Charles River Laboratories Announces First-Quarter 2024 Results
Charles River Laboratories reported first-quarter 2024 results with revenue of $1.01 billion, GAAP EPS of $1.30, and Non-GAAP EPS of $2.27. The company updated its 2024 guidance and reaffirmed revenue growth and non-GAAP earnings per share estimates. Despite revenue declines in the DSA segment, the RMS and Manufacturing segments showed growth. The company aims to capitalize on new business opportunities in the biopharmaceutical sector.
RMS segment revenue increased by 10.6% to $220.9 million in Q1 2024 with organic growth of 3.3%, driven by higher sales of research models and services.
Manufacturing segment revenue grew by 10.7% to $185.2 million in Q1 2024, with an increased GAAP operating margin of 18.2% and non-GAAP operating margin of 25.3%.
The Company updated its 2024 guidance, maintaining revenue growth and non-GAAP EPS estimates, expecting demand trends to improve modestly in the second half of the year.
DSA segment revenue decreased by 8.6% to $605.5 million in Q1 2024, with lower sales volume and moderating price increases, impacting operating margins.
GAAP and non-GAAP net income and EPS decreased in Q1 2024 due to lower revenue, operating income, and a higher tax rate.
The GAAP operating margin decreased to 12.5% in Q1 2024, primarily due to a lower margin in the DSA segment and higher unallocated corporate costs.
– First-Quarter Revenue of
– First-Quarter GAAP Earnings per Share of
– Updates 2024 Guidance –
The impact of foreign currency translation benefited reported revenue by
In the first quarter of 2024, the GAAP operating margin decreased to
On a GAAP basis, first-quarter net income attributable to common shareholders was
James C. Foster, Chair, President and Chief Executive Officer, said, “Our first-quarter performance was a solid first step towards achieving our financial outlook for the year, particularly in our Manufacturing segment. Our DSA segment saw improved proposal activity and cancellations in the first quarter, and while encouraging, our outlook for the year remains appropriately measured. It will take time for this proposal activity and stronger biotech funding to translate into new DSA bookings and revenue generation; however, these trends are consistent with our expectations that demand will improve later this year.”
“The long-term industry fundamentals for the biopharmaceutical industry remain firmly intact, and we intend to capitalize on new business opportunities. We are implementing initiatives to maintain our leadership in the non-clinical drug development sector, including enhanced commercial efforts, actions to drive efficiency, and investing in innovative technologies. We are the logical outsourcing partner for our clients and are positioning ourselves to win the new business that will emerge as these clients reinvigorate their investments in their early-stage R&D programs,” Mr. Foster concluded.
First-Quarter Segment Results
Research Models and Services (RMS)
Revenue for the RMS segment was
In the first quarter of 2024, the RMS segment’s GAAP operating margin decreased to
Discovery and Safety Assessment (DSA)
Revenue for the DSA segment was
In the first quarter of 2024, the DSA segment’s GAAP operating margin decreased to
Manufacturing Solutions (Manufacturing)
Revenue for the Manufacturing segment was
In the first quarter of 2024, the Manufacturing segment’s GAAP operating margin increased to
Updates 2024 Guidance
The Company is updating its financial guidance for 2024, which was initially provided on February 14, 2024. Despite modest adjustments to the quarterly gating in 2024, the Company’s outlook for the year remains essentially unchanged and it is reaffirming revenue growth and non-GAAP earnings per share guidance, with the continued expectation that demand trends will improve modestly during the second half of the year.
The Company’s 2024 guidance for revenue growth and earnings per share is as follows:
2024 GUIDANCE |
CURRENT |
PRIOR |
Revenue growth, reported |
|
|
Impact of divestitures/(acquisitions), net |
~(0.5)% |
~(0.5)% |
(Favorable)/unfavorable impact of foreign exchange |
~(0.5)% |
~(0.5)% |
Revenue growth, organic (1) |
|
|
GAAP EPS estimate |
|
|
Acquisition-related amortization (2) |
|
|
Acquisition and integration-related adjustments (3) |
|
|
Costs associated with restructuring actions (4) |
|
|
Certain venture capital and other strategic investment losses/(gains), net (5) |
( |
-- |
Incremental dividends related to Noveprim (6) |
|
-- |
Other items (7) |
|
|
Non-GAAP EPS estimate |
|
|
Footnotes to Guidance Table: |
(1) Organic revenue growth is defined as reported revenue growth adjusted for completed acquisitions and divestitures, as well as foreign currency translation. |
(2) These adjustments include amortization related to intangible assets, as well as the purchase accounting step-up on inventory and certain long-term biological assets. |
(3) These adjustments are related to the evaluation and integration of acquisitions and divestitures, and primarily include transaction, advisory, certain third-party integration, and related costs. |
(4) These adjustments primarily include site consolidation, severance, impairment, and other costs related to the Company’s restructuring actions. |
(5) Certain venture capital and other strategic investment performance only includes recognized gains or losses on certain investments. The Company does not forecast the future performance of these investments. |
(6) This item primarily relates to incremental dividends attributable to Noveprim noncontrolling interest holders who receive preferential dividends for fiscal year 2024. |
(7) These items primarily relate to (i) certain third-party legal costs related to investigations by the |
Webcast
Charles River has scheduled a live webcast on Thursday, May 9th, at 8:30 a.m. ET to discuss matters relating to this press release. To participate, please go to ir.criver.com and select the webcast link. You can also find the associated slide presentation and reconciliations of GAAP financial measures to non-GAAP financial measures on the website.
Bank of America Healthcare Conference Presentation
Charles River will present at the Bank of America 2024 Healthcare Conference in
A live webcast of the presentation will be available through a link that will be posted on ir.criver.com. A webcast replay will be accessible through the same website shortly after the presentation and will remain available for approximately two weeks.
Non-GAAP Reconciliations
The Company reports non-GAAP results in this press release, which exclude often-one-time charges and other items that are outside of normal operations. A reconciliation of GAAP to non-GAAP results is provided in the schedules at the end of this press release.
Use of Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, such as non-GAAP earnings per diluted share, non-GAAP operating income, non-GAAP operating margin, and non-GAAP net income. Non-GAAP financial measures exclude, but are not limited to, the amortization of intangible assets and the purchase accounting step-up adjustment on inventory and certain long term biological assets, and other charges and adjustments related to our acquisitions and divestitures, including incremental dividends attributable to Noveprim noncontrolling interest holders and the gain on our sale of our Avian Vaccine business; expenses associated with evaluating and integrating acquisitions and divestitures, including advisory fees and certain other transaction-related costs, as well as fair value adjustments associated with contingent consideration; charges, gains, and losses attributable to businesses or properties we plan to close, consolidate, or divest; severance and other costs associated with our restructuring initiatives; the write-off of deferred financing costs and fees related to debt financing; investment gains or losses associated with our venture capital and other strategic equity investments; certain legal costs in our Microbial Solutions business related to environmental litigation and in our Safety Assessment business related to
Caution Concerning Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “will,” “would,” “may,” “estimate,” “plan,” “outlook,” and “project,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements also include statements regarding Charles River’s expectations regarding the availability of
About Charles River
Charles River provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts. Our dedicated employees are focused on providing clients with exactly what they need to improve and expedite the discovery, early-stage development and safe manufacture of new therapies for the patients who need them. To learn more about our unique portfolio and breadth of services, visit www.criver.com.
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SCHEDULE 1 |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||
(in thousands, except for per share data) | |||||||
Three Months Ended | |||||||
March 30, 2024 | April 1, 2023 | ||||||
Service revenue | $ |
816,862 |
|
$ |
857,366 |
|
|
Product revenue |
|
194,698 |
|
|
172,007 |
|
|
Total revenue |
|
1,011,560 |
|
|
1,029,373 |
|
|
Costs and expenses: | |||||||
Cost of services provided (excluding amortization of intangible assets) |
|
578,164 |
|
|
565,477 |
|
|
Cost of products sold (excluding amortization of intangible assets) |
|
88,553 |
|
|
86,242 |
|
|
Selling, general and administrative |
|
186,291 |
|
|
174,846 |
|
|
Amortization of intangible assets |
|
32,575 |
|
|
34,916 |
|
|
Operating income |
|
125,977 |
|
|
167,892 |
|
|
Other income (expense): | |||||||
Interest income |
|
2,202 |
|
|
806 |
|
|
Interest expense |
|
(35,001 |
) |
|
(34,380 |
) |
|
Other income (expense), net |
|
5,833 |
|
|
(3,277 |
) |
|
Income before income taxes |
|
99,011 |
|
|
131,041 |
|
|
Provision for income taxes |
|
24,529 |
|
|
27,087 |
|
|
Net income |
|
74,482 |
|
|
103,954 |
|
|
Less: Net income attributable to noncontrolling interests |
|
1,522 |
|
|
823 |
|
|
Net income available to Charles River Laboratories International, Inc. | $ |
72,960 |
|
$ |
103,131 |
|
|
Calculation of net income per share attributable to common shareholders of Charles River Laboratories International, Inc. | |||||||
Net income available to Charles River Laboratories International, Inc. | $ |
72,960 |
|
$ |
103,131 |
|
|
Less: Adjustment of redeemable noncontrolling interest |
|
401 |
|
|
— |
|
|
Less: Incremental dividends attributable to noncontrolling interest holders |
|
5,230 |
|
|
— |
|
|
Net income available to Charles River Laboratories International, Inc. common shareholders | $ |
67,329 |
|
$ |
103,131 |
|
|
Earnings per common share | |||||||
Net income attributable to common shareholders: | |||||||
Basic | $ |
1.31 |
|
$ |
2.02 |
|
|
Diluted | $ |
1.30 |
|
$ |
2.01 |
|
|
Weighted-average number of common shares outstanding: | |||||||
Basic |
|
51,437 |
|
|
51,097 |
|
|
Diluted |
|
51,842 |
|
|
51,428 |
|
|
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SCHEDULE 2 |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
(in thousands, except per share amounts) | |||||||
March 30, 2024 | December 30, 2023 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ |
327,039 |
|
$ |
276,771 |
|
|
Trade receivables and contract assets, net of allowances for credit losses of |
|
786,980 |
|
|
780,375 |
|
|
Inventories |
|
361,281 |
|
|
380,259 |
|
|
Prepaid assets |
|
93,834 |
|
|
87,879 |
|
|
Other current assets |
|
99,054 |
|
|
83,378 |
|
|
Total current assets |
|
1,668,188 |
|
|
1,608,662 |
|
|
Property, plant and equipment, net |
|
1,618,708 |
|
|
1,639,741 |
|
|
Venture capital and strategic equity investments |
|
243,543 |
|
|
243,811 |
|
|
Operating lease right-of-use assets, net |
|
384,394 |
|
|
394,029 |
|
|
Goodwill |
|
3,070,241 |
|
|
3,095,045 |
|
|
Intangible assets, net |
|
827,638 |
|
|
864,051 |
|
|
Deferred tax assets |
|
36,924 |
|
|
40,279 |
|
|
Other assets |
|
303,147 |
|
|
309,383 |
|
|
Total assets | $ |
8,152,783 |
|
$ |
8,195,001 |
|
|
Liabilities, Redeemable Noncontrolling Interests and Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ |
129,682 |
|
$ |
168,937 |
|
|
Accrued compensation |
|
189,606 |
|
|
213,290 |
|
|
Deferred revenue |
|
256,383 |
|
|
241,820 |
|
|
Accrued liabilities |
|
190,892 |
|
|
227,825 |
|
|
Other current liabilities |
|
188,247 |
|
|
203,210 |
|
|
Total current liabilities |
|
954,810 |
|
|
1,055,082 |
|
|
Long-term debt, net and finance leases |
|
2,660,459 |
|
|
2,647,147 |
|
|
Operating lease right-of-use liabilities |
|
418,054 |
|
|
419,234 |
|
|
Deferred tax liabilities |
|
180,094 |
|
|
191,349 |
|
|
Other long-term liabilities |
|
235,441 |
|
|
223,191 |
|
|
Total liabilities |
|
4,448,858 |
|
|
4,536,003 |
|
|
Redeemable noncontrolling interest |
|
57,775 |
|
|
56,722 |
|
|
Equity: | |||||||
Preferred stock, |
|
— |
|
|
— |
|
|
Common stock, |
|
515 |
|
|
513 |
|
|
Additional paid-in capital |
|
1,939,413 |
|
|
1,905,578 |
|
|
Retained earnings |
|
1,959,777 |
|
|
1,887,218 |
|
|
Treasury stock, at cost, 42 and zero shares, as of March 30, 2024 and December 30, 2023, respectively |
|
(9,351 |
) |
|
— |
|
|
Accumulated other comprehensive loss |
|
(249,919 |
) |
|
(196,427 |
) |
|
Total Charles River Laboratories International, Inc. equity |
|
3,640,435 |
|
|
3,596,882 |
|
|
Nonredeemable noncontrolling interests |
|
5,715 |
|
|
5,394 |
|
|
Total equity |
|
3,646,150 |
|
|
3,602,276 |
|
|
Total liabilities, equity and noncontrolling interests | $ |
8,152,783 |
|
$ |
8,195,001 |
|
|
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SCHEDULE 3 |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
March 30, 2024 | April 1, 2023 | ||||||
Cash flows relating to operating activities | |||||||
Net income | $ |
74,482 |
|
$ |
103,954 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization |
|
85,357 |
|
|
77,069 |
|
|
Stock-based compensation |
|
16,738 |
|
|
13,460 |
|
|
Deferred income taxes |
|
(987 |
) |
|
(11,584 |
) |
|
Long-lived asset impairment charges |
|
5,432 |
|
|
10,460 |
|
|
(Gain) loss on venture capital and strategic equity investments, net |
|
(5,880 |
) |
|
3,282 |
|
|
Provision for credit losses |
|
839 |
|
|
3,238 |
|
|
Other, net |
|
1,999 |
|
|
1,448 |
|
|
Changes in assets and liabilities: | |||||||
Trade receivables and contract assets, net |
|
(17,281 |
) |
|
(33,831 |
) |
|
Inventories |
|
5,600 |
|
|
(8,587 |
) |
|
Accounts payable |
|
(8,541 |
) |
|
(41,313 |
) |
|
Accrued compensation |
|
(20,945 |
) |
|
(21,469 |
) |
|
Deferred revenue |
|
19,957 |
|
|
(481 |
) |
|
Customer contract deposits |
|
6,140 |
|
|
1,509 |
|
|
Other assets and liabilities, net |
|
(33,022 |
) |
|
12,228 |
|
|
Net cash provided by operating activities |
|
129,888 |
|
|
109,383 |
|
|
Cash flows relating to investing activities | |||||||
Acquisition of businesses and assets, net of cash acquired |
|
— |
|
|
(50,166 |
) |
|
Capital expenditures |
|
(79,144 |
) |
|
(106,875 |
) |
|
Purchases of investments and contributions to venture capital investments |
|
(13,867 |
) |
|
(12,570 |
) |
|
Proceeds from sale of investments |
|
7,502 |
|
|
1,953 |
|
|
Other, net |
|
(283 |
) |
|
(960 |
) |
|
Net cash used in investing activities |
|
(85,792 |
) |
|
(168,618 |
) |
|
Cash flows relating to financing activities | |||||||
Proceeds from long-term debt and revolving credit facility |
|
300,882 |
|
|
192,500 |
|
|
Proceeds from exercises of stock options |
|
21,505 |
|
|
11,792 |
|
|
Payments on long-term debt, revolving credit facility, and finance lease obligations |
|
(292,482 |
) |
|
(157,328 |
) |
|
Purchase of treasury stock |
|
(9,351 |
) |
|
(19,012 |
) |
|
Payments of contingent consideration |
|
— |
|
|
(2,711 |
) |
|
Other, net |
|
(2,208 |
) |
|
— |
|
|
Net cash provided by financing activities |
|
18,346 |
|
|
25,241 |
|
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(8,387 |
) |
|
1,671 |
|
|
Net change in cash, cash equivalents, and restricted cash |
|
54,055 |
|
|
(32,323 |
) |
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
284,480 |
|
|
241,214 |
|
|
Cash, cash equivalents, and restricted cash, end of period | $ |
338,535 |
|
$ |
208,891 |
|
|
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | ||||||||||
SCHEDULE 4 | ||||||||||
RECONCILIATION OF GAAP TO NON-GAAP | ||||||||||
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED)(1) | ||||||||||
(in thousands, except percentages) | ||||||||||
Three Months Ended | ||||||||||
March 30, 2024 | April 1, 2023 | |||||||||
Research Models and Services | ||||||||||
Revenue | $ |
220,907 |
|
$ |
199,766 |
|
||||
Operating income |
|
43,149 |
|
|
40,409 |
|
||||
Operating income as a % of revenue |
|
19.5 |
% |
|
20.2 |
% |
||||
Add back: | ||||||||||
Amortization related to acquisitions |
|
10,288 |
|
|
5,494 |
|
||||
Acquisition related adjustments (2) |
|
163 |
|
|
830 |
|
||||
Severance |
|
540 |
|
|
— |
|
||||
Site consolidation and impairment charges |
|
6,846 |
|
|
— |
|
||||
Total non-GAAP adjustments to operating income | $ |
17,837 |
|
$ |
6,324 |
|
||||
Operating income, excluding non-GAAP adjustments | $ |
60,986 |
|
$ |
46,733 |
|
||||
Non-GAAP operating income as a % of revenue |
|
27.6 |
% |
|
23.4 |
% |
||||
Depreciation and amortization | $ |
18,123 |
|
$ |
13,489 |
|
||||
Capital expenditures | $ |
20,044 |
|
$ |
19,084 |
|
||||
Discovery and Safety Assessment | ||||||||||
Revenue | $ |
605,452 |
|
$ |
662,353 |
|
||||
Operating income |
|
114,839 |
|
|
171,431 |
|
||||
Operating income as a % of revenue |
|
19.0 |
% |
|
25.9 |
% |
||||
Add back: | ||||||||||
Amortization related to acquisitions |
|
18,596 |
|
|
17,487 |
|
||||
Acquisition related adjustments (2) |
|
192 |
|
|
244 |
|
||||
Severance |
|
5,484 |
|
|
— |
|
||||
Site consolidation and impairment charges |
|
1,007 |
|
|
— |
|
||||
Third-party legal costs (3) |
|
2,191 |
|
|
2,805 |
|
||||
Total non-GAAP adjustments to operating income | $ |
27,470 |
|
$ |
20,536 |
|
||||
Operating income, excluding non-GAAP adjustments | $ |
142,309 |
|
$ |
191,967 |
|
||||
Non-GAAP operating income as a % of revenue |
|
23.5 |
% |
|
29.0 |
% |
||||
Depreciation and amortization | $ |
45,789 |
|
$ |
42,450 |
|
||||
Capital expenditures | $ |
48,959 |
|
$ |
65,184 |
|
||||
Manufacturing Solutions | ||||||||||
Revenue | $ |
185,201 |
|
$ |
167,254 |
|
||||
Operating income |
|
33,681 |
|
|
2,106 |
|
||||
Operating income as a % of revenue |
|
18.2 |
% |
|
1.3 |
% |
||||
Add back: | ||||||||||
Amortization related to acquisitions |
|
10,793 |
|
|
12,021 |
|
||||
Acquisition related adjustments (2) |
|
699 |
|
|
829 |
|
||||
Severance |
|
1,523 |
|
|
916 |
|
||||
Site consolidation and impairment charges |
|
100 |
|
|
2,572 |
|
||||
Third-party legal costs (3) |
|
— |
|
|
4,490 |
|
||||
Total non-GAAP adjustments to operating income | $ |
13,115 |
|
$ |
20,828 |
|
||||
Operating income, excluding non-GAAP adjustments | $ |
46,796 |
|
$ |
22,934 |
|
||||
Non-GAAP operating income as a % of revenue |
|
25.3 |
% |
|
13.7 |
% |
||||
Depreciation and amortization | $ |
19,805 |
|
$ |
20,084 |
|
||||
Capital expenditures | $ |
8,862 |
|
$ |
21,738 |
|
||||
Unallocated Corporate Overhead | $ |
(65,692 |
) |
$ |
(46,054 |
) |
||||
Add back: | ||||||||||
Severance |
|
1,490 |
|
|
— |
|
||||
Acquisition related adjustments (2) |
|
1,529 |
|
|
2,203 |
|
||||
Total non-GAAP adjustments to operating expense | $ |
3,019 |
|
$ |
2,203 |
|
||||
Unallocated corporate overhead, excluding non-GAAP adjustments | $ |
(62,673 |
) |
$ |
(43,851 |
) |
||||
Total | ||||||||||
Revenue | $ |
1,011,560 |
|
$ |
1,029,373 |
|
||||
Operating income |
|
125,977 |
|
|
167,892 |
|
||||
Operating income as a % of revenue |
|
12.5 |
% |
|
16.3 |
% |
||||
Add back: | ||||||||||
Amortization related to acquisitions |
|
39,677 |
|
|
35,002 |
|
||||
Acquisition related adjustments (2) |
|
2,583 |
|
|
4,106 |
|
||||
Severance |
|
9,037 |
|
|
916 |
|
||||
Site consolidation and impairment charges |
|
7,953 |
|
|
2,572 |
|
||||
Third-party legal costs (3) |
|
2,191 |
|
|
7,295 |
|
||||
Total non-GAAP adjustments to operating income | $ |
61,441 |
|
$ |
49,891 |
|
||||
Operating income, excluding non-GAAP adjustments | $ |
187,418 |
|
$ |
217,783 |
|
||||
Non-GAAP operating income as a % of revenue |
|
18.5 |
% |
|
21.2 |
% |
||||
Depreciation and amortization | $ |
85,357 |
|
$ |
77,069 |
|
||||
Capital expenditures | $ |
79,144 |
|
$ |
106,875 |
|
||||
(1) |
Charles River management believes that supplementary non-GAAP financial measures provide useful information to allow investors to gain a meaningful understanding of our core operating results and future prospects, without the effect of often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company’s performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with |
|||||||||
(2) |
These adjustments are related to the evaluation and integration of acquisitions, which primarily include transaction, third-party integration, and certain compensation costs, and fair value adjustments associated with contingent consideration arrangements. | |||||||||
(3) |
Third-party legal costs are related to (a) an environmental litigation related to the Microbial Solutions business and (b) investigations by the |
|||||||||
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SCHEDULE 5 |
|||||||||
RECONCILIATION OF GAAP EARNINGS TO NON-GAAP EARNINGS (UNAUDITED)(1) | |||||||||
(in thousands, except per share data) | |||||||||
Three Months Ended | |||||||||
March 30, 2024 | April 1, 2023 | ||||||||
Net income available to Charles River Laboratories, Inc. common shareholders | $ |
67,329 |
|
$ |
103,131 |
|
|||
Add back: | |||||||||
Adjustment of redeemable noncontrolling interest (2) |
|
401 |
|
|
— |
|
|||
Incremental dividends attributable to noncontrolling interest holders (3) |
|
5,230 |
|
|
— |
|
|||
Non-GAAP adjustments to operating income (Refer to previous schedule) |
|
61,441 |
|
|
49,891 |
|
|||
Venture capital and strategic equity investment (gains) losses, net |
|
(5,762 |
) |
|
3,282 |
|
|||
(Gain) loss on divestitures (4) |
|
658 |
|
|
(441 |
) |
|||
Other (5) |
|
— |
|
|
(101 |
) |
|||
Tax effect of non-GAAP adjustments: | |||||||||
Non-cash tax provision related to international financing structure (6) |
|
341 |
|
|
1,124 |
|
|||
Tax effect of the remaining non-GAAP adjustments |
|
(12,028 |
) |
|
(13,899 |
) |
|||
Net income attributable to Charles River Laboratories, Inc. common shareholders, excluding non-GAAP adjustments | $ |
117,610 |
|
$ |
142,987 |
|
|||
Weighted average shares outstanding - Basic |
|
51,437 |
|
|
51,097 |
|
|||
Effect of dilutive securities: | |||||||||
Stock options, restricted stock units and performance share units |
|
405 |
|
|
331 |
|
|||
Weighted average shares outstanding - Diluted |
|
51,842 |
|
|
51,428 |
|
|||
Earnings per share attributable to common shareholders: | |||||||||
Basic | $ |
1.31 |
|
$ |
2.02 |
|
|||
Diluted | $ |
1.30 |
|
$ |
2.01 |
|
|||
Basic, excluding non-GAAP adjustments | $ |
2.29 |
|
$ |
2.80 |
|
|||
Diluted, excluding non-GAAP adjustments | $ |
2.27 |
|
$ |
2.78 |
|
|||
(1) |
Charles River management believes that supplementary non-GAAP financial measures provide useful information to allow investors to gain a meaningful understanding of our core operating results and future prospects, without the effect of often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company’s performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with |
||||||||
(2) |
This amount represents accretion adjustments of the Noveprim redeemable noncontrolling interest. | ||||||||
(3) |
This amount represents incremental undeclared dividends attributable to Noveprim noncontrolling interest holders who receive preferential dividends for fiscal year 2024. | ||||||||
(4) |
The amount included in 2024 relates to a loss on the sale of a Safety Assessment site. Adjustments included in 2023 relate to the gain on the sale of our Avian Vaccine business, which was divested in 2022. | ||||||||
(5) |
Amounts included in 2023 relate to a final adjustment on the termination of a Canadian pension plan. | ||||||||
(6) |
This amount relates to the recognition of deferred tax assets expected to be utilized as a result of changes to the Company's international financing structure. | ||||||||
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. |
||||||||||||
SCHEDULE 6 |
||||||||||||
RECONCILIATION OF GAAP REVENUE GROWTH |
||||||||||||
TO NON-GAAP REVENUE GROWTH, ORGANIC (UNAUDITED) (1) |
||||||||||||
Three Months Ended March 30, 2024 | Total CRL | RMS Segment | DSA Segment | MS Segment | ||||||||
Revenue growth, reported | (1.7 |
)% |
10.6 |
% |
(8.6 |
)% |
10.7 |
% |
||||
(Increase) decrease due to foreign exchange | (0.3 |
)% |
0.3 |
% |
(0.5 |
)% |
(0.3 |
)% |
||||
Contribution from acquisitions (2) | (1.5 |
)% |
(7.6 |
)% |
— |
% |
— |
% |
||||
Impact of divestitures (3) | 0.2 |
% |
— |
% |
0.4 |
% |
— |
% |
||||
Non-GAAP revenue growth, organic (4) | (3.3 |
)% |
3.3 |
% |
(8.7 |
)% |
10.4 |
% |
(1) |
Charles River management believes that supplementary non-GAAP financial measures provide useful information to allow investors to gain a meaningful understanding of our core operating results and future prospects, without the effect of often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company’s performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with |
||||||||
(2) |
The contribution from acquisitions reflects only completed acquisitions. | ||||||||
(3) |
Impact of divestitures relates to the sale of a site within our Safety Assessment business. | ||||||||
(4) |
Organic revenue growth is defined as reported revenue growth adjusted for acquisitions, divestitures, and foreign exchange. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509551116/en/
Investor Contact:
Todd Spencer
Corporate Vice President,
Investor Relations
781.222.6455
todd.spencer@crl.com
Media Contact:
Amy Cianciaruso
Corporate Vice President,
Chief Communications Officer
781.222.6168
amy.cianciaruso@crl.com
Source: Charles River Laboratories International, Inc.
FAQ
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