| 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 | | | | | | | |
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PART II—OTHER INFORMATION | | | | | | | |
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| | Three Months | | | Three Months | | ||||||||||||||||||||
For the Periods Ended September 30 | | 2018 | | 2017 | | | 2019 | | 2018 | | ||||||||||||||||
| | (unaudited) (in thousands, except per share amounts) | | | (unaudited) (in thousands, except per share amounts) | | ||||||||||||||||||||
Net sales | | | $ | 200,153 | | | | $ | 193,412 | | | | | $ | 189,720 | | | | $ | 200,153 | | | ||||
Cost of goods sold | | | | 134,348 | | | | | 130,030 | | | | | | 132,057 | | | | | 134,348 | | | ||||
Gross profit | | | | 65,805 | | | | | 63,382 | | | | | | 57,663 | | | | | 65,805 | | | ||||
Selling, general and administrative expenses | | | | 42,952 | | | | | 40,995 | | | | | | 47,516 | | | | | 42,952 | | | ||||
Operating income | | | | 22,853 | | | | | 22,387 | | | | | | 10,147 | | | | | 22,853 | | | ||||
Interest expense, net | | | | 2,783 | | | | | 3,118 | | | | | | 3,354 | | | | | 2,783 | | | ||||
Foreign currency (gains) losses, net | | | | (2,635) | | | | | 325 | | | | | | 3,221 | | | | | (2,635) | | | ||||
Income before income taxes | | | | 22,705 | | | | | 18,944 | | | | | | 3,572 | | | | | 22,705 | | | ||||
Provision for income taxes | | | | 6,391 | | | | | 3,052 | | | | | | 1,057 | | | | | 6,391 | | | ||||
Net income | | | $ | 16,314 | | | | $ | 15,892 | | | | | $ | 2,515 | | | | $ | 16,314 | | | ||||
Net income per share | | | | | | | | | | | | | | | | | | | | | | | ||||
basic | | | $ | 0.40 | | | | $ | 0.40 | | | |||||||||||||||
diluted | | | $ | 0.40 | | | | $ | 0.39 | | | |||||||||||||||
Basic | | | $ | 0.06 | | | | $ | 0.40 | | | |||||||||||||||
Diluted | | | $ | 0.06 | | | | $ | 0.40 | | | |||||||||||||||
Weighted average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | ||||
basic | | | | 40,369 | | | | | 39,944 | | | |||||||||||||||
diluted | | | | 40,560 | | | | | 40,293 | | | |||||||||||||||
Dividends per share | | | $ | 0.10 | | | | $ | 0.10 | | | |||||||||||||||
Basic | | | | 40,454 | | | | | 40,369 | | | |||||||||||||||
Diluted | | | | 40,504 | | | | | 40,560 | | |
| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2018 | | | 2017 | | ||||||
| | | (unaudited) (in thousands) | | |||||||||
Net income | | | | $ | 16,314 | | | | | $ | 15,892 | | |
Change in fair value of derivative instruments | | | | | 541 | | | | | | (622) | | |
Foreign currency translation adjustment | | | | | (7,682) | | | | | | 3,233 | | |
Unrecognized net pension gains (losses) | | | | | 108 | | | | | | 131 | | |
(Provision) benefit for income taxes | | | | | (162) | | | | | | 187 | | |
Other comprehensive income (loss) | | | | | (7,195) | | | | | | 2,929 | | |
Comprehensive income | | | | $ | 9,119 | | | | | $ | 18,821 | | |
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| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2019 | | | 2018 | | ||||||
| | | (unaudited) (in thousands) | | |||||||||
Net income | | | | $ | 2,515 | | | | | $ | 16,314 | | |
Change in fair value of derivative instruments | | | | | (1,084) | | | | | | 541 | | |
Foreign currency translation adjustment | | | | | (6,823) | | | | | | (7,682) | | |
Unrecognized net pension gains (losses) | | | | | 120 | | | | | | 108 | | |
(Provision) benefit for income taxes | | | | | 240 | | | | | | (162) | | |
Other comprehensive income (loss) | | | | | (7,547) | | | | | | (7,195) | | |
Comprehensive income (loss) | | | | $ | (5,032) | | | | | $ | 9,119 | | |
As of | | September 30, 2018 | | June 30, 2018 | | | September 30, 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 | | | $ | 25,860 | | | | $ | 29,168 | | | | | $ | 54,893 | | | | $ | 57,573 | | | ||||
Short-term investments | | | | 50,000 | | | | | 50,000 | | | | | | 24,000 | | | | | 24,000 | | | ||||
Accounts receivable, net | | | | 134,815 | | | | | 135,742 | | | | | | 145,444 | | | | | 159,022 | | | ||||
Inventories, net | | | | 185,794 | | | | | 178,170 | | | | | | 203,873 | | | | | 198,322 | | | ||||
Other current assets | | | | 23,324 | | | | | 22,381 | | | | | | 27,302 | | | | | 27,245 | | | ||||
Total current assets | | | | 419,793 | | | | | 415,461 | | | | | | 455,512 | | | | | 466,162 | | | ||||
Property, plant and equipment, net | | | | 130,786 | | | | | 130,108 | | | | | | 142,164 | | | | | 140,235 | | | ||||
Intangibles, net | | | | 51,888 | | | | | 51,978 | | | | | | 77,536 | | | | | 47,478 | | | ||||
Goodwill | | | | 27,348 | | | | | 27,348 | | | | | | 52,990 | | | | | 27,348 | | | ||||
Other assets | | | | 48,660 | | | | | 46,784 | | | | | | 67,037 | | | | | 45,448 | | | ||||
Total assets | | | $ | 678,475 | | | | $ | 671,679 | | | | | $ | 795,239 | | | | $ | 726,671 | | | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | ||||
Current portion of long-term debt | | | $ | 12,580 | | | | $ | 12,579 | | | | | $ | 14,084 | | | | $ | 12,540 | | | ||||
Accounts payable | | | | 61,870 | | | | | 59,498 | | | | | | 61,372 | | | | | 73,189 | | | ||||
Accrued expenses and other current liabilities | | | | 54,281 | | | | | 71,144 | | | | | | 66,517 | | | | | 68,498 | | | ||||
Total current liabilities | | | | 128,731 | | | | | 143,221 | | | | | | 141,973 | | | | | 154,227 | | | ||||
Revolving credit facility | | | | 85,000 | | | | | 70,000 | | | | | | 168,000 | | | | | 96,000 | | | ||||
Long-term debt | | | | 226,750 | | | | | 229,802 | | | | | | 213,040 | | | | | 217,635 | | | ||||
Other liabilities | | | | 45,937 | | | | | 43,702 | | | | | | 65,532 | | | | | 42,794 | | | ||||
Total liabilities | | | | 486,418 | | | | | 486,725 | | | | | | 588,545 | | | | | 510,656 | | | ||||
Commitments and contingencies (Note 8) | | | | | | | | | | | | |||||||||||||||
Common stock, par value $0.0001 per share; 300,000,000 Class A shares authorized, 20,209,534 and 19,992,204 shares issued and outstanding at September 30, 2018 and June 30, 2018, respectively; 30,000,000 Class B shares authorized, 20,166,034 and 20,365,504 shares issued and outstanding at September 30, 2018 and June 30, 2018, respectively | | | | 4 | | | | | 4 | | | |||||||||||||||
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 | | | |||||||||||||||
Preferred stock, par value $0.0001 per share; 16,000,000 shares authorized, no shares issued and outstanding | | | | — | | | | | — | | | | | | — | | | | | — | | | ||||
Paid-in capital | | | | 130,649 | | | | | 129,873 | | | | | | 133,831 | | | | | 133,266 | | | ||||
Retained earnings | | | | 145,082 | | | | | 131,560 | | | | | | 166,587 | | | | | 168,926 | | | ||||
Accumulated other comprehensive income (loss) | | | | (83,678) | | | | | (76,483) | | | | | | (93,728) | | | | | (86,181) | | | ||||
Total stockholders’ equity | | | | 192,057 | | | | | 184,954 | | | | | | 206,694 | | | | | 216,015 | | | ||||
Total liabilities and stockholders' equity | | | $ | 678,475 | | | | $ | 671,679 | | | |||||||||||||||
Total liabilities and stockholders’ equity | | | $ | 795,239 | | | | $ | 726,671 | | | |
| | Three Months | | | Three Months | | ||||||||||||||||||||
For the Periods Ended September 30 | | 2018 | | 2017 | | | 2019 | | 2018 | | ||||||||||||||||
| | (unaudited) (in thousands) | | | (unaudited) (in thousands) | | ||||||||||||||||||||
OPERATING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | ||||
Net income | | | $ | 16,314 | | | | $ | 15,892 | | | | | $ | 2,515 | | | | $ | 16,314 | | | ||||
Adjustments to reconcile net income to net cash provided (used) by operating activities: | | | | | | | | | | | | | | | | | | | | | | | ||||
Depreciation and amortization | | | | 6,691 | | | | | 6,644 | | | | | | 7,781 | | | | | 6,691 | | | ||||
Amortization of debt issuance costs and debt discount | | | | 221 | | | | | 221 | | | | | | 221 | | | | | 221 | | | ||||
Stock-based compensation | | | | 565 | | | | | — | | | | | | 565 | | | | | 565 | | | ||||
Acquisition-related cost of goods sold | | | | — | | | | | 249 | | | | | | 280 | | | | | — | | | ||||
Acquisition-related accrued compensation | | | | — | | | | | 437 | | | |||||||||||||||
Acquisition-related accrued interest | | | | — | | | | | 253 | | | | | | 53 | | | | | — | | | ||||
Deferred income taxes | | | | (473) | | | | | 770 | | | | | | (652) | | | | | (473) | | | ||||
Foreign currency (gains) losses, net | | | | (2,981) | | | | | 345 | | | | | | 1,660 | | | | | (2,981) | | | ||||
Other | | | | 266 | | | | | 213 | | | | | | 116 | | | | | 266 | | | ||||
Changes in operating assets and liabilities, net of business acquisitions: | | | | | | | | | | | | | | | | | | | | | | | ||||
Accounts receivable, net | | | | (85) | | | | | (8,386) | | | | | | 14,065 | | | | | (85) | | | ||||
Inventories, net | | | | (9,504) | | | | | (5,196) | | | | | | (9,086) | | | | | (9,504) | | | ||||
Other current assets | | | | (3,654) | | | | | (4,458) | | | | | | (813) | | | | | (3,654) | | | ||||
Other assets | | | | 371 | | | | | 332 | | | | | | (1,071) | | | | | 371 | | | ||||
Accounts payable | | | | 2,794 | | | | | 3,652 | | | | | | (11,834) | | | | | 2,794 | | | ||||
Accrued expenses and other liabilities | | | | (9,245) | | | | | (6,165) | | | | | | (7,370) | | | | | (9,245) | | | ||||
Net cash provided (used) by operating activities | | | | 1,280 | | | | | 4,803 | | | | | | (3,570) | | | | | 1,280 | | | ||||
INVESTING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | ||||
Capital expenditures | | | | (6,049) | | | | | (4,998) | | | | | | (7,675) | | | | | (6,049) | | | ||||
Business acquisitions | | | | (9,838) | | | | | (11,562) | | | | | | (54,560) | | | | | (9,838) | | | ||||
Other, net | | | | (262) | | | | | (272) | | | | | | (296) | | | | | (262) | | | ||||
Net cash provided (used) by investing activities | | | | (16,149) | | | | | (16,832) | | | | | | (62,531) | | | | | (16,149) | | | ||||
FINANCING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | | ||||
Revolving credit facility borrowings | | | | 71,000 | | | | | 61,870 | | | | | | 119,000 | | | | | 71,000 | | | ||||
Revolving credit facility repayments | | | | (56,000) | | | | | (41,870) | | | | | | (47,000) | | | | | (56,000) | | | ||||
Payments of long-term debt, capital leases and other | | | | (3,215) | | | | | (1,652) | | | |||||||||||||||
Payments of long-term debt and other | | | | (3,215) | | | | | (3,215) | | | |||||||||||||||
Issuance of acquisition note payable | | | | 3,775 | | | | | — | | | | | | — | | | | | 3,775 | | | ||||
Proceeds from common shares issued | | | | 211 | | | | | 3,486 | | | | | | — | | | | | 211 | | | ||||
Dividends paid | | | | (4,037) | | | | | (3,989) | | | | | | (4,854) | | | | | (4,037) | | | ||||
Net cash provided (used) by financing activities | | | | 11,734 | | | | | 17,845 | | | | | | 63,931 | | | | | 11,734 | | | ||||
Effect of exchange rate changes on cash | | | | (173) | | | | | 198 | | | | | | (510) | | | | | (173) | | | ||||
Net increase (decrease) in cash and cash equivalents | | | | (3,308) | | | | | 6,014 | | | | | | (2,680) | | | | | (3,308) | | | ||||
Cash and cash equivalents at beginning of period | | | | 29,168 | | | | | 56,083 | | | | | | 57,573 | | | | | 29,168 | | | ||||
Cash and cash equivalents at end of period | | | $ | 25,860 | | | | $ | 62,097 | | | | | $ | 54,893 | | | | $ | 25,860 | | | |
| | | 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 | | |
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| | | 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 | | |
| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2018 | | | 2017 | | ||||||
Net income | | | | $ | 16,314 | | | | | $ | 15,892 | | |
Weighted average number of shares – basic | | | | | 40,369 | | | | | | 39,944 | | |
Dilutive effect of stock options and restricted stock units | | | | | 191 | | | | | | 349 | | |
Weighted average number of shares – diluted | | | | | 40,560 | | | | | | 40,293 | | |
Net income per share | | | | | | | | | | | | | |
basic | | | | $ | 0.40 | | | | | $ | 0.40 | | |
diluted | | | | $ | 0.40 | | | | | $ | 0.39 | | |
| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2019 | | | 2018 | | ||||||
Net income | | | | $ | 2,515 | | | | | $ | 16,314 | | |
Weighted average number of shares – basic | | | | | 40,454 | | | | | | 40,369 | | |
Dilutive effect of stock options and restricted stock units | | | | | 50 | | | | | | 191 | | |
Weighted average number of shares – diluted | | | | | 40,504 | | | | | | 40,560 | | |
Net income per share | | | | | | | | | | | | | |
basic | | | | $ | 0.06 | | | | | $ | 0.40 | | |
diluted | | | | $ | 0.06 | | | | | $ | 0.40 | | |
As of July 1, 2018 | | | Effect of Adoption | | | Post-adoption | | ||||||
Other current assets | | | | $ | 2,100 | | | | | $ | 24,481 | | |
Other assets | | | | | 2,325 | | | | | | 49,109 | | |
Accrued expenses and other current liabilities | | | | | 343 | | | | | | 71,487 | | |
Other liabilities | | | | | 2,837 | | | | | | 46,539 | | |
Retained earnings | | | | $ | 1,245 | | | | | $ | 132,805 | | |
As of September 30, 2018 | | | Effect of adoption | | | As reported | | ||||||
ASSETS | | | | ||||||||||
Other current assets | | | | $ | 56 | | | | | $ | 23,324 | | |
Other assets | | | | | 56 | | | | | | 48,660 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | ||||||||||
Accrued expenses and other current liabilities | | | | | (80) | | | | | | 54,281 | | |
Other liabilities | | | | | 26 | | | | | | 45,937 | | |
Retained earnings | | | | $ | 166 | | | | | $ | 145,082 | | |
| | | Three Months | | |||||||||
For the Period Ended September 30, 2018 | | | Effect of adoption | | | As reported | | ||||||
Net sales | | | | $ | 198 | | | | | $ | 200,153 | | |
Provision for income taxes | | | | | 32 | | | | | | 6,391 | | |
Net income | | | | $ | 166 | | | | | $ | 16,314 | | |
| Working capital, net | | | | $ | 2,366 | | |
| Property, plant and equipment | | | | | 2,005 | | |
| Definite-lived intangible assets | | | | | 32,100 | | |
| Goodwill | | | | | 25,642 | | |
| Net assets acquired | | | | $ | 62,113 | | |
| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2019 | | | 2018 | | ||||||
Animal Health | | | | | | | | | | | | | |
MFAs and other | | | | $ | 75,034 | | | | | $ | 87,004 | | |
Nutritional specialties | | | | | 30,433 | | | | | | 26,970 | | |
Vaccines | | | | | 16,383 | | | | | | 17,215 | | |
Total Animal Health | | | | $ | 121,850 | | | | | $ | 131,189 | | |
Mineral Nutrition | | | | | 52,649 | | | | | | 54,838 | | |
Performance Products | | | | | 15,221 | | | | | | 14,126 | | |
Total | | | | $ | 189,720 | | | | | $ | 200,153 | | |
| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2019 | | | 2018 | | ||||||
United States | | | | $ | 118,487 | | | | | $ | 114,487 | | |
Latin America and Canada | | | | | 36,741 | | | | | | 38,883 | | |
Europe, Middle East and Africa | | | | | 23,693 | | | | | | 24,836 | | |
Asia Pacific | | | | | 10,799 | | | | | | 21,947 | | |
Total | | | | $ | 189,720 | | | | | $ | 200,153 | | |
|
| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2018 | | | 2017 | | ||||||
Animal Health | | | | | | | | | | | | | |
MFAs and other | | | | $ | 87,004 | | | | | $ | 79,603 | | |
Nutritional specialties | | | | | 26,970 | | | | | | 30,777 | | |
Vaccines | | | | | 17,215 | | | | | | 18,461 | | |
Total Animal Health | | | | $ | 131,189 | | | | | $ | 128,841 | | |
Mineral Nutrition | | | | | 54,838 | | | | | | 52,073 | | |
Performance Products | | | | | 14,126 | | | | | | 12,498 | | |
Total | | | | $ | 200,153 | | | | | $ | 193,412 | | |
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| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2018 | | | 2017 | | ||||||
United States | | | | $ | 116,093 | | | | | $ | 113,079 | | |
Latin America and Canada | | | | | 38,258 | | | | | | 32,368 | | |
Europe, Middle East and Africa | | | | | 24,858 | | | | | | 25,308 | | |
Asia Pacific | | | | | 20,944 | | | | | | 22,657 | | |
Total | | | | $ | 200,153 | | | | | $ | 193,412 | | |
|
| | | 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 | | |
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 | | |
|
| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2018 | | | 2017 | | ||||||
Interest expense, net | | | | | | | | | | | | | |
Term loan | | | | $ | 2,112 | | | | | $ | 2,033 | | |
Revolving credit facility | | | | | 747 | | | | | | 681 | | |
Amortization of debt issuance costs and debt discount | | | | | 221 | | | | | | 221 | | |
Acquisition-related accrued interest | | | | | — | | | | | | 253 | | |
Other | | | | | 163 | | | | | | 239 | | |
Interest expense | | | | | 3,243 | | | | | | 3,427 | | |
Interest (income) | | | | | (460) | | | | | | (309) | | |
| | | | $ | 2,783 | | | | | $ | 3,118 | | |
Depreciation and amortization | | | | | | | | | | | | | |
Depreciation of property, plant and equipment | | | | $ | 5,188 | | | | | $ | 5,183 | | |
Amortization of intangible assets | | | | | 1,491 | | | | | | 1,449 | | |
Amortization of other assets | | | | | 12 | | | | | | 12 | | |
| | | | $ | 6,691 | | | | | $ | 6,644 | | |
|
As of | | | September 30, 2018 | | | June 30, 2018 | | ||||||
Inventories | | | | | | | | | | | | | |
Raw materials | | | | $ | 79,384 | | | | | $ | 62,373 | | |
Work-in-process | | | | | 14,707 | | | | | | 14,731 | | |
Finished goods | | | | | 91,703 | | | | | | 101,066 | | |
| | | | $ | 185,794 | | | | | $ | 178,170 | | |
|
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, 2018 | | June 30, 2018 | | | September 30, 2019 | | June 30, 2019 | | ||||||||||||||||
Accrued expenses and other current liabilities | | | | | | | | | | | | | | |||||||||||||
Employee related | | | $ | 19,852 | | | | $ | 27,333 | | | | | $ | 25,999 | | | | $ | 28,298 | | | ||||
Current operating lease liabilities | | | | 6,267 | | | | | — | | | |||||||||||||||
Commissions and rebates | | | | 5,784 | | | | | 7,341 | | | | | | 7,366 | | | | | 8,397 | | | ||||
Insurance-related | | | | 1,236 | | | | | 1,168 | | | | | | 1,274 | | | | | 1,279 | | | ||||
Professional fees | | | | 4,331 | | | | | 4,350 | | | | | | 3,993 | | | | | 5,212 | | | ||||
Income and other taxes | | | | 4,406 | | | | | 3,610 | | | | | | 3,655 | | | | | 6,067 | | | ||||
Acquisition-related consideration | | | | 3,877 | | | | | 12,845 | | | |||||||||||||||
Fair value of derivatives | | | | 60 | | | | | — | | | |||||||||||||||
Restructuring costs | | | | 2,655 | | | | | 3,590 | | | |||||||||||||||
Other | | | | 14,735 | | | | | 14,497 | | | | | | 15,308 | | | | | 15,655 | | | ||||
| | | $ | 54,281 | | | | $ | 71,144 | | | | | $ | 66,517 | | | | $ | 68,498 | | | ||||
|
| Liability balance at June 30, 2019 | | | | $ | 5,590 | | |
| Charges | | | | | 425 | | |
| Payments | | | | | (1,360) | | |
| Liability balance at September 30, 2019 | | | | $ | 4,655 | | |
As of | | | September 30, 2018 | | | June 30, 2018 | | ||||||
Accumulated other comprehensive income (loss) | | | | | | | | | | | | | |
Derivative instruments | | | | $ | 5,527 | | | | | $ | 4,986 | | |
Foreign currency translation adjustment | | | | | (74,780) | | | | | | (67,098) | | |
Unrecognized net pension gains (losses) | | | | | (18,105) | | | | | | (18,213) | | |
(Provision) benefit for income taxes on derivative instruments | | | | | (1,376) | | | | | | (1,241) | | |
(Provision) benefit for income taxes on long-term intercompany investments | | | | | 8,166 | | | | | | 8,166 | | |
(Provision) benefit for income taxes on pension gains (losses) | | | | | (3,110) | | | | | | (3,083) | | |
| | | | $ | (83,678) | | | | | $ | (76,483) | | |
|
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 | | | September 30, 2019 | | | June 30, 2019 | | ||||||
Term A Loan due June 2022 | | | | $ | 228,125 | | | | | $ | 231,250 | | |
Other | | | | | 21 | | | | | | 40 | | |
| | | | | 228,146 | | | | | | 231,290 | | |
Unamortized debt issuance costs and debt discount | | | | | (1,022) | | | | | | (1,115) | | |
| | | | | 227,124 | | | | | | 230,175 | | |
Less: current maturities | | | | | (14,084) | | | | | | (12,540) | | |
| | | | $ | 213,040 | | | | | $ | 217,635 | | |
As of | | | September 30, 2019 | | | Balance Sheet Classification | | |||
Assets: | | | | | | | | | | |
Operating lease ROU assets | | | | $ | 20,830 | | | | Other Assets | |
Liabilities: | | | | | | | | | | |
Current portion | | | | | 6,267 | | | | Accrued expenses and other current liabilities | |
Non-current portion | | | | | 15,546 | | | | Other liabilities | |
Total operating lease liabilities | | | | $ | 21,813 | | | | | |
| | | Three months | | |||
For the Period Ended September 30 | | | 2019 | | |||
Operating lease expense | | | | $ | 1,851 | | |
Variable lease expense | | | | | 324 | | |
Short-term lease expense | | | | | 203 | | |
Total lease cost | | | | $ | 2,378 | | |
| | | 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 | | |
| | | As of | | |||
| | | September 30, 2019 | | |||
Weighted average remaining lease term (in years) – ROU operating leases | | | | | 6.36 | | |
Weighted average discount rate – ROU operating leases | | | | | 4.13% | | |
As of | | | September 30, 2018 | | | June 30, 2018 | | ||||||
Term A Loan due June 2022 | | | | $ | 240,625 | | | | | $ | 243,750 | | |
Capitalized lease obligations | | | | | 99 | | | | | | 118 | | |
| | | | | 240,724 | | | | | | 243,868 | | |
Unamortized debt issuance costs and debt discount | | | | | (1,394) | | | | | | (1,487) | | |
| | | | | 239,330 | | | | | | 242,381 | | |
Less: current maturities | | | | | (12,580) | | | | | | (12,579) | | |
| | | | $ | 226,750 | | | | | $ | 229,802 | | |
|
For the Years Ending June 30 | | | | | | | |
2020 | | | | $ | 5,450 | | |
2021 | | | | | 5,856 | | |
2022 | | | | | 4,382 | | |
2023 | | | | | 2,258 | | |
2024 | | | | | 1,786 | | |
2025 and thereafter | | | | | 5,473 | | |
Total lease payments | | | | | 25,205 | | |
Less: interest | | | | | 3,392 | | |
Total operating lease liabilities | | | | $ | 21,813 | | |
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, 2018 | | Consolidated Balance Sheet | | | Fair value as of | | | Hedge | | Notional Amount at September 30, 2019 | | Consolidated Balance Sheet | | | Asset (Liability) fair value as of | | |||||||||||||||||||||||||||
| September 30, 2018 | | June 30, 2018 | | | September 30, 2019 | | June 30, 2019 | | ||||||||||||||||||||||||||||||||||||||
Options | | Brazilian Real calls | | R$94,500 | | | | (1) | | | | $ | 496 | | | | $ | 71 | | | | Brazilian Real calls | | R$90,000 | | (1) | | | $ | 390 | | | | $ | 413 | | | ||||||||||
Options | | Brazilian Real puts | | R$94,500 | | | | (1) | | | | $ | (556) | | | | $ | — | | | | Brazilian Real puts | | R$90,000 | | (1) | | | $ | (370) | | | | $ | (30) | | | ||||||||||
Swap | | Interest rate swap | | $150,000 | | Other assets | | | $ | 5,728 | | | | $ | 5,078 | | | | Interest rate swap | | $150,000 | | Other assets / (Other liabilities) | | | $ | (1,698) | | | | $ | (977) | | |
For the Three Months Ended September 30 | For the Three Months Ended September 30 | | For the Three Months Ended September 30 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Instrument | | Hedge | | | Gain (Loss) recorded in OCI | | Gain (Loss) recognized in consolidated statements of operations | | Consolidated Statement of Operations Line Item Total | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Gain (Loss) recorded in OCI | | Gain (Loss) recognized in consolidated statements of operations | | Consolidated Statement of Operations Line Item Total | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Instrument | | Hedge | | | 2018 | | 2017 | | Consolidated Statement of Operations | | 2018 | | 2017 | | 2018 | | 2017 | | | Hedge | | 2019 | | 2018 | | Consolidated Statement of Operations | | 2019 | | 2018 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | $ | (109) | | | | $ | (905) | | | Cost of goods sold | | | $ | 1,084 | | | | $ | 186 | | | | $ | 134,348 | | | | $ | 130,030 | | | | Brazilian Real calls | | | $ | (363) | | | | $ | (109) | | | Cost of goods sold | | | $ | (45) | | | | $ | 1084 | | | | $ | 132,057 | | | | $ | 134,348 | | | |||||||||||||||||||
Swap | | Interest rate swap | | | $ | 650 | | | | $ | 283 | | | Interest expense, net | | | $ | — | | | | $ | — | | | | $ | 2,783 | | | | $ | 3,118 | | | | Interest rate swap | | | $ | (721) | | | | $ | 650 | | | Interest expense, net | | | $ | — | | | | $ | — | | | | $ | 3,354 | | | | $ | 2,783 | | |
As of | | | September 30, 2018 | | | June 30, 2018 | | ||||||||||||||||||
| | | Level 1 | | | Level 2 | | | Level 1 | | | Level 2 | | ||||||||||||
Short-term investments | | | | $ | 50,000 | | | | | $ | — | | | | | $ | 50,000 | | | | | $ | — | | |
Derivatives asset (liability) | | | | $ | — | | | | | $ | (60) | | | | | $ | — | | | | | $ | 71 | | |
Interest rate swap | | | | $ | — | | | | | $ | 5,728 | | | | | $ | — | | | | | $ | 5,078 | | |
As of | | | September 30, 2019 | | | June 30, 2019 | | ||||||||||||||||||||||||||||||
| | | Level 1 | | | Level 2 | | | Level 3 | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||||||||
Short-term investments | | | | $ | 24,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 24,000 | | | | | $ | — | | | | | $ | — | | |
Derivatives asset (liability) | | | | $ | — | | | | | $ | 20 | | | | | $ | — | | | | | $ | — | | | | | $ | 383 | | | | | $ | — | | |
Interest rate swap (liability) | | | | $ | — | | | | | $ | (1,698) | | | | | $ | — | | | | | $ | — | | | | | $ | (977) | | | | | $ | — | | |
Contingent consideration on acquisitions | | | | $ | — | | | | | $ | — | | | | | $ | (7,603) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | Three Months | | | Three Months | | ||||||||||||||||||||
For the Periods Ended September 30 | | 2018 | | 2017 | | | 2019 | | 2018 | | ||||||||||||||||
Net sales | | | | | | | | | | | | | | | | | | | | | | | ||||
Animal Health | | | $ | 131,189 | | | | $ | 128,841 | | | | | $ | 121,850 | | | | $ | 131,189 | | | ||||
Mineral Nutrition | | | | 54,838 | | | | | 52,073 | | | | | | 52,649 | | | | | 54,838 | | | ||||
Performance Products | | | | 14,126 | | | | | 12,498 | | | | | | 15,221 | | | | | 14,126 | | | ||||
Total segments | | | $ | 200,153 | | | | $ | 193,412 | | | | | $ | 189,720 | | | | $ | 200,153 | | | ||||
Depreciation and amortization | | | | | | | | | | | | | | | | | | | | | | | ||||
Animal Health | | | $ | 5,356 | | | | $ | 5,254 | | | | | $ | 6,384 | | | | $ | 5,356 | | | ||||
Mineral Nutrition | | | | 597 | | | | | 585 | | | | | | 613 | | | | | 597 | | | ||||
Performance Products | | | | 273 | | | | | 246 | | | | | | 377 | | | | | 273 | | | ||||
Total segments | | | $ | 6,226 | | | | $ | 6,085 | | | | | $ | 7,374 | | | | $ | 6,226 | | | ||||
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | ||||
Animal Health | | | $ | 35,716 | | | | $ | 33,742 | | | | | $ | 25,061 | | | | $ | 35,716 | | | ||||
Mineral Nutrition | | | | 2,563 | | | | | 3,716 | | | | | | 3,475 | | | | | 2,563 | | | ||||
Performance Products | | | | 716 | | | | | 248 | | | | | | 852 | | | | | 716 | | | ||||
Total segments | | | $ | 38,995 | | | | $ | 37,706 | | | | | $ | 29,388 | | | | $ | 38,995 | | | |
| | | Three Months | | |||||||||
For the Periods Ended September 30 | | | 2018 | | | 2017 | | ||||||
Reconciliation of income before income taxes to Adjusted EBITDA | | | | | | | | | | | | | |
Income before income taxes | | | | $ | 22,705 | | | | | $ | 18,944 | | |
Interest expense, net | | | | | 2,783 | | | | | | 3,118 | | |
Depreciation and amortization – Total segments | | | | | 6,226 | | | | | | 6,085 | | |
Depreciation and amortization – Corporate | | | | | 465 | | | | | | 559 | | |
Corporate costs | | | | | 8,886 | | | | | | 7,589 | | |
Stock-based compensation | | | | | 565 | | | | | | — | | |
Acquisition-related cost of goods sold | | | | | — | | | | | | 249 | | |
Acquisition-related accrued compensation | | | | | — | | | | | | 437 | | |
Acquisition-related transaction costs | | | | | — | | | | | | 400 | | |
Foreign currency (gains) losses, net | | | | | (2,635) | | | | | | 325 | | |
Adjusted EBITDA – Total segments | | | | $ | 38,995 | | | | | $ | 37,706 | | |
|
As of | | | September 30, 2018 | | | June 30, 2018 | | ||||||
Identifiable assets | | | | | | | | | | | | | |
Animal Health | | | | $ | 461,119 | | | | | $ | 455,704 | | |
Mineral Nutrition | | | | | 73,895 | | | | | | 69,779 | | |
Performance Products | | | | | 29,048 | | | | | | 24,040 | | |
Total segments | | | | | 564,062 | | | | | | 549,523 | | |
Corporate | | | | | 114,413 | | | | | | 122,156 | | |
Total | | | | $ | 678,475 | | | | | $ | 671,679 | | |
|
| | | 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 | | | Three Months | | ||||||||||||||||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2018 | | 2017 | | Change | | | 2019 | | 2018 | | Change | | ||||||||||||||||||||||||||||||||||||
| | (in thousands, except per share amounts and percentages) | | | (in thousands, except per share amounts and percentages) | | ||||||||||||||||||||||||||||||||||||||||||||
Net sales | | | $ | 200,153 | | | | $ | 193,412 | | | | $ | 6,741 | | | | | 3% | | | | | $ | 189,720 | | | | $ | 200,153 | | | | $ | (10,433) | | | | | (5)% | | | ||||||||
Gross profit | | | | 65,805 | | | | | 63,382 | | | | | 2,423 | | | | | 4% | | | | | | 57,663 | | | | | 65,805 | | | | | (8,142) | | | | | (12)% | | | ||||||||
Selling, general and administrative expenses | | | | 42,952 | | | | | 40,995 | | | | | 1,957 | | | | | 5% | | | | | | 47,516 | | | | | 42,952 | | | | | 4,564 | | | | | 11% | | | ||||||||
Operating income | | | | 22,853 | | | | | 22,387 | | | | | 466 | | | | | 2% | | | | ��� | | 10,147 | | | | | 22,853 | | | | | (12,706) | | | | | (56)% | | | ||||||||
Interest expense, net | | | | 2,783 | | | | | 3,118 | | | | | (335) | | | | | (11)% | | | | | | 3,354 | | | | | 2,783 | | | | | 571 | | | | | 21% | | | ||||||||
Foreign currency (gains) losses, net | | | | (2,635) | | | | | 325 | | | | | (2,960) | | | | | * | | | | | | 3,221 | | | | | (2,635) | | | | | 5,856 | | | | | * | | | ||||||||
Income before income taxes | | | | 22,705 | | | | | 18,944 | | | | | 3,761 | | | | | 20% | | | | | | 3,572 | | | | | 22,705 | | | | | (19,133) | | | | | (84)% | | | ||||||||
Provision for income taxes | | | | 6,391 | | | | | 3,052 | | | | | 3,339 | | | | | 109% | | | | | | 1,057 | | | | | 6,391 | | | | | (5,334) | | | | | (83)% | | | ||||||||
Net income | | | $ | 16,314 | | | | $ | 15,892 | | | | $ | 422 | | | | | 3% | | | | | $ | 2,515 | | | | $ | 16,314 | | | | $ | (13,799) | | | | | (85)% | | | ||||||||
Net income per share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
basic | | | $ | 0.40 | | | | $ | 0.40 | | | | | — | | | | | | | | | | $ | 0.06 | | | | $ | 0.40 | | | | $ | (0.34) | | | | | | | | ||||||||
diluted | | | $ | 0.40 | | | | $ | 0.39 | | | | $ | 0.01 | | | | | | | | | | $ | 0.06 | | | | $ | 0.40 | | | | $ | (0.34) | | | | | | | | ||||||||
Weighted average number of shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
basic | | | | 40,369 | | | | | 39,944 | | | | | | | | | | | | | | | | 40,454 | | | | | 40,369 | | | | | | | | | | | | | ||||||||
diluted | | | | 40,560 | | | | | 40,293 | | | | | | | | | | | | | | | | 40,504 | | | | | 40,560 | | | | | | | | | | | | | ||||||||
Ratio to net sales | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Gross profit | | | | 32.9% | | | | | 32.8% | | | | | | | | | | | | | | | | 30.4% | | | | | 32.9% | | | | | | | | | | | | | ||||||||
Selling, general and administrative expenses | | | | 21.5% | | | | | 21.2% | | | | | | | | | | | | | | | | 25.0% | | | | | 21.5% | | | | | | | | | | | | | ||||||||
Operating income | | | | 11.4% | | | | | 11.6% | | | | | | | | | | | | | | | | 5.3% | | | | | 11.4% | | | | | | | | | | | | | ||||||||
Income before income taxes | | | | 11.3% | | | | | 9.8% | | | | | | | | | | | | | | | | 1.9% | | | | | 11.3% | | | | | | | | | | | | | ||||||||
Net income | | | | 8.2% | | | | | 8.2% | | | | | | | | | | | | | | | | 1.3% | | | | | 8.2% | | | | | | | | | | | | | ||||||||
Effective tax rate | | | | 28.1% | | | | | 16.1% | | | | | | | | | | | | | | | | 29.6% | | | | | 28.1% | | | | | | | | | | | | |
| | Three Months | | | Three Months | | ||||||||||||||||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2018 | | 2017 | | Change | | | 2019 | | 2018 | | Change | | ||||||||||||||||||||||||||||||||||||
| | (in thousands, except percentages) | | | (in thousands, except percentages) | | ||||||||||||||||||||||||||||||||||||||||||||
Net sales | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||
MFAs and other | | | $ | 87,004 | | | | $ | 79,603 | | | | $ | 7,401 | | | | | 9% | | | | | $ | 75,034 | | | | $ | 87,004 | | | | $ | (11,970) | | | | | (14)% | | | ||||||||
Nutritional specialties | | | | 26,970 | | | | | 30,777 | | | | | (3,807) | | | | | (12)% | | | | | | 30,433 | | | | | 26,970 | | | | | 3,463 | | | | | 13% | | | ||||||||
Vaccines | | | | 17,215 | | | | | 18,461 | | | | | (1,246) | | | | | (7)% | | | | | | 16,383 | | | | | 17,215 | | | | | (832) | | | | | (5)% | | | ||||||||
Animal Health | | | | 131,189 | | | | | 128,841 | | | | | 2,348 | | | | | 2% | | | | | | 121,850 | | | | | 131,189 | | | | | (9,339) | | | | | (7)% | | | ||||||||
Mineral Nutrition | | | | 54,838 | | | | | 52,073 | | | | | 2,765 | | | | | 5% | | | | | | 52,649 | | | | | 54,838 | | | | | (2,189) | | | | | (4)% | | | ||||||||
Performance Products | | | | 14,126 | | | | | 12,498 | | | | | 1,628 | | | | | 13% | | | | | | 15,221 | | | | | 14,126 | | | | | 1,095 | | | | | 8% | | | ||||||||
Total | | | $ | 200,153 | | | | $ | 193,412 | | | | $ | 6,741 | | | | | 3% | | | | | $ | 189,720 | | | | $ | 200,153 | | | | $ | (10,433) | | | | | (5)% | | | ||||||||
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Animal Health | | | $ | 35,716 | | | | $ | 33,742 | | | | $ | 1,974 | | | | | 6% | | | | | $ | 25,061 | | | | $ | 35,716 | | | | $ | (10,655) | | | | | (30)% | | | ||||||||
Mineral Nutrition | | | | 2,563 | | | | | 3,716 | | | | | (1,153) | | | | | (31)% | | | | | | 3,475 | | | | | 2,563 | | | | | 912 | | | | | 36% | | | ||||||||
Performance Products | | | | 716 | | | | | 248 | | | | | 468 | | | | | 189% | | | | | | 852 | | | | | 716 | | | | | 136 | | | | | 19% | | | ||||||||
Corporate | | | | (8,886) | | | | | (7,589) | | | | | (1,297) | | | | | * | | | | | | (9,728) | | | | | (8,886) | | | | | (842) | | | | | * | | | ||||||||
Total | | | $ | 30,109 | | | | $ | 30,117 | | | | $ | (8) | | | | | (0)% | | | | | $ | 19,660 | | | | $ | 30,109 | | | | $ | (10,449) | | | | | (35)% | | | ||||||||
Adjusted EBITDA ratio to segment net sales | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Animal Health | | | | 27.2% | | | | | 26.2% | | | | | | | | | | | | | | | | 20.6% | | | | | 27.2% | | | | | | | | | | | | | ||||||||
Mineral Nutrition | | | | 4.7% | | | | | 7.1% | | | | | | | | | | | | | | | | 6.6% | | | | | 4.7% | | | | | | | | | | | | | ||||||||
Performance Products | | | | 5.1% | | | | | 2.0% | | | | | | | | | | | | | | | | 5.6% | | | | | 5.1% | | | | | | | | | | | | | ||||||||
Corporate(1) | | | | (4.4)% | | | | | (3.9)% | | | | | | | | | | | | | | | | (5.1)% | | | | | (4.4)% | | | | | | | | | | | | | ||||||||
Total(1) | | | | 15.0% | | | | | 15.6% | | | | | | | | | | | | | | | | 10.4% | | | | | 15.0% | | | | | | | | | | | | |
| | Three Months | | | Three Months | | ||||||||||||||||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2018 | | 2017 | | Change | | | 2019 | | 2018 | | Change | | ||||||||||||||||||||||||||||||||||||
| | (in thousands, except percentages) | | | (in thousands, except percentages) | | ||||||||||||||||||||||||||||||||||||||||||||
Net income | | | $ | 16,314 | | | | $ | 15,892 | | | | $ | 422 | | | | | 3% | | | | | $ | 2,515 | | | | $ | 16,314 | | | | $ | (13,799) | | | | | (85)% | | | ||||||||
Interest expense, net | | | | 2,783 | | | | | 3,118 | | | | | (335) | | | | | (11)% | | | | | | 3,354 | | | | | 2,783 | | | | | 571 | | | | | 21% | | | ||||||||
Provision (benefit) for income taxes | | | | 6,391 | | | | | 3,052 | | | | | 3,339 | | | | | 109% | | | |||||||||||||||||||||||||||||
Provision for income taxes | | | | 1,057 | | | | | 6,391 | | | | | (5,334) | | | | | (83)% | | | |||||||||||||||||||||||||||||
Depreciation and amortization | | | | 6,691 | | | | | 6,644 | | | | | 47 | | | | | 1% | | | | | | 7,781 | | | | | 6,691 | | | | | 1,090 | | | | | 16% | | | ||||||||
EBITDA | | | | 32,179 | | | | | 28,706 | | | | | 3,473 | | | | | 12% | | | | | | 14,707 | | | | | 32,179 | | | | | (17,472) | | | | | (54)% | | | ||||||||
Restructuring costs | | | | 425 | | | | | — | | | | | 425 | | | | | * | | | |||||||||||||||||||||||||||||
Stock-based compensation | | | | 565 | | | | | — | | | | | 565 | | | | | * | | | | | | 565 | | | | | 565 | | | | | — | | | | | 0% | | | ||||||||
Acquisition-related cost of goods sold | | | | — | | | | | 249 | | | | | (249) | | | | | * | | | | | | 280 | | | | | — | | | | | 280 | | | | | * | | | ||||||||
Acquisition-related accrued compensation | | | | — | | | | | 437 | | | | | (437) | | | | | * | | | |||||||||||||||||||||||||||||
Acquisition-related transaction costs | | | | — | | | | | 400 | | | | | (400) | | | | | * | | | | | | 462 | | | | | — | | | | | 462 | | | | | * | | | ||||||||
Foreign currency (gains) losses, net | | | | (2,635) | | | | | 325 | | | | | (2,960) | | | | | * | | | | | | 3,221 | | | | | (2,635) | | | | | 5,856 | | | | | * | | | ||||||||
Adjusted EBITDA | | | $ | 30,109 | | | | $ | 30,117 | | | | $ | (8) | | | | | (0)% | | | | | $ | 19,660 | | | | $ | 30,109 | | | | $ | (10,449) | | | | | (35)% | | | ||||||||
|
| | Three Months | | | | Three Months | | ||||||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2018 | | 2017 | | Change | | | | 2019 | | 2018 | | Change | | ||||||||||||||||||||||||||
| | (in thousands) | | | | (in thousands) | | ||||||||||||||||||||||||||||||||||
Cash provided by/(used in): | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
Operating activities | | | $ | 1,280 | | | | $ | 4,803 | | | | $ | (3,523) | | | | | | $ | (3,570) | | | | $ | 1,280 | | | | $ | (4,850) | | | ||||||||
Investing activities | | | | (16,149) | | | | | (16,832) | | | | | 683 | | | | | | | (62,531) | | | | | (16,149) | | | | | (46,382) | | | ||||||||
Financing activities | | | | 11,734 | | | | | 17,845 | | | | | (6,111) | | | | | | | 63,931 | | | | | 11,734 | | | | | 52,197 | | | ||||||||
Effect of exchange-rate changes on cash and cash equivalents | | | | (173) | | | | | 198 | | | | | (371) | | | | | | | (510) | | | | | (173) | | | | | (337) | | | ||||||||
Net increase/(decrease) in cash and cash equivalents | | | $ | (3,308) | | | | $ | 6,014 | | | | $ | (9,322) | | | | | | $ | (2,680) | | | | $ | (3,308) | | | | $ | 628 | | | ||||||||
|
| | Three Months | | | Three Months | | ||||||||||||||||||||||||||||||||
For the Periods Ended September 30 | | 2018 | | 2017 | | Change | | | 2019 | | 2018 | | Change | | ||||||||||||||||||||||||
| | (in thousands) | | | (in thousands) | | ||||||||||||||||||||||||||||||||
EBITDA | | ��� | $ | 32,179 | | | | $ | 28,706 | | | | $ | 3,473 | | | | | $ | 14,707 | | | | $ | 32,179 | | | | $ | (17,472) | | | ||||||
Adjustments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Restructuring costs | | | | 425 | | | | | — | | | | | 425 | | | ||||||||||||||||||||||
Stock-based compensation | | | | 565 | | | | | — | | | | | 565 | | | | | | 565 | | | | | 565 | | | | | — | | | ||||||
Acquisition-related cost of goods sold | | | | — | | | | | 249 | | | | | (249) | | | | | | 280 | | | | | — | | | | | 280 | | | ||||||
Acquisition-related accrued compensation | | | | — | | | | | 437 | | | | | (437) | | | ||||||||||||||||||||||
Acquisition-related transaction costs | | | | — | | | | | 400 | | | | | (400) | | | | | | 462 | | | | | — | | | | | 462 | | | ||||||
Foreign currency (gains) losses, net | | | | (2,635) | | | | | 325 | | | | | (2,960) | | | | | | 3,221 | | | | | (2,635) | | | | | 5,856 | | | ||||||
Interest paid | | | | (2,732) | | | | | (2,679) | | | | | (53) | | | | | | (3,201) | | | | | (2,732) | | | | | (469) | | | ||||||
Income taxes paid | | | | (5,817) | | | | | (4,039) | | | | | (1,778) | | | | | | (4,657) | | | | | (5,817) | | | | | 1,160 | | | ||||||
Changes in operating assets and liabilities and other items | | | | (20,280) | | | | | (18,196) | | | | | (2,084) | | | | | | (14,910) | | | | | (20,280) | | | | | 4,908 | | | ||||||
Cash used for acquisition-related transaction costs | | | | — | | | | | (400) | | | | | 400 | | | | | | (462) | | | | | — | | | | | (462) | | | ||||||
Net cash provided (used) by operating activities | | | $ | 1,280 | | | | $ | 4,803 | | | | $ | (3,523) | | | | | $ | (3,570) | | | | $ | 1,280 | | | | $ | (4,850) | | | ||||||
|
As of | | September 30, 2018 | | June 30, 2018 | | Change | | | September 30, 2019 | | June 30, 2019 | | ||||||||||||||||||||
| | (in thousands, except ratios) | | | (in thousands, except ratios) | | ||||||||||||||||||||||||||
Cash and cash equivalents and short-term investments | | | $ | 75,860 | | | | $ | 79,168 | | | | $ | (3,308) | | | | | $ | 78,893 | | | | $ | 81,573 | | | |||||
Working capital | | | | 227,782 | | | | | 205,651 | | | | | 22,431 | | | | | | 248,730 | | | | | 242,902 | | | |||||
Ratio of current assets to current liabilities | | | | 2.96:1 | | | | | 2.57:1 | | | | | | | | | | | 2.94:1 | | | | | 2.71:1 | | |
| | | | Phibro Animal Health Corporation | | |||
| November | | | By: | | | /s/ Jack C. Bendheim Jack C. Bendheim Chairman, President and Chief Executive Officer | |
| November | | | By: | | | /s/ Richard G. Johnson Richard G. Johnson Chief Financial Officer | |