Statements of Operations-Additional Information

6 Months Ended

Dec. 31, 2018

Statements Of Operations Additional Information [Abstract]

Statements of Operations-Additional Information

3.      Statements of Operations—Additional Information

Disaggregated revenue, deferred revenue and customer payment terms

We develop, manufacture and market products for a broad range of food animals including poultry, swine, beef and dairy cattle and aquaculture. The products help prevent, control and treat diseases, enhance nutrition to help improve health and contribute to balanced mineral nutrition. The animal health and mineral nutrition products are sold either directly to integrated poultry, swine and cattle integrators or through commercial animal feed manufacturers, wholesalers and distributors. The animal health industry and demand for many of the animal health products in a particular region are affected by changing disease pressures and by weather conditions, as product usage follows varying weather patterns and seasons. Our operations are primarily focused in regions where the majority of livestock production is consolidated in large commercial farms.

We have a diversified portfolio of products that are classified within our three business segments—Animal Health, Mineral Nutrition and Performance Products. Each segment has its own dedicated management and sales team.

Animal Health

The Animal Health business develops, manufactures and markets products in three main categories:

•      MFAs and Other:   The MFAs and other business primarily consists of concentrated medicated products that are administered through animal feeds, commonly referred to as Medicated Feed Additives (“MFAs”). Specific product classifications include antibacterials, which inhibit the growth of pathogenic bacteria that cause bacterial infections in animals; anticoccidials, which inhibit the growth of coccidia (parasites) that damage the intestinal tract of animals; and other related products.

•      Nutritional Specialties:   Nutritional specialty products enhance nutrition to help improve health and performance in areas such as immune system function and digestive health.

•      Vaccines:   Our vaccines are primarily focused on preventing diseases in poultry and swine. They protect animals from either viral or bacterial disease challenges. We also manufacture and distribute autogenous vaccine products and market adjuvants to vaccine manufacturers. We have developed an innovative and proprietary delivery platform for vaccines.

Mineral Nutrition

The Mineral Nutrition business is comprised of formulations and concentrations of trace minerals such as zinc, manganese, copper, iron and other compounds, with a focus on customers in North America. The customers use these products to fortify the daily feed requirements of their livestock’s diets and maintain an optimal balance of trace elements in each animal. Mineral nutrition products are manufactured and marketed for a broad range of food animals including poultry, swine and beef and dairy cattle.

Performance Products

The Performance Products business manufactures and markets a number of specialty ingredients for use in the personal care, industrial chemical and chemical catalyst industries, predominantly in the United States.

The following tables present our revenues disaggregated by major product category and geographic region:

Net Sales by Product Type

	Three Months						Six Months
For the Periods Ended December 31	2018			2017			2018			2017
Animal Health
MFAs and other		$	93,054		$	82,018		$	180,058		$	161,621
Nutritional specialties			29,460			32,623			56,430			63,400
Vaccines			17,048			18,204			34,263			36,665
Total Animal Health		$	139,562		$	132,845		$	270,751		$	261,686
Mineral Nutrition			62,319			59,616			117,157			111,689
Performance Products			16,342			13,415			30,468			25,913
Total		$	218,223		$	205,876		$	418,376		$	399,288

Net Sales by Region

	Three Months						Six Months
For the Periods Ended December 31	2018			2017			2018			2017
United States		$	127,750		$	129,379		$	243,842		$	242,548
Latin America and Canada			39,316			36,126			77,575			68,452
Europe, Middle East and Africa			26,181			27,672			51,040			53,054
Asia Pacific			24,976			12,699			45,919			35,234
Total		$	218,223		$	205,876		$	418,376		$	399,288

Net sales by region are based on country of destination.

Total deferred revenue was $6,416 and $4,530 as of December 31, 2018 and June 30, 2018, respectively. Accrued expenses and other current liabilities included $1,471 and $508 of the total deferred revenue as of December 31, 2018 and June 30, 2018, respectively. The deferred revenue resulted primarily from certain customer arrangements, including technology licensing fees and discounts on future product sales. The transaction price associated with our deferred revenue arrangements is generally based on the stand alone sales prices of the individual products or services.

Our customer payment terms generally range from 30 to 120 days globally and do not include any significant financing components. Payment terms vary based on industry and business practices within the regions in which we operate. Our average worldwide collection period for accounts receivable is approximately 60 days after the revenue is recognized.

Interest expense and Depreciation and amortization

	Three Months						Six Months
For the Periods Ended December 31	2018			2017			2018			2017
Interest expense, net
Term loan		$	2,202		$	2,110		$	4,314		$	4,143
Revolving credit facility			920			739			1,667			1,420
Amortization of debt issuance costs and debt discount			220			220			441			441
Acquisition-related accrued interest			—			252			—			505
Other			120			2			283			241
Interest expense			3,462			3,323			6,705			6,750
Interest (income)			(447)			(273)			(907)			(582)
		$	3,015		$	3,050		$	5,798		$	6,168
Depreciation and amortization
Depreciation of property, plant and equipment		$	5,308		$	5,222		$	10,496		$	10,405
Amortization of intangible assets			1,521			1,397			3,012			2,846
Amortization of other assets			12			12			24			24
		$	6,841		$	6,631		$	13,532		$	13,275