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Charles River Laboratories Announces Fourth-Quarter and Full-Year 2015 Results from Continuing Operations and Provides 2016 Guidance
– Fourth-Quarter Revenue of
– Fourth-Quarter GAAP Earnings per Share of
– Full-Year GAAP Earnings per Share of
– Provides 2016 Guidance –
On a GAAP basis, net income from continuing operations for the fourth
quarter of 2015 was
On a non-GAAP basis, net income from continuing operations was
“We are optimistic about the opportunities for growth in 2016, which are
the basis for our guidance, excluding WIL, of revenue growth in a range
of 9% to 11% in constant currency. Non-GAAP earnings per share are
expected to be in a range of
Fourth-Quarter Segment Results
Research Models and Services (RMS)
Revenue for the RMS segment was
In the fourth quarter of 2015, the RMS segment’s GAAP operating margin was 24.1% compared to 20.1% in the fourth quarter of 2014. On a non-GAAP basis, the operating margin increased to 25.4% from 23.2% in the fourth quarter of 2014. The RMS operating margin improvement was primarily attributable to benefits from the Company’s global efficiency initiatives.
Discovery and Safety Assessment (DSA)
Revenue from continuing operations for the DSA segment was
In the fourth quarter of 2015, the DSA segment’s GAAP operating margin
was 23.1% compared to 14.0% in the fourth quarter of 2014. On a non-GAAP
basis, the operating margin increased to 27.1% from 19.4% in the fourth
quarter of 2014. In addition to leverage from higher revenue for safety
assessment services, the non-GAAP operating margin also benefited from a
tax law change in
Manufacturing Support (Manufacturing)
Revenue for the Manufacturing segment was
In the fourth quarter of 2015, the Manufacturing segment’s GAAP
operating margin was 23.6% compared to 33.0% in the fourth quarter of
2014. The GAAP decline was primarily related to the inclusion of
amortization of intangible assets and associated costs related to the
Celsis acquisition, which was completed on
Full-Year Results
For 2015, revenue increased by 5.1% to
On a GAAP basis, net income from continuing operations in 2015 was
On a non-GAAP basis, net income from continuing operations in 2015 was
Research Models and Services (RMS)
For 2015, RMS revenue was
Discovery and Safety Assessment (DSA)
For 2015, DSA revenue was
Manufacturing Support (Manufacturing)
For 2015, Manufacturing revenue was
2016 Guidance
The Company is providing the following financial guidance for 2016, both
excluding and including the impact of the planned acquisition of
Excluding WIL Research, 2016 constant-currency revenue growth is expected to benefit from double-digit growth in both the DSA and Manufacturing segments (including contributions from acquisitions completed in 2015), as well as low- to mid-single digit growth in the RMS segment. Foreign currency translation is expected to reduce revenue growth by approximately 1%, based on current foreign exchange rates.
The Company’s guidance includes the effect of the addition of a 53rd
week in 2016, which is periodically required to align our fiscal year
end to
Earnings per share in 2016 are expected to benefit from higher revenue
and the Company’s ongoing global efficiency initiatives. Foreign
exchange is expected to be a moderate benefit to 2016 earnings per
share. The Company has forecast a gain associated with its
limited-partnership investments of approximately
The Company’s revenue and earnings per share guidance excluding the
impact of
2016 GUIDANCE EXCLUDING WIL RESEARCH |
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(from continuing operations) |
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Revenue growth, reported | 8% - 10% | ||
Negative impact of foreign exchange | (~1%) | ||
Revenue growth, constant currency | 9% - 11% | ||
GAAP EPS estimate (1) | $3.60 - $3.70 | ||
Amortization of intangible assets | $0.40 | ||
Charges related to global efficiency initiatives (2) | $0.02 | ||
Acquisition-related adjustments (3) | $0.05 | ||
Non-GAAP EPS estimate | $4.07 - $4.17 |
(1) GAAP EPS guidance and related adjustments do not include any
acquisition-related costs and charges associated with the planned
acquisition of
(2)
These charges relate primarily to the Company’s planned efficiency
initiatives in 2016, including site consolidation costs, asset
impairments, and severance. Other projects in support of the global
productivity and efficiency initiatives are expected, but these charges
reflect only the decisions that have already been finalized.
(3)
These adjustments are related to the evaluation and integration of
acquisitions that were completed prior to 2016, and do not include any
costs related to the planned acquisition of
The Company is also providing revenue and non-GAAP earnings per share
guidance including the benefit of the
2016 GUIDANCE INCLUDING WIL RESEARCH | |||
(from continuing operations) | |||
Charles River revenue growth, reported | 8% - 10% | ||
Contribution from WIL Research | 11% - 12.5% | ||
Revenue growth including WIL Research, reported | 19% - 22.5% | ||
Negative impact of foreign exchange | (~1%) | ||
Revenue growth including WIL Research, constant currency | 20% - 23.5% | ||
Charles River non-GAAP EPS estimate | $4.07 - $4.17 | ||
Contribution from WIL Research | At least $0.20 | ||
Non-GAAP EPS estimate including WIL Research (1) | $4.27 - $4.40 |
(1) Additional items excluded from non-GAAP earnings per share are
expected to include all
Webcast
Charles River has scheduled a live webcast on
Non-GAAP Reconciliations/Discontinued Operations
The Company reports non-GAAP results in this press release, which exclude certain 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. In addition, the Company reports results from continuing operations, which exclude results of the Phase I clinical business that was divested in 2011. The Phase I business is reported as a discontinued operation.
Use of Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, such as
non-GAAP earnings per diluted share, which exclude the amortization of
intangible assets, inventory purchase accounting adjustments, and other
charges related to our acquisitions; expenses associated with evaluating
and integrating acquisitions, 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; the gain related to the bargain purchase of
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,” “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 our projected future financial performance including revenue
(on both a reported and constant-currency basis), operating margins,
earnings per share, the expected impact of foreign exchange rates, and
the expected benefit of our limited partnership investments; the future
demand for drug discovery and development products and services,
including our expectations for future revenue trends; our plans to
reopen the Charles River Massachusetts (
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. | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||
(in thousands, except for per share data) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 26, | December 27, | December 26, | December 27, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Total revenue | $ | 353,850 | $ | 329,548 | $ | 1,363,302 | $ | 1,297,662 | |||||||||
Cost of revenue | 213,276 | 209,603 | 832,210 | 825,002 | |||||||||||||
Selling, general and administrative | 81,461 | 72,034 | 300,414 | 269,033 | |||||||||||||
Amortization of intangible assets | 6,844 | 7,144 | 24,229 | 25,957 | |||||||||||||
Operating income | 52,269 | 40,767 | 206,449 | 177,670 | |||||||||||||
Interest income (expense), net | (3,536 | ) | (2,428 | ) | (14,029 | ) | (10,796 | ) | |||||||||
Other income (expense), net | 1,259 | 1,847 | 3,008 | 10,721 | |||||||||||||
Income from continuing operations before income taxes | 49,992 | 40,186 | 195,428 | 177,595 | |||||||||||||
Provision for income taxes | 16,729 | 11,650 | 43,391 | 47,671 | |||||||||||||
Income from continuing operations, net of income taxes | 33,263 | 28,536 | 152,037 | 129,924 | |||||||||||||
Income (loss) from discontinued operations, net of income taxes | (902 | ) | (864 | ) | (950 | ) | (1,726 | ) | |||||||||
Net income | 32,361 | 27,672 | 151,087 | 128,198 | |||||||||||||
Less: Net income attributable to noncontrolling interests | (477 | ) | (506 | ) | (1,774 | ) | (1,500 | ) | |||||||||
Net income attributable to common shareholders | $ | 31,884 | $ | 27,166 | $ | 149,313 | $ | 126,698 | |||||||||
Earnings (loss) per common share | |||||||||||||||||
Basic: | |||||||||||||||||
Continuing operations | $ | 0.71 | $ | 0.60 | $ | 3.23 | $ | 2.76 | |||||||||
Discontinued operations | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.04 | ) | |||||
Net | $ | 0.69 | $ | 0.58 | $ | 3.21 | $ | 2.72 | |||||||||
Diluted: | |||||||||||||||||
Continuing operations | $ | 0.69 | $ | 0.59 | $ | 3.15 | $ | 2.70 | |||||||||
Discontinued operations | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.04 | ) | |||||
Net | $ | 0.67 | $ | 0.57 | $ | 3.13 | $ | 2.66 | |||||||||
Weighted average number of common shares outstanding | |||||||||||||||||
Basic | 46,269 | 46,460 | 46,496 | 46,627 | |||||||||||||
Diluted | 47,415 | 47,517 | 47,634 | 47,558 | |||||||||||||
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||
(in thousands) | |||||
December 26, | December 27, | ||||
2015 | 2014 | ||||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 117,947 | $ | 160,023 | |
Trade receivables, net | 270,068 | 257,991 | |||
Inventories | 93,735 | 89,043 | |||
Prepaid assets | 30,198 | 26,900 | |||
Other current assets | 47,286 | 45,297 | |||
Total current assets | 559,234 | 579,254 | |||
Property, plant and equipment, net | 677,959 | 676,797 | |||
Goodwill | 438,829 | 321,077 | |||
Client relationships, net | 213,374 | 161,401 | |||
Other intangible assets, net | 67,430 | 17,474 | |||
Deferred tax asset | 40,028 | 41,624 | |||
Other assets | 71,643 | 72,951 | |||
Total assets | $ | 2,068,497 | $ | 1,870,578 | |
Liabilities, Redeemable Noncontrolling Interest and Equity | |||||
Current liabilities: | |||||
Current portion of long-term debt and capital leases | $ | 17,033 | $ | 31,904 | |
Accounts payable | 36,675 | 33,815 | |||
Accrued compensation | 72,832 | 71,569 | |||
Deferred revenue | 81,343 | 78,124 | |||
Accrued liabilities | 89,494 | 67,380 | |||
Other current liabilities | 12,544 | 9,595 | |||
Current liabilities of discontinued operations | 1,840 | 2,299 | |||
Total current liabilities | 311,761 | 294,686 | |||
Long-term debt, net and capital leases | 845,997 | 740,557 | |||
Deferred tax liabilities | 48,223 | 23,087 | |||
Other long-term liabilities | 89,062 | 99,545 | |||
Long-term liabilities of discontinued operations | 7,890 | 8,357 | |||
Total liabilities | 1,302,933 | 1,166,232 | |||
Redeemable noncontrolling interest | 28,008 | 28,419 | |||
Total equity attributable to common shareholders | 733,067 | 672,203 | |||
Noncontrolling interests | 4,489 | 3,724 | |||
Total liabilities, equity and redeemable noncontrolling interest | $ | 2,068,497 | $ | 1,870,578 | |
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | ||||||||||||||||||
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED) | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 26, | December 27, | December 26, | December 27, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Research Models and Services | ||||||||||||||||||
Revenue | $ | 114,724 | $ | 117,691 | $ | 473,230 | $ | 507,327 | ||||||||||
Operating income | 27,647 | 23,642 | 121,447 | 121,376 | ||||||||||||||
Operating income as a % of revenue | 24.1 | % | 20.1 | % | 25.7 | % | 23.9 | % | ||||||||||
Depreciation and amortization | 5,976 | 7,235 | 22,688 | 27,512 | ||||||||||||||
Capital expenditures | 5,287 | 7,221 | 17,398 | 18,749 | ||||||||||||||
Discovery and Safety Assessment | ||||||||||||||||||
Revenue | $ | 160,514 | $ | 149,604 | $ | 612,173 | $ | 538,218 | ||||||||||
Operating income | 37,125 | 20,909 | 121,981 | 69,749 | ||||||||||||||
Operating income as a % of revenue | 23.1 | % | 14.0 | % | 19.9 | % | 13.0 | % | ||||||||||
Depreciation and amortization | 11,752 | 13,271 | 46,812 | 47,138 | ||||||||||||||
Capital expenditures | 16,577 | 8,429 | 30,333 | 19,759 | ||||||||||||||
Manufacturing Support | ||||||||||||||||||
Revenue | $ | 78,612 | $ | 62,253 | $ | 277,899 | $ | 252,117 | ||||||||||
Operating income | 18,548 | 20,529 | 74,201 | 78,620 | ||||||||||||||
Operating income as a % of revenue | 23.6 | % | 33.0 | % | 26.7 | % | 31.2 | % | ||||||||||
Depreciation and amortization | 5,933 | 3,467 | 17,967 | 14,092 | ||||||||||||||
Capital expenditures | 4,339 | 10,097 | 9,814 | 15,541 | ||||||||||||||
Unallocated Corporate Overhead | $ | (31,051 | ) | $ | (24,313 | ) | $ | (111,180 | ) | $ | (92,075 | ) | ||||||
Total | ||||||||||||||||||
Revenue | $ | 353,850 | $ | 329,548 | $ | 1,363,302 | $ | 1,297,662 | ||||||||||
Operating income | 52,269 | 40,767 | 206,449 | $ | 177,670 | |||||||||||||
Operating income as a % of revenue | 14.8 | % | 12.4 | % | 15.1 | % | 13.7 | % | ||||||||||
Depreciation and amortization | 25,551 | 26,010 | 94,881 | 96,445 | ||||||||||||||
Capital expenditures | 28,244 | 27,018 | 63,252 | 56,925 | ||||||||||||||
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP | |||||||||||||||||||
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED) (1) | |||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
December 26, | December 27, | December 26, | December 27, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Research Models and Services | |||||||||||||||||||
Revenue | $ | 114,724 | $ | 117,691 | $ | 473,230 | $ | 507,327 | |||||||||||
Operating income | 27,647 | 23,642 | 121,447 | 121,376 | |||||||||||||||
Operating income as a % of revenue | 24.1 | % | 20.1 | % | 25.7 | % | 23.9 | % | |||||||||||
Add back: | |||||||||||||||||||
Amortization of intangible assets related to acquisitions | 792 | 451 | 3,083 | 2,466 | |||||||||||||||
Severance | 172 | 619 | 1,338 | 4,593 | |||||||||||||||
Government billing adjustment and related expenses | 141 | 554 | 477 | 848 | |||||||||||||||
Site consolidation costs, impairments and other items | 418 | 2,002 | 1,833 | 7,136 | |||||||||||||||
Operating income, excluding specified charges (Non-GAAP) | $ | 29,170 | $ | 27,268 | $ | 128,178 | $ | 136,419 | |||||||||||
Non-GAAP operating income as a % of revenue | 25.4 | % | 23.2 | % | 27.1 | % | 26.9 | % | |||||||||||
Discovery and Safety Assessment | |||||||||||||||||||
Revenue | $ | 160,514 | $ | 149,604 | $ | 612,173 | $ | 538,218 | |||||||||||
Operating income | 37,125 | 20,909 | 121,981 | 69,749 | |||||||||||||||
Operating income as a % of revenue | 23.1 | % | 14.0 | % | 19.9 | % | 13.0 | % | |||||||||||
Add back: | |||||||||||||||||||
Amortization of intangible assets related to acquisitions | 3,337 | 5,458 | 13,969 | 18,110 | |||||||||||||||
Severance | 354 | 1,794 | 1,068 | 2,912 | |||||||||||||||
Operating losses (2) | 2,654 | 619 | 5,517 | 2,600 | |||||||||||||||
Acquisition related adjustments (3) | 84 | 208 | 244 | 404 | |||||||||||||||
Operating income, excluding specified charges (Non-GAAP) | $ | 43,554 | $ | 28,988 | $ | 142,779 | $ | 93,775 | |||||||||||
Non-GAAP operating income as a % of revenue | 27.1 | % | 19.4 | % | 23.3 | % | 17.4 | % | |||||||||||
Manufacturing Support | |||||||||||||||||||
Revenue | $ | 78,612 | $ | 62,253 | $ | 277,899 | $ | 252,117 | |||||||||||
Operating income | 18,548 | 20,529 | 74,201 | 78,620 | |||||||||||||||
Operating income as a % of revenue | 23.6 | % | 33.0 | % | 26.7 | % | 31.2 | % | |||||||||||
Add back: | |||||||||||||||||||
Amortization of intangible assets and inventory step-up related to acquisitions | 5,672 | 1,235 | 12,322 | 5,381 | |||||||||||||||
Severance | 384 | 16 | 1,640 | 166 | |||||||||||||||
Site consolidation costs, impairments and other items | 407 | - | 407 | - | |||||||||||||||
Acquisition related adjustments (3) | 1,582 | - | 2,593 | - | |||||||||||||||
Operating income, excluding specified charges (Non-GAAP) | $ | 26,593 | $ | 21,780 | $ | 91,163 | $ | 84,167 | |||||||||||
Non-GAAP operating income as a % of revenue | 33.8 | % | 35.0 | % | 32.8 | % | 33.4 | % | |||||||||||
Unallocated Corporate Overhead | $ | (31,051 | ) | $ | (24,313 | ) | $ | (111,180 | ) | $ | (92,075 | ) | |||||||
Add back: | |||||||||||||||||||
Severance and executive transition costs | 96 | - | 2,127 | 121 | |||||||||||||||
Acquisition related adjustments (3) | 5,027 | 1,028 | 11,676 | 6,284 | |||||||||||||||
Unallocated corporate overhead, excluding specified charges (Non-GAAP) | $ | (25,928 | ) | $ | (23,285 | ) | $ | (97,377 | ) | $ | (85,670 | ) | |||||||
Total | |||||||||||||||||||
Revenue | $ | 353,850 | $ | 329,548 | $ | 1,363,302 | $ | 1,297,662 | |||||||||||
Operating income | 52,269 | 40,767 | 206,449 | 177,670 | |||||||||||||||
Operating income as a % of revenue | 14.8 | % | 12.4 | % | 15.1 | % | 13.7 | % | |||||||||||
Add back: | |||||||||||||||||||
Amortization of intangible assets and inventory step-up related to acquisitions | 9,801 | 7,144 | 29,374 | 25,957 | |||||||||||||||
Severance and executive transition costs | 1,006 | 2,429 | 6,173 | 7,792 | |||||||||||||||
Site consolidation costs, impairments and other items | 825 | 2,002 | 2,240 | 7,136 | |||||||||||||||
Operating losses (2) | 2,654 | 619 | 5,517 | 2,600 | |||||||||||||||
Acquisition related adjustments (3) | 6,693 | 1,236 | 14,513 | 6,688 | |||||||||||||||
Government billing adjustment and related expenses | 141 | 554 | 477 | 848 | |||||||||||||||
Operating income, excluding specified charges (Non-GAAP) | $ | 73,389 | $ | 54,751 | $ | 264,743 | $ | 228,691 | |||||||||||
Non-GAAP operating income as a % of non-GAAP revenue | 20.7 | % | 16.6 | % | 19.4 | % | 17.6 | % |
(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 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 GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance. | |
(2) | This item includes operating losses related primarily to the Company's Shrewsbury, Massachusetts facility. | |
(3) | 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. |
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |||||||||||||||||||
RECONCILIATION OF GAAP EARNINGS TO NON-GAAP EARNINGS (UNAUDITED)(1) | |||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
December 26, | December 27, | December 26, | December 27, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Net income attributable to common shareholders | $ | 31,884 | $ | 27,166 | $ | 149,313 | $ | 126,698 | |||||||||||
Less: Discontinued operations | 902 | 864 | 950 | 1,726 | |||||||||||||||
Net income from continuing operations attributable to common shareholders | 32,786 | 28,030 | 150,263 | 128,424 | |||||||||||||||
Add back: | |||||||||||||||||||
Amortization of intangible assets and inventory step-up related to acquisitions | 9,801 | 7,144 | 29,374 | 25,957 | |||||||||||||||
Severance and executive transition costs | 1,006 | 2,429 | 6,173 | 7,792 | |||||||||||||||
Site consolidation costs, impairments and other items | 825 | 2,002 | 2,240 | 7,136 | |||||||||||||||
Operating losses (2) | 2,654 | 619 | 5,517 | 2,600 | |||||||||||||||
Acquisition related adjustments (3) | 6,693 | 1,236 | 14,513 | 6,688 | |||||||||||||||
Government billing adjustment and related expenses | 141 | 554 | 477 | 848 | |||||||||||||||
Reversal of an indemnification asset associated with acquisition and corresponding interest (4) | - | - | 10,411 | - | |||||||||||||||
Write-off of deferred financing costs and fees related to debt refinancing | - | - | 721 | - | |||||||||||||||
Gain on bargain purchase (5) | 96 | - | (9,837 | ) | - | ||||||||||||||
Tax effect of non-GAAP adjustments: | |||||||||||||||||||
Reversal of uncertain tax position associated with acquisition and corresponding interest (4) | - | - | (10,411 | ) | - | ||||||||||||||
Tax effect of the remaining non-GAAP adjustments and certain other tax items | (6,684 | ) | (3,506 | ) | (20,106 | ) | (14,987 | ) | |||||||||||
Net income from continuing operations attributable to common
shareholders, excluding specified |
$ | 47,318 | $ | 38,508 | $ | 179,335 | $ | 164,458 | |||||||||||
Weighted average shares outstanding - Basic | 46,269 | 46,460 | 46,496 | 46,627 | |||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||
Stock options, restricted stock units, performance stock units, and contingently issued restricted stock | 1,146 | 1,057 | 1,138 | 931 | |||||||||||||||
Weighted average shares outstanding - Diluted | 47,415 | 47,517 | 47,634 | 47,558 | |||||||||||||||
Basic earnings per share from continuing operations | $ | 0.71 | $ | 0.60 | $ | 3.23 | $ | 2.76 | |||||||||||
Diluted earnings per share from continuing operations | $ | 0.69 | $ | 0.59 | $ | 3.15 | $ | 2.70 | |||||||||||
Basic earnings per share from continuing operations, excluding specified charges (Non-GAAP) | $ | 1.02 | $ | 0.83 | $ | 3.86 | $ | 3.53 | |||||||||||
Diluted earnings per share from continuing operations, excluding specified charges (Non-GAAP) | $ | 1.00 | $ | 0.81 | $ | 3.76 | $ | 3.46 |
(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 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 GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance. | |
(2) | This item includes operating losses related primarily to the Company's Shrewsbury, Massachusetts facility. | |
(3) | 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. | |
(4) | These amounts represent the reversal of an uncertain tax position and an offsetting indemnification asset related to the acquisition of BioFocus. | |
(5) | The amount relates to the acquisition of Sunrise Farms, Inc. and represents the excess of the estimated fair value of the net assets acquired over the preliminary purchase price. |
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP REVENUE GROWTH (UNAUDITED) | |||||||||||||
EXCLUDING THE IMPACT OF FOREIGN EXCHANGE | |||||||||||||
For the Three and Twelve Months Ended December 26, 2015 | |||||||||||||
For the three months ended December 26, 2015 | Total CRL | RMS Segment | DSA Segment | MS Segment | |||||||||
Revenue growth, reported | 7.4 | % | (2.5 | %) | 7.3 | % | 26.3 | % | |||||
Impact of foreign exchange | (3.9 | %) | (4.6 | %) | (2.5 | %) | (6.1 | %) | |||||
Non-GAAP revenue growth, constant currency | 11.3 | % | 2.1 | % | 9.8 | % | 32.4 | % | |||||
For the twelve months ended December 26, 2015 | Total CRL | RMS Segment | DSA Segment | MS Segment | |||||||||
Revenue growth, reported | 5.1 | % | (6.7 | %) | 13.7 | % | 10.2 | % | |||||
Impact of foreign exchange | (5.3 | %) | (6.3 | %) | (3.4 | %) | (7.6 | %) | |||||
Non-GAAP revenue growth, constant currency | 10.4 | % | (0.4 | %) | 17.1 | % | 17.8 | % |
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 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 GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance. |
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
(in thousands) | ||||||||
Twelve Months Ended | ||||||||
December 26, |
December 27, | |||||||
2015 |
2014 | |||||||
Cash flows relating to operating activities: | ||||||||
Net income | $ | 151,087 | $ | 128,198 | ||||
Less: Loss from discontinued operations | (950 | ) | (1,726 | ) | ||||
Income from continuing operations | 152,037 | 129,924 | ||||||
Summary of non-cash adjustments | 126,580 | 125,982 | ||||||
Changes in assets and liabilities | 9,617 | (3,774 | ) | |||||
Net cash provided by operating activities | 288,234 | 252,132 | ||||||
Cash flows relating to investing activities: | ||||||||
Acquisition of businesses, net of cash acquired | (247,651 | ) | (234,267 | ) | ||||
Capital expenditures | (63,252 | ) | (56,925 | ) | ||||
Other | (9,384 | ) | (6,798 | ) | ||||
Net cash used in investing activities | (320,287 | ) | (297,990 | ) | ||||
Cash flow relating to financing activities: | ||||||||
Net cash provided by financing activities | 4,548 | 61,414 | ||||||
Cash flows used in discontinued operations | (1,876 | ) | (1,081 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (12,695 | ) | (10,379 | ) | ||||
Net change in cash and cash equivalents | (42,076 | ) | 4,096 | |||||
Cash and cash equivalents, beginning of period | 160,023 | 155,927 | ||||||
Cash and cash equivalents, end of period | $ | 117,947 | $ | 160,023 | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160210005547/en/
Source:
Charles River Laboratories International, Inc.
Investor:
Susan
E. Hardy, 781.222.6190
Corporate Vice President, Investor Relations
susan.hardy@crl.com
or
Media:
Amy
Cianciaruso, 781-222-6168
Corporate Vice President, Public Relations
amy.cianciaruso@crl.com