Neogen(NEOG) - 2025 Q3 - Quarterly Results

Financial Performance - Revenues for the third quarter were $221.0 million, a decrease of 3.4% compared to $228.8 million in the prior year[4] - Net loss for the third quarter was $11.0 million, or $(0.05) per diluted share, compared to a net loss of $2.0 million, or $(0.01) per diluted share, in the prior-year period[5] - Adjusted Net Income was $20.9 million, or $0.10 per diluted share, down from $26.4 million, or $0.12 per diluted share, in the prior-year period[5] - Core revenue growth for the total Neogen in Q3 FY25 was 0.2%, with a total revenue of $220,980 thousand, down from $228,812 thousand in Q3 FY24, reflecting a decline of 3.4%[38] - For the nine months ended February 28, 2025, the net loss was $479,848 thousand compared to a net loss of $4,006 thousand for the same period in 2024[22] - The company’s adjusted net income for the nine months ended February 28, 2025, was $59,616 thousand, down from $74,988 thousand in 2024[34] Segment Performance - Food Safety segment revenues were $152.7 million, a decrease of 3.2% compared to $157.8 million in the prior year, with core growth of 1.5%[9] - Animal Safety segment revenues were $68.2 million, a decrease of 4.0% compared to $71.1 million in the prior year, with a 2.6% core revenue decline[10] Margins and Expenses - Gross margin was 49.9% in the third quarter, down from 51.1% in the same quarter a year ago, primarily due to lower revenue and higher integration costs[6] - Adjusted EBITDA for the third quarter was $48.5 million, representing an Adjusted EBITDA Margin of 22.0%, down from 23.0% in the prior-year period[8] - Adjusted EBITDA for the nine months ended February 28, 2025, was $143,608 thousand, with an Adjusted EBITDA margin of 21.5% compared to 23.3% in 2024[30] - The total interest expense for the nine months ended February 28, 2025, was $52,027 thousand, compared to $49,508 thousand in 2024[30] - The company reported a depreciation and amortization expense of $89,222 thousand for the nine months ended February 28, 2025, slightly up from $87,853 thousand in 2024[22] Cash Flow and Outlook - The company reported cash flows provided by operating activities of $41,702 thousand for the nine months ended February 28, 2025, compared to $8,517 thousand in 2024[22] - Cash and cash equivalents at the end of the year were $127,705 thousand, down from $161,437 thousand at the end of the previous year[22] - The company updated its full-year revenue outlook to approximately $895 million and Adjusted EBITDA to approximately $195 million due to third-quarter results being lower than expected[13] Investment and Production - The company used $83,266 thousand for investing activities in the nine months ended February 28, 2025, compared to $11,786 thousand in 2024[22] - The establishment of the company's own Petrifilm production is progressing well, with the first of two production lines nearly completely installed[3] - The company incurred a goodwill impairment of $461,390 thousand during the nine months ended February 28, 2025[30]