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Charles River Announces Third-Quarter 2009 Results
- Sales Decrease 13.1% to
$297 Million - GAAP Earnings per Share of
$0.57 - Cost-Reduction Initiatives Now Expected to Total
- Reduces Sales and EPS Guidance for 2009
and Non-GAAP Earnings
per Share of
On a GAAP basis, net income for the third quarter of 2009 was
On a non-GAAP basis, net income was
We expect this situation to worsen in the fourth quarter of 2009, which is the reason that we are reducing guidance for the year. However, we continue to expect improvement beginning in the second quarter of 2010, when our clients should have improved visibility into the industry landscape post-mergers and healthcare reform, and when funding for biotechnology companies and the economy have improved.”
Third-Quarter Segment Results
Research Models and Services (RMS)
Sales for the RMS segment were
In the third quarter of 2009, the RMS segment’s GAAP operating margin was 28.2% compared to 30.6% for the third quarter of 2008, with the decline primarily driven by lower sales of large models and higher amortization expense related to acquisitions. On a non-GAAP basis, the operating margin decreased to 30.2% from 31.1% in the third quarter of 2008.
Preclinical Services (PCS)
Third-quarter 2009 net sales for the PCS segment were
As expected, lower capacity utilization and competitive pricing pressure, partially offset by cost-saving actions, resulted in lower operating margins for the PCS segment. The 2009 third-quarter GAAP operating margin declined to 7.5% from 17.2% in the third quarter of 2008. On a non-GAAP basis, the operating margin declined to 13.8% from 21.4% in the third quarter of 2008.
Nine-Month Results
For the first nine months of 2009, net sales were
On a GAAP basis, net income was
On a non-GAAP basis, net income for the first nine months of 2009 was
Research Models and Services (RMS)
For the first nine months of 2009, RMS net sales were
Preclinical Services (PCS)
For the first nine months of 2009, PCS net sales were
Items Excluded from Non-GAAP Results
Items excluded from non-GAAP results in the third quarter of 2009 and 2008 were as follows:
($ in millions) | 3Q09 | 3Q08 | ||
Amortization of intangible assets | $8.0 | $7.6 | ||
Severance related to cost-saving actions | 2.5 | -- | ||
Impairment and other charges (1) | 1.8 | 0.7 | ||
Operating losses for PCS Arkansas and clinical Phase I Scotland | 1.2 | -- | ||
Costs associated with evaluation of acquisitions | 0.8 | 1.1 | ||
Gain on the sale of U.K. real estate | (0.8) | -- | ||
Deferred tax revaluation | -- | 0.8 | ||
Convertible debt accounting | 2.9 | 2.4 | ||
Tax benefit of repatriation | (1.1) | -- | ||
Discontinued operations income tax settlement | (3.5) | -- |
(1) In the third quarter of 2009, these items were related primarily to
an asset impairment associated with the Company’s planned disposition of
its PCS facility in
Items excluded from non-GAAP results in the first nine months of 2009 and 2008 were as follows:
($ in millions) | YTD09 | YTD08 | ||
Amortization of intangible assets | $21.4 | $22.8 | ||
Severance related to cost-saving actions | 11.3 | -- | ||
Impairment and other charges (1) | 3.6 | 4.2 | ||
Operating losses for PCS Arkansas and clinical Phase I Scotland | 3.8 | -- | ||
Costs associated with evaluation of acquisitions | 1.4 | 1.1 | ||
U.S. pension curtailment | -- | (3.3) | ||
Gain on the sale of U.K. real estate | (0.8) | -- | ||
Deferred tax revaluation | -- | 0.8 | ||
Convertible debt accounting | 8.0 | 6.1 | ||
Tax benefit of repatriation | (1.1) | -- | ||
Discontinued operations income tax settlement | (3.5) | -- |
(1) In the first nine months of 2009, these items were related primarily
to an asset impairment charge and costs associated with the Company’s
planned disposition of its PCS facility in
Update on Cost-Saving Initiatives
As part of its continued efforts to manage costs and enhance operating
efficiencies during this period of weak demand, the Company implemented
additional cost-saving initiatives during the third and fourth quarters
of 2009. The most significant action, in
In total, the actions implemented in 2009 are now expected to result in
cost savings of approximately
2009 Guidance
The Company is reducing its forward-looking guidance for 2009, which was
previously provided on
2009 GUIDANCE | REVISED | PRIOR | ||
Net sales | (10)% - (11)% | (7)% - (9)% | ||
GAAP EPS estimate | $1.70 - $1.74 | $1.78 - $1.90 | ||
Amortization of intangible assets | $0.30 | $0.28 | ||
Severance related to cost-saving actions | $0.16 | $0.10 | ||
Impairment and other charges | $0.04 | $0.02 | ||
Operating losses for PCS Arkansas and clinical Phase I Scotland | $0.04 | $0.04 | ||
Costs associated with evaluation of acquisitions | $0.01 | $0.01 | ||
Gain on the sale of U.K. real estate | ($0.01) | -- | ||
Convertible debt accounting | $0.10 | $0.12 | ||
Tax benefit of repatriation | ($0.01) | -- | ||
Discontinued operations income tax settlement | ($0.05) | -- | ||
Non-GAAP EPS estimate | $2.28 - $2.32 | $2.35 - $2.47 |
Webcast
Use of Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, such as
non-GAAP earnings per diluted share, which exclude amortization of
intangible assets and other charges related to our acquisitions, charges
related to the dispositions of our clinical Phase I business in
Caution Concerning Forward-Looking Statements
This news 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,” “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 2009 sales
and earnings; the future demand for drug discovery and development
products and services (particularly in light of the challenging economic
environment), including the outsourcing of these services and present
spending trends by our customers; the impact of specific actions
intended to improve overall operating efficiencies and profitability;
Charles River’s expectations with respect to the impact of acquisitions
on the Company, its service offerings, and earnings; expectations for
consolidations within the pharmaceutical industry; future cost reduction
activities by our customers; and Charles River’s future performance as
delineated in our forward-looking guidance, and particularly our
expectations with respect to sales and foreign exchange impact. In
addition, these statements include the availability of funding for our
customers and the impact of economic and market conditions on them
generally, and the anticipated strength of our balance sheet, the
effects of our 2009 cost-saving actions and other actions designed to
manage expenses, operating costs and capital spending, and to streamline
efficiency, and the ability of the Company to withstand the current
market conditions. Forward-looking statements are based on Charles
River’s current expectations and beliefs, and involve a number of risks
and uncertainties that are difficult to predict and that could cause
actual results to differ materially from those stated or implied by the
forward-looking statements. Those risks and uncertainties include, but
are not limited to: the ability to successfully integrate the
acquisition of the business and assets of
About Charles River
Accelerating Drug Development. Exactly. 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 approximately 8,000 employees worldwide are focused on providing clients with exactly what they need to improve and expedite the discovery, development through first-in-human evaluation, 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) | ||||||||||||||||
(dollars in thousands, except for per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 26,
2009 |
September 27,
2008 |
September 26,
2009 |
September 27,
2008 |
|||||||||||||
Total net sales | $ | 297,485 | $ | 342,227 | $ | 907,170 | $ | 1,032,046 | ||||||||
Cost of products sold and services provided | 190,921 | 211,957 | 577,923 | 633,412 | ||||||||||||
Gross margin | 106,564 | 130,270 | 329,247 | 398,634 | ||||||||||||
Selling, general and administrative | 54,129 | 54,488 | 172,889 | 174,887 | ||||||||||||
Amortization of intangibles | 7,988 | 7,609 | 21,356 | 22,780 | ||||||||||||
Operating income | 44,447 | 68,173 | 135,002 | 200,967 | ||||||||||||
Interest income (expense) | (5,288 | ) | (3,655 | ) | (14,834 | ) | (9,210 | ) | ||||||||
Other income (expense) | 1,281 | (1,397 | ) | 2,584 | (2,501 | ) | ||||||||||
Income from continuing operations before income taxes | 40,440 | 63,121 | 122,752 | 189,256 | ||||||||||||
Provision for income taxes | 6,900 | 17,628 | 30,688 | 50,899 | ||||||||||||
Income from continuing operations, net of tax | 33,540 | 45,493 | 92,064 | 138,357 | ||||||||||||
Discontinued operations, net of tax | 3,451 | - | 3,451 | - | ||||||||||||
Net income | 36,991 | 45,493 | 95,515 | 138,357 | ||||||||||||
Noncontrolling interests | 322 | (5 | ) | 1,357 | 336 | |||||||||||
Net income attributable to common shareholders | $ | 37,313 | $ | 45,488 | $ | 96,872 | $ | 138,693 | ||||||||
Earnings per common share | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | 0.52 | $ | 0.68 | $ | 1.43 | $ | 2.06 | ||||||||
Discontinued operations | $ | 0.05 | $ | - | $ | 0.05 | $ | - | ||||||||
Net | $ | 0.57 | $ | 0.68 | $ | 1.48 | $ | 2.06 | ||||||||
Diluted: | ||||||||||||||||
Continuing operations | $ | 0.52 | $ | 0.64 | $ | 1.42 | $ | 1.96 | ||||||||
Discontinued operations | $ | 0.05 | $ | - | $ | 0.05 | $ | - | ||||||||
Net | $ | 0.57 | $ | 0.64 | $ | 1.47 | $ | 1.96 | ||||||||
Weighted average number of common shares outstanding | ||||||||||||||||
Basic | 64,985,522 | 67,167,827 | 65,391,036 | 67,380,141 | ||||||||||||
Diluted | 65,462,206 | 70,924,697 | 65,719,104 | 70,692,234 |
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||
(dollars in thousands) | ||||||
September 26,
2009 |
December 27,
2008 |
|||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 192,198 | $ | 243,592 | ||
Trade receivables, net | 212,872 | 210,214 | ||||
Inventories | 100,290 | 96,882 | ||||
Other current assets | 61,003 | 67,451 | ||||
Total current assets | 566,363 | 618,139 | ||||
Property, plant and equipment, net | 863,786 | 837,246 | ||||
Goodwill, net | 495,901 | 457,578 | ||||
Other intangibles, net | 179,131 | 136,100 | ||||
Deferred tax asset | 33,468 | 37,348 | ||||
Other assets | 52,883 | 55,002 | ||||
Total assets | $ | 2,191,532 | $ | 2,141,413 | ||
Liabilities and Equity | ||||||
Current liabilities | ||||||
Current portion of long-term debt & capital leases | $ | 34,594 | $ | 35,452 | ||
Accounts payable | 35,843 | 40,517 | ||||
Accrued compensation | 42,537 | 54,870 | ||||
Deferred revenue | 73,416 | 86,707 | ||||
Accrued liabilities | 50,288 | 60,741 | ||||
Other current liabilities | 17,421 | 22,711 | ||||
Total current liabilities | 254,099 | 300,998 | ||||
Long-term debt & capital leases | 463,748 | 479,880 | ||||
Other long-term liabilities | 124,511 | 118,827 | ||||
Total liabilities | 842,358 | 899,705 | ||||
Total equity | 1,349,174 | 1,241,708 | ||||
Total liabilities and equity | $ | 2,191,532 | $ | 2,141,413 |
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |||||||||||||||||
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED) | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 26,
2009 |
September 27,
2008 |
September 26,
2009 |
September 27,
2008 |
||||||||||||||
Research Models and Services | |||||||||||||||||
Net sales | $ | 163,313 | $ | 165,656 | $ | 490,485 | $ | 507,100 | |||||||||
Gross margin | 68,623 | 70,813 | 208,142 | 223,498 | |||||||||||||
Gross margin as a % of net sales | 42.0 | % | 42.7 | % | 42.4 | % | 44.1 | % | |||||||||
Operating income | 46,131 | 50,673 | 144,469 | 158,685 | |||||||||||||
Operating income as a % of net sales | 28.2 | % | 30.6 | % | 29.5 | % | 31.3 | % | |||||||||
Depreciation and amortization | 9,346 | 7,062 | 25,068 | 20,751 | |||||||||||||
Capital expenditures | 8,933 | 12,819 | 22,864 | 47,326 | |||||||||||||
Preclinical Services | |||||||||||||||||
Net sales | $ | 134,172 | $ | 176,571 | $ | 416,685 | $ | 524,946 | |||||||||
Gross margin | 37,941 | 59,457 | 121,105 | 175,136 | |||||||||||||
Gross margin as a % of net sales | 28.3 | % | 33.7 | % | 29.1 | % | 33.4 | % | |||||||||
Operating income | 10,044 | 30,390 | 36,926 | 82,507 | |||||||||||||
Operating income as a % of net sales | 7.5 | % | 17.2 | % | 8.9 | % | 15.7 | % | |||||||||
Depreciation and amortization | 15,492 | 15,913 | 44,640 | 47,606 | |||||||||||||
Capital expenditures | 9,532 | 33,824 | 40,663 | 104,900 | |||||||||||||
Unallocated Corporate Overhead | $ | (11,728 | ) | $ | (12,890 | ) | $ | (46,393 | ) | $ | (40,225 | ) | |||||
Total | |||||||||||||||||
Net sales | $ | 297,485 | $ | 342,227 | $ | 907,170 | $ | 1,032,046 | |||||||||
Gross margin | 106,564 | 130,270 | 329,247 | 398,634 | |||||||||||||
Gross margin as a % of net sales | 35.8 | % | 38.1 | % | 36.3 | % | 38.6 | % | |||||||||
Operating income | 44,447 | 68,173 | 135,002 | 200,967 | |||||||||||||
Operating income as a % of net sales | 14.9 | % | 19.9 | % | 14.9 | % | 19.5 | % | |||||||||
Depreciation and amortization | 24,838 | 22,975 | 69,708 | 68,357 | |||||||||||||
Capital expenditures | 18,465 | 46,643 | 63,527 | 152,226 |
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | ||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP | ||||||||||||||||||
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED) (1) | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 26,
2009 |
September 27,
2008 |
September 26,
2009 |
September 27,
2008 |
|||||||||||||||
Research Models and Services | ||||||||||||||||||
Net sales | $ | 163,313 | $ | 165,656 | $ | 490,485 | $ | 507,100 | ||||||||||
Operating income | 46,131 | 50,673 | 144,469 | 158,685 | ||||||||||||||
Operating income as a % of net sales | 28.2 | % | 30.6 | % | 29.5 | % | 31.3 | % | ||||||||||
Add back: | ||||||||||||||||||
Amortization related to acquisitions | 2,351 | 602 | 4,983 | 1,730 | ||||||||||||||
Severance | 766 | - | 3,614 | - | ||||||||||||||
Impairment and other charges (2) | - | 315 | - | 949 | ||||||||||||||
Operating income, excluding specified charges (Non-GAAP) | $ | 49,248 | $ | 51,590 | $ | 153,066 | $ | 161,364 | ||||||||||
Non-GAAP operating income as a % of net sales | 30.2 | % | 31.1 | % | 31.2 | % | 31.8 | % | ||||||||||
Preclinical Services | ||||||||||||||||||
Net sales | $ | 134,172 | $ | 176,571 | $ | 416,685 | $ | 524,946 | ||||||||||
Operating income | 10,044 | 30,390 | 36,926 | 82,507 | ||||||||||||||
Operating income as a % of net sales | 7.5 | % | 17.2 | % | 8.9 | % | 15.7 | % | ||||||||||
Add back: | ||||||||||||||||||
Amortization related to acquisitions | 5,639 | 7,007 | 16,374 | 21,050 | ||||||||||||||
Severance | 712 | - | 5,023 | - | ||||||||||||||
Impairment and other charges (2) | 1,832 | 360 | 3,444 | 3,233 | ||||||||||||||
Operating losses for PCS Arkansas and Phase 1 Scotland | 1,164 | - | 3,846 | - | ||||||||||||||
Gain on sale of UK real estate | (827 | ) | - | (827 | ) | - | ||||||||||||
Operating income, excluding specified charges (Non-GAAP) | $ | 18,564 | $ | 37,757 | $ | 64,786 | $ | 106,790 | ||||||||||
Non-GAAP operating income as a % of net sales | 13.8 | % | 21.4 | % | 15.5 | % | 20.3 | % | ||||||||||
Unallocated Corporate Overhead | $ | (11,728 | ) | $ | (12,890 | ) | $ | (46,393 | ) | $ | (40,225 | ) | ||||||
Add back: | ||||||||||||||||||
Severance | 972 | - | 2,625 | - | ||||||||||||||
Impairment and other charges (2) | 11 | - | 194 | - | ||||||||||||||
Costs associated with the evaluation of acquisitions | 777 | 1,125 | 1,416 | 1,125 | ||||||||||||||
U.S. pension curtailment | - | - | - | (3,276 | ) | |||||||||||||
Convertible debt accounting (3) | 53 | 38 | 150 | 67 | ||||||||||||||
Unallocated corporate overhead, excluding specified charges (Non-GAAP) | $ | (9,915 | ) | $ | (11,727 | ) | $ | (42,008 | ) | $ | (42,309 | ) | ||||||
Total | ||||||||||||||||||
Net sales | $ | 297,485 | $ | 342,227 | $ | 907,170 | $ | 1,032,046 | ||||||||||
Operating income | 44,447 | 68,173 | 135,002 | 200,967 | ||||||||||||||
Operating income as a % of net sales | 14.9 | % | 19.9 | % | 14.9 | % | 19.5 | % | ||||||||||
Add back: | ||||||||||||||||||
Amortization related to acquisitions | 7,990 | 7,609 | 21,357 | 22,780 | ||||||||||||||
Severance | 2,450 | - | 11,262 | - | ||||||||||||||
Impairment and other charges (2) | 1,843 | 675 | 3,638 | 4,182 | ||||||||||||||
Operating losses for PCS Arkansas and Phase 1 Scotland | 1,164 | - | 3,846 | - | ||||||||||||||
Costs associated with the evaluation of acquisitions | 777 | 1,125 | 1,416 | 1,125 | ||||||||||||||
U.S. pension curtailment | - | - | - | (3,276 | ) | |||||||||||||
Gain on sale of UK real estate | (827 | ) | - | (827 | ) | - | ||||||||||||
Convertible debt accounting (3) | 53 | 38 | 150 | 67 | ||||||||||||||
Operating income, excluding specified charges (Non-GAAP) | $ | 57,897 | $ | 77,620 | $ | 175,844 | $ | 225,845 | ||||||||||
Non-GAAP operating income as a % of net sales | 19.5 | % | 22.7 | % | 19.4 | % | 21.9 | % | ||||||||||
(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, 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 and regulations. | |||||||||||||||||
(2) | For the three months ended September 26, 2009 these items primarily related to an asset impairment associated with the Company's planned disposition of its PCS facility in Arkansas. For the nine months ended September 26, 2009 these items related primarily to an asset impairment charge and costs associated with the Company's planned disposition of its PCS facility in Arkansas and the divesture of its clinical Phase I business in Scotland, as well as miscellaneous expenses. For the three and nine months ended September 27, 2008, these items primarily related to the Company's disposition of its legacy PCS facility in Worcester, Massachusetts and the divesture of its Vaccine business (RMS) in Mexico. | |||||||||||||||||
(3) | 2009 and 2008 include the impact of new convertible debt accounting, which increased depreciation expense. |
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | ||||||||||||||||||
RECONCILIATION OF GAAP EARNINGS TO NON-GAAP EARNINGS (1) | ||||||||||||||||||
(dollars in thousands, except for per share data) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 26,
2009 |
September 27,
2008 |
September 26,
2009 |
September 27,
2008 |
|||||||||||||||
Net income attributable to common shareholders | $ | 37,313 | $ | 45,488 | $ | 96,872 | $ | 138,693 | ||||||||||
Less: Discontinued operations | (3,451 | ) | - | (3,451 | ) | - | ||||||||||||
Net income from continuing operations | 33,862 | 45,488 | 93,421 | 138,693 | ||||||||||||||
Add back: | ||||||||||||||||||
Amortization related to acquisitions | 7,990 | 7,609 | 21,357 | 22,780 | ||||||||||||||
Severance | 2,450 | - | 11,262 | - | ||||||||||||||
Impairment and other charges (2) | 1,843 | 675 | 3,638 | 4,182 | ||||||||||||||
Operating losses for PCS Arkansas and Phase 1 Scotland | 1,164 | - | 3,846 | - | ||||||||||||||
Costs associated with the evaluation of acquisitions | 777 | 1,125 | 1,416 | 1,125 | ||||||||||||||
U.S. pension curtailment | - | - | - | (3,276 | ) | |||||||||||||
Gain on sale of UK real estate | (827 | ) | - | (827 | ) | - | ||||||||||||
Deferred tax revaluation | - | 763 | - | 763 | ||||||||||||||
Convertible debt accounting, net (3) | 2,915 | 2,403 | 8,000 | 6,114 | ||||||||||||||
Tax benefit of repatriation | (1,084 | ) | - | (1,084 | ) | - | ||||||||||||
Tax effect | (6,470 | ) | (4,135 | ) | (17,090 | ) | (10,277 | ) | ||||||||||
Net income, excluding specified charges (Non-GAAP) | $ | 42,620 | $ | 53,928 | $ | 123,939 | $ | 160,104 | ||||||||||
Weighted average shares outstanding - Basic | 64,985,522 | 67,167,827 | 65,391,036 | 67,380,141 | ||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||
2.25% senior convertible debentures | - | 1,752,046 | - | 1,547,131 | ||||||||||||||
Stock options and contingently issued restricted stock | 474,140 | 1,385,703 | 327,104 | 1,359,051 | ||||||||||||||
Warrants | 2,544 | 619,121 | 964 | 405,911 | ||||||||||||||
Weighted average shares outstanding - Diluted | 65,462,206 | 70,924,697 | 65,719,104 | 70,692,234 | ||||||||||||||
Basic earnings per share | $ | 0.57 | $ | 0.68 | $ | 1.48 | $ | 2.06 | ||||||||||
Diluted earnings per share | $ | 0.57 | $ | 0.64 | $ | 1.47 | $ | 1.96 | ||||||||||
Basic earnings per share, excluding specified charges (Non-GAAP) | $ | 0.66 | $ | 0.80 | $ | 1.90 | $ | 2.38 | ||||||||||
Diluted earnings per share, excluding specified charges (Non-GAAP) | $ | 0.65 | $ | 0.76 | $ | 1.89 | $ | 2.26 | ||||||||||
(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, 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 and regulations. | |||||||||||||||||
(2) | For the three months ended September 26, 2009 these items primarily related to an asset impairment associated with the Company's planned disposition of its PCS facility in Arkansas. For the nine months ended September 26, 2009 these items related primarily to an asset impairment charge and costs associated with the Company's planned disposition of its PCS facility in Arkansas and the divesture of its clinical Phase I business in Scotland, as well as miscellaneous expenses. For the three and nine months ended September 27, 2008, these items primarily related to the Company's disposition of its legacy PCS facility in Worcester, Massachusetts and the divesture of its Vaccine business (RMS) in Mexico. | |||||||||||||||||
(3) | The three and nine months ended September 26, 2009 include the impact of new convertible debt accounting, which increased interest expense by $3,063 and $8,829, capitalized interest by $201 and $979 and depreciation expense by $53 and $150, respectively. The three and nine months ended September 27, 2008 have been restated to include the impact of new convertible debt accounting, which increased interest expense by $2,859 and $8,242, capitalized interest by $494 and $2,195 and depreciation expense by $38 and $67, respectively. |
Source:
Charles River Laboratories International, Inc.
Investor Contact:
Susan
E. Hardy, 781-222-6190
Corporate Vice President, Investor Relations
or
Media
Contact:
Amy Cianciaruso, 781-222-6168
Associate Director,
Public Relations