WESTBROOK, Maine, April 28, 2017 /PRNewswire/ -- IDEXX
Laboratories, Inc. (NASDAQ: IDXX), a global leader in veterinary
diagnostics, veterinary practice software and water microbiology
testing, reports revenues for the first quarter of 2017 of
$462 million, an increase of 11%
compared to the prior year period on both a reported and an organic
basis. First quarter results were driven by robust global gains in
Companion Animal Group ("CAG") Diagnostics recurring revenue,
including double-digit organic revenue gains across consumable,
reference lab and rapid assay revenues, as well as continued
expansion of IDEXX's premium instrument installed base.
Earnings per diluted share ("EPS") was $0.77 for the first quarter, representing 51%
growth year-over-year on a reported basis and 53% on a constant
currency basis. These results include a $0.12 EPS benefit in the quarter from the
adoption of the new accounting guidance related to share-based
compensation (ASU 2016-09).
"Our strong business momentum continued in the first quarter,
driven by strength in our companion animal business, reinforcing
our strategic focus and sustained 10%+ annual revenue growth
potential," said Jonathan Ayers, the
Company's Chairman and Chief Executive Officer.
"The companion animal market fundamentals remain solid with
tremendous global runway for growth. Our unique innovation-based,
multi-modality global strategy, enabled by enhanced commercial
capability, accelerated recurring CAG Diagnostics growth and drove
an 18% year-over-year expansion of our global premium instrument
base. In particular, our highly successful fully-direct commercial
model in the U.S. has yielded high returns, while deepening our
relationships with our customers. We're investing to expand our
U.S. commercial organization over the next few months to further
support our customers to advance the standard of care through usage
of IDEXX's diagnostic solutions."
"Building from this robust start to the year, we're raising our
2017 guidance for revenue growth and constant currency operating
margin expansion, while investing in enhanced capability, as we
continue to deliver on our long-term goals for shareholder value
creation."
First Quarter Performance Highlights
First quarter revenue increased 11% to $462 million. EPS for the quarter was
$0.77, an increase of 51% compared to
the first quarter 2016 on a reported basis, 53% on a constant
currency basis and 29% when calculated to exclude the $0.12 of additional EPS attributable to the
adoption of the new accounting guidance related to share-based
compensation.
Companion Animal Group
CAG generated 13% revenue growth for the quarter, supported by
CAG Diagnostics recurring organic revenue growth of 14%, as well as
CAG instrument revenue growth of 16% on a reported basis, and 17%
on an organic basis. High CAG Diagnostics recurring revenue growth
was driven by double-digit revenue gains across major modalities,
reflecting benefits from strong volume growth and solid net price
realization.
- IDEXX VetLab® consumables reported revenue
grew 14% and organic revenue grew 15%, propelled by an expanding
premium instrument base in U.S. and international markets,
including growth in competitive instrument placements, increasing
utilization, and continued strong customer retention. IDEXX VetLab
premium diagnostic instrument placements grew 18% to a first
quarter record number of 2,340, including 1,131
Catalyst® instruments, 822 premium hematology
instruments and 387 IDEXX SediVue® Dx analyzers.
- Reference laboratory diagnostic and consulting services
revenue grew 13%, driven by increased testing volume in the U.S.
and international regions, continued robust customer retention, and
demand for IDEXX's innovative test menu, including IDEXX
SDMA®, our unique kidney function test.
- Rapid assay products generated strong growth of 11%,
driven by continued strong volume gains in SNAP 4Dx®
Plus Test and specialty SNAP product lines, as well as solid net
price improvement reflecting efficiency and timing of promotional
programs.
Livestock, Poultry and Dairy ("LPD")
Revenue declined 5% for the quarter primarily driven by declines
in herd health screening of Australia and New
Zealand dairy cattle for export to China and pressure on the Dairy business,
partially offset by growth in emerging market swine and poultry
testing, and in bovine pregnancy testing.
Water
Reported revenue growth was 6% and organic revenue growth was 7%
for the quarter, compared to 11% growth in the first quarter of
2016, supported by solid net price realization and volume growth in
the core Colilert® product line.
Gross Profit and Operating Profit
Gross profit was $258 million for
the quarter, an increase of 13% over the prior year period, and
gross margin increased to 55.9%, up 140 basis points on a reported
basis and 150 basis points on a constant currency basis. This
improvement in gross margin reflects the net benefits of price
increases and product cost leverage from strong consumable and
reference lab volume growth.
Operating profit was $92 million,
up 25% on a reported basis and 28% on a constant currency basis,
with results driven by strong profit gains in our CAG business.
Operating margins were 20.0% in the quarter, 230 basis points
higher than the prior year period operating margin on a reported
basis and 260 basis points higher on a constant currency basis,
reflecting benefits from strong gross profit gains and operating
expense leverage.
2017 Financial Outlook
The Company is raising its 2017 revenue outlook by $15 million to $1,925 million - $1,950 million, reflecting an expectation for
organic revenue growth of 9.5% - 11% and approximately a $5
million revenue benefit from updated assumptions related to foreign
exchange rates, as noted below. At these rates compared to rates in
effect in 2016, we estimate that the stronger U.S. dollar will
adversely impact 2017 reported revenue growth by approximately
1.0%, EPS growth by 2.0%, and reduce EPS by an estimated
$0.05 per share, including the net
impact from projected hedge gains of approximately $6 million in 2017 compared to $4 million in 2016.
The Company is also increasing its 2017 EPS outlook by
$0.10 to $2.95 - $3.11 per
share, reflecting an additional $0.10
benefit from the adoption of the new share-based compensation
accounting guidance. A projected $0.03 incremental operating profit flow-through
from its higher revenue outlook, net of incremental planned
investments in the U.S. CAG business, and a $0.02 benefit due to reduced headwind from
updated foreign exchange rate assumptions, will be offset by a
negative $0.05 per share impact from
a higher tax rate due to a change in geographic mix of
profitability.
While making this incremental $10
million investment in U.S. commercial capability, lab
capacity and research and development priorities to reinforce
long-term U.S. growth, the Company is improving its outlook to
approximately 75 – 100 basis points of full-year operating margin
improvement on a constant currency basis. With updated assumptions
for foreign exchange, this equates to a projected annual
improvement of 60 – 85 basis points on a reported basis.
The updated outlook represents EPS growth of 21% - 27% on a
reported basis and 23% - 29% EPS constant currency growth,
including the impact of the adoption of the new accounting guidance
related to share-based compensation, which we estimate will result
in $0.22 - $0.26 of EPS benefit in
2017 (an increase of $0.10 compared
to earlier estimates). While these impacts may vary significantly
by quarter based on the timing of actual settlement activity, an
estimated $0.10 of the projected
full-year 2017 benefit reflects higher than normal stock option
exercising in 2017, a level of activity that is not expected to
continue in future periods. An estimate of $0.12 - $0.16 of annual EPS benefit is a
reasonable expectation for future years, based on current
settlement trends and stock price levels.
The guidance for 2017 reflects the assumptions that the value of
the U.S. dollar relative to other currencies will remain at the
following rates: euro at $1.06,
British pound at $1.24, Canadian
dollar at $0.74, Australian dollar at
$0.75, Japanese yen at ¥111, Chinese
renminbi at RMB 6.89 and Brazilian
real at R$3.20 to the U.S. dollar for
the remainder of 2017.
The Company provides the following updated guidance for
2017:
Amounts in
millions except per share data and percentages
|
|
|
Guidance
Range
|
Growth
Definition
|
Year-over-year
Growth
|
|
|
|
|
Revenue
|
$1,925 -
$1,950
|
Reported
|
8.5% - 10%
|
|
|
Organic Revenue
Growth
|
9.5% - 11%
|
|
|
|
|
EPS
|
$2.95 -
$3.11
|
Reported
|
21% - 27%
|
|
|
Constant
Currency
|
23% - 29%
|
|
|
|
|
Operating Cash
Flow
|
|
~130% of net
income
|
|
|
|
|
|
Free Cash
Flow
|
|
~95% of net
income
|
|
|
|
|
|
Capital
Expenditures
|
|
~$90
million
|
|
We expect an effective tax rate of 25.5% - 26.5%, after a
projected reduction of 550 – 650 basis points related to the
adoption of the new accounting guidance related to share-based
compensation. We are projecting a reduction in weighted average
shares outstanding of approximately 1.0% - 1.5%, net of 0.5%
related to the adoption of the new accounting guidance related to
share-based compensation, and interest expense, net of interest
income, of approximately $32 million - $33
million reflecting current and projected borrowings.
For a quick-reference snapshot of the Company's quarterly
performance, please visit www.idexx.com/investors.
Conference Call and Webcast Information
IDEXX Laboratories, Inc. will be hosting a conference call today
at 8:30 a.m. (Eastern) to discuss its
first quarter results and management's outlook. To participate in
the conference call, please dial 1-800-230-1085 or 1-612-288-0337
and reference confirmation code 421808. Replay of the conference
call will be available through Friday, May
5, 2017 by dialing 1-800-475-6701 or 1-320-365-3844 and
referencing replay code 421808.
Individuals can access a live webcast of the conference call
through a link on the IDEXX website, www.idexx.com/investors. An
archived edition of the webcast will be available after
1:00 p.m. (Eastern) on that day via
the same link and will remain available for one year.
2017 Annual Meeting of Stockholders
IDEXX Laboratories, Inc. announced today that it will hold its
2017 Annual Meeting of Stockholders on Wednesday, May 3, 2017 at 1:00 p.m. (Eastern). The 2017 Annual Meeting will
be a virtual meeting via a live webcast at
www.virtualshareholdermeeting.com/IDXX2017.
Stockholders as of the close of business on March 10, 2017 are entitled to attend the 2017
Annual Meeting, vote their shares electronically and submit
questions during the live webcast. An archived replay will also be
available at the same link within 24 hours after the conclusion of
the 2017 Annual Meeting and will remain available for one year.
Further information on the 2017 Annual Meeting can be found in the
Company's proxy materials.
About IDEXX Laboratories, Inc.
IDEXX Laboratories, Inc. is a member of the S&P
500® Index and 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 build
more economically successful practices. IDEXX is also a worldwide
leader in providing diagnostic tests and information for livestock
and poultry and tests for the quality and safety of water and milk.
Headquartered in Maine, IDEXX
Laboratories employs more than 7,000 people and offers products to
customers in over 175 countries. For more information about IDEXX,
visit: www.idexx.com.
Statement Regarding Non-GAAP Financial Measures
The following provides information regarding certain measures
used in this earnings release and/or the accompanying earnings
conference call that are not required by, or presented in
accordance with, generally accepted accounting principles in
the United States of America
("GAAP"), otherwise referred to as non-GAAP financial measures. To
supplement the Company's consolidated results presented in
accordance with GAAP, the Company has disclosed non-GAAP financial
measures that exclude or adjust certain items. Management believes
these non-GAAP financial measures provide useful supplemental
information for its and investors' evaluation of the Company's
business performance and liquidity and are useful for
period-over-period comparisons of the performance of the Company's
business and its liquidity and to the performance and liquidity of
our peers. While management believes that these non-GAAP financial
measures are useful in evaluating the Company's business, this
information should be considered as supplemental in nature and
should not be considered in isolation or as a substitute for the
related financial information prepared in accordance with GAAP. In
addition, these non-GAAP financial measures may not be the same as
similarly titled measures reported by other companies.
The following section defines terms and conventions used in this
earnings release and/or the accompanying earnings conference call,
including non-GAAP financial measures, and includes applicable
information regarding reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures,
as appropriate:
Accounting Standards Update 2016-09 (ASU 2016-09): Effective
January 1, 2017, we adopted the FASB
issued amendments which simplify several aspects of the accounting
for share-based payment transactions, including income tax
consequences, recognition of stock compensation award forfeitures,
classification of awards as either equity or liabilities, the
calculation of diluted shares outstanding and classification on the
statement of cash flows.
Growth and organic growth - All references to growth and organic
growth refer to growth compared to the equivalent prior year period
unless specifically noted.
Organic revenue growth - Organic revenue growth is a non-GAAP
financial measure that excludes the impact of changes in foreign
currency exchange rates and revenue from business acquisitions. See
the supplementary analysis of results below for a reconciliation of
reported revenue growth to organic revenue growth for the three
months ended March 31, 2017.
See the constant currency note below for impacts of constant
currency to the projected 2017 organic revenue growth for the
Company. For the calculation of projected 2017 organic
revenue growth, the impacts of revenue from acquisitions is
immaterial.
Constant currency - Constant currency references are non-GAAP
financial measures which exclude the impact of changes in foreign
currency exchange rates and are consistent with how management
evaluates our performance and comparisons with prior and future
periods. We estimated the net impacts of currency on our revenue,
gross profit, operating profit, and EPS results by restating
results to the average exchange rates or exchange rate assumptions
for the comparative period, which includes adjusting for the
estimated impacts of foreign currency hedging transactions and
certain impacts on our effective tax rates. These estimated
currency changes reduced first quarter 2017 revenue growth by 1%,
gross profit growth by 1%, gross profit margin growth by 10 basis
points, operating profit growth by 3%, operating profit margin
growth by 30 basis points, and EPS growth by 2%; reduced projected
2017 revenue growth by approximately 1%, projected operating profit
margin growth by 15 basis points, and projected 2017 constant
currency EPS growth by approximately 2%. Constant currency revenue
growth represents the percentage change in revenue during the
applicable period, as compared to the prior year period, excluding
the impact of changes in foreign currency exchange rates. See the
supplementary analysis of results below for revenue percentage
change from currency for the three months ended March 31, 2017.
Free cash flow - Free cash flow is a non-GAAP financial measure
and means, with respect to a measurement period, the cash generated
from operations during that period, including tax benefits
attributable to share-based compensation, reduced by the Company's
investments in property and equipment. Management believes
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 property and equipment
that are required to operate the business. See the supplementary
analysis of results below for our calculation of free cash flow for
the three months ended March 31, 2017
and 2016. Since adoption of ASU 2016-09 in 2017, the tax
benefit from share-based compensation is included in cash generated
from operations and will no longer be an adjustment in our free
cash flow calculation. To estimate projected 2017 free cash
flow, we have deducted projected purchases of property and
equipment (also referred to as capital expenditures) of
$90 million.
Note Regarding Forward-Looking
Statements
This earnings 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 are included above under "2017 Financial
Outlook" and elsewhere and can be identified by the use of words
such as "expects," "may," "anticipates," "intends," "would,"
"will," "plans," "believes," "estimates," "projected", "should,"
and similar words and expressions. Our forward-looking statements
include statements relating to our revenue growth and EPS outlooks;
operating and free cash flow forecast; projected impact of foreign
currency exchange rates; and projected operating margins and
expenses, capital expenditures, gains from foreign currency hedging
transactions, tax benefits from share-based compensation
arrangements, effective tax rates, weighted average shares
outstanding and interest expense. These statements are based on
management's expectation of future events as of the date of this
earnings 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 successfully execute its strategy, including
supporting its all-direct sales strategy in the U.S.; the Company's
ability to develop, manufacture, introduce and market new products
and enhancements to existing products; the Company's ability
to achieve cost improvements in its worldwide network of
laboratories and in the manufacture and service of in-clinic
instruments;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 effectiveness of
the Company's sales and marketing activities; the Company's ability
to manufacture complex biologic products; the impact of
distributor purchasing decisions on sales of the Company's products
that are sold through distribution; the Company's ability to
manage the risks associated with the use of distributors to sell
the Company's products; the impact of increased competition from
existing and new technologies and technological advances by our
competitors; the promotion and sale of our competitors'
products by our former U.S. distribution partners; the effect of
government regulation on the Company's business, including
government decisions about whether and when to approve the
Company's products, decisions regarding labeling, manufacturing and
marketing products and regulations impacting the use of certain
substances currently used in our products or processes; the impact
of consolidation and reference laboratory vertical integration
among our customers, including veterinary hospital consolidation,
and the prevalence of buying consortiums on the markets for the
Company's 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; changes in
testing patterns or practices in veterinary medicine that affect
the rate of use of the Company's products and services by
veterinarians; a failure or perceived failure to comply with
regulations and our policies regarding the privacy and protection
of user data; the effect of any strengthening of the rate of
exchange for the U.S. dollar; the impact of a weak economy on
demand for the Company's products and services or increased
customer credit risk; the effects of operations outside the U.S.,
including from currency fluctuations, different regulatory,
political and economic conditions, and different market conditions
and local business and cultural factors; the impact of the
Company's limited experience and small scale in the human
point-of-care market; the effects of interruptions to the Company's
operations due to natural or man-made disasters, system failures or
disruptions or security breaches; the impact of disruptions,
attacks or breaches of information systems, including to our
customers' information systems via our products and services that
connect to and are part of the "Internet of Things"; the effect of
any adverse changes in the financial markets on the value of the
Company's investment portfolio; the effect on the Company's stock
price if quarterly or annual operating results do not meet
expectations of market analysts or investors in future periods;
potential exposures related to our worldwide provision for income
taxes and the potential loss of tax incentives; and the Company's
ability to obtain financing on favorable terms. 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, 2016 and the
Company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 2017, in the sections
captioned "Risk Factors," as well as the Company's other periodic
reports filed or to be filed with the Securities and Exchange
Commission.
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Condensed
Consolidated Statement of Operations
|
|
|
|
|
|
|
Amounts in
thousands except per share data (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
March
31,
|
|
|
|
|
|
|
2017
|
2016
|
Revenue:
|
Revenue
|
|
|
|
|
$
462,021
|
$
417,550
|
Expenses
and
|
|
|
|
|
|
|
|
Income:
|
Cost of
revenue
|
|
|
|
|
203,830
|
190,013
|
|
Gross
profit
|
|
|
|
|
258,191
|
227,537
|
|
Sales and
marketing
|
|
|
|
|
87,244
|
79,829
|
|
General and
administrative
|
|
|
|
|
52,914
|
49,295
|
|
Research and
development
|
|
|
|
|
25,790
|
24,620
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
92,243
|
73,793
|
|
Interest expense,
net
|
|
|
|
|
(7,506)
|
(7,484)
|
|
Income before
provision for income taxes
|
|
|
|
|
84,737
|
66,309
|
|
Provision for income
taxes
|
|
|
|
|
15,679
|
20,284
|
Net
Income:
|
Net income
|
|
|
|
|
69,058
|
46,025
|
|
Less: Noncontrolling
interest in subsidiary's
|
|
|
|
|
|
|
|
earnings
|
|
|
|
|
39
|
6
|
|
Net income
attributable to stockholders
|
|
|
|
$
69,019
|
$
46,019
|
|
Earnings per share:
Basic
|
|
|
|
|
$
0.78
|
$
0.51
|
|
Earnings per share:
Diluted
|
|
|
|
|
$
0.77
|
$
0.51
|
|
Shares outstanding:
Basic
|
|
|
|
|
88,117
|
89,924
|
|
Shares outstanding:
Diluted
|
|
|
|
|
89,994
|
90,838
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Selected Operating
Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
March
31,
|
|
|
|
|
|
|
2017
|
2016
|
Operating
|
Gross
profit
|
|
|
|
|
55.9%
|
54.5%
|
Ratios (as
a
|
Sales, marketing,
general and
|
|
|
|
|
|
|
percentage
of
|
administrative
expense
|
|
|
|
|
30.3%
|
30.9%
|
revenue):
|
Research and
development expense
|
|
|
|
|
5.6%
|
5.9%
|
|
Income from
operations1
|
|
|
|
|
20.0%
|
17.7%
|
|
1Amounts presented may not recalculate
due to rounding.
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Segment
Information
|
|
|
|
|
|
|
Amounts in
thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
March
31,
|
Percent
of
|
|
March
31,
|
Percent
of
|
|
|
|
2017
|
Revenue
|
|
2016
|
Revenue
|
Revenue:
|
CAG
|
|
$
403,227
|
|
|
$
357,639
|
|
|
Water
|
|
25,077
|
|
|
23,552
|
|
|
LPD
|
|
29,317
|
|
|
30,856
|
|
|
Other
|
|
4,400
|
|
|
5,503
|
|
|
Total
|
|
$
462,021
|
|
|
$
417,550
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
CAG
|
|
$
221,070
|
54.8%
|
|
$
190,792
|
53.3%
|
|
Water
|
|
17,475
|
69.7%
|
|
16,106
|
68.4%
|
|
LPD
|
|
16,845
|
57.5%
|
|
17,977
|
58.3%
|
|
Other
|
|
2,111
|
48.0%
|
|
2,923
|
53.1%
|
|
Unallocated
Amounts
|
|
690
|
N/A
|
|
(261)
|
N/A
|
|
Total
|
|
$
258,191
|
55.9%
|
|
$
227,537
|
54.5%
|
|
|
|
|
|
|
|
|
Income
from
|
|
|
|
|
|
|
|
Operations:
|
CAG
|
|
$
79,855
|
19.8%
|
|
$
61,378
|
17.2%
|
|
Water
|
|
10,263
|
40.9%
|
|
9,679
|
41.1%
|
|
LPD
|
|
3,802
|
13.0%
|
|
4,570
|
14.8%
|
|
Other
|
|
393
|
8.9%
|
|
(837)
|
(15.2%)
|
|
Unallocated
Amounts
|
|
(2,070)
|
N/A
|
|
(997)
|
N/A
|
|
Total
|
|
$
92,243
|
20.0%
|
|
$
73,793
|
17.7%
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Revenues and
Revenue Growth Analysis by Product and Service Categories and by
Domestic and International Markets
|
Amounts in
thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
Net
Revenue
|
March
31, 2017
|
|
|
March 31,
2016
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency1
|
|
Percentage
Change
from
Acquisitions2
|
|
Organic
Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG
|
$
|
403,227
|
|
$
|
357,639
|
|
$
|
45,588
|
|
12.7%
|
|
(0.8%)
|
|
0.1%
|
|
13.4%
|
United
States
|
|
270,488
|
|
|
241,810
|
|
|
28,678
|
|
11.9%
|
|
-
|
|
0.1%
|
|
11.8%
|
International
|
|
132,739
|
|
|
115,829
|
|
|
16,910
|
|
14.6%
|
|
(2.5%)
|
|
0.4%
|
|
16.7%
|
Water
|
|
25,077
|
|
|
23,552
|
|
|
1,525
|
|
6.5%
|
|
(0.8%)
|
|
-
|
|
7.3%
|
United
States
|
|
13,019
|
|
|
12,323
|
|
|
696
|
|
5.6%
|
|
-
|
|
-
|
|
5.6%
|
International
|
|
12,058
|
|
|
11,229
|
|
|
829
|
|
7.4%
|
|
(1.8%)
|
|
-
|
|
9.2%
|
LPD
|
|
29,317
|
|
|
30,856
|
|
|
(1,539)
|
|
(5.0%)
|
|
(0.4%)
|
|
-
|
|
(4.6%)
|
United
States
|
|
3,484
|
|
|
3,169
|
|
|
315
|
|
9.9%
|
|
-
|
|
-
|
|
9.9%
|
International
|
|
25,833
|
|
|
27,687
|
|
|
(1,854)
|
|
(6.7%)
|
|
(0.4%)
|
|
-
|
|
(6.3%)
|
Other
|
|
4,400
|
|
|
5,503
|
|
|
(1,103)
|
|
(20.0%)
|
|
(0.1%)
|
|
-
|
|
(19.9%)
|
Total
Company
|
$
|
462,021
|
|
$
|
417,550
|
|
$
|
44,471
|
|
10.7%
|
|
(0.7%)
|
|
0.2%
|
|
11.2%
|
United
States
|
$
|
288,613
|
|
$
|
258,939
|
|
$
|
29,674
|
|
11.5%
|
|
-
|
|
0.1%
|
|
11.4%
|
International
|
$
|
173,408
|
|
$
|
158,611
|
|
$
|
14,797
|
|
9.3%
|
|
(2.0%)
|
|
0.3%
|
|
11.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
Net CAG
Revenue
|
March 31,
2017
|
|
|
March 31,
2016
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency1
|
|
Percentage
Change
from
Acquisitions2
|
|
Organic
Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG Diagnostics
recurring revenue:
|
$
|
346,680
|
|
$
|
305,841
|
|
$
|
40,839
|
|
13.4%
|
|
(0.8%)
|
|
0.2%
|
|
14.0%
|
IDEXX VetLab
consumables
|
|
123,553
|
|
|
107,969
|
|
|
15,584
|
|
14.4%
|
|
(0.9%)
|
|
-
|
|
15.3%
|
Rapid assay
products
|
|
47,895
|
|
|
43,086
|
|
|
4,809
|
|
11.2%
|
|
(0.2%)
|
|
-
|
|
11.4%
|
Reference
laboratory diagnostic and consulting services
|
|
159,069
|
|
|
140,708
|
|
|
18,361
|
|
13.0%
|
|
(0.9%)
|
|
0.4%
|
|
13.5%
|
CAG Diagnostics
services and
accessories
|
|
16,163
|
|
|
14,078
|
|
|
2,085
|
|
14.8%
|
|
(1.0%)
|
|
-
|
|
15.8%
|
CAG Diagnostics
capital – instruments
|
|
26,183
|
|
|
22,643
|
|
|
3,540
|
|
15.6%
|
|
(1.8%)
|
|
-
|
|
17.4%
|
Veterinary software,
services and
diagnostic imaging systems
|
|
30,364
|
|
|
29,155
|
|
|
1,209
|
|
4.1%
|
|
0.1%
|
|
-
|
|
4.0%
|
Net CAG
revenue
|
$
|
403,227
|
|
$
|
357,639
|
|
$
|
45,588
|
|
12.7%
|
|
(0.8%)
|
|
0.1%
|
|
13.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1The
percentage change from currency is a non-GAAP financial measure.
This measure represents the percentage change in revenue resulting
from the difference between the average exchange rates during the
three months ended March 31, 2017 and the same period of the prior
year applied to foreign currency-denominated revenues for the three
months ended March 31, 2016.
|
|
2The
percentage change from acquisitions is a non-GAAP financial
measure. This measure represents the percentage change in revenue
during the three months ended March 31, 2017 compared to the three
months ended March 31, 2016 attributed to acquisitions subsequent
to December 31, 2015.
|
|
3Organic revenue growth is a
non-GAAP financial measure and represents the percentage change in
revenue during the three months ended March 31, 2017 compared to
the three months ended March 31, 2016 net of acquisitions and the
effect of changes in foreign currency exchange rates.
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheet
|
|
|
|
|
|
|
Amounts in
thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
December
31,
|
|
|
|
|
|
|
2017
|
2016
|
Assets:
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
160,408
|
$
154,901
|
|
Marketable
securities
|
|
|
|
|
239,933
|
236,949
|
|
Accounts receivable,
net
|
|
|
|
|
225,353
|
204,494
|
|
Inventories
|
|
|
|
|
172,183
|
158,034
|
|
Other current
assets
|
|
|
|
|
80,711
|
91,206
|
|
Total current
assets
|
|
|
|
|
878,588
|
845,584
|
|
Property and
equipment, net
|
|
|
|
|
361,233
|
357,422
|
|
Other long-term
assets, net
|
|
|
|
|
332,270
|
327,698
|
|
Total
assets
|
|
|
|
|
$
1,572,091
|
$
1,530,704
|
Liabilities
and
|
|
|
|
|
|
|
|
Stockholders'
|
|
|
|
|
|
|
|
Equity
(Deficit):
|
Current
Liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
|
$
62,249
|
$
60,057
|
|
Accrued
liabilities
|
|
|
|
|
174,763
|
236,131
|
|
Line of
credit
|
|
|
|
|
671,000
|
611,000
|
|
Deferred
revenue
|
|
|
|
|
28,065
|
27,380
|
|
Total current
liabilities
|
|
|
|
|
936,077
|
934,568
|
|
Long-term
debt
|
|
|
|
|
594,868
|
593,110
|
|
Other long-term
liabilities, net
|
|
|
|
|
115,058
|
111,239
|
|
Total long-term
liabilities
|
|
|
|
|
709,926
|
704,349
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity (deficit)
|
|
|
(74,090)
|
(108,352)
|
|
Noncontrolling
interest
|
|
|
|
178
|
139
|
|
Total
stockholders' equity (deficit)
|
|
|
|
(73,912)
|
(108,213)
|
|
Total liabilities
and stockholders' equity (deficit)
|
|
|
|
$
1,572,091
|
$
1,530,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Selected Balance
Sheet Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
September
30,
|
|
June
30,
|
March
31,
|
|
|
2017
|
|
2016
|
2016
|
|
2016
|
2016
|
Selected
|
|
|
|
|
|
|
|
|
Balance
Sheet
|
Days sales
outstanding1
|
42.4
|
|
42.1
|
42.4
|
|
41.5
|
43.7
|
Information:
|
Inventory
turns2
|
1.9
|
|
2.0
|
1.8
|
|
1.7
|
1.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Days
sales outstanding represents the average of the accounts receivable
balances at the beginning and end of each quarter divided by
revenue for that quarter, the result of which is then multiplied by
91.25 days.
|
|
2Inventory
turns represent inventory-related cost of product sales for the
twelve months preceding each quarter-end divided by the inventory
balance at the end of the quarter.
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Condensed
Consolidated Statement of Cash Flows
|
|
|
|
|
|
|
Amounts in
thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
March
31,
|
|
|
|
|
|
|
2017
|
2016
|
Operating:
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
69,058
|
$
46,025
|
|
Non-cash
charges
|
|
|
|
|
28,763
|
27,684
|
|
Changes in assets and
liabilities
|
|
|
(66,547)
|
(44,656)
|
|
Tax benefit from
share-based compensation arrangements
|
|
-
|
(2,063)
|
|
Net cash provided by
operating activities
|
|
|
|
|
31,274
|
26,990
|
Investing:
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
|
|
(23,647)
|
(21,906)
|
|
Purchase of
marketable securities
|
|
|
(90,492)
|
(72,079)
|
|
Proceeds from the
sale and maturities of marketable securities
|
|
|
|
87,476
|
70,186
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
|
(2,349)
|
-
|
|
Net cash used by
investing activities
|
|
|
|
(29,012)
|
(23,799)
|
Financing:
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Borrowings on
revolving credit facilities, net
|
|
|
60,000
|
49,000
|
|
Repurchases of common
stock
|
|
|
|
|
(63,910)
|
(53,480)
|
|
Debt issue
costs
|
|
|
|
|
-
|
(57)
|
|
Proceeds from the
exercise of stock options and employee stock purchase
plans
|
|
12,256
|
5,760
|
|
Shares withheld for
statutory tax withholding on restricted stock
|
|
(7,303)
|
(3,764)
|
|
Payment of
acquisition-related contingent consideration
|
|
-
|
(2,084)
|
|
Tax benefit from
share-based compensation arrangements
|
|
-
|
2,063
|
|
Net cash provided
(used) by financing activities
|
|
|
|
1,313
|
(2,562)
|
|
Net effect of changes
in exchange rates on cash
|
|
|
|
|
1,932
|
3,330
|
|
Net increase in cash
and cash equivalents
|
|
|
|
|
5,507
|
3,959
|
|
Cash and cash
equivalents, beginning of period
|
|
|
|
154,901
|
128,994
|
|
Cash and cash
equivalents, end of period
|
|
|
|
|
$
160,408
|
$
132,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Free Cash
Flow1
|
|
|
|
|
|
|
Amounts in
thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
March
31,
|
|
|
|
|
|
|
2017
|
2016
|
Free
Cash
|
|
|
|
|
|
|
|
Flow:
|
Net cash provided by
operating activities
|
|
|
|
|
$
31,274
|
$
26,990
|
|
Financing cash flows
attributable to tax benefits from share-based compensation
arrangements
|
|
-
|
2,063
|
|
Investing cash flows
attributable to purchases of property and equipment
|
|
(23,647)
|
(21,906)
|
|
Free cash
flow
|
|
|
|
|
$
7,627
|
$
7,147
|
|
|
|
|
|
|
|
|
|
1Free cash
flow is a non-GAAP financial measure and is calculated from cash
generated from operations, including tax benefits attributable to
share-based
compensation arrangements, reduced by the Company's investments in
property and equipment. Management believes 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 property and
equipment that are required to operate the business. Management
also believes this is a common financial measure useful to further
evaluate the results
of operations. Upon adopting ASU 2016-09 in 2017, the tax benefit
from share-based compensation is included in cash generated from
operations and is
no longer an adjustment in our free cash flow
calculation.
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
|
|
|
|
Common Stock
Repurchases
|
|
|
|
|
|
|
Amounts in
thousands except per share data (Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
March
31,
|
|
|
|
|
|
|
2017
|
2016
|
|
Shares repurchased in
the open market
|
|
|
|
|
390
|
708
|
|
Shares acquired
through employee surrender for statutory tax withholding
|
|
|
|
|
52
|
52
|
|
Total shares
repurchased
|
|
|
|
|
442
|
760
|
|
|
|
|
|
|
|
|
|
Cost of shares
repurchased in the open market
|
|
|
|
|
50,744
|
49,715
|
|
Cost of shares for
employee surrenders
|
|
|
|
|
7,303
|
3,529
|
|
Total cost of
shares
|
|
|
|
|
58,047
|
53,244
|
|
|
|
|
|
|
|
|
|
Average cost per
share – open market repurchases
|
|
|
|
|
$
130.12
|
$
70.21
|
|
Average cost per
share – employee surrenders
|
|
|
|
|
$
141.09
|
$
67.96
|
|
Average cost per
share – total
|
|
|
|
|
$
131.41
|
$
70.06
|
|
|
|
|
|
|
|
|
|
Shares remaining
under repurchase authorization as of March 31, 2017 totaled
3,345,529.
|
Contact: Kerry Bennett,
Investor Relations, 1-207-556-8155
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/idexx-laboratories-announces-first-quarter-results-300447741.html
SOURCE IDEXX Laboratories, Inc.