WESTBROOK, Maine, July 22, 2011 /PRNewswire/ -- IDEXX Laboratories,
Inc. (NASDAQ: IDXX), today reported that revenues for the second
quarter of 2011 increased 13% to $317.9
million, from $281.5 million
for the second quarter of 2010. Organic revenue growth, as defined
below, was 8%. Earnings per diluted share ("EPS") for the quarter
ended June 30, 2011 increased 34% to
$0.83, compared to $0.62 for the same period in the prior year.
(Logo:
http://photos.prnewswire.com/prnh/20110602/NE13041LOGO )
Organic revenue growth excludes the impact of changes in foreign
currency exchange rates, which contributed 5% to revenue growth,
and revenue from acquisitions subsequent to March 31, 2010, which contributed less than 1% to
revenue growth in the second quarter of 2011.
"Our second quarter results exceeded our expectations," stated
Jonathan Ayers, Chairman and Chief
Executive Officer. "Our 8% organic revenue growth, in an economic
environment that remains challenging, demonstrates our continued
success in bringing innovative products and services to our
veterinary and other customers, as well as strong commercial
execution in markets around the world."
"Our results reflect continued momentum in advancing our
strategic and operational initiatives aimed at helping
veterinarians practice better medicine and run more efficient
practices. Market response to our ProCyte Dx® hematology analyzer
continues to be very positive in domestic and international markets
with 284 placements in the second quarter, including our first
placement of a ProCyte Dx® instrument in the Asia Pacific region. ProCyte Dx® provides
reference lab quality test results in just two minutes and is a key
enabler of our real-time care strategy, working seamlessly with our
Catalyst Dx® chemistry analyzer. I was also pleased with the
performance of our global reference laboratory and consulting
services business where we achieved 10% organic revenue growth for
the second consecutive quarter."
Revenue Performance
Please refer to the table below entitled "Revenues and Revenue
Growth Analysis by Product and Service Categories" in conjunction
with the following discussion.
Companion Animal Group. Companion Animal Group ("CAG")
revenues for the second quarter of 2011 were $259.7 million compared to $232.3 million for the second quarter of 2010.
Changes in foreign currency exchange rates contributed 4% to
revenue growth. Organic revenue growth of 7% was due primarily to
performance in our reference laboratory diagnostic and consulting
services business and in our instrument and consumables product
lines. In the reference lab business, revenues increased due to
higher sales volume due primarily to the acquisition of new
customers and to an increase in sales prices. The revenue increase
in our instruments and consumables business was largely the result
of higher sales volume of consumables used with our IDEXX VetLab®
instruments, primarily sales of consumables used with our Catalyst
Dx® instrument, and higher sales volume of ProCyte Dx®, our new
hematology analyzer introduced in the third quarter of 2010.
Water. Water revenues for the second quarter of
2011 were $21.5 million compared to
$19.4 million for the second quarter
of 2010. Changes in foreign currency exchange rates contributed 5%
to revenue growth. Organic revenue growth of 6% was due primarily
to higher Colilert® product sales volume driven by new account
acquisitions, partly offset by lower average unit sales prices of
this product.
Livestock and Poultry Diagnostics. Livestock and
Poultry Diagnostics ("LPD") revenues for the second quarter of 2011
were $25.4 million compared to
$19.2 million for the second quarter
of 2010. Changes in foreign currency exchange rates contributed 11%
to revenue growth. Organic revenue growth of 21% was primarily the
result of higher sales volumes of certain bovine tests, especially
in Germany where we have won
several government tenders in connection with a country-wide
eradication program for a virus impacting beef and dairy production
yields, partly offset by lower average unit sales prices due to
increasing competitive pressures.
Additional Operating Results for the Second Quarter
Gross profit for the second quarter of 2011 increased
$24.7 million, or 17%, to
$174.0 million from $149.3 million for the second quarter of 2010. As
a percentage of total revenue, gross profit increased to 55% from
53% as a result of reduced overall manufacturing costs, primarily
those associated with our IDEXX VetLab® instruments, and higher
relative sales of higher margin products. These favorable impacts
were partly offset by hedging losses in the second quarter of 2011
compared to hedging gains in the second quarter of 2010.
Research and development ("R&D") expense for the second
quarter of 2011 was $18.6 million, or
6% of revenue, compared to $17.2
million, or 6% of revenue for the second quarter of 2010.
The increase in R&D expense was due primarily to increased
personnel-related costs.
Selling, general and administrative ("SG&A") expense for the
second quarter of 2011 was $84.1
million, or 26% of revenue, compared to $77.2 million, or 27% of revenue, for the second
quarter of 2010. The increase in SG&A expense resulted
primarily from the net unfavorable impact of changes in foreign
currency exchange rates and higher personnel-related costs.
Supplementary Analysis of Results
The accompanying financial tables provide more information
concerning our revenue and other operating results for the three
and six months ended June 30,
2011.
Outlook for full year 2011
The Company provides the following updated guidance for the full
year 2011. This guidance reflects an assumption that the value of
the U.S. dollar relative to the other currencies will remain at its
current level for the balance of 2011. Fluctuations in foreign
currency exchange rates from current levels could have a
significant positive or negative impact on our actual results of
operations in 2011.
- Revenues are expected to be $1.205 to
$1.215 billion, which represents reported revenue growth of
9 to 10% and organic revenue growth of 7 to 8%. This outlook is
unchanged from our previous guidance provided in April of this
year.
- EPS are expected to be in the range of $2.68 to $2.73, compared to our previous guidance
of $2.66 to $2.71. This increase in
guidance reflects business performance in the second quarter that
exceeded our expectations.
- Our total capital expenditure plan for 2011 is approximately
$55 million.
- Free cash flow is expected to be approximately 115% of net
income.(1)
(1) Free cash flow is a non-U.S. GAAP measure. It indicates the
cash generated from operations and tax benefits attributable to
stock option exercises and vesting of restricted stock units,
reduced by investments in fixed assets. We feel free cash flow is a
useful measure because it indicates the cash the operations of the
business are generating after appropriate reinvestment for
recurring investments in fixed assets that are required to operate
the business. We believe this is a common financial measure
useful to further evaluate the results of operations. With respect
to this particular forward-looking projection, the Company is
unable to provide a quantitative reconciliation at this time as the
inputs to the measurement are difficult to predict and estimate and
are primarily dependent on future events.
Conference Call and Webcast Information
IDEXX Laboratories will be hosting a conference call today at
9:00 a.m. (eastern) to discuss its
second quarter results and management's outlook. To participate in
the conference call, dial 1-612-234-9960 or 1-800-230-1074 and
reference confirmation code 210465. An audio replay will be
available through July 29, 2011 by
dialing 1-320-365-3844 and referencing replay code 210465.
The call will also be available via live or archived Webcast on
the IDEXX Laboratories' web site at www.idexx.com.
About IDEXX Laboratories, Inc.
IDEXX Laboratories, Inc. is a leader in pet healthcare
innovation, serving practicing veterinarians around the world with
a broad range of diagnostic and information technology-based
products and services. IDEXX products enhance the ability of
veterinarians to provide advanced medical care, improve staff
efficiency and build more economically successful practices. IDEXX
is also a worldwide leader in providing diagnostic tests and
information for livestock and poultry and tests for the quality and
safety of water and milk. Headquartered in Maine, IDEXX Laboratories employs more than
4,800 people and offers products to customers in over 100
countries.
Note Regarding Forward-Looking Statements
This press release contains statements about the Company's
business prospects and estimates of the Company's financial results
for future periods that are forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by the use of words
such as "expects," "may," "anticipates," "intends," "would,"
"will," "plans," "believes," "estimates," "should," and similar
words and expressions. These statements are based on management's
expectations of future events as of the date of this press release,
and the Company assumes no obligation to update any forward-looking
statements as a result of new information or future events or
developments. Actual results could differ materially from
management's expectations. Factors that could cause or contribute
to such differences include the following: the Company's ability to
develop, manufacture, introduce and market new products and
enhancements to existing products; the Company's ability to
achieve economies of scale in its worldwide network of
laboratories; the impact of a weak economy on demand
for the Company's products and services; the effectiveness of the
Company's sales and marketing activities; the Company's ability to
identify acquisition opportunities, complete acquisitions and
integrate acquired businesses; disruptions, shortages or pricing
changes that affect the Company's purchases of products and
materials from third parties, including from sole source suppliers;
the Company's ability to manufacture complex biologic products; the
effect of government regulation on the Company's business,
including government decisions about whether and when to approve
the Company's products and decisions regarding labeling,
manufacturing and marketing products; the Company's ability to
obtain patent and other intellectual property protection for its
products, successfully enforce its intellectual property rights and
defend itself against third party claims against the Company; the
impact of distributor purchasing decisions on sales of the
Company's products that are sold through distribution; the impact
of competition, technological change, and veterinary hospital
consolidation on the markets for the Company's products; changes or
trends in veterinary medicine that affect the rate of use of the
Company's products and services by veterinarians; the impact of the
Company's inexperience in the human point-of-care market; the
effects of operations outside the U.S., including from
currency fluctuations, different regulatory, political and economic
conditions, and different market conditions; the effects of
interruptions to the Company's operations due to natural disasters
or system failures; the loss of key employees; class action
litigation due to stock price volatility; the effect on the
Company's stock price if quarterly or annual operations results do
not meet expectations of market analysts or investors in future
periods; and potential exposures related to our worldwide provision
for income taxes. A further description of these and other factors
can be found in the Company's Annual Report on Form 10-K for the
year ended December 31, 2010,
and quarterly report on Form 10-Q for the quarter ended
March 31, 2011, in the section
captioned "Risk Factors."
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
|
|
|
|
|
|
|
Consolidated Statement of
Operations
|
|
|
|
|
|
|
|
Amounts in thousands except per
share data (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
June
30,
|
|
June
30,
|
June
30,
|
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
Revenue:
|
Revenue
|
|
$
317,862
|
$
281,482
|
|
$
610,534
|
$
550,007
|
|
Expenses and
|
|
|
|
|
|
|
|
|
Income:
|
Cost of revenue
|
|
143,829
|
132,198
|
|
281,576
|
258,362
|
|
|
Gross profit
|
|
174,033
|
149,284
|
|
328,958
|
291,645
|
|
|
Sales and marketing
|
|
50,974
|
44,167
|
|
101,959
|
88,583
|
|
|
General and
administrative
|
|
33,140
|
33,076
|
|
65,736
|
65,884
|
|
|
Research and
development
|
|
18,621
|
17,206
|
|
36,433
|
33,915
|
|
|
Income from
operations
|
|
71,298
|
54,835
|
|
124,830
|
103,263
|
|
|
Interest expense, net
|
|
363
|
551
|
|
722
|
863
|
|
|
Income before provision for
income taxes
|
|
70,935
|
54,284
|
|
124,108
|
102,400
|
|
|
Provision for income
taxes
|
|
22,281
|
17,087
|
|
38,848
|
32,175
|
|
Net Income:
|
Net income
|
|
48,654
|
37,197
|
|
85,260
|
70,225
|
|
|
Less: Noncontrolling interest in
subsidiary's
|
|
|
|
|
|
|
|
|
(losses)
earnings
|
|
(3)
|
4
|
|
(9)
|
6
|
|
|
Net income attributable to
stockholders
|
$
48,657
|
$
37,193
|
|
$
85,269
|
$
70,219
|
|
|
Earnings per share:
Basic
|
|
$
0.85
|
$
0.64
|
|
$
1.49
|
$
1.21
|
|
|
Earnings per share:
Diluted
|
|
$
0.83
|
$
0.62
|
|
$
1.45
|
$
1.17
|
|
|
Shares outstanding:
Basic
|
|
57,276
|
57,747
|
|
57,366
|
57,890
|
|
|
Shares outstanding:
Diluted
|
|
58,727
|
59,646
|
|
58,934
|
59,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
|
|
|
|
|
|
|
Selected Operating
Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
June
30,
|
|
June
30,
|
June
30,
|
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
Operating
|
Gross profit
|
|
54.8%
|
53.0%
|
|
53.9%
|
53.0%
|
|
Ratios
(as a
|
Sales, marketing, general
and
|
|
|
|
|
|
|
|
percentage of
|
administrative
expense
|
|
26.5%
|
27.4%
|
|
27.5%
|
28.1%
|
|
revenue):
|
Research and development
expense
|
|
5.9%
|
6.1%
|
|
6.0%
|
6.2%
|
|
|
Income from
operations(1)
|
|
22.4%
|
19.5%
|
|
20.5%
|
18.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
International revenue
(in thousands)
|
|
$
137,585
|
$
113,701
|
|
$
260,155
|
$
222,360
|
|
Revenue:
|
International revenue as
percentage of
|
|
|
|
|
|
|
|
|
total revenue
|
|
43.3%
|
40.4%
|
|
42.6%
|
40.4%
|
|
|
|
|
|
|
|
|
|
|
(1) The sum of individual items
may not equal the total due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
|
|
|
|
|
|
|
Segment
Information
|
|
|
|
|
|
|
|
Amounts in thousands
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
June
30,
|
|
June
30,
|
June
30,
|
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
Revenue:
|
CAG
|
|
$
259,734
|
$
232,320
|
|
$
500,323
|
$
453,737
|
|
|
Water
|
|
21,510
|
19,448
|
|
40,475
|
37,312
|
|
|
LPD
|
|
25,367
|
19,160
|
|
49,306
|
39,101
|
|
|
Other
|
|
11,251
|
10,554
|
|
20,430
|
19,857
|
|
|
Total
|
|
$
317,862
|
$
281,482
|
|
$
610,534
|
$
550,007
|
|
|
|
|
|
|
|
|
|
|
Gross Profit:
|
CAG
|
|
$
138,332
|
$
120,125
|
|
$
261,683
|
$
233,868
|
|
|
Water
|
|
12,968
|
12,328
|
|
24,359
|
23,903
|
|
|
LPD
|
|
17,335
|
13,275
|
|
33,882
|
26,483
|
|
|
Other
|
|
4,742
|
4,610
|
|
8,484
|
8,983
|
|
|
Unallocated
|
|
656
|
(1,054)
|
|
550
|
(1,592)
|
|
|
Total
|
|
$
174,033
|
$
149,284
|
|
$
328,958
|
$
291,645
|
|
|
|
|
|
|
|
|
|
|
Income from
|
|
|
|
|
|
|
|
|
Operations:
|
CAG
|
|
$
58,270
|
$
47,140
|
|
$
101,242
|
$
87,962
|
|
|
Water
|
|
8,401
|
8,150
|
|
15,348
|
15,662
|
|
|
LPD
|
|
7,176
|
4,549
|
|
14,326
|
9,127
|
|
|
Other
|
|
309
|
638
|
|
(241)
|
1,188
|
|
|
Unallocated
|
|
(2,858)
|
(5,642)
|
|
(5,845)
|
(10,676)
|
|
|
Total
|
|
$
71,298
|
$
54,835
|
|
$
124,830
|
$
103,263
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
(as a percentage
|
|
|
|
|
|
|
|
|
of revenue):
|
CAG
|
|
53.3%
|
51.7%
|
|
52.3%
|
51.5%
|
|
|
Water
|
|
60.3%
|
63.4%
|
|
60.2%
|
64.1%
|
|
|
LPD
|
|
68.3%
|
69.3%
|
|
68.7%
|
67.7%
|
|
|
Other
|
|
42.2%
|
43.7%
|
|
41.5%
|
45.2%
|
|
|
Total
|
|
54.8%
|
53.0%
|
|
53.9%
|
53.0%
|
|
|
|
|
|
|
|
|
|
|
Income from
|
|
|
|
|
|
|
|
|
Operations
|
|
|
|
|
|
|
|
|
(as a percentage
|
|
|
|
|
|
|
|
|
of
revenue):
|
CAG
|
|
22.4%
|
20.3%
|
|
20.2%
|
19.4%
|
|
|
Water
|
|
39.1%
|
41.9%
|
|
37.9%
|
42.0%
|
|
|
LPD
|
|
28.3%
|
23.7%
|
|
29.1%
|
23.3%
|
|
|
Other
|
|
2.8%
|
6.1%
|
|
(1.2%)
|
6.0%
|
|
|
Total
|
|
22.4%
|
19.5%
|
|
20.5%
|
18.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
|
Revenues and Revenue Growth
Analysis by Product and Service Categories
|
|
Amounts in thousands
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Net Revenue
|
June
30,
2011
|
|
|
June
30,
2010
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency
(1)
|
|
Percentage
Change
from
Acquisitions
(2)
|
|
Organic
Growth(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG
|
$
|
259,734
|
|
$
|
232,320
|
|
$
|
27,414
|
|
11.8
|
%
|
|
4.3
|
%
|
|
0.1
|
%
|
|
7.4
|
%
|
|
Water
|
|
21,510
|
|
|
19,448
|
|
|
2,062
|
|
10.6
|
%
|
|
4.7
|
%
|
|
-
|
|
|
5.9
|
%
|
|
LPD
|
|
25,367
|
|
|
19,160
|
|
|
6,207
|
|
32.4
|
%
|
|
11.1
|
%
|
|
-
|
|
|
21.3
|
%
|
|
Other
|
|
11,251
|
|
|
10,554
|
|
|
697
|
|
6.6
|
%
|
|
3.1
|
%
|
|
-
|
|
|
3.5
|
%
|
|
Total
|
$
|
317,862
|
|
$
|
281,482
|
|
$
|
36,380
|
|
12.9
|
%
|
|
4.8
|
%
|
|
-
|
|
|
8.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Net CAG Revenue
|
June
30,
2011
|
|
|
June
30,
2010
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency
(1)
|
|
Percentage
Change
from
Acquisitions
(2)
|
|
Organic
Growth(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments and
consumables
|
$
|
98,603
|
|
$
|
86,455
|
|
$
|
12,148
|
|
14.1%
|
|
|
5.2%
|
|
|
-
|
|
|
8.9%
|
|
|
Rapid assay products
|
|
44,193
|
|
|
40,481
|
|
|
3,712
|
|
9.2%
|
|
|
2.3%
|
|
|
-
|
|
|
6.9%
|
|
|
Reference laboratory diagnostic
and consulting services
|
|
99,087
|
|
|
86,048
|
|
|
13,039
|
|
15.2%
|
|
|
5.3%
|
|
|
0.1%
|
|
|
9.8%
|
|
|
Practice management systems and
digital radiography
|
|
17,851
|
|
|
19,336
|
|
|
(1,485)
|
|
(7.7%)
|
|
|
0.5%
|
|
|
-
|
|
|
(8.2%)
|
|
|
Net CAG revenue
|
$
|
259,734
|
|
$
|
232,320
|
|
$
|
27,414
|
|
11.8%
|
|
|
4.3%
|
|
|
0.1%
|
|
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The percentage change from
currency is a non-U.S. GAAP measure. It represents the percentage
change in revenue resulting from the difference between the average
exchange rates during the three months ended June 30, 2011 and the
same period of the prior year applied to foreign currency
denominated revenues for the three months ended June 30,
2011.
(2) Represents the percentage
change in revenue during the three months ended June 30, 2011
compared to the three months ended June 30, 2010 attributed to
acquisitions subsequent to March 31, 2010.
(3) Organic revenue growth is a
non-U.S. GAAP measure and represents the percentage change in
revenue during the three months ended June 30, 2011 compared to the
three months ended June 30, 2010 net of acquisitions and the effect
of changes in foreign currency exchange rates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
|
Revenues and Revenue Growth
Analysis by Product and Service Categories
|
|
Amounts in thousands
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Net Revenue
|
June
30,
2011
|
|
|
June
30,
2010
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency
(1)
|
|
Percentage
Change
from
Acquisitions
(2)
|
|
Organic
Growth(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG
|
$
|
500,323
|
|
$
|
453,737
|
|
$
|
46,586
|
|
10.3
|
%
|
|
2.8
|
%
|
|
0.1
|
%
|
|
7.4
|
%
|
|
Water
|
|
40,475
|
|
|
37,312
|
|
|
3,163
|
|
8.5
|
%
|
|
3.2
|
%
|
|
-
|
|
|
5.3
|
%
|
|
LPD
|
|
49,306
|
|
|
39,101
|
|
|
10,205
|
|
26.1
|
%
|
|
5.5
|
%
|
|
-
|
|
|
20.6
|
%
|
|
Other
|
|
20,430
|
|
|
19,857
|
|
|
573
|
|
2.9
|
%
|
|
2.2
|
%
|
|
-
|
|
|
0.7
|
%
|
|
Total
|
$
|
610,534
|
|
$
|
550,007
|
|
$
|
60,527
|
|
11.0
|
%
|
|
3.1
|
%
|
|
-
|
|
|
7.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Net CAG Revenue
|
June
30,
2011
|
|
|
June
30,
2010
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency
(1)
|
|
Percentage
Change
from
Acquisitions
(2)
|
|
Organic
Growth(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments and
consumables
|
$
|
192,490
|
|
$
|
169,837
|
|
$
|
22,653
|
|
13.3%
|
|
|
3.4%
|
|
|
-
|
|
|
9.9%
|
|
|
Rapid assay products
|
|
82,810
|
|
|
79,924
|
|
|
2,886
|
|
3.6%
|
|
|
1.4%
|
|
|
-
|
|
|
2.2%
|
|
|
Reference laboratory diagnostic
and consulting services
|
|
188,215
|
|
|
165,888
|
|
|
22,327
|
|
13.5%
|
|
|
3.5%
|
|
|
0.1%
|
|
|
9.9%
|
|
|
Practice management systems and
digital radiography
|
|
36,808
|
|
|
38,088
|
|
|
(1,280)
|
|
(3.4%)
|
|
|
0.5%
|
|
|
-
|
|
|
(3.9%)
|
|
|
Net CAG revenue
|
$
|
500,323
|
|
$
|
453,737
|
|
$
|
46,586
|
|
10.3%
|
|
|
2.8%
|
|
|
0.1%
|
|
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The percentage change from
currency is a non-U.S. GAAP measure. It represents the percentage
change in revenue resulting from the difference between the average
exchange rates during the six months ended June 30, 2011 and the
same period of the prior year applied to foreign currency
denominated revenues for the six months ended June 30,
2011.
(2) Represents the percentage
change in revenue during the six months ended June 30, 2011
compared to the six months ended June 30, 2010 attributed to
acquisitions subsequent to December 31, 2009.
(3) Organic revenue growth is a
non-U.S. GAAP measure and represents the percentage change in
revenue during the six months ended June 30, 2011 compared to the
six months ended June 30, 2010 net of acquisitions and the effect
of changes in foreign currency exchange rates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
|
|
|
|
|
|
|
Consolidated Balance
Sheet
|
|
|
|
|
|
|
|
Amounts in thousands
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
December
31,
|
|
|
|
|
|
|
|
2011
|
2010
|
|
Assets:
|
Current Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
159,398
|
$
156,915
|
|
|
Accounts receivable,
net
|
|
|
|
|
149,314
|
120,080
|
|
|
Inventories
|
|
|
|
|
133,934
|
127,885
|
|
|
Other current assets
|
|
|
|
|
50,925
|
55,711
|
|
|
Total current
assets
|
|
|
|
|
493,571
|
460,591
|
|
|
Property and equipment,
net
|
|
|
|
|
210,163
|
201,725
|
|
|
Other long-term assets,
net
|
|
|
|
|
246,841
|
234,828
|
|
|
Total assets
|
|
|
|
|
$
950,575
|
$
897,144
|
|
Liabilities and
|
|
|
|
|
|
|
|
|
Stockholders'
|
|
|
|
|
|
|
|
|
Equity:
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
29,888
|
$
22,669
|
|
|
Accrued liabilities
|
|
|
|
|
121,898
|
118,598
|
|
|
Debt
|
|
|
|
|
133,438
|
129,862
|
|
|
Deferred revenue
|
|
|
|
|
12,913
|
13,983
|
|
|
Total current
liabilities
|
|
|
|
|
298,137
|
285,112
|
|
|
Long-term debt, net of current
portion
|
|
|
|
|
2,966
|
3,418
|
|
|
Other long-term
liabilities
|
|
|
|
|
40,661
|
34,333
|
|
|
Total long-term
liabilities
|
|
|
|
|
43,627
|
37,751
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
608,774
|
574,235
|
|
|
Noncontrolling
interest
|
|
|
|
37
|
46
|
|
|
Total equity
|
|
|
|
608,811
|
574,281
|
|
|
Total liabilities and
stockholders' equity
|
|
|
|
$
950,575
|
$
897,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
|
|
|
|
|
|
|
Selected Balance Sheet
Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
December
31,
|
|
September
30,
|
June
30,
|
|
|
|
2011
|
|
2011
|
2010
|
|
2010
|
2010
|
|
Selected
|
|
|
|
|
|
|
|
|
|
Balance Sheet
|
Days sales
outstanding(1)
|
41.2
|
|
40.2
|
38.7
|
|
41.9
|
41.8
|
|
Information:
|
Inventory turns(2)
|
1.7
|
|
1.8
|
1.8
|
|
1.7
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
(1) Days sales outstanding
represents the average of the accounts receivable balances at the
beginning and end of each quarter divided by revenue for that
quarter, the result of which is then multiplied by 91.25
days.
|
|
(2) Inventory turns represents
inventory-related cost of product sales for the 12 months preceding
each quarter-end divided by the inventory balance at the end of the
quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
|
|
|
|
|
|
|
Consolidated Statement of Cash
Flows
|
|
|
|
|
|
|
|
Amounts in thousands
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
30,
|
June
30,
|
|
|
|
|
|
|
|
2011
|
2010
|
|
Operating:
|
Cash Flows from Operating
Activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
85,260
|
$
70,225
|
|
|
Non-cash charges
|
|
|
|
|
34,316
|
31,089
|
|
|
Changes in current assets and
liabilities
|
|
|
(20,412)
|
(16,857)
|
|
|
Tax benefit from exercises of
stock options
and vesting of restricted stock
units
|
|
(10,854)
|
(9,372)
|
|
|
Net cash provided by operating
activities
|
|
|
|
|
88,310
|
75,085
|
|
Investing:
|
Cash Flows from Investing
Activities:
|
|
|
|
|
|
|
|
|
Purchase of property and
equipment
|
|
|
|
|
(26,173)
|
(17,437)
|
|
|
Proceeds from disposition of
pharmaceutical product lines
|
|
|
3,000
|
-
|
|
|
Proceeds from sale of property
and equipment
|
|
|
|
218
|
64
|
|
|
Acquisitions of intangible
assets
|
|
|
-
|
(144)
|
|
|
Net cash used by investing
activities
|
|
|
|
(22,955)
|
(17,517)
|
|
Financing:
|
Cash Flows from Financing
Activities:
|
|
|
|
|
|
|
|
|
Borrowings on revolving credit
facilities, net
|
|
|
3,486
|
15,099
|
|
|
Payment of other notes
payable
|
|
|
|
|
(425)
|
(400)
|
|
|
Purchase of treasury
stock
|
|
|
|
|
(98,419)
|
(83,724)
|
|
|
Proceeds from the exercise of
stock options and employee
stock purchase plans
|
|
19,367
|
16,446
|
|
|
Tax benefit from exercises of
stock options and vesting of
restricted stock
units
|
|
10,854
|
9,372
|
|
|
Net used by financing
activities
|
|
|
|
(65,137)
|
(43,207)
|
|
|
Net effect of changes in
exchange rates on cash
|
|
|
|
|
2,265
|
(3,114)
|
|
|
Net increase in cash and cash
equivalents
|
|
|
|
|
2,483
|
11,247
|
|
|
Cash and cash equivalents,
beginning of period
|
|
|
|
156,915
|
106,728
|
|
|
Cash and cash equivalents, end
of period
|
|
|
|
|
$
159,398
|
$
117,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
|
|
|
|
|
Amounts in thousands
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
30,
|
June
30,
|
|
|
|
|
|
|
|
2011
|
2010
|
|
Free Cash
|
|
|
|
|
|
|
|
|
Flow:
|
Net cash provided by operating
activities
|
|
|
|
|
$
88,310
|
$
75,085
|
|
|
Financing cash flows
attributable to tax benefits from exercise of stock
options
|
|
|
|
|
|
and vesting of restricted
stock units
|
|
|
|
|
10,854
|
9,372
|
|
|
Purchase of property and
equipment
|
|
|
|
|
(26,173)
|
(17,437)
|
|
|
Free cash flow
|
|
|
|
|
$
72,991
|
$
67,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
|
|
|
|
|
|
|
Common Stock
Repurchases
|
|
|
|
|
|
|
|
Amounts in thousands except per
share data (Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
June
30,
|
|
June
30,
|
June
30,
|
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
|
Share repurchases during the
period
|
|
759
|
422
|
|
1,297
|
1,513
|
|
|
Average price paid per
share
|
|
$
77.08
|
$
61.66
|
|
$
75.89
|
$
55.32
|
|
|
|
|
|
|
|
|
|
|
|
Shares remaining under
repurchase authorization as of June 30, 2011:
|
|
|
2,510
|
|
|
|
|
|
|
|
|
|
|
Share repurchases does not
include shares surrendered by employees in payment for the minimum
required withholding taxes due on the vesting of restricted stock
units and the settlement of deferred stock units.
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Merilee Raines, Chief
Financial Officer, 1-207-556-8155
SOURCE IDEXX Laboratories, Inc.