Unassociated Document

EX-99.1 2 v172566_ex99-1.htm Unassociated Document

Contact: Merilee Raines, Chief Financial Officer, 1-207-556-8155

FOR IMMEDIATE RELEASE

IDEXX Laboratories Announces

Fourth Quarter and Full Year Results

WESTBROOK, Maine, January 29, 2010 — IDEXX Laboratories, Inc. (NASDAQ: IDXX), today reported that revenues for the fourth quarter of 2009 increased 11% to $270.3 million, from $243.3 million for the fourth quarter of 2008. Organic revenue growth, as defined below, was 6%. Earnings per diluted share (“EPS”) for the quarter ended December 31, 2009 were $0.51, compared to $0.39 for the same period in the prior year. EPS grew 16% when compared to fourth quarter 2008 non-GAAP EPS, which adjusted EPS for the 2008 disposition of the pharmaceutical product lines and related restructuring. Please refer to the non-GAAP financial measures table below.

Organic revenue growth excludes the impact of changes in currency exchange rates, which contributed approximately 5% to revenue growth, and revenue from businesses acquired or divested subsequent to the beginning of the prior year period, which had minimal impact on revenue growth.

“IDEXX had a strong fourth quarter that exceeded our expectations,” stated Jonathan W. Ayers, Chairman and Chief Executive Officer. “Organic revenue growth, led by our Companion Animal Group, increased modestly to 6%, as strong demand for certain products such as our Catalyst Dx® chemistry analyzer offset continued economic weakness and soft consumer spending.”

“Sales of instruments and consumables, our largest business, benefited from Catalyst sales as we placed 763 units in the fourth quarter and over 2,046 units for the year.”

“International markets, particularly the Asia Pacific region, continued to perform very well. In that region, organic growth was 30% for the quarter and 20% for the year, reflecting a further acceleration of growth in this region.”

“Throughout the year, we continued to identify opportunities for increased operating efficiency while maintaining investment in areas critical to achieving our longer-term strategic and operational objectives. This focus on operational efficiency enabled us to exceed our earnings guidance for the year, despite weaker than anticipated top-line growth.”

“As we look to 2010, we remain confident in our growth strategies due to the fundamental attractiveness of our markets, our unique and innovative product and service offering, and our global footprint. We also are targeting earnings to grow faster than revenue, reflecting operating margin expansion in our two largest businesses, instruments and consumables and reference laboratory services.”

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 2 of 14

Revenue Performance

Please refer to the table below entitled “Revenues and Revenue Growth Analysis by Product and Service Categories” in conjunction with the following discussion.

Companion Animal Group. Companion Animal Group ("CAG") revenues for the fourth quarter of 2009 were $217.9 million compared to $196.5 million for the fourth quarter of 2008. Changes in foreign currency exchange rates and revenues from a recently acquired business contributed approximately 4% and 1%, respectively, to revenue growth. Organic growth of 6% was the result of increased sales volume, primarily in the IDEXX VetLab® and laboratory and consulting services product lines. In the IDEXX VetLab® product line, higher sales volume was driven by sales of our Catalyst Dx® chemistry analyzer and instrument consumables. In the laboratory and consulting services product line, revenue growth was due to higher volume and higher unit sales prices on reference laboratory tests. These favorable impacts were partly offset by lower sales volume and lower average unit sales prices for LaserCyte® hematology analyzers.

Water. Water segment revenues for the fourth quarter of 2009 were $18.5 million compared to $17.2 million for the fourth quarter of 2008. Changes in foreign currency exchange rates contributed approximately 5% to revenue growth. Organic revenue growth of 3% was the result of higher unit sales prices due, in part, to higher relative sales in geographies where products are sold at higher unit sales prices.

Production Animal Segment. Production Animal Segment (“PAS”) revenues for the fourth quarter of 2009 were $23.4 million compared to $20.3 million for the fourth quarter of 2008. Changes in foreign currency exchange rates contributed approximately 10% to revenue growth. Organic revenue growth of 5% was the result of higher sales volumes, partly offset by lower unit sales prices.

Year-to-Date Results

Revenues for the year ended December 31, 2009 increased 1% to $1.032 billion, from $1.024 billion for the year ended December 31, 2008. Organic growth for the year ended December 31, 2009, was 5%. Changes in currency exchange rates and the impact of divestitures and discontinued products, net of revenues from businesses recently acquired, reduced revenue growth by approximately 4%.

EPS for 2009 were $2.01, compared to $1.87 for the year ended December 31, 2008. EPS grew 6% when compared to 2008 non-GAAP diluted EPS of $1.90. Please refer to the non-GAAP financial measures table below.

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 3 of 14

Additional Operating Results for the Fourth Quarter

Gross profit for the fourth quarter of 2009 increased $12.4 million, or 10%, to $132.9 million from $120.5 million for the fourth quarter of 2008. As a percentage of total revenue, gross profit decreased slightly to 49%. The decrease in gross profit percentage was due primarily to the unfavorable net impact of foreign currency exchange rates, as the favorable impact on revenue of changes in foreign currency exchange rates was more than offset by losses on foreign currency hedge contracts and by the unfavorable impact on foreign currency denominated expenses. Gross profit percentage was also impacted by higher relative sales of lower margin IDEXX VetLab® instruments and laboratory and consulting services and lower average sales prices in certain product lines. These unfavorable items were partly offset by gross profit improvement in our laboratory and consulting services product line, lower royalty expense, and lower depreciation expense associated with IDEXX VetLab® instruments that are under rental agreements with customers.

Research and development ("R&D") expense for the fourth quarter of 2009 was $16.0 million, or 6% of revenue, compared to $17.1 million, or 7% of revenue for the fourth quarter of 2008. The decrease in R&D expense was due to the absence of pharmaceutical business R&D spending in the fourth quarter of 2009, resulting from the disposition of substantially all of our pharmaceutical product line and assets in the fourth quarter of 2008.

Selling, general and administrative ("SG&A") expense for the fourth quarter of 2009 was $72.8 million, or 27% of revenue, compared to $66.1 million, or 27% of revenue, for the fourth quarter of 2008. The increase in SG&A expense resulted primarily from higher personnel costs in selling, customer support and administrative functions, and the unfavorable impact of exchange rate changes on foreign currency denominated expenses. Fourth quarter 2008 SG&A included a charge of $1.5 million related to the 2008 disposition and the related restructuring of the remaining pharmaceutical product line.

Supplementary Analysis of Results

The accompanying financial tables provide more information concerning our revenue and other operating results for the three and twelve months ended December 31, 2009, as well as a reconciliation of earnings per share to non-GAAP EPS.

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 4 of 14

Outlook for 2010

The Company provides the following updated guidance for the full year of 2010. This guidance reflects an assumption that the value of the U.S. dollar relative to other currencies will remain at its current level for the balance of 2010. Fluctuations in foreign currency exchange rates from current levels could have a significant positive or negative impact on our actual results of operations in 2010.

Revenues are expected to be $1.1 to $1.115 billion, which represents reported revenue growth of 7% to 8% and organic revenue growth of 5% to 6%. This guidance is higher than the previous guidance of $1.08 to $1.1 billion, provided in October 2009, as a slight increase in anticipated organic revenue growth is anticipated to be partially offset by lower estimated currency benefits from the weakening of the U.S. Dollar relative to other major currencies.

EPS are expected to be $2.20 to $2.25, compared to our previous guidance of $2.15 to $2.25.

Free cash flow is expected to be approximately 110% of net income.

Conference Call and Webcast Information

IDEXX Laboratories will be hosting a conference call today at 9:00 a.m. (eastern) to discuss its fourth quarter results. To participate in the conference call, dial 1-612-288-0329 or 1-800-288-8967 and reference confirmation code 143973. An audio replay will be available through February 5, 2010 by dialing 1-320-365-3844 and referencing replay code 143973.

The call will also be available via live or archived Webcast on the IDEXX Laboratories' web site at www.idexx.com.

About IDEXX Laboratories

IDEXX Laboratories, Inc. is a leader in pet healthcare innovation, serving practicing veterinarians around the world with a broad range of diagnostic and information technology-based products and services. IDEXX products enhance the ability of veterinarians to provide advanced medical care, improve staff efficiency and to build more economically successful practices. IDEXX is also a worldwide leader in providing diagnostic tests and information for the production animal industry and tests for the quality and safety of water and milk. Headquartered in Maine, IDEXX Laboratories employs more than 4,800 people and offers products to customers in over 100 countries.

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 5 of 14

Note Regarding Forward-Looking Statements

This press 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. These statements are based on management's expectations of future events as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments. Actual results could differ materially from management’s expectations. Factors that could cause or contribute to such differences include the following: the Company’s ability to develop, manufacture, introduce and market new products and enhancements to existing products; the impact of a weak economy on demand for the Company’s products and services; the impact of changes and disruptions in financial and currency markets; the effectiveness of the Company’s sales and marketing activities; disruptions, shortages or pricing changes that affect the Company’s purchases of products and materials from third parties, including from sole source suppliers; the Company’s ability to identify acquisition opportunities, complete acquisitions and integrate acquired businesses; the impact of competition, technological change, and veterinary hospital consolidation on the markets for the Company’s products; the Company’s ability to manufacture complex biologic products; the effect of government regulation on the Company’s business, including government decisions about whether and when to approve the Company’s products and decisions regarding labeling, manufacturing and marketing products; the impact of distributor purchasing decisions on sales of the Company’s products that are sold through distribution; changes or trends in veterinary medicine that affect the rate of use of the Company’s products and services by veterinarians; the Company’s ability to obtain patent and other intellectual property protection for its products, successfully enforce its intellectual property rights and defend itself against third party claims against the Company; the effects of operations outside the U.S., including from currency fluctuations, different regulatory, political and economic conditions, and different market conditions; the effects of interruptions to the Company’s operations due to natural disasters or system failures; and the loss of key employees. A further description of these and other factors can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2008, and quarterly report on Form 10-Q for the quarter ended September 30, 2009, in the section captioned "Risk Factors.”

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 6 of 14

IDEXX Laboratories, Inc. and Subsidiaries

Consolidated Statement of Operations

Amounts in thousands except per share data (Unaudited)

		Three Months Ended						Twelve Months Ended
		December 31,			December 31,			December 31,			December 31,
		2009			2008			2009			2008
Revenue:	Revenue	$	270,335		$	243,293		$	1,031,633		$	1,024,030
Expenses and
Income:	Cost of revenue		137,404			122,772			505,352			494,264
	Gross profit		132,931			120,521			526,281			529,766
	Sales and marketing		43,383			39,951			167,748			169,693
	General and administrative		29,393			26,179			117,440			115,586
	Research and development		16,008			17,063			65,124			70,552
	Loss on disposition of pharmaceutical product
	lines and related restructuring		-			1,479			-			1,479
	Income from operations		44,147			35,849			175,969			172,456
	Interest expense, net		(243	)		(581	)		(1,430	)		(2,269	)
	Income before provision for income taxes		43,904			35,268			174,539			170,187
	Provision for income taxes		12,943			11,713			52,304			54,018
Net Income:	Net income		30,961			23,555			122,235			116,169
	Less: Noncontrolling interest in subsidiary’s
	earnings		10			-			10			-
	Net income attributable to stockholders	$	30,951		$	23,555		$	122,225		$	116,169
	Earnings per share: Basic	$	0.53		$	0.40		$	2.08		$	1.94
	Earnings per share: Diluted	$	0.51		$	0.39		$	2.01		$	1.87
	Shares outstanding: Basic		58,506			59,453			58,809			59,953
	Shares outstanding: Diluted		60,507			61,083			60,682			62,249

IDEXX Laboratories, Inc. and Subsidiaries

Key Operating Information (Unaudited)

		Three Months Ended						Twelve Months Ended
		December 31,			December 31,			December 31,			December 31,
		2009			2008			2009			2008
Key Operating	Gross profit		49.2	%		49.5	%		51.0	%		51.7	%
Ratios (as a	Sales, marketing, general and
percentage of	administrative expense		26.9	%		27.2	%		27.6	%		27.9	%
revenue):	Research and development expense		5.9	%		7.0	%		6.3	%		6.9	%
	Loss on disposition of pharmaceutical product
	lines and related restructuring		-			0.6	%		-			0.1	%
	Income from operations(1)		16.3	%		14.7	%		17.1	%		16.8	%

International	International revenue (in thousands)	$	118,660		$	97,071		$	417,116		$	413,973
Revenue:	International revenue as percentage of
	total revenue		43.9	%		39.9	%		40.4	%		40.4	%

(1) The sum of individual items may not equal the total due to rounding.

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 7 of 14

IDEXX Laboratories, Inc. and Subsidiaries

Non-GAAP Financial Measures

Amounts in thousands except per share data (Unaudited)

	Three Months Ended
													Net Income
							Income from						Attributable to						Earnings per Share
	Gross Profit						Operations						Stockholders						Diluted
	Dec. 31,			Dec. 31,			Dec. 31,			Dec. 31,			Dec. 31,			Dec. 31,			Dec. 31,		Dec. 31,
	2009			2008			2009			2008			2009			2008			2009		2008

GAAP measurement	$	132,931		$	120,521		$	44,147		$	35,849		$	30,951		$	23,555		$	0.51	$	0.39
% of revenue		49.2	%		49.5	%		16.3	%		14.7	%		11.4	%		9.7	%
Disposition of pharmaceutical product lines
and related restructuring(1)		-			-			-			1,479			-			3,598			-		0.06
Non-GAAP comparative measurements(2)	$	132,931		$	120,521		$	44,147		$	37,328		$	30,951		$	27,153		$	0.51	$	0.44
% of revenue		49.2	%		49.5	%		16.3	%		15.3	%		11.4	%		11.2	%

Management believes adjusted diluted EPS is a useful non-GAAP financial measure to evaluate the results of ongoing operations, excluding significant specified events, period over period, and therefore believes that investors may find this information useful in addition to the GAAP results.

We use these supplemental non-GAAP financial measures to evaluate the Company's comparative financial performance. The specified items that are excluded in these non-GAAP measures are actual charges that impact net income and cash flows, however, we believe that it is useful to evaluate our core business performance period over period excluding these specified items, in addition to relying upon GAAP financial measures.

(1) We believe that the impact of the disposition of certain pharmaceutical product lines and the related restructuring of the remaining pharmaceutical business in 2008 is not indicative of future performance because significant transactions and related costs of a similar nature are not likely to recur within a reasonable period. In the fourth quarter of 2008 we completed a transaction to sell our ACAREXX and SURPASS pharmaceutical products and a product then under development, which were a part of our CAG segment, and subsequently restructured the remaining pharmaceutical business.

(2) The sum of the individual items may not equal the non-GAAP measurement due to rounding of the individual items in this presentation.

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 8 of 14

IDEXX Laboratories, Inc. and Subsidiaries

Non-GAAP Financial Measures

Amounts in thousands except per share data (Unaudited)

	Twelve Months Ended
													Net Income
							Income from						Attributable to						Earnings per Share
	Gross Profit						Operations						Stockholders						Diluted
	Dec. 31,			Dec. 31,			Dec. 31,			Dec. 31,			Dec. 31,			Dec. 31,			Dec. 31,		Dec. 31,
	2009			2008			2009			2008			2009			2008			2009		2008

GAAP measurement	$	526,281		$	529,766		$	175,969		$	172,456		$	122,225		$	116,169		$	2.01	$	1.87
% of revenue		51.0	%		51.7	%		17.1	%		16.8	%		11.8	%		11.3	%
Disposition of pharmaceutical product lines
and restructuring(1)		-			-			-			1,479			-			3,598			-		0.06
Discrete income tax benefits(2)		-			-			-			-			-			(1,472	)		-		(0.02	)
Non-GAAP comparative measurements(3)	$	526,281		$	529,766		$	175,969		$	173,935		$	122,225		$	118,295		$	2.01	$	1.90
% of revenue		51.0	%		51.7	%		17.1	%		17.0	%		11.8	%		11.6	%

We use these supplemental non-GAAP financial measures to evaluate the Company's comparative financial performance. The specified items that are excluded in these non-GAAP measures are actual charges that impact net income and cash flows; however, we believe that it is useful to evaluate our core business performance period over period excluding these specified items, in addition to relying upon GAAP financial measures.

(1) We believe that the impact of the disposition of certain pharmaceutical product lines and the related restructuring of the remaining pharmaceutical business in the fourth quarter of 2008 is not indicative of future performance because significant transactions and related costs of a similar nature are not likely to recur within a reasonable period. In the fourth quarter of 2008 we completed a transaction to sell our ACAREXX and SURPASS pharmaceutical products and a product then under development, which were a part of our CAG segment, and subsequently restructured the remaining pharmaceutical business.

(2) We believe that certain significant discrete income tax items create impacts on financial measures that are not indicative of future performance because the items are not likely to recur within a reasonable period. For 2008, the separately identified discrete income tax benefit was due to a reduction in international deferred tax liabilities due to lower anticipated international tax rates.

(3) The sum of the individual items may not equal the non-GAAP measurement due to rounding of the individual items in this presentation.

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 9 of 14

IDEXX Laboratories, Inc. and Subsidiaries

Segment Information

Amounts in thousands (Unaudited)

		Three Months Ended						Twelve Months Ended
		December 31,			December 31,			December 31,			December 31,
		2009			2008			2009			2008
Revenue:	CAG	$	217,861		$	196,523		$	843,303		$	834,056
	Water		18,507			17,182			73,214			74,469
	PAS		23,360			20,310			77,208			80,762
	Other		10,607			9,278			37,908			34,743
	Total	$	270,335		$	243,293		$	1,031,633		$	1,024,030

Gross Profit:	CAG	$	100,346		$	90,359		$	410,356		$	412,199
	Water		11,272			11,479			47,233			47,052
	PAS		15,592			14,307			51,256			55,005
	Other		5,605			4,289			17,067			15,131
	Unallocated		116			87			369			379
	Total	$	132,931		$	120,521		$	526,281		$	529,766

Income from
Operations:	CAG	$	29,304		$	24,210		$	136,121		$	129,620
	Water		7,279			7,893			31,615			31,330
	PAS		6,269			6,936			17,271			21,760
	Other		3,570			919			3,425			1,555
	Unallocated		(2,275	)		(4,109	)		(12,463	)		(11,809	)
	Total	$	44,147		$	35,849		$	175,969		$	172,456

Gross Profit
(as a percentage
of revenue):	CAG		46.1	%		46.0	%		48.7	%		49.4	%
	Water		60.9	%		66.8	%		64.5	%		63.2	%
	PAS		66.7	%		70.4	%		66.4	%		68.1	%
	Other		52.8	%		46.2	%		45.0	%		43.6	%

Income from
Operations
(as a percentage
of revenue):	CAG		13.5	%		12.3	%		16.1	%		15.5	%
	Water		39.3	%		45.9	%		43.2	%		42.1	%
	PAS		26.8	%		34.2	%		22.4	%		26.9	%
	Other		33.7	%		9.9	%		9.0	%		4.5	%

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 10 of 14

IDEXX Laboratories, Inc. and Subsidiaries

Revenues and Revenue Growth Analysis by Product and Service Categories

Amounts in thousands (Unaudited)

Three Months Ended
Net Revenue	December 31, 2009		December 31, 2008		Dollar Change		Percentage Change			Percentage Change from Currency (1)			Percentage Change from Acquisitions/ Divestitures (2)			Percentage Change Net of Acquisitions/ Divestitures and Currency Effect (3)

CAG	$	217,861	$	196,523	$	21,338		10.9	%		4.3	%		0.5	%		6.1	%
Water		18,507		17,182		1,325		7.7	%		4.7	%		-			3.0	%
PAS		23,360		20,310		3,050		15.0	%		9.6	%		-			5.4	%
Other		10,607		9,278		1,329		14.3	%		2.6	%		-			11.7	%
Total	$	270,335	$	243,293	$	27,042		11.1	%		4.7	%		0.4	%		6.0	%

Three Months Ended
Net CAG Revenue	December 31, 2009		December 31, 2008		Dollar Change			Percentage Change			Percentage Change from Currency (1)			Percentage Change from Acquisitions/ Divestitures (2)			Percentage Change Net of Acquisitions/ Divestitures and Currency Effect(3)

Instruments and consumables	$	92,817	$	81,559	$	11,258			13.8	%		4.3	%		-			9.5	%
Rapid assay products		30,081		30,240		(159	)		(0.5	)%		1.8	%		-			(2.3	)%
Laboratory and consulting services		75,423		65,260		10,163			15.6	%		6.1	%		2.1	%		7.4	%
Practice information systems and digital radiography		19,540		18,918		622			3.3	%		1.9	%		0.6	%		0.8	%
Pharmaceutical products		-		546		(546	)		(100.0	)%		-			(100.0	)%		-
Net CAG revenue	$	217,861	$	196,523	$	21,338			10.9	%		4.3	%		0.5	%		6.1	%

(1) Represents the percentage change in revenue attributed to the effect of changes in currency rates from the three months ended December 31, 2008 to the three months ended December 31, 2009.

(2) Represents the percentage change in revenue during the three months ended December 31, 2009 compared to the three months ended December 31, 2008 attributed to incremental revenues from businesses acquired or revenues lost from businesses divested or discontinued subsequent to September 30, 2008.

(3) Organic Growth

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 11 of 14

IDEXX Laboratories, Inc. and Subsidiaries

Revenues and Revenue Growth Analysis by Product and Service Categories

Amounts in thousands (Unaudited)

Twelve Months Ended
Net Revenue	December 31, 2009		December 31, 2008		Dollar Change			Percentage Change			Percentage Change from Currency (1)			Percentage Change from Acquisitions/ Divestitures (2)			Percentage Change Net of Acquisitions/ Divestitures and Currency Effect(3)

CAG	$	843,303	$	834,056	$	9,247			1.1	%		(2.3	)%		(2.0	)%		5.4	%
Water		73,214		74,469		(1,255	)		(1.7	)%		(3.4	)%		-			1.7	%
PAS		77,208		80,762		(3,554	)		(4.4	)%		(3.4	)%		-			(1.0	)%
Other		37,908		34,743		3,165			9.1	%		(0.4	)%		-			9.5	%
Total	$	1,031,633	$	1,024,030	$	7,603			0.7	%		(2.4	)%		(1.6	)%		4.7	%

Twelve Months Ended
Net CAG Revenue	December 31, 2009		December 31, 2008		Dollar Change			Percentage Change			Percentage Change from Currency (1)			Percentage Change from Acquisitions/ Divestitures (2)			Percentage Change Net of Acquisitions/ Divestitures and Currency Effect(3)

Instruments and consumables	$	332,706	$	318,533	$	14,173			4.4	%		(2.7	)%		-			7.1	%
Rapid assay products		147,078		146,867		211			0.1	%		(0.7	)%		-			0.8	%
Laboratory and consulting services		298,410		288,244		10,166			3.5	%		(3.0	)%		0.7	%		5.8	%
Practice information systems and digital radiography		65,055		61,291		3,764			6.1	%		(0.8	)%		0.2	%		6.7	%
Pharmaceutical products		54		19,121		(19,067	)		(99.7	)%		-			(99.6	)%		(0.1	)%
Net CAG revenue	$	843,303	$	834,056	$	9,247			1.1	%		(2.3	)%		(2.0	)%		5.4	%

(1) Represents the percentage change in revenue attributed to the effect of changes in currency rates from the twelve months ended December 31, 2008 to the twelve months ended December 31, 2009.

(2) Represents the percentage change in revenue during the twelve months ended December 31, 2009 compared to the twelve months ended December 31, 2008 attributed to incremental revenues from businesses acquired or revenues lost from businesses divested or discontinued subsequent to December 31, 2007.

(3) Organic Growth

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 12 of 14

IDEXX Laboratories, Inc. and Subsidiaries

Consolidated Balance Sheet

Amounts in thousands (Unaudited)

		December 31,		December 31,
		2009		2008
Assets:	Current Assets:
	Cash and cash equivalents	$	106,728	$	78,868
	Accounts receivable, net		115,107		111,498
	Inventories		110,425		115,926
	Other current assets		44,078		49,598
	Total current assets		376,338		355,890
	Property and equipment, at cost		346,592		320,198
	Less: accumulated depreciation		146,646		130,552
	Property and equipment, net		199,946		189,646
	Other long-term assets, net		232,243		219,901
	Total assets	$	808,527	$	765,437
Liabilities and
Stockholders’
Equity:	Current Liabilities:
	Accounts payable	$	19,133	$	28,006
	Accrued expenses		104,959		104,616
	Debt		119,603		151,385
	Deferred revenue		12,610		11,285
	Total current liabilities		256,305		295,292
	Long-term debt, net of current portion		4,281		5,094
	Other long-term liabilities		33,362		26,857
	Total long-term liabilities		37,643		31,951

	Total stockholders’ equity		514,569		438,194
	Noncontrolling interest		10		-
	Total equity		514,579		438,194
	Total liabilities and stockholders’ equity	$	808,527	$	765,437

IDEXX Laboratories, Inc. and Subsidiaries

Key Balance Sheet Information (Unaudited)

		December 31,		September 30,		June 30,		March 31,		December 31,
		2009		2009		2009		2009		2008
Key
Balance Sheet	Days sales outstanding		38.9		41.2		40.2		43.8		41.9
Information:	Inventory turns		2.2		1.8		1.8		1.6		2.0

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 13 of 14

IDEXX Laboratories, Inc. and Subsidiaries

Consolidated Statement of Cash Flows

Amounts in thousands (Unaudited)

		Twelve Months Ended
		December 31,			December 31,
		2009			2008
Operating:	Cash Flows from Operating Activities:
	Net income attributable to stockholders	$	122,225		$	116,169
	Noncontrolling interest in subsidiary’s earnings		10			-
	Net income		122,235			116,169
	Non-cash charges		63,042			60,650
	Changes in current assets and liabilities, net of acquisitions and disposals		(11,559	)		(33,511	)
	Net cash provided by operating activities	$	173,718		$	143,308
Investing:	Cash Flows from Investing Activities:
	Purchase of property and equipment		(49,418	)		(89,237	)
	Proceeds from disposition of pharmaceutical product lines		3,377			7,025
	Proceeds from sale of property and equipment		2,079			-
	Acquisitions of intangible assets and businesses, net of cash acquired		(7,180	)		(8,649	)
	Acquisition of equipment leased to customers		(1,245	)		(734	)
	Net cash used by investing activities	$	(52,387	)	$	(91,595	)
Financing:	Cash Flows from Financing Activities:
	Borrowings (payments) on revolving credit facilities, net		(32,830	)		79,550
	Payment of other notes payable		(926	)		(595	)
	Purchase of treasury stock		(83,099	)		(132,342	)
	Proceeds from the exercise of stock options and employee stock purchase plans		16,366			16,360
	Tax benefit from exercise of stock options and vesting of restricted stock units		5,194			6,237
	Net cash used by financing activities	$	(95,295	)	$	(30,790	)
	Net effect of changes in exchange rates on cash		1,824			(2,415	)
	Net increase in cash and cash equivalents		27,860			18,508
	Cash and cash equivalents, beginning of period		78,868			60,360
	Cash and cash equivalents, end of period	$	106,728		$	78,868

IDEXX Laboratories, Inc. and Subsidiaries

Free Cash Flow

Amounts in thousands (Unaudited)

		Twelve Months Ended
		December 31,			December 31,
		2009			2008
Free Cash
Flow:	Net cash provided by operating activities	$	173,718		$	143,308
	Financing cash flows attributable to tax benefits from exercise of stock options
	and vesting of restricted stock units		5,194			6,237
	Purchase of property and equipment		(49,418	)		(89,237	)
	Acquisition of equipment leased to customers		(1,245	)		(734	)
	Free cash flow	$	128,249		$	59,574

	Free cash flow indicates the cash generated from operations and tax benefits attributable to stock option exercises, reduced by investments in fixed assets. We feel 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 fixed assets that are required to operate the business. We believe this is a common financial measure useful to further evaluate the results of operations.

IDEXX Announces Fourth Quarter Results

January 29, 2010

Page 14 of 14

IDEXX Laboratories, Inc. and Subsidiaries

Cash Flow Impact of Pharmaceutical Transactions and Restructuring

Amounts in thousands (Unaudited)

	December 31,
	2008
Proceeds	$	8,402
Restructuring and transaction expenses incurred		(671	)
Tax charge related to disposal of nondeductible goodwill		(2,666	)
Realization of deferred tax assets		4,228
Tax benefit realized from transaction loss		401
Net cash flow realized from transaction and restructuring	$	9,694

IDEXX Laboratories, Inc. and Subsidiaries

Common Stock Repurchases

Amounts in thousands except per share data (Unaudited)

	Three Months Ended				Twelve Months Ended
	December 31,		December 31,		December 31,		December 31,
	2009		2008		2009		2008
Share repurchases during the period		486		297		1,919		2,640
Average price paid per share	$	51.69	$	33.41	$	43.30	$	50.14

Shares remaining under repurchase authorization as of December 31, 2009:				2,294