IDXX IDEXX Laboratories Inc

• 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

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.

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.

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.

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

 

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.

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.

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

 

2024

 

2023

 

 

 

 

2024

 

2023

 

 

 

Gross Profit (as reported)

 

$

570,660

 

 

$

526,167

 

 

8

%

 

$

2,378,927

 

 

$

2,189,970

 

 

9

%

Gross margin

 

 

59.8

%

 

 

58.4

%

 

140 bps

 

 

61.0

%

 

 

59.8

%

 

120 bps

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

%

 

130 bps

 

 

61.0

%

 

 

59.8

%

 

120 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%

 

20 bps

 

 

29.0

%

 

 

30.0

%

 

-100 bps

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

%

 

60 bps

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.

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

 

 

2024

 

2023

 

 

 

2024

 

2023

 

 

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.

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 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 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 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 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 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 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 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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250202645704/en/

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