What was the primary driver of revenue growth in the second quarter of 2013?

The primary driver of revenue growth was the Companion Animal Group (CAG) segment, which experienced a 6.3% increase in revenue. This growth was largely attributed to increases in VetLab consumables and reference laboratory diagnostic and consulting services.

How did the company's profitability change compared to the prior year?

Profitability saw improvement. Gross profit increased by 7.0% to $197.7 million, and the gross profit margin expanded to 56.1%. Operating income also rose by 3.9% to $78.8 million. The effective tax rate decreased, contributing to higher net income.

What is the company's approach to returning capital to shareholders?

IDEXX Laboratories continued an aggressive share repurchase program. In the second quarter of 2013, the company repurchased approximately 1.65 million shares for $142.6 million, a substantial increase from the $27.4 million spent in the same quarter of the prior year. This demonstrates a commitment to returning value to shareholders.

What is the company's liquidity position?

The company maintains a strong liquidity position. As of June 30, 2013, IDEXX had $251.0 million in cash and cash equivalents and $81.5 million in remaining borrowing availability under its $450 million unsecured revolving credit facility. The company believes these resources are sufficient to fund operations and growth initiatives.

IDXX 10-Q Quarterly Report Q2 FY2013 — Revenue, Net Income, EPS

Summary

IDEXX Laboratories, Inc. (IDXX) reported solid financial performance for the second quarter of 2013, demonstrating revenue growth and improved profitability. Total revenue increased by 5.0% to $352.6 million compared to the same period in 2012, driven primarily by the Companion Animal Group (CAG) segment, which saw a 6.3% increase in revenue. Profitability also improved, with gross profit rising by 7.0% and operating income increasing by 3.9%. The company's effective tax rate decreased due to the retroactive R&D tax credit, contributing to a higher net income. IDEXX also continued its aggressive share repurchase program, returning significant capital to shareholders. The company's liquidity remains strong, with substantial cash on hand and available borrowing capacity, enabling continued investment in growth initiatives and capital expenditures.

Financial Highlights

50 data points

Beta

Revenue

$352.58M

0.6% Gross Margin

Net Income

$53.99M

0.2% Net Margin

EPS (Diluted)

$0.49

Total Assets

$1.16B

Cash & Equivalents

$251.01M

Free Cash Flow

$55.38M

Financial Statements

Beta

Revenue	$352.58M
Cost of Revenue	$154.88M
Gross Profit	$197.70M
R&D Expenses	$22.18M
Operating Income	$78.76M
Interest Expense	$1.18M
Net Income	$53.99M
EPS (Basic)	$0.51
EPS (Diluted)	$0.49
Shares Outstanding (Basic)	107.34M
Shares Outstanding (Diluted)	108.77M

Key Highlights

1Total revenue for the three months ended June 30, 2013, increased by 5.0% to $352.6 million compared to $335.6 million in the prior year period.
2Companion Animal Group (CAG) revenue grew by 6.3% to $295.8 million, primarily driven by VetLab consumables and reference laboratory services.
3Gross profit increased by 7.0% to $197.7 million, with the gross profit margin improving to 56.1% from 55.0% year-over-year.
4Operating income grew by 3.9% to $78.8 million, reflecting increased sales and improved gross margins.
5Diluted Earnings Per Share (EPS) for the quarter was $0.99, up from $0.91 in the prior year period.
6The company significantly increased its share repurchase activity, spending $142.6 million in the quarter compared to $27.4 million in the prior year.
7Cash provided by operating activities for the six months ended June 30, 2013, was $100.0 million, a significant increase from $78.8 million in the same period of 2012.

IDEXX LABORATORIES INC /DE Quarterly Report for Q2 Ended Jun 30, 2013

Summary

Financial Highlights

Key Highlights

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