LANSING, Mich., Jan. 3, 2018 /PRNewswire/ -- Neogen
Corporation (NASDAQ: NEOG) announced today that its revenues for
the second quarter of its 2018 fiscal year, which ended
Nov. 30, increased 12% to
$101,817,000, from the previous
year's second quarter revenues of $90,717,000. Current year-to-date revenues were
$197,073,000, up 13% compared to
$174,362,000 for the same period a
year ago.
Second quarter net income was $17,100,000, an increase of 53% compared to the
prior year's $11,151,000. Adjusted
for a 4-for-3 stock split effective Dec. 29,
2017, earnings per share in the current quarter were
$0.33, compared to $0.22 a year ago. In the current quarter, Neogen
benefitted $3.4 million, or
$0.07 per share, due to the adoption
of Accounting Standard Update 2016-09 on June 1, 2017, which changes how companies report
the excess tax benefits of employee stock option exercises. Current
year-to-date net income was $29,014,000, or $0.56 per share after being adjusted for the
split, compared to $21,032,000, or an
adjusted $0.41 per share, for the
same period a year ago. The quarterly revenue and net income
results represent records for the 35-year-old company.
"We are pleased to report strong performance that combined
organic growth and the continued integration of recent
acquisitions. In addition, recent changes in accounting rules added
a tax benefit that boosted our net income," said James Herbert, Neogen's executive chairman. "We
were also pleased to reward shareholders with our recent stock
split. The split reflects our Board's strong belief in Neogen's
long-term growth prospects, and enhances the availability and
liquidity of our shares to allow more participation in Neogen's
success."
The second quarter was the 103rd of the past 108 quarters that
Neogen reported revenue increases as compared with the previous
year — a record spanning 27 years. The current quarter marked the
first time Neogen has exceeded $100
million in quarterly revenues.
"We are particularly pleased with the strong organic growth of a
number of our existing core product lines in the current quarter,"
said John Adent, Neogen's president
and chief executive officer. "Within our food safety segment, we
had substantial organic sales increases in our line of dehydrated
culture media, and test kits to detect sanitation concerns, dairy
antibiotics, and foodborne pathogens, especially Listeria.
In our animal safety segment, we also recorded increases in sales
of veterinary instruments, rodent control products, and continued
our strong growth in our agricultural genomic
services."
Expressed as a percentage of sales, operating income was 17.7%
for the second quarter, compared to 18.6% in the same quarter a
year ago. Neogen's gross margin was 48.4% of sales in its second
quarter of the current year, compared to 48.1% recorded in the same
quarter of the prior fiscal year.
"We continue to generate strong cash flow from operations, which
has enabled us to reinvest in the business, particularly in areas
such as information technology," said Steve
Quinlan, Neogen's chief financial officer. "Our strong cash
position will allow us to pursue our identified growth strategies
going forward."
Revenues for the company's Food Safety segment increased 21%
during the second quarter compared to the prior year quarter, aided
by acquisitions within the past year, which report through Neogen's
operations in Scotland and
Brazil. Sales of Neogen's line of
general sanitation products increased 23% in the current quarter
compared to the prior year quarter. The line includes
AccuPoint®, a system that allows users to instantly
verify that surfaces and equipment have been effectively sanitized.
The segment's comparative results also included a 20% increase in
sales of culture media products.
Also of note in the Food Safety segment's current second quarter
results was an 18% increase in sales of test kits to detect drug
residues in milk, and a 14% increase in foodborne pathogen
detection tests — including a 43% increase in sales of tests to
detect Listeria. In June, Neogen launched Listeria
Right Now™, an innovative test that detects
Listeria in environmental samples in under 60 minutes —
without the need to enrich samples.
In the current quarter, revenues from international sources
increased to 38% of total revenues, compared to 34% in the prior
year quarter. Overall, international sales increased 24% over the
prior year, aided by acquisitions. Revenues from Neogen do
Brasil increased 22% in U.S.
dollars in the current quarter, Mexico-based Neogen Latinoamerica's sales
increased 36%, Neogen Europe's revenues rose 15% in the quarter,
Neogen China's revenues increased 23%, and Neogen India's revenues
increased 48%, albeit from a small base.
Neogen's Animal Safety segment reported a revenue increase for
the second quarter of 5%, led by growth in its genomics business, a
10% increase in sales of its animal care line of products, a 14%
increase in its rodent control product line, and a 19% increase in
sales of veterinary instruments, which included a 17% increase in
sales of its detectable needles. Revenues from Neogen's worldwide
animal genomics business increased 19% in the second quarter of
fiscal 2018 compared to the prior year.
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 worldwide biosecurity products, animal
genomics testing, and the manufacturing and distribution of a
variety of animal healthcare products, including diagnostics,
pharmaceuticals and veterinary instruments.
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 Nov.
30
|
|
Six months ended
Nov. 30
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Revenue
|
Food Safety
|
$
|
49,560
|
|
$
|
40,961
|
|
$
|
96,295
|
|
$
|
80,118
|
Animal
Safety
|
|
52,257
|
|
|
49,756
|
|
|
100,778
|
|
|
94,244
|
Total
revenue
|
|
101,817
|
|
|
90,717
|
|
|
197,073
|
|
|
174,362
|
Cost of
sales
|
|
52,546
|
|
|
47,126
|
|
|
101,931
|
|
|
90,292
|
Gross
margin
|
|
49,271
|
|
|
43,591
|
|
|
95,142
|
|
|
84,070
|
Operating
expenses
|
Sales &
marketing
|
|
17,815
|
|
|
15,687
|
|
|
34,838
|
|
|
30,484
|
Administrative
|
|
10,491
|
|
|
8,284
|
|
|
19,817
|
|
|
16,546
|
Research &
development
|
|
2,967
|
|
|
2,768
|
|
|
6,065
|
|
|
5,446
|
Total operating
expenses
|
|
31,273
|
|
|
26,739
|
|
|
60,720
|
|
|
52,476
|
Operating
income
|
|
17,998
|
|
|
16,852
|
|
|
34,422
|
|
|
31,594
|
Other income
(expense)
|
|
1,055
|
|
|
(81)
|
|
|
1,867
|
|
|
411
|
Income before
tax
|
|
19,053
|
|
|
16,771
|
|
|
36,289
|
|
|
32,005
|
Income tax
|
|
1,900
|
|
|
5,600
|
|
|
7,200
|
|
|
10,900
|
Net income
|
$
|
17,153
|
|
$
|
11,171
|
|
$
|
29,089
|
|
$
|
21,105
|
Net (income)
attributable
to non-controlling interest
|
|
(53)
|
|
|
(20)
|
|
|
(75)
|
|
|
(73)
|
Net income
attributable to Neogen Corp
|
$
|
17,100
|
|
$
|
11,151
|
|
$
|
29,014
|
|
$
|
21,032
|
Net income
attributable to Neogen Corp
|
|
|
|
|
|
|
|
|
|
|
|
per diluted
share (1)
|
$
|
0.33
|
|
$
|
0.22
|
|
$
|
0.56
|
|
$
|
0.41
|
|
Other
information:
|
Shares to calculate
per share (1)
|
|
51,961
|
|
|
51,016
|
|
|
51,778
|
|
|
50,911
|
Depreciation &
amortization
|
$
|
4,277
|
|
$
|
3,560
|
|
$
|
8,270
|
|
$
|
7,038
|
Interest
income
|
|
429
|
|
|
296
|
|
|
798
|
|
|
419
|
Gross margin (% of
sales)
|
|
48.4%
|
|
|
48.1%
|
|
|
48.3%
|
|
|
48.2%
|
Operating income (% of
sales)
|
|
17.7%
|
|
|
18.6%
|
|
|
17.5%
|
|
|
18.1%
|
Revenue increase vs.
FY 2017
|
|
12.2%
|
|
|
|
|
|
13.0%
|
|
|
|
Net income vs. FY
2017
|
|
53.3%
|
|
|
|
|
|
38.0%
|
|
|
|
(1) Reflects
effect of Dec. 29, 2017, 4-for-3 stock split
|
NEOGEN CORPORATION
SUMMARIZED CONSOLIDATED
BALANCE SHEET
DATA
(In
thousands)
|
|
|
Nov.
30
|
|
|
May
31
|
|
|
2017
|
|
|
2017
|
|
|
(Unaudited)
|
|
|
(Audited)
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash &
investments
|
$
|
175,835
|
|
$
|
143,635
|
Accounts
receivable
|
|
74,859
|
|
|
68,576
|
Inventory
|
|
73,713
|
|
|
73,144
|
Other current
assets
|
|
15,533
|
|
|
7,606
|
Total current
assets
|
|
339,940
|
|
|
292,961
|
Property &
equipment, net
|
|
66,874
|
|
|
61,748
|
Goodwill & other
assets
|
|
174,214
|
|
|
173,700
|
Total
assets
|
$
|
581,028
|
|
$
|
528,409
|
|
|
|
|
|
|
Liabilities &
Equity
|
|
|
|
|
|
Current
liabilities
|
$
|
37,945
|
|
|
36,002
|
Long-term
liabilities
|
|
22,439
|
|
|
20,650
|
Equity: Shares
outstanding
51,509 in Nov. & 50,932 in May
(1)
|
|
520,644
|
|
|
471,757
|
Total liabilities
& equity
|
$
|
581,028
|
|
$
|
528,409
|
(1) Reflects
effect of Dec. 29, 2017, 4-for-3 stock split
|
CONTACT:
|
Steve Quinlan,
Vice President & CFO
|
|
Neogen
Corporation, 517/372-9200
|
View original
content:http://www.prnewswire.com/news-releases/neogen-reports-record-revenues-and-earnings-300576976.html
SOURCE Neogen Corporation