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 |
(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 | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller Reporting Company | ||||
Emerging growth company |
February 28, |
May 31, |
|||||||
2022 |
2021 |
|||||||
Assets |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Marketable securities |
||||||||
Accounts receivable, less allowance of $ |
||||||||
Inventories |
||||||||
Prepaid expenses and other current assets |
||||||||
|
|
|
|
|||||
Total Current Assets |
||||||||
Net Property and Equipment |
||||||||
Other Assets |
||||||||
Right of use assets |
||||||||
Goodwill |
||||||||
Other non-amortizable intangible assets |
||||||||
Amortizable intangible and other assets, net of accumulated amortization of $ |
||||||||
Other non-current assets |
||||||||
|
|
|
|
|||||
Total Assets |
$ | $ | ||||||
|
|
|
|
|||||
Liabilities and Stockholders’ Equity |
||||||||
Current Liabilities |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued compensation |
||||||||
Income taxes |
||||||||
Other accruals |
||||||||
|
|
|
|
|||||
Total Current Liabilities |
||||||||
Deferred Income Taxes |
||||||||
Other Non-Current Liabilities |
||||||||
|
|
|
|
|||||
Total Liabilities |
||||||||
Commitments and Contingencies (note 10) |
||||||||
Equity |
||||||||
Preferred stock, $ |
||||||||
Common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Retained earnings |
||||||||
|
|
|
|
|||||
Total Stockholders’ Equity |
||||||||
|
|
|
|
|||||
Total Liabilities and Stockholders’ Equity |
$ | $ | ||||||
|
|
|
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
February 28, |
February 28, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Revenues |
||||||||||||||||
Product revenues |
$ | $ | $ | $ | ||||||||||||
Service revenues |
||||||||||||||||
Total Revenues |
||||||||||||||||
Cost of Revenues |
||||||||||||||||
Cost of product revenues |
||||||||||||||||
Cost of service revenues |
||||||||||||||||
Total Cost of Revenues |
||||||||||||||||
Gross Margin |
||||||||||||||||
Operating Expenses |
||||||||||||||||
Sales and marketing |
||||||||||||||||
General and administrative |
||||||||||||||||
Research and development |
||||||||||||||||
Total Operating Expenses |
||||||||||||||||
Operating Income |
||||||||||||||||
Other Income (Expense) |
||||||||||||||||
Interest income |
||||||||||||||||
Other expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Total Other Income |
||||||||||||||||
Income Before Taxes |
||||||||||||||||
Provision for Income Taxes |
||||||||||||||||
Net Income |
$ | $ | $ | $ | ||||||||||||
Net Income Per Share |
||||||||||||||||
Basic |
$ | $ | $ | $ | ||||||||||||
Diluted |
$ | $ | $ | $ | ||||||||||||
Weighted Average Shares Outstanding |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
February 28, |
February 28, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||||||
foreign currency translations |
( |
) | ||||||||||||||
Other comprehensive loss, net of tax: |
||||||||||||||||
unrealized loss on marketable securities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total comprehensive income |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Accumulated |
|||||||||||||||||||||||||
Additional |
Other |
||||||||||||||||||||||||
Common Stock |
Paid-in |
Comprehensive |
Retained |
||||||||||||||||||||||
Shares |
Amount |
Capital |
Income (Loss) |
Earnings |
Total |
||||||||||||||||||||
Balance, June 1, 2021 |
,468 |
$ |
$ |
$ |
( |
) |
$ |
$ |
|||||||||||||||||
Exercise of options and share-based compensation expense |
— | — | |||||||||||||||||||||||
Issuance of shares under employee stock purchase plan |
— | — | |||||||||||||||||||||||
Net income for the three months ended August 31, 2021 |
— | — | — | — | |||||||||||||||||||||
Other comprehensive loss for the three months ended August 31, 2021 |
— | — | — | ( |
) | — | ( |
) | |||||||||||||||||
Balance, August 31, 2021 |
( |
) |
$ |
||||||||||||||||||||||
Exercise of options and share-based compensation expense |
— | — | |||||||||||||||||||||||
Net income for the three months ended November 30, 2021 |
— | — | — | — | |||||||||||||||||||||
Other comprehensive loss for the three months ended November 30, 2021 |
— | — | — | ( |
) | — | ( |
) | |||||||||||||||||
Balance, November 30, 2021 |
( |
) |
$ |
||||||||||||||||||||||
Exercise of options and share-based compensation expense |
— | — | |||||||||||||||||||||||
Issuance of shares under employee stock purchase plan |
— | — |
|||||||||||||||||||||||
Net income for the three months ended February 28, 2022 |
— | — | — | — | |||||||||||||||||||||
Other comprehensive income for the three months ended February 28, 2022 |
— | — | — | — | |||||||||||||||||||||
Balance, February 28, 2022 |
7,818 |
( |
) |
$ |
|||||||||||||||||||||
Accumulated |
||||||||||||||||||||||||
Additional |
Other |
|||||||||||||||||||||||
Common Stock |
Paid-in |
Comprehensive |
Retained |
|||||||||||||||||||||
Shares |
Amount |
Capital |
Income (Loss) |
Earnings |
Total |
|||||||||||||||||||
Balance, June 1, 2020 |
$ |
$ |
$ |
( |
) |
$ |
$ |
|||||||||||||||||
Exercise of options and share-based compensation expense |
— | — | ||||||||||||||||||||||
Issuance of shares under employee stock purchase plan |
— | — | ||||||||||||||||||||||
Net income for the three months ended August 31, 2020 |
— | — | — | — | ||||||||||||||||||||
Other comprehensive income for the three months ended August 31, 2020 |
— | — | — | — | ||||||||||||||||||||
Balance, August 31, 2020 |
$ |
$ |
$ |
( |
) |
$ |
$ |
|||||||||||||||||
Exercise of options and share-based compensation expense |
— | — | ||||||||||||||||||||||
Net income for the three months ended November 30, 2020 |
— | — | — | — | ||||||||||||||||||||
Other comprehensive income for the three months ended November 30, 2020 |
— | — | — | — | ||||||||||||||||||||
Balance, November 30, 2020 |
( |
) |
||||||||||||||||||||||
Exercise of options and share-based compensation expense |
— | — | ||||||||||||||||||||||
Issuance of shares under employee stock purchase plan |
||||||||||||||||||||||||
Issuance of shares for Megazyme acquisiton |
||||||||||||||||||||||||
Net income for the three months ended February 28, 2021 |
— | — | — | — | ||||||||||||||||||||
Other comprehensive income for the three months ended February 28, 2021 |
— | — | — | — | ||||||||||||||||||||
Balance, February 28, 2021 |
( |
) |
||||||||||||||||||||||
Nine Months Ended |
||||||||
February 28, |
||||||||
2022 |
2021 |
|||||||
Cash Flows From Operating Activities |
||||||||
Net Income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash from operating activities: |
||||||||
Depreciation and amortization |
||||||||
Share-based compensation |
||||||||
Change in operating assets and liabilities, net of business acquisitions: |
||||||||
Accounts receivable |
( |
) | ||||||
Inventories |
( |
) | ||||||
Prepaid expenses and other current assets |
( |
) | ( |
) | ||||
Accounts payable, accruals and other changes |
( |
) | ||||||
Net Cash From Operating Activities |
||||||||
Cash Flows For Investing Activities |
||||||||
Purchases of property, equipment and other non-current intangible assets |
( |
) | ( |
) | ||||
Proceeds from the sale of marketable securities |
||||||||
Purchases of marketable securities |
( |
) | ( |
) | ||||
Business acquisitions, net of cash acquired |
( |
) | ( |
) | ||||
Net Cash For Investing Activities |
( |
) | ( |
) | ||||
Cash Flows From Financing Activities |
||||||||
Exercise of stock options and issuance of employee stock purchase plan shares |
||||||||
Net Cash From Financing Activities |
||||||||
Effect of Foreign Exchange Rates on Cash |
( |
) | ( |
) | ||||
Net Increase (Decrease) In Cash and Cash Equivalents |
( |
) | ||||||
Cash and Cash Equivalents, Beginning of Period |
||||||||
Cash and Cash Equivalents, End of Period |
$ | $ | ||||||
February 28, |
May 31, |
|||||||||||
(in thousands) |
Maturity |
2022 |
2021 |
|||||||||
Commercial Paper & Corporate Bonds |
0 - 90 days | |||||||||||
91 - 180 days |
||||||||||||
181 days - 1 year |
||||||||||||
1 - 2 years | ||||||||||||
Certificates of Deposit |
0 - 90 days |
|||||||||||
91 - 180 days | ||||||||||||
181 days - 1 year | ||||||||||||
1 - 2 years | ||||||||||||
Total Marketable Securities |
$ | $ | ||||||||||
Amortized |
Unrealized |
Unrealized |
||||||||||||||
(in thousands) |
Cost |
Gains |
Losses |
Fair Value |
||||||||||||
Commercial Paper & Corporate Bonds |
( |
) | ||||||||||||||
Certificates of Deposit |
||||||||||||||||
Total Marketable Securities |
$ | $ | $ | ( |
) | $ | ||||||||||
Amortized |
Unrealized |
Unrealized |
||||||||||||||
(in thousands) |
Cost |
Gains |
Losses |
Fair Value |
||||||||||||
Commercial Paper & Corporate Bonds |
( |
) | ||||||||||||||
Certificates of Deposit |
||||||||||||||||
Total Marketable Securities |
$ | $ | $ | ( |
) | $ | ||||||||||
February 28, |
May 31, |
|||||||
(in thousands) |
2022 |
2021 |
||||||
Raw materials |
$ | $ | ||||||
Work-in-process |
||||||||
Finished and purchased goods |
||||||||
$ | $ | |||||||
• | Identification of the contract with a customer; |
• | Identification of the performance obligations in the contract; |
• | Determination of the transaction price; |
• | Allocation of the transaction price to the performance obligations in the contract; and |
• | Recognition of revenue when, or as, the Company satisfies the performance obligations. |
• | Diagnostic test kits, dehydrated culture media and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation; |
• | Consumable products marketed to veterinarians, retailers, livestock producers and animal health product distributors; and |
• | Rodenticides, disinfectants and insecticides to assist in the control of rodents, insects and disease in and around agricultural, food production and other facilities. |
• | Genomic identification and related interpretive bioinformatic services; and |
• | Other commercial laboratory services. |
Three Months ended February 28, |
Nine Months ended February 28, |
|||||||||||||||
(in thousands) |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Food Safety |
||||||||||||||||
Natural Toxins, Allergens & Drug Residues |
$ | $ | $ | $ | ||||||||||||
Bacterial & General Sanitation |
||||||||||||||||
Culture Media & Other |
||||||||||||||||
Rodenticides, Insecticides & Disinfectants |
||||||||||||||||
Genomics Services |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
Animal Safety |
||||||||||||||||
Life Sciences |
$ | $ | $ | $ | ||||||||||||
Veterinary Instruments & Disposables |
||||||||||||||||
Animal Care & Other |
||||||||||||||||
Rodenticides, Insecticides & Disinfectants |
||||||||||||||||
Genomics Services |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Revenues |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
February 28, |
February 28, |
|||||||||||||||
(in thousands, except per share amounts) |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Numerator for basic and diluted net income per share: |
||||||||||||||||
Net income attributable to Neogen |
$ | $ | $ | $ | ||||||||||||
Denominator for basic net income per share: |
||||||||||||||||
Weighted average shares |
||||||||||||||||
Effect of dilutive stock options and RSUs |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Denominator for diluted net income per share |
||||||||||||||||
Net income attributable to Neogen per share: |
||||||||||||||||
Basic |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Corporate and |
||||||||||||||||
Food |
Animal |
Eliminations |
||||||||||||||
(in thousands) |
Safety |
Safety |
(1) |
Total |
||||||||||||
As of and for the three months ended February 28, 2022 |
|
|||||||||||||||
Product revenues to external customers |
$ | $ | $ | — | $ | |||||||||||
Service revenues to external customers |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues to external customers |
— | |||||||||||||||
Operating income (loss) |
( |
) | ||||||||||||||
Total assets |
||||||||||||||||
As of and for the three months ended February 28, 2021 |
|
|||||||||||||||
Product revenues to external customers |
$ | $ | $ | — | $ | |||||||||||
Service revenues to external customers |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues to external customers |
— | |||||||||||||||
Operating income (loss) |
( |
) | ||||||||||||||
Total assets |
(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 . |
Corporate and |
||||||||||||||||
Food |
Animal |
Eliminations |
||||||||||||||
(in thousands) |
Safety |
Safety |
(1) |
Total |
||||||||||||
As of and for the nine months ended February 28, 2022 |
||||||||||||||||
Product revenues to external customers |
$ | $ | $ | — | $ | |||||||||||
Service revenues to external customers |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues to external customers |
— | |||||||||||||||
Operating income (loss) |
( |
) | ||||||||||||||
As of and for the nine months ended February 28, 2021 |
|
|||||||||||||||
Product revenues to external customers |
$ | $ | $ | — | $ | |||||||||||
Service revenues to external customers |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues to external customers |
— | |||||||||||||||
Operating income (loss) |
( |
) |
Three months ended |
Nine months ended |
|||||||||||||||
February 28, |
February 28, |
|||||||||||||||
(in thousands) |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Domestic |
$ | $ | $ | $ | ||||||||||||
International |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenue |
||||||||||||||||
|
|
|
|
|
|
|
|
Weighted- |
||||||||
Average |
||||||||
(Options in thousands) |
Shares |
Exercise Price |
||||||
Options outstanding June 1, 2021 |
$ | |||||||
Granted |
||||||||
Exercised |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|||||||
Options outstanding February 28, 2022 |
$ |
FY 2022 |
FY 2021 | |||
Risk-free interest rate |
||||
Expected dividend yield |
||||
Expected stock price volatility |
||||
Expected option life |
Weighted- |
||||||||
Average |
||||||||
(Options in thousands) |
Shares |
Fair Value |
||||||
RSUs outstanding June 1, 2021 |
$ | |||||||
Granted |
||||||||
Released |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|||||||
RSUs outstanding February 28, 2022 |
$ |
Three Months ended February 28, |
Nine Months ended February 28, |
|||||||||||||||||||||||
(in thousands) |
2022 |
2021 |
% |
2022 |
2021 |
% |
||||||||||||||||||
Consolidated |
||||||||||||||||||||||||
Revenues |
$ | 128,244 | $ | 116,709 | 10 | % | $ | 387,066 | $ | 341,034 | 13 | % | ||||||||||||
Organic Sales Growth |
6 |
% |
10 |
% | ||||||||||||||||||||
Food Safety |
||||||||||||||||||||||||
Revenues |
$ | 62,756 | $ | 58,424 | 7 | % | $ | 192,610 | $ | 170,143 | 13 | % | ||||||||||||
Organic Sales Growth |
|
4 |
% |
8 |
% | |||||||||||||||||||
Animal Safety |
||||||||||||||||||||||||
Revenues |
$ | 65,488 | $ | 58,285 | 12 | % | $ | 194,456 | $ | 170,891 | 14 | % | ||||||||||||
Organic Sales Growth |
9 |
% |
12 |
% | ||||||||||||||||||||
% of International Sales |
40 | % | 40 | % | 40 | % | 39 | % | ||||||||||||||||
Effective Tax Rate |
18.1 | % | 16.3 | % | 19.3 | % | 18.1 | % | ||||||||||||||||
Net Income |
$ | 5,443 | $ | 13,377 | -59 | % | $ | 33,348 | $ | 45,122 | -26 | % | ||||||||||||
Per Diluted Share |
$ | 0.05 | $ | 0.12 | $ | 0.31 | $ | 0.42 | ||||||||||||||||
Cash from Operations |
$ | 47,648 | $ | 59,120 |
• | Food Safety organic sales exclude revenues from the acquisitions of Megazyme (December 2020) and Delf/Abbott Analytical (November 2021). |
• | Animal Safety organic sales exclude revenues from the acquisitions of StandGuard (July 2020), CAPInnoVet (September 2021) and Genetic Veterinary Sciences (December 2021). |
• | Net income decreased by $9.3 million and $10.6 million in the second and third quarters, respectively, of the current fiscal year primarily due to legal and consulting expenses for due diligence related to our recently announced agreement to combine with 3M’s Food Safety business. |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
February 28, 2022 |
February 28, 2022 |
|||||||||||||||
Revenue |
Revenue |
Revenue |
Revenue |
|||||||||||||
% Inc (Dec) |
% Inc (Dec) |
% Inc (Dec) |
% Inc (Dec) |
|||||||||||||
USD |
Local Currency |
USD |
Local Currency |
|||||||||||||
U.K. Operations (including Neogen Italia) |
16 | % | 18 | % | 14 | % | 10 | % | ||||||||
Brazil Operations |
(2 | )% | 0 | % | (8 | )% | (8 | )% | ||||||||
Neogen Latinoamerica |
1 | % | 4 | % | 12 | % | 8 | % | ||||||||
Neogen Argentina |
18 | % | 44 | % | 25 | % | 59 | % | ||||||||
Neogen Uruguay |
22 | % | 27 | % | 8 | % | 11 | % | ||||||||
Neogen Chile |
13 | % | 28 | % | 40 | % | 46 | % | ||||||||
Neogen China |
(17 | )% | (19 | )% | 13 | % | 9 | % | ||||||||
Neogen India |
53 | % | 57 | % | 19 | % | 20 | % | ||||||||
Neogen Canada |
10 | % | 10 | % | 38 | % | 33 | % | ||||||||
Neogen Australasia |
20 | % | 29 | % | 32 | % | 32 | % |
Three Months Ended February 28, |
||||||||||||||||
Increase/ |
||||||||||||||||
(in thousands) |
2022 |
2021 |
(Decrease) |
% |
||||||||||||
Food Safety |
||||||||||||||||
Natural Toxins, Allergens & Drug Residues |
$ | 17,965 | $ | 18,255 | $ | (290 | ) | (2 | )% | |||||||
Bacterial & General Sanitation |
11,288 | 10,335 | 953 | 9 | % | |||||||||||
Culture Media & Other |
18,145 | 16,094 | 2,051 | 13 | % | |||||||||||
Rodenticides, Insecticides & Disinfectants |
9,577 | 8,436 | 1,141 | 14 | % | |||||||||||
Genomics Services |
5,781 | 5,304 | 477 | 9 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
$ | 62,756 | $ | 58,424 | $ | 4,332 | 7 | % | |||||||||
Animal Safety |
||||||||||||||||
Life Sciences |
$ | 1,339 | $ | 1,399 | $ | (60 | ) | (4 | )% | |||||||
Veterinary Instruments & Disposables |
17,047 | 12,494 | 4,553 | 36 | % | |||||||||||
Animal Care & Other |
9,449 | 8,873 | 576 | 6 | % | |||||||||||
Rodenticides, Insecticides & Disinfectants |
18,359 | 18,085 | 274 | 2 | % | |||||||||||
Genomics Services |
19,294 | 17,434 | 1,860 | 11 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
$ | 65,488 | $ | 58,285 | $ | 7,203 | 12 | % | |||||||||
|
|
|
|
|
|
|||||||||||
Total Revenues |
$ | 128,244 | $ | 116,709 | $ | 11,535 | 10 | % | ||||||||
|
|
|
|
|
|
Nine Months Ended February 28, |
||||||||||||||||
Increase/ |
||||||||||||||||
(in thousands) |
2022 |
2021 |
(Decrease) |
% |
||||||||||||
Food Safety |
||||||||||||||||
Natural Toxins, Allergens & Drug Residues |
$ | 59,397 | $ | 57,271 | $ | 2,126 | 4 | % | ||||||||
Bacterial & General Sanitation |
34,709 | 31,502 | 3,207 | 10 | % | |||||||||||
Culture Media & Other |
56,136 | 42,480 | 13,656 | 32 | % | |||||||||||
Rodenticides, Insecticides & Disinfectants |
25,459 | 24,324 | 1,135 | 5 | % | |||||||||||
Genomics Services |
16,909 | 14,566 | 2,343 | 16 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
$ | 192,610 | $ | 170,143 | $ | 22,467 | 13 | % | |||||||||
Animal Safety |
||||||||||||||||
Life Sciences |
$ | 4,011 | $ | 4,122 | $ | (111 | ) | (3 | )% | |||||||
Veterinary Instruments & Disposables |
47,956 | 34,843 | 13,113 | 38 | % | |||||||||||
Animal Care & Other |
29,517 | 25,902 | 3,615 | 14 | % | |||||||||||
Rodenticides, Insecticides & Disinfectants |
58,777 | 56,470 | 2,307 | 4 | % | |||||||||||
Genomics Services |
54,195 | 49,554 | 4,641 | 9 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
$ | 194,456 | $ | 170,891 | $ | 23,565 | 14 | % | |||||||||
|
|
|
|
|
|
|||||||||||
Total Revenues |
$ | 387,066 | $ | 341,034 | $ | 46,032 | 13 | % | ||||||||
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
February 28, |
February 28, |
|||||||||||||||
(dollars in thousands) |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Interest income (net of expense) |
$ | 314 | $ | 294 | $ | 741 | $ | 1,571 | ||||||||
Foreign currency transactions |
(185 | ) | (118 | ) | (170 | ) | (374 | ) | ||||||||
Insurance settlement |
— | — | — | 309 | ||||||||||||
Legal settlement |
— | — | — | (300 | ) | |||||||||||
LGS contingent consideration |
— | 111 | (135 | ) | 111 | |||||||||||
Other |
137 | (84 | ) | 271 | (109 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Other Income |
$ | 266 | $ | 203 | $ | 707 | $ | 1,208 | ||||||||
|
|
|
|
|
|
|
|
Risk Category |
Hypothetical Change |
February 28, 2022 |
Impact | |||||
(dollars in thousands) |
||||||||
Foreign Currency - Revenue |
10% Decrease in exchange rates | $ | 15,561 | Earnings | ||||
Foreign Currency - Hedges |
10% Decrease in exchange rates | 1,973 | Fair Value |
• | political, social and economic instability and disruptions, including social unrest, geopolitical tensions, currency, inflation and interest rate uncertainties; |
• | government export controls, economic sanctions, embargoes or trade restrictions; |
• | the imposition of duties and tariffs and other trade barriers; |
• | limitations on ownership and on repatriation or dividend of earnings; |
• | transportation delays and interruptions; |
• | labor unrest and current and changing regulatory environments; |
• | increased compliance costs, including costs associated with disclosure requirements and related due diligence; |
• | difficulties in staffing and managing multi-national operations; |
• | limitations on Neogen’s ability to enforce legal rights and remedies; |
• | access to or control of networks and confidential information due to local government controls and vulnerability of local networks to cyber risks; and |
• | fluctuations in foreign currency exchange rates. |
2.1 |
2.2 |
2.3 |
3.1 |
10.1 |
31.1 |
31.2 |
32 |
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document |
101.SCH | Inline XBRL Taxonomy Extension Schema Document |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | Inline XBRL Taxonomy Extension Definition Document |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
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) |