Neogen Shatters Quarterly Revenue Record
LANSING, Mich., Sept. 27 /PRNewswire/ -- Neogen Corporation (Nasdaq: NEOG - news) announced today that its revenues for the first quarter, which ended Aug. 31, were 52% higher than the previous fiscal year's first quarter.
Neogen reported revenues of $8,124,000 for the first quarter of the 2001 fiscal year, compared with $5,340,000 for the same period last year. The previous quarterly revenue high watermark was $6,473,000 in the fourth quarter of fiscal
year 2000.
``This great revenue increase is an acceleration in the strong momentum we began building in last year's third and fourth quarters,'' said James Herbert, Neogen's president. ``It was a great quarter, and a great start to this new fiscal year.'' Neogen's first quarter revenues were bolstered by strong internal growth in addition to the acquisitions of Acumedia Manufacturers in February 2000 and AmVet Pharmaceuticals in June 2000. Of the 52% increase in the quarter-to-quarter comparison with last year's first quarter, 23% can be attributed to internal growth, and the balance to new revenue sources.
Revenues of Neogen's Food Safety Division grew 66% from the same period last year. Animal Safety Division sales were up 39% from the previous year.
Neogen's operating income jumped 18% from last year for the quarter, to $802,000 from $678,000 for the previous fiscal year. Net income was $672,000 or $0.12 per share compared to $808,000 or $0.14 per share last year. Net income was lower due to higher tax rates and integration costs of new acquisitions. Both revenues and earnings for the quarter exceeded analysts' expectations.
``Our effective tax rate increased to 31% in this year's first quarter, compared to 10% for the same period last fiscal year,'' said Richard Current, Neogen's chief financial officer. ``The effective tax rate jump resulted in an increase in tax expense of $200,000, or almost $0.04 per share. On a comparable tax basis, net income for last year's first quarter would have been $0.10 per share.''
In the first quarter, Neogen acquired substantially all the assets of AmVet Pharmaceuticals, which owned formulas for 25 different veterinary products under approximately 40 labels. AmVet has shown impressive sales growth of 20- 70% in each year since its founding. AmVet products complement Neogen's existing line of 46 Triple Crown and ImmunoVet veterinary products.
Neogen completed the acquisition of Squire Laboratories, Inc., of Revere, Mass., and 15 veterinary products produced by the company on Sept. 5. Neogen will continue to market the products under the Squire Laboratories label, and anticipates the sales of Squire products will be approximately $1.0 million in the next 12 months.
On the Food Safety side, Neogen recently received approval from the Association of Official Analytical Chemists International (AOAC) for its rapid test for E. coli O157:H7, a deadly foodborne bacteria. Neogen's 8-hour test is the quickest on the market for this pathogen. The validations will allow Neogen to build upon its market-leading status by allowing it access to laboratories and institutions that prefer AOAC validations.
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, 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. |
