WESTBROOK, Maine, Jan. 29, 2013 /PRNewswire/ -- IDEXX
Laboratories, Inc. (NASDAQ: IDXX), today reported that revenues for
the fourth quarter of 2012 increased 4% to $319.5 million, from $307.2 million for the fourth quarter of 2011.
Organic revenue growth[1] was 4%. Changes in foreign currency
exchange rates reduced revenue growth by less than 1% and were
almost entirely offset by revenue contributed from acquired
businesses. Operating profit for the fourth quarter of 2012
increased 15% to $63.4 million, or
20% of revenue, compared to $55.3
million, or 18% of revenue for same period of the prior
year. Earnings per diluted share ("EPS") for the quarter ended
December 31, 2012 increased 16% to
$0.78, compared to $0.67 for the same period in the prior year.
Fourth quarter 2012 EPS includes a $3.5
million milestone payment earned related to the 2008 sale of
product rights previously included in our pharmaceutical product
line, which added $0.04 to EPS.
Fourth quarter 2011 EPS included a similar milestone payment, which
added $0.03 to EPS.
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Year-to-Date Results
Revenues for the year ended December 31,
2012 increased 6% to $1.293
billion, from $1.219 billion
for the year ended December 31, 2011.
Organic revenue growth for the year ended December 31, 2012 was 7%. Changes in foreign
currency exchange rates reduced revenue growth by 2% and revenue
from acquisitions contributed 1% to revenue growth for the year
ended December 31, 2012.
Operating profit for the year ended December 31, 2012 increased 11% to $262.6 million, or 20% of revenue, compared to
$236.2 million, or 19% of revenue,
for the prior year.
EPS for the year ended December 31,
2012 increased 14% to $3.17,
compared to $2.78 for the prior year.
2012 EPS includes a $3.5 million
milestone payment earned related to the 2008 sale of product rights
previously included in our pharmaceutical product line, which added
$0.04 to EPS. 2011 EPS included a
similar milestone payment, a gain from the sale of certain raw
material inventory in connection with the restructuring of our
pharmaceutical business and a benefit from the federal research and
development ("R&D") tax credit, all of which contributed
$0.08 to EPS.
"We were very pleased with the fundamental trends behind revenue
growth in the fourth quarter. As a result of the revenue mix
reflected in these results, operating profit margins were well on
track toward our longer term goals," stated Jonathan Ayers, Chairman and Chief Executive
Officer. "With the early success of new information technology
offerings, including Vetconnect® PLUS and Pet Health
Network® Pro, we remain confident in accelerating
organic growth through 2013, expected to average 8% – 9% for the
year as a whole."
Revenue Performance for the Fourth Quarter
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 fourth quarter of 2012 were $263.5
million compared to $251.3
million for the fourth quarter of 2011. Organic revenue
growth of 5% was due primarily to higher sales volumes of
consumables used with our Catalyst Dx® chemistry
instrument and an increase in net sales prices and sales volumes in
our reference laboratories. These favorable impacts were partly
offset by lower sales of our Catalyst Dx® instrument.
Revenue from acquired businesses contributed less than 1% to
revenue growth and was offset almost entirely by the reduction in
revenue growth from changes in foreign currency rates.
Water. Water revenues for the fourth quarter of 2012 were
$20.9 million compared to
$20.0 million for the fourth 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 less than 1%.
Livestock and Poultry Diagnostics. Livestock and Poultry
Diagnostics ("LPD") revenues for the fourth quarter of 2012 were
$22.6 million compared to
$24.1 million for the fourth quarter
of 2011. The 4% decline in organic revenue was due primarily to
lower sales volumes of certain bovine tests, driven principally by
a reduction of government testing programs in Europe. Changes in foreign currency exchange
rates reduced revenue growth by 2%.
Additional Operating Results for the Fourth Quarter
Gross profit for the fourth quarter of 2012 increased
$10.2 million, or 6%, to $169.1 million from $158.9
million for the fourth quarter of 2011. As a percentage of
total revenue, gross profit increased to 53% from 52%. The increase
in the gross profit percentage was due primarily to higher relative
sales of high margin consumables used in our IDEXX
VetLab® instruments and the favorable impact of
currency. The net effect of currency was positive as hedging gains
more than offset the net unfavorable impact of changes in foreign
currency exchange rates. Fourth quarter gross profit percentage is
typically lower than the gross profit percentage for the full year
due to higher relative sales of lower margin instruments in the
fourth quarter.
Selling, general and administrative ("SG&A") expense for the
fourth quarter of 2012 was $84.6
million, or 26% of revenue, compared to $83.4 million, or 27% of revenue, for the fourth
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. The milestone
payments earned in the fourth quarters of 2012 and 2011 related to
the 2008 sale of pharmaceutical product rights were reflected as
reductions to general and administrative expenses. Research and
development ("R&D") expense for the fourth quarter of 2012 was
$21.1 million, or 7% of revenue,
compared to $20.2 million, or 7% of
revenue for the fourth quarter of 2011. The increase in R&D
expense resulted primarily from higher personnel-related costs and
an increase in 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 twelve months ended December 31,
2012.
Outlook for 2013
The Company provides the following updated guidance for the full
year of 2013. 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 $1.32, the British pound at $1.60 and the Canadian dollar at $1.00 for the balance of 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 $0.8 million on an annual basis. A 1%
strengthening of the U.S. dollar is expected to have the opposite
effect. Fluctuations in foreign currency exchange rates from
current assumptions could have a significant positive or negative
impact on our actual results of operations for 2013.
- Revenues are expected to be $1.405 to
$1.42 billion, which represents reported growth of 8.5% to
9.5% relative to 2012. Organic revenue growth is estimated to be in
the range of 8% to 9% and is consistent with our previous
guidance.
- EPS are expected to be $3.47 to
$3.57, compared to our previous guidance of $3.37 to $3.47. Relative to EPS guidance provided
in October 2012, our current guidance
reflects the estimated impact of the federal R&D tax credit for
2012 and 2013. The impact of the R&D tax credit for both years
will be reflected in 2013 results. The increase to the high end of
our guidance reflects an estimated benefit of $0.10 related to the federal R&D tax credit.
The increase to the low end of our guidance reflects an estimated
benefit of $0.08 related to the
federal R&D tax credit, as well as a tightening of our EPS
range. We expect the federal R&D tax credit to contribute
$0.05 to $0.06 to EPS in the first
quarter of 2013, as we recognize the tax credit for 2012 and a
portion of our expected tax credit for 2013.
- Free cash flow[2] is expected to be approximately 105% to 110%
of net income.
- Capital expenditures are expected to be approximately
$75 million.
Conference Call and Webcast Information
IDEXX Laboratories will be hosting a conference call today at
9:00 a.m. (eastern) to discuss its
fourth quarter and full-year results and management's outlook. To
participate in the conference call, dial 1-612-288-0340 or
1-800-230-1093 and reference confirmation code 278731. An audio
replay will be available through February 5,
2013 by dialing 1-320-365-3844 and referencing replay code
278731.
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 the
Company's 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 September 30, 2012,in the section
captioned "Risk Factors."
[1] Organic revenue growth is a non-U.S. GAAP measure and
represents the percentage change in revenue net of acquisitions and
the effect of changes in foreign currency exchange rates.
[2] Free cash flow is a non-U.S. GAAP measure. We calculate free
cash flow as cash generated from operations, excluding 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 for the
twelve months ended December 31, 2012
and 2011. 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.
Contact: Merilee Raines, Chief
Financial Officer, 1-207-556-8155
IDEXX
Laboratories, Inc. and Subsidiaries
|
Consolidated Statement of
Operations
|
Amounts
in thousands except per share data (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
|
|
December 31,
|
December 31,
|
|
December 31,
|
December 31,
|
|
|
|
2012
|
2011
|
|
2012
|
2011
|
Revenue:
|
Revenue
|
|
$
319,538
|
$
307,201
|
|
$
1,293,338
|
$
1,218,689
|
Expenses and
|
|
|
|
|
|
|
|
Income:
|
Cost of
revenue
|
|
150,488
|
148,320
|
|
594,190
|
572,183
|
|
Gross
profit
|
|
169,050
|
158,881
|
|
699,148
|
646,506
|
|
Sales and
marketing
|
|
52,724
|
52,209
|
|
216,962
|
204,850
|
|
General
and administrative
|
|
31,849
|
31,170
|
|
137,609
|
129,389
|
|
Research
and development
|
|
21,050
|
20,203
|
|
82,014
|
76,042
|
|
Income
from operations
|
|
63,427
|
55,299
|
|
262,563
|
236,225
|
|
Interest
expense, net
|
|
(343)
|
(603)
|
|
(1,946)
|
(1,803)
|
|
Income
before provision for income taxes
|
|
63,084
|
54,696
|
|
260,617
|
234,422
|
|
Provision
for income taxes
|
|
19,724
|
16,698
|
|
82,330
|
72,668
|
Net
Income:
|
Net
income
|
|
43,360
|
37,998
|
|
178,287
|
161,754
|
|
Less:
Noncontrolling interest in subsidiary's
|
|
|
|
|
|
|
|
earnings (losses)
|
|
6
|
(12)
|
|
20
|
(32)
|
|
Net income
attributable to stockholders
|
$
43,354
|
$
38,010
|
|
$
178,267
|
$
161,786
|
|
Earnings
per share: Basic
|
|
$
0.79
|
$
0.68
|
|
$
3.24
|
$
2.85
|
|
Earnings
per share: Diluted
|
|
$
0.78
|
$
0.67
|
|
$
3.17
|
$
2.78
|
|
Shares
outstanding: Basic
|
|
54,717
|
55,743
|
|
54,985
|
56,790
|
|
Shares
outstanding: Diluted
|
|
55,790
|
56,923
|
|
56,155
|
58,214
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
Selected Operating Information
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
|
|
December 31,
|
December 31,
|
|
December 31,
|
December 31,
|
|
|
|
2012
|
2011
|
|
2012
|
2011
|
Operating
|
Gross
profit
|
|
52.9%
|
51.7%
|
|
54.1%
|
53.0%
|
Ratios (as a
|
Sales,
marketing, general and
|
|
|
|
|
|
|
percentage of
|
administrative expense
|
|
26.5%
|
27.1%
|
|
27.4%
|
27.4%
|
revenue):
|
Research
and development expense
|
|
6.6%
|
6.6%
|
|
6.3%
|
6.2%
|
|
Income
from operations1
|
|
19.8%
|
18.0%
|
|
20.3%
|
19.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
International revenue (in
thousands)
|
|
$
136,545
|
$
131,694
|
|
$
533,919
|
$
518,599
|
Revenue:
|
International revenue as percentage of
|
|
|
|
|
|
|
|
total revenue
|
|
42.7%
|
42.9%
|
|
41.3%
|
42.6%
|
|
|
|
|
|
|
|
|
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
|
|
|
|
December 31,
|
Percent
of
|
|
December 31,
|
Percent
of
|
|
|
|
2012
|
Revenue
|
|
2011
|
Revenue
|
Revenue:
|
CAG
|
|
$
263,487
|
|
|
$
251,325
|
|
|
Water
|
|
20,892
|
|
|
20,002
|
|
|
LPD
|
|
22,571
|
|
|
24,131
|
|
|
Other
|
|
12,588
|
|
|
11,743
|
|
|
Total
|
|
$
319,538
|
|
|
$
307,201
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
CAG
|
|
$
135,176
|
51.3%
|
|
$
127,922
|
50.9%
|
|
Water
|
|
13,883
|
66.5%
|
|
12,879
|
64.4%
|
|
LPD
|
|
14,111
|
62.5%
|
|
16,071
|
66.6%
|
|
Other
|
|
4,748
|
37.7%
|
|
4,738
|
40.3%
|
|
Unallocated Amounts
|
|
1,132
|
N/A
|
|
(2,729)
|
N/A
|
|
Total
|
|
$
169,050
|
52.9%
|
|
$
158,881
|
51.7%
|
|
|
|
|
|
|
|
|
Income
from
|
|
|
|
|
|
|
|
Operations:
|
CAG
|
|
$
45,899
|
17.4%
|
|
$
44,697
|
17.8%
|
|
Water
|
|
9,068
|
43.4%
|
|
8,517
|
42.6%
|
|
LPD
|
|
4,679
|
20.7%
|
|
5,765
|
23.9%
|
|
Other
|
|
3,782
|
30.0%
|
|
2,763
|
23.5%
|
|
Unallocated Amounts
|
|
(1)
|
N/A
|
|
(6,443)
|
N/A
|
|
Total
|
|
$
63,427
|
19.8%
|
|
$
55,299
|
18.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
Twelve
Months Ended
|
|
|
|
December 31,
|
Percent
of
|
|
December 31,
|
Percent
of
|
|
|
|
2012
|
Revenue
|
|
2011
|
Revenue
|
Revenue:
|
CAG
|
|
$
1,072,211
|
|
|
$
999,722
|
|
|
Water
|
|
84,680
|
|
|
82,125
|
|
|
LPD
|
|
86,724
|
|
|
94,112
|
|
|
Other
|
|
49,723
|
|
|
42,730
|
|
|
Total
|
|
$
1,293,338
|
|
|
$
1,218,689
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
CAG
|
|
$
561,043
|
52.3%
|
|
$
515,656
|
51.6%
|
|
Water
|
|
56,133
|
66.3%
|
|
51,555
|
62.8%
|
|
LPD
|
|
57,594
|
66.4%
|
|
63,619
|
67.6%
|
|
Other
|
|
19,217
|
38.6%
|
|
17,231
|
40.3%
|
|
Unallocated Amounts
|
|
5,161
|
N/A
|
|
(1,555)
|
N/A
|
|
Total
|
|
$
699,148
|
54.1%
|
|
$
646,506
|
53.0%
|
|
|
|
|
|
|
|
|
Income
from
|
|
|
|
|
|
|
|
Operations:
|
CAG
|
|
$
203,236
|
19.0%
|
|
$
189,834
|
19.0%
|
|
Water
|
|
37,687
|
44.5%
|
|
33,844
|
41.2%
|
|
LPD
|
|
19,259
|
22.2%
|
|
23,739
|
25.2%
|
|
Other
|
|
4,451
|
9.0%
|
|
2,556
|
6.0%
|
|
Unallocated Amounts
|
|
(2,070)
|
N/A
|
|
(13,748)
|
N/A
|
|
Total
|
|
$
262,563
|
20.3%
|
|
$
236,225
|
19.4%
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and
Subsidiaries
|
Revenues and Revenue Growth Analysis by Product
and Service Categories
|
Amounts
in thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenue
|
Three
Months
Ended
December
31, 2012
|
|
|
Three
Months
Ended
December
31,
2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency1
|
|
Percentage
Change from
Acquisitions2
|
|
Organic
Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG
|
$
|
263,487
|
|
$
|
251,325
|
|
$
|
12,162
|
|
4.8
%
|
|
(0.4
%)
|
|
0.5
%
|
|
4.7
%
|
Water
|
|
20,892
|
|
|
20,002
|
|
|
890
|
|
4.4
%
|
|
(0.4
%)
|
|
-
|
|
4.8
%
|
LPD
|
|
22,571
|
|
|
24,131
|
|
|
(1,560)
|
|
(6.5
%)
|
|
(2.1
%)
|
|
-
|
|
(4.4
%)
|
Other
|
|
12,588
|
|
|
11,743
|
|
|
845
|
|
7.2
%
|
|
(0.9
%)
|
|
-
|
|
8.1
%
|
Total
|
$
|
319,538
|
|
$
|
307,201
|
|
$
|
12,337
|
|
4.0
%
|
|
(0.5
%)
|
|
0.4
%
|
|
4.1
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net CAG
Revenue
|
Three
Months
Ended
December
31,
2012
|
|
|
Three
Months
Ended
December
31,
2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency 1
|
|
Percentage
Change
from
Acquisitions2
|
Organic
Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VetLab® instruments
|
$
|
24,624
|
|
$
|
28,736
|
|
$
|
(4,112)
|
|
(14.3
%)
|
|
(0.5
%)
|
|
-
|
|
(13.8%)
|
VetLab® consumables
|
|
72,420
|
|
|
62,527
|
|
|
9,893
|
|
15.8
%
|
|
(0.6
%)
|
|
-
|
|
16.4%
|
VetLab® service and accessories
|
|
12,442
|
|
|
11,114
|
|
|
1,328
|
|
11.9
%
|
|
(0.2
%)
|
|
-
|
|
12.1%
|
Rapid
assay products
|
|
33,676
|
|
|
35,459
|
|
|
(1,783)
|
|
(5.0
%)
|
|
(0.2
%)
|
|
-
|
|
(4.8%)
|
Reference
laboratory diagnostic and
consulting
services
|
|
97,647
|
|
|
91,677
|
|
|
5,970
|
|
6.5
%
|
|
(0.4
%)
|
|
1.4
%
|
|
5.5%
|
Practice
management and digital
imaging systems and
services
|
|
22,678
|
|
|
21,812
|
|
|
866
|
|
4.0
%
|
|
0.2
%
|
|
-
|
|
3.8%
|
Net CAG revenue
|
$
|
263,487
|
|
$
|
251,325
|
|
$
|
12,162
|
|
4.8
%
|
|
(0.4
%)
|
|
0.5
%
|
|
4.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, 2012 and the same period of the prior
year applied to foreign currency denominated revenues for the three
months ended December 31, 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 December 31, 2012 compared to
the three months ended December 31, 2011 attributed to acquisitions
subsequent to September 30, 2011.
|
3 Organic revenue growth is a
non-U.S. GAAP measure and represents the percentage change in
revenue during the three months ended December 31, 2012 compared to
the three months ended December 31, 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
|
Twelve
Months
Ended
December
31,
2012
|
|
|
Twelve
Months
Ended
December
31, 2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency1
|
|
Percentage
Change from
Acquisitions2
|
|
Organic
Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG
|
$
|
1,072,211
|
|
$
|
999,722
|
|
$
|
72,489
|
|
7.3%
|
|
(1.4%)
|
|
1.2%
|
|
7.5%
|
Water
|
|
84,680
|
|
|
82,125
|
|
|
2,555
|
|
3.1%
|
|
(1.4%)
|
|
-
|
|
4.5%
|
LPD
|
|
86,724
|
|
|
94,112
|
|
|
(7,388)
|
|
(7.9%)
|
|
(3.8%)
|
|
-
|
|
(4.1%)
|
Other
|
|
49,723
|
|
|
42,730
|
|
|
6,993
|
|
16.4%
|
|
(0.8%)
|
|
-
|
|
17.2%
|
Total
|
$
|
1,293,338
|
|
$
|
1,218,689
|
|
$
|
74,649
|
|
6.1%
|
|
(1.6%)
|
|
1.0%
|
|
6.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net CAG
Revenue
|
Twelve
Months
Ended
December
31, 2012
|
|
|
Twelve
Months
Ended
December
31,
2011
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency1
|
|
Percentage
Change
from
Acquisitions2
|
|
Organic
Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VetLab® instruments
|
$
|
90,177
|
|
$
|
93,655
|
|
$
|
(3,478)
|
|
(3.7%)
|
|
(1.9%)
|
|
-
|
|
(1.8%)
|
VetLab® consumables
|
|
278,818
|
|
|
255,848
|
|
|
22,970
|
|
9.0%
|
|
(1.7%)
|
|
-
|
|
10.7%
|
VetLab® service and accessories
|
|
48,056
|
|
|
45,083
|
|
|
2,973
|
|
6.6%
|
|
(0.4%)
|
|
-
|
|
7.0%
|
Rapid
assay products
|
|
162,232
|
|
|
154,342
|
|
|
7,890
|
|
5.1%
|
|
(0.7%)
|
|
-
|
|
5.8%
|
Reference
laboratory diagnostic and
consulting
services
|
|
407,343
|
|
|
373,919
|
|
|
33,424
|
|
8.9%
|
|
(1.8%)
|
|
3.1%
|
|
7.6%
|
Practice
management and digital
imaging systems and
services
|
|
85,585
|
|
|
76,875
|
|
|
8,710
|
|
11.3%
|
|
(0.1%)
|
|
-
|
|
11.4%
|
Net CAG revenue
|
$
|
1,072,211
|
|
$
|
999,722
|
|
$
|
72,489
|
|
7.3%
|
|
(1.4%)
|
|
1.2%
|
|
7.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 twelve months ended December 31, 2012 and the same
period of the prior year applied to foreign currency denominated
revenues for the twelve months ended December 31, 2012.
|
2 The percentage change from acquisitions
is a non-U.S. GAAP measure. It represents the percentage change in
revenue during the twelve months ended December 31, 2012 compared
to the twelve months ended December 31, 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 twelve months ended December 31, 2012 compared
to the twelve months ended December 31, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
December 31,
|
|
|
|
|
|
|
2012
|
2011
|
Assets:
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
|
|
|
$
223,986
|
$
183,895
|
|
Accounts
receivable, net
|
|
|
|
|
138,324
|
141,275
|
|
Inventories
|
|
|
|
|
140,946
|
133,099
|
|
Other
current assets
|
|
|
|
|
66,281
|
65,958
|
|
Total
current assets
|
|
|
|
|
569,537
|
524,227
|
|
Property and equipment, net
|
|
|
|
|
245,177
|
216,777
|
|
Other
long-term assets, net
|
|
|
|
|
288,888
|
289,810
|
|
Total
assets
|
|
|
|
|
$
1,103,602
|
$
1,030,814
|
Liabilities and
|
|
|
|
|
|
|
|
Stockholders'
|
|
|
|
|
|
|
|
Equity:
|
Current
Liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
|
$
35,288
|
$
36,551
|
|
Accrued
liabilities
|
|
|
|
|
137,746
|
141,383
|
|
Debt
|
|
|
|
|
213,107
|
243,917
|
|
Deferred
revenue
|
|
|
|
|
20,192
|
15,028
|
|
Total
current liabilities
|
|
|
|
|
406,333
|
436,879
|
|
Long-term
debt, net of current portion
|
|
|
|
|
1,394
|
2,501
|
|
Other
long-term liabilities
|
|
|
|
|
59,618
|
51,841
|
|
Total
long-term liabilities
|
|
|
|
|
61,012
|
54,342
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
|
636,223
|
539,579
|
|
Noncontrolling interest
|
|
|
|
34
|
14
|
|
Total
equity
|
|
|
|
636,257
|
539,593
|
|
Total
liabilities and stockholders' equity
|
|
|
|
$
1,103,602
|
$
1,030,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Selected Balance Sheet Information
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
June
30,
|
|
March
31,
|
December 31,
|
|
|
2012
|
|
2012
|
2012
|
|
2012
|
2011
|
Selected
|
|
|
|
|
|
|
|
|
Balance
Sheet
|
Days sales
outstanding1
|
39.9
|
|
41.7
|
41.9
|
|
42.7
|
41.0
|
Information:
|
Inventory
turns 2
|
1.8
|
|
1.7
|
1.8
|
|
1.8
|
1.8
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
Twelve
Months Ended
|
|
December 31,
|
December 31,
|
|
2012
|
2011
|
Operating:
|
Cash
Flows from Operating Activities:
|
|
|
|
Net
income
|
$
178,287
|
$
161,754
|
|
Non-cash
charges
|
64,408
|
68,441
|
|
Changes in
assets and liabilities
|
2,263
|
6,512
|
|
Tax
benefit from share-based compensation arrangements
|
(14,676)
|
(16,007)
|
|
Net cash
provided by operating activities
|
230,282
|
220,700
|
Investing:
|
Cash
Flows from Investing Activities:
|
|
|
|
Purchases
of property and equipment
|
(65,492)
|
(52,464)
|
|
Proceeds
from disposition of pharmaceutical product lines
|
3,000
|
3,000
|
|
Proceeds
from sale of property and equipment
|
45
|
225
|
|
Acquisitions of intangible assets and businesses, net
of cash acquired
|
(3,558)
|
(47,757)
|
|
Net cash
used by investing activities
|
(66,005)
|
(96,996)
|
Financing:
|
Cash
Flows from Financing Activities:
|
|
|
|
(Repayment) borrowings on revolving credit
facilities, net
|
(31,000)
|
113,903
|
|
Payment of
notes payable
|
(917)
|
(863)
|
|
Repurchases of common stock
|
(132,268)
|
(255,505)
|
|
Proceeds
from the exercise of stock options and employee stock purchase
plans
|
24,166
|
28,801
|
|
Tax
benefit from share-based compensation arrangements
|
14,676
|
16,007
|
|
Net cash
used by financing activities
|
(125,343)
|
(97,657)
|
|
Net effect
of changes in exchange rates on cash
|
1,157
|
933
|
|
Net
increase in cash and cash equivalents
|
40,091
|
26,980
|
|
Cash and
cash equivalents, beginning of period
|
183,895
|
156,915
|
|
Cash and
cash equivalents, end of period
|
$
223,986
|
$
183,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Free
Cash Flow1
|
Amounts
in thousands (Unaudited)
|
|
|
|
Twelve
Months Ended
|
|
|
|
December 31,
|
December 31,
|
|
|
|
2012
|
2011
|
Free
Cash
|
|
|
|
|
Flow:
|
Net cash
provided by operating activities
|
|
$
230,282
|
$
220,700
|
|
Royalty
prepayment to obtain exclusive patent rights
|
|
6,250
|
-
|
|
Financing
cash flows attributable to tax benefits from
share-based compensation arrangements
|
|
14,676
|
16,007
|
|
Purchases
of property and equipment
|
|
(65,492)
|
(52,464)
|
|
Free
cash flow
|
|
$
185,716
|
$
184,243
|
1 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.
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Common
Stock Repurchases
|
Amounts
in thousands except per share data (Unaudited)
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
|
December 31,
|
December 31,
|
|
December 31,
|
December 31,
|
|
|
2012
|
2011
|
|
2012
|
2011
|
|
Share
repurchases during the period
|
436
|
1,236
|
|
1,474
|
3,419
|
|
Average
price paid per share
|
$
94.24
|
$
72.43
|
|
$
89.72
|
$
74.74
|
|
|
|
|
|
|
|
|
Shares
remaining under repurchase authorization as of December 31, 2012
totaled
2,913,520.
|
|
|
|
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.
|
SOURCE IDEXX Laboratories, Inc.