Neogen(US:NEOG)2024-07-30 17:58Revenue Performance - Total revenue for fiscal year 2024 was $924.2 million, an increase of 12% compared to $822.4 million in fiscal year 2023[323]. - Revenue from the Food Safety segment increased by 20% to $655.3 million, driven by significant growth in Bacterial & General Sanitation (27% increase) and Indicator Testing, Culture Media & Other (25% increase)[323][324]. - Revenue from the Animal Safety segment decreased by $6.8 million to $268.9 million, with a notable 10% decline in Genomics Services attributed to a strategic shift towards large production animals[327][329]. - International revenues rose by 15% to $459.0 million, primarily due to $63.8 million from the 3M FSD acquisition in the first quarter of fiscal 2024[331]. - International revenues accounted for 49.7% of the company's consolidated net revenues in fiscal year 2024[356]. Financial Metrics - Adjusted EBITDA for fiscal year 2024 was $213.2 million, with an Adjusted EBITDA margin of 23.1%, down from 25.0% in the prior year[343]. - The company reported a net loss of $9.4 million for fiscal year 2024, improving from a net loss of $22.9 million in fiscal year 2023[343]. - The gross margin for the Food Safety segment improved to $136.8 million, a 38% increase from the previous year[333]. Expenses - Sales and marketing expenses increased by 29% to $182.9 million, largely due to costs associated with the FSD transaction and headcount increases in the Animal Safety segment[333]. - General and administrative expenses decreased slightly to $199.9 million, reflecting lower transaction fees and integration expenses compared to the previous year[334]. - Service revenue from genomics services decreased by 5% to $102.4 million, primarily due to customer attrition in the poultry market[330]. Cash and Investments - As of May 31, 2024, the company had cash and cash equivalents and marketable securities totaling $170.9 million, with an additional $150.0 million available under its revolving line of credit[345]. - In fiscal year 2024, cash outflow for investing activities was $111.4 million, primarily due to purchases of property, equipment, and noncurrent intangible assets, partially offset by $82.0 million from the sale of marketable securities[347]. - In fiscal year 2023, the company had purchases of property, equipment, and non-current intangible assets totaling $65.8 million, with marketable securities maturing at $266.8 million[347]. Legal and Compliance - The company is subject to certain legal proceedings that are not expected to materially affect its financial position[345]. - Management identified material weaknesses in internal controls related to the accounting and valuation of acquisitions and ineffective information technology general controls[387]. - Management's assessment concluded that the consolidated financial statements fairly present the financial condition and results of operations as of May 31, 2024[391]. Future Plans and Liquidity - The company plans to issue additional equity securities or enter into financing arrangements to meet future capital needs if necessary[345]. - The company continuously monitors its liquidity situation and evaluates financial alternatives to preserve liquidity[345]. - The company completed the exit of distribution and back office-related service contracts with 3M, maintaining only a contract manufacturing agreement[348].