Neogen Corp. (NEOG, Financial) filed Quarterly Report for the period ended 2012-08-31.
Neogen Corporation has a market cap of $941.7 million; its shares were traded at around $43.2 with a P/E ratio of 42.4 and P/S ratio of 5.1. Neogen Corporation had an annual average earning growth of 17.2% over the past 10 years. GuruFocus rated Neogen Corporation the business predictability rank of 5-star.
Revenues increased at GeneSeek by 19.5% in FY-13 compared to the first quarter of FY 2012 and included revenues from the Igenity acquisition. Exclusive of that acquisition, GeneSeek revenues increased by 12.1%, and reflects increased volume due to the execution of a number of large contracts. The Igenity business is being integrated into Geneseeks business; the bioinformatics acquired in the acquisition is expected to add to Geneseeks product offerings.
The total amount included in other income in the first quarter of FY 2013 of $72,000 represents an increase compared to expense of $37,000 recognized in the first quarter of FY 2012. A charge of $13,000 was recorded in the first quarter of 2013 to increase the liability for the Companys expected payout to the former owners of Geneseek, based on its earnings as part of the Company; $26,000 was recorded in the first quarter of FY 2012.
The overall cash and marketable securities position of the Company was $74,504,000 at August 31, 2012, compared to $68,645,000 at May 31, 2012. Approximately $4,444,000 in cash was generated from operations during the first fiscal quarter of 2013. Net cash proceeds of $2,494,000 were realized with the exercise of stock options and issuance of shares under the Employee Stock Purchase Plan during the first quarter of FY-13. The Company spent $1,923,000 for equipment and other non-current assets in the first quarter of 2012. Accounts receivable increased by $1,790,000 due to the increase in revenues and the timing of receipt of payments from an international distributor; inventory levels were essentially unchanged for the quarter compared to May 31, 2012.
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Neogen Corporation has a market cap of $941.7 million; its shares were traded at around $43.2 with a P/E ratio of 42.4 and P/S ratio of 5.1. Neogen Corporation had an annual average earning growth of 17.2% over the past 10 years. GuruFocus rated Neogen Corporation the business predictability rank of 5-star.
Highlight of Business Operations:
Neogen Corporation revenues in the first quarter of FY-13 were $49.7 million, an increase of $4.0 million, or 8.8%, compared to $45.7 million in the first quarter of FY-12. Revenues for the Food Safety segment increased by 12.5% and Animal Safety segment revenues increased by 5.0%, each compared with the first quarter of the prior year. On an organic basis, overall revenues increased by 8.1%, with the remainder of the increase due to the Igenity acquisition, completed in May 2012. Sales to international markets were 41.7% of total revenues, compared to 41.4% in last years first quarter. Gross margins increased from 50.3% in FY-12 to 53.3% in FY-13, largely the result of a shift in product mix toward diagnostic products in the Food Safety segment, which have higher margins. Additionally, margins improved within the Animal Safety segment due to increased sales of rodenticides and small animal supplements, which are higher margin products within that segment. Operating margins increased to 20.8% in the first quarter, from 20.5% in the prior year, primarily the result of the improved gross margins. Operating expenses increased 18.6%, reflecting the impact of investments made in personnel, primarily in sales and marketing related functions in the 2012 fiscal year, higher legal and professional fees, and increased project costs within research and development.Revenues increased at GeneSeek by 19.5% in FY-13 compared to the first quarter of FY 2012 and included revenues from the Igenity acquisition. Exclusive of that acquisition, GeneSeek revenues increased by 12.1%, and reflects increased volume due to the execution of a number of large contracts. The Igenity business is being integrated into Geneseeks business; the bioinformatics acquired in the acquisition is expected to add to Geneseeks product offerings.
The total amount included in other income in the first quarter of FY 2013 of $72,000 represents an increase compared to expense of $37,000 recognized in the first quarter of FY 2012. A charge of $13,000 was recorded in the first quarter of 2013 to increase the liability for the Companys expected payout to the former owners of Geneseek, based on its earnings as part of the Company; $26,000 was recorded in the first quarter of FY 2012.
The overall cash and marketable securities position of the Company was $74,504,000 at August 31, 2012, compared to $68,645,000 at May 31, 2012. Approximately $4,444,000 in cash was generated from operations during the first fiscal quarter of 2013. Net cash proceeds of $2,494,000 were realized with the exercise of stock options and issuance of shares under the Employee Stock Purchase Plan during the first quarter of FY-13. The Company spent $1,923,000 for equipment and other non-current assets in the first quarter of 2012. Accounts receivable increased by $1,790,000 due to the increase in revenues and the timing of receipt of payments from an international distributor; inventory levels were essentially unchanged for the quarter compared to May 31, 2012.
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