- Revenue of $236.8 million.
- Net loss of $5.4 million;
$(0.02) per diluted share.
- Adjusted Net Income of $22.4
million; $0.10 per diluted
share.
- Adjusted EBITDA of $53.0
million.
LANSING,
Mich., July 30, 2024 /PRNewswire/ -- Neogen
Corporation (NASDAQ: NEOG) announced today the results of the
fourth quarter ended May 31,
2024.
"After crossing multiple significant integration milestones in
the third quarter related to the integration of the former
3M Food Safety business, progress
continued on multiple fronts in the fourth quarter," said
John Adent, Neogen's President and
Chief Executive Officer. "We completed the relocation of the sample
handling product line, which we expect to have running at full
production by the end of the first quarter. We also saw improvement
in our order fulfillment rates throughout the quarter, which have
subsequently improved to the point where they are no longer a
constraint."
Adent continued, "End-market conditions remained soft, but
stable compared to the third quarter. With respect to Food Safety
specifically, where food production volumes were still mostly down
on a year-over-year basis, we are expecting a trend of slow,
gradual improvement over the course of the fiscal year. The
progress we've made on resolving our shipping challenges has
allowed our commercial teams to focus on what they do best – demand
generation – leveraging the broadest product portfolio in the
industry and Neogen's reputation for consultative customer service,
along with the expected improvement in the end-market backdrop.
While we still have work ahead of us, the peak capital expenditure
and working capital outflows related to the integration are behind
us. As a result of our significant integration progress, we're able
to focus on driving improvements in the combined operations and are
looking forward to leveraging the full capabilities of our business
in what we expect to be an unconstrained operating environment in
fiscal 2025."
Financial and Business Highlights
Revenues for the fourth quarter were $236.8 million, a decrease of 2.1% compared to
$241.8 million in the prior year.
Core revenue, which excludes the impacts of foreign currency
translation, as well as acquisitions completed and product lines
discontinued in the last 12 months, was 2.0%. Acquisitions and
discontinued product lines contributed 0.1%, while foreign currency
had a negative impact of 4.2%.
Revenues for the full year were $924.2
million, an increase of 12.4% compared to $822.4 million in the prior year. Core revenue
growth was 1.8%. Acquisitions and discontinued product lines
contributed 11.9%, while foreign currency was a headwind of
1.3%.
Net loss for the fourth quarter was $5.4
million, or $(0.02) per
diluted share, compared to net income of $5.6 million, or $0.03 per diluted share, in the prior-year
period. Adjusted Net Income was $22.4
million, or $0.10 per diluted
share, compared to $30.2 million, or
$0.14 per diluted share, in the
prior-year period, with the decline driven primarily by lower
Adjusted EBITDA.
Net loss for the full year was $9.4
million, or $(0.04) per
diluted share, compared to net loss of $22.9
million, or $(0.12) per
diluted share, in the prior year. Adjusted Net Income for the full
year was $97.4 million, or
$0.45 per diluted share, compared to
$105.7 million, or $0.56 per diluted share, in the prior year.
Gross margin, expressed as a percentage of sales, was 47.9% in
the fourth quarter of fiscal 2024. This compares to a gross margin
of 50.9% in the same quarter a year ago, with the decrease
primarily due to costs incurred related to the exit of the
transition service agreements, including a higher level of
inventory adjustments.
Gross margin for the full year was 50.2% compared to a gross
margin of 49.4% in the prior year.
Fourth-quarter Adjusted EBITDA was $53.0
million, representing an Adjusted EBITDA Margin of 22.4%,
compared to $63.1 million and a
margin of 26.1% in the prior-year period. The lower Adjusted EBITDA
Margin was primarily the result of the decline in gross margin.
Full-year Adjusted EBITDA was $213.2
million, representing an Adjusted EBITDA margin of 23.1%
compared to $205.4 million and a
margin of 25.0% in the prior year.
Food Safety Segment
Revenues for the Food Safety segment were $166.9 million in the fourth quarter, a decrease
of 1.4% compared to $169.3 million in
the prior year, consisting of 4.3% core growth, a 0.2% contribution
from acquisitions and discontinued product lines and a negative
foreign currency impact of 5.9%. The core revenue growth was led by
the Indicator Testing, Culture Media & Other product category,
which benefited from strong growth in Petrifilm, as well as in
culture media and food quality and nutritional analysis products.
In the Company's Bacterial & General Sanitation product
category, growth in pathogen detection and general sanitation
products was partially offset by a decline in sales of
microbiological products, largely the result of higher equipment
sales in the prior-year quarter. Within the Natural Toxins &
Allergens product category, modest growth in allergens was offset
by a decline in sales of natural toxin test kits, due largely to
product availability issues.
For the full year, revenues for the Food Safety segment were
$655.3 million, an increase of 19.9%
compared to $546.8 million in the
prior year, consisting of core growth of 3.7%, 18.0% from
acquisitions and a foreign currency headwind of 1.8%.
Animal Safety Segment
Revenues for the Animal Safety segment were $69.9 million in the fourth quarter, a decrease
of 3.7% compared to $72.5 million in
the prior year, consisting of a 3.3% core revenue decline, a 0.3%
headwind from discontinued product lines and negative foreign
currency impact of 0.1%. In the Veterinary Instruments &
Disposables product category, solid growth in veterinary
instruments from increased demand for detectable needles and
syringes was partially offset by a compare-driven decline in other
animal safety products. Growth in the Company's Animal Care &
Other product category was driven by higher sales of vitamin
injectables and biologics products. In the Company's portfolio of
biosecurity products, strong growth in insect control products was
offset by declines in cleaners and disinfectants and rodent control
products due largely to strong growth in the prior-year quarter and
the timing of shipments.
On a global basis, the Company's Genomics business experienced a
core revenue decline in the mid-single-digit range. Increased sales
in international beef markets were offset by the impact of customer
attrition in the U.S., a result of the shift in strategic focus
towards larger production animals.
For the full year, revenues for the Animal Safety segment were
$268.9 million, a decrease of 2.5%
compared to $275.7 million in the
prior year, consisting of a core revenue decline of 2.0%, a 0.2%
headwind from discontinued product lines and negative foreign
currency impact of 0.3%.
Liquidity and Capital Resources
As of May 31, 2024, the Company
had total cash and investments of $170.9
million and total outstanding non-current debt of
$900.0 million, as well as committed
borrowing headroom of $150.0
million.
Fiscal Year 2025 Outlook
The Company is initiating its full-year outlook for fiscal year
2025. Revenue is expected to be $925
million to $955 million,
reflecting core revenue growth in the mid-single-digit range,
offset primarily by an anticipated foreign currency headwind.
Adjusted EBITDA is expected to be $215
million to $235 million, while
capital expenditures are expected to be approximately $85 million, including approximately $55 million related specifically to the
integration of the former 3M Food
Safety Division.
Conference Call and Webcast
Neogen Corporation will host a conference call today at
8:00 a.m. Eastern Time to discuss the
Company's financial results. The live webcast of the conference
call and accompanying presentation materials can be accessed
through Neogen's website at neogen.com/investor-relations. For
those unable to access the webcast, the conference call can be
accessed by dialing (800) 836-8184 (U.S.) or +1 (646) 357-8785
(International) and requesting the Neogen Corporation Fourth
Quarter 2024 Earnings Call. A replay of the conference call and
webcast will be available shortly following the conclusion of the
call, and can be accessed domestically or internationally by
dialing (888) 660-6345 or +1 (646) 517-4150, respectively, and
providing the entry code 82704, or through Neogen's Investor
Relations website at neogen.com/investor-relations.
About Neogen
Neogen Corporation is committed to fueling a brighter future for
global food security through the advancement of human and animal
well-being. Harnessing the power of science and technology, Neogen
has developed comprehensive solutions spanning the Food Safety,
Livestock and Pet Health & Wellness markets. A world leader in
these fields, Neogen has a presence in over 140 countries with a
dedicated network of scientists and technical experts focused on
delivering optimized products and technology for its customers.
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
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except
share amounts)
|
|
|
|
Three Months Ended
May 31,
|
|
|
Twelve Months Ended
May 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Food Safety
|
|
$
|
166,906
|
|
|
$
|
169,269
|
|
|
$
|
655,341
|
|
|
$
|
546,797
|
|
Animal
Safety
|
|
|
69,888
|
|
|
|
72,541
|
|
|
|
268,881
|
|
|
|
275,650
|
|
Total
revenue
|
|
|
236,794
|
|
|
|
241,810
|
|
|
|
924,222
|
|
|
|
822,447
|
|
Cost of
revenues
|
|
|
123,312
|
|
|
|
118,628
|
|
|
|
460,322
|
|
|
|
416,492
|
|
Gross profit
|
|
|
113,482
|
|
|
|
123,182
|
|
|
|
463,900
|
|
|
|
405,955
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales &
marketing
|
|
|
44,337
|
|
|
|
42,893
|
|
|
|
182,872
|
|
|
|
141,222
|
|
Administrative
|
|
|
50,960
|
|
|
|
49,810
|
|
|
|
199,889
|
|
|
|
201,179
|
|
Research &
development
|
|
|
5,145
|
|
|
|
7,054
|
|
|
|
22,476
|
|
|
|
26,039
|
|
Total operating
expenses
|
|
|
100,442
|
|
|
|
99,757
|
|
|
|
405,237
|
|
|
|
368,440
|
|
Operating
income
|
|
|
13,040
|
|
|
|
23,425
|
|
|
|
58,663
|
|
|
|
37,515
|
|
Other
expense
|
|
|
(19,439)
|
|
|
|
(15,775)
|
|
|
|
(72,968)
|
|
|
|
(59,557)
|
|
(Loss) income before
tax
|
|
|
(6,399)
|
|
|
|
7,650
|
|
|
|
(14,305)
|
|
|
|
(22,042)
|
|
Income tax (benefit)
expense
|
|
|
(984)
|
|
|
|
2,078
|
|
|
|
(4,884)
|
|
|
|
828
|
|
Net (loss)
income
|
|
$
|
(5,415)
|
|
|
$
|
5,572
|
|
|
$
|
(9,421)
|
|
|
$
|
(22,870)
|
|
Net (loss) income
per diluted share
|
|
$
|
(0.02)
|
|
|
$
|
0.03
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.12)
|
|
Shares to calculate per
share amount
|
|
|
216,610,641
|
|
|
|
216,441,935
|
|
|
|
216,481,878
|
|
|
|
188,880,836
|
|
NEOGEN
CORPORATION
UNAUDITED
CONSOLIDATED BALANCE SHEET
(In thousands, except
share amounts)
|
|
|
|
May
31
|
|
|
|
2024
|
|
|
2023
|
|
Assets
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
170,611
|
|
|
$
|
163,240
|
|
Marketable
securities
|
|
|
325
|
|
|
|
82,329
|
|
Accounts receivable,
net
|
|
|
173,005
|
|
|
|
153,253
|
|
Inventories
|
|
|
189,267
|
|
|
|
133,812
|
|
Prepaid expenses and
other current assets
|
|
|
56,025
|
|
|
|
53,297
|
|
Total Current
Assets
|
|
|
589,233
|
|
|
|
585,931
|
|
Property and
Equipment
|
|
|
|
|
|
|
Land and
improvements
|
|
|
10,497
|
|
|
|
10,209
|
|
Building and
improvements
|
|
|
108,298
|
|
|
|
96,794
|
|
Machinery and
equipment
|
|
|
176,369
|
|
|
|
152,547
|
|
Furniture and
fixtures
|
|
|
8,260
|
|
|
|
7,080
|
|
Construction in
progress
|
|
|
113,968
|
|
|
|
52,237
|
|
|
|
|
417,392
|
|
|
|
318,867
|
|
Less accumulated
depreciation
|
|
|
(140,288)
|
|
|
|
(120,118)
|
|
Property and Equipment,
net
|
|
|
277,104
|
|
|
|
198,749
|
|
Other Assets
|
|
|
|
|
|
|
Right of use
assets
|
|
|
14,785
|
|
|
|
11,933
|
|
Goodwill
|
|
|
2,135,632
|
|
|
|
2,137,496
|
|
Other non-amortizable
intangible assets
|
|
|
—
|
|
|
|
14,316
|
|
Amortizable intangible
assets, net
|
|
|
1,511,653
|
|
|
|
1,590,787
|
|
Other non-current
assets
|
|
|
20,426
|
|
|
|
15,220
|
|
Total Other
Assets
|
|
|
3,682,496
|
|
|
|
3,769,752
|
|
Total Assets
|
|
$
|
4,548,833
|
|
|
$
|
4,554,432
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Current portion of
finance lease
|
|
$
|
2,447
|
|
|
$
|
—
|
|
Accounts
payable
|
|
|
83,061
|
|
|
|
76,669
|
|
Accrued
compensation
|
|
|
19,949
|
|
|
|
25,153
|
|
Income tax
payable
|
|
|
10,449
|
|
|
|
6,951
|
|
Accrued
interest
|
|
|
10,985
|
|
|
|
11,149
|
|
Deferred
revenue
|
|
|
4,632
|
|
|
|
4,616
|
|
Other current
liabilities
|
|
|
22,800
|
|
|
|
20,934
|
|
Total Current
Liabilities
|
|
|
154,323
|
|
|
|
145,472
|
|
Deferred Income Tax
Liability
|
|
|
326,718
|
|
|
|
353,427
|
|
Non-Current
Debt
|
|
|
888,391
|
|
|
|
885,439
|
|
Other Non-Current
Liabilities
|
|
|
35,259
|
|
|
|
35,877
|
|
Total
Liabilities
|
|
|
1,404,691
|
|
|
|
1,420,215
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
Preferred stock, $1.00
par value — shares authorized 100,000; none issued and
outstanding
|
|
|
—
|
|
|
|
—
|
|
Common stock, $0.16
par value — shares authorized 315,000,000; 216,614,407 and
216,245,501 shares issued and
outstanding at May 31, 2024 and 2023, respectively
|
|
|
34,658
|
|
|
|
34,599
|
|
Additional paid-in
capital
|
|
|
2,583,885
|
|
|
|
2,567,828
|
|
Accumulated other
comprehensive loss
|
|
|
(30,021)
|
|
|
|
(33,251)
|
|
Retained
earnings
|
|
|
555,620
|
|
|
|
565,041
|
|
Total Stockholders'
Equity
|
|
|
3,144,142
|
|
|
|
3,134,217
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
4,548,833
|
|
|
$
|
4,554,432
|
|
NEOGEN
CORPORATION
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
|
|
|
|
Year Ended May
31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2022
|
|
Cash Flows provided by
Operating Activities
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(9,421)
|
|
|
$
|
(22,870)
|
|
|
$
|
48,307
|
|
Adjustments to
reconcile net (loss) income to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
116,717
|
|
|
|
88,377
|
|
|
|
23,694
|
|
Impairment of
discontinued product lines
|
|
|
556
|
|
|
|
3,109
|
|
|
|
—
|
|
(Gain) loss on sale of
minority interest
|
|
|
(103)
|
|
|
|
2,016
|
|
|
|
—
|
|
Deferred income
taxes
|
|
|
(27,423)
|
|
|
|
(19,230)
|
|
|
|
(4,695)
|
|
Share-based
compensation
|
|
|
13,768
|
|
|
|
10,177
|
|
|
|
7,154
|
|
Loss (gain) on
disposal of property and equipment
|
|
|
1,073
|
|
|
|
(486)
|
|
|
|
—
|
|
Amortization of debt
issuance costs
|
|
|
3,441
|
|
|
|
2,720
|
|
|
|
—
|
|
Right of use asset
amortization
|
|
|
4,510
|
|
|
|
2,097
|
|
|
|
438
|
|
Other
|
|
|
4,829
|
|
|
|
(685)
|
|
|
|
(2,439)
|
|
Changes in operating
assets and liabilities, net of business acquisitions:
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(20,101)
|
|
|
|
(53,879)
|
|
|
|
(7,798)
|
|
Inventories
|
|
|
(55,949)
|
|
|
|
9,955
|
|
|
|
(21,072)
|
|
Prepaid expenses and
other assets
|
|
|
11,113
|
|
|
|
(3,121)
|
|
|
|
(4,054)
|
|
Accounts payable,
accruals and changes
|
|
|
13,751
|
|
|
|
18,642
|
|
|
|
20,238
|
|
Interest expense
accrual
|
|
|
(164)
|
|
|
|
4,052
|
|
|
|
—
|
|
Changes in other
non-current assets and non-current liabilities
|
|
|
(21,333)
|
|
|
|
154
|
|
|
|
8,265
|
|
Net Cash provided by
Operating Activities
|
|
|
35,264
|
|
|
|
41,028
|
|
|
|
68,038
|
|
Cash Flows (used for)
provided by Investing Activities
|
|
|
|
|
|
|
|
|
|
Purchase of property,
equipment and other non-current intangible assets
|
|
|
(111,421)
|
|
|
|
(65,757)
|
|
|
|
(24,429)
|
|
Proceeds from the
maturities of marketable securities
|
|
|
82,004
|
|
|
|
266,772
|
|
|
|
381,839
|
|
Purchase of marketable
securities
|
|
|
—
|
|
|
|
(12,523)
|
|
|
|
(415,894)
|
|
Business acquisitions,
net of cash acquired
|
|
|
—
|
|
|
|
11,721
|
|
|
|
(38,745)
|
|
Proceeds from the sale
of property and equipment and other
|
|
|
108
|
|
|
|
826
|
|
|
|
—
|
|
Net Cash (used for)
provided by Investing Activities
|
|
|
(29,309)
|
|
|
|
201,039
|
|
|
|
(97,229)
|
|
Cash Flows provided by
(used for) Financing Activities
|
|
|
|
|
|
|
|
|
|
Exercise of stock
options and issuance of employee stock purchase plan
shares
|
|
|
2,456
|
|
|
|
1,195
|
|
|
|
7,933
|
|
Repayment of
debt
|
|
|
—
|
|
|
|
(100,000)
|
|
|
|
—
|
|
Payment of contingent
consideration
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,120)
|
|
Debt issuance costs
paid and other
|
|
|
(538)
|
|
|
|
(19,276)
|
|
|
|
—
|
|
Net Cash provided by
(used for) Financing Activities
|
|
|
1,918
|
|
|
|
(118,081)
|
|
|
|
6,813
|
|
Effects of Foreign
Exchange Rate on Cash
|
|
|
(502)
|
|
|
|
(5,219)
|
|
|
|
(8,751)
|
|
Net Increase (Decrease)
in Cash and Cash Equivalents
|
|
|
7,371
|
|
|
|
118,767
|
|
|
|
(31,129)
|
|
Cash and Cash
Equivalents, Beginning of Year
|
|
|
163,240
|
|
|
|
44,473
|
|
|
|
75,602
|
|
Cash and Cash
Equivalents, End of Year
|
|
$
|
170,611
|
|
|
$
|
163,240
|
|
|
$
|
44,473
|
|
Supplementary Cash Flow
Information
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
73,168
|
|
|
$
|
42,616
|
|
|
$
|
72
|
|
Income taxes paid, net
of refunds
|
|
$
|
22,303
|
|
|
$
|
15,473
|
|
|
$
|
17,242
|
|
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures,
which management believes are useful to investors, securities
analysts and other interested parties. Management uses Adjusted
EBITDA as a key profitability measure. This is a non-GAAP measure
that represents EBITDA before certain items that impact comparison
of the performance of our business, either period-over-period or
with other businesses. Adjusted EBITDA Margin is Adjusted EBITDA
for a particular period expressed as a percentage of revenues for
that period.
Management uses Adjusted Net Income as an additional measure of
profitability. Adjusted Net Income is a non-GAAP measure that
represents net income before certain items that impact comparison
of the performance of our business, either period-over-period or
with other businesses.
Core revenue growth is a non-GAAP measure that represents net
sales for the period excluding the effects of foreign currency
translation rates and the impacts of acquisitions and discontinued
product lines, where applicable. Core revenue growth is presented
to allow for a meaningful comparison of year-over-year performance
without the volatility caused by foreign currency translation
rates, or the incomparability that would be caused by the impact of
an acquisition, disposal or product line discontinuation.
These non-GAAP financial measures should be considered only as
supplemental to, and not as superior to, financial measures
prepared in accordance with GAAP. Please see below for a
reconciliation of historical non-GAAP financial measures to the
most directly comparable financial measures prepared in accordance
with GAAP.
NEOGEN
CORPORATION
RECONCILIATION OF
NET INCOME TO ADJUSTED EBITDA
(In
thousands)
|
|
|
|
Three Months Ended
May 31,
|
|
|
Twelve Months Ended
May 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Net (loss)
income
|
|
$
|
(5,415)
|
|
|
$
|
5,572
|
|
|
$
|
(9,421)
|
|
|
$
|
(22,870)
|
|
Income tax (benefit)
expense
|
|
|
(984)
|
|
|
|
2,078
|
|
|
|
(4,884)
|
|
|
|
828
|
|
Depreciation and
amortization
|
|
|
28,864
|
|
|
|
28,439
|
|
|
|
116,717
|
|
|
|
88,377
|
|
Interest expense,
net
|
|
|
17,524
|
|
|
|
16,951
|
|
|
|
67,032
|
|
|
|
52,795
|
|
EBITDA
|
|
$
|
39,989
|
|
|
$
|
53,040
|
|
|
$
|
169,444
|
|
|
$
|
119,130
|
|
Share-based
compensation
|
|
|
3,939
|
|
|
|
2,866
|
|
|
|
13,768
|
|
|
|
10,177
|
|
FX transaction loss on
loan revaluation (1)
|
|
|
732
|
|
|
|
134
|
|
|
|
2,082
|
|
|
|
5,226
|
|
Certain transaction
fees and integration costs (2)
|
|
|
3,431
|
|
|
|
4,058
|
|
|
|
15,521
|
|
|
|
59,812
|
|
Restructuring
(3)
|
|
|
160
|
|
|
|
475
|
|
|
|
3,513
|
|
|
|
475
|
|
Contingent
consideration adjustments
|
|
|
50
|
|
|
|
—
|
|
|
|
300
|
|
|
|
(300)
|
|
ERP Expense
(4)
|
|
|
3,563
|
|
|
|
—
|
|
|
|
7,467
|
|
|
|
—
|
|
Discontinued product
line expense (5)
|
|
|
941
|
|
|
|
2,006
|
|
|
|
994
|
|
|
|
5,639
|
|
(Recovery) loss on sale
of minority interest
|
|
|
(29)
|
|
|
|
—
|
|
|
|
(103)
|
|
|
|
1,516
|
|
Loss on
investment
|
|
|
—
|
|
|
|
500
|
|
|
|
—
|
|
|
|
500
|
|
Inventory step-up
charge
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,245
|
|
Other
|
|
|
178
|
|
|
|
—
|
|
|
|
178
|
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
52,954
|
|
|
$
|
63,079
|
|
|
$
|
213,164
|
|
|
$
|
205,420
|
|
Adjusted EBITDA
margin (% of sales)
|
|
|
22.4
|
%
|
|
|
26.1
|
%
|
|
|
23.1
|
%
|
|
|
25.0
|
%
|
|
|
(1)
|
Net foreign currency
transaction loss associated with the revaluation of non-functional
currency intercompany loans established in connection with the 3M
Food Safety transaction and other non-hedged foreign currency
revaluation resulting from 3M agreements.
|
(2)
|
Includes costs
associated with the 3M transaction, including various transition
agreements.
|
(3)
|
Includes costs
associated with consolidation of U.S. genomics
labs.
|
(4)
|
Expenses related to ERP
implementation.
|
(5)
|
Expenses associated
with intangible asset impairments and inventory scrap amounts
related to certain discontinued product lines.
|
NEOGEN
CORPORATION
RECONCILIATION OF
NET INCOME TO ADJUSTED NET INCOME
(In
thousands)
|
|
|
|
Three Months Ended
May 31,
|
|
|
Twelve Months Ended
May 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Net (loss)
income
|
|
$
|
(5,415)
|
|
|
$
|
5,572
|
|
|
$
|
(9,421)
|
|
|
$
|
(22,870)
|
|
Amortization of
acquisition-related intangibles
|
|
|
23,328
|
|
|
|
22,053
|
|
|
|
93,013
|
|
|
|
68,690
|
|
Share-based
compensation
|
|
|
3,939
|
|
|
|
2,866
|
|
|
|
13,768
|
|
|
|
10,177
|
|
FX transaction loss on
loan revaluation (1)
|
|
|
732
|
|
|
|
134
|
|
|
|
2,082
|
|
|
|
5,226
|
|
Certain transaction
fees and integration costs (2)
|
|
|
3,431
|
|
|
|
4,058
|
|
|
|
15,521
|
|
|
|
59,812
|
|
Restructuring
(3)
|
|
|
160
|
|
|
|
475
|
|
|
|
3,513
|
|
|
|
475
|
|
Contingent
consideration adjustments
|
|
|
50
|
|
|
|
—
|
|
|
|
300
|
|
|
|
(300)
|
|
ERP Expense
(4)
|
|
|
3,563
|
|
|
|
—
|
|
|
|
7,467
|
|
|
|
—
|
|
Discontinued product
line expense (5)
|
|
|
941
|
|
|
|
2,006
|
|
|
|
994
|
|
|
|
5,639
|
|
(Recovery) loss on sale
of minority interest
|
|
|
(29)
|
|
|
|
—
|
|
|
|
(103)
|
|
|
|
1,516
|
|
Loss on
investment
|
|
|
—
|
|
|
|
500
|
|
|
|
—
|
|
|
|
500
|
|
Inventory step-up
charge
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,245
|
|
Other
|
|
|
178
|
|
|
|
—
|
|
|
|
178
|
|
|
|
—
|
|
Other adjustments
(6)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,864
|
|
Estimated tax effect of
above adjustments (7)
|
|
|
(8,514)
|
|
|
|
(7,459)
|
|
|
|
(29,960)
|
|
|
|
(32,323)
|
|
Adjusted Net
Income
|
|
$
|
22,364
|
|
|
$
|
30,205
|
|
|
$
|
97,352
|
|
|
$
|
105,651
|
|
Adjusted Earnings
per Share
|
|
$
|
0.10
|
|
|
$
|
0.14
|
|
|
$
|
0.45
|
|
|
$
|
0.56
|
|
|
|
(1)
|
Net foreign currency
transaction loss associated with the revaluation of non-functional
currency intercompany loans established in connection with the 3M
Food Safety transaction and other non-hedged foreign currency
revaluation resulting from 3M agreements.
|
(2)
|
Includes costs
associated with the 3M transaction, including various transition
agreements.
|
(3)
|
Includes costs
associated with consolidation of U.S. genomics
labs.
|
(4)
|
Expenses related to ERP
implementation.
|
(5)
|
Expenses associated
with intangible asset impairments and inventory scrap amounts
related to certain discontinued product lines.
|
(6)
|
Income tax expense
associated with transaction costs that were recognized as
expense in prior periods.
|
(7)
|
Tax effect of
adjustments is calculated using projected effective tax rates for
each applicable item.
|
NEOGEN
CORPORATION
RECONCILIATION OF
GROWTH TO CORE GROWTH
(In
thousands)
|
|
|
|
Q4
FY24
|
|
|
Q4
FY23
|
|
|
Growth
|
|
|
Foreign
Currency
|
|
Acquisitions/Divestitures
|
|
|
Core Revenue
Growth
|
Food Safety
|
|
$
|
166,906
|
|
|
$
|
169,269
|
|
|
(1.4 %)
|
|
|
(5.9 %)
|
|
|
0.2
|
%
|
|
|
4.3
|
Animal
Safety
|
|
|
69,888
|
|
|
|
72,541
|
|
|
(3.7 %)
|
|
|
(0.1 %)
|
|
(0.3 %)
|
|
|
(3.3 %)
|
Total
Neogen
|
|
$
|
236,794
|
|
|
$
|
241,810
|
|
|
(2.1 %)
|
|
|
(4.2 %)
|
|
|
0.1
|
%
|
|
|
2.0
|
|
|
|
FY24
|
|
|
FY23
|
|
|
Growth
|
|
Foreign
Currency
|
|
Acquisitions/Divestitures
|
|
|
Core Revenue
Growth
|
Food Safety
|
|
$
|
655,341
|
|
|
$
|
546,797
|
|
|
19.9 %
|
|
(1.8 %)
|
|
|
18.0
|
%
|
|
|
3.7 %
|
Animal
Safety
|
|
|
268,881
|
|
|
|
275,650
|
|
|
(2.5 %)
|
|
(0.3 %)
|
|
(0.2 %)
|
|
|
(2.0 %)
|
Total
Neogen
|
|
$
|
924,222
|
|
|
$
|
822,447
|
|
|
12.4 %
|
|
(1.3 %)
|
|
|
11.9
|
%
|
|
|
1.8 %
|
Contact
Bill Waelke
(517) 372-9200
ir@neogen.com
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SOURCE Neogen Corporation