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IDEXX Laboratories, Inc. (IDXX) Announces Second Quarter Results 10/19/2005 5:09:04 PM WESTBROOK, Maine, July 29 /PRNewswire-FirstCall/ -- IDEXX Laboratories, Inc. , today reported that revenue for the second quarter of 2005 increased 17% to $160.6 million from $137.4 million for the second quarter of 2004. Earnings per diluted share for the quarter ended June 30, 2005 were $0.59, compared to $0.66 for the same period in the prior year. Earnings per diluted share for the quarter were $0.01 above the guidance of $0.56 to $0.58 per share given by the Company upon announcement of its first quarter results. During the quarter ended June 30, 2004, the Company's earnings per diluted share included a net benefit of $0.07 resulting from (i) a reduction in the Company's provision for income taxes primarily related to the completion of an IRS audit through the year 2001, (ii) a reduction in the estimated liability for a third party claim, and (iii) a payment received in settlement of certain litigation. During the quarter ended June 30, 2005, the Company incurred acquisition integration costs of $0.01 per diluted share associated with the acquisitions of Vet Med Lab and Dr. Bommeli AG in the fourth quarter of 2004. Excluding the effects of these discrete costs in the second quarters of 2005 and 2004, adjusted earnings per diluted share grew approximately 2%. Companion Animal Group (CAG) revenue for the second quarter of 2005 increased 17% to $131.3 million from $112.7 million for the second quarter of 2004. This increase resulted primarily from increased sales of laboratory and consulting services, instruments and consumables, and, to a lesser extent, rapid assay products, and computer systems and digital radiography. The increase in laboratory and consulting services revenue was due, in part, to the inclusion of sales from laboratories acquired during 2004 and 2005, which contributed approximately 7% to CAG revenue growth during the quarter. The favorable impact of foreign currency contributed 1% to CAG revenue growth. Water segment revenue for the second quarter increased 10% to $14.3 million from $13.0 million for the second quarter of 2004 primarily due to higher sales volume. The favorable impact of foreign currency contributed 2% to Water revenue growth. Food Diagnostics Group (FDG) revenue for the second quarter increased 29% to $15.0 million from $11.6 million for the second quarter of 2004. This increase reflects growth in the production animal products business due to sales from businesses acquired in 2004 and higher sales volume of existing product lines. In addition, the impact of foreign currency contributed 3% to FDG revenue growth. "Our second quarter financial performance was essentially in-line with our expectations and plan," said Jonathan Ayers, Chairman and CEO. "The revenue increase was driven by sales from European businesses acquired in late 2004, as well as by organic growth from several lines of business, including laboratory services, instruments and consumables, and production animal products. As anticipated, several factors caused our net income to fall below net income for the 2004 period. Some of these factors were discrete items applicable to both the 2004 and 2005 periods, and others reflect investments we are making to drive long-term growth." Year-to-date results Year-to-date revenue increased 16% to $313.1 million from $270.8 million for the same period in 2004. Year-to-date earnings per diluted share were $1.10, compared to $1.14 for the same period in the prior year. Excluding the effects of the tax, third party claim and litigation related items in the six months ended June 30, 2004, discussed above, and integration costs incurred in the six months ended June 30, 2005 of $0.03 per diluted share, adjusted earnings per diluted share increased 6%. Companion Animal Group (CAG) revenue for the six months ended June 30, 2005 increased 15% to $256.2 million from $222.6 million. This increase resulted primarily from increased sales of laboratory and consulting services, instruments and consumables, and, to a lesser extent, rapid assay products, pharmaceutical products, and computer systems and digital radiography. The favorable impact of currency contributed 1% to year-to-date CAG revenue growth. Water segment revenue for the six months ended June 30, 2005 increased 9% to $27.1 million from $24.9 million primarily due to higher worldwide sales volume. The favorable impact of foreign currency contributed 2% to year-to- date Water revenue growth. Food Diagnostics Group (FDG) revenue for the six months ended June 30, 2005 increased 27% to $29.8 million from $23.4 million for the same period in 2004. This increase reflects growth in the production animal products business due to sales from businesses acquired in 2004 and higher sales volume of existing product lines. The favorable impact of foreign currency contributed 3% to FDG revenue growth. Outlook The Company offers the following guidance for the third quarter of 2005: * Revenue is expected to be approximately $155 to $157 million. * Diluted earnings per share are expected to be approximately $0.57 to $0.59, which includes approximately $0.01 of anticipated acquisition integration costs. The Company offers the following guidance for the full year of 2005: * Revenue is expected to be approximately $625 to $630 million. The reduction from the Company's prior guidance of $630 to $640 million is substantially the result of the strengthening of the U.S. dollar against major international currencies. * Diluted earnings per share are expected to be approximately $2.26 to $2.29, which includes approximately $0.05 of anticipated acquisition integration costs. This is an increase of $0.01 from the Company's prior guidance due to the performance in the second quarter. About IDEXX Laboratories IDEXX Laboratories, Inc. is a leader in companion animal health, serving practicing veterinarians around the world with innovative, technology-based offerings, including a broad range of diagnostic products and services, practice-management systems and therapeutics. Our products enhance the ability of veterinarians to provide advanced medical care and to build more economically successful practices. IDEXX is also a worldwide leader in providing diagnostic tests and information for the production animal industry and tests for the quality and safety of water and milk. Headquartered in Westbrook, Maine, IDEXX Laboratories employs more than 3,000 people and offers products to customers in over 100 countries. Note Regarding Forward-Looking Statements This press 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. These statements are based on management's expectations of future events as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments. Actual results could differ materially from management's expectations. Factors that could cause or contribute to such differences include the following: the Company's ability to develop, manufacture, introduce and market new products and enhancements to existing products; the effectiveness of the Company's sales and marketing activities; the Company's ability to develop, license or obtain rights to new technologies; the Company's ability to identify acquisition opportunities, complete acquisitions and integrate acquired businesses; the impact of competition and technological change on the markets for the Company's products; the effect of government regulation on the Company's business, including government decisions about whether and when to approve the Company's products and decisions regarding labeling, manufacturing and marketing products; the impact of distributor purchasing decisions on sales of our products that are sold through distribution; changes or trends in veterinary medicine that affect the rate of use of the Company's products and services by veterinarians; the Company's ability to obtain patent and other intellectual property protection for its products, successfully enforce its intellectual property rights and defend itself against third party claims against the Company; disruptions, shortages or pricing changes that affect the Company's purchases of products and materials from third parties, including from sole source suppliers; the effects of government regulatory decisions, customer demand, pricing and other factors on the realizability of the Company's inventories; the Company's ability to manufacture complex biologic products; the effects of operations outside the U.S., including from currency fluctuations, different regulatory, political and economic conditions, and different market conditions; and the loss of key employees. A further description of these and other factors can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2004 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2005, in the section captioned "Management's Discussion and Analysis of Financial Condition and Results of Operations. Contact: Merilee Raines, Chief Financial Officer, (207) 856-8155 IDEXX Laboratories, Inc. and Subsidiaries Consolidated Statement of Operations Amounts in thousands except per share data (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 Revenue: Revenue $160,630 $137,379 $313,056 $270,796 Expenses and Income: Cost of revenue 80,055 65,377 156,401 131,748 Gross profit 80,575 72,002 156,655 139,048 Sales and marketing 25,848 20,679 50,918 41,662 General and administrative 15,846 11,583 30,944 23,825 Research and development 9,995 8,685 19,769 17,205 Income from operations 28,886 31,055 55,024 56,356 Interest income, net 871 756 1,374 1,485 Income before provision for income taxes and partner's interest 29,757 31,811 56,398 57,841 Partner's share of consolidated loss 110 73 211 206 Provision for income taxes 9,934 7,974 18,986 16,346 Net Income: Net income $19,933 $23,910 $37,623 $41,701 Earnings per share: Basic $0.61 $0.69 $1.15 $1.20 Earnings per share: Diluted $0.59 $0.66 $1.10 $1.14 Shares outstanding: Basic 32,627 34,584 32,790 34,679 Shares outstanding: Diluted 34,060 36,423 34,250 36,447 IDEXX Laboratories, Inc. and Subsidiaries Key Operating Ratios (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 Key Operating Ratios (as a percentage of revenue): Gross profit 50.2% 52.4% 50.0% 51.3% Sales, marketing, general and administrative expense 26.0% 23.5% 26.1% 24.1% Research and development expense 6.2% 6.3% 6.3% 6.4% Income from operations 18.0% 22.6% 17.6% 20.8% International Revenue: International revenue 35.7% 30.7% 35.4% 31.0% IDEXX Laboratories, Inc. and Subsidiaries Segment Information Amounts in thousands (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 Revenue: Companion Animal Group $131,332 $112,731 $256,212 $222,561 Water 14,271 13,004 27,077 24,858 Food Diagnostics Group 15,027 11,644 29,767 23,377 Total $160,630 $137,379 $313,056 $270,796 Gross Profit: Companion Animal Group $62,825 $56,109 $122,088 $108,185 Water 9,622 8,748 18,099 16,741 Food Diagnostics Group 8,128 7,145 16,468 14,122 Total $80,575 $72,002 $156,655 $139,048 Income from Operations: Companion Animal Group $21,411 $23,461 $40,299 $41,709 Water 6,540 5,972 12,044 11,027 Food Diagnostics Group 1,760 2,397 4,338 5,320 Other (825) (775) (1,657) (1,700) Total $28,886 $31,055 $55,024 $56,356 Gross Profit (as a percentage of revenue): Companion Animal Group 47.8% 49.8% 47.7% 48.6% Water 67.4% 67.3% 66.8% 67.3% Food Diagnostics Group 54.1% 61.4% 55.3% 60.4% Income from Operations (as a percentage of revenue): Companion Animal Group 16.3% 20.8% 15.7% 18.7% Water 45.8% 45.9% 44.5% 44.4% Food Diagnostics Group 11.7% 20.6% 14.6% 22.8% IDEXX Laboratories, Inc. and Subsidiaries Revenues by Product and Service Categories Amounts in thousands (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 Net CAG Revenue: Instruments and consumables $53,045 $48,424 $105,918 $97,235 Rapid assay products 27,397 26,172 52,149 50,417 Laboratory and consulting services 40,367 28,472 76,911 55,577 Computer systems and digital radiography 7,199 6,591 14,660 13,919 Pharmaceutical products 3,324 3,072 6,574 5,413 Net CAG revenue 131,332 112,731 256,212 222,561 Net Water Revenue: Water 14,271 13,004 27,077 24,858 Net FDG Revenue: Production animal products 10,956 7,585 21,818 15,483 Dairy-testing products 4,071 4,059 7,949 7,894 Net FDG revenue 15,027 11,644 29,767 23,377 Net Revenue: $160,630 $137,379 $313,056 $270,796 IDEXX Laboratories, Inc. and Subsidiaries Consolidated Balance Sheet Amounts in thousands (Unaudited) June 30, December 31, 2005 2004 Assets: Current Assets: Cash and cash equivalents $52,354 $47,156 Short-term investments 78,603 90,116 Accounts receivable, net 73,139 65,639 Inventories 81,765 76,424 Other current assets 21,470 22,257 Total current assets 307,331 301,592 Long-term Investments 7,583 19,687 Property and equipment -- cost 143,082 137,851 Less: accumulated depreciation 79,361 75,221 Property and equipment, net 63,721 62,630 Other long-term assets, net 121,615 130,328 Total assets $500,250 $514,237 Liabilities and Stockholders' Equity: Current Liabilities: Accounts payable $16,193 $14,723 Accrued expenses 68,093 73,785 Notes payable 531 1,291 Deferred revenue 8,434 10,153 Total current liabilities 93,251 99,952 Total long-term liabilities 14,538 16,233 Partner's interest in subsidiary 232 392 Stockholders' Equity: Common stock 4,559 4,522 Additional paid-in capital 423,825 410,817 Deferred equity-based compensation 1,231 665 Retained earnings 356,305 318,682 Treasury stock, at cost (398,718) (348,327) Accumulated other comprehensive income 5,027 11,301 Total stockholders' equity 392,229 397,660 Total liabilities and stockholders' equity $500,250 $514,237 IDEXX Laboratories, Inc. and Subsidiaries Key Balance Sheet Statistics (Unaudited) June 30, December 31, 2005 2004 Key Balance Sheet Statistics: Days sales outstanding 42 39 Inventory turns 1.8 1.9 IDEXX Laboratories, Inc. and Subsidiaries Consolidated Statement of Cash Flows Amounts in thousands (Unaudited) Six Months Ended June 30, June 30, 2005 2004 Operating: Cash Flows from Operating Activities: Net income $37,623 $41,701 Non-cash charges 14,251 17,043 Changes in current assets and liabilities, net of acquisitions and disposals (13,789) (14,848) Net cash provided by operating activities $38,085 $43,896 Investing: Cash Flows from Investing Activities: (Increase) decrease in investments, net 23,586 (268) Purchase of property and equipment (10,508) (17,676) Acquisition of businesses and intangible assets (659) (5,392) Acquisition of equipment leased to customers (1,278) (1,230) Net cash provided (used) by investing activities $11,141 $(24,566) Financing: Cash Flows from Financing Activities: Repayments of notes payable (1,270) (304) Purchase of treasury stock (50,391) (58,070) Proceeds from the exercise of stock options 9,461 16,910 Net cash used by financing activities $(42,200) $(41,464) Net effect of exchange rate changes (1,828) 76 Net increase (decrease) in cash and cash equivalents 5,198 (22,058) Cash and cash equivalents, beginning of period 47,156 186,717 Cash and cash equivalents, end of period $52,354 $164,659 IDEXX Laboratories, Inc. and Subsidiaries Free Cash Flow (Unaudited) Six Months Ended June 30, June 30, 2005 2004 Free Cash Flow: Net cash provided by operating activities $38,085 $43,896 Purchase of property and equipment (10,508) (17,676) Acquisition of equipment leased to customers (1,278) (1,230) Free cash flow $26,299 $24,990 Free cash flow indicates the cash generated from operations reduced by investments in capital and other long-term assets. Free cash flow excludes financing activities, investments in monetary securities, and business acquisitions and divestitures. We feel 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 fixed assets that are required to operate the business. We believe this is a common financial measure useful to further evaluate the results of operations. Photo: http://www.newscom.com/cgi-bin/prnh/20030305/IDEXXLOGOAP Archive: http://photoarchive.ap.orgPRN Photo Desk photodesk@prnewswire.comIDEXX Laboratories, Inc. CONTACT: Merilee Raines, Chief Financial Officer of IDEXX Laboratories,Inc., +1-207-856-8155 Web site: http://www.idexx.com//

IDEXX Laboratories, Inc. (IDXX) Announces Second Quarter Results
10/19/2005 5:09:04 PM

WESTBROOK, Maine, July 29 /PRNewswire-FirstCall/ -- IDEXX Laboratories, Inc. , today reported that revenue for the second quarter of 2005 increased 17% to $160.6 million from $137.4 million for the second quarter of 2004. Earnings per diluted share for the quarter ended June 30, 2005 were $0.59, compared to $0.66 for the same period in the prior year. Earnings per diluted share for the quarter were $0.01 above the guidance of $0.56 to $0.58 per share given by the Company upon announcement of its first quarter results.

During the quarter ended June 30, 2004, the Company's earnings per diluted share included a net benefit of $0.07 resulting from (i) a reduction in the Company's provision for income taxes primarily related to the completion of an IRS audit through the year 2001, (ii) a reduction in the estimated liability for a third party claim, and (iii) a payment received in settlement of certain litigation. During the quarter ended June 30, 2005, the Company incurred acquisition integration costs of $0.01 per diluted share associated with the acquisitions of Vet Med Lab and Dr. Bommeli AG in the fourth quarter of 2004. Excluding the effects of these discrete costs in the second quarters of 2005 and 2004, adjusted earnings per diluted share grew approximately 2%.

Companion Animal Group (CAG) revenue for the second quarter of 2005 increased 17% to $131.3 million from $112.7 million for the second quarter of 2004. This increase resulted primarily from increased sales of laboratory and consulting services, instruments and consumables, and, to a lesser extent, rapid assay products, and computer systems and digital radiography. The increase in laboratory and consulting services revenue was due, in part, to the inclusion of sales from laboratories acquired during 2004 and 2005, which contributed approximately 7% to CAG revenue growth during the quarter. The favorable impact of foreign currency contributed 1% to CAG revenue growth.

Water segment revenue for the second quarter increased 10% to $14.3 million from $13.0 million for the second quarter of 2004 primarily due to higher sales volume. The favorable impact of foreign currency contributed 2% to Water revenue growth.

Food Diagnostics Group (FDG) revenue for the second quarter increased 29% to $15.0 million from $11.6 million for the second quarter of 2004. This increase reflects growth in the production animal products business due to sales from businesses acquired in 2004 and higher sales volume of existing product lines. In addition, the impact of foreign currency contributed 3% to FDG revenue growth.

"Our second quarter financial performance was essentially in-line with our expectations and plan," said Jonathan Ayers, Chairman and CEO. "The revenue increase was driven by sales from European businesses acquired in late 2004, as well as by organic growth from several lines of business, including laboratory services, instruments and consumables, and production animal products. As anticipated, several factors caused our net income to fall below net income for the 2004 period. Some of these factors were discrete items applicable to both the 2004 and 2005 periods, and others reflect investments we are making to drive long-term growth."

Year-to-date results

Year-to-date revenue increased 16% to $313.1 million from $270.8 million for the same period in 2004. Year-to-date earnings per diluted share were $1.10, compared to $1.14 for the same period in the prior year. Excluding the effects of the tax, third party claim and litigation related items in the six months ended June 30, 2004, discussed above, and integration costs incurred in the six months ended June 30, 2005 of $0.03 per diluted share, adjusted earnings per diluted share increased 6%.

Companion Animal Group (CAG) revenue for the six months ended June 30, 2005 increased 15% to $256.2 million from $222.6 million. This increase resulted primarily from increased sales of laboratory and consulting services, instruments and consumables, and, to a lesser extent, rapid assay products, pharmaceutical products, and computer systems and digital radiography. The favorable impact of currency contributed 1% to year-to-date CAG revenue growth.

Water segment revenue for the six months ended June 30, 2005 increased 9% to $27.1 million from $24.9 million primarily due to higher worldwide sales volume. The favorable impact of foreign currency contributed 2% to year-to- date Water revenue growth.

Food Diagnostics Group (FDG) revenue for the six months ended June 30, 2005 increased 27% to $29.8 million from $23.4 million for the same period in 2004. This increase reflects growth in the production animal products business due to sales from businesses acquired in 2004 and higher sales volume of existing product lines. The favorable impact of foreign currency contributed 3% to FDG revenue growth.

Outlook The Company offers the following guidance for the third quarter of 2005: * Revenue is expected to be approximately $155 to $157 million. * Diluted earnings per share are expected to be approximately $0.57 to $0.59, which includes approximately $0.01 of anticipated acquisition integration costs. The Company offers the following guidance for the full year of 2005: * Revenue is expected to be approximately $625 to $630 million. The reduction from the Company's prior guidance of $630 to $640 million is substantially the result of the strengthening of the U.S. dollar against major international currencies. * Diluted earnings per share are expected to be approximately $2.26 to $2.29, which includes approximately $0.05 of anticipated acquisition integration costs. This is an increase of $0.01 from the Company's prior guidance due to the performance in the second quarter. About IDEXX Laboratories

IDEXX Laboratories, Inc. is a leader in companion animal health, serving practicing veterinarians around the world with innovative, technology-based offerings, including a broad range of diagnostic products and services, practice-management systems and therapeutics. Our products enhance the ability of veterinarians to provide advanced medical care and to build more economically successful practices. IDEXX is also a worldwide leader in providing diagnostic tests and information for the production animal industry and tests for the quality and safety of water and milk. Headquartered in Westbrook, Maine, IDEXX Laboratories employs more than 3,000 people and offers products to customers in over 100 countries.

Note Regarding Forward-Looking Statements

This press 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. These statements are based on management's expectations of future events as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments. Actual results could differ materially from management's expectations. Factors that could cause or contribute to such differences include the following: the Company's ability to develop, manufacture, introduce and market new products and enhancements to existing products; the effectiveness of the Company's sales and marketing activities; the Company's ability to develop, license or obtain rights to new technologies; the Company's ability to identify acquisition opportunities, complete acquisitions and integrate acquired businesses; the impact of competition and technological change on the markets for the Company's products; the effect of government regulation on the Company's business, including government decisions about whether and when to approve the Company's products and decisions regarding labeling, manufacturing and marketing products; the impact of distributor purchasing decisions on sales of our products that are sold through distribution; changes or trends in veterinary medicine that affect the rate of use of the Company's products and services by veterinarians; the Company's ability to obtain patent and other intellectual property protection for its products, successfully enforce its intellectual property rights and defend itself against third party claims against the Company; disruptions, shortages or pricing changes that affect the Company's purchases of products and materials from third parties, including from sole source suppliers; the effects of government regulatory decisions, customer demand, pricing and other factors on the realizability of the Company's inventories; the Company's ability to manufacture complex biologic products; the effects of operations outside the U.S., including from currency fluctuations, different regulatory, political and economic conditions, and different market conditions; and the loss of key employees. A further description of these and other factors can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2004 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2005, in the section captioned "Management's Discussion and Analysis of Financial Condition and Results of Operations.

Contact: Merilee Raines, Chief Financial Officer, (207) 856-8155 IDEXX Laboratories, Inc. and Subsidiaries Consolidated Statement of Operations Amounts in thousands except per share data (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 Revenue: Revenue $160,630 $137,379 $313,056 $270,796 Expenses and Income: Cost of revenue 80,055 65,377 156,401 131,748 Gross profit 80,575 72,002 156,655 139,048 Sales and marketing 25,848 20,679 50,918 41,662 General and administrative 15,846 11,583 30,944 23,825 Research and development 9,995 8,685 19,769 17,205 Income from operations 28,886 31,055 55,024 56,356 Interest income, net 871 756 1,374 1,485 Income before provision for income taxes and partner's interest 29,757 31,811 56,398 57,841 Partner's share of consolidated loss 110 73 211 206 Provision for income taxes 9,934 7,974 18,986 16,346 Net Income: Net income $19,933 $23,910 $37,623 $41,701 Earnings per share: Basic $0.61 $0.69 $1.15 $1.20 Earnings per share: Diluted $0.59 $0.66 $1.10 $1.14 Shares outstanding: Basic 32,627 34,584 32,790 34,679 Shares outstanding: Diluted 34,060 36,423 34,250 36,447 IDEXX Laboratories, Inc. and Subsidiaries Key Operating Ratios (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 Key Operating Ratios (as a percentage of revenue): Gross profit 50.2% 52.4% 50.0% 51.3% Sales, marketing, general and administrative expense 26.0% 23.5% 26.1% 24.1% Research and development expense 6.2% 6.3% 6.3% 6.4% Income from operations 18.0% 22.6% 17.6% 20.8% International Revenue: International revenue 35.7% 30.7% 35.4% 31.0% IDEXX Laboratories, Inc. and Subsidiaries Segment Information Amounts in thousands (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 Revenue: Companion Animal Group $131,332 $112,731 $256,212 $222,561 Water 14,271 13,004 27,077 24,858 Food Diagnostics Group 15,027 11,644 29,767 23,377 Total $160,630 $137,379 $313,056 $270,796 Gross Profit: Companion Animal Group $62,825 $56,109 $122,088 $108,185 Water 9,622 8,748 18,099 16,741 Food Diagnostics Group 8,128 7,145 16,468 14,122 Total $80,575 $72,002 $156,655 $139,048 Income from Operations: Companion Animal Group $21,411 $23,461 $40,299 $41,709 Water 6,540 5,972 12,044 11,027 Food Diagnostics Group 1,760 2,397 4,338 5,320 Other (825) (775) (1,657) (1,700) Total $28,886 $31,055 $55,024 $56,356 Gross Profit (as a percentage of revenue): Companion Animal Group 47.8% 49.8% 47.7% 48.6% Water 67.4% 67.3% 66.8% 67.3% Food Diagnostics Group 54.1% 61.4% 55.3% 60.4% Income from Operations (as a percentage of revenue): Companion Animal Group 16.3% 20.8% 15.7% 18.7% Water 45.8% 45.9% 44.5% 44.4% Food Diagnostics Group 11.7% 20.6% 14.6% 22.8% IDEXX Laboratories, Inc. and Subsidiaries Revenues by Product and Service Categories Amounts in thousands (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 Net CAG Revenue: Instruments and consumables $53,045 $48,424 $105,918 $97,235 Rapid assay products 27,397 26,172 52,149 50,417 Laboratory and consulting services 40,367 28,472 76,911 55,577 Computer systems and digital radiography 7,199 6,591 14,660 13,919 Pharmaceutical products 3,324 3,072 6,574 5,413 Net CAG revenue 131,332 112,731 256,212 222,561 Net Water Revenue: Water 14,271 13,004 27,077 24,858 Net FDG Revenue: Production animal products 10,956 7,585 21,818 15,483 Dairy-testing products 4,071 4,059 7,949 7,894 Net FDG revenue 15,027 11,644 29,767 23,377 Net Revenue: $160,630 $137,379 $313,056 $270,796 IDEXX Laboratories, Inc. and Subsidiaries Consolidated Balance Sheet Amounts in thousands (Unaudited) June 30, December 31, 2005 2004 Assets: Current Assets: Cash and cash equivalents $52,354 $47,156 Short-term investments 78,603 90,116 Accounts receivable, net 73,139 65,639 Inventories 81,765 76,424 Other current assets 21,470 22,257 Total current assets 307,331 301,592 Long-term Investments 7,583 19,687 Property and equipment -- cost 143,082 137,851 Less: accumulated depreciation 79,361 75,221 Property and equipment, net 63,721 62,630 Other long-term assets, net 121,615 130,328 Total assets $500,250 $514,237 Liabilities and Stockholders' Equity: Current Liabilities: Accounts payable $16,193 $14,723 Accrued expenses 68,093 73,785 Notes payable 531 1,291 Deferred revenue 8,434 10,153 Total current liabilities 93,251 99,952 Total long-term liabilities 14,538 16,233 Partner's interest in subsidiary 232 392 Stockholders' Equity: Common stock 4,559 4,522 Additional paid-in capital 423,825 410,817 Deferred equity-based compensation 1,231 665 Retained earnings 356,305 318,682 Treasury stock, at cost (398,718) (348,327) Accumulated other comprehensive income 5,027 11,301 Total stockholders' equity 392,229 397,660 Total liabilities and stockholders' equity $500,250 $514,237 IDEXX Laboratories, Inc. and Subsidiaries Key Balance Sheet Statistics (Unaudited) June 30, December 31, 2005 2004 Key Balance Sheet Statistics: Days sales outstanding 42 39 Inventory turns 1.8 1.9 IDEXX Laboratories, Inc. and Subsidiaries Consolidated Statement of Cash Flows Amounts in thousands (Unaudited) Six Months Ended June 30, June 30, 2005 2004 Operating: Cash Flows from Operating Activities: Net income $37,623 $41,701 Non-cash charges 14,251 17,043 Changes in current assets and liabilities, net of acquisitions and disposals (13,789) (14,848) Net cash provided by operating activities $38,085 $43,896 Investing: Cash Flows from Investing Activities: (Increase) decrease in investments, net 23,586 (268) Purchase of property and equipment (10,508) (17,676) Acquisition of businesses and intangible assets (659) (5,392) Acquisition of equipment leased to customers (1,278) (1,230) Net cash provided (used) by investing activities $11,141 $(24,566) Financing: Cash Flows from Financing Activities: Repayments of notes payable (1,270) (304) Purchase of treasury stock (50,391) (58,070) Proceeds from the exercise of stock options 9,461 16,910 Net cash used by financing activities $(42,200) $(41,464) Net effect of exchange rate changes (1,828) 76 Net increase (decrease) in cash and cash equivalents 5,198 (22,058) Cash and cash equivalents, beginning of period 47,156 186,717 Cash and cash equivalents, end of period $52,354 $164,659 IDEXX Laboratories, Inc. and Subsidiaries Free Cash Flow (Unaudited) Six Months Ended June 30, June 30, 2005 2004 Free Cash Flow: Net cash provided by operating activities $38,085 $43,896 Purchase of property and equipment (10,508) (17,676) Acquisition of equipment leased to customers (1,278) (1,230) Free cash flow $26,299 $24,990 Free cash flow indicates the cash generated from operations reduced by investments in capital and other long-term assets. Free cash flow excludes financing activities, investments in monetary securities, and business acquisitions and divestitures. We feel 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 fixed assets that are required to operate the business. We believe this is a common financial measure useful to further evaluate the results of operations.

Photo: http://www.newscom.com/cgi-bin/prnh/20030305/IDEXXLOGOAP Archive: http://photoarchive.ap.orgPRN Photo Desk photodesk@prnewswire.comIDEXX Laboratories, Inc.

CONTACT: Merilee Raines, Chief Financial Officer of IDEXX Laboratories,Inc., +1-207-856-8155

Web site: http://www.idexx.com//