Revenues were $128,244,000, a 10% increase compared to the previous year's third quarter revenues of $116,709,000.
This quarter marked the 119th of the past 125 quarters that Neogen has reported revenue increases compared to the same period in the prior year.
Current year-to-date revenues were $387,066,000, up 14% compared to revenues of $341,034,000 for the same period a year ago.
Net income for the third quarter was $5,443,000, or $0.05 per share, adversely impacted by $10.6 million of professional fees incurred in connection with Neogen's plan to combine 3M's Food Safety business with the company's existing operations, which was announced on December 14, 2021.
Excluding the 3M deal-related costs, net income for the quarter would have been $13,600,000, or $0.13 per share, compared to $13,377,000, or $0.12 per share, in the previous year's third quarter.
Current year-to-date net income was $33,348,000, or $0.31 per share; excluding $19.9 million in year to date 3M Food Safety deal costs, net income for the year to date would have been $48,807,000, or $0.45 per share, compared to $45,122,000, or $0.42 per share, for the same period a year ago.
For each comparative period above, earnings per share amounts have been adjusted to reflect the company's 2-for-1 stock split on June 4, 2021.
Gross margins were 44.8% of sales in the third quarter of the fiscal year, compared to 46.1% recorded in the same period a year ago.
Ongoing supply chain issues and the current inflationary environment continued to adversely impact raw material costs and freight expenses, which rose $2.2 million during the quarter.
Additionally, a product mix shift toward Animal Safety products, which generally have lower gross margins, negatively impacted gross margins for the period.
Excluding the 3M Food Safety related deal costs, operating expenses rose by 6% during the third quarter, primarily due to increased compensation and personnel-related costs, an uptick in travel and other customer facing activities, increased shipping costs and the impact of amortization expense from recent acquisitions. ■
Modified arctic air combined with a moisture-laden area of low pressure along the Gulf Coast will continue to allow for a broad area of winter weather impacts from the Lower Mississippi Valley to the Southeast today into early Saturday morning.