IDEXX Laboratories Announces Second Quarter Results
WESTBROOK, Maine, July 24 /PRNewswire-FirstCall/ -- IDEXX Laboratories, Inc. (Nasdaq: IDXX), today reported that revenues for the second quarter of 2009 were $265.7 million compared to $280.6 million for the second quarter of 2008. Organic revenue growth, as defined below, was 5%. Earnings per diluted share ("EPS") for the quarter ended June 30, 2009 were $0.55 compared to $0.63 for the same period in the prior year. Excluding incremental EPS that resulted from sales of pharmaceutical products that were subsequently divested or discontinued in 2008, EPS in the second quarter of 2008 would have been $0.54, and thus EPS growth without this contribution was 2%.
Organic revenue growth excludes the impact of changes in currency exchange rates, which reduced revenue growth by approximately 5%, and revenue from businesses acquired or divested subsequent to the beginning of the prior year period, including pharmaceutical products that were divested in the fourth quarter of 2008. Pharmaceutical revenues and related earnings in the second quarter of 2008 were exceptionally high due to the sale of the remaining inventory of PZI VET((R)) in connection with the discontinuation of that product.
"Our second quarter results reflect our continued focus on productivity in the current economic environment," said Jonathan Ayers, Chief Executive Officer. "Economic weakness reduced pet visits to U.S. veterinary clinics, our largest customer segment, by an estimated 4% year over year, similar to the first quarter of 2009. We nonetheless achieved 5% organic growth during the period. This growth was led by sales of our Catalyst Dx((R)) chemistry analyzers and consumables, which transitioned out of limited launch phase and into full commercialization in the second quarter, per our expectation. We are very pleased with customer adoption of this next generation system in Q2 and the performance of the instrument system in the field. We continue to expect around 2000 placements for the year."
"We also saw relative strength in certain other business areas, including our laboratory services business, and geographies, such as China."
"We continue to find efficiencies in our operating expenses while not cutting back on the critical investments that allow us to achieve our objectives, both operational and strategic. Operating expense productivity is becoming a way of life at IDEXX, and is an integral part of our plan for 2009 and beyond."
"We also benefited modestly, versus our last guidance in April, from the weakening of the U.S. dollar in relation to the currencies of our international markets. This positive impact from foreign currency exchange in relation to our outlook three months ago, assuming no changes for the balance of the year from levels exhibited over the last two months, causes us to increase our guidance in revenues and EPS slightly for the year."
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 second quarter of 2009 were $217.3 million compared to $230.0 million for the second quarter of 2008. The decrease in CAG revenue was due primarily to the absence of pharmaceutical product sales in the second quarter of 2009, as noted above, and the unfavorable impact of changes in foreign currency exchange rates. Organic growth of 5% was largely the result of increased sales of IDEXX VetLab((R) )instruments and consumables, driven by sales of our Catalyst Dx((R) )chemistry analyzer and SNAPshot Dx((R)) analyzer, both of which we began shipping to customers at the end of the first quarter of 2008. To a lesser extent, organic growth also was driven by price increases realized on sales of laboratory and consulting services. The impact of higher IDEXX VetLab((R) )instruments and consumables volumes was partly offset by lower sales volume and lower average unit sales prices for LaserCyte((R)) hematology analyzers.
Water. Water segment revenues for the second quarter of 2009 were $19.2 million compared to $20.2 million for the second quarter of 2008. The decrease in Water revenue was due primarily to the unfavorable impact of changes in foreign currency exchange rates, which reduced reported revenue by 7%. Organic growth of 2% was due to the favorable impact of higher average unit sales prices partly offset by lower sales volumes.
Production Animal Segment. Production Animal Segment ("PAS") revenues for the second quarter of 2009 were $19.6 million compared to $21.5 million for the second quarter of 2008. The decrease in PAS revenue was due primarily to the unfavorable impact of changes in foreign currency exchange rates, which reduced reported revenue by 10%. Organic growth of 1% was due to the favorable impact of higher average unit sales prices partly offset by lower sales volumes.
Year-to-Date Results
Year-to-date revenues were $502.2 million compared to $529.6 million for the six months ended June 30, 2008. Organic growth for the six months ended June 30, 2009 was 4%.
Year-to-date diluted EPS were $0.98 compared to $1.06 for the six months ended June 30, 2008. As shown in the reconciliation of non-GAAP diluted EPS to earnings per share in the supplementary table provided below, non-GAAP diluted EPS for the six months ended June 30, 2008 were $1.04, of which approximately $0.08 per share related to pharmaceutical sales.
Additional Operating Results for the Second Quarter
Gross profit for the second quarter of 2009 decreased $12.8 million, or 8%, to $138.4 million from $151.3 million for the second quarter of 2008. As a percentage of total revenue, gross profit decreased to 52% from 54%. The decrease in gross profit percentage was due primarily to the absence of higher margin pharmaceutical product sales in the second quarter of 2009, to higher relative sales of lower margin IDEXX VetLab((R)) instruments and laboratory and consulting services, and to higher overall manufacturing costs. These unfavorable impacts were partly offset by the impact of higher selling prices, primarily for laboratory and consulting services.
Research and development ("R&D") expense for the second quarter of 2009 was $16.6 million, or 6% of revenue, compared to $18.3 million, or 6.5% of revenue for the second quarter of 2008. The decrease in R&D expense was due primarily to the absence of pharmaceutical business R&D spending in the second quarter of 2009.
Selling, general and administrative ("SG&A") expense for the second quarter of 2009 was $72.7 million, or 27% of revenue, compared to $74.1 million, or 26% of revenue, for the second quarter of 2008. The decrease in SG&A expense resulted primarily from the favorable impact of exchange rates on foreign currency denominated expenses and the absence of pharmaceutical business SG&A spending in the second quarter of 2009. These impacts were partly offset by increases in spending related to information technology, facilities, and other general support functions in the U.S. and Europe.
Supplementary Analysis of Results
The accompanying financial tables provide more information concerning our revenue and other operating results for the three and six months ended June 30, 2009, as well as a reconciliation of non-GAAP diluted EPS to earnings per share.
Outlook
The Company provides the following updated guidance for the full year of 2009. This guidance reflects an assumption that the value of the U.S. dollar relative to other currencies will remain, for the balance of 2009, at levels exhibited for the past two months. Fluctuations in foreign currency exchange rates from current levels could have a significant positive or negative impact on our actual results of operations in 2009.
-- Revenues are expected to be approximately $1.02 billion, which
represents relatively flat reported revenues compared to 2008 and
organic revenue growth of approximately 5%. This guidance is higher than
the previous guidance of approximately $1.0 billion provided in April
2009, driven by currency benefits from the weakening of the U.S. Dollar
relative to other major currencies since April. Organic revenue growth
of 5% is unchanged from our previous guidance.
-- Diluted EPS are expected to be $1.88 to $1.92, an increase from our
previous guidance of $1.86 to $1.90 due principally to the anticipated
currency benefits discussed above.
-- Free cash flow is expected to be approximately 100% of net income.
Conference Call and Webcast Information
IDEXX Laboratories will be hosting a conference call today at 9:00 a.m. (eastern) to discuss its second quarter results. To participate in the conference call, dial 1-612-234-9960 or 1-800-230-1085 and reference confirmation code 107556. An audio replay will be available through Friday July 31, 2009 by dialing 1-320-365-3844 and referencing replay code 107556.
The call will also be available via live or archived Webcast on the IDEXX Laboratories' web site at www.idexx.com.
About IDEXX Laboratories
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 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 Maine, IDEXX Laboratories employs more than 4,700 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 impact of a weak economy on demand for the Company's products and services; the impact of changes and disruptions in financial and currency markets; the effectiveness of the Company's sales and marketing activities; 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 identify acquisition opportunities, complete acquisitions and integrate acquired businesses; the impact of competition, technological change, and veterinary hospital consolidation on the markets for the Company's products; the Company's ability to manufacture complex biologic 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 the Company's 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; 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; 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, 2008, and quarterly report on Form 10-Q for the quarter ended March 31, 2009, in the section captioned "Risk Factors."
IDEXX Laboratories, Inc. and Subsidiaries
Consolidated Statement of Operations
Amounts in thousands except per share data (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
------------------------------------------------------------
Revenue: Revenue $265,723 $280,570 $502,178 $529,644
Expenses
and
Income: Cost of revenue 127,283 129,310 239,305 248,548
------------------------------------------------------------
Gross profit 138,440 151,260 262,873 281,096
Sales and marketing 41,876 44,214 82,861 88,215
General and
administrative 30,794 29,881 59,862 59,702
Research and
development 16,594 18,274 32,533 35,569
------------------------------------------------------------
Income from
operations 49,176 58,891 87,617 97,610
Interest expense,
net 403 643 799 1,128
------------------------------------------------------------
Income before
provision for
income taxes 48,773 58,248 86,818 96,482
Provision for income
taxes 15,106 18,884 27,080 29,567
------------------------------------------------------------
Net Income: Net income $33,667 $39,364 $59,738 $66,915
------------------------------------------------------------
Earnings per share:
Basic $0.57 $0.66 $1.01 $1.11
------------------------------------------------------------
Earnings per share:
Diluted $0.55 $0.63 $0.98 $1.06
------------------------------------------------------------
Shares outstanding:
Basic 58,911 60,029 59,041 60,448
------------------------------------------------------------
Shares outstanding:
Diluted 60,697 62,440 60,688 63,017
------------------------------------------------------------
IDEXX Laboratories, Inc. and Subsidiaries
Key Operating Information (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Key Operating Gross profit 52.1% 53.9% 52.3% 53.1%
Ratios (as a Sales, marketing,
percentage of general and
revenue): administrative
expense 27.3% 26.4% 28.4% 27.9%
Research and
development
expense 6.2% 6.5% 6.5% 6.7%
Income from
operations (1) 18.5% 21.0% 17.4% 18.4%
International International
Revenue: revenue (in
thousands) $105,999 $113,928 $196,411 $217,256
International
revenue as a
percentage of
total revenue 39.9% 40.6% 39.1% 41.0%
(1) The sum of individual items may not equal the total due to rounding.
IDEXX Laboratories, Inc. and Subsidiaries
Non-GAAP Financial Measures
Amounts in thousands except per share data (Unaudited)
Six Months Ended
----------------------------------------------------------------------
Income from
Gross Profit Operations
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
----------------------------------------------------------------------
GAAP measurement $262,873 $281,096 $87,617 $97,610
% of revenue 52.3% 53.1% 17.4% 18.4%
Discrete income
tax benefits(1) - - - -
----------------------------------------------------------------------
Non-GAAP comparative
measurements(2) $262,873 $281,096 $87,617 $97,610
----------------------------------------------------------------------
% of revenue 52.3% 53.1% 17.4% 18.4%
Earnings per Share
Net Income Diluted
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
----------------------------------------------------------------------
GAAP measurement $59,738 $66,915 $0.98 $1.06
% of revenue 11.9% 12.6%
Discrete income
tax benefits(1) - (1,472) - (0.02)
----------------------------------------------------------------------
Non-GAAP comparative
measurements(2) $59,738 $65,443 $0.98 $1.04
----------------------------------------------------------------------
% of revenue 11.9% 12.4
Management believes adjusted diluted EPS is a useful non-GAAP financial
measure to evaluate the results of ongoing operations, excluding
significant specified events, period over period, and therefore believes
that investors may find this information useful in addition to the GAAP
results.
We use these supplemental non-GAAP financial measures to evaluate the
Company's comparative financial performance. The specified items that are
excluded in these non-GAAP measures are actual charges and benefits that
impact net income and cash flows, however, we believe that it is useful to
evaluate our core business performance period over period excluding
these specified items, in addition to relying upon GAAP financial
measures.
(1) We believe that certain significant discrete income tax items create
impacts on financial measures that are not indicative of future
performance because the items are not likely to recur within a reasonable
period. For 2008, the separately identified discrete income tax benefit
was due to a reduction in international deferred tax liabilities due to
lower anticipated international tax rates.
(2) The sum of the individual items may not equal the non-GAAP measurement
due to rounding of the individual items in this presentation.
IDEXX Laboratories, Inc. and Subsidiaries
Segment Information
Amounts in thousands (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
-------------------------------------------------------------------------
Revenue: CAG $217,289 $229,982 $410,981 $432,773
Water 19,165 20,150 35,016 36,966
PAS 19,639 21,489 37,905 42,651
Other 9,630 8,949 18,276 17,254
-------------------------------------------------------------------------
Total $265,723 $280,570 $502,178 $529,644
-------------------------------------------------------------------------
Gross Profit: CAG $108,334 $120,481 $204,776 $222,035
Water 12,554 12,433 23,710 22,748
PAS 13,299 14,430 26,407 28,663
Other 4,193 3,820 7,741 7,378
Unallocated 60 96 239 272
-------------------------------------------------------------------------
Total $138,440 $151,260 $262,873 $281,096
-------------------------------------------------------------------------
Income from
Operations: CAG $39,912 $47,488 $68,991 $76,612
Water 8,608 8,302 15,920 14,572
PAS 5,108 5,514 10,058 11,342
Other (30) 265 99 507
Unallocated (4,422) (2,678) (7,451) (5,423)
-------------------------------------------------------------------------
Total $49,176 $58,891 $87,617 $97,610
-------------------------------------------------------------------------
Gross Profit
(as a
percentage
of revenue): CAG 49.9% 52.4% 49.8% 51.3%
Water 65.5% 61.7% 67.7% 61.5%
PAS 67.7% 67.2% 69.7% 67.2%
Other 43.5% 42.7% 42.4% 42.8%
Income from
Operations
(as a
percentage
of revenue): CAG 18.4% 20.6% 16.8% 17.7%
Water 44.9% 41.2% 45.5% 39.4%
PAS 26.0% 25.7% 26.5% 26.6%
Other (0.3%) 3.0% 0.5% 2.9%
IDEXX Laboratories, Inc. and Subsidiaries
Revenues by Product and Service Categories
Amounts in thousands (Unaudited)
Three Months Ended
-----------------------------------------------------------------------
June 30, June 30, Dollar Percentage
Net Revenue 2009 2008 Change Change
-----------------------------------------------------------------------
CAG $217,289 $229,982 $(12,693) (5.5%)
Water 19,165 20,150 (985) (4.9%)
PAS 19,639 21,489 (1,850) (8.6%)
Other 9,630 8,949 681 7.6%
-----------------------------------------------------------------------
Total $265,723 $280,570 $(14,847) (5.3%)
-----------------------------------------------------------------------
Percentage
Change Net of
Percentage Acquisitions/
Percentage Change from Divestitures
Change from Acquisitions/ and Currency
Net Revenue Currency(1) Divestitures(2) Effect(3)
-----------------------------------------------------------------------
CAG (4.6%) (6.2%) 5.3%
Water (6.6%) - 1.7%
PAS (9.9%) - 1.3%
Other (2.1%) - 9.7%
Total (5.1%) (5.1%) 4.9%
Three Months Ended
-----------------------------------------------------------------------
June 30, June 30, Dollar Percentage
Net Revenue 2009 2008 Change Change
-----------------------------------------------------------------------
Instruments and consumables $83,732 $80,777 $2,955 3.7%
Rapid assay products 41,567 41,618 (51) (0.1%)
Laboratory and consulting
services 77,876 79,341 (1,465) (1.8%)
Practice information
management systems and
digital radiography 14,114 14,015 99 0.7%
Pharmaceutical products - 14,231 (14,231) (100.0%)
-----------------------------------------------------------------------
Net CAG revenue $217,289 $229,982 $(12,693) (5.5%)
-----------------------------------------------------------------------
Percentage
Change Net of
Percentage Acquisitions/
Percentage Change from Divestitures
Change from Acquisitions/ and Currency
Net Revenue Currency(1) Divestitures(2) Effect(3)
-----------------------------------------------------------------------
Instruments and consumables (5.7%) - 9.4%
Rapid assay products (1.8%) - 1.7%
Laboratory and consulting
services (6.4%) - 4.6%
Practice information management
systems and digital radiography (1.8%) - 2.5%
Pharmaceutical products - (100.0%) -
Net CAG revenue (4.6%) (6.2%) 5.3%
(1) Represents the percentage change in revenue attributed to the effect
of changes in currency rates from the three months ended June 30, 2009 to
the three months ended June 30, 2008.
(2) Represents the percentage change in revenue during the three months
ended June 30, 2009 compared to the three months ended June 30, 2008
attributed to incremental revenues from businesses acquired or revenues
lost from businesses divested or discontinued subsequent to March 31,
2008.
(3) Organic growth
IDEXX Laboratories, Inc. and Subsidiaries
Revenues by Product and Service Categories
Amounts in thousands (Unaudited)
Six Months Ended
---------------------------------------------------------------------
June 30, June 30, Dollar Percentage
Net Revenue 2009 2008 Change Change
---------------------------------------------------------------------
CAG $410,981 $432,773 $(21,792) (5.0%)
Water 35,016 36,966 (1,950) (5.3%)
PAS 37,905 42,651 (4,746) (11.1%)
Other 18,276 17,254 1,022 5.9%
---------------------------------------------------------------------
Total $502,178 $529,644 $(27,466) (5.2%)
---------------------------------------------------------------------
Percentage
Change Net of
Percentage Acquisitions/
Percentage Change from Divestitures
Change from Acquisitions/ and Currency
Net Revenue Currency(1) Divestitures(2) Effect(3)
-----------------------------------------------------------------------
CAG (5.2%) (4.1%) 4.3%
Water (7.4%) - 2.1%
PAS (9.7%) - (1.4%)
Other (2.0%) - 7.9%
Total (5.7%) (3.3%) 3.8%
Six Months Ended
---------------------------------------------------------------------
June 30, June 30, Dollar Percentage
Net Revenue 2009 2008 Change Change
---------------------------------------------------------------------
Instruments and
consumables $155,967 $156,387 $(420) (0.3%)
Rapid assay products 79,244 80,329 (1,085) (1.4%)
Laboratory and
consulting services 146,568 149,448 (2,880) (1.9%)
Practice information
management systems and
digital radiography 29,148 29,040 108 0.4%
Pharmaceutical products 54 17,569 (17,515) (99.7%)
---------------------------------------------------------------------
Net CAG
revenue $410,981 $432,773 $(21,792) (5.0%)
---------------------------------------------------------------------
Percentage
Change Net of
Percentage Acquisitions/
Percentage Change from Divestitures
Change from Acquisitions/ and Currency
Net Revenue Currency(1) Divestitures(2) Effect(3)
-----------------------------------------------------------------------
Instruments and
consumables (6.4%) - 6.1%
Rapid assay
products (1.8%) - 0.4%
Laboratory and
consulting
services (7.1%) - 5.2%
Practice
information
management
systems and
digital
radiography (2.4%) - 2.8%
Pharmaceutical
products - (100.0%) 0.3%
Net CAG revenue (5.2%) (4.1%) 4.3%
(1) Represents the percentage change in revenue attributed to the effect
of changes in currency rates from the six months ended June 30, 2009 to
the six months ended June 30, 2008.
(2) Represents the percentage change in revenue during the six months
ended June 30, 2009 compared to the six months ended June 30, 2008
attributed to incremental revenues from businesses acquired or revenues
lost from businesses divested or discontinued subsequent to December 31,
2007.
(3) Organic growth
IDEXX Laboratories, Inc. and Subsidiaries
Consolidated Balance Sheet
Amounts in thousands (Unaudited)
June 30, December 31,
2009 2008
---------------------------------------------------------
Assets: Current Assets:
Cash and cash equivalents $103,744 $78,868
Accounts receivable, net 118,782 111,498
Inventories 122,924 115,926
Other current assets 38,887 49,598
---------------------------------------------------------
Total current assets 384,337 355,890
---------------------------------------------------------
Property and equipment, at cost 333,002 320,198
Less: accumulated depreciation 143,342 130,552
---------------------------------------------------------
Property and equipment, net 189,660 189,646
---------------------------------------------------------
Other long-term assets, net 224,513 219,901
---------------------------------------------------------
Total assets $798,510 $765,437
---------------------------------------------------------
Liabilities and
Stockholders'
Equity: Current Liabilities:
Accounts payable $26,472 $28,006
Accrued expenses 100,218 104,616
Debt 75,586 151,385
Deferred revenue 10,834 11,285
---------------------------------------------------------
Total current liabilities 213,110 295,292
---------------------------------------------------------
Long-term debt, net of current
portion 4,694 5,094
Line of credit, net of current
portion 80,000 -
Other long-term liabilities 30,132 26,857
---------------------------------------------------------
Total long-term liabilities 114,826 31,951
---------------------------------------------------------
Total stockholders' equity 470,574 438,194
---------------------------------------------------------
Total liabilities and stockholders'
equity $798,510 $765,437
---------------------------------------------------------
IDEXX Laboratories, Inc. and Subsidiaries
Key Balance Sheet Information (Unaudited)
June 30, March 31, Dec. 31, Sept. 30, June 30,
2009 2009 2008 2008 2008
---------------------------------------------------------
Key
Balance Sheet Days sales
Information: out-
standing 40.2 43.8 41.9 42.3 39.9
Inventory
turns 1.8 1.6 2.0 1.9 2.1
IDEXX Laboratories, Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Amounts in thousands (Unaudited)
Six Months Ended
June 30, June 30,
2009 2008
------------------------------------------------------------
Operating: Cash Flows from Operating
Activities:
Net income $59,738 $66,915
Non-cash charges 33,677 27,354
Changes in current assets
and liabilities, net of
acquisitions (22,534) (26,129)
------------------------------------------------------------
Net cash provided by operating
activities $70,881 $68,140
------------------------------------------------------------
Investing: Cash Flows from Investing
Activities:
Purchase of property and
equipment (21,087) (42,564)
Proceeds from disposition of
pharmaceutical product lines 1,377 -
Proceeds from sale of property
and equipment 1,076 -
Acquisition of businesses and
intangible assets - (8,514)
Acquisition of equipment leased
to customers (273) (429)
------------------------------------------------------------
Net cash used by investing
activities $(18,907) $(51,507)
------------------------------------------------------------
Financing: Cash Flows from Financing
Activities:
Borrowings on revolving
credit facilities, net 3,782 85,948
Payment of other notes payable (436) (357)
Purchase of treasury stock (39,725) (102,331)
Proceeds from the exercise
of stock options and
employee stock purchase plans 6,888 9,174
Tax benefit from exercise of
stock options and vesting
of restricted stock units 1,355 3,198
------------------------------------------------------------
Net cash used by financing
activities $(28,136) $(4,368)
------------------------------------------------------------
Net effect of changes in
exchange rates on cash 1,038 2,640
------------------------------------------------------------
Net increase in cash and
cash equivalents 24,876 14,905
------------------------------------------------------------
Cash and cash equivalents,
beginning of period 78,868 60,360
------------------------------------------------------------
Cash and cash equivalents,
end of period $103,744 $75,265
------------------------------------------------------------
IDEXX Laboratories, Inc. and Subsidiaries
Free Cash Flow
Amounts in thousands (Unaudited)
Six Months Ended
June 30, June 30,
2009 2008
------------------------------------------------------------
Free Cash
Flow: Net cash provided by operating
activities $70,881 $68,140
Financing cash flows
attributable to tax benefits
from exercise of stock options 1,355 3,198
Purchase of fixed assets (21,087) (42,564)
Acquisition of equipment
leased to customers (273) (429)
------------------------------------------------------------
Free cash flow $50,876 $28,345
------------------------------------------------------------
Free cash flow indicates the cash generated from operations
and tax benefits attributable to stock option exercises,
reduced by 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.
IDEXX Laboratories, Inc. and Subsidiaries
Common Stock Repurchases
Amounts in thousands except per share data (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
------------------------------------------------------------------------
Share repurchases during
the period 593 1,002 1,061 1,952
Average price paid per share $41.72 $50.89 $37.46 $52.42
Shares remaining under
repurchase authorization
as of June 30, 2009 3,152
Contact: Merilee Raines, Chief Financial Officer, 1-207-556-8155
SOURCE IDEXX Laboratories, Inc.
Released July 24, 2009