WESTBROOK, Maine, Oct. 19, 2012 /PRNewswire/ -- IDEXX Laboratories, Inc. (NASDAQ: IDXX), today reported that revenues for the third quarter of 2012 increased 5% to $315.5 million, from $301.0 million for the third quarter of 2011. Organic revenue growth1 was 6%. Earnings per diluted share ("EPS") for the quarter ended September 30, 2012 increased 15% to $0.76, compared to $0.66 for the same period in the prior year.
(Logo: http://photos.prnewswire.com/prnh/20110602/NE13041LOGO )
"Overall for the quarter, our revenue growth was solid and our earnings were in-line with our expectations," stated Jonathan Ayers, Chairman and Chief Executive Officer. "We also made great progress on our strategy of bringing innovation to our veterinary customers around the world."
"During the quarter we continued to advance our strategy of transforming diagnostics through information technology. VetConnect® PLUS, our integrated web-based platform for presentation of both in-house and reference lab diagnostic results, saw unprecedented acceptance, with over 2000 practices activating this advanced capability since its official launch in early July. In addition to its importance to clinical decisions, VetConnect PLUS facilitates impactful conversations between veterinarians and pet owners, which strengthens these relationships."
"We also achieved a successful beta roll-out of IDEXX Pet Health Network® Pro, our new suite of client education and communication services, and strong revenue growth in our Cornerstone® Practice Information Management systems business. All of these information strategies will help promote growth in our core in-house and reference lab diagnostics businesses, translating into an expected organic revenue growth rate of 8% to 9% for the company in 2013."
Revenue Performance
Please refer to the table below entitled "Revenues and Revenue Growth Analysis by Product and Service Categories" in conjunction with the following discussion.
Companion Animal Group. Companion Animal Group ("CAG") revenues for the third quarter of 2012 were $262.4 million compared to $248.1 million for the third quarter of 2011. Organic revenue growth of 7% was due primarily to growth in our reference laboratory diagnostic and consulting services business and in our instrument and consumables business. The revenue increase in our reference laboratory diagnostic and consulting services business was largely the result of higher sales volumes driven primarily by the acquisition of new customers due, in part, to geographic expansion and, to a lesser extent, price increases. The revenue increase in our instruments and consumables business was largely the result of higher sales volumes of consumables used with our Catalyst Dx® and ProCyte Dx® instruments. Revenue from acquired businesses contributed 1% to revenue growth and changes in foreign currency exchange rates reduced revenue growth by 2%.
Water. Water revenues for the third quarter of 2012 were $22.2 million compared to $21.6 million for the third quarter of 2011. Organic revenue growth of 5% was due primarily to higher Quanti-Tray® and Colilert® product sales volumes, driven by new account acquisitions. Changes in foreign currency exchange rates reduced revenue growth by 2%.
Livestock and Poultry Diagnostics. Livestock and Poultry Diagnostics ("LPD") revenues for the third quarter of 2012 were $18.9 million compared to $20.7 million for the third quarter of 2011. The 2% decline in organic revenue was due primarily to lower sales volumes of certain bovine tests, driven principally by lower testing levels from certain government programs in Europe. Changes in foreign currency exchange rates reduced revenue growth by 6%.
Additional Operating Results for the Third Quarter
Gross profit for the third quarter of 2012 increased $12.0 million, or 8%, to $170.6 million from $158.7 million for the third quarter of 2011. As a percentage of total revenue, gross profit increased to 54% from 53%. The increase in the gross profit percentage was due primarily to lower overall costs driven by higher volumes of consumables used in our VetLab® instruments and the favorable impact of currency, partly offset by higher costs to support the continued expansion of our reference laboratories network. The net effect of currency was positive as hedging gains more than offset the net unfavorable impact of changes in foreign currency exchange rates.
Selling, general and administrative ("SG&A") expense for the third quarter of 2012 was $87.4 million, or 28% of revenue, compared to $83.2 million, or 28% of revenue, for the third quarter of 2011. The increase in SG&A expense was due primarily to higher personnel-related costs, partly offset by the favorable impact of changes in foreign currency exchange rates. Research and development ("R&D") expense for the third quarter of 2012 was $20.3 million, or 6% of revenue, compared to $19.4 million, or 6% of revenue for the third quarter of 2011. The increase in R&D expense resulted primarily from increased personnel-related costs and higher external consulting and development costs.
Supplementary Analysis of Results
The accompanying financial tables provide more information concerning our revenue and other operating results for the three and nine months ended September 30, 2012.
Outlook for Full Year 2012 and 2013
The Company provides the following updated guidance for the full year of 2012 and preliminary guidance for 2013. This guidance reflects an assumption that the value of the U.S. dollar relative to other currencies will remain at our current assumptions of the euro at $1.28, the British pound at $1.60 and the Canadian dollar at $1.00 for the balance of 2012 and 2013. For 2012, every 1% weakening of the U.S. dollar relative to our basket of currencies increases revenues by approximately $4.5 million and operating profit by approximately $0.8 million on an annual basis. For 2013, every 1% weakening of the U.S. dollar relative to our basket of currencies is expected to increase revenue by approximately $5 million and operating profit by approximately $1 million on an annual basis. Fluctuations in foreign currency exchange rates from current levels could have a significant positive or negative impact on our actual results of operations in both years.
2012
- Revenues are expected to be approximately $1.30 billion, updated from guidance of $1.30 to $1.31 billion provided in July of this year, which represents reported growth of approximately 6.5% and organic growth of approximately 7.5%.
- Diluted earnings per share are expected to be in the range of $3.08 to $3.11, an increase from our previous guidance of $3.05 to $3.10. The increase at the high end of our range is due to favorable changes in foreign currency exchange rates since July. The increase at the low end of our range is due to the favorable impact of currency exchange rates and a modest tightening due to business performance.
- Free cash flow is expected to be approximately 105% of net income.2
- Capital expenditures are expected to be approximately $60 million.
2013
- Revenues are expected to be in the range of $1.405 to $1.425 billion, which represents reported and organic revenue growth of 8% to 9% compared to projected revenue for 2012.
- Diluted earnings per share are expected to be in the range of $3.37 to $3.47.
Conference Call and Webcast Information
IDEXX Laboratories will be hosting a conference call today at 9:00 a.m. (eastern) to discuss its third quarter results and management's outlook. To participate in the conference call, dial 1-612-234-9960 or 1-800-230-1951 and reference confirmation code 267707. An audio replay will be available through October 26, 2012 by dialing 1-320-365-3844 and referencing replay code 267707.
The call will also be available via live or archived webcast on the IDEXX Laboratories' web site at http://www.idexx.com.
About IDEXX Laboratories, Inc.
IDEXX Laboratories, Inc. is a leader in pet healthcare innovation, serving practicing veterinarians around the world with a broad range of diagnostic and information technology-based products and services. IDEXX products enhance the ability of veterinarians to provide advanced medical care, improve staff efficiency and build more economically successful practices. IDEXX is also a worldwide leader in providing diagnostic tests and information for livestock and poultry and tests for the quality and safety of water and milk. Headquartered in Maine, IDEXX Laboratories employs more than 5,000 people and offers products to customers in over 100 countries.
Note Regarding Forward-Looking Statements
This press release contains statements about the Company's business prospects and estimates of the Company's financial results for future periods that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "expects," "may," "anticipates," "intends," "would," "will," "plans," "believes," "estimates," "should," and similar words and expressions. These statements are based on management's expectations of future events as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments. Actual results could differ materially from management's expectations. Factors that could cause or contribute to such differences include the following: the Company's ability to develop, manufacture, introduce and market new products and enhancements to existing products; the Company's ability to achieve cost improvements in its worldwide network of laboratories and in the manufacture of in-clinic instruments;the Company's ability to identify acquisition opportunities, complete acquisitions and integrate acquired businesses; disruptions, shortages or pricing changes that affect the Company's purchases of products and materials from third parties, including from sole source suppliers; the Company's ability to manufacture complex biologic products; the impact of a weak economy on demand for the Company's products and services; the effectiveness of the Company's sales and marketing activities; the effect of government regulation on the Company's business, including government decisions about whether and when to approve the Company's products and decisions regarding labeling, manufacturing and marketing products; the impact of the resolution of the U.S. Federal Trade Commission investigation into the Company's marketing and sales practices; the impact of a change in the status of one of the Company's distributors on its results of operations;the Company's ability to obtain patent and other intellectual property protection for its products, successfully enforce its intellectual property rights and defend itself against third party claims against the Company; the impact of distributor purchasing decisions on sales of the Company's products that are sold through distribution; the impact of competition, technological change, veterinary hospital consolidation, and the prevalence of buying consortiums on the markets for the Company's products; changes or trends in veterinary medicine that affect the rate of use of the Company's products and services by veterinarians; the impact of the Company's inexperience and small scale in the human point-of-care market; the effects of operations outside the U.S., including from currency fluctuations, different regulatory, political and economic conditions, and different market conditions; the effects of interruptions to the Company's operations due to natural disasters or system failures; the impact of any class action litigation due to stock price volatility; the effect on the Company's stock price if quarterly or annual operations results do not meet expectations of market analysts or investors in future periods; and potential exposures related to our worldwide provision for income taxes and the potential loss of tax incentives. A further description of these and other factors can be found in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2012,in the section captioned "Risk Factors."
1 Organic revenue growth for the third quarter of 2012 excludes revenue from business acquisitions subsequent to June 30, 2011, which contributed 1% to revenue growth, and the impact of changes in foreign currency exchange rates, which reduced revenue growth by 3%.
2 Free cash flow is a non-GAAP measure. We calculate free cash flow as cash generated from operations, excluding our royalty prepayment in the first quarter of 2012, and tax benefits attributable to share-based compensation arrangements, reduced by our investments in fixed assets. We feel free cash flow is a useful measure because it indicates the cash the operations of the business are generating after appropriate reinvestment for recurring investments in fixed assets that are required to operate the business. We believe this is a common financial measure useful to further evaluate the results of operations. Refer to our reconciliation below for our calculation of free cash flow. With respect to this particular forward-looking projection, the Company is unable to provide a quantitative reconciliation at this time as the inputs to the measurement are difficult to predict and estimate and are primarily dependent on future events.
IDEXX Laboratories, Inc. and Subsidiaries |
|
|
|
|
|
|
Consolidated Statement of Operations |
|
|
|
|
|
|
Amounts in thousands except per share data (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended |
|
|
| September 30, | September 30, |
| September 30, | September 30, |
|
|
| 2012 | 2011 |
| 2012 | 2011 |
Revenue: | Revenue |
| $ 315,475 | $ 300,954 |
| $ 973,800 | $ 911,488 |
Expenses and |
|
|
|
|
|
|
|
Income: | Cost of revenue |
| 144,840 | 142,287 |
| 443,702 | 423,863 |
| Gross profit |
| 170,635 | 158,667 |
| 530,098 | 487,625 |
| Sales and marketing |
| 52,067 | 50,682 |
| 164,238 | 152,641 |
| General and administrative |
| 35,307 | 32,483 |
| 105,760 | 98,219 |
| Research and development |
| 20,349 | 19,406 |
| 60,964 | 55,839 |
| Income from operations |
| 62,912 | 56,096 |
| 199,136 | 180,926 |
| Interest expense, net |
| 400 | 478 |
| 1,603 | 1,200 |
| Income before provision for income taxes |
| 62,512 | 55,618 |
| 197,533 | 179,726 |
| Provision for income taxes |
| 19,639 | 17,122 |
| 62,606 | 55,970 |
Net Income: | Net income |
| 42,873 | 38,496 |
| 134,927 | 123,756 |
| Less: Noncontrolling interest in subsidiary's |
|
|
|
|
|
|
| earnings (losses) |
| 20 | (11) |
| 14 | (20) |
| Net income attributable to stockholders | $ 42,853 | $ 38,507 |
| $ 134,913 | $ 123,776 |
| Earnings per share: Basic |
| $ 0.78 | $ 0.68 |
| $ 2.45 | $ 2.17 |
| Earnings per share: Diluted |
| $ 0.76 | $ 0.66 |
| $ 2.40 | $ 2.11 |
| Shares outstanding: Basic |
| 54,938 | 56,699 |
| 55,074 | 57,141 |
| Shares outstanding: Diluted |
| 56,088 | 58,007 |
| 56,270 | 58,636 |
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and Subsidiaries |
|
|
|
|
|
|
Selected Operating Information(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended |
|
|
| September 30, | September 30, |
| September 30, | September 30, |
|
|
| 2012 | 2011 |
| 2012 | 2011 |
Operating | Gross profit |
| 54.1% | 52.7% |
| 54.4% | 53.5% |
Ratios (as a | Sales, marketing, general and |
|
|
|
|
|
|
percentage of | administrative expense |
| 27.7% | 27.6% |
| 27.7% | 27.5% |
revenue): | Research and development expense |
| 6.5% | 6.5% |
| 6.3% | 6.1% |
| Income from operations1 |
| 19.9% | 18.6% |
| 20.4% | 19.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International | International revenue (in thousands) |
| $ 129,139 | $ 126,750 |
| $ 397,373 | $ 386,905 |
Revenue: | International revenue as percentage of total revenue |
| 40.9% | 42.1% |
| 40.8% | 42.4% |
|
|
|
|
|
|
|
|
1Amounts presented may not recalculate due to rounding.
IDEXX Laboratories, Inc. and Subsidiaries |
|
|
|
|
|
|
Segment Information |
|
|
|
|
|
|
Amounts in thousands (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Three Months Ended |
|
|
| September 30, | Percent of |
| September 30, | Percent of |
|
|
| 2012 | Revenue |
| 2011 | Revenue |
Revenue: | CAG |
| $ 262,357 |
|
| $ 248,074 |
|
| Water |
| 22,223 |
|
| 21,648 |
|
| LPD |
| 18,911 |
|
| 20,675 |
|
| Other |
| 11,984 |
|
| 10,557 |
|
| Total |
| $ 315,475 |
|
| $ 300,954 |
|
|
|
|
|
|
|
|
|
Gross Profit: | CAG |
| $ 138,558 | 52.8% |
| $ 126,048 | 50.8% |
| Water |
| 14,489 | 65.2% |
| 14,317 | 66.1% |
| LPD |
| 12,630 | 66.8% |
| 13,666 | 66.1% |
| Other |
| 4,577 | 38.2% |
| 4,009 | 38.0% |
| Unallocated Amounts |
| 381 | N/A |
| 627 | N/A |
| Total |
| $ 170,635 | 54.1% |
| $ 158,667 | 52.7% |
|
|
|
|
|
|
|
|
Income from |
|
|
|
|
|
|
|
Operations: | CAG |
| $ 50,651 | 19.3% |
| $ 44,296 | 17.9% |
| Water |
| 10,128 | 45.6% |
| 9,979 | 46.1% |
| LPD |
| 3,504 | 18.5% |
| 3,648 | 17.6% |
| Other |
| (119) | (1.0%) |
| 34 | 0.3% |
| Unallocated Amounts |
| (1,252) | N/A |
| (1,861) | N/A |
| Total |
| $ 62,912 | 19.9% |
| $ 56,096 | 18.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended |
| Nine Months Ended |
|
|
| September 30, | Percent of |
| September 30, | Percent of |
|
|
| 2012 | Revenue |
| 2011 | Revenue |
Revenue: | CAG |
| $ 808,724 |
|
| $ 748,397 |
|
| Water |
| 63,788 |
|
| 62,123 |
|
| LPD |
| 64,153 |
|
| 69,981 |
|
| Other |
| 37,135 |
|
| 30,987 |
|
| Total |
| $ 973,800 |
|
| $ 911,488 |
|
|
|
|
|
|
|
|
|
Gross Profit: | CAG |
| $ 425,867 | 52.7% |
| $ 387,734 | 51.8% |
| Water |
| 42,250 | 66.2% |
| 38,676 | 62.3% |
| LPD |
| 43,483 | 67.8% |
| 47,548 | 67.9% |
| Other |
| 14,469 | 39.0% |
| 12,493 | 40.3% |
| Unallocated Amounts |
| 4,029 | N/A |
| 1,174 | N/A |
| Total |
| $ 530,098 | 54.4% |
| $ 487,625 | 53.5% |
|
|
|
|
|
|
|
|
Income from |
|
|
|
|
|
|
|
Operations: | CAG |
| $ 157,337 | 19.5% |
| $ 145,137 | 19.4% |
| Water |
| 28,619 | 44.9% |
| 25,327 | 40.8% |
| LPD |
| 14,580 | 22.7% |
| 17,974 | 25.7% |
| Other |
| 669 | 1.8% |
| (207) | (0.7%) |
| Unallocated Amounts |
| (2,069) | N/A |
| (7,305) | N/A |
| Total |
| $ 199,136 | 20.4% |
| $ 180,926 | 19.9% |
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and Subsidiaries |
Revenues and Revenue Growth Analysis by Product and Service Categories |
Amounts in thousands (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue | Three Months Ended September 30, 2012 |
|
| Three Months Ended September 30, 2011 |
| Dollar Change |
| Percentage Change |
| Percentage Change from Currency1 |
| Percentage Change from Acquisitions2 |
| Organic Revenue Growth3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG | $ | 262,357 |
| $ | 248,074 |
| $ | 14,283 |
| 5.8% |
| (2.3%) |
| 1.4% |
| 6.7% |
Water |
| 22,223 |
|
| 21,648 |
|
| 575 |
| 2.7% |
| (2.0%) |
| - |
| 4.7% |
LPD |
| 18,911 |
|
| 20,675 |
|
| (1,764) |
| (8.5%) |
| (6.1%) |
| - |
| (2.4%) |
Other |
| 11,984 |
|
| 10,557 |
|
| 1,427 |
| 13.5% |
| (1.6%) |
| - |
| 15.1% |
Total | $ | 315,475 |
| $ | 300,954 |
| $ | 14,521 |
| 4.8% |
| (2.5%) |
| 1.1% |
| 6.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net CAG Revenue | Three Months Ended September 30, 2012 |
|
| Three Months Ended September 30, 2011 |
| Dollar Change |
| Percentage Change |
| Percentage Change from Currency 1 |
| Percentage Change from Acquisitions2 |
| Organic Revenue Growth3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments and consumables | $ | 101,325 |
| $ | 99,719 |
| $ | 1,606 |
| 1.6% |
| (2.6%) |
| - |
|
| 4.2% |
|
Rapid assay products |
| 39,315 |
|
| 36,073 |
|
| 3,242 |
| 9.0% |
| (1.1%) |
| - |
|
| 10.1% |
|
Reference laboratory diagnostic and consulting services |
| 101,449 |
|
| 94,027 |
|
| 7,422 |
| 7.9% |
| (3.0%) |
| 3.7% |
|
| 7.2% |
|
Practice management and digital imaging systems |
| 20,268 |
|
| 18,255 |
|
| 2,013 |
| 11.0% |
| (0.1%) |
| - |
|
| 11.1% |
|
Net CAG revenue | $ | 262,357 |
| $ | 248,074 |
| $ | 14,283 |
| 5.8% |
| (2.3%) |
| 1.4% |
|
| 6.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1The percentage change from currency is a non-U.S. GAAP measure. It represents the percentage change in revenue resulting from the difference between the average exchange rates during the three months ended September 30, 2012 and the same period of the prior year applied to foreign currency denominated revenues for the three months ended September 30, 2012.
2The percentage change from acquisitions is a non-U.S. GAAP measure. It represents the percentage change in revenue during the three months ended September 30, 2012 compared to the three months ended September 30, 2011 attributed to acquisitions subsequent to June 30, 2011.
3Organic revenue growth is a non-U.S. GAAP measure and represents the percentage change in revenue during the three months ended September 30, 2012 compared to the three months ended September 30, 2011 net of acquisitions and the effect of changes in foreign currency exchange rates.
IDEXX Laboratories, Inc. and Subsidiaries |
Revenues and Revenue Growth Analysis by Product and Service Categories |
Amounts in thousands (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue | Nine
Months Ended September 30, 2012 |
|
| Nine Months Ended September 30, 2011 |
| Dollar Change |
| Percentage Change |
| Percentage Change from Currency1 |
| Percentage Change from Acquisitions2 |
| Organic Revenue Growth3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG | $ | 808,724 |
| $ | 748,397 |
| $ | 60,327 |
| 8.1% |
| (1.7%) |
| 1.4% |
| 8.4% |
Water |
| 63,788 |
|
| 62,123 |
|
| 1,665 |
| 2.7% |
| (1.6%) |
| - |
| 4.3% |
LPD |
| 64,153 |
|
| 69,981 |
|
| (5,828) |
| (8.3%) |
| (4.3%) |
| - |
| (4.0%) |
Other |
| 37,135 |
|
| 30,987 |
|
| 6,148 |
| 19.8% |
| (0.9%) |
| - |
| 20.7% |
Total | $ | 973,800 |
| $ | 911,488 |
| $ | 62,312 |
| 6.8% |
| (2.0%) |
| 1.2% |
| 7.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net CAG Revenue | Nine
Months Ended September 30, 2012 |
|
| Nine Months Ended September 30, 2011 |
| Dollar Change |
| Percentage Change |
| Percentage Change from Currency1 |
| Percentage Change from Acquisitions2 |
| Organic Revenue Growth3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments and consumables | $ | 307,565 |
| $ | 292,209 |
| $ | 15,356 |
| 5.3% |
| (2.0%) |
| - |
| 7.3% |
Rapid assay products |
| 128,556 |
|
| 118,883 |
|
| 9,673 |
| 8.1% |
| (0.8%) |
| - |
| 8.9% |
Reference laboratory diagnostic and consulting services |
| 309,696 |
|
| 282,242 |
|
| 27,454 |
| 9.7% |
| (2.2%) |
| 3.7% |
| 8.2% |
Practice management and digital imaging systems |
| 62,907 |
|
| 55,063 |
|
| 7,844 |
| 14.2% |
| (0.2%) |
| - |
| 14.4% |
Net CAG revenue | $ | 808,724 |
| $ | 748,397 |
| $ | 60,327 |
| 8.1% |
| (1.7%) |
| 1.4% |
| 8.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1The percentage change from currency is a non-U.S. GAAP measure. It represents the percentage change in revenue resulting from the difference between the average exchange rates during the nine months ended September 30, 2012 and the same period of the prior year applied to foreign currency denominated revenues for the nine months ended September 30, 2012.
2The percentage change from acquisitions is a non-U.S. GAAP measure. It represents the percentage change in revenue during the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011 attributed to acquisitions subsequent to December 31, 2010.
3Organic revenue growth is a non-U.S. GAAP measure and represents the percentage change in revenue during the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011 net of acquisitions and the effect of changes in foreign currency exchange rates.
IDEXX Laboratories, Inc. and Subsidiaries |
|
|
|
|
|
|
Consolidated Balance Sheet |
|
|
|
|
|
|
Amounts in thousands (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| September 30, | December 31, |
|
|
|
|
|
| 2012 | 2011 |
Assets: | Current Assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
|
| $ 221,441 | $ 183,895 |
| Accounts receivable, net |
|
|
|
| 141,374 | 141,275 |
| Inventories |
|
|
|
| 147,474 | 133,099 |
| Other current assets |
|
|
|
| 60,485 | 65,958 |
| Total current assets |
|
|
|
| 570,774 | 524,227 |
| Property and equipment, net |
|
|
|
| 231,639 | 216,777 |
| Other long-term assets, net |
|
|
|
| 290,938 | 289,810 |
| Total assets |
|
|
|
| $ 1,093,351 | $ 1,030,814 |
Liabilities and |
|
|
|
|
|
|
|
Stockholders' |
|
|
|
|
|
|
|
Equity: | Current Liabilities: |
|
|
|
|
|
|
| Accounts payable |
|
|
|
| $ 31,728 | $ 36,551 |
| Accrued liabilities |
|
|
|
| 134,664 | 141,383 |
| Debt |
|
|
|
| 232,960 | 243,917 |
| Deferred revenue |
|
|
|
| 16,494 | 15,028 |
| Total current liabilities |
|
|
|
| 415,846 | 436,879 |
| Long-term debt, net of current portion |
|
|
|
| 1,776 | 2,501 |
| Other long-term liabilities |
|
|
|
| 58,194 | 51,841 |
| Total long-term liabilities |
|
|
|
| 59,970 | 54,342 |
|
|
|
|
|
|
|
|
| Total stockholders' equity |
|
| 617,507 | 539,579 |
| Noncontrolling interest |
|
|
| 28 | 14 |
| Total equity |
|
|
| 617,535 | 539,593 |
| Total liabilities and stockholders' equity |
|
|
| $ 1,093,351 | $ 1,030,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and Subsidiaries |
|
|
|
|
|
|
Selected Balance Sheet Information(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| September 30, |
| June 30, | March 31, |
| December 31, | September 30, |
|
| 2012 |
| 2012 | 2012 |
| 2011 | 2011 |
Selected |
|
|
|
|
|
|
|
|
Balance Sheet | Days sales outstanding1 | 41.7 |
| 41.9 | 42.7 |
| 41.0 | 43.1 |
Information: | Inventory turns 2 | 1.7 |
| 1.8 | 1.8 |
| 1.8 | 1.7 |
|
|
|
|
|
|
|
|
|
1Days sales outstanding represents the average of the accounts receivable balances at the beginning and end of each quarter divided by revenue for that quarter, the result of which is then multiplied by 91.25 days. |
2Inventory turns represents inventory-related cost of product sales for the 12 months preceding each quarter-end divided by the inventory balance at the end of the quarter. |
IDEXX Laboratories, Inc. and Subsidiaries |
|
|
|
|
|
|
Consolidated Statement of Cash Flows |
|
|
|
|
|
|
Amounts in thousands (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended |
|
|
|
|
|
| September 30, | September 30, |
|
|
|
|
|
| 2012 | 2011 |
Operating: | Cash Flows from Operating Activities: |
|
|
|
|
|
|
| Net income |
|
|
|
| $ 134,927 | $ 123,756 |
| Non-cash charges |
|
|
|
| 49,520 | 48,641 |
| Changes in assets and liabilities |
|
| (20,777) | 5,130 |
| Tax benefit from share-based compensation arrangements |
| (10,182) | (14,009) |
| Net cash provided by operating activities |
|
|
|
| 153,488 | 163,518 |
Investing: | Cash Flows from Investing Activities: |
|
|
|
|
|
|
| Purchases of property and equipment |
|
|
|
| (43,230) | (39,927) |
| Proceeds from disposition of pharmaceutical product lines |
|
| 3,000 | 3,000 |
| Proceeds from sale of property and equipment |
|
|
| 45 | 223 |
| Acquisition of intangible asset |
|
| (900) | - |
| Acquisition of a business, net of cash acquired |
|
| - | (2,600) |
| Net cash used by investing activities |
|
|
| (41,085) | (39,304) |
Financing: | Cash Flows from Financing Activities: |
|
|
|
|
|
|
| (Repayment) borrowings on revolving credit facilities, net |
|
| (11,000) | 24,903 |
| Payment of notes payable |
|
|
|
| (682) | (643) |
| Repurchases of common stock |
|
|
|
| (91,152) | (166,016) |
| Proceeds from the exercise of stock options and employee stock purchase plans |
| 17,156 | 26,080 |
| Tax benefit from share-based compensation arrangements |
| 10,182 | 14,009 |
| Net cash used by financing activities |
|
|
| (75,496) | (101,667) |
| Net effect of changes in exchange rates on cash |
|
|
|
| 639 | 2,037 |
| Net increase in cash and cash equivalents |
|
|
|
| 37,546 | 24,584 |
| Cash and cash equivalents, beginning of period |
|
|
| 183,895 | 156,915 |
| Cash and cash equivalents, end of period |
|
|
|
| $ 221,411 | $ 181,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and Subsidiaries |
|
|
|
|
|
|
Free Cash Flow |
|
|
|
|
|
|
Amounts in thousands (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended |
|
|
|
|
|
| September 30, | September 30, |
|
|
|
|
|
| 2012 | 2011 |
Free Cash |
|
|
|
|
|
|
|
Flow: | Net cash provided by operating activities |
|
|
|
| $ 153,488 | $ 163,518 |
| Royalty prepayment to obtain exclusive patent rights |
|
|
|
| 6,250 | - |
| Financing cash flows attributable to tax benefits from share-based compensation arrangements |
| 10,182 | 14,009 |
| Purchases of property and equipment |
|
|
|
| (43,230) | (39,927) |
| Free cash flow |
|
|
|
| $ 126,690 | $ 137,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc. and Subsidiaries |
|
|
|
|
|
|
Common Stock Repurchases |
|
|
|
|
|
|
Amounts in thousands except per share data (Unaudited) |
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended |
|
|
| September 30, | September 30, |
| September 30, | September 30, |
|
|
| 2012 | 2011 |
| 2012 | 2011 |
| Share repurchases during the period |
| 386 | 886 |
| 1,038 | 2,183 |
| Average price paid per share |
| $ 93.76 | $ 76.27 |
| $ 87.82 | $ 76.04 |
|
|
|
|
|
|
|
|
| Shares remaining under repurchase authorization as of September 30, 2012 totaled 3,349,826. |
|
|
|
|
|
|
|
|
| Share repurchases do not include shares surrendered by employees in payment for the minimum required withholding taxes due on the vesting of restricted stock units and the settlement of deferred stock units. |
Contact: Merilee Raines, Chief Financial Officer, 1-207-556-8155
