Summary
IDEXX Laboratories, Inc. reported its financial results for the nine months ended September 30, 2015. Total revenue increased by 6.0% to $1.202 billion compared to the same period in the prior year. This growth was primarily driven by the Companion Animal Group (CAG) segment, which saw an 8.7% increase in revenue, largely due to strong performance in diagnostics recurring revenue and instrument sales. The company's operational efficiency saw an impairment charge of $8.2 million related to internally-developed software, impacting operating income. However, excluding this charge, operating income showed a healthy increase. The company also managed its liquidity effectively, with sufficient cash and credit facilities to fund operations and growth. Significant debt issuances occurred throughout the period to support general corporate purposes. Investors should note the ongoing impact of foreign currency exchange rates, which negatively affected revenue and operating profit due to a strengthening U.S. dollar, despite hedging efforts. The company is also navigating the transition to an all-direct sales strategy in the U.S., which is expected to drive future growth but also impacted working capital demands.
Financial Highlights
54 data points| Revenue | $406.39M |
| Cost of Revenue | $182.11M |
| Gross Profit | $224.27M |
| R&D Expenses | $24.86M |
| Operating Income | $71.89M |
| Interest Expense | $7.75M |
| Net Income | $44.22M |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.48 |
| Shares Outstanding (Basic) | 91.94M |
| Shares Outstanding (Diluted) | 92.90M |
Key Highlights
- 1Total revenue for the nine months ended September 30, 2015, increased by 6.0% to $1.202 billion.
- 2The Companion Animal Group (CAG) segment was the primary revenue driver, with an 8.7% increase, led by recurring diagnostics revenue and instrument sales.
- 3Operating income saw a reported increase of 3.3%, but excluding an $8.2 million impairment charge, the increase was a more robust 4.8%.
- 4Net cash provided by operating activities decreased significantly by $66.1 million year-over-year, primarily due to changes in operating assets and liabilities.
- 5The company raised approximately $250 million in senior notes during the nine months ended September 30, 2015, to support general corporate purposes.
- 6Foreign currency exchange rates had a negative impact, reducing revenue by approximately $71.0 million for the nine-month period due to a strengthening U.S. dollar.
- 7The company completed its transition to an all-direct sales strategy in the U.S., which is expected to positively impact future revenue but has increased working capital demands.