IDEXX Laboratories Announces Second Quarter Results
IDEXX Laboratories reported second quarter revenues of $861 million, reflecting a 4% increase overall and 6.5% organic growth, driven by strong demand in the CAG Diagnostics segment, which grew 4% reported and 7% organically. The company achieved record placements of premium instruments, boosting the global installed base by 15%. Despite these gains, EPS fell 33% to $1.56 due to $80 million in R&D investments. IDEXX revised its full-year revenue guidance to 3% - 5.5% growth, reflecting macroeconomic risks.
- Second quarter revenue growth of 4% reported and 6.5% organic.
- CAG Diagnostics recurring revenue growth of 4% reported and 7% organic.
- Record second quarter premium instrument placements, resulting in 15% growth in global installed base.
- Veterinary software and diagnostic imaging revenues grew 27% reported and 14% organically.
- EPS declined 33% compared to the prior year due to $80 million in discrete R&D investments.
- Operating margin dropped to 20.8%, 1,060 basis points lower than the prior year.
- Updated revenue guidance reduced to 3% - 5.5%, reflecting potential macroeconomic impacts.
- Achieves second quarter revenue growth of
4% reported and6.5% organic, driven by CAG Diagnostics recurring revenue growth of4% reported and7% organic, building on high prior year growth - Solid demand for diagnostic services and strong IDEXX execution support record second quarter premium instrument placements, driving
15% growth in global premium installed base - Delivers EPS of
$1.56 , representing declines of33% as reported and30% on a comparable basis, including$0.72 per share impact from discrete R&D investments - Adjusts 2022 revenue guidance to
3% -5.5% growth as reported and5.5% -8% organic. At midpoint, updated outlook reflects expectations for solid second half growth for CAG Diagnostics recurring revenues, similar to recent trends, adjusted for incremental benefits from higher pricing. The low end of the updated outlook incorporates a2.5% second half organic growth risk estimate related to potential additional impacts from macroeconomic conditions - Updated EPS outlook of
$7.77 -$8.05 reflects updated revenue outlook, a 50 basis point adjustment to the full year comparable operating margin outlook and$0.08 combined per share impact from updated foreign exchange and interest rate projections
WESTBROOK, Maine, Aug. 2, 2022 /PRNewswire/ -- IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced second quarter results, as well as an update on U.S. companion animal diagnostics trends.
Second Quarter Results
The Company reports revenues of
Second quarter earnings per diluted share ("EPS") were
"Building on strong prior year gains, IDEXX drove continued solid organic growth in the second quarter," said Jay Mazelsky, President and Chief Executive Officer. "I am especially pleased with the strong execution of our global teams resulting in record premium instrument placements and cloud- based practice management software adoption. IDEXX innovations have never been more important in helping veterinary clinics manage through capacity challenges and to achieve outstanding care for their patients."
Companion Animal Diagnostics Trends Update
Continued growth in demand for companion animal healthcare supported solid gains in CAG diagnostic products and services, compared to strong prior year demand levels. Average diagnostics revenues grew
Additional U.S. companion animal practice key metrics are available in the Q2 2022 Earnings Snapshot accessible on the IDEXX website, www.idexx.com/investors.
Second Quarter Performance Highlights
Companion Animal Group
The Companion Animal Group generated revenue growth of
- IDEXX VetLab® consumables generated
4% reported and8% organic revenue growth, with gains across U.S. and international regions supported by expansion of our global premium instrument installed base, benefits from net price gains and high customer retention levels. - Reference laboratory diagnostic and consulting services generated
4% reported and6% organic revenue growth driven by strong gains in the U.S., offset by flat organic revenue growth in international regions compared to strong prior year levels. Revenue growth reflects benefits from strong customer retention, new business gains and net price improvement. - Rapid assay products revenues grew
4% as reported and6% organically, supported by continued solid volume growth in the U.S. and net price gains.
Veterinary software, services and diagnostic imaging systems revenues grew
Water
Water revenues grew
Livestock, Poultry and Dairy ("LPD")
LPD revenues declined
Gross Profit and Operating Profit
Gross profits increased
Operating margin was
2022 Growth and Financial Performance Outlook
The Company is updating its full year revenue growth outlook to
The Company now projects full year operating margins of
The Company's EPS outlook of
The following table provides the Company's updated outlook for annual key financial metrics in 2022:
Amounts in millions except per share data and percentages | |||||
Growth and Financial Performance Outlook | 2022 | ||||
Revenue | - | ||||
Reported growth | 3 % | - | 5.5 % | ||
Organic growth | 5.5 % | - | 8 % | ||
CAG Diagnostics Recurring Revenue Growth | |||||
Reported growth | 4 % | - | 6 % | ||
Organic growth | 6.5 % | - | 9 % | ||
Operating Margin | 26.4 % | - | 26.9 % | ||
Operating margin expansion | (260 bps) | - | (210 bps) | ||
Impact of foreign exchange | ~ 20 bps | ||||
Comparable margin expansion | (280 bps) | - | (230 bps) | ||
Impact of discrete in-license of technology | (230 bps) | ||||
EPS | - | ||||
Reported growth | (10 %) | - | (6 %) | ||
Comparable growth | (4 %) | - | (1 %) | ||
Other Key Metrics | |||||
Net interest expense | - | ||||
Share-based compensation tax benefit | ~ | ||||
Share-based compensation tax rate benefit | ~ | ||||
Effective tax rate | 21.5 % | - | 22 % | ||
Share-based compensation EPS impact | ~ | ||||
Reduction in average shares outstanding | ~ | ||||
Operating Cash Flow | |||||
Free Cash Flow | |||||
Capital Expenditures | ~ |
The following table outlines estimates of foreign currency exchange rate impacts, net of foreign currency hedging transactions, and foreign currency exchange rate assumptions reflected in the above financial performance outlook for 2022.
Estimated Foreign Currency Exchange Rates and Impacts | 2022 | ||||
Revenue growth rate impact | (3.0 %) | - | (3.5 %) | ||
CAG Diagnostics recurring revenue growth rate impact | ~ (3.5)% | ||||
Operating margin growth impact | ~ 20 bps | ||||
EPS impact | (~ | ||||
EPS growth impact | (~ | ||||
Foreign Currency Exchange Rate Assumptions | |||||
In U.S. dollars | |||||
euro | |||||
British pound | |||||
Canadian dollar | |||||
Australian dollar | |||||
Relative to the U.S. dollar | |||||
Japanese yen | |||||
Chinese renminbi | |||||
Brazilian real | R |
Conference Call and Webcast Information
IDEXX Laboratories, Inc. will be hosting a conference call today at 8:30 a.m. (EDT) to discuss its second quarter 2022 results and management's outlook. To participate in the conference call, dial 1-866-374-5140 or 1-404-400-0571 and reference pin 28182746. Individuals can access a live webcast of the conference call through a link on the IDEXX website, www.idexx.com/investors. An archived edition of the webcast will be available after 1:00 p.m. (EDT) on that day via the same link and will remain available for one year.
2022 Investor Day
IDEXX Laboratories, Inc. will host its 2022 Investor Day on Thursday, August 11, 2022 from 8:00 am to approximately 12:00 pm (EDT). A live audio webcast and accompanying slide presentations will be available at www.idexx.com/investors. An archived webcast replay of the event will be available approximately one hour following the event at www.idexx.com/investors. For additional information contact investorrelations@idexx.com.
About IDEXX Laboratories, Inc.
IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help ensure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500® Index. Headquartered in Maine, IDEXX employs more than 10,000 people and offers solutions and products to customers in more than 175 countries. For more information about IDEXX, visit www.idexx.com.
Note Regarding Forward-Looking Statements
This earnings release contains statements about the Company's business prospects and estimates of the Company's financial results for future periods that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are included above under "Livestock, Poultry and Dairy ("LPD")", "2022 Growth and Financial Performance Outlook", and elsewhere and can be identified by the use of words such as "expects", "may", "anticipates", "intends", "would", "will", "plans", "believes", "estimates", "projected", "should", and similar words and expressions. Our forward-looking statements include statements relating to our expectations regarding LPD financial performance; revenue growth and EPS outlooks; operating and free cash flow forecast; projected impact of foreign currency exchange rates and interest rates; projected operating margins and expenses and capital expenditures; projected tax, tax rate and EPS benefits from share-based compensation arrangements; and projected effective tax rates, reduction of average shares outstanding and net interest expense. These statements are intended to provide management's expectation of future events as of the date of this earnings release; are based on management's estimates, projections, beliefs and assumptions as of the date of this earnings release; and are not guarantees of future performance. These forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, among other things, the matters described under the headings "Business," "Risk Factors," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and in the corresponding sections of the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022, as well as those described from time to time in the Company's other filings with the U.S. Securities and Exchange Commission available at www.sec.gov. The Company specifically disclaims any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Statement Regarding Non-GAAP Financial Measures
The following defines terms and conventions and provides reconciliations regarding certain measures used in this earnings release and/or the accompanying earnings conference call that are not required by, or presented in accordance with, generally accepted accounting principles in the United States of America ("GAAP"), otherwise referred to as non-GAAP financial measures. To supplement the Company's consolidated results presented in accordance with GAAP, the Company has disclosed non-GAAP financial measures that exclude or adjust certain items. Management believes these non-GAAP financial measures provide useful supplemental information for its and investors' evaluation of the Company's business performance and liquidity and are useful for period-over-period comparisons of the performance of the Company's business and its liquidity and to the performance and liquidity of our peers. While management believes that these non-GAAP financial measures are useful in evaluating the Company's business, this information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.
Constant currency - Constant currency references are non-GAAP financial measures which exclude the impact of changes in foreign currency exchange rates and are consistent with how management evaluates our performance and comparisons with prior and future periods. We estimated the net impacts of currency on our revenue, gross profit, operating profit, and EPS results by restating results to the average exchange rates or exchange rate assumptions for the comparative period, which includes adjusting for the estimated impacts of foreign currency hedging transactions and certain impacts on our effective tax rates. These estimated currency changes impacted second quarter 2022 results as follows: decreased gross profit growth by
Growth and organic revenue growth - All references to growth and organic growth refer to growth compared to the equivalent prior year period unless specifically noted. Organic revenue growth is a non-GAAP financial measure that excludes the impact of changes in foreign currency exchange rates, certain business acquisitions, and divestitures. Management believes that reporting organic revenue growth provides useful information to investors by facilitating easier comparisons of our revenue performance with prior and future periods and to the performance of our peers. Organic revenue growth should be considered in addition to, and not as a replacement of or a superior measure to, revenue growth reported in accordance with GAAP. See the supplementary analysis of results below for a reconciliation of reported revenue growth to organic revenue growth for the three months and six months ended June 30, 2022. Please refer to the 2022 Growth and Financial Performance Outlook section of this earnings release for estimated full year 2022 organic revenue growth for the Company and CAG Diagnostics recurring revenue. The percentage change in revenue resulting from acquisitions represents revenues during the current year period, limited to the initial 12 months from the date of the acquisition, that are directly attributable to business acquisitions. Revenue from acquisitions is expected to increase projected full year 2022 revenue growth by 50 basis points and to have no impact to projected full year 2022 CAG Diagnostics recurring revenue growth.
Comparable growth metrics - Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) are non-GAAP financial measures and exclude the impact of changes in foreign currency exchange rates and non-recurring or unusual items (if any). Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. Management believes that reporting comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) provides useful information to investors because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding key metrics used by management. Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) should be considered in addition to, and not as replacements of or superior measures to, gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain reported in accordance with GAAP.
The reconciliation of these non-GAAP financial measures is as follows:
Three Months Ended | Year-over-Year | Six Months Ended | Year-over-Year | |||||||
June 30 | June 30 | Change | June 30 | June 30 | Change | |||||
Dollar amounts in thousands | 2022 | 2021 | 2022 | 2021 | ||||||
Gross Profit (as reported) | $ 514,032 | $ 489,308 | 5 % | $ 960,090 | 5 % | |||||
Gross margin | 59.7 % | 59.2 % | 50 bps | 59.7 % | 59.9 % | (20) bps | ||||
Less: comparability adjustments | ||||||||||
Change from currency | (11,768) | — | (18,615) | — | ||||||
Comparable gross profit growth | $ 525,800 | $ 489,308 | 7 % | $ 960,090 | 7 % | |||||
Comparable gross margin and gross margin gain (or growth) | 59.2 % | 59.2 % | 0 bps | 59.3 % | 59.9 % | (60) bps | ||||
Operating expenses (as reported) | $ 334,966 | $ 230,055 | 46 % | $ 585,375 | $ 453,215 | 29 % | ||||
Less: comparability adjustments | ||||||||||
Change from currency | $ 5,517 | — | $ 8,386 | — | ||||||
Comparable operating expense growth | $ 340,483 | $ 230,055 | 48 % | $ 593,761 | $ 453,215 | 31 % | ||||
Income from operations (as reported) | $ 179,066 | $ 259,253 | (31) % | $ 427,410 | $ 506,875 | (16) % | ||||
Operating margin | 20.8 % | 31.4 % | (1,060) bps | 25.2 % | 31.6 % | (640) bps | ||||
Less: comparability adjustments | ||||||||||
Change from currency | (6,251) | — | (10,229) | — | ||||||
Comparable operating profit growth | $ 185,317 | $ 259,253 | (29) % | $ 437,639 | $ 506,875 | (14) % | ||||
Comparable operating margin and operating margin gain (or growth) | 20.9 % | 31.4 % | (1,050) bps | 25.2 % | 31.6 % | (640) bps | ||||
Amounts presented may not recalculate due to rounding. |
Projected 2022 comparable operating margin expansion outlined in the 2022 Growth and Financial Performance Outlook section of this earnings release reflects projected full year 2022 reported operating margin adjusted for estimated positive year-over-year foreign currency exchange rate change impact of approximately 20 basis points.
This impact and those described in the constant currency note above reconcile reported gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain (including projected 2022 operating margin expansion) to comparable gross profit growth, comparable gross margin gain, comparable operating expense growth, comparable operating profit growth and comparable operating margin gain for the Company.
Comparable EPS growth - Comparable EPS growth is a non-GAAP financial measure that represents the percentage change in earnings per share (diluted) ("EPS") for a measurement period, as compared to the prior base period, net of the impact of changes in foreign currency exchange rates from the prior base period and excluding the tax benefits of share-based compensation activity under ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, and non-recurring or unusual items (if any). Management believes comparable EPS growth is a more useful way to measure the Company's business performance than EPS growth because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding a key metric used by management. Comparable EPS growth should be considered in addition to, and not as a replacement of or a superior measure to, EPS growth reported in accordance with GAAP. Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts.
The reconciliation of this non-GAAP financial measure is as follows:
Three Months Ended | Year-over-Year | Six Months Ended | Year-over-Year | |||||||||
June 30 | June 30 | Growth | June 30 | June 30 | Growth | |||||||
2022 | 2021 | 2022 | 2021 | |||||||||
Earnings per share (diluted) | $ 1.56 | $ 2.34 | (33) % | $ 3.82 | $ 4.69 | (19) % | ||||||
Less: comparability adjustments | ||||||||||||
Share-based compensation activity | 0.03 | 0.07 | 0.09 | 0.24 | ||||||||
Change from currency | (0.06) | — | (0.09) | — | ||||||||
Comparable EPS growth | 1.58 | 2.27 | (30) % | 3.83 | 4.45 | (14) % | ||||||
Amounts presented may not recalculate due to rounding. |
Projected 2022 comparable EPS growth outlined in the 2022 Growth and Financial Performance Outlook section of this earnings release reflects adjustments including estimated positive share-based compensation activity of
These impacts and those described in the constant currency note above reconcile reported EPS growth (including projected 2022 reported EPS growth) to comparable EPS growth for the Company.
Free cash flow - Free cash flow is a non-GAAP financial measure and means, with respect to a measurement period, the cash generated from operations during that period, reduced by the Company's investments in property and equipment. Management believes free cash flow is a useful measure because it indicates the cash the operations of the business are generating after appropriate reinvestment for recurring investments in property and equipment that are required to operate the business. Free cash flow should be considered in addition to, and not as a replacement of or a superior measure to, net cash provided by operating activities. See the supplementary analysis of results below for our calculation of free cash flow for the six months ended June 30, 2022 and 2021. To estimate projected 2022 free cash flow, we have deducted projected purchases of property and equipment (also referred to as capital expenditures) of approximately
Debt to Adjusted EBITDA (Leverage Ratios) - Adjusted EBITDA, gross debt, and net debt are non-GAAP financial measures. Adjusted EBITDA is a non-GAAP financial measure of earnings before interest, taxes, depreciation, amortization, non-recurring transaction expenses incurred in connection with acquisitions, share-based compensation expense, and certain other non-cash losses and charges. Management believes that reporting Adjusted EBITDA, gross debt and net debt in the Debt to Adjusted EBITDA ratios provides supplemental analysis to help investors further evaluate the Company's business performance and available borrowing capacity under the Company's credit facility. Adjusted EBITDA, gross debt, and net debt should be considered in addition to, and not as replacements of or superior measures to, net income or total debt reported in accordance with GAAP. For further information on how Adjusted EBITDA and the Debt to Adjusted EBITDA Ratios are calculated, see the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2022.
IDEXX Laboratories, Inc. and Subsidiaries | ||||||||||
Condensed Consolidated Statement of Operations | ||||||||||
Amounts in thousands except per share data (Unaudited) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | June 30, | June 30, | June 30, | |||||||
2022 | 2021 | 2022 | 2021 | |||||||
Revenue: | Revenue | |||||||||
Expenses and Income: | Cost of revenue | 346,514 | 336,834 | 684,310 | 643,759 | |||||
Gross profit | 514,032 | 489,308 | 1,012,785 | 960,090 | ||||||
Sales and marketing | 130,257 | 119,032 | 262,549 | 233,843 | ||||||
General and administrative | 81,488 | 73,326 | 159,437 | 144,096 | ||||||
Research and development | 123,221 | 37,697 | 163,389 | 75,276 | ||||||
Income from operations | 179,066 | 259,253 | 427,410 | 506,875 | ||||||
Interest expense, net | (7,983) | (7,522) | (14,836) | (15,054) | ||||||
Income before provision for income taxes | 171,083 | 251,731 | 412,574 | 491,821 | ||||||
Provision for income taxes | 39,104 | 49,125 | 86,630 | 84,926 | ||||||
Net Income: | Net income | 131,979 | 202,606 | 325,944 | 406,895 | |||||
Less: Noncontrolling interest in subsidiary's earnings | — | 24 | — | 56 | ||||||
Net income attributable to stockholders | ||||||||||
Earnings per share: Basic | ||||||||||
Earnings per share: Diluted | ||||||||||
Shares outstanding: Basic | 83,922 | 85,325 | 84,164 | 85,427 | ||||||
Shares outstanding: Diluted | 84,858 | 86,654 | 85,222 | 86,794 |
IDEXX Laboratories, Inc. and Subsidiaries | ||||||||||
Selected Operating Information (Unaudited) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | June 30, | June 30, | June 30, | |||||||
2022 | 2021 | 2022 | 2021 | |||||||
Operating Ratios | Gross profit | 59.7 % | 59.2 % | 59.7 % | 59.9 % | |||||
(as a percentage of revenue): | Sales, marketing, general and administrative expense | 24.6 % | 23.3 % | 24.9 % | 23.6 % | |||||
Research and development expense | 14.3 % | 4.6 % | 9.6 % | 4.7 % | ||||||
Income from operations1 | 20.8 % | 31.4 % | 25.2 % | 31.6 % | ||||||
1Amounts presented may not recalculate due to rounding. |
IDEXX Laboratories, Inc. and Subsidiaries | ||||||||||
Segment Information | ||||||||||
Amounts in thousands (Unaudited) | ||||||||||
Three Months Ended | ||||||||||
June 30, 2022 | Percent of | June 30, 2021 | Percent of | |||||||
Revenue: | CAG | |||||||||
Water | 39,195 | 37,191 | ||||||||
LPD | 29,889 | 33,524 | ||||||||
Other | 7,375 | 9,832 | ||||||||
Total | ||||||||||
Gross Profit: | CAG | 59.5 % | 59.1 % | |||||||
Water | 27,359 | 69.8 % | 25,747 | 69.2 % | ||||||
LPD | 16,996 | 56.9 % | 19,526 | 58.2 % | ||||||
Other | 3,423 | 46.4 % | 3,249 | 33.0 % | ||||||
Total | 59.7 % | 59.2 % | ||||||||
Income from | CAG | 20.0 % | 31.5 % | |||||||
Water | 17,920 | 45.7 % | 17,228 | 46.3 % | ||||||
LPD | 3,230 | 10.8 % | 6,868 | 20.5 % | ||||||
Other | 1,390 | 18.8 % | 422 | 4.3 % | ||||||
Total | 20.8 % | 31.4 % | ||||||||
IDEXX Laboratories, Inc. and Subsidiaries | ||||||||||
Segment Information | ||||||||||
Amounts in thousands (Unaudited) | ||||||||||
Six Months Ended | ||||||||||
June 30, 2022 | Percent of | June 30, 2021 | Percent of | |||||||
Revenue: | CAG | |||||||||
Water | 75,566 | 71,231 | ||||||||
LPD | 60,759 | 72,794 | ||||||||
Other | 15,499 | 21,462 | ||||||||
Total | ||||||||||
Gross Profit: | CAG | 59.2 % | 59.3 % | |||||||
Water | 53,096 | 70.3 % | 49,212 | 69.1 % | ||||||
LPD | 36,543 | 60.1 % | 46,407 | 63.8 % | ||||||
Other | 7,793 | 50.3 % | 10,811 | 50.4 % | ||||||
Total | 59.7 % | 59.9 % | ||||||||
Income from | CAG | 24.6 % | 31.1 % | |||||||
Water | 34,574 | 45.8 % | 32,000 | 44.9 % | ||||||
LPD | 9,967 | 16.4 % | 20,676 | 28.4 % | ||||||
Other | 3,218 | 20.8 % | 6,254 | 29.1 % | ||||||
Total | 25.2 % | 31.6 % |
IDEXX Laboratories, Inc. and Subsidiaries | ||||||||||||||
Revenues and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets | ||||||||||||||
Amounts in thousands (Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
June 30, 2022 | June 30, 2021 | Dollar | Reported | Percentage | Percentage | Organic | ||||||||
Net Revenue | ||||||||||||||
CAG | 5.2 % | (3.3 %) | 1.1 % | 7.3 % | ||||||||||
United States | 532,626 | 486,252 | 46,374 | 9.5 % | — | 1.5 % | 8.1 % | |||||||
International | 251,461 | 259,343 | (7,882) | (3.0 %) | (9.2 %) | 0.4 % | 5.7 % | |||||||
Water | 39,195 | 37,191 | 2,004 | 5.4 % | (3.5 %) | — | 8.9 % | |||||||
United States | 19,533 | 17,747 | 1,786 | 10.1 % | — | — | 10.1 % | |||||||
International | 19,662 | 19,444 | 218 | 1.1 % | (6.7 %) | — | 7.8 % | |||||||
LPD | 29,889 | 33,524 | (3,635) | (10.8 %) | (5.8 %) | — | (5.0 %) | |||||||
United States | 3,742 | 3,516 | 226 | 6.5 % | — | — | 6.5 % | |||||||
International | 26,147 | 30,008 | (3,861) | (12.9 %) | (6.4 %) | — | (6.4 %) | |||||||
Other | 7,375 | 9,832 | (2,457) | (25.0 %) | 1.9 % | — | (26.9 %) | |||||||
Total Company | 4.2 % | (3.3 %) | 1.0 % | 6.5 % | ||||||||||
United States | 559,825 | 515,238 | 44,587 | 8.7 % | — | 1.4 % | 7.3 % | |||||||
International | 300,721 | 310,904 | (10,183) | (3.3 %) | (8.6 %) | 0.3 % | 5.0 % | |||||||
Three Months Ended | ||||||||||||||
June 30, 2022 | June 30, 2021 | Dollar | Reported | Percentage Currency | Percentage | Organic | ||||||||
Net CAG Revenue | ||||||||||||||
CAG Diagnostics recurring revenue: | 3.6 % | (3.3 %) | 0.2 % | 6.8 % | ||||||||||
IDEXX VetLab consumables | 266,079 | 256,352 | 9,727 | 3.8 % | (4.1 %) | — | 7.9 % | |||||||
Rapid assay products | 87,481 | 83,887 | 3,594 | 4.3 % | (1.6 %) | — | 5.8 % | |||||||
Reference laboratory diagnostic and consulting services | 304,130 | 293,675 | 10,455 | 3.6 % | (3.0 %) | 0.4 % | 6.1 % | |||||||
CAG Diagnostics services and accessories | 27,723 | 27,386 | 337 | 1.2 % | (4.4 %) | — | 5.7 % | |||||||
CAG Diagnostics capital – instruments | 36,227 | 35,054 | 1,173 | 3.3 % | (4.9 %) | — | 8.3 % | |||||||
Veterinary software, services and diagnostic imaging systems | 62,447 | 49,241 | 13,206 | 26.8 % | (1.1 %) | 13.8 % | 14.0 % | |||||||
Net CAG revenue | 5.2 % | (3.3 %) | 1.1 % | 7.3 % | ||||||||||
Three Months Ended | ||||||||||||||
June 30, 2022 | June 30, 2021 | Dollar | Reported | Percentage | Percentage | Organic | ||||||||
CAG Diagnostics recurring revenue: | 3.6 % | (3.3 %) | 0.2 % | 6.8 % | ||||||||||
United States | 7.7 % | — | 0.1 % | 7.6 % | ||||||||||
International | ( | (3.7 %) | (9.2 %) | 0.4 % | 5.1 % | |||||||||
1See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding. |
IDEXX Laboratories, Inc. and Subsidiaries | ||||||||||||||
Revenues and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets | ||||||||||||||
Amounts in thousands (Unaudited) | ||||||||||||||
Six Months Ended | ||||||||||||||
June 30, 2022 | June 30, 2021 | Dollar | Reported | Percentage | Percentage | Organic | ||||||||
Net Revenue | ||||||||||||||
CAG | 7.4 % | (2.6 %) | 1.3 % | 8.7 % | ||||||||||
United States | 1,032,392 | 930,662 | 101,730 | 10.9 % | — | 1.8 % | 9.1 % | |||||||
International | 512,879 | 507,700 | 5,179 | 1.0 % | (7.3 %) | 0.4 % | 7.9 % | |||||||
Water | 75,566 | 71,231 | 4,335 | 6.1 % | (2.6 %) | — | 8.7 % | |||||||
United States | 37,364 | 34,315 | 3,049 | 8.9 % | — | — | 8.9 % | |||||||
International | 38,202 | 36,916 | 1,286 | 3.5 % | (5.0 %) | — | 8.5 % | |||||||
LPD | 60,759 | 72,794 | (12,035) | (16.5 %) | (3.8 %) | — | (12.7 %) | |||||||
United States | 7,602 | 7,264 | 338 | 4.7 % | — | — | 4.7 % | |||||||
International | 53,157 | 65,530 | (12,373) | (18.9 %) | (4.1 %) | — | (14.8 %) | |||||||
Other | 15,499 | 21,462 | (5,963) | (27.8 %) | 0.7 % | — | (28.5 %) | |||||||
Total Company | 5.8 % | (2.6 %) | 1.2 % | 7.2 % | ||||||||||
United States | 1,085,731 | 987,876 | 97,855 | 9.9 % | — | 1.7 % | 8.2 % | |||||||
International | 611,364 | 615,973 | (4,609) | (0.7 %) | (6.7 %) | 0.3 % | 5.6 % | |||||||
Six Months Ended | ||||||||||||||
June 30, 2022 | June 30, 2021 | Dollar | Reported | Percentage Currency | Percentage | Organic | ||||||||
Net CAG Revenue | ||||||||||||||
CAG Diagnostics recurring revenue: | 5.6 % | (2.6 %) | 0.2 % | 8.0 % | ||||||||||
IDEXX VetLab consumables | 533,252 | 502,444 | 30,808 | 6.1 % | (3.3 %) | — | 9.5 % | |||||||
Rapid assay products | 162,000 | 153,498 | 8,502 | 5.5 % | (1.3 %) | — | 6.9 % | |||||||
Reference laboratory diagnostic and consulting services | 599,205 | 569,456 | 29,749 | 5.2 % | (2.3 %) | 0.5 % | 7.0 % | |||||||
CAG Diagnostics services and accessories | 55,766 | 53,182 | 2,584 | 4.9 % | (3.6 %) | — | 8.4 % | |||||||
CAG Diagnostics capital – instruments | 73,224 | 66,244 | 6,980 | 10.5 % | (4.3 %) | — | 14.8 % | |||||||
Veterinary software, services and diagnostic imaging systems | 121,824 | 93,538 | 28,286 | 30.2 % | (0.8 %) | 17.3 % | 13.7 % | |||||||
Net CAG revenue | 7.4 % | (2.6 %) | 1.3 % | 8.7 % | ||||||||||
Six Months Ended | ||||||||||||||
June 30, 2022 | June 30, 2021 | Dollar | Reported | Percentage | Percentage | Organic | ||||||||
CAG Diagnostics recurring revenue: | 5.6 % | (2.6 %) | 0.2 % | 8.0 % | ||||||||||
United States | 8.8 % | — | 0.1 % | 8.7 % | ||||||||||
International | ( | (0.2 %) | (7.3 %) | 0.5 % | 6.6 % | |||||||||
1See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding. |
IDEXX Laboratories, Inc. and Subsidiaries | ||||||
Condensed Consolidated Balance Sheet | ||||||
Amounts in thousands (Unaudited) | ||||||
June 30, | December 31, | |||||
Assets: | Current Assets: | |||||
Cash and cash equivalents | ||||||
Accounts receivable, net | 412,898 | 368,348 | ||||
Inventories | 332,565 | 269,030 | ||||
Other current assets | 183,000 | 173,823 | ||||
Total current assets | 1,042,825 | 955,655 | ||||
Property and equipment, net | 594,224 | 587,667 | ||||
Other long-term assets, net | 970,136 | 893,881 | ||||
Total assets | ||||||
Liabilities and Stockholders' | ||||||
Equity: | Current Liabilities: | |||||
Accounts payable | ||||||
Accrued liabilities | 387,510 | 458,909 | ||||
Line of credit | 611,000 | 73,500 | ||||
Current portion of long-term debt | — | 74,996 | ||||
Deferred revenue | 40,775 | 40,034 | ||||
Total current liabilities | 1,166,547 | 763,579 | ||||
Long-term debt, net of current portion | 767,995 | 775,205 | ||||
Other long-term liabilities, net | 215,635 | 208,427 | ||||
Total long-term liabilities | 983,630 | 983,632 | ||||
Total stockholders' equity | 457,008 | 689,992 | ||||
Total liabilities and stockholders' equity |
IDEXX Laboratories, Inc. and Subsidiaries | ||||||||||||
Select Balance Sheet Information (Unaudited) | ||||||||||||
June 30, | March 31, | December 31, | September 30, 2021 | June 30, | ||||||||
Selected Balance Sheet Information: | Days sales outstanding1 | 43.2 | 42.0 | 42.4 | 42.7 | 42.2 | ||||||
Inventory turns2 | 1.5 | 1.6 | 2.0 | 1.9 | 2.1 |
1Days sales outstanding represents the average of the accounts receivable balances at the beginning and end of each quarter divided by | ||||||||||||
2Inventory turns represent inventory-related cost of product revenue for the twelve months preceding each quarter-end divided by the average |
IDEXX Laboratories, Inc. and Subsidiaries | ||||||
Condensed Consolidated Statement of Cash Flows | ||||||
Amounts in thousands (Unaudited) | ||||||
Six Months Ended | ||||||
June 30, 2022 | June 30, 2021 | |||||
Operating: | Cash Flows from Operating Activities: | |||||
Net income | ||||||
Non-cash adjustments to net income | 61,563 | 79,002 | ||||
Changes in assets and liabilities | (206,951) | (127,520) | ||||
Net cash provided by operating activities | 180,556 | 358,377 | ||||
Investing: | Cash Flows from Investing Activities: | |||||
Purchases of property and equipment | (61,924) | (42,744) | ||||
Acquisition of intangible assets, businesses and equity investment | (35,000) | (156,506) | ||||
Net cash used by investing activities | (96,924) | (199,250) | ||||
Financing: | Cash Flows from Financing Activities: | |||||
Borrowings under revolving credit facilities, net | 537,500 | — | ||||
Payment of senior debt | (75,000) | — | ||||
Payments for the acquisition-related contingent consideration and holdbacks | (2,816) | (1,500) | ||||
Repurchases of common stock | (573,060) | (320,787) | ||||
Proceeds from exercises of stock options and employee stock purchase plans | 18,379 | 27,371 | ||||
Shares withheld for statutory tax withholding payments on restricted stock | (10,390) | (14,952) | ||||
Net cash used by financing activities | (105,387) | (309,868) | ||||
Net effect of changes in exchange rates on cash | (8,337) | (1,053) | ||||
Net decrease in cash and cash equivalents | (30,092) | (151,794) | ||||
Cash and cash equivalents, beginning of period | 144,454 | 383,928 | ||||
Cash and cash equivalents, end of period |
IDEXX Laboratories, Inc. and Subsidiaries | ||||||
Free Cash Flow | ||||||
Amounts in thousands except per share data (Unaudited) | ||||||
Six Months Ended | ||||||
June 30, 2022 | June 30, 2021 | |||||
Free Cash Flow: | Net cash provided by operating activities | $ 180,556 | $ 358,377 | |||
Investing cash flows attributable to purchases of property and equipment | (61,924) | (42,744) | ||||
Free cash flow1 | $ 118,632 | $ 315,633 | ||||
1See Statements Regarding Non-GAAP Financial Measures, above. |
IDEXX Laboratories, Inc. and Subsidiaries | ||||||||
Common Stock Repurchases | ||||||||
Amounts in thousands except per share data (Unaudited) | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||
Shares repurchased in the open market | 809 | 341 | 1,311 | 618 | ||||
Shares acquired through employee surrender for statutory tax withholding | — | — | 21 | 28 | ||||
Total shares repurchased | 809 | 341 | 1,332 | 646 | ||||
Cost of shares repurchased in the open market | $ 313,455 | $ 188,409 | $ 576,238 | $ 327,622 | ||||
Cost of shares for employee surrenders | 52 | 3 | 10,390 | 14,986 | ||||
Total cost of shares | $ 313,507 | $ 188,412 | $ 586,628 | $ 342,608 | ||||
Average cost per share – open market repurchases | $ 387.78 | $ 552.08 | $ 439.63 | $ 529.45 | ||||
Average cost per share – employee surrenders | $ 369.63 | $ 550.59 | $ 504.60 | $ 544.08 | ||||
Average cost per share – total | $ 387.78 | $ 552.08 | $ 440.63 | $ 530.07 |
Contact: John Ravis, Investor Relations, 1-207-556-8155
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SOURCE IDEXX Laboratories, Inc.
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