01-0393723 | |||
(State or other jurisdiction of incorporation or organization) | (IRSEmployer Identification No.) | ||
Westbrook | Maine | 04092 | |
(Address of principal executive offices) | (ZIP Code) | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, $0.10 par value per share | IDXX | NASDAQ Global Select Market |
Large accelerated filer | Accelerated filer | |||
Non-accelerated filer | Smaller reporting company | |||
Emerging growth company |
Term/ Abbreviation | Definition |
| |
Adjusted EBITDA | Earnings before interest, taxes, depreciation and amortization and certain other non-cash charges |
AOCI | Accumulated other comprehensive income or loss |
ASU 2016-02 | ASU 2016-02, Leases (Topic 842); also referred to as the “New Leasing Standard” |
CAG | Companion Animal Group, a reporting segment that provides veterinarians diagnostic products and services and information management solutions that enhance the health and well-being of pets |
Credit Facility | Our $850 million five-year unsecured revolving credit facility under an amended and restated credit agreement that was executed in December 2015, also referred to as line of credit |
FASB | U.S. Financial Accounting Standards Board |
LPD | Livestock, Poultry and Dairy, a reporting segment that provides diagnostic products and services for livestock and poultry health and to ensure the quality and safety of milk and improve dairy efficiency |
OPTI Medical | OPTI Medical Systems, Inc., a wholly-owned subsidiary of IDEXX Laboratories Inc., located in Roswell, Georgia. This business manufactures and supplies blood gas analyzers and consumables worldwide for the human point-of-care medical diagnostics market. The Roswell facility also manufactures electrolytes slides (instrument consumables) to run Catalyst One®, Catalyst Dx®, and blood gas analyzers and consumables for the veterinary market; also referred to as OPTI. |
Organic revenue growth | A non-GAAP financial measure and represents the percentage change in revenue, as compared to the same period for the prior year, net of the effect of changes in foreign currency exchange rates, certain business acquisitions and divestitures. Organic revenue growth should be considered in addition to, and not as a replacement for or as a superior measure to, revenues reported in accordance with U.S. GAAP, and may not be comparable to similarly titled measures reported by other companies. |
R&D | Research and Development |
Reported revenue growth | Represents the percentage change in revenue reported in accordance with U.S. GAAP, as compared to the same period in the prior year |
SaaS | Software-as-a-service |
SEC | U.S. Securities and Exchange Commission |
Senior Note Agreements | Note purchase agreements for the private placement of senior notes having an aggregate principal amount of approximately $700 million, referred to as senior notes or long-term debt |
U.S. GAAP | Accounting principles generally accepted in the United States of America |
Water | Water, a reporting segment that provides water microbiology testing products |
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Item No. | Page | |
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| PART I—FINANCIAL INFORMATION | |
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| PART II—OTHER INFORMATION | |
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||
ASSETS | ||||||||||||||
Current Assets: | ||||||||||||||
Cash and cash equivalents | $ | 116,616 | $ | 123,794 | $ | 110,845 | $ | 123,794 | ||||||
Accounts receivable, net of reserves of $4,566 in 2019 and $4,702 in 2018 | 281,159 | 248,855 | ||||||||||||
Accounts receivable, net of reserves of $4,266 in 2019 and $4,702 in 2018 | 286,154 | 248,855 | ||||||||||||
Inventories | 189,468 | 173,303 | 196,876 | 173,303 | ||||||||||
Other current assets | 110,403 | 108,220 | 118,423 | 108,220 | ||||||||||
Total current assets | 697,646 | 654,172 | 712,298 | 654,172 | ||||||||||
Long-Term Assets: | ||||||||||||||
Property and equipment, net | 449,103 | 437,270 | 469,982 | 437,270 | ||||||||||
Operating lease right-of-use assets (Notes 2 and 6) | 80,594 | — | ||||||||||||
Operating lease right-of-use assets (Notes 2 and 7) | 81,555 | — | ||||||||||||
Goodwill | 214,517 | 214,489 | 215,157 | 214,489 | ||||||||||
Intangible assets, net | 39,499 | 41,825 | 37,989 | 41,825 | ||||||||||
Other long-term assets | 199,609 | 189,593 | 207,256 | 189,593 | ||||||||||
Total long-term assets | 983,322 | 883,177 | 1,011,939 | 883,177 | ||||||||||
TOTAL ASSETS | $ | 1,680,968 | $ | 1,537,349 | $ | 1,724,237 | $ | 1,537,349 | ||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||
Current Liabilities: | ||||||||||||||
Accounts payable | $ | 70,143 | $ | 69,534 | $ | 67,606 | $ | 69,534 | ||||||
Accrued liabilities | 229,127 | 260,683 | 256,329 | 260,683 | ||||||||||
Line of credit | 346,998 | 398,937 | 251,528 | 398,937 | ||||||||||
Current portion of deferred revenue | 43,351 | 41,290 | 43,446 | 41,290 | ||||||||||
Total current liabilities | 689,619 | 770,444 | 618,909 | 770,444 | ||||||||||
Long-Term Liabilities: | ||||||||||||||
Deferred income tax liabilities | 32,931 | 29,267 | 32,415 | 29,267 | ||||||||||
Long-term debt | 699,334 | 601,348 | 700,552 | 601,348 | ||||||||||
Long-term deferred revenue, net of current portion | 55,695 | 60,697 | 52,129 | 60,697 | ||||||||||
Long-term operating lease liabilities (Notes 2 and 6) | 68,955 | — | ||||||||||||
Long-term operating lease liabilities (Notes 2 and 7) | 69,331 | — | ||||||||||||
Other long-term liabilities | 82,564 | 84,826 | 79,352 | 84,826 | ||||||||||
Total long-term liabilities | 939,479 | 776,138 | 933,779 | 776,138 | ||||||||||
Total liabilities | 1,629,098 | 1,546,582 | 1,552,688 | 1,546,582 | ||||||||||
Commitments and Contingencies (Note 14) | ||||||||||||||
Commitments and Contingencies (Note 15) | ||||||||||||||
Stockholders’ Equity (Deficit): | ||||||||||||||
Common stock, $0.10 par value: Authorized: 120,000 shares; Issued: 105,345 shares in 2019 and 105,087 shares in 2018; Outstanding: 86,054 shares in 2019 and 86,100 shares in 2018 | 10,535 | 10,509 | ||||||||||||
Common stock, $0.10 par value: Authorized: 120,000 shares; Issued: 105,478 shares in 2019 and 105,087 shares in 2018; Outstanding: 86,103 shares in 2019 and 86,100 shares in 2018 | 10,548 | 10,509 | ||||||||||||
Additional paid-in capital | 1,155,875 | 1,138,216 | 1,170,962 | 1,138,216 | ||||||||||
Deferred stock units: Outstanding: 162 units in 2019 and 2018 | 4,592 | 4,524 | ||||||||||||
Deferred stock units: Outstanding: 144 units in 2019 and 162 units in 2018 | 4,381 | 4,524 | ||||||||||||
Retained earnings | 1,270,609 | 1,167,928 | 1,396,315 | 1,167,928 | ||||||||||
Accumulated other comprehensive loss | (40,015 | ) | (41,791 | ) | (40,583 | ) | (41,791 | ) | ||||||
Treasury stock, at cost: 19,290 shares in 2019 and 18,988 shares in 2018 | (2,350,034 | ) | (2,288,899 | ) | ||||||||||
Treasury stock, at cost: 19,375 shares in 2019 and 18,988 shares in 2018 | (2,370,377 | ) | (2,288,899 | ) | ||||||||||
Total IDEXX Laboratories, Inc. stockholders’ equity (deficit) | 51,562 | (9,513 | ) | 171,246 | (9,513 | ) | ||||||||
Noncontrolling interest | 308 | 280 | 303 | 280 | ||||||||||
Total stockholders’ equity (deficit) | 51,870 | (9,233 | ) | 171,549 | (9,233 | ) | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 1,680,968 | $ | 1,537,349 | $ | 1,724,237 | $ | 1,537,349 | ||||||
The accompanying notes are an integral part of these condensed consolidated financial statements. |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Revenue: | ||||||||||||||||||||||
Product revenue | $ | 334,058 | $ | 317,440 | $ | 365,638 | $ | 348,621 | $ | 699,696 | $ | 666,061 | ||||||||||
Service revenue | 241,998 | 220,216 | 254,465 | 232,131 | 496,463 | 452,347 | ||||||||||||||||
Total revenue | 576,056 | 537,656 | 620,103 | 580,752 | 1,196,159 | 1,118,408 | ||||||||||||||||
Cost of Revenue: | ||||||||||||||||||||||
Cost of product revenue | 117,383 | 118,246 | 127,893 | 127,270 | 245,276 | 245,516 | ||||||||||||||||
Cost of service revenue | 127,076 | 116,311 | 134,357 | 121,043 | 261,433 | 237,354 | ||||||||||||||||
Total cost of revenue | 244,459 | 234,557 | 262,250 | 248,313 | 506,709 | 482,870 | ||||||||||||||||
Gross profit | 331,597 | 303,099 | 357,853 | 332,439 | 689,450 | 635,538 | ||||||||||||||||
Expenses: | ||||||||||||||||||||||
Sales and marketing | 106,584 | 100,101 | 101,364 | 96,255 | 207,948 | 196,356 | ||||||||||||||||
General and administrative | 60,361 | 60,931 | 59,955 | 61,080 | 120,316 | 122,011 | ||||||||||||||||
Research and development | 31,514 | 29,023 | 32,259 | 29,510 | 63,773 | 58,533 | ||||||||||||||||
Income from operations | 133,138 | 113,044 | 164,275 | 145,594 | 297,413 | 258,638 | ||||||||||||||||
Interest expense | (8,386 | ) | (9,274 | ) | (8,186 | ) | (8,457 | ) | (16,572 | ) | (17,731 | ) | ||||||||||
Interest income | 40 | 579 | 33 | 172 | 73 | 751 | ||||||||||||||||
Income before provision for income taxes | 124,792 | 104,349 | 156,122 | 137,309 | 280,914 | 241,658 | ||||||||||||||||
Provision for income taxes | 22,083 | 14,873 | 30,421 | 28,629 | 52,504 | 43,502 | ||||||||||||||||
Net income | 102,709 | 89,476 | 125,701 | 108,680 | 228,410 | 198,156 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | 28 | 25 | (5 | ) | (11 | ) | 23 | 14 | ||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 102,681 | $ | 89,451 | $ | 125,706 | $ | 108,691 | $ | 228,387 | $ | 198,142 | ||||||||||
Earnings per Share: | ||||||||||||||||||||||
Basic | $ | 1.19 | $ | 1.02 | $ | 1.46 | $ | 1.25 | $ | 2.65 | $ | 2.27 | ||||||||||
Diluted | $ | 1.17 | $ | 1.01 | $ | 1.43 | $ | 1.23 | $ | 2.61 | $ | 2.23 | ||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||||||
Basic | 86,204 | 87,331 | 86,215 | 87,004 | 86,210 | 87,166 | ||||||||||||||||
Diluted | 87,549 | 88,944 | 87,615 | 88,596 | 87,594 | 88,786 | ||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements. | The accompanying notes are an integral part of these condensed consolidated financial statements. |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Net income | $ | 102,709 | $ | 89,476 | $ | 125,701 | $ | 108,680 | $ | 228,410 | $ | 198,156 | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||
Foreign currency translation adjustments | (1,423 | ) | 5,165 | 3,104 | (21,492 | ) | 1,681 | (16,327 | ) | |||||||||||||
Unrealized gain (loss) on net investment hedge | 1,480 | (2,216 | ) | |||||||||||||||||||
Unrealized gain on investments, net of tax expense of $128 in 2019 and $40 in 2018 | 407 | 118 | ||||||||||||||||||||
Unrealized (loss) gain on net investment hedge, net of tax (benefit) expense of $(309) and $158 in 2019 and $1,412 and $713 in 2018 | (980 | ) | 4,479 | 500 | 2,263 | |||||||||||||||||
Unrealized (loss) gain on investments, net of tax (benefit) expense of $(14) and $114 in 2019 and $9 and $49 in 2018 | (45 | ) | 32 | 362 | 150 | |||||||||||||||||
Unrealized gain (loss) on derivative instruments: | ||||||||||||||||||||||
Unrealized gain (loss), net of tax expense (benefit) of $531 in 2019 and $(377) in 2018 | 2,474 | (2,388 | ) | |||||||||||||||||||
Reclassification adjustment for (gain) loss included in net income, net of tax (expense) benefit of $(249) in 2019 and $250 in 2018 | (1,162 | ) | 1,585 | |||||||||||||||||||
Unrealized gain (loss) on derivative instruments | 1,312 | (803 | ) | |||||||||||||||||||
Other comprehensive gain, net of tax | 1,776 | 2,264 | ||||||||||||||||||||
Unrealized (loss) gain, net of tax (benefit) expense of $(169) and $362 in 2019 and $2,161 and $1,784 in 2018 | (496 | ) | 8,174 | 1,978 | 5,786 | |||||||||||||||||
Reclassification adjustment for (gain) loss included in net income, net of tax (expense) benefit of $(358) and $(607) in 2019 and $379 and $629 in 2018 | (2,151 | ) | 454 | (3,313 | ) | 2,039 | ||||||||||||||||
Unrealized (loss) gain on derivative instruments | (2,647 | ) | 8,628 | (1,335 | ) | 7,825 | ||||||||||||||||
Other comprehensive (loss) gain, net of tax | (568 | ) | (8,353 | ) | 1,208 | (6,089 | ) | |||||||||||||||
Comprehensive income | 104,485 | 91,740 | 125,133 | 100,327 | 229,618 | 192,067 | ||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | 28 | 25 | ||||||||||||||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interest | (5 | ) | (11 | ) | 23 | 14 | ||||||||||||||||
Comprehensive income attributable to IDEXX Laboratories, Inc. | $ | 104,457 | $ | 91,715 | $ | 125,138 | $ | 100,338 | $ | 229,595 | $ | 192,053 | ||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements. | The accompanying notes are an integral part of these condensed consolidated financial statements. |
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | $0.10 Par Value | Additional Paid-in Capital | Deferred Stock Units | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interest | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2017 | 104,275 | $ | 10,428 | $ | 1,073,931 | $ | 5,988 | $ | 803,545 | $ | (36,470 | ) | $ | (1,911,528 | ) | $ | 264 | $ | (53,842 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes | — | — | — | — | (12,648 | ) | — | — | — | (12,648 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance January 1, 2018 | 104,275 | $ | 10,428 | $ | 1,073,931 | $ | 5,988 | $ | 790,897 | $ | (36,470 | ) | $ | (1,911,528 | ) | $ | 264 | $ | (66,490 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 89,451 | — | — | 25 | 89,476 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 2,264 | — | — | 2,264 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, net | — | — | — | — | — | — | (94,285 | ) | — | (94,285 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock plans | 401 | 40 | 14,311 | (259 | ) | — | — | — | — | 14,092 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 5,917 | 43 | — | — | — | — | 5,960 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 31, 2018 | 104,676 | $ | 10,468 | $ | 1,094,159 | $ | 5,772 | $ | 880,348 | $ | (34,206 | ) | $ | (2,005,813 | ) | $ | 289 | $ | (48,983 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | $0.10 Par Value | Additional Paid-in Capital | Deferred Stock Units | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interest | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2018 | 105,087 | 10,509 | 1,138,216 | 4,524 | 1,167,928 | (41,791 | ) | (2,288,899 | ) | 280 | (9,233 | ) | 105,087 | 10,509 | 1,138,216 | 4,524 | 1,167,928 | (41,791 | ) | (2,288,899 | ) | 280 | (9,233 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 102,681 | — | — | 28 | 102,709 | — | — | — | — | 102,681 | — | — | 28 | 102,709 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 1,776 | — | — | 1,776 | — | — | — | — | — | 1,776 | — | — | 1,776 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, net | — | — | — | — | — | — | (61,135 | ) | — | (61,135 | ) | — | — | — | — | — | — | (61,135 | ) | — | (61,135 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock plans | 258 | 26 | 11,393 | — | — | — | — | — | 11,419 | 258 | 26 | 11,393 | — | — | — | — | — | 11,419 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 6,266 | 68 | — | — | — | — | 6,334 | — | — | 6,266 | 68 | — | — | — | — | 6,334 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 31, 2019 | 105,345 | $ | 10,535 | $ | 1,155,875 | $ | 4,592 | $ | 1,270,609 | $ | (40,015 | ) | $ | (2,350,034 | ) | $ | 308 | $ | 51,870 | 105,345 | $ | 10,535 | $ | 1,155,875 | $ | 4,592 | $ | 1,270,609 | $ | (40,015 | ) | $ | (2,350,034 | ) | $ | 308 | $ | 51,870 | ||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | 125,706 | — | — | (5 | ) | 125,701 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (568 | ) | — | — | (568 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, net | — | — | — | — | — | — | (20,343 | ) | — | (20,343 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock plans | 133 | 13 | 8,556 | (578 | ) | — | — | — | — | 7,991 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred stock units activity | — | — | (324 | ) | 324 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 6,855 | 43 | — | — | — | — | 6,898 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2019 | 105,478 | $ | 10,548 | $ | 1,170,962 | $ | 4,381 | $ | 1,396,315 | $ | (40,583 | ) | $ | (2,370,377 | ) | $ | 303 | $ | 171,549 | |||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
| For the Three Months Ended March 31, | ||||||
| 2019 | 2018 | |||||
| |||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 102,709 | $ | 89,476 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 21,355 | 20,804 | |||||
Benefit of deferred income taxes | 3,294 | 3,005 | |||||
Share-based compensation expense | 6,334 | 5,960 | |||||
Other | 628 | 1,091 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (33,421 | ) | (21,800 | ) | |||
Inventories | (14,521 | ) | (8,070 | ) | |||
Other assets and liabilities | (49,601 | ) | (52,302 | ) | |||
Accounts payable | 699 | (1,939 | ) | ||||
Deferred revenue | (3,098 | ) | (1,327 | ) | |||
Net cash provided by operating activities | 34,378 | 34,898 | |||||
Cash Flows from Investing Activities: | |||||||
Purchases of property and equipment | (38,206 | ) | (23,726 | ) | |||
Purchase of marketable securities | — | (87 | ) | ||||
Proceeds from the sale and maturities of marketable securities | — | 284,125 | |||||
Net cash (used) provided by investing activities | (38,206 | ) | 260,312 | ||||
Cash Flows from Financing Activities: | |||||||
Repayments on revolving credit facilities, net | (52,024 | ) | (247,500 | ) | |||
Issuance of senior notes | 100,000 | — | |||||
Debt issuance costs | (30 | ) | — | ||||
Payment of acquisition-related contingent consideration | (573 | ) | — | ||||
Repurchases of common stock | (54,302 | ) | (83,487 | ) | |||
Proceeds from exercises of stock options and employee stock purchase plans | 11,551 | 14,551 | |||||
Shares withheld for statutory tax withholding on restricted stock | (7,403 | ) | (8,555 | ) | |||
Net cash used by financing activities | (2,781 | ) | (324,991 | ) | |||
Net effect of changes in exchange rates on cash | (569 | ) | 1,335 | ||||
Net decrease in cash and cash equivalents | (7,178 | ) | (28,446 | ) | |||
Cash and cash equivalents at beginning of period | 123,794 | 187,675 | |||||
Cash and cash equivalents at end of period | $ | 116,616 | $ | 159,229 | |||
| |||||||
The accompanying notes are an integral part of these condensed consolidated financial statements. |
| Common Stock | |||||||||||||||||||||||||||||||||
| Number of Shares | $0.10 Par Value | Additional Paid-in Capital | Deferred Stock Units | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interest | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||
Balance December 31, 2017 | 104,275 | $ | 10,428 | $ | 1,073,931 | $ | 5,988 | $ | 803,545 | $ | (36,470 | ) | $ | (1,911,528 | ) | $ | 264 | $ | (53,842 | ) | ||||||||||||||
Cumulative effect of accounting changes | — | — | — | — | (12,648 | ) | — | — | — | (12,648 | ) | |||||||||||||||||||||||
Balance January 1, 2018 | 104,275 | $ | 10,428 | $ | 1,073,931 | $ | 5,988 | $ | 790,897 | $ | (36,470 | ) | $ | (1,911,528 | ) | $ | 264 | $ | (66,490 | ) | ||||||||||||||
Net income | — | — | — | — | 89,451 | — | — | 25 | 89,476 | |||||||||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 2,264 | — | — | 2,264 | |||||||||||||||||||||||||
Repurchases of common stock, net | — | — | — | — | — | — | (94,285 | ) | — | (94,285 | ) | |||||||||||||||||||||||
Common stock issued under stock plans | 401 | 40 | 14,311 | (259 | ) | — | — | — | — | 14,092 | ||||||||||||||||||||||||
Share-based compensation cost | — | — | 5,917 | 43 | — | — | — | — | 5,960 | |||||||||||||||||||||||||
Balance March 31, 2018 | 104,676 | $ | 10,468 | $ | 1,094,159 | $ | 5,772 | $ | 880,348 | $ | (34,206 | ) | $ | (2,005,813 | ) | $ | 289 | $ | (48,983 | ) | ||||||||||||||
Net income (loss) | — | — | — | — | 108,691 | — | — | (11 | ) | 108,680 | ||||||||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (8,353 | ) | — | — | (8,353 | ) | |||||||||||||||||||||||
Repurchases of common stock, net | — | — | — | — | — | — | (105,834 | ) | — | (105,834 | ) | |||||||||||||||||||||||
Common stock issued under stock plans | 171 | 17 | 9,053 | (1,821 | ) | — | — | — | — | 7,249 | ||||||||||||||||||||||||
Deferred stock units activity | — | — | (385 | ) | 385 | — | — | — | — | — | ||||||||||||||||||||||||
Share-based compensation cost | — | — | 6,330 | 62 | — | — | — | — | 6,392 | |||||||||||||||||||||||||
Balance June 30, 2018 | 104,847 | $ | 10,485 | $ | 1,109,157 | $ | 4,398 | $ | 989,039 | $ | (42,559 | ) | $ | (2,111,647 | ) | $ | 278 | $ | (40,849 | ) | ||||||||||||||
| ||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
| For the Six Months Ended June 30, | ||||||
| 2019 | 2018 | |||||
| |||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 228,410 | $ | 198,156 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 42,976 | 41,696 | |||||
Benefit of deferred income taxes | 3,426 | 8,638 | |||||
Share-based compensation expense | 13,232 | 12,352 | |||||
Other | 747 | 1,613 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (37,699 | ) | (32,872 | ) | |||
Inventories | (22,911 | ) | (16,825 | ) | |||
Other assets and liabilities | (45,822 | ) | (55,781 | ) | |||
Accounts payable | (4,030 | ) | 3 | ||||
Deferred revenue | (6,849 | ) | (3,252 | ) | |||
Net cash provided by operating activities | 171,480 | 153,728 | |||||
Cash Flows from Investing Activities: | |||||||
Purchases of property and equipment | (71,987 | ) | (51,377 | ) | |||
Purchase of marketable securities | — | (87 | ) | ||||
Proceeds from the sale and maturities of marketable securities | — | 284,125 | |||||
Acquisition of a business | (304 | ) | — | ||||
Net cash (used) provided by investing activities | (72,291 | ) | 232,661 | ||||
Cash Flows from Financing Activities: | |||||||
Repayments on revolving credit facilities, net | (147,519 | ) | (218,000 | ) | |||
Issuance of senior notes | 100,000 | — | |||||
Debt issuance costs | (142 | ) | — | ||||
Payment of acquisition-related contingent consideration | (1,695 | ) | (1,000 | ) | |||
Repurchases of common stock | (74,994 | ) | (189,884 | ) | |||
Proceeds from exercises of stock options and employee stock purchase plans | 19,653 | 21,905 | |||||
Shares withheld for statutory tax withholding on restricted stock | (7,572 | ) | (8,720 | ) | |||
Net cash used by financing activities | (112,269 | ) | (395,699 | ) | |||
Net effect of changes in exchange rates on cash | 131 | (3,806 | ) | ||||
Net decrease in cash and cash equivalents | (12,949 | ) | (13,116 | ) | |||
Cash and cash equivalents at beginning of period | 123,794 | 187,675 | |||||
Cash and cash equivalents at end of period | $ | 110,845 | $ | 174,559 | |||
| |||||||
Supplemental Cash Flow Information: | |||||||
Unpaid property and equipment, reflected in accounts payable and accrued liabilities | $ | 11,633 | $ | 9,419 | |||
The accompanying notes are an integral part of these condensed consolidated financial statements. |
| Consolidated Balance Sheet | ||||||||||
| |||||||||||
| Previous U.S. GAAP December 31, 2018 (Reported) | New U.S. GAAP January 1, 2019 | Impact of the New Leasing Standard | ||||||||
| |||||||||||
ASSETS | |||||||||||
Other current assets | $ | 108,220 | $ | 107,228 | $ | (992 | ) | ||||
Total current assets | $ | 654,172 | $ | 653,180 | $ | (992 | ) | ||||
Operating lease right-of-use asset | $ | — | $ | 83,707 | $ | 83,707 | |||||
Total long-term assets | $ | 883,177 | $ | 966,884 | $ | 83,707 | |||||
TOTAL ASSETS | $ | 1,537,349 | $ | 1,620,064 | $ | 82,715 | |||||
LIABILITIES | |||||||||||
Accrued liabilities | $ | 260,683 | $ | 274,459 | $ | 13,776 | |||||
Total current liabilities | $ | 770,444 | $ | 784,220 | $ | 13,776 | |||||
Long-term operating lease liability | $ | — | $ | 68,939 | $ | 68,939 | |||||
Total long-term liabilities | $ | 776,138 | $ | 845,077 | $ | 68,939 | |||||
TOTAL LIABILITIES | $ | 1,546,582 | $ | 1,629,297 | $ | 82,715 |
| Consolidated Balance Sheet | ||||||||||
| |||||||||||
| Previous U.S. GAAP December 31, 2018 (Reported) | New U.S. GAAP January 1, 2019 | Impact of the New Leasing Standard | ||||||||
| |||||||||||
ASSETS | |||||||||||
Other current assets | $ | 108,220 | $ | 107,228 | $ | (992 | ) | ||||
Total current assets | $ | 654,172 | $ | 653,180 | $ | (992 | ) | ||||
Operating lease right-of-use asset | $ | — | $ | 83,707 | $ | 83,707 | |||||
Total long-term assets | $ | 883,177 | $ | 966,884 | $ | 83,707 | |||||
TOTAL ASSETS | $ | 1,537,349 | $ | 1,620,064 | $ | 82,715 | |||||
LIABILITIES | |||||||||||
Accrued liabilities | $ | 260,683 | $ | 274,459 | $ | 13,776 | |||||
Total current liabilities | $ | 770,444 | $ | 784,220 | $ | 13,776 | |||||
Long-term operating lease liability | $ | — | $ | 68,939 | $ | 68,939 | |||||
Total long-term liabilities | $ | 776,138 | $ | 845,077 | $ | 68,939 | |||||
TOTAL LIABILITIES | $ | 1,546,582 | $ | 1,629,297 | $ | 82,715 |
1. | Identification of a contract or agreement with a customer |
2. | Identification of our performance obligations in the contract or agreement |
3. | Determination of the transaction price |
4. | Allocation of the transaction price to the performance obligations |
5. | Recognition of revenue when, or as, we satisfy a performance obligation |
For the Three Months Ended March 31, | ||||||||||||||||||||||
(in thousands) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
CAG segment revenue: | ||||||||||||||||||||||
CAG Diagnostics recurring revenue: | $ | 443,791 | $ | 406,048 | $ | 477,431 | $ | 437,666 | $ | 921,222 | $ | 843,714 | ||||||||||
IDEXX VetLab consumables | 167,211 | 149,513 | 175,159 | 158,620 | 342,370 | 308,133 | ||||||||||||||||
Rapid assay products | 54,431 | 52,017 | 68,605 | 63,362 | 123,036 | 115,379 | ||||||||||||||||
Reference laboratory diagnostic and consulting services | 202,658 | 186,937 | 213,892 | 197,268 | 416,550 | 384,205 | ||||||||||||||||
CAG Diagnostics service and accessories | 19,491 | 17,581 | ||||||||||||||||||||
CAG Diagnostics services and accessories | 19,775 | 18,416 | 39,266 | 35,997 | ||||||||||||||||||
CAG Diagnostics capital - instruments | 28,749 | 30,895 | 31,526 | 34,544 | 60,275 | 65,439 | ||||||||||||||||
Veterinary software, services and diagnostic imaging systems | 36,378 | 33,890 | 38,392 | 35,277 | 74,770 | 69,167 | ||||||||||||||||
CAG segment revenue | 508,918 | 470,833 | 547,349 | 507,487 | 1,056,267 | 978,320 | ||||||||||||||||
Water segment revenue | 30,310 | 29,143 | 34,764 | 32,658 | 65,074 | 61,801 | ||||||||||||||||
LPD segment revenue | 31,506 | 32,240 | 33,104 | 34,998 | 64,610 | 67,238 | ||||||||||||||||
Other segment revenue | 5,322 | 5,440 | 4,886 | 5,609 | 10,208 | 11,049 | ||||||||||||||||
Total revenue | $ | 576,056 | $ | 537,656 | $ | 620,103 | $ | 580,752 | $ | 1,196,159 | $ | 1,118,408 |
(in thousands) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||
United States | $ | 388,875 | $ | 356,736 | $ | 747,163 | $ | 684,197 | |||||||
Europe, the Middle East and Africa | 124,840 | 122,270 | 246,586 | 242,844 | |||||||||||
Asia Pacific Region | 64,033 | 62,505 | 124,108 | 118,544 | |||||||||||
Canada | 27,654 | 26,407 | 50,878 | 48,951 | |||||||||||
Latin America | 14,701 | 12,834 | 27,424 | 23,872 | |||||||||||
Total | $ | 620,103 | $ | 580,752 | $ | 1,196,159 | $ | 1,118,408 |
| For the Three Months Ended March 31, | ||||||
| 2019 | 2018 | |||||
United States | $ | 358,288 | $ | 327,461 | |||
Europe, the Middle East and Africa | 121,746 | 120,574 | |||||
Asia Pacific Region | 60,075 | 56,039 | |||||
Canada | 23,224 | 22,544 | |||||
Latin America | 12,723 | 11,038 | |||||
Total | $ | 576,056 | $ | 537,656 |
| For the Six Months Ended June 30, | ||||||
| 2019 | 2018 | |||||
| |||||||
Share price at grant | $ | 208.25 | $ | 179.56 | |||
Expected stock price volatility | 26 | % | 24 | % | |||
Expected term, in years | 6.0 | 5.8 | |||||
Risk-free interest rate | 2.5 | % | 2.7 | % | |||
Weighted average fair value of options granted | $ | 63.93 | $ | 52.99 |
| For the Three Months Ended March 31, | ||||||
| 2019 | 2018 | |||||
| |||||||
Share price at grant | $ | 206.94 | $ | 178.26 | |||
Expected stock price volatility | 26 | % | 24 | % | |||
Expected term, in years | 6.0 | 5.8 | |||||
Risk-free interest rate | 2.5 | % | 2.7 | % | |||
Weighted average fair value of options granted | $ | 63.55 | $ | 52.49 |
(in thousands) | June 30, 2019 | December 31, 2018 | |||||
| |||||||
Raw materials | $ | 38,010 | $ | 31,973 | |||
Work-in-process | 19,398 | 17,009 | |||||
Finished goods | 139,468 | 124,321 | |||||
Inventories | $ | 196,876 | $ | 173,303 |
| March 31, 2019 | December 31, 2018 | |||||
| |||||||
Raw materials | $ | 32,869 | $ | 31,973 | |||
Work-in-process | 20,077 | 17,009 | |||||
Finished goods | 136,522 | 124,321 | |||||
Inventories | $ | 189,468 | $ | 173,303 |
(in thousands, except lease term and discount rate) | June 30, 2019 | ||
| |||
2019 (remainder of year) | $ | 8,378 | |
2020 | 18,661 | ||
2021 | 16,161 | ||
2022 | 12,550 | ||
2023 | 8,286 | ||
Thereafter | 38,383 | ||
Total lease payments | 102,419 | ||
Less imputed interest | (18,085 | ) | |
Total | $ | 84,334 | |
Current operating lease liabilities, included in accrued liabilities | $ | 15,003 | |
Long-term operating lease liabilities | $ | 69,331 | |
Weighted average remaining lease term - operating leases | 10.7 years | ||
Weighted average discount rate - operating leases | 3.5 | % |
| March 31, 2019 | ||
| |||
2019 (remainder of year) | $ | 12,308 | |
2020 | 17,414 | ||
2021 | 14,821 | ||
2022 | 11,175 | ||
2023 | 7,705 | ||
Thereafter | 37,722 | ||
Total lease payments | 101,145 | ||
Less imputed interest | (18,258 | ) | |
Total | $ | 82,887 | |
Current operating lease liabilities, included in accrued liabilities | $ | 13,932 | |
Long-term operating lease liabilities | $ | 68,955 | |
Weighted average remaining lease term - operating leases | 10.9 years | ||
Weighted average discount rate - operating leases | 3.7 | % |
(in thousands) | For the Six Months Ended June 30, 2019 | ||
| |||
Cash paid for amounts included in the measurement of operating leases liabilities | $ | 10,010 | |
Right-of-use assets obtained in exchange for operating lease obligations, net of early lease terminations | $ | 5,560 |
For the Three Months Ended March 31, 2019 | |||
| |||
Cash paid for amounts included in the measurement of operating leases liabilities | $ | 5,728 | |
Right-of-use assets obtained in exchange for operating lease obligations | $ | 2,196 |
(in thousands) | June 30, 2019 | December 31, 2018 | |||||
| |||||||
Prepaid expenses (Note 2) | $ | 28,958 | $ | 30,314 | |||
Taxes receivable | 22,744 | 14,098 | |||||
Customer acquisition costs | 36,291 | 34,515 | |||||
Contract assets | 13,008 | 9,670 | |||||
Deferred sales commissions | 4,861 | 4,464 | |||||
Other assets | 12,561 | 15,159 | |||||
Other current assets | $ | 118,423 | $ | 108,220 |
| March 31, 2019 | December 31, 2018 | |||||
| |||||||
Prepaid expenses (Note 2) | $ | 31,593 | $ | 30,314 | |||
Taxes receivable | 13,813 | 14,098 | |||||
Customer acquisition costs | 35,495 | 34,515 | |||||
Contract assets | 11,669 | 9,670 | |||||
Deferred sales commissions | 4,664 | 4,464 | |||||
Other assets | 13,169 | 15,159 | |||||
Other current assets | $ | 110,403 | $ | 108,220 |
(in thousands) | June 30, 2019 | December 31, 2018 | |||||
| |||||||
Investment in long-term product supply arrangements | $ | 12,386 | $ | 10,894 | |||
Customer acquisition costs | 90,114 | 89,862 | |||||
Contract assets | 47,344 | 31,269 | |||||
Deferred sales commissions | 9,890 | 9,470 | |||||
Deferred income taxes | 8,739 | 8,481 | |||||
Other assets | 38,783 | 39,617 | |||||
Other long-term assets | $ | 207,256 | $ | 189,593 |
| March 31, 2019 | December 31, 2018 | |||||
| |||||||
Investment in long-term product supply arrangements | $ | 11,621 | $ | 10,894 | |||
Customer acquisition costs | 89,690 | 89,862 | |||||
Contract assets | 37,839 | 31,269 | |||||
Deferred sales commissions | 9,731 | 9,470 | |||||
Deferred income taxes | 8,368 | 8,481 | |||||
Other assets | 42,360 | 39,617 | |||||
Other long-term assets | $ | 199,609 | $ | 189,593 |
(in thousands) | June 30, 2019 | December 31, 2018 | |||||
| |||||||
Accrued expenses (Note 2) | $ | 68,180 | $ | 65,212 | |||
Accrued employee compensation and related expenses | 86,061 | 109,488 | |||||
Accrued taxes | 25,623 | 26,609 | |||||
Accrued customer incentives and refund obligations | 61,462 | 59,374 | |||||
Current lease liabilities (Notes 2 and 7) | 15,003 | — | |||||
Accrued liabilities | $ | 256,329 | $ | 260,683 |
| March 31, 2019 | December 31, 2018 | |||||
| |||||||
Accrued expenses (Note 2) | $ | 58,589 | $ | 65,212 | |||
Accrued employee compensation and related expenses | 60,351 | 109,488 | |||||
Accrued taxes | 36,326 | 26,609 | |||||
Accrued customer incentives and refund obligations | 59,929 | 59,374 | |||||
Current lease liabilities (Notes 2 and 6) | 13,932 | — | |||||
Accrued liabilities | $ | 229,127 | $ | 260,683 |
(in thousands) | June 30, 2019 | December 31, 2018 | |||||
Accrued taxes | $ | 64,611 | $ | 66,767 | |||
Other accrued long-term expenses (Note 2) | 14,741 | 18,059 | |||||
Other long-term liabilities | $ | 79,352 | $ | 84,826 |
| March 31, 2019 | December 31, 2018 | |||||
Accrued taxes | $ | 67,525 | $ | 66,767 | |||
Other accrued long-term expenses (Note 2) | 15,039 | 18,059 | |||||
Other long-term liabilities | $ | 82,564 | $ | 84,826 |
(in thousands, except per share amounts) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||
| |||||||||||||||
Shares repurchased in the open market | 86 | 517 | 353 | 982 | |||||||||||
Shares acquired through employee surrender for statutory tax withholding | 1 | 1 | 37 | 49 | |||||||||||
Total shares repurchased | 87 | 518 | 390 | 1,031 | |||||||||||
| |||||||||||||||
Cost of shares repurchased in the open market | $ | 20,285 | $ | 105,774 | $ | 74,147 | $ | 191,962 | |||||||
Cost of shares for employee surrenders | 169 | 165 | 7,572 | 8,720 | |||||||||||
Total cost of shares | $ | 20,454 | $ | 105,939 | $ | 81,719 | $ | 200,682 | |||||||
| |||||||||||||||
Average cost per share - open market repurchases | $ | 235.94 | $ | 204.69 | $ | 209.81 | $ | 195.47 | |||||||
Average cost per share - employee surrenders | $ | 249.77 | $ | 215.36 | $ | 207.16 | $ | 179.41 | |||||||
Average cost per share - total | $ | 236.04 | $ | 204.71 | $ | 209.56 | $ | 194.71 |
| For the Three Months Ended March 31, | ||||||
| 2019 | 2018 | |||||
| |||||||
Shares repurchased in the open market | 267 | 465 | |||||
Shares acquired through employee surrender for statutory tax withholding | 36 | 48 | |||||
Total shares repurchased | 303 | 513 | |||||
| |||||||
Cost of shares repurchased in the open market | $ | 53,862 | $ | 86,188 | |||
Cost of shares for employee surrenders | 7,403 | 8,555 | |||||
Total cost of shares | $ | 61,265 | $ | 94,743 | |||
| |||||||
Average cost per share - open market repurchases | $ | 201.41 | $ | 185.23 | |||
Average cost per share - employee surrenders | $ | 206.35 | $ | 178.83 | |||
Average cost per share - total | $ | 202.00 | $ | 184.63 |
For the Six Months Ended June 30, 2019 | ||||||||||||||||||||
(in thousands) | Unrealized (Loss) Gain on Investments, Net of Tax | Unrealized Gain (Loss) on Derivative Instruments, Net of Tax | Unrealized (Loss) Gain on Net Investment Hedge, Net of Tax | Cumulative Translation Adjustment | Total | |||||||||||||||
| ||||||||||||||||||||
Balance as of December 31, 2018 | $ | (157 | ) | $ | 7,589 | $ | (394 | ) | $ | (48,829 | ) | $ | (41,791 | ) | ||||||
Other comprehensive income before reclassifications | 362 | 1,978 | 500 | 1,681 | 4,521 | |||||||||||||||
Gains reclassified from accumulated other comprehensive income | — | (3,313 | ) | — | — | (3,313 | ) | |||||||||||||
Balance as of June 30, 2019 | $ | 205 | $ | 6,254 | $ | 106 | $ | (47,148 | ) | $ | (40,583 | ) |
For the Three Months Ended March 31, 2019 | Unrealized (Loss) Gain on Investments, Net of Tax | Unrealized Gain (Loss) on Derivative Instruments, Net of Tax | Unrealized (Loss) Gain on Net Investment Hedge, Net of Tax | Cumulative Translation Adjustment | Total | |||||||||||||||
| ||||||||||||||||||||
Balance as of December 31, 2018 | $ | (157 | ) | $ | 7,589 | $ | (394 | ) | $ | (48,829 | ) | $ | (41,791 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 407 | 2,474 | 1,480 | (1,423 | ) | 2,938 | ||||||||||||||
Gains reclassified from accumulated other comprehensive income | — | (1,162 | ) | — | — | (1,162 | ) | |||||||||||||
Balance as of March 31, 2019 | $ | 250 | $ | 8,901 | $ | 1,086 | $ | (50,252 | ) | $ | (40,015 | ) |
For the Six Months Ended June 30, 2018 | ||||||||||||||||||||
(in thousands) | Unrealized (Loss) Gain on Investments, Net of Tax | Unrealized (Loss) Gain on Derivative Instruments, Net of Tax | Unrealized (Loss) Gain on Net Investment Hedge, Net of Tax | Cumulative Translation Adjustment | Total | |||||||||||||||
| ||||||||||||||||||||
Balance as of December 31, 2017 | $ | (22 | ) | $ | (5,219 | ) | $ | (4,311 | ) | $ | (26,918 | ) | $ | (36,470 | ) | |||||
Other comprehensive income (loss) before reclassifications | 150 | 5,786 | 2,263 | (16,327 | ) | (8,128 | ) | |||||||||||||
Losses reclassified from accumulated other comprehensive income | — | 2,039 | — | — | 2,039 | |||||||||||||||
Balance as of June 30, 2018 | $ | 128 | $ | 2,606 | $ | (2,048 | ) | $ | (43,245 | ) | $ | (42,559 | ) |
For the Three Months Ended March 31, 2018 | Unrealized (Loss) Gain on Investments, Net of Tax | Unrealized (Loss) Gain on Derivative Instruments, Net of Tax | Unrealized Loss on Net Investment Hedge, Net of Tax | Cumulative Translation Adjustment | Total | |||||||||||||||
| ||||||||||||||||||||
Balance as of December 31, 2017 | $ | (22 | ) | $ | (5,219 | ) | $ | (4,311 | ) | $ | (26,918 | ) | $ | (36,470 | ) | |||||
Other comprehensive income (loss) before reclassifications | 118 | (2,388 | ) | (2,216 | ) | 5,165 | 679 | |||||||||||||
Losses reclassified from accumulated other comprehensive income | — | 1,585 | — | — | 1,585 | |||||||||||||||
Balance as of March 31, 2018 | $ | 96 | $ | (6,022 | ) | $ | (6,527 | ) | $ | (21,753 | ) | $ | (34,206 | ) |
Details about AOCI Components | Affected Line Item in the Statements of Income | Amounts Reclassified from AOCI For the Three Months Ended March 31, | ||||||||||||||||||
(in thousands) | Affected Line Item in the Statements of Income | Amounts Reclassified from AOCI For the Three Months Ended June 30, | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Gain (loss) on derivative instruments classified as cash flow hedges included in net income: | ||||||||||||||||||||
Foreign currency exchange contracts | Cost of revenue | $ | 1,411 | $ | (1,835 | ) | Cost of revenue | $ | 2,509 | $ | (833 | ) | ||||||||
Tax expense (benefit) | 249 | (250 | ) | Tax expense (benefit) | 358 | (379 | ) | |||||||||||||
Gain (loss), net of tax | $ | 1,162 | $ | (1,585 | ) | Gain (loss), net of tax | $ | 2,151 | $ | (454 | ) |
(in thousands) | Affected Line Item in the Statements of Income | Amounts Reclassified from AOCI For the Six Months Ended June 30, | ||||||||
| 2019 | 2018 | ||||||||
Gain (loss) on derivative instruments classified as cash flow hedges included in net income: | ||||||||||
Foreign currency exchange contracts | Cost of revenue | $ | 3,920 | $ | (2,668 | ) | ||||
| Tax expense (benefit) | 607 | (629 | ) | ||||||
| Gain (loss), net of tax | $ | 3,313 | $ | (2,039 | ) |
(in thousands) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||
| |||||||||||
Shares outstanding for basic earnings per share | 86,215 | 87,004 | 86,210 | 87,166 | |||||||
| |||||||||||
Shares outstanding for diluted earnings per share: | |||||||||||
Shares outstanding for basic earnings per share | 86,215 | 87,004 | 86,210 | 87,166 | |||||||
Dilutive effect of share-based payment awards | 1,400 | 1,592 | 1,384 | 1,620 | |||||||
| 87,615 | 88,596 | 87,594 | 88,786 |
| For the Three Months Ended March 31, | ||||
| 2019 | 2018 | |||
| |||||
Shares outstanding for basic earnings per share | 86,204 | 87,331 | |||
| |||||
Shares outstanding for diluted earnings per share: | |||||
Shares outstanding for basic earnings per share | 86,204 | 87,331 | |||
Dilutive effect of share-based payment awards | 1,345 | 1,613 | |||
| 87,549 | 88,944 |
(in thousands) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||
| |||||||||||
Weighted average number of shares underlying anti-dilutive options | 286 | 326 | 235 | 245 |
| For the Three Months Ended March 31, | ||||
| 2019 | 2018 | |||
| |||||
Weighted average number of shares underlying anti-dilutive options | 463 | 167 |
For the Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
CAG | Water | LPD | Other | Unallocated Amounts | Consolidated Total | CAG | Water | LPD | Other | Unallocated Amounts | Consolidated Total | |||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 508,918 | $ | 30,310 | $ | 31,506 | $ | 5,322 | $ | — | $ | 576,056 | $ | 547,349 | $ | 34,764 | $ | 33,104 | $ | 4,886 | $ | — | $ | 620,103 | ||||||||||||||||||||||||
Income (loss) from operations | $ | 115,022 | $ | 13,782 | $ | 6,250 | $ | 1,526 | $ | (3,442 | ) | $ | 133,138 | $ | 144,583 | $ | 16,567 | $ | 6,393 | $ | 752 | $ | (4,020 | ) | $ | 164,275 | ||||||||||||||||||||||
Interest expense, net | (8,346 | ) | (8,153 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Income before provision for income taxes | 124,792 | 156,122 | ||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 22,083 | 30,421 | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | 102,709 | 125,701 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 28 | |||||||||||||||||||||||||||||||||||||||||||||||
Less: Net loss attributable to noncontrolling interest | (5 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 102,681 | $ | 125,706 | ||||||||||||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 470,833 | $ | 29,143 | $ | 32,240 | $ | 5,440 | $ | — | $ | 537,656 | $ | 507,487 | $ | 32,658 | $ | 34,998 | $ | 5,609 | $ | — | $ | 580,752 | ||||||||||||||||||||||||
Income (loss) from operations | $ | 100,398 | $ | 12,462 | $ | 2,961 | $ | 498 | $ | (3,275 | ) | $ | 113,044 | $ | 129,796 | $ | 15,122 | $ | 6,471 | $ | 1,130 | $ | (6,925 | ) | $ | 145,594 | ||||||||||||||||||||||
Interest expense, net | (8,695 | ) | (8,285 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Income before provision for income taxes | 104,349 | 137,309 | ||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 14,873 | 28,629 | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | 89,476 | 108,680 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 25 | |||||||||||||||||||||||||||||||||||||||||||||||
Less: Net loss attributable to noncontrolling interest | (11 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 89,451 | $ | 108,691 |
(in thousands) | For the Six Months Ended June 30, | |||||||||||||||||||||||
| CAG | Water | LPD | Other | Unallocated Amounts | Consolidated Total | ||||||||||||||||||
2019 | ||||||||||||||||||||||||
Revenue | $ | 1,056,267 | $ | 65,074 | $ | 64,610 | $ | 10,208 | $ | — | $ | 1,196,159 | ||||||||||||
| ||||||||||||||||||||||||
Income (loss) from operations | $ | 259,605 | $ | 30,349 | $ | 12,643 | $ | 2,278 | $ | (7,462 | ) | $ | 297,413 | |||||||||||
Interest expense, net | (16,499 | ) | ||||||||||||||||||||||
Income before provision for income taxes | 280,914 | |||||||||||||||||||||||
Provision for income taxes | 52,504 | |||||||||||||||||||||||
Net income | 228,410 | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 23 | |||||||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 228,387 | ||||||||||||||||||||||
| ||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||
Revenue | $ | 978,320 | $ | 61,801 | $ | 67,238 | $ | 11,049 | $ | — | $ | 1,118,408 | ||||||||||||
| ||||||||||||||||||||||||
Income (loss) from operations | $ | 230,194 | $ | 27,584 | $ | 9,432 | $ | 1,628 | $ | (10,200 | ) | $ | 258,638 | |||||||||||
Interest expense, net | (16,980 | ) | ||||||||||||||||||||||
Income before provision for income taxes | 241,658 | |||||||||||||||||||||||
Provision for income taxes | 43,502 | |||||||||||||||||||||||
Net income | 198,156 | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 14 | |||||||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 198,142 |
Level 1 | Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. | |
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
As of March 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at March 31, 2019 | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
As of June 30, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at June 30, 2019 | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Money market funds(1) | $ | 255 | $ | — | $ | — | $ | 255 | $ | 257 | $ | — | $ | — | $ | 257 | ||||||||||||||||
Equity mutual funds(2) | $ | 1,809 | $ | — | $ | — | $ | 1,809 | $ | 1,779 | $ | — | $ | — | $ | 1,779 | ||||||||||||||||
Cross currency swaps(3) | $ | — | $ | 3,670 | $ | — | $ | 3,670 | $ | — | $ | 2,930 | $ | — | $ | 2,930 | ||||||||||||||||
Foreign currency exchange contracts(3) | $ | — | $ | 7,326 | $ | — | $ | 7,326 | $ | — | $ | 5,476 | $ | — | $ | 5,476 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Foreign currency exchange contracts(3) | $ | — | $ | 74 | $ | — | $ | 74 | $ | — | $ | 857 | $ | — | $ | 857 | ||||||||||||||||
Deferred compensation(4) | $ | 1,809 | $ | — | $ | — | $ | 1,809 | $ | 1,779 | $ | — | $ | — | $ | 1,779 |
(in thousands) | ||||||||||||||||||||||||||||||||
As of December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at December 31, 2018 | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Money market funds(1) | $ | 250 | $ | — | $ | — | $ | 250 | $ | 250 | $ | — | $ | — | $ | 250 | ||||||||||||||||
Equity mutual funds(2) | $ | 1,673 | $ | — | $ | — | $ | 1,673 | $ | 1,673 | $ | — | $ | — | $ | 1,673 | ||||||||||||||||
Cross currency swaps(3) | $ | — | $ | 1,789 | $ | — | $ | 1,789 | $ | — | $ | 1,789 | $ | — | $ | 1,789 | ||||||||||||||||
Foreign currency exchange contracts(3) | $ | — | $ | 8,163 | $ | — | $ | 8,163 | $ | — | $ | 8,163 | $ | — | $ | 8,163 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Foreign currency exchange contracts(3) | $ | — | $ | 603 | $ | — | $ | 603 | $ | — | $ | 603 | $ | — | $ | 603 | ||||||||||||||||
Deferred compensation(4) | $ | 1,673 | $ | — | $ | — | $ | 1,673 | $ | 1,673 | $ | — | $ | — | $ | 1,673 |
(1) | Money market funds with an original maturity of less than ninety days are included within cash and cash equivalents. The remaining balance of cash and cash equivalents as of |
(2) | Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other long-term assets. See |
(3) | Cross currency swaps and foreign currency exchange contracts are included within other current assets; other long-term assets; accrued liabilities; or other long-term liabilities depending on the gain (loss) position and anticipated settlement date. |
(4) | A deferred compensation plan assumed as part of a previous business combination is included within accrued liabilities and other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in |
Three Months Ended March 31, | ||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
(in thousands) | Three Months Ended June 30, | |||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Financial statement line items in which effects of cash flow hedges are recorded | Cost of revenue | $ | 244,459 | $ | 234,557 | Cost of revenue | $ | 262,250 | $ | 248,313 | ||||||||||
Foreign exchange contracts | ||||||||||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | $ | 1,411 | $ | (1,835 | ) | $ | 2,509 | $ | (833 | ) |
(in thousands) | Six Months Ended June 30, | |||||||||
| 2019 | 2018 | ||||||||
Financial statement line items in which effects of cash flow hedges are recorded | Cost of revenue | $ | 506,709 | $ | 482,870 | |||||
Foreign exchange contracts | ||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | $ | 3,920 | $ | (2,668 | ) |
(in thousands) | Hedging Assets | |||||||||
| June 30, 2019 | December 31, 2018 | ||||||||
| ||||||||||
Derivatives and non-derivatives designated as hedging instruments | Balance Sheet Classification | |||||||||
Foreign currency exchange contracts | Other current assets | $ | 5,185 | $ | 8,163 | |||||
Cross currency swaps | Other long-term assets | 2,930 | 1,789 | |||||||
Foreign currency exchange contracts | Other long-term assets | 291 | — | |||||||
Total derivative instruments presented as hedge instruments on the balance sheet | 8,406 | 9,952 | ||||||||
Gross amounts subject to master netting arrangements not offset on the balance sheet | 514 | 603 | ||||||||
Net amount | $ | 7,892 | $ | 9,349 |
| Hedging Assets | |||||||||
| March 31, 2019 | December 31, 2018 | ||||||||
| ||||||||||
Derivatives and non-derivatives designated as hedging instruments | Balance Sheet Classification | |||||||||
Foreign currency exchange contracts | Other current assets | $ | 7,127 | $ | 8,163 | |||||
Cross currency swaps | Other long-term assets | 3,670 | 1,789 | |||||||
Foreign currency exchange contracts | Other long-term assets | 199 | — | |||||||
Total derivative instruments presented as hedge instruments on the balance sheet | 10,996 | 9,952 | ||||||||
Gross amounts subject to master netting arrangements not offset on the balance sheet | 74 | 603 | ||||||||
Net amount | $ | 10,922 | $ | 9,349 |
| Hedging Liabilities | |||||||||
| March 31, 2019 | December 31, 2018 | ||||||||
| ||||||||||
Derivatives and non-derivatives designated as hedging instruments | Balance Sheet Classification | |||||||||
Foreign currency exchange contracts | Accrued liabilities | $ | 59 | $ | 603 | |||||
Foreign currency exchange contracts | Other long-term liabilities | 15 | — | |||||||
Total derivative instruments presented as cash flow hedges on the balance sheet | 74 | 603 | ||||||||
Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet(1) | Long-term debt | 99,831 | 101,777 | |||||||
Total hedging instruments presented on the balance sheet | 99,905 | 102,380 | ||||||||
Gross amounts subject to master netting arrangements not offset on the balance sheet | 74 | 603 | ||||||||
Net amount | $ | 99,831 | $ | 101,777 |
(in thousands) | Hedging Liabilities | |||||||||
| June 30, 2019 | December 31, 2018 | ||||||||
| ||||||||||
Derivatives and non-derivatives designated as hedging instruments | Balance Sheet Classification | |||||||||
Foreign currency exchange contracts | Accrued liabilities | $ | 538 | $ | 603 | |||||
Foreign currency exchange contracts | Other long-term liabilities | 319 | — | |||||||
Total derivative instruments presented as cash flow hedges on the balance sheet | 857 | 603 | ||||||||
Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet(1) | Long-term debt | 101,119 | 101,777 | |||||||
Total hedging instruments presented on the balance sheet | 101,976 | 102,380 | ||||||||
Gross amounts subject to master netting arrangements not offset on the balance sheet | 514 | 603 | ||||||||
Net amount | $ | 101,462 | $ | 101,777 |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
Net Revenue (dollars in thousands) | 2019 | 2018 | Dollar Change | Reported Revenue Growth(1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth(1) | 2019 | 2018 | Dollar Change | Reported Revenue Growth(1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth(1) | ||||||||||||||||||||||||||||||||||
CAG | $ | 508,918 | $ | 470,833 | $ | 38,085 | 8.1 | % | (2.5 | %) | 0.2 | % | 10.5 | % | $ | 547,349 | $ | 507,487 | $ | 39,862 | 7.9 | % | (1.8 | %) | 0.1 | % | 9.5 | % | ||||||||||||||||||||
United States | 337,874 | 308,286 | 29,588 | 9.6 | % | — | 0.2 | % | 9.4 | % | 367,031 | 334,865 | 32,166 | 9.6 | % | — | 0.1 | % | 9.5 | % | ||||||||||||||||||||||||||||
International | 171,044 | 162,547 | 8,497 | 5.2 | % | (7.5 | %) | 0.1 | % | 12.6 | % | 180,318 | 172,622 | 7,696 | 4.5 | % | (5.4 | %) | 0.1 | % | 9.7 | % | ||||||||||||||||||||||||||
Water | 30,310 | 29,143 | 1,167 | 4.0 | % | (4.0 | %) | — | 8.0 | % | 34,764 | 32,658 | 2,106 | 6.4 | % | (3.2 | %) | — | 9.6 | % | ||||||||||||||||||||||||||||
United States | 14,604 | 13,921 | 683 | 4.9 | % | — | — | 4.9 | % | 16,759 | 15,740 | 1,019 | 6.5 | % | — | — | 6.5 | % | ||||||||||||||||||||||||||||||
International | 15,706 | 15,222 | 484 | 3.2 | % | (7.9 | %) | — | 11.1 | % | 18,005 | 16,918 | 1,087 | 6.4 | % | (6.3 | %) | — | 12.8 | % | ||||||||||||||||||||||||||||
LPD | 31,506 | 32,240 | (734 | ) | (2.3 | %) | (6.3 | %) | — | 4.0 | % | 33,104 | 34,998 | (1,894 | ) | (5.4 | %) | (5.0 | %) | — | (0.5 | %) | ||||||||||||||||||||||||||
United States | 3,263 | 3,313 | (50 | ) | (1.5 | %) | — | — | (1.5 | %) | 3,309 | 3,681 | (372 | ) | (10.1 | %) | — | — | (10.1 | %) | ||||||||||||||||||||||||||||
International | 28,243 | 28,927 | (684 | ) | (2.4 | %) | (7.0 | %) | — | 4.6 | % | 29,795 | 31,317 | (1,522 | ) | (4.9 | %) | (5.6 | %) | — | 0.7 | % | ||||||||||||||||||||||||||
Other | 5,322 | 5,440 | (118 | ) | (2.2 | %) | — | — | (2.2 | %) | 4,886 | 5,609 | (723 | ) | (12.9 | %) | — | — | (12.9 | %) | ||||||||||||||||||||||||||||
Total Company | $ | 576,056 | $ | 537,656 | $ | 38,400 | 7.1 | % | (2.8 | %) | 0.1 | % | 9.8 | % | $ | 620,103 | $ | 580,752 | $ | 39,351 | 6.8 | % | (2.1 | %) | 0.1 | % | 8.7 | % | ||||||||||||||||||||
United States | 358,288 | 327,461 | 30,827 | 9.4 | % | — | 0.2 | % | 9.2 | % | 388,875 | 356,736 | 32,139 | 9.0 | % | — | 0.1 | % | 8.9 | % | ||||||||||||||||||||||||||||
International | 217,768 | 210,195 | 7,573 | 3.6 | % | (7.3 | %) | 0.1 | % | 10.8 | % | 231,228 | 224,016 | 7,212 | 3.2 | % | (5.4 | %) | 0.1 | % | 8.5 | % |
(1) | Reported revenue growth and organic revenue growth may not recalculate due to rounding. |
For the Three Months Ended March 31, | Change | For the Three Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||
Total Company - Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | ||||||||||||||||||||||||||||||
Revenues | $ | 576,056 | $ | 537,656 | $ | 38,400 | 7.1 | % | $ | 620,103 | $ | 580,752 | $ | 39,351 | 6.8 | % | ||||||||||||||||||||||||||
Cost of revenue | 244,459 | 234,557 | 9,902 | 4.2 | % | 262,250 | 248,313 | 13,937 | 5.6 | % | ||||||||||||||||||||||||||||||||
Gross profit | 331,597 | 57.6 | % | 303,099 | 56.4 | % | 28,498 | 9.4 | % | 357,853 | 57.7 | % | 332,439 | 57.2 | % | 25,414 | 7.6 | % | ||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 106,584 | 18.5 | % | 100,101 | 18.6 | % | 6,483 | 6.5 | % | 101,364 | 16.3 | % | 96,255 | 16.6 | % | 5,109 | 5.3 | % | ||||||||||||||||||||||||
General and administrative | 60,361 | 10.5 | % | 60,931 | 11.3 | % | (570 | ) | (0.9 | %) | 59,955 | 9.7 | % | 61,080 | 10.5 | % | (1,125 | ) | (1.8 | %) | ||||||||||||||||||||||
Research and development | 31,514 | 5.5 | % | 29,023 | 5.4 | % | 2,491 | 8.6 | % | 32,259 | 5.2 | % | 29,510 | 5.1 | % | 2,749 | 9.3 | % | ||||||||||||||||||||||||
Total operating expenses | 198,459 | 34.5 | % | 190,055 | 35.3 | % | 8,404 | 4.4 | % | 193,578 | 31.2 | % | 186,845 | 32.2 | % | 6,733 | 3.6 | % | ||||||||||||||||||||||||
Income from operations | $ | 133,138 | 23.1 | % | $ | 113,044 | 21.0 | % | $ | 20,094 | 17.8 | % | $ | 164,275 | 26.5 | % | $ | 145,594 | 25.1 | % | $ | 18,681 | 12.8 | % |
Companion Animal Group |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
Net Revenue (dollars in thousands) | 2019 | 2018 | Dollar Change | Reported Revenue Growth(1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth(1) | 2019 | 2018 | Dollar Change | Reported Revenue Growth(1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth(1) | ||||||||||||||||||||||||||||||||||
CAG Diagnostics recurring revenue: | $ | 443,791 | $ | 406,048 | $ | 37,743 | 9.3 | % | (2.6 | %) | — | 11.9 | % | $ | 477,431 | $ | 437,666 | $ | 39,765 | 9.1 | % | (1.9 | %) | — | 11.0 | % | ||||||||||||||||||||||
IDEXX VetLab consumables | 167,211 | 149,513 | 17,698 | 11.8 | % | (3.1 | %) | — | 15.0 | % | 175,159 | 158,620 | 16,539 | 10.4 | % | (2.5 | %) | — | 12.9 | % | ||||||||||||||||||||||||||||
Rapid assay products | 54,431 | 52,017 | 2,414 | 4.6 | % | (1.4 | %) | — | 6.1 | % | 68,605 | 63,362 | 5,243 | 8.3 | % | (1.0 | %) | — | 9.3 | % | ||||||||||||||||||||||||||||
Reference laboratory diagnostic and consulting services | 202,658 | 186,937 | 15,721 | 8.4 | % | (2.4 | %) | — | 10.8 | % | 213,892 | 197,268 | 16,624 | 8.4 | % | (1.7 | %) | — | 10.1 | % | ||||||||||||||||||||||||||||
CAG diagnostics services and accessories | 19,491 | 17,581 | 1,910 | 10.9 | % | (3.7 | %) | — | 14.6 | % | 19,775 | 18,416 | 1,359 | 7.4 | % | (2.1 | %) | — | 9.5 | % | ||||||||||||||||||||||||||||
CAG Diagnostics capital - instruments | 28,749 | 30,895 | (2,146 | ) | (6.9 | %) | (3.5 | %) | — | (3.4 | %) | 31,526 | 34,544 | (3,018 | ) | (8.7 | %) | (2.2 | %) | — | (6.5 | %) | ||||||||||||||||||||||||||
Veterinary software, services and diagnostic imaging systems | 36,378 | 33,890 | 2,488 | 7.3 | % | (0.6 | %) | 2.2 | % | 5.8 | % | 38,392 | 35,277 | 3,115 | 8.8 | % | (0.4 | %) | 1.8 | % | 7.4 | % | ||||||||||||||||||||||||||
Net CAG revenue | $ | 508,918 | $ | 470,833 | $ | 38,085 | 8.1 | % | (2.5 | %) | 0.2 | % | 10.5 | % | $ | 547,349 | $ | 507,487 | $ | 39,862 | 7.9 | % | (1.8 | %) | 0.1 | % | 9.5 | % |
(1) | Reported revenue growth and organic revenue growth may not recalculate due to rounding |
For the Three Months Ended March 31, | Change | For the Three Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | ||||||||||||||||||||||||||||||
Revenues | $ | 508,918 | $ | 470,833 | $ | 38,085 | 8.1 | % | $ | 547,349 | $ | 507,487 | $ | 39,862 | 7.9 | % | ||||||||||||||||||||||||||
Cost of revenues | 221,430 | 208,900 | 12,530 | 6.0 | % | 235,710 | 221,577 | 14,133 | 6.4 | % | ||||||||||||||||||||||||||||||||
Gross profit | 287,488 | 56.5 | % | 261,933 | 55.6 | % | 25,555 | 9.8 | % | 311,639 | 56.9 | % | 285,910 | 56.3 | % | 25,729 | 9.0 | % | ||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 96,819 | 19.0 | % | 89,106 | 18.9 | % | 7,713 | 8.7 | % | 91,187 | 16.7 | % | 84,668 | 16.7 | % | 6,519 | 7.7 | % | ||||||||||||||||||||||||
General and administrative | 52,311 | 10.3 | % | 51,135 | 10.9 | % | 1,176 | 2.3 | % | 52,050 | 9.5 | % | 49,993 | 9.9 | % | 2,057 | 4.1 | % | ||||||||||||||||||||||||
Research and development | 23,336 | 4.6 | % | 21,294 | 4.5 | % | 2,042 | 9.6 | % | 23,819 | 4.4 | % | 21,453 | 4.2 | % | 2,366 | 11.0 | % | ||||||||||||||||||||||||
Total operating expenses | 172,466 | 33.9 | % | 161,535 | 34.3 | % | 10,931 | 6.8 | % | 167,056 | 30.5 | % | 156,114 | 30.8 | % | 10,942 | 7.0 | % | ||||||||||||||||||||||||
Income from operations | $ | 115,022 | 22.6 | % | $ | 100,398 | 21.3 | % | $ | 14,624 | 14.6 | % | $ | 144,583 | 26.4 | % | $ | 129,796 | 25.6 | % | $ | 14,787 | 11.4 | % |
Water |
For the Three Months Ended March 31, | Change | For the Three Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | ||||||||||||||||||||||||||||||
Revenues | $ | 30,310 | $ | 29,143 | $ | 1,167 | 4.0 | % | $ | 34,764 | $ | 32,658 | $ | 2,106 | 6.4 | % | ||||||||||||||||||||||||||
Cost of revenue | 8,171 | 8,781 | (610 | ) | (6.9 | %) | 9,888 | 9,579 | 309 | 3.2 | % | |||||||||||||||||||||||||||||||
Gross profit | 22,139 | 73.0 | % | 20,362 | 69.9 | % | 1,777 | 8.7 | % | 24,876 | 71.6 | % | 23,079 | 70.7 | % | 1,797 | 7.8 | % | ||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 3,995 | 13.2 | % | 4,065 | 13.9 | % | (70 | ) | (1.7 | %) | 3,961 | 11.4 | % | 4,103 | 12.6 | % | (142 | ) | (3.5 | %) | ||||||||||||||||||||||
General and administrative | 3,314 | 10.9 | % | 3,188 | 10.9 | % | 126 | 4.0 | % | 3,332 | 9.6 | % | 3,210 | 9.8 | % | 122 | 3.8 | % | ||||||||||||||||||||||||
Research and development | 1,048 | 3.5 | % | 647 | 2.2 | % | 401 | 62.0 | % | 1,016 | 2.9 | % | 644 | 2.0 | % | 372 | 57.8 | % | ||||||||||||||||||||||||
Total operating expenses | 8,357 | 27.6 | % | 7,900 | 27.1 | % | 457 | 5.8 | % | 8,309 | 23.9 | % | 7,957 | 24.4 | % | 352 | 4.4 | % | ||||||||||||||||||||||||
Income from operations | $ | 13,782 | 45.5 | % | $ | 12,462 | 42.8 | % | $ | 1,320 | 10.6 | % | $ | 16,567 | 47.7 | % | $ | 15,122 | 46.3 | % | $ | 1,445 | 9.6 | % |
Livestock, Poultry and Dairy |
For the Three Months Ended March 31, | Change | For the Three Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | ||||||||||||||||||||||||||||||
Revenues | $ | 31,506 | $ | 32,240 | $ | (734 | ) | (2.3 | %) | $ | 33,104 | $ | 34,998 | $ | (1,894 | ) | (5.4 | %) | ||||||||||||||||||||||||
Cost of revenue | 12,467 | 14,593 | (2,126 | ) | (14.6 | %) | 13,406 | 14,311 | (905 | ) | (6.3 | %) | ||||||||||||||||||||||||||||||
Gross profit | 19,039 | 60.4 | % | 17,647 | 54.7 | % | 1,392 | 7.9 | % | 19,698 | 59.5 | % | 20,687 | 59.1 | % | (989 | ) | (4.8 | %) | |||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 5,281 | 16.8 | % | 6,614 | 20.5 | % | (1,333 | ) | (20.2 | %) | 5,901 | 17.8 | % | 6,505 | 18.6 | % | (604 | ) | (9.3 | %) | ||||||||||||||||||||||
General and administrative | 4,465 | 14.2 | % | 4,910 | 15.2 | % | (445 | ) | (9.1 | %) | 4,374 | 13.2 | % | 4,805 | 13.7 | % | (431 | ) | (9.0 | %) | ||||||||||||||||||||||
Research and development | 3,043 | 9.7 | % | 3,162 | 9.8 | % | (119 | ) | (3.8 | %) | 3,030 | 9.2 | % | 2,906 | 8.3 | % | 124 | 4.3 | % | |||||||||||||||||||||||
Total operating expenses | 12,789 | 40.6 | % | 14,686 | 45.6 | % | (1,897 | ) | (12.9 | %) | 13,305 | 40.2 | % | 14,216 | 40.6 | % | (911 | ) | (6.4 | %) | ||||||||||||||||||||||
Income from operations | $ | 6,250 | 19.8 | % | $ | 2,961 | 9.2 | % | $ | 3,289 | 111.1 | % | $ | 6,393 | 19.3 | % | $ | 6,471 | 18.5 | % | $ | (78 | ) | (1.2 | %) |
For the Three Months Ended March 31, | Change | For the Three Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | ||||||||||||||||||||||||||||||
Revenues | $ | 5,322 | $ | 5,440 | $ | (118 | ) | (2.2 | %) | $ | 4,886 | $ | 5,609 | $ | (723 | ) | (12.9 | %) | ||||||||||||||||||||||||
Cost of revenue | 2,595 | 3,366 | (771 | ) | (22.9 | %) | 2,860 | 2,996 | (136 | ) | (4.5 | %) | ||||||||||||||||||||||||||||||
Gross profit | 2,727 | 51.2 | % | 2,074 | 38.1 | % | 653 | 31.5 | % | 2,026 | 41.5 | % | 2,613 | 46.6 | % | (587 | ) | (22.5 | %) | |||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 347 | 6.5 | % | 520 | 9.6 | % | (173 | ) | (33.3 | %) | 335 | 6.9 | % | 439 | 7.8 | % | (104 | ) | (23.7 | %) | ||||||||||||||||||||||
General and administrative | 345 | 6.5 | % | 804 | 14.8 | % | (459 | ) | (57.1 | %) | 528 | 10.8 | % | 773 | 13.8 | % | (245 | ) | (31.7 | %) | ||||||||||||||||||||||
Research and development | 509 | 9.6 | % | 252 | 4.6 | % | 257 | 102.0 | % | 411 | 8.4 | % | 271 | 4.8 | % | 140 | 51.7 | % | ||||||||||||||||||||||||
Total operating expenses | 1,201 | 22.6 | % | 1,576 | 29.0 | % | (375 | ) | (23.8 | %) | 1,274 | 26.1 | % | 1,483 | 26.4 | % | (209 | ) | (14.1 | %) | ||||||||||||||||||||||
Income from operations | $ | 1,526 | 28.7 | % | $ | 498 | 9.2 | % | $ | 1,028 | 206.4 | % | $ | 752 | 15.4 | % | $ | 1,130 | 20.1 | % | $ | (378 | ) | (33.5 | %) |
For the Three Months Ended March 31, | Change | For the Three Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | 2018 | Amount | Percentage | 2019 | 2018 | Amount | Percentage | ||||||||||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | — | $ | — | $ | — | $ | — | — | ||||||||||||||||||||||||
Cost of revenue | (204 | ) | (1,083 | ) | 879 | (81.2 | %) | 386 | (150 | ) | 536 | (357.3 | %) | |||||||||||||||||||||||||
Gross profit | 204 | 1,083 | (879 | ) | (81.2 | %) | (386 | ) | 150 | (536 | ) | (357.3 | %) | |||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||
Sales and marketing | 142 | (204 | ) | 346 | (169.6 | %) | (20 | ) | 540 | (560 | ) | (103.7 | %) | |||||||||||||||||||||||||
General and administrative | (74 | ) | 894 | (968 | ) | (108.3 | %) | (329 | ) | 2,299 | (2,628 | ) | (114.3 | %) | ||||||||||||||||||||||||
Research and development | 3,578 | 3,668 | (90 | ) | (2.5 | %) | 3,983 | 4,236 | (253 | ) | (6.0 | %) | ||||||||||||||||||||||||||
Total operating expenses | 3,646 | 4,358 | (712 | ) | (16.3 | %) | 3,634 | 7,075 | (3,441 | ) | (48.6 | %) | ||||||||||||||||||||||||||
Loss from operations | $ | (3,442 | ) | $ | (3,275 | ) | $ | (167 | ) | 5.1 | % | $ | (4,020 | ) | $ | (6,925 | ) | $ | 2,905 | (41.9 | %) |
For the Six Months Ended June 30, | ||||||||||||||||||||||||
Net Revenue (dollars in thousands) | 2019 | 2018 | Dollar Change | Reported Revenue Growth(1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth(1) | |||||||||||||||||
| ||||||||||||||||||||||||
CAG | $ | 1,056,267 | $ | 978,320 | $ | 77,947 | 8.0 | % | (2.2 | %) | 0.1 | % | 10.0 | % | ||||||||||
United States | 704,905 | 643,151 | 61,754 | 9.6 | % | — | 0.2 | % | 9.4 | % | ||||||||||||||
International | 351,362 | 335,169 | 16,193 | 4.8 | % | (6.4 | %) | 0.1 | % | 11.1 | % | |||||||||||||
| ||||||||||||||||||||||||
Water | 65,074 | 61,801 | 3,273 | 5.3 | % | (3.6 | %) | — | 8.9 | % | ||||||||||||||
United States | 31,363 | 29,661 | 1,702 | 5.7 | % | — | — | 5.7 | % | |||||||||||||||
International | 33,711 | 32,140 | 1,571 | 4.9 | % | (7.1 | %) | — | 12.0 | % | ||||||||||||||
| ||||||||||||||||||||||||
LPD | 64,610 | 67,238 | (2,628 | ) | (3.9 | %) | (5.6 | %) | — | 1.7 | % | |||||||||||||
United States | 6,572 | 6,994 | (422 | ) | (6.0 | %) | — | — | (6.0 | %) | ||||||||||||||
International | 58,038 | 60,244 | (2,206 | ) | (3.7 | %) | (6.3 | %) | — | 2.6 | % | |||||||||||||
| ||||||||||||||||||||||||
Other | 10,208 | 11,049 | (841 | ) | (7.6 | %) | — | — | (7.6 | %) | ||||||||||||||
| ||||||||||||||||||||||||
Total Company | $ | 1,196,159 | $ | 1,118,408 | $ | 77,751 | 7.0 | % | (2.4 | %) | 0.1 | % | 9.3 | % | ||||||||||
United States | 747,163 | 684,197 | 62,966 | 9.2 | % | — | 0.2 | % | 9.0 | % | ||||||||||||||
International | 448,996 | 434,211 | 14,785 | 3.4 | % | (6.3 | %) | 0.1 | % | 9.6 | % |
(1) | Reported revenue growth and organic revenue growth may not recalculate due to rounding. |
| For the Six Months Ended June 30, | Change | |||||||||||||||||||
Total Company - Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 1,196,159 | $ | 1,118,408 | $ | 77,751 | 7.0 | % | |||||||||||||
Cost of revenue | 506,709 | 482,870 | 23,839 | 4.9 | % | ||||||||||||||||
Gross profit | 689,450 | 57.6 | % | 635,538 | 56.8 | % | 53,912 | 8.5 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 207,948 | 17.4 | % | 196,356 | 17.6 | % | 11,592 | 5.9 | % | ||||||||||||
General and administrative | 120,316 | 10.1 | % | 122,011 | 10.9 | % | (1,695 | ) | (1.4 | %) | |||||||||||
Research and development | 63,773 | 5.3 | % | 58,533 | 5.2 | % | 5,240 | 9.0 | % | ||||||||||||
Total operating expenses | 392,037 | 32.8 | % | 376,900 | 33.7 | % | 15,137 | 4.0 | % | ||||||||||||
Income from operations | $ | 297,413 | 24.9 | % | $ | 258,638 | 23.1 | % | $ | 38,775 | 15.0 | % |
Companion Animal Group |
For the Six Months Ended June 30, | ||||||||||||||||||||||||
Net Revenue (dollars in thousands) | 2019 | 2018 | Dollar Change | Reported Revenue Growth (1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth (1) | |||||||||||||||||
| ||||||||||||||||||||||||
CAG Diagnostics recurring revenue: | $ | 921,222 | $ | 843,714 | $ | 77,508 | 9.2 | % | (2.2 | %) | — | 11.4 | % | |||||||||||
IDEXX VetLab consumables | 342,370 | 308,133 | 34,237 | 11.1 | % | (2.8 | %) | — | 13.9 | % | ||||||||||||||
Rapid assay products | 123,036 | 115,379 | 7,657 | 6.6 | % | (1.2 | %) | — | 7.9 | % | ||||||||||||||
Reference laboratory diagnostic and consulting services | 416,550 | 384,205 | 32,345 | 8.4 | % | (2.0 | %) | — | 10.5 | % | ||||||||||||||
CAG diagnostics services and accessories | 39,266 | 35,997 | 3,269 | 9.1 | % | (2.9 | %) | — | 11.9 | % | ||||||||||||||
CAG Diagnostics capital - instruments | 60,275 | 65,439 | (5,164 | ) | (7.9 | %) | (2.8 | %) | — | (5.1 | %) | |||||||||||||
Veterinary software, services and diagnostic imaging systems | 74,770 | 69,167 | 5,603 | 8.1 | % | (0.5 | %) | 2.0 | % | 6.6 | % | |||||||||||||
Net CAG revenue | $ | 1,056,267 | $ | 978,320 | $ | 77,947 | 8.0 | % | (2.2 | %) | 0.1 | % | 10.0 | % |
(1) | Reported revenue growth and organic revenue growth may not recalculate due to rounding |
| For the Six Months Ended June 30, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | |||||||||||||||
Revenues | $ | 1,056,267 | $ | 978,320 | $ | 77,947 | 8.0 | % | |||||||||||||
Cost of revenue | 457,140 | 430,477 | 26,663 | 6.2 | % | ||||||||||||||||
Gross profit | 599,127 | 56.7 | % | 547,843 | 56.0 | % | 51,284 | 9.4 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 188,006 | 17.8 | % | 173,774 | 17.8 | % | 14,232 | 8.2 | % | ||||||||||||
General and administrative | 104,361 | 9.9 | % | 101,128 | 10.3 | % | 3,233 | 3.2 | % | ||||||||||||
Research and development | 47,155 | 4.5 | % | 42,747 | 4.4 | % | 4,408 | 10.3 | % | ||||||||||||
Total operating expenses | 339,522 | 32.1 | % | 317,649 | 32.5 | % | 21,873 | 6.9 | % | ||||||||||||
Income from operations | $ | 259,605 | 24.6 | % | $ | 230,194 | 23.5 | % | $ | 29,411 | 12.8 | % |
Water |
| For the Six Months Ended June 30, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | |||||||||||||||
Revenues | $ | 65,074 | $ | 61,801 | $ | 3,273 | 5.3 | % | |||||||||||||
Cost of revenue | 18,059 | 18,360 | (301 | ) | (1.6 | %) | |||||||||||||||
Gross profit | 47,015 | 72.2 | % | 43,441 | 70.3 | % | 3,574 | 8.2 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 7,956 | 12.2 | % | 8,168 | 13.2 | % | (212 | ) | (2.6 | %) | |||||||||||
General and administrative | 6,646 | 10.2 | % | 6,398 | 10.4 | % | 248 | 3.9 | % | ||||||||||||
Research and development | 2,064 | 3.2 | % | 1,291 | 2.1 | % | 773 | 59.9 | % | ||||||||||||
Total operating expenses | 16,666 | 25.6 | % | 15,857 | 25.7 | % | 809 | 5.1 | % | ||||||||||||
Income from operations | $ | 30,349 | 46.6 | % | $ | 27,584 | 44.6 | % | $ | 2,765 | 10.0 | % |
Livestock, Poultry and Dairy |
| For the Six Months Ended June 30, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 64,610 | $ | 67,238 | $ | (2,628 | ) | (3.9 | %) | ||||||||||||
Cost of revenue | 25,873 | 28,904 | (3,031 | ) | (10.5 | %) | |||||||||||||||
Gross profit | 38,737 | 60.0 | % | 38,334 | 57.0 | % | 403 | 1.1 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 11,182 | 17.3 | % | 13,119 | 19.5 | % | (1,937 | ) | (14.8 | %) | |||||||||||
General and administrative | 8,839 | 13.7 | % | 9,715 | 14.4 | % | (876 | ) | (9.0 | %) | |||||||||||
Research and development | 6,073 | 9.4 | % | 6,068 | 9.0 | % | 5 | 0.1 | % | ||||||||||||
Total operating expenses | 26,094 | 40.4 | % | 28,902 | 43.0 | % | (2,808 | ) | (9.7 | %) | |||||||||||
Income from operations | $ | 12,643 | 19.6 | % | $ | 9,432 | 14.0 | % | $ | 3,211 | 34.0 | % |
| For the Six Months Ended June 30, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 10,208 | $ | 11,049 | $ | (841 | ) | (7.6 | %) | ||||||||||||
Cost of revenue | 5,455 | 6,362 | (907 | ) | (14.3 | %) | |||||||||||||||
Gross profit | 4,753 | 46.6 | % | 4,687 | 42.4 | % | 66 | 1.4 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 682 | 6.7 | % | 959 | 8.7 | % | (277 | ) | (28.9 | %) | |||||||||||
General and administrative | 873 | 8.6 | % | 1,577 | 14.3 | % | (704 | ) | (44.6 | %) | |||||||||||
Research and development | 920 | 9.0 | % | 523 | 4.7 | % | 397 | 75.9 | % | ||||||||||||
Total operating expenses | 2,475 | 24.2 | % | 3,059 | 27.7 | % | (584 | ) | (19.1 | %) | |||||||||||
Income from operations | $ | 2,278 | 22.3 | % | $ | 1,628 | 14.7 | % | $ | 650 | 39.9 | % |
| For the Six Months Ended June 30, | Change | |||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | 2018 | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | — | ||||||||||||
Cost of revenue | 182 | (1,233 | ) | 1,415 | (114.8 | %) | |||||||||||||
Gross profit | (182 | ) | 1,233 | (1,415 | ) | (114.8 | %) | ||||||||||||
| |||||||||||||||||||
Operating Expenses: | |||||||||||||||||||
Sales and marketing | 122 | 336 | (214 | ) | (63.7 | %) | |||||||||||||
General and administrative | (403 | ) | 3,193 | (3,596 | ) | (112.6 | %) | ||||||||||||
Research and development | 7,561 | 7,904 | (343 | ) | (4.3 | %) | |||||||||||||
Total operating expenses | 7,280 | 11,433 | (4,153 | ) | (36.3 | %) | |||||||||||||
Loss from operations | $ | (7,462 | ) | $ | (10,200 | ) | $ | 2,738 | (26.8 | %) |
Cash, cash equivalents and marketable securities (dollars in thousands) | March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | ||||||||||||
U.S. | $ | 2,632 | $ | 2,044 | $ | 3,031 | $ | 2,044 | ||||||||
Foreign | 113,984 | 121,750 | 107,814 | 121,750 | ||||||||||||
Total | $ | 116,616 | $ | 123,794 | $ | 110,845 | $ | 123,794 | ||||||||
Total cash, cash equivalents and marketable securities held in U.S. dollars by our foreign subsidiaries | $ | 3,785 | $ | 11,119 | $ | 8,208 | $ | 11,119 | ||||||||
Percentage of total cash, cash equivalents and marketable securities held in U.S. dollars by our foreign subsidiaries | 3.2 | % | 9.0 | % | 7.4 | % | 9.0 | % |
For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | |||||||||||||||||||
Days sales outstanding(1) | 42.0 | 42.6 | 44.3 | 41.2 | 42.0 | 41.7 | 42.0 | 42.6 | 44.3 | 41.2 | ||||||||||||||||||
Inventory turns(2) | 2.0 | 2.3 | 2.1 | 2.2 | 2.0 | 2.1 | 2.0 | 2.3 | 2.1 | 2.2 |
(1) | Days sales outstanding represents the average of the accounts receivable balances at the beginning and end of each quarter divided by revenue for that quarter, the result of which is then multiplied by 91.25 days. |
(2) | Inventory turns represent inventory-related cost of product revenue for the 12 months preceding each quarter-end divided by the inventory balance at the end of the quarter. |
For the Three Months Ended March 31, | For the Six Months Ended June 30, | |||||||||||||||||||||||
(dollars in thousands) | 2019 | 2018 | Dollar Change | |||||||||||||||||||||
(in thousands) | 2019 | 2018 | Dollar Change | |||||||||||||||||||||
Net cash provided by operating activities | $ | 34,378 | $ | 34,898 | $ | (520 | ) | $ | 171,480 | $ | 153,728 | $ | 17,752 | |||||||||||
Net cash (used) provided by investing activities | (38,206 | ) | 260,312 | (298,518 | ) | (72,291 | ) | 232,661 | (304,952 | ) | ||||||||||||||
Net cash used by financing activities | (2,781 | ) | (324,991 | ) | 322,210 | (112,269 | ) | (395,699 | ) | 283,430 | ||||||||||||||
Net effect of changes in exchange rates on cash | (569 | ) | 1,335 | (1,904 | ) | 131 | (3,806 | ) | 3,937 | |||||||||||||||
Net change in cash and cash equivalents | $ | (7,178 | ) | $ | (28,446 | ) | $ | 21,268 | $ | (12,949 | ) | $ | (13,116 | ) | $ | 167 |
For the Three Months Ended March 31, | For the Six Months Ended June 30, | |||||||||||||||||||||||
(dollars in thousands) | 2019 | 2018 | Dollar Change | |||||||||||||||||||||
(in thousands) | 2019 | 2018 | Dollar Change | |||||||||||||||||||||
Accounts receivable | $ | (33,421 | ) | $ | (21,800 | ) | $ | (11,621 | ) | $ | (37,699 | ) | $ | (32,872 | ) | $ | (4,827 | ) | ||||||
Inventories | (14,521 | ) | (8,070 | ) | (6,451 | ) | (22,911 | ) | (16,825 | ) | (6,086 | ) | ||||||||||||
Accounts payable | 699 | (1,939 | ) | 2,638 | (4,030 | ) | 3 | (4,033 | ) | |||||||||||||||
Deferred revenue | (3,098 | ) | (1,327 | ) | (1,771 | ) | (6,849 | ) | (3,252 | ) | (3,597 | ) | ||||||||||||
Other assets and liabilities | (49,601 | ) | (52,302 | ) | 2,701 | (45,822 | ) | (55,781 | ) | 9,959 | ||||||||||||||
Total change in cash due to changes in operating assets and liabilities | $ | (99,942 | ) | $ | (85,438 | ) | $ | (14,504 | ) | $ | (117,311 | ) | $ | (108,727 | ) | $ | (8,584 | ) |
Twelve months ended | ||||||
(in thousands) | Twelve months ended | |||||
Trailing 12 Months Adjusted EBITDA: | March 31, 2019 | June 30, 2019 | ||||
Net income attributable to stockholders (as reported) | $ | 390,261 | $ | 407,276 | ||
Interest expense | 33,856 | 33,585 | ||||
Provision for income taxes | 87,905 | 89,697 | ||||
Depreciation and amortization | 83,729 | 84,458 | ||||
Share-based compensation expense | 25,531 | 26,037 | ||||
Extraordinary and other non-recurring non-cash charges | 2,629 | 2,629 | ||||
Adjusted EBITDA | $ | 623,911 | $ | 643,682 | ||
(in thousands) | ||||||
Debt to Adjusted EBITDA Ratio: | March 31, 2019 | June 30, 2019 | ||||
Line of credit | $ | 346,998 | $ | 251,528 | ||
Long-term debt | 699,334 | 700,552 | ||||
Total debt | 1,046,332 | 952,080 | ||||
Acquisition-related contingent consideration payable | 4,507 | 3,601 | ||||
Financing leases | 220 | 186 | ||||
Deferred financing costs | 497 | 567 | ||||
Gross debt | 1,051,556 | 956,434 | ||||
Gross debt to Adjusted EBITDA ratio | 1.69 | 1.49 | ||||
Less: Cash and cash equivalents | (116,616 | ) | (110,845 | ) | ||
Net debt | $ | 934,940 | $ | 845,589 | ||
Net debt to Adjusted EBITDA ratio | 1.50 | 1.31 |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
(dollars in thousands) | 2019 | 2018 | |||||||||||||||||||||
(in thousands, except per share amounts) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Revenue impact | $ | (15,119 | ) | $ | 17,816 | $ | (12,072 | ) | $ | 9,791 | $ | (27,191 | ) | $ | 27,607 | ||||||||
Operating profit impact, excluding hedge activity | $ | (6,964 | ) | $ | 7,142 | $ | (5,094 | ) | $ | 3,456 | $ | (12,058 | ) | $ | 10,598 | ||||||||
Hedge losses (gains) - prior year | 1,835 | (1,075 | ) | 833 | (753 | ) | 2,668 | (1,828 | ) | ||||||||||||||
Hedge gains (losses) - current year | 1,411 | (1,835 | ) | 2,509 | (833 | ) | 3,920 | (2,668 | ) | ||||||||||||||
Hedging activity impact | 3,246 | (2,910 | ) | 3,342 | (1,586 | ) | 6,588 | (4,496 | ) | ||||||||||||||
Operating profit impact, including hedge activity | $ | (3,718 | ) | $ | 4,232 | $ | (1,752 | ) | $ | 1,870 | $ | (5,470 | ) | $ | 6,102 | ||||||||
Diluted earnings per share impact, including hedge activity | $ | (0.03 | ) | $ | 0.04 | $ | (0.02 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.05 |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share (b) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) (c) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) (d) | |||||||||
| |||||||||||||
January 1 to January 31, 2019 | 130,229 | $ | 192.88 | 129,223 | 3,083,631 | ||||||||
February 1 to February 28, 2019 | 109,530 | $ | 207.62 | 74,660 | 3,008,971 | ||||||||
March 1 to March 31, 2019 | 63,533 | $ | 210.99 | 63,533 | 2,945,438 | ||||||||
Total | 303,292 | (2) | $ | 202.00 | 267,416 | 2,945,438 |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share (b) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) (c) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) (d) | |||||||||
| |||||||||||||
April 1 to April 30, 2019 | 49,870 | $ | 224.24 | 49,870 | 2,895,568 | ||||||||
May 1 to May 31, 2019 | 25,830 | $ | 248.39 | 25,830 | 2,869,738 | ||||||||
June 1 to June 30, 2019 | 10,957 | $ | 260.68 | 10,280 | 2,859,458 | ||||||||
Total | 86,657 | (2) | $ | 236.04 | 85,980 | 2,859,458 |
(1) | On August 13, 1999, our Board of Directors approved and announced the repurchase of our common stock in the open market or in negotiated transactions pursuant to the Company’s share repurchase program. The authorization has been increased by the Board of Directors on numerous occasions; most recently, on May 2, 2017, the maximum level of shares that may be repurchased under the program was increased from 65 million to 68 million shares. There is no specified expiration date for this share repurchase program. There were no other repurchase programs outstanding during the three months ended |
(2) | During the three months ended |
Exhibit No. | Description |
101.INS | XBRL Instance |
101.SCH | XBRL Taxonomy Extension Schema Document. |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
| IDEXX LABORATORIES, INC. |
| |
| |
| /s/ Brian P. McKeon |
Date: | Brian P. McKeon |
| Executive Vice President, Chief Financial Officer and Treasurer |
| (Principal Financial Officer) |