Published on April 24, 2009
Contact:
Merilee Raines, Chief Financial Officer, 1-207-556-8155
FOR
IMMEDIATE RELEASE
IDEXX
Laboratories Announces First Quarter Results
WESTBROOK, Maine, April 24,
2009 — IDEXX Laboratories, Inc. (NASDAQ: IDXX), today reported that
revenues for the first quarter of 2009 were $236.5 million compared to $249.1
million for the first quarter of 2008. The decrease in revenues was due
primarily to the unfavorable impact of changes in foreign currency exchange
rates and the absence of pharmaceutical product sales in the first quarter of
2009, due to the divestiture in the fourth quarter of 2008 of our on-market
pharmaceutical products. Organic growth, which is reported revenue growth
adjusted to eliminate the effect of changes in foreign currency exchange rates
and revenues from businesses acquired or divested subsequent to December 31,
2007, was 3% for the quarter. Earnings per diluted share (“EPS”) were $0.43 for
the quarters ended March 31, 2009 and 2008. Non-GAAP diluted EPS grew 5% when
compared to first quarter 2008 non-GAAP diluted EPS of $0.41. A reconciliation
of non-GAAP diluted EPS to earnings per share is included in the supplementary
table provided below.
“I am
very satisfied with our performance in the quarter, a time defined by economic
uncertainty, global recession and a strong dollar that lowers our international
and export revenues as reported in U.S. dollars,” said Jonathan Ayers, Chairman
and CEO. “Organic revenue growth of 3% for the company was a bit lower than
anticipated, as most of our markets were impacted by the recession to a slightly
larger degree than we expected in January. However, our successful focus
on operating efficiency and cost control helped to more than offset this slower
organic revenue growth.”
“Despite
our focus on expense control, we have continued to invest significantly in the
development and commercialization of the innovative products and services that
are central to our strategy. We made very substantial progress in the
post-launch improvements of our new chemistry instrument, Catalyst Dx™, which has
continued to improve the customer experience. We placed more instruments in the
quarter than expected, and yet still maintained our expected backlog at the
quarter end. We expect to exit our controlled launch of the analyzer in the
second quarter and enter a period of more aggressive placements. As a result we
continue to estimate 2,000 placements for the year.”
“Since
our last earnings call, we have also launched an important new cardiac test in
our reference laboratories for both dogs and cats. The test, called
Cardiopet™ proBNP,
is the first blood test that provides the veterinarian with a simple protocol to
determine if a pet has a cardiac condition. Cardiopet proBNP is yet another
innovative diagnostic tool that we expect will further differentiate our global
reference lab offering.”
IDEXX
Announces First Quarter Results
April 24,
2009
Page 2 of
12
“Based
upon the effects of the economy that we observed in the first quarter and our
ability to control expenses during the period, we reduced our revenue outlook
somewhat for the year while raising the lower end of our EPS expectations. We
believe that our performance demonstrates the fundamental strength of our
business model and that we will be well positioned for higher growth when
economic conditions improve.”
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 first quarter of
2009 were $193.7 million compared to $202.8 million for the first quarter of
2008. The decrease in CAG revenues was due primarily to the unfavorable impact
of changes in foreign currency exchange rates and the absence of pharmaceutical
product sales in the first quarter of 2009, as noted above. Organic growth, as
defined above, of 3% was largely the result of increased sales of laboratory and
consulting services, driven by the impact of price increases, and increased
IDEXX VetLab® sales,
driven by sales of our Catalyst Dx™
chemistry analyzer and SNAPshot Dx™
analyzer, both of which we began shipping to customers at the end of the first
quarter of 2008. The impact of higher average unit sales prices for IDEXX
VetLab®
consumables was largely offset by a decrease in sales volumes. These
favorable items were partly offset by a decrease in rapid assay sales, resulting
from lower average unit sales prices on canine and feline SNAP® tests
due primarily to sales promotions offered within the quarter. SNAP® 3Dx® and
SNAP®4Dx® volumes
were appreciably higher in the first quarter of 2009 as compared to the first
quarter of 2008 as a result of specific sales promotions offered for these
products.
Water. Water segment
revenues for the first quarter of 2009 were $15.9 million compared to $16.8
million for the first quarter of 2008. The decrease in Water revenues was due
primarily to the unfavorable impact of changes in foreign currency exchange
rates, which reduced reported revenue by 8%. Organic growth, as defined above,
of 3% was due to the favorable impact of higher relative sales volume in
countries where products sell at higher average unit sales prices, partly offset
by lower sales volumes. Decreased sales volume was due primarily to lower sales
volume of our Colilert®
products, used to detect total coliforms and E. coli in water,
attributable in part to lower sales in certain economically sensitive market
segments.
Production Animal
Segment. Production Animal Segment (“PAS”) revenues for the first quarter
of 2009 were $18.3 million compared to $21.2 million for the first quarter of
2008. The decrease in PAS revenues was due primarily to the unfavorable impact
of changes in foreign currency exchange rates, which reduced reported revenue by
10%. Organically, PAS revenue declined by 4% due to lower sales volumes and
lower average unit sales prices. Lower sales volumes were due largely to the
completion of a bovine viral diarrhea virus (“BVDV”) eradication program. Lower
average unit sales prices were due primarily to increased price
competition.
IDEXX
Announces First Quarter Results
April 24,
2009
Page 3 of
12
Additional
Operating Results for the First Quarter
Gross
profit for the first quarter of 2009 decreased $5.4 million, or 4%, to $124.4
million from $129.8 million for the first quarter of 2008. As a percentage of
total revenue, gross profit increased slightly to 53% from 52% due primarily to
the favorable impact of foreign currency hedge contracts and the favorable
currency impact of foreign currency denominated expenses, net of the unfavorable
impact that strengthening of the U.S. dollar had on sales denominated in foreign
currencies, and to the impact of higher selling prices. These net favorable
impacts were partly offset by higher costs of instrument service relating to the
larger installed base of IDEXX VetLab®
instruments.
Research
and development (“R&D”) expense for the first quarter of 2009 was $15.9
million, compared to $17.3 million for the first quarter of 2008, representing
7% of revenue in both periods. The decrease in R&D expense was due primarily
to the absence of pharmaceutical business R&D spending in the first quarter
of 2009.
Selling,
general and administrative (“SG&A”) expense for first quarter of 2009 was
$70.1 million compared to $73.8 million for the first quarter of 2008,
representing 30% of revenue in both periods. The decrease in SG&A expense
resulted primarily from the favorable impact of exchange rates on foreign
currency denominated expenses, the absence of pharmaceutical business SG&A
spending in the first quarter of 2009, and lower spending on sales commissions,
partly offset by higher personnel costs due, in part, to the addition of
customer service, marketing and sales personnel.
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, 2009, as well
as a reconciliation of non-GAAP diluted EPS to earnings per share.
Outlook
for 2009
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 at its current level for the balance of 2009.
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.
IDEXX
Announces First Quarter Results
April 24,
2009
Page 4 of
12
|
|
·
|
Revenues
are expected to be approximately $1.0 billion, which represents a change
in reported revenues of -2% compared to 2008 revenues and organic revenue
growth of approximately 5%. This guidance is down from the previous
guidance of $1.02 to $1.04 billion provided in January 2009, driven by a
lower organic growth rate assumption reflecting our assumption that the
economic conditions that we experienced in the first quarter — slightly
worse than we anticipated in January — will continue throughout the
year.
|
|
|
·
|
Diluted
EPS are expected to be between $1.86 to $1.90 as compared to previous
guidance of $1.84 to $1.90, reflecting the benefit of our continued focus
on operational efficiency and expense management in an environment of
lower organic revenue growth.
|
|
|
·
|
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 first quarter
results. To participate in the conference call, dial 800-230-1059 or
612-288-0329 and reference confirmation code 996071. An audio replay will be
available through May 1, 2009 by dialing 320-365-3844 and referencing replay
code 996071.
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 6, 2009, at
10:00 a.m. (eastern) at the Portland Marriott at Sable Oaks in South Portland,
Maine.
Chairman
and CEO, Jonathan 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.
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.
IDEXX
Announces First Quarter Results
April 24,
2009
Page 5 of
12
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; 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, in the section captioned
"Risk
Factors.”
IDEXX
Announces First Quarter Results
April 24,
2009
Page 6 of
12
IDEXX
Laboratories, Inc. and Subsidiaries
Consolidated
Statement of Operations
Amounts
in thousands except per share data (Unaudited)
|
Three Months Ended
|
|||||||||
|
March 31,
|
March 31,
|
||||||||
|
2009
|
2008
|
||||||||
|
Revenue:
|
Revenue
|
$ | 236,455 | $ | 249,074 | ||||
|
Expenses
and
|
|||||||||
|
Income:
|
Cost
of revenue
|
112,022 | 119,238 | ||||||
|
Gross
profit
|
124,433 | 129,836 | |||||||
|
Sales
and marketing
|
40,985 | 44,001 | |||||||
|
General
and administrative
|
29,068 | 29,821 | |||||||
|
Research
and development
|
15,939 | 17,295 | |||||||
|
Income
from operations
|
38,441 | 38,719 | |||||||
|
Interest
expense, net
|
396 | 485 | |||||||
|
Income
before provision for income taxes
|
38,045 | 38,234 | |||||||
|
Provision
for income taxes
|
11,974 | 10,683 | |||||||
|
Net
Income:
|
Net
income
|
$ | 26,071 | $ | 27,551 | ||||
|
Earnings
per share: Basic
|
$ | 0.44 | $ | 0.45 | |||||
|
Earnings
per share: Diluted
|
$ | 0.43 | $ | 0.43 | |||||
|
Shares
outstanding: Basic
|
59,172 | 60,865 | |||||||
|
Shares
outstanding: Diluted
|
60,606 | 63,558 | |||||||
IDEXX
Laboratories, Inc. and Subsidiaries
Key Operating Information
(Unaudited)
|
Three Months Ended
|
|||||||||
|
March 31,
|
March 31,
|
||||||||
|
2009
|
2008
|
||||||||
|
Key
Operating
|
Gross
profit
|
52.6 | % | 52.1 | % | ||||
|
Ratios
(as
a
|
Sales,
marketing, general and administrative expense
|
29.6 | % | 29.6 | % | ||||
|
percentage of revenue):
|
Research
and development expense
|
6.7 | % | 6.9 | % | ||||
|
Income
from operations (1)
|
16.3 | % | 15.5 | % | |||||
|
International
|
International
revenue (in
thousands)
|
$ | 90,412 | $ | 103,328 | ||||
|
Revenue:
|
International
revenue as a percentage of total revenue
|
38.2 | % | 41.5 | % | ||||
(1) The
sum of individual items may not equal the total due to
rounding.
IDEXX
Announces First Quarter Results
April 24,
2009
Page 7 of
12
IDEXX
Laboratories, Inc. and Subsidiaries
Non-GAAP
Financial Measures
Amounts
in thousands except per share data (Unaudited)
|
Three Months Ended
|
||||||||||||||||||||||||||||||||
|
Income from
|
Earnings per Share
|
|||||||||||||||||||||||||||||||
|
Gross Profit
|
Operations
|
Net Income
|
Diluted
|
|||||||||||||||||||||||||||||
|
March 31,
|
March 31,
|
March 31,
|
March 31,
|
March 31,
|
March 31,
|
March 31,
|
March 31,
|
|||||||||||||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||||||
|
GAAP
measurement
|
$ | 124,433 | $ | 129,836 | $ | 38,441 | $ | 38,719 | $ | 26,071 | $ | 27,551 | $ | 0.43 | $ | 0.43 | ||||||||||||||||
|
%
of revenue
|
52.6 | % | 52.1 | % | 16.3 | % | 15.5 | % | 11.0 | % | 11.1 | % | ||||||||||||||||||||
|
Discrete
income tax benefits(1)
|
- | - | - | - | (1,472 | ) | - | (0.02 | ) | |||||||||||||||||||||||
|
Non-GAAP
comparative measurements(2)
|
$ | 124,433 | $ | 129,836 | $ | 38,441 | $ | 38,719 | $ | 26,071 | $ | 26,079 | $ | 0.43 | $ | 0.41 | ||||||||||||||||
|
%
of revenue
|
52.6 | % | 52.1 | % | 16.3 | % | 15.5 | % | 11.0 | % | 10.5 | % | ||||||||||||||||||||
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
Announces First Quarter Results
April
24, 2009
Page 8 of 12
IDEXX
Laboratories, Inc. and Subsidiaries
Segment
Information
Amounts
in thousands (Unaudited)
|
Three Months Ended
|
|||||||||
|
March 31,
|
March 31,
|
||||||||
|
2009
|
2008
|
||||||||
|
Revenue:
|
CAG
|
$ | 193,692 | $ | 202,791 | ||||
|
Water
|
15,851 | 16,816 | |||||||
|
PAS
|
18,266 | 21,162 | |||||||
|
Other
|
8,646 | 8,305 | |||||||
|
Total
|
$ | 236,455 | $ | 249,074 | |||||
|
Gross
Profit:
|
CAG
|
$ | 96,442 | $ | 101,554 | ||||
|
Water
|
11,156 | 10,315 | |||||||
|
PAS
|
13,108 | 14,233 | |||||||
|
Other
|
3,548 | 3,558 | |||||||
|
Unallocated
|
179 | 176 | |||||||
|
Total
|
$ | 124,433 | $ | 129,836 | |||||
|
Income
(Loss) from
|
|||||||||
|
Operations:
|
CAG
|
$ | 29,079 | $ | 29,124 | ||||
|
Water
|
7,312 | 6,270 | |||||||
|
PAS
|
4,950 | 5,828 | |||||||
|
Other
|
129 | 242 | |||||||
|
Unallocated
|
(3,029 | ) | (2,745 | ) | |||||
|
Total
|
$ | 38,441 | $ | 38,719 | |||||
|
Gross
Profit
|
|||||||||
|
(as
a percentage
|
|||||||||
|
of
revenue):
|
CAG
|
49.8 | % | 50.1 | % | ||||
|
Water
|
70.4 | % | 61.3 | % | |||||
|
PAS
|
71.8 | % | 67.3 | % | |||||
|
Other
|
41.0 | % | 42.8 | % | |||||
|
Income
from
|
|||||||||
|
Operations
|
|||||||||
|
(as
a percentage
|
|||||||||
|
of revenue):
|
CAG
|
15.0 | % | 14.4 | % | ||||
|
Water
|
46.1 | % | 37.3 | % | |||||
|
PAS
|
27.1 | % | 27.5 | % | |||||
|
Other
|
1.5 | % | 2.9 | % | |||||
IDEXX
Announces First Quarter Results
April
24, 2009
Page 9 of 12
IDEXX
Laboratories, Inc. and Subsidiaries
Revenues
and Revenue Growth Analysis by Product and Service Categories
Amounts
in thousands (Unaudited)
|
Three Months Ended
|
||||||||||||||||||||||||||||
|
Net Revenue
|
March 31,
2009
|
March 31,
2008
|
Dollar
Change
|
Percentage
Change
|
Percentage
Change from
Currency (1)
|
Percentage
Change from
Acquisitions /
Divestitures (2)
|
Percentage
Change Net of
Acquisitions/
Divestitures
and Currency
Effect (3)
|
|||||||||||||||||||||
|
CAG
|
$ | 193,692 | $ | 202,791 | $ | (9,099 | ) | (4.5 | )% | (6.0 | )% | (1.6 | )% | 3.1 | % | |||||||||||||
|
Water
|
15,851 | 16,816 | (965 | ) | (5.7 | )% | (8.3 | )% | - | 2.6 | % | |||||||||||||||||
|
PAS
|
18,266 | 21,162 | (2,896 | ) | (13.7 | )% | (9.7 | )% | - | (4.0 | )% | |||||||||||||||||
|
Other
|
8,646 | 8,305 | 341 | 4.1 | % | (1.8 | )% | - | 5.9 | % | ||||||||||||||||||
|
Total
|
$ | 236,455 | $ | 249,074 | $ | (12,619 | ) | (5.1 | )% | (6.4 | )% | (1.3 | )% | 2.6 | % | |||||||||||||
|
Three Months Ended
|
||||||||||||||||||||||||||||
|
Net CAG Revenue
|
March 31,
2009
|
March 31,
2008
|
Dollar
Change
|
Percentage
Change
|
Percentage
Change from
Currency (1)
|
Percentage
Change from
Acquisitions /
Divestitures (2)
|
Percentage
Change Net of
Acquisitions/
Divestitures
and Currency
Effect (3)
|
|||||||||||||||||||||
|
Instruments
and consumables
|
$ | 72,235 | $ | 75,610 | $ | (3,375 | ) | (4.5 | )% | (7.3 | )% | - | 2.8 | % | ||||||||||||||
|
Rapid
assay products
|
37,677 | 38,711 | (1,034 | ) | (2.7 | )% | (1.7 | )% | - | (1.0 | )% | |||||||||||||||||
|
Laboratory
and consulting services
|
68,692 | 70,107 | (1,415 | ) | (2.0 | )% | (7.8 | )% | - | 5.8 | % | |||||||||||||||||
|
Practice
information management
systems and
digital radiography
|
15,034 | 15,025 | 9 | 0.1 | % | (3.0 | )% | - | 3.1 | % | ||||||||||||||||||
|
Pharmaceutical
products
|
54 | 3,338 | (3,284 | ) | (98.4 | )% | - | (100.0 | )% | 1.6 | % | |||||||||||||||||
|
Net
CAG revenue
|
$ | 193,692 | $ | 202,791 | $ | (9,099 | ) | (4.5 | )% | (6.0 | )% | (1.6 | )% | 3.1 | % | |||||||||||||
(1)
Represents the percentage change in revenue attributed to the effect of changes
in currency rates from the three months ended March 31, 2009 to the three months
ended March 31, 2008.
(2)
Represents the percentage change in revenue during the three months ended March
31, 2009 compared to the three months ended March 31, 2008 attributed to
incremental revenues from businesses acquired or revenues lost from businesses
divested subsequent to December 31, 2007.
(3)
Organic growth
IDEXX
Announces First Quarter Results
April
24, 2009
Page 10 of 12
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||||
|
Consolidated
Balance Sheet
|
|||||||||
|
Amounts
in thousands (Unaudited)
|
|||||||||
|
March
31,
|
December
31,
|
||||||||
|
2009
|
2008
|
||||||||
|
Assets:
|
Current
Assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 86,295 | $ | 78,868 | |||||
|
Accounts
receivable, net
|
115,253 | 111,498 | |||||||
|
Inventories
|
123,575 | 115,926 | |||||||
|
Other
current assets
|
42,660 | 49,598 | |||||||
|
Total
current assets
|
367,783 | 355,890 | |||||||
|
Property
and equipment, at cost
|
322,949 | 320,198 | |||||||
|
Less:
accumulated depreciation
|
136,241 | 130,552 | |||||||
|
Property
and equipment, net
|
186,708 | 189,646 | |||||||
|
Other
long-term assets, net
|
216,013 | 219,901 | |||||||
|
Total
assets
|
$ | 770,504 | $ | 765,437 | |||||
|
Liabilities
and
|
|||||||||
|
Stockholders’
|
|||||||||
|
Equity:
|
Current
Liabilities:
|
||||||||
|
Accounts
payable
|
$ | 23,541 | $ | 28,006 | |||||
|
Accrued
expenses
|
91,477 | 104,616 | |||||||
|
Debt
|
166,294 | 151,385 | |||||||
|
Deferred
revenue
|
10,831 | 11,285 | |||||||
|
Total
current liabilities
|
292,143 | 295,292 | |||||||
|
Long-term
debt, net of current portion
|
4,896 | 5,094 | |||||||
|
Other
long-term liabilities
|
27,637 | 26,857 | |||||||
|
Total
long-term liabilities
|
32,533 | 31,951 | |||||||
|
Stockholders’
Equity:
|
|||||||||
|
Common
stock
|
9,563 | 9,539 | |||||||
|
Additional
paid-in capital
|
553,446 | 547,692 | |||||||
|
Deferred
stock units
|
4,146 | 3,647 | |||||||
|
Retained
earnings
|
728,102 | 702,031 | |||||||
|
Treasury
stock, at cost
|
(846,448 | ) | (830,390 | ) | |||||
|
Accumulated
other comprehensive income (loss)
|
(2,981 | ) | 5,675 | ||||||
|
Total
stockholders’ equity
|
445,828 | 438,194 | |||||||
|
Total
liabilities and stockholders’ equity
|
$ | 770,504 | $ | 765,437 | |||||
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||||||||
|
Key Balance Sheet
Information (Unaudited)
|
|||||||||||||
|
March
31,
|
December
31,
|
March
31,
|
|||||||||||
|
2009
|
2008
|
2008
|
|||||||||||
|
Key
|
|||||||||||||
|
Balance
Sheet
|
Days
sales outstanding
|
43.8 | 41.9 | 42.6 | |||||||||
|
Information:
|
Inventory
turns
|
1.6 | 2.0 | 2.0 | |||||||||
IDEXX
Announces First Quarter Results
April
24, 2009
Page 11 of 12
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||||
|
Consolidated
Statement of Cash Flows
|
|||||||||
|
Amounts
in thousands (Unaudited)
|
|||||||||
|
Three
Months Ended
|
|||||||||
|
March
31,
|
March
31,
|
||||||||
|
2009
|
2008
|
||||||||
|
Operating:
|
Cash
Flows from Operating Activities:
|
||||||||
|
Net
income
|
$ | 26,071 | $ | 27,551 | |||||
|
Non-cash
charges
|
17,427 | 11,282 | |||||||
|
Changes
in current assets and liabilities, net of acquisitions
|
(30,874 | ) | (41,622 | ) | |||||
|
Net
cash provided (used) by operating activities
|
$ | 12,624 | $ | (2,789 | ) | ||||
|
Investing:
|
Cash
Flows from Investing Activities:
|
||||||||
|
Purchase
of property and equipment
|
(9,114 | ) | (17,049 | ) | |||||
|
Proceeds
from disposition of pharmaceutical product lines
|
1,377 | - | |||||||
|
Proceeds
from sale of property and equipment
|
1,046 | - | |||||||
|
Acquisition
of businesses and intangible assets
|
- | (7,533 | ) | ||||||
|
Acquisition
of equipment leased to customers
|
(188 | ) | (226 | ) | |||||
|
Net
cash used by investing activities
|
$ | (6,879 | ) | $ | (24,808 | ) | |||
|
Financing:
|
Cash
Flows from Financing Activities:
|
||||||||
|
Borrowings
on revolving credit facilities, net
|
15,019 | 67,942 | |||||||
|
Payment
of other notes payable
|
(190 | ) | (177 | ) | |||||
|
Purchase
of treasury stock
|
(14,986 | ) | (51,355 | ) | |||||
|
Proceeds
from the exercise of stock options and employee stock purchase
plans
|
3,281 | 5,974 | |||||||
|
Tax
benefit from exercise of stock options and vesting of restricted stock
units
|
161 | 2,384 | |||||||
|
Net
cash provided by financing activities
|
$ | 3,285 | $ | 24,768 | |||||
|
Net
effect of exchange rate changes
|
(1,603 | ) | 2,689 | ||||||
|
Net
increase (decrease) in cash and cash equivalents
|
7,427 | (140 | ) | ||||||
|
Cash
and cash equivalents, beginning of period
|
78,868 | 60,360 | |||||||
|
Cash
and cash equivalents, end of period
|
$ | 86,295 | $ | 60,220 | |||||
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|||||||||
|
Free Cash
Flow
|
|||||||||
|
Amounts
in thousands (Unaudited)
|
|||||||||
|
Three
Months Ended
|
|||||||||
|
March
31,
|
March
31,
|
||||||||
|
2009
|
2008
|
||||||||
|
Free
Cash
|
|||||||||
|
Flow:
|
Net
cash provided (used) by operating activities
|
$ | 12,624 | $ | (2,789 | ) | |||
|
Financing
cash flows attributable to tax benefits from exercise of stock
options
|
161 | 2,384 | |||||||
|
Purchase
of fixed assets
|
(9,114 | ) | (17,049 | ) | |||||
|
Acquisition
of equipment leased to customers
|
(188 | ) | (226 | ) | |||||
|
Free
cash flow
|
$ | 3,483 | $ | (17,680 | ) | ||||
|
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
24, 2009
Page 12 of 12
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
||||||||
|
Common
Stock Repurchases
|
||||||||
|
Amounts
in thousands except per share data (Unaudited)
|
||||||||
|
Three
Months Ended
|
||||||||
|
March
31,
|
March
31,
|
|||||||
|
2009
|
2008
|
|||||||
|
Share
repurchases during the period
|
468 | 950 | ||||||
|
Average
price paid per share
|
$ | 32.05 | $ | 54.03 | ||||
|
Shares
remaining under repurchase authorization as of March 31,
2009
|
3,745 | |||||||