IDEXX(US:IDXX)2024-05-01 20:13Revenue Performance - Total Company revenue for the three months ended March 31, 2024, was $964.1 million, representing a 7.1% increase from $900.2 million in the same period of 2023[137]. - The Companion Animal Group (CAG) revenue increased by 7.5% to $889.3 million, with organic revenue growth of 7.2% driven by higher volumes and realized prices[137]. - Water segment revenue grew by 10.8% to $43.1 million, with organic revenue growth of 10.6% attributed to price increases and higher volumes in the U.S. and international markets[137]. - Livestock, Poultry, and Dairy (LPD) segment revenue decreased by 3.4% to $28.2 million, with a decline in diagnostic test volumes in China partially offset by higher prices in the U.S. and Europe[137]. - U.S. revenue for the total company was $631.0 million, a 6.9% increase from $590.4 million, while international revenue rose by 7.5% to $333.1 million[137]. - Organic revenue growth for the same period was 6.8%, driven by growth in CAG Diagnostics recurring revenue and higher volumes globally[138]. Profitability - Gross profit increased to $593.1 million, with a gross profit margin of 61.5%, up from 60.3% in the prior year, due to a favorable sales mix and lower instrument costs[140]. - Gross profit for the CAG segment rose to $546,236 thousand, representing a gross profit margin of 61.4%, up from 60.3% in the previous year[150]. - CAG Diagnostics recurring revenue grew by 7.3% to $780,144 thousand, driven by higher realized prices and volumes[144][145]. - IDEXX VetLab consumables revenue increased by 8.9% to $316,929 thousand, supported by an expanded installed base and test menu[144][146]. Operating Expenses - Operating expenses rose to $294.1 million, representing 30.5% of revenue, with significant increases in general and administrative expenses by 31.3%[140]. - Operating expenses for the CAG segment totaled $266,540 thousand, an increase of 12.5% compared to $237,007 thousand in 2023[150]. - Total operating expenses across segments increased due to higher personnel-related costs and project expenses, with significant increases in general and administrative expenses[151][155][159]. Cash Flow and Investments - Cash and cash equivalents decreased to $397.4 million as of March 31, 2024, from $453.9 million as of December 31, 2023[167]. - Net cash provided by operating activities increased by $14.7 million to $198.6 million in Q1 2024 compared to Q1 2023[171]. - Cash used in investing activities rose to $106.9 million in Q1 2024 from $39.5 million in Q1 2023, mainly due to the acquisition of a software business[173]. - Total capital expenditure outlook for 2024 is approximately $180 million, focusing on growth in manufacturing and customer-facing software development[174]. - Cash used in financing activities was $144.1 million in Q1 2024, a slight decrease from $146.1 million in Q1 2023, attributed to no net borrowings under the Credit Facility this year[175]. Debt and Financial Ratios - The gross debt to Adjusted EBITDA ratio was 0.73 as of March 31, 2024, indicating strong leverage management[183]. - The company had $998.5 million of remaining borrowing availability under its $1.25 billion Credit Facility as of March 31, 2024[166]. - The total debt as of March 31, 2024, was $945,776,000, with a gross debt to Adjusted EBITDA ratio of 0.73[183]. - The net debt was reported at $553,317,000, resulting in a net debt to Adjusted EBITDA ratio of 0.42[183]. - The company was in compliance with its financial covenant, which requires a consolidated leverage ratio not to exceed 3.5-to-1[183]. Future Outlook - Future outlook includes expectations for continued growth in CAG Diagnostics and Water segments, with ongoing investments in research and development[138]. - The company anticipates continued growth in recurring revenue streams and demand for subscription-based software in the CAG segment[138]. - Future performance may be influenced by macroeconomic conditions, including geopolitical instability and supply chain challenges[121].