Business Segments

6 Months Ended

Dec. 31, 2022

Business Segments

Business Segments

10.  Business Segments

We evaluate performance and allocate resources, based on the Animal Health, Mineral Nutrition and Performance Products segments. Certain of our costs and assets are not directly attributable to these segments and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the segments because they are not used to evaluate the segments’ operating results or financial position. Corporate includes certain costs related to executive management, business technology, legal, finance, human resources and business development.

We evaluate performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as income before income taxes plus (a) interest expense, net, (b) depreciation and amortization, (c) (income) loss from, and disposal of, discontinued operations, and (d) other expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency (gains) losses, net and certain items that we consider to be unusual, non-operational or non-recurring.

The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein.

	Three Months				Six Months
For the Periods Ended December 31	2022		2021		2022		2021
Net sales
Animal Health	$	163,803	$	150,927	$	318,662	$	291,931
Mineral Nutrition		61,644		66,655		121,290		121,087
Performance Products		19,199		15,130		37,215		34,359
Total segments	$	244,646	$	232,712	$	477,167	$	447,377
Depreciation and amortization
Animal Health	$	6,934	$	6,517	$	13,845	$	12,937
Mineral Nutrition		659		660		1,314		1,299
Performance Products		453		437		895		856
Total segments	$	8,046	$	7,614	$	16,054	$	15,092
Adjusted EBITDA
Animal Health	$	37,059	$	33,696	$	64,023	$	61,333
Mineral Nutrition		4,399		5,525		9,696		10,058
Performance Products		2,292		1,324		4,656		3,462
Total segments	$	43,750	$	40,545	$	78,375	$	74,853
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	$	12,109	$	23,530	$	17,526	$	33,125
Interest expense, net		3,884		2,953		6,951		5,842
Depreciation and amortization – Total segments		8,046		7,614		16,054		15,092
Depreciation and amortization – Corporate		453		387		895		763
Corporate costs		12,838		11,453		25,329		23,295
Environmental remediation costs		6,569		—		6,569		—
Gain on sale of investment		—		(1,203)		—		(1,203)
Foreign currency (gains) losses, net		(149)		(4,189)		5,051		(2,061)
Adjusted EBITDA – Total segments	$	43,750	$	40,545	$	78,375	$	74,853

	December 31,		June 30,
As of	2022		2022
Identifiable assets
Animal Health	$	670,336	$	654,862
Mineral Nutrition		95,190		87,379
Performance Products		51,097		39,490
Total segments		816,623		781,731
Corporate		145,210		149,968
Total	$	961,833	$	931,699

The Animal Health segment includes all goodwill of the Company. Corporate assets include cash and cash equivalents, short-term investments, debt issuance costs, income tax-related assets and certain other assets.