10-QPeriod: Q3 FY2010

IDEXX LABORATORIES INC /DE Quarterly Report for Q3 Ended Sep 30, 2010

Filed October 22, 2010For Securities:IDXX

Summary

IDEXX Laboratories, Inc. (IDXX) reported solid financial performance for the nine months ended September 30, 2010, with total revenue increasing by 7.7% to $819.6 million and net income rising by 15.0% to $104.9 million year-over-year. The Companion Animal Group (CAG) segment, which represents the largest portion of the company's revenue, showed an 8.2% increase in revenue, driven by strong performance in laboratory diagnostic and consulting services, as well as practice information management systems and digital radiography. Despite some headwinds from foreign currency fluctuations and a challenging economic environment, the company demonstrated resilience and effective cost management, leading to improved operating income and a healthy increase in earnings per share.

Financial Highlights

49 data points
Beta

Revenue

$269.63M

52.7% Gross Margin

Net Income

$34.69M

12.9% Net Margin

EPS (Diluted)

$0.29

Total Assets

$862.30M

Cash & Equivalents

$133.51M

Free Cash Flow

$43.69M

Financial Statements
Beta
Revenue$269.63M
Cost of Revenue$127.42M
Gross Profit$142.21M
R&D Expenses$17.20M
Operating Income$49.81M
Interest Expense$687K
Net Income$34.69M
EPS (Basic)$0.30
EPS (Diluted)$0.29
Shares Outstanding (Basic)115.24M
Shares Outstanding (Diluted)118.55M

Key Highlights

  • 1Total revenue for the nine months ended September 30, 2010, increased by 7.7% to $819.6 million, up from $761.3 million in the prior year.
  • 2Net income attributable to IDEXX stockholders for the nine months ended September 30, 2010, grew by 15.0% to $104.9 million, compared to $91.3 million in the prior year.
  • 3Diluted earnings per share for the nine months increased to $1.76, up from $1.50 in the same period of 2009.
  • 4The Companion Animal Group (CAG) segment, the largest contributor to revenue, saw an 8.2% increase in revenue to $676.6 million for the nine months.
  • 5Cash flow from operations remained strong, generating $130.0 million for the nine months ended September 30, 2010.
  • 6The company continued its share repurchase program, utilizing $117.2 million for treasury stock purchases during the nine-month period.
  • 7Gross profit margin improved to 52.9% for the nine months ended September 30, 2010, up from 51.7% in the prior year, indicating effective cost management.

Frequently Asked Questions

For the nine months ended September 30, 2010, IDEXX reported total revenue of $819.6 million, an increase of 7.7% compared to $761.3 million in the same period of 2009. The Companion Animal Group (CAG) segment showed significant growth, increasing by 8.2%.

Net income attributable to IDEXX stockholders rose by 15.0% to $104.9 million for the first nine months of 2010, from $91.3 million in the prior year. Diluted earnings per share also increased to $1.76 from $1.50.

IDEXX generated a healthy $130.0 million in cash from operating activities during the first nine months of 2010. The company also maintained a strong liquidity position with $133.5 million in cash and cash equivalents at the end of the period and had $73.1 million in available borrowing capacity under its credit facility.

The Companion Animal Group (CAG) remains the largest segment, with revenue growing 8.2% to $676.6 million for the nine months. The Water segment grew 4.8%, and the Livestock and Poultry Diagnostics (LPD) segment increased 5.1%. The 'Other' segment also saw growth.