10-QPeriod: Q1 FY2015

IDEXX LABORATORIES INC /DE Quarterly Report for Q1 Ended Mar 31, 2015

Filed April 28, 2015For Securities:IDXX

Summary

IDEXX Laboratories Inc. reported total revenue of $382.5 million for the first quarter of 2015, a 6.2% increase year-over-year. This growth was primarily driven by the Companion Animal Group (CAG) segment, which saw an 8.6% revenue increase, particularly in VetLab consumables and reference laboratory services. The company also noted the positive impact of transitioning to an all-direct sales strategy in the U.S., which contributed to revenue growth. However, foreign currency headwinds significantly impacted reported revenue, reducing it by approximately $21.3 million due to a strengthening U.S. dollar. Financially, the company reported net income attributable to IDEXX stockholders of $46.6 million, largely flat compared to the prior year. Diluted earnings per share were $0.98. The company's cash flow from operations turned negative in the quarter, largely due to changes in working capital, including increased accounts receivable from the direct sales transition. To manage liquidity, IDEXX issued $150 million in senior notes and continued its share repurchase program, spending $133.6 million on buybacks during the quarter.

Financial Highlights

53 data points
Beta

Revenue

$382.48M

0.6% Gross Margin

Net Income

$46.59M

0.1% Net Margin

EPS (Diluted)

$0.49

Total Assets

$1.43B

Cash & Equivalents

$182.16M

Free Cash Flow

-$37.66M

Financial Statements
Beta
Revenue$382.48M
Cost of Revenue$166.93M
Gross Profit$215.54M
R&D Expenses$25.01M
Operating Income$72.80M
Interest Expense$6.30M
Net Income$46.59M
EPS (Basic)$0.49
EPS (Diluted)$0.49
Shares Outstanding (Basic)94.28M
Shares Outstanding (Diluted)95.52M

Key Highlights

  • 1Total revenue increased by 6.2% to $382.5 million, driven by the Companion Animal Group (CAG) segment.
  • 2CAG segment revenue grew by 8.6%, fueled by VetLab consumables and reference laboratory services.
  • 3Transition to an all-direct sales strategy in the U.S. contributed positively to revenue growth through distributor margin capture.
  • 4Net income attributable to IDEXX stockholders was $46.6 million, relatively flat year-over-year.
  • 5Diluted earnings per share were $0.98.
  • 6Operating cash flow turned negative (-$14.6 million) due to increased working capital, particularly accounts receivable.
  • 7The company issued $150 million in senior notes and repurchased $133.6 million of its common stock.

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