UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 21, 2015
NEOGEN CORPORATION
(Exact name of registrant as specified in its charter)
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MICHIGAN |
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0-17988 |
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38-2367843 |
(State or other jurisdiction
of incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
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620 Lesher Place Lansing, Michigan |
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48912 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code 517-372-9200
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 |
Results of Operations and Financial Condition |
On September 21, 2015, Neogen
Corporation issued a press release announcing results of operations for the fiscal quarter and year to date period ended August 31, 2015. A copy of the press release is attached as Exhibit 99.1 to this report. This Form 8-K and the attached
exhibit shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not incorporated by reference into any filing of the Registrant, whether made before or after the date of this
report, regardless of any general incorporation language in the filing.
Item 9.01 |
Financial Statements and Exhibits |
(d) Exhibits
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99.1 |
Press Release dated September 21, 2015 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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NEOGEN CORPORATION |
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(Registrant) |
Date: September 21, 2015 |
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/s/ Steven J. Quinlan |
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Steven J. Quinlan |
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Vice President & CFO |
Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT: Steven J. Quinlan,
Vice President and CFO
517/372-9200
Neogen reports 11% revenue increase
LANSING, Mich., Sept. 21, 2015 Neogen Corporation (Nasdaq: NEOG) announced today that revenues for the first quarter of its 2016 fiscal year, which
ended Aug. 31, were $74,860,000 an 11% increase compared to revenues of $67,599,000 in the first quarter of last year.
First quarter net income
increased 5% to $9,323,000, or $0.25 per share, from the previous years first quarter income of $8,883,000, or $0.24 a share. The revenues and net income represent first quarter records for the 33-year-old company.
We are pleased to report a solid start to our new fiscal year, despite facing the same currency headwinds that all U.S. companies with significant
international sales have been facing in recent months, said James Herbert, Neogens chief executive officer and chairman. We were able to complete two strategic acquisitions in the quarter, while building our core business through
broad-based increases in sales across many of our diverse product lines and market segments.
The first quarter was the 94th of the past 99 quarters
that Neogen reported revenue increases compared with the previous year including all consecutive quarters in the last 10 years.
The
continuing double-digit organic growth in our food safety diagnostic product lines, such as our tests for food allergens and mold toxins in grains, points to the effectiveness of recent sales and marketing initiatives, said Richard Calk,
Neogens president and chief operating officer. As provisions of the Food Safety Modernization Act, or FSMA, continue to be refined and implemented, we have positioned ourselves to be the food industrys partner in FSMA compliance.
We have initiated a similar approach in our Animal Safety segment, as we partner with animal protein producers as they implement programs such as Raised Without Antibiotics. Many poultry and pork producers are pursuing these programs to
satisfy the increasing consumer demand for meat products that are virtually guaranteed not to contain antibiotics.
Expressed as a percentage of
sales, operating income was 19.9% for the quarter, the same as last years first quarter. Neogens gross margin was 50.5% of sales in its first quarter of the current year, compared to the 50.4% recorded in the companys first quarter
of its 2015 fiscal year.
In most respects, our first quarter delivered solid financial results, including nearly reaching our goal of reporting
operating income that is 20% of our sales, said Steve Quinlan, Neogens chief financial officer. However, currency fluctuations continued to negatively impact both our top and bottom lines, and resulted in an adverse currency effect
of about $0.02 per share to earnings for the first quarter. These impacts were especially felt in conversions to the U.S. dollar from the Brazilian real and Mexican peso. Despite the difficult currency environment, our Mexican subsidiary was still
able to achieve a 26% increase in sales in the first quarter, and our Brazilian subsidiary recorded a 16% increase.
Revenues for the companys
Food Safety segment increased 11% during the first quarter compared to the prior years first three months. Sales of Neogens general microbiology products increased 65% in the first quarter of fiscal 2016 compared to the prior year, aided
by the Oct. 1, 2014 acquisition of BioLumix®. The increase was also fueled by a 24% improvement in sales of the companys consumable
Soleris® vials to detect microorganisms in food, nutraceuticals and other consumer items. The BioLumix and Soleris test systems both detect spoilage organisms in much less time than
traditional microbiology methods. Overall organic growth for the Food Safety segment was 7% for the quarter.
Sales of Neogens rapid tests for mycotoxins, which are mold toxins primarily found in grains, increased 12%
in the current first quarter, as sales of tests for all six of the major mycotoxins increased compared to the previous fiscal year. Sales of Neogens rapid tests for food allergens, such as gluten and peanuts, increased 17% in the quarter
compared to the prior year. The growth was aided by increased global regulatory efforts and consumer demand to ensure products represented as being free of food allergens are correctly labeled. The companys sales of its general sanitation
diagnostics, which includes its recently launched AccuPoint® Advanced ATP Hygiene Monitoring System, increased 12% in the current quarter when compared to the prior year.
Sales of the companys Acumedia® dehydrated culture media products increased significantly in
the quarter when compared to the first quarter of fiscal 2015, primarily the result of a large order for a customers research project. Neogens Aug. 27 acquisition of United Kingdom-based Lab M Holdings, a developer, manufacturer and
supplier of microbiological culture media and diagnostic systems, is expected to complement Neogens existing culture media business, as well as enhance its ability to improve its food safety diagnostics.
Neogens Animal Safety segment reported a revenue increase of 10%, almost entirely organic, in its 2016 first quarter when compared to 2015. The
segments revenues included a minor contribution from the companys new operations in India. On June 1, Neogen acquired the assets of Sterling Test House, and announced that the acquired business will serve as a base for the
companys new operations in India.
Sales of the companys rodenticides increased approximately 39% in the current quarter compared to the prior
year, as its products continue to make gains in the important global agricultural rodenticide market. Sales of Neogens small animal supplements increased 53% in the current year when compared to the prior year, as the company responded to a
market need for supplements used for thyroid hormone replacement therapy in dogs.
Revenues from the companys GeneSeek® veterinary genomic operations in Lincoln, Neb., rose approximately 12% in the first quarter of 2016 compared to fiscal 2015. This growth resulted from increased market penetration of its
proprietary genomic products and new poultry business.
Neogen Corporation develops and markets products dedicated to food and animal safety. The
companys Food Safety Division markets dehydrated culture media and diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases and sanitation concerns. Neogens Animal Safety Division
is a leader in the development of animal genomics along with the manufacturing and distribution of a variety of animal healthcare products, including diagnostics, pharmaceuticals, veterinary instruments, wound care and disinfectants.
Certain portions of this news release that do not relate to historical financial information constitute forward-looking statements. These forward-looking
statements are subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those expected depending on a variety of factors listed in Managements Discussion and Analysis of
Financial Condition and Results of Operations in the Companys most recently filed Form 10-K.
NEOGEN CORPORATION UNAUDITED SUMMARIZED CONSOLIDATED OPERATING DATA
(In thousands, except for per share and percentages)
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Quarter ended Aug. 31 |
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2015 |
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2014 |
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Revenue |
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Food Safety |
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$ |
34,459 |
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$ |
30,963 |
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Animal Safety |
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40,401 |
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36,636 |
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Total revenue |
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74,860 |
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67,599 |
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Cost of sales |
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37,068 |
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33,523 |
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Gross margin |
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37,792 |
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34,076 |
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Operating expenses |
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Sales & marketing |
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13,571 |
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12,220 |
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Administrative |
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6,753 |
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6,013 |
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Research & development |
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2,573 |
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2,404 |
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Total operating expenses |
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22,897 |
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20,637 |
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Operating income |
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14,895 |
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13,439 |
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Other income (expense) |
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(456 |
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270 |
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Income before tax |
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14,439 |
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13,709 |
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Income tax |
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5,150 |
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4,800 |
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Net income |
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$ |
9,289 |
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$ |
8,909 |
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Net loss (income) attributable to non-controlling interest |
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$ |
34 |
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(26 |
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Net income attributable to Neogen Corp |
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$ |
9,323 |
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$ |
8,883 |
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Net income attributable to Neogen Corp per diluted share |
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$ |
0.25 |
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$ |
0.24 |
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Other information: |
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Shares to calculate per share |
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37,755 |
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37,290 |
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Depreciation & amortization |
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$ |
2,707 |
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$ |
2,514 |
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Interest income |
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68 |
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45 |
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Gross margin (% of sales) |
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50.5 |
% |
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50.4 |
% |
Operating income (% of sales) |
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19.9 |
% |
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19.9 |
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Revenue increase vs. FY 2015 |
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10.7 |
% |
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Net income vs. FY 2015 |
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5.0 |
% |
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NEOGEN CORPORATION SUMMARIZED CONSOLIDATED BALANCE SHEET DATA
(In thousands) |
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Aug. 31 2015 |
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May 31 2015 |
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(Unaudited) |
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(Audited) |
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Assets |
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Current assets |
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Cash & investments |
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$ |
110,955 |
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$ |
114,164 |
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Accounts receivable |
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59,041 |
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59,208 |
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Inventory |
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56,107 |
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51,601 |
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Other current assets |
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9,258 |
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6,222 |
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Total current assets |
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235,361 |
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231,195 |
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Property & equipment, net |
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49,294 |
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44,473 |
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Goodwill & other assets |
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123,948 |
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116,513 |
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Total assets |
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$ |
408,603 |
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$ |
392,181 |
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Liabilities & Equity |
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Current liabilities |
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$ |
26,900 |
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$ |
25,456 |
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Other long-term liabilities |
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15,797 |
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15,762 |
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Equity: Shares outstanding 37,372 in Aug. & 37,128 in May |
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365,906 |
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350,963 |
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Total liabilities & equity |
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$ |
408,603 |
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$ |
392,181 |
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