WESTBROOK, Maine, Oct. 19, 2012 /PRNewswire/ -- IDEXX Laboratories,
Inc. (NASDAQ: IDXX), today reported that revenues for the third
quarter of 2012 increased 5% to $315.5
million, from $301.0 million
for the third quarter of 2011. Organic revenue growth1
was 6%. Earnings per diluted share ("EPS") for the quarter ended
September 30, 2012 increased 15% to
$0.76, compared to $0.66 for the same period in the prior year.
(Logo: http://photos.prnewswire.com/prnh/20110602/NE13041LOGO
)
"Overall for the quarter, our revenue growth was solid and our
earnings were in-line with our expectations," stated Jonathan Ayers, Chairman and Chief Executive
Officer. "We also made great progress on our strategy of bringing
innovation to our veterinary customers around the world."
"During the quarter we continued to advance our strategy of
transforming diagnostics through information technology.
VetConnect® PLUS, our integrated web-based platform for
presentation of both in-house and reference lab diagnostic results,
saw unprecedented acceptance, with over 2000 practices activating
this advanced capability since its official launch in early July.
In addition to its importance to clinical decisions, VetConnect
PLUS facilitates impactful conversations between veterinarians and
pet owners, which strengthens these relationships."
"We also achieved a successful beta roll-out of IDEXX Pet Health
Network® Pro, our new suite of client education and
communication services, and strong revenue growth in our
Cornerstone® Practice Information Management systems
business. All of these information strategies will help promote
growth in our core in-house and reference lab diagnostics
businesses, translating into an expected organic revenue growth
rate of 8% to 9% for the company in 2013."
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 third quarter of 2012 were $262.4
million compared to $248.1
million for the third quarter of 2011. Organic revenue
growth of 7% was due primarily to growth in our reference
laboratory diagnostic and consulting services business and in our
instrument and consumables business. The revenue increase in our
reference laboratory diagnostic and consulting services business
was largely the result of higher sales volumes driven primarily by
the acquisition of new customers due, in part, to geographic
expansion and, to a lesser extent, price increases. The revenue
increase in our instruments and consumables business was largely
the result of higher sales volumes of consumables used with our
Catalyst Dx® and ProCyte Dx® instruments.
Revenue from acquired businesses contributed 1% to revenue growth
and changes in foreign currency exchange rates reduced revenue
growth by 2%.
Water. Water revenues for the third quarter of 2012 were
$22.2 million compared to
$21.6 million for the third quarter
of 2011. Organic revenue growth of 5% was due primarily to higher
Quanti-Tray® and Colilert® product sales
volumes, driven by new account acquisitions. Changes in foreign
currency exchange rates reduced revenue growth by 2%.
Livestock and Poultry Diagnostics. Livestock and Poultry
Diagnostics ("LPD") revenues for the third quarter of 2012 were
$18.9 million compared to
$20.7 million for the third quarter
of 2011. The 2% decline in organic revenue was due primarily to
lower sales volumes of certain bovine tests, driven principally by
lower testing levels from certain government programs in
Europe. Changes in foreign
currency exchange rates reduced revenue growth by 6%.
Additional Operating Results for the Third Quarter
Gross profit for the third quarter of 2012 increased
$12.0 million, or 8%, to $170.6 million from $158.7
million for the third quarter of 2011. As a percentage of
total revenue, gross profit increased to 54% from 53%. The increase
in the gross profit percentage was due primarily to lower overall
costs driven by higher volumes of consumables used in our
VetLab® instruments and the favorable impact of
currency, partly offset by higher costs to support the continued
expansion of our reference laboratories network. The net effect of
currency was positive 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
third quarter of 2012 was $87.4
million, or 28% of revenue, compared to $83.2 million, or 28% of revenue, for the third
quarter of 2011. The increase in SG&A expense was due primarily
to higher personnel-related costs, partly offset by the favorable
impact of changes in foreign currency exchange rates. Research and
development ("R&D") expense for the third quarter of 2012 was
$20.3 million, or 6% of revenue,
compared to $19.4 million, or 6% of
revenue for the third 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 nine months ended September 30,
2012.
Outlook for Full Year 2012 and 2013
The Company provides the following updated guidance for the full
year of 2012 and preliminary guidance for 2013. This 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 $1.28, the British pound at
$1.60 and the Canadian dollar at
$1.00 for the balance of 2012 and
2013. For 2012, every 1% weakening of the U.S. dollar relative to
our basket of currencies increases revenues by approximately
$4.5 million and operating profit by
approximately $0.8 million on an
annual basis. For 2013, every 1% weakening of the U.S. dollar
relative to our basket of currencies is expected to increase
revenue by approximately $5 million
and operating profit by approximately $1
million on an annual basis. Fluctuations in foreign currency
exchange rates from current levels could have a significant
positive or negative impact on our actual results of operations in
both years.
2012
- Revenues are expected to be approximately $1.30 billion, updated from guidance of
$1.30 to $1.31 billion provided in
July of this year, which represents reported growth of
approximately 6.5% and organic growth of approximately 7.5%.
- Diluted earnings per share are expected to be in the range of
$3.08 to $3.11, an increase from our
previous guidance of $3.05 to $3.10.
The increase at the high end of our range is due to favorable
changes in foreign currency exchange rates since July. The increase
at the low end of our range is due to the favorable impact of
currency exchange rates and a modest tightening due to business
performance.
- Free cash flow is expected to be approximately 105% of net
income.2
- Capital expenditures are expected to be approximately
$60 million.
2013
- Revenues are expected to be in the range of $1.405 to $1.425 billion, which represents
reported and organic revenue growth of 8% to 9% compared to
projected revenue for 2012.
- Diluted earnings per share are expected to be in the range of
$3.37 to $3.47.
Conference Call and Webcast Information
IDEXX Laboratories will be hosting a conference call today at
9:00 a.m. (eastern) to discuss its
third quarter results and management's outlook. To participate in
the conference call, dial 1-612-234-9960 or 1-800-230-1951 and
reference confirmation code 267707. An audio replay will be
available through October 26, 2012 by
dialing 1-320-365-3844 and referencing replay code 267707.
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 June 30, 2012,in the section
captioned "Risk Factors."
1 Organic revenue growth for the third quarter of
2012 excludes revenue from business acquisitions subsequent to
June 30, 2011, 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-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
|
|
Nine
Months Ended
|
|
|
|
September 30,
|
September 30,
|
|
September 30,
|
September 30,
|
|
|
|
2012
|
2011
|
|
2012
|
2011
|
Revenue:
|
Revenue
|
|
$
315,475
|
$
300,954
|
|
$
973,800
|
$
911,488
|
Expenses and
|
|
|
|
|
|
|
|
Income:
|
Cost of
revenue
|
|
144,840
|
142,287
|
|
443,702
|
423,863
|
|
Gross
profit
|
|
170,635
|
158,667
|
|
530,098
|
487,625
|
|
Sales and
marketing
|
|
52,067
|
50,682
|
|
164,238
|
152,641
|
|
General
and administrative
|
|
35,307
|
32,483
|
|
105,760
|
98,219
|
|
Research
and development
|
|
20,349
|
19,406
|
|
60,964
|
55,839
|
|
Income
from operations
|
|
62,912
|
56,096
|
|
199,136
|
180,926
|
|
Interest
expense, net
|
|
400
|
478
|
|
1,603
|
1,200
|
|
Income
before provision for income taxes
|
|
62,512
|
55,618
|
|
197,533
|
179,726
|
|
Provision
for income taxes
|
|
19,639
|
17,122
|
|
62,606
|
55,970
|
Net
Income:
|
Net
income
|
|
42,873
|
38,496
|
|
134,927
|
123,756
|
|
Less:
Noncontrolling interest in subsidiary's
|
|
|
|
|
|
|
|
earnings (losses)
|
|
20
|
(11)
|
|
14
|
(20)
|
|
Net income
attributable to stockholders
|
$
42,853
|
$
38,507
|
|
$
134,913
|
$
123,776
|
|
Earnings
per share: Basic
|
|
$
0.78
|
$
0.68
|
|
$
2.45
|
$
2.17
|
|
Earnings
per share: Diluted
|
|
$
0.76
|
$
0.66
|
|
$
2.40
|
$
2.11
|
|
Shares
outstanding: Basic
|
|
54,938
|
56,699
|
|
55,074
|
57,141
|
|
Shares
outstanding: Diluted
|
|
56,088
|
58,007
|
|
56,270
|
58,636
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Selected Operating Information
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
|
September 30,
|
September 30,
|
|
September 30,
|
September 30,
|
|
|
|
2012
|
2011
|
|
2012
|
2011
|
Operating
|
Gross
profit
|
|
54.1%
|
52.7%
|
|
54.4%
|
53.5%
|
Ratios (as a
|
Sales,
marketing, general and
|
|
|
|
|
|
|
percentage of
|
administrative expense
|
|
27.7%
|
27.6%
|
|
27.7%
|
27.5%
|
revenue):
|
Research
and development expense
|
|
6.5%
|
6.5%
|
|
6.3%
|
6.1%
|
|
Income
from operations1
|
|
19.9%
|
18.6%
|
|
20.4%
|
19.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
International revenue (in
thousands)
|
|
$
129,139
|
$
126,750
|
|
$
397,373
|
$
386,905
|
Revenue:
|
International revenue as percentage of total
revenue
|
|
40.9%
|
42.1%
|
|
40.8%
|
42.4%
|
|
|
|
|
|
|
|
|
1Amounts presented may not recalculate due
to rounding.
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Segment
Information
|
|
|
|
|
|
|
Amounts
in thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
|
|
September 30,
|
Percent
of
|
|
September 30,
|
Percent
of
|
|
|
|
2012
|
Revenue
|
|
2011
|
Revenue
|
Revenue:
|
CAG
|
|
$
262,357
|
|
|
$
248,074
|
|
|
Water
|
|
22,223
|
|
|
21,648
|
|
|
LPD
|
|
18,911
|
|
|
20,675
|
|
|
Other
|
|
11,984
|
|
|
10,557
|
|
|
Total
|
|
$
315,475
|
|
|
$
300,954
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
CAG
|
|
$
138,558
|
52.8%
|
|
$
126,048
|
50.8%
|
|
Water
|
|
14,489
|
65.2%
|
|
14,317
|
66.1%
|
|
LPD
|
|
12,630
|
66.8%
|
|
13,666
|
66.1%
|
|
Other
|
|
4,577
|
38.2%
|
|
4,009
|
38.0%
|
|
Unallocated Amounts
|
|
381
|
N/A
|
|
627
|
N/A
|
|
Total
|
|
$
170,635
|
54.1%
|
|
$
158,667
|
52.7%
|
|
|
|
|
|
|
|
|
Income
from
|
|
|
|
|
|
|
|
Operations:
|
CAG
|
|
$
50,651
|
19.3%
|
|
$
44,296
|
17.9%
|
|
Water
|
|
10,128
|
45.6%
|
|
9,979
|
46.1%
|
|
LPD
|
|
3,504
|
18.5%
|
|
3,648
|
17.6%
|
|
Other
|
|
(119)
|
(1.0%)
|
|
34
|
0.3%
|
|
Unallocated Amounts
|
|
(1,252)
|
N/A
|
|
(1,861)
|
N/A
|
|
Total
|
|
$
62,912
|
19.9%
|
|
$
56,096
|
18.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended
|
|
Nine
Months Ended
|
|
|
|
September 30,
|
Percent
of
|
|
September 30,
|
Percent
of
|
|
|
|
2012
|
Revenue
|
|
2011
|
Revenue
|
Revenue:
|
CAG
|
|
$
808,724
|
|
|
$
748,397
|
|
|
Water
|
|
63,788
|
|
|
62,123
|
|
|
LPD
|
|
64,153
|
|
|
69,981
|
|
|
Other
|
|
37,135
|
|
|
30,987
|
|
|
Total
|
|
$
973,800
|
|
|
$
911,488
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
CAG
|
|
$
425,867
|
52.7%
|
|
$
387,734
|
51.8%
|
|
Water
|
|
42,250
|
66.2%
|
|
38,676
|
62.3%
|
|
LPD
|
|
43,483
|
67.8%
|
|
47,548
|
67.9%
|
|
Other
|
|
14,469
|
39.0%
|
|
12,493
|
40.3%
|
|
Unallocated Amounts
|
|
4,029
|
N/A
|
|
1,174
|
N/A
|
|
Total
|
|
$
530,098
|
54.4%
|
|
$
487,625
|
53.5%
|
|
|
|
|
|
|
|
|
Income
from
|
|
|
|
|
|
|
|
Operations:
|
CAG
|
|
$
157,337
|
19.5%
|
|
$
145,137
|
19.4%
|
|
Water
|
|
28,619
|
44.9%
|
|
25,327
|
40.8%
|
|
LPD
|
|
14,580
|
22.7%
|
|
17,974
|
25.7%
|
|
Other
|
|
669
|
1.8%
|
|
(207)
|
(0.7%)
|
|
Unallocated Amounts
|
|
(2,069)
|
N/A
|
|
(7,305)
|
N/A
|
|
Total
|
|
$
199,136
|
20.4%
|
|
$
180,926
|
19.9%
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
Revenues and Revenue Growth Analysis by Product
and Service Categories
|
Amounts
in thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenue
|
Three
Months Ended September 30, 2012
|
|
|
Three
Months Ended September 30, 2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency1
|
|
Percentage
Change from
Acquisitions2
|
|
Organic
Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG
|
$
|
262,357
|
|
$
|
248,074
|
|
$
|
14,283
|
|
5.8%
|
|
(2.3%)
|
|
1.4%
|
|
6.7%
|
Water
|
|
22,223
|
|
|
21,648
|
|
|
575
|
|
2.7%
|
|
(2.0%)
|
|
-
|
|
4.7%
|
LPD
|
|
18,911
|
|
|
20,675
|
|
|
(1,764)
|
|
(8.5%)
|
|
(6.1%)
|
|
-
|
|
(2.4%)
|
Other
|
|
11,984
|
|
|
10,557
|
|
|
1,427
|
|
13.5%
|
|
(1.6%)
|
|
-
|
|
15.1%
|
Total
|
$
|
315,475
|
|
$
|
300,954
|
|
$
|
14,521
|
|
4.8%
|
|
(2.5%)
|
|
1.1%
|
|
6.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net CAG
Revenue
|
Three
Months Ended September 30, 2012
|
|
|
Three
Months Ended September 30, 2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency 1
|
|
Percentage
Change
from
Acquisitions2
|
|
Organic
Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments and consumables
|
$
|
101,325
|
|
$
|
99,719
|
|
$
|
1,606
|
|
1.6%
|
|
(2.6%)
|
|
-
|
|
|
4.2%
|
|
Rapid
assay products
|
|
39,315
|
|
|
36,073
|
|
|
3,242
|
|
9.0%
|
|
(1.1%)
|
|
-
|
|
|
10.1%
|
|
Reference
laboratory diagnostic and consulting services
|
|
101,449
|
|
|
94,027
|
|
|
7,422
|
|
7.9%
|
|
(3.0%)
|
|
3.7%
|
|
|
7.2%
|
|
Practice
management and digital imaging systems
|
|
20,268
|
|
|
18,255
|
|
|
2,013
|
|
11.0%
|
|
(0.1%)
|
|
-
|
|
|
11.1%
|
|
Net CAG revenue
|
$
|
262,357
|
|
$
|
248,074
|
|
$
|
14,283
|
|
5.8%
|
|
(2.3%)
|
|
1.4%
|
|
|
6.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1The 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 September 30,
2012 and the same period of the prior year applied to
foreign currency denominated revenues for the three months ended
September 30, 2012.
2The percentage change from acquisitions is a
non-U.S. GAAP measure. It represents the percentage change in
revenue during the three months ended September 30, 2012 compared to the three months
ended September 30, 2011 attributed
to acquisitions subsequent to June 30,
2011.
3Organic revenue growth is a non-U.S. GAAP
measure and represents the percentage change in revenue during the
three months ended September 30, 2012
compared to the three months ended September
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
|
Nine
Months Ended September 30, 2012
|
|
|
Nine
Months Ended September 30, 2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency1
|
|
Percentage
Change from
Acquisitions2
|
|
Organic
Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG
|
$
|
808,724
|
|
$
|
748,397
|
|
$
|
60,327
|
|
8.1%
|
|
(1.7%)
|
|
1.4%
|
|
8.4%
|
Water
|
|
63,788
|
|
|
62,123
|
|
|
1,665
|
|
2.7%
|
|
(1.6%)
|
|
-
|
|
4.3%
|
LPD
|
|
64,153
|
|
|
69,981
|
|
|
(5,828)
|
|
(8.3%)
|
|
(4.3%)
|
|
-
|
|
(4.0%)
|
Other
|
|
37,135
|
|
|
30,987
|
|
|
6,148
|
|
19.8%
|
|
(0.9%)
|
|
-
|
|
20.7%
|
Total
|
$
|
973,800
|
|
$
|
911,488
|
|
$
|
62,312
|
|
6.8%
|
|
(2.0%)
|
|
1.2%
|
|
7.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net CAG
Revenue
|
Nine
Months Ended September 30, 2012
|
|
|
Nine
Months Ended September 30, 2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency1
|
|
Percentage
Change
from
Acquisitions2
|
|
Organic
Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments and consumables
|
$
|
307,565
|
|
$
|
292,209
|
|
$
|
15,356
|
|
5.3%
|
|
(2.0%)
|
|
-
|
|
7.3%
|
Rapid
assay products
|
|
128,556
|
|
|
118,883
|
|
|
9,673
|
|
8.1%
|
|
(0.8%)
|
|
-
|
|
8.9%
|
Reference
laboratory diagnostic and consulting
services
|
|
309,696
|
|
|
282,242
|
|
|
27,454
|
|
9.7%
|
|
(2.2%)
|
|
3.7%
|
|
8.2%
|
Practice
management and digital imaging systems
|
|
62,907
|
|
|
55,063
|
|
|
7,844
|
|
14.2%
|
|
(0.2%)
|
|
-
|
|
14.4%
|
Net CAG revenue
|
$
|
808,724
|
|
$
|
748,397
|
|
$
|
60,327
|
|
8.1%
|
|
(1.7%)
|
|
1.4%
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1The 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 nine months ended September 30,
2012 and the same period of the prior year applied to
foreign currency denominated revenues for the nine months ended
September 30, 2012.
2The percentage change from acquisitions is a
non-U.S. GAAP measure. It represents the percentage change in
revenue during the nine months ended September 30, 2012 compared to the nine months
ended September 30, 2011 attributed
to acquisitions subsequent to December 31,
2010.
3Organic revenue growth is a non-U.S. GAAP
measure and represents the percentage change in revenue during the
nine months ended September 30, 2012
compared to the nine months ended September
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
December 31,
|
|
|
|
|
|
|
2012
|
2011
|
Assets:
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
|
|
|
$
221,441
|
$
183,895
|
|
Accounts
receivable, net
|
|
|
|
|
141,374
|
141,275
|
|
Inventories
|
|
|
|
|
147,474
|
133,099
|
|
Other
current assets
|
|
|
|
|
60,485
|
65,958
|
|
Total
current assets
|
|
|
|
|
570,774
|
524,227
|
|
Property and equipment, net
|
|
|
|
|
231,639
|
216,777
|
|
Other
long-term assets, net
|
|
|
|
|
290,938
|
289,810
|
|
Total
assets
|
|
|
|
|
$
1,093,351
|
$
1,030,814
|
Liabilities and
|
|
|
|
|
|
|
|
Stockholders'
|
|
|
|
|
|
|
|
Equity:
|
Current
Liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
|
$
31,728
|
$
36,551
|
|
Accrued
liabilities
|
|
|
|
|
134,664
|
141,383
|
|
Debt
|
|
|
|
|
232,960
|
243,917
|
|
Deferred
revenue
|
|
|
|
|
16,494
|
15,028
|
|
Total
current liabilities
|
|
|
|
|
415,846
|
436,879
|
|
Long-term
debt, net of current portion
|
|
|
|
|
1,776
|
2,501
|
|
Other
long-term liabilities
|
|
|
|
|
58,194
|
51,841
|
|
Total
long-term liabilities
|
|
|
|
|
59,970
|
54,342
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
|
617,507
|
539,579
|
|
Noncontrolling interest
|
|
|
|
28
|
14
|
|
Total
equity
|
|
|
|
617,535
|
539,593
|
|
Total
liabilities and stockholders' equity
|
|
|
|
$
1,093,351
|
$
1,030,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Selected Balance Sheet Information
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
June
30,
|
March
31,
|
|
December 31,
|
September 30,
|
|
|
2012
|
|
2012
|
2012
|
|
2011
|
2011
|
Selected
|
|
|
|
|
|
|
|
|
Balance
Sheet
|
Days sales
outstanding1
|
41.7
|
|
41.9
|
42.7
|
|
41.0
|
43.1
|
Information:
|
Inventory
turns 2
|
1.7
|
|
1.8
|
1.8
|
|
1.8
|
1.7
|
|
|
|
|
|
|
|
|
|
1Days 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.
|
2Inventory 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended
|
|
|
|
|
|
|
September 30,
|
September 30,
|
|
|
|
|
|
|
2012
|
2011
|
Operating:
|
Cash
Flows from Operating Activities:
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
$
134,927
|
$
123,756
|
|
Non-cash
charges
|
|
|
|
|
49,520
|
48,641
|
|
Changes in
assets and liabilities
|
|
|
(20,777)
|
5,130
|
|
Tax
benefit from share-based compensation arrangements
|
|
(10,182)
|
(14,009)
|
|
Net cash
provided by operating activities
|
|
|
|
|
153,488
|
163,518
|
Investing:
|
Cash
Flows from Investing Activities:
|
|
|
|
|
|
|
|
Purchases
of property and equipment
|
|
|
|
|
(43,230)
|
(39,927)
|
|
Proceeds
from disposition of pharmaceutical product lines
|
|
|
3,000
|
3,000
|
|
Proceeds
from sale of property and equipment
|
|
|
|
45
|
223
|
|
Acquisition of intangible asset
|
|
|
(900)
|
-
|
|
Acquisition of a business, net of cash
acquired
|
|
|
-
|
(2,600)
|
|
Net cash
used by investing activities
|
|
|
|
(41,085)
|
(39,304)
|
Financing:
|
Cash
Flows from Financing Activities:
|
|
|
|
|
|
|
|
(Repayment) borrowings on revolving credit
facilities, net
|
|
|
(11,000)
|
24,903
|
|
Payment of
notes payable
|
|
|
|
|
(682)
|
(643)
|
|
Repurchases of common stock
|
|
|
|
|
(91,152)
|
(166,016)
|
|
Proceeds
from the exercise of stock options and employee stock purchase
plans
|
|
17,156
|
26,080
|
|
Tax
benefit from share-based compensation arrangements
|
|
10,182
|
14,009
|
|
Net cash
used by financing activities
|
|
|
|
(75,496)
|
(101,667)
|
|
Net effect
of changes in exchange rates on cash
|
|
|
|
|
639
|
2,037
|
|
Net
increase in cash and cash equivalents
|
|
|
|
|
37,546
|
24,584
|
|
Cash and
cash equivalents, beginning of period
|
|
|
|
183,895
|
156,915
|
|
Cash and
cash equivalents, end of period
|
|
|
|
|
$
221,411
|
$
181,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Free
Cash Flow
|
|
|
|
|
|
|
Amounts
in thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended
|
|
|
|
|
|
|
September 30,
|
September 30,
|
|
|
|
|
|
|
2012
|
2011
|
Free
Cash
|
|
|
|
|
|
|
|
Flow:
|
Net cash
provided by operating activities
|
|
|
|
|
$
153,488
|
$
163,518
|
|
Royalty
prepayment to obtain exclusive patent rights
|
|
|
|
|
6,250
|
-
|
|
Financing
cash flows attributable to tax benefits from share-based
compensation arrangements
|
|
10,182
|
14,009
|
|
Purchases
of property and equipment
|
|
|
|
|
(43,230)
|
(39,927)
|
|
Free
cash flow
|
|
|
|
|
$
126,690
|
$
137,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Common
Stock Repurchases
|
|
|
|
|
|
|
Amounts
in thousands except per share data (Unaudited)
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
|
September 30,
|
September 30,
|
|
September 30,
|
September 30,
|
|
|
|
2012
|
2011
|
|
2012
|
2011
|
|
Share
repurchases during the period
|
|
386
|
886
|
|
1,038
|
2,183
|
|
Average
price paid per share
|
|
$
93.76
|
$
76.27
|
|
$
87.82
|
$
76.04
|
|
|
|
|
|
|
|
|
|
Shares
remaining under repurchase authorization as of September 30, 2012
totaled
3,349,826.
|
|
|
|
|
|
|
|
|
|
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.