of color on whether the investment is going to the commercial sales force or the R&D, the product pipeline. And specifically on that, if you could talk a little bit more about any products that are coming up that we should keep an eye on, or if you have any progress on some of the companion animal investments going on there?

I’d say our investment is more in - so first of all, our investment is focused on the nutritional specialty and vaccine categories, and so it’s really pipeline development. In the case of vaccines, we are looking at some new products; we are also building out and developing the idle vaccine facility that we purchased six months ago or so, and we’re spending money on that as we ramp-up that facility. You know products, I can’t give you any specific products, but those are the categories that we are working on. I would say in the companion animal space, we continue to make progress, both in the product that we talked about previously and another one or two products. And so, we could be out there at least doing some test marketing in perhaps the next six months, but it’s too early to really say where that might go.

Great, I appreciate all that. Thank you.

Alright.

Thank you. And I’m not showing any further questions at this time. I would now like to turn the call back over to Richard Johnson for any closing remarks.

All right, everyone. That’s a wrap for today. We’ll talk to you again on our next quarterly call. So until then take care. Bye now.

Ladies and gentlemen, thank you for participating in today’s conference. This does conclude the program and you may all disconnect. Everyone, have a great day.