IDEXX Laboratories (IDXX) Q4 2011 earnings summary

Executive summary

• FY11 revenue reached $1.219B; operating income was $236.2M and net income attributable to stockholders was $161.8M. Diluted EPS was $2.78.

• Growth was supported by veterinary reference laboratory services, instruments and consumables, and livestock diagnostics; CAG generated 82% of revenue.

Financial highlights

• Revenue rose from $1.103B in 2010 to $1.219B in 2011; reported organic revenue growth was 7.8%.

• Gross profit was $646.5M, or 53.0% of revenue, versus $578.6M, or 52.4%, in 2010; operating income was $236.2M versus $203.9M.

• Net income attributable to stockholders was $161.8M versus $141.3M; diluted EPS was $2.78 versus $2.37.

• Q4 revenue was $307.2M versus $283.8M; operating income was $55.3M versus $50.8M, and diluted EPS was $0.67 versus $0.62.

• Operating cash flow increased to $220.7M from $178.8M; cash and cash equivalents ended FY11 at $183.9M.

Outlook and guidance

• FY12 capital expenditures planned at ~$60M, including ~$11M for headquarters renovation and expansion.

• Interest expense was expected to increase in 2012 versus 2011 following refinancing at higher credit spreads.

• Management was cautiously optimistic that Q4 improvements reflected gradual macroeconomic recovery and could lessen the drag on growth.

• SNAP 4Dx Plus was planned for U.S. launch in Q2 2012, pending USDA approval.