Neogen Corp (NEOG) 2022 Q4 法說會逐字稿

Good morning, and welcome to the Neogen Corporation Fourth Quarter and Full Year 2022 Conference Call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加 Neogen Corporation 2022 年第四季和全年電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Mr. John Adent, President and CEO.

現在我想將會議交給總裁兼執行長 John Adent 先生。

Good morning, and welcome to our regular quarterly conference call for investors and analysts. Today, we'll be reporting on the fourth quarter and the full 2022 fiscal year, which ended on May 31.

早安，歡迎參加我們為投資者和分析師舉辦的定期季度電話會議。今天，我們將報告第四季和截至 5 月 31 日的整個 2022 財年。

As usual, some of the statements today could be termed as forward-looking statements. These statements are subject to certain risks and uncertainties, and our actual results may differ from those that we discuss today. The risks associated with our business are covered in part in the company's Form 10-K as filed with the Securities and Exchange Commission.

像往常一樣，今天的一些聲明可以稱為前瞻性聲明。這些陳述存在一定的風險和不確定性，我們的實際結果可能與我們今天討論的結果有所不同。與我們業務相關的風險部分包含在公司向美國證券交易委員會提交的 10-K 表格中。

In addition to those of you joining us by live telephone, we also want to welcome those of you online. Following our prepared comments this morning, we'll address questions from participants who have joined this live conference.

除了透過現場電話加入我們之外，我們還希望透過線上方式歡迎你們。根據今天早上準備好的評論，我們將回答參加本次現場會議的與會者提出的問題。

I'm joined this morning by Steve Quinlan, our Chief Financial Officer, who will provide some additional details on our results for both the quarter and the full fiscal year. As we reported in our press release this morning, we're pleased to report record revenues of our 2022 fiscal year with an overall increase of 13% over the prior year. I'm incredibly proud of our entire Neogen team for all their hard work and their continued dedication to our mission to be the leading company in the development and marketing of solutions for animal and food safety. It hasn't been an easy year, but their enthusiasm and hard work every day inspire us as we work toward our goals.

今天早上，我們的財務長 Steve Quinlan 也加入了我的行列，他將提供有關我們本季和整個財年業績的更多詳細資訊。正如我們今天早上在新聞稿中報導的那樣，我們很高興地報告 2022 財年的收入創歷史新高，總體比上年增長 13%。我為我們整個 Neogen 團隊的辛勤工作和對我們成為動物和食品安全解決方案開發和行銷領先公司的使命的持續奉獻感到無比自豪。這不是輕鬆的一年，但他們的熱情和每天的辛勤工作激勵我們朝著目標努力。

The fourth quarter was a strong conclusion to a great fiscal year, reporting revenue growth of over 10% from the prior fiscal year. To achieve a fourth quarter with double-digit top and bottom line growth while preparing for the integration of the 3M business is a tremendous accomplishment and shows the strength of our exceptional team. The momentum from this quarter has helped propel us into our new fiscal year and toward the close of our 3M Food Safety transaction.

第四季為出色的財年畫上了圓滿的句號，營收比上一財年增長了 10% 以上。在為 3M 業務整合做準備的同時，第四季度實現了兩位數的頂線和底線成長，這是一項巨大的成就，也展現了我們卓越團隊的實力。本季度的勢頭幫助我們進入新的財政年度並接近 3M 食品安全交易的結束。

We were pleased to see gains in our Food Safety products this quarter with particular strength across our diagnostic testing portfolio. Our natural toxin test kits performed well within the market, particularly our aflatoxin, T-1, DON and fumonisin test kits. We're seeing grain supplies become more valuable, making natural toxin testing very important for grain suppliers around the world.

我們很高興看到本季我們的食品安全產品取得了進展，尤其是我們的診斷測試產品組合的優勢。我們的天然毒素檢測試劑盒在市場上表現良好，特別是我們的黃麴毒素、T-1、DON 和伏馬菌素檢測試劑盒。我們看到穀物供應變得越來越有價值，這使得天然毒素檢測對於世界各地的穀物供應商來說非常重要。

Our One Broth One Plate solution continued to lead growth within our Culture Media testing as more labs in the U.S. and U.K. adopted the product, which simplifies the classic microbiology testing for the detection of Listeria and Salmonella within the food and environmental samples.

隨著美國和英國越來越多的實驗室採用該產品，我們的一湯一板解決方案在我們的培養基測試中繼續引領增長，該產品簡化了食品和環境樣品中李斯特菌和沙門氏菌檢測的經典微生物學測試。

We also saw growth along our general sanitation product line as our AccuPoint Advanced next-generation handheld ATP sanitation monitoring system gained market share. The system, which we launched in May of 2021, quickly and effectively detects ATP as a measure of the cleanliness in a facility. This system connects to our Neogen Analytics platform, which helps customers manage their testing data and create streamlined processes, providing them immediate access to critical information within their environmental monitoring programs. This Software-as-a-Service, which connects to both our AccuPoint NG and ANSR systems help users implement sanitation monitoring systems that reduce risk and elevate food safety compliance. We see this software as an invaluable resource, and this has been validated by our customers as we've seen a 95% contract renewal rate among Neogen Analytics customers. Additionally, at sites where Neogen Analytics is activated, we've seen a 38% increase in sales of ancillary Neogen products.

隨著我們的 AccuPoint Advanced 新一代手持式 ATP 衛生監測系統獲得了市場份額，我們的一般健康產品線也出現了成長。該系統於 2021 年 5 月推出，可快速有效地檢測 ATP，作為設施清潔度的衡量標準。該系統連接到我們的 Neogen Analytics 平台，該平台可協助客戶管理其測試數據並創建簡化的流程，使他們能夠立即存取其環境監測計劃中的關鍵資訊。該軟體即服務連接到我們的 AccuPoint NG 和 ANSR 系統，可協助使用者實施衛生監控系統，從而降低風險並提高食品安全合規性。我們將此軟體視為寶貴的資源，而這一點已得到我們的客戶的驗證，因為我們看到 Neogen Analytics 客戶的合約續約率為 95%。此外，在啟動 Neogen Analytics 的站點，我們發現 Neogen 輔助產品的銷售量成長了 38%。

Our Animal Safety segment also had strong results for the quarter as we continue to see our veterinary instruments gain market share from competitors. We continue to drive impressive growth of the StandGuard insect product line, a testament to Neogen's ability to successfully integrate acquisitions into our existing business.

我們的動物安全部門在本季度也取得了強勁的業績，因為我們繼續看到我們的獸醫儀器從競爭對手那裡獲得了市場份額。我們繼續推動 StandGuard 昆蟲產品線的顯著成長，這證明了 Neogen 將收購成功整合到我們現有業務中的能力。

In our genomics business, we're pleased with our Genetic Veterinary Sciences' acquisition completed in December of 2021. The team out in Spokane just recently moved into a larger lab space, more than doubling the size and expanding their capabilities as our seventh global genomics facility and third North American facility. The lab has recently received its ISO 17025 accreditation, the highest quality standard in the world for testing and calibration laboratories. Overall, a very strong quarter to close out a very strong year.

在我們的基因組學業務中，我們對2021 年12 月完成的遺傳獸醫科學收購感到高興。能力，成為我們第七個全球基因組學公司工廠和第三個北美工廠。該實驗室最近獲得了 ISO 17025 認證，這是世界上測試和校準實驗室的最高品質標準。總體而言，這是一個非常強勁的季度，為非常強勁的一年畫下句點。

Now I'm going to turn it over to Steve to talk a little bit more about our numbers for the quarter and the year.

現在我將把它交給史蒂夫，讓他更多地談論我們本季和今年的數據。

Well, thank you, John, and good morning to everyone on the call today. As John indicated, fiscal 2022 was another solid year, and our team overcame a lot of headwinds to allow us to report the numbers we're sharing today. This morning, we issued a press release announcing the results of our fourth quarter and full year, which ended on May 31. As John mentioned, revenues for the quarter increased 10% to $140.1 million from $127.4 million in the prior year.

好吧，謝謝你，約翰，今天參加電話會議的每個人都早安。正如約翰所指出的那樣，2022 財年又是堅實的一年，我們的團隊克服了許多阻力，使我們能夠報告今天分享的數字。今天早上，我們發布了一份新聞稿，宣布了截至5 月31 日的第四季度和全年業績。達到1.401 億美元。

For the full fiscal year, revenues rose nearly 15% to $527.2 million from last year's $468.5 million. Net income for the quarter was $15 million or $0.14 a share compared to $15.8 million a year ago or $0.15 a share. These results included $5.7 million in 3M-related deal expenses for the quarter. Excluding these costs, our adjusted net income was a strong $19.1 million or $0.18 a share, an increase of 21% over last year.

整個財年的營收從去年的 4.685 億美元成長近 15% 至 5.272 億美元。本季淨利為 1,500 萬美元，即每股 0.14 美元，而去年同期淨利為 1,580 萬美元，即每股 0.15 美元。這些結果包括本季與 3M 相關的 570 萬美元交易費用。排除這些成本，我們調整後的淨利潤高達 1,910 萬美元，即每股 0.18 美元，比去年增長 21%。

Full year net income for fiscal '22 was $48.3 million or $0.45 a share. Excluding the $25.6 million of 3M deal expenses, our adjusted net income was $67.9 million an increase of 12% over last fiscal year's $60.9 million or $0.57 a share. As John noted, tremendous top and bottom line performance achieved under difficult operating conditions.

22 財年全年淨利為 4,830 萬美元，即每股 0.45 美元。不包括 2,560 萬美元的 3M 交易費用，我們調整後的淨利潤為 6,790 萬美元，比上一財年的 6,090 萬美元或每股 0.57 美元成長 12%。 正如約翰所指出的那樣，在困難的營運條件下取得了巨大的收入和利潤績效。

On a constant currency basis, revenues were approximately $1.6 million lower in the fourth quarter than the same period last year as the U.S. dollar strengthened against the pound, the euro and the Australian dollar. For the full year, we had about $844,000 of benefit from currency fluctuations compared to the prior year.

以固定匯率計算，由於美元兌英鎊、歐元和澳元走強，第四季營收比去年同期減少約 160 萬美元。與前一年相比，我們全年從貨幣波動中獲得的收益約為 844,000 美元。

Sales from recent acquisitions also contributed to our revenue increase in fiscal '22. For the fourth quarter, organic sales increased 6%. The increase was 8% on a constant currency basis. And for the full year, our organic sales rose 9%. Overall revenues in the Food Safety segment increased 5% in the fourth quarter and 11% for the year. The fourth quarter was negatively impacted by lockdowns in Shanghai, which shut down our Chinese operation in April and May.

最近收購的銷售也為我們 22 財年的營收成長做出了貢獻。第四季有機銷售額成長 6%。以固定匯率計算，增幅為 8%。全年，我們的有機銷售額成長了 9%。食品安全部門的總收入第四季成長了 5%，全年成長了 11%。第四季受到上海封鎖的負面影響，上海於四月和五月關閉了我們的中國業務。

Additionally, we've noticed some belt-tightening from our customers as inflationary pressure and economic concerns over the Russian-Ukraine war are affecting testing quantities and order patterns. Our data shows we're gaining new business and retaining customers, but there is some softness in our markets.

此外，我們注意到，由於通貨膨脹壓力和對俄羅斯-烏克蘭戰爭的經濟擔憂正在影響測試數量和訂單模式，我們的客戶有些勒緊褲腰帶。我們的數據顯示，我們正在獲得新業務並留住客戶，但我們的市場有些疲軟。

Highlights in the Food Safety segment for the full year include a 12% increase in sales of our general sanitation line driven by higher sales of our new AccuPoint reader, which was launched late in our 2021 fiscal year. Sales of our allergen test kits increased 9% and sales of natural toxin test kits rose 6% as we started to see increased business related to Brazil's corn harvest in the fourth quarter. You might remember that a drought decimated last year's harvest, which led to very low sales of our aflatoxin test kits in our first and second fiscal quarters this year.

全年食品安全領域的亮點包括，由於我們在 2021 財年末推出的新型 AccuPoint 閱讀器銷量增加，我們的普通衛生產品線銷售額增長了 12%。由於我們開始看到第四季度與巴西玉米收成相關的業務增加，我們的過敏原測試套件的銷售額增長了 9%，天然毒素測試套件的銷售額增長了 6%。您可能還記得，去年的收成因乾旱而減產，導致今年第一和第二財季黃麴毒素檢測試劑盒的銷售量非常低。

Our Listeria Right Now product continues to gain market share with 25% growth. And as John mentioned, the U.K. has had great success with their new laboratory workflow called One Broth One Plate. This contributed towards a 16% increase this year.

我們的 Listeria Right Now 產品繼續以 25% 的成長率獲得市場份額。正如約翰所提到的，英國的新實驗室工作流程「一湯一盤」取得了巨大成功。這促成了今年 16% 的成長。

I'm pleased that sales of our Soleris product line, which detects microbial organisms such as yeast and mold increased 4% for the year despite difficult prior year comparisons, driven by high sales of our popular new reader. We continue to face competitive pressures with our lower-margin drug residue product line as those sales declined 33% in fiscal '22.

我很高興我們的 Soleris 產品線（用於檢測酵母和黴菌等微生物）今年的銷售額增長了 4%，儘管與去年相比比較困難，但受我們受歡迎的新閱讀器高銷量的推動。我們繼續面臨利潤較低的藥渣產品線的競爭壓力，因為這些產品的銷售額在 22 財年下降了 33%。

Megazyme sales increased 6% in the fourth quarter on a global basis. This business, which was acquired in December of 2020, has now been fully integrated into our operations and has met our expectations in fiscal 2022.

Megazyme 在第四季全球銷售額成長了 6%。該業務於 2020 年 12 月收購，現已完全融入我們的運營，並達到了我們 2022 財年的預期。

Looking elsewhere internationally, sales were up 14% despite the challenges presented by China's lockdowns and the conflict in the Ukraine. Sales in the U.K. increased 13% for the year, led by a 25% increase in sales of cleaners and disinfectants primarily due to new business won in the U.K. and ongoing strong sales to Asia to address African swine fever.

放眼國際其他地區，儘管面臨中國封鎖和烏克蘭衝突帶來的挑戰，銷售額仍增加了 14%。英國的銷售額今年增長了 13%，其中清潔劑和消毒劑的銷售額增長了 25%，這主要是由於在英國贏得了新業務以及為解決非洲豬瘟而對亞洲的持續強勁銷售。

Revenues in our Brazilian Food Safety operations were flat for the full year as this business was negatively affected by a decline in dairy drug residue kit sales and the impact of the greatly reduced corn crop in the first half of the fiscal year. We were pleased with their fourth quarter results in which sales increased 18% in reals.

我們的巴西食品安全業務全年收入持平，因為該業務受到乳製品藥物殘留套件銷售下降以及本財年上半年玉米產量大幅減產的負面影響。我們對他們第四季度的業績感到滿意，銷售額實際成長了 18%。

Sales at our Mexican operation increased 9% for the quarter in pesos. Our China operation ended the year flat due to the COVID shutdowns in April and May. Revenues for the Animal Safety segment rose 15% for the quarter and 14% for the full year. Excluding contributions from recent acquisitions, organic sales increased 10% in the fourth quarter and 12% for the year. The increase in Animal Safety revenues for the year was led by a 35% increase in sales of veterinary instruments, particularly our line of detectable needles and syringes as we gained new business and took market share from a competitor.

以比索計算，本季我們墨西哥業務的銷售額成長了 9%。由於 4 月和 5 月因新冠肺炎疫情而停工，我們的中國業務全年表現平平。動物安全部門的營收本季成長 15%，全年成長 14%。剔除近期收購的貢獻，第四季有機銷售額成長 10%，全年成長 12%。今年動物安全收入的成長得益於獸醫器械銷售額增長 35%，尤其是我們的可檢測針頭和注射器系列，因為我們獲得了新業務並從競爭對手手中奪取了市場份額。

Our Insecticides line increased 32% with higher insect pressure driving demand and market share gains into the farm and home channels. Our Animal Care line of products increased 16% led by strength in small animal supplements and our biologics line, which includes our higher-margin vaccine to prevent botulism B in horses. Cleaner and disinfectant sales sold through this segment increased 6%, while our line of rodent control products was down 4% for the year due to difficult comparisons from a strong fiscal 2021.

我們的殺蟲劑產品線成長了 32%，昆蟲壓力的增加推動了農場和家庭通路的需求和市場份額的成長。我們的動物照護產品系列成長了 16%，這得益於小動物補充劑和生物製品系列的實力，其中包括我們用於預防馬匹肉毒桿菌 B 型肉毒桿菌中毒的更高利潤的疫苗。透過該部門銷售的清潔劑和消毒劑銷售額增長了 6%，而由於與強勁的 2021 財年進行比較，我們的囓齒動物控制產品系列今年下降了 4%。

Genomics revenues reported through our Animal Safety segment were up 11% in fiscal 2022, partially aided by the December acquisition of Genetic Veterinary Sciences located in Spokane, Washington. Sales through our Australia lab were also strong with large volume increases in beef and sheep testing. On a worldwide basis, genomics revenues increased 11%.

透過我們的動物安全部門報告的基因組學收入在 2022 財年增長了 11%，部分得益於 12 月收購位於華盛頓州斯波坎的遺傳獸醫科學公司。我們澳洲實驗室的銷售也很強勁，牛肉和綿羊檢測量大幅增加。在全球範圍內，基因組學收入增加了 11%。

Gross margins were 46.4% for the quarter compared to 45.3% last year as we benefited from mix shifts to higher-margin products in both segments. For the year, gross margins were 46.1% compared to 45.9% in the prior year. I'm really proud of the team for this improvement in gross margin, since we were negatively impacted throughout much of fiscal '22 by significantly increased freight costs on container shipments, inflationary raw material cost increases and labor shortages. The commercial team has done an outstanding job of offsetting this with price increases where possible.

本季的毛利率為 46.4%，而去年為 45.3%，這得益於我們向兩個細分市場的高利潤產品的組合轉變。今年毛利率為 46.1%，上年度為 45.9%。我為團隊毛利率的提高感到自豪，因為我們在 22 財年的大部分時間裡都受到了貨櫃運輸運費大幅增加、通貨膨脹的原材料成本增加和勞動力短缺的負面影響。商業團隊做得非常出色，在可能的情況下透過提價來抵消這一影響。

We did start to see a decline in container shipment costs in the fourth quarter, although costs are still much higher than 12 to 18 months ago.

我們確實在第四季度開始看到貨櫃運輸成本下降，儘管成本仍遠高於 12 至 18 個月前。

Overall operating expenses were up 26% for the fourth quarter and 31% for the full year. However, both of these percentages include our spending on professional fees related to the 3M transaction. Excluding these costs, operating expenses rose 10% for the quarter, in line with the revenue increase and rose 14% for the full year.

第四季整體營運費用成長 26%，全年成長 31%。然而，這兩個百分比都包括我們與 3M 交易相關的專業費用支出。排除這些成本，本季營運費用成長 10%，與營收成長一致，全年營運費用成長 14%。

Sales and marketing expense increased 4% in the fourth quarter and was up 15% for the year, with higher spending on travel and other customer-facing activities as COVID restrictions eased in fiscal '22. Excluding the 3M related professional fees, general and administrative expenses rose 25% for the quarter and 12% for the full year, primarily due to new headcount, increases in bonus accruals due to company performance, higher stock-based compensation expenses and incremental expenses, including noncash amortization from recent acquisitions.

第四季銷售和行銷費用成長 4%，全年成長 15%，隨著 22 財年新冠疫情限制的放鬆，旅行和其他面向客戶的活動支出增加。不包括 3M 相關專業費用，本季總務及管理費用增加 25%，全年成長 12%，主要是新員工數量、公司業績帶來的應計獎金增加、股票薪酬費用和增量費用增加，包括最近收購的非現金攤提。

Fourth quarter expense was also affected by some timing issues as prior year fourth quarter expense was unusually low, benefiting from economic tax credits recorded late in fiscal 2021 and at our Lincoln, Nebraska genomics facility.

第四季的支出也受到一些時間問題的影響，因為去年第四季的支出異常低，受益於 2021 財年末以及我們內布拉斯加州林肯基因組設施記錄的經濟稅收抵免。

Research and development expenses decreased 6% in the quarter as the prior year included significant spend on development costs for our next-gen AccuPoint reader. For the full year, R&D expense increased 5% to $17 million.

本季的研發費用下降了 6%，因為去年包括我們下一代 AccuPoint 讀卡機的大量開發成本。全年研發費用成長 5%，達到 1,700 萬美元。

Excluding the costs related to the 3M transaction, adjusted operating income for the fourth quarter at $23.7 million was up 17% over the prior year quarter due to the previously discussed increase in gross margin. As a percent of revenues, adjusted operating income was 16.9% compared to 15.9% in the prior year. And for the full year, our adjusted operating income was $84.2 million or 16% of sales compared to $74.2 million or 15.8% of sales in the prior year. Our 2022 adjusted operating income represented a 14% increase over fiscal 2021.

排除與 3M 交易相關的成本，由於先前討論的毛利率成長，第四季度調整後營業收入為 2,370 萬美元，比去年同期成長 17%。調整後營業收入佔收入的百分比為 16.9%，而前一年為 15.9%。全年調整後營業收入為 8,420 萬美元，佔銷售額的 16%，而前一年為 7,420 萬美元，佔銷售額的 15.8%。我們 2022 年調整後的營業收入比 2021 財年成長了 14%。

I want to point out that this quarter, we began to report our results on an EBITDA and adjusted EBITDA basis as well. These non-GAAP metrics, we believe, will help investors better understand our operating results going forward as unusual charges such as our deal expenses, and noncash amortization charges relating to intangible assets acquired in the transaction are added back to our GAAP earnings. These numbers should be used for informational purposes only. They supplement but do not replace our GAAP reporting.

我想指出的是，本季度，我們開始以 EBITDA 和調整後 EBITDA 為基礎報告業績。我們相信，這些非公認會計準則指標將幫助投資者更好地了解我們未來的經營業績，因為我們的交易費用以及與交易中收購的無形資產相關的非現金攤銷費用等異常費用將被添加回我們的公認會計準則收益中。這些數字僅供參考。它們補充但不能取代我們的 GAAP 報告。

For the year, adjusted EBITDA was $115.4 million versus $104.2 million last year, an 11% increase. Other income for the year was $1.6 million compared to $1.1 million in the prior year. We recorded a $484,000 increase in interest income in the fourth quarter as interest rates are rising.

今年調整後 EBITDA 為 1.154 億美元，較去年的 1.042 億美元成長 11%。本年度其他收入為 160 萬美元，而前一年為 110 萬美元。隨著利率上升，我們第四季的利息收入增加了 484,000 美元。

Our effective tax rate for the fourth quarter was 20.9%. This compares to 21.8% recorded in last year's fourth quarter. For the full year, the effective rate increased from 19.1% in fiscal '21 to 19.8% this year due to lower benefit from stock option activity in the second half of the year. We also recorded a $600,000 charge in our first quarter relating to a tax increase in the U.K.

我們第四季的有效稅率為 20.9%。相比之下，去年第四季的成長率為 21.8%。就全年而言，由於下半年股票選擇權活動的收益較低，有效利率從 21 財年的 19.1% 上升至今年的 19.8%。第一季我們也記錄了與英國增稅相關的 60 萬美元費用。

We generated $67.6 million in cash from operations for the full year versus $81 million in the prior fiscal year and invested about $25 million in property and equipment and another $38 million in acquisitions during the year.

我們全年從營運中獲得了 6,760 萬美元的現金，而上一財年為 8,100 萬美元，並在這一年投資了約 2,500 萬美元的財產和設備以及另外 3,800 萬美元的收購。

Inventory balances increased $21.6 million in fiscal '22. Part of the increase is due to raw material cost increases and some of this was timing as we received a number of large shipments late in the year. But we also made a business decision to increase inventory levels in certain areas of the business in fiscal '22 to combat supply chain issues and ensure we had product available for our customers.

22 財年庫存餘額增加了 2,160 萬美元。價格上漲的部分原因是原物料成本上漲，部分原因是我們在今年底收到了許多大宗貨物。但我們也做出了一項業務決定，即在 22 財年提高某些業務領域的庫存水平，以解決供應鏈問題並確保我們為客戶提供產品。

Our accounts receivable balances rose by 9% over levels at last year-end, in line with our revenue increase. Our days sales outstanding improved to 62 days at May 31 compared to 66 days a year ago. This has been a busy year for the Neogen team as the organization has integrated recent acquisitions and also spent considerable time preparing for the integration of the 3M Food Safety business.

我們的應收帳款餘額比去年年底增加了 9%，與我們的收入成長一致。截至 5 月 31 日，我們的銷售天數從一年前的 66 天增加到 62 天。對於 Neogen 團隊來說，今年是忙碌的一年，因為該組織整合了最近的收購，並花費了大量時間準備整合 3M 食品安全業務。

Despite this, it's evident from our results that the team still made it a priority to focus on our current business, minimizing the effects of inflation, supply chain and ongoing COVID issues around the world. Going into fiscal '23, we're preparing to welcome the 3M Food Safety team to Neogen soon, and I'm excited to see what our combined company will achieve in the next year.

儘管如此，從我們的結果可以明顯看出，團隊仍然優先關注我們目前的業務，最大限度地減少通貨膨脹、供應鏈和世界各地持續存在的新冠問題的影響。進入 23 財年，我們正準備歡迎 3M 食品安全團隊很快來到 Neogen，我很高興看到我們合併後的公司在明年將取得什麼成就。

Now I'll turn it back over to John.

現在我會把它轉回給約翰。

Thanks, Steve. This fiscal year was a year of growth for Neogen in many ways. The acquisition of GVS, Delf and CAPInnoVet to the announcement of the 3M Food Safety merger which will strengthen our position in helping our customers protect the world's food supply. We recognize that there are still challenges in front of us, particularly with inflation as we've seen some customers begin to tighten their belts and continued supply chain issues, but I am confident in our team and our business.

謝謝，史蒂夫。本財年是 Neogen 在許多方面成長的一年。收購 GVS、Delf 和 CAPInnoVet，以及宣布 3M 食品安全合併，這將加強我們在幫助客戶保護全球食品供應方面的地位。我們認識到我們面前仍然存在挑戰，特別是在通貨膨脹方面，因為我們看到一些客戶開始勒緊褲腰帶，供應鏈問題持續存在，但我對我們的團隊和業務充滿信心。

We also have so much to look forward to as we go through our first quarter and our new fiscal year. The biggest, of course, is the closing of the 3M Food Safety transaction. Once the deal closes, we'll be one combined company, well positioned to accelerate growth and drive significant additional value for our customers, employees and shareholders. Together, we will have an enhanced geographic footprint and product range, allowing us to better serve our global customer base. We're excited to begin building our new company together post-close. We are fully entrenched in the integration planning process and we've taken major steps toward the closing of this transaction, which we anticipate will occur in the third quarter of the 2022 calendar year.

在我們度過第一季和新財年時，我們還有很多值得期待的事情。當然，最重要的是 3M 食品安全交易的完成。交易完成後，我們將成為一家合併後的公司，能夠加速成長並為我們的客戶、員工和股東帶來巨大的附加價值。我們將共同擴大地理覆蓋範圍和產品範圍，從而更好地服務全球客戶群。我們很高興在交易結束後開始共同建立我們的新公司。我們已全面落實整合規劃流程，並已為完成此交易採取了重大步驟，預計該交易將在 2022 年第三季完成。

Over the last quarter, we shared employment details of the 3M Food Safety employees, beginning the process of welcoming the team at Neogen. The conveying team members are in the process of reviewing employment information and completing the process. We're very pleased with the collaboration of the teams and the spirit of partnership as we become one company.

上個季度，我們分享了 3M 食品安全員工的就業詳細信息，開始歡迎 Neogen 團隊的流程。輸送團隊成員正在審核就業資訊並完成流程。當我們成為一家公司時，我們對團隊的協作和合作精神感到非常滿意。

Our Neogen and 3M teams kicked off the next stage of transition planning with a meeting at 3M's Minnesota headquarters in late June, where we finalized workflows and details for day 1. Together, we discussed our progress and mapped out each company's responsibility during the transition period. We identified any gaps that we work together to identify the solutions.

我們的Neogen 和3M 團隊於6 月下旬在3M 明尼蘇達州總部舉行會議，啟動了下一階段的過渡計劃，會上我們敲定了第一天的工作流程和細節。了過渡期間每個公司的責任。我們找出了任何差距，並共同努力找出解決方案。

Following the sessions in St. Paul with our U.S. and Canadian teams, we extended the day 1 readiness sessions to include the international teams. Overall, our teams are feeling very confident and ready to become one company.

在聖保羅與我們的美國和加拿大團隊舉行會議之後，我們延長了第一天的準備會議，以將國際團隊也納入。總體而言，我們的團隊非常有信心並準備好成為一家公司。

On July 6, we also announced that we acquired Thai-Neo Biotech, our longtime distributor of Food Safety products in Bangkok, Thailand. Through this acquisition, we established a physical office in the region, which will aid us as we integrate our businesses there. This acquisition will be an asset to the combined company post-close and we're excited to work together to expand our genomic and aquaculture solutions in the region.

7 月 6 日，我們也宣布收購 Thai-Neo Biotech，這是我們在泰國曼穀食品安全產品的長期經銷商。透過此次收購，我們在該地區建立了實體辦事處，這將有助於我們整合當地業務。此次收購將成為合併後公司的資產，我們很高興能夠共同努力擴大我們在該地區的基因組和水產養殖解決方案。

We also ceremonially broke out last week on the $70 million expansion of our Food Safety manufacturing facility here in Lansing, Michigan. This 170,000 square foot expansion is centered around the construction of a 3-story dedicated manufacturing building for our Food Safety products, which will eventually include our Petrifilm indicator organism testing line of products. We are pleased to increase our employee footprint in Lansing, adding up to another 100 jobs in the area when fully operational. This project is a big step forward for Neogen. And together with 3M's Food Safety transaction, we will enter the new era of Neogen's growth.

上週，我們也隆重宣布斥資 7,000 萬美元擴建密西根州蘭辛的食品安全生產工廠。此次擴建佔地 170,000 平方英尺，主要是為我們的食品安全產品建造一座 3 層樓的專用製造大樓，其中最終將包括我們的 Petrifilm 指示微生物測試產品線。我們很高興增加蘭辛的員工數量，全面運作後該地區將再增加 100 個工作機會。這個項目對 Neogen 來說是向前邁出的一大步。與3M的食品安全交易一起，我們將進入Neogen成長的新時代。

I want to once again reiterate how incredibly proud I am of the team for all that they've accomplished this year. To achieve record results while working on the integration plans of the 3M Food Safety business is truly incredible performance. It's been a tremendous undertaking for the entire team that they've stepped up and taken on the challenge. We continue to work toward closing sometime in the third quarter of the 2022 calendar year, and we look forward to the talented 3M team joining Neogen post close.

我想再次重申，我對團隊今年所取得的成就感到無比自豪。在製定 3M 食品安全業務整合計劃的同時取得創紀錄的成果，這確實是令人難以置信的表現。對於整個團隊來說，他們挺身而出並接受挑戰是一項艱鉅的任務。我們將繼續努力在 2022 年第三季的某個時間完成交易，我們期待才華橫溢的 3M 團隊在交易完成後加入 Neogen。

Now I'll open the call for any questions.

現在我將打開電話詢問任何問題。

(Operator Instructions) The first question comes from Andrew Brackmann with William Blair.

（操作員說明）第一個問題來自安德魯·布拉克曼和威廉·布萊爾。

Glad to be back on these calls with you. Maybe to start here, just as we sort of near deal closing on the 3M side, can you just sort of talk to us about how your expectations for that pro forma model may have changed since you initially gave them late last year? I know that you've got a little bit of a higher interest rate on the debt that was -- versus what was initially sort of talked about and inflation has certainly been different than we expected. So just curious how you're thinking about revenue growth, synergies and earnings accretion now that we have a little bit more information.

很高興能再次與您通話。也許從這裡開始，就在我們與3M 方面的交易接近完成之際，您能否與我們談談自去年年底您最初給出該預計模型以來，您對該預計模型的期望可能發生了怎樣的變化？我知道債務利率比最初討論的要高一些，而且通貨膨脹肯定與我們的預期不同。既然我們掌握了更多信息，我只是好奇您如何看待收入增長、協同效應和收益增長。

Thanks, Andrew. Good question. The bulk of the assumptions remain intact. I mean we're very comfortable with our growth assumptions, our synergy assumptions. As you said, interest rates have moved up in the period between the signing and today, and we are going to be paying more interest than we had assumed in the December pro formas. Our results have come in a little stronger than I think were in those initial models. And I know that 3M's numbers have remained pretty static. There were some Russian revenues' inflation has hit on the COGS line. And then, obviously, currency has impacted both companies. But the basic thesis is still intact.

謝謝，安德魯。好問題。大部分假設保持不變。我的意思是，我們對我們的成長假設、我們的協同假設非常滿意。正如您所說，從簽署協議到今天，利率已經上升，我們將支付比 12 月預計的利息更多的利息。我們的結果比我認為的最初模型要強一些。我知道 3M 的數字一直保持相當穩定。俄羅斯的一些收入通膨已經影響銷貨成本線。然後，顯然，貨幣對兩家公司都產生了影響。但基本論文仍然完好無損。

John, do you have anything on that?

約翰，你有這方面的資料嗎？

Yes. No, I think Steve is exactly right. From a deal standpoint, I think we feel really comfortable where we are at the pro formas. There was some minor changes that Steve just went through. But the more we get into it, the more excited we are and the more opportunities we're actually seeing from a synergy capture standpoint. So we're just ready to get this thing done and get going.

是的。不，我認為史蒂夫是完全正確的。從交易的角度來看，我認為我們在準備考試中感到非常舒服。史蒂夫剛剛經歷了一些細微的變化。但我們越深入，我們就越興奮，從協同捕獲的角度來看，我們實際上看到的機會就越多。所以我們已經準備好完成這件事並開始行動。

Okay. I appreciate that color. And then maybe you called out some of the integration activities that are under way. But I guess just broadly speaking, John, can you just sort of talk maybe about some of the moves you've made on the Neogen sort of stand-alone business over the last couple of years to really bolster the middle part of that organization and how that might help you as you sort of bring in 3M to the fold here?

好的。我很欣賞那種顏色。然後也許您提到了一些正在進行的整合活動。但我想，從廣義上講，約翰，您能否談談過去幾年您在 Neogen 這類獨立業務上採取的一些舉措，以真正加強該組織的中間部分，當您將3M 引入此處時，這對您有何幫助？

Yes. Andrew, absolutely. And I think you can see the impact of just kind of the way that we've restructured -- I shouldn't say restructured. The way that we continue to modify the business as we grew. And to be able to grow the core business while you have a team preparing for an integration the size of 3M and the performance we had, I thought it was outstanding because everybody had an excuse of why they didn't have to perform this quarter, and nobody did. Everybody just went out and ran the business.

是的。安德魯，絕對是。我認為你可以看到我們重組方式的影響——我不應該說重組。隨著我們的成長，我們不斷改變業務的方式。當你有一個團隊準備進行 3M 規模的整合以及我們所擁有的績效時，能夠發展核心業務，我認為這是非常出色的，因為每個人都有藉口解釋為什麼他們不必在本季度執行任務，但沒有人這樣做。每個人都出去經營生意。

So this started 5 years ago when we started developing our personal development plans for all of our employees and beginning our succession planning and identifying key individuals and then doing all of our leadership training. So we have really been working hard to build strength throughout the organization, whether that is at the supervisor level, the manager level, the director or the vice president level. And when we identified high-growth people, we trained them, promoted them. Just this year, we had 80 internal promotions, which I'm really proud of in Neogen.

所以這一切始於 5 年前，當時我們開始為所有員工製定個人發展計劃，並開始我們的繼任計劃和確定關鍵個人，然後進行所有領導力培訓。因此，我們確實一直在努力增強整個組織的實力，無論是主管級別、經理級別、總監還是副總裁級別。當我們發現高成長人才時，我們會對他們進行培訓、晉升。就在今年，我們進行了 80 次內部晉升，我對 Neogen 感到非常自豪。

So we continue to fill our own pipeline with our employees. And what that allows us to do is to take on some complex challenges and continue to grow, right? So it's not just 3M we've been working on. We integrated GVS. We integrated Delf. We integrated CAPInnoVet. And we continue to grow the core business. So I'm really, really proud of the team. And that's the strength of the group we have, the dedication they have and their hard work, and it's just -- it's been really fun to watch as a leader.

因此，我們繼續用我們的員工來填補我們自己的管道。這讓我們能夠接受一些複雜的挑戰並繼續成長，對吧？因此，我們一直致力於的不僅僅是 3M。我們整合了 GVS。我們整合了德爾夫。我們整合了 CAPInnoVet。我們繼續發展核心業務。 所以我真的為這個團隊感到非常自豪。這就是我們團隊的力量，他們的奉獻精神和辛勤工作，而且作為領導者，觀看比賽真的很有趣。

Okay. And then lastly, Steve, I think you mentioned some belt tightening from some testing customers out there. Can you just maybe be a little bit more specific on what you're seeing there and maybe some of the things that are in more of your control to maybe overcome some of those headwinds?

好的。最後，史蒂夫，我想你提到了一些測試客戶的勒緊褲腰帶。您能否更具體地介紹您在那裡看到的情況，以及您更能控制的一些事情，以克服其中的一些不利因素？

Yes, I can talk to that, too, Andrew. So yes, we're seeing -- I mean, with an inflationary environments and every customer's costs going up and even our costs going up to the customers, we've seen that they are being thoughtful in the amount of testing they're doing. And the way you overcome that as you grow the business, you find new customers or you sell more to the customers you have. And I think one of the things I pointed out was our -- the success in our Neogen Analytics platform. I was very, very pleased that when subscription renewals came up this year, we had a 95% retention rate, which just shows customers really valued us.

是的，我也可以談談，安德魯。所以，是的，我們看到——我的意思是，隨著通貨膨脹的環境和每個客戶的成本上升，甚至我們的成本也上升到客戶身上，我們看到他們在做的測試量上是深思熟慮的。隨著業務的發展，你會發現新客戶，或向現有客戶銷售更多產品，從而克服這個問題。我認為我指出的一件事是我們的 Neogen Analytics 平台的成功。我非常非常高興，今年續訂時，我們的保留率達到了 95%，這表明客戶真的很重視我們。

And when they are on Neogen Analytics, they buy 38% more product than what they were purchasing before they put in Neogen Analytics because we're showing them the value of the products throughout their whole food safety system. So it's continuing to find ways to grow. And I think this is what gives me confidence and gets me excited, right? COVID hits, Neogen grows. Supply chain hits, Neogen grows. Inflation hits, Neogen grows. That's who we are, and that's what we do. And so that's why we're excited to continue along this path and keep growing the organization.

當他們使用 Neogen Analytics 時，他們購買的產品比使用 Neogen Analytics 之前購買的產品多 38%，因為我們向他們展示了產品在整個食品安全系統中的價值。因此，它正在繼續尋找增長的方法。我認為這給了我信心並讓我興奮，對吧？新冠疫情來襲，Neogen 不斷成長。供應鏈受到衝擊，Neogen 不斷發展。通貨膨脹來襲，Neogen 成長。這就是我們是誰，這就是我們所做的。這就是為什麼我們很高興繼續沿著這條道路前進並不斷發展組織。

(Operator Instructions) Our next question comes from David Westenberg with Piper Sandler.

（操作員說明）我們的下一個問題來自 David Westenberg 和 Piper Sandler。

This is John on for David. First of all, I just want to follow up on Andrew's questions. We have gotten some questions from investors looking for an update on 3M and your revenue growth projections. Could you just talk about how the revenue growth numbers are -- how you think that they're tracking given the guidance that was given when the deal was announced? And how we should think about the organic growth and that compared with Neogen's existing Food Safety business, which I believe saw about 3% organic growth in the quarter?

這是約翰為大衛辯護。首先，我想跟進安德魯的問題。我們收到了投資者的一些問題，希望了解 3M 的最新情況以及您的收入成長預測。您能否談談收入成長數字如何？我們應該如何考慮有機成長以及與 Neogen 現有的食品安全業務相比，我認為該業務在本季度實現了約 3% 的有機成長？

Yes. Thanks, John. I think the organic growth number was 5.2%. We'll look that up. And that had -- on a constant currency basis, it was 5.2%. So yes, so I think what we're seeing is that based on the pro formas, they're really coming in right where they thought they were going to come in. And that was one of the thesis item of doing this deal was that we grow faster than they do, and we think that we can accelerate their growth with our leadership. And that's not a knock on them. It's just that it is a small business within a large company, and you saw today Food Safety was buried in health care, which 3M really wasn't interested in and now you see even the bigger unit is now a business they're divesting.

是的。謝謝，約翰。我認為有機成長率是 5.2%。我們會查一下。以固定匯率計算，這一數字為 5.2%。所以是的，所以我認為我們看到的是，根據預計，他們確實進入了他們認為他們會進入的地方。 ，憑藉我們的領導力，我們可以加速他們的成長。這並不是對他們的打擊。只是它只是大公司中的一個小業務，而你今天看到食品安全被埋沒在醫療保健中，而3M 確實對醫療保健不感興趣，現在你看到甚至更大的部門現在也是他們正在剝離的業務。

So with that, we think there's tremendous opportunities for us to take that very highly skilled team, dedicated team and give them some direction and some support and resources to help them meet the goals that they have, and that's to grow that business on a double-digit basis, which is kind of our historical standard.

因此，我們認為我們有巨大的機會來採用技術精湛的團隊、敬業的團隊，並為他們提供一些指導、一些支持和資源，以幫助他們實現他們的目標，那就是讓業務雙倍增長-數字基礎，這是我們的歷史標準。

Great. Could you also give any comment on the product bag in China and India and progress towards getting towards cash flow positive post acquisitions in those geographies?

偉大的。您能否對中國和印度的產品包以及這些地區收購後實現正現金流的進展發表評論？

John, can you repeat that? Can you repeat that, John? Product?

約翰，你能再說一次嗎？你能再說一次嗎，約翰？ 產品？

Yes, yes, product mix in China and India.

是的，是的，中國和印度的產品組合。

Okay, okay, okay. Yes, you said product bag, I was thinking, man, maybe we lost a new product. Yes. So product mix, what we're seeing is with the African swine fever -- when African swine fever was really moving, we saw our product mix shift towards cleaners and disinfectants and we saw a decrease in genomics. It's going to flip flop now because it's starting to normalize. We saw an increase in genomics. And I thought that group did exceptionally well, considering that we were pretty much locked out of the lab for 2 months because of the lockdowns.

好吧，好吧，好吧。是的，你說的是產品包，我在想，夥計，也許我們失去了一個新產品。是的。因此，產品組合，我們看到的是非洲豬瘟——當非洲豬瘟真正蔓延時，我們看到我們的產品組合轉向清潔劑和消毒劑，我們看到基因組的減少。現在它會發生翻轉，因為它開始正常化。我們看到基因組學的成長。考慮到由於封鎖我們幾乎被鎖在實驗室之外兩個月，我認為這個小組做得非常好。

So we're really pleased with how that team has performed and we see a tremendous backlog thereof, I think, opportunity to continue to grow this year as that if we can get the COVID lockdowns to end in that business to normalize.

因此，我們對該團隊的表現感到非常滿意，我認為，我們看到了巨大的積壓，如果我們能夠結束該業務的新冠疫情封鎖，那麼今年就有繼續成長的機會。

Steve can talk to you a little bit about the financial side of those businesses.

史蒂夫可以和你談談這些企業的財務面。

Yes. And as John said, I mean, we got hit with the COVID lockdowns in China, but that business has been performing very well for us for the last couple of years, and we're -- we are north of breakeven significantly in China. India, I think one of the milestones we had with India this year that we're proud of is they broke even for the full year and have had some very strong growth and budgeted for further growth next year. So both businesses, we're very excited about their future.

是的。正如約翰所說，我的意思是，我們在中國受到了新冠疫情封鎖的打擊，但過去幾年我們的業務表現非常好，而且我們在中國的盈虧平衡點明顯偏高。印度，我認為今年我們與印度合作的里程碑之一是我們感到自豪的，他們全年實現收支平衡，並且實現了非常強勁的成長，並為明年的進一步成長制定了預算。因此，我們對這兩家企業的未來感到非常興奮。

Yes. And as you know, once you pass the breakeven then you really like the accelerated growth because you've done the hard work, you've put in the infrastructure and those were early markets for us. And India is still in the early -- kind of early phase growth and I view China as the same way. So we see those as significant markets for us in the future.

是的。如你所知，一旦你實現了盈虧平衡，你就會真正喜歡加速成長，因為你已經完成了艱苦的工作，你已經投入了基礎設施，而這些對我們來說是早期市場。印度仍處於早期成長階段，我認為中國也是如此。因此，我們認為這些是我們未來的重要市場。

Great. And lastly, before I jump back in the queue, could you talk about your views on bolt-on acquisitions going forward? Like are you thinking more along the lines of lower multiple companies and things along the lines of distribution, maybe cleaners and disinfectants or maybe something more aggressive?

偉大的。最後，在我回到隊列之前，您能談談您對未來補強收購的看法嗎？就像您是否更多地考慮低倍數公司和分銷方面的事情，也許是清潔劑和消毒劑，或者也許是更積極的東西？

I think we have -- so the answer to that is yes, yes and yes. But really, what we're looking at is continuing to grow in the spaces that we know we are very strong and where the markets have growing markets, and we understand the technology. So if you think about what we did this year, right? So we did the cleaner and disinfectant with Delf. We did canine genomics with GVS. We did canine anti-parasiticides with CAPInnoVet. So you see we like the canine space, right, because it grows faster than the production animal space. It's a little -- it's got -- as we consider more of the emotional side of the business versus the economical side of the business, so we like that space.

我認為我們已經──所以答案是肯定的、是的、是的。但實際上，我們所關注的是在我們知道自己非常強大、市場不斷成長、而且我們了解科技的領域繼續成長。所以如果你想想我們今年做了什麼，對吧？所以我們和德爾夫一起做了清潔劑和消毒劑。我們使用 GVS 進行了犬類基因組學研究。我們使用 CAPInnoVet 進行犬類抗寄生蟲藥。所以你看，我們喜歡犬類空間，對吧，因為它比生產動物空間增長得更快。這是一點——確實如此——因為我們更多地考慮業務的情感方面而不是業務的經濟方面，所以我們喜歡這個空間。

We're going to continue to drive kind of those pillars in those areas. And like we talked about, the business is diverse enough that the European team did the Delta acquisition. They did the integration. They did a fantastic job. The genomics team did the GVS. They did it on their own. They did a fantastic job. And so while Food Safety and [corporate] was working very, very heavily on 3M during that time period, we were able to execute those others and integrate them very well because we had other pieces of the business that are more isolated. So we're going to continue that. And I think with our new size and scale, generally, we're going to look for -- we will continue the bolt-on strategy or it makes sense, but we also will have the capability to do bigger deals. And that's something that we'll continue to do. And we feel that we've got the right team, and we've got a track record of execution, and we're going to keep doing it.

我們將繼續在這些領域推動這些支柱的發展。正如我們所說，該業務足夠多元化，以至於歐洲團隊完成了達美航空的收購。他們進行了整合。他們做得非常出色。基因組學團隊進行了 GVS。他們是自己做的。他們做得非常出色。因此，雖然在那段時間食品安全和[企業]在 3M 上投入了大量精力，但我們能夠很好地執行其他業務並將它們整合起來，因為我們還有其他更孤立的業務部分。所以我們將繼續這樣做。我認為，隨著我們新的規模和規模，一般來說，我們將繼續採取補充策略，否則這是有意義的，但我們也將有能力進行更大的交易。這是我們將繼續做的事情。我們覺得我們擁有合適的團隊，我們擁有良好的執行記錄，我們將繼續這樣做。

This concludes our question-and-answer session. I would now like to turn the conference back over to Mr. John Adent for any closing remarks.

我們的問答環節到此結束。現在我想將會議轉回約翰·阿登特先生發表閉幕詞。

Yes. Thank you, Ron. Again, I'd just like to reiterate, I'm really proud of the team because great performance for the quarter, great performance for the year and really did 3x the work what we normally do as preparing for the 3M Food Safety acquisition. And it shows that we can continue to execute on large deals and stay focused on our core business, which is the key. We are focused intensely on our customers.

是的。謝謝你，羅恩。我想再次重申，我真的為團隊感到自豪，因為本季度的出色表現，今年的出色表現，並且確實比我們通常為 3M 食品安全收購做準備的工作量多了 3 倍。這表明我們可以繼續執行大型交易並專注於我們的核心業務，這是關鍵。我們非常關注我們的客戶。

It's an exciting time at Neogen. We're celebrating our 40th year of operation this year. And really, the things that we're doing are going to consider to set up. They're really going to allow us and set us up for 40 more years of consecutive growth. So we're excited. We're ready to go, and we thank you for your support.

這是 Neogen 激動人心的時刻。今年我們將慶祝成立 40 週年。事實上，我們正​​在做的事情將考慮建立。他們確實將使我們能夠實現 40 年以上的連續成長。所以我們很興奮。我們已準備就緒，感謝您的支持。

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。