|CONTACT: Richard R Current, Vice President & CFO, 517/372-9200|
LANSING, Mich., Aug. 15, 2002 - Neogen Corporation (Nasdaq: NEOG) announced today that it has resumed its Company common stock repurchase program. Neogen's Board of Directors has authorized the Company common stock repurchase of 1,000,000 shares.
"This is an opportunity to buy stock in a company with a long and outstanding record of growth for under 19 times reported earnings," said Richard Current, Neogen's chief financial officer. "We just reported another record year for revenues and earnings, and just as we look back on the shares we bought at $6.00, we will look back on these purchases as an opportune and wise use of a portion of our cash balances."
Neogen has repurchased 655,000 shares since its repurchase program began. As with shares already repurchased, additional shares will be acquired on the open market or in negotiated transactions, depending on market conditions and other factors. Accordingly, there is no guarantee as to the exact number of shares to be repurchased. Currently, there are about 6,100,000 outstanding shares of Company common stock.
Last month, Neogen announced that record quarterly revenues in its fourth quarter led the Company to an annual revenue increase of 18%, and net income of $0.62 per share for its 2002 fiscal year, which ended May 31. FY 2002 revenues were $41,097,000, compared to revenues of $34,895,000 in Neogen's previous fiscal year. Neogen continued its rapid escalation in operating income, increasing 29% in FY 2002 to $5,500,000, compared to FY 2001's $4,265,000.
Neogen Corporation develops and markets products and services dedicated to food and animal safety. The Company's Food Safety Division markets dehydrated culture media, and diagnostic test kits to detect foodborne bacteria, natural toxins, genetic modifications, food allergens, drug residues, plant diseases and sanitation concerns. Neogen's Animal Safety Division markets a complete line of diagnostics, veterinary instruments, veterinary pharmaceuticals and nutritional supplements.
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.