EX-99.1 2 il3905ex991.htm EXHIBIT 99.1

Exhibit 99.1

Message

Contact: Merilee Raines, Chief Financial Officer, (207) 856-8155

FOR IMMEDIATE RELEASE

IDEXX Laboratories Announces Third Quarter Results

WESTBROOK, Maine, October 28, 2005 — IDEXX Laboratories, Inc. (NASDAQ: IDXX), today reported that revenue for the third quarter of 2005 increased 18% to $158.1 million from $134.1 million for the third quarter of 2004. Earnings per diluted share for the quarter ended September 30, 2005 were $0.61, compared to $0.56 for the same period in the prior year. 

          During the quarter ended September 30, 2004, the Company’s earnings per diluted share included an after tax benefit of $0.02 associated with the settlement of a third party claim and certain state tax benefits. During the quarter ended September 30, 2005, the Company incurred acquisition integration costs of $0.01 per diluted share. Excluding the effects of these discrete items in the third quarters of 2004 and 2005, adjusted earnings per diluted share grew approximately 15%. The Company believes adjusted earnings per diluted share is a useful financial measure to indicate the results of ongoing operations, excluding significant infrequent items.

          Companion Animal Group (“CAG”) revenue for the third quarter of 2005 increased 18% to $128.7 million from $108.8 million for the third quarter of 2004. Sales from businesses acquired during 2004 and 2005, consisting primarily of veterinary reference laboratories, contributed approximately 8% to CAG revenue growth. Aside from acquisitions, this increase resulted primarily from higher sales of instruments and consumables, rapid assay products, laboratory and consulting services, and, to a lesser extent, pharmaceutical products and computer systems and digital radiography. The favorable impact of foreign currency contributed less than 1% to CAG revenue growth.

          Water segment revenue for the third quarter increased 6% to $15.1 million from $14.2 million for the third quarter of 2004 primarily due to higher worldwide sales volume. The favorable impact of foreign currency contributed less than 1% to Water revenue growth.

          Food Diagnostics Group (“FDG”) revenue for the third quarter increased 29% to $14.3 million from $11.1 million for the third quarter of 2004. This increase reflects growth in the production animal products business due to sales from businesses acquired in 2004 and higher sales volume of established product lines. The favorable impact of foreign currency contributed less than 1% to FDG revenue growth and acquisitions contributed 11%.

          “Our results for the third quarter were slightly higher than our expectation due to strong performance across the CAG segment and in our production animal testing business,” said Jonathan Ayers, Chairman and CEO. “The acquisitions we made in 2004 and 2005 contributed significantly to this growth, and continue to exceed our expectations. However, organic growth in our businesses was also strong.”


IDEXX Announces Third Quarter Results
October 28, 2005
Page 2 of 9

Additional operating results

          Gross profit for the third quarter of 2005 increased $10.3 million, or 14%, to $81.3 million from $71.1 million for the third quarter of 2004. As a percentage of total revenue, gross profit decreased to 51% from 53% largely due to the benefit in 2004 from the settlement of a third party claim noted above. Excluding the impact of this item in 2004, the gross profit percentage decreased one percent, primarily due to higher sales of lower margin laboratory and consulting services as a percentage of total sales and to comparatively more favorable product warranty liability adjustments for LaserCyte® instruments in the same period of the prior year. LaserCyte® service experience continued to improve during the quarter and resulted in a modest favorable change in our estimated cost of product warranty liability for all placed instruments for which we have such future obligations; however, the incremental improvements in the same period of the prior year were relatively greater.

          Research and development (“R&D”) expense for the quarter was $10.5 million compared to $8.8 million for the third quarter of 2004. R&D expense was approximately constant as a percentage of revenue at 7% for the third quarters of 2005 and 2004. 

          Selling, general and administrative (“SG&A”) expense was $40.7 million, or 26% of revenues, compared to $33.8 million, or 25% of revenues, in the third quarter of 2004. The increase in SG&A expense as a percentage of revenues reflects the investment made to expand our sales and marketing organizations in both the U.S. and Europe, as well as the integration and amortization costs associated with recent business acquisitions. The increase in SG&A expense in total dollars was also attributable to costs incurred to support the operating activities of businesses acquired in the fourth quarter of 2004 and in 2005.

Year-to-date results

          Year-to-date revenue increased 16% to $471.1 million from $404.9 million for the same period in 2004. Year-to-date earnings per diluted share were $1.70 for the nine-month periods in both 2005 and 2004. During the nine months ended September 30, 2004, the Company’s earnings per diluted share included a net benefit of $0.09 resulting from a reduction in the Company’s provision for income taxes primarily related to the completion of an IRS audit through the year 2001, the settlement of a third party claim, and a payment received in settlement of certain litigation. During the nine months ended September 30, 2005, the Company incurred acquisition integration costs of $0.04 per diluted share. Excluding the effects of these discrete items in 2004 and 2005, adjusted earnings per diluted share grew approximately 8%.


IDEXX Announces Third Quarter Results
October 28, 2005
Page 3 of 9

          Companion Animal Group revenue for the nine months ended September 30, 2005 increased 16% to $384.9 million from $331.4 million for the same period in 2004. Sales from businesses acquired during 2004 and 2005, consisting primarily of veterinary reference laboratories, contributed approximately 7% to CAG revenue growth. Aside from acquisitions, this increase resulted primarily from increased sales of instruments and consumables, laboratory and consulting services, rapid assay products, and, to a lesser extent, pharmaceutical products and computer systems and digital radiography. The favorable impact of currency contributed 1% to year-to-date CAG revenue growth. 

          Water segment revenue for the nine months ended September 30, 2005 increased 8% to $42.2 million from $39.1 million for the same period in 2004 primarily due to higher worldwide sales volume. The favorable impact of foreign currency contributed 1% to year-to-date Water revenue growth. 

          Food Diagnostics Group revenue for the nine months ended September 30, 2005 increased 28% to $44.1 million from $34.4 million for the same period in 2004. This increase reflects growth in the production animal products business due to sales from businesses acquired in 2004 and higher sales volume of established product lines. The favorable impact of foreign currency contributed 2% to FDG revenue growth and acquisitions contributed 12%.

Outlook

          The Company offers the following guidance for the full year of 2005:

 

•

Revenue is expected to be approximately $631 to $634 million.

 

 

 

 

•

Diluted earnings per share are expected to be approximately $2.28 to $2.30, which includes approximately $0.06 of anticipated acquisition integration costs.

          The Company offers the following guidance for the full year of 2006:

 

•

Revenue is expected to be approximately $695 to $705 million.

 

 

 

 

•

Diluted earnings per share are expected to be approximately $2.36 to $2.48, which includes the prospective expensing of equity-based compensation as required by Statement of Financial Accounting Standards No. 123 (revised 2004).

Increased Share Repurchase Authorization

          The Company also announced today that its Board of Directors has authorized the repurchase by the Company of an additional two million shares of its common stock in the open market or in negotiated transactions. These shares are in addition to 552,000 shares remaining under a previous Board authorization. The timing and amount of any repurchases will be at the discretion of the Company’s management.


IDEXX Announces Third Quarter Results
October 28, 2005
Page 4 of 9

About IDEXX Laboratories

          IDEXX Laboratories, Inc. is a leader in companion animal health, serving practicing veterinarians around the world with innovative, technology-based offerings, including a broad range of diagnostic products and services, practice-management systems and therapeutics. Our products enhance the ability of veterinarians to provide advanced medical care 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 Westbrook, Maine, IDEXX Laboratories employs more than 3,000 people and offers products to customers in over 100 countries.

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 effectiveness of the Company’s sales and marketing activities; the Company’s ability to develop, license or obtain rights to new technologies; the Company’s ability to identify acquisition opportunities, complete acquisitions and integrate acquired businesses; the impact of competition and technological change on the markets for the Company’s 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 our 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; disruptions, shortages or pricing changes that affect the Company’s purchases of products and materials from third parties, including from sole source suppliers; the effects of government regulatory decisions, customer demand, pricing and other factors on the realizability of the Company’s inventories; the Company’s ability to manufacture complex biologic products; the effects of operations outside the U.S., including  from currency fluctuations, different regulatory, political and economic conditions, and different market conditions; 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, 2004 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations.


IDEXX Announces Third Quarter Results
October 28, 2005
Page 5 of 9

IDEXX Laboratories, Inc. and Subsidiaries

Consolidated Statement of Operations

Amounts in thousands except per share data (Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

 

 

 

 

September 30,
2005

 

September 30,
2004

 

September 30,
2005

 

September 30,
2004

 

 

 

Revenue:

Revenue

 

$

158,069

 

$

134,111

 

$

471,125

 

$

404,907

 

Expenses and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income:

Cost of revenue

 

 

76,740

 

 

63,053

 

 

233,141

 

 

194,801

 

 

 

 

Gross profit

 

 

81,329

 

 

71,058

 

 

237,984

 

 

210,106

 

 

Sales and marketing

 

 

24,303

 

 

21,132

 

 

75,221

 

 

62,794

 

 

General and administrative

 

 

16,360

 

 

12,698

 

 

47,304

 

 

36,523

 

 

Research and development

 

 

10,543

 

 

8,824

 

 

30,312

 

 

26,029

 

 

 

 

Income from operations

 

 

30,123

 

 

28,404

 

 

85,147

 

 

84,760

 

 

Interest income, net

 

 

918

 

 

830

 

 

2,292

 

 

2,315

 

 

 

 

Income before provision for income taxes and partner’s interest

 

 

31,041

 

 

29,234

 

 

87,439

 

 

87,075

 

 

Provision for income taxes

 

 

10,547

 

 

9,647

 

 

29,533

 

 

25,993

 

 

Partner’s share of consolidated loss

 

 

(110

)

 

(109

)

 

(321

)

 

(315

)

 

 

Net Income:

Net income

 

$

20,604

 

$

19,696

 

$

58,227

 

$

61,397

 

 

 

 

Earnings per share: Basic

 

$

0.63

 

$

0.58

 

$

1.78

 

$

1.78

 

 

 

 

Earnings per share: Diluted

 

$

0.61

 

$

0.56

 

$

1.70

 

$

1.70

 

 

 

 

Shares outstanding: Basic

 

 

32,482

 

 

34,050

 

 

32,686

 

 

34,467

 

 

 

 

Shares outstanding: Diluted

 

 

34,044

 

 

35,467

 

 

34,183

 

 

36,120

 

 

 

IDEXX Laboratories, Inc. and Subsidiaries

Key Operating Information (Unaudited)

 

 

 

 Three Months Ended

 

Nine Months Ended 

 

 

 

 

 

 

 

 

 

September 30,
2005

 

September 30,
2004

 

September 30,
2005

 

September 30,
2004

 

 

 

Key Operating

Gross profit

 

 

51.5

%

 

53.0

%

 

50.5

%

 

51.9

%

Ratios (as a
percentage of

Sales, marketing, general and administrative expense

 

 

25.7

%

 

25.2

%

 

26.0

%

 

24.6

%

revenue):

Research and development expense

 

 

6.7

%

 

6.6

%

 

6.4

%

 

6.4

%

 

 

 

Income from operations

 

 

19.1

%

 

21.2

%

 

18.1

%

 

20.9

%

 

 

International

International revenue

 

$

52,464

 

$

40,127

 

$

163,432

 

$

123,987

 

Revenue:

 

 

International revenue as percentage of total revenue

 

 

33.2

%

 

29.9

%

 

34.7

%

 

30.6

%

 

 


IDEXX Announces Third Quarter Results
October 28, 2005
Page 6 of 9

IDEXX Laboratories, Inc. and Subsidiaries

Segment Information

Amounts in thousands (Unaudited)

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

 

 

 

 

September 30,
2005

 

September 30,
2004

 

September 30,
2005

 

September 30,
2004

 

 

 

Revenue:

Companion Animal Group

 

$

128,676

 

$

108,816

 

$

384,888

 

$

331,377

 

 

Water

 

 

15,077

 

 

14,237

 

 

42,154

 

 

39,095

 

 

Food Diagnostics Group

 

 

14,316

 

 

11,058

 

 

44,083

 

 

34,435

 

 

 

 

Total

 

$

158,069

 

$

134,111

 

$

471,125

 

$

404,907

 

 

 

Gross Profit:

Companion Animal Group

 

$

62,926

 

$

53,757

 

$

185,014

 

$

161,942

 

 

Water

 

 

10,226

 

 

9,811

 

 

28,325

 

 

26,552

 

 

Food Diagnostics Group

 

 

8,177

 

 

7,490

 

 

24,645

 

 

21,612

 

 

 

 

Total

 

$

81,329

 

$

71,058

 

$

237,984

 

$

210,106

 

 

 

Income from Operations:

Companion Animal Group

 

$

21,303

 

$

19,314

 

$

61,602

 

$

61,022

 

 

Water

 

 

7,276

 

 

6,977

 

 

19,320

 

 

18,004

 

 

Food Diagnostics Group

 

 

2,518

 

 

2,934

 

 

6,856

 

 

8,254

 

 

Other

 

 

(974

)

 

(821

)

 

(2,631

)

 

(2,520

)

 

 

 

Total

 

$

30,123

 

$

28,404

 

$

85,147

 

$

84,760

 

 

 

Gross Profit

Companion Animal Group

 

 

48.9

%

 

49.4

%

 

48.1

%

 

48.9

%

(as a percentage of revenue):

Water

 

 

67.8

%

 

68.9

%

 

67.2

%

 

67.9

%

 

Food Diagnostics Group

 

 

57.1

%

 

67.7

%

 

55.9

%

 

62.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Operations

Companion Animal Group

 

 

16.6

%

 

17.7

%

 

16.0

%

 

18.4

%

(as a percentage of revenue):

Water

 

 

48.3

%

 

49.0

%

 

45.8

%

 

46.1

%

 

Food Diagnostics Group

 

 

17.6

%

 

26.5

%

 

15.6

%

 

24.0

%


IDEXX Announces Third Quarter Results
October 28, 2005
Page 7 of 9

IDEXX Laboratories, Inc. and Subsidiaries

Revenues by Product and Service Categories

Amounts in thousands (Unaudited)

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

September 30,
2005

 

September 30,
2004

 

Dollar
Change

 

Percentage
Change

 

Percentage
Change from
Currency (1)

 

Percentage
Change Net
of Currency
Effect

 

 

 

Net CAG Revenue:

Instruments and consumables

 

$

52,438

 

$

47,864

 

$

4,574

 

 

9.6

%

 

0.5

%

 

9.1

%

 

Rapid assay products

 

 

25,291

 

 

22,444

 

 

2,847

 

 

12.7

%

 

0.1

%

 

12.6

%

 

Laboratory and consulting services

 

 

39,987

 

 

29,444

 

 

10,543

 

 

35.8

%

 

0.1

%

 

35.7

%

 

Computer systems and digital radiography

 

 

7,166

 

 

6,480

 

 

686

 

 

10.6

%

 

0.2

%

 

10.4

%

 

Pharmaceutical products

 

 

3,794

 

 

2,584

 

 

1,210

 

 

46.8

%

 

—  

 

 

46.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Net CAG revenue

 

 

128,676

 

 

108,816

 

 

19,860

 

 

18.3

%

 

0.3

%

 

18.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Water Revenue:

Water

 

 

15,077

 

 

14,237

 

 

840

 

 

5.9

%

 

0.5

%

 

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net FDG Revenue:

Production animal products

 

 

10,558

 

 

7,313

 

 

3,245

 

 

44.4

%

 

0.5

%

 

43.9

%

 

Dairy-testing products

 

 

3,758

 

 

3,745

 

 

13

 

 

0.3

%

 

0.2

%

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Net FDG revenue

 

 

14,316

 

 

11,058

 

 

3,258

 

 

29.5

%

 

0.4

%

 

29.1

%

 

 

 

 

 

 

 

 

 

 

 

Net Revenue:

 

 

$

158,069

 

$

134,111

 

$

23,958

 

 

17.9

%

 

0.3

%

 

17.6

%

 

 

 

 

 

 

 

 

 

 

 

(1) Represents the percentage change in revenue attributed to the effect of changes in currency rates from the three months ended September 30, 2004 to the three months ended September 30, 2005.

 

 

 

Nine Months Ended

 

 

 

 

 

 

 

 

September 30,
2005

 

September 30,
2004

 

Dollar
Change

 

Percentage
Change

 

Percentage
Change from
Currency (1)

 

Percentage
Change Net
of Currency
Effect

 

 

 

Net CAG Revenue:

Instruments and consumables

 

$

158,356

 

$

145,099

 

$

13,257

 

 

9.1

%

 

1.3

%

 

7.8

%

 

Rapid assay products

 

 

77,440

 

 

72,861

 

 

4,579

 

 

6.3

%

 

0.5

%

 

5.8

%

 

Laboratory and consulting services

 

 

116,898

 

 

85,021

 

 

31,877

 

 

37.5

%

 

0.5

%

 

37.0

%

 

Computer systems and digital radiography

 

 

21,826

 

 

20,399

 

 

1,427

 

 

7.0

%

 

0.3

%

 

6.7

%

 

Pharmaceutical products

 

 

10,368

 

 

7,997

 

 

2,371

 

 

29.6

%

 

—  

 

 

29.6

%

 
                 

 

 

Net CAG revenue

 

 

384,888

 

 

331,377

 

 

53,511

 

 

16.1

%

 

0.8

%

 

15.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Water Revenue:

Water

 

 

42,154

 

 

39,095

 

 

3,059

 

 

7.8

%

 

1.3

%

 

6.5

%

 
                 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net FDG Revenue:

Production animal products

 

 

32,376

 

 

22,796

 

 

9,580

 

 

42.0

%

 

2.7

%

 

39.3

%

 

Dairy-testing products

 

 

11,707

 

 

11,639

 

 

68

 

 

0.6

%

 

1.6

%

 

-1.0

%

 
                 

 

 

Net FDG revenue

 

 

44,083

 

 

34,435

 

 

9,648

 

 

28.0

%

 

2.3

%

 

25.7

%

 
                 

 

Net Revenue:

 

 

 $

471,125

 

$

404,907

 

$

66,218

 

 

16.4

%

 

1.0

%

 

15.4

%

 
                 

 

(1) Represents the percentage change in revenue attributed to the effect of changes in currency rates from the nine months ended September 30, 2004 to the nine months ended September 30, 2005.


IDEXX Announces Third Quarter Results
October 28, 2005
Page 8 of 9

IDEXX Laboratories, Inc. and Subsidiaries

Consolidated Balance Sheet

Amounts in thousands (Unaudited)

 

 

 

September 30,
2005

 

December 31,
2004

 

 

 

Assets:

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

57,768

 

$

47,156

 

 

Short-term investments

 

 

71,688

 

 

90,116

 

 

Accounts receivable, net

 

 

68,098

 

 

65,639

 

 

Inventories

 

 

80,206

 

 

76,424

 

 

Other current assets

 

 

21,916

 

 

22,257

 

 

 

 

Total current assets

 

 

299,676

 

 

301,592

 

 

 

 

Long-term Investments

 

 

2,052

 

 

19,687

 

 

 

 

Property and equipment - cost

 

 

145,283

 

 

137,851

 

 

Less: accumulated depreciation

 

 

80,347

 

 

75,221

 

 

 

 

Property and equipment, net

 

 

64,936

 

 

62,630

 

 

 

 

Other long-term assets, net

 

 

125,966

 

 

130,328

 

 

 

 

Total assets

 

$

492,630

 

$

514,237

 

 

 

Liabilities and
Stockholders’
Equity:

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

18,404

 

$

14,723

 

 

Accrued expenses

 

 

70,229

 

 

73,785

 

 

Notes payable

 

 

542

 

 

1,291

 

 

Deferred revenue

 

 

8,343

 

 

10,153

 

 

 

 

Total current liabilities

 

 

97,518

 

 

99,952

 

 

 

 

Total long-term liabilities

 

 

13,986

 

 

16,233

 

 

 

 

Partner’s interest in subsidiary

 

 

362

 

 

392

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

 

Common stock

 

 

4,579

 

 

4,522

 

 

Additional paid-in capital

 

 

431,611

 

 

410,817

 

 

Deferred equity-based compensation

 

 

1,274

 

 

665

 

 

Retained earnings

 

 

376,909

 

 

318,682

 

 

Treasury stock, at cost

 

 

(437,127

)

 

(348,327

)

 

Accumulated other comprehensive income

 

 

3,518

 

 

11,301

 

 

 

 

Total stockholders’ equity

 

 

380,764

 

 

397,660

 

 

 

 

Total liabilities and stockholders’ equity

 

$

492,630

 

$

514,237

 

 

 

IDEXX Laboratories, Inc. and Subsidiaries

Key Balance Sheet Information (Unaudited)

 

 

 

September 30,
2005

 

December 31,
2004

 

 

 

Key
Balance Sheet
Information:

Total cash, cash equivalents and investments

 

$

131,508

 

$

156,959

 

 

Days sales outstanding

 

 

41

 

 

39

 

 

Inventory turns

 

 

1.8

 

 

1.9

 


 

IDEXX Announces Third Quarter Results

October 28, 2005

Page 9 of 9

IDEXX Laboratories, Inc. and Subsidiaries

Consolidated Statement of Cash Flows

Amounts in thousands (Unaudited)

 

 

 

Nine Months Ended

 

 

 

 

 

 

 

 

September 30,
2005

 

December 31,
2004

 

 

 

Operating:

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Net income

 

$

58,227

 

$

61,397

 

 

Non-cash charges

 

 

21,981

 

 

23,524

 

 

Changes in current assets and liabilities, net of acquisitions and disposals

 

 

(3,703

)

 

(16,714

)

 

 

 

Net cash provided by operating activities

 

$

76,505

 

$

68,207

 

 

 

Investing:

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Decrease in investments, net

 

 

36,075

 

 

30,648

 

 

Purchase of property and equipment

 

 

(16,512

)

 

(23,431

)

 

Net proceeds from sale of land and buildings

 

 

803

 

 

—  

 

 

Acquisition of businesses and intangible assets

 

 

(6,406

)

 

(6,839

)

 

Acquisition of equipment leased to customers

 

 

(1,784

)

 

(1,951

)

 

 

 

Net cash used by investing activities

 

$

12,176

 

$

(1,573

)

 

 

Financing:

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Repayment of notes payable

 

 

(2,056

)

 

(356

)

 

Purchase of treasury stock

 

 

(88,800

)

 

(94,004

)

 

Proceeds from the exercise of stock options

 

 

14,941

 

 

17,550

 

 

 

 

Net cash used by financing activities

 

$

(75,915

)

$

(76,810

)

 

 

 

Net effect of exchange rate changes

 

 

(2,154

)

 

68

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

10,612

 

 

(10,108

)

 

 

 

Cash and cash equivalents, beginning of period

 

 

47,156

 

 

96,942

 

 

 

 

Cash and cash equivalents, end of period

 

$

57,768

 

$

86,834

 

 

 

IDEXX Laboratories, Inc. and Subsidiaries

Free Cash Flow (Unaudited)

 

 

 

Nine Months Ended

 

 

 

 

 

 

 

 

September 30,
2005

 

December 31,
2004

 

 

 

Free Cash

Net cash provided by operating activities

 

$

76,505

 

$

68,207

 

 Flow:

Purchase of property and equipment

 

 

(16,512)

 

 

(23,431)

 

 

Acquisition of equipment leased to customers

 

 

(1,784)

 

 

(1,951)

 

 

 

 

Free cash flow

 

$

58,209

 

$

42,825

 

 

 

 

Free cash flow indicates the cash generated from operations reduced by investments in capital and other long-term assets.  Free cash flow excludes financing activities, investments in monetary securities, and business acquisitions and divestitures.  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 Laboratories, Inc. and Subsidiaries

Common Stock Repurchases

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

 

 

 

 

September 30,
2005

 

September 30,
2004

 

September 30,
2005

 

September 30,
2004

 

 

 

 

Total number of shares purchased

 

 

595,500

 

 

720,400

 

 

1,493,200

 

 

1,728,300

 

 

Average price paid per share

 

$

64.50

 

$

49.88

 

$

59.47

 

$

54.17