IDEXX Q1 2021 Earnings Highlights

(NASDAQ: IDXX)

Revenue

Operating

Diluted

Profit

Earnings Per Share

$778M

$248M

$2.35

Reported growth:

+24%

31.8% of Revenue

Reported growth:

+82%

Organic growth:

+21%

YoY change in basis points:

CAG Diagnostics Recurring

Reported

+880 bps

Comparable growth:

+73%

Organic Growth:

+23%

Comparable

+830 bps

CAG

Water

LPD

Revenue

$693M

Revenue

$34M

Revenue

$39M

Reported growth:

+26%

Reported growth:

0%

Reported growth:

+15%

Organic growth:

+22%

Organic growth:

-3%

Organic growth:

+9%

Net CAG Revenue

Q1

Reported

Organic

Q1 Premium Instrument

WW

North

Intl

Revenue

Growth

Growth

Placements

America

year over year

year over year

CAG Diagnostics Recurring

$617M

+27%

+23%

Catalyst

1,731

665

1,066

IDEXX VetLab® Consumables

$246M

+30%

+26%

New and competitive

1,107

302

805

Rapid Assay Products

$70M

+21%

+20%

Premium

956

382

574

Hematology

Reference Laboratory Dx and

$276M

+25%

+22%

SediVue® Dx

577

324

253

Consulting Services

CAG Diagnostics Services and

$26M

+20%

+16%

TOTAL

3,264

1,371

1,893

Accessories

CAG Diagnostics Capital - Instruments

$31M

+31%

+27%

Veterinary Software, Services and

$44M

+10%

+9%

Diagnostic Imaging Systems

IDEXX Premium Instruments Installed Base

Catalyst Installed Base

Premium Hematology Installed Base

SediVue Installed Base

(in thousands)

(in thousands)

+ 10%

year over

+ 13%

34.6

35.

year over year

33.6

31.5

32.0

32.4

43.9 45.1

46.0 47.6

49.6 51.0

28.9

29.5

29.8

30.5

8.9

9.3

9.6 10.0

10.7 11.3

38.5 39.8

41.5

26.7

27.4

28.0

6.6

7.1

7.6

8.2

31.1 32.8

35.1 37.0

4.6

5.2

5.9

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2018

2019

2020

2021

2018

2019

2020

2021

2018

2019

2020

2021

For full financial data, non-GAAP reconciliations and cautionary language regarding forward-looking statements, please refer to IDEXX's 2021 first quarter earnings release issued on May 4, 2021 available at https://www.idexx.com/investors. Amounts presented may not recalculate due to rounding.

© 2021 IDEXX Laboratories, Inc. All rights reserved. Contact: John Ravis, Investor Relations (207) 556-8155.

IDEXX Q1 2021 Earnings Highlights (NASDAQ: IDXX)

2021 Growth and Financial Performance Outlook Commentary

  • Increases outlook for 2021 revenue to $3,105 million - $3,160 million, reflecting projected reported revenue growth of 14.5% - 16.5% and organic revenue growth of 13% - 15%, driven by 14.5% - 16% CAG Diagnostics recurring revenue organic growth.
  • Raises 2021 EPS estimate to $7.88 - $8.18, reflecting a targeted operating margin improvement of 270 - 320 basis points as reported and 150 - 200 basis points on a comparable basis. The updated EPS outlook reflects annual EPS growth of 17% - 22% as reported and 21% - 26% on a comparable basis.

Growth and Financial Performance Outlook

2021

Revenue

$3,105

-

$3,160

Reported growth

14.5%

-

17%

Organic growth

13%

-

15%

CAG Diagnostics Recurring Revenue Growth

Reported growth

16%

-

17.5%

Organic growth

14.5%

-

16%

Operating Margin

28.3%

-

28.8%

Reported margin expansion

270 bps

-

320 bps

Comparable margin expansion

150 bps

-

200 bps

EPS

$7.88

-

$8.18

Reported growth

17%

-

22%

Comparable growth

21%

-

26%

Other Key Metrics

Net interest expense

$30

-

$31

Share-based compensation tax benefit

~ $16.5

Effective tax rate

19%

-

20%

Reduction in average shares outstanding

0%

-

0.5%

Operating Cash Flow

100% - 110% of net income

Free Cash Flow

80% - 90% of net income

Capital Expenditures

$120

- $140

Amounts in millions except per share data and percentages

For full financial data, non-GAAP reconciliations and cautionary language regarding forward-looking statements, please refer to IDEXX's 2021 first quarter earnings release issued on May 4, 2021 available at https://www.idexx.com/investors. Amounts presented may not recalculate due to rounding.

© 2021 IDEXX Laboratories, Inc. All rights reserved. Contact: John Ravis, Investor Relations (207) 556-8155.

U.S. Companion Animal Practice Growth Update

Total Practice Revenue and Visit Growth

Weighted Average Year-over-Year % Change Per Practice*

16%

Practice Revenue

14.9%

14%

12.6%

12%

11.2%

10%

6.8%

7.3%7.5%

6.7%

7.8%8.1%

7.3%

6.6%6.4%

8%

5.1%5.4%5.6%5.9%

5.7%5.1%5.8%

Total Visits

6%

4.6%

5.3%5.5%

4.3%4.7%

5.1%

4.7%4.1%

4.1%

4%

4.7%5.1%

2.1%

5.1%

2%

3.9%4.4%

3.4%

3.5%3.0%

4.1%

0%

2.4%

2.5%2.5%2.3%2.5%

2.3%

1.4%1.2%

1.5%1.0%1.6%

1.6%

-2%

0.2%

0.5%0.5%0.6%-0.1%

0.1%0.3%

-4%

-6%

-5.2%

-8%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2014

2015

2016

2017

2018

2019

2020

2021

Clinical Visit Growth

Weighted Average Year-over-Year % Change Per Practice*

Q1 2020 & Q1 2021

Average

18%

16.2%

Wellness Visits

6.7%

13%

10.6%

10.2%

11.7%

Clinical Visits

5.6%

6.6% 8.5%

8%

Non-wellness Visits

8.8%

7.5%

5.0%

3.9%

3.5%

4.1%

3.8%

2.9%

2.5%

2.5%

2.2%

3%

2.1% 1.3%

3.9%

2.6%

3.1%

2.2%

2.0%

2.5%

2.4%

1.7%

1.6%

1.5%

-0.9%

1.8%

1.5%

1.0%

0.6%

0.5%

0.6%

-2%

-0.4%

-2.9%

-2.9%

-7%

-5.7%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2018

2019

2020

2021

Total visits include clinical and non-clinical visits. In 2020, there were an estimated 320 million U.S. total visits. Approximately 70% of estimated U.S. companion animal diagnostic market revenue is from non-wellness visits.

Clinical visits are those where the reason for visit involves an interaction between a clinician and a pet.

Non-wellnessvisits include those for which the reason for visit is sickness, procedure or monitoring.

Wellness visits include those visits for which the reason for visit is an annual exam, vaccination, or routine check-up.

Source: Based on analysis of IDEXX Practice Intelligence data (n = 7,915 practices). Growth rate estimate with margin of error of +/ - 0.4% at a 95% confidence level.

  • Note that we estimate net new practice formation adds ~1% of incremental market growth per year beyond per practice growth.

© 2021 IDEXX Laboratories, Inc. All rights reserved. Contact: John Ravis, Investor Relations (207) 556-8155.

U.S. Diagnostic Utilization Trends

2020 Clinical Visits Including Bloodwork

'Bloodwork' represents chemistry and/ or hematology

% of 2020 Clinical Visits

% of 2020 WellnessClinical Visits % of 2020 Non-wellnessClinical Visits

including Bloodwork

including Bloodwork

including Bloodwork

43%

45%

45%

45%

42%

38%

40%

40%

40%

35%

35%

35%

30%

30%

30%

Mean:

25%

25%

25%

20%

Mean:

20%

20%

23.4%

15%

17.8%

15%

Mean:

15%

10%

10%

10%

5%

5%

9.2%

5%

0%

0%

0%

Bottom

Top Top

Bottom

Top Top

Bottom

Top Top

Decile

Decile 2%

Decile

Decile 2%

Decile

Decile 2%

Deciles of Practices

Deciles of Practices

Deciles of Practices

Bloodwork utilization is defined as chemistry, hematology, or both run on one patient in a clinical visit.

The percentage of clinical visits including bloodwork increased ~1% in 2020, which is

double the rate of annual increases seen in recent years, with year-over-year utilization increases across deciles as highlighted by the light blue pattern-filled areas in the bar chart.

Annual Trending of Clinical Visits Including Bloodwork

'Bloodwork' represents chemistry and/ or hematology

  • of U.S. Clinical Visitsincluding Bloodwork

30%

25%

20%

16.9%

17.8%

16.5%

15%

10%

5%

0%

2018

2019

2020

  • of U.S. WellnessClinical Visits including Bloodwork

30%

25%

20%

15%

10%

8.3%

8.7%

9.2%

5%

0%

2018

2019

2020

  • of U.S. Non-wellnessClinical Visits including Bloodwork

30%

25%

21.9%

22.2%

23.4%

20%

15%

10%

5%

0%

2018

2019

2020

Source: Based on analysis of IDEXX Practice Intelligence data (n = 7,804 practices). 'Clinical visits' are those where the reason for visit involves an interaction between a veterinary clinician and a pet, including wellness and non-wellness visit types. 'Bloodwork' represents chemistry and/ or hematology.

© 2021 IDEXX Laboratories, Inc. All rights reserved. Contact: John Ravis, Investor Relations (207) 556-8155.

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IDEXX Laboratories Inc. published this content on 04 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2021 14:40:02 UTC.