IDEXX Laboratories Announces Third Quarter Results
-
Achieves revenue growth of 19% on a reported basis and 18% on an organic basis driven by
Companion Animal Group Diagnostics recurring revenue growth of 23% reported and 21% organic - High revenue growth supported by sustained strong global recovery in the pet healthcare market
-
Delivers EPS of
$1.69 , representing 36% growth on a reported basis and 47% on a comparable constant currency basis, reflecting benefits from highCAG Diagnostics recurring revenue gains and proactive cost controls
Third Quarter Results
The Company reports revenues of
Earnings per diluted share ("EPS") was
"We are very pleased to report excellent third quarter financial results, which reflect impressive global growth in our CAG business and outstanding efforts by the
Market Trend and COVID-19 Pandemic Impact Update
Companion animal healthcare markets continued to build on the sharp V-shaped recovery seen in the second quarter globally.
Strong global companion animal market trends have supported exceptional demand for CAG diagnostic products and services.
These trends are encouraging and reflect the resilience of the pet healthcare market. Potential effects related to ongoing COVID-19 case management efforts are challenging to predict and may pressure future revenues should enhanced social distancing policies and higher infection rates impact veterinary clinic operations in certain regions.
In managing
Third Quarter Performance Highlights
- IDEXX VetLab® consumables generated 23% reported and 22% organic revenue growth, supported by ongoing expansion of our global premium instrument installed base, continued strong customer retention, increases in testing utilization and moderate net price gains.
-
Reference laboratory diagnostic and consulting services generated 24% reported and 21% organic revenue growth, led by growth in
U.S. markets benefiting from strong market growth including high demand for wellness testing, as well as moderate net price realization and benefits from net new customer additions. -
Rapid assay products revenues grew 20% on a reported and organic basis, led by high growth in SNAP® 4Dx® Plus sales volumes in
U.S. markets benefiting from strong overall market conditions including high demand for wellness testing.
Veterinary software, services and diagnostic imaging systems revenues grew 4% on a reported and organic basis, supported by double-digit growth in subscription-based service revenues and strong growth in new veterinary software system placements. Overall growth was moderated by declines in diagnostic imaging systems placements.
Water
Water revenues declined 5% on a reported basis and 4% on an organic basis for the quarter, reflecting continued pressures in non-compliance testing volumes impacted by the COVID-19 pandemic.
Livestock, Poultry and Dairy ("LPD")
LPD revenues grew 18% on a reported and organic basis, driven by strong growth in the
Gross Profit and Operating Profit
Gross profits increased 23% on a reported and constant currency basis. Gross margin of 58.5% increased 150 basis points compared to prior year period results on a reported basis and 200 basis points on a constant currency basis. Gross margin results reflected reference laboratory productivity gains on high revenue growth, favorable mix from strong consumable revenue and lower instrument revenue, as well as benefits from moderate price gains.
Operating margin was 23.8% in the quarter, 70 basis points higher than the prior year period results on a reported basis and 470 basis points higher on a comparable constant currency basis, supported by operating expense leverage on stronger than expected revenue growth. Operating expenses increased 22% on a reported basis, reflecting the
2020 and 2021 Financial Outlook
The Company is maintaining suspension of full-year 2020 guidance due to the unpredictability of potential future impacts from the COVID-19 pandemic and is not providing preliminary 2021 guidance at this time.
Conference Call and Webcast Information
About
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 "Third Quarter Results," "Market Trend and COVID-19 Pandemic Update" and "Gross Profit and Operating Profit" 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, among other things, the impact of the COVID-19 pandemic and the Company's planned future investments and operating expense growth. 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 adverse impact, and the duration, of the effects of the ongoing COVID-19 pandemic on our business, results of operations, liquidity, financial condition and stock price, as well as the other 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
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
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 third quarter 2020 results as follows: decreased gross profit growth by approximately 0.1%, decreased gross profit margin growth by 50 basis points, decreased operating expense growth by 0.2%, decreased operating profit margin growth by 20 basis points, and had an immaterial impact on EPS growth. Estimated currency changes also decreased 2020 EPS growth by 2% for the nine months ended
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 excludes the impact of changes in foreign currency exchange rates and revenue from certain business acquisitions. See the supplementary analysis of results below for a reconciliation of reported revenue growth to organic revenue growth for the three and nine months ended
Comparable constant currency operating expense growth, operating profit growth, and operating margin gain (or growth) - Comparable constant currency operating expense growth, operating profit growth, and operating profit 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). Management believes that reporting comparable constant currency operating expense growth, operating profit growth, and 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 constant currency operating expense growth, operating profit growth, and operating margin gain (or growth) should be considered in addition to, and not as replacements of or superior measures to, operating expense growth, operating profit growth, and operating margin gain reported in accordance with GAAP. Comparable constant currency operating expense growth, operating profit growth, and operating margin gain (or growth) exclude a
Comparable constant currency EPS growth - Comparable constant currency EPS growth is a non-GAAP financial measure that excludes the impact of changes in foreign currency exchange rates and the tax benefits of share-based compensation activity under ASU 2016-09 and non-recurring or unusual items (if any). Management believes comparable constant currency 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. Share-based compensation tax benefits increased third quarter 2020 EPS by
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. See the supplementary analysis of results below for our calculation of free cash flow for the nine months ended
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. For further information on how Adjusted EBITDA and the Debt to Adjusted EBITDA ratios are calculated, see the Company's Quarterly Report on Form 10-Q for the quarter ended
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Condensed Consolidated Statement of Operations |
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Amounts in thousands except per share data (Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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2020 |
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2019 |
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2020 |
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2019 |
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Revenue: |
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Revenue |
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Expenses and Income: |
|
Cost of revenue |
|
299,183 |
|
|
260,353 |
|
|
824,179 |
|
|
767,062 |
|
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Gross profit |
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422,606 |
|
|
344,950 |
|
|
1,161,538 |
|
|
1,034,400 |
|
|
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Sales and marketing |
|
108,202 |
|
|
104,551 |
|
|
318,526 |
|
|
312,499 |
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|
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General and administrative |
|
105,031 |
|
|
66,337 |
|
|
231,111 |
|
|
186,653 |
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|
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Research and development |
|
37,517 |
|
|
34,260 |
|
|
102,472 |
|
|
98,033 |
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|
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Income from operations |
|
171,856 |
|
|
139,802 |
|
|
509,429 |
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|
437,215 |
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|
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Interest expense, net |
|
(7,902) |
|
|
(7,004) |
|
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(24,880) |
|
|
(23,503) |
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Income before provision for income taxes |
|
163,954 |
|
|
132,798 |
|
|
484,549 |
|
|
413,712 |
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|
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Provision for income taxes |
|
17,633 |
|
|
23,960 |
|
|
77,376 |
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|
76,464 |
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Net Income: |
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Net income |
|
146,321 |
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|
108,838 |
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|
407,173 |
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|
337,248 |
|
|
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Less: Noncontrolling interest in subsidiary's earnings |
|
102 |
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1 |
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187 |
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24 |
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Net income attributable to stockholders |
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Earnings per share: Basic |
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Earnings per share: Diluted |
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Shares outstanding: Basic |
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85,314 |
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86,198 |
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85,293 |
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|
86,206 |
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|
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Shares outstanding: Diluted |
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86,690 |
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|
87,667 |
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|
86,635 |
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87,633 |
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Selected Operating Information (Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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Operating Ratios |
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Gross profit |
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58.5 |
% |
|
57.0 |
% |
|
58.5 |
% |
|
57.4 |
% |
(as a percentage of revenue): |
|
Sales, marketing, general and administrative expense |
|
29.5 |
% |
|
28.2 |
% |
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27.7 |
% |
|
27.7 |
% |
|
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Research and development expense |
|
5.2 |
% |
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5.7 |
% |
|
5.2 |
% |
|
5.4 |
% |
|
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Income from operations1 |
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23.8 |
% |
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23.1 |
% |
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25.7 |
% |
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24.3 |
% |
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1Amounts presented may not recalculate due to rounding. |
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Segment Information |
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Amounts in thousands (Unaudited) |
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Three Months Ended |
Three Months Ended |
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Percent of |
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Percent of |
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Revenue: |
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CAG |
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Water |
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33,272 |
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34,906 |
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LPD |
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36,971 |
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31,370 |
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Other |
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13,529 |
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5,897 |
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Total |
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Gross Profit 1 : |
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CAG |
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57.7 |
% |
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|
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56.0 |
% |
|
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Water |
|
23,064 |
|
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69.3 |
% |
25,389 |
|
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72.7 |
% |
|
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LPD |
|
22,768 |
|
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61.6 |
% |
18,169 |
|
|
57.9 |
% |
|
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Other |
|
8,477 |
|
|
62.7 |
% |
2,875 |
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|
48.8 |
% |
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Total |
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|
58.5 |
% |
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|
57.0 |
% |
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Income from |
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CAG |
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21.9 |
% |
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22.1 |
% |
|
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Water |
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15,243 |
|
|
45.8 |
% |
16,930 |
|
|
48.5 |
% |
|
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LPD |
|
10,505 |
|
|
28.4 |
% |
4,850 |
|
|
15.5 |
% |
|
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Other |
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6,674 |
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|
49.3 |
% |
331 |
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5.6 |
% |
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Total |
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23.8 |
% |
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23.1 |
% |
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Nine Months Ended |
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Nine Months Ended |
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Percent of |
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Percent of |
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Revenue: |
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CAG |
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Water |
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95,537 |
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|
99,980 |
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LPD |
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103,369 |
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|
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|
95,980 |
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Other |
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30,698 |
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16,105 |
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Total |
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Gross Profit 1 : |
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CAG |
|
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|
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57.6 |
% |
|
|
|
|
56.5 |
% |
|
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Water |
|
67,491 |
|
|
70.6 |
% |
|
72,397 |
|
|
72.4 |
% |
|
|
LPD |
|
63,919 |
|
|
61.8 |
% |
|
56,897 |
|
|
59.3 |
% |
|
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Other |
|
18,021 |
|
|
58.7 |
% |
|
7,624 |
|
|
47.3 |
% |
|
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Total |
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|
|
|
58.5 |
% |
|
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|
|
57.4 |
% |
|
|
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Income from |
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CAG |
|
|
|
|
24.3 |
% |
|
|
|
|
23.3 |
% |
|
|
Water |
|
43,383 |
|
|
45.4 |
% |
|
47,467 |
|
|
47.5 |
% |
|
|
LPD |
|
28,417 |
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|
27.5 |
% |
|
17,707 |
|
|
18.4 |
% |
|
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Other |
|
11,567 |
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|
37.7 |
% |
|
1,441 |
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8.9 |
% |
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Total |
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25.7 |
% |
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|
24.3 |
% |
1 Effective |
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Revenues and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets |
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Amounts in thousands (Unaudited) |
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Three Months Ended |
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Dollar |
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Reported |
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Percentage |
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Percentage |
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Organic |
|||||||
Net Revenue |
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CAG |
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19.7 |
% |
|
1.0 |
% |
|
0.7 |
% |
|
18.0 |
% |
|
|
428,105 |
|
|
357,810 |
|
|
70,295 |
|
|
19.6 |
% |
|
— |
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|
1.1 |
% |
|
18.6 |
% |
International |
|
209,912 |
|
|
175,320 |
|
|
34,592 |
|
|
19.7 |
% |
|
2.9 |
% |
|
— |
|
|
16.8 |
% |
Water |
|
33,272 |
|
|
34,906 |
|
|
(1,634) |
|
|
(4.7) |
% |
|
(0.7) |
% |
|
— |
|
|
(4.0) |
% |
|
|
16,634 |
|
|
16,794 |
|
|
(160) |
|
|
(1.0) |
% |
|
— |
|
|
— |
|
|
(1.0) |
% |
International |
|
16,638 |
|
|
18,112 |
|
|
(1,474) |
|
|
(8.1) |
% |
|
(1.2) |
% |
|
— |
|
|
(6.9) |
% |
LPD |
|
36,971 |
|
|
31,370 |
|
|
5,601 |
|
|
17.8 |
% |
|
0.3 |
% |
|
— |
|
|
17.5 |
% |
|
|
3,784 |
|
|
3,649 |
|
|
135 |
|
|
3.7 |
% |
|
— |
|
|
— |
|
|
3.7 |
% |
International |
|
33,187 |
|
|
27,721 |
|
|
5,466 |
|
|
19.7 |
% |
|
0.4 |
% |
|
— |
|
|
19.3 |
% |
Other |
|
13,529 |
|
|
5,897 |
|
|
7,632 |
|
|
129.5 |
% |
|
— |
|
|
— |
|
|
129.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
19.2 |
% |
|
0.8 |
% |
|
0.6 |
% |
|
17.8 |
% |
|
|
454,836 |
|
|
380,184 |
|
|
74,652 |
|
|
19.6 |
% |
|
— |
|
|
1.0 |
% |
|
18.6 |
% |
International |
|
266,953 |
|
|
225,119 |
|
|
41,834 |
|
|
18.6 |
% |
|
2.2 |
% |
|
— |
|
|
16.4 |
% |
|
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|||||||
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Three Months Ended |
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Dollar |
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Reported |
|
Percentage |
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Percentage |
|
Organic |
|||||||
Net CAG Revenue |
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|
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|
|
23.1 |
% |
|
1.0 |
% |
|
0.8 |
% |
|
21.3 |
% |
IDEXX VetLab consumables |
|
218,605 |
|
|
177,276 |
|
|
41,329 |
|
|
23.3 |
% |
|
1.2 |
% |
|
— |
|
|
22.1 |
% |
Rapid assay products |
|
70,593 |
|
|
58,930 |
|
|
11,663 |
|
|
19.8 |
% |
|
— |
% |
|
— |
|
|
19.8 |
% |
Reference laboratory diagnostic |
|
254,223 |
|
|
204,919 |
|
|
49,304 |
|
|
24.1 |
% |
|
1.2 |
% |
|
1.8 |
% |
|
21.1 |
% |
|
|
23,995 |
|
|
19,849 |
|
|
4,146 |
|
|
20.9 |
% |
|
1.0 |
% |
|
— |
|
|
19.9 |
% |
|
|
29,336 |
|
|
32,608 |
|
|
(3,272) |
|
|
(10.0) |
% |
|
1.2 |
% |
|
— |
|
|
(11.2) |
% |
Veterinary software, services and |
|
41,265 |
|
|
39,548 |
|
|
1,717 |
|
|
4.3 |
% |
|
0.2 |
% |
|
— |
|
|
4.2 |
% |
Net CAG revenue |
|
|
|
|
|
|
|
|
|
|
19.7 |
% |
|
1.0 |
% |
|
0.7 |
% |
|
18.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
1See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding. |
|
|||||||||||||||||||||
Revenues and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets |
|||||||||||||||||||||
Amounts in thousands (Unaudited) |
|||||||||||||||||||||
|
|||||||||||||||||||||
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
Dollar |
|
Reported |
|
Percentage Currency |
|
Percentage |
|
Organic |
|||||||
Net Revenue |
|
|
|
|
|
|
|
||||||||||||||
CAG |
|
|
|
|
|
|
|
|
|
|
10.5 |
% |
|
(0.4) |
% |
|
0.7 |
% |
|
10.1 |
% |
|
|
1,188,493 |
|
|
1,062,715 |
|
|
125,778 |
|
|
11.8 |
% |
|
— |
|
|
1.1 |
% |
|
10.8 |
% |
International |
|
567,620 |
|
|
526,682 |
|
|
40,938 |
|
|
7.8 |
% |
|
(1.1) |
% |
|
— |
|
|
8.9 |
% |
Water |
|
95,537 |
|
|
99,980 |
|
|
(4,443) |
|
|
(4.4) |
% |
|
(2.1) |
% |
|
— |
|
|
(2.3) |
% |
|
|
47,510 |
|
|
48,157 |
|
|
(647) |
|
|
(1.3) |
% |
|
— |
|
|
— |
|
|
(1.3) |
% |
International |
|
48,027 |
|
|
51,823 |
|
|
(3,796) |
|
|
(7.3) |
% |
|
(4.1) |
% |
|
— |
|
|
(3.2) |
% |
LPD |
|
103,369 |
|
|
95,980 |
|
|
7,389 |
|
|
7.7 |
% |
|
(2.7) |
% |
|
— |
|
|
10.4 |
% |
|
|
10,803 |
|
|
10,221 |
|
|
582 |
|
|
5.7 |
% |
|
— |
|
|
— |
|
|
5.7 |
% |
International |
|
92,566 |
|
|
85,759 |
|
|
6,807 |
|
|
7.9 |
% |
|
(3.0) |
% |
|
— |
|
|
10.9 |
% |
Other |
|
30,698 |
|
|
16,105 |
|
|
14,593 |
|
|
90.6 |
% |
|
— |
|
|
— |
|
|
90.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
10.2 |
% |
|
(0.6) |
% |
|
0.6 |
% |
|
10.2 |
% |
|
|
1,257,617 |
|
|
1,127,347 |
|
|
130,270 |
|
|
11.6 |
% |
|
— |
|
|
1.0 |
% |
|
10.6 |
% |
International |
|
728,100 |
|
|
674,115 |
|
|
53,985 |
|
|
8.0 |
% |
|
(1.6) |
% |
|
— |
|
|
9.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
Dollar |
|
Reported |
|
Percentage |
|
Percentage |
|
Organic |
|||||||
Net CAG Revenue |
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
13.3 |
% |
|
(0.4) |
% |
|
0.8 |
% |
|
12.8 |
% |
IDEXX VetLab consumables |
|
603,379 |
|
|
519,646 |
|
|
83,733 |
|
|
16.1 |
% |
|
(0.6) |
% |
|
— |
|
|
16.7 |
% |
Rapid assay products |
|
192,681 |
|
|
181,966 |
|
|
10,715 |
|
|
5.9 |
% |
|
(0.4) |
% |
|
— |
|
|
6.3 |
% |
Reference laboratory diagnostic |
|
703,300 |
|
|
621,469 |
|
|
81,831 |
|
|
13.2 |
% |
|
(0.2) |
% |
|
1.8 |
% |
|
11.5 |
% |
|
|
66,235 |
|
|
59,115 |
|
|
7,120 |
|
|
12.0 |
% |
|
(0.6) |
% |
|
— |
|
|
12.7 |
% |
|
|
72,040 |
|
|
92,883 |
|
|
(20,843) |
|
|
(22.4) |
% |
|
(0.4) |
% |
|
— |
|
|
(22.0) |
% |
Veterinary software, services and |
|
118,478 |
|
|
114,318 |
|
|
4,160 |
|
|
3.6 |
% |
|
(0.1) |
% |
|
— |
|
|
3.8 |
% |
Net CAG revenue |
|
|
|
|
|
|
|
|
|
|
10.5 |
% |
|
(0.4) |
% |
|
0.7 |
% |
|
10.1 |
% |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
1See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding. |
|
||||||||
Condensed Consolidated Balance Sheet |
||||||||
Amounts in thousands (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
Assets: |
|
Current Assets: |
|
|
|
|
||
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
337,593 |
|
|
269,312 |
|
|
|
Inventories |
|
217,597 |
|
|
195,019 |
|
|
|
Other current assets |
|
137,902 |
|
|
124,982 |
|
|
|
Total current assets |
|
868,679 |
|
|
679,639 |
|
|
|
Property and equipment, net |
|
547,624 |
|
|
533,845 |
|
|
|
Other long-term assets, net |
|
631,104 |
|
|
618,991 |
|
|
|
Total assets |
|
|
|
|
|
|
Liabilities and Stockholders' |
|
|
|
|
|
|
||
Equity: |
|
Current Liabilities: |
|
|
|
|
||
|
|
Accounts payable |
|
|
|
|
|
|
|
|
Accrued liabilities |
|
362,326 |
|
|
322,938 |
|
|
|
Line of credit |
|
— |
|
|
288,765 |
|
|
|
Current portion of long-term debt |
|
49,983 |
|
|
— |
|
|
|
Deferred revenue |
|
42,599 |
|
|
41,462 |
|
|
|
Total current liabilities |
|
526,841 |
|
|
725,337 |
|
|
|
Long-term debt, net of current portion |
|
853,316 |
|
|
698,910 |
|
|
|
Other long-term liabilities, net |
|
226,135 |
|
|
230,403 |
|
|
|
Total long-term liabilities |
|
1,079,451 |
|
|
929,313 |
|
|
|
Total stockholders' equity |
|
440,576 |
|
|
177,473 |
|
|
|
Noncontrolling interest |
|
539 |
|
|
352 |
|
|
|
Total stockholders' equity |
|
441,115 |
|
|
177,825 |
|
|
|
Total liabilities and stockholders' equity |
|
|
|
|
|
|
|
|||||||||||||||||
Select Balance Sheet Information (Unaudited) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Selected Balance Sheet Information: |
|
Days sales outstanding1 |
|
41.5 |
|
|
44.4 |
|
|
41.5 |
|
|
40.5 |
|
|
41.8 |
|
|
|
Inventory turns2 |
|
1.9 |
|
|
1.6 |
|
|
1.9 |
|
|
2.2 |
|
|
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1Days sales outstanding represents the average of the accounts receivable balances at the beginning and end of each quarter divided by revenue for that quarter, the result of which is then multiplied by 91.25 days. |
|||||||||||||||||
2Inventory turns represent inventory-related cost of product revenue for the twelve months preceding each quarter-end divided by the average inventory balances at the beginning and end of each quarter. |
|
||||||||
Condensed Consolidated Statement of Cash Flows |
||||||||
Amounts in thousands (Unaudited) |
||||||||
|
|
|
|
Nine Months Ended |
||||
|
|
|
|
2020 |
|
2019 |
||
|
|
|
|
|
||||
Operating: |
|
Cash Flows from Operating Activities: |
|
|
|
|
||
|
|
Net income |
|
|
|
|
|
|
|
|
Non-cash adjustments to net income |
|
98,798 |
|
|
91,945 |
|
|
|
Changes in assets and liabilities |
|
(76,842) |
|
|
(125,448) |
|
|
|
Net cash provided by operating activities |
|
429,129 |
|
|
303,745 |
|
Investing: |
|
Cash Flows from Investing Activities: |
|
|
|
|
||
|
|
Purchases of property and equipment |
|
(92,768) |
|
|
(109,058) |
|
|
|
Acquisition of intangible assets / business / equity investment |
|
(918) |
|
|
(559) |
|
|
|
Net cash used by investing activities |
|
(93,686) |
|
|
(109,617) |
|
Financing: |
|
Cash Flows from Financing Activities: |
|
|
|
|
||
|
|
Repayments on revolving credit facilities, net |
|
(289,625) |
|
|
(169,532) |
|
|
|
Issuance of senior notes |
|
200,000 |
|
|
100,000 |
|
|
|
Debt issuance costs |
|
(4,995) |
|
|
(154) |
|
|
|
Payment of acquisition-related contingent consideration |
|
(1,580) |
|
|
(2,255) |
|
|
|
Repurchases of common stock |
|
(182,815) |
|
|
(160,969) |
|
|
|
Proceeds from exercises of stock options and employee stock purchase |
|
39,230 |
|
|
28,739 |
|
|
|
Shares withheld for statutory tax withholding on restricted stock |
|
(9,029) |
|
|
(7,849) |
|
|
|
Net cash used by financing activities |
|
(248,814) |
|
|
(212,020) |
|
|
|
Net effect of changes in exchange rates on cash |
|
(1,368) |
|
|
(1,906) |
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
85,261 |
|
|
(19,798) |
|
|
|
Cash and cash equivalents, beginning of period |
|
90,326 |
|
|
123,794 |
|
|
|
Cash and cash equivalents, end of period |
|
|
|
|
|
|
|
||||||||
Free Cash Flow |
||||||||
Amounts in thousands except per share data (Unaudited) |
||||||||
|
|
|
|
Nine Months Ended |
||||
|
|
|
|
2020 |
|
2019 |
||
|
|
|
|
|
||||
Free Cash Flow: |
|
Net cash provided by operating activities |
|
|
|
|
|
|
|
|
Investing cash flows attributable to purchases of property and equipment |
|
(92,768) |
|
|
(109,058) |
|
|
|
Free cash flow1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
1See Statements Regarding Non-GAAP Financial Measures, above. |
|
|
|
|
|
|
|
|
|||||
Common Stock Repurchases |
|
|
|
|
|
|
|
|||||
Amounts in thousands except per share data (Unaudited) |
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|||||||||
Shares repurchased in the open market |
|
— |
|
|
330 |
|
|
721 |
|
|
683 |
|
Shares acquired through employee surrender for statutory tax withholding |
|
1 |
|
|
1 |
|
|
31 |
|
|
38 |
|
Total shares repurchased |
|
1 |
|
|
331 |
|
|
752 |
|
|
721 |
|
|
|
|
|
|
|
|
|
|
||||
Cost of shares repurchased in the open market |
|
$— |
|
|
|
|
|
|
|
|
|
|
Cost of shares for employee surrenders |
|
360 |
|
|
277 |
|
|
9,029 |
|
|
7,849 |
|
Total cost of shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average cost per share – open market repurchases |
|
$— |
|
|
|
|
|
|
|
|
|
|
Average cost per share – employee surrenders |
|
|
|
|
|
|
|
|
|
|
|
|
Average cost per share – total |
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
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