WESTBROOK, Maine, April 29, 2016 /PRNewswire/ -- IDEXX
Laboratories, Inc. (NASDAQ: IDXX) today reported revenues for the
first quarter of 2016 of $418
million, an increase of 9% compared to the prior year
period. Organic revenue growth for the quarter was 11%, supported
by strong growth in the Companion Animal Group ("CAG") and Water
segments.
Earnings per diluted share ("EPS") for the quarter was
$0.51, an increase of 4% compared to
the prior year period, while absorbing a negative $0.05 per share impact related to net changes in
foreign exchange, resulting in constant currency EPS growth of
14%. The federal research and development tax credit, which
benefited the current but not the prior year period, had a 2%
favorable impact to EPS growth.
"We were very pleased with the Company's performance in the
first quarter. The benefits of our go-direct commercial strategy
and innovation pipeline drove strong gains in our recurring
revenues. We also achieved continued outstanding results in placing
new instruments globally, supported by the expansion of Catalyst
One®. We achieved 714 Catalyst placements in
international markets and 443 in North
America, with 58% of North
America placements to new and competitive accounts. Our
powerful worldwide commercial model and new products such as IDEXX
SDMA™ and Catalyst One have put us in a very favorable position for
continued strong growth. Given our strong start and positive
trends, we are raising our 2016 guidance range for organic revenue
growth to 9% - 10%," said Jonathan
Ayers, the Company's Chairman and Chief Executive
Officer.
"We are pleased to announce that in mid-April, as planned, we
started shipping SediVue Dx™, our novel urine sediment analyzer for
use in-clinic. SediVue provides improved accuracy and streamlined
workflow benefits to veterinary clinics compared to the traditional
challenging manual process involving microscopic interpretation. In
concert with chemistry and hematology, urinalysis forms the
essential third pillar of the minimum diagnostic database to
support the assessment of a pet's health," continued Ayers.
First Quarter Financial Performance Highlights
First quarter revenue increased 9% to $418 million and organic revenue growth was
11%.
- Companion Animal Group organic revenue growth was 11% for the
first quarter, driven by 11% organic growth in CAG Diagnostics
recurring revenues, 16% organic revenue growth in CAG Diagnostics
instruments, and 14% organic revenue growth in customer information
management and diagnostic imaging systems. CAG Diagnostics
recurring revenue gains reflected 15% organic growth in reference
laboratory diagnostic and consulting services, driven by high teen
organic revenue growth in the US, and 12% organic revenue growth in
IDEXX VetLab® consumables. Rapid assay organic revenue
growth declined 1% primarily due to the quarterly timing of
promotional programs. CAG Diagnostics recurring revenue growth was
supported by an extra day in the quarter due to leap year and favorable comparative weather
conditions.
- Water's organic revenue growth was 11% in the first quarter,
driven by worldwide increases in core coliform and E.coli products,
as well as benefits from the launch of our new
Quanti-Tray® Sealer PLUS product, the extra leap year day, and favorable comparative weather
conditions.
- Livestock, Poultry and Dairy ("LPD") organic revenue increased
4% for the first quarter reflecting solid growth in new products
worldwide, strong growth in China
porcine and poultry products, and higher livestock services revenue
in Australia, partially offset by
lower Europe bovine revenue.
Gross profit increased 6% compared to the prior year period.
Gross margin decreased from 56.4% to 54.5%, reflecting the
unfavorable impact of foreign exchange rates (including the lapping
of prior year hedge gains), higher manufacturing costs, and mix
impacts from strong instrument sales, partially offset by benefits
from moderate price gains.
Operating margin was 17.7% in the first quarter, down from prior
year period operating margin of 19.0%, reflecting gross margin
changes. Operating expenses increased 8%, slightly below the rate
of revenue growth.
Outlook for 2016
The Company is increasing its 2016 revenue guidance range by
$40 million and its 2016 EPS guidance
range by $0.08 per share to reflect
its strong first quarter operating results, positive revenue growth
trends, and projected benefits from a moderated strengthening of
the US dollar relative to foreign currencies, partially offset by
an anticipated increase in the effective tax rate.
At the revised current foreign exchange rates assumptions below,
compared to assumptions used in our prior guidance for 2016
provided during our fourth quarter earnings call on January 29, 2016, the moderating of the US dollar
strength has the effect of increasing projected revenue by
approximately $27 million and EPS by
$0.05 per share, net of hedge
benefits. We estimate that with these revised foreign exchange
assumptions, the effect of the stronger US dollar compared to rates
in effect in 2015 will adversely impact 2016 reported revenue
growth by approximately 1%, EPS by an estimated $0.21 per share, and Adjusted EPS growth by
10%.
The Company provides the following updated guidance for
2016:
Amounts in
millions except per share data and percentages
|
|
Guidance
Range
|
Growth
Definition
|
Year-over-Year
Growth
|
Revenue
|
$1,730 -
$1,750
|
Organic Revenue
Growth
|
9% to 10%
|
|
|
Reported
|
8% to 9%
|
EPS
|
$2.18 -
$2.25
|
Adjusted
|
3% to 7%
|
|
|
Constant Currency
Adjusted
Reported
|
13% to 17%
6% to 10%
|
Free Cash
Flow 95%
- 100% of net income
|
Capital
Expenditures
$90 million
|
The guidance above assumes that the value of the US dollar
relative to other currencies will reflect the euro at $1.12, the British pound at $1.40, the Canadian dollar at $0.75, the Australian dollar at $0.75 and the Japanese yen at ¥113 to the US
dollar for the remainder of 2016.
We continue to expect that operating margins for the full year
will be 18.0% to 18.5%. Adjusted for foreign currency impacts
(including comparisons to 2015 hedge gains) and the 2015 software
impairment charge, we continue to target operating margin
improvement of approximately 50 basis points from 2015 levels.
We expect an effective tax rate of approximately 30.5% to 31.0%,
up slightly from previous guidance due to a higher mix of profit in
the US versus lower tax rate jurisdictions. We are projecting a
reduction in weighted average shares outstanding of approximately
3.5%, and interest expense, net of interest income, of
approximately $31 million reflecting
current and projected borrowings.
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, dial 800-230-1092 or 612-288-0340 and
reference confirmation code 390906. An audio replay will be
available through Friday, May 6, 2016
by dialing 800-475-6701 or 320-365-3844 and referencing replay code
390906.
The call will also be available via live or archived webcast on
the IDEXX Laboratories' website at www.idexx.com and will be
available for one year.
Annual Meeting
IDEXX Laboratories, Inc. today announced that it will host a
simultaneous webcast of its Annual Meeting of Stockholders, to be
held on Wednesday, May 4, 2016, at
10:00 a.m. (Eastern) at the Portland
Marriott Hotel, 200 Sable Oaks Drive, South Portland, Maine.
Chairman and Chief Executive Officer Jonathan Ayers will chair the meeting. Investors
may listen to live audio of the Annual Meeting via a link on the
Company's website, www.idexx.com. An archived edition of the
meeting will be available after 1:00
p.m. (Eastern) on that day via the same link and will be
available for 14 days.
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 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 7,000 people
and offers products to customers in over 175 countries.
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 are useful for period-over-period
comparisons of the performance of the Company's business and to the
performance 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:
Adjusted EPS and Adjusted EPS growth - Adjusted EPS and Adjusted
EPS growth are non-GAAP financial measures. Management
believes that reporting Adjusted EPS provides useful information to
investors by facilitating easier comparisons of our EPS performance
with prior and future periods. The 2016 projected Adjusted
EPS growth calculation uses the Adjusted 2015 EPS, which excludes
from 2015 reported earnings the third quarter 2015 non-cash
software impairment charge of $8.2
million or $0.06 per
share.
Constant currency - Constant currency references are non-GAAP
financial measures and exclude the impact of changes in foreign
currency exchange rates. Management believes that providing
constant currency information provides valuable supplemental
information regarding our revenue, operating margin, and EPS
performance because it is consistent with how management evaluates
our performance and facilitates comparisons with prior and future
periods. We estimated the net impacts of currency on our revenue,
operating profit, EPS and Adjusted 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 2016 EPS growth by 10%, projected
2016 revenue growth by 1%, and projected 2016 Adjusted EPS growth
by 10%. 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,
2016.
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 arrangements, reduced by
the Company's investments in fixed assets. 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 fixed assets
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, 2016
and 2015. With respect to this particular forward-looking
projected non-GAAP financial measure, the Company is unable to
provide a quantitative reconciliation as the inputs to the
measurement are difficult to predict and estimate and are primarily
dependent on future events.
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. Management believes that reporting organic
revenue growth provides useful information to investors by
facilitating easier comparisons of our revenue performance with
prior and future periods and to the performance of our peers.
Organic revenue growth for the first quarter of 2016 excludes the
impact of changes in foreign currency exchange rates, which had a
1.9% unfavorable impact on revenue growth, and revenue from
business acquisitions, which contributed 0.5% to revenue growth.
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,
2016.
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 "Outlook for
2016" and elsewhere and 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. Our forward-looking statements include statements
relating to our revenue growth and EPS outlooks; free cash flow
forecast; projected impact of foreign currency exchange rates;
and projected operating margins, capital expenditures,
effective tax rate, 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 US; 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 a
change to our relationship with the Company's former
distributors; 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 US 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
and decisions regarding labeling, manufacturing and marketing
products; the impact of consolidation in our customer base,
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 US 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 US, 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 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, 2015 and the
Company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 2016,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
|
Consolidated
Statement of Operations
|
Amounts in
thousands except per share data (Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
March
31,
|
|
|
2016
|
2015
|
Revenue:
|
Revenue
|
$ 417,550
|
$ 382,477
|
Expenses
and
|
|
|
|
Income:
|
Cost of
revenue
|
190,013
|
166,933
|
|
Gross
profit
|
227,537
|
215,544
|
|
Sales and
marketing
|
79,829
|
75,136
|
|
General and
administrative
|
49,295
|
42,599
|
|
Research and
development
|
24,620
|
25,006
|
|
Income from
operations
|
73,793
|
72,803
|
|
Interest expense,
net
|
(7,484)
|
(5,879)
|
|
Income before
provision for income taxes
|
66,309
|
66,924
|
|
Provision for income
taxes
|
20,284
|
20,346
|
Net
Income:
|
Net income
|
46,025
|
46,578
|
|
Less: Noncontrolling
interest in subsidiary's
|
|
|
|
earnings
(losses)
|
6
|
(16)
|
|
Net income
attributable to stockholders
|
$ 46,019
|
$ 46,594
|
|
Earnings per share:
Basic
|
$
0.51
|
$
0.49
|
|
Earnings per share:
Diluted
|
$
0.51
|
$
0.49
|
|
Shares outstanding:
Basic
|
89,924
|
94,280
|
|
Shares outstanding:
Diluted
|
90,838
|
95,521
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Selected Operating
Information (Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
March
31,
|
|
|
2016
|
2015
|
Operating
|
Gross
profit
|
54.5%
|
56.4%
|
Ratios (as
a
|
Sales, marketing,
general and
|
|
|
percentage
of
|
administrative
expense
|
30.9%
|
30.8%
|
revenue):
|
Research and
development expense
|
5.9%
|
6.5%
|
|
Income from
operations1
|
17.7%
|
19.0%
|
|
|
|
|
1 Amounts 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
|
|
|
|
2016
|
Revenue
|
|
2015
|
Revenue
|
Revenue:
|
CAG
|
|
$ 357,639
|
|
|
$ 324,531
|
|
|
Water
|
|
23,552
|
|
|
21,698
|
|
|
LPD
|
|
30,856
|
|
|
31,270
|
|
|
Other
|
|
5,503
|
|
|
4,978
|
|
|
Total
|
|
$ 417,550
|
|
|
$ 382,477
|
|
|
|
|
|
|
|
|
|
Gross
Profit1:
|
CAG
|
|
$ 190,792
|
53.3%
|
|
$ 176,934
|
54.5%
|
|
Water
|
|
16,106
|
68.4%
|
|
15,148
|
69.8%
|
|
LPD
|
|
17,977
|
58.3%
|
|
20,008
|
64.0%
|
|
Other
|
|
2,923
|
53.1%
|
|
2,473
|
49.7%
|
|
Unallocated
Amounts
|
|
(261)
|
N/A
|
|
981
|
N/A
|
|
Total
|
|
$ 227,537
|
54.5%
|
|
$ 215,544
|
56.4%
|
|
|
|
|
|
|
|
|
Income
from
|
|
|
|
|
|
|
|
Operations1:
|
CAG
|
|
$ 61,378
|
17.2%
|
|
$
53,518
|
16.5%
|
|
Water
|
|
9,679
|
41.1%
|
|
9,361
|
43.1%
|
|
LPD
|
|
4,570
|
14.8%
|
|
6,956
|
22.2%
|
|
Other
|
|
(837)
|
(15.2%)
|
|
(322)
|
(6.5%)
|
|
Unallocated
Amounts
|
|
(997)
|
N/A
|
|
3,290
|
N/A
|
|
Total
|
|
$ 73,793
|
17.7%
|
|
$ 72,803
|
19.0%
|
|
|
|
|
|
|
|
|
1 Effective January 1, 2016, we modified our management
reporting to provide a more comprehensive view of the performance
of our operating segments by including the capitalization of
variances between standard and actual manufacturing costs, which
adjust the timing of cost recognition from when the variance is
created to the period in which the related inventory is sold. Prior
to January 1, 2016, the capitalization and subsequent recognition
of these variances were not allocated to our operating segments and
were instead reported under the caption "Unallocated Amounts". The
segment gross profit and income (loss) from operations within this
report for the quarter ended March 31, 2015 has been
retrospectively revised to reflect this change to our reportable
segments.
|
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,
2016
|
|
|
March 31,
2015
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency1
|
|
Percentage
Change
from
Acquisitions2
|
|
Organic Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG
|
$
|
357,639
|
|
|
324,531
|
|
$
|
33,108
|
|
10.2%
|
|
(1.5%)
|
|
0.5%
|
|
11.2%
|
Water
|
|
23,552
|
|
|
21,698
|
|
|
1,854
|
|
8.5%
|
|
(2.7%)
|
|
-
|
|
11.2%
|
LPD
|
|
30,856
|
|
|
31,270
|
|
|
(414)
|
|
(1.3%)
|
|
(4.8%)
|
|
-
|
|
3.5%
|
Other
|
|
5,503
|
|
|
4,978
|
|
|
525
|
|
10.5%
|
|
(0.3%)
|
|
-
|
|
10.8%
|
Total
|
$
|
417,550
|
|
|
382,477
|
|
$
|
35,073
|
|
9.2%
|
|
(1.9%)
|
|
0.5%
|
|
10.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
Net
Revenue
|
March 31,
2016
|
|
|
March 31,
2015
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency1
|
|
Percentage
Change
from
Acquisitions2
|
|
Organic Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
258,939
|
|
$
|
235,408
|
|
$
|
23,531
|
|
10.0%
|
|
-
|
|
0.3%
|
|
9.7%
|
International
|
|
158,611
|
|
|
147,069
|
|
|
11,542
|
|
7.8%
|
|
(5.0%)
|
|
0.7%
|
|
12.1%
|
Total
|
$
|
417,550
|
|
$
|
382,477
|
|
$
|
35,073
|
|
9.2%
|
|
(1.9%)
|
|
0.5%
|
|
10.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
Net CAG
Revenue
|
March 31,
2016
|
|
|
March 31,
2015
|
|
Dollar
Change
|
|
Percentage
Change
|
|
Percentage
Change
from
Currency1
|
|
Percentage
Change
from
Acquisitions2
|
|
Organic Revenue
Growth3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAG Diagnostics
recurring revenue:
|
$
|
305,510
|
|
$
|
278,766
|
|
$
|
26,744
|
|
9.6%
|
|
(1.6%)
|
|
0.6%
|
|
10.6%
|
IDEXX VetLab
consumables
|
|
107,959
|
|
|
98,392
|
|
|
9,567
|
|
9.7%
|
|
(1.8%)
|
|
-
|
|
11.5%
|
IDEXX VetLab
service and accessories
|
|
13,757
|
|
|
13,530
|
|
|
227
|
|
1.7%
|
|
(1.2%)
|
|
-
|
|
2.9%
|
Rapid assay
products
|
|
43,086
|
|
|
43,637
|
|
|
(551)
|
|
(1.3%)
|
|
(0.6%)
|
|
-
|
|
(0.7%)
|
Reference
laboratory diagnostic and consulting services
|
|
140,708
|
|
|
123,207
|
|
|
17,501
|
|
14.2%
|
|
(1.8%)
|
|
1.3%
|
|
14.7%
|
CAG Diagnostics
capital - instruments
|
|
22,974
|
|
|
20,113
|
|
|
2,861
|
|
14.2%
|
|
(1.8%)
|
|
-
|
|
16.0%
|
Customer information
management and
diagnostic imaging systems
|
|
29,155
|
|
|
25,652
|
|
|
3,503
|
|
13.7%
|
|
(0.7%)
|
|
-
|
|
14.4%
|
Net CAG
revenue
|
$
|
357,639
|
|
$
|
324,531
|
|
$
|
33,108
|
|
10.2%
|
|
(1.5%)
|
|
0.5%
|
|
11.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
The 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, 2016 and the
same period of the prior year applied to foreign
currency-denominated revenues for the three months ended March 31,
2015.
|
|
|
2
The 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, 2016 compared to the three months ended March 31, 2015
attributed to acquisitions subsequent to December 31,
2014.
|
|
|
3 Organic revenue growth is a non-GAAP financial
measure and represents the percentage change in revenue during the
three months ended March 31, 2016 compared to the three months
ended March 31, 2015 net of acquisitions and the effect of changes
in foreign currency exchange rates.
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Consolidated
Balance Sheet
|
Amounts in
thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
December
31,
|
|
|
|
|
|
2016
|
2015
|
Assets:
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 132,953
|
$
128,994
|
|
Marketable
securities
|
|
217,617
|
213,591
|
|
Accounts receivable,
net
|
|
212,072
|
188,318
|
|
Inventories
|
|
183,759
|
188,833
|
|
Other current
assets
|
|
62,605
|
101,898
|
|
Total current
assets
|
|
809,006
|
821,634
|
|
Property and
equipment, net
|
|
343,010
|
333,026
|
|
Other long-term
assets, net
|
|
326,631
|
320,333
|
|
Total
assets
|
|
$ 1,478,647
|
$ 1,474,993
|
Liabilities
and
|
|
|
|
|
|
|
Stockholders'
|
|
|
|
|
|
|
Deficit:
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
52,458
|
$
52,648
|
|
Accrued
liabilities
|
|
178,267
|
205,530
|
|
Line of
credit
|
|
622,000
|
573,000
|
|
Deferred
revenue
|
|
25,943
|
25,583
|
|
Total current
liabilities
|
|
878,668
|
856,761
|
|
Long-term
debt
|
|
600,021
|
597,085
|
|
Other long-term
liabilities
|
|
73,745
|
105,142
|
|
Total long-term
liabilities
|
|
673,766
|
702,227
|
|
|
|
|
|
|
|
|
Total stockholders'
deficit
|
|
(73,922)
|
(84,125)
|
|
Noncontrolling
interest
|
|
135
|
130
|
|
Total
deficit
|
|
(73,787)
|
(83,995)
|
|
Total liabilities
and stockholders' equity
|
|
$ 1,478,647
|
$ 1,474,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
Selected Balance
Sheet Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
March
31,
|
December
31,
|
September
30,
|
June
30,
|
March
31,
|
|
|
2016
|
2015
|
2015
|
2015
|
2015
|
Selected
|
|
|
|
|
|
|
Balance
Sheet
|
Days sales
outstanding1
|
43.7
|
43.3
|
43.8
|
43.7
|
41.6
|
Information:
|
Inventory
turns2
|
1.6
|
1.5
|
1.5
|
1.5
|
1.6
|
|
|
|
|
|
|
|
1 Days
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.
|
|
2
Inventory 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
|
|
|
Consolidated
Statement of Cash Flows
|
|
|
Amounts in
thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
March
31,
|
|
|
|
|
|
2016
|
2015
|
Operating:
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
|
|
$ 46,025
|
$ 46,578
|
|
Non-cash
charges
|
|
|
|
27,683
|
21,995
|
|
Changes in assets and
liabilities
|
|
(48,419)
|
(75,504)
|
|
Tax benefit from
share-based compensation arrangements
|
(2,063)
|
(7,713)
|
|
Net cash provided
(used) by operating activities
|
|
|
|
23,226
|
(14,644)
|
Investing:
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
|
(21,906)
|
(23,017)
|
|
Purchase of
marketable securities
|
|
(72,079)
|
(140,448)
|
|
Proceeds from the
sale and maturities of marketable securities
|
|
|
70,186
|
3,228
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
-
|
(383)
|
|
Net cash used by
investing activities
|
|
|
(23,799)
|
(160,620)
|
Financing:
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Borrowings on
revolving credit facilities, net
|
|
49,000
|
500
|
|
Issuance of long-term
debt
|
|
-
|
150,000
|
|
Repurchases of common
stock
|
|
|
|
(53,480)
|
(133,647)
|
|
Debt issue
costs
|
|
|
|
(57)
|
(90)
|
|
Proceeds from the
exercise of stock options and employee stock purchase
plans
|
5,760
|
12,325
|
|
Payment of
acquisition-related contingent consideration
|
(2,084)
|
-
|
|
Tax benefit from
share-based compensation arrangements
|
2,063
|
7,713
|
|
Net cash provided by
financing activities
|
|
|
1,202
|
36,801
|
|
Net effect of changes
in exchange rates on cash
|
|
|
|
3,330
|
(1,913)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
|
3,959
|
(140,376)
|
|
Cash and cash
equivalents, beginning of period
|
|
|
128,994
|
322,536
|
|
Cash and cash
equivalents, end of period
|
|
|
|
$ 132,953
|
$ 182,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX
Laboratories, Inc. and Subsidiaries
|
|
|
Free Cash
Flow1
|
|
|
Amounts in
thousands (Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
March
31,
|
|
|
|
|
|
2016
|
2015
|
Free
Cash
|
|
|
|
|
|
|
Flow:
|
Net cash provided
(used) by operating activities
|
|
|
|
$ 23,226
|
$ (14,644)
|
|
Financing cash flows
attributable to tax benefits from share-based compensation
arrangements
|
2,063
|
7,713
|
|
Investing cash flows
attributable to purchases of property and equipment
|
(21,906)
|
(23,017)
|
|
Free cash
flow
|
|
|
|
$ 3,383
|
$ (29,948)
|
|
|
|
|
|
|
|
1
Free 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 fixed assets.
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 fixed
assets that are required to operate the business. Management also
believes 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
|
|
|
|
|
|
|
March
31,
|
March
31,
|
|
|
|
|
|
|
2016
|
2015
|
|
Share repurchases
during the period
|
|
|
|
|
708
|
1,718
|
|
Shares surrendered by
employees in payment for minimum
|
|
|
|
|
|
|
|
required withholding
taxes due on share based compensation
|
|
|
|
|
52
|
61
|
|
Total number of
shares purchased1
|
|
|
|
|
760
|
1,779
|
|
Average price paid
per share
|
|
|
|
|
$70.06
|
$77.85
|
|
|
|
|
|
|
|
|
|
Shares remaining
under repurchase authorization as of March 31, 2016 totaled
6,098,101.
|
|
|
|
1Shares repurchased and acquired through
employee surrender for payment of minimum required withholding
taxes on and before June 15, 2015 and the associated average cost
per share have been adjusted to reflect the June 2015 two-for-one
stock split. Actual shares repurchased were approximately
890,000 for the three months ended March 31, 2015.
|
Contact: Ed Garber, Director,
Investor Relations, 1-207-556-8155
Logo - http://photos.prnewswire.com/prnh/20110602/NE13041LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/idexx-laboratories-announces-first-quarter-results-300259851.html
SOURCE IDEXX Laboratories, Inc.