Exhibit 99.1 |
Contact: Merilee Raines, Chief Financial Officer, (207) 856-8155 |
FOR IMMEDIATE RELEASE |
IDEXX Laboratories Announces First Quarter Results |
• | Revenue for the first quarter increased 22% to $133.4 million. |
• | Net income increased 47% to $17.8 million. |
• | Earnings per diluted share increased 44% to $0.49. |
WESTBROOK, Maine, April 19, 2004 — IDEXX Laboratories, Inc. (NASDAQ: IDXX), today reported that net income increased 47% to $17.8 million for the quarter ended March 31, 2004, from $12.1 million for the same period in the prior year. |
Earnings per diluted share for the quarter were $0.49, a 44% increase over earnings per diluted share of $0.34 for the quarter ended March 31, 2003. |
Revenue for the first quarter of 2004 increased 22% to $133.4 million from $109.2 million for the first quarter of 2003. The favorable impact of currency contributed 5% to revenue growth. |
Companion Animal Group (CAG) revenue for the first quarter of 2004 increased 25% to $109.8 million from $88.2 million for the first quarter of 2003. This increase resulted primarily from increased sales of instruments and consumables, rapid assays and laboratory services. The increase in sales of instruments was due primarily to increased sales of the IDEXX LaserCyte® hematology system. The increase in sales of instrument consumables was due primarily to increased sales of VetTest® slides. CAG revenue grew 5% due to the favorable impact of foreign currency exchange. |
Water segment revenue for the first quarter increased 18% to $11.9 million from $10.1 million for the first quarter of 2003 primarily due to higher sales volume and the favorable impact of foreign currency exchange. |
Food Diagnostics Group (FDG) revenue for the first quarter increased 7% to $11.7 million from $11.0 million for the first quarter of 2003 primarily due to the favorable impact of foreign currency exchange. |
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IDEXX Laboratories Announces First Quarter Results April 19, 2004 Page 2 of 6 |
“Strong revenue growth across our Companion Animal Group businesses had a significant positive impact on operating profit during the quarter,” said Jonathan W. Ayers, President and CEO. “Due to the strength in the business, we are raising our revenue expectations for the rest of 2004. While we expect some of the incremental revenue to drop to the bottom line, we also plan to augment investment in certain areas in the Companion Animal Group and our Production Animal Services business.” |
Outlook for 2004 |
The Company offers the following guidance for the full year of 2004: |
• | Revenue is expected to be approximately $540 to $545 million. |
• | Diluted earnings per share are expected to be approximately $2.00 to $2.02. |
The Company offers the following guidance for the second quarter of 2004: |
• | Revenue is expected to be approximately $138 million. |
• | Operating margin is expected to be 19% to 19.5% of revenue. |
• | Diluted earnings per share are expected to be approximately $0.52. |
IDEXX Laboratories, Inc., is a worldwide leader in the development and commercialization of innovative, technology-based products and services for veterinary, food and water applications. The Company’s largest business is focused on companion animal health, combining biotechnology, medical device technology and information technology to aid veterinarians in providing better medicine while building successful practices. IDEXX Laboratories’ food and water businesses are focused on employing innovative technologies to monitor production animal health and the safety and quality of drinking water and milk. Headquartered in Westbrook, Maine, IDEXX Laboratories employs more than 2,400 people and offers products to customers in over 100 countries. |
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations of future events, which are subject to risks and uncertainties. If underlying assumptions prove inaccurate, actual results could vary materially from management’s expectations. Risks and uncertainties include timing and success of new product introductions, competition and technological change, government regulation and obtaining government approvals, product demand and market acceptance, availability of products and raw materials, and litigation. A further description of these risks and uncertainties and other factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2003, in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments. |
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IDEXX Laboratories Announces First Quarter Results April 19, 2004 Page 3 of 6 |
IDEXX Laboratories, Inc. and Subsidiaries Consolidated Statement of Operations Amounts in thousands except per share data (Unaudited) |
| Three Months Ended | |||||
March 31, | March 31, | |||||
Revenue: | Revenue |
| $ 133,417 | $ 109,247 | ||
Expenses and |
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Income: | Cost of revenue |
| 66,371 | 57,785 | ||
| Gross profit |
| 67,046 | 51,462 | ||
| Sales and marketing expense |
| 20,983 | 16,323 | ||
| General and administrative expense |
| 12,242 | 10,355 | ||
| Research and development expense |
| 8,520 | 7,337 | ||
| Income from operations |
| 25,301 | 17,447 | ||
| Interest income |
| 729 | 690 | ||
| Income before provision for income taxes |
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| and partner’s interest |
| 26,030 | 18,137 | ||
| Partner's share of consolidated loss |
| 133 | - | ||
| Provision for income taxes |
| 8,372 | 6,075 | ||
Net Income: | Net income |
| $ 17,791 | $ 12,062 | ||
| Earnings per share: Basic |
| $ 0.51 | $ 0.36 | ||
| Earnings per share: Diluted |
| $ 0.49 | $ 0.34 | ||
| Shares outstanding: Basic |
| 34,775 | 33,812 | ||
| Shares outstanding: Diluted |
| 36,437 | 35,520 | ||
IDEXX Laboratories, Inc. and Subsidiaries Key Operating Ratios (Unaudited) |
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| Three Months Ended | |||
March 31, | March 31, | |||||
Key Operating Ratios (as a percentage of revenue): | Gross profit | 50.3% | 47.1% | |||
Sales, marketing, general and administrative expense | 24.9% | 24.4% | ||||
| Research and development expense |
| 6.4% | 6.7% | ||
| Income from operations |
| 19.0% | 16.0% | ||
International | International revenue | 31.3% | 30.4% | |||
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IDEXX Laboratories Announces First Quarter Results April 19, 2004 Page 4 of 6 |
IDEXX Laboratories, Inc. and Subsidiaries Segment Information Amounts in thousands (Unaudited) |
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| Three Months Ended | ||||
March 31, | March 31, | ||||||
Revenue: | Companion Animal Group |
| $ 109,830 |
| $ 88,188 | ||
| Water |
| 11,854 |
| 10,068 | ||
| Food Diagnostics Group | 11,733 |
| 10,991 | |||
| Total | $ 133,417 |
| $ 109,247 | |||
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Gross Profit: | Companion Animal Group | $ 52,076 |
| $ 39,407 | |||
| Water |
| 7,993 |
| 6,564 | ||
| Food Diagnostics Group | 6,977 |
| 5,491 | |||
| Total | $ 67,046 |
| $ 51,462 | |||
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Income from | Companion Animal Group | $ 18,248 | $ 12,687 | ||||
| Water |
| 5,055 |
| 4,113 | ||
| Food Diagnostics Group | 2,923 |
| 1,445 | |||
| Other | (925 | ) | (798 | ) | ||
| Total | $ 25,301 |
| $ 17,447 | |||
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Gross Profit | Companion Animal Group | 47.4% | 44.7% | ||||
| Water |
| 67.4% |
| 65.2% | ||
| Food Diagnostics Group |
| 59.5% |
| 50.0% | ||
Income from | Companion Animal Group | 16.6% | 14.4% | ||||
| Water |
| 42.6% |
| 40.9% | ||
| Food Diagnostics Group |
| 24.9% |
| 13.1% |
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IDEXX Laboratories Announces First Quarter Results April 19, 2004 Page 5 of 6 |
IDEXX Laboratories, Inc. and Subsidiaries Consolidated Balance Sheet Amounts in thousands (Unaudited) |
March 31, | December 31, | ||||||
Assets: | Current Assets: |
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| Cash and cash equivalents |
| $ 180,510 | $ 186,717 | |||
| Short-term investments |
| 28,911 | 33,988 | |||
| Accounts receivable, net |
| 61,466 | 53,976 | |||
| Inventories |
| 75,863 | 75,333 | |||
| Other current assets |
| 20,128 | 20,575 | |||
| Total current assets |
| 366,878 | 370,589 | |||
| Long-term investments |
| 33,787 | 35,082 | |||
| Property and equipment - cost |
| 117,586 |
| 112,023 | ||
| Less - accumulated depreciation |
| 69,193 |
| 66,799 | ||
| Property and equipment, net |
| 48,393 |
| 45,224 | ||
| Other long-term assets, net |
| 74,027 | 70,980 | |||
| Total assets |
| $ 523,085 |
| $ 521,875 | ||
Liabilities and | Current Liabilities: |
| |||||
| Accounts payable |
| $ 14,848 | $ 19,160 | |||
| Accrued expenses |
| 63,592 | 72,807 | |||
| Notes payable |
| 744 | 494 | |||
| Deferred revenue |
| 8,252 | 8,275 | |||
| Total current liabilities |
| 87,436 | 100,736 | |||
| Total long-term liabilities |
| 8,051 | 7,061 | |||
| Partner's interest in subsidiary |
| 653 | 786 | |||
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| Stockholders’ Equity: |
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| Common stock |
| 4,489 | 4,439 | |||
| Additional paid-in capital |
| 399,004 | 383,249 | |||
| Deferred equity-based compensation |
| 576 | 138 | |||
| Retained earnings |
| 258,141 | 240,350 | |||
| Treasury stock, at cost |
| (241,545 | ) | (219,449 | ) | |
| Accumulated other comprehensive income |
| 6,280 | 4,565 | |||
| Total stockholders’ equity |
| 426,945 | 413,292 | |||
| Total liabilities and stockholders’ equity |
| $ 523,085 | $ 521,875 | |||
IDEXX Laboratories, Inc. and Subsidiaries Key Balance Sheet Statistics(Unaudited) |
March 31, | December 31, | |||||
Key Balance | Days sales outstanding | 39 | 38 | |||
| Inventory turns |
| 1.9 | 1.9 |
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IDEXX Laboratories Announces First Quarter Results April 19, 2004 Page 6 of 6 |
IDEXX Laboratories, Inc. and Subsidiaries Consolidated Statement of Cash Flows Amounts in thousands (Unaudited) |
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| Three Months Ended | ||||
March 31, | March 31, | ||||||
Operating: | Cash Flows from Operating Activities: |
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| Net income |
| $ 17,791 |
| $ 12,062 | ||
| Non-cash charges |
| 11,663 | 5,567 | |||
Changes in current assets and liabilities, net of acquisitions and disposals | (18,786 | ) | 11,915 | ||||
| Net cash provided by operating activities |
| $ 10,668 |
| $ 29,544 | ||
Investing: | Cash Flows from Investing Activities: |
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| Increase (decrease) in investments, net |
| 6,418 | (1,771 | ) | ||
| Purchase of property and equipment, net |
| (6,003 | ) | (3,089 | ) | |
| Acquisition of businesses and intangible assets |
| (5,342 | ) | - | ||
| Acquisition of equipment leased to customers |
| (466 | ) | (468 | ) | |
| Net cash used by investing activities |
| $ (5,393 | ) | $ (5,328 | ) | |
Financing: | Cash Flows from Financing Activities: |
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| Repayments of note payable |
| (254 | ) | - | ||
| Purchase of treasury stock |
| (22,417 | ) | (9,257 | ) | |
| Proceeds from the exercise of stock options |
| 11,005 |
| 4,745 | ||
| Net cash used by financing activities |
| $ (11,666 | ) | $ (4,512 | ) | |
| Net effect of exchange rate changes |
| 184 |
| (41 | ) | |
| Net increase (decrease) in cash and cash equivalents |
| (6,207 | ) | 19,663 | ||
| Cash and cash equivalents, beginning of period |
| 186,717 |
| 113,788 | ||
| Cash and cash equivalents, end of period |
| $ 180,510 |
| $ 133,451 | ||
IDEXX Laboratories, Inc. and Subsidiaries Free Cash Flow(Unaudited) |
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| Three Months Ended | ||||
March 31, 2004 | March 31, | ||||||
Free Cash | Net cash provided by operating activities | $ 10,668 | $ 29,544 | ||||
| Purchase of property and equipment |
| (6,003 | ) | (3,089 | ) | |
| Acquisition of equipment leased to customers |
| (466 | ) | (468 | ) | |
| Free cash flow |
| $ 4,199 | $ 25,987 | |||
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| Free cash flow indicates the cash generated from operations reduced by investments in capital and other long-term assets. Free cash flow excludes financing activities, investments in monetary securities, and business acquisitions and divestitures. 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. |
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