Exhibit 99.1
Contact: Merilee Raines, Chief Financial Officer, (207) 856-8155
FOR IMMEDIATE RELEASE
IDEXX Laboratories Announces Third Quarter Results
WESTBROOK, Maine, October 28, 2005 — IDEXX Laboratories, Inc. (NASDAQ: IDXX), today reported that revenue for the third quarter of 2005 increased 18% to $158.1 million from $134.1 million for the third quarter of 2004. Earnings per diluted share for the quarter ended September 30, 2005 were $0.61, compared to $0.56 for the same period in the prior year.
During the quarter ended September 30, 2004, the Company’s earnings per diluted share included an after tax benefit of $0.02 associated with the settlement of a third party claim and certain state tax benefits. During the quarter ended September 30, 2005, the Company incurred acquisition integration costs of $0.01 per diluted share. Excluding the effects of these discrete items in the third quarters of 2004 and 2005, adjusted earnings per diluted share grew approximately 15%. The Company believes adjusted earnings per diluted share is a useful financial measure to indicate the results of ongoing operations, excluding significant infrequent items.
Companion Animal Group (“CAG”) revenue for the third quarter of 2005 increased 18% to $128.7 million from $108.8 million for the third quarter of 2004. Sales from businesses acquired during 2004 and 2005, consisting primarily of veterinary reference laboratories, contributed approximately 8% to CAG revenue growth. Aside from acquisitions, this increase resulted primarily from higher sales of instruments and consumables, rapid assay products, laboratory and consulting services, and, to a lesser extent, pharmaceutical products and computer systems and digital radiography. The favorable impact of foreign currency contributed less than 1% to CAG revenue growth.
Water segment revenue for the third quarter increased 6% to $15.1 million from $14.2 million for the third quarter of 2004 primarily due to higher worldwide sales volume. The favorable impact of foreign currency contributed less than 1% to Water revenue growth.
Food Diagnostics Group (“FDG”) revenue for the third quarter increased 29% to $14.3 million from $11.1 million for the third quarter of 2004. This increase reflects growth in the production animal products business due to sales from businesses acquired in 2004 and higher sales volume of established product lines. The favorable impact of foreign currency contributed less than 1% to FDG revenue growth and acquisitions contributed 11%.
“Our results for the third quarter were slightly higher than our expectation due to strong performance across the CAG segment and in our production animal testing business,” said Jonathan Ayers, Chairman and CEO. “The acquisitions we made in 2004 and 2005 contributed significantly to this growth, and continue to exceed our expectations. However, organic growth in our businesses was also strong.”
IDEXX Announces Third Quarter Results
October 28, 2005
Page 2 of 9
Additional operating results
Gross profit for the third quarter of 2005 increased $10.3 million, or 14%, to $81.3 million from $71.1 million for the third quarter of 2004. As a percentage of total revenue, gross profit decreased to 51% from 53% largely due to the benefit in 2004 from the settlement of a third party claim noted above. Excluding the impact of this item in 2004, the gross profit percentage decreased one percent, primarily due to higher sales of lower margin laboratory and consulting services as a percentage of total sales and to comparatively more favorable product warranty liability adjustments for LaserCyte® instruments in the same period of the prior year. LaserCyte® service experience continued to improve during the quarter and resulted in a modest favorable change in our estimated cost of product warranty liability for all placed instruments for which we have such future obligations; however, the incremental improvements in the same period of the prior year were relatively greater.
Research and development (“R&D”) expense for the quarter was $10.5 million compared to $8.8 million for the third quarter of 2004. R&D expense was approximately constant as a percentage of revenue at 7% for the third quarters of 2005 and 2004.
Selling, general and administrative (“SG&A”) expense was $40.7 million, or 26% of revenues, compared to $33.8 million, or 25% of revenues, in the third quarter of 2004. The increase in SG&A expense as a percentage of revenues reflects the investment made to expand our sales and marketing organizations in both the U.S. and Europe, as well as the integration and amortization costs associated with recent business acquisitions. The increase in SG&A expense in total dollars was also attributable to costs incurred to support the operating activities of businesses acquired in the fourth quarter of 2004 and in 2005.
Year-to-date results
Year-to-date revenue increased 16% to $471.1 million from $404.9 million for the same period in 2004. Year-to-date earnings per diluted share were $1.70 for the nine-month periods in both 2005 and 2004. During the nine months ended September 30, 2004, the Company’s earnings per diluted share included a net benefit of $0.09 resulting from a reduction in the Company’s provision for income taxes primarily related to the completion of an IRS audit through the year 2001, the settlement of a third party claim, and a payment received in settlement of certain litigation. During the nine months ended September 30, 2005, the Company incurred acquisition integration costs of $0.04 per diluted share. Excluding the effects of these discrete items in 2004 and 2005, adjusted earnings per diluted share grew approximately 8%.
IDEXX Announces Third Quarter Results
October 28, 2005
Page 3 of 9
Companion Animal Group revenue for the nine months ended September 30, 2005 increased 16% to $384.9 million from $331.4 million for the same period in 2004. Sales from businesses acquired during 2004 and 2005, consisting primarily of veterinary reference laboratories, contributed approximately 7% to CAG revenue growth. Aside from acquisitions, this increase resulted primarily from increased sales of instruments and consumables, laboratory and consulting services, rapid assay products, and, to a lesser extent, pharmaceutical products and computer systems and digital radiography. The favorable impact of currency contributed 1% to year-to-date CAG revenue growth.
Water segment revenue for the nine months ended September 30, 2005 increased 8% to $42.2 million from $39.1 million for the same period in 2004 primarily due to higher worldwide sales volume. The favorable impact of foreign currency contributed 1% to year-to-date Water revenue growth.
Food Diagnostics Group revenue for the nine months ended September 30, 2005 increased 28% to $44.1 million from $34.4 million for the same period in 2004. This increase reflects growth in the production animal products business due to sales from businesses acquired in 2004 and higher sales volume of established product lines. The favorable impact of foreign currency contributed 2% to FDG revenue growth and acquisitions contributed 12%.
Outlook
The Company offers the following guidance for the full year of 2005:
| • | Revenue is expected to be approximately $631 to $634 million. |
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| • | Diluted earnings per share are expected to be approximately $2.28 to $2.30, which includes approximately $0.06 of anticipated acquisition integration costs. |
The Company offers the following guidance for the full year of 2006:
| • | Revenue is expected to be approximately $695 to $705 million. |
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| • | Diluted earnings per share are expected to be approximately $2.36 to $2.48, which includes the prospective expensing of equity-based compensation as required by Statement of Financial Accounting Standards No. 123 (revised 2004). |
Increased Share Repurchase Authorization
The Company also announced today that its Board of Directors has authorized the repurchase by the Company of an additional two million shares of its common stock in the open market or in negotiated transactions. These shares are in addition to 552,000 shares remaining under a previous Board authorization. The timing and amount of any repurchases will be at the discretion of the Company’s management.
IDEXX Announces Third Quarter Results
October 28, 2005
Page 4 of 9
About IDEXX Laboratories
IDEXX Laboratories, Inc. is a leader in companion animal health, serving practicing veterinarians around the world with innovative, technology-based offerings, including a broad range of diagnostic products and services, practice-management systems and therapeutics. Our products enhance the ability of veterinarians to provide advanced medical care and to build more economically successful practices. IDEXX is also a worldwide leader in providing diagnostic tests and information for the production animal industry and tests for the quality and safety of water and milk. Headquartered in Westbrook, Maine, IDEXX Laboratories employs more than 3,000 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. 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 effectiveness of the Company’s sales and marketing activities; the Company’s ability to develop, license or obtain rights to new technologies; the Company’s ability to identify acquisition opportunities, complete acquisitions and integrate acquired businesses; the impact of competition and technological change on the markets for the Company’s products; 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 distributor purchasing decisions on sales of our products that are sold through distribution; changes or trends in veterinary medicine that affect the rate of use of the Company’s products and services by veterinarians; 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; disruptions, shortages or pricing changes that affect the Company’s purchases of products and materials from third parties, including from sole source suppliers; the effects of government regulatory decisions, customer demand, pricing and other factors on the realizability of the Company’s inventories; the Company’s ability to manufacture complex biologic products; the effects of operations outside the U.S., including from currency fluctuations, different regulatory, political and economic conditions, and different market conditions; and the loss of key employees. A further description of these and other factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2004 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations.
IDEXX Announces Third Quarter Results
October 28, 2005
Page 5 of 9
IDEXX Laboratories, Inc. and Subsidiaries |
Consolidated Statement of Operations |
Amounts in thousands except per share data (Unaudited) |
| | | Three Months Ended | | Nine Months Ended | |
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| | | September 30,
2005 | | September 30,
2004 | | September 30,
2005 | | September 30,
2004 | |
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Revenue: | Revenue | | $ | 158,069 | | $ | 134,111 | | $ | 471,125 | | $ | 404,907 | |
Expenses and | | | | | | | | | | | | | | |
Income: | Cost of revenue | | | 76,740 | | | 63,053 | | | 233,141 | | | 194,801 | |
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| Gross profit | | | 81,329 | | | 71,058 | | | 237,984 | | | 210,106 | |
| Sales and marketing | | | 24,303 | | | 21,132 | | | 75,221 | | | 62,794 | |
| General and administrative | | | 16,360 | | | 12,698 | | | 47,304 | | | 36,523 | |
| Research and development | | | 10,543 | | | 8,824 | | | 30,312 | | | 26,029 | |
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| Income from operations | | | 30,123 | | | 28,404 | | | 85,147 | | | 84,760 | |
| Interest income, net | | | 918 | | | 830 | | | 2,292 | | | 2,315 | |
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| Income before provision for income taxes and partner’s interest | | | 31,041 | | | 29,234 | | | 87,439 | | | 87,075 | |
| Provision for income taxes | | | 10,547 | | | 9,647 | | | 29,533 | | | 25,993 | |
| Partner’s share of consolidated loss | | | (110 | ) | | (109 | ) | | (321 | ) | | (315 | ) |
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Net Income: | Net income | | $ | 20,604 | | $ | 19,696 | | $ | 58,227 | | $ | 61,397 | |
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| Earnings per share: Basic | | $ | 0.63 | | $ | 0.58 | | $ | 1.78 | | $ | 1.78 | |
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| Earnings per share: Diluted | | $ | 0.61 | | $ | 0.56 | | $ | 1.70 | | $ | 1.70 | |
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| Shares outstanding: Basic | | | 32,482 | | | 34,050 | | | 32,686 | | | 34,467 | |
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| Shares outstanding: Diluted | | | 34,044 | | | 35,467 | | | 34,183 | | | 36,120 | |
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IDEXX Laboratories, Inc. and Subsidiaries |
Key Operating Information (Unaudited) |
| | | Three Months Ended | | Nine Months Ended | |
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| | | September 30,
2005 | | September 30,
2004 | | September 30,
2005 | | September 30,
2004 | |
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Key Operating | Gross profit | | | 51.5 | % | | 53.0 | % | | 50.5 | % | | 51.9 | % |
Ratios (as a
percentage of | Sales, marketing, general and administrative expense | | | 25.7 | % | | 25.2 | % | | 26.0 | % | | 24.6 | % |
revenue): | Research and development expense | | | 6.7 | % | | 6.6 | % | | 6.4 | % | | 6.4 | % |
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| Income from operations | | | 19.1 | % | | 21.2 | % | | 18.1 | % | | 20.9 | % |
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International | International revenue | | $ | 52,464 | | $ | 40,127 | | $ | 163,432 | | $ | 123,987 | |
Revenue: |
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| International revenue as percentage of total revenue | | | 33.2 | % | | 29.9 | % | | 34.7 | % | | 30.6 | % |
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IDEXX Announces Third Quarter Results
October 28, 2005
Page 6 of 9
IDEXX Laboratories, Inc. and Subsidiaries |
Segment Information |
Amounts in thousands (Unaudited) |
|
| | | Three Months Ended | | Nine Months Ended | |
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| |
| | | September 30,
2005 | | September 30,
2004 | | September 30,
2005 | | September 30,
2004 | |
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Revenue: | Companion Animal Group | | $ | 128,676 | | $ | 108,816 | | $ | 384,888 | | $ | 331,377 | |
| Water | | | 15,077 | | | 14,237 | | | 42,154 | | | 39,095 | |
| Food Diagnostics Group | | | 14,316 | | | 11,058 | | | 44,083 | | | 34,435 | |
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| Total | | $ | 158,069 | | $ | 134,111 | | $ | 471,125 | | $ | 404,907 | |
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Gross Profit: | Companion Animal Group | | $ | 62,926 | | $ | 53,757 | | $ | 185,014 | | $ | 161,942 | |
| Water | | | 10,226 | | | 9,811 | | | 28,325 | | | 26,552 | |
| Food Diagnostics Group | | | 8,177 | | | 7,490 | | | 24,645 | | | 21,612 | |
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| Total | | $ | 81,329 | | $ | 71,058 | | $ | 237,984 | | $ | 210,106 | |
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Income from Operations: | Companion Animal Group | | $ | 21,303 | | $ | 19,314 | | $ | 61,602 | | $ | 61,022 | |
| Water | | | 7,276 | | | 6,977 | | | 19,320 | | | 18,004 | |
| Food Diagnostics Group | | | 2,518 | | | 2,934 | | | 6,856 | | | 8,254 | |
| Other | | | (974 | ) | | (821 | ) | | (2,631 | ) | | (2,520 | ) |
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| Total | | $ | 30,123 | | $ | 28,404 | | $ | 85,147 | | $ | 84,760 | |
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Gross Profit | Companion Animal Group | | | 48.9 | % | | 49.4 | % | | 48.1 | % | | 48.9 | % |
(as a percentage of revenue): | Water | | | 67.8 | % | | 68.9 | % | | 67.2 | % | | 67.9 | % |
| Food Diagnostics Group | | | 57.1 | % | | 67.7 | % | | 55.9 | % | | 62.8 | % |
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Income from Operations | Companion Animal Group | | | 16.6 | % | | 17.7 | % | | 16.0 | % | | 18.4 | % |
(as a percentage of revenue): | Water | | | 48.3 | % | | 49.0 | % | | 45.8 | % | | 46.1 | % |
| Food Diagnostics Group | | | 17.6 | % | | 26.5 | % | | 15.6 | % | | 24.0 | % |
IDEXX Announces Third Quarter Results
October 28, 2005
Page 7 of 9
IDEXX Laboratories, Inc. and Subsidiaries |
Revenues by Product and Service Categories |
Amounts in thousands (Unaudited) |
| | | Three Months Ended | |
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| |
| | | September 30,
2005 | | September 30,
2004 | | Dollar
Change | | Percentage
Change | | Percentage
Change from
Currency (1) | | Percentage
Change Net
of Currency
Effect | |
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Net CAG Revenue: | Instruments and consumables | | $ | 52,438 | | $ | 47,864 | | $ | 4,574 | | | 9.6 | % | | 0.5 | % | | 9.1 | % |
| Rapid assay products | | | 25,291 | | | 22,444 | | | 2,847 | | | 12.7 | % | | 0.1 | % | | 12.6 | % |
| Laboratory and consulting services | | | 39,987 | | | 29,444 | | | 10,543 | | | 35.8 | % | | 0.1 | % | | 35.7 | % |
| Computer systems and digital radiography | | | 7,166 | | | 6,480 | | | 686 | | | 10.6 | % | | 0.2 | % | | 10.4 | % |
| Pharmaceutical products | | | 3,794 | | | 2,584 | | | 1,210 | | | 46.8 | % | | — | | | 46.8 | % |
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| Net CAG revenue | | | 128,676 | | | 108,816 | | | 19,860 | | | 18.3 | % | | 0.3 | % | | 18.0 | % |
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Net Water Revenue: | Water | | | 15,077 | | | 14,237 | | | 840 | | | 5.9 | % | | 0.5 | % | | 5.4 | % |
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Net FDG Revenue: | Production animal products | | | 10,558 | | | 7,313 | | | 3,245 | | | 44.4 | % | | 0.5 | % | | 43.9 | % |
| Dairy-testing products | | | 3,758 | | | 3,745 | | | 13 | | | 0.3 | % | | 0.2 | % | | 0.1 | % |
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| Net FDG revenue | | | 14,316 | | | 11,058 | | | 3,258 | | | 29.5 | % | | 0.4 | % | | 29.1 | % |
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Net Revenue: | | | $ | 158,069 | | $ | 134,111 | | $ | 23,958 | | | 17.9 | % | | 0.3 | % | | 17.6 | % |
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(1) Represents the percentage change in revenue attributed to the effect of changes in currency rates from the three months ended September 30, 2004 to the three months ended September 30, 2005. |
| | | Nine Months Ended | |
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| | | September 30,
2005 | | September 30,
2004 | | Dollar
Change | | Percentage
Change | | Percentage
Change from
Currency (1) | | Percentage
Change Net
of Currency
Effect | |
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Net CAG Revenue: | Instruments and consumables | | $ | 158,356 | | $ | 145,099 | | $ | 13,257 | | | 9.1 | % | | 1.3 | % | | 7.8 | % |
| Rapid assay products | | | 77,440 | | | 72,861 | | | 4,579 | | | 6.3 | % | | 0.5 | % | | 5.8 | % |
| Laboratory and consulting services | | | 116,898 | | | 85,021 | | | 31,877 | | | 37.5 | % | | 0.5 | % | | 37.0 | % |
| Computer systems and digital radiography | | | 21,826 | | | 20,399 | | | 1,427 | | | 7.0 | % | | 0.3 | % | | 6.7 | % |
| Pharmaceutical products | | | 10,368 | | | 7,997 | | | 2,371 | | | 29.6 | % | | — | | | 29.6 | % |
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| Net CAG revenue | | | 384,888 | | | 331,377 | | | 53,511 | | | 16.1 | % | | 0.8 | % | | 15.3 | % |
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Net Water Revenue: | Water | | | 42,154 | | | 39,095 | | | 3,059 | | | 7.8 | % | | 1.3 | % | | 6.5 | % |
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Net FDG Revenue: | Production animal products | | | 32,376 | | | 22,796 | | | 9,580 | | | 42.0 | % | | 2.7 | % | | 39.3 | % |
| Dairy-testing products | | | 11,707 | | | 11,639 | | | 68 | | | 0.6 | % | | 1.6 | % | | -1.0 | % |
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| Net FDG revenue | | | 44,083 | | | 34,435 | | | 9,648 | | | 28.0 | % | | 2.3 | % | | 25.7 | % |
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Net Revenue: | | | $ | 471,125 | | $ | 404,907 | | $ | 66,218 | | | 16.4 | % | | 1.0 | % | | 15.4 | % |
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(1) Represents the percentage change in revenue attributed to the effect of changes in currency rates from the nine months ended September 30, 2004 to the nine months ended September 30, 2005. |
IDEXX Announces Third Quarter Results
October 28, 2005
Page 8 of 9
IDEXX Laboratories, Inc. and Subsidiaries |
Consolidated Balance Sheet |
Amounts in thousands (Unaudited) |
| | | September 30,
2005 | | December 31,
2004 | |
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Assets: | Current Assets: | | | | | | | |
| Cash and cash equivalents | | $ | 57,768 | | $ | 47,156 | |
| Short-term investments | | | 71,688 | | | 90,116 | |
| Accounts receivable, net | | | 68,098 | | | 65,639 | |
| Inventories | | | 80,206 | | | 76,424 | |
| Other current assets | | | 21,916 | | | 22,257 | |
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| Total current assets | | | 299,676 | | | 301,592 | |
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| Long-term Investments | | | 2,052 | | | 19,687 | |
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| Property and equipment - cost | | | 145,283 | | | 137,851 | |
| Less: accumulated depreciation | | | 80,347 | | | 75,221 | |
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| Property and equipment, net | | | 64,936 | | | 62,630 | |
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| Other long-term assets, net | | | 125,966 | | | 130,328 | |
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| Total assets | | $ | 492,630 | | $ | 514,237 | |
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Liabilities and
Stockholders’
Equity: | Current Liabilities: | | | | | | | |
| Accounts payable | | $ | 18,404 | | $ | 14,723 | |
| Accrued expenses | | | 70,229 | | | 73,785 | |
| Notes payable | | | 542 | | | 1,291 | |
| Deferred revenue | | | 8,343 | | | 10,153 | |
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| Total current liabilities | | | 97,518 | | | 99,952 | |
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| Total long-term liabilities | | | 13,986 | | | 16,233 | |
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| Partner’s interest in subsidiary | | | 362 | | | 392 | |
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| Stockholders’ Equity: | | | | | | | |
| Common stock | | | 4,579 | | | 4,522 | |
| Additional paid-in capital | | | 431,611 | | | 410,817 | |
| Deferred equity-based compensation | | | 1,274 | | | 665 | |
| Retained earnings | | | 376,909 | | | 318,682 | |
| Treasury stock, at cost | | | (437,127 | ) | | (348,327 | ) |
| Accumulated other comprehensive income | | | 3,518 | | | 11,301 | |
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| Total stockholders’ equity | | | 380,764 | | | 397,660 | |
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| Total liabilities and stockholders’ equity | | $ | 492,630 | | $ | 514,237 | |
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IDEXX Laboratories, Inc. and Subsidiaries |
Key Balance Sheet Information (Unaudited) |
| | | September 30,
2005 | | December 31,
2004 | |
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Key
Balance Sheet
Information: | Total cash, cash equivalents and investments | | $ | 131,508 | | $ | 156,959 | |
| Days sales outstanding | | | 41 | | | 39 | |
| Inventory turns | | | 1.8 | | | 1.9 | |
IDEXX Announces Third Quarter Results |
October 28, 2005 |
Page 9 of 9 |
IDEXX Laboratories, Inc. and Subsidiaries |
Consolidated Statement of Cash Flows |
Amounts in thousands (Unaudited) |
| | | Nine Months Ended | |
| | |
| |
| | | September 30,
2005 | | December 31,
2004 | |
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Operating: | Cash Flows from Operating Activities: | | | | | | | |
| Net income | | $ | 58,227 | | $ | 61,397 | |
| Non-cash charges | | | 21,981 | | | 23,524 | |
| Changes in current assets and liabilities, net of acquisitions and disposals | | | (3,703 | ) | | (16,714 | ) |
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| Net cash provided by operating activities | | $ | 76,505 | | $ | 68,207 | |
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Investing: | Cash Flows from Investing Activities: | | | | | | | |
| Decrease in investments, net | | | 36,075 | | | 30,648 | |
| Purchase of property and equipment | | | (16,512 | ) | | (23,431 | ) |
| Net proceeds from sale of land and buildings | | | 803 | | | — | |
| Acquisition of businesses and intangible assets | | | (6,406 | ) | | (6,839 | ) |
| Acquisition of equipment leased to customers | | | (1,784 | ) | | (1,951 | ) |
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| Net cash used by investing activities | | $ | 12,176 | | $ | (1,573 | ) |
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Financing: | Cash Flows from Financing Activities: | | | | | | | |
| Repayment of notes payable | | | (2,056 | ) | | (356 | ) |
| Purchase of treasury stock | | | (88,800 | ) | | (94,004 | ) |
| Proceeds from the exercise of stock options | | | 14,941 | | | 17,550 | |
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| Net cash used by financing activities | | $ | (75,915 | ) | $ | (76,810 | ) |
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| Net effect of exchange rate changes | | | (2,154 | ) | | 68 | |
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| Net increase (decrease) in cash and cash equivalents | | | 10,612 | | | (10,108 | ) |
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| Cash and cash equivalents, beginning of period | | | 47,156 | | | 96,942 | |
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| Cash and cash equivalents, end of period | | $ | 57,768 | | $ | 86,834 | |
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IDEXX Laboratories, Inc. and Subsidiaries |
Free Cash Flow (Unaudited) |
| | | Nine Months Ended | |
| | |
| |
| | | September 30,
2005 | | December 31,
2004 | |
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Free Cash
| Net cash provided by operating activities | | $ | 76,505 | | $ | 68,207 | |
Flow: | Purchase of property and equipment | | | (16,512) | | | (23,431) | |
| Acquisition of equipment leased to customers | | | (1,784) | | | (1,951) | |
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| Free cash flow | | $ | 58,209 | | $ | 42,825 | |
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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. |
IDEXX Laboratories, Inc. and Subsidiaries |
Common Stock Repurchases |
| | | Three Months Ended | | Nine Months Ended | |
| | |
| |
| |
| | | September 30,
2005 | | September 30,
2004 | | September 30,
2005 | | September 30,
2004 | |
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| Total number of shares purchased | | | 595,500 | | | 720,400 | | | 1,493,200 | | | 1,728,300 | |
| Average price paid per share | | $ | 64.50 | | $ | 49.88 | | $ | 59.47 | | $ | 54.17 | |
