☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Michigan | 38-2367843 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) |
Title of each Class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, $0.16 par value per share | NEOG | NASDAQ Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||
Non-accelerated filer | ☐ | Smaller Reporting Company | ☐ | |||||||
Emerging growth company | ☐ |
February 28, | May 31, | |||||||||||||||
2021 | 2020 | August 31, | May 31, | |||||||||||||
Unaudited | 2021 | 2021 | ||||||||||||||
Assets | ||||||||||||||||
Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 73,482 | $ | 66,269 | $ | 71,283 | $ | 75,602 | ||||||||
Marketable securities | 279,865 | 277,404 | 329,597 | 305,485 | ||||||||||||
Accounts receivable, net of allowance of $1,400 and $1,350 at February 28, 2021 and May 31, 2020, respectively | 87,241 | 84,681 | ||||||||||||||
Accounts receivable, less allowance of $1,500 and $1,400 at August 31, 2021 and May 31, 2021, respectively | 87,291 | 91,823 | ||||||||||||||
Inventories | 99,267 | 95,053 | 102,109 | 100,701 | ||||||||||||
Prepaid expenses and other current assets | 15,449 | 13,999 | 18,844 | 17,840 | ||||||||||||
Total Current Assets | 555,304 | 537,406 | 609,124 | 591,451 | ||||||||||||
Net Property and Equipment | 97,981 | 78,671 | 99,515 | 100,453 | ||||||||||||
Other Assets | ||||||||||||||||
Right of use assets | 1,269 | 1,952 | 2,407 | 2,477 | ||||||||||||
Goodwill | 133,029 | 110,340 | 130,012 | 131,476 | ||||||||||||
Other non-amortizable intangible assets | 15,441 | 15,217 | 15,496 | 15,545 | ||||||||||||
Amortizable intangible and other assets, net of accumulated amortization of $50,998 and $44,690 at February 28, 2021 and May 31, 2020, respectively | 77,192 | 53,596 | ||||||||||||||
Amortizable intangible and other assets, net of accumulated amortization of $49,086 and $53,462 at August 31, 2021 and May 31, 2021, respectively | 73,534 | 76,771 | ||||||||||||||
Other non-current assets | 2,018 | 2,019 | ||||||||||||||
Total Assets | $ | 880,216 | $ | 797,182 | $ | 932,106 | $ | 920,192 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Current Liabilities | ||||||||||||||||
Accounts payable | $ | 23,257 | $ | 25,650 | $ | 22,414 | $ | 23,900 | ||||||||
Accrued compensation | 7,928 | 7,735 | 6,989 | 11,251 | ||||||||||||
Income taxes | 0 | 1,456 | 4,523 | 1,848 | ||||||||||||
Other accruals | 14,757 | 13,648 | 16,836 | 16,600 | ||||||||||||
Total Current Liabilities | 45,942 | 48,489 | 50,762 | 53,599 | ||||||||||||
Deferred Income Taxes | 21,276 | 18,125 | 21,827 | 21,917 | ||||||||||||
Other Non-Current Liabilities | 5,315 | 5,391 | 4,154 | 4,299 | ||||||||||||
Total Liabilities | 72,533 | 72,005 | 76,743 | 79,815 | ||||||||||||
Commitments and Contingencies (note 11) | 0 | 0 | ||||||||||||||
Commitments and Contingencies (note 10) | 0 | 0 | ||||||||||||||
Equity | ||||||||||||||||
Preferred stock, $1.00 par value, 100,000 shares authorized, 0ne issued and outstanding | 0 | 0 | 0 | 0 | ||||||||||||
Common stock, $0.16 par value, 120,000,000 shares authorized, 53,511,262 and 52,945,841 shares issued and outstanding at February 28, 2021 and May 31, 2020, respectively | 8,562 | 8,471 | ||||||||||||||
Common stock, $0.16 par value, 120,000,000 shares authorized, 107,493,015 and 107,468,304 shares issued and outstanding at August 31, 2021 and May 31, 2021, respectively | 17,199 | 17,195 | ||||||||||||||
Additional paid-in capital | 290,118 | 257,693 | 297,687 | 294,953 | ||||||||||||
Accumulated other comprehensive loss | (14,841 | ) | (19,709 | ) | (16,204 | ) | (11,375 | ) | ||||||||
Retained earnings | 523,844 | 478,722 | 556,681 | 539,604 | ||||||||||||
Total Stockholders’ Equity | 807,683 | 725,177 | 855,363 | 840,377 | ||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 880,216 | $ | 797,182 | $ | 932,106 | $ | 920,192 | ||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | ||||||||||||||||||||||
February 28/29, | February 28/29, | August 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Product revenues | $ | 92,816 | $ | 77,736 | $ | 273,288 | $ | 247,071 | $ | 104,013 | $ | 87,935 | ||||||||||||
Service revenues | 23,893 | 22,133 | 67,746 | 62,025 | 24,292 | 21,390 | ||||||||||||||||||
Total Revenues | 116,709 | 99,869 | 341,034 | 309,096 | 128,305 | 109,325 | ||||||||||||||||||
Cost of Revenues | ||||||||||||||||||||||||
Cost of product revenues | 49,466 | 41,068 | 145,336 | 128,658 | 54,726 | 46,595 | ||||||||||||||||||
Cost of service revenues | 13,394 | 13,471 | 38,333 | 35,888 | 13,571 | 12,428 | ||||||||||||||||||
Total Cost of Revenues | 62,860 | 54,539 | 183,669 | 164,546 | 68,297 | 59,023 | ||||||||||||||||||
Gross Margin | 53,849 | 45,330 | 157,365 | 144,550 | 60,008 | 50,302 | ||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Sales and marketing | 18,693 | 17,675 | 52,938 | 53,206 | 20,555 | 16,516 | ||||||||||||||||||
General and administrative | 15,146 | 10,789 | 38,343 | 32,473 | 13,383 | 11,013 | ||||||||||||||||||
Research and development | 4,236 | 3,823 | 12,170 | 11,292 | 4,325 | 3,878 | ||||||||||||||||||
Total Operating Expenses | 38,075 | 32,287 | 103,451 | 96,971 | 38,263 | 31,407 | ||||||||||||||||||
Operating Income | 15,774 | 13,043 | 53,914 | 47,579 | 21,745 | 18,895 | ||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||
Interest income | 294 | 1,600 | 1,571 | 4,381 | 203 | 722 | ||||||||||||||||||
Other expense | (91 | ) | (393 | ) | (363 | ) | (832 | ) | ||||||||||||||||
Other income (expense) | (221 | ) | 193 | |||||||||||||||||||||
Total Other Income | 203 | 1,207 | 1,208 | 3,549 | ||||||||||||||||||||
Total Other Income (Expense) | (18 | ) | 915 | |||||||||||||||||||||
Income Before Taxes | 15,977 | 14,250 | 55,122 | 51,128 | 21,727 | 19,810 | ||||||||||||||||||
Provision for Income Taxes | 2,600 | 2,050 | 10,000 | 8,000 | 4,650 | 3,950 | ||||||||||||||||||
Net Income | $ | 13,377 | $ | 12,200 | $ | 45,122 | $ | 43,128 | $ | 17,077 | $ | 15,860 | ||||||||||||
Net Income Per Share | ||||||||||||||||||||||||
Basic | $ | 0.25 | $ | 0.23 | $ | 0.85 | $ | 0.82 | $ | 0.16 | $ | 0.15 | ||||||||||||
Diluted | $ | 0.25 | $ | 0.23 | $ | 0.85 | $ | 0.82 | $ | 0.16 | $ | 0.15 | ||||||||||||
Weighted Average Shares Outstanding | Weighted Average Shares Outstanding | |||||||||||||||||||||||
Basic | 53,413 | 52,795 | 53,132 | 52,463 | 107,490 | 105,984 | ||||||||||||||||||
Diluted | 53,695 | 53,048 | 53,384 | 52,783 | 108,109 | 106,570 |
Three Months Ended | Nine Months Ended | Three Months Ended | ||||||||||||||||||||||
February 28/29, | February 28/29, | August 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net income | $ | 13,377 | $ | 12,200 | $ | 45,122 | $ | 43,128 | $ | 17,077 | $ | 15,860 | ||||||||||||
Other comprehensive income (loss), net of tax: foreign currency translations | 360 | (1,761 | ) | 5,419 | (2,452 | ) | (4,623 | ) | 4,121 | |||||||||||||||
Other comprehensive income (loss), net of tax: unrealized gain (loss) on marketable securities | (115 | ) | 172 | (552 | ) | 585 | ||||||||||||||||||
Other comprehensive loss, net of tax: unrealized loss on marketable securities | (206 | ) | (119 | ) | ||||||||||||||||||||
Total comprehensive income | $ | 13,622 | $ | 10,611 | $ | 49,989 | $ | 41,261 | $ | 12,248 | $ | 19,862 | ||||||||||||
Accumulated | ||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||
Common Stock | Paid-in | Comprehensive | Retained | |||||||||||||||||||||
Shares | Amount | Capital | Income (Loss) | Earnings | Total | |||||||||||||||||||
Balance at June 1, 2020 | 52,946 | $ | 8,471 | $ | 257,693 | $ | (19,709 | ) | $ | 478,722 | $ | 725,177 | ||||||||||||
Exercise of options and share-based compensation plan | 86 | 14 | 5,825 | — | — | 5,839 | ||||||||||||||||||
Issuance of shares under employee stock purchase plan | 9 | 2 | 666 | — | — | 668 | ||||||||||||||||||
Net income for the three months ended August 31, 2020 | — | — | — | — | 15,860 | 15,860 | ||||||||||||||||||
Other comprehensive income for the three months ended August 31, 2020 | — | — | — | 4,002 | — | 4,002 | ||||||||||||||||||
Balance at August 31, 2020 | 53,041 | $ | 8,487 | $ | 264,184 | $ | (15,707 | ) | $ | 494,582 | $ | 751,546 | ||||||||||||
Exercise of options and share-based compensation plan | 203 | 32 | 9,311 | — | — | 9,343 | ||||||||||||||||||
Net income for the three months ended November 30, 2020 | — | — | — | — | 15,885 | 15,885 | ||||||||||||||||||
Other comprehensive income for the three months ended November 30, 2020 | — | — | — | 621 | — | 621 | ||||||||||||||||||
Balance at November 30, 2020 | 53,244 | $ | 8,519 | $ | 273,495 | $ | (15,086 | ) | $ | 510,467 | $ | 777,395 | ||||||||||||
Exercise of options and share-based compensation plan | 193 | 31 | 10,999 | 0 | 0 | 11,030 | ||||||||||||||||||
Issuance of shares under employee stock purchase plan | 10 | 2 | 718 | 0 | 0 | 720 | ||||||||||||||||||
Issuance of shares for Megazyme acquisition | 64 | 10 | 4,906 | — | — | 4,916 | ||||||||||||||||||
Net income for the three months ended February 28, 2021 | — | 0 | 0 | 0 | 13,377 | 13,377 | ||||||||||||||||||
Other comprehensive income for the three months ended February 28, 2021 | — | 0 | 0 | 245 | 0 | 245 | ||||||||||||||||||
Balance at February 28, 2021 | 53,511 | $ | 8,562 | $ | 290,118 | $ | (14,841 | ) | $ | 523,844 | $ | 807,683 | ||||||||||||
Accumulated | ||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||
Common Stock | Paid-in | Comprehensive | Retained | |||||||||||||||||||||
Shares | Amount | Capital | (Loss) | Earnings | Total | |||||||||||||||||||
Balance, June 1, 2021 | 107,468 | $ | 17,195 | $ | 294,953 | $ | (11,375 | ) | $ | 539,604 | $ | 840,377 | ||||||||||||
Exercise of options and share-based compensation expense | 6 | 1 | 1,838 | — | — | 1,839 | ||||||||||||||||||
Issuance of shares under employee stock purchase plan | 19 | 3 | 896 | — | — | 899 | ||||||||||||||||||
Net income for the three months ended August 31, 2021 | — | — | — | — | 17,077 | 17,077 | ||||||||||||||||||
Other comprehensive loss for the three months ended August 31, 2021 | — | — | — | (4,829 | ) | — | (4,829 | ) | ||||||||||||||||
Balance, August 31, 2021 | 107,493 | $ | 17,199 | $ | 297,687 | $ | (16,204 | ) | $ | 556,681 | $ | 855,363 | ||||||||||||
Accumulated | ||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||
Common Stock | Paid-in | Comprehensive | Retained | |||||||||||||||||||||
Shares | Amount | Capital | Income (Loss) | Earnings | Total | |||||||||||||||||||
Balance at June 1, 2019 | 52,217 | $ | 8,355 | $ | 221,937 | $ | (11,640 | ) | $ | 419,247 | $ | 637,899 | ||||||||||||
Exercise of options and share-based compensation plan | 196 | 30 | 9,683 | — | — | 9,713 | ||||||||||||||||||
Issuance of shares under employee stock purchase plan | 10 | 2 | 536 | — | — | 538 | ||||||||||||||||||
Net income for the three months ended August 31, 2019 | — | — | — | — | 14,652 | 14,652 | ||||||||||||||||||
Other comprehensive loss for the three months ended August 31, 2019 | — | — | — | (2,496 | ) | — | (2,496 | ) | ||||||||||||||||
Balance at August 31, 2019 | 52,423 | $ | 8,387 | $ | 232,156 | $ | (14,136 | ) | $ | 433,899 | $ | 660,306 | ||||||||||||
Exercise of options and share-based compensation plan | 288 | 47 | 12,070 | — | — | 12,117 | ||||||||||||||||||
Net income for the three months ended November 30, 2019 | — | — | — | — | 16,276 | 16,276 | ||||||||||||||||||
Other comprehensive income for the three months ended November 30, 2019 | — | — | — | 2,218 | — | 2,218 | ||||||||||||||||||
Balance at November 30, 2019 | 52,711 | $ | 8,434 | $ | 244,226 | $ | (11,918 | ) | $ | 450,175 | $ | 690,917 | ||||||||||||
Exercise of options and share-based compensation plan | 188 | 31 | 9,705 | — | — | 9,736 | ||||||||||||||||||
Issuance of shares under employee stock purchase plan | 12 | 1 | 606 | — | — | 607 | ||||||||||||||||||
Net income for the three months ended February 29, 2020 | — | — | — | — | 12,200 | 12,200 | ||||||||||||||||||
Other comprehensive loss for the three months ended February 29, 2020 | — | — | — | (1,589 | ) | — | (1,589 | ) | ||||||||||||||||
Balance at February 29, 2020 | 52,911 | $ | 8,466 | $ | 254,537 | $ | (13,507 | ) | $ | 462,375 | $ | 711,871 | ||||||||||||
Accumulated | ||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||
Common Stock | Paid-in | Comprehensive | Retained | |||||||||||||||||||||
Shares | Amount | Capital | Income (Loss) | Earnings | Total | |||||||||||||||||||
Balance, June 1, 2020 | 105,892 | $ | 16,943 | $ | 249,221 | $ | (19,709 | ) | $ | 478,722 | $ | 725,177 | ||||||||||||
Exercise of options and share-based compensation expense | 172 | 28 | 5,811 | — | — | 5,839 | ||||||||||||||||||
Issuance of shares under employee stock purchase plan | 18 | 3 | 665 | — | — | 668 | ||||||||||||||||||
Net income for the three months ended August 31, 2020 | — | — | — | — | 15,860 | 15,860 | ||||||||||||||||||
Other comprehensive income for the three months ended August 31, 2020 | — | — | — | 4,002 | — | 4,002 | ||||||||||||||||||
Balance, August 31, 2020 | 106,082 | $ | 16,974 | $ | 255,697 | $ | (15,707 | ) | $ | 494,582 | $ | 751,546 | ||||||||||||
Nine Months Ended | Three Months Ended | |||||||||||||||
February 28/29, | August 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||
Net Income | $ | 45,122 | $ | 43,128 | $ | 17,077 | $ | 15,860 | ||||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||||||||
Depreciation and amortization | 15,107 | 13,542 | 5,682 | 4,720 | ||||||||||||
Share-based compensation | 4,773 | 4,795 | 1,690 | 1,681 | ||||||||||||
Change in operating assets and liabilities, net of business acquisitions: | ||||||||||||||||
Accounts receivable | 1,019 | 3,841 | 4,036 | 8,350 | ||||||||||||
Inventories | 3,328 | (2,238 | ) | (1,863 | ) | (1,319 | ) | |||||||||
Prepaid expenses and other current assets | (1,908 | ) | (3,119 | ) | (1,029 | ) | (1,045 | ) | ||||||||
Accounts payable, accruals and other changes | (8,321 | ) | 301 | (2,383 | ) | (3,113 | ) | |||||||||
Net Cash From Operating Activities | 59,120 | 60,250 | 23,210 | 25,134 | ||||||||||||
Cash Flows For Investing Activities | ||||||||||||||||
Cash Flows Used for Investing Activities | ||||||||||||||||
Purchases of property, equipment and other non-current intangible assets | (19,393 | ) | (16,322 | ) | (1,295 | ) | (4,248 | ) | ||||||||
Proceeds from the sale of marketable securities | 602,233 | 300,448 | ||||||||||||||
Proceeds from the maturities of marketable securities | 112,636 | 139,184 | ||||||||||||||
Purchases of marketable securities | (604,694 | ) | (351,002 | ) | (136,748 | ) | (168,318 | ) | ||||||||
Business acquisitions, net of cash acquired | (52,000 | ) | (9,701 | ) | — | (2,350 | ) | |||||||||
Net Cash For Investing Activities | (73,854 | ) | (76,577 | ) | ||||||||||||
Net Cash Used for Investing Activities | (25,407 | ) | (35,732 | ) | ||||||||||||
Cash Flows From Financing Activities | ||||||||||||||||
Exercise of stock options and issuance of employee stock purchase plan shares | 22,801 | 27,915 | ||||||||||||||
Exercise of stock options and other | 1,048 | 5,095 | ||||||||||||||
Net Cash From Financing Activities | 22,801 | 27,915 | 1,048 | 5,095 | ||||||||||||
Effect of Foreign Exchange Rates on Cash | (854 | ) | (2,502 | ) | ||||||||||||
Effects of Foreign Exchange Rates on Cash | (3,170 | ) | 181 | |||||||||||||
Net Increase In Cash and Cash Equivalents | 7,213 | 9,086 | ||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (4,319 | ) | (5,322 | ) | ||||||||||||
Cash and Cash Equivalents, Beginning of Period | 66,269 | 41,688 | 75,602 | 66,269 | ||||||||||||
Cash and Cash Equivalents, End of Period | $ | 73,482 | $ | 50,774 | $ | 71,283 | $ | 60,947 | ||||||||
(in thousands) | Maturity | February 28, 2021 | May 31, 2020 | Maturity | August 31, 2021 | May 31, 2021 | ||||||||||||||
US Treasuries | 0 - 90 days | $ | 0 | $ | 0 | |||||||||||||||
91 - 180 days | 0 | 0 | ||||||||||||||||||
181 days - 1 year | 0 | 2,532 | ||||||||||||||||||
1 - 2 years | 0 | 0 | ||||||||||||||||||
Commercial Paper & Corporate Bonds | 0 - 90 days | 158,183 | 133,130 | 0 - 90 days | 82,115 | 106,631 | ||||||||||||||
91 - 180 days | 81,850 | 73,824 | 91 - 180 | 78,299 | 78,727 | |||||||||||||||
181 days - 1 year | 30,189 | 43,231 | 181 days - 1 year | 90,026 | 87,590 | |||||||||||||||
1 - 2 years | 1,310 | 7,839 | 1 - 2 years | 76,647 | 26,752 | |||||||||||||||
Certificates of Deposit | 0 - 90 days | 1,253 | 1,003 | 0 - 90 days | 1,253 | 3,262 | ||||||||||||||
91 - 180 days | 3,550 | 5,184 | 91 - 180 | 1,006 | 1,260 | |||||||||||||||
181 days -1 year | 3,277 | 6,069 | 181 days - 1 year | 251 | 1,263 | |||||||||||||||
1 - 2 years | 253 | 4,592 | 1 - 2 years | 0— | 0— | |||||||||||||||
Total Marketable Securities | $ | 279,865 | $ | 277,404 | $ | 329,597 | $ | 305,485 | ||||||||||||
(in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||
US Treasuries | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||
Commercial Paper & Corporate Bonds | 271,600 | 185 | (253 | ) | 271,532 | $ | 327,157 | $ | 53 | $ | (123 | ) | $ | 327,087 | ||||||||||||||||||
Certificates of Deposit | 8,284 | 49 | 0 | 8,333 | 2,503 | 7 | 0— | 2,510 | ||||||||||||||||||||||||
Total Marketable Securities | $ | 279,884 | $ | 234 | $ | (253 | ) | $ | 279,865 | $ | 329,660 | $ | 60 | $ | (123 | ) | $ | 329,597 | ||||||||||||||
(in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||
US Treasuries | $ | 2,502 | $ | 30 | $ | — | $ | 2,532 | ||||||||||||||||||||||||
Commercial Paper & Corporate Bonds | 257,700 | 347 | (23 | ) | 258,024 | $ | 299,524 | $ | 209 | $ | (33 | ) | $ | 299,700 | ||||||||||||||||||
Certificates of Deposit | 16,648 | 200 | — | 16,848 | 5,755 | 30 | 0— | 5,785 | ||||||||||||||||||||||||
Total Marketable Securities | $ | 276,850 | $ | 577 | $ | (23 | ) | $ | 277,404 | $ | 305,279 | $ | 239 | $ | (33 | ) | $ | 305,485 | ||||||||||||||
(in thousands) | February 28, 2021 | May 31, 2020 | ||||||
Raw materials | $ | 46,423 | $ | 45,058 | ||||
Work-in-process | 7,408 | 6,887 | ||||||
Finished and purchased goods | 45,436 | 43,108 | ||||||
$ | 99,267 | $ | 95,053 | |||||
(in thousands) | August 31, 2021 | May 31, 2021 | ||||||
Raw materials | $ | 50,244 | $ | 47,588 | ||||
Work-in-process | 6,704 | 6,412 | ||||||
Finished and purchased goods | 45,161 | 46,701 | ||||||
$ | 102,109 | $ | 100,701 | |||||
(in thousands) | February 28, 2021 | May 31, 2020 | ||||||
Right of use - assets | $ | 1,269 | $ | 1,952 | ||||
Lease liabilities - current | 131 | 1,054 | ||||||
Lease liabilities - non-current | 1,089 | 913 |
February 28, 2021 | May 31, 2020 | |||||||
Weighted average remaining lease term | 2.4 years | 2.5 years | ||||||
Weighted average discount rate | 3.0 | % | 3.2 | % |
Three Months Ended February 28/29, | Nine Months Ended February 28/29, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Operating leases | $ | 372 | $ | 316 | $ | 1,017 | $ | 889 | ||||||||
Short term leases | 17 | 25 | 76 | 106 | ||||||||||||
Total lease expense | $ | 389 | $ | 341 | $ | 1,093 | $ | 995 | ||||||||
Amount | ||||
Years ending May 31, 2021 (1) | $ | 133 | ||
2022 | 601 | |||
2023 | 347 | |||
2024 | 176 | |||
2025 | 47 | |||
2026 and thereafter | 0 | |||
Total lease payments | 1,304 | |||
Less: imputed interest | 84 | |||
Total lease liabilities | $ | 1,220 | ||
Three Months ended February 28/29, | Nine Months ended February 28/29, | Three Months ended August 31, | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
Food Safety | ||||||||||||||||||||||||
Natural Toxins, Allergens & Drug Residues | $ | 18,255 | $ | 17,154 | $ | 57,271 | $ | 57,950 | $ | 20,408 | $ | 19,015 | ||||||||||||
Bacterial & General Sanitation | 10,333 | 9,413 | 31,499 | 31,345 | 11,165 | 9,931 | ||||||||||||||||||
Culture Media & Other | 14,888 | 11,222 | 39,577 | 35,259 | 18,046 | 12,171 | ||||||||||||||||||
Rodenticides, Insecticides & Disinfectants | 9,644 | 7,964 | 27,230 | 20,859 | 7,649 | 8,830 | ||||||||||||||||||
Genomics Services | 5,304 | 4,745 | 14,566 | 12,961 | 5,454 | 4,238 | ||||||||||||||||||
$ | 58,424 | $ | 50,498 | $ | 170,143 | $ | 158,374 | $ | 62,722 | $ | 54,185 | |||||||||||||
Animal Safety | ||||||||||||||||||||||||
Life Sciences | $ | 1,399 | $ | 1,376 | $ | 4,122 | $ | 4,901 | $ | 1,363 | $ | 1,325 | ||||||||||||
Veterinary Instruments & Disposables | 12,494 | 10,799 | 34,843 | 32,621 | 15,337 | 10,375 | ||||||||||||||||||
Animal Care & Other | 8,873 | 6,667 | 25,902 | 20,859 | 9,219 | 7,658 | ||||||||||||||||||
Rodenticides, Insecticides & Disinfectants | 18,085 | 14,558 | 56,470 | 47,462 | 22,149 | 19,914 | ||||||||||||||||||
Genomics Services | 17,434 | 15,971 | 49,554 | 44,879 | 17,515 | 15,868 | ||||||||||||||||||
$ | 58,285 | $ | 49,371 | $ | 170,891 | $ | 150,722 | $ | 65,583 | $ | 55,140 | |||||||||||||
Total Revenues | $ | 116,709 | $ | 99,869 | $ | 341,034 | $ | 309,096 | $ | 128,305 | $ | 109,325 | ||||||||||||
Three Months Ended | ||||||||||||||||||||||||
Three Months Ended February 28/29, | Nine Months Ended February 28/29, | August 31, | ||||||||||||||||||||||
(in thousands, except per share amounts) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
Numerator for basic and diluted net income per share: | ||||||||||||||||||||||||
Net income attributable to Neogen | $ | 13,377 | $ | 12,200 | $ | 45,122 | $ | 43,128 | ||||||||||||||||
Net income | $ | 17,077 | $ | 15,860 | ||||||||||||||||||||
Denominator for basic net income per share: | ||||||||||||||||||||||||
Weighted average shares | 53,413 | 52,795 | 53,132 | 52,463 | 107,490 | 105,984 | ||||||||||||||||||
Effect of dilutive stock options and RSUs | 282 | 253 | 252 | 320 | ||||||||||||||||||||
Effect of dilutive stock options | 619 | 586 | ||||||||||||||||||||||
Denominator for diluted net income per share | 53,695 | 53,048 | 53,384 | 52,783 | 108,109 | 106,570 | ||||||||||||||||||
Net income attributable to Neogen per share: | ||||||||||||||||||||||||
Net income per share: | ||||||||||||||||||||||||
Basic | $ | 0.25 | $ | 0.23 | $ | 0.85 | $ | 0.82 | $ | 0.16 | $ | 0.15 | ||||||||||||
Diluted | $ | 0.25 | $ | 0.23 | $ | 0.85 | $ | 0.82 | $ | 0.16 | $ | 0.15 | ||||||||||||
Corporate and | ||||||||||||||||||||||||||||||||
Food | Animal | Eliminations | ||||||||||||||||||||||||||||||
(in thousands) | Food Safety | Animal Safety | Corporate and Eliminations (1) | Total | Safety | Safety | (1) | Total | ||||||||||||||||||||||||
As of and for the three months ended February 28, 2021 | ||||||||||||||||||||||||||||||||
As of and for the three months ended August 31, 2021 | ||||||||||||||||||||||||||||||||
Product revenues to external customers | $ | 51,965 | $ | 40,851 | $ | 0 | $ | 92,816 | $ | 55,945 | $ | 48,068 | $ | — | $ | 104,013 | ||||||||||||||||
Service revenues to external customers | 6,459 | 17,434 | 0 | 23,893 | 6,777 | 17,515 | — | 24,292 | ||||||||||||||||||||||||
Total revenues to external customers | 58,424 | 58,285 | 0 | 116,709 | 62,722 | 65,583 | — | 128,305 | ||||||||||||||||||||||||
Operating income (loss) | 7,911 | 11,657 | (3,794 | ) | 15,774 | 10,131 | 12,762 | (1,148 | ) | 21,745 | ||||||||||||||||||||||
Total assets | 287,690 | 239,179 | 353,347 | 880,216 | 291,018 | 240,208 | 400,880 | 932,106 | ||||||||||||||||||||||||
As of and for the three months ended February 29, 2020 | ||||||||||||||||||||||||||||||||
As of and for the three months ended August 31, 2020 | ||||||||||||||||||||||||||||||||
Product revenues to external customers | $ | 44,450 | $ | 33,286 | $ | — | $ | 77,736 | $ | 48,663 | $ | 39,272 | $ | — | $ | 87,935 | ||||||||||||||||
Service revenues to external customers | 6,048 | 16,085 | — | 22,133 | 5,522 | 15,868 | — | 21,390 | ||||||||||||||||||||||||
Total revenues to external customers | 50,498 | 49,371 | — | 99,869 | 54,185 | 55,140 | — | 109,325 | ||||||||||||||||||||||||
Operating income (loss) | 5,881 | 8,492 | (1,330 | ) | 13,043 | 7,963 | 12,165 | (1,233 | ) | 18,895 | ||||||||||||||||||||||
Total assets | 226,077 | 219,501 | 327,923 | 773,501 | 225,716 | 228,390 | 367,486 | 821,592 |
(1) | Includes corporate assets, consisting principally of cash and cash equivalents, marketable securities, current and deferred tax accounts and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions. |
(in thousands) | Food Safety | Animal Safety | Corporate and Eliminations (1) | Total | ||||||||||||
As of and for the nine months ended February 28, 2021 | ||||||||||||||||
Product revenues to external customers | $ | 151,951 | $ | 121,337 | $ | 0 | $ | 273,288 | ||||||||
Service revenues to external customers | 18,192 | 49,554 | 0 | 67,746 | ||||||||||||
Total revenues to external customers | 170,143 | 170,891 | 0 | 341,034 | ||||||||||||
Operating income (loss) | 24,834 | 36,068 | (6,988 | ) | 53,914 | |||||||||||
As of and for the nine months ended February 29, 2020 | ||||||||||||||||
Product revenues to external customers | $ | 141,516 | $ | 105,555 | $ | — | $ | 247,071 | ||||||||
Service revenues to external customers | 16,858 | 45,167 | — | 62,025 | ||||||||||||
Total revenues to external customers | 158,374 | 150,722 | — | 309,096 | ||||||||||||
Operating income (loss) | 24,571 | 26,521 | (3,513 | ) | 47,579 |
Three months ended February 28/29, | Nine months ended February 28/29, | Three months ended August 31, | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
Domestic | $ | 70,387 | $ | 59,762 | $ | 207,544 | $ | 186,887 | $ | 77,779 | $ | 67,324 | ||||||||||||
International | 46,322 | 40,107 | 133,490 | 122,209 | 50,526 | 42,001 | ||||||||||||||||||
Total revenue | 116,709 | 99,869 | 341,034 | 309,096 | 128,305 | 109,325 | ||||||||||||||||||
Weighted- | ||||||||||||||||
Average | ||||||||||||||||
(Options in thousands) | Shares | Weighted- Average Exercise Price | Options | Exercise Price | ||||||||||||
Options outstanding June 1, 2020 | 2,162 | $ | 55.96 | |||||||||||||
Options outstanding June 1, 2021 | 2,957 | $ | 30.38 | |||||||||||||
Granted | 261 | 68.47 | 0 | 0 | ||||||||||||
Exercised | (491 | ) | 44.91 | (5 | ) | 27.71 | ||||||||||
Forfeited | (179 | ) | 57.58 | (11 | ) | 30.79 | ||||||||||
Options outstanding February 28, 2021 | 1,753 | $ | 58.41 | |||||||||||||
Options outstanding August 31, 2021 | 2,941 | $ | 30.38 |
Risk-free interest rate | 0.2 | % | ||
Expected dividend yield | 0.0 | % | ||
Expected stock price volatility | 31.3 | % | ||
Expected option life | 3.25 years |
Three Months Ended | Nine Months Ended | Revenue Change USD | Revenue Change Local Currency | |||||||||||||||||||||
February 28, 2021, | February 28, 2021, | |||||||||||||||||||||||
Revenue | Revenue | Revenue | Revenue | |||||||||||||||||||||
% Inc (Dec) | % Inc (Dec) | % Inc (Dec) | % Inc (Dec) | |||||||||||||||||||||
USD | Local Currency | USD | Local Currency | |||||||||||||||||||||
UK Companies | 9 | % | 4 | % | 13 | % | 9 | % | ||||||||||||||||
U.K. Operations (including Neogen Italia) | 9 | % | (2 | )% | ||||||||||||||||||||
Neogen Italia | 228 | % | 217 | % | ||||||||||||||||||||
Brazil Operations | (11 | )% | 12 | % | (11 | )% | 17 | % | (15 | )% | (17 | )% | ||||||||||||
Neogen Latinoamerica | 7 | % | 14 | % | 6 | % | 17 | % | 16 | % | 4 | % | ||||||||||||
Neogen Argentina | 15 | % | 54 | % | ||||||||||||||||||||
Neogen Uruguay | 15 | % | 17 | % | ||||||||||||||||||||
Neogen Chile | 71 | % | 63 | % | ||||||||||||||||||||
Neogen China | 125 | % | 109 | % | 97 | % | 88 | % | 59 | % | 47 | % | ||||||||||||
Neogen India | (6 | )% | (3 | )% | 2 | % | 7 | % | 15 | % | 14 | % | ||||||||||||
Neogen Canada | 38 | % | 33 | % | 2 | % | 1 | % | 89 | % | 75 | % | ||||||||||||
Neogen Australasia | 95 | % | 73 | % | 81 | % | 69 | % | 49 | % | 41 | % |
Three Months Ended February 28/29, | ||||||||||||||||
Increase/ | ||||||||||||||||
(in thousands) | 2021 | 2020 | (Decrease) | % | ||||||||||||
Food Safety | ||||||||||||||||
Natural Toxins, Allergens & Drug Residues | $ | 18,255 | $ | 17,154 | $ | 1,101 | 6 | % | ||||||||
Bacterial & General Sanitation | 10,333 | 9,413 | 920 | 10 | % | |||||||||||
Culture Media & Other | 14,888 | 11,222 | 3,666 | 33 | % | |||||||||||
Rodenticides, Insecticides & Disinfectants | 9,644 | 7,964 | 1,680 | 21 | % | |||||||||||
Genomics Services | 5,304 | 4,745 | 559 | 12 | % | |||||||||||
$ | 58,424 | $ | 50,498 | $ | 7,926 | 16 | % | |||||||||
Animal Safety | ||||||||||||||||
Life Sciences | $ | 1,399 | $ | 1,376 | $ | 23 | 2 | % | ||||||||
Veterinary Instruments & Disposables | 12,494 | 10,799 | 1,695 | 16 | % | |||||||||||
Animal Care & Other | 8,873 | 6,667 | 2,206 | 33 | % | |||||||||||
Rodenticides, Insecticides & Disinfectants | 18,085 | 14,558 | 3,527 | 24 | % | |||||||||||
Genomics Services | 17,434 | 15,971 | 1,463 | 9 | % | |||||||||||
$ | 58,285 | $ | 49,371 | $ | 8,914 | 18 | % | |||||||||
Total Revenues | $ | 116,709 | $ | 99,869 | $ | 16,840 | 17 | % | ||||||||
Nine Months Ended February 28/29, | ||||||||||||||||
Increase/ | ||||||||||||||||
(in thousands) | 2021 | 2020 | (Decrease) | % | ||||||||||||
Food Safety | ||||||||||||||||
Natural Toxins, Allergens & Drug Residues | $ | 57,271 | $ | 57,950 | $ | (679 | ) | (1 | )% | |||||||
Bacterial & General Sanitation | 31,499 | 31,345 | 154 | 0 | % | |||||||||||
Culture Media & Other | 39,577 | 35,259 | 4,318 | 12 | % | |||||||||||
Rodenticides, Insecticides & Disinfectants | 27,230 | 20,859 | 6,371 | 31 | % | |||||||||||
Genomics Services | 14,566 | 12,961 | 1,605 | 12 | % | |||||||||||
$ | 170,143 | $ | 158,374 | $ | 11,769 | 7 | % | |||||||||
Animal Safety | ||||||||||||||||
Life Sciences | $ | 4,122 | $ | 4,901 | $ | (779 | ) | (16 | )% | |||||||
Veterinary Instruments & Disposables | 34,843 | 32,621 | 2,222 | 7 | % | |||||||||||
Animal Care & Other | 25,902 | 20,859 | 5,043 | 24 | % | |||||||||||
Rodenticides, Insecticides & Disinfectants | 56,470 | 47,462 | 9,008 | 19 | % | |||||||||||
Genomics Services | 49,554 | 44,879 | 4,675 | 10 | % | |||||||||||
$ | 170,891 | $ | 150,722 | $ | 20,169 | 13 | % | |||||||||
Total Revenues | $ | 341,034 | $ | 309,096 | $ | 31,938 | 10 | % | ||||||||
Three Months ended August 31, | ||||||||||||||||
(in thousands) | 2021 | 2020 | Increase/ (Decrease) | % | ||||||||||||
Food Safety | ||||||||||||||||
Natural Toxins, Allergens & Drug Residues | $ | 20,408 | $ | 19,015 | $ | 1,393 | 7 | % | ||||||||
Bacterial & General Sanitation | 11,165 | 9,931 | 1,234 | 12 | % | |||||||||||
Culture Media & Other | 18,046 | 12,171 | 5,875 | 48 | % | |||||||||||
Rodenticides, Insecticides & Disinfectants | 7,649 | 8,830 | (1,181 | ) | (13 | )% | ||||||||||
Genomics Services | 5,454 | 4,238 | 1,216 | 29 | % | |||||||||||
$ | 62,722 | $ | 54,185 | $ | 8,537 | 16 | % | |||||||||
Animal Safety | ||||||||||||||||
Life Sciences | $ | 1,363 | $ | 1,325 | $ | 38 | 3 | % | ||||||||
Veterinary Instruments & Disposables | 15,337 | 10,375 | 4,962 | 48 | % | |||||||||||
Animal Care & Other | 9,219 | 7,658 | 1,561 | 20 | % | |||||||||||
Rodenticides, Insecticides & Disinfectants | 22,149 | 19,914 | 2,235 | 11 | % | |||||||||||
Genomics Services | 17,515 | 15,868 | 1,647 | 10 | % | |||||||||||
$ | 65,583 | $ | 55,140 | $ | 10,443 | 19 | % | |||||||||
Total Revenues | $ | 128,305 | $ | 109,325 | $ | 18,980 | 17 | % | ||||||||
Three Months Ended | Nine Months Ended | Three Months ended August 31, | ||||||||||||||||||||||
February 28/29, | February 28/29, | |||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | ||||||||||||||||||||||
Interest income (net of expense) | $ | 294 | $ | 1,600 | $ | 1,571 | $ | 4,381 | $ | 203 | $ | 722 | ||||||||||||
Foreign currency transactions | (118 | ) | (420 | ) | (374 | ) | (889 | ) | (151 | ) | 175 | |||||||||||||
Insurance settlement | — | — | 309 | 1 | ||||||||||||||||||||
Legal settlement | — | — | (300 | ) | — | |||||||||||||||||||
Contingent consideration | 111 | — | 111 | — | ||||||||||||||||||||
Other | (84 | ) | 27 | (109 | ) | 56 | (70 | ) | 18 | |||||||||||||||
Total Other Income | $ | 203 | $ | 1,207 | $ | 1,208 | $ | 3,549 | $ | (18 | ) | $ | 915 | |||||||||||
Risk Category | Hypothetical Change | August 31, 2021 | Impact | |||||||
(dollars in thousands) | ||||||||||
Foreign Currency - Revenue | 10% Decrease in exchange rates | $ | 5,053 | Earnings | ||||||
Foreign Currency - Hedges | 10% Decrease in exchange rates | 1,990 | Earnings |
NEOGEN CORPORATION |
(Registrant) |
/s/ John E. Adent |
John E. Adent |
President & Chief Executive Officer |
(Principal Executive Officer) |
/s/ Steven J. Quinlan |
Steven J. Quinlan |
Vice President & Chief Financial Officer |
(Principal Financial Officer and Principal Accounting Officer) |