WESTBROOK, Maine, Feb. 2, 2021 /PRNewswire/ --
- Achieves fourth quarter reported revenue growth of 19% and
organic growth of 17%, driven by CAG Diagnostics recurring revenue
reported growth of 23% and organic growth of 21%
- High revenue growth supported by sustained strong global
trends in pet healthcare
- Delivers full year EPS of $6.71, an increase of 37% on a reported basis and
31% on a comparable constant currency basis
- Strong full year EPS results supported by operating margin
expansion of 270 basis points on a reported basis and 340
basis points on a comparable constant currency basis
- Provides initial outlook for 2021 revenue of $3,065 million - $3,120
million, reflecting reported growth of 13% - 15.5% and
organic growth of 11.5% - 13.5%
- Estimates 2021 EPS of $7.39 - $7.71, an increase of 10% - 14% as reported and
15% - 20% on a comparable constant currency basis
IDEXX Laboratories, Inc. (NASDAQ: IDXX), today announced fourth
quarter and full year results, as well as market condition
updates.
Fourth Quarter and Full Year Results
The Company reports revenues of $721
million for the fourth quarter of 2020, an increase of 19%
compared to the prior year period on a reported basis and 17% on an
organic basis. Fourth quarter results were driven by continued high
gains in Companion Animal Group ("CAG") Diagnostics recurring
revenue globally, as well as sustained strong growth in the
Company's Livestock, Poultry and Dairy ("LPD") business. Fourth
quarter growth also benefited by 1.5% from revenues associated with
OPTI Medical Systems COVID-19 human PCR testing. Overall revenue
gains were moderated by COVID-19 pandemic-related impacts that
constrained new CAG instrument placement levels and non-compliance
related testing in the Company's Water business.
Earnings per diluted share ("EPS") were $2.01 for the fourth quarter, an increase of 93%
as reported, including a one-time positive impact of $0.25 per share related to the enactment of tax
reform in Switzerland and
$0.13 per share in share-based
compensation tax benefits.
Revenue for the full year of $2,707
million increased 12% on a reported and organic basis,
driven by 16% reported and 15% organic growth in CAG Diagnostics
recurring revenue.
For the full year 2020, EPS of $6.71 increased 37% on a reported basis and 31%
on a comparable constant currency basis. EPS results benefited from
strong CAG Diagnostics recurring revenue growth and operating
expense leverage, resulting in 270 basis points of operating margin
improvement on a reported basis, and 340 basis points on a
comparable constant currency basis. Further information and a
reconciliation of non-GAAP financial measures, such as comparable
constant currency growth measures, are provided in the Company's
footnotes.
The Company expects full year 2021 revenue growth of 13% - 15.5%
on a reported basis and 11.5% - 13.5% revenue growth on
an organic basis. The Company also expects EPS of $7.39 - $7.71,
reflecting a targeted 50 - 100 basis points of comparable constant
currency operating margin improvement, building on strong 2020
performance.
"IDEXX had an exceptional finish to 2020, supported by continued
robust global market trends in companion animal healthcare and
outstanding execution by the IDEXX organization globally.
Performance was strong across our major geographic markets,
enabling us to deliver 12% organic growth overall and 31% EPS
growth on a comparable constant currency basis for the full year,
above our long-term goals. The IDEXX team stayed focused on serving
our customers in an exceptional way through the COVID-19 pandemic.
The team's high level of engagement and focus on execution enabled
us to be well-positioned to benefit from a strong market recovery
in pet healthcare. We are planning to drive continued strong growth
in our companion animal business, as reflected in our initial
financial 2021 outlook, leveraging our expanded global commercial
capability and unique innovations, which support higher standards
of healthcare for pets," said Jay
Mazelsky, the Company's President and Chief Executive
Officer.
Companion Animal Diagnostics Trends Update
Companion animal healthcare markets benefited from continued
positive trends in the fourth quarter globally. U.S. veterinary
practices experienced sustained strong clinical demand benefiting
from high growth in both non-wellness and wellness clinical visits.
In the U.S., same-store clinical visit growth reached 8% in the
fourth quarter, including 7% growth in non-wellness visits and
sustained 10% growth in wellness visits. Clinical visits continued
to benefit from an increase in new clinical patient visits. Revenue
growth at U.S. veterinary practices was 12% in the fourth quarter,
driven by growth in service and diagnostics revenues, reflecting
increased frequency and utilization of diagnostics. Additional U.S.
companion animal practice weekly key metrics are available in the
Q4 2020 Earnings Snapshot accessible on the IDEXX website,
www.idexx.com/investors.
Global companion animal market trends have supported continued
high demand for CAG diagnostic products and services. Global CAG
Diagnostics recurring revenues sustained their growth at high
levels through the fourth quarter with strength across
regions.
Fourth Quarter Performance Highlights
Companion Animal Group
The Companion Animal Group generated 19% reported and 17%
organic revenue growth for the fourth quarter. CAG Diagnostics
recurring revenue growth remained very strong at 23% reported and
21% organic. Growth was high across IDEXX's major modalities
globally reflecting continued strong growth in clinical visits and
expanded utilization of diagnostic products and services. Overall
CAG revenue growth was constrained by a 10% organic decline in
IDEXX VetLab instrument revenues, impacted by COVID-19 related
restrictions on access to veterinary practices.
- IDEXX VetLab® consumables generated 27% reported and 25%
organic revenue growth, supported by benefits from diagnostics
utilization growth, expansion of our premium instrument installed
base, and moderate net price gains.
- Reference laboratory diagnostic and consulting services
generated 21% reported and 19% organic revenue growth, led by
continued high organic growth in the U.S. and mid-to-high-teen
growth in international markets. Reference lab gains were supported
by high same-store volume growth, with strong gains across testing
categories.
- Rapid assay products generated revenue growth of 20% on
a reported and organic basis, supported by continued gains in SNAP®
4Dx® Plus Tests, feline and specialty rapid assay test volumes,
benefiting from strong overall market conditions including high
demand for both wellness and non-wellness testing.
Veterinary software, services and diagnostic imaging systems
revenue growth increased 1% on a reported and organic basis,
supported by double-digit growth in subscription-based service
revenues and strong growth in new veterinary software system
placements. Overall growth was moderated by declines in diagnostic
imaging systems placements compared to strong prior year placement
levels.
Water
Water achieved revenue growth of 1% on a reported basis and
modest revenue growth on an organic basis, reflecting continued
improvements in compliance testing volumes which were offset by
COVID-19 pandemic-related pressures on non-compliance testing
volumes.
Livestock, Poultry and Dairy ("LPD")
LPD revenue increased 16% on a reported basis and 13% on an
organic basis. LPD results were supported by continued strength in
core swine testing volumes and African Swine Fever diagnostic
testing programs in Asia. These
gains were moderated by lower herd health screening levels,
compared to strong prior year results.
Gross Profit and Operating Profit
Gross profits increased 24%, and gross margins of 56.8%
increased 210 basis points compared to prior year results on a
reported basis and 270 basis points on a constant currency basis.
Gross margin results reflected reference laboratory productivity
gains on high revenue growth, favorable mix from strong consumable
revenue and lower instrument revenue, as well as benefits from
moderate price gains.
Operating margin was 25.7% in the quarter, 660 basis points
higher than the prior year period results on a reported basis and
460 basis points on a comparable constant currency basis, excluding
the prior year negative impact of the CEO transition charges.
Operating expenses increased 4% on a reported basis, and 10% on a
comparable constant currency basis, excluding the CEO transition
charges. Operating expense growth in the fourth quarter reflects
higher employee incentive and healthcare costs, R&D
investments, and global commercial capability enhancements.
2021 Growth and Financial Performance Outlook
The following table provides the company's initial estimates for
annual key financial metrics in 2021:
Amounts in millions except per share data and
percentages
Growth and
Financial Performance Outlook
|
|
2021
|
|
|
|
|
|
|
|
Revenue
|
|
$3,065
|
-
|
$3,120
|
|
Reported
growth
|
|
13%
|
-
|
15.5%
|
|
Organic
growth
|
|
11.5%
|
-
|
13.5%
|
|
CAG Diagnostics
Recurring Revenue Growth
|
|
|
|
|
|
Reported
growth
|
|
13.5%
|
-
|
16%
|
|
Organic
growth
|
|
12%
|
-
|
14.5%
|
|
Operating
Margin
|
|
27.3%
|
-
|
27.8%
|
|
Operating margin
expansion
|
|
170
|
-
|
220
bps
|
|
Comparable
constant currency margin expansion
|
|
50
|
-
|
100
bps
|
|
EPS
|
|
$7.39
|
-
|
$7.71
|
|
Reported
growth
|
|
10%
|
-
|
14%
|
|
Comparable
constant currency growth
|
|
15%
|
-
|
20%
|
|
Other Key
Metrics
|
|
|
|
|
|
Net interest
expense
|
|
$30
|
-
|
$31
|
|
Share-based
compensation tax benefit
|
|
$7.5
|
-
|
$9.5
|
|
Share-based
compensation tax rate benefit
|
|
~ 1 %
|
|
Effective tax
rate
|
|
20%
|
-
|
21%
|
|
Share-based
compensation EPS impact
|
|
$0.09
|
-
|
$0.11
|
|
Change in average
shares outstanding
|
|
0%
|
-
|
(0.5)%
|
|
Operating Cash
Flow
|
|
100% - 110% of net
income
|
|
Free Cash
Flow
|
|
80% - 90% of net
income
|
|
Capital
Expenditures
|
|
$120 -
$140
|
|
The following table outlines estimates of foreign currency
exchange rate impacts, net of foreign currency hedging
transactions, and foreign currency exchange rate assumptions
reflected in the above financial performance outlook for 2021.
Estimated Foreign
Currency Exchange Rates and Impacts
|
|
2021
|
|
|
|
|
|
|
|
Revenue growth rate
impact
|
|
1.5%
|
-
|
2.0%
|
|
CAG Diagnostics
recurring revenue growth rate impact
|
|
~
1.5%
|
|
Operating margin
growth impact
|
|
~ 10
bps
|
|
EPS impact
|
|
~
$0.14
|
|
EPS growth
impact
|
|
~
2.0%
|
|
|
|
|
|
|
|
Foreign Currency
Exchange Rate Assumptions
|
|
|
|
|
|
In U.S.
dollars
|
|
|
|
|
|
euro
|
|
$1.19
|
|
British
pound
|
|
$1.34
|
|
Canadian
dollar
|
|
$0.77
|
|
Australian
dollar
|
|
$0.76
|
|
Relative to the U.S.
dollar
|
|
|
|
|
|
Japanese yen
|
|
¥105.00
|
|
Chinese
renminbi
|
|
¥6.57
|
|
Brazilian
real
|
|
R$5.36
|
|
|
|
|
|
|
|
|
Conference Call and Webcast Information
IDEXX Laboratories, Inc. will host a conference call today at
8:30 a.m. (Eastern) to discuss its
fourth quarter and full year 2020 results and management's outlook.
To participate in the conference call, dial 1-888-771-4371 or
1-847-585-4405 and reference access code 50070596. Individuals can
access a live webcast of the conference call through a link on the
IDEXX website, www.idexx.com/investors. An archived edition of the
webcast will be available after 1:00
p.m. (Eastern) on that day via the same link and will remain
available for one year.
About IDEXX Laboratories, Inc.
IDEXX Laboratories, Inc. is a member of the S&P 500® Index
and is a leader in pet healthcare innovation, offering diagnostic
and software products and services that deliver solutions and
insights to practicing veterinarians around the world. 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 and
point-of-care and laboratory diagnostics for human medicine.
Headquartered in Maine, IDEXX
employs more than 9,000 people and offers products to customers in
over 175 countries. For more information about IDEXX, visit:
www.idexx.com.
Note Regarding Forward-Looking
Statements
This earnings 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 are included above under "Fourth Quarter
and Full Year Results", "2021 Growth and Financial Performance
Outlook", and elsewhere and can be identified by the use of words
such as "expects", "may", "anticipates", "intends", "would",
"will", "plans", "believes", "estimates", "projected", "should",
and similar words and expressions. Our forward-looking statements
include statements relating to revenue growth and EPS outlooks;
operating and free cash flow forecast; projected impact of foreign
currency exchange rates; projected operating margins and expenses
and capital expenditures; projected tax, tax rate and EPS benefits
from share-based compensation arrangements; and projected effective
tax rates, reduction of average shares outstanding and net interest
expense. These statements are intended to provide management's
expectation of future events as of the date of this earnings
release; are based on management's estimates, projections, beliefs
and assumptions as of the date of this earnings release; and are
not guarantees of future performance. These forward-looking
statements involve known and unknown risks and uncertainties that
may cause the Company's actual results, levels of activity,
performance or achievements to be materially different from those
expressed or implied by these forward-looking statements. These
risks and uncertainties include, among other things, the matters
described under the headings "Business," "Risk Factors," "Legal
Proceedings," "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and "Quantitative and
Qualitative Disclosures About Market Risk" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2019 and in the corresponding
sections of the Company's Quarterly Report on Form 10-Q for the
quarters ended March 31, 2020,
June 30, 2020 and September 30, 2020, as well as those described
from time to time in the Company's other filings with the U.S.
Securities and Exchange Commission available at www.sec.gov. The
Company specifically disclaims any obligation to publicly update
any forward-looking statement, whether as a result of new
information, future events or otherwise.
Statement Regarding Non-GAAP Financial Measures
The following defines terms and conventions and provides
reconciliations regarding certain measures used in this earnings
release and/or the accompanying earnings conference call that are
not required by, or presented in accordance with, generally
accepted accounting principles in the
United States of America ("GAAP"), otherwise referred to as
non-GAAP financial measures. To supplement the Company's
consolidated results presented in accordance with GAAP, the Company
has disclosed non-GAAP financial measures that exclude or adjust
certain items. Management believes these non-GAAP financial
measures provide useful supplemental information for its and
investors' evaluation of the Company's business performance and
liquidity and are useful for period-over-period comparisons of the
performance of the Company's business and its liquidity and to the
performance and liquidity of our peers. While management believes
that these non-GAAP financial measures are useful in evaluating the
Company's business, this information should be considered as
supplemental in nature and should not be considered in isolation or
as a substitute for the related financial information prepared in
accordance with GAAP. In addition, these non-GAAP financial
measures may not be the same as similarly titled measures reported
by other companies.
Constant currency - Constant currency references are
non-GAAP financial measures which exclude the impact of changes in
foreign currency exchange rates and are consistent with how
management evaluates our performance and comparisons with prior and
future periods. We estimated the net impacts of currency on our
revenue, gross profit, operating profit, and EPS results by
restating results to the average exchange rates or exchange rate
assumptions for the comparative period, which includes adjusting
for the estimated impacts of foreign currency hedging transactions
and certain impacts on our effective tax rates. These
estimated currency changes impacted fourth quarter 2020 results as
follows: increased gross profit growth by 0.6%, decreased
gross margin growth by 60 basis points, increased operating expense
growth by 0.5%, decreased operating profit margin growth by 20
basis points, and increased EPS growth by 1%. Estimated currency
changes impacted full year 2020 results as follows: decreased
operating profit margin growth by 20 basis points, and decreased
EPS growth by 1%. Constant currency revenue growth represents the
percentage change in revenue during the applicable period, as
compared to the prior year period, excluding the impact of changes
in foreign currency exchange rates. See the supplementary analysis
of results below for revenue percentage change from currency for
the three months and year ended December 31,
2020 and refer to the Growth and Financial Performance
Outlook section of this press release for estimated foreign
currency exchange rate impacts on 2021 projections and
estimates.
Growth and organic revenue growth - All references to growth and
organic growth refer to growth compared to the equivalent prior
year period unless specifically noted. Organic revenue growth is a
non-GAAP financial measure that excludes the impact of changes in
foreign currency exchange rates and revenue from business
acquisitions. Management believes that reporting organic revenue
growth provides useful information to investors by facilitating
easier comparisons of our revenue performance with prior and future
periods and to the performance of our peers. See the supplementary
analysis of results below for a reconciliation of reported revenue
growth to organic revenue growth for the three and twelve months
ended December 31, 2020. See
the constant currency note above for the impacts of estimated
currency changes to fourth quarter and full year 2020, as well
estimated full year 2021 organic revenue growth for the Company and
CAG Diagnostics recurring revenue. The percentage change in
revenue resulting from acquisitions represents incremental revenues
attributable to business acquisitions that have occurred since the
beginning of the prior year period. Revenue from acquisitions is
expected to have an immaterial impact on projected full year 2021
revenue growth and CAG Diagnostics recurring revenue growth.
Comparable constant currency operating expense growth, operating
profit growth, and operating margin gain (or growth) -
Comparable constant currency operating expense growth, operating
profit growth, and operating profit margin gain (or growth) are
non-GAAP financial measures and exclude the impact of changes in
foreign currency exchange rates and non-recurring or unusual items
(if any). Management believes that reporting comparable constant
currency operating expense growth, operating profit growth, and
operating margin gain (or growth) provides useful information to
investors because it enables better period-over-period comparisons
of the fundamental financial results by excluding items that vary
independent of performance and provides greater transparency to
investors regarding key metrics used by management. Comparable
constant currency operating expense growth, operating profit
growth, and operating margin gain (or growth) should be
considered in addition to, and not as replacements of or superior
measures to, operating expense growth, operating profit growth, and
operating margin gain reported in accordance with GAAP.
The reconciliation of these non-GAAP financial measures is as
follows:
|
|
Three Months
Ended
|
Year-over-Year
|
|
Twelve Months
Ended
|
Year-over-Year
|
|
|
December
31,
|
|
December
31,
|
Change
|
|
December
31,
|
|
December
31,
|
Change
|
Dollar amounts in
thousands
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Operating Expenses
(as reported)
|
|
$
|
224,407
|
|
|
$
|
215,518
|
|
4
|
%
|
|
$
|
876,516
|
|
|
$
|
812,703
|
|
8
|
%
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
CEO transition
charges
|
|
—
|
|
|
(13,400)
|
|
|
|
—
|
|
|
(13,400)
|
|
|
Expired royalty
litigation matter
|
|
—
|
|
|
—
|
|
|
|
(27,500)
|
|
|
—
|
|
|
Change from
currency
|
|
(1,111)
|
|
|
—
|
|
|
|
2,827
|
|
|
—
|
|
|
Comparable
constant currency operating expense growth
|
|
$
|
223,296
|
|
|
$
|
202,118
|
|
10
|
%
|
|
$
|
851,843
|
|
|
$
|
799,303
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations (as reported)
|
|
$
|
185,095
|
|
|
$
|
115,631
|
|
60
|
%
|
|
$
|
694,524
|
|
|
$
|
552,846
|
|
26
|
%
|
Operating
margin
|
|
25.7
|
%
|
|
19.1
|
%
|
660
|
bps
|
|
25.7
|
%
|
|
23.0
|
%
|
270
|
bps
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
CEO transition
charges
|
|
—
|
|
|
13,400
|
|
|
|
—
|
|
|
13,400
|
|
|
Expired royalty
litigation matter
|
|
—
|
|
|
—
|
|
|
|
27,500
|
|
|
—
|
|
|
Change from
currency
|
|
(865)
|
|
|
—
|
|
|
|
7,097
|
|
|
—
|
|
|
Comparable
constant currency income from operations growth
|
|
$
|
184,230
|
|
|
$
|
129,031
|
|
43
|
%
|
|
$
|
729,121
|
|
|
$
|
566,246
|
|
29
|
%
|
Comparable
constant currency operating margin expansion
|
|
25.9
|
%
|
|
21.3
|
%
|
460
|
bps
|
|
27.0
|
%
|
|
23.5
|
%
|
340
|
bps
|
Amounts presented
may not recalculate due to rounding.
|
These impacts and those described in the constant currency note
above reconcile reported operating expense growth, operating profit
growth, and operating margin gain (including projected 2021
operating margin expansion) to comparable constant currency
operating expense growth, operating profit growth, and operating
margin gain for the Company.
Comparable constant currency EPS growth - Comparable
constant currency EPS growth is a non-GAAP financial measure that
excludes the impact of changes in foreign currency exchange rates,
the tax benefits of share-based compensation activity under ASU
2016-09 and non-recurring or unusual items (if any). Management
believes comparable constant currency EPS growth is a more useful
way to measure the Company's business performance than EPS growth
because it enables better period-over-period comparisons of the
fundamental financial results by excluding items that vary
independent of performance and provides greater transparency to
investors regarding a key metric used by management.
The reconciliation of this non-GAAP financial measure is as
follows:
|
|
Three Months
Ended
|
Year-over-Year
|
|
Twelve Months
Ended
|
Year-over-Year
|
|
|
December
31,
|
|
December
31,
|
Growth
|
|
December
31,
|
|
December
31,
|
Growth
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Earnings per share
(diluted)
|
|
$
|
2.01
|
|
|
$
|
1.04
|
|
93
|
%
|
|
$
|
6.71
|
|
|
$
|
4.89
|
|
37
|
%
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation activity
|
|
(0.13)
|
|
|
(0.05)
|
|
|
|
(0.45)
|
|
|
(0.22)
|
|
|
CEO transition
charges
|
|
—
|
|
|
0.14
|
|
|
|
—
|
|
|
0.14
|
|
|
Expired royalty
litigation matter
|
|
—
|
|
|
—
|
|
|
|
0.24
|
|
|
—
|
|
|
Swiss tax reform
impact
|
|
(0.25)
|
|
|
—
|
|
|
|
(0.25)
|
|
|
—
|
|
|
Change from
currency
|
|
(0.01)
|
|
|
—
|
|
|
|
0.06
|
|
|
—
|
|
|
Comparable
constant currency EPS growth
|
|
1.62
|
|
|
1.13
|
|
43
|
%
|
|
6.31
|
|
|
4.81
|
|
31
|
%
|
Amounts presented
may not recalculate due to rounding.
|
These impacts and those described in the constant currency note
above reconcile reported EPS growth (including projected 2021
reported EPS growth) to comparable constant currency EPS growth for
the Company.
Free cash flow - Free cash flow is a non-GAAP financial
measure and means, with respect to a measurement period, the cash
generated from operations during that period, reduced by the
Company's investments in property and equipment. Management
believes 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 property and
equipment that are required to operate the business. See the
supplementary analysis of results below for our calculation of free
cash flow for the years ended December 31,
2020 and 2019. To estimate projected 2021 free cash
flow, we have deducted projected purchases of property and
equipment (also referred to as capital expenditures) of
approximately $120 - $140
million.
Debt to Adjusted EBITDA (Leverage Ratios) - Adjusted EBITDA,
gross debt, and net debt are non-GAAP financial measures.
Adjusted EBITDA is a non-GAAP financial measure of earnings before
interest, taxes, depreciation, amortization, non-recurring
transaction
expenses incurred in connection with acquisitions, share-based
compensation expense, and certain other non-cash losses and
charges. Management believes that reporting Adjusted EBITDA,
gross debt and net debt in the Debt to Adjusted EBITDA ratios
provides
supplemental analysis to help investors further evaluate the
Company's business performance and available borrowing capacity
under
the Company's credit facility. For further information on
how Adjusted EBITDA and the Debt to Adjusted EBITDA Ratios are
calculated, see the Company's Quarterly Report on Form 10-Q for the
quarter ended September 30, 2020.
After-Tax Return on Invested Capital, Excluding Cash and
Investments ("ROIC"): After-Tax Return on Invested Capital,
Excluding Cash and Investments, is a non-GAAP financial measure.
After-tax return on invested capital, excluding cash and
investments, represents our after-tax income from operations,
divided by our average invested capital, excluding cash and
investments, using beginning and ending balance sheet values.
Management believes that reporting ROIC provides useful information
to investors for evaluating the efficiency and effectiveness of our
use of capital. See the supplementary table below for
reconciliation of this non-GAAP financial measure.
Notes and Definitions
CEO transition charges - Effective November 1, 2019, Jonathan W. Ayers, our former Chairman of the
Board, President and Chief Executive Officer, stepped down as
Chairman of our Board, ceased to be an employee of the Company and
transitioned to the role of external Senior Advisor to the
Company. Mr. Ayers continues to serve as a member of our
Board. Pursuant to a mutual separation agreement between the
Company and Mr. Ayers, we recognized a charge to operating income
of approximately $13.4 million in the
fourth quarter of 2019, representing the cost of severance payments
and an acceleration of the cost of his equity awards, which was
offset by a reduction to our provision for income taxes of
approximately $1.2 million, resulting
in a total charge to net income of approximately $12.2 million, net of tax impacts.
Swiss tax reform impact - A one-time positive income tax impact
related to the enactment of tax reform in Switzerland reflected in the fourth quarter of
2020, when the Company recorded an approximately $22 million deferred tax asset related to
transitional benefits.
Expired royalty litigation matter - The Company
established an accrual of $27.5
million in the third quarter of 2020 related to an ongoing
matter involving an alleged breach of contract for underpayment of
royalty payments made from 2004 through 2017 under an expired
patent license agreement. The accrual amount represents the amount
of a possible loss that we have determined to be probable and
estimable, and the actual cost of resolving this matter may be
higher or lower than the amount accrued.
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
Condensed
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,
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue:
|
|
Revenue
|
|
$720,938
|
|
|
$605,446
|
|
|
$2,706,655
|
|
|
$2,406,908
|
|
Expenses and
Income:
|
|
Cost of
revenue
|
|
311,436
|
|
|
274,297
|
|
|
1,135,615
|
|
|
1,041,359
|
|
|
|
Gross
profit
|
|
409,502
|
|
|
331,149
|
|
|
1,571,040
|
|
|
1,365,549
|
|
|
|
Sales and
marketing
|
|
115,909
|
|
|
105,694
|
|
|
434,435
|
|
|
418,193
|
|
|
|
General and
administrative
|
|
69,721
|
|
|
74,664
|
|
|
300,832
|
|
|
261,317
|
|
|
|
Research and
development
|
|
38,777
|
|
|
35,160
|
|
|
141,249
|
|
|
133,193
|
|
|
|
Income from
operations
|
|
185,095
|
|
|
115,631
|
|
|
694,524
|
|
|
552,846
|
|
|
|
Interest expense,
net
|
|
(7,659)
|
|
|
(7,125)
|
|
|
(32,539)
|
|
|
(30,628)
|
|
|
|
Income before
provision for income taxes
|
|
177,436
|
|
|
108,506
|
|
|
661,985
|
|
|
522,218
|
|
|
|
Provision for income
taxes
|
|
2,478
|
|
|
17,962
|
|
|
79,854
|
|
|
94,426
|
|
Net
Income:
|
|
Net income
|
|
174,958
|
|
|
90,544
|
|
|
582,131
|
|
|
427,792
|
|
|
|
Less: Noncontrolling
interest in subsidiary's
earnings
|
|
168
|
|
|
48
|
|
|
355
|
|
|
72
|
|
|
|
Net income
attributable to stockholders
|
|
$174,790
|
|
|
$90,496
|
|
|
$581,776
|
|
|
$427,720
|
|
|
|
Earnings per share:
Basic
|
|
$2.04
|
|
|
$1.05
|
|
|
$6.82
|
|
|
$4.97
|
|
|
|
Earnings per share:
Diluted
|
|
$2.01
|
|
|
$1.04
|
|
|
$6.71
|
|
|
$4.89
|
|
|
|
Shares outstanding:
Basic
|
|
85,490
|
|
|
85,848
|
|
|
85,342
|
|
|
86,115
|
|
|
|
Shares outstanding:
Diluted
|
|
86,904
|
|
|
87,212
|
|
|
86,722
|
|
|
87,542
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
Selected Operating
Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating
Ratios
|
|
Gross
profit
|
|
56.8
|
%
|
|
54.7
|
%
|
|
58.0
|
%
|
|
56.7
|
%
|
(as a percentage
of revenue):
|
|
Sales, marketing,
general and administrative
expense
|
|
25.7
|
%
|
|
29.8
|
%
|
|
27.2
|
%
|
|
28.2
|
%
|
|
|
Research and
development expense
|
|
5.4
|
%
|
|
5.8
|
%
|
|
5.2
|
%
|
|
5.5
|
%
|
|
|
Income from
operations1
|
|
25.7
|
%
|
|
19.1
|
%
|
|
25.7
|
%
|
|
23.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
2020
|
|
Revenue
|
|
2019
|
|
Revenue
|
Revenue:
|
|
CAG
|
|
$629,652
|
|
|
|
|
$529,786
|
|
|
|
|
|
Water
|
|
33,088
|
|
|
|
|
32,870
|
|
|
|
|
|
LPD
|
|
42,476
|
|
|
|
|
36,655
|
|
|
|
|
|
Other
|
|
15,722
|
|
|
|
|
6,135
|
|
|
|
|
|
Total
|
|
$720,938
|
|
|
|
|
$605,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
CAG
|
|
$351,079
|
|
|
55.8
|
%
|
|
$283,525
|
|
|
53.5
|
%
|
|
|
Water
|
|
22,889
|
|
|
69.2
|
%
|
|
23,549
|
|
|
71.6
|
%
|
|
|
LPD
|
|
25,283
|
|
|
59.5
|
%
|
|
21,607
|
|
|
58.9
|
%
|
|
|
Other
|
|
10,251
|
|
|
65.2
|
%
|
|
2,468
|
|
|
40.2
|
%
|
|
|
Total
|
|
$409,502
|
|
|
56.8
|
%
|
|
$331,149
|
|
|
54.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations:
|
|
CAG
|
|
$148,825
|
|
|
23.6
|
%
|
|
$92,005
|
|
|
17.4
|
%
|
|
|
Water
|
|
15,484
|
|
|
46.8
|
%
|
|
14,456
|
|
|
44.0
|
%
|
|
|
LPD
|
|
11,591
|
|
|
27.3
|
%
|
|
7,028
|
|
|
19.2
|
%
|
|
|
Other
|
|
9,195
|
|
|
58.5
|
%
|
|
2,142
|
|
|
34.9
|
%
|
|
|
Total
|
|
$185,095
|
|
|
25.7
|
%
|
|
$115,631
|
|
|
19.1
|
%
|
|
|
|
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
December
31,
|
|
Percent
of
|
|
December
31,
|
|
Percent
of
|
|
|
|
|
2020
|
|
Revenue
|
|
2019
|
|
Revenue
|
Revenue:
|
|
CAG
|
|
$2,385,765
|
|
|
|
|
$2,119,183
|
|
|
|
|
|
Water
|
|
128,625
|
|
|
|
|
132,850
|
|
|
|
|
|
LPD
|
|
145,845
|
|
|
|
|
132,635
|
|
|
|
|
|
Other
|
|
46,420
|
|
|
|
|
22,240
|
|
|
|
|
|
Total
|
|
$2,706,655
|
|
|
|
|
$2,406,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
CAG
|
|
$1,363,186
|
|
|
57.1
|
%
|
|
$1,181,007
|
|
|
55.7
|
%
|
|
|
Water
|
|
90,380
|
|
|
70.3
|
%
|
|
95,946
|
|
|
72.2
|
%
|
|
|
LPD
|
|
89,202
|
|
|
61.2
|
%
|
|
78,504
|
|
|
59.2
|
%
|
|
|
Other
|
|
28,272
|
|
|
60.9
|
%
|
|
10,092
|
|
|
45.4
|
%
|
|
|
Total
|
|
$1,571,040
|
|
|
58.0
|
%
|
|
$1,365,549
|
|
|
56.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations:
|
|
CAG
|
|
$574,887
|
|
|
24.1
|
%
|
|
$462,605
|
|
|
21.8
|
%
|
|
|
Water
|
|
58,867
|
|
|
45.8
|
%
|
|
61,923
|
|
|
46.6
|
%
|
|
|
LPD
|
|
40,008
|
|
|
27.4
|
%
|
|
24,735
|
|
|
18.6
|
%
|
|
|
Other
|
|
20,762
|
|
|
44.7
|
%
|
|
3,583
|
|
|
16.1
|
%
|
|
|
Total
|
|
$694,524
|
|
|
25.7
|
%
|
|
$552,846
|
|
|
23.0
|
%
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Revenues and
Revenue Growth Analysis by Product and Service Categories and by
Domestic and International Markets
|
Amounts in
thousands (Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Percentage
|
|
Percentage
|
|
Organic
|
|
|
December
31,
|
|
December
31,
|
|
Dollar
|
|
Revenue
|
|
Change
from
|
|
Change
from
|
|
Revenue
|
Net
Revenue
|
|
2020
|
|
2019
|
|
Change
|
|
Growth1
|
|
Currency
|
|
Acquisitions
|
|
Growth1
|
CAG
|
|
$629,652
|
|
|
$529,786
|
|
|
$99,866
|
|
|
18.9
|
%
|
|
1.8
|
%
|
|
—
|
|
|
17.0
|
%
|
United
States
|
|
405,362
|
|
|
347,563
|
|
|
57,799
|
|
|
16.6
|
%
|
|
—
|
|
|
0.1
|
%
|
|
16.6
|
%
|
International
|
|
224,290
|
|
|
182,223
|
|
|
42,067
|
|
|
23.1
|
%
|
|
5.3
|
%
|
|
—
|
|
|
17.8
|
%
|
Water
|
|
$33,088
|
|
|
$32,870
|
|
|
$218
|
|
|
0.7
|
%
|
|
0.2
|
%
|
|
—
|
|
|
0.4
|
%
|
United
States
|
|
14,573
|
|
|
14,516
|
|
|
57
|
|
|
0.4
|
%
|
|
—
|
|
|
—
|
|
|
0.4
|
%
|
International
|
|
18,515
|
|
|
18,354
|
|
|
161
|
|
|
0.9
|
%
|
|
0.4
|
%
|
|
—
|
|
|
0.5
|
%
|
LPD
|
|
$42,476
|
|
|
$36,655
|
|
|
$5,821
|
|
|
15.9
|
%
|
|
3.2
|
%
|
|
—
|
|
|
12.7
|
%
|
United
States
|
|
3,730
|
|
|
4,009
|
|
|
(279)
|
|
|
(7.0)
|
%
|
|
—
|
|
|
—
|
|
|
(7.0)
|
%
|
International
|
|
38,746
|
|
|
32,646
|
|
|
6,100
|
|
|
18.7
|
%
|
|
3.7
|
%
|
|
—
|
|
|
15.0
|
%
|
Other
|
|
$15,722
|
|
|
$6,135
|
|
|
$9,587
|
|
|
156.2
|
%
|
|
—
|
|
|
—
|
|
|
156.2
|
%
|
Total
Company
|
|
$720,938
|
|
|
$605,446
|
|
|
$115,492
|
|
|
19.1
|
%
|
|
1.8
|
%
|
|
—
|
|
|
17.2
|
%
|
United
States
|
|
433,607
|
|
|
368,169
|
|
|
65,438
|
|
|
17.8
|
%
|
|
—
|
|
|
0.1
|
%
|
|
17.7
|
%
|
International
|
|
287,331
|
|
|
237,277
|
|
|
50,054
|
|
|
21.1
|
%
|
|
4.6
|
%
|
|
—
|
|
|
16.5
|
%
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Percentage
|
|
Percentage
|
|
Organic
|
|
|
December
31,
|
|
December
31,
|
|
Dollar
|
|
Revenue
|
|
Change
from
|
|
Change
from
|
|
Revenue
|
Net CAG
Revenue
|
|
2020
|
|
2019
|
|
Change
|
|
Growth1
|
|
Currency
|
|
Acquisitions
|
|
Growth1
|
CAG Diagnostics
recurring revenue:
|
|
$548,244
|
|
|
$446,133
|
|
|
$102,111
|
|
|
22.9
|
%
|
|
1.9
|
%
|
|
0.1
|
%
|
|
20.9
|
%
|
IDEXX VetLab
consumables
|
|
220,997
|
|
|
173,714
|
|
|
47,283
|
|
|
27.2
|
%
|
|
2.4
|
%
|
|
—
|
|
|
24.8
|
%
|
Rapid assay
products
|
|
60,337
|
|
|
50,183
|
|
|
10,154
|
|
|
20.2
|
%
|
|
0.6
|
%
|
|
—
|
|
|
19.6
|
%
|
Reference
laboratory diagnostic
and consulting services
|
|
242,968
|
|
|
201,028
|
|
|
41,940
|
|
|
20.9
|
%
|
|
1.8
|
%
|
|
0.1
|
%
|
|
18.9
|
%
|
CAG Diagnostics
services and
accessories
|
|
23,942
|
|
|
21,208
|
|
|
2,734
|
|
|
12.9
|
%
|
|
1.7
|
%
|
|
—
|
|
|
11.2
|
%
|
CAG Diagnostics
capital –
instruments
|
|
36,910
|
|
|
39,802
|
|
|
(2,892)
|
|
|
(7.3)
|
%
|
|
2.5
|
%
|
|
—
|
|
|
(9.7)
|
%
|
Veterinary software,
services and
diagnostic imaging systems
|
|
44,498
|
|
|
43,851
|
|
|
647
|
|
|
1.5
|
%
|
|
0.3
|
%
|
|
—
|
|
|
1.2
|
%
|
Net CAG
revenue
|
|
$629,652
|
|
|
$529,786
|
|
|
$99,866
|
|
|
18.9
|
%
|
|
1.8
|
%
|
|
—
|
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1See
Statements Regarding Non-GAAP Financial Measures, above. Amounts
presented may not recalculate due to rounding.
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Revenues and
Revenue Growth Analysis by Product and Service Categories and by
Domestic and International Markets
|
Amounts in
thousands (Unaudited)
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Percentage
|
|
Percentage
|
|
Organic
|
|
|
December
31,
|
|
December
31,
|
|
Dollar
|
|
Revenue
|
|
Change
from
|
|
Change
from
|
|
Revenue
|
Net
Revenue
|
|
2020
|
|
2019
|
|
Change
|
|
Growth1
|
|
Currency
|
|
Acquisitions
|
|
Growth1
|
CAG
|
|
$2,385,765
|
|
|
$2,119,183
|
|
|
$266,582
|
|
|
12.6
|
%
|
|
0.2
|
%
|
|
0.5
|
%
|
|
11.9
|
%
|
United
States
|
|
1,593,855
|
|
|
1,410,278
|
|
|
183,577
|
|
|
13.0
|
%
|
|
—
|
|
|
0.8
|
%
|
|
12.2
|
%
|
International
|
|
791,910
|
|
|
708,905
|
|
|
83,005
|
|
|
11.7
|
%
|
|
0.5
|
%
|
|
—
|
|
|
11.2
|
%
|
Water
|
|
$128,625
|
|
|
$132,850
|
|
|
($4,225)
|
|
|
(3.2)
|
%
|
|
(1.6)
|
%
|
|
—
|
|
|
(1.6)
|
%
|
United
States
|
|
62,083
|
|
|
62,673
|
|
|
(590)
|
|
|
(0.9)
|
%
|
|
—
|
|
|
—
|
|
|
(0.9)
|
%
|
International
|
|
66,542
|
|
|
70,177
|
|
|
(3,635)
|
|
|
(5.2)
|
%
|
|
(3.0)
|
%
|
|
—
|
|
|
(2.2)
|
%
|
LPD
|
|
$145,845
|
|
|
$132,635
|
|
|
$13,210
|
|
|
10.0
|
%
|
|
(1.1)
|
%
|
|
—
|
|
|
11.0
|
%
|
United
States
|
|
14,533
|
|
|
14,230
|
|
|
303
|
|
|
2.1
|
%
|
|
—
|
|
|
—
|
|
|
2.1
|
%
|
International
|
|
131,312
|
|
|
118,405
|
|
|
12,907
|
|
|
10.9
|
%
|
|
(1.2)
|
%
|
|
—
|
|
|
12.1
|
%
|
Other
|
|
$46,420
|
|
|
$22,240
|
|
|
$24,180
|
|
|
108.7
|
%
|
|
—
|
|
|
—
|
|
|
108.7
|
%
|
Total
Company
|
|
$2,706,655
|
|
|
$2,406,908
|
|
|
$299,747
|
|
|
12.5
|
%
|
|
—
|
|
|
0.5
|
%
|
|
12.0
|
%
|
United
States
|
|
1,691,224
|
|
|
1,495,516
|
|
|
195,708
|
|
|
13.1
|
%
|
|
—
|
|
|
0.8
|
%
|
|
12.3
|
%
|
International
|
|
1,015,431
|
|
|
911,392
|
|
|
104,039
|
|
|
11.4
|
%
|
|
(0.1)
|
%
|
|
—
|
|
|
11.5
|
%
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Percentage
|
|
Percentage
|
|
Organic
|
|
|
December
31,
|
|
December
31,
|
|
Dollar
|
|
Revenue
|
|
Change
from
|
|
Change
from
|
|
Revenue
|
Net CAG
Revenue
|
|
2020
|
|
2019
|
|
Change
|
|
Growth1
|
|
Currency
|
|
Acquisitions
|
|
Growth1
|
CAG Diagnostics
recurring revenue:
|
|
$2,113,839
|
|
|
$1,828,329
|
|
|
$285,510
|
|
|
15.6
|
%
|
|
0.1
|
%
|
|
0.6
|
%
|
|
14.8
|
%
|
IDEXX VetLab
consumables
|
|
824,376
|
|
|
693,360
|
|
|
131,016
|
|
|
18.9
|
%
|
|
0.1
|
%
|
|
—
|
|
|
18.8
|
%
|
Rapid assay
products
|
|
253,018
|
|
|
232,149
|
|
|
20,869
|
|
|
9.0
|
%
|
|
(0.2)
|
%
|
|
—
|
|
|
9.2
|
%
|
Reference
laboratory diagnostic
and consulting services
|
|
946,268
|
|
|
822,497
|
|
|
123,771
|
|
|
15.0
|
%
|
|
0.3
|
%
|
|
1.4
|
%
|
|
13.4
|
%
|
CAG Diagnostics
services and
accessories
|
|
90,177
|
|
|
80,323
|
|
|
9,854
|
|
|
12.3
|
%
|
|
—
|
|
|
—
|
|
|
12.3
|
%
|
CAG Diagnostics
capital –
instruments
|
|
108,950
|
|
|
132,685
|
|
|
(23,735)
|
|
|
(17.9)
|
%
|
|
0.4
|
%
|
|
—
|
|
|
(18.2)
|
%
|
Veterinary software,
services and
diagnostic imaging systems
|
|
162,976
|
|
|
158,169
|
|
|
4,807
|
|
|
3.0
|
%
|
|
—
|
|
|
—
|
|
|
3.0
|
%
|
Net CAG
revenue
|
|
$2,385,765
|
|
|
$2,119,183
|
|
|
$266,582
|
|
|
12.6
|
%
|
|
0.2
|
%
|
|
0.5
|
%
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1See
Statements Regarding Non-GAAP Financial Measures, above. Amounts
presented may not recalculate due to rounding.
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheet
|
Amounts in
thousands (Unaudited)
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2020
|
|
2019
|
Assets:
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$383,928
|
|
|
$90,326
|
|
|
|
Accounts receivable,
net
|
|
331,429
|
|
|
269,312
|
|
|
|
Inventories
|
|
209,873
|
|
|
195,019
|
|
|
|
Other current
assets
|
|
137,508
|
|
|
124,982
|
|
|
|
Total current
assets
|
|
1,062,738
|
|
|
679,639
|
|
|
|
Property and
equipment, net
|
|
555,167
|
|
|
533,845
|
|
|
|
Other long-term
assets, net
|
|
676,656
|
|
|
618,991
|
|
|
|
Total
assets
|
|
$2,294,561
|
|
|
$1,832,475
|
|
Liabilities and
Stockholders'
|
|
|
|
|
|
|
Equity:
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$74,558
|
|
|
$72,172
|
|
|
|
Accrued
liabilities
|
|
415,648
|
|
|
322,938
|
|
|
|
Line of
credit
|
|
—
|
|
|
288,765
|
|
|
|
Current portion of
long-term debt
|
|
49,988
|
|
|
—
|
|
|
|
Deferred
revenue
|
|
42,567
|
|
|
41,462
|
|
|
|
Total current
liabilities
|
|
582,761
|
|
|
725,337
|
|
|
|
Long-term debt, net
of current portion
|
|
858,492
|
|
|
698,910
|
|
|
|
Other long-term
liabilities, net
|
|
220,513
|
|
|
230,403
|
|
|
|
Total long-term
liabilities
|
|
1,079,005
|
|
|
929,313
|
|
|
|
Total stockholders'
equity
|
|
632,088
|
|
|
177,473
|
|
|
|
Noncontrolling
interest
|
|
707
|
|
|
352
|
|
|
|
Total
stockholders' equity
|
|
632,795
|
|
|
177,825
|
|
|
|
Total liabilities
and stockholders' equity
|
|
$2,294,561
|
|
|
$1,832,475
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Select Balance Sheet
Information (Unaudited)
|
|
|
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
|
December 31,
2019
|
Selected Balance
Sheet Information:
|
|
Days sales
outstanding1
|
|
42.2
|
|
|
41.5
|
|
|
44.4
|
|
|
41.5
|
|
|
40.5
|
|
|
|
Inventory
turns2
|
|
2.1
|
|
|
1.9
|
|
|
1.6
|
|
|
1.9
|
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 represent inventory-related cost of product revenue for the
twelve months preceding each quarter-end divided by the average
inventory
balances at the beginning and end of each quarter.
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Condensed
Consolidated Statement of Cash Flows
|
Amounts in
thousands (Unaudited)
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2020
|
|
2019
|
Operating:
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
$582,131
|
|
|
$427,792
|
|
|
|
Non-cash
charges
|
|
97,693
|
|
|
136,335
|
|
|
|
Changes in assets and
liabilities
|
|
(31,761)
|
|
|
(104,969)
|
|
|
|
Net cash provided by
operating activities
|
|
648,063
|
|
|
459,158
|
|
Investing:
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(106,958)
|
|
|
(154,969)
|
|
|
|
Acquisitions of
intangible assets
|
|
(668)
|
|
|
(255)
|
|
|
|
Acquisitions of
businesses and equity investment, net of cash acquired
|
|
(1,750)
|
|
|
(50,304)
|
|
|
|
Net cash (used)
provided by investing activities
|
|
(109,376)
|
|
|
(205,528)
|
|
Financing:
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Repayments on
revolving credit facilities, net
|
|
(289,625)
|
|
|
(110,275)
|
|
|
|
Issuance of senior
notes
|
|
200,000
|
|
|
100,000
|
|
|
|
Debt issuance
costs
|
|
(5,025)
|
|
|
(154)
|
|
|
|
Payment of
acquisition-related contingent considerations
|
|
(1,676)
|
|
|
(2,375)
|
|
|
|
Repurchases of common
stock
|
|
(182,815)
|
|
|
(301,658)
|
|
|
|
Proceeds from
exercises of stock options and employee stock purchase
plans
|
|
51,328
|
|
|
36,106
|
|
|
|
Shares withheld for
statutory tax withholding on restricted stock
|
|
(20,603)
|
|
|
(8,053)
|
|
|
|
Net cash used by
financing activities
|
|
(248,416)
|
|
|
(286,409)
|
|
|
|
Net effect of changes
in exchange rates on cash
|
|
3,331
|
|
|
(689)
|
|
|
|
Net change in cash
and cash equivalents
|
|
293,602
|
|
|
(33,468)
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
90,326
|
|
|
123,794
|
|
|
|
Cash and cash
equivalents, end of period
|
|
$383,928
|
|
|
$90,326
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Free Cash
Flow
|
Amounts in
thousands except per share data (Unaudited)
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2020
|
|
2019
|
Free Cash
Flow:
|
|
Net cash provided by
operating activities
|
|
$648,063
|
|
|
$459,158
|
|
|
|
Investing cash flows
attributable to purchases of property and equipment
|
|
(106,958)
|
|
|
(154,969)
|
|
|
|
Free cash
flow1
|
|
$541,105
|
|
|
$304,189
|
|
|
|
|
|
|
|
|
1See
Statements Regarding Non-GAAP Financial Measures, above.
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
After-Tax Return
on Invested Capital, Excluding Cash and Investments
("ROIC")
|
|
|
|
Amounts in
thousands (Unaudited)
|
|
|
|
Numerator (amounts in
thousands)
|
For the Year
Ended
December 31, 2020
|
|
|
Income from
operations (as reported)
|
$694,524
|
|
|
|
After-tax income from
operations1
|
$610,745
|
|
|
|
Denominator (dollar amounts in
thousands)
|
As of
December 31, 2020
|
|
As of
December 31, 2019
|
Total shareholders'
equity
|
$632,088
|
|
|
$177,473
|
|
Noncontrolling
interest
|
707
|
|
|
352
|
|
Line of
credit
|
—
|
|
|
288,765
|
|
Long-term debt,
current portion
|
49,988
|
|
|
—
|
|
Long-term debt, net
of current portion
|
858,492
|
|
|
698,910
|
|
Deferred income tax
assets
|
(31,549)
|
|
|
(8,100)
|
|
Deferred income tax
liabilities
|
11,707
|
|
|
33,024
|
|
Total invested
capital
|
$1,521,433
|
|
|
$1,190,424
|
|
Less cash
and cash equivalents
|
383,928
|
|
|
90,326
|
|
Total invested
capital, excluding cash and investments
|
$1,137,505
|
|
|
$1,100,098
|
|
Average invested
capital, excluding cash and investments2
|
$1,118,802
|
|
|
|
After-tax return on
invested capital, excluding cash and investments
|
55
|
%
|
|
|
|
|
|
|
1After-tax income from operations
represents income from operations reduced by our reported effective
tax rate.
|
2Average invested capital, excluding
cash and investments, represents the average of the amount of total
invested capital, excluding cash and investments.
|
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,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Shares repurchased in
the open market
|
|
—
|
|
|
532
|
|
|
721
|
|
|
1,215
|
|
Shares acquired
through employee surrender for statutory tax withholding
|
|
27
|
|
|
1
|
|
|
58
|
|
|
39
|
|
Total shares
repurchased
|
|
27
|
|
|
533
|
|
|
779
|
|
|
1,254
|
|
|
|
|
|
|
|
|
|
|
Cost of shares
repurchased in the open market
|
|
$—
|
|
|
$138,640
|
|
|
$179,623
|
|
|
$303,838
|
|
Cost of shares for
employee surrenders
|
|
11,574
|
|
|
205
|
|
|
20,603
|
|
|
8,054
|
|
Total cost of
shares
|
|
$11,574
|
|
|
$138,845
|
|
|
$200,226
|
|
|
$311,892
|
|
|
|
|
|
|
|
|
|
|
Average cost per
share – open market repurchases
|
|
$—
|
|
|
$260.47
|
|
|
$249.20
|
|
|
$249.84
|
|
Average cost per
share – employee surrenders
|
|
$426.73
|
|
|
$251.58
|
|
|
$354.98
|
|
|
$210.10
|
|
Average cost per
share – total
|
|
$426.73
|
|
|
$260.46
|
|
|
$257.08
|
|
|
$248.62
|
|
Contact: John Ravis, Investor
Relations, 1-207-556-8155
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multimedia:http://www.prnewswire.com/news-releases/idexx-laboratories-announces-fourth-quarter-and-full-year-2020-results-301219529.html
SOURCE IDEXX Laboratories, Inc.