Published on January 29, 2010
Contact:
Merilee Raines, Chief Financial Officer, 1-207-556-8155
FOR
IMMEDIATE RELEASE
IDEXX
Laboratories Announces
Fourth
Quarter and Full Year Results
WESTBROOK, Maine, January 29,
2010 — IDEXX Laboratories, Inc. (NASDAQ: IDXX), today reported that
revenues for the fourth quarter of 2009 increased 11% to $270.3 million, from
$243.3 million for the fourth quarter of 2008. Organic revenue growth, as
defined below, was 6%. Earnings per diluted share (“EPS”) for the quarter ended
December 31, 2009 were $0.51, compared to $0.39 for the same period in the prior
year. EPS grew 16% when compared to fourth quarter 2008 non-GAAP EPS, which
adjusted EPS for the 2008 disposition of the pharmaceutical product lines and
related restructuring. Please refer to the non-GAAP financial measures table
below.
Organic
revenue growth excludes the impact of changes in currency exchange rates, which
contributed approximately 5% to revenue growth, and revenue from businesses
acquired or divested subsequent to the beginning of the prior year period, which
had minimal impact on revenue growth.
“IDEXX
had a strong fourth quarter that exceeded our expectations,” stated Jonathan W.
Ayers, Chairman and Chief Executive Officer. “Organic revenue growth, led by our
Companion Animal Group, increased modestly to 6%, as strong demand for certain
products such as our Catalyst Dx®
chemistry analyzer offset continued economic weakness and soft consumer
spending.”
“Sales of
instruments and consumables, our largest business, benefited from Catalyst sales
as we placed 763
units in the fourth quarter and over 2,046
units for the year.”
“International
markets, particularly the Asia
Pacific region, continued to perform very well. In that
region, organic growth was 30%
for the quarter and 20%
for the year, reflecting a further acceleration of growth in this
region.”
“Throughout
the year, we continued to identify opportunities for increased operating
efficiency while maintaining investment in areas critical to achieving our
longer-term strategic and operational objectives. This focus on operational
efficiency enabled us to exceed our earnings guidance for the year, despite
weaker than anticipated top-line growth.”
“As we
look to 2010, we remain confident in our growth strategies due to the
fundamental attractiveness of our markets, our unique and innovative product and
service offering, and our global footprint. We also are targeting
earnings to grow faster than revenue, reflecting operating margin expansion in
our two largest businesses, instruments and consumables and reference laboratory
services.”
IDEXX
Announces Fourth Quarter Results
January
29, 2010
Page 2 of
14
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 fourth quarter of
2009 were $217.9 million compared to $196.5 million for the fourth quarter of
2008. Changes in foreign currency exchange rates and revenues from a recently
acquired business contributed approximately 4% and 1%, respectively, to revenue
growth. Organic growth of 6% was the result of increased sales volume, primarily
in the IDEXX VetLab® and
laboratory and consulting services product
lines. In the IDEXX VetLab® product
line, higher sales volume was driven by sales of our Catalyst Dx®
chemistry analyzer and instrument consumables. In the laboratory and
consulting services product
line, revenue growth was due to higher volume and higher unit
sales prices on reference laboratory tests. These favorable impacts were partly
offset by lower sales volume and lower average unit sales prices for
LaserCyte®
hematology analyzers.
Water. Water segment
revenues for the fourth quarter of 2009 were $18.5 million compared to $17.2
million for the fourth quarter of 2008. Changes in foreign currency exchange
rates contributed approximately 5% to revenue growth. Organic revenue growth of
3% was the result of higher unit sales prices due, in part, to higher relative
sales in geographies where products are sold at higher unit sales
prices.
Production Animal
Segment. Production Animal Segment (“PAS”) revenues for the fourth
quarter of 2009 were $23.4 million compared to $20.3 million for the fourth
quarter of 2008. Changes in foreign currency exchange rates contributed
approximately 10% to revenue growth. Organic revenue growth of 5% was the result
of higher sales volumes, partly offset by lower unit sales prices.
Year-to-Date
Results
Revenues
for the year ended December 31, 2009 increased 1% to $1.032 billion, from $1.024
billion for the year ended December 31, 2008. Organic growth for the year ended
December 31, 2009, was 5%. Changes in currency exchange rates and the impact of
divestitures and discontinued products, net of revenues from businesses
recently acquired, reduced revenue growth by approximately 4%.
EPS for
2009 were $2.01, compared to $1.87 for the year ended December 31, 2008. EPS
grew 6% when compared to 2008 non-GAAP diluted EPS of $1.90. Please refer to the
non-GAAP financial measures table below.
IDEXX
Announces Fourth Quarter Results
January
29, 2010
Page 3 of
14
Additional
Operating Results for the Fourth Quarter
Gross
profit for the fourth quarter of 2009 increased $12.4 million, or 10%, to $132.9
million from $120.5 million for the fourth quarter of 2008. As a percentage of
total revenue, gross profit decreased slightly to 49%. The decrease in gross
profit percentage was due primarily to the unfavorable net impact of foreign
currency exchange rates, as the favorable impact on revenue of changes in
foreign currency exchange rates was more than offset by losses on foreign
currency hedge contracts and by the unfavorable impact on foreign currency
denominated expenses. Gross profit percentage was also impacted by higher
relative sales of lower margin IDEXX VetLab®
instruments and laboratory and consulting services and lower average
sales prices in certain product lines. These unfavorable items were partly
offset by gross profit improvement in our laboratory and consulting services
product line, lower royalty expense, and lower depreciation expense associated
with IDEXX VetLab®
instruments that are under rental agreements with customers.
Research
and development ("R&D") expense for the fourth quarter of 2009 was $16.0
million, or 6% of revenue, compared to $17.1 million, or 7% of revenue for the
fourth quarter of 2008. The decrease in R&D expense was due to the absence
of pharmaceutical business R&D spending in the fourth quarter of 2009,
resulting from the disposition of substantially all of our pharmaceutical
product line and assets in the fourth quarter of 2008.
Selling,
general and administrative ("SG&A") expense for the fourth quarter of 2009
was $72.8 million, or 27% of revenue, compared to $66.1 million, or 27% of
revenue, for the fourth quarter of 2008. The increase in SG&A expense
resulted primarily from higher personnel costs in selling, customer support and
administrative functions, and the unfavorable impact of exchange rate changes on
foreign currency denominated expenses. Fourth quarter 2008 SG&A included a
charge of $1.5 million related to the 2008 disposition and the related
restructuring of the remaining pharmaceutical product line.
Supplementary
Analysis of Results
The
accompanying financial tables provide more information concerning our revenue
and other operating results for the three and twelve months ended December 31,
2009, as well as a reconciliation of earnings per share to non-GAAP
EPS.
IDEXX
Announces Fourth Quarter Results
January
29, 2010
Page 4 of
14
Outlook
for 2010
The
Company provides the following updated guidance for the full year of 2010. 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 2010.
Fluctuations in foreign currency exchange rates from current levels could have a
significant positive or negative impact on our actual results of operations in
2010.
|
|
·
|
Revenues
are expected to be $1.1 to $1.115 billion, which represents reported
revenue growth of 7% to 8% and organic revenue growth of 5% to 6%. This
guidance is higher than the previous guidance of $1.08 to $1.1 billion,
provided in October 2009, as a slight increase in anticipated organic
revenue growth is anticipated to be partially offset by lower estimated
currency benefits from the weakening of the U.S. Dollar relative to other
major currencies.
|
|
|
·
|
EPS
are expected to be $2.20 to $2.25, compared to our previous guidance of
$2.15 to $2.25.
|
|
|
·
|
Free
cash flow is expected to be approximately 110% 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 fourth quarter
results. To participate in the conference call, dial 1-612-288-0329 or
1-800-288-8967 and reference confirmation code 143973. An audio replay will be
available through February 5, 2010 by dialing 1-320-365-3844 and referencing
replay code 143973.
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 4,800 people and offers products to
customers in over 100 countries.
IDEXX
Announces Fourth Quarter Results
January
29, 2010
Page 5 of
14
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 September 30, 2009, in the section captioned "Risk
Factors.”
IDEXX
Announces Fourth Quarter Results
January
29, 2010
Page 6 of
14
IDEXX
Laboratories, Inc. and Subsidiaries
Consolidated
Statement of Operations
Amounts
in thousands except per share data (Unaudited)
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||
|
Revenue:
|
Revenue
|
$ | 270,335 | $ | 243,293 | $ | 1,031,633 | $ | 1,024,030 | |||||||||
|
Expenses
and
|
||||||||||||||||||
|
Income:
|
Cost
of revenue
|
137,404 | 122,772 | 505,352 | 494,264 | |||||||||||||
|
Gross
profit
|
132,931 | 120,521 | 526,281 | 529,766 | ||||||||||||||
|
Sales
and marketing
|
43,383 | 39,951 | 167,748 | 169,693 | ||||||||||||||
|
General
and administrative
|
29,393 | 26,179 | 117,440 | 115,586 | ||||||||||||||
|
Research
and development
|
16,008 | 17,063 | 65,124 | 70,552 | ||||||||||||||
|
Loss
on disposition of pharmaceutical product
|
||||||||||||||||||
|
lines
and related restructuring
|
- | 1,479 | - | 1,479 | ||||||||||||||
|
Income
from operations
|
44,147 | 35,849 | 175,969 | 172,456 | ||||||||||||||
|
Interest
expense, net
|
(243 | ) | (581 | ) | (1,430 | ) | (2,269 | ) | ||||||||||
|
Income
before provision for income taxes
|
43,904 | 35,268 | 174,539 | 170,187 | ||||||||||||||
|
Provision
for income taxes
|
12,943 | 11,713 | 52,304 | 54,018 | ||||||||||||||
|
Net
Income:
|
Net
income
|
30,961 | 23,555 | 122,235 | 116,169 | |||||||||||||
|
Less:
Noncontrolling interest in subsidiary’s
|
||||||||||||||||||
|
earnings
|
10 | - | 10 | - | ||||||||||||||
|
Net
income attributable to stockholders
|
$ | 30,951 | $ | 23,555 | $ | 122,225 | $ | 116,169 | ||||||||||
|
Earnings
per share: Basic
|
$ | 0.53 | $ | 0.40 | $ | 2.08 | $ | 1.94 | ||||||||||
|
Earnings
per share: Diluted
|
$ | 0.51 | $ | 0.39 | $ | 2.01 | $ | 1.87 | ||||||||||
|
Shares
outstanding: Basic
|
58,506 | 59,453 | 58,809 | 59,953 | ||||||||||||||
|
Shares
outstanding: Diluted
|
60,507 | 61,083 | 60,682 | 62,249 | ||||||||||||||
IDEXX
Laboratories, Inc. and Subsidiaries
Key Operating Information
(Unaudited)
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||
|
Key
Operating
|
Gross
profit
|
49.2 | % | 49.5 | % | 51.0 | % | 51.7 | % | |||||||||
|
Ratios (as
a
|
Sales,
marketing, general and
|
|||||||||||||||||
|
percentage
of
|
administrative
expense
|
26.9 | % | 27.2 | % | 27.6 | % | 27.9 | % | |||||||||
|
revenue):
|
Research
and development expense
|
5.9 | % | 7.0 | % | 6.3 | % | 6.9 | % | |||||||||
|
Loss
on disposition of pharmaceutical product
|
||||||||||||||||||
|
lines
and related restructuring
|
- | 0.6 | % | - | 0.1 | % | ||||||||||||
|
Income from
operations(1)
|
16.3 | % | 14.7 | % | 17.1 | % | 16.8 | % | ||||||||||
|
International
|
International revenue
(in
thousands)
|
$ | 118,660 | $ | 97,071 | $ | 417,116 | $ | 413,973 | |||||||||
|
Revenue:
|
International
revenue as percentage of
|
|||||||||||||||||
|
total
revenue
|
43.9 | % | 39.9 | % | 40.4 | % | 40.4 | % | ||||||||||
(1) The
sum of individual items may not equal the total due to rounding.
IDEXX
Announces Fourth Quarter Results
January
29, 2010
Page 7 of
14
IDEXX
Laboratories, Inc. and Subsidiaries
Non-GAAP
Financial Measures
Amounts
in thousands except per share data (Unaudited)
|
Three Months Ended
|
||||||||||||||||||||||||||||||||
|
Net Income
|
||||||||||||||||||||||||||||||||
|
Income from
|
Attributable to
|
Earnings per Share
|
||||||||||||||||||||||||||||||
|
Gross Profit
|
Operations
|
Stockholders
|
Diluted
|
|||||||||||||||||||||||||||||
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
|||||||||||||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||||||
|
GAAP
measurement
|
$ | 132,931 | $ | 120,521 | $ | 44,147 | $ | 35,849 | $ | 30,951 | $ | 23,555 | $ | 0.51 | $ | 0.39 | ||||||||||||||||
|
%
of revenue
|
49.2 | % | 49.5 | % | 16.3 | % | 14.7 | % | 11.4 | % | 9.7 | % | ||||||||||||||||||||
|
Disposition
of pharmaceutical product lines
|
||||||||||||||||||||||||||||||||
|
and
related restructuring(1)
|
- | - | - | 1,479 | - | 3,598 | - | 0.06 | ||||||||||||||||||||||||
|
Non-GAAP comparative
measurements(2)
|
$ | 132,931 | $ | 120,521 | $ | 44,147 | $ | 37,328 | $ | 30,951 | $ | 27,153 | $ | 0.51 | $ | 0.44 | ||||||||||||||||
|
%
of revenue
|
49.2 | % | 49.5 | % | 16.3 | % | 15.3 | % | 11.4 | % | 11.2 | % | ||||||||||||||||||||
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 impact of the disposition of certain pharmaceutical product
lines and the related restructuring of the remaining pharmaceutical business in
2008 is not indicative of future performance because significant transactions
and related costs of a similar nature are not likely to recur within a
reasonable period. In the fourth quarter of 2008 we completed a transaction to
sell our ACAREXX and SURPASS pharmaceutical products and a product then under
development, which were a part of our CAG segment, and subsequently restructured
the remaining pharmaceutical business.
(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 Fourth Quarter Results
January
29, 2010
Page 8 of
14
IDEXX
Laboratories, Inc. and Subsidiaries
Non-GAAP
Financial Measures
Amounts
in thousands except per share data (Unaudited)
|
Twelve Months Ended
|
||||||||||||||||||||||||||||||||
|
Net Income
|
||||||||||||||||||||||||||||||||
|
Income from
|
Attributable to
|
Earnings per Share
|
||||||||||||||||||||||||||||||
|
Gross Profit
|
Operations
|
Stockholders
|
Diluted
|
|||||||||||||||||||||||||||||
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
|||||||||||||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||||||
|
GAAP
measurement
|
$ | 526,281 | $ | 529,766 | $ | 175,969 | $ | 172,456 | $ | 122,225 | $ | 116,169 | $ | 2.01 | $ | 1.87 | ||||||||||||||||
|
%
of revenue
|
51.0 | % | 51.7 | % | 17.1 | % | 16.8 | % | 11.8 | % | 11.3 | % | ||||||||||||||||||||
|
Disposition
of pharmaceutical product lines
|
||||||||||||||||||||||||||||||||
|
and
restructuring(1)
|
- | - | - | 1,479 | - | 3,598 | - | 0.06 | ||||||||||||||||||||||||
|
Discrete income tax
benefits(2)
|
- | - | - | - | - | (1,472 | ) | - | (0.02 | ) | ||||||||||||||||||||||
|
Non-GAAP comparative
measurements(3)
|
$ | 526,281 | $ | 529,766 | $ | 175,969 | $ | 173,935 | $ | 122,225 | $ | 118,295 | $ | 2.01 | $ | 1.90 | ||||||||||||||||
|
%
of revenue
|
51.0 | % | 51.7 | % | 17.1 | % | 17.0 | % | 11.8 | % | 11.6 | % | ||||||||||||||||||||
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 impact of the disposition of certain pharmaceutical product
lines and the related restructuring of the remaining pharmaceutical business in
the fourth quarter of 2008 is not indicative of future performance because
significant transactions and related costs of a similar nature are not likely to
recur within a reasonable period. In the fourth quarter of 2008 we completed a
transaction to sell our ACAREXX and SURPASS pharmaceutical products and a
product then under development, which were a part of our CAG segment, and
subsequently restructured the remaining pharmaceutical business.
(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 Fourth Quarter Results
January
29, 2010
Page 9 of
14
IDEXX
Laboratories, Inc. and Subsidiaries
Segment
Information
Amounts
in thousands (Unaudited)
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||||
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||
|
Revenue:
|
CAG
|
$ | 217,861 | $ | 196,523 | $ | 843,303 | $ | 834,056 | ||||||||
|
Water
|
18,507 | 17,182 | 73,214 | 74,469 | |||||||||||||
|
PAS
|
23,360 | 20,310 | 77,208 | 80,762 | |||||||||||||
|
Other
|
10,607 | 9,278 | 37,908 | 34,743 | |||||||||||||
|
Total
|
$ | 270,335 | $ | 243,293 | $ | 1,031,633 | $ | 1,024,030 | |||||||||
|
Gross
Profit:
|
CAG
|
$ | 100,346 | $ | 90,359 | $ | 410,356 | $ | 412,199 | ||||||||
|
Water
|
11,272 | 11,479 | 47,233 | 47,052 | |||||||||||||
|
PAS
|
15,592 | 14,307 | 51,256 | 55,005 | |||||||||||||
|
Other
|
5,605 | 4,289 | 17,067 | 15,131 | |||||||||||||
|
Unallocated
|
116 | 87 | 369 | 379 | |||||||||||||
|
Total
|
$ | 132,931 | $ | 120,521 | $ | 526,281 | $ | 529,766 | |||||||||
|
Income
from
|
|||||||||||||||||
|
Operations:
|
CAG
|
$ | 29,304 | $ | 24,210 | $ | 136,121 | $ | 129,620 | ||||||||
|
Water
|
7,279 | 7,893 | 31,615 | 31,330 | |||||||||||||
|
PAS
|
6,269 | 6,936 | 17,271 | 21,760 | |||||||||||||
|
Other
|
3,570 | 919 | 3,425 | 1,555 | |||||||||||||
|
Unallocated
|
(2,275 | ) | (4,109 | ) | (12,463 | ) | (11,809 | ) | |||||||||
|
Total
|
$ | 44,147 | $ | 35,849 | $ | 175,969 | $ | 172,456 | |||||||||
|
Gross
Profit
|
|||||||||||||||||
|
(as
a percentage
|
|||||||||||||||||
|
of
revenue):
|
CAG
|
46.1 | % | 46.0 | % | 48.7 | % | 49.4 | % | ||||||||
|
Water
|
60.9 | % | 66.8 | % | 64.5 | % | 63.2 | % | |||||||||
|
PAS
|
66.7 | % | 70.4 | % | 66.4 | % | 68.1 | % | |||||||||
|
Other
|
52.8 | % | 46.2 | % | 45.0 | % | 43.6 | % | |||||||||
|
Income
from
|
|||||||||||||||||
|
Operations
|
|||||||||||||||||
|
(as
a percentage
|
|||||||||||||||||
|
of revenue):
|
CAG
|
13.5 | % | 12.3 | % | 16.1 | % | 15.5 | % | ||||||||
|
Water
|
39.3 | % | 45.9 | % | 43.2 | % | 42.1 | % | |||||||||
|
PAS
|
26.8 | % | 34.2 | % | 22.4 | % | 26.9 | % | |||||||||
|
Other
|
33.7 | % | 9.9 | % | 9.0 | % | 4.5 | % | |||||||||
IDEXX
Announces Fourth Quarter Results
January
29, 2010
Page 10 of
14
IDEXX
Laboratories, Inc. and Subsidiaries
Revenues
and Revenue Growth Analysis by Product and Service Categories
Amounts
in thousands (Unaudited)
|
Three
Months Ended
|
||||||||||||||||||||||||||||
|
Net
Revenue
|
December
31,
2009
|
December
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
|
$ | 217,861 | $ | 196,523 | $ | 21,338 | 10.9 | % | 4.3 | % | 0.5 | % | 6.1 | % | ||||||||||||||
|
Water
|
18,507 | 17,182 | 1,325 | 7.7 | % | 4.7 | % | - | 3.0 | % | ||||||||||||||||||
|
PAS
|
23,360 | 20,310 | 3,050 | 15.0 | % | 9.6 | % | - | 5.4 | % | ||||||||||||||||||
|
Other
|
10,607 | 9,278 | 1,329 | 14.3 | % | 2.6 | % | - | 11.7 | % | ||||||||||||||||||
|
Total
|
$ | 270,335 | $ | 243,293 | $ | 27,042 | 11.1 | % | 4.7 | % | 0.4 | % | 6.0 | % | ||||||||||||||
|
Three
Months Ended
|
||||||||||||||||||||||||||||
|
Net
CAG Revenue
|
December
31, 2009
|
December
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
|
$ | 92,817 | $ | 81,559 | $ | 11,258 | 13.8 | % | 4.3 | % | - | 9.5 | % | |||||||||||||||
|
Rapid
assay products
|
30,081 | 30,240 | (159 | ) | (0.5 | )% | 1.8 | % | - | (2.3 | )% | |||||||||||||||||
|
Laboratory
and consulting services
|
75,423 | 65,260 | 10,163 | 15.6 | % | 6.1 | % | 2.1 | % | 7.4 | % | |||||||||||||||||
|
Practice
information systems and digital radiography
|
19,540 | 18,918 | 622 | 3.3 | % | 1.9 | % | 0.6 | % | 0.8 | % | |||||||||||||||||
|
Pharmaceutical
products
|
- | 546 | (546 | ) | (100.0 | )% | - | (100.0 | )% | - | ||||||||||||||||||
|
Net
CAG revenue
|
$ | 217,861 | $ | 196,523 | $ | 21,338 | 10.9 | % | 4.3 | % | 0.5 | % | 6.1 | % | ||||||||||||||
(1)
Represents the percentage change in revenue attributed to the effect of changes
in currency rates from the three months ended December 31, 2008 to the three
months ended December 31, 2009.
(2)
Represents the percentage change in revenue during the three months ended
December 31, 2009 compared to the three months ended December 31, 2008
attributed to incremental revenues from businesses acquired or revenues lost
from businesses divested or discontinued subsequent to September 30,
2008.
(3)
Organic Growth
IDEXX
Announces Fourth Quarter Results
January
29, 2010
Page 11 of
14
IDEXX
Laboratories, Inc. and Subsidiaries
Revenues
and Revenue Growth Analysis by Product and Service Categories
Amounts
in thousands (Unaudited)
|
Twelve
Months Ended
|
||||||||||||||||||||||||||||
|
Net
Revenue
|
December
31, 2009
|
December
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
|
$ | 843,303 | $ | 834,056 | $ | 9,247 | 1.1 | % | (2.3 | )% | (2.0 | )% | 5.4 | % | ||||||||||||||
|
Water
|
73,214 | 74,469 | (1,255 | ) | (1.7 | )% | (3.4 | )% | - | 1.7 | % | |||||||||||||||||
|
PAS
|
77,208 | 80,762 | (3,554 | ) | (4.4 | )% | (3.4 | )% | - | (1.0 | )% | |||||||||||||||||
|
Other
|
37,908 | 34,743 | 3,165 | 9.1 | % | (0.4 | )% | - | 9.5 | % | ||||||||||||||||||
|
Total
|
$ | 1,031,633 | $ | 1,024,030 | $ | 7,603 | 0.7 | % | (2.4 | )% | (1.6 | )% | 4.7 | % | ||||||||||||||
|
Twelve
Months Ended
|
||||||||||||||||||||||||||||
|
Net
CAG Revenue
|
December
31, 2009
|
December
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
|
$ | 332,706 | $ | 318,533 | $ | 14,173 | 4.4 | % | (2.7 | )% | - | 7.1 | % | |||||||||||||||
|
Rapid
assay products
|
147,078 | 146,867 | 211 | 0.1 | % | (0.7 | )% | - | 0.8 | % | ||||||||||||||||||
|
Laboratory
and consulting services
|
298,410 | 288,244 | 10,166 | 3.5 | % | (3.0 | )% | 0.7 | % | 5.8 | % | |||||||||||||||||
|
Practice
information systems and
digital
radiography
|
65,055 | 61,291 | 3,764 | 6.1 | % | (0.8 | )% | 0.2 | % | 6.7 | % | |||||||||||||||||
|
Pharmaceutical
products
|
54 | 19,121 | (19,067 | ) | (99.7 | )% | - | (99.6 | )% | (0.1 | )% | |||||||||||||||||
|
Net
CAG revenue
|
$ | 843,303 | $ | 834,056 | $ | 9,247 | 1.1 | % | (2.3 | )% | (2.0 | )% | 5.4 | % | ||||||||||||||
(1)
Represents the percentage change in revenue attributed to the effect of changes
in currency rates from the twelve months ended December 31, 2008 to the twelve
months ended December 31, 2009.
(2)
Represents the percentage change in revenue during the twelve months ended
December 31, 2009 compared to the twelve months ended December 31, 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 Fourth Quarter Results
January
29, 2010
Page 12 of
14
IDEXX
Laboratories, Inc. and Subsidiaries
Consolidated
Balance Sheet
Amounts
in thousands (Unaudited)
|
December 31,
|
December 31,
|
||||||||
|
2009
|
2008
|
||||||||
|
Assets:
|
Current
Assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 106,728 | $ | 78,868 | |||||
|
Accounts
receivable, net
|
115,107 | 111,498 | |||||||
|
Inventories
|
110,425 | 115,926 | |||||||
|
Other
current assets
|
44,078 | 49,598 | |||||||
|
Total
current assets
|
376,338 | 355,890 | |||||||
|
Property
and equipment, at cost
|
346,592 | 320,198 | |||||||
|
Less:
accumulated depreciation
|
146,646 | 130,552 | |||||||
|
Property
and equipment, net
|
199,946 | 189,646 | |||||||
|
Other
long-term assets, net
|
232,243 | 219,901 | |||||||
|
Total
assets
|
$ | 808,527 | $ | 765,437 | |||||
|
Liabilities
and
|
|||||||||
|
Stockholders’
|
|||||||||
|
Equity:
|
Current
Liabilities:
|
||||||||
|
Accounts
payable
|
$ | 19,133 | $ | 28,006 | |||||
|
Accrued
expenses
|
104,959 | 104,616 | |||||||
|
Debt
|
119,603 | 151,385 | |||||||
|
Deferred
revenue
|
12,610 | 11,285 | |||||||
|
Total
current liabilities
|
256,305 | 295,292 | |||||||
|
Long-term
debt, net of current portion
|
4,281 | 5,094 | |||||||
|
Other
long-term liabilities
|
33,362 | 26,857 | |||||||
|
Total
long-term liabilities
|
37,643 | 31,951 | |||||||
|
Total
stockholders’ equity
|
514,569 | 438,194 | |||||||
|
Noncontrolling
interest
|
10 | - | |||||||
|
Total
equity
|
514,579 | 438,194 | |||||||
|
Total
liabilities and stockholders’ equity
|
$ | 808,527 | $ | 765,437 | |||||
IDEXX
Laboratories, Inc. and Subsidiaries
Key Balance Sheet Information
(Unaudited)
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
|||||||||||||||||
|
2009
|
2009
|
2009
|
2009
|
2008
|
|||||||||||||||||
|
Key
|
|||||||||||||||||||||
|
Balance
Sheet
|
Days
sales outstanding
|
38.9 | 41.2 | 40.2 | 43.8 | 41.9 | |||||||||||||||
|
Information:
|
Inventory
turns
|
2.2 | 1.8 | 1.8 | 1.6 | 2.0 | |||||||||||||||
IDEXX
Announces Fourth Quarter Results
January
29, 2010
Page 13 of
14
IDEXX
Laboratories, Inc. and Subsidiaries
Consolidated
Statement of Cash Flows
Amounts
in thousands (Unaudited)
|
Twelve
Months Ended
|
|||||||||
|
December 31,
|
December 31,
|
||||||||
|
2009
|
2008
|
||||||||
|
Operating:
|
Cash
Flows from Operating Activities:
|
||||||||
|
Net
income attributable to stockholders
|
$ | 122,225 | $ | 116,169 | |||||
|
Noncontrolling
interest in subsidiary’s earnings
|
10 | - | |||||||
|
Net
income
|
122,235 | 116,169 | |||||||
|
Non-cash
charges
|
63,042 | 60,650 | |||||||
|
Changes
in current assets and liabilities, net of acquisitions and
disposals
|
(11,559 | ) | (33,511 | ) | |||||
|
Net
cash provided by operating activities
|
$ | 173,718 | $ | 143,308 | |||||
|
Investing:
|
Cash
Flows from Investing Activities:
|
||||||||
|
Purchase
of property and equipment
|
(49,418 | ) | (89,237 | ) | |||||
|
Proceeds
from disposition of pharmaceutical product lines
|
3,377 | 7,025 | |||||||
|
Proceeds
from sale of property and equipment
|
2,079 | - | |||||||
|
Acquisitions
of intangible assets and businesses, net of cash acquired
|
(7,180 | ) | (8,649 | ) | |||||
|
Acquisition
of equipment leased to customers
|
(1,245 | ) | (734 | ) | |||||
|
Net
cash used by investing activities
|
$ | (52,387 | ) | $ | (91,595 | ) | |||
|
Financing:
|
Cash
Flows from Financing Activities:
|
||||||||
|
Borrowings
(payments) on revolving credit facilities, net
|
(32,830 | ) | 79,550 | ||||||
|
Payment
of other notes payable
|
(926 | ) | (595 | ) | |||||
|
Purchase
of treasury stock
|
(83,099 | ) | (132,342 | ) | |||||
|
Proceeds
from the exercise of stock options and employee stock purchase
plans
|
16,366 | 16,360 | |||||||
|
Tax
benefit from exercise of stock options and vesting of restricted stock
units
|
5,194 | 6,237 | |||||||
|
Net
cash used by financing activities
|
$ | (95,295 | ) | $ | (30,790 | ) | |||
|
Net
effect of changes in exchange rates on cash
|
1,824 | (2,415 | ) | ||||||
|
Net
increase in cash and cash equivalents
|
27,860 | 18,508 | |||||||
|
Cash
and cash equivalents, beginning of period
|
78,868 | 60,360 | |||||||
|
Cash
and cash equivalents, end of period
|
$ | 106,728 | $ | 78,868 | |||||
IDEXX
Laboratories, Inc. and Subsidiaries
Free
Cash Flow
Amounts
in thousands (Unaudited)
|
Twelve
Months Ended
|
|||||||||
|
December 31,
|
December 31,
|
||||||||
|
2009
|
2008
|
||||||||
|
Free
Cash
|
|||||||||
|
Flow:
|
Net
cash provided by operating activities
|
$ | 173,718 | $ | 143,308 | ||||
|
Financing
cash flows attributable to tax benefits from exercise of stock
options
|
|||||||||
|
and
vesting of restricted stock units
|
5,194 | 6,237 | |||||||
|
Purchase
of property and equipment
|
(49,418 | ) | (89,237 | ) | |||||
|
Acquisition
of equipment leased to customers
|
(1,245 | ) | (734 | ) | |||||
|
Free
cash flow
|
$ | 128,249 | $ | 59,574 | |||||
|
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 Fourth Quarter Results
January
29, 2010
Page 14 of
14
IDEXX
Laboratories, Inc. and Subsidiaries
Cash
Flow Impact of Pharmaceutical Transactions and Restructuring
Amounts
in thousands (Unaudited)
|
December 31,
|
||||
|
2008
|
||||
|
Proceeds
|
$ | 8,402 | ||
|
Restructuring
and transaction expenses incurred
|
(671 | ) | ||
|
Tax
charge related to disposal of nondeductible goodwill
|
(2,666 | ) | ||
|
Realization
of deferred tax assets
|
4,228 | |||
|
Tax
benefit realized from transaction loss
|
401 | |||
|
Net
cash flow realized from transaction and restructuring
|
$ | 9,694 | ||
IDEXX
Laboratories, Inc. and Subsidiaries
Common
Stock Repurchases
Amounts
in thousands except per share data (Unaudited)
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Share
repurchases during the period
|
486 | 297 | 1,919 | 2,640 | ||||||||||||
|
Average
price paid per share
|
$ | 51.69 | $ | 33.41 | $ | 43.30 | $ | 50.14 | ||||||||
|
Shares
remaining under repurchase authorization as of December 31,
2009:
|
2,294 | |||||||||||||||