10-QPeriod: Q3 FY2009

IDEXX LABORATORIES INC /DE Quarterly Report for Q3 Ended Sep 30, 2009

Filed October 23, 2009For Securities:IDXX

Summary

IDEXX Laboratories, Inc. (IDXX) reported its third-quarter and nine-month results for the period ending September 30, 2009. For the quarter, total revenue increased by 3.2% to $259.1 million, driven by growth in the Companion Animal Group (CAG). Net income for the quarter rose to $31.5 million ($0.52 per diluted share), an improvement from $25.7 million ($0.42 per diluted share) in the prior year's quarter. For the nine months, total revenue decreased by 2.5% to $761.3 million, while net income was largely flat at $91.3 million ($1.50 per diluted share) compared to $92.6 million ($1.48 per diluted share) in the prior year's period. Despite a challenging economic environment impacting some segments, particularly Production Animal and Water, the company demonstrated resilience, especially within its core Companion Animal Group. The company highlighted strategic acquisitions and effective cost management as contributing factors to its performance. The balance sheet shows a healthy cash position of $106.7 million, and the company maintained compliance with its credit facility covenants.

Financial Highlights

28 data points
Beta

Revenue

$259.12M

50.4% Gross Margin

Net Income

$31.54M

12.2% Net Margin

EPS (Diluted)

$0.26

Cash & Equivalents

$106.73M

Free Cash Flow

$29.62M

Financial Statements
Beta
Revenue$259.12M
Cost of Revenue$128.64M
Gross Profit$130.48M
R&D Expenses$16.58M
Operating Income$44.20M
Interest Expense$436K
Net Income$31.54M
EPS (Basic)$0.27
EPS (Diluted)$0.26
Shares Outstanding (Basic)117.31M
Shares Outstanding (Diluted)121.34M

Key Highlights

  • 1Total revenue for the third quarter of 2009 increased by 3.2% to $259.1 million, primarily driven by the Companion Animal Group (CAG).
  • 2Net income for the third quarter of 2009 increased to $31.5 million ($0.52 per diluted share) from $25.7 million ($0.42 per diluted share) in the prior year's quarter.
  • 3For the first nine months of 2009, net income was $91.3 million ($1.50 per diluted share), largely consistent with $92.6 million ($1.48 per diluted share) in the same period of 2008.
  • 4The Companion Animal Group (CAG) continues to be the primary revenue driver, showing a 4.7% revenue increase in Q3 2009.
  • 5The company made strategic acquisitions during the nine-month period, including VDIC, Inc. and Pet Detect assets, bolstering its offerings in telemedicine and pet identification.
  • 6Cash and cash equivalents increased to $106.7 million as of September 30, 2009, compared to $78.9 million at the end of 2008, indicating strong liquidity.
  • 7The company reported $142.6 million outstanding under its revolving credit facility, with $56.8 million in remaining borrowing availability and compliance with debt covenants.

Frequently Asked Questions

IDEXX reported a total revenue of $259.1 million for the third quarter of 2009, a 3.2% increase compared to $251.1 million in the same period of 2008. This growth was primarily driven by the Companion Animal Group (CAG), which saw a 4.7% increase in revenue.

The company noted that the weaker economy negatively impacted certain customer groups, particularly in the Water and Production Animal segments, leading to lower testing volumes. The Companion Animal Group also experienced some effects, with reduced routine and elective procedures at veterinary clinics impacting sales of rapid assay tests and consumables, though the segment showed overall resilience and growth.

IDEXX maintained a strong liquidity position with $106.7 million in cash and cash equivalents as of September 30, 2009. The company had $142.6 million outstanding under its revolving credit facility, with $56.8 million in remaining borrowing availability. IDEXX confirmed compliance with all financial covenants related to its credit facility.

Yes, IDEXX made acquisitions during the nine months ended September 30, 2009. These included substantially all assets of VDIC, Inc., a provider of telemedicine and cytopathology services, and certain assets of Pet Detect, which offers temporary pet identification systems. These acquisitions were accounted for as business combinations.