WESTBROOK, Maine--(BUSINESS WIRE)--IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced second quarter results.
Second Quarter Results
The Company reports revenues of $1,004 million for the second quarter of 2024, an increase of 6% as reported and 7% organic, driven by Companion Animal Group ("CAG") growth of 6% as reported and 7% organic, and Water revenue growth of 9% as reported and 10% organic. CAG Diagnostics recurring revenue growth of 6% as reported and 7% organic was supported by strong growth in international regions and sustained global benefits from IDEXX execution drivers. IDEXX veterinary software, services and diagnostic imaging systems revenue increased 12% as reported and 8% organic, reflecting high recurring revenue growth and continued momentum in cloud-based software placements. Strong interest in IDEXX solutions supported record second quarter premium instrument placements and 11% annual growth in IDEXX's global premium instrument installed base.
Second quarter earnings per diluted share (“EPS”) were $2.44, a decrease of 9% as reported and an increase of 15% on a comparable basis excluding a $0.56 per share impact related to a discrete expense accrual for an ongoing litigation matter.
"Continued high levels of execution from IDEXX teams drove solid global growth and strong operational performance in the second quarter,” said Jay Mazelsky, President and Chief Executive Officer. “These results reflect the benefits that IDEXX customers gain from adopting our innovative, multi-modality testing platforms and solutions. Veterinarians appreciate the deep diagnostics insights generated by IDEXX solutions, which help them deliver better patient outcomes and seamless workflow for better business results. This value-added partnership, supported by IDEXX innovation, sets a strong foundation for long-term growth through higher standards of pet healthcare."
Second Quarter Performance Highlights
Companion Animal Group
The Companion Animal Group generated revenue growth of 6% as reported and 7% organic for the quarter. Solid growth was supported by CAG Diagnostics recurring revenue growth of 6% as reported and 7% organic. CAG Diagnostics recurring revenue growth was supported by 8% reported and 10% organic gains in international regions. U.S. CAG Diagnostics recurring revenue growth of 5% as reported and organic remained solidly above sector growth levels in the second quarter.
Additional U.S. companion animal practice key metrics are available in the Q2 2024 Earnings Snapshot accessible on the IDEXX website, www.idexx.com/investors.
Solid global growth was achieved across IDEXX's testing modalities.
- IDEXX VetLab® consumables generated 7% reported and 8% organic revenue growth, with solid gains in the U.S. and continued double-digit organic gains internationally supported by strong installed base growth across premium instrument platforms.
- Reference laboratory diagnostic and consulting services generated 5% reported and 6% organic revenue growth, driven by solid U.S. gains and high single-digit organic growth in international regions.
- Rapid assay products revenues grew 6% as reported and organic, driven by solid gains in the U.S., supported by benefits from higher net price realization.
Veterinary software, services and diagnostic imaging systems revenues grew 12% as reported and 8% organically, driven by continued high levels of organic growth in software and diagnostic imaging recurring revenues and benefits from a recent software and data platform acquisition.
Water
Water revenues grew 9% as reported and 10% organic for the quarter, reflecting strong growth in the U.S. and Europe.
Livestock, Poultry and Dairy (“LPD”)
LPD revenues grew 1% as reported and 3% organically for the quarter. Solid gains in the U.S. and Europe were partially offset by lower Asia Pacific revenues, including impacts from reduced swine testing and herd health screening levels.
Gross Profit and Operating Profit
Gross profits increased 8% as reported and 9% on a comparable basis. Gross margin of 61.7% increased 100 basis points as reported and 90 basis points on a comparable basis, supported by benefits from net price realization offsetting inflationary cost impacts, software service margin gains and favorable business mix.
Operating margin was 26.3% for the quarter, lower than the prior year by 510 basis points including ~610 basis point negative impact from $62 million of expense related to a discrete litigation expense accrual. On a comparable basis excluding this item and foreign exchange effects, operating margins increased 110 basis points. Operating margin results reflect 28% operating expense growth as reported and 7% on a comparable basis excluding expense related to the discrete litigation accrual.
2024 Growth and Financial Performance Outlook
The Company is updating its full year revenue growth guidance range to $3,885 million to $3,945 million, or reported growth of 6.2% - 7.8%, a reduction of $15 million at midpoint. This reflects an adjustment of ~1% at midpoint to full year estimates for organic revenue growth, which is now projected at 6.2% to 7.8%, reflecting recent trends in U.S. clinical visit levels. The updated guidance range includes ~$15 million of favorable impact from more recent foreign exchange estimates.
The Company updated its full year reported operating margin outlook to reflect consistent midpoint goals for comparable operating margin improvement and to incorporate the expenses related to an ongoing litigation matter. The Company's reported operating margin outlook is 28.7% - 29.0%, including ~160 basis points of impact related to the discrete litigation expense accrual. At midpoint, projected full year comparable operating profit margin expansion of 30 - 60 basis points includes a ~40 basis point negative growth impact from lapping a customer contract resolution payment in the first quarter of 2023.
The Company updated its EPS outlook range to $10.31 - $10.59, a reduction of $0.56 at midpoint, reflecting a $0.56 negative impact from a discrete litigation expense accrual. Adjustments to the organic revenue outlook were offset by $0.04 in favorable adjustments to foreign exchange estimates and favorable refinements to interest expense and effective tax rate estimates. The updated EPS growth outlook is 2% - 5% as reported and 9% - 12% on comparable basis, including a ~2% negative growth impact from lapping a customer contract resolution payment in the first quarter of 2023.
The following table provides the Company's updated outlook for annual key financial metrics in 2024 with a comparison to the prior outlook:
Amounts in millions except per share data and percentages
2024 Growth and Financial Performance Outlook |
|
|
|
|
|
|
|
|
|
|
Updated |
|
Prior |
||||
Revenue |
|
$3,885 |
- |
$3,945 |
|
$3,895 |
- |
$3,965 |
Reported growth |
|
6.2% |
- |
7.8% |
|
6.5% |
- |
8.5% |
Organic growth |
|
6.2% |
- |
7.8% |
|
7.0% |
- |
9.0% |
CAG Diagnostics Recurring Revenue Growth |
|
|
|
|
|
|
|
|
Reported growth |
|
5.7% |
- |
7.3% |
|
6.5% |
- |
8.5% |
Organic growth |
|
6.2% |
- |
7.8% |
|
7.5% |
- |
9.5% |
Operating Margin |
|
28.7% |
- |
29.0% |
|
30.2% |
- |
30.7% |
Operating margin expansion |
|
(130 bps) |
- |
(100 bps) |
|
20 bps |
- |
70 bps |
Negative impact of ongoing litigation matter |
|
~160 bps |
|
|
||||
Comparable margin expansion |
|
30 bps |
- |
60 bps |
|
20 bps |
- |
70 bps |
Negative impact of 2023 customer contract resolution payment |
|
~ 40 bps |
|
~ 40 bps |
||||
EPS |
|
$10.31 |
- |
$10.59 |
|
$10.82 |
- |
$11.20 |
Reported growth |
|
2% |
- |
5% |
|
8% |
- |
11% |
Negative impact of ongoing litigation matter |
|
~ 6% |
|
|
||||
Comparable growth |
|
9% |
- |
12% |
|
9% |
- |
13% |
Negative impact of 2023 customer contract resolution payment |
|
~ 2% |
|
~ 2% |
||||
Other Key Metrics |
|
|
|
|
|
|
|
|
Net interest expense |
|
~ $20 |
|
~ $21 |
||||
Share-based compensation tax benefit |
|
~ $10 |
|
~ $10 |
||||
Share-based compensation tax rate benefit |
|
~ 1% |
|
~ 1% |
||||
Effective tax rate |
|
~ 21.5% |
|
~ 22% |
||||
Share-based compensation EPS impact |
|
~ $0.12 |
|
~ $0.12 |
||||
Reduction in average shares outstanding |
|
0.5% |
- |
1% |
|
0.5% |
- |
1% |
Operating Cash Flow (% of Net Income) |
|
110% - 115% |
|
110% - 115% |
||||
Free Cash Flow (% of Net Income) |
|
90% - 95% |
|
90% - 95% |
||||
Capital Expenditures |
|
~ $180 million |
|
~ $180 million |
||||
The following table outlines estimates of foreign currency exchange rate impacts, net of foreign currency hedging transactions, and foreign currency exchange rate assumptions reflected in the above financial performance outlook for 2024.
Estimated Foreign Currency Exchange Rate Impacts |
|
2024 |
||
|
|
|
|
|
Revenue growth rate impact |
|
(~ 50 bps) |
||
CAG Diagnostics recurring revenue growth rate impact |
|
(~ 50 bps) |
||
Operating margin growth impact |
|
~ 0 bps |
||
EPS impact |
|
(~ $0.05) |
||
EPS growth impact |
|
(~ 1%) |
||
|
|
|
|
|
Go-Forward Foreign Currency Exchange Rate Assumptions |
|
2024 |
||
In U.S. dollars |
|
|
|
|
euro |
|
$1.07 |
||
British pound |
|
$1.26 |
||
Canadian dollar |
|
$0.72 |
||
Australian dollar |
|
$0.66 |
||
Relative to the U.S. dollar |
|
|
|
|
Japanese yen |
|
¥163 |
||
Chinese renminbi |
|
¥7.38 |
||
Brazilian real |
|
R$5.55 |
||
Conference Call and Webcast Information
IDEXX Laboratories, Inc. will be hosting a conference call today at 9:00 a.m. (EDT) to discuss its second quarter 2024 results and management’s outlook. To participate in the conference call, dial 1-800-289-0459 or 1-773-305-6837 and reference passcode 399723. 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. (EDT) on that day via the same link and will remain available for one year.
2024 Investor Day
IDEXX Laboratories, Inc. will host its 2024 Investor Day on Thursday, August 15, 2024 from 8:00 am to approximately 12:00 pm (EDT). A live audio webcast and accompanying slide presentations will be available at www.idexx.com/investors. An archived webcast replay of the event will be available approximately one hour following the event at www.idexx.com/investors. For additional information contact investorrelations@idexx.com.
About IDEXX Laboratories, Inc.
IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help ensure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500® Index. Headquartered in Maine, IDEXX employs approximately 11,000 people and offers solutions and products to customers in more than 175 countries and territories. For more information about IDEXX, visit www.idexx.com.
Note Regarding Forward-Looking Statements
This earnings release and the statements to be made in the accompanying earnings conference call contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements about the Company’s business prospects and estimates of the Company’s financial results for future periods. Forward-looking statements are included above under "2024 Growth and Financial Performance 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 expectations regarding financial performance; revenue growth and EPS outlooks; operating and free cash flow forecast; projected impact of foreign currency exchange rates and interest rates; projected operating margins and expenses and capital expenditures; projected tax, tax rate and EPS benefits from share-based compensation arrangements; projected effective tax rates, reduction of average shares outstanding and net interest expense; U.S. clinical visit trends; net price realization improvement; product launches; and the ongoing litigation matter. These statements are intended to provide management's expectation of future events as of the date of this earnings release; are based on management's estimates, projections, beliefs, and assumptions as of the date of this earnings release; and are not guarantees of future performance. These forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, among other things, the matters described under the headings "Business," "Risk Factors," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in the corresponding sections of the Company's Quarterly Reports on Form 10-Q for the quarter ended March 31, 2024 and June 30, 2024, as well as those described from time to time in the Company’s other filings with the U.S. Securities and Exchange Commission available at www.sec.gov. The Company specifically disclaims any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Statement Regarding Non-GAAP Financial Measures
The following defines terms and conventions and provides reconciliations 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.
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 impacted second quarter 2024 results as follows: decreased gross profit growth by 0.7%, increased gross margin growth by 10 basis points, decreased operating expense growth by 0.4%, decreased operating profit growth by 0.9%, decreased operating profit margin growth by 10 basis points, and decreased EPS growth by 0.7%. 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 and six months ended June 30, 2024 and refer to the 2024 Growth and Financial Performance Outlook section of this earnings release for estimated foreign currency exchange rate impacts on 2024 projections and estimates.
Growth and organic revenue growth - All references to growth and organic growth refer to growth compared to the equivalent prior year period unless specifically noted. Organic revenue growth is a non-GAAP financial measure that represents the percent change in revenue, as compared to the same period for the prior year, net of the impact of changes in foreign currency exchange rates, certain business acquisitions, and divestitures. 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 should be considered in addition to, and not as a replacement of or a superior measure to, revenue growth reported in accordance with GAAP. See the supplementary analysis of results below for a reconciliation of reported revenue growth to organic revenue growth for the three and six months ended June 30, 2024. Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. Please refer to the 2024 Growth and Financial Performance Outlook section of this earnings release for estimated full year 2024 organic revenue growth for the Company and CAG Diagnostics recurring revenue growth. The percentage change in revenue resulting from acquisitions represents revenues during the current year period, limited to the initial 12 months from the date of the acquisition, that are directly attributable to business acquisitions. Revenue from acquisitions is not expected to have benefit projected full year 2024 revenue growth by 0.5% and have no impact on CAG Diagnostics recurring revenue growth.
Comparable growth metrics - Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) are non-GAAP financial measures and exclude the impact of changes in foreign currency exchange rates and non-recurring or unusual items (if any). Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. Management believes that reporting comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) provides useful information to investors because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding key metrics used by management. Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) should be considered in addition to, and not as replacements of or superior measures to, gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain reported in accordance with GAAP.
The reconciliation of these non-GAAP financial measures is as follows:
|
|
Three Months Ended |
Year-over-Year |
|
Six Months Ended |
Year-over-Year |
||||||||||||||
|
|
June 30, |
|
June 30, |
Change |
|
June 30, |
|
June 30, |
Change |
||||||||||
Dollar amounts in thousands |
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
||||||||||
Gross Profit (as reported) |
|
$ |
619,159 |
|
|
$ |
572,850 |
|
8% |
|
$ |
1,212,229 |
|
|
$ |
1,115,821 |
|
9% |
||
Gross margin |
|
|
61.7 |
% |
|
|
60.7 |
% |
100 bps |
|
|
61.6 |
% |
|
|
60.5 |
% |
110 bps |
||
Less: comparability adjustments |
|
|
|
|
|
|
|
|
|
|
||||||||||
Change from currency |
|
|
(3,777 |
) |
|
|
— |
|
|
|
|
(3,121 |
) |
|
|
— |
|
|
||
Comparable gross profit growth |
|
$ |
622,936 |
|
|
$ |
572,850 |
|
9% |
|
$ |
1,215,350 |
|
|
$ |
1,115,821 |
|
9% |
||
Comparable gross margin and gross margin gain (or growth) |
|
|
61.6 |
% |
|
|
60.7 |
% |
90 bps |
|
|
61.6 |
% |
|
|
60.5 |
% |
100 bps |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses (as reported) |
|
$ |
355,358 |
|
|
$ |
276,706 |
|
28% |
|
$ |
649,470 |
|
|
$ |
539,278 |
|
20% |
||
Less: comparability adjustments |
|
|
|
|
|
|
|
|
|
|
||||||||||
Change from currency |
|
|
(1,164 |
) |
|
|
— |
|
|
|
|
(305 |
) |
|
|
— |
|
|
||
Ongoing litigation matter |
|
|
61,500 |
|
|
|
— |
|
|
|
|
61,500 |
|
|
|
— |
|
|
||
Comparable operating expense growth |
|
$ |
295,022 |
|
|
$ |
276,706 |
|
7% |
|
$ |
588,275 |
|
|
$ |
539,278 |
|
9% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from operations (as reported) |
|
$ |
263,801 |
|
|
$ |
296,144 |
|
(11)% |
|
$ |
562,759 |
|
|
$ |
576,543 |
|
(2)% |
||
Operating margin |
|
|
26.3 |
% |
|
|
31.4 |
% |
(510) bps |
|
|
28.6 |
% |
|
|
31.3 |
% |
(270) bps |
||
Less: comparability adjustments |
|
|
|
|
|
|
|
|
|
|
||||||||||
Change from currency |
|
|
(2,613 |
) |
|
|
— |
|
|
|
|
(2,816 |
) |
|
|
— |
|
|
||
Ongoing litigation matter |
|
|
(61,500 |
) |
|
|
— |
|
|
|
|
(61,500 |
) |
|
|
— |
|
|
||
Comparable operating profit growth |
|
$ |
327,914 |
|
|
$ |
296,144 |
|
11% |
|
$ |
627,075 |
|
|
$ |
576,543 |
|
9% |
||
Comparable operating margin and operating margin gain (or growth) |
|
|
32.4 |
% |
|
|
31.4 |
% |
110 bps |
|
|
31.8 |
% |
|
|
31.3 |
% |
50 bps |
||
Amounts presented may not recalculate due to rounding. |
||||||||||||||||||||
Projected 2024 comparable operating margin expansion outlined in the 2024 Growth and Financial Performance Outlook section of this earnings release reflects: (i) projected full year 2024 reported operating margin is adjusted for impacts of the discrete expense accrual related to an ongoing litigation matter in the second quarter of 2024; and (ii) projected full year 2024 reported operating margin includes an immaterial impact from year-over-year foreign currency exchange rate changes at noted exchange rates.
These impacts described above reconcile reported gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain (including projected 2024 operating margin expansion) to comparable gross profit growth, comparable gross margin gain, comparable operating expense growth, comparable operating profit growth and comparable operating margin gain for the Company.
Comparable EPS growth - Comparable EPS growth is a non-GAAP financial measure that represents the percentage change in earnings per share (diluted) ("EPS") for a measurement period, as compared to the prior base period, net of the impact of changes in foreign currency exchange rates from the prior base period and excluding the tax benefits of share-based compensation activity under ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, and non-recurring or unusual items (if any). Management believes comparable EPS growth is a more useful way to measure the Company’s business performance than EPS growth because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding a key metric used by management. Comparable EPS growth should be considered in addition to, and not as a replacement of or a superior measure to, EPS growth reported in accordance with GAAP. Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts.
The reconciliation of this non-GAAP financial measure is as follows:
|
|
Three Months Ended |
|
Year-over-Year |
|
Six Months Ended |
|
Year-over-Year |
||||||||||||
|
|
June 30, |
|
June 30, |
|
Growth |
|
June 30, |
|
June 30, |
|
Growth |
||||||||
|
|
2024 |
|
2023 |
|
|
|
2024 |
|
2023 |
|
|
||||||||
Earnings per share (diluted) |
|
$ |
2.44 |
|
|
$ |
2.67 |
|
(9)% |
|
$ |
5.24 |
|
|
$ |
5.22 |
|
—% |
||
Less: comparability adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Share-based compensation activity |
|
|
0.00 |
|
|
|
0.04 |
|
|
|
|
0.10 |
|
|
|
0.10 |
|
|
||
Ongoing litigation matter |
|
|
(0.56 |
) |
|
|
— |
|
|
|
|
(0.56 |
) |
|
|
— |
|
|
||
Change from currency |
|
|
(0.02 |
) |
|
|
— |
|
|
|
|
(0.03 |
) |
|
|
— |
|
|
||
Comparable EPS growth |
|
|
3.02 |
|
|
|
2.63 |
|
15% |
|
|
5.73 |
|
|
|
5.12 |
|
12% |
||
Amounts presented may not recalculate due to rounding. |
||||||||||||||||||||
Projected 2024 comparable EPS growth outlined in the 2024 Growth and Financial Performance Outlook section of this earnings release reflects adjustments to projected full year 2024 reported EPS for: (i) estimated positive share-based compensation activity of ~$0.12; (ii) a negative $0.56 impact from a discrete expense accrual related to an ongoing litigation matter in the second quarter of 2024; and (iii) estimated negative year-over-year foreign currency exchange rate change impact of ~$0.05 at noted exchange rates.
These impacts and those described in the constant currency note above reconcile reported EPS growth (including projected 2024 reported EPS growth) to comparable EPS growth for the Company.
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, 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. Free cash flow should be considered in addition to, and not as a replacement of or a superior measure to, net cash provided by operating activities. See the supplementary analysis of results below for our calculation of free cash flow for the three and six months ended June 30, 2024 and 2023. To estimate projected 2024 free cash flow, we have deducted projected purchases of property and equipment (also referred to as capital expenditures) of approximately $180. Free cash flow conversion, or the net income to free cash flow ratio, is a non-GAAP financial measure that is defined as free cash flow, with respect to a measurement period, divided by net income for the same period. To calculate trailing twelve-month net income to free cash flow ratio for the twelve months ended June 30, 2024, we have deducted purchases of property and equipment of approximately $130 million from net cash provided from operating activities of approximately $969 million, divided by net income of approximately $846 million.
Debt to Adjusted EBITDA (Leverage Ratios) - Adjusted EBITDA, gross debt, and net debt are non-GAAP financial measures. Adjusted EBITDA is a non-GAAP financial measure of earnings before interest, taxes, depreciation, amortization, non-recurring transaction
expenses incurred in connection with acquisitions, share-based compensation expense, and certain other non-cash losses and charges. Management believes that reporting Adjusted EBITDA, gross debt, and net debt in the Debt to Adjusted EBITDA ratios provides
supplemental analysis to help investors further evaluate the Company's business performance and available borrowing capacity under
the Company's credit facility. Adjusted EBITDA, gross debt, and net debt should be considered in addition to, and not as replacements of or superior measures to, net income or total debt reported in accordance with GAAP. For further information on how Adjusted EBITDA and the Debt to Adjusted EBITDA Ratios are calculated, see the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.
Notes and Definitions
Discrete litigation expense accrual - During the second quarter of 2024, the Company increased its previously established $27.5 million accrual related to an ongoing litigation matter by $61.5 million.
Ongoing litigation matter - The Company is a defendant in an ongoing litigation matter involving an alleged breach of contract for underpayment of royalty payments made from 2004 through 2017 under an expired patent license agreement. The Company's total accrual of $89.0 million for this matter includes the discrete $61.5 million litigation expense accrual recorded in the second quarter of 2024 and represents our best estimate of the amount of the probable loss. The actual loss associated with this matter may be higher or lower than the accrued amount depending on the ultimate outcome of this matter. For further information, see the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.
IDEXX Laboratories, Inc. and Subsidiaries |
|
|
|
|
|
|
|
|||||||
Condensed 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, |
||||
|
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Revenue: |
|
Revenue |
|
$1,003,578 |
|
|
$943,630 |
|
|
$1,967,673 |
|
|
$1,843,825 |
|
Expenses and Income: |
|
Cost of revenue |
|
384,419 |
|
|
370,780 |
|
|
755,444 |
|
|
728,004 |
|
|
|
Gross profit |
|
619,159 |
|
|
572,850 |
|
|
1,212,229 |
|
|
1,115,821 |
|
|
|
Sales and marketing |
|
142,665 |
|
|
140,532 |
|
|
292,118 |
|
|
288,336 |
|
|
|
General and administrative |
|
157,243 |
|
|
89,669 |
|
|
249,267 |
|
|
159,770 |
|
|
|
Research and development |
|
55,450 |
|
|
46,505 |
|
|
108,085 |
|
|
91,172 |
|
|
|
Income from operations |
|
263,801 |
|
|
296,144 |
|
|
562,759 |
|
|
576,543 |
|
|
|
Interest expense, net |
|
(4,745 |
) |
|
(10,215 |
) |
|
(8,224 |
) |
|
(22,926 |
) |
|
|
Income before provision for income taxes |
|
259,056 |
|
|
285,929 |
|
|
554,535 |
|
|
553,617 |
|
|
|
Provision for income taxes |
|
55,758 |
|
|
61,693 |
|
|
115,658 |
|
|
115,327 |
|
Net Income: |
|
Net income attributable to stockholders |
|
$203,298 |
|
|
$224,236 |
|
|
$438,877 |
|
|
$438,290 |
|
|
|
Earnings per share: Basic |
|
$2.46 |
|
|
$2.70 |
|
|
$5.30 |
|
|
$5.28 |
|
|
|
Earnings per share: Diluted |
|
$2.44 |
|
|
$2.67 |
|
|
$5.24 |
|
|
$5.22 |
|
|
|
Shares outstanding: Basic |
|
82,630 |
|
|
83,086 |
|
|
82,863 |
|
|
83,039 |
|
|
|
Shares outstanding: Diluted |
|
83,393 |
|
|
83,983 |
|
|
83,684 |
|
|
83,980 |
|
IDEXX Laboratories, Inc. and Subsidiaries |
|
|
|
|
|
|
|
|||
Selected Operating Information (Unaudited) |
|
|
|
|
|
|
|
|||
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
|
2024 |
|
2023 |
2024 |
|
2023 |
|
Operating Ratios |
|
Gross profit |
|
61.7% |
|
60.7% |
|
61.6% |
|
60.5% |
(as a percentage of revenue): |
|
Sales, marketing, general and administrative expense |
|
29.9% |
|
24.4% |
|
27.5% |
|
24.3% |
|
|
Research and development expense |
|
5.5% |
|
4.9% |
|
5.5% |
|
4.9% |
|
|
Income from operations1 |
|
26.3% |
|
31.4% |
|
28.6% |
|
31.3% |
|
|
|
|
|
|
|
|
|
|
|
1Amounts presented may not recalculate due to rounding. |
|
|
|
|
|
|
|
|||
IDEXX Laboratories, Inc. and Subsidiaries |
||||||||||||||
Segment Information |
||||||||||||||
Amounts in thousands (Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
Three Months Ended |
||||||||||
|
|
|
|
June 30, 2024 |
|
Percent of Revenue |
|
June 30, 2023 |
|
Percent of Revenue |
||||
|
|
|
|
|||||||||||
Revenue: |
|
CAG |
|
$922,298 |
|
|
|
$866,652 |
|
|
|
|||
|
|
Water |
|
46,726 |
|
|
|
43,029 |
|
|
|
|||
|
|
LPD |
|
30,306 |
|
|
|
29,911 |
|
|
|
|||
|
|
Other |
|
4,248 |
|
|
|
4,038 |
|
|
|
|||
|
|
Total |
|
$1,003,578 |
|
|
|
$943,630 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||
Gross Profit: |
|
CAG |
|
$569,071 |
|
61.7 |
% |
|
$525,709 |
|
|
60.7 |
% |
|
|
|
Water |
|
32,074 |
|
68.6 |
% |
|
30,319 |
|
|
70.5 |
% |
|
|
|
LPD |
|
15,558 |
|
51.3 |
% |
|
16,086 |
|
|
53.8 |
% |
|
|
|
Other |
|
2,456 |
|
57.8 |
% |
|
736 |
|
|
18.2 |
% |
|
|
|
Total |
|
$619,159 |
|
61.7 |
% |
|
$572,850 |
|
|
60.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from Operations: |
|
CAG |
|
$241,550 |
|
26.2 |
% |
|
$275,509 |
|
|
31.8 |
% |
|
|
|
Water |
|
20,504 |
|
43.9 |
% |
|
19,820 |
|
|
46.1 |
% |
|
|
|
LPD |
|
1,499 |
|
4.9 |
% |
|
1,951 |
|
|
6.5 |
% |
|
|
|
Other |
|
248 |
|
5.8 |
% |
|
(1,136 |
) |
|
(28.1 |
)% |
|
|
|
Total |
|
$263,801 |
|
26.3 |
% |
|
$296,144 |
|
|
31.4 |
% |
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
Six Months Ended |
||||||||||
|
|
|
|
June 30, 2024 |
|
Percent of Revenue |
|
June 30, 2023 |
|
Percent of Revenue |
||||
|
|
|
|
|
|
|
||||||||
Revenue: |
|
CAG |
|
$1,811,583 |
|
|
|
|
$1,693,931 |
|
|
|
||
|
|
Water |
|
89,797 |
|
|
|
|
81,912 |
|
|
|
||
|
|
LPD |
|
58,511 |
|
|
|
|
59,119 |
|
|
|
||
|
|
Other |
|
7,782 |
|
|
|
|
8,863 |
|
|
|
||
|
|
Total |
|
$1,967,673 |
|
|
|
|
$1,843,825 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Gross Profit: |
|
CAG |
|
$1,115,307 |
|
|
61.6 |
% |
|
$1,024,466 |
|
|
60.5 |
% |
|
|
Water |
|
62,571 |
|
|
69.7 |
% |
|
57,587 |
|
|
70.3 |
% |
|
|
LPD |
|
30,792 |
|
|
52.6 |
% |
|
31,139 |
|
|
52.7 |
% |
|
|
Other |
|
3,559 |
|
|
45.7 |
% |
|
2,629 |
|
|
29.7 |
% |
|
|
Total |
|
$1,212,229 |
|
|
61.6 |
% |
|
$1,115,821 |
|
|
60.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||
Income from Operations: |
|
CAG |
|
$521,246 |
|
|
28.8 |
% |
|
$537,259 |
|
|
31.7 |
% |
|
|
Water |
|
39,934 |
|
|
44.5 |
% |
|
36,791 |
|
|
44.9 |
% |
|
|
LPD |
|
2,365 |
|
|
4.0 |
% |
|
3,259 |
|
|
5.5 |
% |
|
|
Other |
|
(786 |
) |
|
(10.1 |
)% |
|
(766 |
) |
|
(8.6 |
)% |
|
|
Total |
|
$562,759 |
|
|
28.6 |
% |
|
$576,543 |
|
|
31.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
June 30, 2024 |
|
June 30, 2023 |
|
Dollar
|
|
Reported
|
|
Percentage
|
|
Percentage
|
|
Organic
|
|||||
Net Revenue |
|
|
|
|
|
|
|
||||||||||||
CAG |
|
$922,298 |
|
$866,652 |
|
$55,646 |
|
|
6.4 |
% |
|
(0.7 |
%) |
|
0.4 |
% |
|
6.7 |
% |
United States |
|
628,684 |
|
594,395 |
|
34,289 |
|
|
5.8 |
% |
|
— |
|
|
0.5 |
% |
|
5.2 |
% |
International |
|
293,614 |
|
272,257 |
|
21,357 |
|
|
7.8 |
% |
|
(2.2 |
%) |
|
— |
|
|
10.1 |
% |
Water |
|
46,726 |
|
43,029 |
|
3,697 |
|
|
8.6 |
% |
|
(0.9 |
%) |
|
— |
|
|
9.5 |
% |
United States |
|
24,461 |
|
21,208 |
|
3,253 |
|
|
15.3 |
% |
|
— |
|
|
— |
|
|
15.3 |
% |
International |
|
22,265 |
|
21,821 |
|
444 |
|
|
2.0 |
% |
|
(1.8 |
%) |
|
— |
|
|
3.8 |
% |
LPD |
|
30,306 |
|
29,911 |
|
395 |
|
|
1.3 |
% |
|
(1.6 |
%) |
|
— |
|
|
2.9 |
% |
United States |
|
5,115 |
|
4,422 |
|
693 |
|
|
15.7 |
% |
|
— |
|
|
— |
|
|
15.7 |
% |
International |
|
25,191 |
|
25,489 |
|
(298 |
) |
|
(1.2 |
%) |
|
(1.8 |
%) |
|
— |
|
|
0.7 |
% |
Other |
|
4,248 |
|
4,038 |
|
210 |
|
|
5.2 |
% |
|
— |
|
|
— |
|
|
5.2 |
% |
Total Company |
|
$1,003,578 |
|
$943,630 |
|
$59,948 |
|
|
6.4 |
% |
|
(0.7 |
%) |
|
0.3 |
% |
|
6.7 |
% |
United States |
|
660,146 |
|
621,607 |
|
38,539 |
|
|
6.2 |
% |
|
— |
|
|
0.5 |
% |
|
5.7 |
% |
International |
|
343,432 |
|
322,023 |
|
21,409 |
|
|
6.6 |
% |
|
(2.1 |
%) |
|
— |
|
|
8.8 |
% |
|
|||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
June 30, 2024 |
|
June 30, 2023 |
|
Dollar
|
|
Reported
|
|
Percentage
|
|
Percentage
|
|
Organic
|
|||||
Net CAG Revenue |
|
|
|
|
|
|
|
||||||||||||
CAG Diagnostics recurring revenue: |
|
$808,454 |
|
$762,476 |
|
$45,978 |
|
|
6.0 |
% |
|
(0.7 |
%) |
|
— |
|
|
6.7 |
% |
IDEXX VetLab consumables |
|
325,348 |
|
303,735 |
|
21,613 |
|
|
7.1 |
% |
|
(1.0 |
%) |
|
— |
|
|
8.1 |
% |
Rapid assay products |
|
103,290 |
|
97,340 |
|
5,950 |
|
|
6.1 |
% |
|
(0.4 |
%) |
|
— |
|
|
6.5 |
% |
Reference laboratory diagnostic and consulting services |
|
347,373 |
|
330,106 |
|
17,267 |
|
|
5.2 |
% |
|
(0.5 |
%) |
|
— |
|
|
5.8 |
% |
CAG Diagnostics services and accessories |
|
32,443 |
|
31,295 |
|
1,148 |
|
|
3.7 |
% |
|
(1.0 |
%) |
|
— |
|
|
4.7 |
% |
CAG Diagnostics capital – instruments |
|
35,292 |
|
34,054 |
|
1,238 |
|
|
3.6 |
% |
|
(1.2 |
%) |
|
— |
|
|
4.8 |
% |
Veterinary software, services and diagnostic imaging systems: |
|
78,552 |
|
70,122 |
|
8,430 |
|
|
12.0 |
% |
|
(0.1 |
%) |
|
4.5 |
% |
|
7.6 |
% |
Recurring revenue |
|
63,117 |
|
53,725 |
|
9,392 |
|
|
17.5 |
% |
|
(0.1 |
%) |
|
5.9 |
% |
|
11.7 |
% |
Systems and hardware |
|
15,435 |
|
16,397 |
|
(962 |
) |
|
(5.9 |
%) |
|
(0.1 |
%) |
|
— |
|
|
(5.8 |
%) |
Net CAG revenue |
|
$922,298 |
|
$866,652 |
|
$55,646 |
|
|
6.4 |
% |
|
(0.7 |
%) |
|
0.4 |
% |
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
June 30, 2024 |
|
June 30, 2023 |
|
Dollar
|
|
Reported
|
|
Percentage
|
|
Percentage
|
|
Organic
|
|||
|
|
|
|
|
|
|
|
||||||||||
CAG Diagnostics recurring revenue: |
|
$808,454 |
|
$762,476 |
|
$45,978 |
|
6.0 |
% |
|
(0.7 |
%) |
|
— |
|
6.7 |
% |
United States |
|
544,466 |
|
517,388 |
|
27,078 |
|
5.2 |
% |
|
— |
|
|
— |
|
5.2 |
% |
International |
|
263,988 |
|
245,088 |
|
18,900 |
|
7.7 |
% |
|
(2.2 |
%) |
|
— |
|
10.0 |
% |
1See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding. |
|||||||||||||||||
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 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
June 30, 2024 |
|
June 30, 2023 |
|
Dollar
|
|
Reported
|
|
Percentage
|
|
Percentage
|
|
Organic
|
|||||
Net Revenue |
|
|
|
|
|
|
|
||||||||||||
CAG |
|
$1,811,583 |
|
$1,693,931 |
|
$117,652 |
|
|
6.9 |
% |
|
(0.3 |
%) |
|
0.3 |
% |
|
7.0 |
% |
United States |
|
1,230,879 |
|
1,158,922 |
|
71,957 |
|
|
6.2 |
% |
|
— |
|
|
0.5 |
% |
|
5.7 |
% |
International |
|
580,704 |
|
535,009 |
|
45,695 |
|
|
8.5 |
% |
|
(1.1 |
%) |
|
— |
|
|
9.7 |
% |
Water |
|
89,797 |
|
81,912 |
|
7,885 |
|
|
9.6 |
% |
|
(0.4 |
%) |
|
— |
|
|
10.0 |
% |
United States |
|
46,660 |
|
41,128 |
|
5,532 |
|
|
13.5 |
% |
|
— |
|
|
— |
|
|
13.5 |
% |
International |
|
43,137 |
|
40,784 |
|
2,353 |
|
|
5.8 |
% |
|
(0.8 |
%) |
|
— |
|
|
6.6 |
% |
LPD |
|
58,511 |
|
59,119 |
|
(608 |
) |
|
(1.0 |
%) |
|
(0.8 |
%) |
|
— |
|
|
(0.2 |
%) |
United States |
|
10,279 |
|
8,965 |
|
1,314 |
|
|
14.7 |
% |
|
— |
|
|
— |
|
|
14.7 |
% |
International |
|
48,232 |
|
50,154 |
|
(1,922 |
) |
|
(3.8 |
%) |
|
(1.0 |
%) |
|
— |
|
|
(2.9 |
%) |
Other |
|
7,782 |
|
8,863 |
|
(1,081 |
) |
|
(12.2 |
%) |
|
— |
|
|
— |
|
|
(12.2 |
%) |
Total Company |
|
$1,967,673 |
|
$1,843,825 |
|
$123,848 |
|
|
6.7 |
% |
|
(0.4 |
%) |
|
0.3 |
% |
|
6.8 |
% |
United States |
|
1,291,155 |
|
1,212,020 |
|
79,135 |
|
|
6.5 |
% |
|
— |
|
|
0.4 |
% |
|
6.1 |
% |
International |
|
676,518 |
|
631,805 |
|
44,713 |
|
|
7.1 |
% |
|
(1.1 |
%) |
|
— |
|
|
8.1 |
% |
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
June 30, 2024 |
|
June 30, 2023 |
|
Dollar
|
|
Reported
|
|
Percentage
|
|
Percentage
|
|
Organic
|
|||||
Net CAG Revenue |
|
|
|
|
|
|
|
||||||||||||
CAG Diagnostics recurring revenue: |
|
$1,588,598 |
|
$1,489,378 |
|
$99,220 |
|
|
6.7 |
% |
|
(0.3 |
%) |
|
— |
|
|
7.0 |
% |
IDEXX VetLab consumables |
|
642,277 |
|
594,849 |
|
47,428 |
|
|
8.0 |
% |
|
(0.5 |
%) |
|
— |
|
|
8.5 |
% |
Rapid assay products |
|
189,605 |
|
179,372 |
|
10,233 |
|
|
5.7 |
% |
|
(0.2 |
%) |
|
— |
|
|
5.9 |
% |
Reference laboratory diagnostic and consulting services |
|
691,711 |
|
653,286 |
|
38,425 |
|
|
5.9 |
% |
|
(0.2 |
%) |
|
— |
|
|
6.1 |
% |
CAG Diagnostics services and accessories |
|
65,005 |
|
61,871 |
|
3,134 |
|
|
5.1 |
% |
|
(0.7 |
%) |
|
— |
|
|
5.7 |
% |
CAG Diagnostics capital – instruments |
|
69,384 |
|
67,198 |
|
2,186 |
|
|
3.3 |
% |
|
(0.8 |
%) |
|
— |
|
|
4.0 |
% |
Veterinary software, services and diagnostic imaging systems: |
|
153,601 |
|
137,355 |
|
16,246 |
|
|
11.8 |
% |
|
(0.1 |
%) |
|
3.9 |
% |
|
8.0 |
% |
Recurring revenue |
|
122,817 |
|
105,432 |
|
17,385 |
|
|
16.5 |
% |
|
(0.1 |
%) |
|
5.1 |
% |
|
11.5 |
% |
Systems and hardware |
|
30,784 |
|
31,923 |
|
(1,139 |
) |
|
(3.6 |
%) |
|
(0.1 |
%) |
|
— |
|
|
(3.5 |
%) |
Net CAG revenue |
|
$1,811,583 |
|
$1,693,931 |
|
$117,652 |
|
|
6.9 |
% |
|
(0.3 |
%) |
|
0.3 |
% |
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
June 30, 2024 |
|
June 30, 2023 |
|
Dollar
|
|
Reported
|
|
Percentage
|
|
Percentage
|
|
Organic
|
|||
|
|
|
|
|
|
|
|
||||||||||
CAG Diagnostics recurring revenue: |
|
$1,588,598 |
|
$1,489,378 |
|
$99,220 |
|
6.7 |
% |
|
(0.3 |
%) |
|
— |
|
7.0 |
% |
United States |
|
1,067,507 |
|
1,008,728 |
|
58,779 |
|
5.8 |
% |
|
— |
|
|
— |
|
5.8 |
% |
International |
|
521,091 |
|
480,650 |
|
40,441 |
|
8.4 |
% |
|
(1.1 |
%) |
|
— |
|
9.5 |
% |
1See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding. |
|||||||||||||||||
IDEXX Laboratories, Inc. and Subsidiaries |
||||||
Condensed Consolidated Balance Sheet |
||||||
Amounts in thousands (Unaudited) |
||||||
|
|
|
|
June 30, 2024 |
|
December 31, 2023 |
|
|
|
|
|
||
Assets: |
|
Current Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$401,590 |
|
$453,932 |
|
|
Accounts receivable, net |
|
533,606 |
|
457,445 |
|
|
Inventories |
|
379,958 |
|
380,282 |
|
|
Other current assets |
|
213,458 |
|
203,595 |
|
|
Total current assets |
|
1,528,612 |
|
1,495,254 |
|
|
Property and equipment, net |
|
708,178 |
|
702,177 |
|
|
Other long-term assets, net |
|
1,178,077 |
|
1,062,494 |
|
|
Total assets |
|
$3,414,867 |
|
$3,259,925 |
Liabilities and Stockholders' |
|
|
|
|
|
|
Equity: |
|
Current Liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$117,468 |
|
$110,643 |
|
|
Accrued liabilities |
|
541,124 |
|
478,712 |
|
|
Line of credit |
|
250,000 |
|
250,000 |
|
|
Current portion of long-term debt |
|
170,112 |
|
74,997 |
|
|
Deferred revenue |
|
37,998 |
|
37,195 |
|
|
Total current liabilities |
|
1,116,702 |
|
951,547 |
|
|
Long-term debt, net of current portion |
|
524,743 |
|
622,883 |
|
|
Other long-term liabilities, net |
|
193,169 |
|
200,965 |
|
|
Total long-term liabilities |
|
717,912 |
|
823,848 |
|
|
Total stockholders' equity |
|
1,580,253 |
|
1,484,530 |
|
|
Total liabilities and stockholders' equity |
|
$3,414,867 |
|
$3,259,925 |
IDEXX Laboratories, Inc. and Subsidiaries |
||||||||||||
Selected Balance Sheet Information (Unaudited) |
||||||||||||
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
Selected Balance Sheet Information: |
|
Days sales outstanding1 |
|
47.3 |
|
45.7 |
|
46.1 |
|
45.6 |
|
43.9 |
|
|
Inventory turns2 |
|
1.4 |
|
1.3 |
|
1.3 |
|
1.3 |
|
1.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 are calculated as the ratio of four times our inventory-related cost of product revenue for the quarter, divided by the average inventory balances at the beginning and end of each quarter. |
||||||||||||
IDEXX Laboratories, Inc. and Subsidiaries |
||||||||
Condensed Consolidated Statement of Cash Flows |
||||||||
Amounts in thousands (Unaudited) |
||||||||
|
|
|
|
Six Months Ended |
||||
|
|
|
|
June 30, 2024 |
|
June 30, 2023 |
||
|
|
|
|
|
||||
Operating: |
|
Cash Flows from Operating Activities: |
|
|
|
|
||
|
|
Net income |
|
$438,877 |
|
|
$438,290 |
|
|
|
Non-cash adjustments to net income |
|
75,155 |
|
|
76,246 |
|
|
|
Changes in assets and liabilities |
|
(67,135 |
) |
|
(130,310 |
) |
|
|
Net cash provided by operating activities |
|
446,897 |
|
|
384,226 |
|
Investing: |
|
Cash Flows from Investing Activities: |
|
|
|
|
||
|
|
Purchases of property and equipment |
|
(63,578 |
) |
|
(66,981 |
) |
|
|
Acquisition of a business |
|
(77,000 |
) |
|
— |
|
|
|
Proceeds from net investment hedges |
|
727 |
|
|
— |
|
|
|
Net cash used by investing activities |
|
(139,851 |
) |
|
(66,981 |
) |
Financing: |
|
Cash Flows from Financing Activities: |
|
|
|
|
||
|
|
Repayments under credit facility, net |
|
— |
|
|
(315,000 |
) |
|
|
Payments for the acquisition-related holdbacks |
|
— |
|
|
(1,780 |
) |
|
|
Repurchases of common stock |
|
(370,285 |
) |
|
— |
|
|
|
Proceeds from exercises of stock options and employee stock purchase plans |
|
26,241 |
|
|
23,086 |
|
|
|
Shares withheld for statutory tax withholding payments on restricted stock |
|
(10,268 |
) |
|
(9,676 |
) |
|
|
Other |
|
— |
|
|
6,256 |
|
|
|
Net cash used by financing activities |
|
(354,312 |
) |
|
(297,114 |
) |
|
|
Net effect of changes in exchange rates on cash |
|
(5,076 |
) |
|
161 |
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
(52,342 |
) |
|
20,292 |
|
|
|
Cash and cash equivalents, beginning of period |
|
453,932 |
|
|
112,546 |
|
|
|
Cash and cash equivalents, end of period |
|
$401,590 |
|
|
$132,838 |
|
IDEXX Laboratories, Inc. and Subsidiaries |
||||||||||||||
Free Cash Flow |
||||||||||||||
Amounts in thousands (Unaudited) |
||||||||||||||
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
||||
|
|
|
|
|
|
|
||||||||
Free Cash Flow: |
|
Net cash provided by operating activities |
|
$248,312 |
|
|
$200,314 |
|
|
$446,897 |
|
|
$384,226 |
|
|
|
Investing cash flows attributable to purchases of property and equipment |
|
(33,305 |
) |
|
(27,470 |
) |
|
(63,578 |
) |
|
(66,981 |
) |
|
|
Free cash flow1 |
|
$215,007 |
|
|
$172,844 |
|
|
$383,319 |
|
|
$317,245 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
1See Statements Regarding Non-GAAP Financial Measures, above. |
||||||||||||||
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,
|
|
|
|
|
|
||||
Shares repurchased in the open market |
|
415 |
|
— |
|
718 |
|
— |
Shares acquired through employee surrender for statutory tax withholding |
|
— |
|
— |
|
18 |
|
19 |
Total shares repurchased |
|
415 |
|
— |
|
736 |
|
19 |
|
|
|
|
|
|
|
|
|
Cost of shares repurchased in the open market |
|
$208,169 |
|
$— |
|
$375,271 |
|
$— |
Cost of shares for employee surrenders |
|
79 |
|
79 |
|
10,268 |
|
9,676 |
Total cost of shares |
|
$208,248 |
|
$79 |
|
$385,539 |
|
$9,676 |
|
|
|
|
|
|
|
|
|
Average cost per share – open market repurchases |
|
$501.44 |
|
$— |
|
$522.32 |
|
$— |
Average cost per share – employee surrenders |
|
$496.95 |
|
$469.84 |
|
$560.01 |
|
$503.35 |
Average cost per share – total |
|
$501.44 |
|
$469.84 |
|
$523.26 |
|
$503.35 |
