Business Segments

9 Months Ended

Mar. 31, 2023

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 calculate 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				Nine Months
For the Periods Ended March 31	2023		2022		2023		2022
Net sales
Animal Health	$	164,434	$	148,589	$	483,096	$	440,520
Mineral Nutrition		62,922		69,033		184,212		190,120
Performance Products		18,317		21,997		55,532		56,356
Total segments	$	245,673	$	239,619	$	722,840	$	686,996
Depreciation and amortization
Animal Health	$	6,888	$	6,935	$	20,733	$	19,872
Mineral Nutrition		671		661		1,985		1,960
Performance Products		453		436		1,348		1,292
Total segments	$	8,012	$	8,032	$	24,066	$	23,124
Adjusted EBITDA
Animal Health	$	34,217	$	29,232	$	98,240	$	90,565
Mineral Nutrition		3,859		7,303		13,555		17,361
Performance Products		2,413		2,865		7,069		6,327
Total segments	$	40,489	$	39,400	$	118,864	$	114,253
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	$	15,104	$	26,833	$	32,630	$	59,958
Interest expense, net		3,871		2,925		10,822		8,767
Depreciation and amortization – Total segments		8,012		8,032		24,066		23,124
Depreciation and amortization – Corporate		477		413		1,372		1,176
Corporate costs		13,122		11,404		38,451		34,699
Environmental remediation costs		325		—		6,894		—
Gain on sale of investment		—		—		—		(1,203)
Acquisition-related cost of goods sold		—		78		—		78
Acquisition-related transaction costs		—		279		—		279
Foreign currency (gains) losses, net		(422)		(10,564)		4,629		(12,625)
Adjusted EBITDA – Total segments	$	40,489	$	39,400	$	118,864	$	114,253

	March 31,		June 30,
As of	2023		2022
Identifiable assets
Animal Health	$	686,510	$	654,862
Mineral Nutrition		91,205		87,379
Performance Products		47,522		39,490
Total segments		825,237		781,731
Corporate		140,195		149,968
Total	$	965,432	$	931,699

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