Neogen makes deleveraging top priority but unable to predict timing

By Devika Patel

Knoxville, Tenn., March 30 – Neogen Corp. is focused on deleveraging as a top priority, but the timing of how long it will take to get the company’s leverage down is unpredictable.

“Leverage is a little bit elevated on a net basis,” president and chief executive officer John Adent said on the company’s third quarter ended Feb. 28 earnings conference call on Thursday.

“I would say that, aside from funding our integration CapEx, deleveraging remains a top priority for us, but we can’t always predict the timing of everything,” he said.

Revenue was $218.3 million, a 70% increase over the prior-year quarter.

Adjusted EBITDA for the quarter was $51.3 million.

As of Feb. 28, the company had total cash and investments of $183.2 million and $900 million of total outstanding debt, as well as committed borrowing headroom of $150 million.

Neogen is a Lansing, Mich.-based developer and marketer of solutions dedicated to food and animal safety.

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