IDEXX Laboratories Inc IDXX
Q2 2011 Earnings Call Transcript

Transcript Call Date 07/22/2011

Operator: Good morning, everyone and welcome to the IDEXX Laboratories' Second Quarter 2011 Earnings Conference Call. Just a reminder, today's conference is being recorded.

Participating in the call this morning are Jon Ayers, Chief Executive Officer, Merilee Raines, Chief Financial Officer and Pete Levine, Director of Investor Relations.

IDEXX would like to preface the discussion today with a caution regarding forward-looking statements. Listeners are reminded that statements that members of IDEXX management may make on this call regarding management's future expectations and plans, and IDEXX's future prospects constitute forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements can be identified by the use of words such as, expects, may, anticipates, intends, would, will, plans, believes, estimates, should, and similar words and expressions. Such statements include, but are not limited to statements regarding management's expectations for financial results for future periods. Listeners are reminded that actual results could differ materially from management's expectations.

Factors that could cause or contribute to such differences are described in IDEXX's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, and Annual Report on Form 10-K for the year ended December 31, 2010, in the section captioned 'Risk Factors,' which are on file with the SEC and also available on IDEXX's website,

In addition, any forward-looking statements represent IDEXX's estimates only as of today and should not be relied upon as representing the Company's estimates as of any subsequent date. The Company disclaims any obligation to update or revise any forward-looking statements in the future even if its estimates or expectations change.

Also during this call, we will be discussing certain financial measures not prepared in accordance with generally accepted accounting principles or GAAP. A definition of these non-GAAP financial measures is provided in our earnings release, which can be found on our website,

Finally, we plan to end today’s call by 10.00 a.m. Eastern, and in order to allow broad participation in the Q&A, we ask that each participant limit his or her questions to one with one follow-up as necessary. We do appreciate you may have additional questions, so please feel free to get back into the queue, and if time permits, we'll be more than happy to take your additional questions.

I would now like to turn the conference over to Merilee Raines. Please go ahead.

Merilee Raines - Corporate VP, CFO and Treasurer: Good morning and thank you for joining us today. First, a quick overview of our second quarter results. In our press release this morning, we reported revenues of $317.9 million, a year-to-year growth of 13%, and diluted earnings per share of $0.83, a growth of 34%. Revenues were somewhat favorable to our thinking at the time of our April call and earnings per share were about $0.05 above our thinking at that time.

Revenue performance relative to our expectations was the result of a few factors. First, U.S. distributor inventory levels for instrument consumables and rapid assays ended the quarter slightly above our customary range of three to four weeks. Additionally, revenues from livestock and poultry diagnostic kits were higher than expected, offsetting somewhat lower revenues from instrument placements.

Read our Earnings Call Transcript disclaimer.
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