Published on April 25, 2008
Contact:
Merilee Raines, Chief Financial Officer, 1-207-556-8155
FOR
IMMEDIATE RELEASE
IDEXX
Laboratories Announces First Quarter Results
WESTBROOK,
Maine, April 25, 2008—
IDEXX
Laboratories, Inc. (NASDAQ: IDXX), today reported that revenue for the first
quarter of 2008 increased 18% to $249.1 million from $211.2 million for the
first quarter of 2007. Diluted earnings per share (“EPS”) for the quarter ended
March 31, 2008 were $0.43, compared to $0.32, for the same period in the prior
year. Non-GAAP adjusted diluted EPS for the first quarter grew 21% to $0.41
from
$0.34 for the first quarter of 2007.
“Our
first quarter results demonstrated the robustness of our diversified, global
business model. We continued to generate strong revenue growth across our
portfolio despite a weakening economy in the U.S.,” said Jonathan W. Ayers,
Chairman and Chief Executive Officer. “Our 17% revenue growth in the Companion
Animal Group was driven by 11% organic revenue growth, acquisitions that
strengthened our core businesses, and the benefit of currency translation on
international sales. We achieved double digit organic revenue growth, despite
a
comparison to an unusually strong first quarter in 2007, when our business
saw a
surge in revenue resulting from the pet food recall in North America. Overall,
I
was very pleased that the company was able to continue to perform well on both
the top line and bottom line.
“In
addition to this strong current quarter financial performance, IDEXX achieved
important milestones on our innovation agenda. We began shipping our two
next-generation point-of-care veterinary instruments, Catalyst Dx™ and SNAPshot
Dx™, at the end of the quarter. These two additions to the IDEXX VetLab Suite
strengthen an already strong in-house laboratory offering. We are on track
with
our disciplined ramp objectives and expect to place 1,000 to 1,200 Catalyst
Dx™
analyzers in 2008. Customer interest is very strong, as we expected, and our
sales volumes will not be constrained by market demand this year.”
Revenue
Performance
Companion
Animal Group (“CAG”) revenue for the first quarter of 2008 increased 17% to
$203.6 million from $173.4 million for the first quarter of 2007. Acquisitions
of reference laboratories contributed just under 3% to growth and changes in
foreign currency exchange rates contributed an additional 4%. Growth for the
quarter adjusted for acquisitions and foreign currency exchange rates was 11%.
Water
segment revenue for the first quarter of 2008 increased 17% to $16.8 million
from $14.4 million for the first quarter of 2007 due primarily to higher sales
volume, partly offset by lower average unit sales prices. Higher sales volumes
resulted in part from our commencement in September 2007 of distribution of
certain water testing kits manufactured by Invitrogen Corporation, which
contributed 6% to revenue growth. Compared to the same period of 2007, changes
in foreign currency exchange rates contributed 5% to Water revenue
growth.
IDEXX
Announces First Quarter Results
April
25,
2008
Page 2
of
11
Production
Animal Segment (“PAS”) revenue for the first quarter of 2008 increased 26% to
$21.2 million from $16.8 million for the first quarter of 2007 due primarily
to
higher livestock diagnostics sales volume, including sales attributable to
Institut Pourquier (“Pourquier”), which we acquired in March 2007. Sales of
Pourquier products contributed 12% to PAS revenue growth. The favorable impact
of higher sales volume was partly offset by lower average unit sales prices
for
our post-mortem test for bovine spongiform encephalopathy (“BSE”) due to greater
price competition. Compared to the same period of 2007, changes in foreign
currency exchange rates contributed 12% to PAS revenue growth.
Additional
Operating Results
Gross
profit for the first quarter of 2008 increased $21.3 million, or 20%, to $129.8
million from $108.6 million for the first quarter of 2007. As a percentage
of
total revenue, gross profit increased to 52% from 51%. Year-over-year, the
gross
profit percentage was favorably impacted by higher average unit sales prices
in
our rapid assay and laboratory and consulting services businesses; lower cost
of
slides sold for use in our chemistry analyzers; the impact of foreign currency
rates on sales denominated in those currencies; and the absence of discrete
items associated with purchase accounting for acquisitions that occurred in
the
first quarter of 2007. These favorable impacts were partially offset by
increased cost of service in the laboratory and consulting services
business.
Research
and development (“R&D”) expense for the first quarter of 2008 was $17.3
million, or 7% of revenue, compared to $16.0 million, or 8% of revenue, for
the
first quarter of 2007. R&D expense grew primarily as a result of higher
personnel costs due, in part, to incremental new product and technology
development initiatives and product enhancement efforts related primarily to
IDEXX VetLab®
instrumentation, rapid assay, and digital radiography products. These increases
were largely offset by a net decrease in new product development spending as
we
completed development of Catalyst Dx™ and SNAPshot Dx™.
Selling,
general and administrative (“SG&A”) expense for the first quarter of 2008
was $73.8 million, or 30% of revenue, compared to $61.7 million, or 29% of
revenue, for the first quarter of 2007. Increased SG&A expense was due
primarily to expanded worldwide sales, marketing and customer support resources;
higher spending on information technology; and incremental activities associated
with recently acquired businesses.
IDEXX
Announces First Quarter Results
April
25,
2008
Page 3
of
11
Supplementary
Analysis of Results
The
accompanying financial tables provide more information concerning our revenue
and other operating results for the three months ended March 31, 2008, as well
as a reconciliation of non-GAAP adjusted diluted EPS to earnings per
share.
Outlook
The
Company offers the following revised guidance for the full year of
2008:
| · |
Revenue
is expected to be $1.06 billion to $1.075 billion, updated from
guidance
of $1.05 billion to $1.07 billion provided in January of this year,
which
represents revenue growth of 15% to 17%.
|
| · |
Diluted
earnings per share are expected to be $1.84 to $1.87, updated from
guidance of $1.83 to $1.87 provided in January of this year, which
represents EPS growth of 26% to 28%. Excluding the impact of
acquisition-related purchase accounting and acquisition integration
costs
and the write-down of certain pharmaceutical assets in 2007 and discrete
income tax benefits in 2008, non-GAAP adjusted diluted EPS are projected
to grow 15% to 17%.
|
Conference
Call and Webcast Information
IDEXX
Laboratories will be hosting a conference call today at 9:00 a.m. (eastern)
to
discuss its first quarter results. To participate in the conference call, dial
612-332-0107 or 800-230-1766 and reference confirmation code 919872. An audio
replay will be available through May 2, 2008 by dialing 320-365-3844 and
referencing replay code 919872.
The
call
will also be available via live or archived Webcast on the IDEXX Laboratories'
web site at www.idexx.com.
Annual
Meeting
IDEXX
Laboratories, Inc. today announced that it will host a simultaneous Webcast
of
its Annual Meeting of Stockholders, to be held on Wednesday, May 7, 2008, at
10:00 a.m. (eastern) at the Portland Marriott at Sable Oaks in South Portland,
Maine.
Chairman
and Chief Executive Officer, Jonathan W. Ayers will chair the meeting. Investors
may listen to the Annual Meeting and view a presentation live via a link on
the
Company’s Web site, www.idexx.com. An archived edition of the meeting will be
available after 1:00 p.m. (eastern) on that day via the same link.
IDEXX
Announces First Quarter Results
April
25,
2008
Page 4
of
11
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 pharmaceuticals. IDEXX 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 Maine, IDEXX Laboratories employs
more than 4,500 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;
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 effects of deep or sustained economic weakness on pet owner
decisions regarding pet health care; 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; 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, 2007,
in
the section captioned "Risk Factors.”
IDEXX
Announces First Quarter Results
April
25,
2008
Page 5
of
11
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||
|
Consolidated
Statement of Operations
|
|||||||
|
Amounts
in thousands except per share data
(Unaudited)
|
|
Three
Months Ended
|
||||||||
|
March
31,
|
March
31,
|
|||||||
|
|
2008
|
2007
|
||||||
|
Revenue:
|
Revenue
|
$
|
249,074
|
$
|
211,155
|
|||
|
Expenses
and
|
||||||||
|
Income:
|
Cost
of revenue
|
119,238
|
102,576
|
|||||
|
Gross
profit
|
129,836
|
108,579
|
||||||
|
Sales
and marketing
|
44,001
|
35,582
|
||||||
|
General
and administrative
|
29,821
|
26,149
|
||||||
|
Research
and development
|
17,295
|
15,971
|
||||||
|
Income
from operations
|
38,719
|
30,877
|
||||||
|
Interest
income (expense), net
|
(485
|
)
|
28
|
|||||
|
Income
before provision for income taxes
|
38,234
|
30,905
|
||||||
|
Provision
for income taxes
|
10,683
|
9,878
|
||||||
|
Net
Income:
|
Net
income
|
$
|
27,551
|
$
|
21,027
|
|||
|
Earnings
per share: Basic
|
$
|
0.45
|
$
|
0.34
|
||||
|
Earnings
per share: Diluted
|
$
|
0.43
|
$
|
0.32
|
||||
|
Shares
outstanding: Basic
|
60,865
|
62,274
|
||||||
|
Shares
outstanding: Diluted
|
63,558
|
65,083
|
||||||
|
Historical
share and per share data has been retroactively restated to reflect
the
additional shares of common stock that were distributed on November
26,
2007 as a result of the two-for-one split of our outstanding common
stock.
|
||||||||
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||
|
Key
Operating Information (Unaudited)
|
|
Three
Months Ended
|
||||||||
|
March
31,
|
March
31,
|
|||||||
|
|
2008
|
2007
|
||||||
|
Key
Operating
|
Gross
profit
|
52.1
|
%
|
51.4
|
%
|
|||
|
Ratios
(as
a
|
Sales,
marketing, general and
|
|||||||
|
percentage
of
|
administrative
expense
|
29.6
|
%
|
29.2
|
%
|
|||
|
revenue):
|
Research
and development expense
|
6.9
|
%
|
7.6
|
%
|
|||
|
Income
from operations(1)
|
15.5
|
%
|
14.6
|
%
|
||||
|
International
|
International
revenue (in
thousands)
|
$
|
103,328
|
$
|
80,869
|
|||
|
Revenue:
|
International
revenue as a percentage of
|
|||||||
|
total
revenue
|
41.5
|
%
|
38.3
|
%
|
||||
(1)
The sum of individual items may not equal the total due to
rounding.
IDEXX
Announces First Quarter Results
April
25,
2008
Page 6
of
11
|
Non-GAAP
Financial Measures
|
|||||||||||||||||
|
Amounts
in thousands except per share data
(Unaudited)
|
|
Three
Months Ended
|
|||||||||||||||||||||||||
|
Gross
Profit
|
Income
from Operations |
Net
Income
|
Earnings
per Share Diluted |
||||||||||||||||||||||
|
Mar.
31,
|
Mar.
31,
|
Mar.
31,
|
Mar.
31,
|
Mar.
31,
|
Mar.
31,
|
Mar.
31,
|
Mar.
31,
|
||||||||||||||||||
|
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||
|
GAAP
measurement
|
$
|
129,836 |
$
|
108,579 |
$
|
38,719 |
$
|
30,877 |
$
|
27,551 |
$
|
21,027 |
$
|
0.43 |
$
|
0.32 | |||||||||
|
%
of
revenue
|
52.1 |
%
|
51.4 |
%
|
15.5 |
%
|
14.6 |
%
|
11.1 |
%
|
10.0 |
%
|
|||||||||||||
|
Acquisition-related
purchase accounting
|
|||||||||||||||||||||||||
|
and
acquisition integration costs
(1)
|
- |
1,248
|
- |
1,434
|
- | 904 | - |
0.01
|
|||||||||||||||||
|
Discrete
income tax benefits(2)
|
-
|
-
|
-
|
-
|
(1,472
|
)
|
-
|
(0.02
|
)
|
-
|
|||||||||||||||
|
Non-GAAP
comparative measurements(3)
|
$
|
129,836
|
$
|
109,827
|
$
|
38,719
|
$
|
32,311
|
$
|
26,079
|
$
|
21,931
|
$
|
0.41
|
$
|
0.34
|
|||||||||
|
%
of
revenue
|
52.1
|
%
|
52.0
|
%
|
15.5
|
%
|
15.3
|
%
|
10.5
|
%
|
10.4
|
%
|
|||||||||||||
|
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 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 the change from period to period due to specific
acquisition-related purchase accounting and integration costs is
not
representative of ongoing operations and is not indicative of future
performance. Specific acquisition-related discrete costs do not include
amortization expense related to acquired intangible assets. We applied
the
statutory income tax rates of the applicable tax jurisdictions to
calculate the after-tax impact of these discrete items.
|
|||||||||||||||||||||||||
|
(2)
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.
|
|||||||||||||||||||||||||
|
(3)
The sum of the individual items may not equal the non-GAAP measurement
due
to rounding of the individual items in this
presentation.
|
IDEXX
Announces First Quarter Results
April
25,
2008
Page 7
of
11
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||
|
Segment
Information
|
|||||||
|
Amounts
in thousands (Unaudited)
|
|
Three
Months Ended
|
||||||||
|
March
31,
|
March
31,
|
|||||||
|
|
2008
|
2007
|
||||||
|
Revenue:
|
CAG
|
$
|
203,609
|
$
|
173,433
|
|||
|
Water
|
16,816
|
14,405
|
||||||
|
PAS
|
21,162
|
16,811
|
||||||
|
Other
|
7,487
|
6,506
|
||||||
|
Total
|
$
|
249,074
|
$
|
211,155
|
||||
|
Gross
Profit:
|
CAG
|
$
|
101,985
|
$
|
86,330
|
|||
|
Water
|
10,315
|
9,232
|
||||||
|
PAS
|
14,233
|
10,963
|
||||||
|
Other
|
3,127
|
1,914
|
||||||
|
Unallocated
|
176
|
140
|
||||||
|
Total
|
$
|
129,836
|
$
|
108,579
|
||||
|
Income
from
|
||||||||
|
Operations:
|
CAG
|
$
|
29,555
|
$
|
23,585
|
|||
|
Water
|
6,270
|
5,642
|
||||||
|
PAS
|
5,828
|
3,965
|
||||||
|
Other
|
(189
|
)
|
(413
|
)
|
||||
|
Unallocated
|
(2,745
|
)
|
(1,902
|
)
|
||||
|
Total
|
$
|
38,719
|
$
|
30,877
|
||||
|
Gross
Profit
|
||||||||
|
(as
a percentage
|
||||||||
|
of
revenue):
|
CAG
|
50.1
|
%
|
49.8
|
%
|
|||
|
Water
|
61.3
|
%
|
64.1
|
%
|
||||
|
PAS
|
67.3
|
%
|
65.2
|
%
|
||||
|
Other
|
41.8
|
%
|
29.4
|
%
|
||||
|
Income
from
|
||||||||
|
Operations
|
||||||||
|
(as
a percentage
|
||||||||
|
of
revenue):
|
CAG
|
14.5
|
%
|
13.6
|
%
|
|||
|
Water
|
37.3
|
%
|
39.2
|
%
|
||||
|
PAS
|
27.5
|
%
|
23.6
|
%
|
||||
|
Other
|
(2.5
|
%)
|
(6.4
|
%)
|
||||
IDEXX
Announces First Quarter Results
April
25,
2008
Page 8
of
11
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||||||||||||||||
|
Revenues
by Product and Service Categories
|
|||||||||||||||||||||
|
Amounts
in thousands (Unaudited)
|
|
Three
Months Ended
|
||||||||||||||||||||||
|
Net
Revenue
|
March
31,
2008
|
March
31,
2007
|
Dollar
Change
|
Percentage
Change
|
Percentage
Change
from Currency(1)
|
Percentage
Change
from
Acquisitions(2)
|
Percentage
Change
Net of
Acquisitions
and
Currency
Effect(3)
|
|||||||||||||||
|
CAG
|
$
|
203,609
|
$
|
173,433
|
$
|
30,176
|
17.4
|
%
|
4.2
|
%
|
2.7
|
%
|
10.5
|
%
|
||||||||
|
Water
|
16,816
|
14,405
|
2,411
|
16.7
|
%
|
4.5
|
%
|
-
|
12.2
|
%
|
||||||||||||
|
PAS
|
21,162
|
16,811
|
4,351
|
25.9
|
%
|
11.8
|
%
|
12.2
|
%
|
1.9
|
%
|
|||||||||||
|
Other
|
7,487
|
6,506
|
981
|
15.1
|
%
|
4.8
|
%
|
13.7
|
%
|
(3.4
|
%)
|
|||||||||||
|
Total
|
$
|
249,074
|
$
|
211,155
|
$
|
37,919
|
18.0
|
%
|
4.9
|
%
|
3.6
|
%
|
9.5
|
%
|
||||||||
|
Three
Months Ended
|
||||||||||||||||||||||
|
Net
CAG Revenue
|
March
31,
2008
|
March
31,
2007
|
Dollar
Change
|
Percentage
Change
|
Percentage
Change
from
Currency(1)
|
Percentage
Change
from
Acquisitions(2)
|
Percentage
Change
Net of
Acquisitions
and
Currency
Effect(3)
|
|||||||||||||||
|
Instruments
and
consumables
|
$
|
75,610
|
$
|
66,956
|
$
|
8,654
|
12.9
|
%
|
4.8
|
%
|
-
|
8.1
|
%
|
|||||||||
|
Rapid
assay products
|
38,222
|
31,237
|
6,985
|
22.4
|
%
|
2.4
|
%
|
-
|
20.0
|
%
|
||||||||||||
|
Laboratory
and
consulting
services
|
70,107
|
57,888
|
12,219
|
21.1
|
%
|
5.2
|
%
|
8.1
|
%
|
7.8
|
%
|
|||||||||||
|
Practice
information
management
systems
and
digital radiography
|
15,025
|
12,525
|
2,500
|
20.0
|
%
|
2.0
|
%
|
-
|
18.0
|
%
|
||||||||||||
|
Pharmaceutical
products
|
4,645
|
4,827
|
(182
|
)
|
(3.8
|
%)
|
-
|
-
|
(3.8
|
%)
|
||||||||||||
|
Net
CAG revenue
|
$
|
203,609
|
$
|
173,433
|
$
|
30,176
|
17.4
|
%
|
4.2
|
%
|
2.7
|
%
|
10.5
|
%
|
||||||||
(1)
Represents the percentage change in revenue attributed to the effect of changes
in currency rates from the three months ended March 31, 2008 to the three months
ended March 31, 2007.
(2)
Represents the percentage change in revenue attributed to incremental revenues
during the three months ended March 31, 2008 compared to the three months ended
March 31, 2007 from businesses acquired since January 1, 2007.
(3)
Organic
growth
IDEXX
Announces First Quarter Results
April
25,
2008
Page 9
of
11
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||
|
Consolidated
Balance Sheet
|
|||||||
|
Amounts
in thousands (Unaudited)
|
|
March
31,
|
December
31,
|
|||||||
|
|
2008
|
2007
|
||||||
|
Assets:
|
Current
Assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
60,220
|
$
|
60,360
|
||||
|
Accounts
receivable, net
|
125,245
|
108,384
|
||||||
|
Inventories
|
99,878
|
98,804
|
||||||
|
Other
current assets
|
37,023
|
38,115
|
||||||
|
Total
current assets
|
322,366
|
305,663
|
||||||
|
Property
and equipment, at cost
|
270,340
|
255,176
|
||||||
|
Less:
accumulated depreciation
|
119,246
|
113,324
|
||||||
|
Property
and equipment, net
|
151,094
|
141,852
|
||||||
|
Other
long-term assets, net
|
263,397
|
254,664
|
||||||
|
Total
assets
|
$
|
736,857
|
$
|
702,179
|
||||
|
Liabilities
and
|
|
|||||||
|
Stockholders’
|
||||||||
|
Equity:
|
Current
Liabilities:
|
|||||||
|
Accounts
payable
|
$
|
25,301
|
$
|
32,510
|
||||
|
Accrued
expenses
|
88,300
|
107,248
|
||||||
|
Debt
|
140,682
|
72,956
|
||||||
|
Deferred
revenue
|
10,743
|
10,678
|
||||||
|
Total
current liabilities
|
265,026
|
223,392
|
||||||
|
Long-term
debt, net of current portion
|
5,540
|
5,727
|
||||||
|
Other
long-term liabilities
|
32,655
|
34,737
|
||||||
|
Total
long-term liabilities
|
38,195
|
40,464
|
||||||
|
Stockholders’
Equity:
|
||||||||
|
Common
stock
|
9,487
|
9,450
|
||||||
|
Additional
paid-in capital
|
526,169
|
514,773
|
||||||
|
Deferred
stock units
|
2,513
|
2,201
|
||||||
|
Retained
earnings
|
613,413
|
585,862
|
||||||
|
Treasury
stock, at cost
|
(749,318
|
)
|
(696,668
|
)
|
||||
|
Accumulated
other comprehensive income
|
31,372
|
22,705
|
||||||
|
Total
stockholders’ equity
|
433,636
|
438,323
|
||||||
|
Total
liabilities and stockholders’ equity
|
$
|
736,857
|
$
|
702,179
|
||||
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||
|
Key
Balance Sheet Information (Unaudited)
|
|
March
31,
|
December
31,
|
|||||||
|
|
2008
|
2007
|
||||||
|
Key
|
||||||||
|
Balance
Sheet
|
Days
sales outstanding
|
42.6
|
39.4
|
|||||
|
Information:
|
Inventory
turns
|
2.0
|
2.3
|
|||||
IDEXX
Announces First Quarter Results
April
25,
2008
Page
10
of
11
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||
|
Consolidated
Statement of Cash Flows
|
|||||||
|
Amounts
in thousands (Unaudited)
|
|
Three
Months Ended
|
||||||||
|
March
31,
|
March
31,
|
|||||||
|
|
2008
|
2007
|
||||||
|
Operating:
|
Cash
Flows from Operating Activities:
|
|||||||
|
Net
income
|
$
|
27,551
|
$
|
21,027
|
||||
|
Non-cash
charges
|
11,282
|
6,736
|
||||||
|
Changes
in current assets and liabilities, net of
|
||||||||
|
acquisitions
and disposals
|
(41,622
|
)
|
(29,553
|
)
|
||||
|
Net
cash used by operating activities
|
$
|
(2,789
|
)
|
$
|
(1,790
|
)
|
||
|
Investing:
|
Cash
Flows from Investing Activities:
|
|||||||
|
Decrease
in investments, net
|
-
|
35,000
|
||||||
|
Purchase
of property and equipment
|
(17,049
|
)
|
(10,492
|
)
|
||||
|
Acquisition
of businesses and intangible assets
|
(7,533
|
)
|
(80,311
|
)
|
||||
|
Acquisition
of equipment leased to customers
|
(226
|
)
|
(238
|
)
|
||||
|
Net
cash used by investing activities
|
$
|
(24,808
|
)
|
$
|
(56,041
|
)
|
||
|
Financing:
|
Cash
Flows from Financing Activities:
|
|||||||
|
Borrowings
on revolving credit facilities, net
|
67,765
|
73,188
|
||||||
|
Purchase
of treasury stock
|
(51,355
|
)
|
(34,416
|
)
|
||||
|
Proceeds
from the exercise of stock options
|
5,974
|
7,916
|
||||||
|
Tax
benefit from exercise of stock options
|
2,384
|
3,004
|
||||||
|
Net
cash provided by financing activities
|
$
|
24,768
|
$
|
49,692
|
||||
|
Net
effect of exchange rate changes
|
2,689
|
410
|
||||||
|
Net
decrease in cash and cash equivalents
|
(140
|
)
|
(7,729
|
)
|
||||
|
Cash
and cash equivalents, beginning of period
|
60,360
|
61,666
|
||||||
|
Cash
and cash equivalents, end of period
|
$
|
60,220
|
$
|
53,937
|
||||
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||
|
Free
Cash Flow
|
|||||||
|
Amounts
in thousands (Unaudited)
|
|
Three
Months Ended
|
||||||||
|
March
31,
|
March
31,
|
|||||||
|
|
2008
|
2007
|
||||||
|
Free
Cash
|
|
|||||||
|
Flow:
|
Net
cash used by operating activities
|
$
|
(2,789
|
)
|
$
|
(1,790
|
)
|
|
|
Financing
cash flows attributable to tax benefits from exercise of stock
options
|
2,384
|
3,004
|
||||||
|
Purchase
of fixed assets
|
(17,049
|
)
|
(10,492
|
)
|
||||
|
Acquisition
of equipment leased to customers
|
(226
|
)
|
(238
|
)
|
||||
|
Free
cash flow
|
$
|
(17,680
|
)
|
$
|
(9,516
|
)
|
||
|
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
Announces First Quarter Results
April
25,
2008
Page
11
of
11
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||
|
Common
Stock Repurchases
|
|||||||
|
Amounts
in thousands except per share data
(Unaudited)
|
|
Three
Months Ended
|
|||||||
|
March
31,
|
March
31,
|
||||||
|
2008
|
2007
|
||||||
|
Share
repurchases during the period
|
950
|
810
|
|||||
|
Average
price paid per share
|
$
|
54.03
|
$
|
42.50
|
|||
|
Shares
remaining under repurchase authorization as of March 31,
2008
|
5,902
|
||||||
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
||||||||||||
|
Earnings
per Share Adjusted for Stock Split (Unaudited)
|
|
Three
Months Ended
|
|||||||
|
March
31,
|
March
31,
|
||||||
|
2008
|
2007
|
||||||
|
Basic
|
|||||||
|
As
reported
|
$
|
0.45
|
$
|
0.68
|
|||
|
Adjusted
for stock split
|
$
|
0.45
|
$
|
0.34
|
|||
|
Diluted
|
|||||||
|
As
reported
|
$
|
0.43
|
$
|
0.65
|
|||
|
Adjusted
for stock split
|
$
|
0.43
|
$
|
0.32
|
|||