Business Segments

6 Months Ended

Dec. 31, 2023

Business Segments

Business Segments

11.  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 costs include certain costs related to executive management, business technology, legal, finance, human resources and business development. The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein.

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, (d) other expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency (gains) losses, net and (e) certain items that we consider to be unusual, non-operational or non-recurring.

	Three Months				Six Months
For the Periods Ended December 31	2023		2022		2023		2022
Net sales
Animal Health	$	173,104	$	163,803	$	333,634	$	318,662
Mineral Nutrition		61,347		61,644		117,373		121,290
Performance Products		15,492		19,199		30,285		37,215
Total segments	$	249,943	$	244,646	$	481,292	$	477,167
Depreciation and amortization
Animal Health	$	7,348	$	6,934	$	14,697	$	13,845
Mineral Nutrition		660		659		1,306		1,314
Performance Products		433		453		859		895
Total segments	$	8,441	$	8,046	$	16,862	$	16,054
Adjusted EBITDA
Animal Health	$	39,299	$	37,059	$	67,793	$	64,023
Mineral Nutrition		3,507		4,399		6,388		9,696
Performance Products		817		2,292		2,226		4,656
Total segments	$	43,623	$	43,750	$	76,407	$	78,375
Reconciliation of income (loss) before income taxes to Adjusted EBITDA
Income (loss) before income taxes	$	3,565	$	12,109	$	(8,414)	$	17,526
Interest expense, net		4,659		3,884		9,223		6,951
Depreciation and amortization – Total segments		8,441		8,046		16,862		16,054
Depreciation and amortization – Corporate		469		453		919		895
Corporate costs		14,171		12,838		28,304		25,329
Acquisition-related cost of goods sold		310		—		310		—
Pension settlement cost		249		—		10,674		—
Brazil employment taxes		4,202		—		4,202		—
Stock-based compensation		80		—		161		—
Environmental remediation costs		—		6,569		—		6,569
Foreign currency losses (gains), net		7,477		(149)		14,166		5,051
Adjusted EBITDA – Total segments	$	43,623	$	43,750	$	76,407	$	78,375

	December 31,		June 30,
As of	2023		2023
Identifiable assets
Animal Health	$	694,383	$	698,522
Mineral Nutrition		71,755		75,814
Performance Products		48,879		49,678
Total segments		815,017		824,014
Corporate		157,691		147,383
Total	$	972,708	$	971,397

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.