Wooowww!!!! 11 cents w 5 cents taxes! That's like 16 cents
Neogen Reports Record Quarterly Sales and Pre-Tax Profit
LANSING, Mich., Dec. 16 /PRNewswire/ -- Neogen Corporation (Nasdaq: NEOG - news) today reported the highest sales and pre-tax profit
for any quarter in the Company's 16-year history. The Company also announced that its earnings of $.11 per share for the second quarter exceeded
analysts' expectations of $.08 per share.
Neogen's second quarter sales were $5,921,000, a 28% increase from last year's second quarter, when sales totaled $4,627,000. Sales for the
Company's first six months were $11,637,000, a jump of 29% from last year's sales of $9,054,000. Neogen's income before taxes rose to
$1,049,000 for the quarter, a 42% increase from the previous year's $738,000. Year-to-date, income before taxes stands at $1,949,000 -- an
increase of 40% from fiscal year 1998's $1,388,000.
Neogen's net income for the quarter was $666,000, or $.11 per share -- the same per share net income as the previous year. Year-to-date, the
Company's net income was $1,483,000, an increase of 12% from net income of $1,319,000 at the same time last year.
''We are extremely pleased with the quarter,'' said Lon Bohannon, Neogen's chief financial officer. ''We were able to achieve the same bottom line,
$.11 per share, in the second quarter as we did last year, even though income taxes were $.05 per share higher.''
''Prior to the second quarter, Neogen's effective tax rate has been insignificant because the Company had net operating loss carryforwards available
to offset taxable income,'' Bohannon continued. ''These carryforwards were fully utilized at the end of our first quarter and our effective tax rate
increased from 9% to 36%.''
Neogen's second quarter sales increases were led by strong sales of animal safety products, which increased 50% from last year. The Company's
Animal Safety Division sales jump included a 228% increase in sales of its equine botulism vaccine, and a 339% increase for the quarter in sales of
syringes and specialty needles used to inject marinades into meat and poultry.
Neogen's Food Safety Division had strong improvements in second quarter sales for its test kits for E. coli O157:H7, which jumped 56% from last
year, and for aflatoxin, which saw an increase of 44% over the same period of last year.
The second quarter also saw a continuation of Neogen's aggressive buyback program of Company stock. In August, Neogen announced that its
Board of Directors authorized the repurchase of up to 250,000 shares of common stock in the open market.
''Neogen's management and Board continue to believe that the Company's stock is undervalued,'' said James Herbert, Neogen's president and
CEO. ''As of today we have repurchased about 128,000 shares, and we expect to continue the effort as opportunities are presented.''
Neogen recently introduced a test kit to detect eggs in products not labeled for eggs. The technology is of critical importance to the millions of
people worldwide who face severe consequences, up to and including death, if they accidentally ingest minute quantities of eggs. An allergy to eggs
is one of the more common and serious of all food allergies. Earlier this year, Neogen announced a new test kit to detect peanut residues in various
food commodities, another important and widespread food allergen.
Since Sept. 1, there have been more than 20 announced recalls of food and animal feed products. These recalls have involved contamination by
natural toxins, microorganisms and food allergens, as well as quality concerns. Neogen offers the most complete line of diagnostic test kits available
to producers and processors of food and animal feed products. The Company is working closely with government, industry and consumers to help
insure safer supplies of food and animal feed.
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 and chemical
residues, plant diseases and quality assurance.
NEOGEN CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands except for per share data)
For three months ended Nov. 30
1998 1997
Sales $5,921 $4,627
Income Before Taxes $1,049 $738
Income Taxes $382 $49
Net Income $666 $689
Net Income Per Share - Diluted $.11 $.11
Average Shares Outstanding 6,192 6,439
For six months ended Nov. 30
1998 1997
Sales $11,637 $9,054
Income Before Taxes $1,949 $1,388
Income Taxes $466 $69
Net Income $1,483 $1,319
Net Income Per Share - Diluted $.24 $.21
Average Shares Outstanding 6,232 6,375 |
