WESTBROOK, Maine, Oct. 23 /PRNewswire-FirstCall/ --
IDEXX Laboratories, Inc. (NASDAQ:IDXX), today reported that revenues for the third quarter of 2009 were $259.1 million compared to $251.1 million for the third quarter of 2008. Organic revenue growth, as defined below, was 5%. Earnings per diluted share ("EPS") for the quarter ended September 30, 2009 grew 24% to $0.52 from $0.42 for the same period in the prior year.
Organic revenue growth excludes the impact of changes in currency exchange rates, which reduced revenue growth by approximately 2%, and revenue from businesses acquired or divested subsequent to the beginning of the prior year period, which had minimal impact on revenue growth.
"In the third quarter IDEXX continued to execute against our strategy of technological innovation and international expansion, while addressing an economy that remains challenging," said Jonathan W. Ayers, Chief Executive Officer. "Our overall performance varied by line of business and geography, but our core companion animal businesses achieved solid organic growth worldwide. Growth of instrument and consumable sales, our largest business, continued to be led by sales of Catalyst Dx®, our next generation chemistry analyzer. Third quarter placements of 469 units put us on track for around 1,900 placements for the year. We continue to feel good about the progress in the Catalyst performance in the field and the energy and alignment in our sales channels, and thus, we expect a strong finish in the fourth quarter in both North America and Europe."
"Our international performance was a highlight of the quarter, particularly in Asia where we have experienced organic growth of 17% year-to-date, driven by more than 20% organic growth in the last two quarters. All of our major lines of business are present in the region, and we believe that some of our most attractive growth opportunities are found in Asia as well as other international markets. The relative strength of certain markets outside the U.S. is helping us continue to achieve growth despite the difficult economy."
"Strong bottom line performance during the quarter was driven to a large extent by our ongoing close management of operating expenses, where we have achieved some meaningful efficiencies. We also continue to see bottom line impact from careful management of the tax rate, finance leverage and share count."
"While we are cautious about the near-term economy, we remain confident in our long-term outlook based on the fundamental attractiveness of our markets, our unique and innovative product and service offerings, our international footprint, and our ability to achieve increasing operating efficiencies based on our growing experience and the scale of our businesses."
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 third quarter of 2009 were $214.5 million compared to $204.8 million for the third quarter of 2008. Changes in foreign currency exchange rates reduced revenue growth by approximately 2%. Organic growth of 7% was the result of increased sales volume across all product lines and higher average unit sales prices. In the IDEXX VetLab® product line, higher sales volume was driven by sales of our Catalyst Dx® chemistry analyzer and related consumables. 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 third quarter of 2009 were $19.7 million compared to $20.3 million for the third quarter of 2008. The decrease in Water revenue was due to the unfavorable impact of changes in foreign currency exchange rates, which reduced reported revenue by 3%. The favorable impact of higher sales volumes was offset by lower unit sales prices.
Production Animal Segment. Production Animal Segment ("PAS") revenues for the third quarter of 2009 were $15.9 million compared to $17.8 million for the third quarter of 2008. Changes in foreign currency exchange rates unfavorably impacted revenue by approximately 3%. Organically, PAS revenue declined due primarily to lower sales volumes.
Year-to-Date Results
Year-to-date revenues were $761.3 million compared to $780.7 million for the nine months ended September 30, 2008. Organic growth for the nine months ended September 30, 2009 was 4%.
Year-to-date diluted EPS were $1.50 compared to $1.48 for the nine months ended September 30, 2008. As shown in the reconciliation of non-GAAP diluted EPS to earnings per share in the supplementary table provided below, diluted EPS of $1.50 grew 3% compared to 2008 non-GAAP diluted EPS of $1.46.
Additional Operating Results for the Third Quarter
Gross profit for the third quarter of 2009 increased $2.3 million, or 2%, to $130.5 million from $128.1 million for the third quarter of 2008. As a percentage of total revenue, gross profit decreased to 50% from 51%. The decrease in gross profit percentage was due primarily to higher overall manufacturing costs and higher relative sales of lower margin IDEXX VetLab® instruments and digital radiography systems, partly offset by lower depreciation expense related to IDEXX VetLab® instruments placed at customer sites and the impact of higher selling prices.
Research and development ("R&D") expense for the third quarter of 2009 was $16.6 million, or 6% of revenue, compared to $17.9 million, or 7% of revenue for the third quarter of 2008. The decrease in R&D expense was due primarily to the absence of pharmaceutical business R&D spending in the third quarter of 2009, resulting from the disposition of substantially all of our pharmaceutical business and assets in the fourth quarter of 2008.
Selling, general and administrative ("SG&A") expense for the third quarter of 2009 was $69.7 million, or 27% of revenue, compared to $71.2 million, or 28% of revenue, for the third quarter of 2008. The decrease in SG&A expense resulted primarily from the favorable impact of exchange rate changes on foreign currency denominated expenses, the absence of pharmaceutical business SG&A spending in the third quarter of 2009 and lower bad debt expense. These impacts were partly offset by higher personnel costs due, in part, to an increase in customer support resources.
Supplementary Analysis of Results
The accompanying financial tables provide more information concerning our revenue and other operating results for the three and nine months ended September 30, 2009, as well as a reconciliation of earnings per share to non-GAAP diluted EPS.
Outlook for 2009 and 2010
The Company provides the following updated guidance for the full year of 2009 and preliminary guidance for 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 2009 and 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 both years.
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 4%. This guidance is unchanged
from the previous guidance provided in July 2009, as modest additional
currency benefits from the weakening of the U.S. Dollar relative to
other major currencies since July are offset by a slight reduction in
organic revenue growth.
-- Diluted EPS are expected to be $1.92 to $1.95, an increase from our
previous guidance of $1.88 to $1.92, reflecting the anticipated
currency benefits discussed above, third quarter tax benefits from the
expiration of certain statutes of limitation and projected lower
operating expenses.
-- Free cash flow is expected to be approximately 105% of net income.
2010
-- Revenue is expected to be $1.08 to $1.1 billion, which represents
revenue growth of 6% to 8% compared to projected revenue for 2009.
Revenue growth adjusted to exclude a projected 2% benefit from foreign
exchange rate changes is estimated to be in the range of 4% to 6%.
-- Diluted EPS are expected to be in the range of $2.15 to $2.25.
Conference Call and Webcast Information
IDEXX Laboratories will be hosting a conference call today at 9:00 a.m. (eastern) to discuss its third quarter results. To participate in the conference call, dial 1-612-288-0340 or 1-877-209-9923 and reference confirmation code 119780. An audio replay will be available through Friday, October 30, 2009 by dialing 1-320-365-3844 and referencing replay code 119780.
The call will also be available via live or archived Webcast on the IDEXX Laboratories' web site at http://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.
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 June 30, 2009, in the section captioned "Risk Factors."
IDEXX Laboratories, Inc. and Subsidiaries
Consolidated Statement of Operations
Amounts in thousands except per share data (Unaudited)
Three Months Ended Nine Months Ended
-------------------- --------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
------------------------------------------------------------
Revenue: Revenue $259,120 $251,093 $761,298 $780,737
Expenses and
Income: Cost of revenue 128,643 122,944 367,948 371,492
------------------------------------------------------------
Gross profit 130,477 128,149 393,350 409,245
Sales and
marketing 41,504 41,527 124,365 129,742
General and
administrative 28,185 29,705 88,047 89,407
Research and
development 16,583 17,920 49,116 53,489
------------------------------------------------------------
Income from
operations 44,205 38,997 131,822 136,607
Interest expense,
net (388) (560) (1,187) (1,688)
------------------------------------------------------------
Income before
provision for
income taxes 43,817 38,437 130,635 134,919
Provision for
income taxes 12,281 12,738 39,361 42,305
------------------------------------------------------------
Net Income: Net income $ 31,536 $ 25,699 $ 91,274 $ 92,614
------------------------------------------------------------
Earnings per
share: Basic $ 0.54 $ 0.43 $ 1.55 $ 1.54
------------------------------------------------------------
Earnings per
share: Diluted $ 0.52 $ 0.42 $ 1.50 $ 1.48
------------------------------------------------------------
Shares
outstanding:
Basic 58,656 59,473 58,911 60,121
------------------------------------------------------------
Shares outstanding:
Diluted 60,668 61,865 60,718 62,603
------------------------------------------------------------
IDEXX Laboratories, Inc. and Subsidiaries
Key Operating Information (Unaudited)
Three Months Ended Nine Months Ended
-------------------- --------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
----------------------------------------------------------
Key Operating Gross profit 50.4% 51.0% 51.7% 52.4%
Ratios Sales, marketing,
(as a general and
percentage of administrative
revenue): expense 26.9% 28.4% 27.9% 28.1%
Research and
development
expense 6.4% 7.1% 6.5% 6.9%
----------------------------------------------------------
Income from
operations (1) 17.1% 15.5% 17.3% 17.5%
----------------------------------------------------------
International International
revenue (in
thousands) $102,044 $99,646 $298,456 $316,902
----------------------------------------------------------
Revenue: International
revenue as a
percentage of
total revenue 39.4% 39.7% 39.2% 40.6%
----------------------------------------------------------
(1) The sum of individual items may not equal the total due to rounding.
IDEXX Laboratories, Inc. and Subsidiaries
Non-GAAP Financial Measures
Amounts in thousands except per share data (Unaudited)
Nine Months Ended
----------------------------------
Income from
Gross Profit Operations
------------ -----------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
---------------------------------------------------------------------
GAAP measurement $393,350 $409,245 $131,822 $136,607
% of revenue 51.7% 52.4% 17.3% 17.5%
Discrete income
tax benefits(1) - - - -
---------------------------------------------------------------------
Non-GAAP comparative
measurements(2) $393,350 $409,245 $131,822 $136,607
---------------------------------------------------------------------
% of revenue 51.7% 52.4% 17.3% 17.5%
Nine Months Ended
---------------------------------------
Earnings per Share
Net Income Diluted
---------- --------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
---------------------------------------------------------------------
GAAP measurement $91,274 $92,614 $1.50 $1.48
% of revenue 12.0% 11.9%
Discrete income
tax benefits(1) - (1,472) - (0.02)
---------------------------------------------------------------------
Non-GAAP comparative
measurements(2) $91,274 $91,142 $1.50 $1.46
---------------------------------------------------------------------
% of revenue 12.0% 11.7%
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 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 a reduction in 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 Laboratories, Inc. and Subsidiaries
Segment Information
Amounts in thousands (Unaudited)
Three Months Ended Nine Months Ended
------------------ ------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
---------------------------------------------------
Revenue: CAG $214,461 $204,762 $625,442 $637,534
Water 19,691 20,321 54,707 57,287
PAS 15,943 17,801 53,848 60,452
Other 9,025 8,209 27,301 25,464
---------------------------------------------------
Total $259,120 $251,093 $761,298 $780,737
---------------------------------------------------
Gross Profit: CAG $105,234 $ 99,807 $310,010 $321,842
Water 12,251 12,825 35,961 35,573
PAS 9,257 12,035 35,664 40,698
Other 3,721 3,462 11,462 10,840
Unallocated 14 20 253 292
---------------------------------------------------
Total $130,477 $128,149 $393,350 $409,245
---------------------------------------------------
Income from
Operations: CAG $ 38,002 $ 28,800 $106,993 $105,412
Water 8,416 8,865 24,336 23,437
PAS 944 3,482 11,002 14,824
Other (244) 127 (145) 634
Unallocated (2,913) (2,277) (10,364) (7,700)
---------------------------------------------------
Total $ 44,205 $ 38,997 $131,822 $136,607
---------------------------------------------------
Gross Profit
(as a
percentage
of revenue): CAG 49.1% 48.7% 49.6% 50.5%
Water 62.2% 63.1% 65.7% 62.1%
PAS 58.1% 67.6% 66.2% 67.3%
Other 41.2% 42.2% 42.0% 42.6%
Income from
Operations
(as a
percentage
of revenue): CAG 17.7% 14.1% 17.1% 16.5%
Water 42.7% 43.6% 44.5% 40.9%
PAS 5.9% 19.6% 20.4% 24.5%
Other (2.7%) 1.6% (0.5%) 2.5%
IDEXX Laboratories, Inc. and Subsidiaries
Revenues and Revenue Growth Analysis by Product and Service Categories
Amounts in thousands (Unaudited)
Three Months Ended
------------------
Sept. 30, Sept. 30, Dollar Percentage
Net Revenue 2009 2008 Change Change
----------- ---- ---- ------ ------
CAG $214,461 $204,762 $9,699 4.7%
Water 19,691 20,321 (630) (3.1%)
PAS 15,943 17,801 (1,858) (10.4%)
Other 9,025 8,209 816 9.9%
-------- -------- ------
Total $259,120 $251,093 $8,027 3.2%
======== ======== ======
Three Months Ended
------------------
Percentage
Change Net of
Percentage Acquisitions/
Percentage Change from Divestitures
Change from Acquisitions/ and Currency
Net Revenue Currency (1) Divestitures (2) Effect (3)
----------- ------------ ---------------- -------------
CAG (1.9%) (0.1%) 6.7%
Water (3.0%) - (0.1%)
PAS (2.8%) - (7.6%)
Other (0.4%) - 10.3%
Total (2.0%) (0.1%) 5.3%
Three Months Ended
------------------
Sept. 30, Sept. 30, Dollar Percentage
Net Revenue 2009 2008 Change Change
----------- ---- ---- ------ ------
Instruments
and consumables $83,922 $80,587 $3,335 4.1%
Rapid assay
products 37,753 36,300 1,453 4.0%
Laboratory and
consulting
services 76,419 73,536 2,883 3.9%
Practice
information
management
systems and
digital
radiography 16,367 13,333 3,034 22.8%
Pharmaceutical
products - 1,006 (1,006) (100.0%)
-------- -------- ------
Net CAG
Revenue $214,461 $204,762 $9,699 4.7%
======== ======== ======
Three Months Ended
------------------
Percentage
Change Net of
Percentage Acquisitions/
Percentage Change from Divestitures
Change from Acquisitions/ and Currency
Net Revenue Currency (1) Divestitures (2) Effect (3)
----------- ------------ ---------------- -------------
Instruments and
consumables (1.9%) - 6.0%
Rapid assay
products (0.5%) - 4.5%
Laboratory and
consulting
services (2.7%) 0.9% 5.7%
Practice
information
management
systems and
digital
radiography (0.9%) 0.3% 23.4%
Pharmaceutical
products - (100.0%) -
Net CAG revenue (1.9%) (0.1%) 6.7%
(1) Represents the percentage change in revenue attributed to the effect
of changes in currency rates from the three months ended September 30,
2009 to the three months ended September 30, 2008.
(2) Represents the percentage change in revenue during the three months
ended September 30, 2009 compared to the three months ended September 30,
2008 attributed to incremental revenues from businesses acquired or
revenues lost from businesses divested or discontinued subsequent to June
30, 2008.
(3) Organic growth
IDEXX Laboratories, Inc. and Subsidiaries
Revenues and Revenue Growth Analysis by Product and Service Categories
Amounts in thousands (Unaudited)
Nine Months Ended
-----------------
Sept. 30, Sept. 30, Dollar Percentage
Net Revenue 2009 2008 Change Change
----------- ---- ---- ------ ------
CAG $625,442 $637,534 $(12,092) (1.9%)
Water 54,707 57,287 (2,580) (4.5%)
PAS 53,848 60,452 (6,604) (10.9%)
Other 27,301 25,464 1,837 7.2%
-------- -------- --------
Total $761,298 $780,737 $(19,439) (2.5%)
======== ======== ========
Nine Months Ended
-----------------
Percentage
Change Net of
Percentage Acquisitions/
Percentage Change from Divestitures
Change from Acquisitions/ and Currency
Net Revenue Currency (1) Divestitures (2) Effect (3)
----------- ------------ ---------------- -------------
CAG (4.2%) (2.8%) 5.1%
Water (5.8%) - 1.3%
PAS (7.7%) - (3.2%)
Other (1.4%) - 8.6%
Total (4.5%) (2.3%) 4.3%
Nine Months Ended
-----------------
Sept. 30, Sept. 30, Dollar Percentage
Net Revenue 2009 2008 Change Change
----------- ---- ---- ------ ------
Instruments and
consumables $239,889 $236,974 $2,915 1.2%
Rapid assay
products 116,997 116,628 369 0.3%
Laboratory and
consulting
services 222,987 222,984 3 -
Practice
information
management
systems and
digital
radiography 45,515 42,373 3,142 7.4%
Pharmaceutical
products 54 18,575 (18,521) (99.7%)
-------- -------- --------
Net CAG
revenue $625,442 $637,534 $(12,092) (1.9%)
======== ======== ========
Nine Months Ended
-----------------
Percentage
Change Net of
Percentage Acquisitions/
Percentage Change from Divestitures
Change from Acquisitions/ and Currency
Net Revenue Currency (1) Divestitures (2) Effect (3)
----------- ------------ ---------------- -------------
Instruments and
consumables (4.9%) - 6.1%
Rapid assay
products (1.3%) - 1.6%
Laboratory and
consulting
services (5.6%) 0.3% 5.3%
Practice
information
management
systems and
digital
radiography (2.0%) 0.1% 9.3%
Pharmaceutical
products - (100.0%) 0.3%
Net CAG revenue (4.2%) (2.8%) 5.1%
(1) Represents the percentage change in revenue attributed to the effect
of changes in currency rates from the nine months ended September 30, 2009
to the nine months ended September 30, 2008.
(2) Represents the percentage change in revenue during the nine months
ended September 30, 2009 compared to the nine months ended September 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 Laboratories, Inc. and Subsidiaries
Consolidated Balance Sheet
Amounts in thousands (Unaudited)
Sept. 30, Dec. 31,
2009 2008
------------------------------------------------------
Assets: Current Assets:
Cash and cash equivalents $106,728 $78,868
Accounts receivable, net 115,141 111,498
Inventories 124,488 115,926
Other current assets 39,370 49,598
--------------------------------------------------
Total current assets 385,727 355,890
--------------------------------------------------
Property and equipment,
at cost 346,170 320,198
Less: accumulated
depreciation 149,628 130,552
--------------------------------------------------
Property and equipment, net 196,542 189,646
--------------------------------------------------
Other long-term assets, net 232,620 219,901
--------------------------------------------------
Total assets $814,889 $765,437
--------------------------------------------------
Liabilities and
Stockholders'
Equity: Current Liabilities:
Accounts payable $21,465 $28,006
Accrued expenses 102,706 104,616
Debt 63,398 151,385
Deferred revenue 10,994 11,285
--------------------------------------------------
Total current liabilities 198,563 295,292
--------------------------------------------------
Long-term debt, net of
current portion 4,489 5,094
Line of credit, net of
current portion 80,000 -
Other long-term
liabilities 32,203 26,857
--------------------------------------------------
Total long-term
liabilities 116,692 31,951
--------------------------------------------------
Total stockholders' equity 499,634 438,194
--------------------------------------------------
Total liabilities and
stockholders' equity $814,889 $765,437
--------------------------------------------------
IDEXX Laboratories, Inc. and Subsidiaries
Key Balance Sheet Information (Unaudited)
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2009 2009 2009 2008 2008
-------------------------------------------------------------
Key Days sales
Balance outstanding 41.2 40.2 43.8 41.9 42.3
Sheet Inventory
Information: turns 1.8 1.8 1.6 2.0 1.9
IDEXX Laboratories, Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Amounts in thousands (Unaudited)
Nine Months Ended
---------------------
Sept. 30, Sept. 30,
2009 2008
--------------------------------------------------------------
Operating: Cash Flows from Operating Activities:
Net income $91,274 $92,614
Non-cash charges 49,439 38,843
Changes in current assets and
liabilities, net of acquisitions (25,210) (21,643)
--------------------------------------------------------------
Net cash provided by
operating activities $115,503 $109,814
--------------------------------------------------------------
Investing: Cash Flows from Investing Activities:
Purchase of property and equipment (35,615) (64,982)
Proceeds from disposition of
pharmaceutical product lines 1,377 -
Proceeds from sale of
property and equipment 2,056 -
Acquisitions of intangible assets
and businesses, net of cash acquired (6,680) (8,649)
Acquisitions of equipment
leased to customers (747) (560)
--------------------------------------------------------------
Net cash used by investing activities $(39,609) $(74,191)
--------------------------------------------------------------
Financing: Cash Flows from Financing Activities:
Borrowings (payments) on revolving
credit facilities, net (8,798) 92,099
Payment of other notes payable (731) (542)
Purchase of treasury stock (57,966) (122,429)
Proceeds from the exercise of
stock options and employee
stock purchase plans 13,104 14,856
Tax benefit from exercise of
stock options and vesting of
restricted stock units 3,851 5,906
--------------------------------------------------------------
Net cash used by financing activities $(50,540) $(10,110)
--------------------------------------------------------------
Net effect of changes in
exchange rates on cash 2,506 (1,287)
--------------------------------------------------------------
Net increase in cash and
cash equivalents 27,860 24,226
--------------------------------------------------------------
Cash and cash equivalents,
beginning of period 78,868 60,360
--------------------------------------------------------------
Cash and cash equivalents,
end of period $106,728 $84,586
--------------------------------------------------------------
IDEXX Laboratories, Inc. and Subsidiaries
Free Cash Flow
Amounts in thousands (Unaudited)
Nine Months Ended
--------------------
Sept. 30, Sept. 30,
2009 2008
---------------------------------------------------------------
Free Cash
Flow: Net cash provided by operating
activities $115,503 $109,814
Financing cash flows attributable
to tax benefits from exercise
of stock options and vesting of
restricted stock units 3,851 5,906
Purchase of property and
equipment (35,615) (64,982)
Acquisition of equipment
leased to customers (747) (560)
----------------------------------------------------------------
Free cash flow $82,992 $50,178
----------------------------------------------------------------
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 Laboratories, Inc. and Subsidiaries
Common Stock Repurchases
Amounts in thousands except per share data (Unaudited)
Three Months Ended Nine Months Ended
-------------------- --------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
-------------------------------------------------------------------------
Share repurchases
during the period 372 391 1,433 2,343
Average price paid per share $48.99 $51.43 $40.45 $52.26
Shares remaining under repurchase authorization
as of September 30, 2009: 2,780
Contact: Merilee Raines, Chief Financial Officer, 1-207-556-8155
DATASOURCE: IDEXX Laboratories, Inc.
CONTACT: Merilee Raines, Chief Financial Officer, IDEXX Laboratories,
Inc., +1-207-556-8155
Web Site: http://www.idexx.com/