Neogen Reports Record Yearly Sales and Earnings
PR Newswire, Wednesday, July 22, 1998 at 09:51
LANSING, Mich., July 22 /PRNewswire/ -- Neogen Corporation (NASDAQ:NEOG)
today announced record-breaking sales and earnings for the fiscal year that
ended May 31, 1998.
Neogen's reported sales of $18,488,400 is a 21% increase over last year.
The Company reported a 24% increase in earnings to $2,248,400, representing
$0.35 per share. The sales and earnings denote all-time highs for the 16-
year-old company. The per share increase from the previous year is only 10%
because of more outstanding shares in the current fiscal year. Neogen
recorded sales of $15,259,400 and earnings of $1,811,500, or $0.32 per share,
for the fiscal year that ended May 31, 1997.
Sales to the meat and poultry industries for the detection of
microorganisms such as E. coli and Salmonella jumped 93% in fiscal 1998. With
an expanding market and ongoing implementation of new governmental regulations
aimed at providing the safest possible food supply, management believes that
sales of test kits to the meat and poultry industry offer an excellent
opportunity for future growth.
Revenues at Neogen's Lexington Division, which consists primarily of sales
to the professional equine market, doubled in fiscal year 1998 to $6,575,500.
Veterinary instrument sales increased 4%, primarily the result of sales of
specialty syringes and needles used to inject marinades and spices into
various red and white meats.
"Fiscal 1998 was an exceptional year for Neogen with two successful
acquisitions and the release of several important new products for the meat,
poultry, and seafood industries," said James Herbert, Neogen's president.
"Also, the fiscal year saw the additions of Drs. Paul Satoh and Joe Madden to
our staff. Both bring extensive skills and experience to our research and
development efforts."
In the past fiscal year, Neogen released its Reveal(R) for Listeria Test
System to complement its foodborne bacteria tests for Salmonella and E. coli;
its Reveal(R) Bio-Plate to detect generic E. coli and total coliforms; its
quick and accurate test to detect sulfites in shrimp; and a quantitative
histamine test for the seafood producers to incorporate into their government-
mandated food safety plans.
"We are very pleased with the Company's record sales in light of a 7%
decrease in the sales of our mycotoxin test kits," said Lon Bohannon, Neogen's
chief financial officer. "Last summer and fall's weather conditions produced
exceptionally clean crops, which in turn reduced the grain industry's testing
needs."
Earnings per share were affected by increased operating expenses as the
Company builds for the future with expanded research and development, and
sales and marketing. Neogen's initiation of two lawsuits, one against a
competitor and the other against a former vendor, resulted in additional legal
and professional fees of $202,000 in fiscal 1998 compared to the prior year.
Neogen Corporation is a Lansing, Michigan based company that develops and
markets products and services dedicated to food and animal safety. The
Company's diagnostic products are used by food and animal producers to test
for foodborne bacteria, natural toxins, drug residues, plant diseases and
quality assurance.
Neogen Corporation Consolidated Statement of Operations
For Three Months Ended
May 31
1998 1997
Sales $4,889,934 $3,876,628
Net Income $271,795 $493,671
Net Income Per Share - Diluted $0.04 $0.08
Average Shares Outstanding 6,411,663 6,230,384
For Year Ended
May 31
1998 1997
Sales $18,488,389 $15,259,423
Net Income $2,248,373 $1,811,501
Net Income Per Share - Diluted $0.35 $0.32
Average Shares Outstanding 6,396,855 5,648,504
This press release contains forward-looking statements that involve a
number of risks and uncertainties. |
