Business Segments

9 Months Ended

Mar. 31, 2024

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 net income plus (a) interest expense, net, (b) provision for income taxes or less benefit for income taxes, (c) depreciation and amortization, (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				Nine Months
For the Periods Ended March 31	2024		2023		2024		2023
Net sales
Animal Health	$	181,333	$	164,434	$	514,967	$	483,096
Mineral Nutrition		64,228		62,922		181,601		184,212
Performance Products		17,662		18,317		47,947		55,532
Total segments	$	263,223	$	245,673	$	744,515	$	722,840
Depreciation and amortization
Animal Health	$	7,695	$	6,888	$	22,392	$	20,733
Mineral Nutrition		601		671		1,907		1,985
Performance Products		432		453		1,291		1,348
Total segments	$	8,728	$	8,012	$	25,590	$	24,066
Adjusted EBITDA
Animal Health	$	36,524	$	34,217	$	104,317	$	98,240
Mineral Nutrition		4,665		3,859		11,053		13,555
Performance Products		2,371		2,413		4,597		7,069
Total segments	$	43,560	$	40,489	$	119,967	$	118,864
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	$	12,922	$	15,104	$	4,508	$	32,630
Interest expense, net		4,575		3,871		13,798		10,822
Depreciation and amortization – Total segments		8,728		8,012		25,590		24,066
Depreciation and amortization – Corporate		468		477		1,387		1,372
Corporate costs		13,856		13,122		42,160		38,451
Acquisition-related cost of goods sold		211		—		521		—
Acquisition-related other		512		—		512		—
Pension settlement cost		—		—		10,674		—
Brazil employment taxes		—		—		4,202		—
Insurance proceeds		(274)		—		(274)		—
Stock-based compensation		135		—		296		—
Environmental remediation costs		—		325		—		6,894
Foreign currency losses (gains), net		2,427		(422)		16,593		4,629
Adjusted EBITDA – Total segments	$	43,560	$	40,489	$	119,967	$	118,864

	March 31,		June 30,
As of	2024		2023
Identifiable assets
Animal Health	$	701,252	$	698,522
Mineral Nutrition		69,846		75,814
Performance Products		49,275		49,678
Total segments		820,373		824,014
Corporate		158,662		147,383
Total	$	979,035	$	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.