# EDGAR Filing Document

**Accession Number:** 0000711377
**File Stem:** 0000950170-25-099379
**Filing Date:** 2025-7
**Character Count:** 34238
**Document Hash:** 721626aaf8e7f7967887ffe382b904a2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-099379.hdr.sgml**: 20250729

**ACCESSION NUMBER**: 0000950170-25-099379

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 11

**CONFORMED PERIOD OF REPORT**: 20250729

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250729

**DATE AS OF CHANGE**: 20250729

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NEOGEN CORP
- **CENTRAL INDEX KEY:** 0000711377
- **STANDARD INDUSTRIAL CLASSIFICATION:** IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES [2835]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 382367843
- **STATE OF INCORPORATION:** MI
- **FISCAL YEAR END:** 0531

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-17988
- **FILM NUMBER:** 251157496

**BUSINESS ADDRESS:**
- **STREET 1:** 620 LESHER PLACE
- **CITY:** LANSING
- **STATE:** MI
- **ZIP:** 48912
- **BUSINESS PHONE:** 5173729200

**MAIL ADDRESS:**
- **STREET 1:** 620 LESHER PLACE
- **CITY:** LANSING
- **STATE:** MI
- **ZIP:** 48912

?xml version='1.0' encoding='ASCII'? 8-K

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

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**FORM** 8-K

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**CURRENT REPORT** 

**Pursuant to Section 13 OR 15(d)** 

**of The Securities Exchange Act of 1934** 

**Date of Report (Date of earliest event reported)** **July 29, 2025**

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NEOGEN CORPORATION

**(Exact name of registrant as specified in its charter)** 

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| | | |
|:---|:---|:---|
| Michigan | 0-17988 | 38-2367843 |
| **(State or other jurisdiction<br>of incorporation)** | **(Commission**<br>**File Number)** | **(IRS Employer**<br>**Identification No.)** |

---

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| | |
|:---|:---|
| 620 Lesher Place Lansing**,** Michigan | 48912 |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code** 517**-**372-9200

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

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| | | |
|:---|:---|:---|
| **Title of each Class**<br>| &nbsp;&nbsp;&nbsp;**Trading<br>Symbol(s)**<br>| &nbsp;&nbsp;&nbsp;**Name of each exchange<br>on which registered**<br>|
| Common Stock, $0.16 par value per share | NEOG | NASDAQ Global Select Market |

---

N/A

**(Former name or former address, if changed since last report.)** 

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition** 

On July 29, 2025, Neogen Corporation issued a press release announcing results of operations for its fiscal 2025 fourth quarter and twelve months ended May 31, 2025. A copy of the press release is attached as Exhibit 99.1 to this report. This Form 8-K and the attached exhibit shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not incorporated by reference into any filing of the Registrant, whether made before or after the date of this report, regardless of any general incorporation language in the filing.

**Item 9.01 Financial Statements and Exhibits** 

(d)Exhibits

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| | |
|:---|:---|
| &nbsp;&nbsp;99.1 | [<u>Press Release dated July 29, 2025</u>](neog-ex99_1.htm) |
| &nbsp;&nbsp;104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

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**SIGNATURES** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
|  | NEOGEN CORPORATION<br>|
|  | (Registrant) |
| Date: July 29, 2025 | /s/ David H. Naemura<br>|
|  | David H. Naemura |
|  | Chief Financial & Operating Officer |

---

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## Exhibit 99.1

**Exhibit 99.1** 

**Neogen Announces Fourth-Quarter 2025 Results**

• Revenue of $225.5 million.

• Net loss of $612.2 million due to non-cash goodwill impairment; $(2.82) per diluted share.

• Adjusted Net Income<sup>1</sup> of $11.3 million; $0.05 per diluted share.

• Adjusted EBITDA<sup>1</sup> of $40.6 million.

<sup>1</sup>Non-GAAP financial measures; see explanations and reconciliations that follow

LANSING, Mich., July 29, 2025 – Neogen Corporation (NASDAQ: NEOG) announced today the results of the fourth quarter ended May 31, 2025.

"The softer end-market conditions continued in the fourth quarter, with elevated trade uncertainty and the cumulative effect of the last four years of inflation on food production," said John Adent, Neogen's President and Chief Executive Officer. "We believe the Food Safety end market can still grow in this environment, but at a rate below what we estimate as its normal historical performance. Outside of the specific challenges in our sample collection product line, Food Safety core revenue grew low-single-digits in the fourth quarter and mid-single digits for the full year. Although profitability in the fourth quarter was below our expectations, we have multi-pronged improvement actions underway to address the several issues that weighed on our results in the quarter and expect to see a decreasing impact moving forward."

Adent continued, "As the Company progresses into the later stages of the integration, the final piece, Petrifilm production, continues to progress well. Our core mission – helping to protect the world's food supply – has never been more relevant and we believe that our long-term growth drivers remain fully intact. The global food system is under increasing pressure to be safer, more transparent and more resilient, and we see the current regulatory backdrop as favorable, particularly in the US, with the USDA having made key announcements this month focused on the priority of food safety. With over 40 years of experience in the industry, as well as our leading product portfolio and innovation opportunities, Neogen is a valuable partner for both customers and regulators in maximizing the effectiveness of their food safety efforts. The Neogen team is entirely focused on the road ahead and executing with precision, excited about the positive future we believe is in store for the Company."

**Financial and Business Highlights** 

Revenues for the fourth quarter were $225.5 million, a decrease of 4.8% compared to $236.8 million in the prior year. Core revenue, which excludes the impacts of foreign currency translation, as well as acquisitions completed and product lines discontinued in the last 12 months, was a decline of 2.9%. Acquisitions and discontinued product lines represented a 0.9% negative impact, while foreign currency had a negative impact of 1.0%.

Revenues for the full year were $894.7 million, a decrease of 3.2% compared to $924.2 million in the prior year, including core revenue decline of 0.2%. Acquisitions and discontinued product lines represented a 0.4% negative impact, while foreign currency was a headwind of 2.6%.

Net loss for the fourth quarter was $612.2 million, or $(2.82) per diluted share, compared to net loss of $5.4 million, or $(0.02) per diluted share, in the prior-year period, with the current period net loss driven by a non-cash goodwill impairment charge related primarily to the acquisition of the former 3M Food Safety Division. Adjusted Net Income was $11.3 million, or $0.05 per diluted share, compared to $22.4 million, or $0.10 per diluted share, in the prior-year period, with the decline driven primarily by the lower level of operating income.

Net loss for the full year was $1,092.0 million, or $(5.03) per diluted share, compared to net loss of $9.4 million, or $(0.04) per diluted share, in the prior year, with the current-year net loss driven by non-cash goodwill impairment charges related primarily to the acquisition of the former 3M Food Safety Division. Adjusted Net Income for the full year was $70.9 million, or $0.33 per diluted share, compared to $97.4 million, or $0.45 per diluted share, in the prior year, with the decline driven primarily by the lower level of operating income.

Gross margin, expressed as a percentage of sales, was 41.2% in the fourth quarter of fiscal 2025. This compares to a gross margin of 47.9% in the same quarter a year ago, with the decrease primarily due to transaction and integration related costs, the majority of which were associated with the Company's relocated production of sample collection products, and an elevated level of inventory adjustments, as well as lower revenue. Excluding these costs, fourth-quarter gross margin was 46.5%.

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Gross margin for the full year was 47.1% compared to a gross margin of 50.2% in the prior year.

Fourth-quarter Adjusted EBITDA was $40.6 million, representing an Adjusted EBITDA Margin of 18.0%, compared to $53.0 million and a margin of 22.4% in the prior-year period. The lower Adjusted EBITDA Margin was primarily the result of the decline in gross margin.

Full-year Adjusted EBITDA was $184.2 million, representing an Adjusted EBITDA margin of 20.6% compared to $213.2 million and a margin of 23.1% in the prior year.

*Food Safety Segment* 

Revenues for the Food Safety segment were $161.8 million in the fourth quarter, a decrease of 3.0% compared to $166.9 million in the prior year, consisting of a 1.3% core revenue decline, a 0.4% negative impact from acquisitions and discontinued product lines and a negative foreign currency impact of 1.3%. The segment experienced core revenue growth in Biosecurity products and the Bacterial & General Sanitation product category, which benefited from strong growth in pathogen detection products. In the Company's Indicator Testing, Culture Media & Other product category, solid growth from new food quality and nutritional analysis products was offset by a decline in sales of sample collection products, as well as a decline in sales of Petrifilm, largely the result of comparing against a prior-year quarter in which an elevated backlog of orders was reduced. Within the Natural Toxins & Allergens product category, modest growth in allergens was offset by a decline in sales of natural toxin test kits

For the full year, revenues for the Food Safety segment were $638.1 million, a decrease of 2.6% compared to $655.3 million in the prior year, consisting of core growth of 1.2%, a 0.2% negative impact from acquisitions and a foreign currency headwind of 3.6%.

*Animal Safety Segment* 

Revenues for the Animal Safety segment were $63.6 million in the fourth quarter, a decrease of 8.9% compared to $69.9 million in the prior year, consisting of a 6.7% core revenue decline, a 2.0% headwind from discontinued product lines and negative foreign currency impact of 0.2%. In the Veterinary Instruments & Disposables product category, lower revenue was primarily driven by a decline in sales of needles and syringes. In the Company's Animal Care & Other product category, growth in sales of small-animal supplements was offset by lower sales of vitamin injectables. In the Company's portfolio of biosecurity products, strong growth in rodent control products was offset primarily by a decline in sales of insect control products.

For the full year, revenues for the Animal Safety segment were $256.5 million, a decrease of 4.6% compared to $268.9 million in the prior year, consisting of a core revenue decline of 3.5%, a 1.0% headwind from discontinued product lines and negative foreign currency impact of 0.1%.

On a global basis, core revenue growth in the Company's Genomics business experienced sequential improvement, declining low-single-digits in the fourth quarter. Strong growth in the bovine market, particularly internationally, was offset by a decline in the companion animal and other markets.

**Liquidity and Capital Resources** 

As of May 31, 2025, the Company had total cash and investments of $129.0 million and total outstanding debt of $900.0 million, as well as committed borrowing headroom of $150.0 million. The Company intends to use net proceeds of approximately $115 million from the July closing of the Cleaners & Disinfectants divestiture to repay $100 million of debt in the first quarter of fiscal 2026, which would reduce the Company's net leverage ratio by approximately 0.4x on a pro forma basis.

**Fiscal Year 2026 Outlook**

The Company is initiating its full-year outlook for fiscal year 2026. Revenue is anticipated to be in the range of $820 million to $840 million, primarily reflecting the expectation of continued end-market weakness. Adjusted EBITDA is expected to be $165 million to $175 million, which includes a lower level of inventory write-offs, as well as the estimated negative impact of sample collection production inefficiencies and tariffs. Capital expenditures are expected to decline significantly in fiscal year 2026 to approximately $50 million from $105 million in fiscal 2025. The Company's outlook excludes the results of the divested Cleaners & Disinfectants business from the closing date of July 17, 2025, forward.

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**Conference Call and Webcast** 

Neogen Corporation will host a conference call today at 8:00 a.m. Eastern Time to discuss the Company's financial results. The live webcast of the conference call and accompanying presentation materials can be accessed through Neogen's website at neogen.com/investor-relations. For those unable to access the webcast, the conference call can be accessed by dialing 1-800-549-8228 (U.S.) or (+1) 646-564-2877 (International) and requesting the Neogen Corporation Fourth Quarter 2024 Earnings Call (conference ID 65461). A replay of the conference call and webcast will be available shortly following the conclusion of the call, and can be accessed domestically or internationally by dialing 1-877-674-7070 or (+1) 416-764-8692, respectively, and providing the entry code 65461#, or through Neogen's Investor Relations website at <u>neogen.com/investor-relations</u>.

**About Neogen** 

Neogen Corporation is committed to fueling a brighter future for global food security through the advancement of human and animal well-being. Harnessing the power of science and technology, Neogen has developed comprehensive solutions spanning the Food Safety, Livestock, and Pet Health & Wellness markets. A world leader in these fields, Neogen has a presence in over 140 countries with a dedicated network of scientists and technical experts focused on delivering optimized products and technology for its customers.

*Certain portions of this news release that do not relate to historical financial information constitute forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those expected depending on a variety of factors listed in Management's Discussion and Analysis of Financial Condition and Results of Operations in the company's most recently filed Form 10-K.* 

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**NEOGEN CORPORATION** 

**UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS**

(In thousands, except share amounts)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended May 31,** | **Three Months Ended May 31,** | **Twelve Months Ended May 31,** | **Twelve Months Ended May 31,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenue |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Food Safety | $161826 | $166906 | $638140 | $655341 |
| &nbsp;&nbsp;&nbsp;&nbsp;Animal Safety | 63633 | 69888 | 256521 | 268881 |
| **Total revenue** | **225459** | **236794** | **894661** | **924222** |
| Cost of revenues | 132604 | 123312 | 473285 | 460322 |
| Gross profit | 92855 | 113482 | 421376 | 463900 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales & marketing | 46859 | 44337 | 183798 | 182872 |
| &nbsp;&nbsp;&nbsp;&nbsp;Administrative | 52943 | 50960 | 218167 | 199889 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment | 597931 |  | 1059321 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research & development | 6307 | 5145 | 21087 | 22476 |
| Total operating expenses | 704040 | 100442 | 1482373 | 405237 |
| Operating (loss) income | (611185) | 13040 | (1060997) | 58663 |
| Interest expense, net | (16485) | (17524) | (68512) | (67032) |
| Other expense | (3532) | (1915) | (3601) | (5936) |
| Loss before tax | (631202) | (6399) | (1133110) | (14305) |
| Income tax benefit | (19006) | (984) | (41066) | (4884) |
| **Net loss** | $(612196) | $(5415) | $(1092044) | $(9421) |
| **Net loss per diluted share** | $**(2.82)** | $**(0.02)** | $**(5.03)** | $**(0.04)** |
| Shares to calculate per share amount | 217040499 | 216610641 | 216894861 | 216481878 |

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**NEOGEN CORPORATION** 

**UNAUDITED CONSOLIDATED BALANCE SHEET** 

(In thousands, except share amounts)

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| | | |
|:---|:---|:---|
|  | **May 31** | **May 31** |
|  | **2025** | **2024** |
| <u>Assets</u> |  |  |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $129004 | $170611 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable securities |  | 325 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance of $5,397 and $4,140 | 153384 | 173005 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net of reserves of $16,483 and $12,361 | 190859 | 189267 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | 50402 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 53288 | 56025 |
| Total Current Assets | 576937 | 589233 |
| Property and Equipment |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Land and improvements | 10816 | 10497 |
| &nbsp;&nbsp;&nbsp;&nbsp;Building and improvements | 108721 | 108298 |
| &nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment | 180820 | 176369 |
| &nbsp;&nbsp;&nbsp;&nbsp;Furniture and fixtures | 7963 | 8260 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | 186242 | 113968 |
| Total Property and Equipment | 494562 | 417392 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation | (155431) | (140288) |
| Property and Equipment, net | 339131 | 277104 |
| Other Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Right of use assets | 17152 | 14785 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 1064902 | 2135632 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortizable intangible assets, net | 1410485 | 1511653 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets | 35229 | 20426 |
| Total Other Assets | 2527768 | 3682496 |
| Total Assets | $3443836 | $4548833 |
| <u>Liabilities and Stockholders' Equity</u> |  |  |
| Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of debt | $19301 | $2447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 79605 | 83061 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | 14134 | 19949 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax payable | 5599 | 10449 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 11078 | 10985 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 5558 | 4632 |
| &nbsp;&nbsp;&nbsp;&nbsp;Liabilities held for sale | 6556 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 32180 | 22800 |
| Total Current Liabilities | 174011 | 154323 |
| Deferred Income Tax Liability | 280907 | 326718 |
| Non-Current Debt | 874810 | 888391 |
| Other Non-Current Liabilities | 42854 | 35259 |
| Total Liabilities | 1372582 | 1404691 |
| Commitments and Contingencies |  |  |
| Stockholders' Equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $1.00 par value — shares authorized 100,000; none issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.16 par value — shares authorized 315,000,000; 217,044,498 and 216,614,407 shares issued and outstanding at May 31, 2025 and 2024, respectively | 34728 | 34658 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 2601848 | 2583885 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (28898) | (30021) |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings (accumulated deficit) | (536424) | 555620 |
| Total Stockholders' Equity | 2071254 | 3144142 |
| Total Liabilities and Stockholders' Equity | $3443836 | $4548833 |

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**NEOGEN CORPORATION** 

**UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS** 

(In thousands)

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** |
|  | **2025** | **2024** | **2023** |
| Cash Flows provided by Operating Activities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(1092044) | $(9421) | $(22870) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash from operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 119483 | 116717 | 88377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of discontinued product lines |  | 556 | 3109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sale of minority interest |  | (103) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (57783) | (27423) | (19230) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 17291 | 13768 | 10177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on disposal of property and equipment | (25) | 1073 | (486) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 3219 | 3441 | 2720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and other long-lived asset impairment | 1068747 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on refinancing and extinguishment of debt | 1938 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right of use asset amortization | 6189 | 4510 | 2097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (2839) | 4829 | (685) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities, net of business acquisitions: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 11638 | (20101) | (53879) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | (16117) | (55949) | 9955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (1504) | 11113 | (3121) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (402) | 13751 | 18642 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense accrual | 93 | (164) | 4052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in other non-current assets and non-current liabilities | 360 | (21333) | 154 |
| Net Cash provided by Operating Activities | 58244 | 35264 | 41028 |
| Cash Flows (used for) provided by Investing Activities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property, equipment and other non-current intangible assets | (104595) | (111421) | (65757) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the maturities of marketable securities | 325 | 82004 | 266772 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of marketable securities |  |  | (12523) |
| &nbsp;&nbsp;&nbsp;&nbsp;Business acquisitions, net of cash acquired |  |  | 11721 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of property and equipment and other | 5075 | 108 | 826 |
| Net Cash (used for) provided by Investing Activities | (99195) | (29309) | 201039 |
| Cash Flows (used for) provided by Financing Activities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock options and issuance of employee stock purchase plan shares | 2242 | 2456 | 1195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax payments related to share-based awards | (1500) | (118) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of long-term debt | 450000 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of long-term debt | (550000) |  | (100000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of revolving credit facility | 100000 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt issuance costs paid | (2019) |  | (19276) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of finance lease and other | (321) | (420) |  |
| Net Cash (used for) provided by Financing Activities | (1598) | 1918 | (118081) |
| Effects of Foreign Exchange Rate on Cash | 942 | (502) | (5219) |
| Net (Decrease) Increase in Cash and Cash Equivalents | (41607) | 7371 | 118767 |
| Cash and Cash Equivalents, Beginning of Year | 170611 | 163240 | 44473 |
| Cash and Cash Equivalents, End of Year | $129004 | $170611 | $163240 |
| Supplementary Cash Flow Information |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $68142 | $73168 | $42616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment obtained for noncash consideration | $930 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid, net of refunds | $26544 | $22303 | $15473 |

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**Non-GAAP Financial Measures** 

This press release includes certain non-GAAP financial measures, which management believes are useful to investors, securities analysts and other interested parties. Management uses Adjusted EBITDA as a key profitability measure. This is a non-GAAP measure that represents EBITDA before certain items that impact comparison of the performance of our business, either period-over-period or with other businesses. Adjusted EBITDA Margin is Adjusted EBITDA for a particular period expressed as a percentage of revenues for that period.

Management uses Adjusted Net Income as an additional measure of profitability. Adjusted Net Income is a non-GAAP measure that represents net income before certain items that impact comparison of the performance of our business, either period-over-period or with other businesses.

Core revenue growth is a non-GAAP measure that represents net sales for the period excluding the effects of foreign currency translation rates and the impacts of acquisitions and discontinued product lines, where applicable. Core revenue growth is presented to allow for a meaningful comparison of year-over-year performance without the volatility caused by foreign currency translation rates, or the incomparability that would be caused by the impact of an acquisition, disposal or product line discontinuation.

These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please see below for a reconciliation of historical non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP.

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**NEOGEN CORPORATION** 

**RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA** 

(In thousands)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended May 31,** | **Three Months Ended May 31,** | **Twelve Months Ended May 31,** | **Twelve Months Ended May 31,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Net loss** | $**(612196)** | $**(5415)** | $**(1092044)** | $**(9421)** |
| Income tax benefit | (19006) | (984) | (41066) | (4884) |
| Depreciation and amortization | 30261 | 28864 | 119483 | 116717 |
| Interest expense, net | 16485 | 17524 | 68512 | 67032 |
| **EBITDA** | $**(584456)** | $**39989** | $**(945115)** | $**169444** |
| Share-based compensation | 4330 | 3939 | 17291 | 13768 |
| FX transaction (gain) loss on loan and other revaluation <sup>(1)</sup> | (308) | 732 | (499) | 2082 |
| Transaction costs <sup>(2)</sup> | 4093 | 237 | 5729 | 2597 |
| 3M integration costs <sup>(3)</sup> | 302 | 2713 | 5752 | 11643 |
| Sample collection transition and ramp up costs <sup>(4)</sup> | 10302 | 410 | 14978 | 1210 |
| Petrifilm duplicate startup costs <sup>(5)</sup> | 1444 |  | 2238 |  |
| Transformation initiatives and related costs <sup>(6)</sup> | 2817 | 73 | 6082 | 73 |
| Restructuring <sup>(7)</sup> | 990 | 160 | 11096 | 3513 |
| Goodwill impairment | 597931 |  | 1059321 |  |
| Contingent consideration adjustments |  | 50 | 470 | 300 |
| ERP expense <sup>(8)</sup> | 499 | 3563 | 3683 | 7467 |
| Other <sup>(9)</sup> | 2676 | 1088 | 3202 | 1067 |
| **Adjusted EBITDA** | $**40620** | $**52954** | $**184228** | $**213164** |
| **Adjusted EBITDA margin (% of sales)** | **18.0%** | **22.4%** | **20.6%** | **23.1%** |

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(1)Net foreign currency transaction (gain) loss associated with the revaluation of foreign denominated intercompany loans and certain 3M agreements.

(2)Includes legal, accounting, tax and other related consulting costs associated with corporate transactions and capital structure initiatives.

(3)Includes costs associated with 3M transition agreements and related integration costs.

(4)Includes costs associated with the transitioning of the 3M transition contract manufacturing agreement and ramp-up costs associated with our sample collection product line.

(5)Duplicate costs associated with the startup of Petrifilm manufacturing.

(6)Includes consulting and other costs, including severance, associated with transformation initiatives.

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

(8)Expenses related to ERP implementation.

(9)Costs associated primarily with discontinued product lines and recording of contingency related accruals.

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**NEOGEN CORPORATION** 

**RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME** 

(In thousands)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended May 31,** | **Three Months Ended May 31,** | **Twelve Months Ended May 31,** | **Twelve Months Ended May 31,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Net loss** | $**(612196)** | $**(5415)** | $**(1092044)** | $**(9421)** |
| Amortization of acquisition-related intangibles | 23036 | 23328 | 92365 | 93013 |
| Share-based compensation | 4330 | 3939 | 17291 | 13768 |
| FX transaction (gain) loss on loan and other revaluation <sup>(1)</sup> | (308) | 732 | (499) | 2082 |
| Transaction costs <sup>(2)</sup> | 4093 | 237 | 5729 | 2597 |
| 3M integration costs <sup>(3)</sup> | 302 | 2713 | 5752 | 11643 |
| Sample collection transition and ramp up costs <sup>(4)</sup> | 10302 | 410 | 14978 | 1210 |
| Petrifilm duplicate startup costs <sup>(5)</sup> | 1444 |  | 2238 |  |
| Transformation initiatives and related costs <sup>(6)</sup> | 2817 | 73 | 6082 | 73 |
| Restructuring <sup>(7)</sup> | 990 | 160 | 11096 | 3513 |
| Goodwill impairment | 597931 |  | 1059321 |  |
| Contingent consideration adjustments |  | 50 | 470 | 300 |
| ERP expense <sup>(8)</sup> | 499 | 3563 | 3683 | 7467 |
| Other <sup>(9)</sup> | 2676 | 1088 | 3202 | 1067 |
| Estimated tax effect of above adjustments <sup>(10)</sup> | (24645) | (8514) | (58777) | (29960) |
| **Adjusted Net Income** | $**11271** | $**22364** | $**70887** | $**97352** |
| **Adjusted Earnings per Share** | $**0.05** | $**0.10** | $**0.33** | $**0.45** |

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(1)Net foreign currency transaction (gain) loss associated with the revaluation of foreign denominated intercompany loans and certain 3M agreements.

(2)Includes legal, accounting, tax and other related consulting costs associated with corporate transactions and capital structure initiatives.

(3)Includes costs associated with 3M transition agreements and related integration costs.

(4)Includes costs associated with the transitioning of the 3M transition contract manufacturing agreement and ramp-up costs associated with our sample collection product line.

(5)Duplicate costs associated with the startup of Petrifilm manufacturing.

(6)Includes consulting and other costs, including severance, associated with transformation initiatives.

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

(8)Expenses related to ERP implementation.

(9)Costs associated primarily with discontinued product lines and recording of contingency related accruals.

(10)Tax effect of adjustments is calculated using projected effective tax rates for each applicable item.

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**NEOGEN CORPORATION** 

**RECONCILIATION OF GROWTH TO CORE GROWTH**

(In thousands)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Q4 FY25** | **Q4 FY24** | **Growth** | **Foreign Currency** | **Acquisitions/Divestitures** | **Core Revenue Growth** |
| Food Safety | $161826 | $166906 | (3.0%) | (1.3%) | (0.4%) | (1.3%) |
| Animal Safety | 63633 | 69888 | (8.9)% | (0.2%) | (2.0%) | (6.7%) |
| **Total Neogen** | $**225459** | $**236794** | **(4.8)%** | **(1.0**<br>**%)** | **(0.9**<br>**%)** | **(2.9**<br>**%)** |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **FY25** | **FY24** | **Growth** | **Foreign Currency** | **Acquisitions/Divestitures** | **Core Revenue Growth** |
| Food Safety | $638140 | $655341 | (2.6%) | (3.6%) | (0.2%) | 1.2% |
| Animal Safety | 256521 | 268881 | (4.6%) | (0.1%) | (1.0%) | (3.5%) |
| **Total Neogen** | $**894661** | $**924222** | **(3.2**<br>**%)** | **(2.6**<br>**%)** | **(0.4**<br>**%)** | **(0.2**<br>**%)** |

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Source: Neogen Corporation

**Contact** 

Bill Waelke

(517) 372-9200

ir@neogen.com

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