10-QPeriod: Q1 FY2013

IDEXX LABORATORIES INC /DE Quarterly Report for Q1 Ended Mar 31, 2013

Filed April 23, 2013For Securities:IDXX

Summary

IDEXX Laboratories, Inc. (IDXX) reported for the first quarter of 2013, ending March 31st, demonstrating solid revenue growth and improved profitability. Total revenue increased by 2.9% to $332.1 million compared to the same period in the prior year, driven primarily by growth in the Companion Animal Group (CAG) and Water segments. Despite a slight decrease in LPD revenue, the overall performance indicates a positive trend. Profitability saw a significant improvement, with net income attributable to IDEXX stockholders rising by 9.9% to $44.9 million. This was supported by a higher gross profit margin and effective management of operating expenses. The company also continued its active share repurchase program, indicating confidence in its financial health and commitment to returning value to shareholders. Management remains cautiously optimistic about future performance, anticipating gradual improvement in the macroeconomic environment.

Financial Highlights

50 data points
Beta

Revenue

$332.11M

55.4% Gross Margin

Net Income

$44.86M

13.5% Net Margin

EPS (Diluted)

$0.41

Total Assets

$1.13B

Cash & Equivalents

$228.36M

Free Cash Flow

$923K

Financial Statements
Beta
Revenue$332.11M
Cost of Revenue$148.13M
Gross Profit$183.97M
R&D Expenses$21.76M
Operating Income$61.19M
Interest Expense$835K
Net Income$44.86M
EPS (Basic)$0.41
EPS (Diluted)$0.41
Shares Outstanding (Basic)109.18M
Shares Outstanding (Diluted)110.98M

Key Highlights

  • 1Total revenue for the first quarter of 2013 increased by 2.9% to $332.1 million, up from $322.7 million in the prior year's first quarter.
  • 2Net income attributable to IDEXX stockholders grew by 9.9% to $44.9 million ($0.81/0.82 diluted/basic EPS), compared to $40.7 million ($0.72/0.74 diluted/basic EPS) in Q1 2012.
  • 3The Companion Animal Group (CAG) segment remains the largest contributor, with revenue up 3.3% to $276.9 million.
  • 4Gross profit margin improved to 55.4% from 54.2% in the prior year's comparable period.
  • 5Operating expenses increased by 7.4% to $122.8 million, with notable increases in R&D and G&A within the CAG segment.
  • 6The company repurchased $63.8 million of its common stock in Q1 2013, a significant increase from $27.6 million in Q1 2012.
  • 7The effective income tax rate decreased to 26.2% from 31.7% in the prior year, largely due to R&D tax credits.

Frequently Asked Questions

IDEXX Laboratories reported total revenue of $332.1 million for the three months ended March 31, 2013, representing a 2.9% increase compared to $322.7 million in the same period of 2012. This growth was primarily driven by the Companion Animal Group (CAG) and Water segments.

Net income attributable to IDEXX Laboratories, Inc. stockholders increased by 9.9% to $44.9 million in the first quarter of 2013, up from $40.7 million in the first quarter of 2012. Diluted earnings per share rose to $0.81 from $0.72.

As of March 31, 2013, IDEXX reported cash and cash equivalents of $228.4 million. The company had $260.0 million outstanding under its $300 million Credit Facility, with $39.0 million in remaining borrowing availability. Working capital was $154.8 million.

Management expressed cautious optimism, noting gradual improvements in the U.S. macroeconomic environment that began in late 2011 and continued into 2013, which they believe will help mitigate negative economic impacts on their business. The company believes its diverse product and geographic portfolio helps offset economic challenges.