Idexx Laboratories · Earnings release

FOR IMMEDIATE RELEASE

IDEXX

Laboratories Announces Third Quarter Results

▪

Achieves third quarter revenue growth of 7% as reported and 6% organic, supported by CAG Diagnostics recurring revenue growth of 7% as reported and organic.

▪

Organic revenue growth supported by benefits from IDEXX execution drivers including continued solid new business gains and double-digit year-over-year global premium installed base growth.

▪

Delivers EPS of $2.80, an increase of 11% as reported and 12% on a comparable basis, supported by operating margin expansion of 110 basis points as reported and 100 basis points on a comparable basis.

▪

Adjusts 2024 revenue guidance to $3,865 million - $3,890 million, a reduction of $38 million or ~1% at midpoint, incorporating expectations for near-term negative impacts on growth related to macro and sector conditions constraining pet owner visits and demand at U.S. veterinary clinics.

▪

Updates 2024 revenue growth guidance to 5.5% - 6.2% as reported and 5.3% - 6.0% organic, driven by projected CAG Diagnostics recurring revenue growth of 5.6% - 6.2% as reported and 5.8% - 6.4% organic.

▪

Narrows 2024 EPS outlook to $10.37 - $10.53, maintaining consistent EPS midpoint compared to prior guidance, supported by consistent outlook for solid operating margin performance and benefits from lower projected interest expense and effective tax rate.

WESTBROOK, Maine, October 31, 2024— IDEXX Laboratories,

Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced third quarter results.

Third Quarter Results

The Company reports revenues of $976 million for the third quarter

of 2024, an increase of 7% as reported and 6% organic, driven by Companion Animal Group ("CAG") growth of 7% as reported and

6% organic, and Water revenue growth of 13% as reported and organic. CAG Diagnostics recurring revenue growth of 7% as reported and organic

was supported by sustained double-digit growth in international regions and global benefits from IDEXX execution drivers including 10%

annual growth in IDEXX's global premium instrument installed base. IDEXX veterinary software, services and diagnostic imaging systems

revenue increased 11% as reported and 6% organic, reflecting high recurring revenue growth and continued momentum in cloud-based software

placements.

IDEXX Announces Third Quarter Results

Third quarter earnings per diluted share (“EPS”) were

$2.80, an increase of 11% as reported and 12% on a comparable basis, supported by operating margin expansion of 110 basis points as reported

and 100 basis points on a comparable basis.

“IDEXX teams continued their strong execution in the third quarter

as demonstrated by solid net customer gains, continued growth in our premium IDEXX VetLab® instrument installed base,

and nearly 700 pre-orders of IDEXX inVue Dx™ Cellular Analyzer, which will begin shipping later in the fourth quarter,”

said Jay Mazelsky, President and Chief Executive Officer. "Customers especially value IDEXX technology solutions like inVue Dx that

provide meaningful clinical insights while giving time back to busy practice staff.”

Third Quarter Performance Highlights

Companion Animal Group

The Companion Animal Group generated revenue growth of 7% as reported

and 6% organic for the quarter. Solid growth was supported by CAG Diagnostics recurring revenue growth of 7% as reported and organic.

CAG Diagnostics recurring revenue growth was supported by 10% reported and organic gains in international regions. U.S. CAG Diagnostics

recurring revenue growth of 5% as reported and organic continued to outpace sector growth levels in the third quarter.

Additional U.S. companion animal practice key metrics are available

in the Q3 2024 Earnings Snapshot accessible on the IDEXX website, www.idexx.com/investors.

Solid global growth was achieved across IDEXX's testing modalities.

▪

IDEXX VetLab® consumables generated 11% reported and organic revenue growth, with double-digit gains in the U.S. and International regions supported by strong installed base growth across premium instrument platforms and benefits from equivalent days effects.

▪

Reference laboratory diagnostic and consulting services generated 3% reported and 2% organic revenue growth, driven by solid International growth.

▪

Rapid assay products revenues grew 6% as reported and organic, driven by solid gains in the U.S., including benefits from higher net price realization and equivalent days effects.

Veterinary software, services and diagnostic imaging systems revenues

grew 11% as reported and 6% organically, driven by continued high levels of organic growth in software and diagnostic imaging recurring

revenues and benefits from a recent software and data platform acquisition.

IDEXX Announces Third Quarter Results

Water

Water revenues grew 13% as reported and organic for the quarter, reflecting

double-digit gains in the U.S. and continued solid growth in Europe.

Livestock, Poultry and Dairy (“LPD”)

LPD revenues declined 3% as reported and 2% organic for the quarter.

Solid gains in the U.S. and for poultry tests globally were offset by lower Asia Pacific revenues, including impacts from reduced swine

testing and herd health screening levels.

Gross Profit and Operating Profit

Gross profits increased 9% as reported and on a comparable basis.

Gross margin of 61.1% increased 120 basis points as reported and 140 basis points on a comparable basis supported by benefits from business

mix, led by high growth in IDEXX VetLab consumable revenues and veterinary software, services, and diagnostic imaging recurring revenues

and lower instrument costs.

Operating margin was 31.2% for the quarter, higher than the prior

year by 110 basis points as reported and 100 basis points on a comparable basis. Operating margin results reflect 7% operating expense

growth as reported and 8% on a comparable basis. Operating expense growth was driven by higher sales and marketing expense and higher

R&D spend related to advancing the Company's growth and innovation agenda.

2024 Growth and Financial Performance Outlook

The Company is updating its full year revenue growth guidance range

to $3,865 million - $3,890 million, or reported growth of 5.5% - 6.2%, a reduction of $38 million at midpoint. This reflects an adjustment

of ~1.5% at midpoint to full year estimates for organic revenue growth, which is now projected at 5.3% - 6.0%, reflecting recent trends

in U.S. clinical visit and demand levels. The updated guidance range includes ~$15 million of favorable impact from more recent foreign

exchange estimates.

The Company maintained a consistent full year reported operating margin

outlook of 28.7% - 29.0%, including ~160 basis points of impact related to the previously reported discrete litigation expense accrual.

At midpoint, projected full year comparable operating profit margin expansion of 70 - 100 basis points includes a ~40 basis point negative

growth impact from lapping a customer contract resolution payment in the first quarter of 2023.

The Company narrowed its EPS outlook range to $10.37 - $10.53, maintaining

a consistent midpoint. 2024 EPS results include a $0.56 negative impact from a discrete litigation expense accrual recorded in the second

quarter. Negative EPS impacts related to adjustments to the organic revenue outlook were offset by $0.02 in favorable adjustments to

foreign exchange estimates and favorable refinements to interest expense and effective tax rate estimates. The updated EPS growth outlook

is 3% - 5% as reported and 10% - 11% on comparable basis, including a ~2% negative growth impact from lapping a customer contract resolution

payment in the first quarter of 2023.

IDEXX Announces Third Quarter Results

The following table provides the Company's updated outlook for annual

key financial metrics in 2024 with a comparison to the prior outlook:

Amounts in millions except per share data and percentages

2024 Growth and Financial Performance Outlook

Updated

Prior

G1Revenue

Reported growth

Organic growth

CAG Diagnostics Recurring Revenue Growth

G2Reported growth

G3Organic growth

G4Operating Margin

Operating margin expansion

Negative impact of ongoing litigation matter

Comparable margin expansion

Negative impact of 2023 customer contract resolution payment

G5EPS

Reported growth

Negative impact of ongoing litigation matter

~6%

~6%

Comparable growth

Negative impact of 2023 customer contract resolution payment

~2%

~2%

Other Key Metrics

G6Net interest expense

Share-based compensation tax benefit

~$9

Share-based compensation tax rate benefit

~1%

~1%

G7Effective tax rate

Share-based compensation EPS impact

Reduction in average shares outstanding

Operating Cash Flow (% of Net Income)

Free Cash Flow (% of Net Income)

G8Capital Expenditures

IDEXX Announces Third Quarter Results

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 2024.

Estimated Foreign Currency Exchange Rate Impacts

Revenue growth rate impact

CAG Diagnostics recurring revenue growth rate impact

Operating margin growth impact

~ 0 bps

EPS impact

EPS growth impact

~ 0%

Go-Forward Foreign Currency Exchange Rate Assumptions

In U.S. dollars

euro

$

British pound

$

Canadian dollar

$

Australian dollar

$

Relative to the U.S. dollar

Japanese yen

¥

Chinese renminbi

¥

Brazilian real

Conference Call and Webcast Information

IDEXX Laboratories, Inc. will be hosting a conference call today at

8:30 a.m. (EDT) to discuss its third quarter 2024 results and management’s outlook. 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. The live call also will be accessible by

telephone. To listen to the live conference call, please dial 1-800-289-0462 or 1-323-794-2442 and reference passcode 205740.

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 approximately 11,000 people and offers solutions and products to customers in more

than 175 countries and territories. For more information about IDEXX, visit www.idexx.com.

IDEXX Announces Third Quarter Results

Note Regarding Forward-Looking Statements

This earnings release and the statements to be made in the accompanying

earnings conference call contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including

statements about the Company’s business prospects and estimates of the Company’s financial results for future periods. Forward-looking

statements are included above under "Third Quarter Results", "2024 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; projected effective tax rates (including benefit from an expected release of a non-recurring tax

reserve), reduction of average shares outstanding and net interest expense; U.S. clinical visit trends, including macro and sector trends

affecting pet owner visits and demand at U.S. veterinary clinics; net price realization improvement; anticipated benefits from corporate

account contract expansions; projected impact of recent severe weather events; software placement and user-base growth; and future product

and service launches and expansions. 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, 2023 and in the corresponding sections of the Company's

Quarterly Reports on Form 10-Q for the quarter ended March 31, 2024, June 30, 2024, and September 30, 2024, 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 third quarter 2024 results as follows: decreased gross profit growth by 0.2%, decreased

gross margin growth by 20 basis points, decreased operating expense growth by 0.8%, increased operating profit growth by 0.4%, increased

operating profit margin growth by 10 basis points, and increased EPS growth by 0.4%. 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 and

nine months ended September 30, 2024 and refer to the 2024 Growth and Financial Performance Outlook section of this earnings release

for estimated foreign currency exchange rate impacts on 2024 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 and nine months ended September 30, 2024. Please refer to the constant

currency note above for a summary of foreign currency exchange rate impacts. Please refer to the 2024 Growth and Financial Performance

Outlook section of this earnings release for estimated full year 2024 organic revenue growth for the Company and CAG Diagnostics recurring

revenue growth. 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 expected to benefit projected full year 2024 revenue growth by 0.4% and

have no impact on CAG Diagnostics recurring revenue growth.

IDEXX Announces Third Quarter Results

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

Nine Months Ended

Year-over-Year

Dollar amounts in thousands

Change

Change

Gross Profit (as reported)

$

$

9

%

$

$

9

%

Gross margin

%

%

%

%

Less: comparability adjustments

Change from currency

)

—

)

—

Comparable gross profit growth

$

$

9

%

$

$

9

%

Comparable gross margin and gross margin gain (or growth)

%

%

%

%

Operating expenses (as reported)

$

$

7

%

$

$

%

Less: comparability adjustments

Change from currency

)

—

)

—

Ongoing litigation matter

—

—

—

Comparable operating expense growth

$

$

8

%

$

$

9

%

Income from operations (as reported)

$

$

%

$

$

2

%

Operating margin

%

%

%

%

Less: comparability adjustments

Change from currency

—

)

—

Ongoing litigation matter

—

—

)

—

Comparable operating profit growth

$

$

%

$

$

9

%

Comparable operating margin and operating margin gain (or growth)

%

%

%

%

Amounts presented may

not recalculate due to rounding.

Projected 2024 comparable operating margin expansion outlined in the

2024 Growth and Financial Performance Outlook section of this earnings release reflects: (i) projected full year 2024 reported operating

margin is adjusted for impacts of the discrete expense accrual related to an ongoing litigation matter in the second quarter of 2024;

and (ii) projected full year 2024 reported operating margin includes an immaterial impact from year-over-year foreign currency exchange

rate changes at noted exchange rates.

These impacts described above reconcile reported gross profit growth,

gross margin gain, operating expense growth, operating profit growth and operating margin gain (including projected 2024 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.

IDEXX Announces Third Quarter Results

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

Nine Months Ended

Year-over-Year

Growth

Growth

Earnings per share (diluted)

$

$

%

$

$

4

%

Less: comparability adjustments

Share-based compensation activity

—

Ongoing litigation matter

—

—

)

—

Change from currency

—

)

—

Comparable EPS growth

%

%

Amounts presented may

not recalculate due to rounding.

Projected 2024 comparable EPS growth outlined in the 2024 Growth and

Financial Performance Outlook section of this earnings release reflects adjustments to projected full year 2024 reported EPS for: (i)

estimated positive share-based compensation activity of ~$0.11; (ii) a negative $0.56 impact from a discrete expense accrual related

to an ongoing litigation matter in the second quarter of 2024; and (iii) estimated negative year-over-year foreign currency exchange

rate change impact of ~$0.03 at noted exchange rates.

These impacts and those described in the constant currency note above

reconcile reported EPS growth (including projected 2024 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

and nine months ended September 30, 2024 and 2023. To estimate projected 2024 free cash flow, we have deducted projected purchases of

property and equipment (also referred to as capital expenditures) of approximately $160 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 September 30, 2024, we have deducted purchases of property and equipment of approximately $124 million from net cash provided from

operating activities of approximately $917 million, divided by net income of approximately $866 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, 2023 and Quarterly Report on Form 10-Q for

IDEXX Announces Third Quarter Results

Notes and Definitions

Discrete litigation expense accrual - During the second quarter

of 2024, the Company increased its previously established $27.5 million accrual related to an ongoing litigation matter by $61.5 million.

Ongoing litigation matter - The Company is a defendant in an

ongoing litigation matter involving an alleged breach of contract for underpayment of royalty payments made from 2004 through 2017 under

an expired patent license agreement. The Company's total accrual of $89.0 million for this matter includes the discrete $61.5 million

litigation expense accrual recorded in the second quarter of 2024 and represents our best estimate of the amount of the probable loss.

The actual loss associated with this matter may be higher or lower than the accrued amount depending on the ultimate outcome of this

matter. For further information, see the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.

IDEXX Announces Third Quarter Results

IDEXX Laboratories, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations

Amounts in thousands except per share

data (Unaudited)

Three Months Ended

Nine Months Ended

Revenue:

Revenue

$

$

$

$

Expenses and Income:

Cost of revenue

Gross profit

Sales and marketing

General and administrative

Research and development

Income from operations

Interest expense, net

)

)

)

)

Income before provision for income taxes

Provision for income taxes

Net Income:

Net income attributable to stockholders

$

$

$

$

Earnings per share: Basic

$

$

$

$

Earnings per share: Diluted

$

$

$

$

Shares outstanding: Basic

Shares outstanding: Diluted

IDEXX

Laboratories, Inc. and Subsidiaries

Selected

Operating Information (Unaudited)

Three Months Ended

Nine Months Ended

Operating Ratios

Gross profit

%

%

%

%

(as a percentage of revenue):

Sales, marketing, general and administrative expense

%

%

%

%

Research and development expense

%

%

%

%

Income from operations1

%

%

%

%

1Amounts

presented may not recalculate due to rounding.

IDEXX Announces Third Quarter Results

IDEXX

Laboratories, Inc. and Subsidiaries

Segment

Information

Amounts

in thousands (Unaudited)

Three Months Ended

Percent of

Revenue

Percent of

Revenue

Revenue:

CAG

$

$

Water

LPD

Other

Total

$

$

Gross Profit:

CAG

$

%

$

%

Water

%

%

LPD

%

%

Other

%

%

Total

$

%

$

%

Income from Operations:

CAG

$

%

$

%

Water

%

%

LPD

%

%

Other

%

)

)%

Total

$

%

$

%

Nine Months Ended

Percent of

Revenue

Percent of

Revenue

Revenue:

CAG

$

$

Water

LPD

Other

Total

$

$

Gross Profit:

CAG

$

%

$

%

Water

%

%

LPD

%

%

Other

%

%

Total

$

%

$

%

Income from Operations:

CAG

$

%

$

%

Water

%

%

LPD

%

%

Other

%

)

)%

Total

$

%

$

%

IDEXX Announces Third Quarter Results

IDEXX

Laboratories, Inc. and Subsidiaries

Revenues

and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets

Amounts

in thousands (Unaudited)

Three Months Ended

Reported

Percentage

Percentage

Organic

Dollar

Revenue

Change from

Change from

Revenue

Net Revenue

Change

Growth1

Currency

Acquisitions

Growth1

CAG

$

$

$

%

%

%

%

United States

%

—

%

%

International

%

%

—

%

Water

%

)%

—

%

United States

%

—

—

%

International

%

)%

—

%

LPD

)

)%

)%

—

)%

United States

%

—

—

%

International

)

)%

)%

—

)%

Other

%

—

—

%

Total Company

$

$

$

%

%

%

%

United States

%

—

%

%

International

%

%

—

%

Three Months Ended

Reported

Percentage

Percentage

Organic

Dollar

Revenue

Change from

Change from

Revenue

Net CAG Revenue

Change

Growth1

Currency

Acquisitions

Growth1

CAG Diagnostics recurring revenue:

$

$

$

%

%

—

%

IDEXX VetLab consumables

%

%

—

%

Rapid assay products

%

)%

—

%

Reference laboratory diagnostic and consulting services

%

%

—

%

CAG Diagnostics services and accessories

%

%

—

%

CAG Diagnostics capital – instruments

)

)%

%

—

)%

Veterinary software, services and diagnostic imaging systems:

%

%

%

%

Recurring revenue

%

%

%

%

Systems and hardware

)

)%

—

—

)%

Net CAG revenue

$

$

$

%

%

%

%

Three Months Ended

Reported

Percentage

Percentage

Organic

Dollar

Revenue

Change from

Change from

Revenue

Change

Growth1

Currency

Acquisitions

Growth1

CAG Diagnostics recurring revenue:

$

$

$

%

%

—

%

United States

%

—

—

%

International

%

%

—

%

1See

Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding.

IDEXX Announces Third Quarter Results

IDEXX

Laboratories, Inc. and Subsidiaries

Revenues

and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets

Amounts

in thousands (Unaudited)

Nine Months Ended

Reported

Percentage

Percentage

Organic

Dollar

Revenue

Change from

Change from

Revenue

Net Revenue

Change

Growth1

Currency

Acquisitions

Growth1

CAG

$

$

$

%

)%

%

%

United States

%

—

%

%

International

%

)%

—

%

Water

%

)%

—

%

United States

%

—

—

%

International

%

)%

—

%

LPD

)

)%

)%

—

)%

United States

%

—

—

%

International

)

)%

)%

—

)%

Other

)

)%

—

—

)%

Total Company

$

$

$

%

)%

%

%

United States

%

—

%

%

International

%

)%

—

%

Nine Months Ended

Reported

Percentage

Percentage

Organic

Dollar

Revenue

Change from

Change from

Revenue

Net CAG Revenue

Change

Growth1

Currency

Acquisitions

Growth1

CAG Diagnostics recurring revenue:

$

$

$

%

)%

—

%

IDEXX VetLab consumables

%

)%

—

%

Rapid assay products

%

)%

—

%

Reference laboratory diagnostic and consulting services

%

)%

—

%

CAG Diagnostics services and accessories

%

)%

—

%

CAG Diagnostics capital – instruments

)

)%

)%

—

)%

Veterinary software, services and diagnostic imaging systems:

%

—

%

%

Recurring revenue

%

—

%

%

Systems and hardware

)

)%

)%

—

)%

Net CAG revenue

$

$

$

%

)%

%

%

Nine Months Ended

Reported

Percentage

Percentage

Organic

Dollar

Revenue

Change from

Change from

Revenue

Change

Growth1

Currency

Acquisitions

Growth1

CAG Diagnostics recurring revenue:

$

$

$

%

)%

—

%

United States

%

—

—

%

International

%

)%

—

%

1See

Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding.

IDEXX Announces Third Quarter Results

IDEXX

Laboratories, Inc. and Subsidiaries

Condensed

Consolidated Balance Sheet

Amounts

in thousands (Unaudited)

Assets:

Current Assets:

Cash and cash equivalents

$

$

Accounts receivable, net

Inventories

Other current assets

Total current assets

Property and equipment, net

Other long-term assets, net

Total assets

$

$

Liabilities and Stockholders' Equity:

Current Liabilities:

Accounts payable

$

$

Accrued liabilities

Line of credit

Current portion of long-term debt

Deferred revenue

Total current liabilities

Long-term debt, net of current portion

Other long-term liabilities, net

Total long-term liabilities

Total stockholders' equity

Total liabilities and stockholders' equity

$

$

IDEXX

Laboratories, Inc. and Subsidiaries

Selected

Balance Sheet Information (Unaudited)

Selected Balance Sheet Information:

Days sales outstanding1

Inventory turns2

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 are calculated as the ratio of four times our inventory-related cost of product revenue for the quarter, divided by the average

inventory balances at the beginning and end of each quarter.

IDEXX Announces Third Quarter Results

IDEXX

Laboratories, Inc. and Subsidiaries

Condensed

Consolidated Statement of Cash Flows

Amounts

in thousands (Unaudited)

Nine Months Ended

Operating:

Cash Flows from Operating Activities:

Net income

$

$

Non-cash adjustments to net income

Changes in assets and liabilities

)

)

Net cash provided by operating activities

Investing:

Cash Flows from Investing Activities:

Purchases of property and equipment

)

)

Acquisition of a business

)

—

Proceeds from net investment hedges

Net cash used by investing activities

)

)

Financing:

Cash Flows from Financing Activities:

Repayments under credit facility, net

—

)

Payments of senior notes

)

—

Payments for the acquisition-related holdbacks

—

)

Repurchases of common stock

)

)

Proceeds from exercises of stock options and employee stock purchase plans

Shares withheld for statutory tax withholding payments on restricted stock

)

)

Net cash used by financing activities

)

)

Net effect of changes in exchange rates on cash

)

Net (decrease) increase in cash and cash equivalents

)

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

$

$

IDEXX

Laboratories, Inc. and Subsidiaries

Free

Cash Flow

Amounts

in thousands (Unaudited)

Three Months Ended

Nine Months Ended

Free Cash Flow:

Net cash provided by operating activities

$