Tuesday March 27, 6:30 pm Eastern Time
Press Release
SOURCE: Neogen Corporation
Neogen Reports 37% Increase in Revenues
LANSING, Mich., March 27 /PRNewswire/ -- Neogen Corporation (Nasdaq: NEOG - news) today announced a 37%
increase in quarterly revenues, and earnings that met analyst expectations. Neogen reported earnings of $0.12 per share for the
third quarter, which ended Feb. 28, as compared with $0.11 for the same period last year. Third quarter revenues were
$8,601,000 in fiscal year 2001 compared to $6,276,000 in FY 2000.
Year-to-date revenues were $25,734,000 -- a 51% increase over the prior year comparable revenues of $17,041,000. Year
to date, Neogen's FY 2001 earnings were $0.39 per share, as compared to $0.30 for the first nine months of last year.
In its third quarter, Neogen continued its strong improvement in income from operations, increasing 29% on a
quarter-to-quarter comparison with the previous fiscal year. Year to date, Neogen's operating income was $2,899,000 -- a
74% increase from the prior year's $1,660,000 at the end of the third quarter.
``Exceptional performance is what our investors have come to expect from us, and what we expect from ourselves,'' said
James Herbert, Neogen's president. ``Our solid third quarter and year-to-date operating results represent significant strides
toward our goal of becoming the dominant company in providing food and animal safety solutions.''
Neogen's quarterly revenue increase was led by its Food Safety Division, with an increase of 40% from the previous fiscal
year. Year to date, Food Safety revenues were up 52% from last year's first 9 months. The Company's Animal Safety Division
saw a 34% increase in revenues for the third quarter, and stood at a 50% increase on a year-to-date comparison.
``We are very pleased we achieved analyst expectations for the quarter, since our comparisons suffered because of a greater
than normal delivery of botulism B vaccine in last year's third quarter,'' said Lon Bohannon, Neogen's chief operating officer.
``This factor alone caused a net income variation of $.03 per share in the quarter-to-quarter comparison.''
In the third quarter, Neogen expanded its comprehensive product offerings by adding Reveal® for Salmonella enteriditis (Se).
The new test kit to detect Se, a pathogen of particular concern to the egg and poultry industries, comes as the U.S. Food and
Drug Administration prepares to implement Se- reduction regulations. Government estimates place the number of Se-infected
eggs at more than 7 million in the United States alone on an annual basis. Se has been the United States' leading cause of
salmonellosis in humans since 1994. The effects of salmonellosis can range from mild nausea and diarrhea to severe, and
potentially fatal, complications in the very young and old, and among those with weakened immune systems.
In the quarter, the Company also received a key USDA performance verification of Neogen's rapid test to detect
genetically-modified corn. Neogen's test detects StarLink corn, a brand not approved for human consumption that spurred
numerous recalls when it found its way into the food supply. The USDA's verification clears the way for use of Neogen's test
by governmental agencies and food processors.
Neogen Corporation develops and markets products and services dedicated to food and animal safety. The Company's Food
Safety Division markets diagnostic test kits to detect foodborne bacteria, natural toxins, genetic modifications, food allergens,
drug residues, plant diseases and sanitation concerns. Neogen's Animal Safety Division markets a complete line of diagnostics,
veterinary instruments, veterinary pharmaceuticals, nutritional supplements and wound care products.
NEOGEN CORPORATION SUMMARIZED CONSOLIDATED OPERATING DATA
(In thousands, except for per share data)
Quarter ended Feb. 28 Nine months ended Feb. 28
2001 2000 2001 2000
Revenue $8,601 $6,276 $25,734 $17,041
Gross Margin 4,352 3,555 12,892 9,606
Operating Income 937 724 2,899 1,660
Net Income 714 627 2,246 1,773
Net Income Per Share $0.12 $0.11 $0.39 $0.30
NEOGEN CORPORATION SUMMARIZED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
Feb. 28 May 31
2001 2000
Assets
Current Assets $19,560 $21,602
Property and Equipment 2,722 2,655
Goodwill 7,099 3,892
Other Assets 1,584 1,379
$30,965 $29,528
Liabilities & Stockholders' Equity
Current Liabilities $2,648 $3,337
Long-term Liabilities 351 387
Equity 27,966 25,804
$30,965 $29,528
Gruß Dampf
