EX-99.1 2 il4604ex991.htm EXHIBIT 99.1

Exhibit 99.1

Message

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

FOR IMMEDIATE RELEASE

IDEXX Laboratories Announces Fourth Quarter Results

WESTBROOK, Maine, January 27, 2006 — IDEXX Laboratories, Inc. (NASDAQ: IDXX), today reported that revenue for the fourth quarter of 2005 increased 16% to $167.0 million from $144.3 million for the fourth quarter of 2004. Earnings per diluted share for the quarter ended December 31, 2005 were $0.60, compared to $0.49 for the same period in the prior year. 

          During the quarter ended December 31, 2005, the Company incurred acquisition integration costs of $0.02 per diluted share and income tax expense on the repatriation of foreign earnings under the American Jobs Creation Act of $0.03 per diluted share. During the quarter ended December 31, 2004, the Company incurred acquisition-related costs of $0.02 per diluted share. Excluding the effects of these discrete items in the fourth quarters of 2005 and 2004, adjusted earnings per diluted share grew approximately 28%. 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 fourth quarter of 2005 increased 16% to $135.9 million from $117.3 million for the fourth quarter of 2004. Incremental sales from businesses acquired during 2004 and 2005, consisting of veterinary reference laboratories and a digital radiography business, contributed approximately 5% to CAG revenue growth. Aside from acquisitions, the increased CAG revenue resulted primarily from higher sales of instruments and consumables, laboratory and consulting services, rapid assay products, and, to a lesser extent, computer and digital radiography systems and pharmaceutical products. The unfavorable impact of foreign currency decreased CAG revenue growth by 2%.

          Water segment revenue for the fourth quarter increased 4% to $14.6 million from $14.0 million for the fourth quarter of 2004 primarily due to higher worldwide sales volume. The unfavorable impact of foreign currency decreased Water revenue growth by 3%.

          Food Diagnostics Group (“FDG”) revenue for the fourth quarter increased 27% to $16.4 million from $13.0 million for the fourth quarter of 2004. Incremental sales from businesses acquired in the fourth quarter of 2004 contributed approximately 9% to FDG revenue growth. The remainder of the growth resulted primarily from higher sales volume of established product lines in the production animal diagnostic products business. The unfavorable impact of foreign currency decreased FDG revenue growth by 7%.


IDEXX Announces Fourth Quarter Results
January 27, 2006
Page 2 of 9

          “IDEXX Laboratories wrapped up a strong year in 2005 with organic revenue growth, adjusting for acquisitions and foreign exchange, of nearly 14%, bringing organic growth for the year to 10%,” said Jonathan W. Ayers, President and CEO. “The fourth quarter was a particularly strong quarter for the instrument and consumables business as well as production animal diagnostic products. Solid growth trends in the business, several recent product introductions and the benefits from our focus on world class quality over the last twelve months put us in good position to meet our revenue and profit plans for 2006.”

Additional operating results

          Gross profit for the fourth quarter of 2005 increased $16.0 million, or 23%, to $84.9 million from $68.9 million for the fourth quarter of 2004. As a percentage of revenue, gross profit increased to 51% from 48%. The increase in the gross profit percentage was attributable, in part, to relatively favorable pricing in certain businesses; the net favorable change in the impact of foreign currency rates; higher proportional sales of higher margin products and services; lower costs of slides sold for use in our VetTest® instruments under the agreement with our supplier; and lower acquisition-related costs in the fourth quarter of 2005 compared to the same period of the prior year.

          Research and development (“R&D”) expense for the quarter was $10.6 million compared to $9.4 million for the fourth quarter of 2004. R&D expense was approximately constant as a percentage of total revenue at 6% for the fourth quarters of 2005 and 2004. 

           Selling, general and administrative (“SG&A”) expense was $44.1 million, or 26% of revenue, compared to $36.3 million, or 25% of revenue, in the fourth quarter of 2004. The increase in SG&A expense as a percentage of total revenue reflects the investment made to expand our sales and marketing organizations in both the U.S. and Europe, as well as higher integration costs and intangible amortization expenses associated with the businesses acquired in the fourth quarter of 2004 and in 2005. 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.

Full year results

          Revenue for the year ended December 31, 2005 increased 16% to $638.1 million from $549.2 million for the year ended December 31, 2004.

          Earnings per diluted share for 2005 were $2.30, a 5% increase over earnings per diluted share of $2.19 for 2004.  In 2005, earnings per diluted share included net expenses of $0.08 resulting from (i) integration costs associated with businesses acquired in the fourth quarter of 2004 and in 2005, including costs incurred in connection with the consolidation of our European production animal diagnostics operations in Bern, Switzerland, and (ii) income tax expense on the repatriation of foreign earnings under the American Jobs Creation Act. In 2004, earnings per diluted share included a net benefit of $0.08 resulting from (i) a reduction in the Company’s provision for income taxes primarily related to the completion of a tax audit through the year 2001 and the receipt of certain state tax benefits, (ii) reductions in the estimated liability for a third party claim, and (iii) a payment received in settlement of certain litigation, offset partly by acquisition-related costs associated with businesses acquired in the fourth quarter of 2004. Excluding the effects of these discrete items in 2005 and 2004, adjusted earnings per diluted share grew approximately 13%.


IDEXX Announces Fourth Quarter Results
January 27, 2006
Page 3 of 9

          Companion Animal Group revenue for the year ended December 31, 2005 increased 16% to $520.8 million from $448.7 million for 2004. Incremental sales from businesses acquired during 2004 and 2005, consisting of veterinary reference laboratories and a digital radiography business, contributed approximately 7% to CAG revenue growth. Aside from acquisitions, the increased CAG revenue 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 and digital radiography systems. 

          Water segment revenue for the year ended December 31, 2005 increased 7% to $56.8 million from $53.1 million in 2004 primarily due to higher worldwide sales volume. 

          Food Diagnostics Group revenue for the year ended December 31, 2005 increased 28% to $60.5 million from $47.4 million in 2004. Incremental sales from businesses acquired in the fourth quarter of 2004 contributed approximately 11% to FDG revenue growth. The remainder of the growth resulted primarily from higher sales volume of established product lines in the production animal products business.

Outlook

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

 

 

•

Revenue is expected to be approximately $700 to $710 million.

 

 

 

 

 

 

•

Diluted earnings per share are expected to be approximately $2.40 to $2.50, which includes the expensing of equity-based compensation as required by Statement of Financial Accounting Standards No. 123 (revised 2004).

IDEXX Laboratories to Present at Merrill Lynch Global Pharmaceutical, Biotechnology and Medical Device Conference

          The Company also announced today that it will participate in the Merrill Lynch Global Pharmaceutical, Biotechnology and Medical Device Conference. Jonathan W. Ayers, President and CEO, is scheduled to make a presentation on the Company on Tuesday, February 7, 2006 at 10:20 a.m. (ET) at the Grand Hyatt in New York City. Individuals can access the live webcast audio presentation through a link on the home page of the IDEXX Laboratories Web site, idexx.com. An archived edition of the presentation will be available for 14 days via the same link.


IDEXX Announces Fourth Quarter Results
January 27, 2006
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 September 30, 2005, in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”


IDEXX Announces Fourth Quarter Results
January 27, 2006
Page 5 of 9

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,
2005

 

December 31,
2004

 

December 31,
2005

 

December 31,
2004

 

 

 

 

Revenue:

 

 

Revenue

 

$

166,970

 

$

144,274

 

$

638,095

 

$

549,181

 

Expenses and
Income:

 

 

Cost of revenue

 

 

82,054

 

 

75,363

 

 

315,195

 

 

270,164

 

 

 

 

 

 

 

Gross profit

 

 

84,916

 

 

68,911

 

 

322,900

 

 

279,017

 

 

 

 

Sales and marketing

 

 

26,769

 

 

22,916

 

 

101,990

 

 

85,710

 

 

 

 

General and administrative

 

 

17,327

 

 

13,347

 

 

64,631

 

 

49,870

 

 

 

 

Research and development

 

 

10,636

 

 

9,373

 

 

40,948

 

 

35,402

 

 

 

 

 

 

 

Income from operations

 

 

30,184

 

 

23,275

 

 

115,331

 

 

108,035

 

 

 

 

Interest income, net

 

 

849

 

 

753

 

 

3,141

 

 

3,068

 

 

 

 

 

 

 

Income before provision for income taxes and partner’s interest

 

 

31,033

 

 

24,028

 

 

118,472

 

 

111,103

 

 

 

 

Provision for income taxes

 

 

11,137

 

 

7,172

 

 

40,670

 

 

33,165

 

 

 

 

Partner’s share of consolidated loss

 

 

(131

)

 

(79

)

 

(452

)

 

(394

)

 

 

 

Net Income:

 

 

Net income

 

$

20,027

 

$

16,935

 

$

78,254

 

$

78,332

 

 

 

 

 

 

 

Earnings per share: Basic

 

$

0.63

 

$

0.51

 

$

2.41

 

$

2.29

 

 

 

 

 

 

 

Earnings per share: Diluted

 

$

0.60

 

$

0.49

 

$

2.30

 

$

2.19

 

 

 

 

 

 

 

Shares outstanding: Basic

 

 

32,032

 

 

33,462

 

 

32,521

 

 

34,214

 

 

 

 

 

 

 

Shares outstanding: Diluted

 

 

33,627

 

 

34,845

 

 

34,055

 

 

35,800

 

 

 

 

IDEXX Laboratories, Inc. and Subsidiaries
Key Operating Information (Unaudited)

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

December 31,
2005

 

December 31,
2004

 

December 31,
2005

 

December 31,
2004

 

 

 

 

Key Operating

 

 

Gross profit

 

 

50.9

%

 

47.8

%

 

50.6

%

 

50.8

%

Ratios (as a

 

 

Sales, marketing, general and administrative expense

 

 

26.4

%

 

25.2

%

 

26.1

%

 

24.6

%

percentage of

 

 

Research and development expense

 

 

6.4

%

 

6.5

%

 

6.4

%

 

6.5

%

revenue):

 

 

 

 

 

Income from operations

 

 

18.1

%

 

16.1

%

 

18.1

%

 

19.7

%

 

 

 

International

 

 

International revenue

 

$

59,153

 

$

51,578

 

$

225,789

 

$

175,566

 

Revenue:

 

 

 

 

 

International revenue as percentage of total revenue

 

 

35.4

%

 

35.8

%

 

35.4

%

 

32.0

%

 

 

 


IDEXX Announces Fourth Quarter Results
January 27, 2006
Page 6 of 9

IDEXX Laboratories, Inc. and Subsidiaries
Segment Information
Amounts in thousands (Unaudited)

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

December 31,
2005

 

December 31,
2004

 

December 31,
2005

 

December 31,
2004

 

 

 

 

Revenue:

 

 

Companion Animal Group

 

$

135,942

 

$

117,310

 

$

520,830

 

$

448,687

 

 

 

 

Water

 

 

14,606

 

 

14,003

 

 

56,760

 

 

53,098

 

 

 

 

Food Diagnostics Group

 

 

16,422

 

 

12,961

 

 

60,505

 

 

47,396

 

 

 

 

 

 

 

Total

 

$

166,970

 

$

144,274

 

$

638,095

 

$

549,181

 

 

 

 

Gross Profit:

 

 

Companion Animal Group

 

$

65,396

 

$

52,985

 

$

250,409

 

$

214,927

 

 

 

 

Water

 

 

9,951

 

 

9,333

 

 

38,277

 

 

35,885

 

 

 

 

Food Diagnostics Group

 

 

9,569

 

 

6,593

 

 

34,214

 

 

28,205

 

 

 

 

 

 

 

Total

 

$

84,916

 

$

68,911

 

$

322,900

 

$

279,017

 

 

 

 

Income from
Operations:

 

 

Companion Animal Group

 

$

21,369

 

$

16,101

 

$

82,970

 

$

77,123

 

 

 

 

Water

 

 

6,653

 

 

6,255

 

 

25,974

 

 

24,259

 

 

 

 

Food Diagnostics Group

 

 

3,038

 

 

1,577

 

 

9,894

 

 

9,831

 

 

 

 

Other

 

 

(876

)

 

(658

)

 

(3,507

)

 

(3,178

)

 

 

 

 

 

 

Total

 

$

30,184

 

$

23,275

 

$

115,331

 

$

108,035

 

 

 

 

Gross Profit

 

 

Companion Animal Group

 

 

48.1

%

 

45.2

%

 

48.1

%

 

47.9

%

(as a percentage of

 

 

Water

 

 

68.1

%

 

66.7

%

 

67.4

%

 

67.6

%

revenue):

 

 

Food Diagnostics Group

 

 

58.3

%

 

50.9

%

 

56.5

%

 

59.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from

 

 

Companion Animal Group

 

 

15.7

%

 

13.7

%

 

15.9

%

 

17.2

%

Operations (as a

 

 

Water

 

 

45.5

%

 

44.7

%

 

45.8

%

 

45.7

%

percentage of revenue):

 

 

Food Diagnostics Group

 

 

18.5

%

 

12.2

%

 

16.4

%

 

20.7

%


IDEXX Announces Fourth Quarter Results
January 27, 2006
Page 7 of 9

IDEXX Laboratories, Inc. and Subsidiaries
Revenues by Product and Service Categories
Amounts in thousands (Unaudited)

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

December 31,
2005

 

 

December 31,
2004

 

 

Dollar
Change

 

 

Percentage
Change

 

 

Percentage
Change from
Currency (1)

 

 

Percentage
Change Net of Currency
Effect

 

 

 

 

Net CAG Revenue:

 

 

Instruments and consumables

 

$

59,181

 

$

52,840

 

$

6,341

 

 

12.0

%

 

-3.4

%

 

15.4

%

 

 

 

Rapid assay products

 

 

22,815

 

 

20,645

 

 

2,170

 

 

10.5

%

 

-0.8

%

 

11.3

%

 

 

 

Laboratory and consulting services

 

 

39,527

 

 

33,575

 

 

5,952

 

 

17.7

%

 

-2.9

%

 

20.6

%

 

 

 

Computer systems and digital radiography

 

 

10,763

 

 

7,764

 

 

2,999

 

 

38.6

%

 

-0.1

%

 

38.7

%

 

 

 

Pharmaceutical products

 

 

3,656

 

 

2,486

 

 

1,170

 

 

47.1

%

 

—  

 

 

47.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net CAG revenue

 

 

135,942

 

 

117,310

 

 

18,632

 

 

15.9

%

 

-2.5

%

 

18.4

%

Net Water
Revenue:

 

 

Water

 

 

14,606

 

 

14,003

 

 

603

 

 

4.3

%

 

-2.5

%

 

6.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net FDG Revenue:

 

 

Production animal products

 

 

12,569

 

 

8,894

 

 

3,675

 

 

41.3

%

 

-7.9

%

 

49.2

%

 

 

 

Dairy-testing products

 

 

3,853

 

 

4,067

 

 

(214

)

 

-5.3

%

 

-3.5

%

 

-1.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net FDG revenue

 

 

16,422

 

 

12,961

 

 

3,461

 

 

26.7

%

 

-6.5

%

 

33.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenue:

 

 

 

 

$

166,970

 

$

144,274

 

$

22,696

 

 

15.7

%

 

-2.9

%

 

18.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Represents the percentage change in revenue attributed to the effect of changes in currency rates from the three months ended December 31, 2004 to the three months ended December 31, 2005.

 

 

 

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

December 31,
2005

 

December 31,
2004

 

Dollar
Change

 

Percentage
Change

 

Percentage
Change from
Currency (1)

 

Percentage
Change Net
of Currency
Effect

 

 

 

 

Net CAG Revenue:

 

 

Instruments and consumables

 

$

217,537

 

$

197,939

 

$

19,598

 

 

9.9

%

 

—  

 

 

9.9

%

 

 

 

Rapid assay products

 

 

100,255

 

 

93,506

 

 

6,749

 

 

7.2

%

 

0.2

%

 

7.0

%

 

 

 

Laboratory and consulting services

 

 

156,425

 

 

118,596

 

 

37,829

 

 

31.9

%

 

-0.3

%

 

32.2

%

 

 

 

Computer systems and digital radiography

 

 

32,589

 

 

28,163

 

 

4,426

 

 

15.7

%

 

0.2

%

 

15.5

%

 

 

 

Pharmaceutical products

 

 

14,024

 

 

10,483

 

 

3,541

 

 

33.8

%

 

—  

 

 

33.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net CAG revenue

 

 

520,830

 

 

448,687

 

 

72,143

 

 

16.1

%

 

—  

 

 

16.1

%

Net Water
Revenue:

 

 

Water

 

 

56,760

 

 

53,098

 

 

3,662

 

 

6.9

%

 

0.3

%

 

6.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net FDG Revenue:

 

 

Production animal products

 

 

44,945

 

 

31,690

 

 

13,255

 

 

41.8

%

 

-0.3

%

 

42.1

%

 

 

 

Dairy-testing products

 

 

15,560

 

 

15,706

 

 

(146

)

 

-0.9

%

 

0.3

%

 

-1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net FDG revenue

 

 

60,505

 

 

47,396

 

 

13,109

 

 

27.7

%

 

-0.1

%

 

27.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenue:

 

 

 

 

$

638,095

 

$

549,181

 

$

88,914

 

 

16.2

%

 

—  

 

 

16.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Represents the percentage change in revenue attributed to the effect of changes in currency rates from the twelve months ended December 31, 2004 to the twelve months ended December 31, 2005.


IDEXX Announces Fourth Quarter Results
January 27, 2006
Page 8 of 9

IDEXX Laboratories, Inc. and Subsidiaries
Consolidated Balance Sheet
Amounts in thousands (Unaudited)

 

 

 

 

 

 

December 31,
2005

 

 

December 31,
2004

 

 

 

 

Assets:

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

67,151

 

$

47,156

 

 

 

 

Short-term investments

 

 

65,580

 

 

90,116

 

 

 

 

Accounts receivable, net

 

 

71,688

 

 

65,639

 

 

 

 

Inventories

 

 

69,369

 

 

76,424

 

 

 

 

Other current assets

 

 

25,457

 

 

22,257

 

 

 

 

 

 

 

Total current assets

 

 

299,245

 

 

301,592

 

 

 

 

 

 

 

Long-term Investments

 

 

—  

 

 

19,687

 

 

 

 

 

 

 

Property and equipment - cost

 

 

142,777

 

 

137,851

 

 

 

 

Less: accumulated depreciation

 

 

77,080

 

 

75,221

 

 

 

 

 

 

 

Property and equipment, net

 

 

65,697

 

 

62,630

 

 

 

 

 

 

 

Other long-term assets, net

 

 

125,734

 

 

130,328

 

 

 

 

 

 

 

Total assets

 

$

490,676

 

$

514,237

 

 

 

 

Liabilities and

 

 

Current Liabilities:

 

 

 

 

 

 

 

Stockholders’

 

 

Accounts payable

 

$

19,842

 

$

14,723

 

Equity:

 

 

Accrued expenses

 

 

78,208

 

 

73,785

 

 

 

 

Notes payable

 

 

551

 

 

1,291

 

 

 

 

Deferred revenue

 

 

7,965

 

 

8,998

 

 

 

 

 

 

 

Total current liabilities

 

 

106,566

 

 

98,797

 

 

 

 

 

 

 

Total long-term liabilities

 

 

14,800

 

 

17,388

 

 

 

 

 

 

 

Partner’s interest in subsidiary

 

 

300

 

 

392

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

4,594

 

 

4,522

 

 

 

 

Additional paid-in capital

 

 

437,394

 

 

410,817

 

 

 

 

Deferred equity-based compensation

 

 

1,316

 

 

665

 

 

 

 

Retained earnings

 

 

396,936

 

 

318,682

 

 

 

 

Treasury stock, at cost

 

 

(472,096

)

 

(348,327

)

 

 

 

Accumulated other comprehensive income

 

 

866

 

 

11,301

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

369,010

 

 

397,660

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

490,676

 

$

514,237

 

 

 

 

IDEXX Laboratories, Inc. and Subsidiaries
Key Balance Sheet Information (Unaudited)

 

 

 

 

 

 

December 31,
2005

 

 

December 31,
2004

 

 

 

 

Key

 

 

Total cash, cash equivalents and investments

 

$

132,731

 

$

156,959

 

Balance Sheet

 

 

Days sales outstanding

 

 

38

 

 

39

 

Information:

 

 

Inventory turns(1)

 

 

2.4

 

 

1.9

 

(1) Reported inventory turns as of December 31, 2005 are favorably impacted by the timing of contractual inventory receipts subsequent to December 31, 2005. We expect future inventory turns to be consistent with our historical range of 1.5 to 2.0 turns per year


IDEXX Announces Fourth Quarter Results
January 27, 2006
Page 9 of 9

IDEXX Laboratories, Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Amounts in thousands (Unaudited)

 

 

 

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

December 31,
2005

 

December 31,
2004

 

 

 

 

Operating:

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

 

 

Net income

 

$

78,254

 

$

78,332

 

 

 

 

Non-cash charges

 

 

28,103

 

 

30,684

 

 

 

 

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

 

 

10,195

 

 

(13,637

)

 

 

 

 

 

 

Net cash provided by operating activities

 

$

116,552

 

$

95,379

 

 

 

 

Investing:

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

 

 

Decrease in investments, net

 

 

44,261

 

 

48,896

 

 

 

 

Purchase of property and equipment

 

 

(24,199

)

 

(29,065

)

 

 

 

Net proceeds from sales of land and buildings

 

 

2,751

 

 

—  

 

 

 

 

Acquisition of businesses and intangible assets

 

 

(7,604

)

 

(53,942

)

 

 

 

Acquisition of equipment leased to customers

 

 

(2,615

)

 

(2,640

)

 

 

 

 

 

 

Net cash provided (used) by investing activities

 

$

12,594

 

$

(36,751

)

 

 

 

Financing:

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

 

 

Repayments of notes payable

 

 

(2,057

)

 

(356

)

 

 

 

Purchase of treasury stock

 

 

(123,769

)

 

(129,191

)

 

 

 

Proceeds from the exercise of stock options

 

 

18,841

 

 

19,376

 

 

 

 

 

 

 

Net cash used by financing activities

 

$

(106,985

)

$

(110,171

)

 

 

 

 

 

 

Net effect of exchange rate changes

 

 

(2,166

)

 

1,757

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

19,995

 

 

(49,786

)

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

 

47,156

 

 

96,942

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

67,151

 

$

47,156

 

 

 

 

IDEXX Laboratories, Inc. and Subsidiaries
Free Cash Flow (Unaudited)

 

 

 

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

December 31,
2005

 

December 31,
2004

 

 

 

 

Free Cash
Flow:

 

 

Net cash provided by operating activities

 

$

116,552

 

$

95,379

 

 

 

 

Purchase of property and equipment

 

 

(24,199

)

 

(29,065

)

 

 

 

Acquisition of equipment leased to customers

 

 

(2,615

)

 

(2,640

)

 

 

 

 

 

 

Free cash flow

 

$

89,738

 

$

63,674

 

 

 

 

 

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

 

Twelve Months Ended

 

 

 

 

 

December 31,
2005

 

December 31,
2004

 

December 31,
2005

 

December 31,
2004

 

Total number of shares purchased

 

 

499,700

 

 

685,100

 

 

1,992,900

 

 

2,413,400

 

Average price paid per share

 

$

69.98

 

$

51.36

 

$

62.11

 

$

53.37