Full Press Release Details
IDEXX Laboratories Announces Second Quarter Results
WESTBROOK, Maine, July 30, 2015 /PRNewswire/ -- IDEXX Laboratories, Inc. (NASDAQ: IDXX) today reported revenues for the second quarter of 2015 of $413 million, an increase of 6% compared to the prior year period. Impacts from the strengthening of the US dollar reduced reported revenue growth by 7%. Normalized organic revenue growth 1,2 for the quarter was 11%, supported by strong growth in the Companion Animal Group ( CAG ) and Water. Earnings per diluted share ( EPS ) was $0.60 for the quarter, an increase of 9% compared to the prior year period despite a negative $0.05 per share impact related to net changes in foreign exchange rates.
We are very pleased with the Company's performance in the second quarter. Instrument placements were outstanding. Placements were strong in all geographic regions, benefiting from our robust worldwide commercial capabilities and best in class products including Catalyst One , our next generation chemistry analyzer. We expect continued momentum with instrument placements and have updated our outlook to well over 9,000 chemistry and hematology instrument placements for the full year 2015, which bodes well for long-term growth in the recurring instrument consumable revenues, said Jonathan Ayers, the Company's Chairman and Chief Executive Officer.
Growth of CAG Diagnostics recurring revenue was strong, supported by continued high growth in our reference laboratory diagnostic and consulting services, particularly in the US, as well as continued strong growth in instrument consumable revenues. Our full launch earlier this month of our new kidney function test, SDMA, has been flawless. In just a few weeks, nearly 9,000 US veterinary practices have benefitted from SDMA results on over 140,000 patients.
Revenue for our rapid assay products, which increased 3% in the quarter, was consistent with our expectations for normalized organic growth, added Ayers. Recent head-to-head comparison studies, including those that have been peer-reviewed, have demonstrated IDEXX's significant superiority in test sensitivity in both canine and feline lines over competing tests using the lateral flow platform. Higher sensitivity in the detection of infectious diseases is due in part to our SNAP platform, which is unique in using reference lab ELISA technology. We know that test accuracy is the primary factor that customers value with these in-house kits, given the importance of accurately detecting the presence of these serious infectious diseases in practice. We are well equipped to communicate this data to our customers with our fully direct US sales organization.
We are on track to accelerate CAG Diagnostics recurring revenue growth in future quarters as we continue to gain productivity from our US all-direct sales strategy and our momentum internationally. We also benefit from an unprecedented wave of innovations we are bringing to the market, including the recently launched SDMA and fecal antigen tests in the reference labs, the total T4 slide on our Catalyst chemistry platform, the new SNAP test for Leptospirosis, the H3N2 dog flu test, and several advancements in our VetConnect PLUS cloud-based and mobile diagnostic results viewing app.
Second Quarter Financial Performance Highlights
Second quarter revenue increased 6% to $413 million. Normalized organic revenue growth was 11% and benefited in part from incremental margin capture associated with the move to an all-direct sales model for US CAG Diagnostics.
Operating margins were 21.4% in the second quarter, up slightly compared to prior year period margins of 21.3%. Gross profits increased 7%, reflecting a moderate increase in gross margins to 56.3% from 56.0% in the prior year period. Operating expenses increased 7% primarily due to costs associated with the all-direct US CAG Diagnostics sales strategy and other increases in global commercial resources, partly offset by the favorable impact of foreign exchange.
Financial Outlook for 2015
The Company is maintaining its previous 2015 financial guidance, adjusted to account for the June 15, 2015 two-for-one stock split, as summarized below:
| Amounts in millions except per share data and percentages | |||
| Guidance Range | Growth Definition | Year-over-Year Growth | |
| Revenue | $1,600 - $1,620 | Normalized Organic Revenue Growth 2 | 12% to 13% |
| Reported | 8% to 9% | ||
| EPS | $2.07 - $2.12 | Adjusted | 4% to 6% 3 |
| Reported | 16% to 18% | ||
| Free Cash Flow 4 | 80% - 90% | ||
| of net income | |||
| Capital Expenditures | ~$100 |
At current foreign exchange rates, we estimate that the effect of the stronger US dollar will adversely impact 2015 reported revenue and EPS growth by 6% and 9%, respectively.
The guidance above reflects the assumptions that the value of the US dollar relative to other currencies will remain at our current assumptions of the euro at $1.08, the British pound at $1.55, the Canadian dollar at $0.77, the Australian dollar at $0.74 and the Japanese yen at 124 to the US dollar for the remainder of 2015. Our full year financial outlook includes the benefit of hedge contracts which we expect will favorably impact EPS by approximately $0.16 per share.
The favorable deferred revenue impact of our Catalyst One introductory offer is expected to increase revenue growth for the full year 2015 by approximately 0.5%.
We expect an effective tax rate of 30%. This outlook has not assumed that the federal R&D tax credit, which benefited EPS by $0.03 per share in 2014, will be renewed in 2015.
We are projecting a reduction in weighted average shares outstanding of approximately 7.0% to 7.5%, and interest expense, net of interest income, of approximately $28 million reflecting current and projected borrowings.
Adjustments to EPS for 2014 used for calculating adjusted EPS growth are summarized below:
| Earnings per share: Diluted (as Reported - adjusted for two-for-one stock split) | $1.79 |
| Incremental expenses associated with transition to an all-direct sales strategy | |
| - Non-recurring transition costs | 0.06 |
| - Expense ramp-up in advance of transition to new sales strategy | 0.03 |
| Impact of distributor inventory drawdown | 0.14 |
| Non-recurring income tax benefit related to the deferral of intercompany profits | (0.02) |
| Adjusted earnings per share: Diluted 3 | $2.00 |
Statement Regarding Non-GAAP Financial Measures
The following provides information regarding certain measures used in this earnings release that are not required by, or presented in accordance with, generally accepted accounting principles in the United States of America ( GAAP ), otherwise referred to herein 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. 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. See the notes to this earnings release for information regarding these non-GAAP financial measures and the reconciliations included in the notes and elsewhere in this earnings release for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Conference Call and Webcast Information
IDEXX Laboratories, Inc. will be hosting a conference call today at 8:30 a.m. (Eastern) to discuss its second quarter results and management's outlook. To participate in the conference call, dial 1-800-288-8968 or 1-612-332-0228 and reference confirmation code 363893. An audio replay will be available through Thursday, August 6, 2015 by dialing 1-320-365-3844 and referencing replay code 363893.
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.
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 more than 6,000 people and offers products to customers in over 175 countries.
1 All references to growth and organic growth refer to growth compared to the equivalent period in 2014.
2 Normalized organic revenue growth and organic revenue growth are non-GAAP financial measures. 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 second quarter of 2015 excludes the impact of changes in foreign currency exchange rates, which had a 7% 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 June 30, 2015. Management also believes that reporting normalized organic revenue growth provides useful information to investors by facilitating easier comparisons of our revenue growth performance with prior and future periods. Normalized organic revenue growth excludes the impact of changes in our significant distributors' inventory levels on organic revenue growth. When selling our products through distributors, changes in distributors' inventory levels can impact our reported sales, and these changes may be affected by many factors, which may not be directly related to underlying end-user demand for our products. Effective January 1, 2015, we fully transitioned to an all-direct sales strategy in the US, however changes in prior year US distributors' inventory levels can still impact current year reported growth results. In certain countries internationally, we continue to sell our products through third party distributors. Although we are unable to obtain data for sales to end users from certain less significant non-US third party distributors, we do not believe the impact of changes in these distributors' inventories had or would have a material impact on our growth rates in the relevant periods. Reconciliation of organic revenue growth to normalized organic revenue growth for the second quarter of 2015 includes the following positive/(negative) impacts to organic revenue growth from changes in our significant distributors' inventory levels; Total Company 1.1%, US 2.1%, International (0.3%), CAG 1.4%, CAG Diagnostics Recurring 1.6%, VetLab consumables 1.5%, VetLab service and accessories 0.4%, and Rapid Assay 5.9%.
3 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. For the total year projected 2015 comparison to 2014, 2014 excludes impacts in the second half of 2014 related to the all-direct transition and a non-recurring income tax benefit related to the deferral of intercompany profits recorded in the third quarter of 2014. See table above for a reconciliation of 2014 EPS adjustments.
4 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, excluding 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 June 30, 2015 and 2014. 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.
Note Regarding Forward-Looking Statements
| IDEXX Laboratories, Inc. and Subsidiaries | |||||||
| Consolidated Statement of Operations | |||||||
| Amounts in thousands except per share data (Unaudited) | |||||||
| Three Months Ended | Six Months Ended | ||||||
| June 30 , | June 30, | June 30, | June 30, | ||||
| 2015 | 2014 | 2015 | 2014 | ||||
| Revenue: | Revenue | $ 413,343 | $ 390,122 | $ 795,820 | $ 750,325 | ||
| Expenses and | |||||||
| Income: | Cost of revenue | 180,586 | 171,604 | 347,519 | 329,710 | ||
| Gross profit | 232,757 | 218,518 | 448,301 | 420,615 | |||
| Sales and marketing | 75,217 | 68,020 | 150,353 | 135,868 | |||
| General and administrative | 44,920 | 41,846 | 87,519 | 82,935 | |||
| Research and development | 24,317 | 25,433 | 49,323 | 48,547 | |||
| Income from operations | 88,303 | 83,219 | 161,106 | 153,265 | |||
| Interest expense, net | (6,700) | (2,477) | (12,579) | (4,780) | |||
| Income before provision for income taxes | 81,603 | 80,742 | 148,527 | 148,485 | |||
| Provision for income taxes | 24,665 | 23,498 | 45,011 | 44,648 | |||
| Net Income: | Net income | 56,938 | 57,244 | 103,516 | 103,837 | ||
| Less: Noncontrolling interest in subsidiary's | |||||||
| earnings | 26 | 26 | 10 | 34 | |||
| Net income attributable to stockholders | $ 56,912 | $ 57,218 | $ 103,506 | $ 103,803 | |||
| Earnings per share: Basic | $ 0.61 | $ 0.56 | $ 1.10 | $ 1.01 | |||
| Earnings per share: Diluted | $ 0.60 | $ 0.55 | $ 1.09 | $ 1.00 | |||
| Shares outstanding: Basic | 93,384 | 102,250 | 93,829 | 102,739 | |||
| Shares outstanding: Diluted | 94,306 | 103,590 | 94,934 | 104,160 | |||
| IDEXX Laboratories, Inc. and Subsidiaries | |||||||
| Selected Operating Information (Unaudited) | |||||||
| Three Months Ended | Six Months Ended | ||||||
| June 30, | June 30, | June 30, | June 30, | ||||
| 2015 | 2014 | 2015 | 2014 | ||||
| Operating | Gross profit | 56.3% | 56.0% | 56.3% | 56.1% | ||
| Ratios (as a | Sales, marketing, general and | ||||||
| percentage of | administrative expense | 29.1% | 28.2% | 29.9% | 29.2% | ||
| revenue): | Research and development expense | 5.9% | 6.5% | 6.2% | 6.5% | ||
| Income from operations 1 | 21.4% | 21.3% | 20.2% | 20.4% |
| IDEXX Laboratories, Inc. and Subsidiaries | |||||||
| Segment Information | |||||||
| Amounts in thousands (Unaudited) | |||||||
| Three Months Ended | Three Months Ended | ||||||
| June 30, | Percent of | June 30, | Percent of | ||||
| 2015 | Revenue | 2014 | Revenue | ||||
| Revenue: | CAG | $ 351,620 | $ 322,129 | ||||
| Water | 25,051 | 24,487 | |||||
| LPD | 32,059 | 37,307 | |||||
| Other | 4,613 | 6,199 | |||||
| Total | $ 413,343 | $ 390,122 | |||||
| Gross Profit: | CAG | $ 192,546 | 54.8% | $ 177,754 | 55.2% | ||
| Water | 18,016 | 71.9% | 16,107 | 65.8% | |||
| LPD | 19,486 | 60.8% | 24,390 | 65.4% | |||
| Other | 2,361 | 51.2% | 2,743 | 44.2% | |||
| Unallocated Amounts | 348 | N/A | (2,476) | N/A | |||
| Total | $ 232,757 | 56.3% | $ 218,518 | 56.0% | |||
| Income from | |||||||
| Operations: | CAG | $ 67,875 | 19.3% | $ 66,924 | 20.8% | ||
| Water | 11,954 | 47.7% | 10,064 | 41.1% | |||
| LPD | 5,895 | 18.4% | 10,747 | 28.8% | |||
| Other | (237) | (5.1%) | (249) | (4.0%) | |||
| Unallocated Amounts | 2,816 | N/A | (4,267) | N/A | |||
| Total | $ 88,303 | 21.4% | $ 83,219 | 21.3% | |||
| Six Months Ended | Six Months Ended | ||||||
| June 30, | Percent of | June 30, | Percent of | ||||
| 2015 | Revenue | 2014 | Revenue | ||||
| Revenue: | CAG | $ 676,151 | $ 620,857 | ||||
| Water | 46,749 | 45,908 | |||||
| LPD | 63,329 | 71,518 | |||||
| Other | 9,591 | 12,042 | |||||
| Total | $ 795,820 | $ 750,325 | |||||
| Gross Profit: | CAG | $ 368,391 | 54.5% | $ 341,270 | 55.0% | ||
| Water | 33,262 | 71.2% | 30,038 | 65.4% | |||
| LPD | 38,489 | 60.8% | 46,244 | 64.7% | |||
| Other | 4,962 | 51.7% | 6,144 | 51.0% | |||
| Unallocated Amounts | 3,197 | N/A | (3,081) | N/A | |||
| Total | $ 448,301 | 56.3% | $ 420,615 | 56.1% | |||
| Income from | |||||||
| Operations: | CAG | $ 120,304 | 17.8% | $ 120,928 | 19.5% | ||
| Water | 21,413 | 45.8% | 18,180 | 39.6% | |||
| LPD | 11,846 | 18.7% | 19,067 | 26.7% | |||
| Other | (431) | (4.5%) | 340 | 2.8% | |||
| Unallocated Amounts | 7,974 | N/A | (5,250) | N/A | |||
| Total | $ 161,106 | 20.2% | $ 153,265 | 20.4% |
| 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 | June 30, 2015 | June 30, 2014 | Dollar Change | Percentage Change | Percentage Change from Currency 1 | Percentage Change from Acquisitions 2 | Organic Revenue Growth 3 | ||||||||||
| CAG | $ | 351,620 | $ | 322,129 | $ | 29,491 | 9.2% | (5.9%) | 0.7% | 14.4% | |||||||
| Water | 25,051 | 24,487 | 564 | 2.3% | (6.1%) | - | 8.4% | ||||||||||
| LPD | 32,059 | 37,307 | (5,248) | (14.1%) | (12.6%) | - | (1.5%) | ||||||||||
| Other | 4,613 | 6,199 | (1,586) | (25.6%) | (1.0%) | - | (24.6%) | ||||||||||
| Total | $ | 413,343 | $ | 390,122 | $ | 23,221 | 6.0% | (6.5%) | 0.5% | 12.0% | |||||||
| Three Months Ended | |||||||||||||||||
| Net Revenue | June 30, 2015 | June 30, 2014 | Dollar Change | Percentage Change | Percentage Change from Currency 1 | Percentage Change from Acquisitions 2 | Organic Revenue Growth 3 | ||||||||||
| United States | $ | 254,242 | $ | 225,336 | $ | 28,906 | 12.8% | - | 0.2% | 12.6% | |||||||
| International | 159,101 | 164,786 | (5,685) | (3.4%) | (15.4%) | 0.9% | 11.1% | ||||||||||
| Total | $ | 413,343 | $ | 390,122 | $ | 23,221 | 6.0% | (6.5%) | 0.5% | 12.0% | |||||||
| Three Months Ended | |||||||||||||||||
| Net CAG Revenue | June 30, 2015 | June 30, 2014 | Dollar Change | Percentage Change | Percentage Change from Currency 1 | Percentage Change from Acquisitions 2 | Organic Revenue Growth 3 | ||||||||||
| CAG Diagnostics recurring revenue: | $ | 300,146 | $ | 276,949 | $ | 23,197 | 8.4% | (6.1%) | 0.4% | 14.1% | |||||||
| VetLab consumables | 100,743 | 89,113 | 11,630 | 13.1% | (7.4%) | - | 20.5% | ||||||||||
| VetLab service and accessories | 14,018 | 13,433 | 585 | 4.4% | (6.9%) | - | 11.3% | ||||||||||
| Rapid assay products | 52,182 | 49,493 | 2,689 | 5.4% | (3.1%) | - | 8.5% | ||||||||||
| Reference laboratory diagnostic and consulting services | 133,203 | 124,910 | 8,293 | 6.6% | (6.5%) | 1.0% | 12.1% | ||||||||||
| CAG Diagnostics capital - instruments | 24,064 | 18,993 | 5,071 | 26.7% | (11.1%) | - | 37.8% | ||||||||||
| Customer information management and digital imaging systems | 27,410 | 26,187 | 1,223 | 4.7% | (0.6%) | 3.2% | 2.1% | ||||||||||
| Net CAG revenue | $ | 351,620 | $ | 322,129 | $ | 29,491 | 9.2% | (5.9%) | 0.7% | 14.4% |
| 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 June 30, 2015 and the same period of the prior year applied to foreign currency-denominated revenues for the three months ended June 30, 2014. |
| 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 June 30, 2015 compared to the three months ended June 30, 2014 attributed to acquisitions subsequent to March 31, 2014. |
| 3 Organic revenue growth is a non-GAAP financial measure and represents the percentage change in revenue during the three months ended June 30, 2015 compared to the three months ended June 30, 2014 net of acquisitions and the effect of changes in foreign currency exchange rates. |
| 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) | |||||||||||||||||
| Six Months Ended | |||||||||||||||||
| Net Revenue | June 30, 2015 | June 30, 2014 | Dollar Change | Percentage Change | Percentage Change from Currency 1 | Percentage Change from Acquisitions 2 | Organic Revenue Growth 3 | ||||||||||
| CAG | $ | 676,151 | $ | 620,857 | $ | 55,294 | 8.9% | (5.7%) | 0.6% | 14.0% | |||||||
| Water | 46,749 | 45,908 | 841 | 1.8% | (5.6%) | - | 7.4% | ||||||||||
| LPD | 63,329 | 71,518 | (8,189) | (11.5%) | (12.1%) | - | 0.6% | ||||||||||
| Other | 9,591 | 12,042 | (2,451) | (20.4%) | (1.1%) | - | (19.3%) | ||||||||||
| Total | $ | 795,820 | $ | 750,325 | $ | 45,495 | 6.1% | (6.2%) | 0.5% | 11.8% | |||||||
| Six Months Ended | |||||||||||||||||
| Net Revenue | June 30, 2015 | June 30, 2014 | Dollar Change | Percentage Change | Percentage Change from Currency 1 | Percentage Change from Acquisitions 2 | Organic Revenue Growth 3 | ||||||||||
| United States | $ | 489,650 | $ | 432,930 | $ | 56,720 | 13.1% | - | 0.2% | 12.9% | |||||||
| International | 306,170 | 317,395 | (11,225) | (3.5%) | (14.6%) | 0.9% | 10.2% | ||||||||||
| Total | $ | 795,820 | $ | 750,325 | $ | 45,495 | 6.1% | (6.2%) | 0.5% | 11.8% | |||||||
| Six Months Ended | |||||||||||||||||
| Net CAG Revenue | June 30, 2015 | June 30, 2014 | Dollar Change | Percentage Change | Percentage Change from Currency 1 | Percentage Change from Acquisitions 2 | Organic Revenue Growth 3 | ||||||||||
| CAG Diagnostics recurring revenue: | $ | 578,911 | $ | 532,830 | $ | 46,081 | 8.6% | (5.9%) | 0.4% | 14.1% | |||||||
| VetLab consumables | 199,135 | 173,434 | 25,701 | 14.8% | (7.1%) | - | 21.9% | ||||||||||
| VetLab service and accessories | 27,548 | 26,504 | 1,044 | 3.9% | (6.5%) | - | 10.4% | ||||||||||
| Rapid assay products | 95,819 | 92,552 | 3,267 | 3.5% | (2.9%) | - | 6.4% | ||||||||||
| Reference laboratory diagnostic and consulting services | 256,409 | 240,340 | 16,069 | 6.7% | (6.1%) | 0.9% | 11.9% | ||||||||||
| CAG Diagnostics capital - instruments | 44,178 | 37,580 | 6,598 | 17.6% | (11.1%) | - | 28.7% | ||||||||||
| Customer information management and digital imaging systems | 53,062 | 50,447 | 2,615 | 5.2% | (0.7%) | 3.2% | 2.7% | ||||||||||
| Net CAG revenue | $ | 676,151 | $ | 620,857 | $ | 55,294 | 8.9% | (5.7%) | 0.6% | 14.0% |
| 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 six months ended June 30, 2015 and the same period of the prior year applied to foreign currency-denominated revenues for the six months ended June 30, 2014. |
| 2 The percentage change from acquisitions is a non-GAAP financial measure. This measure represents the percentage change in revenue during the six months ended June 30, 2015 compared to the six months ended June 30, 2014 attributed to acquisitions subsequent to December 31, 2013. |
| 3 Organic revenue growth is a non-GAAP financial measure and represents the percentage change in revenue during the six months ended June 30, 2015 compared to the six months ended June 30, 2014 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) | ||||||||
| June 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| Assets: | Current Assets: | |||||||
| Cash and cash equivalents | $ 163,152 | $ 322,536 | ||||||
| Marketable securities | 180,870 | - | ||||||
| Accounts receivable, net | 199,444 | 152,380 | ||||||
| Inventories | 184,500 | 160,342 | ||||||
| Other current assets | 105,068 | 124,140 | ||||||
| Total current assets | 833,034 | 759,398 | ||||||
| Property and equipment, net | 326,041 | 303,587 | ||||||
| Other long-term assets, net | 318,295 | 321,226 | ||||||
| Total assets | $ 1,477,370 | $ 1,384,211 | ||||||
| Liabilities and | ||||||||
| Stockholders' | ||||||||
| Equity: | Current Liabilities: | |||||||
| Accounts payable | $ 58,212 | $ 44,743 | ||||||
| Accrued liabilities | 190,441 | 195,351 | ||||||
| Line of credit | 498,000 | 549,000 | ||||||
| Deferred revenue | 28,775 | 31,812 | ||||||
| Total current liabilities | 775,428 | 820,906 | ||||||
| Long-term debt | 598,925 | 350,000 | ||||||
| Other long-term liabilities | 94,466 | 95,716 | ||||||
| Total long-term liabilities | 693,391 | 445,716 | ||||||
| Total stockholders' equity | 8,468 | 117,516 | ||||||
| Noncontrolling interest | 83 | 73 | ||||||
| Total equity | 8,551 | 117,589 | ||||||
| Total liabilities and stockholders' equity | $ 1,477,370 | $ 1,384,211 | ||||||
| IDEXX Laboratories, Inc. and Subsidiaries | ||||||||
| Selected Balance Sheet Information (Unaudited) | ||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||
| Selected | ||||||||
| Balance Sheet | Days sales outstanding 1 | 43.7 | 41.6 | 40.6 | 39.2 | 40.8 | ||
| Information: | Inventory turns 2 | 1.5 | 1.6 | 1.7 | 1.8 | 1.8 | ||
| 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) | ||||
| Six Months Ended | ||||
| June 30, | June 30, | |||
| 2015 | 2014 | |||
| Operating: | Cash Flows from Operating Activities: | |||
| Net income | $ 103,516 | $ 103,837 | ||
| Non-cash charges | 42,396 | 32,582 | ||
| Changes in assets and liabilities | (71,644) | (13,179) | ||
| Tax benefit from share-based compensation arrangements | (8,746) | (7,960) | ||
| Net cash provided by operating activities | 65,522 | 115,280 | ||
| Investing: | Cash Flows from Investing Activities: | |||
| Purchases of property and equipment | (46,873) | (25,410) | ||
| Purchase of marketable securities | (190,370) | - | ||
| Proceeds from the sale and maturities of marketable securities | 10,039 | - | ||
| Acquisitions of intangible assets | - | (175) | ||
| Proceeds from sale of equity investment | - | 5,400 | ||
| Acquisitions of a business, net of cash acquired | (383) | (1,161) | ||
| Net cash used by investing activities | (227,587) | (21,346) | ||
| Financing: | Cash Flows from Financing Activities: | |||
| (Repayments) borrowings on revolving credit facilities, net | (51,000) | 107,000 | ||
| Issuance of long-term debt | 250,097 | - | ||
| Payment of notes payable | - | (1,394) | ||
| Repurchases of common stock | (220,097) | (196,626) | ||
| Debt issue costs | (127) | (1,156) | ||
| Proceeds from the exercise of stock options and employee stock purchase plans | 15,650 | 14,707 | ||
| Tax benefit from share-based compensation arrangements | 8,746 | 7,960 | ||
| Net cash provided (used) by financing activities | 3,269 | (69,509) | ||
| Net effect of changes in exchange rates on cash | (588) | 1,565 | ||
| Net (decrease) increase in cash and cash equivalents | (159,384) | 25,990 | ||
| Cash and cash equivalents, beginning of period | 322,536 | 279,058 | ||
| Cash and cash equivalents, end of period | $ 163,152 | $ 305,048 | ||
| IDEXX Laboratories, Inc. and Subsidiaries | ||||
| Free Cash Flow 1 | ||||
| Amounts in thousands (Unaudited) | ||||
| Six Months Ended | ||||
| June 30, | June 30, | |||
| 2015 | 2014 | |||
| Free Cash | ||||
| Flow: | Net cash provided by operating activities | $ 65,522 | $ 115,280 | |
| Financing cash flows attributable to tax benefits from share-based compensation arrangements | 8,746 | 7,960 | ||
| Purchases of property and equipment | (46,873) | (25,410) | ||
| Free cash flow | $ 27,395 | $ 97,830 |
| IDEXX Laboratories, Inc. and Subsidiaries | |||||||
| Common Stock Repurchases | |||||||
| Amounts in thousands except per share data (Unaudited) | |||||||
| Three Months Ended | Six Months Ended | ||||||
| June 30, | June 30, | June 30, | June 30, | ||||
| 2015 | 2014 | 2015 | 2014 | ||||
| Share repurchases during the period | 1,417 | 1,950 | 3,197 | 3,183 | |||
| Average price paid per share 1 | $ 66.07 | $ 64.88 | $ 72.63 | $ 63.41 | |||
| 1 Shares repurchased 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 and acquired through employee surrender were 892,000 and 975,000 for the three months ended June 30, 2015 and 2014, respectively and 1,781,000 and 1,591,000 for the six months ended June 30, 2015 and 2014, respectively. Shares remaining under repurchase authorization as of June 30, 2015 totaled 9,332,194. | |||||||
| Share repurchases include shares surrendered by employees in payment for the minimum required withholding taxes due on the vesting of restricted stock units and the settlement of deferred stock units. |
Contact: Ed Garber, Director, Investor Relations, 1-207-556-8155