IDEXX Laboratories, Inc. reported consolidated unaudited earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported revenues increased 4% to $319.5 million from $307.2 million for the fourth quarter of 2011. Operating profit increased 15% to $63.4 million or 20% of revenue compared to $55.3 million or 18% of revenue for same period of the prior year. Earnings per diluted share increased 16% to $0.78, compared to $0.67 for the same period in the prior year. Net income attributable to stockholders was $43.354 million against $38.010 million a year ago. Income before provision for income taxes was $63.084 million against $54.696 million a year ago.

For the year, the company reported revenues increased 6% to $1.293 billion from $1,219 billion for the year ended December 31, 2011. Operating profit increased 11% to $262.6 million or 20% of revenue compared to $236.2 million, or 19% of revenue for the prior year. Earnings per diluted share increased 14% to $3.17 compared to $2.78 for the prior year. Income before provision for income taxes was $260.617 million against $234.422 million a year ago. Net income attributable to stockholders was $178,267.354 million against $161.786 million a year ago. Net cash provided by operating activities was $230.282 million against $220.700 million a year ago. Purchases of property and equipment were $65.492 million against $52.464 million a year ago. Acquisitions of intangible assets and businesses, net of cash acquired were $3.558 million against $47.757 million a year ago.

The company updated earnings guidance for the fiscal year ending December 31, 2013. For the year, the company expects revenues to be in the range of $1.405 to $1.42 billion, which represents reported growth of 8.5% to 9.5% relative to 2012. Organic revenue growth is estimated to be in the range of 8% to 9% and is consistent with the previous guidance. EPS was expected to be $3.47 to $3.57, compared to the previous guidance of $3.37 to $3.47. Relative to EPS guidance provided in October 2012, the current guidance reflects the estimated impact of the federal R&D tax credit for 2012 and 2013. The impact of the R&D tax credit for both years will be reflected in 2013 results. The increase to the high end of the guidance reflects an estimated benefit of $0.10 related to the federal R&D tax credit. The increase to the low end of guidance reflects an estimated benefit of $0.08 related to the federal R&D tax credit, as well as a tightening of the EPS range. The company expects the federal R&D tax credit to contribute $0.05 to $0.06 to EPS in the first quarter of 2013, as recognize the tax credit for 2012 and a portion of expected tax credit for 2013. Free cash flow is expected to be approximately 105% to 110% of net income. Capital expenditures are expected to be approximately $75 million. The company expects to lower 2013 tax rate by almost 200 basis points. The company expects full year growth margins to be approximately 54%, roughly in line with full year 2012 rate. The company expects operating margin to be between 19.5% and 20%, which would yield operating margin expansion of roughly 50 basis points when normalize for the pharma milestone payment in 2012 and impacts of FX. Net interest expense is expected to be about $2.5 million.