LANSING, Mich., July 22 /PRNewswire/ -- Neogen Corporation (Nasdaq: NEOG) announced today record sales and earnings for its fourth quarter and fiscal year ended May 31. Total revenues for the year were $15,259,423 resulting in net income of $1,811,501 or $.32 per share. Last year, Neogen reported revenues of $12,490,411 and a net loss of $243,539 or $.05 per share.
Revenues for the fourth quarter were $3,876,628 compared to 2,999,577 in the prior year. Fourth quarter net income was $493,671 or $.08 per share compared to a net loss of $626,799 or $.14 per share last year. The fourth quarter and year-to-date net loss for the prior year included a one-time restructuring charge of $695,500 equal to $.15 per share.
Analysts were projecting earnings of $.06 per share and $.30 per share, respectively for the fourth quarter and fiscal year ended May 31. Neogen exceeded analysts' earning estimates in all four quarters this fiscal year.
Sales of diagnostic products in 1997 were 36% higher than in 1996 matching the annual growth rate of this group of products for the last five years. Sales of test kits to detect mycotoxins in the grain, nuts and spice markets increased 40% for the year. Sales of diagnostic products and reagents sold to the pharmacologics and professional equine markets increased 27% for the year and were up 75% in the fourth quarter. Test kits used to detect microorganisms in meat, poultry and eggs also exhibited strong growth in the fourth quarter and were 106% higher for fiscal year 1997 than 1996.
Veterinary instrument sales declined by 6% in fiscal 1997 due to depressed economic conditions in cattle markets. However, sales of veterinary instruments in the fourth quarter were 9% higher than the prior year. Higher cattle prices combined with lower grain prices should continue to result in improved markets for veterinary instruments during the 1998 fiscal year.
"Obviously, when you set records for sales and earnings you have to be pleased with the results," said James Herbert, Neogen president and CEO, commenting on year-end results. "We continue to believe the markets for our diagnostic product lines are substantial and will continue to grow at a rate approaching 20% per year. With over 140 different diagnostic products currently offered and ten additional products scheduled for release in the next 12 months, we are perfectly positioned to take advantage of the dynamic growth potential in the area of food safety testing."
New regulations for the seafood industry, which become effective December 1997 and on-going implementation of revolutionary rule changes for the meat, poultry and egg industry are expected to have a positive impact on Neogen's future sales. In addition, concern over the safety and quality of food supplies is increasing worldwide. Neogen's international sales were 61% higher in 1997 than 1996 and represented 27% of the company's total revenues.
"If you exclude last year's restructuring charge and compare apples to apples, we generated a 300% improvement in earnings on a 24% increase in product sales," said Lon Bohannon, Neogen's chief financial officer. "The high gross margins on diagnostic products result in significant bottom-line growth as sales increase. We continue to be enthusiastic about our future because we have really just begun to scratch the surface of sales potential for the meat, poultry and seafood markets."
Except for historical information contained herein, the statements made in this release constitute forward-looking statements that involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including those risks detailed from time to time in the Company's reports on file at the Securities and Exchange Commission.
Neogen Corporation is a Lansing, Michigan based company that develops and markets solutions for safety and improved quality in food, agriculture and pharmacologics. The Company's diagnostic products are used by food and animal producers to detect foodborne bacteria, natural toxins, drug residues, pesticide residues, plant disease infections and in quality assurance.
NEOGEN CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
For Three Months Ended
May 31
1997 1996
Revenues: $3,876,628 $2,999,577
Net Income (Loss): $493,671 ($626,799)
Net Income (Loss) Per Share: $.08 ($.14)
Average Shares Outstanding: 6,230,384 4,556,092
For Year Ended
May 31
1997 1996
Revenues: $15,259,423 $12,490,411
Net Income (Loss): $1,811,501 ($243,539)
Net Income (Loss) Per Share: $.32 ($.05)
Average Shares Outstanding: 5,648,504 4,513,817
Note: Net income (loss) and net income (loss) per share for 1996 include restructuring charges of $695,500 or $.15 per share. SOURCE
Neogen Corporation
(Copyright 1997) |
