LANSING, Mich., Sept. 21, 2015 /PRNewswire/ -- 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 year's 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,
Neogen's 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, Neogen's 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 industry's 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 year's first quarter. Neogen's
gross margin was 50.5% of sales in its first quarter of the current
year, compared to the 50.4% recorded in the company's 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, Neogen's 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 company's Food Safety segment increased 11%
during the first quarter compared to the prior year's first three
months. Sales of Neogen's 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 company's 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 Neogen's 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
Neogen's 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 company's 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 company's 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 customer's research project. Neogen's
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 Neogen's
existing culture media business, as well as enhance its ability to
improve its food safety diagnostics.
Neogen's Animal Safety segment reported a revenue increase of
10%, almost entirely organic, in its 2016 first quarter when
compared to 2015. The segment's revenues included a minor
contribution from the company's 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
company's new operations in India.
Sales of the company's 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 Neogen's 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 company's 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 company's 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. Neogen's 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 Management's Discussion
and Analysis of Financial Condition and Results of Operations in
the Company's most recently filed Form 10-K.
NEOGEN CORPORATION
UNAUDITED SUMMARIZED CONSOLIDATED OPERATING DATA
(In thousands, except
for per share and percentages)
|
|
|
Quarter
ended Aug. 31
|
|
|
|
2015
|
2014
|
|
|
|
Revenue
|
Food Safety
|
$ 34,459
|
$ 30,963
|
|
|
|
Animal
Safety
|
40,401
|
36,636
|
|
|
|
Total
revenue
|
74,860
|
67,599
|
|
|
|
Cost of
sales
|
37,068
|
33,523
|
|
|
|
Gross
margin
|
37,792
|
34,076
|
|
|
|
Operating
expenses
|
Sales &
marketing
|
13,571
|
12,220
|
|
|
|
Administrative
|
6,753
|
6,013
|
|
|
|
Research &
development
|
2,573
|
2,404
|
|
|
|
Total operating
expenses
|
22,897
|
20,637
|
|
|
|
Operating
income
|
14,895
|
13,439
|
|
|
|
Other income
(expense)
|
(456)
|
270
|
|
|
|
Income before
tax
|
14,439
|
13,709
|
|
|
|
Income tax
|
5,150
|
4,800
|
|
|
|
Net income
|
$ 9,289
|
$ 8,909
|
|
|
|
Net loss (income)
attributable
to non-controlling interest
|
$
34
|
$ (26)
|
|
|
|
Net income
attributable to Neogen Corp
|
$ 9,323
|
$ 8,883
|
|
|
|
Net income
attributable to Neogen Corp
|
|
|
|
|
|
per diluted
share
|
$
0.25
|
$
0.24
|
|
|
|
|
Other
information:
|
Shares to calculate
per share
|
37,755
|
37,290
|
|
|
|
Depreciation &
amortization
|
$ 2,707
|
$ 2,514
|
|
|
|
Interest
income
|
68
|
45
|
|
|
|
Gross margin (% of
sales)
|
50.5%
|
50.4%
|
|
|
|
Operating income (% of
sales)
|
19.9%
|
19.9%
|
|
|
|
Revenue increase vs.
FY 2015
|
10.7%
|
|
|
|
|
Net income vs. FY
2015
|
5.0%
|
|
|
|
|
NEOGEN CORPORATION
SUMMARIZED CONSOLIDATED
BALANCE SHEET
DATA
(In
thousands)
|
|
Aug.
31
|
May
31
|
|
2015
|
2015
|
|
(Unaudited)
|
(Audited)
|
Assets
|
|
|
Current
assets
|
|
|
Cash &
investments
|
$ 110,955
|
$ 114,164
|
Accounts
receivable
|
59,041
|
59,208
|
Inventory
|
56,107
|
51,601
|
Other current
assets
|
9,258
|
6,222
|
Total current
assets
|
235,361
|
231,195
|
Property &
equipment, net
|
49,294
|
44,473
|
Goodwill & other
assets
|
123,948
|
116,513
|
Total
assets
|
$ 408,603
|
$ 392,181
|
|
|
|
Liabilities &
Equity
|
|
|
Current
liabilities
|
$ 26,900
|
$ 25,456
|
Other long-term
liabilities
|
15,797
|
15,762
|
Equity: Shares
outstanding
37,372 in Aug.
& 37,128 in May
|
365,906
|
350,963
|
Total liabilities
& equity
|
$ 408,603
|
$ 392,181
|
CONTACT:
|
Steven J. Quinlan,
Vice President and CFO
|
|
517/372-9200
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/neogen-reports-11-revenue-increase-300146093.html
SOURCE Neogen Corporation