Statements of Operations-Additional Information

9 Months Ended

Mar. 31, 2025

Statements of Operations-Additional Information

Disaggregated Revenue, Deferred Revenue and Customer Payment Terms

Disaggregated revenue, deferred revenue and customer payment terms

We develop, manufacture and market a broad range of products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture, and dogs. The products help prevent, control and treat diseases and enhance nutrition to help improve animal health and well-being. We sell animal health and mineral nutrition products directly to integrated poultry, cattle and swine customers and through commercial animal feed manufacturers, distributors and veterinarians. 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 on 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 reportable 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: MFAs and other products primarily consist of concentrated medicated products 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 infections in animals; anticoccidials, which inhibit the growth of coccidia (parasites) that damage the intestinal tract of animals; and other related products. The MFAs and other category also includes antibacterials and other processing aids used in the ethanol fermentation industry.

● Nutritional specialties: Nutritional specialty products enhance nutrition to help improve health and performance in areas such as immune system function and digestive health. We are also a developer, manufacturer and marketer of microbial products and bioproducts for a variety of applications serving animal health and nutrition, environmental, industrial and agricultural customers.

● Vaccines: Vaccine products are primarily focused on preventing diseases in poultry, swine, beef and dairy cattle and aquaculture. They protect animals from either viral or bacterial disease challenges. We develop, manufacture and market conventionally licensed and autogenous vaccine products, as well as adjuvants for animal vaccine manufacturers.

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. Our 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. We manufacture and market a broad range of mineral nutrition products for food animals including poultry, swine, and beef and dairy cattle.

Performance Products

The Performance Products business manufactures and markets specialty ingredients for use in the personal care, industrial chemical and chemical catalyst industries.

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

Net Sales by Product Type

	Three Months				Nine Months
For the Periods Ended March 31	2025		2024		2025		2024
Animal Health
MFAs and other	$	181,645	$	108,216	$	439,827	$	304,261
Nutritional specialties		43,350		40,194		131,908		121,840
Vaccines		33,382		32,923		98,583		88,866
Total Animal Health	$	258,377	$	181,333	$	670,318	$	514,967
Mineral Nutrition		66,774		64,228		189,086		181,601
Performance Products		22,674		17,662		58,114		47,947
Total	$	347,825	$	263,223	$	917,518	$	744,515

Net Sales by Region

	Three Months				Nine Months
For the Periods Ended March 31	2025		2024		2025		2024
United States	$	209,940	$	159,314	$	537,930	$	431,083
Latin America and Canada		70,753		53,653		214,578		177,539
Europe, Middle East and Africa		38,910		33,175		102,624		89,572
Asia Pacific		28,222		17,081		62,386		46,321
Total	$	347,825	$	263,223	$	917,518	$	744,515

Net sales by region are based on country of destination.

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.

Additional Information

Interest Expense, Net

	Three Months				Nine Months
For the Periods Ended March 31	2025		2024		2025		2024
Interest expense, net
Credit Facilities	$	9,029	$	5,127	$	24,393	$	15,421
2022 Term Loan		—		215		12		648
Amortization of debt issuance costs		572		260		1,443		780
Refinancing expense		—		—		1,960		—
Other		52		43		388		164
Interest expense		9,653		5,645		28,196		17,013
Interest income		(298)		(1,070)		(2,204)		(3,215)
	$	9,355	$	4,575	$	25,992	$	13,798

For the nine months ended March 31, 2025, refinancing expense included $1,446 of new creditor and third-party financing costs and $514 in debt extinguishment costs resulting from the write-off of unamortized deferred financing costs on previously outstanding debt.

Depreciation and Amortization

	Three Months				Nine Months
For the Periods Ended March 31	2025		2024		2025		2024
Depreciation and amortization
Depreciation of property, plant and equipment	$	10,897	$	6,770	$	27,048	$	19,638
Amortization of intangible assets		1,719		2,426		6,146		7,339
	$	12,616	$	9,196	$	33,194	$	26,977

Pension Settlement

In July 2023, we entered into an annuity purchase agreement to irrevocably transfer a portion of our pension benefit obligation to a third-party insurance company. The annuity purchase price was $26,381 and was approximately equal to the benefit obligation transferred. The annuity purchase was funded from pension assets. During the nine months ended March 31, 2024, we recognized a partial settlement of the pension plan and recorded $10,674, respectively in selling, general and administrative expenses in our consolidated statement of operations, resulting from the recognition of net pension losses previously included in Accumulated other comprehensive loss.