IDEXX Laboratories Announces Fourth Quarter and Full-Year Financial Results

Jan 29, 2013, 07:00 ET from IDEXX Laboratories, Inc.

WESTBROOK, Maine, Jan. 29, 2013 /PRNewswire/ -- IDEXX Laboratories, Inc. (NASDAQ: IDXX), today reported that revenues for the fourth quarter of 2012 increased 4% to $319.5 million, from $307.2 million for the fourth quarter of 2011. Organic revenue growth[1] was 4%. Changes in foreign currency exchange rates reduced revenue growth by less than 1% and were almost entirely offset by revenue contributed from acquired businesses. Operating profit for the fourth quarter of 2012 increased 15% to $63.4 million, or 20% of revenue, compared to $55.3 million, or 18% of revenue for same period of the prior year. Earnings per diluted share ("EPS") for the quarter ended December 31, 2012 increased 16% to $0.78, compared to $0.67 for the same period in the prior year. Fourth quarter 2012 EPS includes a $3.5 million milestone payment earned related to the 2008 sale of product rights previously included in our pharmaceutical product line, which added $0.04 to EPS. Fourth quarter 2011 EPS included a similar milestone payment, which added $0.03 to EPS.

(Logo: http://photos.prnewswire.com/prnh/20110602/NE13041LOGO)

Year-to-Date Results

Revenues for the year ended December 31, 2012 increased 6% to $1.293 billion, from $1.219 billion for the year ended December 31, 2011. Organic revenue growth for the year ended December 31, 2012 was 7%. Changes in foreign currency exchange rates reduced revenue growth by 2% and revenue from acquisitions contributed 1% to revenue growth for the year ended December 31, 2012.

Operating profit for the year ended December 31, 2012 increased 11% to $262.6 million, or 20% of revenue, compared to $236.2 million, or 19% of revenue, for the prior year.

EPS for the year ended December 31, 2012 increased 14% to $3.17, compared to $2.78 for the prior year. 2012 EPS includes a $3.5 million milestone payment earned related to the 2008 sale of product rights previously included in our pharmaceutical product line, which added $0.04 to EPS. 2011 EPS included a similar milestone payment, a gain from the sale of certain raw material inventory in connection with the restructuring of our pharmaceutical business and a benefit from the federal research and development ("R&D") tax credit, all of which contributed $0.08 to EPS.

"We were very pleased with the fundamental trends behind revenue growth in the fourth quarter. As a result of the revenue mix reflected in these results, operating profit margins were well on track toward our longer term goals," stated Jonathan Ayers, Chairman and Chief Executive Officer. "With the early success of new information technology offerings, including Vetconnect® PLUS and Pet Health Network® Pro, we remain confident in accelerating organic growth through 2013, expected to average 8% – 9% for the year as a whole."

Revenue Performance for the Fourth Quarter

Please refer to the table below entitled "Revenues and Revenue Growth Analysis by Product and Service Categories" in conjunction with the following discussion.

Companion Animal Group. Companion Animal Group ("CAG") revenues for the fourth quarter of 2012 were $263.5 million compared to $251.3 million for the fourth quarter of 2011. Organic revenue growth of 5% was due primarily to higher sales volumes of consumables used with our Catalyst Dx® chemistry instrument and an increase in net sales prices and sales volumes in our reference laboratories. These favorable impacts were partly offset by lower sales of our Catalyst Dx® instrument. Revenue from acquired businesses contributed less than 1% to revenue growth and was offset almost entirely by the reduction in revenue growth from changes in foreign currency rates.

Water. Water revenues for the fourth quarter of 2012 were $20.9 million compared to $20.0 million for the fourth quarter of 2011. Organic revenue growth of 5% was due primarily to higher Colilert® product sales volumes, driven by new account acquisitions. Changes in foreign currency exchange rates reduced revenue growth by less than 1%.

Livestock and Poultry Diagnostics. Livestock and Poultry Diagnostics ("LPD") revenues for the fourth quarter of 2012 were $22.6 million compared to $24.1 million for the fourth quarter of 2011. The 4% decline in organic revenue was due primarily to lower sales volumes of certain bovine tests, driven principally by a reduction of government testing programs in Europe. Changes in foreign currency exchange rates reduced revenue growth by 2%.

Additional Operating Results for the Fourth Quarter

Gross profit for the fourth quarter of 2012 increased $10.2 million, or 6%, to $169.1 million from $158.9 million for the fourth quarter of 2011. As a percentage of total revenue, gross profit increased to 53% from 52%. The increase in the gross profit percentage was due primarily to higher relative sales of high margin consumables used in our IDEXX VetLab® instruments and the favorable impact of currency. The net effect of currency was positive as hedging gains more than offset the net unfavorable impact of changes in foreign currency exchange rates. Fourth quarter gross profit percentage is typically lower than the gross profit percentage for the full year due to higher relative sales of lower margin instruments in the fourth quarter.

Selling, general and administrative ("SG&A") expense for the fourth quarter of 2012 was $84.6 million, or 26% of revenue, compared to $83.4 million, or 27% of revenue, for the fourth quarter of 2011. The increase in SG&A expense was due primarily to higher personnel-related costs, partly offset by the favorable impact of changes in foreign currency exchange rates. The milestone payments earned in the fourth quarters of 2012 and 2011 related to the 2008 sale of pharmaceutical product rights were reflected as reductions to general and administrative expenses. Research and development ("R&D") expense for the fourth quarter of 2012 was $21.1 million, or 7% of revenue, compared to $20.2 million, or 7% of revenue for the fourth quarter of 2011. The increase in R&D expense resulted primarily from higher personnel-related costs and an increase in external consulting and development costs.

Supplementary Analysis of Results

The accompanying financial tables provide more information concerning our revenue and other operating results for the three and twelve months ended December 31, 2012.

Outlook for 2013

The Company provides the following updated guidance for the full year of 2013. The guidance reflects an assumption that the value of the U.S. dollar relative to other currencies will remain at our current assumptions of the euro at $1.32, the British pound at $1.60 and the Canadian dollar at $1.00 for the balance of 2013. Every 1% weakening of the U.S. dollar relative to our basket of currencies is expected to increase revenue by approximately $5 million and operating profit by approximately $0.8 million on an annual basis. A 1% strengthening of the U.S. dollar is expected to have the opposite effect. Fluctuations in foreign currency exchange rates from current assumptions could have a significant positive or negative impact on our actual results of operations for 2013.

  • Revenues are expected to be $1.405 to $1.42 billion, which represents reported growth of 8.5% to 9.5% relative to 2012. Organic revenue growth is estimated to be in the range of 8% to 9% and is consistent with our previous guidance.
  • EPS are expected to be $3.47 to $3.57, compared to our previous guidance of $3.37 to $3.47. Relative to EPS guidance provided in October 2012, our current guidance reflects the estimated impact of the federal R&D tax credit for 2012 and 2013. The impact of the R&D tax credit for both years will be reflected in 2013 results. The increase to the high end of our guidance reflects an estimated benefit of $0.10 related to the federal R&D tax credit. The increase to the low end of our guidance reflects an estimated benefit of $0.08 related to the federal R&D tax credit, as well as a tightening of our EPS range. We expect the federal R&D tax credit to contribute $0.05 to $0.06 to EPS in the first quarter of 2013, as we recognize the tax credit for 2012 and a portion of our expected tax credit for 2013.  
  • Free cash flow[2] is expected to be approximately 105% to 110% of net income.
  • Capital expenditures are expected to be approximately $75 million.

Conference Call and Webcast Information

IDEXX Laboratories will be hosting a conference call today at 9:00 a.m. (eastern) to discuss its fourth quarter and full-year results and management's outlook. To participate in the conference call, dial 1-612-288-0340 or 1-800-230-1093 and reference confirmation code 278731. An audio replay will be available through February 5, 2013 by dialing 1-320-365-3844 and referencing replay code 278731.

The call will also be available via live or archived webcast on the IDEXX Laboratories' web site at http://www.idexx.com.

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 5,000 people and offers products to customers in over 100 countries.

Note Regarding Forward-Looking Statements

This press 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 can be identified by the use of words such as "expects," "may," "anticipates," "intends," "would," "will," "plans," "believes," "estimates," "should," and similar words and expressions. These statements are based on management's expectations of future events as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments. Actual results could differ materially from management's expectations. Factors that could cause or contribute to such differences include the following: the Company's ability to develop, manufacture, introduce and market new products and enhancements to existing products; the Company's ability to achieve cost improvements in its worldwide network of laboratories and in the manufacture of in-clinic instruments;the Company's ability to identify acquisition opportunities, complete acquisitions and integrate acquired businesses; disruptions, shortages or pricing changes that affect the Company's purchases of products and materials from third parties, including from sole source suppliers; the Company's ability to manufacture complex biologic products; the impact of a weak economy on demand for the Company's products and services; the effectiveness of the Company's sales and marketing activities; the effect of government regulation on the Company's business, including government decisions about whether and when to approve the Company's products and decisions regarding labeling, manufacturing and marketing products; the impact of the resolution of the U.S. Federal Trade Commission investigation into the Company's marketing and sales practices; the impact of a change in the status of one of the Company's distributors on the Company's results of operations;the Company's ability to obtain patent and other intellectual property protection for its products, successfully enforce its intellectual property rights and defend itself against third party claims against the Company; the impact of distributor purchasing decisions on sales of the Company's products that are sold through distribution; the impact of competition, technological change, veterinary hospital consolidation, and the prevalence of buying consortiums on the markets for the Company's products; changes or trends in veterinary medicine that affect the rate of use of the Company's products and services by veterinarians; the impact of the Company's inexperience and small scale in the human point-of-care market; the effects of operations outside the U.S., including  from currency fluctuations, different regulatory, political and economic conditions, and different market conditions; the effects of interruptions to the Company's operations due to natural disasters or system failures; the impact of any class action litigation due to stock price volatility; the effect on the Company's stock price if quarterly or annual operations results do not meet expectations of market analysts or investors in future periods; and potential exposures related to our worldwide provision for income taxes and the potential loss of tax incentives. A further description of these and other factors can be found in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012,in the section captioned "Risk Factors."

[1] Organic revenue growth is a non-U.S. GAAP measure and represents the percentage change in revenue net of acquisitions and the effect of changes in foreign currency exchange rates.

[2] Free cash flow is a non-U.S. GAAP measure. We calculate free cash flow as cash generated from operations, excluding tax benefits attributable to share-based compensation arrangements, reduced by our investments in fixed assets. We feel 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. We believe this is a common financial measure useful to further evaluate the results of operations. Refer to our reconciliation below for our calculation of free cash flow for the twelve months ended December 31, 2012 and 2011. With respect to this particular forward-looking projection, the Company is unable to provide a quantitative reconciliation at this time as the inputs to the measurement are difficult to predict and estimate, and are primarily dependent on future events.

Contact: Merilee Raines, Chief Financial Officer, 1-207-556-8155

 

IDEXX Laboratories, Inc. and Subsidiaries

Consolidated Statement of Operations

Amounts in thousands except per share data (Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

2012

2011

2012

2011

Revenue:

Revenue

$     319,538

$        307,201

$     1,293,338

$        1,218,689

Expenses and

Income:

Cost of revenue

150,488

148,320

594,190

572,183

Gross profit

169,050

158,881

699,148

646,506

Sales and marketing

52,724

52,209

216,962

204,850

General and administrative

31,849

31,170

137,609

129,389

Research and development

21,050

20,203

82,014

76,042

Income from operations

63,427

55,299

262,563

236,225

Interest expense, net

(343)

(603)

(1,946)

(1,803)

Income before provision for income taxes

63,084

54,696

260,617

234,422

Provision for income taxes

19,724

16,698

82,330

72,668

Net Income:

Net income

43,360

37,998

178,287

161,754

Less: Noncontrolling interest in subsidiary's

earnings (losses)

6

(12)

20

(32)

Net income attributable to stockholders

$       43,354

$        38,010

$     178,267

$          161,786

Earnings per share: Basic

$           0.79

$            0.68

$           3.24

$                2.85

Earnings per share: Diluted

$           0.78

$            0.67

$           3.17

$                2.78

Shares outstanding: Basic

54,717

55,743

54,985

56,790

Shares outstanding: Diluted

55,790

56,923

56,155

58,214

IDEXX Laboratories, Inc. and Subsidiaries

Selected Operating Information (Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

2012

2011

2012

2011

Operating

Gross profit

52.9%

51.7%

54.1%

53.0%

Ratios (as a

Sales, marketing, general and

percentage of

administrative expense

26.5%

27.1%

27.4%

27.4%

revenue):

Research and development expense

6.6%

6.6%

6.3%

6.2%

Income from operations1

19.8%

18.0%

20.3%

19.4%

International

International revenue (in thousands)

$     136,545

$        131,694

$     533,919

$       518,599

Revenue:

International revenue as percentage of

total revenue

42.7%

42.9%

41.3%

42.6%

1Amounts presented may not recalculate due to rounding.

 

IDEXX Laboratories, Inc. and Subsidiaries

Segment Information

Amounts in thousands (Unaudited)

Three Months Ended

Three Months Ended

December 31,

Percent of

December 31,

Percent of

2012

Revenue

2011

Revenue

Revenue:

CAG

$     263,487

$        251,325

Water

20,892

20,002

LPD

22,571

24,131

Other

12,588

11,743

Total

$     319,538

$        307,201

Gross Profit:

CAG

$     135,176

51.3%

$        127,922

50.9%

Water

13,883

66.5%

12,879

64.4%

LPD

14,111

62.5%

16,071

66.6%

Other

4,748

37.7%

4,738

40.3%

Unallocated Amounts

1,132

N/A

(2,729)

N/A

Total

$     169,050

52.9%

$        158,881

51.7%

Income from

Operations:

CAG

$       45,899

17.4%

$          44,697

17.8%

Water

9,068

43.4%

8,517

42.6%

LPD

4,679

20.7%

5,765

23.9%

Other

3,782

30.0%

2,763

23.5%

Unallocated Amounts

(1)

N/A

(6,443)

N/A

Total

$       63,427

19.8%

$          55,299

18.0%

Twelve Months Ended

Twelve Months Ended

December 31,

Percent of

 December 31,

Percent of

2012

Revenue

2011

Revenue

Revenue:

CAG

$     1,072,211

$        999,722

Water

84,680

82,125

LPD

86,724

94,112

Other

49,723

42,730

Total

$     1,293,338

$     1,218,689

Gross Profit:

CAG

$       561,043

52.3%

$        515,656

51.6%

Water

56,133

66.3%

51,555

62.8%

LPD

57,594

66.4%

63,619

67.6%

Other

19,217

38.6%

17,231

40.3%

Unallocated Amounts

5,161

N/A

(1,555)

N/A

Total

$       699,148

54.1%

$        646,506

53.0%

Income from

Operations:

CAG

$      203,236

19.0%

$        189,834

19.0%

Water

37,687

44.5%

33,844

41.2%

LPD

19,259

22.2%

23,739

25.2%

Other

4,451

9.0%

2,556

6.0%

Unallocated Amounts

(2,070)

N/A

(13,748)

N/A

Total

$      262,563

20.3%

$        236,225

19.4%

IDEXX Laboratories, Inc. and Subsidiaries

Revenues and Revenue Growth Analysis by Product and Service Categories

Amounts in thousands (Unaudited)

Net Revenue

Three

Months

Ended

December

 31, 2012

Three

Months

Ended

December

31, 2011

Dollar

Change

Percentage

Change

Percentage

Change from

Currency1

Percentage

Change from

Acquisitions2

Organic Revenue

Growth3

CAG

$

263,487

$

251,325

$

12,162

4.8 %

(0.4 %)

0.5 %

4.7 %

Water

20,892

20,002

890

4.4 %

(0.4 %)

-

4.8 %

LPD

22,571

24,131

(1,560)

(6.5 %)

(2.1 %)

-

(4.4 %)

Other

12,588

11,743

845

7.2 %

(0.9 %)

-

8.1 %

Total

$

319,538

$

307,201

$

12,337

4.0 %

(0.5 %)

0.4 %

4.1 %

Net CAG Revenue

Three

Months

Ended

December

31, 2012

Three

Months

Ended

December

31, 2011

Dollar

Change

Percentage

Change

Percentage

Change from

Currency 1

Percentage

Change from

Acquisitions2

Organic Revenue

Growth3

VetLab® instruments

$

24,624

$

28,736

$

(4,112)

(14.3 %)

(0.5 %)

-

(13.8%)

VetLab® consumables

72,420

62,527

9,893

15.8 %

(0.6 %)

-

16.4%

VetLab® service and accessories

12,442

11,114

1,328

11.9 %

(0.2 %)

-

12.1%

Rapid assay products

33,676

35,459

(1,783)

(5.0 %)

(0.2 %)

-

(4.8%)

Reference laboratory diagnostic and

      consulting services

97,647

91,677

5,970

6.5 %

(0.4 %)

1.4 %

5.5%

Practice management and digital

      imaging systems and services

22,678

21,812

866

4.0 %

0.2 %

-

3.8%

Net CAG revenue

$

263,487

$

251,325

$

12,162

4.8 %

(0.4 %)

0.5 %

4.7%

1 The percentage change from currency is a non-U.S. GAAP measure. It represents the percentage change in revenue resulting from the difference between the average exchange rates during the three months ended December 31, 2012 and the same period of the prior year applied to foreign currency denominated revenues for the three months ended December 31, 2012.

2 The percentage change from acquisitions is a non-U.S. GAAP measure. It represents the percentage change in revenue during the three months ended December 31, 2012 compared to the three months ended December 31, 2011 attributed to acquisitions subsequent to September 30, 2011.

3 Organic revenue growth is a non-U.S. GAAP measure and represents the percentage change in revenue during the three months ended December 31, 2012 compared to the three months ended December 31, 2011 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

Amounts in thousands (Unaudited)

Net Revenue

Twelve

Months

Ended

December

31, 2012

Twelve

Months

Ended

December

31, 2011

Dollar

Change

Percentage

Change

Percentage

Change from

Currency1

Percentage

Change from

Acquisitions2

Organic Revenue

Growth3

CAG

$

1,072,211

$

999,722

$

72,489

7.3%

(1.4%)

1.2%

7.5%

Water

84,680

82,125

2,555

3.1%

(1.4%)

-

4.5%

LPD

86,724

94,112

(7,388)

(7.9%)

(3.8%)

-

(4.1%)

Other

49,723

42,730

6,993

16.4%

(0.8%)

-

17.2%

Total

$

1,293,338

$

1,218,689

$

74,649

6.1%

(1.6%)

1.0%

6.7%

Net CAG Revenue

Twelve

Months

Ended

December

 31, 2012

Twelve

Months

Ended

December

31, 2011

Dollar

Change

Percentage

Change

Percentage

Change from

Currency1

Percentage

Change from

Acquisitions2

Organic Revenue

Growth3

VetLab® instruments

$

90,177

$

93,655

$

(3,478)

(3.7%)

(1.9%)

-

(1.8%)

VetLab® consumables

278,818

255,848

22,970

9.0%

(1.7%)

-

10.7%

VetLab® service and accessories

48,056

45,083

2,973

6.6%

(0.4%)

-

7.0%

Rapid assay products

162,232

154,342

7,890

5.1%

(0.7%)

-

5.8%

Reference laboratory diagnostic and

      consulting services

407,343

373,919

33,424

8.9%

(1.8%)

3.1%

7.6%

Practice management and digital

      imaging systems and services

85,585

76,875

8,710

11.3%

(0.1%)

-

11.4%

Net CAG revenue

$

1,072,211

$

999,722

$

72,489

7.3%

(1.4%)

1.2%

7.5%

1 The percentage change from currency is a non-U.S. GAAP measure. It represents the percentage change in revenue resulting from the difference between the average exchange rates during the twelve months ended December 31, 2012 and the same period of the prior year applied to foreign currency denominated revenues for the twelve months ended December 31, 2012.

2 The percentage change from acquisitions is a non-U.S. GAAP measure. It represents the percentage change in revenue during the twelve months ended December 31, 2012 compared to the twelve months ended December 31, 2011 attributed to acquisitions subsequent to December 31, 2010.

3 Organic revenue growth is a non-U.S. GAAP measure and represents the percentage change in revenue during the twelve months ended December 31, 2012 compared to the twelve months ended December 31, 2011 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)

December 31,

December 31,

2012

2011

Assets:

Current Assets:

Cash and cash equivalents

$     223,986

$          183,895

Accounts receivable, net

138,324

141,275

Inventories

140,946

133,099

Other current assets

66,281

65,958

Total current assets

569,537

524,227

Property and equipment, net

245,177

216,777

Other long-term assets, net

288,888

289,810

Total assets

$  1,103,602

$       1,030,814

Liabilities and

Stockholders'

Equity:

Current Liabilities:

Accounts payable

$      35,288

$            36,551

Accrued liabilities

137,746

141,383

Debt

213,107

243,917

Deferred revenue

20,192

15,028

Total current liabilities

406,333

436,879

Long-term debt, net of current portion

1,394

2,501

Other long-term liabilities

59,618

51,841

Total long-term liabilities

61,012

54,342

Total stockholders' equity

636,223

539,579

Noncontrolling interest

34

14

Total equity

636,257

539,593

Total liabilities and stockholders' equity

$  1,103,602

$        1,030,814

IDEXX Laboratories, Inc. and Subsidiaries

Selected Balance Sheet Information (Unaudited)

December 31,

September 30,

June 30,

March 31,

December 31,

2012

2012

2012

2012

2011

Selected

Balance Sheet

Days sales outstanding1

39.9

41.7

41.9

42.7

41.0

Information:

Inventory turns 2

1.8

1.7

1.8

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 represents inventory-related cost of product sales for the 12 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)

Twelve Months Ended

December 31,

December 31,

2012

2011

Operating:

Cash Flows from Operating Activities:

Net income

$     178,287

$     161,754

Non-cash charges

64,408

68,441

Changes in assets and liabilities

2,263

6,512

Tax benefit from share-based compensation arrangements

(14,676)

(16,007)

Net cash provided by operating activities

230,282

220,700

Investing:

Cash Flows from Investing Activities:

Purchases of property and equipment

(65,492)

(52,464)

Proceeds from disposition of pharmaceutical product lines

3,000

3,000

Proceeds from sale of property and equipment

45

225

Acquisitions of intangible assets and businesses, net of cash acquired

(3,558)

(47,757)

Net cash used by investing activities

(66,005)

(96,996)

Financing:

Cash Flows from Financing Activities:

(Repayment) borrowings on revolving credit facilities, net

(31,000)

113,903

Payment of notes payable

(917)

(863)

Repurchases of common stock

(132,268)

(255,505)

Proceeds from the exercise of stock options and employee stock purchase plans

24,166

28,801

Tax benefit from share-based compensation arrangements

14,676

16,007

Net cash used by financing activities

(125,343)

(97,657)

Net effect of changes in exchange rates on cash

1,157

933

Net increase in cash and cash equivalents

40,091

26,980

Cash and cash equivalents, beginning of period

183,895

156,915

Cash and cash equivalents, end of period

$      223,986

$     183,895

 

IDEXX Laboratories, Inc. and Subsidiaries

Free Cash Flow1

Amounts in thousands (Unaudited)

Twelve Months Ended

December 31,

December 31,

2012

2011

Free Cash

Flow:

Net cash provided by operating activities

$     230,282

$      220,700

Royalty prepayment to obtain exclusive patent rights

6,250

-

Financing cash flows attributable to tax benefits from

share-based compensation arrangements

14,676

16,007

Purchases of property and equipment

(65,492)

(52,464)

Free cash flow

$     185,716

$      184,243

 

1 Free cash flow is a non-U.S. GAAP measure. We calculate free cash flow as cash generated from operations, excluding our royalty prepayment in the first quarter of 2012, and tax benefits attributable to share-based compensation arrangements, reduced by our investments in fixed assets. We feel 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. We believe this is a common financial measure useful to further evaluate the results of operations.

 

IDEXX Laboratories, Inc. and Subsidiaries

Common Stock Repurchases

Amounts in thousands except per share data (Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

2012

2011

2012

2011

Share repurchases during the period

436

1,236

1,474

3,419

Average price paid per share

$        94.24

$           72.43

$        89.72

$           74.74

Shares remaining under repurchase authorization as of December 31, 2012 totaled 2,913,520.                                 

Share repurchases do not 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.

 

 

SOURCE IDEXX Laboratories, Inc.



RELATED LINKS

http://www.idexx.com