- Achieves third quarter revenue growth of 9% reported and 8%
organic, driven by CAG Diagnostics recurring revenue growth of 10%
reported and 9% organic
- Solid revenue growth reflects benefits from IDEXX execution
drivers including double-digit year-over-year installed base growth
across global premium instrument platforms
- Delivers EPS of $2.53, representing 18% growth as reported
and 16% on a comparable basis, supported by operating margin
expansion of 100 basis points as reported and 140 basis points on a
comparable basis
- Adjusts 2023 revenue guidance to $3,635 million - $3,650
million, reflecting 7.9% - 8.4% growth as reported and 8.3% - 8.8%
organically, driven by projected CAG Diagnostics recurring revenue
growth of 9.4% - 9.9% as reported and 9.8% - 10.3%
organically
- Updates 2023 EPS outlook to $9.74 - $9.90, a year-over-year
increase of 21% - 23% as reported and 25% - 27% on a comparable
basis, including ~12% combined EPS growth benefit from a customer
contract resolution payment in Q1 2023 and lapping of discrete 2022
R&D investments
IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet
healthcare innovation, today announced third quarter results.
Third Quarter Results
The Company reports revenues of $916 million for the third
quarter of 2023, an increase of 9% reported and 8% organic, driven
by Companion Animal Group ("CAG") growth of 9% reported and 8%
organic and Water revenue growth of 9% reported and 7% organic. CAG
Diagnostics recurring revenue growth of 10% reported and 9% organic
was supported by sustained benefits from IDEXX execution drivers
and reflects high single-digit organic growth in the U.S. and
double-digit organic growth internationally. Commercial engagement
and sustained high interest in adopting IDEXX innovation drove high
levels of premium instrument placements, supporting 11% annual
growth in IDEXX's global premium instrument installed base.
Veterinary software, services and diagnostic imaging systems
revenue grew 14% as reported and 13% organically, reflecting high
recurring revenue growth and ongoing momentum in cloud-based
software placements.
Third quarter earnings per diluted share (“EPS”) were $2.53, an
increase of 18% as reported and 16% on a comparable basis,
including $0.04 per share in tax benefits from share-based
compensation and $0.01 per share negative impact from currency
changes.
"Strong execution by IDEXX teams and sustained interest in
adopting IDEXX's differentiated multi-modality testing and workflow
solutions helped deliver solid organic revenue gains and strong
financial results in the third quarter," said Jay Mazelsky,
President and Chief Executive Officer. "Busy veterinarians
appreciate that they must very often first test before they can
determine the most optimal treatment course, which drives the
medical services activity in their practice. They also want these
testing solutions to seamlessly connect to a modern cloud-based
PIMS, and have shown an increased appetite to invest in software
that supports higher staff productivity and client communications.
IDEXX remains very well positioned to address these needs while
driving development of the companion animal diagnostics sector
through relevant innovation and commercial engagement."
Third Quarter Performance Highlights
Companion Animal Group
The Companion Animal Group generated revenue growth of 9% as
reported and 8% organic for the quarter. Solid growth was supported
by CAG Diagnostics recurring revenue growth of 10% on a reported
basis and 9% organically. U.S. CAG Diagnostics recurring revenue
organic growth of 8.3% included an ~50 basis point negative impact
from fewer equivalent selling days and remained solidly above
sector growth levels in the third quarter, reflected in an ~1,100
basis point growth premium to U.S. same store clinical visit
growth.
Additional U.S. companion animal practice key metrics are
available in the Q3 2023 Earnings Snapshot accessible on the IDEXX
website, www.idexx.com/investors.
Strong global growth was achieved across IDEXX's testing
modalities.
- IDEXX VetLab® consumables generated 13% reported and 11%
organic revenue growth, with double-digit gains across U.S. and
international regions supported by benefits from higher net price
realization and an expanded global premium instrument installed
base.
- Reference laboratory diagnostic and consulting services
generated 8% reported and 7% organic revenue growth, driven by high
single-digit gains in the U.S. and improved, mid-to-high
single-digit growth in international regions.
- Rapid assay products revenues grew 9% as reported and 8%
organically, driven by strong growth in the U.S., supported by
benefits from higher net price realization.
Veterinary software, services and diagnostic imaging systems
revenues grew 14% as reported and 13% organically, driven by
continued high levels of organic gains in recurring software and
diagnostic imaging revenues. Strong demand for cloud-based products
continues to support momentum in software solution placements and
customer gains.
Water
Water revenues grew 9% on a reported basis and 7% on an organic
basis for the quarter, reflecting solid gains across regions,
including benefits from net price improvement.
Livestock, Poultry and Dairy (“LPD”)
LPD revenues grew 5% on a reported basis and grew 2% organically
for the quarter, as solid gains in the U.S. were offset by lower
herd health screening levels internationally.
Gross Profit and Operating Profit
Gross profits increased 8% as reported and on a comparable
basis. Gross margin of 59.9% decreased 30 basis points as reported
and increased 30 basis points on a comparable basis, supported by
benefits from net price gains, business mix and improvement in
software service gross margins.
Operating margin was 30.1% in the quarter, higher than the prior
year by 100 basis points as reported and 140 basis points on a
comparable basis. Operating margin expansion reflects gross margin
gains benefiting from strong CAG Diagnostics recurring revenue
growth and operating expense growth of 4% as reported and on a
comparable basis. Reported operating expense growth reflects
benefits from cost controls and lapping of prior year R&D and
commercial investments.
2023 Growth and Financial Performance Outlook
The Company is updating its full year revenue growth outlook
range to 7.9% - 8.4% as reported and 8.3% - 8.8% organically. This
updated outlook is centered on the lower end of the Company's most
recent full year guidance range and at the midpoint of its original
full year organic growth estimates, reflecting third quarter
results and continued headwinds to clinical visit growth rates
globally. The overall reported revenue range was decreased by $20
million for updated foreign exchange impact estimates compared to
earlier guidance estimates, reflecting the recent strengthening of
the U.S. dollar.
The Company raised its full year reported operating margin
outlook to 29.6% - 29.8%, incorporating strong year-to-date profit
performance. Operating margin guidance includes an increased ~70
basis points in year-over-year unfavorable net margin impact from
updated foreign currency exchange rate changes, including effects
from comparisons to prior year foreign exchange hedge gains.
The Company updated its EPS outlook range to $9.74 - $9.90,
increasing midpoint estimates by $0.05 per share and maintaining
its high end EPS outlook. The Company is maintaining a similar
operational outlook at midpoint, as positive revisions to the
Company's operating margin outlook offset adjustments to organic
revenue growth estimates. Positive adjustments of ~$0.11 per share
to projections for interest expense and effective tax rates,
including share-based compensation tax benefits, offset an ~$0.05
negative EPS impact related to updated foreign currency exchange
rate estimates — which is now estimated to provide a $0.25 per
share headwind to full year EPS results.
The following table provides the Company's updated outlook for
annual key financial metrics in 2023:
Amounts in millions except per share data and percentages
Growth and Financial Performance
Outlook
2023
Revenue
$3,635
-
$3,650
Reported growth
7.9%
-
8.4%
Organic growth
8.3%
-
8.8%
CAG Diagnostics Recurring Revenue
Growth
Reported growth
9.4%
-
9.9%
Organic growth
9.8%
-
10.3%
Operating Margin
29.6%
-
29.8%
Operating margin expansion
290 bps
-
310 bps
Negative impact of foreign exchange
~ 70 bps
Comparable margin expansion
360 bps
-
380 bps
Positive impact of discrete in-license of
technology and customer contract resolution
~ 280 bps
EPS
$9.74
-
$9.90
Reported growth
21%
-
23%
Comparable growth
25%
-
27%
Positive impact of discrete in-license of
technology and customer contract resolution
~ 12%
Other Key Metrics
Net interest expense
~ $37
Share-based compensation tax benefit
~ $12
Share-based compensation tax rate
benefit
~ 1%
Effective tax rate
21%
-
21.5%
Share-based compensation EPS impact
~ $0.14
Reduction in average shares
outstanding
0.5%
-
1%
Operating Cash Flow
100% - 110% of net
income
Free Cash Flow
85% - 90% of net
income
Capital Expenditures
$160 - $180
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 2023.
Estimated Foreign Currency Exchange
Rate Impacts
2023
Revenue growth rate impact
(~ 40 bps)
CAG Diagnostics recurring revenue growth
rate impact
(~ 40 bps)
Operating margin growth impact
(~ 70 bps)
EPS impact
(~ $0.25)
EPS growth impact
(~ 3%)
Go-Forward Foreign Currency Exchange
Rate Assumptions
2023
In U.S. dollars
euro
$1.05
British pound
$1.21
Canadian dollar
$0.73
Australian dollar
$0.63
Relative to the U.S. dollar
Japanese yen
¥151
Chinese renminbi
¥7.40
Brazilian real
R$5.14
Conference Call and Webcast Information
IDEXX Laboratories, Inc. will be hosting a conference call today
at 8:30 a.m. (EDT) to discuss its third quarter 2023 results and
management’s outlook. To participate in the conference call, dial
1-800-289-0459 or 1-773-377-9037 and reference passcode 917383.
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.
(EDT) on that day via the same link and will remain available for
one year.
About IDEXX Laboratories, Inc.
IDEXX is a global leader in pet healthcare innovation. Our
diagnostic and software products and services create clarity in the
complex, constantly evolving world of veterinary medicine. We
support longer, fuller lives for pets by delivering insights and
solutions that help the veterinary community around the world make
confident decisions—to advance medical care, improve efficiency,
and build thriving practices. Our innovations also help ensure the
safety of milk and water across the world and maintain the health
and well-being of people and livestock. IDEXX Laboratories, Inc. is
a member of the S&P 500® Index. Headquartered in Maine, IDEXX
employs nearly 11,000 people and offers solutions and products to
customers in more than 175 countries and territories. 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 "2023 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 our expectations regarding financial performance;
revenue growth and EPS outlooks; operating and free cash flow
forecast; projected impact of foreign currency exchange rates and
interest 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, 2022 and in the
corresponding sections of the Company's Quarterly Reports on Form
10-Q for the quarters ended March 31, 2023, June 30, 2023 and
September 30, 2023, 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 third quarter 2023
results as follows: decreased gross profit growth by 0%, decreased
gross margin growth by 60 basis points, increased operating expense
growth by 0%, decreased operating profit growth by 1%, decreased
operating profit margin growth by 40 basis points, and decreased
EPS growth by 0%. 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 nine months ended September 30, 2023 and refer
to the 2023 Growth and Financial Performance Outlook section of
this earnings release for estimated foreign currency exchange rate
impacts on 2023 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
represents the percent change in revenue, as compared to the same
period for the prior year, net of the impact of changes in foreign
currency exchange rates, certain business acquisitions, and
divestitures. 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. Organic revenue growth
should be considered in addition to, and not as a replacement of or
a superior measure to, revenue growth reported in accordance with
GAAP. See the supplementary analysis of results below for a
reconciliation of reported revenue growth to organic revenue growth
for the three months and nine months ended September 30, 2023.
Please refer to the constant currency note above for a summary of
foreign currency exchange rate impacts. Please refer to the 2023
Growth and Financial Performance Outlook section of this earnings
release for estimated full year 2023 organic revenue growth for the
Company and CAG Diagnostics recurring revenue growth. The
percentage change in revenue resulting from acquisitions represents
revenues during the current year period, limited to the initial 12
months from the date of the acquisition, that are directly
attributable to business acquisitions. Revenue from acquisitions is
not expected to have an impact on projected full year 2023 revenue
growth or CAG Diagnostics recurring revenue growth.
Comparable growth metrics -
Comparable gross profit growth, comparable gross margin gain (or
growth), comparable operating expense growth, comparable operating
profit growth and comparable operating 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). Please refer to the constant currency note above for a
summary of foreign currency exchange rate impacts. Management
believes that reporting comparable gross profit growth, comparable
gross margin gain (or growth), comparable operating expense growth,
comparable operating profit growth and comparable 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 gross profit
growth, comparable gross margin gain (or growth), comparable
operating expense growth, comparable operating profit growth and
comparable operating margin gain (or growth) should be considered
in addition to, and not as replacements of or superior measures to,
gross profit growth, gross margin gain, 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
Nine Months Ended
Year-over-Year
September 30,
September 30,
Change
September 30,
September 30,
Change
Dollar amounts in thousands
2023
2022
2023
2022
Gross Profit (as reported)
$
547,982
$
506,626
8
%
$
1,663,803
$
1,519,411
10
%
Gross margin
59.9
%
60.2
%
(30
)bps
60.3
%
59.8
%
40
bps
Less: comparability adjustments
Change from currency
(290
)
—
(24,793
)
—
Comparable gross profit growth
$
548,272
$
506,626
8
%
$
1,688,596
$
1,519,411
11
%
Comparable gross margin and gross
margin gain (or growth)
60.5
%
60.2
%
30
bps
60.9
%
59.8
%
100
bps
Operating expenses (as
reported)
$
272,699
$
261,798
4
%
$
811,977
$
847,173
(4
)%
Less: comparability adjustments
Change from currency
1,008
—
(3,797
)
—
Comparable operating expense
growth
$
271,691
$
261,798
4
%
$
815,774
$
847,173
(4
)%
Income from operations (as
reported)
$
275,283
$
244,828
12
%
$
851,826
$
672,238
27
%
Operating margin
30.1
%
29.1
%
100
bps
30.9
%
26.5
%
440
bps
Less: comparability adjustments
Change from currency
(1,298
)
—
(20,996
)
—
Comparable operating profit
growth
$
276,581
$
244,828
13
%
$
872,822
$
672,238
30
%
Comparable operating margin and
operating margin gain (or growth)
30.5
%
29.1
%
140
bps
31.5
%
26.5
%
500
bps
Amounts presented may not recalculate due
to rounding.
Projected 2023 comparable operating margin expansion outlined in
the 2023 Growth and Financial Performance Outlook section of this
earnings release reflects projected full year 2023 reported
operating margin adjusted for estimated negative year-over-year
foreign currency exchange rate change impact of approximately 70
basis points.
These impacts described above reconcile reported gross profit
growth, gross margin gain, operating expense growth, operating
profit growth and operating margin gain (including projected 2023
operating margin expansion) to comparable gross profit growth,
comparable gross margin gain, comparable operating expense growth,
comparable operating profit growth and comparable operating margin
gain for the Company.
Comparable EPS growth - Comparable
EPS growth is a non-GAAP financial measure that represents the
percentage change in earnings per share (diluted) ("EPS") for a
measurement period, as compared to the prior base period, net of
the impact of changes in foreign currency exchange rates from the
prior base period and excluding the tax benefits of share-based
compensation activity under ASU 2016-09, Compensation-Stock
Compensation (Topic 718): Improvements to Employee Share-Based
Payment Accounting, and non-recurring or unusual items (if any).
Management believes comparable 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. Comparable EPS growth
should be considered in addition to, and not as a replacement of or
a superior measure to, EPS growth reported in accordance with GAAP.
Please refer to the constant currency note above for a summary of
foreign currency exchange rate impacts.
The reconciliation of this non-GAAP financial measure is as
follows:
Three Months Ended
Year-over-Year
Nine Months Ended
Year-over-Year
September 30,
September 30,
Growth
September 30,
September 30,
Growth
2023
2022
2023
2022
Earnings per share (diluted)
$
2.53
$
2.15
18
%
$
7.75
$
5.97
30
%
Less: comparability adjustments
Share-based compensation activity
0.04
—
0.14
0.10
Change from currency
(0.01
)
—
(0.19
)
—
Comparable EPS growth
2.50
2.15
16
%
7.80
5.87
33
%
Amounts presented may not recalculate due
to rounding.
Projected 2023 comparable EPS growth outlined in the 2023 Growth
and Financial Performance Outlook section of this earnings release
reflects adjustments including estimated positive share-based
compensation activity of $0.14 and estimated negative
year-over-year foreign currency exchange rate change impact of
$0.25.
These impacts and those described in the constant currency note
above reconcile reported EPS growth (including projected 2023
reported EPS growth) to comparable 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. Free cash flow should be considered in addition to, and
not as a replacement of or a superior measure to, net cash provided
by operating activities. See the supplementary analysis of results
below for our calculation of free cash flow for the three and nine
months ended September 30, 2023 and 2022. To estimate projected
2023 free cash flow, we have deducted projected purchases of
property and equipment (also referred to as capital expenditures)
of approximately $160 - $180 million. Free cash flow conversion, or
the net income to free cash flow ratio, is a non-GAAP financial
measure that is defined as free cash flow, with respect to a
measurement period, divided by net income for the same period. To
calculate trailing twelve-month net income to free cash flow ratio
for the twelve months ended September 30, 2023, we have deducted
purchases of property and equipment of approximately $150 million
from net cash provided from operating activities of approximately
$830 million, divided by net income of approximately $823
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.
Adjusted EBITDA, gross debt, and net debt should be considered in
addition to, and not as replacements of or superior measures to,
net income or total debt reported in accordance with GAAP. For
further information on how Adjusted EBITDA and the Debt to Adjusted
EBITDA Ratios are calculated, see the Company's Annual Report on
Form 10-K for the year ended December 31, 2022 and Quarterly Report
on Form 10-Q for the quarter ended September 30, 2023.
IDEXX Laboratories, Inc. and
Subsidiaries
Condensed 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,
2023
2022
2023
2022
Revenue:
Revenue
$
915,527
$
841,661
$
2,759,352
$
2,538,756
Expenses and Income:
Cost of revenue
367,545
335,035
1,095,549
1,019,345
Gross profit
547,982
506,626
1,663,803
1,519,411
Sales and marketing
135,698
130,021
424,034
392,570
General and administrative
89,034
83,764
248,804
243,201
Research and development
47,967
48,013
139,139
211,402
Income from operations
275,283
244,828
851,826
672,238
Interest expense, net
(7,392
)
(10,645
)
(30,318
)
(25,481
)
Income before provision for income
taxes
267,891
234,183
821,508
646,757
Provision for income taxes
55,660
53,245
170,987
139,875
Net Income:
Net income attributable to
stockholders
$
212,231
$
180,938
$
650,521
$
506,882
Earnings per share: Basic
$
2.55
$
2.17
$
7.83
$
6.04
Earnings per share: Diluted
$
2.53
$
2.15
$
7.75
$
5.97
Shares outstanding: Basic
83,097
83,247
83,058
83,855
Shares outstanding: Diluted
83,993
84,113
83,990
84,858
IDEXX Laboratories, Inc. and
Subsidiaries
Selected Operating Information
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2023
2022
2023
2022
Operating Ratios
Gross profit
59.9
%
60.2
%
60.3
%
59.8
%
(as a percentage of revenue):
Sales, marketing, general and
administrative expense
24.5
%
25.4
%
24.4
%
25.0
%
Research and development expense
5.2
%
5.7
%
5.0
%
8.3
%
Income from operations1
30.1
%
29.1
%
30.9
%
26.5
%
1Amounts presented may not recalculate due
to rounding.
IDEXX Laboratories, Inc. and
Subsidiaries
Segment Information
Amounts in thousands (Unaudited)
Three Months Ended
September 30, 2023
Percent of Revenue
September 30, 2022
Percent of Revenue
Revenue:
CAG
$
837,160
$
764,990
Water
44,450
40,840
LPD
29,747
28,452
Other
4,170
7,379
Total
$
915,527
$
841,661
Gross Profit:
CAG
$
499,291
59.6
%
$
456,334
59.7
%
Water
31,034
69.8
%
29,406
72.0
%
LPD
15,836
53.2
%
17,462
61.4
%
Other
1,821
43.7
%
3,424
46.4
%
Total
$
547,982
59.9
%
$
506,626
60.2
%
Income from Operations:
CAG
$
253,358
30.3
%
$
221,454
28.9
%
Water
20,328
45.7
%
19,924
48.8
%
LPD
2,405
8.1
%
4,480
15.7
%
Other
(808
)
(19.4
)%
(1,030
)
(14.0
)%
Total
$
275,283
30.1
%
$
244,828
29.1
%
Nine Months Ended
September 30, 2023
Percent of Revenue
September 30, 2022
Percent of Revenue
Revenue:
CAG
$
2,531,091
$
2,310,261
Water
126,362
116,406
LPD
88,866
89,211
Other
13,033
22,878
Total
$
2,759,352
$
2,538,756
Gross Profit:
CAG
$
1,523,757
60.2
%
$
1,371,687
59.4
%
Water
88,621
70.1
%
82,502
70.9
%
LPD
46,975
52.9
%
54,005
60.5
%
Other
4,450
34.1
%
11,217
49.0
%
Total
$
1,663,803
60.3
%
$
1,519,411
59.8
%
Income from Operations:
CAG
$
790,617
31.2
%
$
601,105
26.0
%
Water
57,119
45.2
%
54,498
46.8
%
LPD
5,664
6.4
%
14,447
16.2
%
Other
(1,574
)
(12.1
)%
2,188
9.6
%
Total
$
851,826
30.9
%
$
672,238
26.5
%
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
September 30, 2023
September 30, 2022
Dollar Change
Reported Revenue
Growth1
Percentage Change from
Currency
Percentage Change from
Acquisitions
Organic Revenue
Growth1
Net Revenue
CAG
$
837,160
$
764,990
$
72,170
9.4
%
1.0
%
—
8.4
%
United States
573,830
530,758
43,072
8.1
%
—
—
8.1
%
International
263,330
234,232
29,098
12.4
%
3.4
%
—
9.0
%
Water
44,450
40,840
3,610
8.8
%
1.2
%
1.1
%
6.6
%
United States
22,804
20,940
1,864
8.9
%
—
0.7
%
8.2
%
International
21,646
19,900
1,746
8.8
%
2.4
%
1.5
%
4.9
%
LPD
29,747
28,452
1,295
4.6
%
2.5
%
—
2.0
%
United States
5,040
4,452
588
13.2
%
—
—
13.2
%
International
24,707
24,000
707
2.9
%
2.9
%
—
—
Other
4,170
7,379
(3,209
)
(43.5
%)
0.1
%
—
(43.5
%)
Total Company
$
915,527
$
841,661
$
73,866
8.8
%
1.1
%
0.1
%
7.6
%
United States
603,046
560,292
42,754
7.6
%
—
—
7.6
%
International
312,481
281,369
31,112
11.1
%
3.3
%
0.1
%
7.7
%
Three Months Ended
September 30, 2023
September 30, 2022
Dollar Change
Reported Revenue
Growth1
Percentage Change from
Currency
Percentage Change from
Acquisitions
Organic Revenue
Growth1
Net CAG Revenue
CAG Diagnostics recurring revenue:
$
733,958
$
667,309
$
66,649
10.0
%
1.1
%
—
8.9
%
IDEXX VetLab consumables
296,042
262,820
33,222
12.6
%
1.2
%
—
11.4
%
Rapid assay products
87,562
80,542
7,020
8.7
%
0.5
%
—
8.2
%
Reference laboratory diagnostic and
consulting services
320,294
295,590
24,704
8.4
%
1.0
%
—
7.3
%
CAG Diagnostics services and
accessories
30,060
28,357
1,703
6.0
%
1.3
%
—
4.7
%
CAG Diagnostics capital – instruments
32,254
35,176
(2,922
)
(8.3
%)
1.9
%
—
(10.2
%)
Veterinary software, services and
diagnostic imaging systems
70,948
62,505
8,443
13.5
%
0.2
%
—
13.3
%
Net CAG revenue
$
837,160
$
764,990
$
72,170
9.4
%
1.0
%
—
8.4
%
Three Months Ended
September 30, 2023
September 30, 2022
Dollar Change
Reported Revenue
Growth1
Percentage Change from
Currency
Percentage Change from
Acquisitions
Organic Revenue
Growth1
CAG Diagnostics recurring revenue:
$
733,958
$
667,309
$
66,649
10.0
%
1.1
%
—
8.9
%
United States
497,109
459,077
38,032
8.3
%
—
—
8.3
%
International
236,849
208,232
28,617
13.7
%
3.4
%
—
10.3
%
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)
Nine Months Ended
September 30, 2023
September 30, 2022
Dollar Change
Reported Revenue
Growth1
Percentage Change from
Currency
Percentage Change from
Acquisitions
Organic Revenue
Growth1
Net Revenue
CAG
$
2,531,091
$
2,310,261
$
220,830
9.6
%
(0.5
%)
—
10.1
%
United States
1,732,752
1,563,150
169,602
10.8
%
—
—
10.8
%
International
798,339
747,111
51,228
6.9
%
(1.6
%)
—
8.5
%
Water
126,362
116,406
9,956
8.6
%
(0.9
%)
1.5
%
8.0
%
United States
63,932
58,304
5,628
9.7
%
—
0.7
%
8.9
%
International
62,430
58,102
4,328
7.4
%
(1.8
%)
2.2
%
7.0
%
LPD
88,866
89,211
(345
)
(0.4
%)
(0.7
%)
—
0.3
%
United States
14,005
12,054
1,951
16.2
%
—
—
16.2
%
International
74,861
77,157
(2,296
)
(3.0
%)
(0.8
%)
—
(2.2
%)
Other
13,033
22,878
(9,845
)
(43.0
%)
—
—
(43.0
%)
Total Company
$
2,759,352
$
2,538,756
$
220,596
8.7
%
(0.6
%)
0.1
%
9.2
%
United States
1,815,066
1,646,023
169,043
10.3
%
—
—
10.2
%
International
944,286
892,733
51,553
5.8
%
(1.5
%)
0.1
%
7.2
%
Nine Months Ended
September 30, 2023
September 30, 2022
Dollar Change
Reported Revenue
Growth1
Percentage Change from
Currency
Percentage Change from
Acquisitions
Organic Revenue
Growth1
Net CAG Revenue
CAG Diagnostics recurring revenue:
$
2,223,336
$
2,017,532
$
205,804
10.2
%
(0.6
%)
—
10.8
%
IDEXX VetLab consumables
890,891
796,072
94,819
11.9
%
(0.8
%)
—
12.7
%
Rapid assay products
266,934
242,542
24,392
10.1
%
(0.4
%)
—
10.4
%
Reference laboratory diagnostic and
consulting services
973,580
894,795
78,785
8.8
%
(0.4
%)
—
9.2
%
CAG Diagnostics services and
accessories
91,931
84,123
7,808
9.3
%
(0.8
%)
—
10.1
%
CAG Diagnostics capital – instruments
99,452
108,400
(8,948
)
(8.3
%)
(0.4
%)
—
(7.8
%)
Veterinary software, services and
diagnostic imaging systems
208,303
184,329
23,974
13.0
%
(0.3
%)
—
13.3
%
Net CAG revenue
$
2,531,091
$
2,310,261
$
220,830
9.6
%
(0.5
%)
—
10.1
%
Nine Months Ended
September 30, 2023
September 30, 2022
Dollar Change
Reported Revenue
Growth1
Percentage Change from
Currency
Percentage Change from
Acquisitions
Organic Revenue
Growth1
CAG Diagnostics recurring revenue:
$
2,223,336
$
2,017,532
$
205,804
10.2
%
(0.6
%)
—
10.8
%
United States
1,505,837
1,351,936
153,901
11.4
%
—
—
11.4
%
International
717,499
665,596
51,903
7.8
%
(1.7
%)
—
9.5
%
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)
September 30, 2023
December 31, 2022
Assets:
Current Assets:
Cash and cash equivalents
$
331,696
$
112,546
Accounts receivable, net
452,699
400,619
Inventories
393,974
367,823
Other current assets
205,861
220,489
Total current assets
1,384,230
1,101,477
Property and equipment, net
687,101
649,474
Other long-term assets, net
1,015,073
995,814
Total assets
$
3,086,404
$
2,746,765
Liabilities and Stockholders'
Equity:
Current Liabilities:
Accounts payable
$
112,609
$
110,221
Accrued liabilities
420,312
433,662
Line of credit
250,000
579,000
Current portion of long-term debt
149,990
74,982
Deferred revenue
37,282
37,938
Total current liabilities
970,193
1,235,803
Long-term debt, net of current portion
618,813
694,387
Other long-term liabilities, net
199,991
207,838
Total long-term liabilities
818,804
902,225
Total stockholders' equity
1,297,407
608,737
Total liabilities and stockholders'
equity
$
3,086,404
$
2,746,765
IDEXX Laboratories, Inc. and
Subsidiaries
Selected Balance Sheet Information
(Unaudited)
September 30,
2023
June 30, 2023
March 31, 2023
December 31,
2022
September 30,
2022
Selected Balance Sheet
Information:
Days sales outstanding1
45.6
43.9
42.9
43.4
43.4
Inventory turns2
1.3
1.3
1.3
1.3
1.3
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)
Nine Months Ended
September 30, 2023
September 30, 2022
Operating:
Cash Flows from Operating
Activities:
Net income
$
650,521
$
506,882
Non-cash adjustments to net income
120,390
92,271
Changes in assets and liabilities
(114,252
)
(229,597
)
Net cash provided by operating
activities
656,659
369,556
Investing:
Cash Flows from Investing
Activities:
Purchases of property and equipment
(101,075
)
(99,609
)
Equity investment
—
(25,000
)
Acquisition of intangible assets
—
(10,000
)
Acquisition of a business, net of cash
acquired
—
(11,512
)
Proceeds from net investment hedges
6,256
—
Net cash used by investing activities
(94,819
)
(146,121
)
Financing:
Cash Flows from Financing
Activities:
(Repayments) borrowings under credit
facility, net
(329,000
)
559,500
Payment of senior debt
—
(75,000
)
Payments for the acquisition-related
contingent consideration and holdbacks
(1,879
)
(5,730
)
Repurchases of common stock
(35,070
)
(745,691
)
Proceeds from exercises of stock options
and employee stock
purchase plans
35,704
23,257
Shares withheld for statutory tax
withholding payments on
restricted stock
(9,907
)
(10,552
)
Net cash used by financing activities
(340,152
)
(254,216
)
Net effect of changes in exchange rates on
cash
(2,538
)
(14,497
)
Net increase (decrease) in cash and cash
equivalents
219,150
(45,278
)
Cash and cash equivalents, beginning of
period
112,546
144,454
Cash and cash equivalents, end of
period
$
331,696
$
99,176
IDEXX Laboratories, Inc. and
Subsidiaries
Free Cash Flow
Amounts in thousands except per share data
(Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Free Cash Flow:
Net cash provided by operating
activities
$
272,433
$
189,000
$
656,659
$
369,556
Investing cash flows attributable to
purchases of property and equipment
(34,094
)
(37,685
)
(101,075
)
(99,609
)
Free cash flow1
$
238,339
$
151,315
$
555,584
$
269,947
1See Statements Regarding Non-GAAP
Financial Measures, above.
IDEXX Laboratories, Inc. and
Subsidiaries
Common Stock Repurchases
Amounts in thousands except per share data
(Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Shares repurchased in the open market
65
453
65
1,764
Shares acquired through employee surrender
for statutory tax withholding
1
—
20
21
Total shares repurchased
66
453
85
1,785
Cost of shares repurchased in the open
market
$
35,070
$
166,423
$
35,070
$
742,661
Cost of shares for employee surrenders
231
162
9,907
10,552
Total cost of shares
$
35,301
$
166,585
$
44,977
$
753,213
Average cost per share – open market
repurchases
$
536.03
$
367.55
$
536.03
$
421.12
Average cost per share – employee
surrenders
$
506.74
$
387.07
$
503.43
$
502.26
Average cost per share – total
$
535.83
$
367.56
$
528.49
$
422.07
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231031725061/en/
John Ravis, Investor Relations, 1-207-556-8155
IDEXX Laboratories (NASDAQ:IDXX)
過去 株価チャート
から 9 2024 まで 10 2024
IDEXX Laboratories (NASDAQ:IDXX)
過去 株価チャート
から 10 2023 まで 10 2024