Statements of Operations-Additional Information

12 Months Ended

Jun. 30, 2023

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 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. We have developed and market an innovative and proprietary delivery platform for vaccines.

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

For the Year Ended June 30	2023		2022		2021
Animal Health
MFAs and other	$	387,349	$	361,538	$	330,017
Nutritional specialties		172,504		157,196		142,760
Vaccines		99,998		88,321		72,939
Total Animal Health	$	659,851	$	607,055	$	545,716
Mineral Nutrition		242,656		259,512		220,560
Performance Products		75,382		75,694		67,074
Total	$	977,889	$	942,261	$	833,350

Net Sales by Region

For the Year Ended June 30	2023		2022		2021
United States	$	578,773	$	561,803	$	494,889
Latin America and Canada		219,846		191,047		166,325
Europe, Middle East and Africa		117,815		122,480		114,131
Asia Pacific		61,455		66,931		58,005
Total	$	977,889	$	942,261	$	833,350

Net sales by region are based on country of destination.

Deferred revenue was $1,256 and $2,051 as of June 30, 2023 and 2022, respectively. Accrued expenses and other current liabilities included $370 and $822 of the total deferred revenue as of June 30, 2023 and 2022, respectively. The deferred revenue resulted primarily from certain customer arrangements, including technology licensing fees and discounts on future product sales. The transaction price associated with our deferred revenue arrangements is generally based on the stand-alone sales prices of the individual products or services.

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

Additional Information

For the Year Ended June 30	2023		2022		2021
Interest expense, net
2021 Term A loan	$	6,243	$	8,962	$	7,951
Revolving credit facility		10,905		2,956		3,649
2023 Incremental Term Loan		154		—		—
2022 Term loan		589		—		—
Amortization of debt issuance costs		727		590		833
Refinancing expense		—		—		1,020
Other		58		183		265
Interest expense		18,676		12,691		13,718
Interest income		(3,355)		(816)		(838)
	$	15,321	$	11,875	$	12,880

For the Year Ended June 30	2023		2022		2021
Depreciation and amortization
Depreciation of property, plant and equipment	$	24,316	$	23,781	$	23,165
Amortization of intangible assets		9,696		8,924		8,715
Amortization of other assets		—		—		5
	$	34,012	$	32,705	$	31,885

Depreciation of property, plant and equipment includes amortization of capitalized software costs of $1,455, $1,047 and $1,254 during 2023, 2022 and 2021, respectively.

Future amortization of intangible assets as of June 30, 2023, is expected to be:

For the Year Ending June 30
2024	$	9,375
2025		7,769
2026		6,805
2027		6,556
2028		6,531
Thereafter		17,951
Total	$	54,987

For the Year Ended June 30	2023		2022		2021
Research and development expense	$	24,395	$	20,832	$	17,759