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

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.

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.

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