WESTBROOK, Maine, July 20, 2012 /PRNewswire/ -- IDEXX
Laboratories, Inc. (NASDAQ: IDXX), today reported that revenues for
the second quarter of 2012 increased 6% to $335.6 million, from $317.9 million for the second quarter of 2011.
Organic revenue growth[1] was 7%. Earnings per diluted share
("EPS") for the quarter ended June 30,
2012 increased 10% to $0.91,
compared to $0.83 for the same period
in the prior year.
(Logo: http://photos.prnewswire.com/prnh/20110602/NE13041LOGO
)
"I am pleased with our second quarter results," stated
Jonathan Ayers, Chairman and Chief
Executive Officer. "With the first half of the year complete, we
remain on track for 8-9% organic revenue growth for full year 2012,
based on our continued strategy of innovation that supports our
customers' growth and success around the globe."
"In the third quarter, we are introducing two new software
offerings that advance our strategy of supporting the veterinarian
in communicating the value of pet health to pet owners. The first,
Pet Health Network® Pro, is a new client communication and
education service for veterinarians, practice managers and their
teams that offers an automated set of tools to strengthen the
client relationship before, during and after each patient visit.
The second, VetConnect® PLUS, is an innovative cloud-based tool
that enables veterinarians to see all of a patient's diagnostic
history generated from IDEXX in-house analyzers and IDEXX Reference
Laboratories on one interactive screen, and share those results
with pet owners in a client-friendly way. With easy access to a
patient's blood work history, the veterinarian is able to more
easily discern important trends and thus make better medical
recommendations, while conveying those recommendations to the pet
owner in a way that results in higher client compliance and
practice growth."
"I am also pleased to announce some organizational changes that
will position us for continued growth. We have created a new
structure consisting of three operating Executive Vice Presidents
and a set of key functional staff that will report to the CEO.
The three operating Executive Vice Presidents collectively
will have responsibility for essentially all of the Company's
global operations, each with direct oversight of a portfolio of
lines of business and geographic regions."
"I am pleased that Johnny Powers
and Michael Williams, executives
with extensive track records of success at IDEXX, have been
elevated to two of these Executive Vice President positions.
I am also very pleased to announce the recruitment of
Jay Mazelsky for the third Executive
Vice President role. Jay comes from Philips Healthcare, where
he was most recently Senior Vice President and General Manager of
their global Computed Tomography, Nuclear Medicine and Radiation
Therapy Planning businesses. Jay is a seasoned executive who
has extensive experience with product and software innovation in
the healthcare field, and will be a great addition to our IDEXX
team."
"In connection with these changes we also have promoted
Merilee Raines, our Chief Financial
Officer, and Bill Brown, our Chief
Scientific Officer, to Executive Vice President in recognition of
their respective critical roles in the past and future success of
IDEXX."
"I look forward to working closely with this executive team, as
well as our broader leadership team, in the years ahead to promote
continued growth and innovation at IDEXX."
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 2012 were $278.3
million compared to $259.7
million for the second quarter of 2011. Organic revenue
growth of 8% was due primarily to growth in our instrument and
consumables business and in our reference laboratory diagnostic and
consulting services business. The revenue increase in our
instruments and consumables business was largely the result of
higher sales volumes of our Catalyst Dx® and ProCyte Dx®
instruments and related consumables. In our reference laboratory
diagnostic and consulting services business, revenues increased due
to higher sales volumes driven primarily by the acquisition of new
customers due, in part, to geographic expansion. Revenue from
acquisitions contributed 1% to revenue growth and changes in
foreign currency exchange rates reduced revenue growth by 3%.
Water. Water revenues for the second quarter of 2012 were
$22.0 million compared to
$21.5 million for the second quarter
of 2011. Organic revenue growth of 5% was due primarily to higher
Colilert® product sales volumes driven by new account acquisitions.
Changes in foreign currency exchange rates reduced revenue growth
by 3%.
Livestock and Poultry Diagnostics. Livestock and Poultry
Diagnostics ("LPD") revenues for the second quarter of 2012 were
$23.1 million compared to
$25.4 million for the second quarter
of 2011. The 4% decline in organic revenue was due primarily to
lower sales of Bovine Spongiform Encephalopathy ("BSE" or otherwise
commonly referred to as mad cow disease) tests resulting from
changes in European Union BSE testing requirements. Effective
July 1, 2011, the age at which
healthy cattle to be slaughtered are required to be tested for BSE
in the European Union was increased from 48 to 72 months, which is
reducing the population of cattle tested for this disease. Changes
in foreign currency exchange rates reduced revenue growth by
5%.
Additional Operating Results for the Second Quarter
Gross profit for the second quarter of 2012 increased
$10.7 million, or 6%, to $184.7 million from $174.0
million for the second quarter of 2011. As a percentage of
total revenue, gross profit increased slightly to 55%. The increase
in the gross profit percentage was due primarily to the favorable
impact of currency as hedging gains more than offset the net
unfavorable impact of changes in foreign currency exchange
rates.
Selling, general and administrative ("SG&A") expense for the
second quarter of 2012 was $88.8
million, or 26% of revenue, compared to $84.1 million, or 26% of revenue, for the second
quarter of 2011. The increase in SG&A expense was due primarily
to increased personnel-related costs, partly offset by the
favorable impact of changes in foreign currency exchange rates.
Research and development ("R&D") expense for the second quarter
of 2012 was $20.0 million, or 6% of
revenue, compared to $18.6 million,
or 6% of revenue for the second quarter of 2011. The increase in
R&D expense resulted primarily from increased personnel-related
costs and higher external consulting and development 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,
2012.
Outlook for 2012
The Company provides the following guidance for the full year of
2012. The guidance reflects an assumption that the value of the
U.S. dollar relative to other currencies will remain at our current
assumptions of the euro at $1.23, the
British pound at $1.53 and the
Canadian dollar at $0.97 for the
balance of 2012. Based on these assumptions, a 1% strengthening of
the U.S. dollar would decrease revenue by approximately
$4.5 million and operating profit by
approximately $0.8 million on an
annual basis. Fluctuations in foreign currency exchange rates from
current assumptions could have a significant positive or negative
impact on our actual results of operations for 2012.
- Revenues are expected to be $1.30 to
$1.31 billion, which represents reported growth of 7% to 8%
and organic growth of 8% to 9%. Organic revenue growth is unchanged
from our previous guidance. The decrease in expected reported
revenue compared to our previous guidance is due exclusively to
unfavorable changes in foreign currency exchange rates, reflecting
a strengthening of the U.S. dollar relative to other currencies
since the date of our previous guidance.
- EPS are expected to be $3.05 to
$3.10, compared to our previous guidance of $3.07 to $3.12. The change in EPS guidance is due
exclusively to the unfavorable impact of changes in foreign
currency exchange rates since the date of our previous
guidance.
- Free cash flow is expected to be 105% to 110% of net
income.[2]
- Capital expenditures are expected to be approximately
$60 million.
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 1-612-288-0337 or 1-800-230-1074 and
reference confirmation code 254010. An audio replay will be
available through July 27, 2012 by
dialing 1-320-365-3844 and referencing replay code 254010.
The call will also be available via live or archived webcast on
the IDEXX Laboratories' web site at http://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
5,000 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 cost improvements in its worldwide network of
laboratories and in the manufacture of in-clinic
instruments;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 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
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 impact of the resolution
of the U.S. Federal Trade Commission investigation into the
Company's marketing and sales practices; the impact of a
change in the status of one of the Company's distributors on its
results of operations;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, veterinary hospital
consolidation, and the prevalence of buying consortiums 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
and small scale 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 impact of any 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 and
the potential loss of tax incentives. A further description of
these and other factors can be found in the Company's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2012, in the section
captioned "Risk Factors."
[1] Organic revenue growth for the second quarter of 2012
excludes revenue from business acquisitions, which contributed 1%
to revenue growth, and the impact of changes in foreign currency
exchange rates, which reduced revenue growth by 3%.
[2] Free cash flow is a non-U.S. GAAP measure. We calculate free
cash flow as cash generated from operations, excluding our royalty
prepayment in the first quarter of 2012, and tax benefits
attributable to share-based compensation arrangements, reduced by
our 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. Refer to our
reconciliation below for our calculation of free cash flow. 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.
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,
|
|
|
|
2012
|
2011
|
|
2012
|
2011
|
Revenue:
|
Revenue
|
|
$
335,649
|
$
317,862
|
|
$
658,325
|
$
610,534
|
Expenses and
|
|
|
|
|
|
|
|
Income:
|
Cost of
revenue
|
|
150,960
|
143,829
|
|
298,862
|
281,576
|
|
Gross
profit
|
|
184,689
|
174,033
|
|
359,463
|
328,958
|
|
Sales and
marketing
|
|
54,539
|
50,974
|
|
112,171
|
101,959
|
|
General
and administrative
|
|
34,275
|
33,140
|
|
70,453
|
65,736
|
|
Research
and development
|
|
20,058
|
18,621
|
|
40,615
|
36,433
|
|
Income
from operations
|
|
75,817
|
71,298
|
|
136,224
|
124,830
|
|
Interest
expense, net
|
|
446
|
363
|
|
1,203
|
722
|
|
Income
before provision for income taxes
|
|
75,371
|
70,935
|
|
135,021
|
124,108
|
|
Provision
for income taxes
|
|
24,051
|
22,281
|
|
42,967
|
38,848
|
Net
Income:
|
Net
income
|
|
51,320
|
48,654
|
|
92,054
|
85,260
|
|
Less:
Noncontrolling interest in subsidiary's
|
|
|
|
|
|
|
|
earnings (losses)
|
|
3
|
(3)
|
|
(6)
|
(9)
|
|
Net income
attributable to stockholders
|
|
$
51,317
|
$
48,657
|
|
$
92,060
|
$
85,269
|
|
Earnings
per share: Basic
|
|
$
0.93
|
$
0.85
|
|
$
1.67
|
$
1.49
|
|
Earnings
per share: Diluted
|
|
$
0.91
|
$
0.83
|
|
$
1.63
|
$
1.45
|
|
Shares
outstanding: Basic
|
|
55,079
|
57,276
|
|
55,143
|
57,366
|
|
Shares
outstanding: Diluted
|
|
56,211
|
58,727
|
|
56,345
|
58,934
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Selected Operating Information
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
|
|
June
30,
|
June
30,
|
|
June
30,
|
June
30,
|
|
|
|
2012
|
2011
|
|
2012
|
2011
|
Operating
|
Gross
profit
|
|
55.0%
|
54.8%
|
|
54.6%
|
53.9%
|
Ratios (as a
|
Sales,
marketing, general and
|
|
|
|
|
|
|
percentage of
|
administrative expense
|
|
26.5%
|
26.5%
|
|
27.7%
|
27.5%
|
revenue):
|
Research
and development expense
|
|
6.0%
|
5.9%
|
|
6.2%
|
6.0%
|
|
Income
from operations (1)
|
|
22.6%
|
22.4%
|
|
20.7%
|
20.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
International revenue (in
thousands)
|
|
$
135,950
|
$
137,585
|
|
$
268,234
|
$
260,155
|
Revenue:
|
International revenue as percentage
|
|
|
|
|
|
|
|
of total revenue
|
|
40.5%
|
43.3%
|
|
40.7%
|
42.6%
|
|
|
|
|
|
|
|
|
(1) Amounts presented may not recalculate due to rounding.
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
Segment
Information
|
|
|
|
|
Amounts
in thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
|
|
June
30,
|
Percent
of
|
|
June
30,
|
Percent
of
|
|
|
|
2012
|
Revenue
|
|
2011
|
Revenue
|
Revenue:
|
CAG
|
|
$
278,294
|
|
|
$
259,734
|
|
|
Water
|
|
21,983
|
|
|
21,510
|
|
|
LPD
|
|
23,060
|
|
|
25,367
|
|
|
Other
|
|
12,312
|
|
|
11,251
|
|
|
Total
|
|
$
335,649
|
|
|
$
317,862
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
CAG
|
|
$
147,908
|
53.1%
|
|
$
138,332
|
53.3%
|
|
Water
|
|
14,794
|
67.3%
|
|
12,968
|
60.3%
|
|
LPD
|
|
15,671
|
68.0%
|
|
17,335
|
68.3%
|
|
Other
|
|
4,575
|
37.2%
|
|
4,742
|
42.2%
|
|
Unallocated Amounts
|
|
1,741
|
N/A
|
|
656
|
N/A
|
|
Total
|
|
$
184,689
|
55.0%
|
|
$
174,033
|
54.8%
|
|
|
|
|
|
|
|
|
Income
from
|
|
|
|
|
|
|
|
Operations:
|
CAG
|
|
$
59,768
|
21.5%
|
|
$
58,270
|
22.4%
|
|
Water
|
|
10,196
|
46.4%
|
|
8,401
|
39.1%
|
|
LPD
|
|
5,810
|
25.2%
|
|
7,176
|
28.3%
|
|
Other
|
|
250
|
2.0%
|
|
309
|
2.8%
|
|
Unallocated Amounts
|
|
(207)
|
N/A
|
|
(2,858)
|
N/A
|
|
Total
|
|
$
75,817
|
22.6%
|
|
$
71,298
|
22.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended
|
|
Six
Months Ended
|
|
|
|
June
30,
|
Percent
of
|
|
June 30,
|
Percent
of
|
|
|
|
2012
|
Revenue
|
|
2011
|
Revenue
|
Revenue:
|
CAG
|
|
$
546,367
|
|
|
$
500,323
|
|
|
Water
|
|
41,565
|
|
|
40,475
|
|
|
LPD
|
|
45,242
|
|
|
49,306
|
|
|
Other
|
|
25,151
|
|
|
20,430
|
|
|
Total
|
|
$
658,325
|
|
|
$
610,534
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
CAG
|
|
$
287,309
|
52.6%
|
|
$
261,683
|
52.3%
|
|
Water
|
|
27,761
|
66.8%
|
|
24,359
|
60.2%
|
|
LPD
|
|
30,853
|
68.2%
|
|
33,882
|
68.7%
|
|
Other
|
|
9,892
|
39.3%
|
|
8,484
|
41.5%
|
|
Unallocated Amounts
|
|
3,648
|
N/A
|
|
550
|
N/A
|
|
Total
|
|
$
359,463
|
54.6%
|
|
$
328,958
|
53.9%
|
|
|
|
|
|
|
|
|
Income
from
|
|
|
|
|
|
|
|
Operations:
|
CAG
|
|
$
106,686
|
19.5%
|
|
$
101,242
|
20.2%
|
|
Water
|
|
18,491
|
44.5%
|
|
15,348
|
37.9%
|
|
LPD
|
|
11,076
|
24.5%
|
|
14,326
|
29.1%
|
|
Other
|
|
788
|
3.1%
|
|
(241)
|
(1.2%)
|
|
Unallocated Amounts
|
|
(817)
|
N/A
|
|
(5,845)
|
N/A
|
|
Total
|
|
$
136,224
|
20.7%
|
|
$
124,830
|
20.5%
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and Subsidiaries
|
Revenues and Revenue Growth Analysis by Product
and Service Categories
|
Amounts
in thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenue
|
Three
Months
Ended June
30, 2012
|
|
Three
Months Ended June 30, 2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency (1)
|
|
Percentage
Change from
Acquisitions
(2)
|
|
Organic
Revenue Growth(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG
|
$
|
278,294
|
|
$
|
259,734
|
|
$
|
18,560
|
|
7.1%
|
|
(2.5%)
|
|
1.4%
|
|
8.2%
|
|
Water
|
|
21,983
|
|
|
21,510
|
|
|
473
|
|
2.2%
|
|
(2.5%)
|
|
-
|
|
4.7%
|
|
LPD
|
|
23,060
|
|
|
25,367
|
|
|
(2,307)
|
|
(9.1%)
|
|
(5.3%)
|
|
-
|
|
(3.8%)
|
|
Other
|
|
12,312
|
|
|
11,251
|
|
|
1,061
|
|
9.4%
|
|
(1.5%)
|
|
-
|
|
10.9%
|
|
Total
|
$
|
335,649
|
|
$
|
317,862
|
|
$
|
17,787
|
|
5.6%
|
|
(2.6%)
|
|
1.1%
|
|
7.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net CAG
Revenue
|
Three
Months
Ended June
30, 2012
|
|
Three
Months Ended June 30, 2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency (1)
|
|
Percentage
Change
from
Acquisitions (2)
|
|
Organic
Revenue Growth(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments and consumables
|
$
|
104,243
|
|
$
|
98,603
|
|
$
|
5,640
|
|
5.7%
|
|
(2.8%)
|
|
-
|
|
8.5%
|
Rapid
assay products
|
|
45,577
|
|
|
44,193
|
|
|
1,384
|
|
3.1%
|
|
(1.1%)
|
|
-
|
|
4.2%
|
Reference
laboratory diagnostic and consulting services
|
|
106,385
|
|
|
99,087
|
|
|
7,298
|
|
7.4%
|
|
(3.0%)
|
|
3.6%
|
|
6.8%
|
Practice
management and digital imaging systems
|
|
22,089
|
|
|
17,851
|
|
|
4,238
|
|
23.7%
|
|
(0.4%)
|
|
-
|
|
24.1%
|
Net CAG revenue
|
$
|
278,294
|
|
$
|
259,734
|
|
$
|
18,560
|
|
7.1%
|
|
(2.5%)
|
|
1.4%
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2012 and
the same period of the prior year applied to foreign currency
denominated revenues for the three months ended June 30, 2012.
(2) The percentage change from acquisitions is a non-U.S. GAAP
measure. It represents the percentage change in revenue during the
three months ended June 30, 2012
compared to the three months ended June 30,
2011 attributed to acquisitions subsequent to March 31, 2011.
(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, 2012 compared to the
three months ended June 30, 2011 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenue
|
Six
Months Ended June 30, 2012
|
|
Six
Months Ended June 30, 2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency (1)
|
|
Percentage
Change from
Acquisitions (2)
|
|
Organic
Revenue Growth(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG
|
$
|
546,367
|
|
$
|
500,323
|
|
$
|
46,044
|
|
9.2%
|
|
(1.5%)
|
|
1.4%
|
|
9.3%
|
|
Water
|
|
41,565
|
|
|
40,475
|
|
|
1,090
|
|
2.7%
|
|
(1.5%)
|
|
-
|
|
4.2%
|
|
LPD
|
|
45,242
|
|
|
49,306
|
|
|
(4,064)
|
|
(8.2%)
|
|
(3.5%)
|
|
-
|
|
(4.7%)
|
|
Other
|
|
25,151
|
|
|
20,430
|
|
|
4,721
|
|
23.1%
|
|
(0.5%)
|
|
-
|
|
23.6%
|
|
Total
|
$
|
658,325
|
|
$
|
610,534
|
|
$
|
47,791
|
|
7.8%
|
|
(1.7%)
|
|
1.2%
|
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net CAG
Revenue
|
Six
Months Ended June 30, 2012
|
|
Six
Months Ended June 30, 2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency (1)
|
|
Percentage
Change
from
Acquisitions (2)
|
|
Organic
Revenue Growth(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments and consumables
|
$
|
206,240
|
|
$
|
192,490
|
|
$
|
13,750
|
|
7.1%
|
|
(1.7%)
|
|
-
|
|
8.8%
|
|
Rapid
assay products
|
|
89,241
|
|
|
82,810
|
|
|
6,431
|
|
7.8%
|
|
(0.6%)
|
|
-
|
|
8.4%
|
|
Reference
laboratory diagnostic and consulting
services
|
|
208,247
|
|
|
188,215
|
|
|
20,032
|
|
10.6%
|
|
(1.9%)
|
|
3.8%
|
|
8.7%
|
|
Practice
management and digital imaging systems
|
|
42,639
|
|
|
36,808
|
|
|
5,831
|
|
15.8%
|
|
(0.2%)
|
|
-
|
|
16.0%
|
|
Net CAG revenue
|
$
|
546,367
|
|
$
|
500,323
|
|
$
|
46,044
|
|
9.2%
|
|
(1.5%)
|
|
1.4%
|
|
9.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2012 and
the same period of the prior year applied to foreign currency
denominated revenues for the six months ended June 30, 2012.
(2) The percentage change from acquisitions is a non-U.S. GAAP
measure. It represents the percentage change in revenue during the
six months ended June 30, 2012
compared to the six months ended June 30,
2011 attributed to acquisitions subsequent to December 31, 2010.
(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, 2012 compared to the
six months ended June 30, 2011 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,
|
|
|
|
|
|
|
2012
|
2011
|
Assets:
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
|
|
|
$
201,813
|
$
183,895
|
|
Accounts
receivable, net
|
|
|
|
|
147,159
|
141,275
|
|
Inventories
|
|
|
|
|
143,703
|
133,099
|
|
Other
current assets
|
|
|
|
|
62,632
|
65,958
|
|
Total
current assets
|
|
|
|
|
555,307
|
524,227
|
|
Property and equipment, net
|
|
|
|
|
220,580
|
216,777
|
|
Other
long-term assets, net
|
|
|
|
|
291,430
|
289,810
|
|
Total
assets
|
|
|
|
|
$
1,067,317
|
$
1,030,814
|
Liabilities and
|
|
|
|
|
|
|
|
Stockholders'
|
|
|
|
|
|
|
|
Equity:
|
Current
Liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
|
$
29,706
|
$
36,551
|
|
Accrued
liabilities
|
|
|
|
|
128,478
|
141,383
|
|
Debt
|
|
|
|
|
244,945
|
243,917
|
|
Deferred
revenue
|
|
|
|
|
16,022
|
15,028
|
|
Total
current liabilities
|
|
|
|
|
419,151
|
436,879
|
|
Long-term
debt, net of current portion
|
|
|
|
|
2,021
|
2,501
|
|
Other
long-term liabilities
|
|
|
|
|
56,204
|
51,841
|
|
Total
long-term liabilities
|
|
|
|
|
58,225
|
54,342
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
|
|
|
589,933
|
539,579
|
|
Noncontrolling interest
|
|
|
|
|
8
|
14
|
|
Total
equity
|
|
|
|
|
589,941
|
539,593
|
|
Total
liabilities and stockholders' equity
|
|
|
|
|
$
1,067,317
|
$
1,030,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
Selected Balance Sheet Information
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
December 31,
|
|
September 30,
|
June
30,
|
|
|
2012
|
|
2012
|
2011
|
|
2011
|
2011
|
Selected
|
|
|
|
|
|
|
|
|
Balance
Sheet
|
Days sales
outstanding (1)
|
41.9
|
|
42.7
|
41.0
|
|
43.1
|
41.2
|
Information:
|
Inventory
turns (2)
|
1.8
|
|
1.8
|
1.8
|
|
1.7
|
1.7
|
|
|
|
|
|
|
|
|
|
(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,
|
|
|
|
2012
|
2011
|
Operating:
|
Cash
Flows from Operating Activities:
|
|
|
|
|
Net
income
|
|
$
92,054
|
$
85,260
|
|
Non-cash
charges
|
|
32,458
|
34,316
|
|
Changes in
assets and liabilities
|
|
(39,766)
|
(20,412)
|
|
Tax
benefit from share-based compensation arrangements
|
|
(5,946)
|
(10,854)
|
|
Net cash
provided by operating activities
|
|
78,800
|
88,310
|
Investing:
|
Cash
Flows from Investing Activities:
|
|
|
|
|
Purchases
of property and equipment
|
|
(24,301)
|
(26,173)
|
|
Proceeds
from disposition of pharmaceutical product lines
|
|
3,000
|
3,000
|
|
Proceeds
from sale of property and equipment
|
|
45
|
218
|
|
Acquisition of intangible asset
|
|
(900)
|
-
|
|
Net cash
used by investing activities
|
|
(22,156)
|
(22,955)
|
Financing:
|
Cash
Flows from Financing Activities:
|
|
|
|
|
Borrowings
on revolving credit facilities, net
|
|
1,000
|
3,486
|
|
Payment of
notes payable
|
|
(452)
|
(425)
|
|
Repurchases of common stock
|
|
(55,006)
|
(98,419)
|
|
Proceeds
from the exercise of stock options and employee stock purchase
plans
|
|
10,247
|
19,367
|
|
Tax
benefit from share-based compensation arrangements
|
|
5,946
|
10,854
|
|
Net cash
used by financing activities
|
|
(38,265)
|
(65,137)
|
|
Net effect
of changes in exchange rates on cash
|
|
(461)
|
2,265
|
|
Net
increase in cash and cash equivalents
|
|
17,918
|
2,483
|
|
Cash and
cash equivalents, beginning of period
|
|
183,895
|
156,915
|
|
Cash and
cash equivalents, end of period
|
|
$
201,813
|
$
159,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
Free
Cash Flow
|
|
|
|
Amounts
in thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
Six
Months Ended
|
|
|
|
|
|
|
June
30,
|
June
30,
|
|
|
|
|
|
|
2012
|
2011
|
Free
Cash
|
|
|
|
|
Flow:
|
Net cash
provided by operating activities
|
|
78,800
|
88,310
|
|
Royalty
prepayment to obtain exclusive patent rights
|
|
6,250
|
-
|
|
Financing
cash flows attributable to tax benefits from share-based
compensation arrangements
|
|
5,946
|
10,854
|
|
Purchases
of property and equipment
|
|
(24,301)
|
(26,173)
|
|
Free
cash flow
|
|
66,695
|
72,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
2012
|
2011
|
|
2012
|
2011
|
|
Share
repurchases during the period
|
|
319
|
759
|
|
652
|
1,297
|
|
Average
price paid per share
|
|
$
85.84
|
$
77.08
|
|
$
84.32
|
$
75.89
|
|
|
|
|
|
|
|
|
|
Shares
remaining under repurchase authorization as of June 30, 2012
totaled
3,735,326.
|
|
|
|
|
|
|
Share
repurchases do 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.