|
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) |
|
|
Class A Common Stock, $0.0001 par value per share
(Title of each class) |
| |
NASDAQ Stock Market
(Name of each exchange on which registered) |
|
| Large accelerated filer | | | ☐ | | | | | | Accelerated filer | | | ☒ | |
| Non-accelerated filer | | | ☐ | | | | | | Smaller reporting company | | | ☐ | |
| | |
Page
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| | | | 3 | | | |
| | | | 4 | | | |
| | | | 5 | | | |
| | | | 5 | | | |
PART I | | ||||||
| | | | 6 | | | |
| | | | 26 | | | |
| | | | 49 | | | |
| | | | 50 | | | |
| | | | 50 | | | |
| | | | 50 | | | |
PART II | | ||||||
| | | | 51 | | | |
| | | | 53 | | | |
| | | | 55 | | | |
| | | | 74 | | | |
| | | | 76 | | | |
| | | | 112 | | | |
| | | | 112 | | | |
| | | | 113 | | | |
PART III | | ||||||
| | | | 114 | | | |
| | | | 114 | | | |
| | | | 114 | | | |
| | | | 114 | | | |
| | | | 114 | | | |
PART IV | | ||||||
| | | | 115 | | | |
| | | | 116 | | |
| | |
Segments
|
| |
Change
|
| |
Percentage of total
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |
2016
|
| |
2015
|
| |
2014
|
| ||||||||||||||||||||||||||||||||||||
| | |
($ in millions)
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
Animal Health
|
| | | $ | 486 | | | | | $ | 471 | | | | | $ | 431 | | | | | $ | 15 | | | | |
|
3%
|
| | | | $ | 40 | | | | |
|
9%
|
| | | |
|
65%
|
| | | |
|
63%
|
| | | |
|
62%
|
| |
Mineral Nutrition
|
| | | | 217 | | | | | | 227 | | | | | | 202 | | | | | | (10) | | | | |
|
(5)%
|
| | | | | 26 | | | | |
|
13%
|
| | | |
|
29%
|
| | | |
|
30%
|
| | | |
|
29%
|
| |
Performance Products
|
| | | | 49 | | | | | | 51 | | | | | | 59 | | | | | | (2) | | | | |
|
(4)%
|
| | | | | (9) | | | | |
|
(14)%
|
| | | |
|
6%
|
| | | |
|
7%
|
| | | |
|
9%
|
| |
Total
|
| | | $ | 752 | | | | | $ | 749 | | | | | $ | 692 | | | | | $ | 3 | | | | |
|
0%
|
| | | | $ | 57 | | | | |
|
8%
|
| | | | | | | | | | | | | | | | | | | |
|
| | |
Species
|
| |
Change
|
| |
Percentage of total
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |
2016
|
| |
2015
|
| |
2014
|
| ||||||||||||||||||||||||||||||||||||
| | |
($ in millions)
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
Poultry
|
| | | $ | 292 | | | | | $ | 280 | | | | | $ | 284 | | | | | $ | 12 | | | | |
|
4%
|
| | | | $ | (4) | | | | |
|
(2)%
|
| | | |
|
39%
|
| | | |
|
37%
|
| | | |
|
41%
|
| |
Swine
|
| | | | 100 | | | | | | 102 | | | | | | 90 | | | | | | (1) | | | | |
|
(1)%
|
| | | | | 12 | | | | |
|
13%
|
| | | |
|
13%
|
| | | |
|
14%
|
| | | |
|
13%
|
| |
Dairy
|
| | | | 146 | | | | | | 135 | | | | | | 120 | | | | | | 12 | | | | |
|
9%
|
| | | | | 15 | | | | |
|
12%
|
| | | |
|
19%
|
| | | |
|
18%
|
| | | |
|
17%
|
| |
Cattle
|
| | | | 96 | | | | | | 100 | | | | | | 83 | | | | | | (4) | | | | |
|
(4)%
|
| | | | | 17 | | | | |
|
20%
|
| | | |
|
13%
|
| | | |
|
13%
|
| | | |
|
12%
|
| |
Other(1) | | | | | 116 | | | | | | 132 | | | | | | 115 | | | | | | (16) | | | | |
|
(12)%
|
| | | | | 17 | | | | |
|
15%
|
| | | |
|
15%
|
| | | |
|
18%
|
| | | |
|
17%
|
| |
Total
|
| | | $ | 752 | | | | | $ | 749 | | | | | $ | 692 | | | | | $ | 3 | | | | |
|
0%
|
| | | | $ | 57 | | | | |
|
8%
|
| | | | | | | | | | | | | | | | | | | |
|
| | |
Regions(2)
|
| |
Change
|
| |
Percentage of total
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |
2016
|
| |
2015
|
| |
2014
|
| ||||||||||||||||||||||||||||||||||||
| | |
($ in millions)
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
U.S. & Canada
|
| | | $ | 493 | | | | | $ | 483 | | | | | $ | 445 | | | | | $ | 9 | | | | |
|
2%
|
| | | | $ | 38 | | | | |
|
9%
|
| | | |
|
66%
|
| | | |
|
65%
|
| | | |
|
64%
|
| |
Brazil & Latin America
|
| | | | 109 | | | | | | 107 | | | | | | 92 | | | | | | 2 | | | | |
|
2%
|
| | | | | 15 | | | | |
|
17%
|
| | | |
|
15%
|
| | | |
|
14%
|
| | | |
|
13%
|
| |
China & Asia Pacific
|
| | | | 61 | | | | | | 61 | | | | | | 62 | | | | | | (1) | | | | |
|
(1)%
|
| | | | | (1) | | | | |
|
(1)%
|
| | | |
|
8%
|
| | | |
|
8%
|
| | | |
|
9%
|
| |
Israel & Other
|
| | | | 89 | | | | | | 97 | | | | | | 93 | | | | | | (8) | | | | |
|
(8)%
|
| | | | | 4 | | | | |
|
4%
|
| | | |
|
12%
|
| | | |
|
13%
|
| | | |
|
13%
|
| |
Total
|
| | | $ | 752 | | | | | $ | 749 | | | | | $ | 692 | | | | | $ | 3 | | | | |
|
0%
|
| | | | $ | 57 | | | | |
|
8%
|
| | | | | | | | | | | | | | | | | | | |
|
| | |
Adjusted EBITDA(1)
|
| |
Change
|
| |
Percentage of total(2)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |
2016
|
| |
2015
|
| |
2014
|
| ||||||||||||||||||||||||||||||||||||
| | |
($ in millions)
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
Animal Health
|
| | | $ | 127 | | | | | $ | 120 | | | | | $ | 100 | | | | | $ | 7 | | | | |
|
6%
|
| | | | $ | 20 | | | | |
|
20%
|
| | | |
|
89%
|
| | | |
|
88%
|
| | | |
|
86%
|
| |
Mineral Nutrition
|
| | | | 15 | | | | | | 14 | | | | | | 12 | | | | | | 1 | | | | |
|
4%
|
| | | | | 3 | | | | |
|
24%
|
| | | |
|
10%
|
| | | |
|
11%
|
| | | |
|
10%
|
| |
Performance Products
|
| | | | 1 | | | | | | 3 | | | | | | 5 | | | | | | (2) | | | | |
|
(63)%
|
| | | | | (2) | | | | |
|
(43)%
|
| | | |
|
1%
|
| | | |
|
2%
|
| | | |
|
4%
|
| |
Corporate
|
| | | | (29) | | | | | | (27) | | | | | | (26) | | | | | | (2) | | | | |
|
*
|
| | | | | (1) | | | | |
|
*
|
| | | | | |||||||||||||||
Total
|
| | | $ | 114 | | | | | $ | 110 | | | | | $ | 91 | | | | | $ | 4 | | | | |
|
4%
|
| | | | $ | 19 | | | | |
|
21%
|
| | | | | | | | | | | | | | | | | | | |
|
| | |
Net Identifiable Assets
|
| |
Change
|
| |
Percentage of total
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |
2016
|
| |
2015
|
| |
2014
|
| ||||||||||||||||||||||||||||||||||||
| | |
($ in millions)
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
Animal Health
|
| | | $ | 445 | | | | | $ | 349 | | | | | $ | 349 | | | | | $ | 95 | | | | |
|
27%
|
| | | | $ | 1 | | | | |
|
0%
|
| | | |
|
73%
|
| | | |
|
71%
|
| | | |
|
74%
|
| |
Mineral Nutrition
|
| | | | 58 | | | | | | 59 | | | | | | 57 | | | | | | (1) | | | | |
|
(1)%
|
| | | | | 1 | | | | |
|
2%
|
| | | |
|
9%
|
| | | |
|
12%
|
| | | |
|
12%
|
| |
Performance Products
|
| | | | 22 | | | | | | 22 | | | | | | 23 | | | | | | (0) | | | | |
|
(2)%
|
| | | | | (1) | | | | |
|
(5)%
|
| | | |
|
4%
|
| | | |
|
4%
|
| | | |
|
5%
|
| |
Corporate
|
| | | | 86 | | | | | | 63 | | | | | | 43 | | | | | | 23 | | | | |
|
36%
|
| | | | | 20 | | | | |
|
46%
|
| | | |
|
14%
|
| | | |
|
13%
|
| | | |
|
9%
|
| |
Total
|
| | | $ | 610 | | | | | $ | 493 | | | | | $ | 472 | | | | | $ | 117 | | | | |
|
24%
|
| | | | $ | 21 | | | | |
|
4%
|
| | | | | | | | | | | | | | | | | | | |
|
| | |
Product Groups
|
| |
Change
|
| |
Percentage of total
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |
2016
|
| |
2015
|
| |
2014
|
| ||||||||||||||||||||||||||||||||||||
| | |
($ in millions)
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
MFAs and other
|
| | | $ | 340 | | | | | $ | 336 | | | | | $ | 327 | | | | | $ | 4 | | | | |
|
1%
|
| | | | $ | 9 | | | | |
|
3%
|
| | | |
|
70%
|
| | | |
|
71%
|
| | | |
|
76%
|
| |
Nutritional specialties
|
| | | | 94 | | | | | | 82 | | | | | | 63 | | | | | | 12 | | | | |
|
15%
|
| | | | | 19 | | | | |
|
30%
|
| | | |
|
19%
|
| | | |
|
17%
|
| | | |
|
15%
|
| |
Vaccines
|
| | | | 52 | | | | | | 53 | | | | | | 41 | | | | | | (1) | | | | |
|
(2)%
|
| | | | | 12 | | | | |
|
29%
|
| | | |
|
11%
|
| | | |
|
11%
|
| | | |
|
10%
|
| |
Animal Health
|
| | | $ | 486 | | | | | $ | 471 | | | | | $ | 431 | | | | | $ | 15 | | | | |
|
3%
|
| | | | $ | 40 | | | | |
|
9%
|
| | | | | | | | | | | | | | | | | | | |
|
| | |
Regions(1)
|
| |
Change
|
| |
Percentage of total
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |
2016
|
| |
2015
|
| |
2014
|
| ||||||||||||||||||||||||||||||||||||
| | |
($ in millions)
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
U.S. & Canada
|
| | | $ | 235 | | | | | $ | 219 | | | | | $ | 195 | | | | | $ | 17 | | | | |
|
8%
|
| | | | $ | 24 | | | | |
|
12%
|
| | | |
|
48%
|
| | | |
|
46%
|
| | | |
|
45%
|
| |
Brazil & Latin America
|
| | | | 104 | | | | | | 99 | | | | | | 85 | | | | | | 6 | | | | |
|
6%
|
| | | | | 14 | | | | |
|
16%
|
| | | |
|
21%
|
| | | |
|
21%
|
| | | |
|
20%
|
| |
China & Asia Pacific
|
| | | | 61 | | | | | | 61 | | | | | | 62 | | | | | | (1) | | | | |
|
(1)%
|
| | | | | (1) | | | | |
|
(1)%
|
| | | |
|
12%
|
| | | |
|
13%
|
| | | |
|
14%
|
| |
Israel & Other
|
| | | | 86 | | | | | | 92 | | | | | | 89 | | | | | | (6) | | | | |
|
(7)%
|
| | | | | 3 | | | | |
|
4%
|
| | | |
|
18%
|
| | | |
|
20%
|
| | | |
|
21%
|
| |
Total
|
| | | $ | 486 | | | | | $ | 471 | | | | | $ | 431 | | | | | $ | 15 | | | | |
|
3%
|
| | | | $ | 40 | | | | |
|
9%
|
| | | | | | | | | | | | | | | | | | | |
|
Product
|
| |
Active Ingredient
|
| |
Market Entry of
Active Ingredient |
| |
Description
|
|
Terramycin®/TM-50®/TM-100™ | | | oxytetracycline | | |
1951
|
| | Antibacterial with multiple applications for a wide number of species | |
Nicarb® | | | nicarbazin | | |
1954
|
| | Anticoccidial for poultry | |
amprolium | | | amprolium | | |
1960
|
| | Anticoccidial for poultry and cattle | |
Bloat Guard® | | | poloxalene | | |
1967
|
| | Anti-bloat treatment for cattle | |
Banminth® | | | pyrantel tartrate | | |
1972
|
| | Anthelmintic for livestock | |
Mecadox® | | | carbadox | | |
1972
|
| | Antibacterial for swine to control Salmonellosis and dysentery | |
Stafac®/Eskalin™/V-Max® | | | virginiamycin | | |
1975
|
| | Antibacterial used to prevent and control diseases in poultry, swine and cattle | |
Coxistac™/Posistac™ | | | salinomycin | | |
1979
|
| | Anticoccidial for poultry and cattle; disease preventative in swine | |
Product
|
| |
Active Ingredient
|
| |
Market Entry of
Active Ingredient |
| |
Description
|
|
Rumatel® | | | morantel tartrate | | |
1981
|
| | Anthelmintic for livestock | |
Cerditac™/Cerdimix™ | | | oxibendazole | | |
1982
|
| | Anthelmintic for livestock | |
Aviax®/Aviax II™ | | | semduramicin | | |
1995
|
| | Anticoccidial for poultry | |
Neo-Terramycin®/Neo-TM™ | | | oxytetracycline + neomycin | | |
1999
|
| | Combination of two antibacterials with multiple applications for a wide number of species | |
Aviax Plus™ | | | semduramicin + nicarbazin | | |
2010
|
| | Anticoccidial for poultry | |
Product
|
| |
Market
Entry |
| |
Description
|
|
AB20® | | |
1989
|
| | Natural flow agent that improves overall feed quality | |
Chromax® | | |
1992
|
| | Source of organic chromium used to optimize swine production through reproductive efficiency | |
Biosaf® | | |
1997
|
| | Heat stable live-cell yeast that optimizes production efficiency | |
Procreatin 7® | | |
1997
|
| | Live-cell yeast product for ruminant nutrition | |
Animate® | | |
1999
|
| | Maintains proper blood calcium levels in dairy cows during critical transition period | |
Safmannan® | | |
2000
|
| | Yeast cell wall components that inhibit pathogen proliferation in poultry and young livestock | |
OmniGen-AF® | | |
2004
|
| | Optimizes immune status in dairy cows | |
Provia 6086™ | | |
2013
|
| | Direct fed microbial for all classes of livestock | |
Magni-Phi® | | |
2015
|
| | Proprietary blend that improves immune response to enhance absorption and utilization of nutrients for poultry | |
Product
|
| |
Market
Entry |
| |
Description
|
|
TAbic M.B. | | |
2004
|
| | Live vaccine for the prevention of Infectious Bursal Disease in poultry | |
TAbic IB VAR | | |
2009
|
| | Live vaccine for the prevention of Infectious Bronchitis variant 1 strain 233A in poultry | |
TAbic IB VAR206 | | |
2010
|
| | Live vaccine for the prevention of Infectious Bronchitis variant 206 in poultry | |
V.H.® | | |
1974
|
| | Live vaccine for the prevention of Newcastle Disease in poultry | |
MJPRRS® | | |
2007
|
| | Autogenous vaccine for the prevention of PRRS in swine | |
SRP® Autogenous Vaccines | | |
2014
|
| | Autogenous vaccines using Epitopix’s proprietary SRP vaccine technology for prevention of various diseases in chickens including Salmonella and E. coli bacteria | |
Business Segment(s)
|
| |
Location
|
| |
Owned/Leased
|
| |
Approx. sq.
Footage |
| |
Purpose(s)
|
|
Animal Health | | | Beit Shemesh, Israel | | | Owned/land lease | | | 56,000 | | | Manufacturing and Research | |
Animal Health | | |
Braganca Paulista, Brazil
|
| | Owned | | | 44,000 | | | Manufacturing and Administrative | |
Animal Health | | | Corvallis, Oregon | | | Owned | | | 5,000 | | | Research | |
Animal Health | | | Guarulhos, Brazil | | | Owned | | | 1,294,000 | | | Manufacturing, Sales, Premixing, Research and Administrative | |
Animal Health | | | Neot Hovav, Israel | | | Owned/land lease | | | 140,000 | | | Manufacturing and Research | |
Mineral Nutrition
|
| | Omaha, Nebraska | | | Owned | | | 84,000 | | | Manufacturing | |
Animal Health | | | Omaha, Nebraska | | | Owned | | | 36,000 | | | Manufacturing, Sales and Research | |
Animal Health | | | Petach Tikva, Israel | | | Owned | | | 60,000 | | | Manufacturing | |
Animal Health and Mineral Nutrition | | | Quincy, Illinois | | | Owned | | | 325,000 | | | Manufacturing, Sales, Research and Administrative | |
Performance Products | | | Santa Fe Springs, California | | | Owned | | | 108,000 | | | Manufacturing | |
Animal Health | | | State College, Pennsylvania | | | Owned | | | 13,000 | | | Research | |
Animal Health | | | St. Paul, Minnesota | | | Leased | | | 4,000 | | | Research | |
Corporate | | | Teaneck, New Jersey | | | Leased | | | 50,000 | | | Corporate and Administrative | |
Quarter Ended
|
| |
High
|
| |
Low
|
| ||||||
September 30, 2014
|
| | | $ | 23.12 | | | | | $ | 17.82 | | |
December 31, 2014
|
| | | $ | 33.89 | | | | | $ | 21.01 | | |
March 31, 2015
|
| | | $ | 37.56 | | | | | $ | 26.95 | | |
June 30, 2015
|
| | | $ | 39.14 | | | | | $ | 31.29 | | |
Quarter Ended
|
| | | ||||||||||
September 30, 2015
|
| | | $ | 40.54 | | | | | $ | 30.11 | | |
December 31, 2015
|
| | | $ | 34.65 | | | | | $ | 29.75 | | |
March 31, 2016
|
| | | $ | 35.69 | | | | | $ | 23.21 | | |
June 30, 2016
|
| | | $ | 27.99 | | | | | $ | 16.80 | | |
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||
| | |
(in thousands, except per share amounts)
|
| |||||||||||||||||||||||||||
Results of operations data | | | | | | | |||||||||||||||||||||||||
Net sales
|
| | | $ | 751,526 | | | | | $ | 748,591 | | | | | $ | 691,914 | | | | | $ | 653,151 | | | | | $ | 654,101 | | |
Cost of goods sold
|
| | | | 512,494 | | | | | | 515,311 | | | | | | 487,500 | | | | | | 476,307 | | | | | | 491,045 | | |
Gross profit
|
| | | | 239,032 | | | | | | 233,280 | | | | | | 204,414 | | | | | | 176,844 | | | | | | 163,056 | | |
Selling, general and administrative expenses
|
| | | | 153,288 | | | | | | 145,612 | | | | | | 140,620 | | | | | | 120,113 | | | | | | 113,731 | | |
Operating income
|
| | | | 85,744 | | | | | | 87,668 | | | | | | 63,794 | | | | | | 56,731 | | | | | | 49,325 | | |
Interest expense, net
|
| | | | 16,592 | | | | | | 14,305 | | | | | | 32,962 | | | | | | 35,629 | | | | | | 35,419 | | |
Foreign currency (gains) losses, net
|
| | | | (7,609) | | | | | | (5,400) | | | | | | 1,753 | | | | | | 3,103 | | | | | | 1,192 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | — | | | | | | 22,771 | | | | | | — | | | | | | — | | |
Other (income) expense, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | 151 | | | | | | (400) | | |
Income before income taxes
|
| | | | 76,761 | | | | | | 78,763 | | | | | | 6,308 | | | | | | 17,848 | | | | | | 13,114 | | |
Provision (benefit) for income taxes
|
| | | | (5,967) | | | | | | 18,483 | | | | | | 9,435 | | | | | | (7,043) | | | | | | 6,138 | | |
Net income (loss)
|
| | | $ | 82,728 | | | | | $ | 60,280 | | | | | $ | (3,127) | | | | | $ | 24,891 | | | | | $ | 6,976 | | |
Net income (loss) per share | | | | | | | |||||||||||||||||||||||||
basic
|
| | | $ | 2.11 | | | | | $ | 1.55 | | | | | $ | (0.10) | | | | | $ | 0.82 | | | | | $ | 0.23 | | |
diluted
|
| | | $ | 2.07 | | | | | $ | 1.51 | | | | | $ | (0.10) | | | | | $ | 0.82 | | | | | $ | 0.23 | | |
Weighted average common shares outstanding | | | | | | | |||||||||||||||||||||||||
basic
|
| | | | 39,254 | | | | | | 38,969 | | | | | | 32,193 | | | | | | 30,458 | | | | | | 30,458 | | |
diluted
|
| | | | 39,962 | | | | | | 39,815 | | | | | | 32,193 | | | | | | 30,458 | | | | | | 30,458 | | |
Dividends per share
|
| | | $ | 0.40 | | | | | $ | 0.40 | | | | | $ | 0.82 | | | | | $ | 0.10 | | | | | $ | — | | |
Other financial data | | | | | | | |||||||||||||||||||||||||
Adjusted EBITDA(1)
|
| | | $ | 114,060 | | | | | $ | 110,019 | | | | | $ | 90,597 | | | | | $ | 75,754 | | | | | $ | 66,852 | | |
Cash provided (used) by operating activities(2)
|
| | | | 37,218 | | | | | | 68,704 | | | | | | (712) | | | | | | 1,437 | | | | | | 31,988 | | |
Capital expenditures
|
| | | | 36,352 | | | | | | 20,058 | | | | | | 19,846 | | | | | | 19,947 | | | | | | 14,824 | | |
As of June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Balance sheet data | | | | | | | |||||||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 33,605 | | | | | $ | 29,216 | | | | | $ | 11,821 | | | | | $ | 27,369 | | | | | $ | 53,900 | | |
Working capital(3)
|
| | | | 203,356 | | | | | | 175,988 | | | | | | 177,999 | | | | | | 153,677 | | | | | | 127,472 | | |
Total assets
|
| | | | 610,373 | | | | | | 493,318 | | | | | | 472,323 | | | | | | 474,142 | | | | | | 440,908 | | |
Total debt(4)
|
| | | | 352,710 | | | | | | 289,518 | | | | | | 289,391 | | | | | | 365,604 | | | | | | 350,121 | | |
Long-term debt and other liabilities
|
| | | | 411,220 | | | | | | 352,357 | | | | | | 344,736 | | | | | | 427,676 | | | | | | 403,271 | | |
Total stockholders’ equity (deficit)
|
| | | | 90,480 | | | | | | 29,628 | | | | | | 15,149 | | | | | | (68,938) | | | | | | (88,228) | | |
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Net income (loss)
|
| | | $ | 82,728 | | | | | $ | 60,280 | | | | | $ | (3,127) | | | | | $ | 24,891 | | | | | $ | 6,976 | | |
Plus: | | | | | | | |||||||||||||||||||||||||
Interest expense, net
|
| | | | 16,592 | | | | | | 14,305 | | | | | | 32,962 | | | | | | 35,629 | | | | | | 35,419 | | |
Provision (benefit) for income taxes
|
| | | | (5,967) | | | | | | 18,483 | | | | | | 9,435 | | | | | | (7,043) | | | | | | 6,138 | | |
Depreciation and amortization
|
| | | | 23,452 | | | | | | 21,604 | | | | | | 21,453 | | | | | | 19,023 | | | | | | 17,527 | | |
EBITDA
|
| | | | 116,805 | | | | | | 114,672 | | | | | | 60,723 | | | | | | 72,500 | | | | | | 66,060 | | |
Acquisition-related cost of goods sold
|
| | | | 2,566 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Acquisition-related accrued compensation
|
| | | | 1,680 | | | | | | 747 | | | | | | — | | | | | | — | | | | | | — | | |
Acquisition-related transaction costs
|
| | | | 618 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loss on insurance claim
|
| | | | — | | | | | | — | | | | | | 5,350 | | | | | | — | | | | | | — | | |
Foreign currency (gains) losses, net
|
| | | | (7,609) | | | | | | (5,400) | | | | | | 1,753 | | | | | | 3,103 | | | | | | 1,192 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | — | | | | | | 22,771 | | | | | | — | | | | | | — | | |
Other (income) expense, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | 151 | | | | | | (400) | | |
Adjusted EBITDA
|
| | | $ | 114,060 | | | | | $ | 110,019 | | | | | $ | 90,597 | | | | | $ | 75,754 | | | | | $ | 66,852 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
EBITDA | | | | $ | 116,805 | | | | | $ | 114,672 | | | | | $ | 60,723 | | | | | $ | 72,500 | | | | | $ | 66,060 | | |
Acquisition-related cost of goods sold
|
| | | | 2,566 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Acquisition-related accrued compensation
|
| | | | 1,680 | | | | | | 747 | | | | | | — | | | | | | — | | | | | | — | | |
Acquisition-related transaction costs
|
| | | | 618 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loss on insurance claim
|
| | | | — | | | | | | — | | | | | | 5,350 | | | | | | — | | | | | | — | | |
Foreign currency (gains) losses, net
|
| | | | (7,609) | | | | | | (5,400) | | | | | | 1,753 | | | | | | 3,103 | | | | | | 1,192 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | — | | | | | | 22,771 | | | | | | — | | | | | | — | | |
Payment of premiums and costs on extinguished debt
|
| | | | — | | | | | | — | | | | | | (17,205) | | | | | | — | | | | | | — | | |
Other (income) expense, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | 151 | | | | | | (400) | | |
Interest paid
|
| | | | (14,215) | | | | | | (12,912) | | | | | | (45,370) | | | | | | (33,824) | | | | | | (34,059) | | |
Income taxes paid
|
| | | | (16,828) | | | | | | (10,780) | | | | | | (12,207) | | | | | | (7,061) | | | | | | (7,217) | | |
Changes in operating assets and liabilities and other items
|
| | | | (45,799) | | | | | | (17,623) | | | | | | (16,527) | | | | | | (33,432) | | | | | | 6,412 | | |
Net cash provided (used) by operating activities
|
| | | $ | 37,218 | | | | | $ | 68,704 | | | | | $ | (712) | | | | | $ | 1,437 | | | | | $ | 31,988 | | |
|
| | | | | |
Change
|
| ||||||||||||||||||||||||||||||||||||
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |||||||||||||||||||||||||||
| | |
(in thousands, except per share)
|
| |||||||||||||||||||||||||||||||||||||||
Net sales
|
| | | $ | 751,526 | | | | | $ | 748,591 | | | | | $ | 691,914 | | | | | $ | 2,935 | | | | |
|
0%
|
| | | | $ | 56,677 | | | | |
|
8%
|
| |
Gross profit
|
| | | | 239,032 | | | | | | 233,280 | | | | | | 204,414 | | | | | | 5,752 | | | | |
|
2%
|
| | | | | 28,866 | | | | |
|
14%
|
| |
Selling, general and administrative expenses
|
| | | | 153,288 | | | | | | 145,612 | | | | | | 140,620 | | | | | | 7,676 | | | | |
|
5%
|
| | | | | 4,992 | | | | |
|
4%
|
| |
Operating income
|
| | | | 85,744 | | | | | | 87,668 | | | | | | 63,794 | | | | | | (1,924) | | | | |
|
(2)%
|
| | | | | 23,874 | | | | |
|
37%
|
| |
Interest expense, net
|
| | | | 16,592 | | | | | | 14,305 | | | | | | 32,962 | | | | | | 2,287 | | | | |
|
16%
|
| | | | | (18,657) | | | | |
|
(57)%
|
| |
Foreign currency (gains) losses,
net |
| | | | (7,609) | | | | | | (5,400) | | | | | | 1,753 | | | | | | (2,209) | | | | |
|
*
|
| | | | | (7,153) | | | | |
|
*
|
| |
Loss on extinguishment of
debt |
| | | | — | | | | | | — | | | | | | 22,771 | | | | | | — | | | | |
|
*
|
| | | | | (22,771) | | | | |
|
*
|
| |
Income before income taxes
|
| | | | 76,761 | | | | | | 78,763 | | | | | | 6,308 | | | | | | (2,002) | | | | |
|
(3)%
|
| | | | | 72,455 | | | | |
|
1149%
|
| |
Provision (benefit) for income
taxes |
| | | | (5,967) | | | | | | 18,483 | | | | | | 9,435 | | | | | | (24,450) | | | | |
|
*
|
| | | | | 9,048 | | | | |
|
96%
|
| |
Net income (loss)
|
| | | $ | 82,728 | | | | | $ | 60,280 | | | | | $ | (3,127) | | | | | $ | 22,448 | | | | |
|
37%
|
| | | | $ | 63,407 | | | | |
|
*
|
| |
Net income (loss) per share | | | | | | | | | |||||||||||||||||||||||||||||||||||
basic
|
| | | $ | 2.11 | | | | | $ | 1.55 | | | | | $ | (0.10) | | | | | $ | 0.56 | | | | | | | | | | | $ | 1.65 | | | | |||||
diluted
|
| | | $ | 2.07 | | | | | $ | 1.51 | | | | | $ | (0.10) | | | | | $ | 0.56 | | | | | | | | | | | $ | 1.61 | | | | |||||
Weighted average number of shares outstanding
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
basic
|
| | | | 39,254 | | | | | | 38,969 | | | | | | 32,193 | | | | | | | ||||||||||||||||||||
diluted
|
| | | | 39,962 | | | | | | 39,815 | | | | | | 32,193 | | | | | | | ||||||||||||||||||||
Ratio to net sales | | | | | | | | | |||||||||||||||||||||||||||||||||||
Gross profit
|
| | | | 31.8% | | | | | | 31.2% | | | | | | 29.5% | | | | | | | ||||||||||||||||||||
Selling, general and administrative
expenses |
| | | | 20.4% | | | | | | 19.5% | | | | | | 20.3% | | | | | | | ||||||||||||||||||||
Operating income
|
| | | | 11.4% | | | | | | 11.7% | | | | | | 9.2% | | | | | | | ||||||||||||||||||||
Income before income taxes
|
| | | | 10.2% | | | | | | 10.5% | | | | | | 0.9% | | | | | | | ||||||||||||||||||||
Net income (loss)
|
| | | | 11.0% | | | | | | 8.1% | | | | | | (0.5)% | | | | | | | ||||||||||||||||||||
Effective tax rate
|
| | | | (7.8)% | | | | | | 23.5% | | | | | | 149.6% | | | | | | |
| | | | | |
Change
|
| ||||||||||||||||||||||||||||||||||||
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |||||||||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Net sales | | | | | | | | | |||||||||||||||||||||||||||||||||||
MFAs and other
|
| | | $ | 339,916 | | | | | $ | 335,735 | | | | | $ | 326,568 | | | | | $ | 4,181 | | | | |
|
1%
|
| | | | $ | 9,167 | | | | |
|
3%
|
| |
Nutritional specialties
|
| | | | 94,084 | | | | | | 81,702 | | | | | | 63,068 | | | | | | 12,382 | | | | |
|
15%
|
| | | | | 18,634 | | | | |
|
30%
|
| |
Vaccines
|
| | | | 52,140 | | | | | | 53,363 | | | | | | 41,417 | | | | | | (1,223) | | | | |
|
(2)%
|
| | | | | 11,946 | | | | |
|
29%
|
| |
Animal Health
|
| | | | 486,140 | | | | | | 470,800 | | | | | | 431,053 | | | | | | 15,340 | | | | |
|
3%
|
| | | | | 39,747 | | | | |
|
9%
|
| |
Mineral Nutrition
|
| | | | 216,685 | | | | | | 227,102 | | | | | | 201,599 | | | | | | (10,417) | | | | |
|
(5)%
|
| | | | | 25,503 | | | | |
|
13%
|
| |
Performance Products
|
| | | | 48,701 | | | | | | 50,689 | | | | | | 59,262 | | | | | | (1,988) | | | | |
|
(4)%
|
| | | | | (8,573) | | | | |
|
(14)%
|
| |
Total
|
| | | $ | 751,526 | | | | | $ | 748,591 | | | | | $ | 691,914 | | | | | $ | 2,935 | | | | |
|
0%
|
| | | | $ | 56,677 | | | | |
|
8%
|
| |
Adjusted EBITDA | | | | | | | | | |||||||||||||||||||||||||||||||||||
Animal Health
|
| | | $ | 127,442 | | | | | $ | 120,259 | | | | | $ | 100,280 | | | | | $ | 7,183 | | | | |
|
6%
|
| | | | $ | 19,979 | | | | |
|
20%
|
| |
Mineral Nutrition
|
| | | | 14,971 | | | | | | 14,429 | | | | | | 11,636 | | | | | | 542 | | | | |
|
4%
|
| | | | | 2,793 | | | | |
|
24%
|
| |
Performance Products
|
| | | | 970 | | | | | | 2,646 | | | | | | 4,626 | | | | | | (1,676) | | | | |
|
(63)%
|
| | | | | (1,980) | | | | |
|
(43)%
|
| |
Corporate
|
| | | | (29,323) | | | | | | (27,315) | | | | | | (25,945) | | | | | | (2,008) | | | | |
|
*
|
| | | | | (1,370) | | | | |
|
*
|
| |
Total
|
| | | $ | 114,060 | | | | | $ | 110,019 | | | | | $ | 90,597 | | | | | $ | 4,041 | | | | |
|
4%
|
| | | | $ | 19,422 | | | | |
|
21%
|
| |
Adjusted EBITDA ratio to segment net sales
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
Animal Health
|
| | | | 26.2% | | | | | | 25.5% | | | | | | 23.3% | | | | | | | ||||||||||||||||||||
Mineral Nutrition
|
| | | | 6.9% | | | | | | 6.4% | | | | | | 5.8% | | | | | | | ||||||||||||||||||||
Performance Products
|
| | | | 2.0% | | | | | | 5.2% | | | | | | 7.8% | | | | | | | ||||||||||||||||||||
Corporate(1)
|
| | |
|
(3.9)%
|
| | | |
|
(3.6)%
|
| | | |
|
(3.7%)
|
| | | | | | ||||||||||||||||||||
Total(1)
|
| | |
|
15.2%
|
| | | |
|
14.7%
|
| | | |
|
13.1%
|
| | | | | |
| | | | | |
Change
|
| ||||||||||||||||||||||||||||||||||||
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |||||||||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
| | | $ | 82,728 | | | | | $ | 60,280 | | | | | $ | (3,127) | | | | | $ | 22,448 | | | | |
|
37%
|
| | | | $ | 63,407 | | | | |
|
*
|
| |
Interest expense, net
|
| | | | 16,592 | | | | | | 14,305 | | | | | | 32,962 | | | | | | 2,287 | | | | |
|
16%
|
| | | | | (18,657) | | | | |
|
(57)%
|
| |
Provision (benefit) for income
taxes |
| | | | (5,967) | | | | | | 18,483 | | | | | | 9,435 | | | | | | (24,450) | | | | |
|
*
|
| | | | | 9,048 | | | | |
|
96%
|
| |
Depreciation and amortization
|
| | | | 23,452 | | | | | | 21,604 | | | | | | 21,453 | | | | | | 1,848 | | | | |
|
9%
|
| | | | | 151 | | | | |
|
1%
|
| |
EBITDA
|
| | | | 116,805 | | | | | | 114,672 | | | | | | 60,723 | | | | | | 2,133 | | | | |
|
2%
|
| | | | | 53,949 | | | | |
|
89%
|
| |
Acquisition-related cost of goods sold
|
| | | | 2,566 | | | | | | — | | | | | | — | | | | | | 2,566 | | | | |
|
*
|
| | | | | — | | | | |
|
*
|
| |
Acquisition-related accrued compensation
|
| | | | 1,680 | | | | | | 747 | | | | | | — | | | | | | 933 | | | | |
|
125%
|
| | | | | 747 | | | | |
|
*
|
| |
Acquisition-related transaction costs
|
| | | | 618 | | | | | | — | | | | | | — | | | | | | 618 | | | | |
|
*
|
| | | | | — | | | | |
|
*
|
| |
Loss on insurance claim
|
| | | | — | | | | | | — | | | | | | 5,350 | | | | | | — | | | | |
|
*
|
| | | | | (5,350) | | | | |
|
*
|
| |
Foreign currency (gains) losses, net
|
| | | | (7,609) | | | | | | (5,400) | | | | | | 1,753 | | | | | | (2,209) | | | | |
|
*
|
| | | | | (7,153) | | | | |
|
*
|
| |
Loss on extinguishment of debt
|
| | | | — | | | | | | — | | | | | | 22,771 | | | | | | — | | | | |
|
*
|
| | | | | (22,771) | | | | |
|
*
|
| |
Adjusted EBITDA
|
| | | $ | 114,060 | | | | | $ | 110,019 | | | | | $ | 90,597 | | | | | $ | 4,041 | | | | |
|
4%
|
| | | | $ | 19,422 | | | | |
|
21%
|
| |
|
| | | | | |
Change
|
| ||||||||||||||||||||||||
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Cash provided by/(used in): | | | | | | | |||||||||||||||||||||||||
Operating activities
|
| | | $ | 37,218 | | | | | $ | 68,704 | | | | | $ | (712) | | | | | $ | (31,486) | | | | | $ | 69,416 | | |
Investing activities
|
| | | | (82,791) | | | | | | (34,464) | | | | | | (19,412) | | | | | | (48,327) | | | | | | (15,052) | | |
Financing activities
|
| | | | 50,380 | | | | | | (15,351) | | | | | | 4,779 | | | | | | 65,731 | | | | | | (20,130) | | |
Effect of exchange-rate changes on cash and cash
equivalents |
| | | | (418) | | | | | | (1,494) | | | | | | (203) | | | | | | 1,076 | | | | | | (1,291) | | |
Net increase/(decrease) in cash and cash equivalents
|
| | | $ | 4,389 | | | | | $ | 17,395 | | | | | $ | (15,548) | | | | | $ | (13,006) | | | | | $ | 32,943 | | |
|
| | | | | |
Change
|
| ||||||||||||||||||||||||
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
EBITDA | | | | $ | 116,805 | | | | | $ | 114,672 | | | | | $ | 60,723 | | | | | $ | 2,133 | | | | | $ | 53,949 | | |
Acquisition-related cost of goods sold
|
| | | | 2,566 | | | | | | — | | | | | | — | | | | | | 2,566 | | | | | | — | | |
Acquisition-related accrued compensation
|
| | | | 1,680 | | | | | | 747 | | | | | | — | | | | | | 933 | | | | | | 747 | | |
Acquisition-related transaction costs
|
| | | | 618 | | | | | | — | | | | | | — | | | | | | 618 | | | | | | — | | |
Loss on insurance claim
|
| | | | — | | | | | | — | | | | | | 5,350 | | | | | | — | | | | | | (5,350) | | |
Foreign currency (gains) losses, net
|
| | | | (7,609) | | | | | | (5,400) | | | | | | 1,753 | | | | | | (2,209) | | | | | | (7,153) | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | — | | | | | | 22,771 | | | | | | — | | | | | | (22,771) | | |
Payment of premium and costs on extinguished debt
|
| | | | — | | | | | | — | | | | | | (17,205) | | | | | | — | | | | | | 17,205 | | |
Interest paid
|
| | | | (14,215) | | | | | | (12,912) | | | | | | (45,370) | | | | | | (1,303) | | | | | | 32,458 | | |
Income taxes paid
|
| | | | (16,828) | | | | | | (10,780) | | | | | | (12,207) | | | | | | (6,048) | | | | | | 1,427 | | |
Changes in operating assets and liabilities and other items
|
| | | | (45,799) | | | | | | (17,623) | | | | | | (16,527) | | | | | | (28,176) | | | | | | (1,096) | | |
Net cash provided (used) by operating activities
|
| | | $ | 37,218 | | | | | $ | 68,704 | | | | | $ | (712) | | | | | $ | (31,486) | | | | | $ | 69,416 | | |
|
| | | | | |
Change
|
| ||||||||||||||||||||||||
As of June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 33,605 | | | | | $ | 29,216 | | | | | $ | 11,821 | | | | | $ | 4,389 | | | | | $ | 17,395 | | |
Working capital
|
| | | $ | 203,356 | | | | | $ | 175,988 | | | | | $ | 177,999 | | | | | $ | 27,368 | | | | | $ | (2,011) | | |
Ratio of current assets to current liabilities
|
| | | | 2.92:1 | | | | | | 2.62:1 | | | | | | 2.63:1 | | | | |
| | | | | |
Change
|
| ||||||||||||||||||||||||
As of June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Accounts receivable, net
|
| | | $ | 123,790 | | | | | $ | 111,099 | | | | | $ | 113,858 | | | | | $ | 12,691 | | | | | $ | (2,759) | | |
DSO
|
| | | | 59 | | | | | | 54 | | | | | | 56 | | | | |
| | | | | |
Change
|
| ||||||||||||||||||||||||
As of June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2016 / 2015
|
| |
2015 / 2014
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Inventories
|
| | | $ | 167,691 | | | | | $ | 149,786 | | | | | $ | 143,184 | | | | | $ | 17,905 | | | | | $ | 6,602 | | |
| | |
Years
|
| | | | | | | |||||||||||||||||||||
| | |
Within 1
|
| |
Over 1 to 3
|
| |
Over 3 to 5
|
| |
Over 5
|
| |
Total
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Long-term debt (including current portion)
|
| | | $ | 2,907 | | | | | $ | 5,800 | | | | | $ | 275,500 | | | | | $ | — | | | | | $ | 284,207 | | |
Revolving credit facility
|
| | | | — | | | | | | 69,000 | | | | | | — | | | | | | — | | | | | | 69,000 | | |
Interest payments
|
| | | | 14,540 | | | | | | 28,061 | | | | | | 19,583 | | | | | | — | | | | | | 62,184 | | |
Lease commitments
|
| | | | 4,665 | | | | | | 7,832 | | | | | | 6,427 | | | | | | 2,793 | | | | | | 21,717 | | |
Deferred consideration on acquisitions
|
| | | | 1,353 | | | | | | 122 | | | | | | 8,775 | | | | | | 172 | | | | | | 10,422 | | |
Total contractual obligations
|
| | | $ | 23,465 | | | | | $ | 110,815 | | | | | $ | 310,285 | | | | | $ | 2,965 | | | | | $ | 447,530 | | |
|
| | |
Quarters
|
| |
Six
Months |
| |
Nine
Months |
| |
Year
|
| ||||||||||||||||||||||||||||||
For the Periods Ended
|
| |
September 30,
2015 |
| |
December 31,
2015 |
| |
March 31,
2016 |
| |
June 30,
2016 |
| |
December 31,
2015 |
| |
March 31,
2016 |
| |
June 30,
2016 |
| |||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Net sales | | | | | | | | | |||||||||||||||||||||||||||||||||||
Animal Health
|
| | | $ | 120,134 | | | | | $ | 121,504 | | | | | $ | 118,328 | | | | | $ | 126,174 | | | | | $ | 241,638 | | | | | $ | 359,966 | | | | | $ | 486,140 | | |
Mineral Nutrition
|
| | | | 54,469 | | | | | | 58,853 | | | | | | 53,029 | | | | | | 50,334 | | | | | | 113,322 | | | | | | 166,351 | | | | | | 216,685 | | |
Performance Products
|
| | | | 12,517 | | | | | | 11,416 | | | | | | 12,104 | | | | | | 12,664 | | | | | | 23,933 | | | | | | 36,037 | | | | | | 48,701 | | |
Total net sales
|
| | | | 187,120 | | | | | | 191,773 | | | | | | 183,461 | | | | | | 189,172 | | | | | | 378,893 | | | | | | 562,354 | | | | | | 751,526 | | |
Cost of goods sold
|
| | | | 127,913 | | | | | | 130,311 | | | | | | 124,671 | | | | | | 129,599 | | | | | | 258,224 | | | | | | 382,895 | | | | | | 512,494 | | |
Gross profit
|
| | | | 59,207 | | | | | | 61,462 | | | | | | 58,790 | | | | | | 59,573 | | | | | | 120,669 | | | | | | 179,459 | | | | | | 239,032 | | |
Selling, general and administrative expenses
|
| | | | 37,349 | | | | | | 38,841 | | | | | | 37,619 | | | | | | 39,479 | | | | | | 76,190 | | | | | | 113,809 | | | | | | 153,288 | | |
Operating income
|
| | | | 21,858 | | | | | | 22,621 | | | | | | 21,171 | | | | | | 20,094 | | | | | | 44,479 | | | | | | 65,650 | | | | | | 85,744 | | |
Interest expense, net
|
| | | | 3,819 | | | | | | 3,967 | | | | | | 4,265 | | | | | | 4,541 | | | | | | 7,786 | | | | | | 12,051 | | | | | | 16,592 | | |
Foreign currency (gains) losses, net
|
| | | | (5,453) | | | | | | 2,557 | | | | | | (2,243) | | | | | | (2,470) | | | | | | (2,896) | | | | | | (5,139) | | | | | | (7,609) | | |
Income before income taxes
|
| | | | 23,492 | | | | | | 16,097 | | | | | | 19,149 | | | | | | 18,023 | | | | | | 39,589 | | | | | | 58,738 | | | | | | 76,761 | | |
Provision (benefit) for income taxes
|
| | | | 4,739 | | | | | | (14,081) | | | | | | 572 | | | | | | 2,803 | | | | | | (9,342) | | | | | | (8,770) | | | | | | (5,967) | | |
Net income
|
| | | $ | 18,753 | | | | | $ | 30,178 | | | | | $ | 18,577 | | | | | $ | 15,220 | | | | | $ | 48,931 | | | | | $ | 67,508 | | | | | $ | 82,728 | | |
Net income per share | | | | | | | | | |||||||||||||||||||||||||||||||||||
basic
|
| | | $ | 0.48 | | | | | $ | 0.77 | | | | | $ | 0.47 | | | | | $ | 0.39 | | | | | $ | 1.25 | | | | | $ | 1.72 | | | | | $ | 2.11 | | |
diluted
|
| | | $ | 0.47 | | | | | $ | 0.75 | | | | | $ | 0.46 | | | | | $ | 0.38 | | | | | $ | 1.22 | | | | | $ | 1.69 | | | | | $ | 2.07 | | |
Adjusted EBITDA | | | | | | | | | |||||||||||||||||||||||||||||||||||
Animal Health
|
| | | $ | 31,476 | | | | | $ | 32,351 | | | | | $ | 32,151 | | | | | $ | 31,464 | | | | | $ | 63,827 | | | | | $ | 95,978 | | | | | $ | 127,442 | | |
Mineral Nutrition
|
| | | | 3,160 | | | | | | 4,189 | | | | | | 4,012 | | | | | | 3,610 | | | | | | 7,349 | | | | | | 11,361 | | | | | | 14,971 | | |
Performance Products
|
| | | | 86 | | | | | | (8) | | | | | | 490 | | | | | | 402 | | | | | | 78 | | | | | | 568 | | | | | | 970 | | |
Corporate
|
| | | | (7,015) | | | | | | (8,098) | | | | | | (6,987) | | | | | | (7,223) | | | | | | (15,113) | | | | | | (22,100) | | | | | | (29,323) | | |
Adjusted EBITDA
|
| | | $ | 27,707 | | | | | $ | 28,434 | | | | | $ | 29,666 | | | | | $ | 28,253 | | | | | $ | 56,141 | | | | | $ | 85,807 | | | | | $ | 114,060 | | |
Reconciliation of net income to Adjusted EBITDA | | | | | | | | | |||||||||||||||||||||||||||||||||||
Net income
|
| | | $ | 18,753 | | | | | $ | 30,178 | | | | | $ | 18,577 | | | | | $ | 15,220 | | | | | $ | 48,931 | | | | | $ | 67,508 | | | | | $ | 82,728 | | |
Interest expense, net
|
| | | | 3,819 | | | | | | 3,967 | | | | | | 4,265 | | | | | | 4,541 | | | | | | 7,786 | | | | | | 12,051 | | | | | | 16,592 | | |
Provision (benefit) for income taxes
|
| | | | 4,739 | | | | | | (14,081) | | | | | | 572 | | | | | | 2,803 | | | | | | (9,342) | | | | | | (8,770) | | | | | | (5,967) | | |
Depreciation and amortization
|
| | | | 5,429 | | | | | | 5,393 | | | | | | 5,856 | | | | | | 6,774 | | | | | | 10,822 | | | | | | 16,678 | | | | | | 23,452 | | |
EBITDA | | | | | 32,740 | | | | | | 25,457 | | | | | | 29,270 | | | | | | 29,338 | | | | | | 58,197 | | | | | | 87,467 | | | | | | 116,805 | | |
Acquisition-related cost of goods sold
|
| | | | — | | | | | | — | | | | | | 1,601 | | | | | | 965 | | | | | | — | | | | | | 1,601 | | | | | | 2,566 | | |
Acquisition-related accrued compensation
|
| | | | 420 | | | | | | 420 | | | | | | 420 | | | | | | 420 | | | | | | 840 | | | | | | 1,260 | | | | | | 1,680 | | |
Acquisition-related transaction costs
|
| | | | — | | | | | | — | | | | | | 618 | | | | | | — | | | | | | — | | | | | | 618 | | | | | | 618 | | |
Foreign currency (gains) losses, net
|
| | | | (5,453) | | | | | | 2,557 | | | | | | (2,243) | | | | | | (2,470) | | | | | | (2,896) | | | | | | (5,139) | | | | | | (7,609) | | |
Adjusted EBITDA
|
| | | $ | 27,707 | | | | | $ | 28,434 | | | | | $ | 29,666 | | | | | $ | 28,253 | | | | | $ | 56,141 | | | | | $ | 85,807 | | | | | $ | 114,060 | | |
|
| | |
Quarters
|
| |
Six
Months |
| |
Nine
Months |
| |
Year
|
| ||||||||||||||||||||||||||||||
For the Periods Ended
|
| |
September 30,
2014 |
| |
December 31,
2014 |
| |
March 31,
2015 |
| |
June 30,
2015 |
| |
December 31,
2014 |
| |
March 31,
2015 |
| |
June 30,
2015 |
| |||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Net sales | | | | | | | | | |||||||||||||||||||||||||||||||||||
Animal Health
|
| | | $ | 117,225 | | | | | $ | 118,785 | | | | | $ | 117,346 | | | | | $ | 117,444 | | | | | $ | 236,010 | | | | | $ | 353,356 | | | | | $ | 470,800 | | |
Mineral Nutrition
|
| | | | 55,447 | | | | | | 58,742 | | | | | | 57,320 | | | | | | 55,593 | | | | | | 114,189 | | | | | | 171,509 | | | | | | 227,102 | | |
Performance Products
|
| | | | 14,786 | | | | | | 11,161 | | | | | | 12,829 | | | | | | 11,913 | | | | | | 25,947 | | | | | | 38,776 | | | | | | 50,689 | | |
Total net sales
|
| | | | 187,458 | | | | | | 188,688 | | | | | | 187,495 | | | | | | 184,950 | | | | | | 376,146 | | | | | | 563,641 | | | | | | 748,591 | | |
Cost of goods sold
|
| | | | 127,817 | | | | | | 133,283 | | | | | | 129,245 | | | | | | 124,966 | | | | | | 261,100 | | | | | | 390,345 | | | | | | 515,311 | | |
Gross profit
|
| | | | 59,641 | | | | | | 55,405 | | | | | | 58,250 | | | | | | 59,984 | | | | | | 115,046 | | | | | | 173,296 | | | | | | 233,280 | | |
Selling, general and administrative expenses
|
| | | | 34,536 | | | | | | 35,618 | | | | | | 36,437 | | | | | | 39,021 | | | | | | 70,154 | | | | | | 106,591 | | | | | | 145,612 | | |
Operating income
|
| | | | 25,105 | | | | | | 19,787 | | | | | | 21,813 | | | | | | 20,963 | | | | | | 44,892 | | | | | | 66,705 | | | | | | 87,668 | | |
Interest expense, net
|
| | | | 3,490 | | | | | | 3,515 | | | | | | 3,602 | | | | | | 3,698 | | | | | | 7,005 | | | | | | 10,607 | | | | | | 14,305 | | |
Foreign currency (gains) losses, net
|
| | | | (1,204) | | | | | | (1,018) | | | | | | (4,633) | | | | | | 1,455 | | | | | | (2,222) | | | | | | (6,855) | | | | | | (5,400) | | |
Income before income taxes
|
| | | | 22,819 | | | | | | 17,290 | | | | | | 22,844 | | | | | | 15,810 | | | | | | 40,109 | | | | | | 62,953 | | | | | | 78,763 | | |
Provision (benefit) for income
taxes |
| | | | 3,887 | | | | | | 3,042 | | | | | | 6,148 | | | | | | 5,406 | | | | | | 6,929 | | | | | | 13,077 | | | | | | 18,483 | | |
Net income
|
| | | $ | 18,932 | | | | | $ | 14,248 | | | | | $ | 16,696 | | | | | $ | 10,404 | | | | | $ | 33,180 | | | | | $ | 49,876 | | | | | $ | 60,280 | | |
Net income per share | | | | | | | | | |||||||||||||||||||||||||||||||||||
basic
|
| | | $ | 0.49 | | | | | $ | 0.37 | | | | | $ | 0.43 | | | | | $ | 0.27 | | | | | $ | 0.85 | | | | | $ | 1.28 | | | | | $ | 1.55 | | |
diluted
|
| | | $ | 0.48 | | | | | $ | 0.36 | | | | | $ | 0.42 | | | | | $ | 0.26 | | | | | $ | 0.84 | | | | | $ | 1.25 | | | | | $ | 1.51 | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Animal Health
|
| | | $ | 32,454 | | | | | $ | 28,296 | | | | | $ | 29,629 | | | | | $ | 29,880 | | | | | $ | 60,750 | | | | | $ | 90,379 | | | | | $ | 120,259 | | |
Mineral Nutrition
|
| | | | 3,479 | | | | | | 3,754 | | | | | | 3,761 | | | | | | 3,435 | | | | | | 7,233 | | | | | | 10,994 | | | | | | 14,429 | | |
Performance Products
|
| | | | 1,036 | | | | | | 162 | | | | | | 994 | | | | | | 454 | | | | | | 1,198 | | | | | | 2,192 | | | | | | 2,646 | | |
Corporate
|
| | | | (6,511) | | | | | | (7,184) | | | | | | (6,888) | | | | | | (6,732) | | | | | | (13,695) | | | | | | (20,583) | | | | | | (27,315) | | |
Adjusted EBITDA
|
| | | $ | 30,458 | | | | | $ | 25,028 | | | | | $ | 27,496 | | | | | $ | 27,037 | | | | | $ | 55,486 | | | | | $ | 82,982 | | | | | $ | 110,019 | | |
Reconciliation of net income
to Adjusted EBITDA |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 18,932 | | | | | $ | 14,248 | | | | | $ | 16,696 | | | | | $ | 10,404 | | | | | $ | 33,180 | | | | | $ | 49,876 | | | | | $ | 60,280 | | |
Interest expense, net
|
| | | | 3,490 | | | | | | 3,515 | | | | | | 3,602 | | | | | | 3,698 | | | | | | 7,005 | | | | | | 10,607 | | | | | | 14,305 | | |
Provision (benefit) for income taxes
|
| | | | 3,887 | | | | | | 3,042 | | | | | | 6,148 | | | | | | 5,406 | | | | | | 6,929 | | | | | | 13,077 | | | | | | 18,483 | | |
Depreciation and amortization
|
| | | | 5,353 | | | | | | 5,241 | | | | | | 5,356 | | | | | | 5,654 | | | | | | 10,594 | | | | | | 15,950 | | | | | | 21,604 | | |
EBITDA | | | | | 31,662 | | | | | | 26,046 | | | | | | 31,802 | | | | | | 25,162 | | | | | | 57,708 | | | | | | 89,510 | | | | | | 114,672 | | |
Acquisition-related accrued
compensation |
| | | | — | | | | | | — | | | | | | 327 | | | | | | 420 | | | | | | — | | | | | | 327 | | | | | | 747 | | |
Foreign currency (gains) losses, net
|
| | | | (1,204) | | | | | | (1,018) | | | | | | (4,633) | | | | | | 1,455 | | | | | | (2,222) | | | | | | (6,855) | | | | | | (5,400) | | |
Adjusted EBITDA
|
| | | $ | 30,458 | | | | | $ | 25,028 | | | | | $ | 27,496 | | | | | $ | 27,037 | | | | | $ | 55,486 | | | | | $ | 82,982 | | | | | $ | 110,019 | | |
|
| | | | | 77 | | | |
| | | | | 78 | | | |
| | | | | 79 | | | |
| | | | | 80 | | | |
| | | | | 81 | | | |
| | | | | 82 | | | |
| | | | | 83 | | |
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
| | |
(in thousands, except per share amounts)
|
| |||||||||||||||
Net sales
|
| | | $ | 751,526 | | | | | $ | 748,591 | | | | | $ | 691,914 | | |
Cost of goods sold
|
| | | | 512,494 | | | | | | 515,311 | | | | | | 487,500 | | |
Gross profit
|
| | | | 239,032 | | | | | | 233,280 | | | | | | 204,414 | | |
Selling, general and administrative expenses
|
| | | | 153,288 | | | | | | 145,612 | | | | | | 140,620 | | |
Operating income
|
| | | | 85,744 | | | | | | 87,668 | | | | | | 63,794 | | |
Interest expense, net
|
| | | | 16,592 | | | | | | 14,305 | | | | | | 29,770 | | |
Interest expense, stockholders
|
| | | | — | | | | | | — | | | | | | 3,192 | | |
Foreign currency (gains) losses, net
|
| | | | (7,609) | | | | | | (5,400) | | | | | | 1,753 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | — | | | | | | 22,771 | | |
Income before income taxes
|
| | | | 76,761 | | | | | | 78,763 | | | | | | 6,308 | | |
Provision (benefit) for income taxes
|
| | | | (5,967) | | | | | | 18,483 | | | | | | 9,435 | | |
Net income (loss)
|
| | | $ | 82,728 | | | | | $ | 60,280 | | | | | $ | (3,127) | | |
Net income (loss) per share | | | | | |||||||||||||||
basic
|
| | | $ | 2.11 | | | | | $ | 1.55 | | | | | $ | (0.10) | | |
diluted
|
| | | $ | 2.07 | | | | | $ | 1.51 | | | | | $ | (0.10) | | |
Weighted average common shares outstanding | | | | | |||||||||||||||
basic
|
| | | | 39,254 | | | | | | 38,969 | | | | | | 32,193 | | |
diluted
|
| | | | 39,962 | | | | | | 39,815 | | | | | | 32,193 | | |
Dividends per share
|
| | | $ | 0.40 | | | | | $ | 0.40 | | | | | $ | 0.82 | | |
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Net income (loss)
|
| | | $ | 82,728 | | | | | $ | 60,280 | | | | | $ | (3,127) | | |
Change in fair value of derivative instruments
|
| | | | 4,197 | | | | | | (1,928) | | | | | | 1,025 | | |
Foreign currency translation adjustment
|
| | | | (9,181) | | | | | | (31,314) | | | | | | 1,110 | | |
Unrecognized net pension gains (losses)
|
| | | | (11,093) | | | | | | (3,221) | | | | | | (4,423) | | |
(Provision) benefit for income taxes
|
| | | | 5,892 | | | | | | 4,923 | | | | | | — | | |
Other comprehensive income (loss)
|
| | | | (10,185) | | | | | | (31,540) | | | | | | (2,288) | | |
Comprehensive income (loss)
|
| | | $ | 72,543 | | | | | $ | 28,740 | | | | | $ | (5,415) | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
| | |
(in thousands, except share and per share amounts)
|
| |||||||||
ASSETS | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 33,605 | | | | | $ | 29,216 | | |
Accounts receivable, net
|
| | | | 123,790 | | | | | | 111,099 | | |
Inventories, net
|
| | | | 167,691 | | | | | | 149,786 | | |
Other current assets
|
| | | | 17,745 | | | | | | 23,627 | | |
Total current assets
|
| | | | 342,831 | | | | | | 313,728 | | |
Property, plant and equipment, net
|
| | | | 127,323 | | | | | | 104,414 | | |
Intangibles, net
|
| | | | 60,095 | | | | | | 37,281 | | |
Goodwill
|
| | | | 21,121 | | | | | | 12,613 | | |
Other assets
|
| | | | 59,003 | | | | | | 25,282 | | |
Total assets
|
| | | $ | 610,373 | | | | | $ | 493,318 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | ||||||||||
Current portion of long-term debt
|
| | | $ | 2,803 | | | | | $ | 2,809 | | |
Accounts payable
|
| | | | 60,167 | | | | | | 63,061 | | |
Accrued expenses and other current liabilities
|
| | | | 45,703 | | | | | | 45,463 | | |
Total current liabilities
|
| | | | 108,673 | | | | | | 111,333 | | |
Revolving credit facility
|
| | | | 69,000 | | | | | | 3,000 | | |
Long-term debt
|
| | | | 280,907 | | | | | | 283,709 | | |
Other liabilities
|
| | | | 61,313 | | | | | | 65,648 | | |
Total liabilities
|
| | | | 519,893 | | | | | | 463,690 | | |
Commitments and contingencies (Note 12) | | | | ||||||||||
Common stock, par value $0.0001; 300,000,000 Class A shares
authorized, 18,519,757 and 17,747,793 shares issued and outstanding at June 30, 2016 and June 30, 2015, respectively; 30,000,000 Class B shares authorized, 20,887,811 and 21,320,275 shares issued and outstanding at June 30, 2016 and June 30, 2015, respectively |
| | | | 4 | | | | | | 4 | | |
Preferred stock, par value $0.0001; 16,000,000 shares authorized,
no shares issued and outstanding |
| | | | — | | | | | | — | | |
Paid-in capital
|
| | | | 118,299 | | | | | | 118,192 | | |
Retained earnings (accumulated deficit)
|
| | | | 33,962 | | | | | | (36,968) | | |
Accumulated other comprehensive income (loss)
|
| | | | (61,785) | | | | | | (51,600) | | |
Total stockholders’ equity
|
| | | | 90,480 | | | | | | 29,628 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 610,373 | | | | | $ | 493,318 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
OPERATING ACTIVITIES | | | | | |||||||||||||||
Net income (loss)
|
| | | $ | 82,728 | | | | | $ | 60,280 | | | | | $ | (3,127) | | |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
|
| | | | |||||||||||||||
Depreciation and amortization
|
| | | | 23,452 | | | | | | 21,604 | | | | | | 21,453 | | |
Amortization of deferred financing costs and debt discount
|
| | | | 989 | | | | | | 967 | | | | | | 1,448 | | |
Acquisition-related cost of goods sold
|
| | | | 2,566 | | | | | | — | | | | | | — | | |
Acquisition-related accrued compensation
|
| | | | 1,680 | | | | | | 747 | | | | | | — | | |
Acquisition-related accrued interest
|
| | | | 1,476 | | | | | | 613 | | | | | | — | | |
Deferred income taxes
|
| | | | (22,244) | | | | | | 4,761 | | | | | | 1,289 | | |
Foreign currency (gains) losses, net
|
| | | | (7,725) | | | | | | (3,376) | | | | | | 1,429 | | |
Other
|
| | | | 354 | | | | | | 61 | | | | | | (538) | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | — | | | | | | 22,771 | | |
Payment of premiums and costs on extinguished debt
|
| | | | — | | | | | | — | | | | | | (17,205) | | |
Changes in operating assets and liabilities, net of business acquisitions:
|
| | | | |||||||||||||||
Accounts receivable, net
|
| | | | (13,086) | | | | | | (1,877) | | | | | | (14,683) | | |
Inventories, net
|
| | | | (16,439) | | | | | | (19,354) | | | | | | (3,186) | | |
Other current assets
|
| | | | 457 | | | | | | 7,416 | | | | | | (31) | | |
Other assets
|
| | | | (6,547) | | | | | | (4,236) | | | | | | 5,103 | | |
Accounts payable
|
| | | | (3,245) | | | | | | 4,796 | | | | | | 1,682 | | |
Accrued interest
|
| | | | 62 | | | | | | 90 | | | | | | (13,813) | | |
Accrued expenses and other liabilities
|
| | | | (7,260) | | | | | | (3,788) | | | | | | (3,304) | | |
Net cash provided (used) by operating activities
|
| | | | 37,218 | | | | | | 68,704 | | | | | | (712) | | |
INVESTING ACTIVITIES | | | | | |||||||||||||||
Capital expenditures
|
| | | | (36,352) | | | | | | (20,058) | | | | | | (19,846) | | |
Business acquisition
|
| | | | (46,576) | | | | | | (10,377) | | | | | | — | | |
Other, net
|
| | | | 137 | | | | | | (4,029) | | | | | | 434 | | |
Net cash provided (used) by investing activities
|
| | | | (82,791) | | | | | | (34,464) | | | | | | (19,412) | | |
FINANCING ACTIVITIES | | | | | |||||||||||||||
Revolving credit facility borrowings
|
| | | | 255,500 | | | | | | 38,000 | | | | | | 175,500 | | |
Revolving credit facility repayments
|
| | | | (189,500) | | | | | | (35,000) | | | | | | (209,500) | | |
Proceeds from long-term debt
|
| | | | — | | | | | | — | | | | | | 289,275 | | |
Payments of long-term debt, capital leases and other
|
| | | | (3,929) | | | | | | (4,090) | | | | | | (335,374) | | |
Debt issuance costs
|
| | | | — | | | | | | — | | | | | | (4,551) | | |
Proceeds from common shares issued
|
| | | | 4,017 | | | | | | 1,334 | | | | | | 114,429 | | |
Dividends paid
|
| | | | (15,708) | | | | | | (15,595) | | | | | | (25,000) | | |
Net cash provided (used) by financing activities
|
| | | | 50,380 | | | | | | (15,351) | | | | | | 4,779 | | |
Effect of exchange rate changes on cash
|
| | | | (418) | | | | | | (1,494) | | | | | | (203) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | 4,389 | | | | | | 17,395 | | | | | | (15,548) | | |
Cash and cash equivalents at beginning of period
|
| | | | 29,216 | | | | | | 11,821 | | | | | | 27,369 | | |
Cash and cash equivalents at end of period
|
| | | $ | 33,605 | | | | | $ | 29,216 | | | | | $ | 11,821 | | |
Supplemental cash flow information | | | | | |||||||||||||||
Interest paid
|
| | | $ | 14,215 | | | | | $ | 12,912 | | | | | $ | 45,370 | | |
Income taxes paid, net
|
| | | | 16,828 | | | | | | 10,780 | | | | | | 12,207 | | |
Non-cash investing and financing activities | | | | | |||||||||||||||
Business acquisition
|
| | | | — | | | | | | 4,156 | | | | | | — | | |
Property, plant and equipment and capital lease additions
|
| | | | 1,438 | | | | | | 1,193 | | | | | | 2,637 | | |
| | |
Shares of
Common Stock |
| |
Common
Stock |
| |
Preferred
Stock |
| |
Paid-in
Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
|
| |||||||||||||||||||||
| | |
(in thousands, except share amounts)
|
| |||||||||||||||||||||||||||||||||||||||
As of June 30, 2013
|
| | | | 30,458,220 | | | | | $ | 7 | | | | | $ | — | | | | | $ | 42,948 | | | | | $ | (94,121) | | | | | $ | (17,772) | | | | | $ | (68,938) | | |
Comprehensive income (loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,127) | | | | | | (2,288) | | | | | | (5,415) | | |
Issuance of common stock, net of issuance costs
|
| | | | 8,333,333 | | | | | | 1 | | | | | | — | | | | | | 114,428 | | | | | | — | | | | | | — | | | | | | 114,429 | | |
Conversion of common stock certificate and effect of stock
split |
| | | | — | | | | | | (4) | | | | | | — | | | | | | 4 | | | | | | — | | | | | | — | | | | | | — | | |
Dividends paid
|
| | | | — | | | | | | — | | | | | | — | | | | | | (25,000) | | | | | | — | | | | | | — | | | | | | (25,000) | | |
Stock-based compensation
expense |
| | | | — | | | | | | — | | | | | | — | | | | | | 73 | | | | | | — | | | | | | — | | | | | | 73 | | |
As of June 30, 2014
|
| | | | 38,791,553 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 132,453 | | | | | $ | (97,248) | | | | | $ | (20,060) | | | | | $ | 15,149 | | |
Comprehensive income (loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 60,280 | | | | | | (31,540) | | | | | | 28,740 | | |
Exercise of stock options and warrant
|
| | | | 276,515 | | | | | | — | | | | | | — | | | | | | 1,334 | | | | | | — | | | | | | — | | | | | | 1,334 | | |
Dividends paid
|
| | | | — | | | | | | — | | | | | | — | | | | | | (15,595) | | | | | | — | | | | | | — | | | | | | (15,595) | | |
As of June 30, 2015
|
| | | | 39,068,068 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 118,192 | | | | | $ | (36,968) | | | | | $ | (51,600) | | | | | $ | 29,628 | | |
Comprehensive income (loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 82,728 | | | | | | (10,185) | | | | | | 72,543 | | |
Exercise of stock options
|
| | | | 339,500 | | | | | | — | | | | | | — | | | | | | 4,017 | | | | | | — | | | | | | — | | | | | | 4,017 | | |
Dividends paid
|
| | | | — | | | | | | — | | | | | | — | | | | | | (3,910) | | | | | | (11,798) | | | | | | — | | | | | | (15,708) | | |
As of June 30, 2016
|
| | | | 39,407,568 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 118,299 | | | | | $ | 33,962 | | | | | $ | (61,785) | | | | | $ | 90,480 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Net income (loss)
|
| | | $ | 82,728 | | | | | $ | 60,280 | | | | | $ | (3,127) | | |
Weighted average number of shares–basic
|
| | | | 39,254 | | | | | | 38,969 | | | | | | 32,193 | | |
Dilutive effect of stock options and warrant
|
| | | | 708 | | | | | | 846 | | | | | | — | | |
Weighted average number of shares–diluted
|
| | | | 39,962 | | | | | | 39,815 | | | | | | 32,193 | | |
Net income (loss) per share | | | | | |||||||||||||||
basic
|
| | | $ | 2.11 | | | | | $ | 1.55 | | | | | $ | (0.10) | | |
diluted
|
| | | $ | 2.07 | | | | | $ | 1.51 | | | | | $ | (0.10) | | |
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Interest expense, net | | | | | |||||||||||||||
Term B Loan
|
| | | $ | 11,631 | | | | | $ | 11,717 | | | | | $ | 2,419 | | |
Revolving credit facility
|
| | | | 2,257 | | | | | | 918 | | | | | | 171 | | |
Domestic senior credit facility
|
| | | | — | | | | | | — | | | | | | 1,328 | | |
Senior notes
|
| | | | — | | | | | | — | | | | | | 24,281 | | |
Mayflower and BFI term loans
|
| | | | — | | | | | | — | | | | | | 3,051 | | |
Acquisition-related accrued interest
|
| | | | 1,476 | | | | | | 613 | | | | | | — | | |
Amortization of deferred financing fees and debt
discount |
| | | | 989 | | | | | | 967 | | | | | | 1,448 | | |
Other | | | | | 495 | | | | | | 339 | | | | | | 383 | | |
Interest expense
|
| | | | 16,848 | | | | | | 14,554 | | | | | | 33,081 | | |
Interest (income)
|
| | | | (256) | | | | | | (249) | | | | | | (119) | | |
| | | | $ | 16,592 | | | | | $ | 14,305 | | | | | $ | 32,962 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Depreciation and amortization | | | | | |||||||||||||||
Depreciation of property, plant and equipment
|
| | | $ | 17,659 | | | | | $ | 16,813 | | | | | $ | 16,439 | | |
Amortization of intangible assets
|
| | | | 5,559 | | | | | | 4,560 | | | | | | 4,897 | | |
Amortization of other assets
|
| | | | 234 | | | | | | 231 | | | | | | 117 | | |
| | | | $ | 23,452 | | | | | $ | 21,604 | | | | | $ | 21,453 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Research and development expenditures
|
| | | $ | 11,029 | | | | | $ | 9,511 | | | | | $ | 8,212 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Accounts receivable, net | | | | ||||||||||
Trade accounts receivable
|
| | | $ | 128,743 | | | | | $ | 114,477 | | |
Allowance for doubtful accounts
|
| | | | (4,953) | | | | | | (3,378) | | |
| | | | $ | 123,790 | | | | | $ | 111,099 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Allowance for doubtful accounts | | | | | |||||||||||||||
Balance at beginning of period
|
| | | $ | 3,378 | | | | | $ | 1,235 | | | | | $ | 658 | | |
Provision for bad debts
|
| | | | 1,774 | | | | | | 2,587 | | | | | | 226 | | |
Effect of changes in exchange rates
|
| | | | (132) | | | | | | (218) | | | | | | 351 | | |
Bad debt write-offs (recovery)
|
| | | | (67) | | | | | | (226) | | | | | | — | | |
Balance at end of period
|
| | | $ | 4,953 | | | | | $ | 3,378 | | | | | $ | 1,235 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Inventories | | | | ||||||||||
Raw materials
|
| | | $ | 51,369 | | | | | $ | 40,012 | | |
Work-in-process
|
| | | | 8,074 | | | | | | 7,617 | | |
Finished goods
|
| | | | 108,248 | | | | | | 102,157 | | |
| | | | $ | 167,691 | | | | | $ | 149,786 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Property, plant and equipment, net | | | | ||||||||||
Land
|
| | | $ | 9,612 | | | | | $ | 9,130 | | |
Buildings and improvements
|
| | | | 64,265 | | | | | | 50,276 | | |
Machinery and equipment
|
| | | | 196,480 | | | | | | 171,797 | | |
| | | | | 270,357 | | | | | | 231,203 | | |
Accumulated depreciation
|
| | | | (143,034) | | | | | | (126,789) | | |
| | | | $ | 127,323 | | | | | $ | 104,414 | | |
|
As of June 30
|
| |
Weighted-
Average Useful Life (Years) |
| |
2016
|
| |
2015
|
| |||||||||
Intangibles, net | | | | | |||||||||||||||
Cost | | | | | |||||||||||||||
Medicated feed additive product registrations
|
| | | | 10 | | | | | $ | 11,744 | | | | | $ | 11,753 | | |
Amprolium international marketing rights
|
| | | | 10 | | | | | | 4,292 | | | | | | 4,292 | | |
Customer relationships
|
| | | | 13 | | | | | | 10,606 | | | | | | 10,615 | | |
Technology
|
| | | | 13 | | | | | | 66,960 | | | | | | 38,580 | | |
Distribution agreements
|
| | | | 4 | | | | | | 3,275 | | | | | | 3,298 | | |
Trade names, trademarks and other
|
| | | | 5 | | | | | | 2,740 | | | | | | 2,740 | | |
In-process research and development
|
| | | | | | | | | | 1,579 | | | | | | 1,579 | | |
| | | | | | | | | | | 101,196 | | | | | | 72,857 | | |
Accumulated amortization | | | | | |||||||||||||||
Medicated feed additive product registrations
|
| | | | | | | | | | (10,846) | | | | | | (10,669) | | |
Amprolium international marketing rights
|
| | | | | | | | | | (4,292) | | | | | | (4,292) | | |
Customer relationships
|
| | | | | | | | | | (6,303) | | | | | | (5,267) | | |
Technology
|
| | | | | | | | | | (13,877) | | | | | | (9,741) | | |
Distribution agreements
|
| | | | | | | | | | (3,275) | | | | | | (3,298) | | |
Trade names, trademarks and other
|
| | | | | | | | | | (2,508) | | | | | | (2,309) | | |
| | | | | | | | | | | (41,101) | | | | | | (35,576) | | |
| | | | | | | | | | $ | 60,095 | | | | | $ | 37,281 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Goodwill roll-forward | | | | ||||||||||
Balance at beginning of period
|
| | | $ | 12,613 | | | | | $ | 12,613 | | |
MVP acquisition
|
| | | | 8,508 | | | | | | — | | |
Balance at end of period
|
| | | $ | 21,121 | | | | | $ | 12,613 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Other assets | | | | ||||||||||
Acquisition-related note receivable
|
| | | $ | 5,000 | | | | | $ | 5,000 | | |
Equity method investments
|
| | | | 4,580 | | | | | | 4,725 | | |
Insurance investments
|
| | | | 4,833 | | | | | | 4,788 | | |
Deferred financing fees
|
| | | | 3,602 | | | | | | 4,335 | | |
Deferred income taxes
|
| | | | 28,019 | | | | | | 221 | | |
Deposits
|
| | | | 5,992 | | | | | | 532 | | |
Other
|
| | | | 6,977 | | | | | | 5,681 | | |
| | | | $ | 59,003 | | | | | $ | 25,282 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Accrued expenses and other current liabilities | | | | ||||||||||
Employee related
|
| | | $ | 21,712 | | | | | $ | 22,273 | | |
Commissions and rebates
|
| | | | 3,722 | | | | | | 4,148 | | |
Insurance related
|
| | | | 1,780 | | | | | | 1,368 | | |
Professional fees
|
| | | | 3,573 | | | | | | 3,543 | | |
Income and other taxes
|
| | | | 1,910 | | | | | | 817 | | |
Deferred consideration on acquisitions
|
| | | | 1,250 | | | | | | 1,196 | | |
Fair value of derivatives
|
| | | | — | | | | | | 1,542 | | |
Other
|
| | | | 11,756 | | | | | | 10,576 | | |
| | | | $ | 45,703 | | | | | $ | 45,463 | | |
Other liabilities | | | | ||||||||||
U.S. pension plan
|
| | | $ | 21,371 | | | | | $ | 18,573 | | |
International retirement plans
|
| | | | 5,600 | | | | | | 4,893 | | |
Supplemental retirement benefits, deferred compensation and
other |
| | | | 8,984 | | | | | | 7,443 | | |
Long term and deferred income taxes
|
| | | | 8,205 | | | | | | 19,098 | | |
Deferred consideration on acquisitions
|
| | | | 9,172 | | | | | | 7,266 | | |
Other long term liabilities
|
| | | | 7,981 | | | | | | 8,375 | | |
| | | | $ | 61,313 | | | | | $ | 65,648 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Accumulated other comprehensive income (loss) | | | | ||||||||||
Derivative instruments
|
| | | $ | 2,655 | | | | | $ | (1,542) | | |
Foreign currency translation adjustment
|
| | | | (41,904) | | | | | | (32,723) | | |
Unrecognized net pension gains (losses)
|
| | | | (30,977) | | | | | | (19,884) | | |
(Provision) benefit for income taxes on derivative instruments
|
| | | | (1,548) | | | | | | 63 | | |
(Provision) benefit for incomes taxes on long-term intercompany investments
|
| | | | 8,166 | | | | | | 4,923 | | |
(Provision) benefit for income taxes on pension
gains (losses) |
| | | | 1,823 | | | | | | (2,437) | | |
| | | | $ | (61,785) | | | | | $ | (51,600) | | |
|
|
Working capital, net
|
| | | $ | 4,914 | | |
|
Property, plant and equipment
|
| | | | 4,774 | | |
|
Definite-lived intangible assets
|
| | | | 28,380 | | |
|
Goodwill
|
| | | | 8,508 | | |
|
Net assets acquired
|
| | | $ | 46,576 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Term B loan due April 2021
|
| | | $ | 284,200 | | | | | $ | 287,100 | | |
Capitalized lease obligations
|
| | | | 7 | | | | | | 18 | | |
| | | | | 284,207 | | | | | | 287,118 | | |
Unamortized debt discount
|
| | | | (497) | | | | | | (600) | | |
| | | | | 283,710 | | | | | | 286,518 | | |
Less: current maturities
|
| | | | (2,803) | | | | | | (2,809) | | |
| | | | $ | 280,907 | | | | | $ | 283,709 | | |
|
For the Years Ended June 30
|
| | |||||
2017
|
| | | $ | 2,907 | | |
2018
|
| | | | 2,900 | | |
2019
|
| | | | 2,900 | | |
2020
|
| | | | 2,900 | | |
2021
|
| | | | 272,600 | | |
Total
|
| | | $ | 284,207 | | |
|
| | |
2016
|
| |
2015
|
| | | | | | | |
2016
|
| |
2015
|
| ||||||||||||
As of June 30
|
| |
Authorized Shares
|
| |
Par value
|
| |
Issued and outstanding shares
|
| |||||||||||||||||||||
Preferred stock
|
| | | | 16,000,000 | | | | | | 16,000,000 | | | | | $ | 0.0001 | | | | | | — | | | | | | — | | |
Common stock−Class A
|
| | | | 300,000,000 | | | | | | 300,000,000 | | | | | $ | 0.0001 | | | | | | 18,519,757 | | | | | | 17,747,793 | | |
Common stock−Class B
|
| | | | 30,000,000 | | | | | | 30,000,000 | | | | | $ | 0.0001 | | | | | | 20,887,811 | | | | | | 21,320,275 | | |
Options
|
| |
Shares
|
| |
Weighted-
Average Exercise Price Per Share |
| ||||||
Outstanding, June 30, 2015
|
| | | | 1,385,540 | | | | | $ | 11.83 | | |
Exercised
|
| | | | (339,500) | | | | | $ | 11.83 | | |
Outstanding, June 30, 2016
|
| | | | 1,046,040 | | | | | $ | 11.83 | | |
Exercisable, June 30, 2016
|
| | | | 1,046,040 | | | | | $ | 11.83 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| ||||||
Change in projected benefit obligation | | | | ||||||||||
Projected benefit obligation at beginning of year
|
| | | $ | 62,605 | | | | | $ | 57,599 | | |
Service cost
|
| | | | 2,939 | | | | | | 2,954 | | |
Interest cost
|
| | | | 2,893 | | | | | | 2,618 | | |
Benefits paid
|
| | | | (1,271) | | | | | | (1,116) | | |
Actuarial (gain) loss
|
| | | | 8,498 | | | | | | 550 | | |
Projected benefit obligation at end of year
|
| | | $ | 75,664 | | | | | $ | 62,605 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| ||||||
Change in plan assets | | | | ||||||||||
Fair value of plan assets at beginning of year
|
| | | $ | 44,032 | | | | | $ | 39,581 | | |
Actual return on plan assets
|
| | | | (1,202) | | | | | | (1,248) | | |
Employer contributions
|
| | | | 12,734 | | | | | | 6,815 | | |
Benefits paid
|
| | | | (1,271) | | | | | | (1,116) | | |
Fair value of plan assets at end of year
|
| | | $ | 54,293 | | | | | $ | 44,032 | | |
Funded status at end of year
|
| | | $ | (21,371) | | | | | $ | (18,573) | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| ||||||
Accumulated Other Comprehensive (Income) Loss Related to Pension Plan
|
| | | | | | | | | | | | |
Balance at beginning of period
|
| | | $ | 19,884 | | | | | $ | 16,663 | | |
Amortization of net actuarial loss and prior service costs
|
| | | | (1,784) | | | | | | (1,405) | | |
Current period net actuarial loss
|
| | | | 12,877 | | | | | | 4,626 | | |
Net change
|
| | | | 11,093 | | | | | | 3,221 | | |
Balance at end of period
|
| | | $ | 30,977 | | | | | $ | 19,884 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Service cost−benefits earned during the year
|
| | | $ | 2,939 | | | | | $ | 2,954 | | | | | $ | 2,457 | | |
Interest cost on benefit obligation
|
| | | | 2,893 | | | | | | 2,618 | | | | | | 2,333 | | |
Expected return on plan assets
|
| | | | (3,177) | | | | | | (2,828) | | | | | | (2,334) | | |
Amortization of net actuarial loss and prior service costs
|
| | | | 1,784 | | | | | | 1,405 | | | | | | 904 | | |
Net periodic pension expense
|
| | | $ | 4,439 | | | | | $ | 4,149 | | | | | $ | 3,360 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
|
Discount rate for service and interest
|
| |
4.6%
|
| |
4.5%
|
| |
5.0%
|
|
Expected rate of return on plan assets
|
| |
6.1%
|
| |
6.7%
|
| |
7.0%
|
|
Rate of compensation increase
|
| |
3.0%–6.0%
|
| |
3.0%–6.0%
|
| |
3.0%–4.5%
|
|
Discount rate for year-end benefit
obligation |
| |
3.9%
|
| |
4.6%
|
| |
4.5%
|
|
For the Years Ended June 30
|
| | |||||
2017
|
| | | $ | 1,934 | | |
2018
|
| | | | 2,196 | | |
2019
|
| | | | 2,480 | | |
2020
|
| | | | 2,780 | | |
2021
|
| | | | 3,081 | | |
2022–2026
|
| | | | 19,684 | | |
| | |
Target
Allocation |
| |
Percentage of Plan Assets
|
| |||||||||
For the years ended June 30
|
| |
2017
|
| |
2016
|
| |
2015
|
| ||||||
Debt securities
|
| |
10%–35%
|
| | | | 19% | | | | | | 19% | | |
Equity securities
|
| |
25%–55%
|
| | | | 43% | | | | | | 35% | | |
Global asset allocation/risk parity(1)
|
| |
15%–35%
|
| | | | 26% | | | | | | 35% | | |
Other
|
| |
0%–25%
|
| | | | 12% | | | | | | 11% | | |
| | |
Fair Value Measurements Using
|
| |||||||||||||||||||||
As of June 30, 2016
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 713 | | | | | $ | — | | | | | $ | — | | | | | $ | 713 | | |
Common-collective funds | | | | | | ||||||||||||||||||||
Global large cap equities
|
| | | | — | | | | | | 11,963 | | | | | | 6,596 | | | | | | 18,559 | | |
Fixed income securities
|
| | | | — | | | | | | 7,583 | | | | | | — | | | | | | 7,583 | | |
Global asset allocations/risk parity
|
| | | | — | | | | | | 4,878 | | | | | | — | | | | | | 4,878 | | |
Mutual funds | | | | | | ||||||||||||||||||||
Global Equities
|
| | | | 4,611 | | | | | | — | | | | | | — | | | | | | 4,611 | | |
Fixed income securities
|
| | | | 1,366 | | | | | | — | | | | | | — | | | | | | 1,366 | | |
Global asset allocations/risk parity
|
| | | | 2,667 | | | | | | — | | | | | | — | | | | | | 2,667 | | |
Other | | | | | | ||||||||||||||||||||
Fixed income securities
|
| | | | — | | | | | | — | | | | | | 1,434 | | | | | | 1,434 | | |
Global asset allocations/risk parity
|
| | | | — | | | | | | — | | | | | | 6,554 | | | | | | 6,554 | | |
Other
|
| | | | — | | | | | | — | | | | | | 5,929 | | | | | | 5,929 | | |
| | | | $ | 9,357 | | | | | $ | 24,424 | | | | | $ | 20,513 | | | | | $ | 54,294 | | |
|
| | |
Fair Value Measurements Using
|
| | | | | | | | | |||||||||||||||||||||||||||||||||||||
As of June 30, 2015
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| | | | | | | | | ||||||||||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 129 | | | | | $ | — | | | | | $ | — | | | | | $ | 129 | | | | | | | | | | | ||||||||||||||||
Common-collective funds | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Global large cap equities
|
| | | | — | | | | | | 10,995 | | | | | | — | | | | | | 10,995 | | | | | | | | | | | ||||||||||||||||
Fixed income securities
|
| | | | — | | | | | | 8,565 | | | | | | — | | | | | | 8,565 | | | | | | | | | | | ||||||||||||||||
Global asset allocations/risk parity
|
| | | | — | | | | | | 6,685 | | | | | | — | | | | | | 6,685 | | | | | | | | | | | ||||||||||||||||
Mutual funds | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Global equities
|
| | | | 4,366 | | | | | | — | | | | | | — | | | | | | 4,366 | | | | | | | | | | | ||||||||||||||||
Global asset allocations/risk parity
|
| | | | 4,303 | | | | | | — | | | | | | — | | | | | | 4,303 | | | | | | | | | | | ||||||||||||||||
Other | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Global asset allocations/risk parity
|
| | | | — | | | | | | — | | | | | | 4,251 | | | | | | 4,251 | | | | | | | | | | | ||||||||||||||||
Other
|
| | | | — | | | | | | — | | | | | | 4,738 | | | | | | 4,738 | | | | | | | | | | | ||||||||||||||||
| | | | $ | 8,798 | | | | | $ | 26,245 | | | | | $ | 8,989 | | | | | $ | 44,032 | | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in Fair Value Level 3 assets
|
| |
2016
|
| |
2015
|
| ||||||
Balance at beginning of period
|
| | | $ | 8,989 | | | | | $ | 10,031 | | |
Redemptions
|
| | | | (3,656) | | | | | | (2,026) | | |
Purchases
|
| | | | 15,695 | | | | | | 1,280 | | |
Change in fair value
|
| | | | (515) | | | | | | (296) | | |
Balance at end of period
|
| | | $ | 20,513 | | | | | $ | 8,989 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Domestic
|
| | | $ | 2,027 | | | | | $ | 15,937 | | | | | $ | (26,226) | | |
Foreign
|
| | | | 74,734 | | | | | | 62,826 | | | | | | 32,534 | | |
Income (loss) before income taxes
|
| | | $ | 76,761 | | | | | $ | 78,763 | | | | | $ | 6,308 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Current provision (benefit): | | | | | |||||||||||||||
Federal
|
| | | $ | (2,889) | | | | | $ | (468) | | | | | $ | (673) | | |
State and local
|
| | | | (474) | | | | | | (48) | | | | | | (268) | | |
Foreign
|
| | | | 20,168 | | | | | | 13,868 | | | | | | 9,087 | | |
Total current provision
|
| | | | 16,805 | | | | | | 13,352 | | | | | | 8,146 | | |
Deferred provision (benefit): | | | | | |||||||||||||||
Federal
|
| | | | (2,985) | | | | | | 6,157 | | | | | | (1,632) | | |
State and local
|
| | | | 911 | | | | | | 1,311 | | | | | | (1,877) | | |
Foreign
|
| | | | (989) | | | | | | 5,933 | | | | | | 966 | | |
Change in valuation allowance–domestic
|
| | | | (19,588) | | | | | | (7,468) | | | | | | 3,509 | | |
Change in valuation allowance–foreign
|
| | | | (121) | | | | | | (802) | | | | | | 323 | | |
Total deferred provision
|
| | | | (22,772) | | | | | | 5,131 | | | | | | 1,289 | | |
Provision (benefit) for income taxes
|
| | | $ | (5,967) | | | | | $ | 18,483 | | | | | $ | 9,435 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Federal income tax rate
|
| | | | 35.0% | | | | | | 35.0% | | | | | | 35.0% | | |
State and local taxes, net of federal benefit
|
| | | | 0.2 | | | | | | 0.2 | | | | | | (0.9) | | |
Change in federal valuation allowance
|
| | | | (27.8) | | | | | | (7.8) | | | | | | 43.6 | | |
Foreign income tax rates and change in foreign valuation allowance
|
| | | | (5.5) | | | | | | (2.2) | | | | | | (67.2) | | |
Foreign withholding tax
|
| | | | 0.1 | | | | | | 0.3 | | | | | | 36.5 | | |
Foreign incentive tax rates
|
| | | | (4.5) | | | | | | (4.1) | | | | | | (30.1) | | |
Domestic tax on foreign income
|
| | | | 2.7 | | | | | | 0.9 | | | | | | 13.6 | | |
Change in liability for uncertain tax positions
|
| | | | (4.9) | | | | | | 1.5 | | | | | | (34.9) | | |
Repatriation of foreign earnings
|
| | | | — | | | | | | — | | | | | | 138.7 | | |
Permanent items
|
| | | | 1.5 | | | | | | (0.6) | | | | | | 18.8 | | |
Exercise of employee stock options
|
| | | | (4.6) | | | | | | — | | | | | | — | | |
Other
|
| | | | — | | | | | | 0.3 | | | | | | (3.5) | | |
Effective tax rate
|
| | | | (7.8)% | | | | | | 23.5% | | | | | | 149.6% | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Deferred tax assets: | | | | ||||||||||
Employee related accruals
|
| | | $ | 12,603 | | | | | $ | 9,778 | | |
Inventory
|
| | | | 2,573 | | | | | | 3,889 | | |
Environmental remediation
|
| | | | 2,208 | | | | | | 2,155 | | |
Net operating loss carry forwards–domestic
|
| | | | 13,768 | | | | | | 13,641 | | |
Net operating loss carry forwards–foreign
|
| | | | 4,346 | | | | | | 4,127 | | |
Other
|
| | | | 7,566 | | | | | | 5,418 | | |
| | | | | 43,064 | | | | | | 39,008 | | |
Valuation allowance
|
| | | | (4,614) | | | | | | (26,622) | | |
| | | | | 38,450 | | | | | | 12,386 | | |
Deferred tax liabilities: | | | | ||||||||||
Property, plant and equipment and intangible assets
|
| | | | (9,725) | | | | | | (11,088) | | |
Other
|
| | | | (1,956) | | | | | | (461) | | |
| | | | | (11,681) | | | | | | (11,549) | | |
Net deferred tax asset
|
| | | $ | 26,769 | | | | | $ | 837 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Prepaid expenses and other current assets
|
| | | $ | — | | | | | $ | 7,456 | | |
Other assets
|
| | | | 28,019 | | | | | | 222 | | |
Other liabilities
|
| | | | (1,250) | | | | | | (6,841) | | |
| | | | $ | 26,769 | | | | | $ | 837 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Balance at beginning of period
|
| | | $ | 26,622 | | | | | $ | 32,892 | | | | | $ | 27,753 | | |
Provision for income taxes
|
| | | | (19,709) | | | | | | (6,270) | | | | | | 5,139 | | |
Net operating loss utilization
|
| | | | (2,299) | | | | | | — | | | | | | — | | |
Balance at end of period
|
| | | $ | 4,614 | | | | | $ | 26,622 | | | | | $ | 32,892 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Unrecognized tax benefits–beginning of period
|
| | | $ | 8,078 | | | | | $ | 7,420 | | | | | $ | 12,261 | | |
Tax position changes–prior periods
|
| | | | 188 | | | | | | (24) | | | | | | 1,276 | | |
Tax position changes–current period
|
| | | | 472 | | | | | | 1,945 | | | | | | 1,036 | | |
Settlements with tax authorities
|
| | | | — | | | | | | — | | | | | | (2,215) | | |
Lapse of statute of limitations
|
| | | | (3,700) | | | | | | (907) | | | | | | (5,157) | | |
Translation
|
| | | | (92) | | | | | | (356) | | | | | | 219 | | |
Unrecognized tax benefits–end of period
|
| | | | 4,946 | | | | | | 8,078 | | | | | | 7,420 | | |
Interest and penalties–end of period
|
| | | | 308 | | | | | | 1,326 | | | | | | 1,344 | | |
Total liabilities related to uncertain tax
positions |
| | | $ | 5,254 | | | | | $ | 9,404 | | | | | $ | 8,764 | | |
|
For the Years Ended June 30
|
| |
Capital
leases |
| |
Non-cancellable
operating leases |
| ||||||
2017 | | | | $ | 7 | | | | | $ | 4,665 | | |
2018 | | | | | — | | | | | | 4,200 | | |
2019 | | | | | — | | | | | | 3,632 | | |
2020 | | | | | — | | | | | | 3,425 | | |
2021 | | | | | — | | | | | | 3,002 | | |
Thereafter | | | | | — | | | | | | 2,793 | | |
Total minimum lease payments
|
| | | $ | 7 | | | | | $ | 21,717 | | |
|
Instrument
|
| |
Hedge
|
| |
Notional
amount at June 30, 2016 |
| |
Fair value as of June 30,
|
| |||||||||
|
2016
|
| |
2015
|
| ||||||||||||||
Options
|
| |
Brazilian Real calls
|
| |
R$ 117,000
|
| | | $ | 3,027 | | | | | $ | 493 | | |
Options
|
| |
Brazilian Real puts
|
| |
R$ 117,000
|
| | | $ | (372) | | | | | $ | (2,035) | | |
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||||||||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||||||||
Derivatives
|
| | | $ | — | | | | | $ | 2,655 | | | | | $ | — | | | | | $ | — | | | | | $ | (1,542) | | | | | $ | — | | |
Deferred consideration on acquisitions
|
| | | | — | | | | | | — | | | | | | 6,745 | | | | | | — | | | | | | — | | | | | | 5,465 | | |
| | |
2016
|
| |
2015
|
| ||||||
Balance at beginning of period
|
| | | $ | 5,465 | | | | | $ | 1,015 | | |
MJB Acquisition
|
| | | | — | | | | | | 4,769 | | |
Acquisition-related accrued interest
|
| | | | 1,476 | | | | | | 216 | | |
Payment and other
|
| | | | (196) | | | | | | (535) | | |
Balance at end of period
|
| | | $ | 6,745 | | | | | $ | 5,465 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Net sales | | | | | |||||||||||||||
MFAs and other
|
| | | $ | 339,916 | | | | | $ | 335,735 | | | | | $ | 326,568 | | |
Nutritional Specialties
|
| | | | 94,084 | | | | | | 81,702 | | | | | | 63,068 | | |
Vaccines
|
| | | | 52,140 | | | | | | 53,363 | | | | | | 41,417 | | |
Animal Health
|
| | | | 486,140 | | | | | | 470,800 | | | | | | 431,053 | | |
Mineral Nutrition
|
| | | | 216,685 | | | | | | 227,102 | | | | | | 201,599 | | |
Performance Products
|
| | | | 48,701 | | | | | | 50,689 | | | | | | 59,262 | | |
Total segments
|
| | | $ | 751,526 | | | | | $ | 748,591 | | | | | $ | 691,914 | | |
Depreciation and amortization | | | | | |||||||||||||||
Animal Health
|
| | | $ | 17,149 | | | | | $ | 15,430 | | | | | $ | 15,484 | | |
Mineral Nutrition
|
| | | | 2,467 | | | | | | 2,468 | | | | | | 2,368 | | |
Performance Products
|
| | | | 807 | | | | | | 577 | | | | | | 412 | | |
Total segments
|
| | | $ | 20,423 | | | | | $ | 18,475 | | | | | $ | 18,264 | | |
Adjusted EBITDA | | | | | |||||||||||||||
Animal Health
|
| | | $ | 127,442 | | | | | $ | 120,259 | | | | | $ | 100,280 | | |
Mineral Nutrition
|
| | | | 14,971 | | | | | | 14,429 | | | | | | 11,636 | | |
Performance Products
|
| | | | 970 | | | | | | 2,646 | | | | | | 4,626 | | |
Total segments
|
| | | $ | 143,383 | | | | | $ | 137,334 | | | | | $ | 116,542 | | |
Reconciliation of income before income taxes to Adjusted EBITDA
|
| | | | |||||||||||||||
Income before income taxes
|
| | | $ | 76,761 | | | | | $ | 78,763 | | | | | $ | 6,308 | | |
Interest expense, net
|
| | | | 16,592 | | | | | | 14,305 | | | | | | 32,962 | | |
Depreciation and amortization – Total segments
|
| | | | 20,423 | | | | | | 18,475 | | | | | | 18,264 | | |
Depreciation and amortization – Corporate
|
| | | | 3,029 | | | | | | 3,129 | | | | | | 3,189 | | |
Corporate costs
|
| | | | 29,323 | | | | | | 27,315 | | | | | | 25,945 | | |
Acquisition-related cost of goods sold
|
| | | | 2,566 | | | | | | — | | | | | | — | | |
Acquisition-related accrued compensation
|
| | | | 1,680 | | | | | | 747 | | | | | | — | | |
Acquisition-related transaction costs
|
| | | | 618 | | | | | | — | | | | | | — | | |
Loss on insurance claim
|
| | | | — | | | | | | — | | | | | | 5,350 | | |
Foreign currency (gains) losses, net
|
| | | | (7,609) | | | | | | (5,400) | | | | | | 1,753 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | — | | | | | | 22,771 | | |
Adjusted EBITDA – Total segments
|
| | | $ | 143,383 | | | | | $ | 137,334 | | | | | $ | 116,542 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Identifiable assets | | | | | | | | | | | | | |
Animal Health
|
| | | $ | 444,751 | | | | | $ | 349,345 | | |
Mineral Nutrition
|
| | | | 57,939 | | | | | | 58,722 | | |
Performance Products
|
| | | | 21,557 | | | | | | 21,888 | | |
Total segments
|
| | | | 524,247 | | | | | | 429,955 | | |
Corporate
|
| | | | 86,126 | | | | | | 63,363 | | |
Total
|
| | | $ | 610,373 | | | | | $ | 493,318 | | |
|
For the Years Ended June 30
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Net sales | | | | | |||||||||||||||
United States
|
| | | $ | 473,247 | | | | | $ | 475,942 | | | | | $ | 435,414 | | |
Israel
|
| | | | 89,999 | | | | | | 93,459 | | | | | | 89,739 | | |
Latin America and Canada
|
| | | | 105,667 | | | | | | 99,578 | | | | | | 84,775 | | |
Europe and Africa
|
| | | | 36,177 | | | | | | 36,397 | | | | | | 38,563 | | |
Asia/Pacific
|
| | | | 46,436 | | | | | | 43,215 | | | | | | 43,423 | | |
| | | | $ | 751,526 | | | | | $ | 748,591 | | | | | $ | 691,914 | | |
|
As of June 30
|
| |
2016
|
| |
2015
|
| ||||||
Property, plant and equipment, net | | | | ||||||||||
United States
|
| | | $ | 56,735 | | | | | $ | 43,775 | | |
Israel
|
| | | | 46,706 | | | | | | 36,367 | | |
Brazil
|
| | | | 22,720 | | | | | | 22,767 | | |
Other
|
| | | | 1,162 | | | | | | 1,505 | | |
| | | | $ | 127,323 | | | | | $ | 104,414 | | |
|
| | | | Phibro Animal Health Corporation | | |||
| August 29, 2016 | | | By: | | |
/s/ Jack C. Bendheim
Jack C. Bendheim
Chairman, President and Chief Executive Officer |
|
| | | | Phibro Animal Health Corporation | | |||
| August 29, 2016 | | | By: | | |
/s/ Jack C. Bendheim
Jack C. Bendheim
Chairman, President and Chief Executive Officer |
|
| August 29, 2016 | | | By: | | |
/s/ Richard G. Johnson
Richard G. Johnson
Chief Financial Officer |
|
| August 29, 2016 | | | By: | | |
/s/ Daniel M. Bendheim
Daniel M. Bendheim
Director and Executive Vice President, Corporate Strategy |
|
| August 29, 2016 | | | By: | | |
/s/ Gerald K. Carlson
Gerald K. Carlson
Director |
|
| August 29, 2016 | | | By: | | |
/s/ E. Thomas Corcoran
E. Thomas Corcoran
Director |
|
| August 29, 2016 | | | By: | | |
/s/ Sam Gejdenson
Sam Gejdenson
Director |
|
| August 29, 2016 | | | By: | | |
/s/ George Gunn
George Gunn
Director |
|
| August 29, 2016 | | | By: | | |
/s/ Mary Lou Malanoski
Mary Lou Malanoski
Director |
|
| August 29, 2016 | | | By: | | |
/s/ Carol A. Wrenn
Carol A. Wrenn
Director |
|
| Exhibit 10.35 | | | Amendment to Amended and Restated Employment Agreement dated May 31, 2016, by and between Phibro Animal Health Corporation and Gerald K. Carlson | |
| Exhibit 23 | | | Consent of Independent Registered Public Accounting Firm | |
| Exhibit 31.1 | | | Chief Executive Officer—Certification pursuant to Sarbanes-Oxley Act of 2002 Section 302 | |
| Exhibit 31.2 | | | Chief Financial Officer—Certification pursuant to Sarbanes-Oxley Act of 2002 Section 302 | |
| Exhibit 32.1* | | | Chief Executive Officer—Certification pursuant to Sarbanes-Oxley Act of 2002 Section 906 | |
| Exhibit 32.2* | | | Chief Financial Officer—Certification pursuant to Sarbanes-Oxley Act of 2002 Section 906 | |
| Exhibit 101.INS** | | | XBRL Instance Document | |
| Exhibit 101.SCH** | | | XBRL Taxonomy Extension Schema Document | |
| Exhibit 101.CAL** | | | XBRL Taxonomy Extension Calculation Linkbase Document | |
| Exhibit 101.DEF** | | | XBRL Taxonomy Extension Definition Linkbase Document | |
| Exhibit 101.LAB** | | | XBRL Taxonomy Extension Label Linkbase Document | |
| Exhibit 101.PRE** | | | XBRL Taxonomy Extension Presentation Linkbase Document | |