EX-99.1
Published on July 24, 2009
Contact:
Merilee Raines, Chief Financial Officer, 1-207-556-8155
FOR
IMMEDIATE RELEASE
IDEXX
Laboratories Announces Second Quarter Results
WESTBROOK, Maine, July 24,
2009 — 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® 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®
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.”
IDEXX
Announces Second Quarter Results
July 24,
2009
Page 2 of
13
“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®
instruments and consumables, 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. 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®
instruments and consumables volumes was partly offset by lower sales
volume and lower average unit sales prices for LaserCyte®
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.
IDEXX
Announces Second Quarter Results
July 24,
2009
Page 3 of
13
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®
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.
IDEXX
Announces Second Quarter Results
July 24,
2009
Page 4 of
13
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.
IDEXX
Announces Second Quarter Results
July 24,
2009
Page 5 of
13
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
Announces Second Quarter Results
July 24,
2009
Page 6 of
13
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
percentage
of
|
Sales,
marketing, 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 (in
thousands)
|
$ | 105,999 | $ | 113,928 | $ | 196,411 | $ | 217,256 | ||||||||
|
Revenue:
|
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
Announces Second Quarter Results
July 24,
2009
Page 7 of
13
IDEXX
Laboratories, Inc. and Subsidiaries
Non-GAAP
Financial Measures
Amounts
in thousands except per share data (Unaudited)
|
Six
Months Ended
|
||||||||||||||||||||||||||||||||
|
Income
from
|
Earnings
per Share
|
|||||||||||||||||||||||||||||||
|
Gross
Profit
|
Operations
|
Net
Income
|
Diluted
|
|||||||||||||||||||||||||||||
|
June
30,
|
June
30,
|
June
30,
|
June
30,
|
June
30,
|
June
30,
|
June
30,
|
June
30,
|
|||||||||||||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||||||
|
GAAP
measurement
|
$ | 262,873 | $ | 281,096 | $ | 87,617 | $ | 97,610 | $ | 59,738 | $ | 66,915 | $ | 0.98 | $ | 1.06 | ||||||||||||||||
|
%
of revenue
|
52.3 | % | 53.1 | % | 17.4 | % | 18.4 | % | 11.9 | % | 12.6 | % | ||||||||||||||||||||
|
Discrete
income tax benefits(1)
|
- | - | - | - | - | (1,472 | ) | - | (0.02 | ) | ||||||||||||||||||||||
|
Non-GAAP comparative
measurements(2)
|
$ | 262,873 | $ | 281,096 | $ | 87,617 | $ | 97,610 | $ | 59,738 | $ | 65,443 | $ | 0.98 | $ | 1.04 | ||||||||||||||||
|
%
of revenue
|
52.3 | % | 53.1 | % | 17.4 | % | 18.4 | % | 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
Announces Second Quarter Results
July 24,
2009
Page 8 of
13
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
Announces Second Quarter Results
July 24,
2009
Page 9 of
13
IDEXX
Laboratories, Inc. and Subsidiaries
Revenues
by Product and Service Categories
Amounts
in thousands (Unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||
|
Net
Revenue
|
June
30,
2009
|
June
30,
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
|
$ | 217,289 | $ | 229,982 | $ | (12,693 | ) | (5.5 | )% | (4.6 | )% | (6.2 | )% | 5.3 | % | |||||||||||||
|
Water
|
19,165 | 20,150 | (985 | ) | (4.9 | )% | (6.6 | )% | - | 1.7 | % | |||||||||||||||||
|
PAS
|
19,639 | 21,489 | (1,850 | ) | (8.6 | )% | (9.9 | )% | - | 1.3 | % | |||||||||||||||||
|
Other
|
9,630 | 8,949 | 681 | 7.6 | % | (2.1 | )% | - | 9.7 | % | ||||||||||||||||||
|
Total
|
$ | 265,723 | $ | 280,570 | $ | (14,847 | ) | (5.3 | )% | (5.1 | )% | (5.1 | )% | 4.9 | % | |||||||||||||
|
Three Months Ended
|
||||||||||||||||||||||||||||
|
Net Revenue
|
June 30,
2009
|
June 30,
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
|
$ | 83,732 | $ | 80,777 | $ | 2,955 | 3.7 | % | (5.7 | )% | - | 9.4 | % | |||||||||||||||
|
Rapid
assay products
|
41,567 | 41,618 | (51 | ) | (0.1 | )% | (1.8 | )% | - | 1.7 | % | |||||||||||||||||
|
Laboratory
and consulting services
|
77,876 | 79,341 | (1,465 | ) | (1.8 | )% | (6.4 | )% | - | 4.6 | % | |||||||||||||||||
|
Practice
information management systems and digital radiography
|
14,114 | 14,015 | 99 | 0.7 | % | (1.8 | )% | - | 2.5 | % | ||||||||||||||||||
|
Pharmaceutical
products
|
- | 14,231 | (14,231 | ) | (100.0 | )% | - | (100.0 | )% | - | ||||||||||||||||||
|
Net
CAG revenue
|
$ | 217,289 | $ | 229,982 | $ | (12,693 | ) | (5.5 | )% | (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
Announces Second Quarter Results
July 24,
2009
Page 10 of
13
IDEXX
Laboratories, Inc. and Subsidiaries
Revenues
by Product and Service Categories
Amounts
in thousands (Unaudited)
|
Six
Months Ended
|
||||||||||||||||||||||||||||
|
Net
Revenue
|
June
30,
2009
|
June
30,
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
|
$ | 410,981 | $ | 432,773 | $ | (21,792 | ) | (5.0 | )% | (5.2 | )% | (4.1 | )% | 4.3 | % | |||||||||||||
|
Water
|
35,016 | 36,966 | (1,950 | ) | (5.3 | )% | (7.4 | )% | - | 2.1 | % | |||||||||||||||||
|
PAS
|
37,905 | 42,651 | (4,746 | ) | (11.1 | )% | (9.7 | )% | - | (1.4 | )% | |||||||||||||||||
|
Other
|
18,276 | 17,254 | 1,022 | 5.9 | % | (2.0 | )% | - | 7.9 | % | ||||||||||||||||||
|
Total
|
$ | 502,178 | $ | 529,644 | $ | (27,466 | ) | (5.2 | )% | (5.7 | )% | (3.3 | )% | 3.8 | % | |||||||||||||
|
Six
Months Ended
|
||||||||||||||||||||||||||||
|
Net
Revenue
|
June
30,
2009
|
June
30,
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
|
$ | 155,967 | $ | 156,387 | $ | (420 | ) | (0.3 | )% | (6.4 | )% | - | 6.1 | % | ||||||||||||||
|
Rapid
assay products
|
79,244 | 80,329 | (1,085 | ) | (1.4 | )% | (1.8 | )% | - | 0.4 | % | |||||||||||||||||
|
Laboratory
and consulting services
|
146,568 | 149,448 | (2,880 | ) | (1.9 | )% | (7.1 | )% | - | 5.2 | % | |||||||||||||||||
|
Practice
information management systems and digital radiography
|
29,148 | 29,040 | 108 | 0.4 | % | (2.4 | )% | - | 2.8 | % | ||||||||||||||||||
|
Pharmaceutical
products
|
54 | 17,569 | (17,515 | ) | (99.7 | )% | - | (100.0 | )% | 0.3 | % | |||||||||||||||||
|
Net
CAG revenue
|
$ | 410,981 | $ | 432,773 | $ | (21,792 | ) | (5.0 | )% | (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 Announces Second Quarter Results
July 24,
2009
Page 11 of
13
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,
|
December 31,
|
September 30,
|
June 30,
|
|||||||||||||||||
|
2009
|
2009
|
2008
|
2008
|
2008
|
|||||||||||||||||
|
Key
|
|||||||||||||||||||||
|
Balance
Sheet
|
Days
sales outstanding
|
40.2 | 43.8 | 41.9 | 42.3 | 39.9 | |||||||||||||||
|
Information:
|
Inventory
turns
|
1.8 | 1.6 | 2.0 | 1.9 | 2.1 | |||||||||||||||
IDEXX
Announces Second Quarter Results
July 24,
2009
Page 12 of
13
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
Announces Second Quarter Results
July 24,
2009
Page 13 of
13
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 | |||||||||||||||