IDEXX Labs Withdraws 2020 Guidance

(RTTNews) - IDEXX Laboratories Inc. (IDXX) said it has withdrawn 2020 guidance due to the unpredictability of the duration and magnitude of impacts from the COVID-19 pandemic on veterinary service providers.

The company said it has enhanced its liquidity and financial flexibility by increasing its credit facility to $1 billion with extended maturity to 2023 and issuing $200 million in 10-year, 2.5% fixed-rate notes.

The company noted that it has advanced actions to reduce quarterly operating expenses by approximately $25 million compared to original plan levels. These actions include the temporary reduction of the salaries of chief executive officer by 30%, officers and senior executives by 20% and the majority of other salaried employees by 10%, as well as the suspension of cash compensation for IDEXX's Board of Directors.

The savings will mitigate near-term financial impacts from potential revenue declines related to COVID-19 stay-at-home policies and social distancing procedures, the company said in a statement.