| Delaware | | | 13-1840497 | |
| (State or other jurisdiction of incorporation or organization) | | | (I.R.S. Employer Identification No.) | |
| Glenpointe Centre East, 3rd Floor 300 Frank W. Burr Boulevard, Suite 21 Teaneck, New Jersey (Address of Principal Executive Offices) | | | 07666-6712 (Zip Code) | |
| Title of each class | | | Trading Symbol(s) | | | Name of each exchange on which registered | |
| Class A Common Stock, $0.0001 par value per share | | | PAHC | | | Nasdaq Stock Market | |
| Large accelerated filer | | | ☐ | | | Accelerated filer | | | ☒ | | ||
| Non-accelerated filer | | | ☐ | | | Smaller reporting company | | | ☐ | | ||
| Emerging growth company | | | ☐ | | | | | |
| | | Page | | |||
PART I—FINANCIAL INFORMATION | | | | | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 4 | | | |
| | | | 5 | | | |
| | | | 6 | | | |
| | | | 7 | | | |
| | | | 8 | | | |
| | | | 22 | | | |
| | | | | | ||
| | | | | | ||
PART II—OTHER INFORMATION | | | | | | | |
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | |
| | Three Months | | | Three Months | | Six Months | | ||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||||||
For the Periods Ended December 31 | | 2019 | | 2018 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||
| | (unaudited) (in thousands, except per share amounts) | | | (unaudited) (in thousands, except per share amounts) | | ||||||||||||||||||||||||||||||||
Net sales | | | $ | 189,720 | | | | $ | 200,153 | | | | | $ | 214,012 | | | | $ | 218,223 | | | | $ | 403,732 | | | | $ | 418,376 | | | ||||||
Cost of goods sold | | | | 132,057 | | | | | 134,348 | | | | | | 144,908 | | | | | 149,579 | | | | | 276,965 | | | | | 283,927 | | | ||||||
Gross profit | | | | 57,663 | | | | | 65,805 | | | | | | 69,104 | | | | | 68,644 | | | | | 126,767 | | | | | 134,449 | | | ||||||
Selling, general and administrative expenses | | | | 47,516 | | | | | 42,952 | | | | | | 49,495 | | | | | 42,938 | | | | | 97,011 | | | | | 85,890 | | | ||||||
Operating income | | | | 10,147 | | | | | 22,853 | | | | | | 19,609 | | | | | 25,706 | | | | | 29,756 | | | | | 48,559 | | | ||||||
Interest expense, net | | | | 3,354 | | | | | 2,783 | | | | | | 3,432 | | | | | 3,015 | | | | | 6,786 | | | | | 5,798 | | | ||||||
Foreign currency (gains) losses, net | | | | 3,221 | | | | | (2,635) | | | | | | (718) | | | | | 2,617 | | | | | 2,503 | | | | | (18) | | | ||||||
Income before income taxes | | | | 3,572 | | | | | 22,705 | | | | | | 16,895 | | | | | 20,074 | | | | | 20,467 | | | | | 42,779 | | | ||||||
Provision for income taxes | | | | 1,057 | | | | | 6,391 | | | | | | 5,001 | | | | | 5,326 | | | | | 6,058 | | | | | 11,717 | | | ||||||
Net income | | | $ | 2,515 | | | | $ | 16,314 | | | | | $ | 11,894 | | | | $ | 14,748 | | | | $ | 14,409 | | | | $ | 31,062 | | | ||||||
Net income per share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Basic | | | $ | 0.06 | | | | $ | 0.40 | | | |||||||||||||||||||||||||||
Diluted | | | $ | 0.06 | | | | $ | 0.40 | | | |||||||||||||||||||||||||||
basic | | | $ | 0.29 | | | | $ | 0.37 | | | | $ | 0.36 | | | | $ | 0.77 | | | |||||||||||||||||
diluted | | | $ | 0.29 | | | | $ | 0.36 | | | | $ | 0.36 | | | | $ | 0.77 | | | |||||||||||||||||
Weighted average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Basic | | | | 40,454 | | | | | 40,369 | | | |||||||||||||||||||||||||||
Diluted | | | | 40,504 | | | | | 40,560 | | | |||||||||||||||||||||||||||
basic | | | | 40,454 | | | | | 40,383 | | | | | 40,454 | | | | | 40,376 | | | |||||||||||||||||
diluted | | | | 40,504 | | | | | 40,523 | | | | | 40,504 | | | | | 40,523 | | |
| | Three Months | | | Three Months | | Six Months | | ||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||||||
For the Periods Ended December 31 | | 2019 | | 2018 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||
| | (unaudited) (in thousands) | | | (unaudited) (in thousands) | | ||||||||||||||||||||||||||||||||
Net income | | | $ | 2,515 | | | | $ | 16,314 | | | | | $ | 11,894 | | | | $ | 14,748 | | | | $ | 14,409 | | | | $ | 31,062 | | | ||||||
Change in fair value of derivative instruments | | | | (1,084) | | | | | 541 | | | | | | 1,080 | | | | | (2,243) | | | | | (4) | | | | | (1,702) | | | ||||||
Foreign currency translation adjustment | | | | (6,823) | | | | | (7,682) | | | | | | 2,203 | | | | | 4,163 | | | | | (4,620) | | �� | | | | (3,519) | | | |||||
Unrecognized net pension gains (losses) | | | | 120 | | | | | 108 | | | | | | 138 | | | | | 124 | | | | | 258 | | | | | 232 | | | ||||||
(Provision) benefit for income taxes | | | | 240 | | | | | (162) | | | | | | (303) | | | | | 527 | | | | | (63) | | | | | 365 | | | ||||||
Other comprehensive income (loss) | | | | (7,547) | | | | | (7,195) | | | | | | 3,118 | | | | | 2,571 | | | | | (4,429) | | | | | (4,624) | | | ||||||
Comprehensive income (loss) | | | $ | (5,032) | | | | $ | 9,119 | | | | | $ | 15,012 | | | | $ | 17,319 | | | | $ | 9,980 | | | | $ | 26,438 | | |
As of | | September 30, 2019 | | June 30, 2019 | | | December 31, 2019 | | June 30, 2019 | | ||||||||||||||||
| | (unaudited) (in thousands, except share and per share amounts) | | | (unaudited) (in thousands, except share and per share amounts) | | ||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | ||||
Cash and cash equivalents | | | $ | 54,893 | | | | $ | 57,573 | | | | | $ | 26,180 | | | | $ | 57,573 | | | ||||
Short-term investments | | | | 24,000 | | | | | 24,000 | | | | | | 49,000 | | | | | 24,000 | | | ||||
Accounts receivable, net | | | | 145,444 | | | | | 159,022 | | | | | | 147,441 | | | | | 159,022 | | | ||||
Inventories, net | | | | 203,873 | | | | | 198,322 | | | | | | 193,509 | | | | | 198,322 | | | ||||
Other current assets | | | | 27,302 | | | | | 27,245 | | | | | | 29,357 | | | | | 27,245 | | | ||||
Total current assets | | | | 455,512 | | | | | 466,162 | | | | | | 445,487 | | | | | 466,162 | | | ||||
Property, plant and equipment, net | | | | 142,164 | | | | | 140,235 | | | | | | 144,733 | | | | | 140,235 | | | ||||
Intangibles, net | | | | 77,536 | | | | | 47,478 | | | | | | 75,541 | | | | | 47,478 | | | ||||
Goodwill | | | | 52,990 | | | | | 27,348 | | | | | | 52,679 | | | | | 27,348 | | | ||||
Other assets | | | | 67,037 | | | | | 45,448 | | | | | | 69,878 | | | | | 45,448 | | | ||||
Total assets | | | $ | 795,239 | | | | $ | 726,671 | | | | | $ | 788,318 | | | | $ | 726,671 | | | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | ||||
Current portion of long-term debt | | | $ | 14,084 | | | | $ | 12,540 | | | | | $ | 15,625 | | | | $ | 12,540 | | | ||||
Accounts payable | | | | 61,372 | | | | | 73,189 | | | | | | 58,263 | | | | | 73,189 | | | ||||
Accrued expenses and other current liabilities | | | | 66,517 | | | | | 68,498 | | | | | | 73,171 | | | | | 68,498 | | | ||||
Total current liabilities | | | | 141,973 | | | | | 154,227 | | | | | | 147,059 | | | | | 154,227 | | | ||||
Revolving credit facility | | | | 168,000 | | | | | 96,000 | | | | | | 149,000 | | | | | 96,000 | | | ||||
Long-term debt | | | | 213,040 | | | | | 217,635 | | | | | | 208,446 | | | | | 217,635 | | | ||||
Other liabilities | | | | 65,532 | | | | | 42,794 | | | | | | 66,398 | | | | | 42,794 | | | ||||
Total liabilities | | | | 588,545 | | | | | 510,656 | | | | | | 570,903 | | | | | 510,656 | | | ||||
Commitments and contingencies (Note 9) | | | | | | | | | | | | | | | | | | | | | | | ||||
Common stock, par value $0.0001 per share; 300,000,000 Class A shares authorized, 20,287,574 shares issued and outstanding at September 30, 2019 and June 30, 2019; 30,000,000 Class B shares authorized, 20,166,034 shares issued and outstanding at September 30, 2019 and June 30, 2019 and 2018 | | | | 4 | | | | | 4 | | | |||||||||||||||
Common stock, par value $0.0001 per share; 300,000,000 Class A shares authorized, 20,287,574 shares issued and outstanding at December 31, 2019 and June 30, 2019; 30,000,000 Class B shares authorized, 20,166,034 shares issued and outstanding at December 31, 2019 and June 30, 2019 | | | | 4 | | | | | 4 | | | |||||||||||||||
Preferred stock, par value $0.0001 per share; 16,000,000 shares authorized, no shares issued and outstanding | | | | — | | | | | — | | | | | | — | | | | | — | | | ||||
Paid-in capital | | | | 133,831 | | | | | 133,266 | | | | | | 134,395 | | | | | 133,266 | | | ||||
Retained earnings | | | | 166,587 | | | | | 168,926 | | | | | | 173,626 | | | | | 168,926 | | | ||||
Accumulated other comprehensive income (loss) | | | | (93,728) | | | | | (86,181) | | | | | | (90,610) | | | | | (86,181) | | | ||||
Total stockholders’ equity | | | | 206,694 | | | | | 216,015 | | | | | | 217,415 | | | | | 216,015 | | | ||||
Total liabilities and stockholders’ equity | | | $ | 795,239 | | | | $ | 726,671 | | | | | $ | 788,318 | | | | $ | 726,671 | | | |
| | Three Months | | | Six Months | | ||||||||||||||||||||
For the Periods Ended September 30 | | 2019 | | 2018 | | |||||||||||||||||||||
For the Periods Ended December 31 | | 2019 | | 2018 | | |||||||||||||||||||||
| | (unaudited) (in thousands) | | | (unaudited) (in thousands) | | ||||||||||||||||||||
OPERATING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | ||||
Net income | | | $ | 2,515 | | | | $ | 16,314 | | | | | $ | 14,409 | | | | $ | 31,062 | | | ||||
Adjustments to reconcile net income to net cash provided (used) by operating activities: | | | | | | | | | | | | | | | | | | | | | | | ||||
Depreciation and amortization | | | | 7,781 | | | | | 6,691 | | | | | | 15,929 | | | | | 13,532 | | | ||||
Amortization of debt issuance costs and debt discount | | | | 221 | | | | | 221 | | | | | | 442 | | | | | 441 | | | ||||
Stock-based compensation | | | | 565 | | | | | 565 | | | | | | 1,129 | | | | | 1,129 | | | ||||
Acquisition-related cost of goods sold | | | | 280 | | | | | — | | | |||||||||||||||
Acquisition-related costs of goods sold | | | | 280 | | | | | — | | | |||||||||||||||
Acquisition-related accrued interest | | | | 53 | | | | | — | | | | | | 132 | | | | | — | | | ||||
Deferred income taxes | | | | (652) | | | | | (473) | | | | | | (565) | | | | | 135 | | | ||||
Foreign currency (gains) losses, net | | | | 1,660 | | | | | (2,981) | | | | | | (132) | | | | | 12 | | | ||||
Other | | | | 116 | | | | | 266 | | | | | | 374 | | | | | (1,071) | | | ||||
Changes in operating assets and liabilities, net of business acquisitions: | | | | | | | | | | | | | | | | | | | | | | | ||||
Accounts receivable, net | | | | 14,065 | | | | | (85) | | | | | | 12,906 | | | | | (8,906) | | | ||||
Inventories, net | | | | (9,086) | | | | | (9,504) | | | | | | 3,412 | | | | | (16,278) | | | ||||
Other current assets | | | | (813) | | | | | (3,654) | | | | | | (2,300) | | | | | (3,616) | | | ||||
Other assets | | | | (1,071) | | | | | 371 | | | | | | (1,395) | | | | | 866 | | | ||||
Accounts payable | | | | (11,834) | | | | | 2,794 | | | | | | (14,108) | | | | | 5,169 | | | ||||
Accrued expenses and other liabilities | | | | (7,370) | | | | | (9,245) | | | | | | (1,992) | | | | | (5,839) | | | ||||
Net cash provided (used) by operating activities | | | | (3,570) | | | | | 1,280 | | | |||||||||||||||
Net cash (used) provided by operating activities | | | | 28,521 | | | | | 16,636 | | | |||||||||||||||
INVESTING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | ||||
Purchases of short-term investments | | | | (25,000) | | | | | (10,000) | | | |||||||||||||||
Maturities of short-term investments | | | | — | | | | | 11,000 | | | |||||||||||||||
Capital expenditures | | | | (7,675) | | | | | (6,049) | | | | | | (16,115) | | | | | (12,117) | | | ||||
Business acquisitions | | | | (54,560) | | | | | (9,838) | | | | | | (54,549) | | | | | (9,838) | | | ||||
Other, net | | | | (296) | | | | | (262) | | | | | | (1,045) | | | | | 27 | | | ||||
Net cash provided (used) by investing activities | | | | (62,531) | | | | | (16,149) | | | |||||||||||||||
Net cash (used) by investing activities | | | | (96,709) | | | | | (20,928) | | | |||||||||||||||
FINANCING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | ||||
Revolving credit facility borrowings | | | | 119,000 | | | | | 71,000 | | | | | | 155,000 | | | | | 103,000 | | | ||||
Revolving credit facility repayments | | | | (47,000) | | | | | (56,000) | | | | | | (102,000) | | | | | (85,000) | | | ||||
Payments of long-term debt and other | | | | (3,215) | | | | | (3,215) | | | | | | (6,361) | | | | | (6,359) | | | ||||
Issuance of acquisition note payable | | | | — | | | | | 3,775 | | | | | | — | | | | | 3,775 | | | ||||
Proceeds from common shares issued | | | | — | | | | | 211 | | | | | | — | | | | | 341 | | | ||||
Dividends paid | | | | (4,854) | | | | | (4,037) | | | | | | (9,709) | | | | | (8,883) | | | ||||
Net cash provided (used) by financing activities | | | | 63,931 | | | | | 11,734 | | | |||||||||||||||
Net cash used by financing activities | | | | 36,930 | | | | | 6,874 | | | |||||||||||||||
Effect of exchange rate changes on cash | | | | (510) | | | | | (173) | | | | | | (135) | | | | | (414) | | | ||||
Net increase (decrease) in cash and cash equivalents | | | | (2,680) | | | | | (3,308) | | | | | | (31,393) | | | | | 2,168 | | | ||||
Cash and cash equivalents at beginning of period | | | | 57,573 | | | | | 29,168 | | | | | | 57,573 | | | | | 29,168 | | | ||||
Cash and cash equivalents at end of period | | | $ | 54,893 | | | | $ | 25,860 | | | | | $ | 26,180 | | | | $ | 31,336 | | | ||||
|
| | | Shares of Common Stock | | | Common Stock | | | Preferred Stock | | | Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | |||||||||||||||||||||
| | | (unaudited) (in thousands, except share amounts) | | |||||||||||||||||||||||||||||||||||||||
As of June 30, 2019 | | | | | 40,453,608 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 133,266 | | | | | $ | 168,926 | | | | | $ | (86,181) | | | | | $ | 216,015 | | |
Comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,515 | | | | | | (7,547) | | | | | | (5,032) | | |
Exercise of stock options | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Dividends declared ($0.12 per share) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,854) | | | | | | — | | | | | | (4,854) | | |
Stock-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | 565 | | | | | | — | | | | | | — | | | | | | 565 | | |
As of September 30, 2019 | | | | | 40,453,608 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 133,831 | | | | | $ | 166,587 | | | | | $ | (93,728) | | | | | $ | 206,694 | | |
|
| | | Shares of Common Stock | | | Common Stock | | | Preferred Stock | | | Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | |||||||||||||||||||||
| | | (unaudited) (in thousands, except share amounts) | | |||||||||||||||||||||||||||||||||||||||
As of June 30, 2018 | | | | | 40,357,708 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 129,873 | | | | | $ | 131,560 | | | | | $ | (76,483) | | | | | $ | 184,954 | | |
Adoption of new revenue standard | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | 1,245 | | | | | | — | | | | | | 1,245 | | |
Comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,314 | | | | | | (7,195) | | | | | | 9,119 | | |
Exercise of stock options | | | | | 17,860 | | | | | | — | | | | | | — | | | | | | 211 | | | | | | — | | | | | | — | | | | | | 211 | | |
Dividends declared ($0.10 per share) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,037) | | | | | | — | | | | | | (4,037) | | |
Stock-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | 565 | | | | | | — | | | | | | — | | | | | | 565 | | |
As of September 30, 2018 | | | | | 40,375,568 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 130,649 | | | | | $ | 145,082 | | | | | $ | (83,678) | | | | | $ | 192,057 | | |
| | | Shares of Common Stock | | | Common Stock | | | Preferred Stock | | | Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | |||||||||||||||||||||
| | | (in thousands, except share amounts) | | |||||||||||||||||||||||||||||||||||||||
As of June 30, 2019 | | | | | 40,453,608 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 133,266 | | | | | $ | 168,926 | | | | | $ | (86,181) | | | | | $ | 216,015 | | |
Comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,515 | | | | | | (7,547) | | | | | | (5,032) | | |
Dividends declared ($0.12/share) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,854) | | | | | | — | | | | | | (4,854) | | |
Stock-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | 565 | | | | | | — | | | | | | — | | | | | | 565 | | |
As of September 30, 2019 | | | | | 40,453,608 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 133,831 | | | | | $ | 166,587 | | | | | $ | (93,728) | | | | | $ | 206,694 | | |
Comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,894 | | | | | | 3,118 | | | | | | 15,012 | | |
Dividends declared ($0.12/share) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,855) | | | | | | — | | | | | | (4,855) | | |
Stock-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | 564 | | | | | | — | | | | | | — | | | | | | 564 | | |
As of December 31, 2019 | | | | | 40,453,608 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 134,395 | | | | | $ | 173,626 | | | | | $ | (90,610) | | | | | $ | 217,415 | | |
|
| | | Shares of Common Stock | | | Common Stock | | | Preferred Stock | | | Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | |||||||||||||||||||||
| | | (in thousands, except share amounts) | | |||||||||||||||||||||||||||||||||||||||
As of June 30, 2018 | | | | | 40,357,708 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 129,873 | | | | | $ | 131,560 | | | | | $ | (76,483) | | | | | $ | 184,954 | | |
Adoption of new revenue standard | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | 1,245 | | | | | | — | | | | | | 1,245 | | |
Comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,314 | | | | | | (7,195) | | | | | | 9,119 | | |
Exercise of stock options | | | | | 17,860 | | | | | | — | | | | | | — | | | | | | 211 | | | | | | — | | | | | | — | | | | | | 211 | | |
Dividends declared ($0.10/share) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,037) | | | | | | — | | | | | | (4,037) | | |
Stock-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | 565 | | | | | | — | | | | | | — | | | | | | 565 | | |
As of September 30, 2018 | | | | | 40,375,568 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 130,649 | | | | | $ | 145,082 | | | | | $ | (83,678) | | | | | $ | 192,057 | | |
Comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,748 | | | | | | 2,571 | | | | | | 17,319 | | |
Exercise of stock options | | | | | 11,000 | | | | | | — | | | | | | — | | | | | | 130 | | | | | | — | | | | | | — | | | | | | 130 | | |
Dividends declared ($0.12/share) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,846) | | | | | | — | | | | | | (4,846) | | |
Stock-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | 564 | | | | | | — | | | | | | — | | | | | | 564 | | |
As of December 31, 2018 | | | | | 40,386,568 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 131,343 | | | | | $ | 154,984 | | | | | $ | (81,107) | | | | | $ | 205,224 | | |
| | Three Months | | | Three Months | | Six Months | | ||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||||||
For the Periods Ended December 31 | | 2019 | | 2018 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||
Net income | | | $ | 2,515 | | | | $ | 16,314 | | | | | $ | 11,894 | | | | $ | 14,748 | | | | $ | 14,409 | | | | $ | 31,062 | | | ||||||
Weighted average number of shares – basic | | | | 40,454 | | | | | 40,369 | | | | | | 40,454 | | | | | 40,383 | | | | | 40,454 | | | | | 40,376 | | | ||||||
Dilutive effect of stock options and restricted stock units | | | | 50 | | | | | 191 | | | | | | 50 | | | | | 140 | | | | | 50 | | | | | 147 | | | ||||||
Weighted average number of shares – diluted | | | | 40,504 | | | | | 40,560 | | | | | | 40,504 | | | | | 40,523 | | | | | 40,504 | | | | | 40,523 | | | ||||||
Net income per share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
basic | | | $ | 0.06 | | | | $ | 0.40 | | | | | $ | 0.29 | | | | $ | 0.37 | | | | $ | 0.36 | | | | $ | 0.77 | | | ||||||
diluted | | | $ | 0.06 | | | | $ | 0.40 | | | | | $ | 0.29 | | | | $ | 0.36 | | | | $ | 0.36 | | | | $ | 0.77 | | |
| Working capital, net | | | $ | 2,366 | | | Working capital, net | | | $ | 2,366 | | | ||
| Property, plant and equipment | | | | 2,005 | | | Property, plant and equipment | | | | 2,005 | | | ||
| Definite-lived intangible assets | | | | 32,100 | | | Definite-lived intangible assets | | | | 32,400 | | | ||
| Goodwill | | | | 25,642 | | | Goodwill | | | | 25,331 | | | ||
| Net assets acquired | | | $ | 62,113 | | | Net assets acquired | | | $ | 62,102 | | |
| | Three Months | | | Three Months | | Six Months | | ||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||||||
For the Periods Ended December 31 | | 2019 | | 2018 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||
Animal Health | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
MFAs and other | | | $ | 75,034 | | | | $ | 87,004 | | | | | $ | 91,955 | | | | $ | 93,054 | | | | $ | 166,989 | | | | $ | 180,058 | | | ||||||
Nutritional specialties | | | | 30,433 | | | | | 26,970 | | | | | | 33,062 | | | | | 29,460 | | | | | 63,495 | | | | | 56,430 | | | ||||||
Vaccines | | | | 16,383 | | | | | 17,215 | | | | | | 18,672 | | | | | 17,048 | | | | | 35,055 | | | | | 34,263 | | | ||||||
Total Animal Health | | | $ | 121,850 | | | | $ | 131,189 | | | | | $ | 143,689 | | | | $ | 139,562 | | | | $ | 265,539 | | | | $ | 270,751 | | | ||||||
Mineral Nutrition | | | | 52,649 | | | | | 54,838 | | | | | | 55,685 | | | | | 62,319 | | | | | 108,334 | | | | | 117,157 | | | ||||||
Performance Products | | | | 15,221 | | | | | 14,126 | | | | | | 14,638 | | | | | 16,342 | | | | | 29,859 | | | | | 30,468 | | | ||||||
Total | | | $ | 189,720 | | | | $ | 200,153 | | | | | $ | 214,012 | | | | $ | 218,223 | | | | $ | 403,732 | | | | $ | 418,376 | | |
| | Three Months | | | Three Months | | Six Months | | ||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||||||
For the Periods Ended December 31 | | 2019 | | 2018 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||
United States | | | $ | 118,487 | | | | $ | 114,487 | | | | | $ | 122,917 | | | | $ | 126,065 | | | | $ | 241,404 | | | | $ | 240,552 | | | ||||||
Latin America and Canada | | | | 36,741 | | | | | 38,883 | | | | | | 42,704 | | | | | 40,273 | | | | | 79,445 | | | | | 79,156 | | | ||||||
Europe, Middle East and Africa | | | | 23,693 | | | | | 24,836 | | | | | | 27,660 | | | | | 26,186 | | | | | 51,353 | | | | | 51,022 | | | ||||||
Asia Pacific | | | | 10,799 | | | | | 21,947 | | | | | | 20,731 | | | | | 25,699 | | | | | 31,530 | | | | | 47,646 | | | ||||||
Total | | | $ | 189,720 | | | | $ | 200,153 | | | | | $ | 214,012 | | | | $ | 218,223 | | | | $ | 403,732 | | | | $ | 418,376 | | | |
| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2019 | | | 2018 | | ||||||
Interest expense, net | | | | | | | | | | | | | |
Term loan | | | | $ | 2,048 | | | | | $ | 2,112 | | |
Revolving credit facility | | | | | 1,431 | | | | | | 747 | | |
Amortization of debt issuance costs and debt discount | | | | | 221 | | | | | | 221 | | |
Acquisition-related accrued interest | | | | | 53 | | | | | | — | | |
Other | | | | | 80 | | | | | | 163 | | |
Interest expense | | | | | 3,833 | | | | | | 3,243 | | |
Interest (income) | | | | | (479) | | | | | | (460) | | |
| | | | $ | 3,354 | | | | | $ | 2,783 | | |
|
| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2019 | | | 2018 | | ||||||
Depreciation and amortization | | | | | | | | | | | | | |
Depreciation of property, plant and equipment | | | | $ | 5,731 | | | | | $ | 5,188 | | |
Amortization of intangible assets | | | | | 2,038 | | | | | | 1,491 | | |
Amortization of other assets | | | | | 12 | | | | | | 12 | | |
| | | | $ | 7,781 | | | | | $ | 6,691 | | |
| | | Three Months | | | Six Months | | ||||||||||||||||||
For the Periods Ended December 31 | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Interest expense, net | | | | | | | | | | | | | | | | | | | | | | | | | |
Term loan | | | | $ | 2,031 | | | | | $ | 2,202 | | | | | $ | 4,079 | | | | | $ | 4,314 | | |
Revolving credit facility | | | | | 1,530 | | | | | | 920 | | | | | | 2,961 | | | | | | 1,667 | | |
Amortization of debt issuance costs and debt discount | | | | | 221 | | | | | | 220 | | | | | | 442 | | | | | | 441 | | |
Acquisition-related accrued interest | | | | | 79 | | | | | | — | | | | | | 132 | | | | | | — | | |
Other | | | | | 76 | | | | | | 120 | | | | | | 156 | | | | | | 283 | | |
Interest expense | | | | | 3,937 | | | | | | 3,462 | | | | | | 7,770 | | | | | | 6,705 | | |
Interest (income) | | | | | (505) | | | | | | (447) | | | | | | (984) | | | | | | (907) | | |
| | | | $ | 3,432 | | | | | $ | 3,015 | | | | | $ | 6,786 | | | | | $ | 5,798 | | |
|
| | | Three Months | | | Six Months | | ||||||||||||||||||
For the Periods Ended December 31 | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Depreciation and amortization | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation of property, plant and equipment | | | | $ | 5,840 | | | | | $ | 5,308 | | | | | $ | 11,571 | | | | | $ | 10,496 | | |
Amortization of intangible assets | | | | | 2,296 | | | | | | 1,521 | | | | | | 4,334 | | | | | | 3,012 | | |
Amortization of other assets | | | | | 12 | | | | | | 12 | | | | | | 24 | | | | | | 24 | | |
| | | | $ | 8,148 | | | | | $ | 6,841 | | | | | $ | 15,929 | | | | | $ | 13,532 | | |
As of | | | September 30, 2019 | | | June 30, 2019 | | ||||||
Inventories | | | | | | | | | | | | | |
Raw materials | | | | $ | 71,737 | | | | | $ | 64,441 | | |
Work-in-process | | | | | 8,934 | | | | | | 10,699 | | |
Finished goods | | | | | 123,202 | | | | | | 123,182 | | |
| | | | $ | 203,873 | | | | | $ | 198,322 | | |
|
As of | | | September 30, 2019 | | | June 30, 2019 | | ||||||
Goodwill roll-forward | | | | | | | | | | | | | |
Balance at beginning of period | | | | $ | 27,348 | | | | | $ | 27,348 | | |
Osprey acquisition | | | | | 25,642 | | | | | | — | | |
Balance at end of period | | | | $ | 52,990 | | | | | $ | 27,348 | | |
|
As of | | | December 31, 2019 | | | June 30, 2019 | | ||||||
Inventories | | | | | | | | | | | | | |
Raw materials | | | | $ | 73,394 | | | | | $ | 64,441 | | |
Work-in-process | | | | | 10,489 | | | | | | 10,699 | | |
Finished goods | | | | | 109,626 | | | | | | 123,182 | | |
| | | | $ | 193,509 | | | | | $ | 198,322 | | |
|
As of | | | December 31, 2019 | | | June 30, 2019 | | ||||||
Goodwill roll-forward | | | | | | | | | | | | | |
Balance at beginning of period | | | | $ | 27,348 | | | | | $ | 27,348 | | |
Osprey acquisition | | | | | 25,331 | | | | | | — | | |
Balance at end of period | | | | $ | 52,679 | | | | | $ | 27,348 | | |
|
As of | | | September 30, 2019 | | | June 30, 2019 | | ||||||
Other assets | | | | | | | | | | | | | |
Equity method investments | | | | $ | 4,374 | | | | | $ | 4,196 | | |
Insurance investments | | | | | 5,521 | | | | | | 5,431 | | |
Deferred financing fees | | | | | 1,404 | | | | | | 1,531 | | |
Deferred income taxes | | | | | 17,357 | | | | | | 16,770 | | |
ROU operating lease assets | | | | | 20,830 | | | | | | — | | |
Deposits | | | | | 6,534 | | | | | | 7,024 | | |
Indemnification asset | | | | | 3,000 | | | | | | 3,000 | | |
Other | | | | | 8,017 | | | | | | 7,496 | | |
| | | | $ | 67,037 | | | | | $ | 45,448 | | |
As of | | | September 30, 2019 | | | June 30, 2019 | | ||||||
Accrued expenses and other current liabilities | | | | | | | | | | | | | |
Employee related | | | | $ | 25,999 | | | | | $ | 28,298 | | |
Current operating lease liabilities | | | | | 6,267 | | | | | | — | | |
Commissions and rebates | | | | | 7,366 | | | | | | 8,397 | | |
Insurance-related | | | | | 1,274 | | | | | | 1,279 | | |
Professional fees | | | | | 3,993 | | | | | | 5,212 | | |
Income and other taxes | | | | | 3,655 | | | | | | 6,067 | | |
Restructuring costs | | | | | 2,655 | | | | | | 3,590 | | |
Other | | | | | 15,308 | | | | | | 15,655 | | |
| | | | $ | 66,517 | | | | | $ | 68,498 | | |
As of | | | December 31, 2019 | | | June 30, 2019 | | ||||||
Other assets | | | | | | | | | | | | | |
ROU operating lease assets | | | | $ | 23,115 | | | | | $ | — | | |
Deferred income taxes | | | | | 17,039 | | | | | | 16,770 | | |
Deposits | | | | | 6,809 | | | | | | 7,024 | | |
Insurance investments | | | | | 5,521 | | | | | | 5,431 | | |
Equity method investments | | | | | 4,902 | | | | | | 4,196 | | |
Indemnification asset | | | | | 3,000 | | | | | | 3,000 | | |
Deferred financing fees | | | | | 1,276 | | | | | | 1,531 | | |
Other | | | | | 8,216 | | | | | | 7,496 | | |
| | | | $ | 69,878 | | | | | $ | 45,448 | | |
|
As of | | | December 31, 2019 | | | June 30, 2019 | | ||||||
Accrued expenses and other current liabilities | | | | | | | | | | | | | |
Employee related | | | | $ | 29,845 | | | | | $ | 28,298 | | |
Current operating lease liabilities | | | | | 6,672 | | | | | | — | | |
Commissions and rebates | | | | | 7,942 | | | | | | 8,397 | | |
Insurance-related | | | | | 1,291 | | | | | | 1,279 | | |
Professional fees | | | | | 5,222 | | | | | | 5,212 | | |
Income and other taxes | | | | | 4,791 | | | | | | 6,067 | | |
Restructuring costs | | | | | 2,568 | | | | | | 3,590 | | |
Other | | | | | 14,840 | | | | | | 15,655 | | |
| | | | $ | 73,171 | | | | | $ | 68,498 | | |
| Liability balance at June 30, 2019 | | | | $ | 5,590 | | |
| Charges | | | | | 425 | | |
| Payments | | | | | (1,360) | | |
| Liability balance at September 30, 2019 | | | | $ | 4,655 | | |
| Liability balance at June 30, 2019 | | | | $ | 5,590 | | |
| Charges | | | | | 425 | | |
| Payments | | | | | (1,847) | | |
| Liability balance at December 31, 2019 | | | | $ | 4,168 | | |
As of | | | September 30, 2019 | | | June 30, 2019 | | ||||||
Other liabilities | | | | | | | | | | | | | |
U.S. pension plan | | | | $ | 3,545 | | | | | $ | 3,934 | | |
International retirement plans | | | | | 5,139 | | | | | | 5,133 | | |
Supplemental retirement benefits, deferred compensation and other | | | | | 7,713 | | | | | | 7,605 | | |
Long term and deferred income taxes | | | | | 9,022 | | | | | | 8,978 | | |
Acquisition-related consideration | | | | | 7,603 | | | | | | — | | |
Long-term operating lease liabilities | | | | | 15,546 | | | | | | — | | |
Restructuring costs | | | | | 2,000 | | | | | | 2,000 | | |
Other long term liabilities | | | | | 14,964 | | | | | | 15,144 | | |
| | | | $ | 65,532 | | | | | $ | 42,794 | | |
|
As of | | | September 30, 2019 | | | June 30, 2019 | | ||||||
Accumulated other comprehensive income (loss) | | | | | | | | | | | | | |
Derivative instruments | | | | $ | (1,678) | | | | | $ | (594) | | |
Foreign currency translation adjustment | | | | | (78,048) | | | | | | (71,225) | | |
Unrecognized net pension gains (losses) | | | | | (19,930) | | | | | | (20,050) | | |
(Provision) benefit for income taxes on derivative instruments | | | | | 418 | | | | | | 148 | | |
(Provision) benefit for incomes taxes on long-term intercompany investments | | | | | 8,166 | | | | | | 8,166 | | |
(Provision) benefit for income taxes on pension gains (losses) | | | | | (2,656) | | | | | | (2,626) | | |
| | | | $ | (93,728) | | | | | $ | (86,181) | | |
As of | | | December 31, 2019 | | | June 30, 2019 | | ||||||
Other liabilities | | | | | | | | | | | | | |
Long-term operating lease liabilities | | | | $ | 17,453 | | | | | $ | — | | |
Long term and deferred income taxes | | | | | 9,520 | | | | | | 8,978 | | |
Supplemental retirement benefits, deferred compensation and other | | | | | 7,837 | | | | | | 7,605 | | |
Acquisition-related consideration | | | | | 7,678 | | | | | | — | | |
International retirement plans | | | | | 5,247 | | | | | | 5,133 | | |
U.S. pension plan | | | | | 3,146 | | | | | | 3,934 | | |
Restructuring costs | | | | | 1,600 | | | | | | 2,000 | | |
Other long term liabilities | | | | | 13,917 | | | | | | 15,144 | | |
| | | | $ | 66,398 | | | | | $ | 42,794 | | |
|
As of | | | December 31, 2019 | | | June 30, 2019 | | ||||||
Accumulated other comprehensive income (loss) | | | | | | | | | | | | | |
Derivative instruments | | | | $ | (598) | | | | | $ | (594) | | |
Foreign currency translation adjustment | | | | | (75,845) | | | | | | (71,225) | | |
Unrecognized net pension gains (losses) | | | | | (19,792) | | | | | | (20,050) | | |
(Provision) benefit for income taxes on derivative instruments | | | | | 149 | | | | | | 148 | | |
(Provision) benefit for incomes taxes on long-term intercompany investments | | | | | 8,166 | | | | | | 8,166 | | |
(Provision) benefit for income taxes on pension gains (losses) | | | | | (2,690) | | | | | | (2,626) | | |
| | | | $ | (90,610) | | | | | $ | (86,181) | | |
As of | | September 30, 2019 | | June 30, 2019 | | | December 31, 2019 | | June 30, 2019 | | ||||||||||||||||
Term A Loan due June 2022 | | | $ | 228,125 | | | | $ | 231,250 | | | | | $ | 225,000 | | | | $ | 231,250 | | | ||||
Other | | | | 21 | | | | | 40 | | | | | | — | | | | | 40 | | | ||||
| | | | 228,146 | | | | | 231,290 | | | | | | 225,000 | | | | | 231,290 | | | ||||
Unamortized debt issuance costs and debt discount | | | | (1,022) | | | | | (1,115) | | | | | | (929) | | | | | (1,115) | | | ||||
| | | | 227,124 | | | | | 230,175 | | | | | | 224,071 | | | | | 230,175 | | | ||||
Less: current maturities | | | | (14,084) | | | | | (12,540) | | | | | | (15,625) | | | | | (12,540) | | | ||||
| | | $ | 213,040 | | | | $ | 217,635 | | | | | $ | 208,446 | | | | $ | 217,635 | | |
As of | | September 30, 2019 | | Balance Sheet Classification | | | December 31, 2019 | | Balance Sheet Classification | | ||||||||||
Assets: | | | | | | | | | | | | | | | | | ||||
Operating lease ROU assets | | | $ | 20,830 | | | Other Assets | | | | $ | 23,115 | | | Other Assets | | ||||
Liabilities: | | | | | | | | | | | | | | | | | ||||
Current portion | | | | 6,267 | | | Accrued expenses and other current liabilities | | | | | 6,672 | | | Accrued expenses and other current liabilities | | ||||
Non-current portion | | | | 15,546 | | | Other liabilities | | | | | 17,453 | | | Other liabilities | | ||||
Total operating lease liabilities | | | $ | 21,813 | | | | | | | $ | 24,125 | | | | |
| | Three months | | |||||||||||||||||
For the Period Ended September 30 | | 2019 | | |||||||||||||||||
For the Periods Ended December 31 | | Three months 2019 | | Six months 2019 | | |||||||||||||||
Operating lease expense | | | $ | 1,851 | | | | | $ | 1,911 | | | | $ | 3,762 | | | |||
Variable lease expense | | | | 324 | | | | | | 307 | | | | | 631 | | | |||
Short-term lease expense | | | | 203 | | | | | | 214 | | | | | 417 | | | |||
Total lease cost | | | $ | 2,378 | | | | | $ | 2,432 | | | | $ | 4,810 | | |
| | | Three months | | |||
For the Period Ended September 30 | | | 2019 | | |||
Operating cash flows used for ROU operating leases | | | | $ | 1,677 | | |
Right of use assets obtained in exchange for new operating lease liabilities (non-cash) | | | | $ | 3,790 | | |
For the Periods Ended December 31 | | | Three months 2019 | | | Six months 2019 | | ||||||
Operating cash flows used for ROU operating leases | | | | $ | 1,968 | | | | | $ | 3,645 | | |
Right of use assets obtained in exchange for new operating lease liabilities | | | | $ | 3,972 | | | | | $ | 7,762 | | |
| | | As of | ||||
December 31, 2019 | | ||||||
Weighted average remaining lease term (in years) – ROU operating leases | | | | | | | |
Weighted average discount rate – ROU operating leases | | | | | | |
For the Years Ending June 30 | | | | | | | | | | | | | ||
2020 | | | $ | 5,450 | | | | | $ | 3,853 | | | ||
2021 | | | | 5,856 | | | | | | 6,627 | | | ||
2022 | | | | 4,382 | | | | | | 5,012 | | | ||
2023 | | | | 2,258 | | | | | | 2,765 | | | ||
2024 | | | | 1,786 | | | | | | 2,283 | | | ||
2025 and thereafter | | | | 5,473 | | | | | | 7,273 | | | ||
Total lease payments | | | | 25,205 | | | | | | 27,813 | | | ||
Less: interest | | | | 3,392 | | | | | | 3,688 | | | ||
Total operating lease liabilities | | | $ | 21,813 | | | | | $ | 24,125 | | |
For the Years Ending June 30 | | | | | | | |
2020 | | | | $ | 5,815 | | |
2021 | | | | | 4,160 | | |
2022 | | | | | 3,191 | | |
2023 | | | | | 1,445 | | |
2024 | | | | | 865 | | |
Thereafter | | | | | 765 | | |
Total minimum lease payments | | | | $ | 16,241 | | |
Instrument | | Hedge | | Notional Amount at September 30, 2019 | | Consolidated Balance Sheet | | | Asset (Liability) fair value as of | | | Hedge | | Notional Amount at December 31, 2019 | | Consolidated Balance Sheet | | | Asset (Liability) fair value as of | | ||||||||||||||||||||||||
| September 30, 2019 | | June 30, 2019 | | | December 31, 2019 | | June 30, 2019 | | |||||||||||||||||||||||||||||||||||
Options | | Brazilian Real calls | | R$90,000 | | (1) | | | $ | 390 | | | | $ | 413 | | | | Brazilian Real calls | | R$108,000 | | (1) | | | $ | 659 | | | | $ | 413 | | | ||||||||||
Options | | Brazilian Real puts | | R$90,000 | | (1) | | | $ | (370) | | | | $ | (30) | | | | Brazilian Real puts | | R$108,000 | | (1) | | | $ | (217) | | | | $ | (30) | | | ||||||||||
Swap | | Interest rate swap | | $150,000 | | Other assets / (Other liabilities) | | | $ | (1,698) | | | | $ | (977) | | | | Interest rate swap | | $150,000 | | Other liabilities | | | $ | (1,040) | | | | $ | (977) | | |
For the Three Months Ended September 30 | | ||||||||||||||||||||||||||||||||||||||||||
| | | | | | Gain (Loss) recorded in OCI | | | Gain (Loss) recognized in consolidated statements of operations | | | Consolidated Statement of Operations Line Item Total | | ||||||||||||||||||||||||||||||
Instrument | | | Hedge | | | 2019 | | | 2018 | | | Consolidated Statement of Operations | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||||||||
Options | | | Brazilian Real calls | | | | $ | (363) | | | | | $ | (109) | | | | Cost of goods sold | | | | $ | (45) | | | | | $ | 1084 | | | | | $ | 132,057 | | | | | $ | 134,348 | | |
Swap | | | Interest rate swap | | | | $ | (721) | | | | | $ | 650 | | | | Interest expense, net | | | | $ | — | | | | | $ | — | | | | | $ | 3,354 | | | | | $ | 2,783 | | |
For the Three Months Ended December 31 | | ||||||||||||||||||||||||||||||||||||||||||
| | | | | | Gain (Loss) recorded in OCI | | | Gain (Loss) recognized in consolidated statements of operations | | | Consolidated Statement of Operations Line Item Total | | ||||||||||||||||||||||||||||||
Instrument | | | Hedge | | | 2019 | | | 2018 | | | Consolidated Statement of Operations | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||||||||
Options | | | Brazilian Real calls | | | | $ | 422 | | | | | $ | 513 | | | | Cost of goods sold | | | | $ | (63) | | | | | $ | — | | | | | $ | 144,908 | | | | | $ | 149,579 | | |
Swap | | | Interest rate swap | | | | $ | 658 | | | | | $ | (2,756) | | | | Interest expense, net | | | | $ | — | | | | | $ | — | | | | | $ | 3,432 | | | | | $ | 3,015 | | |
For the Six Months Ended December 31 | | ||||||||||||||||||||||||||||||||||||||||||
| | | | | | Gain (Loss) recorded in OCI | | | Gain (Loss) recognized in consolidated statements of operations | | | Consolidated Statement of Operations Line Item Total | | ||||||||||||||||||||||||||||||
Instrument | | | Hedge | | | 2019 | | | 2018 | | | Consolidated Statement of Operations | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||||||||
Options | | | Brazilian Real calls | | | | $ | 59 | | | | | $ | 404 | | | | Cost of goods sold | | | | $ | (108) | | | | | $ | 1,084 | | | | | $ | 276,965 | | | | | $ | 283,927 | | |
Swap | | | Interest rate swap | | | | $ | (63) | | | | | $ | (2,106) | | | | Interest expense, net | | | | $ | — | | | | | $ | — | | | | | $ | 6,786 | | | | | $ | 5,798 | | |
As of | | September 30, 2019 | | June 30, 2019 | | | December 31, 2019 | | June 30, 2019 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Level 1 | | Level 2 | | Level 3 | | Level 1 | | Level 2 | | Level 3 | | | Level 1 | | Level 2 | | Level 3 | | Level 1 | | Level 2 | | Level 3 | | ||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | | | $ | 24,000 | | | | $ | — | | | | $ | — | | | | $ | 24,000 | | | | $ | — | | | | $ | — | | | | | $ | 49,000 | | | | $ | — | | | | $ | — | | | | $ | 24,000 | | | | $ | — | | | | $ | — | | | ||||||||||||
Derivatives asset (liability) | | | $ | — | | | | $ | 20 | | | | $ | — | | | | $ | — | | | | $ | 383 | | | | $ | — | | | |||||||||||||||||||||||||||||||||||||||||||
Interest rate swap (liability) | | | $ | — | | | | $ | (1,698) | | | | $ | — | | | | $ | — | | | | $ | (977) | | | | $ | — | | | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency derivatives | | | $ | — | | | | $ | 442 | | | | $ | — | | | | $ | — | | | | $ | 383 | | | | $ | — | | | |||||||||||||||||||||||||||||||||||||||||||
Interest rate swap | | | $ | — | | | | $ | (1,040) | | | | $ | — | | | | $ | — | | | | $ | (977) | | | | $ | — | | | |||||||||||||||||||||||||||||||||||||||||||
Contingent consideration on acquisitions | | | $ | — | | | | $ | — | | | | $ | (7,603) | | | | $ | — | | | | $ | — | | | | $ | — | | | | | $ | — | | | | $ | — | | | | $ | (7,678) | | | | $ | — | | | | $ | — | | | | $ | — | | |
| Balance at June 30, 2019 | | | | $ | — | | |
| Osprey acquisition | | | | | (7,553) | | |
| Acquisition-related accrued interest | | | | | (125) | | |
| Balance at December 31, 2019 | | | | ($ | 7,678) | | |
| | Three Months | | | Three Months | | Six Months | | ||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||||||
For the Periods Ended December 31 | | 2019 | | 2018 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||
Net sales | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Animal Health | | | $ | 121,850 | | | | $ | 131,189 | | | | | $ | 143,689 | | | | $ | 139,562 | | | | $ | 265,539 | | | | $ | 270,751 | | | ||||||
Mineral Nutrition | | | | 52,649 | | | | | 54,838 | | | | | | 55,685 | | | | | 62,319 | | | | | 108,334 | | | | | 117,157 | | | ||||||
Performance Products | | | | 15,221 | | | | | 14,126 | | | | | | 14,638 | | | | | 16,342 | | | | | 29,859 | | | | | 30,468 | | | ||||||
Total segments | | | $ | 189,720 | | | | $ | 200,153 | | | | | $ | 214,012 | | | | $ | 218,223 | | | | $ | 403,732 | | | | $ | 418,376 | | | ||||||
Depreciation and amortization | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Animal Health | | | $ | 6,384 | | | | $ | 5,356 | | | | | $ | 6,711 | | | | $ | 5,493 | | | | $ | 13,095 | | | | $ | 10,849 | | | ||||||
Mineral Nutrition | | | | 613 | | | | | 597 | | | | | | 629 | | | | | 616 | | | | | 1,242 | | | | | 1,213 | | | ||||||
Performance Products | | | | 377 | | | | | 273 | | | | | | 417 | | | | | 279 | | | | | 794 | | | | | 552 | | | ||||||
Total segments | | | $ | 7,374 | | | | $ | 6,226 | | | | | $ | 7,757 | | | | $ | 6,388 | | | | $ | 15,131 | | | | $ | 12,614 | | | ||||||
Adjusted EBITDA | | | | | | | | | | | | |||||||||||||||||||||||||||
Animal Health | | | $ | 25,061 | | | | $ | 35,716 | | | |||||||||||||||||||||||||||
Mineral Nutrition | | | | 3,475 | | | | | 2,563 | | | |||||||||||||||||||||||||||
Performance Products | | | | 852 | | | | | 716 | | | |||||||||||||||||||||||||||
Total segments | | | $ | 29,388 | | | | $ | 38,995 | | | |
| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2019 | | | 2018 | | ||||||
Reconciliation of income before income taxes to Adjusted EBITDA | | | | | | | | | | | | | |
Income before income taxes | | | | $ | 3,572 | | | | | $ | 22,705 | | |
Interest expense, net | | | | | 3,354 | | | | | | 2,783 | | |
Depreciation and amortization – Total segments | | | | | 7,374 | | | | | | 6,226 | | |
Depreciation and amortization – Corporate | | | | | 407 | | | | | | 465 | | |
Corporate costs | | | | | 9,728 | | | | | | 8,886 | | |
Restructure costs | | | | | 425 | | | | | | — | | |
Stock-based compensation | | | | | 565 | | | | | | 565 | | |
Acquisition-related cost of goods sold | | | | | 280 | | | | | | — | | |
Acquisition-related transaction costs | | | | | 462 | | | | | | — | | |
Foreign currency (gains) losses, net | | | | | 3,221 | | | | | | (2,635) | | |
Adjusted EBITDA – Total segments | | | | $ | 29,388 | | | | | $ | 38,995 | | |
|
As of | | | September 30, 2019 | | | June 30, 2019 | | ||||||
Identifiable assets | | | | | | | | | | | | | |
Animal Health | | | | $ | 572,933 | | | | | $ | 508,864 | | |
Mineral Nutrition | | | | | 71,551 | | | | | | 67,662 | | |
Performance Products | | | | | 33,323 | | | | | | 32,886 | | |
Total segments | | | | | 677,807 | | | | | | 609,412 | | |
Corporate | | | | | 117,432 | | | | | | 117,259 | | |
Total | | | | $ | 795,239 | | | | | $ | 726,671 | | |
| | | Three Months | | | Six Months | | ||||||||||||||||||
For the Periods Ended December 31 | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | | | |
Animal Health | | | | $ | 33,838 | | | | | $ | 35,925 | | | | | $ | 58,899 | | | | | $ | 71,641 | | |
Mineral Nutrition | | | | | 3,684 | | | | | | 4,084 | | | | | | 7,159 | | | | | | 6,647 | | |
Performance Products | | | | | 1,457 | | | | | | 1,514 | | | | | | 2,309 | | | | | | 2,230 | | |
Total segments | | | | $ | 38,979 | | | | | $ | 41,523 | | | | | $ | 68,367 | | | | | $ | 80,518 | | |
Reconciliation of income before income taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | | $ | 16,895 | | | | | $ | 20,074 | | | | | $ | 20,467 | | | | | $ | 42,779 | | |
Interest expense, net | | | | | 3,432 | | | | | | 3,015 | | | | | | 6,786 | | | | | | 5,798 | | |
Depreciation and amortization – Total segments | | | | | 7,757 | | | | | | 6,388 | | | | | | 15,131 | | | | | | 12,614 | | |
Depreciation and amortization – Corporate | | | | | 391 | | | | | | 453 | | | | | | 798 | | | | | | 918 | | |
Corporate costs | | | | | 10,491 | | | | | | 9,918 | | | | | | 20,219 | | | | | | 18,804 | | |
Restructure costs | | | | | — | | | | | | — | | | | | | 425 | | | | | | — | | |
Stock-based compensation | | | | | 564 | | | | | | 564 | | | | | | 1,129 | | | | | | 1,129 | | |
Acquisition-related cost of goods sold | | | | | — | | | | | | — | | | | | | 280 | | | | | | — | | |
Acquisition-related transaction costs | | | | | — | | | | | | — | | | | | | 462 | | | | | | — | | |
Acquisition-related other | | | | | 167 | | | | | | — | | | | | | 167 | | | | | | — | | |
Other, net | | | | | — | | | | | | (1,506) | | | | | | — | | | | | | (1,506) | | |
Foreign currency (gains) losses, net | | | | | (718) | | | | | | 2,617 | | | | | | 2,503 | | | | | | (18) | | |
Adjusted EBITDA – Total segments | | | | $ | 38,979 | | | | | $ | 41,523 | | | | | $ | 68,367 | | | | | $ | 80,518 | | |
|
As of | | | December 31, 2019 | | | June 30, 2019 | | ||||||
Identifiable assets | | | | | | | | | | | | | |
Animal Health | | | | $ | 572,921 | | | | | $ | 508,864 | | |
Mineral Nutrition | | | | | 69,988 | | | | | | 67,662 | | |
Performance Products | | | | | 33,530 | | | | | | 32,886 | | |
Total segments | | | | | 676,439 | | | | | | 609,412 | | |
Corporate | | | | | 111,879 | | | | | | 117,259 | | |
Total | | | | $ | 788,318 | | | | | $ | 726,671 | | |
| | | Three Months | | |||||||||||||||||||||
For the Periods Ended September 30 | | | 2019 | | | 2018 | | | Change | | |||||||||||||||
| | | (in thousands, except per share amounts and percentages) | | |||||||||||||||||||||
Net sales | | | | $ | 189,720 | | | | | $ | 200,153 | | | | | $ | (10,433) | | | | | | (5)% | | |
Gross profit | | | | | 57,663 | | | | | | 65,805 | | | | | | (8,142) | | | | | | (12)% | | |
Selling, general and administrative expenses | | | | | 47,516 | | | | | | 42,952 | | | | | | 4,564 | | | | | | 11% | | |
Operating income | | | ��� | | 10,147 | | | | | | 22,853 | | | | | | (12,706) | | | | | | (56)% | | |
Interest expense, net | | | | | 3,354 | | | | | | 2,783 | | | | | | 571 | | | | | | 21% | | |
Foreign currency (gains) losses, net | | | | | 3,221 | | | | | | (2,635) | | | | | | 5,856 | | | | | | * | | |
Income before income taxes | | | | | 3,572 | | | | | | 22,705 | | | | | | (19,133) | | | | | | (84)% | | |
Provision for income taxes | | | | | 1,057 | | | | | | 6,391 | | | | | | (5,334) | | | | | | (83)% | | |
Net income | | | | $ | 2,515 | | | | | $ | 16,314 | | | | | $ | (13,799) | | | | | | (85)% | | |
Net income per share | | | | | | | | | | | | | | | | | | | | | | | | | |
basic | | | | $ | 0.06 | | | | | $ | 0.40 | | | | | $ | (0.34) | | | | | | | | |
diluted | | | | $ | 0.06 | | | | | $ | 0.40 | | | | | $ | (0.34) | | | | | | | | |
Weighted average number of shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | |
basic | | | | | 40,454 | | | | | | 40,369 | | | | | | | | | | | | | | |
diluted | | | | | 40,504 | | | | | | 40,560 | | | | | | | | | | | | | | |
Ratio to net sales | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross profit | | | | | 30.4% | | | | | | 32.9% | | | | | | | | | | | | | | |
Selling, general and administrative expenses | | | | | 25.0% | | | | | | 21.5% | | | | | | | | | | | | | | |
Operating income | | | | | 5.3% | | | | | | 11.4% | | | | | | | | | | | | | | |
Income before income taxes | | | | | 1.9% | | | | | | 11.3% | | | | | | | | | | | | | | |
Net income | | | | | 1.3% | | | | | | 8.2% | | | | | | | | | | | | | | |
Effective tax rate | | | | | 29.6% | | | | | | 28.1% | | | | | | | | | | | | | | |
| | | Three Months | | | Six Months | | ||||||||||||||||||||||||||||||||||||||||||
For the Periods Ended December 31 | | | 2019 | | | 2018 | | | Change | | | 2019 | | | 2018 | | | Change | | ||||||||||||||||||||||||||||||
| | | (in thousands, except per share amounts and percentages) | | |||||||||||||||||||||||||||||||||||||||||||||
Net sales | | | | $ | 214,012 | | | | | $ | 218,223 | | | | | $ | (4,211) | | | | | | (2)% | | | | | $ | 403,732 | | | | | $ | 418,376 | | | | | $ | (14,644) | | | | | | (4)% | | |
Gross profit | | | | | 69,104 | | | | | | 68,644 | | | | | | 460 | | | | | | 1% | | | | | | 126,767 | | | | | | 134,449 | | | | | | (7,682) | | | | | | (6)% | | |
Selling, general and administrative expenses | | | | | 49,495 | | | | | | 42,938 | | | | | | 6,557 | | | | | | 15% | | | | | | 97,011 | | | | | | 85,890 | | | | | | 11,121 | | | | | | 13% | | |
Operating income | | | | | 19,609 | | | | | | 25,706 | | | | | | (6,097) | | | | | | (24)% | | | | | | 29,756 | | | | | | 48,559 | | | | | | (18,803) | | | | | | (39)% | | |
Interest expense, net | | | | | 3,432 | | | | | | 3,015 | | | | | | 417 | | | | | | 14% | | | | | | 6,786 | | | | | | 5,798 | | | | | | 988 | | | | | | 17% | | |
Foreign currency (gains) losses, net | | | | | (718) | | | | | | 2,617 | | | | | | (3,335) | | | | | | * | | | | | | 2,503 | | | | | | (18) | | | | | | 2,521 | | | | | | * | | |
Income before income taxes | | | | | 16,895 | | | | | | 20,074 | | | | | | (3,179) | | | | | | (16)% | | | | | | 20,467 | | | | | | 42,779 | | | | | | (22,312) | | | | | | (52)% | | |
Provision for income taxes | | | | | 5,001 | | | | | | 5,326 | | | | | | (325) | | | | | | (6)% | | | | | | 6,058 | | | | | | 11,717 | | | | | | (5,659) | | | | | | (48)% | | |
Net income | | | | $ | 11,894 | | | | | $ | 14,748 | | | | | $ | (2,854) | | | | | | (19)% | | | | | $ | 14,409 | | | | | $ | 31,062 | | | | | $ | (16,653) | | | | | | (54)% | | |
Net income per share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
basic | | | | $ | 0.29 | | | | | $ | 0.37 | | | | | $ | (0.08) | | | | | | | | | | | $ | 0.36 | | | | | $ | 0.77 | | | | | $ | (0.41) | | | | | | | | |
diluted | | | | $ | 0.29 | | | | | $ | 0.36 | | | | | $ | (0.07) | | | | | | | | | | | $ | 0.36 | | | | | $ | 0.77 | | | | | $ | (0.41) | | | | | | | | |
Weighted average number of shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
basic | | | | | 40,454 | | | | | | 40,383 | | | | | | | | | | | | | | | | | | 40,454 | | | | | | 40,376 | | | | | | | | | | | | | | |
diluted | | | | | 40,504 | | | | | | 40,523 | | | | | | | | | | | | | | | | | | 40,504 | | | | | | 40,523 | | | | | | | | | | | | | | |
Ratio to net sales | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross profit | | | | | 32.3% | | | | | | 31.5% | | | | | | | | | | | | | | | | | | 31.4% | | | | | | 32.1% | | | | | | | | | | | | | | |
Selling, general and administrative expenses | | | | | 23.1% | | | | | | 19.7% | | | | | | | | | | | | | | | | | | 24.0% | | | | | | 20.5% | | | | | | | | | | | | | | |
Operating income | | | | | 9.2% | | | | | | 11.8% | | | | | | | | | | | | | | | | | | 7.4% | | | | | | 11.6% | | | | | | | | | | | | | | |
Income before income taxes | | | | | 7.9% | | | | | | 9.2% | | | | | | | | | | | | | | | | | | 5.1% | | | | | | 10.2% | | | | | | | | | | | | | | |
Net income | | | | | 5.6% | | | | | | 6.8% | | | | | | | | | | | | | | | | | | 3.6% | | | | | | 7.4% | | | | | | | | | | | | | | |
Effective tax rate | | | | | 29.6% | | | | | | 26.5% | | | | | | | | | | | | | | | | | | 29.6% | | | | | | 27.4% | | | | | | | | | | | | | | |
| | | Three Months | | |||||||||||||||||||||
For the Periods Ended September 30 | | | 2019 | | | 2018 | | | Change | | |||||||||||||||
| | | (in thousands, except percentages) | | |||||||||||||||||||||
Net sales | | | | | |||||||||||||||||||||
MFAs and other | | | | $ | 75,034 | | | | | $ | 87,004 | | | | | $ | (11,970) | | | | | | (14)% | | |
Nutritional specialties | | | | | 30,433 | | | | | | 26,970 | | | | | | 3,463 | | | | | | 13% | | |
Vaccines | | | | | 16,383 | | | | | | 17,215 | | | | | | (832) | | | | | | (5)% | | |
Animal Health | | | | | 121,850 | | | | | | 131,189 | | | | | | (9,339) | | | | | | (7)% | | |
Mineral Nutrition | | | | | 52,649 | | | | | | 54,838 | | | | | | (2,189) | | | | | | (4)% | | |
Performance Products | | | | | 15,221 | | | | | | 14,126 | | | | | | 1,095 | | | | | | 8% | | |
Total | | | | $ | 189,720 | | | | | $ | 200,153 | | | | | $ | (10,433) | | | | | | (5)% | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | | | |
Animal Health | | | | $ | 25,061 | | | | | $ | 35,716 | | | | | $ | (10,655) | | | | | | (30)% | | |
Mineral Nutrition | | | | | 3,475 | | | | | | 2,563 | | | | | | 912 | | | | | | 36% | | |
Performance Products | | | | | 852 | | | | | | 716 | | | | | | 136 | | | | | | 19% | | |
Corporate | | | | | (9,728) | | | | | | (8,886) | | | | | | (842) | | | | | | * | | |
Total | | | | $ | 19,660 | | | | | $ | 30,109 | | | | | $ | (10,449) | | | | | | (35)% | | |
Adjusted EBITDA ratio to segment net sales | | | | | | | | | | | | | | | | | | | | | | | | | |
Animal Health | | | | | 20.6% | | | | | | 27.2% | | | | | | | | | | | | | | |
Mineral Nutrition | | | | | 6.6% | | | | | | 4.7% | | | | | | | | | | | | | | |
Performance Products | | | | | 5.6% | | | | | | 5.1% | | | | | | | | | | | | | | |
Corporate(1) | | | | | (5.1)% | | | | | | (4.4)% | | | | | | | | | | | | | | |
Total(1) | | | | | 10.4% | | | | | | 15.0% | | | | | | | | | | | | | | |
| | | Three Months | | | Six Months | | ||||||||||||||||||||||||||||||||||||||||||
For the Periods Ended December 31 | | | 2019 | | | 2018 | | | Change | | | 2019 | | | 2018 | | | Change | | ||||||||||||||||||||||||||||||
| | | (in thousands, except percentages) | | |||||||||||||||||||||||||||||||||||||||||||||
Net sales | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
MFAs and other | | | | $ | 91,955 | | | | | $ | 93,054 | | | | | $ | (1,099) | | | | | | (1)% | | | | | $ | 166,989 | | | | | $ | 180,058 | | | | | $ | (13,069) | | | | | | (7)% | | |
Nutritional specialties | | | | | 33,062 | | | | | | 29,460 | | | | | | 3,602 | | | | | | 12% | | | | | | 63,495 | | | | | | 56,430 | | | | | | 7,065 | | | | | | 13% | | |
Vaccines | | | | | 18,672 | | | | | | 17,048 | | | | | | 1,624 | | | | | | 10% | | | | | | 35,055 | | | | | | 34,263 | | | | | | 792 | | | | | | 2% | | |
Animal Health | | | | | 143,689 | | | | | | 139,562 | | | | | | 4,127 | | | | | | 3% | | | | | | 265,539 | | | | | | 270,751 | | | | | | (5,212) | | | | | | (2)% | | |
Mineral Nutrition | | | | | 55,685 | | | | | | 62,319 | | | | | | (6,634) | | | | | | (11)% | | | | | | 108,334 | | | | | | 117,157 | | | | | | (8,823) | | | | | | (8)% | | |
Performance Products | | | | | 14,638 | | | | | | 16,342 | | | | | | (1,704) | | | | | | (10)% | | | | | | 29,859 | | | | | | 30,468 | | | | | | (609) | | | | | | (2)% | | |
Total | | | | $ | 214,012 | | | | | $ | 218,223 | | | | | $ | (4,211) | | | | | | (2)% | | | | | $ | 403,732 | | | | | $ | 418,376 | | | | | $ | (14,644) | | | | | | (4)% | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Animal Health | | | | $ | 33,838 | | | | | $ | 35,925 | | | | | $ | (2,087) | | | | | | (6)% | | | | | $ | 58,899 | | | | | $ | 71,641 | | | | | $ | (12,742) | | | | | | (18)% | | |
Mineral Nutrition | | | | | 3,684 | | | | | | 4,084 | | | | | | (400) | | | | | | (10)% | | | | | | 7,159 | | | | | | 6,647 | | | | | | 512 | | | | | | 8% | | |
Performance Products | | | | | 1,457 | | | | | | 1,514 | | | | | | (57) | | | | | | (4)% | | | | | | 2,309 | | | | | | 2,230 | | | | | | 79 | | | | | | 4% | | |
Corporate | | | | | (10,491) | | | | | | (9,918) | | | | | | (573) | | | | | | * | | | | | | (20,219) | | | | | | (18,804) | | | | | | (1,415) | | | | | | * | | |
Total | | | | $ | 28,488 | | | | | $ | 31,605 | | | | | $ | (3,117) | | | | | | (10)% | | | | | $ | 48,148 | | | | | $ | 61,714 | | | | | $ | (13,566) | | | | | | (22)% | | |
Adjusted EBITDA ratio to segment net sales | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Animal Health | | | | | 23.5% | | | | | | 25.7% | | | | | | | | | | | | | | | | | | 22.2% | | | | | | 26.5% | | | | | | | | | | | | | | |
Mineral Nutrition | | | | | 6.6% | | | | | | 6.6% | | | | | | | | | | | | | | | | | | 6.6% | | | | | | 5.7% | | | | | | | | | | | | | | |
Performance Products | | | | | 10.0% | | | | | | 9.3% | | | | | | | | | | | | | | | | | | 7.7% | | | | | | 7.3% | | | | | | | | | | | | | | |
Corporate(1) | | | | | (4.9)% | | | | | | (4.5)% | | | | | | | | | | | | | | | | | | (5.0)% | | | | | | (4.5)% | | | | | | | | | | | | | | |
Total(1) | | | | | 13.3% | | | | | | 14.5% | | | | | | | | | | | | | | | | | | 11.9% | | | | | | 14.8% | | | | | | | | | | | | | | |
| | | Three Months | | |||||||||||||||||||||
For the Periods Ended September 30 | | | 2019 | | | 2018 | | | Change | | |||||||||||||||
| | | (in thousands, except percentages) | | |||||||||||||||||||||
Net income | | | | $ | 2,515 | | | | | $ | 16,314 | | | | | $ | (13,799) | | | | | | (85)% | | |
Interest expense, net | | | | | 3,354 | | | | | | 2,783 | | | | | | 571 | | | | | | 21% | | |
Provision for income taxes | | | | | 1,057 | | | | | | 6,391 | | | | | | (5,334) | | | | | | (83)% | | |
Depreciation and amortization | | | | | 7,781 | | | | | | 6,691 | | | | | | 1,090 | | | | | | 16% | | |
EBITDA | | | | | 14,707 | | | | | | 32,179 | | | | | | (17,472) | | | | | | (54)% | | |
Restructuring costs | | | | | 425 | | | | | | — | | | | | | 425 | | | | | | * | | |
Stock-based compensation | | | | | 565 | | | | | | 565 | | | | | | — | | | | | | 0% | | |
Acquisition-related cost of goods sold | | | | | 280 | | | | | | — | | | | | | 280 | | | | | | * | | |
Acquisition-related transaction costs | | | | | 462 | | | | | | — | | | | | | 462 | | | | | | * | | |
Foreign currency (gains) losses, net | | | | | 3,221 | | | | | | (2,635) | | | | | | 5,856 | | | | | | * | | |
Adjusted EBITDA | | | | $ | 19,660 | | | | | $ | 30,109 | | | | | $ | (10,449) | | | | | | (35)% | | |
| | | Three Months | | | Six Months | | ||||||||||||||||||||||||||||||||||||||||||
For the Periods Ended December 31 | | | 2019 | | | 2018 | | | Change | | | 2019 | | | 2018 | | | Change | | ||||||||||||||||||||||||||||||
| | | (in thousands, except percentages) | | |||||||||||||||||||||||||||||||||||||||||||||
Net income | | | | $ | 11,894 | | | | | $ | 14,748 | | | | | $ | (2,854) | | | | | | (19)% | | | | | $ | 14,409 | | | | | $ | 31,062 | | | | | $ | (16,653) | | | | | | (54)% | | |
Interest expense, net | | | | | 3,432 | | | | | | 3,015 | | | | | | 417 | | | | | | 14% | | | | | | 6,786 | | | | | | 5,798 | | | | | | 988 | | | | | | 17% | | |
Provision for income taxes | | | | | 5,001 | | | | | | 5,326 | | | | | | (325) | | | | | | (6)% | | | | | | 6,058 | | | | | | 11,717 | | | | | | (5,659) | | | | | | (48)% | | |
Depreciation and amortization | | | | | 8,148 | | | | | | 6,841 | | | | | | 1,307 | | | | | | 19% | | | | | | 15,929 | | | | | | 13,532 | | | | | | 2,397 | | | | | | 18% | | |
EBITDA | | | | | 28,475 | | | | | | 29,930 | | | | | | (1,455) | | | | | | (5)% | | | | | | 43,182 | | | | | | 62,109 | | | | | | (18,927) | | | | | | (30)% | | |
Restructuring costs | | | | | — | | | | | | — | | | | | | — | | | | | | * | | | | | | 425 | | | | | | — | | | | | | 425 | | | | | | * | | |
Stock-based compensation | | | | | 564 | | | | | | 564 | | | | | | — | | | | | | 0% | | | | | | 1,129 | | | | | | 1,129 | | | | | | — | | | | | | 0% | | |
Acquisition-related cost of goods sold | | | | | — | | | | | | — | | | | | | — | | | | | | * | | | | | | 280 | | | | | | — | | | | | | 280 | | | | | | * | | |
Acquisition-related transaction costs | | | | | — | | | | | | — | | | | | | — | | | | | | * | | | | | | 462 | | | | | | — | | | | | | 462 | | | | | | * | | |
Acquisition-related other, net | | | | | 167 | | | | | | — | | | | | | 167 | | | | | | * | | | | | | 167 | | | | | | — | | | | | | 167 | | | | | | * | | |
Other, net | | | | | — | | | | | | (1,506) | | | | | | 1,506 | | | | | | * | | | | | | — | | | | | | (1,506) | | | | | | 1,506 | | | | | | * | | |
Foreign currency (gains) losses, net | | | | | (718) | | | | | | 2,617 | | | | | | (3,335) | | | | | | * | | | | | | 2,503 | | | | | | (18) | | | | | | 2,521 | | | | | | * | | |
Adjusted EBITDA | | | | $ | 28,488 | | | | | $ | 31,605 | | | | | $ | (3,117) | | | | | | (10)% | | | | | $ | 48,148 | | | | | $ | 61,714 | | | | | $ | (13,566) | | | | | | (22)% | | |
|
| | Three Months | | | Six Months | | ||||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2019 | | 2018 | | Change | | |||||||||||||||||||||||||||||||
For the Periods Ended December 31 | | 2019 | | 2018 | | Change | | |||||||||||||||||||||||||||||||
| | (in thousands) | | | (in thousands) | | ||||||||||||||||||||||||||||||||
Cash provided by/(used in): | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Operating activities | | | $ | (3,570) | | | | $ | 1,280 | | | | $ | (4,850) | | | | | $ | 28,521 | | | | $ | 16,636 | | | | $ | 11,737 | | | ||||||
Investing activities | | | | (62,531) | | | | | (16,149) | | | | | (46,382) | | | | | | (96,709) | | | | | (20,928) | | | | | (75,633) | | | ||||||
Financing activities | | | | 63,931 | | | | | 11,734 | | | | | 52,197 | | | | | | 36,930 | | | | | 6,874 | | | | | 30,056 | | | ||||||
Effect of exchange-rate changes on cash and cash equivalents | | | | (510) | | | | | (173) | | | | | (337) | | | | | | (135) | | | | | (414) | | | | | 279 | | | ||||||
Net increase/(decrease) in cash and cash equivalents | | | $ | (2,680) | | | | $ | (3,308) | | | | $ | 628 | | | | | $ | (31,393) | | | | $ | 2,168 | | | | $ | (33,561) | | |
| | Three Months | | | Six Months | | ||||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2019 | | 2018 | | Change | | |||||||||||||||||||||||||||||||
For the Periods Ended December 31 | | 2019 | | 2018 | | Change | | |||||||||||||||||||||||||||||||
| | (in thousands) | | | (in thousands) | | ||||||||||||||||||||||||||||||||
EBITDA | | | $ | 14,707 | | | | $ | 32,179 | | | | $ | (17,472) | | | | | $ | 43,182 | | | | $ | 62,109 | | | | $ | (18,927) | | | ||||||
Adjustments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Restructuring costs | | | | 425 | | | | | — | | | | | 425 | | | | | | 425 | | | | | — | | | | | 425 | | | ||||||
Stock-based compensation | | | | 565 | | | | | 565 | | | | | — | | | | | | 1,129 | | | | | 1,129 | | | | | — | | | ||||||
Acquisition-related cost of goods sold | | | | 280 | | | | | — | | | | | 280 | | | | | | 280 | | | | | — | | | | | 280 | | | ||||||
Acquisition-related transaction costs | | | | 462 | | | | | — | | | | | 462 | | | | | | 462 | | | | | — | | | | | 462 | | | ||||||
Acquisition other, net | | | | 167 | | | | | — | | | | | 167 | | | ||||||||||||||||||||||
Other, net | | | | — | | | | | (1,506) | | | | | 1,506 | | | ||||||||||||||||||||||
Foreign currency (gains) losses, net | | | | 3,221 | | | | | (2,635) | | | | | 5,856 | | | | | | 2,503 | | | | | (18) | | | | | 2,521 | | | ||||||
Interest paid | | | | (3,201) | | | | | (2,732) | | | | | (469) | | | | | | (6,261) | | | | | (5,874) | | | | | (387) | | | ||||||
Income taxes paid | | | | (4,657) | | | | | (5,817) | | | | | 1,160 | | | | | | (9,357) | | | | | (10,490) | | | | | 1,133 | | | ||||||
Changes in operating assets and liabilities and other items | | | | (14,910) | | | | | (20,280) | | | | | 4,908 | | | | | | (3,547) | | | | | (28,714) | | | | | 25,019 | | | ||||||
Cash used for acquisition-related transaction costs | | | | (462) | | | | | — | | | | | (462) | | | | | | (462) | | | | | — | | | | | (462) | | | ||||||
Net cash provided (used) by operating activities | | | $ | (3,570) | | | | $ | 1,280 | | | | $ | (4,850) | | | | | $ | 28,521 | | | | $ | 16,636 | | | | $ | 11,737 | | |
As of | | September 30, 2019 | | June 30, 2019 | | | December 31, 2019 | | June 30, 2019 | | ||||||||||||||||
| | (in thousands, except ratios) | | | (in thousands, except ratios) | | ||||||||||||||||||||
Cash and cash equivalents and short-term investments | | | $ | 78,893 | | | | $ | 81,573 | | | | | $ | 75,180 | | | | $ | 81,573 | | | ||||
Working capital | | | | 248,730 | | | | | 242,902 | | | | | | 238,873 | | | | | 242,902 | | | ||||
Ratio of current assets to current liabilities | | | | 2.94:1 | | | | | 2.71:1 | | | | | | 2.82:1 | | | | | 2.71:1 | | |
| | | | Phibro Animal Health Corporation | | |||
| | | By: | | | /s/ Jack C. Bendheim Jack C. Bendheim Chairman, President and Chief Executive Officer | | |
| | | By: | | | /s/ Richard G. Johnson Richard G. Johnson Chief Financial Officer | |