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EX - 99.1 2 d167902dex991.htm EX - 99.1 FOR IMMEDIATE RELEASE CONTACT : Steve Quinlan , Vice President & CFO Neogen Corporation , 517 / 372-9200 Neogen reports third quarter results Exhibit 99.1 LANSING , Mich . , March 23 , 2021 — Neogen Corporation ( NASDAQ : NEOG ) announced today that its revenues for the third quarter of its 2021 fiscal year , which ended Feb. 28 , were $ 116,709,000 , up 17 % from the previous year's third quarter revenues of $ 99,869,000 . Current year - to - date revenues were $ 341,034,000 , up 10 % compared to $ 309,096,000 for the same period a year ago . Third quarter net income was $ 13,377,000 , up 10 % compared to the prior year's $ 12,200,000 . Earnings per share in the current quarter were $ 0.25 , compared to $ 0.23 a year ago . Current year - to - date net income was $ 45,122,000 , or $ 0.85 per share , compared to $ 43,128,000 , or $ 0.82 per share , for the same period a year ago . " We are pleased to report strong top - line growth this quarter and I am proud of the entire Neogen team for making these results possible , " said John Adent , Neogen's president and chief executive officer . “ We fully understand we are not out of the woods yet with the adverse effects of the global pandemic , but this quarter demonstrates what we are capable of achieving under these extremely challenging market conditions . We are also encouraged by a number of important product regulatory approvals and registrations that we received during the quarter , which will help drive future growth . " Neogen's gross margin was 46.1 % of sales in its third quarter of the current year , compared to 45.4 % recorded in the same quarter of the prior fiscal year . The change in margin percentage was the result of a product mix shift toward products with higher margins , particularly the rodenticide product line . During the quarter , the company incurred more than $ 2 million in expenses for strategic consulting , due diligence and other professional fees , the result of acquisition activities for businesses which Neogen was ultimately not successful in acquiring ; these non - recurring expenses reduced earnings by approximately $ 0.03 per share . Operating income was $ 15,774,000 , or 13.5 % of sales , for the third quarter , compared to $ 13,043,000 , or 13.1 % , in the same quarter a year ago . Interest income , at $ 294,000 , was approximately $ 1.3 million lower than last year's third quarter , due to a precipitous drop in yield on marketable securities . " While our bottom line was negatively impacted by non - recurring expenses related to acquisition activities and lower interest income , we were pleased with our operating performance for the quarter , ” said Steve Quinlan , Neogen's chief financial officer . " For the first time in many quarters , currency translations did not have a significant net adverse impact on our comparative consolidated revenues . Some currencies in which we do business , including the British pound , the euro , Australian dollar , and Chinese yuan , have improved against the U.S. dollar , year over year , while others , including the Brazilian real and the Mexican peso , have devalued . " Revenues for the company's Food Safety segment increased 16 % during the third quarter compared to the prior year quarter . The growth was aided in part by international acquisitions within the past year , including Megazyme , a food quality diagnostics company located near Dublin , Ireland , acquired on December 30 , 2020. On an organic basis , the segment's revenue increased 11 % comparatively . The segment's increase was led by a 14 % improvement in sales of its diagnostic test kits to detect natural toxins in food and animal feed , including increases in sales of its aflatoxin test kits ( up 25 % ) . Natural toxin product sales rose , in part , in response to an outbreak of aflatoxin in dog food that has spread to 35 countries , killed more than 100 dogs , and sickened hundreds more .