false IDEXX LABORATORIES INC /DE 0000874716 0000874716 2025-02-03 2025-02-03 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K  

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): February 3, 2025

 

 

IDEXX LABORATORIES, INC.

(Exact name of registrant as specified in its charter)

  

Delaware   000-19271   01-0393723
(State or other jurisdiction   (Commission File Number)   (IRS Employer Identification No.)
of incorporation)        

 

One IDEXX Drive, Westbrook, Maine       04092

(Address of principal executive offices)

       (ZIP Code)

 

207.556.0300

(Registrant's telephone number, including area code)

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

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

  

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On February 3, 2025, IDEXX Laboratories, Inc. (the “Company”) announced its financial results for the quarter and year ended December 31, 2024. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

In accordance with general instructions to Form 8-K, the information in this Form 8-K and the Exhibit 99.1 attached hereto is being furnished under Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01Financial Statements and Exhibits.

 

(d)      Exhibits

 

    The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed.

 

Exhibit No. Description of Exhibit

 

99.1Press Release entitled “IDEXX Laboratories Announces Fourth Quarter and Full Year 2024 Results,” issued by the Company on February 3, 2025.

 

104Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

1 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    IDEXX LABORATORIES, INC.
   
Date: February 3, 2025 By: /s/ Brian P. McKeon 
    Brian P. McKeon
    Executive Vice President,
Chief Financial Officer and Treasurer

 

2 

 

 

Exhibit 99.1

 

 

 

FOR IMMEDIATE RELEASE Contact: John Ravis, Investor Relations, 1-207-556-8155

 

IDEXX Laboratories Announces

Fourth Quarter and Full Year 2024 Results

 

▪Achieves fourth quarter revenue growth of 6% as reported and on an organic basis, driven by CAG Diagnostics recurring revenue growth of 6% reported and 7% organic

 

▪Solid growth supported by continued benefits from IDEXX execution drivers, including 9% year-over-year expansion of IDEXX's global premium instrument installed base and net customer gains across testing modalities

 

▪Delivers fourth quarter EPS of $2.62, an increase of 13% as reported and 10% on a comparable basis driven by strong operating results

 

▪Provides initial outlook for 2025 revenue of $4,055 million - $4,170 million, reflecting growth of 4% - 7% reported and 6% - 9% organic, supported by CAG Diagnostics recurring revenue growth of 3% - 6% as reported and 5% - 8% on an organic basis

 

▪Estimates 2025 EPS of $11.74 - $12.24, an increase of 10% - 15% as reported and 8% to 12% on a comparable basis

 

▪Outlook assumes ~$1.5 billion of share repurchases in 2025, subject to market conditions, equivalent to ~4% of current equity market capitalization

 

WESTBROOK, Maine, February 3, 2025 — IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced fourth quarter and full year results.

 

“IDEXX had a solid finish to 2024, supported by continued high levels of execution by IDEXX teams globally,” said Jay Mazelsky, President and Chief Executive Officer. "The Company is on the front end of a new wave of major innovation. In Q4, we began shipping the IDEXX inVue Dx™ Cellular Analyzer, our transformational slide-free cellular analyzer, and we plan to make IDEXX Cancer Dx™ screening for canine lymphoma available in late March 2025 in the U.S. and Canada. These types of innovations are highly sought-after by our customers and will dramatically enhance veterinarians' approaches to care management and address workflow bottlenecks in their practices.”

 

Fourth Quarter and Full Year Results

 

The Company reports revenues of $954 million for the fourth quarter of 2024, an increase of 6% compared to the prior year period on a reported and organic basis, driven by Companion Animal Group ("CAG") growth of 6% as reported and organically. CAG Diagnostics recurring revenue gains of 6% reported and 7% organic in the quarter were supported by continued benefits from IDEXX execution drivers, including high-quality placements of CAG Diagnostics capital instruments across regions, high customer retention, new business gains, and net price realization.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 2 of 16

 

Earnings per diluted share (“EPS”) were $2.62 for the fourth quarter, an increase of 13% as reported and 10% on a comparable basis. Results reflect operating margin expansion of 20 basis points as reported and 50 basis points on a comparable basis. Fourth quarter EPS included $0.03 per share negative impact from currency changes and $0.13 per share in tax benefits from share-based compensation. Fourth quarter EPS also benefited by $0.06 per share from a non-recurring tax reserve release as a result of the lapsing of an applicable statute of limitations, which lowered the full year effective tax rate by approximately 50 basis points.

 

Revenue for the full year of $3,898 million increased 6% as reported and organically, driven by 7% as reported and organic growth in CAG Diagnostics recurring revenue.

 

For the full year 2024, EPS of $10.67 increased 6% on a reported basis and 12% on a comparable basis, including a ~2% EPS negative growth benefit related to lapping a $16 million customer contract resolution in the first quarter of 2023. EPS results reflect operating margin contraction of 100 basis points as reported and expansion of 60 basis points on a comparable basis, including a ~40 basis point negative impact from lapping the customer contract resolution. EPS results include a $0.56 negative impact from a discrete expense accrual related to an ongoing litigation matter, a $0.05 negative impact from currency changes, $0.24 in tax benefits from share-based compensation, and $0.06 tax benefit from the already noted non-recurring tax reserve release.

 

The Company's initial 2025 revenue guidance range reflects full year growth of 4% - 7% as reported and 6% - 9% on an organic basis, supported by 3% - 6% reported and 5% - 8% organic CAG Diagnostics recurring revenue growth. The guidance range for global CAG Diagnostics recurring revenue growth reflects goals for sustained benefits from execution drivers, supporting continued solid volume gains, and an estimated 4% - 4.5% full year benefit from net price improvement. 2025 EPS guidance of $11.74 - $12.24 reflects expectations for solid organic revenue gains and a targeted 200 - 250 basis points of reported operating margin improvement, including a ~160 basis point benefit from lapping the 2024 discrete litigation expense accrual.

 

Fourth Quarter Performance Highlights

 

Companion Animal Group

 

The Companion Animal Group generated 6% organic growth for the fourth quarter. CAG Diagnostics recurring revenue organic growth of 7% reflects double-digit IDEXX VetLab® consumable gains and solid reference laboratory and consulting services growth.

 

Additional U.S. companion animal practice key metrics are available in the Q4 2024 Earnings Snapshot accessible on the IDEXX website, www.idexx.com/investors.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 3 of 16

 

Strong global growth was achieved across IDEXX's testing modalities.

 

▪IDEXX VetLab® consumables generated 12% revenue growth as reported and organically, supported by global premium instrument installed base growth and net price gains.

 

▪Reference laboratory diagnostic and consulting services generated 4% revenue growth as reported and organically, reflecting solid volume gains across regions further supported by net price gains.

 

▪Rapid assay products generated flat revenue growth as reported and organically, with net price increases offsetting volume declines. Rapid Assay volumes were negatively impacted by the launch of the Catalyst® Pancreatic Lipase Test, which shifted some testing volume across modalities.

 

Veterinary software, services and diagnostic imaging systems revenue growth increased 13% as reported and 7% organically compared to strong prior year performance levels.

 

Water

 

Water achieved revenue growth of 8% on a reported basis and 9% on an organic basis, reflecting benefits from net price improvement and solid gains in the U.S. and Europe.

 

Livestock, Poultry and Dairy (“LPD”)

 

LPD revenue grew 5% on a reported basis and 7% on an organic basis, supported by solid gains across U.S., Europe and Latin America regions.

 

Gross Profit and Operating Profit

 

Gross profits increased 8% as reported and 9% on a comparable basis. Gross margins of 59.8% expanded 140 basis points compared to the prior year on a reported basis and expanded 130 basis points on a comparable basis. Gross margin results reflect benefits from net price improvement which offset inflationary cost impacts, favorable business mix benefits from strong consumable growth, and higher Water gross margins.

 

Operating margin was 27.4% in the quarter, 20 basis points higher than the prior year period results on a reported basis and 50 basis points higher on a comparable basis. Operating expenses grew 10% as reported and 9% on a comparable basis. Operating expense growth reflects investments in commercial resources and R&D initiatives.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 4 of 16

 

2025 Growth and Financial Performance Outlook

 

The following table provides the Company's initial estimates for annual key financial metrics in 2025:

 

Amounts in millions except per share data and percentages

 

Growth and Financial Performance Outlook   2025  
Revenue   $4,055 - $4,170  
Reported growth   4% - 7%  
Organic growth   6% - 9%  
CAG Diagnostics Recurring Revenue Growth      
Reported growth   3% - 6%  
Organic growth   5% - 8%  
Operating Margin   31.0% - 31.5%  
Reported operating margin expansion   200 - 250 bps  
Comparable operating margin expansion   30 - 80 bps  
EPS   $11.74 - $12.24  
Reported growth   10% - 15%  
Comparable growth   8% - 12%  
Other Key Metrics      
Net interest expense   ~ $42  
Share-based compensation tax benefit   ~ $8  
Share-based compensation tax rate benefit   ~ 1%  
Effective tax rate   ~ 21.5%  
Share-based compensation EPS impact   ~ $0.10  
Reduction in average shares outstanding   2% - 3%  
Operating Cash Flow   100% - 110% of net income  
Free Cash Flow   85% - 90% of net income  
Capital Expenditures   ~ $160  

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 5 of 16

 

The following table outlines estimates of foreign currency exchange rate impacts, net of foreign currency hedging transactions, and foreign currency exchange rate assumptions reflected in the above financial performance outlook for 2025.

 

Estimated Foreign Currency Exchange Rate Impacts  2025
Revenue growth rate impact  (~ 2%)
CAG Diagnostics recurring revenue growth rate impact  (~ 2%)
Operating margin growth impact  ~ 10 bps
EPS impact  (~ $0.21)
EPS growth impact  (~ 2%)

 

Go-forward Foreign Currency Exchange Rate Assumptions    
In U.S. dollars     
euro  $1.02 
British pound  $1.23 
Canadian dollar  $0.68 
Australian dollar  $0.61 
Relative to the U.S. dollar     
Japanese yen  ¥160 
Chinese renminbi  ¥7.43 
Brazilian real  R$6.21 

 

Conference Call and Webcast Information

 

IDEXX Laboratories, Inc. will host a conference call today at 8:30 a.m. (Eastern) to discuss its 2024 fourth quarter and full year financial results and management’s outlook for 2025. To participate in the conference call, dial 1-800-289-0462 or 1-323-794-2442 and reference passcode 803218. Individuals can access a live webcast of the conference call on the IDEXX website, www.idexx.com/investors. An archived edition of the webcast will be available after 1:00 p.m. (Eastern) on that day via the same link and will remain available for one year.

 

About IDEXX Laboratories, Inc.

 

IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help ensure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500® Index. Headquartered in Maine, IDEXX employs approximately 11,000 people and offers solutions and products to customers in more than 175 countries and territories. For more information about IDEXX, visit www.idexx.com.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 6 of 16

 

Note Regarding Forward-Looking Statements

 

This earnings release and the statements to be made in the accompanying earnings conference call contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including forward-looking statements about the Company’s business prospects and estimates of the Company’s financial results for future periods. Forward-looking statements are included under "Fourth Quarter and Full Year Results" and "2025 Growth and Financial Performance Outlook" and elsewhere in this earnings release and can be identified by the use of words such as "expects", "may", "anticipates", "intends", "would", "will", "plans", "believes", "estimates", "projected", "should", and similar words and expressions. Our forward-looking statements include statements relating to our expectations regarding financial and business performance; revenue growth and EPS outlooks; operating and free cash flow forecast; projected impact of foreign currency exchange rates and interest rates; projected operating margins and expenses and capital expenditures; projected tax, tax rate and EPS benefits from share-based compensation arrangements; projected effective tax rates, reduction of average shares outstanding and net interest expense; share repurchases; product and service launches and expansions; IDEXX inVue Dx instrument placements and revenue; software enhancements; U.S. clinical visit levels; net price improvement; volume gains; anticipated benefits from new customer agreements; and impact of tariffs. These statements are intended to provide management's expectation of future events as of the date of this earnings release; are based on management's estimates, projections, beliefs and assumptions as of the date of this earnings release; and are not guarantees of future performance. These forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, among other things, the matters described under the headings "Business," "Risk Factors," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in the corresponding sections of the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024, as well as those described from time to time in the Company’s other filings with the U.S. Securities and Exchange Commission available at www.sec.gov. The Company specifically disclaims any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

 

Statement Regarding Non-GAAP Financial Measures

 

The following defines terms and conventions and provides reconciliations regarding certain measures used in this earnings release and/or the accompanying earnings conference call that are not required by, or presented in accordance with, generally accepted accounting principles in the United States of America ("GAAP"), otherwise referred to as non-GAAP financial measures. To supplement the Company’s consolidated results presented in accordance with GAAP, the Company has disclosed non-GAAP financial measures that exclude or adjust certain items. Management believes these non-GAAP financial measures provide useful supplemental information for its and investors’ evaluation of the Company’s business performance and liquidity and are useful for period-over-period comparisons of the performance of the Company’s business and its liquidity and to the performance and liquidity of our peers. While management believes that these non-GAAP financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.

 

Constant currency - Constant currency references are non-GAAP financial measures which exclude the impact of changes in foreign currency exchange rates and are consistent with how management evaluates our performance and comparisons with prior and future periods. We estimated the net impacts of currency on our revenue, gross profit, operating profit, and EPS results by restating results to the average exchange rates or exchange rate assumptions for the comparative period, which includes adjusting for the estimated impacts of foreign currency hedging transactions and certain impacts on our effective tax rates. These estimated currency changes impacted fourth quarter 2024 results as follows: decreased gross profit growth by 0.1%, increased gross margin growth by 10 basis points, increased operating expense growth by 1.1%, decreased operating profit margin growth by 30 basis points, and decreased EPS growth by 1.2%. Estimated currency changes impacted full year 2024 results as follows: decreased gross profit growth by 0.2%, increased gross margin growth by 0 basis points, negligible operating expense growth by 0.0%, negligible operating profit margin growth by 0 basis points, and decreased EPS growth by 0.6%. Constant currency revenue growth represents the percentage change in revenue during the applicable period, as compared to the prior year period, excluding the impact of changes in foreign currency exchange rates. See the supplementary analysis of results below for revenue percentage change from currency for the three months and year ended December 31, 2024 and refer to the 2025 Growth and Financial Performance Outlook section of this press release for estimated foreign currency exchange rate impacts on 2025 projections and estimates.

 

Growth and organic revenue growth - All references to growth and organic growth refer to growth compared to the equivalent prior year period unless specifically noted. Organic revenue growth is a non-GAAP financial measure that represents the percentage change in revenue, as compared to the same period for the prior year, net of the impact of changes in foreign currency exchange rates, certain business acquisitions, and divestitures. Management believes that reporting organic revenue growth provides useful information to investors by facilitating easier comparisons of our revenue performance with prior and future periods and to the performance of our peers. Organic revenue growth should be considered in addition to, and not as a replacement of or a superior measure to, revenue growth reported in accordance with GAAP. See the supplementary analysis of results below for a reconciliation of reported revenue growth to organic revenue growth for the three and twelve months ended December 31, 2024. Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. The percentage change in revenue resulting from acquisitions represents revenues during the current year period, limited to the initial 12 months from the date of the acquisition, that are directly attributable to business acquisitions. Revenue from acquisitions is expected to increase projected full year 2025 revenue growth by an immaterial amount.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 7 of 16

 

Comparable growth metrics - Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) are non-GAAP financial measures and exclude the impact of changes in foreign currency exchange rates and non-recurring or unusual items (if any). Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. Management believes that reporting comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) provides useful information to investors because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding key metrics used by management. Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) should be considered in addition to, and not as replacements of or superior measures to, gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain reported in accordance with GAAP.

 

The reconciliation of these non-GAAP financial measures is as follows:

 

   Three Months Ended   Year-over-Year   Twelve Months Ended   Year-over-Year 
   December 31,   December 31,       December 31,   December 31,     
Dollar amounts in thousands  2024   2023   Change   2024   2023   Change 
Gross Profit (as reported)  $570,660   $526,167    8%  $2,378,927   $2,189,970    9%
Gross margin   59.8%   58.4%   140bps   61.0%   59.8%   120bps
Less: comparability adjustments                              
Change from currency   (525)   —         (4,726)   —      
Comparable gross profit growth  $571,185   $526,167    9%  $2,383,654   $2,189,970    9%
Comparable gross margin and gross margin gain (or growth)   59.7%   58.4%   130bps   61.0%   59.8%   120bps
                               
Operating expenses (as reported)  $308,974   $280,865    10%  $1,250,590   $1,092,842    14%
Less: comparability adjustments                              
Change from currency   3,125    —         534    —      
Ongoing litigation matter   —    —         61,500    —      
Comparable operating expense growth   305,849    280,865    9%   1,188,556    1,092,842    9%
                               
Income from operations (as reported)  $261,686   $245,302    7%  $1,128,337   $1,097,128    3%
Operating margin   27.4%   27.2%   20bps   29.0%   30.0%   -100bps
Less: comparability adjustments                              
Change from currency   (3,650)   —         (5,261)   —      
Ongoing litigation matter   —    —         (61,500)   —      
Comparable operating profit growth  $265,336   $245,302    8%  $1,195,098   $1,097,129    9%
Comparable operating margin and operating margin gain (or growth)   27.7%   27.2%   50 bps    30.6%   30.0%   60bps

 

Amounts presented may not recalculate due to rounding.

 

Projected 2025 comparable operating margin expansion outlined in the 2025 Growth and Financial Performance Outlook section of this earnings release reflects: (i) full year 2024 reported operating margin adjusted for 160 basis point unfavorable impact of discrete expense accrual related to an ongoing litigation matter in the second quarter of 2024; and (ii) projected full year 2025 reported operating margin adjusted for estimated positive year-over-year foreign currency exchange rate change impact of approximately 10 basis points.

 

These impacts described above reconcile reported gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain (including projected 2025 operating margin expansion) to comparable gross profit growth, comparable gross margin gain, comparable operating expense growth, comparable operating profit growth and comparable operating margin gain for the Company.

 

Comparable EPS growth - Comparable EPS growth is a non-GAAP financial measure that represents the percentage change in earnings per share (diluted) ("EPS") for a measurement period, as compared to the prior base period, net of the impact of changes in foreign currency exchange rates from the prior base period and excluding the tax benefits of share-based compensation activity under ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, and non-recurring or unusual items (if any). Management believes comparable EPS growth is a more useful way to measure the Company’s business performance than EPS growth because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding a key metric used by management. Comparable EPS growth should be considered in addition to, and not as a replacement of or a superior measure to, EPS growth reported in accordance with GAAP. Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 8 of 16

 

The reconciliation of this non-GAAP financial measure is as follows:

 

   Three Months Ended   Year-over-Year   Twelve Months Ended   Year-over-Year 
   December 31,   December 31,       December 31,   December 31,     
   2024   2023   Growth   2024   2023   Growth 
Earnings per share (diluted)  $2.62   $2.32    13%  $10.67   $10.06    6%
Less: comparability adjustments                              
Share-based compensation activity   0.13    0.02         0.24    0.16      
Ongoing litigation matter   —    —         (0.56)   —      
Change from currency   (0.03)   —         (0.05)   —      
Comparable EPS growth   2.53    2.29    10%   11.04    9.90    12%

 

Amounts presented may not recalculate due to rounding.

 

Projected 2025 comparable EPS growth outlined in the 2025 Growth and Financial Performance Outlook section of this earnings release reflects the following adjustments: (i) full year 2024 reported EPS adjusted for positive benefit of share-based compensation activity of $0.24 and $0.56 negative impact from a discrete expense accrual related to an ongoing litigation matter in the second quarter of 2024; and (ii) projected full year 2025 reported EPS adjusted for positive benefit of estimated share-based compensation activity of $0.10 and estimated negative year-over-year foreign currency exchange rate change impact of $0.21.

 

These impacts and those described in the constant currency note above reconcile reported EPS growth (including projected 2025 reported EPS growth) to comparable EPS growth for the Company.

 

Free cash flow - Free cash flow is a non-GAAP financial measure and means, with respect to a measurement period, the cash generated from operations during that period, reduced by the Company’s investments in property and equipment. Management believes 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 property and equipment that are required to operate the business. Free cash flow should be considered in addition to, and not as a replacement of or a superior measure to, net cash provided by operating activities. See the supplementary analysis of results below for our calculation of free cash flow for the years ended December 31, 2024 and 2023. To estimate projected 2025 free cash flow, we have deducted projected purchases of property and equipment (also referred to as capital expenditures) of ~ $160. Free cash flow conversion, or the net income to free cash flow ratio, is a non-GAAP financial measure that is defined as free cash flow, with respect to a measurement period, divided by net income for the same period. To calculate the free cash flow conversion for the twelve months ended December 31, 2024, we have deducted purchases of property and equipment of approximately $121 million from net cash provided from operating activities of approximately $929 million, divided by net income of approximately $888 million.

 

Debt to Adjusted EBITDA (Leverage Ratios) - Adjusted EBITDA, gross debt, and net debt are non-GAAP financial measures. Adjusted EBITDA is a non-GAAP financial measure of earnings before interest, taxes, depreciation, amortization, non-recurring transaction expenses incurred in connection with acquisitions, share-based compensation expense, and certain other non-cash losses and charges. Management believes that reporting Adjusted EBITDA, gross debt and net debt in the Debt to Adjusted EBITDA ratios provides supplemental analysis to help investors further evaluate the Company's business performance and available borrowing capacity under the Company's credit facility. Adjusted EBITDA, gross debt, and net debt should be considered in addition to, and not as replacements of or superior measures to, net income or total debt reported in accordance with GAAP. For further information on how Adjusted EBITDA and the Debt to Adjusted EBITDA Ratios are calculated, see the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.

 

After-Tax Return on Invested Capital, Excluding Cash and Investments (“ROIC”) - After-Tax Return on Invested Capital, Excluding Cash and Investments, is a non-GAAP financial measure. After-tax return on invested capital, excluding cash and investments, represents our after-tax income from operations, divided by our average invested capital, excluding cash and investments, using beginning and ending balance sheet values. Management believes that reporting ROIC provides useful information to investors for evaluating the efficiency and effectiveness of our use of capital. ROIC, after-tax income from operations and average invested capital, excluding cash and investments, are not measures of financial performance under GAAP and should be considered in addition to, and not as replacements of or superior measures to, return on assets, net income, total assets or other financial measures reported in accordance with GAAP. See the supplementary table below for reconciliation of this non-GAAP financial measure.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 9 of 16

 

Notes and Definitions

 

Discrete litigation expense accrual - During the second quarter of 2024, the Company increased its previously established $27.5 million accrual related to an ongoing litigation matter by $61.5 million.

 

Ongoing litigation matter - The Company is a defendant in an ongoing litigation matter involving an alleged breach of contract for underpayment of royalty payments made from 2004 through 2017 under an expired patent license agreement. The Company's total accrual of $89.0 million for this matter includes the discrete $61.5 million litigation expense accrual recorded in the second quarter of 2024 and represents our best estimate of the amount of the probable loss. The actual loss associated with this matter may be higher or lower than the accrued amount depending on the ultimate outcome of this matter. For further information, see the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 10 of 16

 

IDEXX Laboratories, Inc. and Subsidiaries        
Condensed Consolidated Statement of Operations        
Amounts in thousands except per share data (Unaudited)        
         
      Three Months Ended   Twelve Months Ended 
      December 31,   December 31,   December 31,   December 31, 
      2024   2023   2024   2023 
Revenue:  Revenue  $954,288   $901,601   $3,897,504   $3,660,953 
Expenses and Income:  Cost of revenue   383,628    375,434    1,518,577    1,470,983 
   Gross profit   570,660    526,167    2,378,927    2,189,970 
   Sales and marketing   150,108    142,032    588,507    566,066 
   General and administrative   101,137    87,021    442,291    335,825 
   Research and development   57,729    51,812    219,792    190,951 
   Total operating expenses   308,974    280,865    1,250,590    1,092,842 
   Income from operations   261,686    245,302    1,128,337    1,097,128 
   Interest expense, net   (5,299)   (5,634)   (18,506)   (35,952)
   Income before provision for income taxes   256,387    239,668    1,109,831    1,061,176 
   Provision for income taxes   40,238    45,147    221,964    216,134 
Net Income:  Net income attributable to stockholders  $216,149   $194,521   $887,867   $845,042 
   Earnings per share: Basic  $2.64   $2.34   $10.77   $10.17 
   Earnings per share: Diluted  $2.62   $2.32   $10.67   $10.06 
   Shares outstanding: Basic   81,846    83,088    82,467    83,066 
   Shares outstanding: Diluted   82,538    83,933    83,246    83,978 

 

IDEXX Laboratories, Inc. and Subsidiaries        
Selected Operating Information (Unaudited)        
         
      Three Months Ended   Twelve Months Ended 
      December 31,   December 31,   December 31,   December 31, 
      2024   2023   2024   2023 
Operating Ratios  Gross profit   59.8%   58.4%   61.0%   59.8%
(as a percentage of revenue):  Sales, marketing, general and administrative expense   26.3%   25.4%   26.4%   24.6%
   Research and development expense   6.0%   5.7%   5.6%   5.2%
   Income from operations 1   27.4%   27.2%   29.0%   30.0%

 

1 Amounts presented may not recalculate due to rounding.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 11 of 16

 

IDEXX Laboratories, Inc. and Subsidiaries
Segment Information
Amounts in thousands (Unaudited)
            
      Three Months Ended   Three Months Ended 
      December 31,   Percent of   December 31,   Percent of 
      2024   Revenue   2023   Revenue 
Revenue:  CAG  $870,471        $821,265      
   Water   45,153         41,787      
   LPD   34,557         32,793      
   Other   4,107         5,756      
   Total  $954,288        $901,601      
                        
Gross Profit:  CAG  $519,412    59.7%  $478,669    58.3%
   Water   32,685    72.4%   27,380    65.5%
   LPD   17,141    49.6%   18,465    56.3%
   Other   1,422    34.6%   1,653    28.7%
   Total  $570,660    59.8%  $526,167    58.4%
                        
Income from Operations:  CAG  $240,088    27.6%  $222,123    27.0%
   Water   20,991    46.5%   17,221    41.2%
   LPD   3,379    9.8%   4,311    13.1%
   Other   (2,772)   (67.5)%   1,647    28.6%
   Total  $261,686    27.4%  $245,302    27.2%

 

      Twelve Months Ended   Twelve Months Ended 
      December 31,   Percent of   December 31,   Percent of 
      2024   Revenue   2023   Revenue 
Revenue:  CAG  $3,574,044        $3,352,356      
   Water   185,112         168,149      
   LPD   122,060         121,659      
   Other   16,288         18,789      
   Total  $3,897,504        $3,660,953      
                        
Gross Profit:  CAG  $2,179,180    61.0%  $2,002,426    59.7%
   Water   130,011    70.2%   116,001    69.0%
   LPD   62,560    51.3%   65,440    53.8%
   Other   7,176    44.1%   6,103    32.5%
   Total  $2,378,927    61.0%  $2,189,970    59.8%
                        
Income from Operations:  CAG  $1,038,416    29.1%  $1,012,740    30.2%
   Water   84,533    45.7%   74,340    44.2%
   LPD   6,633    5.4%   9,975    8.2%
   Other   (1,245)   (7.6)%   73    0.4%
   Total  $1,128,337    29.0%  $1,097,128    30.0%

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 12 of 16

 

IDEXX Laboratories, Inc. and Subsidiaries
Revenues and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets
Amounts in thousands (Unaudited)
                             
   Three Months Ended                     
               Reported   Percentage   Percentage   Organic 
   December 31,   December 31,   Dollar   Revenue   Change from   Change from   Revenue 
Net Revenue  2024   2023   Change   Growth 1   Currency   Acquisitions   Growth 1 
CAG  $870,471   $821,265   $49,206    6.0%   (0.3)%   0.5%   5.8%
United States   574,103    549,755    24,348    4.4%   —    0.7%   3.7%
International   296,368    271,510    24,858    9.2%   (1.0)%   —    10.1%
Water  $45,153   $41,787   $3,366    8.1%   (0.9)%   —    9.0%
United States   22,016    19,906    2,110    10.6%   —    —    10.6%
International   23,137    21,881    1,256    5.7%   (1.7)%   —    7.4%
LPD  $34,557   $32,793   $1,764    5.4%   (1.7)%   —    7.1%
United States   6,410    4,956    1,454    29.4%   —    —    29.4%
International   28,147    27,837    310    1.1%   (1.9)%   —    3.0%
Other  $4,107   $5,756   $(1,649)   (28.6)%   —    —    (28.6)%
Total Company  $954,288   $901,601   $52,687    5.8%   (0.4)%   0.4%   5.8%
United States   603,961    576,361    27,600    4.8%   —    0.7%   4.1%
International   350,327    325,240    25,087    7.7%   (1.1)%   —    8.8%

 

   Three Months Ended                     
               Reported   Percentage   Percentage   Organic 
   December 31,   December 31,   Dollar   Revenue   Change from   Change from   Revenue 
Net CAG Revenue  2024   2023   Change   Growth 1   Currency   Acquisitions   Growth 1 
CAG Diagnostics recurring revenue:  $757,451   $712,089   $45,362    6.4%   (0.2)%   —    6.6%
IDEXX VetLab consumables   331,845    297,370    34,475    11.6%   (0.2)%   —    11.8%
Rapid assay products   77,375    77,560    (185)   (0.2)%   (0.4)%   —    0.2%
Reference laboratory diagnostic and consulting services   316,027    305,037    10,990    3.6%   (0.2)%   —    3.8%
CAG Diagnostics services and accessories   32,204    32,122    82    0.3%   (0.3)%   —    0.6%
CAG Diagnostics capital – instruments   33,016    38,151    (5,135)   (13.5)%   (1.6)%   —    (11.9)%
Veterinary software, services and diagnostic imaging systems:   80,004    71,025    8,979    12.6%   (0.2)%   5.6%   7.2%
Recurring revenue   62,898    54,558    8,340    15.3%   (0.1)%   6.9%   8.5%
Systems and hardware   17,106    16,467    639    3.9%   (0.3)%   1.3%   2.9%
Net CAG revenue  $870,471   $821,265   $49,206    6.0%   (0.3)%   0.5%   5.8%

 

   Three Months Ended                     
               Reported   Percentage   Percentage   Organic 
   December 31,   December 31,   Dollar   Revenue   Change from   Change from   Revenue 
   2024   2023   Change   Growth 1   Currency   Acquisitions   Growth 1 
CAG Diagnostics recurring revenue:  $757,451   $712,089   $45,362    6.4%   (0.2)%   —    6.6%
United States  $490,240   $470,900   $19,340    4.1%   —    —    4.1%
International  $267,211   $241,189   $26,022    10.8%   (0.8)%   —    11.6%

 

1 See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 13 of 16

 

IDEXX Laboratories, Inc. and Subsidiaries
Revenues and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets
Amounts in thousands (Unaudited)
                             
   Twelve Months Ended                     
               Reported   Percentage   Percentage   Organic 
   December 31,   December 31,   Dollar   Revenue   Change from   Change from   Revenue 
Net Revenue  2024   2023   Change   Growth 1   Currency   Acquisitions   Growth 1 
CAG  $3,574,044   $3,352,356   $221,688    6.6%   (0.2)%   0.4%   6.4%
United States   2,409,152    2,282,507    126,645    5.5%   —    0.6%   5.0%
International   1,164,892    1,069,849    95,043    8.9%   (0.7)%   —    9.6%
Water  $185,112   $168,149   $16,963    10.1%   (0.5)%   —    10.6%
United States   95,347    83,838    11,509    13.7%   —    —    13.7%
International   89,765    84,311    5,454    6.5%   (1.0)%   —    7.5%
LPD  $122,060   $121,659   $401    0.3%   (0.9)%   —    1.2%
United States   22,250    18,961    3,289    17.3%   —    —    17.3%
International   99,810    102,698    (2,888)   (2.8)%   (1.0)%   —    (1.8)%
Other  $16,288   $18,789   $(2,501)   (13.3)%   —    —    (13.3)%
Total Company  $3,897,504   $3,660,953   $236,551    6.5%   (0.3)%   0.4%   6.4%
United States   2,533,174    2,391,427    141,747    5.9%   —    0.5%   5.4%
International   1,364,330    1,269,526    94,804    7.5%   (0.8)%   —    8.2%

 

   Twelve Months Ended                     
               Reported   Percentage   Percentage   Organic 
   December 31,   December 31,   Dollar   Revenue   Change from   Change from   Revenue 
Net CAG Revenue  2024   2023   Change   Growth 1   Currency   Acquisitions   Growth 1 
CAG Diagnostics recurring revenue:  $3,129,492   $2,935,425   $194,067    6.6%   (0.2)%   —    6.8%
IDEXX VetLab consumables   1,303,250    1,188,261    114,989    9.7%   (0.3)%   —    10.0%
Rapid assay products   359,754    344,494    15,260    4.4%   (0.3)%   —    4.7%
Reference laboratory diagnostic and consulting services   1,336,121    1,278,617    57,504    4.5%   (0.1)%   —    4.6%
CAG Diagnostics services and accessories   130,367    124,053    6,314    5.1%   (0.4)%   —    5.5%
CAG Diagnostics capital – instruments   131,928    137,603    (5,675)   (4.1)%   (0.8)%   —    (3.4)%
Veterinary software, services and diagnostic imaging systems   312,624    279,328    33,296    11.9%   (0.1)%   4.7%   7.3%
Recurring revenue   250,359    214,597    35,762    16.7%   —    6.0%   10.7%
Systems and hardware   62,265    64,731    (2,466)   (3.8)%   (0.1)%   0.3%   (4.0)%
Net CAG revenue  $3,574,044   $3,352,356   $221,688    6.6%   (0.2)%   0.4%   6.4%

 

   Twelve Months Ended                     
               Reported   Percentage   Percentage   Organic 
   December 31,   December 31,   Dollar   Revenue   Change from   Change from   Revenue 
   2024   2023   Change   Growth 1   Currency   Acquisitions   Growth 1 
CAG Diagnostics recurring revenue:  $3,129,492   $2,935,425   $194,067    6.6%   (0.2)%   —    6.8%
United States  $2,080,277   $1,976,737   $103,540    5.2%   —    —    5.2%
International  $1,049,215   $958,688   $90,527    9.4%   (0.7)%   —    10.1%

 

1 See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 14 of 16

 

IDEXX Laboratories, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
Amounts in thousands (Unaudited)
 
      December 31,   December 31, 
      2024   2023 
Assets:  Current Assets:          
   Cash and cash equivalents  $288,266   $453,932 
   Accounts receivable, net   473,575    457,445 
   Inventories   381,877    380,282 
   Other current assets   256,179    203,595 
   Total current assets   1,399,897    1,495,254 
   Property and equipment, net   713,123    702,177 
   Other long-term assets, net   1,180,423    1,062,494 
   Total assets  $3,293,443   $3,259,925 
Liabilities and Stockholders'             
Equity:  Current Liabilities:          
   Accounts payable  $114,211   $110,643 
   Accrued liabilities   502,119    478,712 
   Credit facility   250,000    250,000 
   Current portion of long-term debt   167,787    74,997 
   Deferred revenue   33,799    37,195 
   Total current liabilities   1,067,916    951,547 
   Long-term debt, net of current portion   449,786    622,883 
   Other long-term liabilities, net   180,428    200,965 
   Total long-term liabilities   630,214    823,848 
   Total stockholders' equity   1,595,313    1,484,530 
   Total liabilities and stockholders' equity  $3,293,443   $3,259,925 

 

IDEXX Laboratories, Inc. and Subsidiaries
Selected Balance Sheet Information (Unaudited)
 
      December 31,
2024		   September 30, 2024   June 30,
2024		   March 31,
2024		   December 31, 2023 
Selected Balance Sheet Information:  Days sales outstanding 1   47.1    48.9    47.3    45.7    46.1 
   Inventory turns 2   1.3    1.3    1.4    1.3    1.3 

 

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 twelve months preceding each quarter-end divided by the average inventory balances at the beginning and end of each quarter.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 15 of 16

 

IDEXX Laboratories, Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
Amounts in thousands (Unaudited)
 
      Twelve Months Ended 
      December 31,   December 31, 
      2024   2023 
Operating:  Cash Flows from Operating Activities:          
   Net income  $887,867   $845,042 
   Non-cash charges   174,372    133,897 
   Changes in assets and liabilities   (133,238)   (72,429)
   Net cash provided by operating activities   929,001    906,510 
Investing:  Cash Flows from Investing Activities:          
   Purchases of property and equipment   (120,922)   (133,631)
   Acquisitions of businesses, intangibles, and equity investment, net of cash acquired   (87,698)   — 
   Proceeds from net investment hedges   1,558    8,377 
   Net cash used by investing activities   (207,062)   (125,254)
Financing:  Cash Flows from Financing Activities:          
   Payments on credit facilities, net   —    (329,000)
   Payments of senior debt   (75,000)   (75,000)
   Payment of acquisition-related contingent considerations and holdbacks   —    (3,135)
   Repurchases of common stock   (837,034)   (71,920)
   Proceeds from exercises of stock options and employee stock purchase plans   44,492    47,034 
   Shares withheld for statutory tax withholding payments on restricted stock   (10,531)   (9,975)
   Net cash used by financing activities   (878,073)   (441,996)
   Net effect of changes in exchange rates on cash   (9,532)   2,126 
   Net change in cash and cash equivalents   (165,666)   341,386 
   Cash and cash equivalents, beginning of period   453,932    112,546 
   Cash and cash equivalents, end of period  $288,266   $453,932 

 

IDEXX Laboratories, Inc. and Subsidiaries
Free Cash Flow
Amounts in thousands (Unaudited)
 
      Twelve Months Ended 
      December 31,   December 31, 
      2024   2023 
Free Cash Flow:  Net cash provided by operating activities  $929,001   $906,510 
   Investing cash flows attributable to purchases of property and equipment   (120,922)   (133,631)
   Free cash flow 1  $808,079   $772,879 

 

1 See Statements Regarding Non-GAAP Financial Measures, above.

 

 

 

 

IDEXX Announces Fourth Quarter and Full Year Results

February 3, 2025

Page 16 of 16

 

IDEXX Laboratories, Inc. and Subsidiaries      
After-Tax Return on Invested Capital, Excluding Cash and Investments ("ROIC")      
Amounts in thousands (Unaudited)      
       
Numerator   For the Year Ended
December 31, 2024  		  
Income from operations (as reported)   $ 1,128,337  
After-tax income from operations 1   $ 902,672  

 

Denominator   As of
December 31, 2024		     As of
December 31, 2023  		  
Total shareholders’ equity   $ 1,595,313     $ 1,484,530  
Credit facility     250,000       250,000  
Long-term debt, current portion     167,787       74,997  
Long-term debt, net of current portion     449,786       622,883  
Deferred income tax assets     (125,630 )     (107,364 )
Deferred income tax liabilities     11,312       7,235  
Total invested capital   $ 2,348,568     $ 2,332,281  
Less cash and cash equivalents     288,266       453,932  
Total invested capital, excluding cash and investments   $ 2,060,302     $ 1,878,349  
Average invested capital, excluding cash and investments 2   $ 1,969,326          
After-tax return on invested capital, excluding cash and investments     45.8 %        

 

1 After-tax income from operations represents income from operations reduced by our reported effective tax rate.

2 Average invested capital, excluding cash and investments, represents the average of the amount of total invested capital, excluding cash and investments.

 

IDEXX Laboratories, Inc. and Subsidiaries        
Common Stock Repurchases        
Amounts in thousands except per share data (Unaudited)        
         
   Three Months Ended   Twelve Months Ended 
   December 31,   December 31,   December 31,   December 31, 
   2024   2023   2024   2023 
Shares repurchased in the open market   564    90    1,741    155 
Shares acquired through employee surrender for statutory tax withholding   —    —    19    20 
Total shares repurchased   564    90    1,760    175 
                     
Cost of shares repurchased in the open market  $248,685   $34,569   $848,901   $72,639 
Cost of shares for employee surrenders   45    67    10,531    9,974 
Total cost of shares  $248,730   $34,636   $859,432   $82,613 
                     
Average cost per share – open market repurchases  $441.37   $419.72   $487.66   $468.84 
Average cost per share – employee surrenders  $423.35   $482.60   $556.90   $503.28 
Average cost per share – total  $441.37   $419.82   $488.40   $472.74 

 

 

 

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Cover
Feb. 03, 2025
Cover [Abstract]  
Document Type 8-K
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Document Period End Date Feb. 03, 2025
Entity File Number 000-19271
Entity Registrant Name IDEXX LABORATORIES INC /DE
Entity Central Index Key 0000874716
Entity Tax Identification Number 01-0393723
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One One IDEXX Drive
Entity Address, City or Town Westbrook
Entity Address, State or Province ME
Entity Address, Postal Zip Code 04092
City Area Code 207
Local Phone Number 556.0300
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Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.10 par value per share
Trading Symbol IDXX
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
IDEXX Laboratories (NASDAQ:IDXX)
Graphique Historique de l'Action
De Jan 2025 à Fév 2025 Plus de graphiques de la Bourse IDEXX Laboratories
IDEXX Laboratories (NASDAQ:IDXX)
Graphique Historique de l'Action
De Fév 2024 à Fév 2025 Plus de graphiques de la Bourse IDEXX Laboratories