Idexx laboratories announces first quarter results
Westbrook, maine--(business wire)--idexx laboratories, inc. (nasdaq: idxx), a global leader in pet healthcare innovation, today announced first quarter results. first quarter results the company reports revenues of $900 million for the first quarter of 2023, an increase of 8% reported and 10% organic, driven by companion animal group ("cag") diagnostics recurring revenue growth of 9% reported and 12% organic. first quarter results were supported by continued solid demand for veterinary services and benefits from strong idexx execution, reflected in 14% reported and organic growth in u.s. cag diagnostics recurring revenues and double-digit organic gains across idexx's major testing modalities. idexx innovation and commercial engagement drove record first quarter global premium instrument placements, supporting 11% annual growth in idexx's global premium instrument installed base. veterinary software, services and diagnostic imaging systems revenue grew 13% as reported and 14% organically, reflecting high growth in recurring revenues and continued strong quarterly placements of cloud-based software solutions. overall first quarter revenue gains were also supported by water revenue growth of 7% reported and 8% organic. first quarter earnings per diluted share (“eps”) were $2.55, an increase of 12% as reported and 18% on a comparable basis, reflecting solid gross margin gains and benefits from a $16 million customer contract resolution payment. eps results included $0.06 per share in tax benefits from share-based compensation, and $0.11 per share negative impact from currency changes. "strong execution by idexx commercial and operational teams drove excellent growth results and financial performance in the first quarter," said jay mazelsky, president and chief executive officer. "commercial engagement and idexx innovations are supporting our customers as they work to address growing demand for pet healthcare. idexx's ongoing focus on addressing the needs of veterinary clinics is aligned with developing the long-term global growth opportunity for companion animal diagnostics.” first quarter performance highlights companion animal group the companion animal group generated revenue growth of 9% reported and 11% organic for the quarter. strong growth performance was supported by cag diagnostics recurring revenue growth of 9% on a reported basis and 12% organically. u.s. cag diagnostics organic recurring revenue growth of 14% remained solidly above sector growth levels in the first quarter, reflected in a 1,350 basis point growth premium to u.s. same store clinical visit growth. additional u.s. companion animal practice key metrics are available in the q1 2023 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 9% reported and 12% organic revenue growth, with strong gains across u.s. and international regions supported by benefits from higher net price realization and an expanded global premium instrument installed base. reference laboratory diagnostic and consulting services generated 10% reported and 11% organic revenue growth, driven by strong gains in the u.s. and moderate overall growth in international regions. international growth was constrained by pressure on same-store clinical visit levels, reflecting ongoing macro-economic impacts. rapid assay products revenues grew 10% as reported and 12% organically, driven by strong growth in the u.s. reflecting solid volume gains and benefits from higher net price realization. veterinary software, services and diagnostic imaging systems revenues grew 13% as reported and 14% organically, supported by double-digit organic gains in recurring software and digital imaging revenues. strong demand for cloud-based products continues to support momentum in software solution placements and customer gains. water water revenues grew 7% on a reported basis and 8% on an organic basis for the quarter, reflecting solid volume gains in the u.s. and key international regions, including benefits from net price improvement. livestock, poultry and dairy (“lpd”) lpd revenues declined 5% as reported and 2% organically for the quarter, as solid gains in the u.s. and europe were offset by comparison to high prior year herd health screening levels and reduced revenues from non-core food and safety products in certain regions. gross profit and operating profit gross profits increased 9% as reported and 12% on a comparable basis. gross margin of 60.3% increased 70 basis points as reported and 120 basis points on a comparable basis. benefits from net price gains, lab productivity initiatives, improvement in software service gross margins and business mix offset inflationary effects. operating margin was 31.1% in the quarter, 150 basis points higher than the prior year as reported and 210 basis points higher on a comparable basis, reflecting gross margin gains and benefits from a $16 million customer contract resolution payment. operating expense grew 5% as reported and 7% on a comparable basis, net of a ~6% favorable growth rate impact from the customer contract resolution payment. operating expense growth was driven by higher levels of sales and marketing spending, including impacts from the return of in-person sales meetings, and r&d investments. 2023 growth and financial performance outlook the company is updating its full year revenue growth outlook range to 7.5% - 10% as reported and organically. this reflects consistent goals for organic revenue growth at the high end and an increase of 0.5% at the low end. the overall reported revenue range was also increased by $10 million, or ~0.5%, for updated foreign exchange effects. the company refined its full year reported operating margin outlook to 29.0% - 29.5%. the operating margin guidance range includes an estimated 60 basis points in year-over-year unfavorable net margin impact from updated foreign currency exchange rate changes, ~10 basis points higher than earlier estimates. the company's eps outlook range of $9.33 - $9.75 maintains a consistent high end estimate and raises the low end by $0.06 to reflect the factors noted above. this includes a consistent outlook for $0.23 of full year impact from foreign exchange changes, primarily related to lapping 2022 hedge gains. the following table provides the company's updated outlook for annual key financial metrics in 2023: amounts in millions except per share data and percentages growth and financial performance outlook 2023 revenue $3,615 - $3,700 reported growth 7.5% - 10% organic growth 7.5% - 10% cag diagnostics recurring revenue growth reported growth 9% - 11% organic growth 9% - 11% operating margin 29.0% - 29.5% operating margin expansion 230 bps - 280 bps negative impact of foreign exchange ~ 60 bps comparable margin expansion 290 bps - 340 bps positive impact of discrete in-license of technology and customer contract resolution ~ 280 bps eps $9.33 - $9.75 reported growth 16% - 22% comparable growth 20% - 26% other key metrics net interest expense ~ $43 share-based compensation tax benefit ~ $8 share-based compensation tax rate benefit ~ 1% effective tax rate 21.5% - 22% share-based compensation eps impact ~ $0.10 reduction in average shares outstanding 0.5 % - 1% operating cash flow 100% - 110% of net income free cash flow 80% - 90% of net income capital expenditures ~ $180 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 2023. estimated foreign currency exchange rate impacts 2023 revenue growth rate impact (~ 20 bps) cag diagnostics recurring revenue growth rate impact (~ 20 bps) operating margin growth impact (~ 60 bps) eps impact (~ $0.23) eps growth impact (~ 3%) go-forward foreign currency exchange rate assumptions 2023 in u.s. dollars euro $1.08 british pound $1.23 canadian dollar $0.73 australian dollar $0.66 relative to the u.s. dollar japanese yen ¥135 chinese renminbi ¥6.99 brazilian real r$5.14 conference call and webcast information idexx laboratories, inc. will be hosting a conference call today at 8:30 a.m. (edt) to discuss its first quarter 2023 results and management’s outlook. to participate in the conference call, dial 1-800-776-0420 or 1-323-794-2442 and reference passcode 217879. individuals can access a live webcast of the conference call through a link on the idexx website, www.idexx.com/investors. an archived edition of the webcast will be available after 1:00 p.m. (edt) on that day via the same link and will remain available for one year. 2023 annual meeting of shareholders idexx laboratories, inc. will hold its 2023 annual meeting of shareholders (the “2023 annual meeting”) on wednesday, may 17, 2023 at 10:00 a.m. (edt). the 2023 annual meeting will be a virtual meeting via a live audio webcast at www.virtualshareholdermeeting.com/idxx2023. the online pre-meeting forum can be accessed before the 2023 annual meeting at www.proxyvote.com for beneficial owners and www.proxyvote.com/idxx for registered shareholders. at this online pre-meeting forum, you can submit questions in writing in advance of the 2023 annual meeting, vote, view the rules of conduct and procedures relating to the 2023 annual meeting and access copies of the company's proxy materials and annual report. shareholders as of the close of business on march 20, 2023 are entitled to attend the 2023 annual meeting, vote their shares electronically and submit questions before and during the live audio webcast. as part of the 2023 annual meeting, the company will answer the questions submitted by our shareholders during a live q&a session, as time permits. the company will publish the answer to each question, including any for which there is not sufficient time to address during the 2023 annual meeting, on the company’s investor relations website as soon as practicable after the meeting. an archived replay will also be available at www.virtualshareholdermeeting.com/idxx2023 after the conclusion of the 2023 annual meeting and will remain available for one year. further information on the 2023 annual meeting can be found in the company’s proxy materials. 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 nearly 11,000 people and offers solutions and products to customers in more than 175 countries. for more information about idexx, visit www.idexx.com. note regarding forward-looking statements this earnings release contains statements about the company’s business prospects and estimates of the company’s financial results for future periods that are forward-looking statements as defined in the private securities litigation reform act of 1995. forward-looking statements are included above under "2023 growth and financial performance outlook" and elsewhere 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 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; and projected effective tax rates, reduction of average shares outstanding and net interest expense. 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, 2022 and in the corresponding sections of the company's quarterly report on form 10-q for the quarter ended march 31, 2023, 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 first quarter 2023 results as follows: decreased gross profit growth by 3%, decreased gross margin growth by 50 basis points, decreased operating expense growth by 2%, decreased operating profit growth by 5%, decreased operating profit margin growth by 60 basis points, and decreased eps growth by 5%. 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 ended march 31, 2023 and refer to the 2023 growth and financial performance outlook section of this earnings release for estimated foreign currency exchange rate impacts on 2023 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 percent 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 months ended march 31, 2023. please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. please refer to the 2023 growth and financial performance outlook section of this earnings release for estimated full year 2023 organic revenue growth for the company and cag diagnostics recurring revenue. 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 not expected to have an impact on projected full year 2023 revenue growth or cag diagnostics recurring revenue growth. 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 march 31 march 31 change dollar amounts in thousands 2023 2022 gross profit (as reported) $ 542,971 $ 498,753 9 % gross margin 60.3 % 59.6 % 70 bps less: comparability adjustments change from currency (15,826 ) — comparable gross profit growth $ 558,797 $ 498,753 12 % comparable gross margin and gross margin gain (or growth) 60.8 % 59.6 % 120 bps operating expenses (as reported) $ 262,572 $ 250,409 5 % less: comparability adjustments change from currency (4,182 ) — comparable operating expense growth $ 266,754 $ 250,409 7 % income from operations (as reported) $ 280,399 $ 248,344 13 % operating margin 31.1 % 29.7 % 150 bps less: comparability adjustments change from currency (11,644 ) — comparable operating profit growth $ 292,043 $ 248,344 18 % comparable operating margin and operating margin gain (or growth) 31.8 % 29.7 % 210 bps amounts presented may not recalculate due to rounding. projected 2023 comparable operating margin expansion outlined in the 2023 growth and financial performance outlook section of this earnings release reflects projected full year 2023 reported operating margin adjusted for estimated positive year-over-year foreign currency exchange rate change impact of approximately 60 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 2023 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 march 31 march 31 growth 2023 2022 earnings per share (diluted) $ 2.55 $ 2.27 12 % less: comparability adjustments share-based compensation activity 0.06 0.06 change from currency (0.11 ) — comparable eps growth 2.60 2.21 18 % amounts presented may not recalculate due to rounding. projected 2023 comparable eps growth outlined in the 2023 growth and financial performance outlook section of this earnings release reflects adjustments including estimated positive share-based compensation activity of $0.10 and estimated negative year-over-year foreign currency exchange rate change impact of $0.23. these impacts and those described in the constant currency note above reconcile reported eps growth (including projected 2023 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 three months ended march 31, 2023 and 2022. to estimate projected 2023 free cash flow, we have deducted projected purchases of property and equipment (also referred to as capital expenditures) of approximately $180 million. 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 trailing twelve-month net income to free cash flow ratio for the twelve months ended march 31, 2023, we have deducted purchases of property and equipment of approximately $157 million from net cash provided from operating activities of approximately $612 million, divided by net income of approximately $699 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 annual report on form 10-k for the year ended december 31, 2022 and quarterly report on form 10-q for the quarter ended march 31, 2023. idexx laboratories, inc. and subsidiaries condensed consolidated statement of operations amounts in thousands except per share data (unaudited) three months ended march 31 march 31 2023 2022 revenue: revenue $900,195 $836,549 expenses and income: cost of revenue 357,224 337,796 gross profit 542,971 498,753 sales and marketing 147,804 132,292 general and administrative 70,101 77,949 research and development 44,667 40,168 income from operations 280,399 248,344 interest expense, net (12,711 ) (6,853 ) income before provision for income taxes 267,688 241,491 provision for income taxes 53,634 47,526 net income: net income attributable to stockholders 214,054 193,965 earnings per share: basic $2.58 $2.30 earnings per share: diluted $2.55 $2.27 shares outstanding: basic 82,992 84,410 shares outstanding: diluted 83,959 85,564 idexx laboratories, inc. and subsidiaries selected operating information (unaudited) three months ended march 31 march 31 2023 2022 operating ratios gross profit 60.3% 59.6% (as a percentage of revenue): sales, marketing, general and administrative expense 24.2% 25.1% research and development expense 5.0% 4.8% income from operations1 31.1% 29.7% 1amounts presented may not recalculate due to rounding. segment information amounts in thousands (unaudited) three months ended march 31, 2023 percent of revenue march 31, 2022 percent of revenue revenue: cag $827,279 $761,184 water 38,883 36,371 lpd 29,208 30,870 other 4,825 8,124 total $900,195 $836,549 gross profit: cag $498,757 60.3 % $449,099 59.0 % water 27,268 70.1 % 25,737 70.8 % lpd 15,053 51.5 % 19,547 63.3 % other 1,893 39.2 % 4,370 53.8 % total $542,971 60.3 % $498,753 59.6 % income from operations: cag $261,750 31.6 % $223,125 29.3 % water 16,971 43.6 % 16,654 45.8 % lpd 1,308 4.5 % 6,737 21.8 % other 370 7.7 % 1,828 22.5 % total $280,399 31.1 % $248,344 29.7 % revenues and revenue growth analysis by product and service categories and by domestic and international markets amounts in thousands (unaudited) three months ended net revenue march 31, 2023 march 31, 2022 dollar change reported revenue growth1 percentage change from currency percentage change from acquisitions organic revenue growth1 cag $827,279 $761,184 $66,095 8.7 % (2.2 %) — 10.9 % united states 564,527 499,766 64,761 13.0 % — — 13.0 % international 262,752 261,418 1,334 0.5 % (6.2 %) — 6.8 % water 38,883 36,371 2,512 6.9 % (2.9 %) 1.6 % 8.2 % united states 19,920 17,831 2,089 11.7 % — — 11.7 % international 18,963 18,540 423 2.3 % (5.5 %) 3.2 % 4.6 % lpd 29,208 30,870 (1,662 ) (5.4 %) (3.8 %) — (1.6 %) united states 4,543 3,860 683 17.7 % — — 17.7 % international 24,665 27,010 (2,345 ) (8.7 %) (4.2 %) — (4.5 %) other 4,825 8,124 (3,299 ) (40.6 %) (0.1 %) — (40.5 %) total company $900,195 $836,549 $63,646 7.6 % (2.3 %) 0.1 % 9.8 % united states 590,413 525,906 64,507 12.3 % — — 12.3 % international 309,782 310,643 (861 ) (0.3 %) (5.9 %) 0.2 % 5.5 % three months ended net cag revenue march 31, 2023 march 31, 2022 dollar change reported revenue growth1 percentage change from currency percentage change from acquisitions organic revenue growth1 cag diagnostics recurring revenue: $726,902 $664,810 $62,092 9.3 % (2.3 %) — 11.6 % idexx vetlab consumables 291,114 267,173 23,941 9.0 % (3.0 %) — 11.9 % rapid assay products 82,032 74,519 7,513 10.1 % (1.4 %) — 11.5 % reference laboratory diagnostic and consulting services 323,180 295,075 28,105 9.5 % (1.9 %) — 11.4 % cag diagnostics services and accessories 30,576 28,043 2,533 9.0 % (3.1 %) — 12.1 % cag diagnostics capital – instruments 33,144 36,997 (3,853 ) (10.4 %) (2.9 %) — (7.5 %) veterinary software, services and diagnostic imaging systems 67,233 59,377 7,856 13.2 % (0.8 %) — 14.0 % net cag revenue $827,279 $761,184 $66,095 8.7 % (2.2 %) — 10.9 % three months ended march 31, 2023 march 31, 2022 dollar change reported revenue growth1 percentage change from currency percentage change from acquisitions organic revenue growth1 cag diagnostics recurring revenue: $726,902 $664,810 $62,092 9.3 % (2.3 %) — 11.6 % united states $491,340 $432,502 $58,838 13.6 % — — 13.6 % international $235,562 $232,308 $3,254 1.4 % (6.4 %) — 7.8 % 1see statements regarding non-gaap financial measures, above. amounts presented may not recalculate due to rounding. condensed consolidated balance sheet amounts in thousands (unaudited) march 31, 2023 december 31, 2022 assets: current assets: cash and cash equivalents $111,367 $112,546 accounts receivable, net 446,025 400,619 inventories 391,011 367,823 other current assets 201,043 220,489 total current assets 1,149,446 1,101,477 property and equipment, net 665,439 649,474 other long-term assets, net 993,513 995,814 total assets $2,808,398 $2,746,765 liabilities and stockholders' equity: current liabilities: accounts payable $117,709 $110,221 accrued liabilities 403,595 433,662 line of credit 431,500 579,000 current portion of long-term debt 74,986 74,982 deferred revenue 37,839 37,938 total current liabilities 1,065,629 1,235,803 long-term debt, net of current portion 696,362 694,387 other long-term liabilities, net 205,306 207,838 total long-term liabilities 901,668 902,225 total stockholders' equity 841,101 608,737 total liabilities and stockholders' equity $2,808,398 $2,746,765 idexx laboratories, inc. and subsidiaries select balance sheet information (unaudited) march 31, 2023 december 31, 2022 september 30, 2022 june 30, 2022 march 31, 2022 selected balance sheet information: days sales outstanding1 42.9 43.4 43.4 43.2 42.0 inventory turns2 1.3 1.3 1.3 1.5 1.6 1days 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. 2inventory 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. condensed consolidated statement of cash flows amounts in thousands (unaudited) three months ended march 31, 2023 march 31, 2022 operating: cash flows from operating activities: net income $214,054 $193,965 non-cash adjustments to net income 40,467 34,983 changes in assets and liabilities (70,609 ) (114,242 ) net cash provided by operating activities 183,912 114,706 investing: cash flows from investing activities: purchases of property and equipment (39,511 ) (31,838 ) acquisition of intangible assets, businesses and equity investment — (10,000 ) net cash used by investing activities (39,511 ) (41,838 ) financing: cash flows from financing activities: (repayments) borrowings under credit facility, net (147,500 ) 326,500 payment of senior debt — (75,000 ) payments for the acquisition-related holdbacks (1,780 ) — repurchases of common stock — (266,295 ) proceeds from exercises of stock options and employee stock purchase plans 12,796 11,653 shares withheld for statutory tax withholding payments on restricted stock (9,597 ) (10,338 ) net cash used by financing activities (146,081 ) (13,480 ) net effect of changes in exchange rates on cash 501 776 net decrease in cash and cash equivalents (1,179 ) 60,164 cash and cash equivalents, beginning of period 112,546 144,454 cash and cash equivalents, end of period $111,367 $204,618 idexx laboratories, inc. and subsidiaries free cash flow amounts in thousands except per share data (unaudited) three months ended march 31, 2023 march 31, 2022 free cash flow: net cash provided by operating activities $183,912 $114,706 investing cash flows attributable to purchases of property and equipment (39,511 ) (31,838 ) free cash flow1 $144,401 $82,868 1see statements regarding non-gaap financial measures, above. common stock repurchases amounts in thousands except per share data (unaudited) three months ended march 31, 2023 march 31, 2022 shares repurchased in the open market — 502 shares acquired through employee surrender for statutory tax withholding 19 21 total shares repurchased 19 523 cost of shares repurchased in the open market — $262,783 cost of shares for employee surrenders $9,597 $10,338 total cost of shares $9,597 $273,121 average cost per share – open market repurchases — $523.04 average cost per share – employee surrenders $503.65 $505.53 average cost per share – total $503.65 $522.36
