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leisure properties for sale overseas
News and Information Article
WESTBROOK, Maine, Oct. 27 /-FirstCall/ -- IDEXX Laboratories,
Inc. (Nasdaq: IDXX), today reported that revenue for the third quarter of
2006 increased 19% to $187.4 million from $158.1 million for the third
quarter of 2005. Earnings per diluted share ("EPS") for the quarter ended
September 30, 2006 increased 25% to $0.76 from $0.61 for the same period in
the prior year.
Non-GAAP adjusted diluted EPS for the third quarter grew 36% compared
to the same period of the prior year. Non-GAAP adjusted diluted EPS for the
third quarter of 2006 excludes the after-tax impact of share-based
compensation expense of $0.06 per diluted share, including the impact of
SFAS No. 123(R). For the quarter ended September 30, 2005, non-GAAP
adjusted diluted EPS excludes acquisition integration costs of $0.01 per
diluted share. Management believes adjusted diluted EPS is a useful
non-GAAP financial measure to evaluate the results of ongoing operations,
excluding significant specified items, period over period, and therefore
believes that investors may find this information useful in addition to the
GAAP results.
"We are pleased with the third quarter performance of all of our lines
of business," said Jonathan Ayers, Chairman and CEO. "In addition to this
strong operating performance, reported revenues and earnings benefited from
the timing of shipments of companion animal products to distributors. We
expect that this timing issue will have a corresponding negative impact on
fourth quarter results as distributor inventories are reduced.
Additionally, the third quarter benefited from a lower tax rate than we saw
in the first half of the year. Therefore, we have not increased our 2006
full year EPS guidance other than to raise the low end of the range to
$2.67 from $2.64. The high end of our EPS guidance remains at $2.70."
Companion Animal Group ("CAG") revenue for the third quarter of 2006
increased 19% to $153.1 million from $128.7 million for the third quarter
of 2005 due to higher sales in all CAG product and service categories, with
the largest growth in revenue dollars from laboratory and consulting
services and from instruments and consumables. Changes in distributor
inventory levels, which are not fully indicative of end-user demand, had a
3% favorable impact on revenue growth and had a significant impact on the
reported growth of our Rapid Assay business. Businesses acquired since July
2005, consisting primarily of veterinary reference laboratories, a digital
radiography business, and intellectual property and distribution rights of
a veterinary diagnostics business, contributed 3% to CAG revenue growth.
The favorable impact of foreign currency exchange rates contributed 1% to
CAG revenue growth.
Water segment revenue for the third quarter increased 10% to $16.6
million from $15.1 million for the third quarter of 2005 primarily due to
higher worldwide sales volume, partly offset by lower average unit sales
prices. The favorable impact of foreign currency exchange rates contributed
2% to Water revenue growth.
Food Diagnostics Group ("FDG") revenue for the third quarter increased
24% to $17.7 million from $14.3 million for the third quarter of 2005
primarily due to higher worldwide livestock diagnostics sales volume,
particularly of the IDEXX HerdChek(R) test for transmissible spongiform
encephalopathies. The
favorable impact of foreign currency exchange rates contributed 3% to
FDG revenue growth.
Year-to-date results
Year-to-date revenue increased 16% to $546.9 million from $471.1
million for the same period in 2005. Businesses acquired since the
beginning of 2005 added 2% to revenue growth. Changes in foreign currency
exchange rates did not have a significant impact on the reported revenue
growth rate. Revenue for the nine months ended September 30, 2006, adjusted
for the impacts of acquisitions and foreign currency exchange rates,
increased 15%.
Year-to-date earnings per diluted share increased 23% to $2.09 from
$1.70 for the same period in the prior year. Non-GAAP adjusted diluted EPS
for the nine months ended September 30, 2006 grew 29% compared to the same
period in the prior year. Non-GAAP adjusted diluted EPS for the nine months
ended September 30, 2006 excludes the after-tax impact of share-based
compensation expense of $0.20 per diluted share, including the impact of
SFAS No. 123(R), and income tax benefits from certain discrete events,
described below, of $0.04 per diluted share. For the nine months ended
September 30, 2005, non-GAAP adjusted diluted EPS excludes acquisition
integration costs of $0.04 per diluted share.
Companion Animal Group ("CAG") revenue for the nine months ended
September 30, 2006 increased 17% to $449.3 million from $384.9 million due
to higher sales in all CAG product and service categories, with the largest
growth in revenue dollars from laboratory and consulting services and from
instruments and consumable products. Businesses acquired since the
beginning of 2005, consisting primarily of veterinary reference
laboratories, a digital radiography business, and intellectual property and
distribution rights of a veterinary diagnostics business, contributed 2% to
CAG revenue growth. Changes in foreign currency exchange rates did not have
a significant impact on the CAG revenue growth rate.
Water segment revenue for the nine months ended September 30, 2006
increased 4% to $43.7 million from $42.2 million primarily due to higher
sales volume in the Americas and Europe. Changes in foreign currency
exchange rates did not have a significant impact on the Water revenue
growth rate.
Food Diagnostics Group ("FDG") revenue for the nine months ended
September 30, 2006 increased 22% to $53.9 million from $44.1 million for
the same period in 2005. This increase is primarily due to higher worldwide
sales volume of livestock diagnostics. The unfavorable impact of foreign
currency exchange rates reduced FDG revenue growth by 1%.
Outlook
The Company offers the following revised guidance for the full year of
2006:
* Revenue is expected to be $732 to $735 million, updated from $730 to
$734 million.
* Diluted earnings per share are expected to be $2.67 to $2.70, updated
from $2.64 to $2.70 (including $0.04 of certain income tax benefits as
described below).
The Company offers the following guidance for the full year of 2007:
* Revenue is expected to be $820 to $830 million.
* Diluted earnings per share are expected to be $3.00 to $3.12.
Additional operating results
Gross profit for the third quarter of 2006 increased $16.9 million, or
21%, to $98.2 million from $81.3 million for the third quarter of 2005. As
a percentage of revenue, gross profit increased to 52% from 51%. The gross
profit percentage was favorably impacted by the lower cost of slides sold
for use in IDEXX VetTest(R) chemistry analyzers and by higher average sales
prices in certain businesses.
Research and development ("R&D") expense for the quarter was $13.7
million compared to $10.5 million for the third quarter of 2005. As a
percentage of revenue, R&D expense was constant at 7% for the third
quarters of 2006 and 2005.
Selling, general and administrative ("SG&A") expense for the quarter
was $50.0 million, or 27% of revenue, compared to $40.7 million, or 26% of
revenue, in the third quarter of 2005. Increased SG&A expense was due
primarily to higher personnel-related costs due, in part, to expanded
worldwide sales, customer service and marketing headcount; share-based
compensation expense, including the impact of SFAS No. 123(R) which was
adopted on January 1, 2006; and higher spending on information technology
and other general support functions.
The discrete income tax benefits of $0.04 per diluted share for the
nine months ended September 30, 2006, mentioned above, were composed of a
tax benefit of $0.03 per diluted share due to a reduction of previously
recorded international deferred tax liabilities as a result of obtaining
certain multi-year tax incentives and a tax benefit of $0.01 per diluted
share due to the release of a valuation allowance on international deferred
tax assets as a result of a subsidiary demonstrating consistent sustained
profitability. These income tax benefits are noted because they have a
favorable impact on net income and EPS that is not indicative of future
performance since the items are not likely to recur within a reasonable
period.
Conference Call and Webcast Information
IDEXX Laboratories will be hosting a conference call today at 9:00 a.m.
(eastern) to discuss its third quarter results. To participate in the
conference call, dial 800-967-7185 or 719-457-2633 and reference
confirmation code 3237643. An audio replay will be available through
November 3 by dialing 719-457-0820 and referencing replay code 3237643.
The call will also be available via live or archived Webcast on the
IDEXX Laboratories web site at http://www.idexx.com.
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. IDEXX 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
3,500 people and offers products to customers in over 100 countries.
Note Regarding Forward-Looking Statements
This press release contains statements about the Companys business
prospects and estimates of the Companys 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
managements 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 managements
expectations. Factors that could cause or contribute to such differences
include the following: the Companys ability to develop, manufacture,
introduce and market new products and enhancements to existing products;
the effectiveness of the Companys sales and marketing activities; the
Companys ability to develop, license or obtain rights to new technologies;
the Companys ability to identify acquisition opportunities, complete
acquisitions and integrate acquired businesses; the impact of competition
and technological change on the markets for the Companys products; the
effect of government regulation on the Companys business, including
government decisions about whether and when to approve the Companys
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 Companys products
and services by veterinarians; the Companys 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 Companys 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 Companys inventories; the Companys 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 Companys Annual Report on Form 10-K for the year ended
December 31, 2005, and on the Quarterly Report on Form 10-Q for the quarter
ended June 30, 2006, in the section captioned "Managements Discussion and
Analysis of Financial Condition and Results of Operations."
IDEXX Laboratories, Inc. and Subsidiaries
Consolidated Statement of Operations
Amounts in thousands except per share data (Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2006 2005 2006 2005
Revenue: Revenue $ 187,380 $ 158,069 $ 546,908 $ 471,125
Expenses and
Income: Cost of revenue 89,181 76,740 263,648 233,141
Gross profit 98,199 81,329 283,260 237,984
Sales and
marketing 29,051 24,303 84,668 75,221
General and
administrative 20,990 16,360 60,463 47,304
Research and
development 13,696 10,543 39,666 30,312
Income from
operations 34,462 30,123 98,463 85,147
Interest income,
net 609 918 1,972 2,292
Income before
provision for
income taxes
and partners
interest 35,071 31,041 100,435 87,439
Provision for
income taxes 10,118 10,547 31,581 29,533
Partners share
of consolidated
loss - (110) (152) (321)
Net
Income: Net income $24,953 $20,604 $69,006 $58,227
Earnings per
share: Basic $0.80 $0.63 $2.19 $1.78
Earnings per
share: Diluted $0.76 $0.61 $2.09 $1.70
Shares outstanding:
Basic 31,210 32,482 31,491 32,686
Shares outstanding:
Diluted 32,731 34,044 33,022 34,183
IDEXX Laboratories, Inc. and Subsidiaries
Key Operating Information (Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2006 2005 2006 2005
Key Operating Gross profit 52.4% 51.5% 51.8% 50.5%
Ratios (as a Sales, marketing,
percentage of general and
revenue): administrative
expense 26.7% 25.7% 26.5% 26.0%
Research and
development
expense 7.3% 6.7% 7.3% 6.4%
Income from
operations 18.4% 19.1% 18.0% 18.1%
International International
Revenue: revenue (in
thousands) $63,955 $52,464 $190,355 $163,432
International
revenue as
percentage of
total revenue 34.1% 33.2% 34.8% 34.7%
IDEXX Laboratories, Inc. and Subsidiaries
Non-GAAP Financial Measures
Amounts in thousands except per share data (Unaudited)
Three Months Ended
Income from
Gross Profit Operations
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2006 2005 2006 2005
GAAP measurement $98,199 $81,329 $34,462 $30,123
Specified items:
Share-based compensation
costs 423 - 2,539 -
Acquisition integration
costs - 45 - 406
Non-GAAP comparative
measurements(1) $98,622 $81,374 $37,001 $30,529
Earnings per Share
Net Income Diluted
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2006 2005 2006 2005
GAAP measurement $24,953 $20,604 $0.76 $0.61
Specified items:
Share-based compensation
costs 2,111 - 0.06 -
Acquisition integration
costs - 268 - 0.01
Non-GAAP comparative
measurements(1) $27,064 $20,872 $0.83 $0.61
1) The sum of the individual items may not equal the non-GAAP measurement
due to rounding of the individual items in this presentation.
We use these supplemental non-GAAP financial measures to evaluate the
Companys comparative financial performance. The specified items that
are excluded in these non-GAAP measures are actual charges that impact
net income and cash flows, however, we believe that it is useful to
evaluate our core business performance period over period excluding
these specified items, in addition to relying upon GAAP financial
measures.
We adjusted 2006 GAAP financial results to exclude the after-tax impact
of the share-based compensation expense, except for the impact of
deferred stock units issued under our Director Compensation Plan and
our Executive Deferred Compensation Plan that do not have vesting
conditions, in order to evaluate the Companys performance relative to
2005 financial results. We do not consider the pro forma 2005 financial
results that are included in our Annual Report on Form 10-K and
quarterly reports on Form 10-Q to be reasonably comparable to 2006
financial results with respect to the impact of share-based
compensation expense due to several factors, including changes in 2006
in the types, terms and total fair value of share-based compensation
awards; changes in the timing of expense recognition for 2006 awards;
and differences between periods in income tax benefits.
We believe that the change from period to period due to the significant
acquisition integration costs recognized in 2005, which did not recur
in 2006, creates a favorable impact on financial measures that is not
indicative of future performance.
IDEXX Laboratories, Inc. and Subsidiaries
Non-GAAP Financial Measures
Amounts in thousands except per share data (Unaudited)
Nine Months Ended
Income from
Gross Profit Operations
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2006 2005 2006 2005
GAAP measurement $283,260 $237,984 $98,463 $85,147
Specified items:
Share-based compensation
costs 1,222 - 8,004 -
Acquisition integration
costs - 924 - 1,903
Discrete income tax benefits - - - -
Non-GAAP comparative
measurements(1) $284,482 $238,908 $ 106,467 $87,050
Earnings per Share
Net Income Diluted
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2006 2005 2006 2005
GAAP measurement $69,006 $58,227 $2.09 $1.70
Specified items:
Share-based compensation
costs 6,603 - 0.20 -
Acquisition integration
costs - 1,263 - 0.04
Discrete income tax
benefits (1,281) - (0.04) -
Non-GAAP comparative
measurements(1) $74,328 $59,490 $2.25 $1.74
(1) The sum of the individual items may not equal the non-GAAP measurement
due to rounding of the individual items in this presentation.
We use these supplemental non-GAAP financial measures to evaluate the
Companys comparative financial performance. The specified items that
are excluded in these non-GAAP measures are actual charges and tax
benefits that impact net income and cash flows, however, we believe
that it is useful to evaluate our core business performance period
over period excluding these specified items, in addition to relying
upon GAAP financial measures.
We adjusted 2006 GAAP financial results to exclude the after-tax
impact of the share-based compensation expense, except for the impact
of deferred stock units issued under our Director Compensation Plan
and our Executive Deferred Compensation Plan that do not have vesting
conditions, in order to evaluate the Companys performance relative to
2005 financial results. We do not consider the pro forma 2005
financial results that are included in our Annual Report on Form 10-K
and quarterly reports on Form 10-Q to be reasonably comparable to 2006
financial results with respect to the impact of share-based
compensation expense due to several factors, including changes in 2006
in the types, terms and total fair value of share-based compensation
awards; changes in the timing of expense recognition for 2006 awards;
and differences between periods in income tax benefits.
We believe that the change from period to period due to the
significant acquisition integration costs recognized in 2005, which
did not recur in 2006, creates a favorable impact on financial
measures that is not indicative of future performance. We believe that
the change from period to period due to the significant discrete
income tax benefits in 2006 create a favorable impact on financial
measures that is not indicative of future performance because the
items are not likely to recur within a reasonable period.
IDEXX Laboratories, Inc. and Subsidiaries
Segment Information
Amounts in thousands (Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2006 2005 2006 2005
Revenue: Companion Animal
Group $ 153,058 $ 128,676 $ 449,324 $ 384,888
Water 16,579 15,077 43,732 42,154
Food Diagnostics
Group 17,743 14,316 53,852 44,083
Total $ 187,380 $ 158,069 $ 546,908 $471,125
Gross
Profit: Companion Animal
Group $76,739 $62,926 $ 223,475 $185,014
Water 11,026 10,226 28,853 28,325
Food Diagnostics
Group 10,856 8,177 32,153 24,645
Other (422) - (1,221) -
Total $98,199 $81,329 $283,260 $237,984
Income from
Operations:
Companion Animal
Group $26,436 $21,303 $78,541 $61,602
Water 7,843 7,276 19,482 19,320
Food Diagnostics
Group 4,153 2,518 12,565 6,856
Other (3,970) (974) (12,125) (2,631)
Total $34,462 $30,123 $98,463 $85,147
Gross Profit
(as a percentage
of revenue):
Companion Animal
Group 50.1% 48.9% 49.7% 48.1%
Water 66.5% 67.8% 66.0% 67.2%
Food Diagnostics
Group 61.2% 57.1% 59.7% 55.9%
Income from
Operations
(as a percentage
of revenue):
Companion Animal
Group 17.3% 16.6% 17.5% 16.0%
Water 47.3% 48.3% 44.5% 45.8%
Food Diagnostics
Group 23.4% 17.6% 23.3% 15.6%
IDEXX Laboratories, Inc. and Subsidiaries
Revenues by Product and Service Categories
Amounts in thousands (Unaudited)
Three Months Ended
Percentage
Percentage Change
Change from Net of
Acquisi- Acquisi-
tions(1)& tions&
Sept. 30, Sept. 30, Dollar Percentage Currency(2)Currency
2006 2005 Change Change Changes Effect
Net CAG Revenue:
Instruments and
consumables $60,295 $52,438 $7,857 15.0% 1.5% 13.5%
Rapid assay
products 30,181 25,291 4,890 19.3% 2.4% 16.9%
Laboratory and
consulting
services 47,893 39,987 7,906 19.8% 5.1% 14.7%
Practice information
systems and digital
radiography 10,287 7,166 3,121 43.6% 23.0% 20.6%
Pharmaceutical
products 4,402 3,794 608 16.0% - 16.0%
Net CAG
revenue 153,058 128,676 24,382 18.9% 3.9% 15.0%
Net Water Revenue:
Water 16,579 15,077 1,502 10.0% 1.8% 8.2%
Net FDG Revenue:
Production animal
products 13,907 10,558 3,349 31.7% 3.3% 28.4%
Dairy-testing
products 3,836 3,758 78 2.1% 1.4% 0.7%
Net FDG
revenue 17,743 14,316 3,427 23.9% 2.8% 21.1%
Net Revenue: $187,380 $158,069 $29,311 18.5% 3.6% 14.9%
(1) Represents the percentage change in revenue attributed to incremental
revenues from businesses acquired since July 2005 during the three
months ended September 30, 2005 compared to the three months ended
September 30, 2006.
(2) Represents the percentage change in revenue attributed to the effect
of changes in currency rates from the three months ended September 30,
2005 to the three months ended September 30, 2006.
IDEXX Laboratories, Inc. and Subsidiaries
Revenues by Product and Service Categories
Amounts in thousands (Unaudited)
Nine Months Ended
Percentage
Percentage Change
Change from Net of
Acquisi- Acquisi-
tions(1)& tions&
Sept. 30, Sept. 30, Dollar Percentage Currency(2)Currency
2006 2005 Change Change Changes Effect
Net CAG Revenue:
Instruments and
consumables $177,326 $158,356 $18,970 12.0% -0.2% 12.2%
Rapid assay
products 88,812 77,440 11,372 14.7% 0.5% 14.2%
Laboratory and
consulting
services 139,287 116,898 22,389 19.2% 3.6% 15.6%
Practice information
systems and digital
radiography 30,764 21,826 8,938 41.0% 16.5% 24.5%
Pharmaceutical
products 13,135 10,368 2,767 26.7% - 26.7%
Net CAG
revenue 449,324 384,888 64,436 16.7% 2.0% 14.7%
Net Water Revenue:
Water 43,732 42,154 1,578 3.7% - 3.7%
Net FDG Revenue:
Production animal
products 42,310 32,376 9,934 30.7% -1.4% 32.1%
Dairy-testing
products 11,542 11,707 (165) -1.4% -1.1% -0.3%
Net FDG
revenue 53,852 44,083 9,769 22.2% -1.3% 23.5%
Net Revenue: $546,908 $471,125 $75,783 16.1% 1.5% 14.6%
(1) Represents the percentage change in revenue attributed to incremental
revenues from businesses acquired since January 2005 during the nine
months ended September 30, 2005 compared to the nine months ended
September 30, 2006.
(2) Represents the percentage change in revenue attributed to the effect
of changes in currency rates from the nine months ended September 30,
2005 to the nine months ended September 30, 2006.
IDEXX Laboratories, Inc. and Subsidiaries
Consolidated Balance Sheet
Amounts in thousands (Unaudited)
September 30, December 31,
2006 2005
Assets: Current Assets:
Cash and cash equivalents $50,950 $67,151
Short-term investments 43,641 65,580
Accounts receivable, net 79,301 71,688
Inventories 93,242 69,369
Other current assets 24,760 25,457
Total current assets 291,894 299,245
Property and equipment - cost 179,328 142,777
Less: accumulated depreciation 88,163 77,080
Property and equipment, net 91,165 65,697
Other long-term assets, net 141,913 125,734
Total assets $524,972 $490,676
Liabilities and
Stockholders
Equity: Current Liabilities:
Accounts payable $23,193 $19,842
Accrued expenses 84,434 78,208
Current portion of long-term debt 665 551
Deferred revenue 8,440 7,965
Total current liabilities 116,732 106,566
Total long-term liabilities 20,655 14,800
Partners interest in subsidiary - 300
Stockholders Equity:
Common stock 4,656 4,594
Additional paid-in capital 474,540 437,394
Deferred stock units 1,806 1,316
Retained earnings 465,942 396,936
Treasury stock, at cost (565,947) (472,096)
Accumulated other
comprehensive income 6,588 866
Total stockholders equity 387,585 369,010
Total liabilities and
stockholders equity $524,972 $490,676
IDEXX Laboratories, Inc. and Subsidiaries
Key Balance Sheet Information (Unaudited)
September 30, December 31,
2006 2005
Key Balance
Sheet
Information: Total cash, cash equivalents
and investments (in thousands) $94,591 $132,731
Days sales outstanding 40 38
Inventory turns(1) 1.8 2.4
(1) Reported inventory turns as of December 31, 2005 are favorably
impacted by the timing of contractual inventory receipts subsequent to
December 31, 2005.
IDEXX Laboratories, Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Amounts in thousands (Unaudited)
Nine Months Ended
September 30, September 30,
2006 2005
Operating: Cash Flows from Operating Activities:
Net income $69,006 $58,227
Non-cash charges 17,484 21,981
Changes in current assets and
liabilities, net of acquisitions
and disposals (15,078) (3,703)
Net cash provided by operating
activities $71,412 $76,505
Investing: Cash Flows from Investing Activities:
Decrease in investments, net 22,014 36,075
Purchase of property and equipment (21,476) (16,512)
Purchases of land and buildings (11,521) -
Net proceeds from sale of land and
buildings - 803
Acquisition of businesses and
intangible assets (9,367) (6,406)
Acquisition of equipment leased to
customers (1,370) (1,784)
Net cash provided (used) by
investing activities $ (21,720) $12,176
Financing: Cash Flows from Financing Activities:
Repayments of notes payable (712) (2,056)
Purchase of treasury stock (93,832) (88,800)
Proceeds from the exercise of
stock options 18,843 14,941
Tax benefit from exercise of
stock options 8,747 -
Net cash used by financing
activities $ (66,954) $ (75,915)
Net effect of exchange rate changes 1,061 (2,154)
Net increase (decrease) in cash and
cash equivalents (16,201) 10,612
Cash and cash equivalents, beginning
of period 67,151 47,156
Cash and cash equivalents,
end of period $50,950 $57,768
IDEXX Laboratories, Inc. and Subsidiaries
Free Cash Flow
Amounts in thousands (Unaudited)
Nine Months Ended
September 30, September 30,
2006 2005
Free Cash
Flow: Net cash provided by operating
activities $71,412 $76,505
Financing cash flows attributable
to tax benefits from exercise of
stock options 8,747 -
Purchase of fixed assets (32,997) (16,512)
Acquisition of equipment leased to
customers (1,370) (1,784)
Free cash flow $45,792 $58,209
Free cash flow indicates the cash generated from operations and tax
benefits attributable to stock option exercises, reduced by investments in
fixed assets. We feel free cash flow is a useful measure because it
indicates the cash the operations of the business are generating after
appropriate reinvestment for recurring investments in fixed assets that
are required to operate the business. We believe this is a common
financial measure useful to further evaluate the results of operations.
IDEXX Laboratories, Inc. and Subsidiaries
Common Stock Repurchases (Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2006 2005 2006 2005
Total number of shares
purchased 115,500 595,500 1,194,900 1,493,200
Average price paid per share $74.50 $64.50 $78.53 $59.47
Contact: Merilee Raines, Chief Financial Officer, 1-207-556-8155
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