Published on July 23, 2010
Contact:
Merilee Raines, Chief Financial Officer, 1-207-556-8155
FOR
IMMEDIATE RELEASE
IDEXX
Laboratories Announces Second Quarter Results
WESTBROOK, Maine, July 23,
2010 — IDEXX Laboratories, Inc. (NASDAQ: IDXX) (otherwise referred to
herein as “IDEXX,” “the Company,” “we,” and “our”), today reported that revenues
for the second quarter of 2010 increased 6% to $281.5 million, from $265.7
million for the second quarter of 2009. Organic revenue growth, as defined
below, was 5%. Earnings per diluted share (“EPS”) for the quarter ended June 30,
2010 increased 13% to $0.62, compared to $0.55 for the same period in the prior
year.
Organic
revenue growth excludes the impact of changes in foreign currency exchange rates
and revenue from businesses acquired or divested subsequent to the beginning of
the prior year period, each of which contributed less than 1% to revenue growth
in the second quarter of 2010.
“I am
very pleased with our second quarter results,” stated Jonathan Ayers, Chairman
and Chief Executive Officer. “Our achievement of 5% organic revenue growth in an
economic environment that remains challenging is a testament to our continued
success in bringing innovative products and services to our veterinary and other
customers. Earnings were ahead of our projection in April despite currency
headwinds caused by a stronger U.S. dollar. This performance was due to
continued gains in operating efficiency and our focus on disciplined expense
management.
Capital
placements in the second quarter were strong, led by sales of our Catalyst
Dx®
chemistry analyzer and our line of digital radiography systems. Total chemistry
placements for the quarter, which include our VetTest® and
Catalyst Dx®
analyzers, grew nearly 15% to 950, of which 556 were Catalyst Dx®
analyzers. We remain on track to place 2,400 Catalyst Dx®
analyzers in 2010. Already in the third quarter we have launched ProCyte Dx™, our new
hematology analyzer, and early customer response to this revolutionary new
instrument has been highly enthusiastic.
We remain
confident in the fundamental strength of our business model and in the long-term
growth prospects for our core markets. Our focus on operating efficiency and
disciplined expense management has enabled us to maintain our full year earnings
per share guidance despite the strengthening of the U.S. dollar since we
provided guidance in April and a slightly more conservative view of the pace of
the recovery in our markets.”
IDEXX
Announces Second Quarter Results
July 23,
2010
Page 2 of
12
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 2010 were $232.3 million compared to $217.3 million for the second
quarter of 2009. Changes in foreign currency exchange rates and incremental
revenues attributable to a business acquired in August 2009 each contributed
less than 1% to revenue growth. Organic growth of 6% was primarily the result of
higher testing volume in our laboratory diagnostic and consulting services
business and increased sales volume of IDEXX VetLab®
instruments and consumables. To a lesser extent, organic growth was favorably
impacted by higher sales volume of companion animal radiography systems. These
favorable effects were partly offset by lower average unit sales prices
resulting from economic and competitive conditions.
Water. Water segment revenues for
the second quarter of 2010 were $19.4 million compared to $19.2 million for the
second quarter of 2009. Changes in foreign currency exchange rates contributed
less than 1% to revenue growth. Organic revenue growth of 1% was the result of
higher Colilert® sales
volume, partly offset by higher relative sales of Colilert® products
in geographies where products are sold at lower unit sales prices.
Livestock
and Poultry Diagnostics. During the second quarter of
2010, we changed the name of our Production Animal Services segment to Livestock
and Poultry Diagnostics (“LPD”) to more accurately describe to customers and
others the products and services provided by this business. LPD revenues for the
second quarter of 2010 were $19.2 million compared to $19.6 million for the
second quarter of 2009. The decline in revenue was attributable to changes in
foreign currency exchange rates, partly offset by organic revenue growth of less
than 1% as higher sales volumes of certain bovine tests were substantially
offset by lower average unit sales prices for certain bovine tests and lower
sales volumes of certain swine tests.
Additional
Operating Results for the Second Quarter
Gross
profit for the second quarter of 2010 increased $10.8 million, or 8%, to $149.3
million from $138.4 million for the second quarter of 2009. As a percentage of
total revenue, gross profit increased to 53.0% from 52.1%. The increase in the
gross profit percentage was primarily attributable to reduced overall
manufacturing costs associated with our IDEXX VetLab®
instruments and lower depreciation on instruments placed at customer sites under
usage agreements. Lower costs of service and higher selling prices in our
laboratory diagnostic and consulting services business also contributed to the
increase in gross profit percentage. These favorable effects were partly offset
by lower average unit sales prices.
IDEXX
Announces Second Quarter Results
July 23,
2010
Page 3 of
12
Research
and development (“R&D”) expense for the second quarter of 2010 was $17.2
million, or 6.1% of revenue, compared to $16.6 million, or 6.2% of revenue for
the second quarter of 2009. The increase in R&D expense was primarily due to
increased headcount and increased personnel-related costs.
Selling,
general and administrative (“SG&A”) expense for the second quarter of 2010
was $77.2 million, or 27.4% of revenue, compared to $72.7 million, or 27.3% of
revenue, for the second quarter of 2009. The increase in SG&A expense
resulted primarily from increased headcount and increased personnel-related
costs. The net unfavorable impact of changes in foreign currency exchange rates
and an increase in costs attributable to information technology investments also
contributed to the increase in SG&A expense.
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,
2010.
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 in the range of $1.090 to $1.100 billion, updated from
guidance of $1.100 to $1.115 billion provided in April of this year, which
represents reported and organic revenue growth of 6% to 7%. This change in
the revenue outlook is largely due to the strengthening of the U.S. dollar
against certain currencies since the date of our previous
guidance.
|
|
|
·
|
EPS
are expected to be in the range of $2.23 to $2.28, which is unchanged from
our previous guidance as improved business performance is expected to
offset the negative impact from changes in foreign currency exchange
rates.
|
|
|
·
|
Free
cash flow is expected to be approximately 110% of net income.(1)
|
(1) Free
cash flow is a non-GAAP measure. It 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. With respect to this
particular forward-looking projection, the Company is unable to provide a
quantitative reconciliation at this time as the inputs to the measurement are
difficult to predict and estimate and are primarily dependent on future
events.
IDEXX
Announces Second Quarter Results
July 23,
2010
Page 4 of
12
Conference
Call and Webcast Information
IDEXX
will be hosting a conference call today at 9:00 a.m. (eastern) to discuss its
second quarter results and management's outlook. To participate in the
conference call, dial 1-612-332-0718 or 1-800-288-8960 and reference
confirmation code 165207. An audio replay will be available through July 30,
2010 by dialing 1-320-365-3844 and referencing replay code 165207.
The call
will also be available via live or archived webcast on the IDEXX web site at
www.idexx.com.
About
IDEXX Laboratories, Inc.
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 livestock and poultry diagnostic tests and tests for the quality
and safety of water and milk. Headquartered in Maine, IDEXX Laboratories, Inc.
employs more than 4,800 people and offers products to customers in over 100
countries.
IDEXX
Announces Second Quarter Results
July 23,
2010
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. Forward-looking statements can be identified by the
use of words such as “expects,” “may,” “anticipates,” “intends,” “would,” “will,” “plans,” “believes,” “estimates,” “should,” and similar words and
expressions. 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
Company’s ability to achieve economies
of scale in its
worldwide network of laboratories; the impact of a weak economy on demand
for the Company’s products and services; the
effectiveness of the Company’s sales and marketing activities;
the Company’s ability to identify acquisition
opportunities, complete
acquisitions and integrate acquired businesses; 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 manufacture complex biologic
products; the impact of
changes and disruptions in financial and currency markets; 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 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 impact of
distributor purchasing decisions on sales of the Company’s products that are sold through
distribution; the
impact of competition, technological change, and veterinary hospital
consolidation on the markets for the Company’s products; changes or trends in veterinary
medicine that affect the rate of use of the Company’s products and services by
veterinarians; the
impact of the Company’s inexperience in the human
point-of-care market;
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; the loss of key employees; class action litigation due to
stock price volatility; the effect on the Company’s stock price if quarterly or annual
operations results do not meet expectation of market analysts or investors in
future periods; and potential exposures related to our worldwide provision for
income taxes. 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, 2009, and
quarterly report on Form 10-Q for the quarter ended March 31, 2010,
in the section
captioned "Risk Factors.”
IDEXX
Announces Second Quarter Results
July 23,
2010
Page 6 of
12
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,
|
||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
||||||||||||||
|
Revenue:
|
Revenue
|
$ | 281,482 | $ | 265,723 | $ | 550,007 | $ | 502,178 | ||||||||
|
Expenses
and
|
|||||||||||||||||
|
Income:
|
Cost
of revenue
|
132,198 | 127,283 | 258,362 | 239,305 | ||||||||||||
|
Gross
profit
|
149,284 | 138,440 | 291,645 | 262,873 | |||||||||||||
|
Sales
and marketing
|
44,167 | 41,876 | 88,583 | 82,861 | |||||||||||||
|
General
and administrative
|
33,076 | 30,794 | 65,884 | 59,862 | |||||||||||||
|
Research
and development
|
17,206 | 16,594 | 33,915 | 32,533 | |||||||||||||
|
Income
from operations
|
54,835 | 49,176 | 103,263 | 87,617 | |||||||||||||
|
Interest
expense, net
|
551 | 403 | 863 | 799 | |||||||||||||
|
Income
before provision for income taxes
|
54,284 | 48,773 | 102,400 | 86,818 | |||||||||||||
|
Provision
for income taxes
|
17,087 | 15,106 | 32,175 | 27,080 | |||||||||||||
|
Net
Income:
|
Net
income
|
37,197 | 33,667 | 70,225 | 59,738 | ||||||||||||
|
Less:
Net income attributable to noncontrolling
|
|||||||||||||||||
|
interest
|
4 | - | 6 | - | |||||||||||||
|
Net
income attributable to IDEXX Laboratories, Inc.
|
|||||||||||||||||
|
stockholders
|
$ | 37,193 | $ | 33,667 | $ | 70,219 | $ | 59,738 | |||||||||
|
Earnings
per share: Basic
|
$ | 0.64 | $ | 0.57 | $ | 1.21 | $ | 1.01 | |||||||||
|
Earnings
per share: Diluted
|
$ | 0.62 | $ | 0.55 | $ | 1.17 | $ | 0.98 | |||||||||
|
Shares
outstanding: Basic
|
57,747 | 58,911 | 57,890 | 59,041 | |||||||||||||
|
Shares
outstanding: Diluted
|
59,646 | 60,697 | 59,875 | 60,688 | |||||||||||||
IDEXX
Laboratories, Inc. and Subsidiaries
Selected Operating Information
(Unaudited)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||
|
June
30,
|
June
30,
|
June
30,
|
June
30,
|
||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
||||||||||||||
|
Operating
|
Gross
profit
|
53.0 | % | 52.1 | % | 53.0 | % | 52.3 | % | ||||||||
|
Ratios
(as
a percentage of revenue):
|
Sales,
marketing, general and administrative expense
|
27.4 | % | 27.3 | % | 28.1 | % | 28.4 | % | ||||||||
|
|
Research
and development expense
|
6.1 | % | 6.2 | % | 6.2 | % | 6.5 | % | ||||||||
|
Income
from operations(1)
|
19.5 | % | 18.5 | % | 18.8 | % | 17.4 | % | |||||||||
|
International
Revenue:
|
International
revenue (in
thousands)
|
$ | 113,701 | $ | 105,999 | $ | 222,360 | $ | 196,411 | ||||||||
|
|
International
revenue as percentage of
|
||||||||||||||||
|
total
revenue
|
40.4 | % | 39.9 | % | 40.4 | % | 39.1 | % | |||||||||
(1) The
sum of individual items may not equal the total due to rounding.
IDEXX
Announces Second Quarter Results
July 23,
2010
Page 7 of
12
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,
|
||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
||||||||||||||
|
Revenue:
|
CAG
|
$ | 232,320 | $ | 217,289 | $ | 453,737 | $ | 410,981 | ||||||||
|
Water
|
19,448 | 19,165 | 37,312 | 35,016 | |||||||||||||
|
LPD
|
19,160 | 19,639 | 39,101 | 37,905 | |||||||||||||
|
Other
|
10,554 | 9,630 | 19,857 | 18,276 | |||||||||||||
|
Total
|
$ | 281,482 | $ | 265,723 | $ | 550,007 | $ | 502,178 | |||||||||
|
Gross
Profit:
|
CAG
|
$ | 119,632 | $ | 108,334 | $ | 232,962 | $ | 204,776 | ||||||||
|
Water
|
12,229 | 12,554 | 23,443 | 23,710 | |||||||||||||
|
LPD
|
13,105 | 13,299 | 26,579 | 26,407 | |||||||||||||
|
Other
|
4,248 | 4,193 | 8,401 | 7,741 | |||||||||||||
|
Unallocated
|
70 | 60 | 260 | 239 | |||||||||||||
|
Total
|
$ | 149,284 | 138,440 | $ | 291,645 | $ | 262,873 | ||||||||||
|
Income
from Operations:
|
CAG
|
$ | 44,879 | $ | 39,912 | $ | 84,646 | $ | 68,991 | ||||||||
|
Water
|
7,917 | 8,608 | 15,040 | 15,920 | |||||||||||||
|
LPD
|
4,188 | 5,108 | 8,922 | 10,058 | |||||||||||||
|
Other
|
202 | (30 | ) | 462 | 99 | ||||||||||||
|
Unallocated
|
(2,351 | ) | (4,422 | ) | (5,807 | ) | (7,451 | ) | |||||||||
|
Total
|
$ | 54,835 | $ | 49,176 | $ | 103,263 | $ | 87,617 | |||||||||
|
Gross
Profit
|
|||||||||||||||||
|
(as
a percentage of revenue):
|
CAG
|
51.5 | % | 49.9 | % | 51.3 | % | 49.8 | % | ||||||||
|
Water
|
62.9 | % | 65.5 | % | 62.8 | % | 67.7 | % | |||||||||
|
LPD
|
68.4 | % | 67.7 | % | 68.0 | % | 69.7 | % | |||||||||
|
Other
|
40.3 | % | 43.5 | % | 42.3 | % | 42.4 | % | |||||||||
|
Total
|
53.0 | % | 52.1 | % | 53.0 | % | 52.3 | % | |||||||||
|
Income
from Operations
|
|||||||||||||||||
|
(as
a percentage of revenue):
|
CAG
|
19.3 | % | 18.4 | % | 18.7 | % | 16.8 | % | ||||||||
|
Water
|
40.7 | % | 44.9 | % | 40.3 | % | 45.5 | % | |||||||||
|
LPD
|
21.9 | % | 26.0 | % | 22.8 | % | 26.5 | % | |||||||||
|
Other
|
1.9 | % | (0.3 | )% | 2.3 | % | 0.5 | % | |||||||||
|
Total
|
19.5 | % | 18.5 | % | 18.8 | % | 17.4 | % | |||||||||
IDEXX
Announces Second Quarter Results
July 23,
2010
Page 8 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
|
June
30,
2010
|
June
30,
2009
|
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
|
$ | 232,320 | $ | 217,289 | $ | 15,031 | 6.9 | % | 0.3 | % | 0.7 | % | 5.9 | % | ||||||||||||||
|
Water
|
19,448 | 19,165 | 283 | 1.5 | % | 0.3 | % | - | 1.2 | % | ||||||||||||||||||
|
LPD
|
19,160 | 19,639 | (479 | ) | (2.4 | )% | (2.8 | )% | - | 0.4 | % | |||||||||||||||||
|
Other
|
10,554 | 9,630 | 924 | 9.6 | % | (0.4 | )% | - | 10.0 | % | ||||||||||||||||||
|
Total
|
$ | 281,482 | $ | 265,723 | $ | 15,759 | 5.9 | % | 0.0 | % | 0.6 | % | 5.3 | % | ||||||||||||||
|
Three Months
Ended
|
||||||||||||||||||||||||||||
|
Net
CAG Revenue
|
June
30,
2010
|
June
30,
2009
|
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
|
$ | 86,455 | $ | 83,732 | $ | 2,723 | 3.3 | % | (0.6 | )% | - | 3.9 | % | |||||||||||||||
|
Rapid
assay products
|
40,481 | 41,567 | (1,086 | ) | (2.6 | )% | 0.4 | % | - | (3.0 | )% | |||||||||||||||||
|
Laboratory
diagnostic and consulting services
|
86,048 | 77,876 | 8,172 | 10.5 | % | 0.9 | % | 1.8 | % | 7.8 | % | |||||||||||||||||
|
Practice
information systems and digital radiography
|
19,336 | 14,114 | 5,222 | 37.0 | % | 1.5 | % | 1.0 | % | 34.5 | % | |||||||||||||||||
|
Net
CAG revenue
|
$ | 232,320 | $ | 217,289 | $ | 15,031 | 6.9 | % | 0.3 | % | 0.7 | % | 5.9 | % | ||||||||||||||
(1) The
percentage change from currency is a non-GAAP measure. It represents the
percentage change in revenue resulting from the difference between the average
exchange rates during the three months ended June 30, 2010 and the same period
of the prior year applied against foreign currency denominated revenues for the
three months ended June 30, 2010.
(2)
Represents the percentage change in revenue during the three months ended June
30, 2010 compared to the three months ended June 30, 2009 attributed to
incremental revenues from businesses acquired or revenues lost from businesses
divested or discontinued subsequent to March 31, 2009.
(3)
Organic Growth
IDEXX
Announces Second Quarter Results
July 23,
2010
Page 9 of
12
IDEXX
Laboratories, Inc. and Subsidiaries
Revenues
and Revenue Growth Analysis by Product and Service Categories
Amounts
in thousands (Unaudited)
|
Six Months Ended
|
||||||||||||||||||||||||||||
|
Net Revenue
|
June 30,
2010
|
June 30,
2009
|
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
|
$ | 453,737 | $ | 410,981 | $ | 42,756 | 10.4 | % | 1.8 | % | 0.8 | % | 7.8 | % | ||||||||||||||
|
Water
|
37,312 | 35,016 | 2,296 | 6.6 | % | 2.3 | % | - | 4.3 | % | ||||||||||||||||||
|
LPD
|
39,101 | 37,905 | 1,196 | 3.2 | % | 0.8 | % | - | 2.4 | % | ||||||||||||||||||
|
Other
|
19,857 | 18,276 | 1,581 | 8.7 | % | 0.6 | % | - | 8.1 | % | ||||||||||||||||||
|
Total
|
$ | 550,007 | $ | 502,178 | $ | 47,829 | 9.5 | % | 1.7 | % | 0.6 | % | 7.2 | % | ||||||||||||||
|
Six Months
Ended
|
||||||||||||||||||||||||||||
|
Net
CAG Revenue
|
June
30,
2010
|
June
30,
2009
|
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
|
$ | 169,837 | $ | 155,967 | $ | 13,870 | 8.9 | % | 1.4 | % | - | 7.5 | % | |||||||||||||||
|
Rapid
assay products
|
79,924 | 79,244 | 680 | 0.9 | % | 0.9 | % | - | 0.0 | % | ||||||||||||||||||
|
Laboratory
diagnostic and consulting services
|
165,888 | 146,568 | 19,320 | 13.2 | % | 2.9 | % | 1.9 | % | 8.4 | % | |||||||||||||||||
|
Practice
information systems and digital radiography
|
38,088 | 29,148 | 8,940 | 30.7 | % | 1.8 | % | 0.8 | % | 28.1 | % | |||||||||||||||||
|
Pharmaceutical
products
|
- | 54 | (54 | ) | (100.0 | )% | - | (100.0 | )% | - | ||||||||||||||||||
|
Net
CAG revenue
|
$ | 453,737 | $ | 410,981 | $ | 42,756 | 10.4 | % | 1.8 | % | 0.8 | % | 7.8 | % | ||||||||||||||
(1) The
percentage change from currency is a non-GAAP measure. It represents the
percentage change in revenue resulting from the difference between the average
exchange rates during the six months ended June 30, 2010 and the same period of
the prior year applied against foreign currency denominated revenues for the six
months ended June 30, 2010.
(2)
Represents the percentage change in revenue during the six months ended June 30,
2010 compared to the six months ended June 30, 2009 attributed to incremental
revenues from businesses acquired or revenues lost from businesses divested or
discontinued subsequent to December 31, 2008.
(3)
Organic Growth
IDEXX
Announces Second Quarter Results
July 23,
2010
Page 10
of 12
IDEXX
Laboratories, Inc. and Subsidiaries
Consolidated
Balance Sheet
Amounts
in thousands (Unaudited)
|
June
30,
|
December
31,
|
||||||||
|
2010
|
2009
|
||||||||
|
Assets:
|
Current
Assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 117,975 | $ | 106,728 | |||||
|
Accounts
receivable, net
|
127,138 | 115,107 | |||||||
|
Inventories,
net
|
122,032 | 110,425 | |||||||
|
Other
current assets
|
43,407 | 44,078 | |||||||
|
Total
current assets
|
410,552 | 376,338 | |||||||
|
Property
and equipment, at cost
|
355,028 | 346,592 | |||||||
|
Less:
accumulated depreciation
|
158,314 | 146,646 | |||||||
|
Property
and equipment, net
|
196,714 | 199,946 | |||||||
|
Other
long-term assets, net
|
226,469 | 232,243 | |||||||
|
Total
assets
|
$ | 833,735 | $ | 808,527 | |||||
|
|
|||||||||
|
Liabilities
and Stockholders’ Equity:
|
Current
Liabilities:
|
||||||||
|
Accounts
payable
|
$ | 23,190 | $ | 19,133 | |||||
|
Accrued
liabilities
|
99,629 | 104,959 | |||||||
|
Debt
|
134,700 | 119,603 | |||||||
|
Deferred
revenue
|
13,681 | 12,610 | |||||||
|
Total
current liabilities
|
271,200 | 256,305 | |||||||
|
Long-term
debt, net of current portion
|
3,856 | 4,281 | |||||||
|
Other
long-term liabilities
|
34,402 | 33,362 | |||||||
|
Total
long-term liabilities
|
38,258 | 37,643 | |||||||
|
Total
IDEXX Laboratories, Inc. stockholders’ equity
|
524,261 | 514,569 | |||||||
|
Noncontrolling
interest
|
16 | 10 | |||||||
|
Total
stockholders’ equity
|
524,277 | 514,579 | |||||||
|
Total
liabilities and stockholders’ equity
|
$ | 833,735 | $ | 808,527 | |||||
IDEXX
Laboratories, Inc. and Subsidiaries
Selected Balance Sheet
Information (Unaudited)
|
Jun
30,
|
Mar
31,
|
Dec
31,
|
Sept
30,
|
Jun
30,
|
|||||||||||||||||
|
2010
|
2010
|
2009
|
2009
|
2009
|
|||||||||||||||||
|
Selected
|
|||||||||||||||||||||
|
Balance
Sheet Information:
|
Days
sales outstanding
|
41.8 | 41.7 | 38.9 | 41.2 | 40.2 | |||||||||||||||
|
|
Inventory
turns
|
1.9 | 2.0 | 1.9 | 1.8 | 1.8 | |||||||||||||||
IDEXX
Announces Second Quarter Results
July 23,
2010
Page 11
of 12
IDEXX
Laboratories, Inc. and Subsidiaries
Consolidated
Statement of Cash Flows
Amounts
in thousands (Unaudited)
|
Six Months Ended
|
|||||||||
|
June
30,
|
June
30,
|
||||||||
|
|
2010
|
2009
|
|||||||
|
Operating:
|
Cash
Flows from Operating Activities:
|
||||||||
|
Net
income
|
$ | 70,225 | $ | 59,738 | |||||
|
Non-cash
charges
|
31,089 | 35,032 | |||||||
|
Changes
in current assets and liabilities
|
(16,857 | ) | (22,534 | ) | |||||
|
Tax
benefit from exercises of stock options and vesting of restricted stock
units
|
(9,372 | ) | (1,355 | ) | |||||
|
Net cash provided by operating
activities
|
75,085 | 70,881 | |||||||
|
Investing:
|
Cash
Flows from Investing Activities:
|
||||||||
|
Purchase
of property and equipment
|
(17,437 | ) | (21,360 | ) | |||||
|
Proceeds
from disposition of pharmaceutical product lines
|
- | 1,377 | |||||||
|
Proceeds
from sale of property and equipment
|
64 | 1,076 | |||||||
|
Acquisitions
of intangible assets
|
(144 | ) | - | ||||||
|
Net cash used by investing
activities
|
(17,517 | ) | (18,907 | ) | |||||
|
Financing:
|
Cash
Flows from Financing Activities:
|
||||||||
|
Borrowings
on revolving credit facilities, net
|
15,099 | 3,782 | |||||||
|
Payment
of other notes payable
|
(400 | ) | (436 | ) | |||||
|
Purchase
of treasury stock
|
(83,724 | ) | (39,725 | ) | |||||
|
Proceeds
from the exercises of stock options and employee stock purchase
plans
|
16,446 | 6,888 | |||||||
|
Tax
benefit from exercises of stock options and vesting of restricted stock
units
|
9,372 | 1,355 | |||||||
|
Net used by financing activities
|
(43,207 | ) | (28,136 | ) | |||||
|
Net effect of changes in exchange
rates on cash
|
(3,114 | ) | 1,038 | ||||||
|
Net increase in cash and cash
equivalents
|
11,247 | 24,876 | |||||||
|
Cash and cash equivalents,
beginning of period
|
106,728 | 78,868 | |||||||
|
Cash and cash equivalents, end of
period
|
$ | 117,975 | $ | 103,744 | |||||
IDEXX
Laboratories, Inc. and Subsidiaries
Free
Cash Flow
Amounts
in thousands (Unaudited)
|
Six Months Ended
|
|||||||||
|
June
30,
|
June
30,
|
||||||||
|
|
2010
|
2009
|
|||||||
|
Free
Cash Flow:
|
Net
cash provided by operating activities
|
$ | 75,085 | $ | 70,881 | ||||
|
Financing
cash flows attributable to tax benefit from exercises of stock
options
|
|||||||||
|
and
vesting of restricted stock units
|
9,372 | 1,355 | |||||||
|
Purchase
of property and equipment
|
(17,437 | ) | (21,360 | ) | |||||
|
Free cash flow
|
$ | 67,020 | $ | 50,876 | |||||
IDEXX
Announces Second Quarter Results
July 23,
2010
Page 12
of 12
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,
|
|||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Share
repurchases during the period
|
422 | 593 | 1,513 | 1,061 | ||||||||||||
|
Average
price paid per share
|
$ | 61.66 | $ | 41.72 | $ | 55.32 | $ | 37.46 | ||||||||
|
Shares
remaining under repurchase authorization as of June 30,
2010:
|
4,780 | |||||||||||||||
Share
repurchases does not include shares surrendered by employees in payment for the
minimum required withholding taxes due on the exercise of stock options, the
vesting of restricted stock units and the settlement of deferred stock units,
and in payment for the exercise price of stock options.