Neogen(NEOG) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended February 28, 2025, were $220.98 million, a decrease of 3.6$228.81 million for the same period in 2024[12]. - Product revenues decreased to $196.49 million for the three months ended February 28, 2025, down from$202.18 million in the prior year, representing a decline of 2.4%[12]. - Net loss for the three months ended February 28, 2025, was $10.96 million, compared to a net loss of$2.02 million for the same period in 2024, indicating a significant increase in losses[12]. - Gross profit for the three months ended February 28, 2025, was $110.27 million, down from$116.88 million in the same period last year, reflecting a decrease of 5.7%[12]. - Operating income for the three months ended February 28, 2025, was $5.42 million, a decrease of$6.61 million from $12.02 million in the same period of 2024[85]. - Adjusted EBITDA decreased by$4.2 million to $48.513 million for the three months ended February 28, 2025, with an Adjusted EBITDA margin of 22.0$479.848 million, with a net loss margin of -71.7%, compared to a net loss of $4.006 million and a margin of -0.6$152.73 million in revenue for the three months ended February 28, 2025, compared to $157.75 million in 2024, reflecting a decline of 3.2$68.25 million for the three months ended February 28, 2025, down from $71.06 million in 2024, a decrease of 3.9$5.0 million (3%) for the three months and $12.1 million (2$2.8 million (4%) for the three months and $6.1 million (3$104.85 million, remaining relatively stable compared to $104.86 million in the prior year[12]. - The company reported a goodwill impairment of$461.39 million for the nine months ended February 28, 2025[12]. - General and administrative expenses rose to $55.8 million for the three months ended February 28, 2025, compared to$52.1 million in the same period of 2024, driven by fixed asset impairment and restructuring charges[93]. - Goodwill impairment charges amounted to $461.4 million during the nine months ended February 28, 2025, with no charges recorded in the prior year[95]. Assets and Equity - Total assets as of February 28, 2025, were$4.04 billion, a decrease from $4.55 billion as of May 31, 2024[10]. - Total stockholders' equity decreased to$2.66 billion as of February 28, 2025, compared to $3.14 billion as of May 31, 2024[10]. - Cash and cash equivalents decreased to$127.71 million as of February 28, 2025, down from $170.61 million as of May 31, 2024[10]. - Neogen's total assets as of February 28, 2025, were$2.597540 billion, reflecting a slight increase from previous periods[19]. Cash Flow and Capital Expenditures - Cash provided by operating activities was $41.702 million for the nine months ended February 28, 2025, compared to$8.517 million in the prior year[22]. - Cash used for investing activities increased by $71.5 million to$83.266 million for the nine months ended February 28, 2025, primarily due to increased capital expenditures[130]. - Capital expenditures for the nine months ended February 28, 2025, were $88.5 million, compared to$87.2 million in 2024[130]. - The company estimates capital expenditures of $100 million for fiscal year 2025, including approximately$70 million for the integration of acquired 3M FSD products[132]. Tax and Compliance - Income tax expense for the three months ended February 28, 2025, was $1,230, while the income tax benefit for the nine months was$22,060, primarily due to pre-tax losses from amortization and interest expenses related to the 3M FSD acquisition[48]. - The company reported a net tax benefit of $22.1 million for the nine months ended February 28, 2025, compared to a tax benefit of$3.9 million in the prior year, influenced by pre-tax losses and goodwill impairment charges[98]. - The company has no required principal payments on its Credit Facilities through fiscal year 2026 and was in compliance with all financial covenants as of February 28, 2025[127]. Shareholder Actions - The Company has authorized a share repurchase program for up to 6,000,000 shares of common stock, with 5,900,000 shares remaining available for repurchase as of February 28, 2025[145]. - No shares were purchased under the repurchase program during the fiscal quarter ended February 28, 2025[145].