Idexx Laboratories (NASDAQ:IDXX) informs distributor Henry Schein (NASDAQ:HSIC) that it intends to sell its vet diagnostic products directly in the U.S. effective January 1, 2015. This will eliminate ~$150M in top line sales for Schein and $0.04 - 0.06 in EPS. The company does not forecast a negative impact on 2014 results, however, because it will pick up other brands to sell in the meantime.
2014 Guidance: $8M in incremental expenses in 2H due to sales force ramp up plus $10M - 12M in non-recurring expenses which will reduce EPS $0.23 - 0.25. Revenue will be impacted $30M - 35M and operating profit $23M - 27M. Total revenue: $1,510M - 1,520; EPS: $3.54 - 3.63; FCF: 95 100% of net income; CAPEX: ~$80M.
Companion Animal Group diagnostics to transition to all-direct distribution in the U.S. effective January 1, 2015. Veterinary Diagnostics sales force to increase 40%. Incremental annual revenue will be $50M - 55M and incremental annual operating profit will be $5M - 8M.
Idexx Laboratories (IDXX) has acquired Madasa do Brasil, which distributes Idexx's dairy and bovine testing products, for an undisclosed amount.
The deal provides Idexx "with an on-the-ground presence in Brazil," thereby presenting "a tremendous growth opportunity" as the company looks to continue to expand its livestock, poultry, dairy and water businesses in the region.
Idexx expects the purchase to add $2M to 2013 revenue but have no financially material impact on earnings. (PR)