Company: NEOG
Filing Date: 2025-01-15
Form Type: 10-Q
Source: 0000950170-25-005818
Chunk: 26

Company: NEOGEN CORP
Filing Date: 2025-01-15
Form: 10-Q
Item: Item 1
Chunk 26
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593

    4,688

    8,715

    6,639

    Restructuring (3)

    9,568

    1,856

    9,938

    2,415

    Goodwill impairment

    461,390

    —

    461,390

    —

    Contingent consideration adjustments

    —

    150

    —

    450

    ERP expense (4)

    716

    2,075

    2,551

    2,203

    Discontinued product line expense (5)

    —

    —

    912

    20

    Other

    67

    (74
    )

    67

    (74
    )

    Adjusted EBITDA
     
    $
    51,381

    $
    55,100

    $
    95,095

    $
    107,469

    Adjusted EBITDA margin %

    22.2
    %

    24.0
    %

    21.2
    %

    23.4
    %

(1)Net foreign currency transaction gain associated with the revaluation of foreign denominated intercompany loans established in connection with the 3M Food Safety transaction and other non-hedged foreign currency revaluation resulting from 3M agreements.

(2)Includes costs associated with the 3M transaction, including various transition agreements and other related integration costs. 

(3)Severance, non-cash impairment, and other related exit costs primarily associated with a reduction in our global genomics business.

(4)Expenses related to ERP implementation.    

(5)Expenses associated with certain discontinued product lines. 

Adjusted EBITDA decreased $3.7 million and $12.4 million during the three and six months ended November 30, 2024. Expressed as a percentage of revenue, Adjusted EBITDA was 22.2% and 21.2% during the three and six months ended November 30, 2024 and 24.0% and 23.4% during the three and six months ended November 30, 2023 2023, respectively. The lower Adjusted EBITDA in the current year was driven primarily by lower sales and higher operating expenses compared to the prior-year period.

Financial Condition and Liquidity 

Our primary sources of liquidity are cash