Thu, May 1, 8:14 PM (16 days ago)
**IDEXX Laboratories, Inc. (IDXX) - Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $998.4 million, up 3.6% year-over-year (YoY), with organic growth of 4.7%. - **Gross Profit:** $623.4 million, a 5.1% increase, with a gross margin of 62.4%. - **Operating Expenses:** $306.8 million, up 4.3%, with increased investments in sales, marketing, and R&D. - **Net Income:** $242.7 million, a 3.0% increase, with an effective tax rate of 21.7%. - **Earnings per Share (EPS):** $2.98 basic and $2.96 diluted. **Cash Flow:** - **Operating Cash Flow:** $238.0 million, a $39.4 million increase YoY. - **Investing Cash Flow:** -$29.6 million, significantly improved from -$106.9 million YoY. - **Financing Cash Flow:** -$330.3 million, increased from -$144.1 million YoY due to higher share repurchases. **Segment Performance:** - **Companion Animal Group (CAG):** Revenue up 3.4%, driven by higher realized prices and volumes. - **Water:** Revenue up 5.2%, due to price increases and volume growth. - **Livestock, Poultry and Dairy (LPD):** Revenue up 1.4%, with higher prices and volumes in the Americas. - **Other:** Revenue up 32.3%, primarily from higher volumes of OPTI Medical consumables and instruments. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** $164.0 million, down from $288.3 million in Q4 2024. - **Credit Facility:** $319.5 million outstanding, with $928.6 million available. - **Debt:** $620.9 million in long-term debt, with a net debt to Adjusted EBITDA ratio of 0.58. **Future Operations and Uncertainties:** - **Guidance:** Full-year capital expenditure plan of approximately $160.0 million. - **Risks:** Geopolitical instability, economic uncertainty, tariff and trade policy changes, and inflationary pressures. - **Hedging:** Foreign currency and interest rate hedges in place to manage risks. **Management Discussion:** - **Strategy:** Focus on organic growth, strategic acquisitions, and shareholder returns through share repurchases. - **Outlook:** Positive trends in CAG and Water segments, with continued investment in R&D and marketing. **Trends and Uncertainties:** - **Currency Impact:** Strengthening U.S. dollar negatively impacts international revenues. - **Inflation:** Higher costs for labor, commodities, and transportation. - **Market Risks:** Interest rate and foreign currency exchange rate fluctuations. **Future Operations Impact:** - **Growth Initiatives:** Continued investment in technology, product development, and market expansion. - **Cost Management:** Efforts to offset inflationary pressures through productivity initiatives and price increases.