Statements of Operations-Additional Information

12 Months Ended

Jun. 30, 2024

Statements of Operations-Additional Information

Disaggregated Revenue, Deferred Revenue and Customer Payment Terms

Disaggregated 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. 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	2024		2023		2022
Animal Health
MFAs and other	$	420,959	$	387,349	$	361,538
Nutritional specialties		164,671		172,504		157,196
Vaccines		120,852		99,998		88,321
Total Animal Health	$	706,482	$	659,851	$	607,055
Mineral Nutrition		243,663		242,656		259,512
Performance Products		67,534		75,382		75,694
Total	$	1,017,679	$	977,889	$	942,261

Net Sales by Region

For the Year Ended June 30	2024		2023		2022
United States	$	584,763	$	578,773	$	561,803
Latin America and Canada		247,705		219,846		191,047
Europe, Middle East and Africa		121,977		117,815		122,480
Asia Pacific		63,234		61,455		66,931
Total	$	1,017,679	$	977,889	$	942,261

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

Additional Information

For the Year Ended June 30	2024		2023		2022
Interest expense, net
2021 Credit Facilities	$	20,646	$	17,302	$	11,918
2022 Term loan		862		589		—
Amortization of debt issuance costs		1,040		727		590
Other		462		58		183
Interest expense		23,010		18,676		12,691
Interest income		(4,474)		(3,355)		(816)
	$	18,536	$	15,321	$	11,875

For the Year Ended June 30	2024		2023		2022
Depreciation and amortization
Depreciation of property, plant and equipment	$	26,517	$	24,316	$	23,781
Amortization of intangible assets		9,661		9,696		8,924
	$	36,178	$	34,012	$	32,705

Depreciation of property, plant and equipment includes amortization of capitalized software costs of $1,436, $1,455 and $1,047 during 2024, 2023 and 2022, respectively.

Future amortization of intangible assets as of June 30, 2024 is expected to be:

For the Years Ending June 30
2025	$	7,918
2026		6,969
2027		6,591
2028		6,385
2029		6,385
Thereafter		10,785
Total	$	45,033

For the Year Ended June 30	2024		2023		2022
Research and development expense	$	29,194	$	24,395	$	20,832