IDEXX(IDXX) - 2024 Q3 - Quarterly Report

Revenue Growth - Total Company revenue for the three months ended September 30, 2024, was $975,543,000, representing a 6.6% increase compared to$ 915,527,000 in the same period of 2023[150]. - Organic revenue growth for the same period was 6.1%, driven by growth in CAG Diagnostics recurring revenue and higher realized prices[150]. - CAG segment revenue increased to $891,990,000, a 6.5% growth from$ 837,160,000 in the prior year, with organic growth at 6.0%[150]. - Water segment revenue in the U.S. grew by 12.9%, reaching $50,162,000, while international revenue increased by 8.5% to$ 23,491,000[150]. - The U.S. market accounted for $638,058,000 of total revenue, reflecting a 5.8% increase from$ 603,046,000 in the prior year[150]. - International revenue reached $337,485,000, an 8.0% increase from$ 312,481,000 in the same period last year[150]. - Total Company revenues increased by 6.7% to $2,943,216,000 for the nine months ended September 30, 2024, compared to$ 2,759,352,000 in 2023[183]. - Revenues for the CAG segment increased by 6.8% to $2,703,573, compared to$ 2,531,091 in 2023[192]. Profitability - Gross profit increased to $596,038,000, with a gross profit margin of 61.1%, up from 59.9% in the previous year, reflecting a 120 basis point improvement[152]. - Gross profit for the Total Company increased by 8.7% to$ 1,808,267,000, with a gross profit margin of 61.4%[183]. - Gross profit for the CAG segment rose by 8.9% to $1,659,768, with a gross profit margin increase of 120 basis points to 61.4%[192]. - Gross profit for the Water segment increased by 9.8% to$ 97,326, with a gross profit margin of 69.5%[195]. - Gross profit for the Livestock, Poultry and Dairy segment decreased by 3.3% to $45,419, with a gross profit margin of 51.9%[199]. - Gross profit for the Other segment increased by 20.5% to$ 2,195,000, with a gross profit margin of 49.9%[175]. Operating Expenses - Operating expenses totaled $292,146,000, a 7.1% increase from$ 272,699,000 in 2023, with research and development expenses rising by 12.5% to $53,978,000[152][153]. - Total operating expenses for the Total Company increased by 16.0% to$ 941,616,000, primarily due to higher general and administrative expenses[184]. - Total operating expenses for the CAG segment increased by 8.7% to $267,379 thousand, with research and development expenses rising by 14.7% to$ 49,920 thousand[163]. - Total operating expenses for the LPD segment increased by 2.3% to $13,738,000, with sales and marketing expenses rising by 15.3%[172]. Segment Performance - CAG Diagnostics recurring revenue grew by 6.7% to$ 783,443,000, driven by higher realized prices and increased volumes[155][156]. - IDEXX VetLab consumables revenue increased by 11.2% to $329,128,000, supported by higher price realization and an expanded menu of tests[155][157]. - Water segment revenues rose by 12.9% to$ 50,162,000, primarily due to higher realized prices and volumes from Colilert test products[166]. - Revenues for the LPD segment decreased by 2.5% to $28,992,000 for the three months ended September 30, 2024, compared to$ 29,747,000 in 2023[170]. - Revenues for the Other segment increased by 5.5% to $4,399,000, driven by higher realized prices of OPTI Medical consumables[174]. Cash Flow and Debt - Cash and cash equivalents as of September 30, 2024, totaled$ 308.6 million, down from $453.9 million at the end of 2023[209][210]. - Net cash provided by operating activities increased by$ 10.3 million to $667.0 million compared to$ 656.7 million in the prior year[213]. - Cash used in investing activities rose to $167.2 million, primarily due to the acquisition of a software business[216]. - Cash used in financing activities increased significantly to$ 645.3 million, driven by $591.0 million in common stock repurchases[218]. - The gross debt amounted to$ 878,834 thousand, with a gross debt to Adjusted EBITDA ratio of 0.67 as of September 30, 2024[228]. - The net debt was reported at $570,198 thousand, resulting in a net debt to Adjusted EBITDA ratio of 0.43[228]. Tax and Compliance - Effective income tax rate increased to 22.1% for the three months ended September 30, 2024, compared to 20.8% in the prior year[178]. - The effective income tax rate for the nine months ended September 30, 2024, was 21.3%, up from 20.8% in the prior year[207]. - The company remitted a final payment of$ 21.8 million for the deemed repatriation tax imposed by the U.S. Tax Cut and Jobs Act of 2017 during Q3 2024[229]. Market Conditions - The company anticipates potential impacts from macroeconomic events, including geopolitical instability and inflation, on its future performance[230]. - The company continues to experience high customer retention rates, supporting revenue growth despite macroeconomic challenges[150].