Business Segments

9 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business Segments

14.   Business Segments

The Animal Health segment manufactures and markets products for the poultry, swine, cattle, dairy, aquaculture and ethanol markets. The business includes net sales of medicated feed additives and other related products, nutritional specialty products and vaccines. The Mineral Nutrition segment manufactures and markets trace minerals for the cattle, swine, poultry and pet food markets. The Performance Products segment manufactures and markets a variety of products for use in the personal care, automotive, industrial chemical and chemical catalyst industries.

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. We do not allocate such items to the principal segments because they are not used to evaluate their operating results or financial position. Corporate costs include the departmental operating costs of the Board of Directors, the Chairman, President and Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, the Senior Vice President and General Counsel, the Senior Vice President of Human Resources, the Chief Information Officer and the Executive Vice President of Corporate Strategy. Costs include the executives and their staffs and include compensation and benefits, outside services, professional fees and office space. Assets include cash and cash equivalents, debt issue costs and certain other assets.

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

The accounting policies of our segments are the same as those described in the summary of significant accounting policies included in the “—Summary of Significant Accounting Policies and New Accounting Standards.”

​	Three Months						Nine Months
For the Periods Ended March 31	2015			2014			2015			2014
Net sales	​			​			​			​
Animal Health	​	$	117,346	​	$	107,808	​	$	353,356	​	$	316,945
Mineral Nutrition	​	​	57,320	​	​	49,901	​	​	171,509	​	​	146,720
Performance Products	​	​	12,829	​	​	15,558	​	​	38,776	​	​	44,572
​	​	$	187,495	​	$	173,267	​	$	563,641	​	$	508,237
Adjusted EBITDA	​			​			​			​
Animal Health	​	$	29,629	​	$	25,505	​	$	90,379	​	$	74,134
Mineral Nutrition	​	​	3,761	​	​	2,807	​	​	10,994	​	​	8,145
Performance Products	​	​	994	​	​	906	​	​	2,192	​	​	3,105
Corporate	​	​	(6,888)	​	​	(6,774)	​	​	(20,583)	​	​	(19,032)
​	​	$	27,496	​	$	22,444	​	$	82,982	​	$	66,352

​

Three Months

Nine Months

For the Periods Ended March 31

2015

2014

2015

2014

Reconciliation of Adjusted EBITDA to income before income taxes

​

​

​

​

Adjusted EBITDA

​

$

27,496

​

$

22,444

​

$

82,982

​

$

66,352

Depreciation and amortization

​

​

(5,356)

​

​

(5,122)

​

​

(15,950)

​

​

(15,615)

Interest expense, net

​

​

(3,602)

​

​

(8,744)

​

​

(10,607)

​

​

(26,198)

Foreign currency gains (losses), net

​

​

4,633

​

​

(275)

​

​

6,855

​

​

(2,088)

Acquisition related accrued compensation

​

​

(327)

​

​

—

​

​

(327)

​

​

—

Income before income taxes

​

$

22,844

​

$

8,303

​

$

62,953

​

$

22,451

As of	March 31, 2015			June 30, 2014
Identifiable assets	​			​
Animal Health	​	$	351,881	​	$	361,376
Mineral Nutrition	​	​	58,887	​	​	57,460
Performance Products	​	​	21,827	​	​	23,429
Corporate	​	​	39,743	​	​	30,058
​	​	$	472,338	​	$	472,323

All goodwill is included in the Animal Health segment. The Animal Health segment includes advances to and investment in equity method investee of  $4,364 and $5,140 as of March 31, 2015, and June 30, 2014, respectively. The Performance Products segment includes an investment in equity method investee of  $451 and $479 as of March 31, 2015, and June 30, 2014, respectively. Corporate includes all cash and cash equivalents.