Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2021 | Feb. 02, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2021 | |
Entity File Number | 001-36410 | |
Entity Registrant Name | PHIBRO ANIMAL HEALTH CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-1840497 | |
Entity Address, Address Line One | Glenpointe Centre East, 3rd Floor | |
Entity Address, Address Line Two | 300 Frank W. Burr Boulevard, Suite 21 | |
Entity Address, City or Town | Teaneck | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07666-6712 | |
City Area Code | 201 | |
Local Phone Number | 329-7300 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value per share | |
Trading Symbol | PAHC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001069899 | |
Amendment Flag | false | |
Common stock-Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,337,574 | |
Common stock-Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,166,034 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net sales | $ 232,712 | $ 206,149 | $ 447,377 | $ 401,343 |
Cost of goods sold | 162,040 | 137,884 | 312,027 | 268,959 |
Gross profit | 70,672 | 68,265 | 135,350 | 132,384 |
Selling, general and administrative expenses | 48,378 | 48,375 | 98,444 | 96,806 |
Operating income | 22,294 | 19,890 | 36,906 | 35,578 |
Interest expense, net | 2,953 | 3,214 | 5,842 | 6,024 |
Foreign currency (gains) losses, net | (4,189) | 624 | (2,061) | (3,007) |
Income before income taxes | 23,530 | 16,052 | 33,125 | 32,561 |
Provision for income taxes | 6,065 | 3,251 | 9,126 | 7,458 |
Net income | $ 17,465 | $ 12,801 | $ 23,999 | $ 25,103 |
Net income per share | ||||
basic (in dollars per share) | $ 0.43 | $ 0.32 | $ 0.59 | $ 0.62 |
diluted (in dollars per share) | $ 0.43 | $ 0.32 | $ 0.59 | $ 0.62 |
Weighted average common shares outstanding | ||||
basic (in shares) | 40,504 | 40,454 | 40,504 | 40,454 |
diluted (in shares) | 40,504 | 40,504 | 40,504 | 40,504 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 17,465 | $ 12,801 | $ 23,999 | $ 25,103 |
Change in fair value of derivative instruments | 4,810 | 3,729 | 4,781 | 4,818 |
Foreign currency translation adjustment | (10,311) | 9,500 | (17,275) | 4,777 |
Unrecognized net pension gains | 117 | 137 | 234 | 272 |
Provision for income taxes | (1,231) | (966) | (1,253) | (1,272) |
Other comprehensive (loss) income | (6,615) | 12,400 | (13,513) | 8,595 |
Comprehensive income | $ 10,850 | $ 25,201 | $ 10,486 | $ 33,698 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 63,385 | $ 50,212 |
Short-term investments | 32,100 | 43,000 |
Accounts receivable, net | 142,495 | 146,852 |
Inventories, net | 230,784 | 216,312 |
Other current assets | 39,846 | 42,533 |
Total current assets | 508,610 | 498,909 |
Property, plant and equipment, net | 154,584 | 154,706 |
Intangibles, net | 57,971 | 62,282 |
Goodwill | 52,679 | 52,679 |
Other assets | 75,114 | 72,749 |
Total assets | 848,958 | 841,325 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current portion of long-term debt | 13,125 | 9,375 |
Accounts payable | 80,663 | 68,362 |
Accrued expenses and other current liabilities | 72,840 | 86,379 |
Total current liabilities | 166,628 | 164,116 |
Revolving credit facility | 107,000 | 95,000 |
Long-term debt | 280,317 | 287,710 |
Other liabilities | 55,719 | 55,970 |
Total liabilities | 609,664 | 602,796 |
Commitments and contingencies (Note 7) | ||
Common stock, par value $0.0001 per share; 300,000,000 Class A shares authorized, 20,337,574 shares issued and outstanding at December 31, 2021 and June 30, 2021; 30,000,000 Class B shares authorized, 20,166,034 shares issued and outstanding at December 31, 2021 and June 30, 2021 | 4 | 4 |
Preferred stock, par value $0.0001 per share; 16,000,000 shares authorized, no shares issued and outstanding | ||
Paid-in capital | 135,803 | 135,803 |
Retained earnings | 232,293 | 218,015 |
Accumulated other comprehensive loss | (128,806) | (115,293) |
Total stockholders' equity | 239,294 | 238,529 |
Total liabilities and stockholders' equity | $ 848,958 | $ 841,325 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2021 | Jun. 30, 2021 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 16,000,000 | 16,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock-Class A | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 20,337,574 | 20,337,574 |
Common stock, shares outstanding | 20,337,574 | 20,337,574 |
Common stock-Class B | ||
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 20,166,034 | 20,166,034 |
Common stock, shares outstanding | 20,166,034 | 20,166,034 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 23,999 | $ 25,103 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,855 | 16,124 |
Amortization of debt issuance costs | 295 | 441 |
Stock-based compensation | 0 | 1,129 |
Deferred income taxes | (537) | (201) |
Foreign currency (gains) losses, net | (2,890) | (7,174) |
Gain on sale of investment | (1,203) | |
Other | 259 | 258 |
Changes in operating assets and liabilities, net of business acquisitions: | ||
Accounts receivable, net | 1,427 | 2,633 |
Inventories, net | (21,975) | (10,514) |
Other current assets | (561) | (1,327) |
Other assets | (2,578) | 97 |
Accounts payable | 13,859 | (285) |
Accrued expenses and other liabilities | (2,007) | 2,327 |
Net cash provided by operating activities | 23,943 | 28,611 |
INVESTING ACTIVITIES | ||
Purchases of short-term investments | (32,100) | (31,000) |
Maturities of short-term investments | 43,000 | 25,000 |
Capital expenditures | (15,139) | (14,738) |
Cash proceeds from the sale of investment | 1,353 | |
Other, net | (212) | (521) |
Net cash used by investing activities | (3,098) | (21,259) |
FINANCING ACTIVITIES | ||
Revolving credit facility borrowings | 163,000 | 76,000 |
Revolving credit facility repayments | (151,000) | (67,000) |
Payments of long-term debt and other | (3,750) | (9,375) |
Dividends paid | (9,721) | (9,709) |
Payment of contingent consideration | (4,840) | |
Net cash used by financing activities | (6,311) | (10,084) |
Effect of exchange rate changes on cash | (1,361) | 923 |
Net increase (decrease) in cash and cash equivalents | 13,173 | (1,809) |
Cash and cash equivalents at beginning of period | 50,212 | 36,343 |
Cash and cash equivalents at end of period | $ 63,385 | $ 34,534 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Jun. 30, 2020 | $ 4 | $ 135,525 | $ 183,060 | $ (130,385) | $ 188,204 |
Balance (in shares) at Jun. 30, 2020 | 40,453,608 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 12,302 | (3,805) | 8,497 | ||
Dividends declared | (4,854) | (4,854) | |||
Stock-based compensation expense | 565 | 565 | |||
Balance at Sep. 30, 2020 | $ 4 | 136,090 | 190,508 | (134,190) | 192,412 |
Balance (in shares) at Sep. 30, 2020 | 40,453,608 | ||||
Balance at Jun. 30, 2020 | $ 4 | 135,525 | 183,060 | (130,385) | 188,204 |
Balance (in shares) at Jun. 30, 2020 | 40,453,608 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 33,698 | ||||
Balance at Dec. 31, 2020 | $ 4 | 136,654 | 198,454 | (121,790) | 213,322 |
Balance (in shares) at Dec. 31, 2020 | 40,453,608 | ||||
Balance at Sep. 30, 2020 | $ 4 | 136,090 | 190,508 | (134,190) | 192,412 |
Balance (in shares) at Sep. 30, 2020 | 40,453,608 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 12,801 | 12,400 | 25,201 | ||
Dividends declared | (4,855) | (4,855) | |||
Stock-based compensation expense | 564 | 564 | |||
Balance at Dec. 31, 2020 | $ 4 | 136,654 | 198,454 | (121,790) | 213,322 |
Balance (in shares) at Dec. 31, 2020 | 40,453,608 | ||||
Balance at Jun. 30, 2021 | $ 4 | 135,803 | 218,015 | (115,293) | 238,529 |
Balance (in shares) at Jun. 30, 2021 | 40,503,608 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 6,534 | (6,898) | (364) | ||
Dividends declared | (4,860) | (4,860) | |||
Balance at Sep. 30, 2021 | $ 4 | 135,803 | 219,689 | (122,191) | 233,305 |
Balance (in shares) at Sep. 30, 2021 | 40,503,608 | ||||
Balance at Jun. 30, 2021 | $ 4 | 135,803 | 218,015 | (115,293) | 238,529 |
Balance (in shares) at Jun. 30, 2021 | 40,503,608 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 10,486 | ||||
Balance at Dec. 31, 2021 | $ 4 | 135,803 | 232,293 | (128,806) | 239,294 |
Balance (in shares) at Dec. 31, 2021 | 40,503,608 | ||||
Balance at Sep. 30, 2021 | $ 4 | 135,803 | 219,689 | (122,191) | 233,305 |
Balance (in shares) at Sep. 30, 2021 | 40,503,608 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 17,465 | (6,615) | 10,850 | ||
Dividends declared | (4,861) | (4,861) | |||
Balance at Dec. 31, 2021 | $ 4 | $ 135,803 | $ 232,293 | $ (128,806) | $ 239,294 |
Balance (in shares) at Dec. 31, 2021 | 40,503,608 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||||
Dividends declared per share | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 |
Description of Business
Description of Business | 6 Months Ended |
Dec. 31, 2021 | |
Description of Business | |
Description of Business | 1. Description of Business Phibro Animal Health Corporation (“Phibro” or “PAHC”) and its subsidiaries (together, the “Company”) is a diversified global developer, manufacturer and marketer of a broad range of animal health and mineral nutrition products for food animals including poultry, dairy and beef cattle, swine, and aquaculture. The Company is also a manufacturer and marketer of performance products for use in the personal care, industrial chemical and chemical catalyst industries. Unless otherwise indicated or the context requires otherwise, references in this report to “we,” “our,” “us,” and similar expressions refer to Phibro and its subsidiaries. The unaudited consolidated financial information for the three and six months ended December 31, 2021 and 2020, is presented on the same basis as the financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021 (the “Annual Report”), filed with the Securities and Exchange Commission on August 25, 2021 (File no. 001-36410). In the opinion of management, these financial statements include all adjustments necessary for a fair statement of the financial position, results of operations and cash flows of the Company for the interim periods, and the adjustments are of a normal and recurring nature. The financial results for any interim period are not necessarily indicative of the results for the full year. The consolidated balance sheet information as of June 30, 2021, was derived from the audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The unaudited consolidated financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations and financial condition will depend on future developments that are uncertain. Although vaccines are now available, distribution efforts vary widely country-by-country and state-by-state. New information may continue to emerge concerning COVID-19, and the actions required to contain or treat it may affect the duration and severity of the pandemic. The pandemic may have significant economic impacts on customers, suppliers and markets. The pandemic may affect our future revenues, expenses, reserves and allowances, manufacturing operations and employee-related costs. Our financial statements include estimates of the effects of COVID-19 and there may be changes to those estimates in future periods. The consolidated financial statements include the accounts of Phibro and its consolidated subsidiaries. Intercompany balances and transactions have been eliminated from the consolidated financial statements. The decision to consolidate an entity requires consideration of majority voting interests, as well as effective control over the entity. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and New Accounting Standards | 6 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies and New Accounting Standards | |
Summary of Significant Accounting Policies and New Accounting Standards | 2. Summary of Significant Accounting Policies and New Accounting Standards Our significant accounting policies are described in the notes to the consolidated financial statements included in our Annual Report. As of December 31, 2021, there have been no material changes to any of the significant accounting policies contained therein. Net Income per Share and Weighted Average Shares Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period after giving effect to potential dilutive common shares resulting from the assumed vesting of restricted stock units. All common share equivalents were included in the calculation of diluted net income per share in the periods included in the consolidated financial statements. There are no outstanding restricted stock units as of December 31, 2021. Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Net income $ 17,465 $ 12,801 $ 23,999 $ 25,103 Weighted average number of shares – basic 40,504 40,454 40,504 40,454 Dilutive effect of restricted stock units — 50 — 50 Weighted average number of shares – diluted 40,504 40,504 40,504 40,504 Net income per share basic $ 0.43 $ 0.32 $ 0.59 $ 0.62 diluted $ 0.43 $ 0.32 $ 0.59 $ 0.62 New Accounting Standards Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2021-10 Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, ASU 2020-04 and 2021-01, Reference Rate Reform (Topic 848) ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Statements of Operations - Addi
Statements of Operations - Additional Information | 6 Months Ended |
Dec. 31, 2021 | |
Statements of Operations-Additional Information | |
Statements of Operations-Additional Information | 3. Statements of Operations—Additional Information Disaggregated revenue, deferred revenue and customer payment terms We develop, manufacture and market a broad range of products for food animals including poultry, beef and dairy cattle, swine, and aquaculture. The products help prevent, control and treat diseases, enhance nutrition to help improve health and contribute to balanced mineral nutrition. The animal health and mineral nutrition products are sold directly to integrated poultry, cattle, and swine integrators and through commercial animal feed manufacturers, wholesalers and distributors. 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 that are 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 bacterial infections in animals; anticoccidials, which inhibit the growth of coccidia (parasites) that damage the intestinal tract of animals; and other related products. MFAs and other also include other processing aids used to improve production efficiency 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: Our vaccines are primarily focused on preventing diseases in poultry and swine. They protect animals from either viral or bacterial disease challenges. We develop, manufacture and market conventionally licensed and autogenous vaccine products and produce and market adjuvants to 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 beef and dairy cattle, swine and poultry. Performance Products The Performance Products business manufactures and markets specialty ingredients for use in the personal care, industrial chemical and chemical catalyst industries, predominantly in the United States. The following tables present our revenues disaggregated by major product category and geographic region: Net Sales by Product Type Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Animal Health MFAs and other $ 91,724 $ 81,577 $ 175,482 $ 160,280 Nutritional specialties 37,330 36,394 73,327 68,994 Vaccines 21,873 18,267 43,122 35,333 Total Animal Health $ 150,927 $ 136,238 $ 291,931 $ 264,607 Mineral Nutrition 66,655 54,157 121,087 105,597 Performance Products 15,130 15,754 34,359 31,139 Total $ 232,712 $ 206,149 $ 447,377 $ 401,343 Net Sales by Region Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 United States $ 139,145 $ 122,307 $ 265,464 $ 241,077 Latin America and Canada 48,013 40,664 90,674 78,421 Europe, Middle East and Africa 30,029 30,285 60,961 57,157 Asia Pacific 15,525 12,893 30,278 24,688 Total $ 232,712 $ 206,149 $ 447,377 $ 401,343 Net sales by region are based on country of destination. Deferred revenue was $3,024 and $3,674 as of December 31, 2021, and June 30, 2021, respectively. Accrued expenses and other current liabilities included $1,675 and $1,560 of the total deferred revenue as of December 31, 2021, and June 30, 2021, 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. Interest Expense and Depreciation and Amortization Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Interest expense, net Term loan $ 2,264 $ 2,064 $ 4,537 $ 3,939 Revolving credit facility 647 1,133 1,246 2,079 Amortization of debt issuance costs 147 220 295 441 Other 44 59 89 126 Interest expense 3,102 3,476 6,167 6,585 Interest income (149) (262) (325) (561) $ 2,953 $ 3,214 $ 5,842 $ 6,024 Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Depreciation and amortization Depreciation of property, plant and equipment $ 5,864 $ 5,885 $ 11,578 $ 11,716 Amortization of intangible assets 2,137 2,203 4,277 4,408 $ 8,001 $ 8,088 $ 15,855 $ 16,124 |
Balance Sheets - Additional Inf
Balance Sheets - Additional Information | 6 Months Ended |
Dec. 31, 2021 | |
Balance Sheets-Additional Information | |
Balance Sheets-Additional Information | 4. Balance Sheets—Additional Information December 31, June 30, As of 2021 2021 Inventories Raw materials $ 71,286 $ 59,775 Work-in-process 11,886 12,738 Finished goods 147,612 143,799 $ 230,784 $ 216,312 December 31, June 30, As of 2021 2021 Other assets ROU operating lease assets $ 32,253 $ 32,962 Deferred income taxes 8,187 9,861 Deposits 5,235 5,663 Insurance investments 6,054 5,964 Equity method investments 4,717 4,141 Derivative instruments 5,608 2,696 U.S. pension plan 2,048 1,184 Debt issuance costs 1,623 1,811 Other 9,389 8,467 $ 75,114 $ 72,749 December 31, June 30, As of 2021 2021 Accrued expenses and other current liabilities Employee related $ 27,867 $ 35,375 Current operating lease liabilities 6,601 6,618 Commissions and rebates 6,005 6,312 Professional fees 4,637 4,380 Income and other taxes 6,532 6,107 Derivative instruments 1,590 3,486 Contingent consideration — 4,840 Restructuring costs — 735 Insurance-related 1,218 1,176 Other 18,390 17,350 $ 72,840 $ 86,379 December 31, June 30, As of 2021 2021 Other liabilities Long-term operating lease liabilities $ 27,694 $ 28,003 Long-term and deferred income taxes 8,064 6,646 Supplemental retirement benefits, deferred compensation and other 8,631 8,382 International retirement plans 5,427 5,345 Derivative instruments 27 — Other long-term liabilities 5,876 7,594 $ 55,719 $ 55,970 December 31, June 30, As of 2021 2021 Accumulated other comprehensive loss Derivative instruments $ 3,991 $ (790) Foreign currency translation adjustment (117,370) (100,095) Unrecognized net pension losses (19,739) (19,973) (Provision) benefit for income taxes on derivative instruments (1,098) 97 Benefit for incomes taxes on long-term intercompany investments 8,166 8,166 Provision for income taxes on net pension losses (2,756) (2,698) $ (128,806) $ (115,293) |
Debt
Debt | 6 Months Ended |
Dec. 31, 2021 | |
Debt | |
Debt | 5. Debt Term Loans and Revolving Credit Facilities In April 2021, we entered into an amended and restated credit agreement (the “2021 Credit Agreement”) under which we have a term A loan in an aggregate initial principal amount of $300,000 (the “2021 Term A Loan”) and a revolving credit facility under which we can borrow up to an aggregate amount of $250,000, subject to the terms of the 2021 Credit Agreement (the “2021 Revolver” and together with the 2021 Term A Loan, the “2021 Credit Facilities”). The 2021 Term A Loan is repayable in quarterly installments, with the balance payable at maturity. The 2021 Revolver contains a letter of credit facility. The interest rate per annum applicable to the loans under the 2021 Credit Facilities is based on a fluctuating rate of interest plus an applicable rate equal to 2.00%, 1.75% or 1.50%, in the case of LIBOR and Eurodollar The 2021 Credit Agreement requires, among other things, compliance with financial covenants that permit: (i) a maximum First Lien Net Leverage Ratio of 4.00:1.00 and (ii) a minimum interest coverage ratio of 3.00:1.00, each calculated on a trailing four-quarter basis. The 2021 Credit Agreement contains an acceleration clause should an event of default (as defined in the 2021 Credit Agreement) occur. As of December 31, 2021, we were in compliance with the financial covenants. As of December 31, 2021, we had $107,000 in borrowings drawn under the 2021 Revolver and had outstanding letters of credit of $2,709, leaving $140,291 available for further borrowings and letters of credit under the 2021 Revolver, subject to restrictions in our 2021 Credit Facilities. We obtain letters of credit in connection with certain regulatory and insurance obligations, inventory purchases and other contractual obligations. The terms of these letters of credit are all less than one year. In July 2017, we entered into an interest rate swap agreement on $150,000 of notional principal that effectively converts the floating LIBOR portion of our interest obligation on that amount of debt to a fixed interest rate of 1.8325%. The agreement matures in June 2022. We designated the interest rate swap as a highly effective cash flow hedge. For additional details, see “Note 8 — Derivatives.” In March 2020, we entered into an interest rate swap agreement on an additional $150,000 of notional principal that effectively converts the floating LIBOR portion of our interest obligation on that amount of debt to a fixed rate of 0.62%. In July 2022, this agreement increases to a notional principal amount of $300,000 through June 2025, and effectively converts the floating LIBOR portion of our interest obligation on $300,000 of debt to a fixed interest rate of 0.62%. We designated the interest rate swap as a highly effective cash flow hedge. For additional details, see “Note 8 — Derivatives.” The 2017 and 2020 interest rate swap agreements will continue to remain in place on our interest obligations associated with the 2021 Credit Facilities. As of December 31, 2021, the interest rates for the 2021 Revolver and the 2021 Term A Loan were 1.86% and 2.99%, respectively. The weighted-average interest rates for the 2021 Revolver and the prior revolving credit facility were 1.83% and 2.24% for the six months ended December 31, 2021, and 2020, respectively. The weighted-average interest rates for the 2021 Term A Loan and the prior term A loan were 2.98% and 3.33% for six months ended December 31, 2021 and 2020, respectively. Long-Term Debt December 31, June 30, As of 2021 2021 2021 Term A Loan due April 2026 $ 294,375 $ 298,125 Unamortized debt issuance costs (933) (1,040) 293,442 297,085 Less: current maturities (13,125) (9,375) $ 280,317 $ 287,710 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Related Party Transactions | 6. Related Party Transactions Certain relatives of Jack C. Bendheim, our Chairman, President and Chief Executive Officer, provided services to the Company as employees or consultants and received aggregate compensation and benefits of approximately $471 and $394 during the three months ended December 31, 2021 and 2020, respectively, and $1,300 and $925 during the six months ended December 31, 2021 and 2020, respectively. Mr. Bendheim has sole authority to vote shares of our stock owned by BFI Co., LLC, an investment vehicle of the Bendheim family. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 7. Commitments and Contingencies Environmental Our operations and properties are subject to extensive federal, state, local and foreign laws and regulations, including those governing pollution; protection of the environment; the use, management, and release of hazardous materials, substances and wastes; air emissions; greenhouse gas emissions; water use, supply and discharges; the investigation and remediation of contamination; the manufacture, distribution, and sale of regulated materials, including pesticides; the importing, exporting and transportation of products; and the health and safety of our employees (collectively, “Environmental Laws”). As such, the nature of our current and former operations exposes us to the risk of claims with respect to such matters, including fines, penalties, and remediation obligations that may be imposed by regulatory authorities. Under certain circumstances, we might be required to curtail operations until a particular problem is remedied. Known costs and expenses under Environmental Laws incidental to ongoing operations, including the cost of litigation proceedings relating to environmental matters, are included within operating results. Potential costs and expenses may also be incurred in connection with the repair or upgrade of facilities to meet existing or new requirements under Environmental Laws or to investigate or remediate potential or actual contamination, and from time to time we establish reserves for such contemplated investigation and remediation costs. In many instances, the ultimate costs under Environmental Laws and the period during which such costs are likely to be incurred are difficult to predict. While we believe that our operations are currently in material compliance with Environmental Laws, we have, from time to time, received notices of violation from governmental authorities, and have been involved in civil or criminal action for such violations. Additionally, at various sites, our subsidiaries are engaged in continuing investigation, remediation and/or monitoring efforts to address contamination associated with historic operations of the sites. We devote considerable resources to complying with Environmental Laws and managing environmental liabilities. We have developed programs to identify requirements under, and maintain compliance with, Environmental Laws; however, we cannot predict with certainty the effect of increased and more stringent regulation on our operations, future capital expenditure requirements, or the cost of compliance. The nature of our current and former operations exposes us to the risk of claims with respect to environmental matters and we cannot assure we will not incur material costs and liabilities in connection with such claims. Based on our experience, we believe that the future cost of compliance with existing Environmental Laws, and liabilities for known environmental claims pursuant to such Environmental Laws, will not have a material adverse effect on our financial position, results of operations, cash flows or liquidity. The United States Environmental Protection Agency (the “EPA”) is investigating and planning for the remediation of offsite contaminated groundwater that has migrated from the Omega Chemical Corporation Superfund Site (“Omega Chemical Site”), which is upgradient of the Santa Fe Springs, California facility of our subsidiary, Phibro-Tech, Inc. ("Phibro-Tech"). The EPA has entered into a settlement agreement with a group of companies that sent chemicals to the Omega Chemical Site for processing and recycling ("OPOG") to remediate the contaminated groundwater that has migrated from the Omega Chemical Site in accordance with a general remedy selected by EPA. The EPA has named Phibro-Tech and certain other subsidiaries of PAHC as potentially responsible parties (“PRPs”) due to groundwater contamination from Phibro-Tech’s Santa Fe Springs facility that has allegedly commingled with contaminated groundwater from the Omega Chemical Site. In September 2012, the EPA notified approximately 140 PRPs, including Phibro-Tech and the other subsidiaries, that they have been identified as potentially responsible for remedial action for the groundwater plume affected by the Omega Chemical Site and for EPA oversight and response costs. Phibro-Tech contends that any groundwater contamination at its site is localized and due to historical operations that pre-date Phibro-Tech and/or contaminated groundwater that has migrated from upgradient properties. In addition, a successor to a prior owner of the Phibro-Tech site has asserted that PAHC and Phibro-Tech are obligated to provide indemnification for its potential liability and defense costs relating to the groundwater plume affected by the Omega Chemical Site. Phibro-Tech has vigorously contested this position and has asserted that the successor to the prior owner is required to indemnify Phibro-Tech for its potential liability and defense costs. Furthermore, the members of OPOG filed a complaint under the Comprehensive Environmental Response, Compensation, and Liability Act and the Resource Conservation and Recovery Act in the United States District Court for the Central District of California against many of the PRPs allegedly associated with the groundwater plume affected by the Omega Chemical Site (including Phibro-Tech) for contribution toward past and future costs associated with the investigation and remediation of the groundwater plume affected by the Omega Chemical Site. Due to the ongoing nature of the EPA’s investigation, the preliminary stage of the ongoing litigation and Phibro-Tech’s dispute with the prior owner’s successor, at this time we cannot predict with any degree of certainty what, if any, liability Phibro-Tech or the other subsidiaries may ultimately have for investigation, remediation and the EPA oversight and response costs associated with the affected groundwater plume. Based upon information available, to the extent such costs can be estimated with reasonable certainty, we estimated the cost for further investigation and remediation of identified soil and groundwater problems at operating sites, closed sites and third-party sites, and closure costs for closed sites, to be approximately $4,309 and $4,293 at December 31, 2021, and June 30, 2021, respectively, which is included in current and long-term liabilities on the consolidated balance sheets. However, future events, such as new information, changes in existing Environmental Laws or their interpretation, and more vigorous enforcement policies of regulatory agencies, may give rise to additional expenditures or liabilities that could be material. For all purposes of the discussion under this caption and elsewhere in this report, it should be noted that we take and have taken the position that neither PAHC nor any of our subsidiaries are liable for environmental or other claims made against one or more of our other subsidiaries or for which any of such other subsidiaries may ultimately be responsible. Claims and Litigation PAHC and its subsidiaries are party to various claims and lawsuits arising out of the normal course of business including product liabilities, payment disputes and governmental regulation. Certain of these actions seek damages in various amounts. In many cases, such claims are covered by insurance. We believe that none of the claims or pending lawsuits, either individually or in the aggregate, will have a material adverse effect on our financial position, results of operations, cash flows or liquidity. |
Derivatives
Derivatives | 6 Months Ended |
Dec. 31, 2021 | |
Derivatives | |
Derivatives | 8. Derivatives We monitor our exposure to foreign currency exchange rates and interest rates and from time-to-time use derivatives to manage certain of these risks. We designate derivatives as a hedge of a forecasted transaction or of the variability of the cash flows to be received or paid in the future related to a recognized asset or liability (cash flow hedge). All changes in the fair value of a highly effective cash flow hedge are recorded in accumulated other comprehensive income (loss). We routinely assess whether the derivatives used to hedge transactions are effective. If we determine a derivative no longer is an effective hedge, we discontinue hedge accounting in the period of the assessment for that derivative, and immediately recognize any unrealized gains or losses related to the fair value of that derivative in the consolidated statements of operations. We record derivatives at fair value in the consolidated balance sheets. For additional details regarding fair value, see “Note 9 — Fair Value Measurements.” In July 2017, we entered into an interest rate swap agreement on the first $150,000 of notional principal that effectively converts the floating LIBOR portion of our interest obligation on that amount of debt to a fixed interest rate of 1.8325%. The agreement matures in June 2022. In March 2020, we entered into an interest rate swap agreement on an additional $150,000 of notional principal that effectively converts the floating LIBOR portion of our interest obligation on that amount of debt to a fixed rate of 0.62%. Upon the maturity of the July 2017 agreement, the March 2020 agreement increases to a notional principal amount of $300,000 through June 2025, and effectively converts the floating LIBOR portion of our interest obligation on $300,000 of debt to a fixed interest rate of 0.62%. The forecasted transactions are probable of occurring, and the interest rate swaps have been designated as highly effective cash flow hedges. We have entered into foreign currency option contracts to hedge cash flows related to monthly inventory purchases. The individual option contracts mature monthly through August 2023 The consolidated balance sheet includes the net fair values of our outstanding foreign currency option contracts within the respective line items, based on the net financial position and maturity date of the individual contracts. The consolidated balance sheet includes the net fair values of our outstanding interest rate swaps within the respective balance sheet line items, based on the expected timing of the cash flows. The consolidated balance sheet includes assets and liabilities for the fair values of outstanding derivatives that are designated and effective as cash flow hedges as follows: December 31, June 30, As of 2021 2021 Other assets Brazil Real options, net $ — $ 355 Interest rate swaps 5,608 2,341 Accrued expense and other current liabilities Brazil Real options, net (175) (150) Interest rate swaps (1,415) (3,336) Other liabilities Brazil Real options, net (27) — Interest rate swaps — — Total Fair Value Brazil Real options, net (202) 205 Interest rate swaps 4,193 (995) Notional amounts of the derivatives as of the balance sheet date were: December 31, As of 2021 Brazil Real call options R$ 112,000 Brazil Real put options R$ 112,000 Interest rate swaps $ 300,000 The consolidated statements of operations and statements of other comprehensive income (“OCI”) for the periods ended December 31, 2021 and 2020 included the effects of derivatives as follows: Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Brazil Real options, net Expense recorded in consolidated statement of operations $ 99 $ 139 $ 527 $ 136 Consolidated statement of operations - total cost of goods sold $ 162,040 $ 137,884 $ 312,027 $ 268,959 (Income) expense recorded in OCI $ (360) $ (1,955) $ 407 $ (2,331) Interest rate swaps Expense recorded in consolidated statements of operations $ 874 $ 828 $ 1,742 $ 1,642 Consolidated statement of operations - total interest expense, net $ 2,953 $ 3,214 $ 5,842 $ 6,024 Income recorded in OCI $ (4,450) $ (1,774) $ (5,188) $ (2,487) We recognize gains and losses related to foreign currency derivatives as a component of cost of goods sold at the time the hedged item is sold. Inventory as of December 31, 2021, included realized net losses of $1,930 related to matured contracts. We anticipate the net losses included in inventory will be recognized in cost of goods sold within the next eighteen months. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | 9. Fair Value Measurements Short-term investments Our short-term investments consist of cash deposits held at financial institutions. We consider the carrying amounts of these short-term investments to be representative of their fair value. Current Assets and Liabilities We consider the carrying amounts of current assets and current liabilities to be representative of their fair value because of the current nature of these items. Contingent Consideration on Acquisitions We determine the fair value of contingent consideration on acquisitions based on contractual terms, our current forecast of performance factors related to the acquired business and an applicable discount rate. Debt We record debt, including term loans and revolver balances, at amortized cost in our consolidated financial statements. We believe the carrying value of the debt is approximately equal to its fair value, due to the variable nature of the instruments and our evaluation of estimated market prices. Derivatives We determine the fair value of derivative instruments based upon pricing models using observable market inputs for these types of financial instruments, such as spot and forward currency translation rates. Non-financial assets Our non-financial assets, which primarily consist of goodwill, other intangible assets, property and equipment, and lease-related ROU assets, are not required to be measured at fair value on a recurring basis, and instead are reported at carrying value in the consolidated balance sheet. We assess the carrying values of non-financial assets for impairment on a periodic basis or whenever events or changes in circumstances indicate an asset may not be fully recoverable. Fair Value of Assets (Liabilities) As of December 31, 2021 June 30, 2021 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Short-term investments $ 32,100 $ — $ — $ 43,000 $ — $ — Foreign currency derivatives $ — $ (202) $ — $ — $ 205 $ — Interest rate swaps $ — $ 4,193 $ — $ — $ (995) $ — Contingent consideration on acquisitions $ — $ — $ — $ — $ — $ (4,840) There were no transfers between levels during the periods presented. The contingent consideration on acquisitions was the minimum amount payable in accordance with the acquisition agreement for Osprey. The contingent consideration of $4,840 was paid in October 2021. |
Business Segments
Business Segments | 6 Months Ended |
Dec. 31, 2021 | |
Business Segments | |
Business Segments | 10. 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. We evaluate performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as income before income taxes plus (a) interest expense, net, (b) depreciation and amortization, (c) (income) loss from, and disposal of, discontinued operations, and (d) other expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency (gains) losses, net and certain items that we consider to be unusual, non-operational or non-recurring. The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein. Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Net sales Animal Health $ 150,927 $ 136,238 $ 291,931 $ 264,607 Mineral Nutrition 66,655 54,157 121,087 105,597 Performance Products 15,130 15,754 34,359 31,139 Total segments $ 232,712 $ 206,149 $ 447,377 $ 401,343 Depreciation and amortization Animal Health $ 6,517 $ 6,498 $ 12,937 $ 13,019 Mineral Nutrition 660 747 1,299 1,396 Performance Products 437 423 856 868 Total segments $ 7,614 $ 7,668 $ 15,092 $ 15,283 Adjusted EBITDA Animal Health $ 33,696 $ 33,349 $ 61,333 $ 63,450 Mineral Nutrition 5,525 4,185 10,058 7,232 Performance Products 1,324 2,266 3,462 4,238 Total segments $ 40,545 $ 39,800 $ 74,853 $ 74,920 Reconciliation of income before income taxes to Adjusted EBITDA Income before income taxes $ 23,530 $ 16,052 $ 33,125 $ 32,561 Interest expense, net 2,953 3,214 5,842 6,024 Depreciation and amortization – Total segments 7,614 7,668 15,092 15,283 Depreciation and amortization – Corporate 387 420 763 841 Corporate costs 11,453 11,258 23,295 22,089 Gain on sale of investment (1,203) — (1,203) — Stock-based compensation — 564 — 1,129 Foreign currency (gains) losses, net (4,189) 624 (2,061) (3,007) Adjusted EBITDA – Total segments $ 40,545 $ 39,800 $ 74,853 $ 74,920 December 31, June 30, As of 2021 2021 Identifiable assets Animal Health $ 589,809 $ 595,315 Mineral Nutrition 77,122 67,338 Performance Products 38,099 36,847 Total segments 705,030 699,500 Corporate 143,928 141,825 Total $ 848,958 $ 841,325 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and New Accounting Standards (Policies) | 6 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies and New Accounting Standards | |
Net Income per Share and Weighted Average Shares | Net Income per Share and Weighted Average Shares Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period after giving effect to potential dilutive common shares resulting from the assumed vesting of restricted stock units. All common share equivalents were included in the calculation of diluted net income per share in the periods included in the consolidated financial statements. There are no outstanding restricted stock units as of December 31, 2021. Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Net income $ 17,465 $ 12,801 $ 23,999 $ 25,103 Weighted average number of shares – basic 40,504 40,454 40,504 40,454 Dilutive effect of restricted stock units — 50 — 50 Weighted average number of shares – diluted 40,504 40,504 40,504 40,504 Net income per share basic $ 0.43 $ 0.32 $ 0.59 $ 0.62 diluted $ 0.43 $ 0.32 $ 0.59 $ 0.62 |
New Accounting Standards | New Accounting Standards Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2021-10 Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, ASU 2020-04 and 2021-01, Reference Rate Reform (Topic 848) ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and New Accounting Standards (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies and New Accounting Standards | |
Schedule of net income per share and weighted average shares | Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Net income $ 17,465 $ 12,801 $ 23,999 $ 25,103 Weighted average number of shares – basic 40,504 40,454 40,504 40,454 Dilutive effect of restricted stock units — 50 — 50 Weighted average number of shares – diluted 40,504 40,504 40,504 40,504 Net income per share basic $ 0.43 $ 0.32 $ 0.59 $ 0.62 diluted $ 0.43 $ 0.32 $ 0.59 $ 0.62 |
Statements of Operations - Ad_2
Statements of Operations - Additional Information (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Statements of Operations-Additional Information | |
Schedule of revenues disaggregated by major product category and geographic region | Net Sales by Product Type Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Animal Health MFAs and other $ 91,724 $ 81,577 $ 175,482 $ 160,280 Nutritional specialties 37,330 36,394 73,327 68,994 Vaccines 21,873 18,267 43,122 35,333 Total Animal Health $ 150,927 $ 136,238 $ 291,931 $ 264,607 Mineral Nutrition 66,655 54,157 121,087 105,597 Performance Products 15,130 15,754 34,359 31,139 Total $ 232,712 $ 206,149 $ 447,377 $ 401,343 Net Sales by Region Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 United States $ 139,145 $ 122,307 $ 265,464 $ 241,077 Latin America and Canada 48,013 40,664 90,674 78,421 Europe, Middle East and Africa 30,029 30,285 60,961 57,157 Asia Pacific 15,525 12,893 30,278 24,688 Total $ 232,712 $ 206,149 $ 447,377 $ 401,343 |
Schedule of additional information of statements of operations | Interest Expense and Depreciation and Amortization Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Interest expense, net Term loan $ 2,264 $ 2,064 $ 4,537 $ 3,939 Revolving credit facility 647 1,133 1,246 2,079 Amortization of debt issuance costs 147 220 295 441 Other 44 59 89 126 Interest expense 3,102 3,476 6,167 6,585 Interest income (149) (262) (325) (561) $ 2,953 $ 3,214 $ 5,842 $ 6,024 Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Depreciation and amortization Depreciation of property, plant and equipment $ 5,864 $ 5,885 $ 11,578 $ 11,716 Amortization of intangible assets 2,137 2,203 4,277 4,408 $ 8,001 $ 8,088 $ 15,855 $ 16,124 |
Balance Sheets - Additional I_2
Balance Sheets - Additional Information (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Balance Sheets-Additional Information | |
Schedule of additional information of balance sheets | December 31, June 30, As of 2021 2021 Inventories Raw materials $ 71,286 $ 59,775 Work-in-process 11,886 12,738 Finished goods 147,612 143,799 $ 230,784 $ 216,312 December 31, June 30, As of 2021 2021 Other assets ROU operating lease assets $ 32,253 $ 32,962 Deferred income taxes 8,187 9,861 Deposits 5,235 5,663 Insurance investments 6,054 5,964 Equity method investments 4,717 4,141 Derivative instruments 5,608 2,696 U.S. pension plan 2,048 1,184 Debt issuance costs 1,623 1,811 Other 9,389 8,467 $ 75,114 $ 72,749 December 31, June 30, As of 2021 2021 Accrued expenses and other current liabilities Employee related $ 27,867 $ 35,375 Current operating lease liabilities 6,601 6,618 Commissions and rebates 6,005 6,312 Professional fees 4,637 4,380 Income and other taxes 6,532 6,107 Derivative instruments 1,590 3,486 Contingent consideration — 4,840 Restructuring costs — 735 Insurance-related 1,218 1,176 Other 18,390 17,350 $ 72,840 $ 86,379 December 31, June 30, As of 2021 2021 Other liabilities Long-term operating lease liabilities $ 27,694 $ 28,003 Long-term and deferred income taxes 8,064 6,646 Supplemental retirement benefits, deferred compensation and other 8,631 8,382 International retirement plans 5,427 5,345 Derivative instruments 27 — Other long-term liabilities 5,876 7,594 $ 55,719 $ 55,970 December 31, June 30, As of 2021 2021 Accumulated other comprehensive loss Derivative instruments $ 3,991 $ (790) Foreign currency translation adjustment (117,370) (100,095) Unrecognized net pension losses (19,739) (19,973) (Provision) benefit for income taxes on derivative instruments (1,098) 97 Benefit for incomes taxes on long-term intercompany investments 8,166 8,166 Provision for income taxes on net pension losses (2,756) (2,698) $ (128,806) $ (115,293) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Debt | |
Schedule of long term debt | December 31, June 30, As of 2021 2021 2021 Term A Loan due April 2026 $ 294,375 $ 298,125 Unamortized debt issuance costs (933) (1,040) 293,442 297,085 Less: current maturities (13,125) (9,375) $ 280,317 $ 287,710 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Derivatives | |
Schedule of significant outstanding derivatives employed to manage market risk and designated as cash flow hedges | December 31, June 30, As of 2021 2021 Other assets Brazil Real options, net $ — $ 355 Interest rate swaps 5,608 2,341 Accrued expense and other current liabilities Brazil Real options, net (175) (150) Interest rate swaps (1,415) (3,336) Other liabilities Brazil Real options, net (27) — Interest rate swaps — — Total Fair Value Brazil Real options, net (202) 205 Interest rate swaps 4,193 (995) Notional amounts of the derivatives as of the balance sheet date were: December 31, As of 2021 Brazil Real call options R$ 112,000 Brazil Real put options R$ 112,000 Interest rate swaps $ 300,000 The consolidated statements of operations and statements of other comprehensive income (“OCI”) for the periods ended December 31, 2021 and 2020 included the effects of derivatives as follows: Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Brazil Real options, net Expense recorded in consolidated statement of operations $ 99 $ 139 $ 527 $ 136 Consolidated statement of operations - total cost of goods sold $ 162,040 $ 137,884 $ 312,027 $ 268,959 (Income) expense recorded in OCI $ (360) $ (1,955) $ 407 $ (2,331) Interest rate swaps Expense recorded in consolidated statements of operations $ 874 $ 828 $ 1,742 $ 1,642 Consolidated statement of operations - total interest expense, net $ 2,953 $ 3,214 $ 5,842 $ 6,024 Income recorded in OCI $ (4,450) $ (1,774) $ (5,188) $ (2,487) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
Schedule of fair value of derivative instruments based upon pricing models | As of December 31, 2021 June 30, 2021 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Short-term investments $ 32,100 $ — $ — $ 43,000 $ — $ — Foreign currency derivatives $ — $ (202) $ — $ — $ 205 $ — Interest rate swaps $ — $ 4,193 $ — $ — $ (995) $ — Contingent consideration on acquisitions $ — $ — $ — $ — $ — $ (4,840) |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Business Segments | |
Schedule of information regarding reportable segments | Three Months Six Months For the Periods Ended December 31 2021 2020 2021 2020 Net sales Animal Health $ 150,927 $ 136,238 $ 291,931 $ 264,607 Mineral Nutrition 66,655 54,157 121,087 105,597 Performance Products 15,130 15,754 34,359 31,139 Total segments $ 232,712 $ 206,149 $ 447,377 $ 401,343 Depreciation and amortization Animal Health $ 6,517 $ 6,498 $ 12,937 $ 13,019 Mineral Nutrition 660 747 1,299 1,396 Performance Products 437 423 856 868 Total segments $ 7,614 $ 7,668 $ 15,092 $ 15,283 Adjusted EBITDA Animal Health $ 33,696 $ 33,349 $ 61,333 $ 63,450 Mineral Nutrition 5,525 4,185 10,058 7,232 Performance Products 1,324 2,266 3,462 4,238 Total segments $ 40,545 $ 39,800 $ 74,853 $ 74,920 Reconciliation of income before income taxes to Adjusted EBITDA Income before income taxes $ 23,530 $ 16,052 $ 33,125 $ 32,561 Interest expense, net 2,953 3,214 5,842 6,024 Depreciation and amortization – Total segments 7,614 7,668 15,092 15,283 Depreciation and amortization – Corporate 387 420 763 841 Corporate costs 11,453 11,258 23,295 22,089 Gain on sale of investment (1,203) — (1,203) — Stock-based compensation — 564 — 1,129 Foreign currency (gains) losses, net (4,189) 624 (2,061) (3,007) Adjusted EBITDA – Total segments $ 40,545 $ 39,800 $ 74,853 $ 74,920 December 31, June 30, As of 2021 2021 Identifiable assets Animal Health $ 589,809 $ 595,315 Mineral Nutrition 77,122 67,338 Performance Products 38,099 36,847 Total segments 705,030 699,500 Corporate 143,928 141,825 Total $ 848,958 $ 841,325 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and New Accounting Standards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies and New Accounting Standards | ||||
Net income | $ 17,465 | $ 12,801 | $ 23,999 | $ 25,103 |
Weighted average number of shares - basic (in shares) | 40,504 | 40,454 | 40,504 | 40,454 |
Dilutive effect of restricted stock units | 50 | 50 | ||
Weighted average number of shares - diluted (in shares) | 40,504 | 40,504 | 40,504 | 40,504 |
Net income per share | ||||
basic (in dollars per share) | $ 0.43 | $ 0.32 | $ 0.59 | $ 0.62 |
diluted (in dollars per share) | $ 0.43 | $ 0.32 | $ 0.59 | $ 0.62 |
Statements of Operations - Disa
Statements of Operations - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statements Of Operations Additional Information [Line Items] | ||||
Revenue from Contract with Customer product and service | $ 232,712 | $ 206,149 | $ 447,377 | $ 401,343 |
United States | ||||
Statements Of Operations Additional Information [Line Items] | ||||
Revenue from Contract with Customer product and service | 139,145 | 122,307 | 265,464 | 241,077 |
Latin America and Canada | ||||
Statements Of Operations Additional Information [Line Items] | ||||
Revenue from Contract with Customer product and service | 48,013 | 40,664 | 90,674 | 78,421 |
Europe, Middle East and Africa | ||||
Statements Of Operations Additional Information [Line Items] | ||||
Revenue from Contract with Customer product and service | 30,029 | 30,285 | 60,961 | 57,157 |
Asia Pacific | ||||
Statements Of Operations Additional Information [Line Items] | ||||
Revenue from Contract with Customer product and service | 15,525 | 12,893 | 30,278 | 24,688 |
Animal Health | ||||
Statements Of Operations Additional Information [Line Items] | ||||
Revenue from Contract with Customer product and service | 150,927 | 136,238 | 291,931 | 264,607 |
Animal Health | MFAs and other | Revenue from Contract with Customer, Segment Benchmark | ||||
Statements Of Operations Additional Information [Line Items] | ||||
Revenue from Contract with Customer product and service | 91,724 | 81,577 | 175,482 | 160,280 |
Animal Health | Nutritional specialties | Revenue from Contract with Customer, Segment Benchmark | ||||
Statements Of Operations Additional Information [Line Items] | ||||
Revenue from Contract with Customer product and service | 37,330 | 36,394 | 73,327 | 68,994 |
Animal Health | Vaccines | Revenue from Contract with Customer, Segment Benchmark | ||||
Statements Of Operations Additional Information [Line Items] | ||||
Revenue from Contract with Customer product and service | 21,873 | 18,267 | 43,122 | 35,333 |
Mineral Nutrition | Revenue from Contract with Customer, Segment Benchmark | ||||
Statements Of Operations Additional Information [Line Items] | ||||
Revenue from Contract with Customer product and service | 66,655 | 54,157 | 121,087 | 105,597 |
Performance Products | Revenue from Contract with Customer, Segment Benchmark | ||||
Statements Of Operations Additional Information [Line Items] | ||||
Revenue from Contract with Customer product and service | $ 15,130 | $ 15,754 | $ 34,359 | $ 31,139 |
Statements of Operations - Inte
Statements of Operations - Interest Expense and Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest expense, net | ||||
Amortization of debt issuance costs | $ 147 | $ 220 | $ 295 | $ 441 |
Other | 44 | 59 | 89 | 126 |
Interest expense | 3,102 | 3,476 | 6,167 | 6,585 |
Interest income | (149) | (262) | (325) | (561) |
Interest expense, net | 2,953 | 3,214 | 5,842 | 6,024 |
Depreciation and amortization | ||||
Depreciation of property, plant and equipment | 5,864 | 5,885 | 11,578 | 11,716 |
Amortization of intangible assets | 2,137 | 2,203 | 4,277 | 4,408 |
Depreciation and amortization | 8,001 | 8,088 | 15,855 | 16,124 |
Term loan | ||||
Interest expense, net | ||||
Interest expense | 2,264 | 2,064 | 4,537 | 3,939 |
Revolving credit facility (the "Revolver") | ||||
Interest expense, net | ||||
Interest expense | $ 647 | $ 1,133 | $ 1,246 | $ 2,079 |
Statements of Operations - Ad_3
Statements of Operations - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | |
Statements Of Operations Additional Information [Line Items] | ||
Deferred revenue | $ 3,024 | $ 3,674 |
Current deferred revenue, included in accrued expense and other current liabilities | $ 1,675 | $ 1,560 |
Customer | ||
Statements Of Operations Additional Information [Line Items] | ||
Revenue performance obligation description of payment terms | P60D | |
Customer | Maximum | ||
Statements Of Operations Additional Information [Line Items] | ||
Revenue performance obligation description of payment terms | P120D | |
Customer | Minimum | ||
Statements Of Operations Additional Information [Line Items] | ||
Revenue performance obligation description of payment terms | 30 |
Balance Sheets - Additional I_3
Balance Sheets - Additional Information - Schedule of inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Inventories | ||
Raw materials | $ 71,286 | $ 59,775 |
Work-in-process | 11,886 | 12,738 |
Finished goods | 147,612 | 143,799 |
Inventory, net | $ 230,784 | $ 216,312 |
Balance Sheets - Additional I_4
Balance Sheets - Additional Information - Other balance sheet items (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Other assets | ||
ROU operating lease assets | $ 32,253 | $ 32,962 |
Deferred income taxes | 8,187 | 9,861 |
Deposits | 5,235 | 5,663 |
Insurance investments | 6,054 | 5,964 |
Equity method investments | 4,717 | 4,141 |
Derivative instruments | 5,608 | 2,696 |
U.S. pension plan | 2,048 | 1,184 |
Debt issuance costs | 1,623 | 1,811 |
Other | 9,389 | 8,467 |
Other assets, total | 75,114 | 72,749 |
Accrued expenses and other current liabilities | ||
Employee related | 27,867 | 35,375 |
Current operating lease liabilities | 6,601 | 6,618 |
Commissions and rebates | 6,005 | 6,312 |
Professional fees | 4,637 | 4,380 |
Income and other taxes | 6,532 | 6,107 |
Derivative instruments | 1,590 | 3,486 |
Contingent consideration | 0 | 4,840 |
Restructuring costs | 0 | 735 |
Insurance-related | 1,218 | 1,176 |
Other | 18,390 | 17,350 |
Accrued expenses and other current liabilities, total | 72,840 | 86,379 |
Other liabilities | ||
Long-term operating lease liabilities | 27,694 | 28,003 |
Long-term and deferred income taxes | 8,064 | 6,646 |
Supplemental retirement benefits, deferred compensation and other | 8,631 | 8,382 |
International retirement plans | 5,427 | 5,345 |
Derivative instruments | 27 | |
Other long-term liabilities | 5,876 | 7,594 |
Other liabilities, total | 55,719 | 55,970 |
Accumulated other comprehensive loss | ||
Derivative instruments | 3,991 | (790) |
Foreign currency translation adjustment | (117,370) | (100,095) |
Unrecognized net pension losses | (19,739) | (19,973) |
(Provision) benefit for income taxes on derivative instruments | (1,098) | 97 |
Benefit for incomes taxes on long-term intercompany investments | 8,166 | 8,166 |
Provision for income taxes on net pension losses | (2,756) | (2,698) |
Accumulated other comprehensive loss | $ (128,806) | $ (115,293) |
Debt - Summary of long-term deb
Debt - Summary of long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Debt | ||
2021 Term A Loan due April 2026 | $ 294,375 | $ 298,125 |
Unamortized debt issuance costs | (933) | (1,040) |
Long-term debt after debt issuance costs | 293,442 | 297,085 |
Less: current maturities | (13,125) | (9,375) |
Long-term debt | $ 280,317 | $ 287,710 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||||
Dec. 31, 2021 | Jul. 31, 2022 | Jun. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Jul. 31, 2017 | |
Debt Instrument [Line Items] | |||||||
Revolving credit facility | $ 107,000 | $ 95,000 | |||||
Derivative, Notional Amount | $ 300,000 | ||||||
Credit Agreement | Revolving credit facility (the "Revolver") | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit facility | 107,000 | ||||||
Outstanding letters of credit | 2,709 | ||||||
2021 Credit Agreement | Revolving credit facility (the "Revolver") | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 250,000 | ||||||
Revolving credit facility | 107,000 | ||||||
Outstanding letters of credit | 2,709 | ||||||
Remaining borrowing capacity | $ 140,291 | ||||||
Weighted-average interest rates | 1.83% | 2.24% | |||||
Percentage of interest rate | 1.86% | ||||||
2021 Credit Agreement | Term A Loans And Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maturity dates | April 2026 | ||||||
Covenant requirement, permitted leverage ratio | a maximum First Lien Net Leverage Ratio of 4.00:1.00 and (ii) a minimum interest coverage ratio of 3.00:1.00, each calculated on a trailing four-quarter basis | ||||||
Debt instrument, covenant compliance | we were in compliance with the financial covenants | ||||||
2021 Credit Agreement | Term A Loans And Revolving Credit Facility | one-month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, description | 2.00%, 1.75% or 1.50% | ||||||
2021 Credit Agreement | Term A Loans And Revolving Credit Facility | Eurodollar | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, description | 2.00%, 1.75% or 1.50% | ||||||
2021 Credit Agreement | Term A Loans And Revolving Credit Facility | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, description | 1.00%, 0.75% or 0.50% | ||||||
2021 Credit Agreement | Term A Loan | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 300,000 | ||||||
Weighted-average interest rates | 2.98% | 3.33% | |||||
Percentage of interest rate | 2.99% | ||||||
July 2017 Agreement | Interest Rate Swap | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of interest rate | 1.8325% | ||||||
Derivative, Notional Amount | $ 150,000 | $ 150,000 | |||||
March 2020 Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Notional Amount | $ 300,000 | ||||||
March 2020 Agreement | Interest Rate Swap | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of interest rate | 0.62% | ||||||
Derivative, Notional Amount | $ 150,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Certain relatives of Jack C. Bendheim | Compensation and benefit for services provided | ||||
Related Party Transaction [Line Items] | ||||
Aggregate compensation and benefits | $ 471 | $ 394 | $ 1,300 | $ 925 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021USD ($)item | Jun. 30, 2021USD ($) | |
Commitments And Contingencies [Line Items] | ||
Number of potentially responsible parties | item | 140 | |
Current And Long Term Liabilities | ||
Commitments And Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ | $ 4,309 | $ 4,293 |
Derivatives - Company's Outstan
Derivatives - Company's Outstanding Derivatives (Details) - Cash Flow Hedging R$ in Thousands, $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2021BRL (R$) | Jun. 30, 2021USD ($) |
Foreign Exchange Option | Brazilian Real calls | |||
Derivative [Line Items] | |||
Notional amount | R$ | R$ 112000 | ||
Asset | $ 205 | ||
Liability | $ (202) | ||
Foreign Exchange Option | Brazilian Real calls | Other assets | |||
Derivative [Line Items] | |||
Asset | 355 | ||
Foreign Exchange Option | Brazilian Real calls | Accrued expenses and other current liabilities | |||
Derivative [Line Items] | |||
Liability | (175) | (150) | |
Foreign Exchange Option | Brazilian Real calls | Other liabilities | |||
Derivative [Line Items] | |||
Liability | (27) | ||
Foreign Exchange Option | Brazilian Real puts | |||
Derivative [Line Items] | |||
Notional amount | R$ | R$ 112000 | ||
Swap | Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | 300,000 | ||
Liability | 4,193 | (995) | |
Swap | Interest Rate Swap | Other assets | |||
Derivative [Line Items] | |||
Asset | 5,608 | 2,341 | |
Swap | Interest Rate Swap | Accrued expenses and other current liabilities | |||
Derivative [Line Items] | |||
Liability | $ (1,415) | $ (3,336) |
Derivatives - Effects of Deriva
Derivatives - Effects of Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||||
Consolidated statement of operations - total cost of goods sold | $ 162,040 | $ 137,884 | $ 312,027 | $ 268,959 |
Consolidated statement of operations - total interest expense, net | 2,953 | 3,214 | 5,842 | 6,024 |
Foreign Exchange Option | Cash Flow Hedging | Brazilian Real calls | ||||
Derivative [Line Items] | ||||
(Income) expense recorded in consolidated statement of operations | 99 | 139 | 527 | 136 |
Foreign Exchange Option | Cash Flow Hedging | Brazilian Real calls | Cost of Sales | ||||
Derivative [Line Items] | ||||
Consolidated statement of operations - total cost of goods sold | 162,040 | 137,884 | 312,027 | 268,959 |
Foreign Exchange Option | Cash Flow Hedging | Brazilian Real calls | Other Comprehensive Income (Loss) | ||||
Derivative [Line Items] | ||||
(Income) expense recorded in OCI | (360) | (1,955) | 407 | (2,331) |
Swap | Interest Rate Swap | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
(Income) expense recorded in consolidated statement of operations | 874 | 828 | 1,742 | 1,642 |
Swap | Interest Rate Swap | Cash Flow Hedging | Interest expense, net | ||||
Derivative [Line Items] | ||||
Consolidated statement of operations - total interest expense, net | 2,953 | 3,214 | 5,842 | 6,024 |
Swap | Interest Rate Swap | Cash Flow Hedging | Other Comprehensive Income (Loss) | ||||
Derivative [Line Items] | ||||
(Income) expense recorded in OCI | $ (4,450) | $ (1,774) | $ (5,188) | $ (2,487) |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 31, 2021 | Jul. 31, 2022 | Mar. 31, 2020 | Jul. 31, 2017 | |
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 300,000 | |||
Maximum maturity period for Foreign Currency Derivatives | Feb. 28, 2023 | |||
Cost of Sales | ||||
Derivative [Line Items] | ||||
Realized gains related to matured contracts recorded as a component of inventory | $ 1,930 | |||
March 2020 Agreement | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 300,000 | |||
March 2020 Agreement | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 150,000 | |||
Percentage of interest rate | 0.62% | |||
July 2017 Agreement | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 150,000 | $ 150,000 | ||
Percentage of interest rate | 1.8325% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | Oct. 31, 2021 | |
Fair Value of Assets (Liabilities) | |||
Contingent consideration on acquisitions | $ (4,840) | ||
Level 1 | |||
Fair Value of Assets (Liabilities) | |||
Short-term investments | $ 32,100 | $ 43,000 | |
Foreign currency derivatives | 0 | 0 | |
Interest rate swaps | 0 | 0 | |
Contingent consideration on acquisitions | 0 | 0 | |
Level 2 | |||
Fair Value of Assets (Liabilities) | |||
Short-term investments | 0 | 0 | |
Foreign currency derivatives | (202) | 205 | |
Interest rate swaps | 4,193 | (995) | |
Contingent consideration on acquisitions | 0 | 0 | |
Level 3 | |||
Fair Value of Assets (Liabilities) | |||
Short-term investments | 0 | 0 | |
Foreign currency derivatives | 0 | 0 | |
Interest rate swaps | 0 | 0 | |
Contingent consideration on acquisitions | $ 0 | $ (4,840) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | Oct. 31, 2021 | |
Fair Value Measurements | |||
Fair value assets, transfer from level 1 to level 2 | $ 0 | $ 0 | |
Fair value assets, transfer from level 2 to level 1 | 0 | 0 | |
Fair value liabilities, transfer from level 1 to level 2 | 0 | 0 | |
Fair value liabilities, transfer from level 2 to level 1 | 0 | 0 | |
Fair value assets, transfer to and from level 3 | 0 | 0 | |
Fair value liabilities, transfer to and from level 3 | $ 0 | $ 0 | |
Contingent consideration | $ 4,840 |
Business Segments - Segments in
Business Segments - Segments in Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Segment Reporting Information | |||||
Depreciation and amortization | $ 8,001 | $ 8,088 | $ 15,855 | $ 16,124 | |
Reconciliation of income before income taxes to Adjusted EBITDA | |||||
Interest expense, net | 2,953 | 3,214 | 5,842 | 6,024 | |
Depreciation and amortization | 8,001 | 8,088 | 15,855 | 16,124 | |
Gain on sale of investment | (1,203) | 0 | (1,203) | ||
Stock-based compensation | 564 | 0 | 1,129 | ||
Foreign currency (gains) losses, net | (4,189) | 624 | (2,061) | (3,007) | |
Identifiable assets | 848,958 | 848,958 | $ 841,325 | ||
Operating Segments | |||||
Segment Reporting Information | |||||
Net sales | 232,712 | 206,149 | 447,377 | 401,343 | |
Depreciation and amortization | 7,614 | 7,668 | 15,092 | 15,283 | |
Adjusted EBITDA | 40,545 | 39,800 | 74,853 | 74,920 | |
Reconciliation of income before income taxes to Adjusted EBITDA | |||||
Income before income taxes | 23,530 | 16,052 | 33,125 | 32,561 | |
Interest expense, net | 2,953 | 3,214 | 5,842 | 6,024 | |
Depreciation and amortization | 7,614 | 7,668 | 15,092 | 15,283 | |
Corporate costs | 11,453 | 11,258 | 23,295 | 22,089 | |
Foreign currency (gains) losses, net | (4,189) | 624 | (2,061) | (3,007) | |
Adjusted EBITDA - Total segments | 40,545 | 39,800 | 74,853 | 74,920 | |
Identifiable assets | 705,030 | 705,030 | 699,500 | ||
Operating Segments | Animal Health | |||||
Segment Reporting Information | |||||
Net sales | 150,927 | 136,238 | 291,931 | 264,607 | |
Depreciation and amortization | 6,517 | 6,498 | 12,937 | 13,019 | |
Adjusted EBITDA | 33,696 | 33,349 | 61,333 | 63,450 | |
Reconciliation of income before income taxes to Adjusted EBITDA | |||||
Depreciation and amortization | 6,517 | 6,498 | 12,937 | 13,019 | |
Adjusted EBITDA - Total segments | 33,696 | 33,349 | 61,333 | 63,450 | |
Identifiable assets | 589,809 | 589,809 | 595,315 | ||
Operating Segments | Mineral Nutrition | |||||
Segment Reporting Information | |||||
Net sales | 66,655 | 54,157 | 121,087 | 105,597 | |
Depreciation and amortization | 660 | 747 | 1,299 | 1,396 | |
Adjusted EBITDA | 5,525 | 4,185 | 10,058 | 7,232 | |
Reconciliation of income before income taxes to Adjusted EBITDA | |||||
Depreciation and amortization | 660 | 747 | 1,299 | 1,396 | |
Adjusted EBITDA - Total segments | 5,525 | 4,185 | 10,058 | 7,232 | |
Identifiable assets | 77,122 | 77,122 | 67,338 | ||
Operating Segments | Performance Products | |||||
Segment Reporting Information | |||||
Net sales | 15,130 | 15,754 | 34,359 | 31,139 | |
Depreciation and amortization | 437 | 423 | 856 | 868 | |
Adjusted EBITDA | 1,324 | 2,266 | 3,462 | 4,238 | |
Reconciliation of income before income taxes to Adjusted EBITDA | |||||
Depreciation and amortization | 437 | 423 | 856 | 868 | |
Adjusted EBITDA - Total segments | 1,324 | 2,266 | 3,462 | 4,238 | |
Identifiable assets | 38,099 | 38,099 | 36,847 | ||
Corporate | |||||
Segment Reporting Information | |||||
Depreciation and amortization | 387 | 420 | 763 | 841 | |
Reconciliation of income before income taxes to Adjusted EBITDA | |||||
Depreciation and amortization | 387 | $ 420 | 763 | $ 841 | |
Identifiable assets | $ 143,928 | $ 143,928 | $ 141,825 |