IDXX IDEXX Laboratories Inc

• Achieves fourth quarter revenue growth of 9% reported and 8% organic, driven by CAG Diagnostics recurring revenue growth of 11% reported and 10% organic
• Solid growth supported by continued benefits from IDEXX execution drivers, including 11% year-over-year expansion of IDEXX's global premium instrument installed base
• Delivers fourth quarter EPS of $2.32, an increase of 13% as reported and 17% on a comparable basis
• Provides initial outlook for 2024 revenue of $3,930 million - $4,040 million, reflecting growth of 7.5% - 10.5% reported and 7% - 10% organic, supported by CAG Diagnostics recurring revenue growth of 7.5% - 10.5% as reported and on an organic basis
• Estimates 2024 EPS of $10.84 - $11.33, an increase of 8% - 13% as reported and on a comparable basis, including a ~2% negative EPS growth impact from 2023 customer contract resolution

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

Fourth Quarter and Full Year Results

The Company reports revenues of $902 million for the fourth quarter of 2023, an increase of 9% compared to the prior year period on a reported basis and 8% on an organic basis driven by Companion Animal Group ("CAG") growth of 10% reported and 9% organic. CAG Diagnostics recurring revenue gains of 11% reported and 10% 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. CAG revenue gains also reflect double-digit veterinary software, services and diagnostic imaging systems recurring revenue growth as reported and organically, supported by strong software solution placement growth and a continued shift to cloud-based products.

Earnings per diluted share (“EPS”) were $2.32 for the fourth quarter, an increase of 13% as reported and 17% on a comparable basis. Results reflect operating margin contraction of 10 basis points as reported and expansion of 60 basis points on a comparable basis. Fourth quarter EPS included $0.04 per share negative impact from currency changes and $0.02 per share in tax benefits from share-based compensation. Fourth quarter EPS also benefit by $0.10 per share from the release of tax valuation allowances in certain jurisdictions which lowered the full year effective tax rate by approximately 100 basis points.

Revenue for the full year of $3,661 million increased 9% as reported and organically, driven by 10% reported and 10.5% organic growth in CAG Diagnostics recurring revenue.

“Outstanding execution by IDEXX's commercial and operations teams supported delivery of strong organic revenue growth and financial results for the Company in 2023. We're excited about our sustained business momentum, supported by partnerships with our customers, that will be further enabled by key innovations we are advancing across our instrument platforms, test menu and software offerings. This includes the launch of our new revolutionary slide-free cellular analyzer, IDEXX inVue Dx™ targeted for late 2024," said Jay Mazelsky, President and Chief Executive Officer. "Our performance and progress demonstrate that customers of all types appreciate the purpose-built solutions that we provide and utilize these tools and services to deliver increased standards of care while realizing critical efficiency gains."

For the full year 2023, EPS of $10.06 increased 25% on a reported basis and 29% on a comparable basis, including a ~12% EPS growth benefit related to $80 million of discrete in-license of technology in 2022 and a $16 million customer contract resolution in 2023. EPS results reflect operating margin expansion of 330 basis points as reported and 390 basis points on a comparable basis, including a ~280 basis point benefit from the discrete in-license of technology and customer contract resolution. EPS results include a $0.24 negative impact from currency changes and $0.16 in tax benefits from share-based compensation.

The Company's 2024 revenue guidance range reflects full year growth of 7.5% - 10.5% as reported and 7% - 10% on an organic basis, supported by 7.5% - 10.5% reported and 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 5% full year benefit from net price improvement. 2024 EPS guidance of $10.84 - $11.33 reflects expectations for solid organic revenue gains and a targeted 20 - 70 basis points of reported operating margin improvement net of a ~40 basis point negative impact from lapping the 2023 customer contract resolution.

Fourth Quarter Performance Highlights

Companion Animal Group

The Companion Animal Group generated 10% reported revenue growth for the fourth quarter. CAG Diagnostics organic recurring revenue growth of 10% reflects solid gains across IDEXX's major modalities globally, supported by growth in clinical service demand and expanded utilization of diagnostic products and services.

Additional U.S. companion animal practice key metrics are available in the Q4 2023 Earnings Snapshot accessible on the IDEXX website, www.idexx.com/investors.

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

• IDEXX VetLab® consumables generated 14% reported and 13% organic revenue growth reflecting double-digit gains across U.S. and International regions, supported by global premium instrument installed base growth, high customer retention levels and net price gains.

• Reference laboratory diagnostic and consulting services generated 8% reported and 7% organic revenue growth, reflecting high single-digit growth in the U.S. and sustained solid organic revenue growth in International regions.

• Rapid assay products generated 9% revenue growth as reported and organically, reflecting continued solid volume gains in the U.S. and benefits from net price increases.

Veterinary software, services and diagnostic imaging systems revenue growth increased 6% as reported and organically compared to strong prior year performance levels, supported by double-digit growth in recurring revenues and strong interest in cloud-based veterinary software solutions.

Water

Water achieved revenue growth of 6% on a reported basis and 5% on an organic basis, reflecting benefits from net price improvement and solid gains in the U.S. and Europe, moderated by lower revenues in China and year-end order timing.

Livestock, Poultry and Dairy (“LPD”)

LPD revenue declined 2% on a reported basis and 4% on an organic basis as solid core product growth in the U.S. and Europe was offset by declines in herd health screening and China revenues.

Gross Profit and Operating Profit

Gross profits increased 9%. Gross margins of 58.4% contracted 20 basis points compared to prior year on a reported basis and expanded 50 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 software service gross margins.

Operating margin was 27.2% in the quarter, 10 basis points lower than the prior year period results on a reported basis and 60 basis points higher on a comparable basis. Operating expenses grew 9% as reported and 7% on a comparable basis. Operating expense growth reflects increased investments in commercial resources and R&D project spend.

2024 Growth and Financial Performance Outlook

The following table provides the Company's initial estimates for annual key financial metrics in 2024:

Amounts in millions except per share data and percentages

Growth and Financial Performance Outlook

 

2024

 

 

 

 

 

 

 

Revenue

 

$3,930

-

$4,040

 

Reported growth

 

7.5%

-

10.5%

 

Organic growth

 

7%

-

10%

 

CAG Diagnostics Recurring Revenue Growth

 

 

 

 

 

Reported growth

 

7.5%

-

10.5%

 

Organic growth

 

7.5%

-

10.5%

 

Operating Margin

 

30.2%

-

30.7%

 

Reported operating margin expansion

 

20

-

70 bps

 

Comparable operating margin expansion

 

20

-

70 bps

 

Negative impact of 2023 customer contract resolution payment

 

~ 40 bps

 

EPS

 

$10.84

-

$11.33

 

Reported growth

 

8%

-

13%

 

Comparable growth

 

8%

-

13%

 

Negative impact of 2023 customer contract resolution payment

 

~ 2%

 

Other Key Metrics

 

 

 

 

 

Net interest expense

 

~ $27

 

Share-based compensation tax benefit

 

~ $8

 

Share-based compensation tax rate benefit

 

~ 1 %

 

Effective tax rate

 

~ 22 %

 

Share-based compensation EPS impact

 

~ $0.10

 

Reduction in average shares outstanding

 

0.5%

-

1%

 

Operating Cash Flow

 

110% - 115% of net income

 

Free Cash Flow

 

90% - 95% of net income

 

Capital Expenditures

 

~ $180 million

 

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 2024.

Estimated Foreign Currency Exchange Rate Impacts

 

2024

 

 

 

 

 

 

 

Revenue growth rate impact

 

~ 0%

 

CAG Diagnostics recurring revenue growth rate impact

 

~ 0%

 

Operating margin growth impact

 

~ 0 bps

 

EPS impact

 

~ $0.02

 

EPS growth impact

 

~ 0%

 

 

 

 

 

 

 

Go-forward Foreign Currency Exchange Rate Assumptions

 

 

 

 

 

In U.S. dollars

 

 

 

 

 

euro

 

$1.08

 

British pound

 

$1.25

 

Canadian dollar

 

$0.74

 

Australian dollar

 

$0.66

 

Relative to the U.S. dollar

 

 

 

 

 

Japanese yen

 

¥147

 

Chinese renminbi

 

¥7.23

 

Brazilian real

 

R$4.95

 

Conference Call and Webcast Information

IDEXX Laboratories, Inc. will host a conference call today at 8:30 a.m. (Eastern) to discuss its 2023 fourth quarter and full year financial results and management’s outlook. To participate in the conference call, dial 1-800-776-0420 or 1-773-377-9037 and reference access code 764284. 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 nearly 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.

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 "2024 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; and expectations for net price improvement. 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, 2023, June 30, 2023, and September 30, 2023, 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 2023 results as follows: decreased gross profit growth by 0.2%, decreased gross margin growth by 70 basis points, increased operating expense growth by 1.3%, decreased operating profit margin growth by 70 basis points, and decreased EPS growth by 1.9%. Estimated currency changes impacted full year 2023 results as follows: decreased gross profit growth by 1.3%, decreased gross margin growth by 60 basis points, was immaterial to operating expense growth, decreased operating profit margin growth by 60 basis points, and decreased EPS growth by 3.0%. 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, 2023 and refer to the 2024 Growth and Financial Performance Outlook section of this press release for estimated foreign currency exchange rate impacts on 2024 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, 2023. 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 2024 revenue growth by 50 basis points.

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,

 

Change

 

December 31,

 

December 31,

 

Change

Dollar amounts in thousands

 

 

2023

 

 

 

2022

 

 

 

 

 

2023

 

 

 

2022

 

 

 

Gross Profit (as reported)

 

$

526,167

 

 

$

484,927

 

 

9

%

 

$

2,189,970

 

 

$

2,004,338

 

 

9

%

Gross margin

 

 

58.4

%

 

 

58.5

%

 

(20) bps

 

 

59.8

%

 

 

59.5

%

 

30 bps

Less: comparability adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Change from currency

 

 

(1,062

)

 

—

 

 

 

 

 

(25,887

)

 

—

 

 

 

Comparable gross profit growth

 

$

527,229

 

 

$

484,927

 

 

9

%

 

$

2,215,857

 

 

$

2,004,338

 

 

11

%

Comparable gross margin and gross margin gain (or growth)

 

 

59.1

%

 

 

58.5

%

 

50 bps

 

 

60.5

%

 

 

59.5

%

 

90 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses (as reported)

 

$

280,865

 

 

$

258,400

 

 

9

%

 

$

1,092,842

 

 

$

1,105,573

 

 

(1

)%

Less: comparability adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Change from currency

 

 

3,440

 

 

—

 

 

 

 

 

(507

)

 

—

 

 

 

Comparable operating expense growth

 

 

277,425

 

 

 

258,400

 

 

7

%

 

 

1,093,349

 

 

 

1,105,573

 

 

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations (as reported)

 

$

245,302

 

 

$

226,527

 

 

8

%

 

$

1,097,128

 

 

$

898,765

 

 

22

%

Operating margin

 

 

27.2

%

 

 

27.3

%

 

(10) bps

 

 

30.0

%

 

 

26.7

%

 

330 bps

Less: comparability adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Change from currency

 

 

(4,501

)

 

—

 

 

 

 

 

(25,380

)

 

—

 

 

 

Comparable operating profit growth

 

$

249,803

 

 

$

226,527

 

 

10

%

 

$

1,122,508

 

 

$

898,765

 

 

25

%

Comparable operating margin and operating margin gain (or growth)

 

 

28.0

%

 

 

27.3

%

 

60 bps

 

 

30.6

%

 

 

26.7

%

 

390 bps

Amounts presented may not recalculate due to rounding.

Projected 2024 comparable operating margin expansion outlined in the 2024 Growth and Financial Performance Outlook section of this earnings release reflects the projected full year 2024 reported operating margin adjusted for estimated positive year-over-year foreign currency exchange rate change impact of approximately 0 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 2024 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.

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,

 

Growth

 

December 31,

 

December 31,

 

Growth

 

 

2023

 

2022

 

 

 

2023

 

2022

 

 

Earnings per share (diluted)

 

$

2.32

 

 

$

2.05

 

13

%

 

$

10.06

 

 

$

8.03

 

25

%

Less: comparability adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation activity

 

 

0.02

 

 

 

0.05

 

 

 

 

0.16

 

 

 

0.15

 

 

Change from currency

 

 

(0.04

)

 

—

 

 

 

 

(0.24

)

 

—

 

 

Comparable EPS growth

 

 

2.34

 

 

 

2.00

 

17

%

 

 

10.14

 

 

 

7.88

 

29

%

Amounts presented may not recalculate due to rounding.

Projected 2024 comparable EPS growth outlined in the 2024 Growth and Financial Performance Outlook section of this earnings release reflects the following adjustments: (i) full year 2023 reported EPS adjusted for positive share-based compensation activity of $0.16 for full year 2023; and (ii) projected full year 2024 reported EPS adjusted for estimated positive share-based compensation activity of $0.10 and estimated positive year-over-year foreign currency exchange rate change impact of $0.02.

These impacts and those described in the constant currency note above reconcile reported EPS growth (including projected 2024 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, 2023 and 2022. To estimate projected 2024 free cash flow, we have deducted projected purchases of property and equipment (also referred to as capital expenditures) of ~ $180 million. 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, 2023, we have deducted purchases of property and equipment of approximately $134 million from net cash provided from operating activities of approximately $907 million, divided by net income of approximately $845 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, 2023.

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 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,

 

 

 

 

2023

 

 

2022

 

2023

 

2022

Revenue:

 

Revenue

 

$

901,601

 

 

$

828,568

 

 

$

3,660,953

 

 

$

3,367,324

 

Expenses and Income:

 

Cost of revenue

 

 

375,434

 

 

 

343,641

 

 

 

1,470,983

 

 

 

1,362,986

 

 

 

Gross profit

 

 

526,167

 

 

 

484,927

 

 

 

2,189,970

 

 

 

2,004,338

 

 

 

Sales and marketing

 

 

142,032

 

 

 

131,935

 

 

 

566,066

 

 

 

524,505

 

 

 

General and administrative

 

 

87,021

 

 

 

83,047

 

 

 

335,825

 

 

 

326,248

 

 

 

Research and development

 

 

51,812

 

 

 

43,418

 

 

 

190,951

 

 

 

254,820

 

 

 

Income from operations

 

 

245,302

 

 

 

226,527

 

 

 

1,097,128

 

 

 

898,765

 

 

 

Interest expense, net

 

 

(5,634

)

 

 

(13,312

)

 

 

(35,952

)

 

 

(38,793

)

 

 

Income before provision for income taxes

 

 

239,668

 

 

 

213,215

 

 

 

1,061,176

 

 

 

859,972

 

 

 

Provision for income taxes

 

 

45,147

 

 

 

41,008

 

 

 

216,134

 

 

 

180,883

 

Net Income:

 

Net income attributable to stockholders

 

$

194,521

 

 

$

172,207

 

 

$

845,042

 

 

$

679,089

 

 

 

Earnings per share: Basic

 

$

2.34

 

 

$

2.08

 

 

$

10.17

 

 

$

8.12

 

 

 

Earnings per share: Diluted

 

$

2.32

 

 

$

2.05

 

 

$

10.06

 

 

$

8.03

 

 

 

Shares outstanding: Basic

 

 

83,088

 

 

 

82,934

 

 

 

83,066

 

 

 

83,623

 

 

 

Shares outstanding: Diluted

 

 

83,933

 

 

 

83,815

 

 

 

83,978

 

 

 

84,600

 

IDEXX Laboratories, Inc. and Subsidiaries

 

 

 

 

Selected Operating Information (Unaudited)

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

 

December 31,

 

December 31,

 

December 31,

 

December 31,

 

 

 

 

2023

 

2022

 

2023

 

2022

Operating Ratios

 

Gross profit

 

58.4%

 

58.5%

 

59.8%

 

59.5%

(as a percentage of revenue):

 

Sales, marketing, general and administrative expense

 

25.4%

 

25.9%

 

24.6%

 

25.3%

 

 

Research and development expense

 

5.7%

 

5.2%

 

5.2%

 

7.6%

 

 

Income from operations 1

 

27.2%

 

27.3%

 

30.0%

 

26.7%

 

 

 

 

 

 

 

 

 

 

 

1 Amounts presented may not recalculate due to rounding.

 

 

 

 

 

 

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

 

 

 

 

 

2023

 

Revenue

 

 

2022

 

Revenue

Revenue:

 

CAG

 

$

821,265

 

 

 

$

748,532

 

 

 

 

Water

 

 

41,787

 

 

 

 

39,314

 

 

 

 

LPD

 

 

32,793

 

 

 

 

33,396

 

 

 

 

Other

 

 

5,756

 

 

 

 

7,326

 

 

 

 

Total

 

$

901,601

 

 

 

$

828,568

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

CAG

 

$

478,669

 

58.3

%

 

$

434,890

 

58.1

%

 

 

Water

 

 

27,380

 

65.5

%

 

 

27,357

 

69.6

%

 

 

LPD

 

 

18,465

 

56.3

%

 

 

18,996

 

56.9

%

 

 

Other

 

 

1,653

 

28.7

%

 

 

3,684

 

50.3

%

 

 

Total

 

$

526,167

 

58.4

%

 

$

484,927

 

58.5

%

 

 

 

 

 

 

 

 

 

 

 

Income from Operations:

 

CAG

 

$

222,123

 

27.0

%

 

$

199,844

 

26.7

%

 

 

Water

 

 

17,221

 

41.2

%

 

 

18,021

 

45.8

%

 

 

LPD

 

 

4,311

 

13.1

%

 

 

5,362

 

16.1

%

 

 

Other

 

 

1,647

 

28.6

%

 

 

3,300

 

45.0

%

 

 

Total

 

$

245,302

 

27.2

%

 

$

226,527

 

27.3

%

 

 

 

 

Twelve Months Ended

 

Twelve Months Ended

 

 

 

 

December 31,

 

Percent of

 

December 31,

 

Percent of

 

 

 

 

 

2023

 

Revenue

 

 

2022

 

Revenue

Revenue:

 

CAG

 

$

3,352,356

 

 

 

$

3,058,793

 

 

 

 

Water

 

 

168,149

 

 

 

 

155,720

 

 

 

 

LPD

 

 

121,659

 

 

 

 

122,607

 

 

 

 

Other

 

 

18,789

 

 

 

 

30,204

 

 

 

 

Total

 

$

3,660,953

 

 

 

$

3,367,324

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

CAG

 

$

2,002,426

 

59.7

%

 

$

1,806,577

 

59.1

%

 

 

Water

 

 

116,001

 

69.0

%

 

 

109,859

 

70.5

%

 

 

LPD

 

 

65,440

 

53.8

%

 

 

73,001

 

59.5

%

 

 

Other

 

 

6,103

 

32.5

%

 

 

14,901

 

49.3

%

 

 

Total

 

$

2,189,970

 

59.8

%

 

$

2,004,338

 

59.5

%

 

 

 

 

 

 

 

 

 

 

 

Income from Operations:

 

CAG

 

$

1,012,740

 

30.2

%

 

$

800,949

 

26.2

%

 

 

Water

 

 

74,340

 

44.2

%

 

 

72,519

 

46.6

%

 

 

LPD

 

 

9,975

 

8.2

%

 

 

19,809

 

16.2

%

 

 

Other

 

 

73

 

0.4

%

 

 

5,488

 

18.2

%

 

 

Total

 

$

1,097,128

 

30.0

%

 

$

898,765

 

26.7

%

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

 

2023

 

2022

 

Change

 

Growth 1

 

Currency

 

Acquisitions

 

Growth 1

CAG

 

$

821,265

 

$

748,532

 

$

72,733

 

 

9.7

%

 

0.9

%

 

—

 

8.8

%

United States

 

 

549,755

 

 

510,072

 

 

39,683

 

 

7.8

%

 

—

 

—

 

7.8

%

International

 

 

271,510

 

 

238,460

 

 

33,050

 

 

13.9

%

 

2.9

%

 

—

 

10.9

%

Water

 

$

41,787

 

$

39,314

 

$

2,473

 

 

6.3

%

 

1.2

%

 

—

 

5.1

%

United States

 

 

19,906

 

 

18,571

 

 

1,335

 

 

7.2

%

 

—

 

—

 

7.2

%

International

 

 

21,881

 

 

20,743

 

 

1,138

 

 

5.5

%

 

2.3

%

 

—

 

3.2

%

LPD

 

$

32,793

 

$

33,396

 

$

(603

)

 

(1.8

%)

 

2.0

%

 

—

 

(3.8

%)

United States

 

 

4,956

 

 

4,579

 

 

377

 

 

8.2

%

 

—

 

—

 

8.2

%

International

 

 

27,837

 

 

28,817

 

 

(980

)

 

(3.4

%)

 

2.3

%

 

—

 

(5.7

%)

Other

 

$

5,756

 

$

7,326

 

$

(1,570

)

 

(21.4

%)

 

—

 

—

 

(21.4

%)

Total Company

 

$

901,601

 

$

828,568

 

$

73,033

 

 

8.8

%

 

1.0

%

 

—

 

7.8

%

United States

 

 

576,361

 

 

536,936

 

 

39,425

 

 

7.3

%

 

—

 

—

 

7.3

%

International

 

 

325,240

 

 

291,632

 

 

33,608

 

 

11.5

%

 

2.8

%

 

—

 

8.7

%

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

Percentage

 

Percentage

 

Organic

 

 

December 31,

 

December 31,

 

Dollar

 

Revenue

 

Change from

 

Change from

 

Revenue

Net CAG Revenue

 

 

2023

 

 

2022

 

Change

 

Growth 1

 

Currency

 

Acquisitions

 

Growth 1

CAG Diagnostics recurring revenue:

 

$

712,089

 

$

642,748

 

$

69,341

 

 

10.8

%

 

1.0

%

 

—

 

9.8

%

IDEXX VetLab consumables

 

 

297,370

 

 

261,164

 

 

36,206

 

 

13.9

%

 

1.4

%

 

—

 

12.5

%

Rapid assay products

 

 

77,560

 

 

71,125

 

 

6,435

 

 

9.0

%

 

0.5

%

 

—

 

8.5

%

Reference laboratory diagnostic and consulting services

 

 

305,037

 

 

283,318

 

 

21,719

 

 

7.7

%

 

0.8

%

 

—

 

6.9

%

CAG Diagnostics services and accessories

 

 

32,122

 

 

27,141

 

 

4,981

 

 

18.3

%

 

1.3

%

 

—

 

17.1

%

CAG Diagnostics capital – instruments

 

 

38,151

 

 

38,926

 

 

(775

)

 

(2.0

%)

 

0.9

%

 

—

 

(2.8

%)

Veterinary software, services and diagnostic imaging systems:

 

 

71,025

 

 

66,858

 

 

4,167

 

 

6.2

%

 

0.1

%

 

—

 

6.1

%

Recurring revenue

 

 

54,558

 

 

48,647

 

 

5,911

 

 

12.1

%

 

0.2

%

 

—

 

12.0

%

Systems and hardware

 

 

16,467

 

 

18,211

 

 

(1,744

)

 

(9.6

%)

 

—

 

 

—

 

(9.5

%)

Net CAG revenue

 

$

821,265

 

$

748,532

 

$

72,733

 

 

9.7

%

 

0.9

%

 

—

 

8.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

Percentage

 

Percentage

 

Organic

 

 

December 31,

 

December 31,

 

Dollar

 

Revenue

 

Change from

 

Change from

 

Revenue

 

 

 

2023

 

 

2022

 

Change

 

Growth 1

 

Currency

 

Acquisitions

 

Growth 1

CAG Diagnostics recurring revenue:

 

$

712,089

 

$

642,748

 

$

69,341

 

10.8

%

 

1.0

%

 

—

 

9.8

%

United States

 

$

470,900

 

$

432,467

 

$

38,433

 

8.9

%

 

—

 

—

 

8.9

%

International

 

$

241,189

 

$

210,281

 

$

30,908

 

14.7

%

 

3.1

%

 

—

 

11.6

%

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

 

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

 

 

2023

 

 

2022

 

Change

 

Growth 1

 

Currency

 

Acquisitions

 

Growth 1

CAG

 

$

3,352,356

 

$

3,058,793

 

$

293,563

 

 

9.6

%

 

(0.2

%)

 

—

 

 

9.8

%

United States

 

 

2,282,507

 

 

2,073,222

 

 

209,285

 

 

10.1

%

 

—

 

 

—

 

 

10.1

%

International

 

 

1,069,849

 

 

985,571

 

 

84,278

 

 

8.6

%

 

(0.6

%)

 

—

 

 

9.1

%

Water

 

$

168,149

 

$

155,720

 

$

12,429

 

 

8.0

%

 

(0.3

%)

 

1.1

%

 

7.2

%

United States

 

 

83,838

 

 

76,875

 

 

6,963

 

 

9.1

%

 

—

 

 

0.5

%

 

8.5

%

International

 

 

84,311

 

 

78,845

 

 

5,466

 

 

6.9

%

 

(0.6

%)

 

1.6

%

 

5.9

%

LPD

 

$

121,659

 

$

122,607

 

$

(948

)

 

(0.8

%)

 

—

 

 

—

 

 

(0.8

%)

United States

 

 

18,961

 

 

16,633

 

 

2,328

 

 

14.0

%

 

—

 

 

—

 

 

14.0

%

International

 

 

102,698

 

 

105,974

 

 

(3,276

)

 

(3.1

%)

 

0.1

%

 

—

 

 

(3.1

%)

Other

 

$

18,789

 

$

30,204

 

$

(11,415

)

 

(37.8

%)

 

—

 

 

—

 

 

(37.8

%)

Total Company

 

$

3,660,953

 

$

3,367,324

 

$

293,629

 

 

8.7

%

 

(0.2

%)

 

0.1

%

 

8.8

%

United States

 

 

2,391,427

 

 

2,182,959

 

 

208,468

 

 

9.5

%

 

—

 

 

—

 

 

9.5

%

International

 

 

1,269,526

 

 

1,184,365

 

 

85,161

 

 

7.2

%

 

(0.5

%)

 

0.1

%

 

7.6

%

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

Percentage

 

Percentage

 

Organic

 

 

December 31,

 

December 31,

 

Dollar

 

Revenue

 

Change from

 

Change from

 

Revenue

Net CAG Revenue

 

 

2023

 

 

2022

 

Change

 

Growth 1

 

Currency

 

Acquisitions

 

Growth 1

CAG Diagnostics recurring revenue:

 

$

2,935,425

 

$

2,660,280

 

$

275,145

 

 

10.3

%

 

(0.2

%)

 

—

 

10.5

%

IDEXX VetLab consumables

 

 

1,188,261

 

 

1,057,236

 

 

131,025

 

 

12.4

%

 

(0.3

%)

 

—

 

12.7

%

Rapid assay products

 

 

344,494

 

 

313,667

 

 

30,827

 

 

9.8

%

 

(0.2

%)

 

—

 

10.0

%

Reference laboratory diagnostic and consulting services

 

 

1,278,617

 

 

1,178,113

 

 

100,504

 

 

8.5

%

 

(0.1

%)

 

—

 

8.6

%

CAG Diagnostics services and accessories

 

 

124,053

 

 

111,264

 

 

12,789

 

 

11.5

%

 

(0.3

%)

 

—

 

11.8

%

CAG Diagnostics capital – instruments

 

 

137,603

 

 

147,326

 

 

(9,723

)

 

(6.6

%)

 

(0.1

%)

 

—

 

(6.5

%)

Veterinary software, services and diagnostic imaging systems

 

 

279,328

 

 

251,187

 

 

28,141

 

 

11.2

%

 

(0.2

%)

 

—

 

11.4

%

Recurring revenue

 

 

214,597

 

 

180,973

 

 

33,624

 

 

18.6

%

 

(0.2

%)

 

—

 

18.8

%

Systems and hardware

 

 

64,731

 

 

70,214

 

 

(5,483

)

 

(7.8

%)

 

(0.2

%)

 

—

 

(7.6

%)

Net CAG revenue

 

$

3,352,356

 

$

3,058,793

 

$

293,563

 

 

9.6

%

 

(0.2

%)

 

—

 

9.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

Percentage

 

Percentage

 

Organic

 

 

December 31,

 

December 31,

 

Dollar

 

Revenue

 

Change from

 

Change from

 

Revenue

 

 

2023

 

2022

 

Change

 

Growth 1

 

Currency

 

Acquisitions

 

Growth 1

CAG Diagnostics recurring revenue:

 

$

2,935,425

 

$

2,660,280

 

$

275,145

 

10.3

%

 

(0.2

%)

 

—

 

10.5

%

United States

 

$

1,976,737

 

$

1,784,406

 

$

192,331

 

10.8

%

 

—

 

 

—

 

10.8

%

International

 

$

958,688

 

$

875,874

 

$

82,814

 

9.5

%

 

(0.6

%)

 

—

 

10.0

%

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

 

IDEXX Laboratories, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

Amounts in thousands (Unaudited)

 

 

 

 

December 31,

 

December 31,

 

 

 

 

2023

 

2022

Assets:

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

453,932

 

$

112,546

 

 

Accounts receivable, net

 

 

457,445

 

 

400,619

 

 

Inventories

 

 

380,282

 

 

367,823

 

 

Other current assets

 

 

203,595

 

 

220,489

 

 

Total current assets

 

 

1,495,254

 

 

1,101,477

 

 

Property and equipment, net

 

 

702,177

 

 

649,474

 

 

Other long-term assets, net

 

 

1,062,494

 

 

995,814

 

 

Total assets

 

$

3,259,925

 

$

2,746,765

Liabilities and Stockholders'

 

 

 

 

 

 

Equity:

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

110,643

 

$

110,221

 

 

Accrued liabilities

 

 

478,712

 

 

433,662

 

 

Credit facility

 

 

250,000

 

 

579,000

 

 

Current portion of long-term debt

 

 

74,997

 

 

74,982

 

 

Deferred revenue

 

 

37,195

 

 

37,938

 

 

Total current liabilities

 

 

951,547

 

 

1,235,803

 

 

Long-term debt, net of current portion

 

 

622,883

 

 

694,387

 

 

Other long-term liabilities, net

 

 

200,965

 

 

207,838

 

 

Total long-term liabilities

 

 

823,848

 

 

902,225

 

 

Total stockholders' equity

 

 

1,484,530

 

 

608,737

 

 

Total liabilities and stockholders' equity

 

$

3,259,925

 

$

2,746,765

IDEXX Laboratories, Inc. and Subsidiaries

Selected Balance Sheet Information (Unaudited)

 

 

 

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

Selected Balance Sheet Information:

 

Days sales outstanding 1

 

46.1

 

45.6

 

43.9

 

42.9

 

43.4

 

 

Inventory turns 2

 

1.3

 

1.3

 

1.3

 

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 Laboratories, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows

Amounts in thousands (Unaudited)

 

 

 

 

Twelve Months Ended

 

 

 

 

December 31,

 

December 31,

 

 

 

 

2023

 

2022

Operating:

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net income

 

$

845,042

 

 

$

679,089

 

 

 

Non-cash charges

 

 

133,897

 

 

 

137,425

 

 

 

Changes in assets and liabilities

 

 

(72,429

)

 

 

(273,530

)

 

 

Net cash provided by operating activities

 

 

906,510

 

 

 

542,984

 

Investing:

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(133,631

)

 

 

(148,838

)

 

 

Acquisitions of businesses, intangible assets and equity investment, net of cash acquired

 

 

—

 

 

 

(46,512

)

 

 

Proceeds from net investment hedges

 

 

8,377

 

 

 

—

 

 

 

Net cash used by investing activities

 

 

(125,254

)

 

 

(195,350

)

Financing:

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

(Repayments) borrowings on credit facilities, net

 

 

(329,000

)

 

 

505,500

 

 

 

Payments of senior debt

 

 

(75,000

)

 

 

(75,000

)

 

 

Debt issuance costs

 

 

—

 

 

 

(435

)

 

 

Payment of acquisition-related contingent considerations and holdbacks

 

 

(3,135

)

 

 

(6,431

)

 

 

Repurchases of common stock

 

 

(71,920

)

 

 

(819,711

)

 

 

Proceeds from exercises of stock options and employee stock purchase plans

 

 

47,034

 

 

 

35,747

 

 

 

Shares withheld for statutory tax withholding payments on restricted stock

 

 

(9,975

)

 

 

(10,606

)

 

 

Net cash used by financing activities

 

 

(441,996

)

 

 

(370,936

)

 

 

Net effect of changes in exchange rates on cash

 

 

2,126

 

 

 

(8,606

)

 

 

Net change in cash and cash equivalents

 

 

341,386

 

 

 

(31,908

)

 

 

Cash and cash equivalents, beginning of period

 

 

112,546

 

 

 

144,454

 

 

 

Cash and cash equivalents, end of period

 

$

453,932

 

 

$

112,546

 

IDEXX Laboratories, Inc. and Subsidiaries

Free Cash Flow

Amounts in thousands (Unaudited)

 

 

 

 

Twelve Months Ended

 

 

 

 

December 31,

 

December 31,

 

 

 

 

2023

 

2022

Free Cash Flow:

 

Net cash provided by operating activities

 

$

906,510

 

 

$

542,984

 

 

 

Investing cash flows attributable to purchases of property and equipment

 

 

(133,631

)

 

 

(148,838

)

 

 

Free cash flow 1

 

$

772,879

 

 

$

394,146

 

 

 

 

 

 

 

 

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

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, 2023

 

 

Income from operations (as reported)

$

1,097,128

 

 

 

After-tax income from operations 1

$

873,672

 

 

 

 

 

 

 

Denominator

As of December 31, 2023

 

As of December 31, 2022

Total shareholders’ equity

$

1,484,530

 

 

$

608,737

 

Credit facility

 

250,000

 

 

 

579,000

 

Long-term debt, current portion

 

74,997

 

 

 

74,982

 

Long-term debt, net of current portion

 

622,883

 

 

 

694,387

 

Deferred income tax assets

 

(107,364

)

 

 

(55,215

)

Deferred income tax liabilities

 

7,235

 

 

 

8,150

 

Total invested capital

$

2,332,281

 

 

$

1,910,041

 

Less cash and cash equivalents

 

453,932

 

 

 

112,546

 

Total invested capital, excluding cash and investments

$

1,878,349

 

 

$

1,797,495

 

Average invested capital, excluding cash and investments 2

$

1,837,922

 

 

 

After-tax return on invested capital, excluding cash and investments

 

47.5

%

 

 

 

 

 

 

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,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

Shares repurchased in the open market

 

 

90

 

 

199

 

 

155

 

 

1,963

Shares acquired through employee surrender for statutory tax withholding

 

—

 

—

 

 

20

 

 

21

Total shares repurchased

 

 

90

 

 

199

 

 

175

 

 

1,984

 

 

 

 

 

 

 

 

 

Cost of shares repurchased in the open market

 

$

37,569

 

$

68,281

 

$

72,639

 

$

810,942

Cost of shares for employee surrenders

 

 

67

 

 

54

 

 

9,974

 

 

10,606

Total cost of shares

 

$

37,636

 

$

68,335

 

$

82,613

 

$

821,548

 

 

 

 

 

 

 

 

 

Average cost per share – open market repurchases

 

$

419.72

 

$

342.35

 

$

468.84

 

$

413.12

Average cost per share – employee surrenders

 

$

482.60

 

$

439.17

 

$

503.28

 

$

501.89

Average cost per share – total

 

$

419.82

 

$

342.41

 

$

472.74

 

$

414.06

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240204928472/en/

John Ravis, Investor Relations, 1-207-556-8155