Earnings:
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Thursday February 12, 5:10 pm Eastern Time
Company Press Release
IDEXX Announces Year-End Results
WESTBROOK, Maine--(BUSINESS WIRE)--Feb. 12, 1998--IDEXX Laboratories, Inc.
(NASDAQ:IDXX - news) today reported a net loss of $21,120,000 for the year ended December
31, 1997, or $0.56 per share for both basic and diluted earnings per share, compared to income of
$32,640,000 or $0.88 per share for basic earnings per share and $0.83 per share for diluted
earnings per share for the prior year. Revenues for 1997 decreased 2% to $262,970,000, from
$267,677,000 in 1996. The 1997 results of operations includes a non-recurring operating charge of
$34,500,000, and an additional cost of sales charge of $2,900,000. The non-recurring operating
charge relates to the write-off of in-process research and development associated with the
acquisitions of Professionals' Software, Inc. (PSI) and Advanced Veterinary Systems (AVS) in
1997, the settlement of the patent infringement lawsuit brought by Barnes-Jewish Hospital plus
related legal costs, and other costs associated with the consolidation of certain European operations
and US veterinary operations. The non-recurring operating and additional cost of sales charges total
$0.64 per share after tax for the year ended December 31, 1997.
For the three months ended December 31, 1997, the net loss was $3,092,000, or $0.08 per share
for both basic and diluted earnings per share compared to net income of $9,236,000 or $0.25 per
share for basic earnings per share and $0.23 for diluted earnings per share for the fourth quarter of
1996. The results of operations for the quarter ended December 31, 1997 includes a non-recurring
operating charge of $6,500,000 and an additional cost of sales charge of $2,900,000. The
non-recurring operating charge relates to the finalization of the write-off of in-process research and
development associated with the acquisition of PSI and AVS, discussed above, costs associated
with U.S. workforce reductions, and the closing of certain US facilities. The cost of sales charge
arises from several recent strategic management decisions. The total non-recurring operating and
additional cost of sales charges total $0.14 per share after tax for the quarter ended December 31,
1997.
Revenues for the three months ended December 31, 1997, decreased 4% to $71,819,000, from
$74,565,000 for the same period in 1996.
The decrease in revenues in 1997 compared to 1996 is primarily attributable to decreased sales of
veterinary instruments, feline test products and canine test products. These decreases were offset by
increased sales of veterinary laboratory services, resulting from the 1996 acquisitions of four
veterinary laboratories, the inclusion of revenues from the veterinary practice management software
companies acquired in the first and third quarters of 1997, and increased sales of food and
environmental testing products. International revenue decreased 8% to $83,870,000, or 32% of
total company revenue, in 1997, compared to $91,469,000, or 34% of total company revenue, in
1996.
According to David E. Shaw, Chairman and CEO: ''Our fourth quarter operating results reflect
another positive step forward in returning to more customary performance levels. The management
team is committed in 1998 to an aggressive plan to return IDEXX to levels of profitability consistent
with the outstanding quality of our business franchises. We have taken a series of actions in this
quarter, including the hiring of several key new managers and a commitment to more aggressive
restructuring of certain of our businesses, to help achieve that goal. We are confident in both the near
and longer term potential of IDEXX.''
IDEXX Laboratories, Inc. is a worldwide leader in developing detection and diagnostic products
and services for applications in animal health, food and water quality. The Company sells over 400
products to customers in more than 50 countries. IDEXX is headquartered in Westbrook, Maine.
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This press release contains forward-looking statements that involve a number of risks and
uncertainties. Factors that could cause actual results to differ materially from those reflected in the
forward-looking statements include, but are not limited to, those that are discussed in the Company's
Quarterly Report on Form 10-Q for the quarter ended September 30, 1997, and Annual Report on
Form 10-K for the year ended December 31, 1996, in the section captioned ''Management's
Discussion and Analysis of Financial Condition and Results of Operations.''
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Consolidated Statements of Operations
IDEXX Laboratories, Inc. and Subsidiaries
Amounts in thousands except per share data (Unaudited)
Three Months Ended Year Ended
Dec 31, Dec 31, Dec 31, Dec 31,
1997 1996 1997 1966
Revenue:
Expenses and Income:
Revenue $ 71,819 $ 74,565 $ 262,970 $ 267,677
Cost of revenue 39,599 30,822 134,231 113,271
Sales and marketing 17,570 17,689 73,213 66,949
General and
administrative 10,499 9,229 42,899 28,271
Research and
development 5,086 3,154 17,057 12,195
Non-recurring
operating charge 6,500 -- 34,500 --
Interest income, net 1,577 1,983 6,670 8,331
Income (loss) before
provision for (benefit
of) income tax (5,858) 15,654 (32,260) 55,322
Provision for (benefit
of) income taxes (2,766) 6,418 (11,140) 22,682
Net Income (Loss):
Net income (loss) $ (3,092) $ 9,236 $ (21,120) $ 32,640
Earnings (loss) per
share: Basic $ (0.08) $ 0.25 $ (0.56) $ 0.88
Earnings (loss) per
share: Diluted (0.08) 0.23 (0.56) 0.83
Shares outstanding:
Basic earnings
(loss) per share 38,080 37,678 37,974 37,082
Shares outstanding:
Diluted earnings
(loss) per share 38,080 39,756 37,974 39,519
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Consolidated Balance Sheet
Amounts in thousands (unaudited)
Dec 31, Dec 31,
1997 1996
Assets:
Current Assets
Cash and marketable securities $142,474 $173,637
Receivables 47,341 66,633
Inventories 60,174 48,402
Other current assets 19,520 13,045
Total current assets 269,509 301,717
Long-term investments 11,134 7,255
Property and equipment - net 41,027 36,394
Other non-current assets 55,378 28,486
Total assets $377,048 $373,852
Liabilities and Stockholders' Equity
Current Liabilities $ 74,315 $ 51,127
Stockholders' equity 302,733 322,725
Total liabilities and stockholders' equity $377,048 $373,852
Contact:
IDEXX Laboratories, Inc.
Ralph K. Carlton, (207) 856-8155 |
