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Charles River Laboratories Announces First-Quarter 2021 Results
– First-Quarter Revenue of
– First-Quarter GAAP Earnings per Share of
– Updates 2021 Guidance –
Acquisitions contributed 0.7% to consolidated first-quarter revenue growth. The impact of foreign currency translation benefited reported revenue growth by 2.9%. Excluding the effect of these items, organic revenue growth of 13.0% was driven by contributions from all three business segments. The year-over-year comparison to last year’s COVID-19-related revenue impact contributed approximately 140 basis points to the reported and organic revenue growth rates in the first quarter, principally in the Research Models and Services segment.
On a GAAP basis, first-quarter net income attributable to common shareholders was
On a non-GAAP basis, net income from continuing operations was
“To maintain and enhance our position as the leading, non-clinical CRO, we are strategically expanding our portfolio and enhancing our scientific capabilities, especially in the use of more complex research techniques and advanced drug modalities such as cell and gene therapies. These investments are enabling us to offer greater value to our clients and capitalize on the significant growth opportunities,”
First-Quarter Segment Results
Research Models and Services (RMS)
Revenue for the RMS segment was
In the first quarter of 2021, the RMS segment’s GAAP operating margin increased to 25.4% from 18.7% in the first quarter of 2020. On a non-GAAP basis, the operating margin increased to 28.7% from 23.0% in the first quarter of 2020. The GAAP and non-GAAP operating margin increases were driven primarily by operating leverage from higher sales volume for research models.
Discovery and Safety Assessment (DSA)
Revenue for the DSA segment was
In the first quarter of 2021, the DSA segment’s GAAP operating margin increased to 18.1% from 16.5% in the first quarter of 2020. On a non-GAAP basis, the operating margin increased to 23.8% from 22.0% in the first quarter of 2020. The GAAP and non-GAAP operating margin increases were driven primarily by operating leverage from higher revenue in both the Discovery Services and Safety Assessment businesses.
Manufacturing Support (Manufacturing)
Revenue for the Manufacturing segment was
In the first quarter of 2021, the Manufacturing segment’s GAAP operating margin increased slightly to 33.8% from 33.6% in the first quarter of 2020. On a non-GAAP basis, the operating margin decreased slightly to 35.5% from 35.6% in the first quarter of 2020.
2021 Guidance
On
The Company is increasing its revenue growth and non-GAAP earnings per share guidance for 2021, as a result of the stronger-than-expected first quarter financial performance and an expectation that robust client demand trends will continue for the remainder of the year. This updated guidance includes the acquisitions that have already been completed in 2021, including Cognate.
The Company’s updated guidance for revenue growth, earnings per share, and free cash flow is as follows:
2021 GUIDANCE INCLUDING COGNATE |
CURRENT |
PRIOR |
Revenue growth, reported |
19% – 21% |
16% – 18% |
Less: Contribution from acquisitions (1) |
(4.5%) – (5.0%) |
(4.5%) – (5.0%) |
Unfavorable/(favorable) impact of foreign exchange |
~(2.5%) |
(2.0%) – (2.5%) |
Revenue growth, organic (2) |
12% – 14% |
9% – 11% |
GAAP EPS estimate |
|
— |
Acquisition-related amortization (3) |
|
— |
Acquisition-related adjustments (4) |
|
— |
Other items (5) |
|
— |
Venture capital and other strategic investment losses/(gains), net (6) |
|
— |
Non-GAAP EPS estimate |
|
|
Free cash flow (7) |
|
— |
Footnotes to Guidance Table: |
(1) The contribution from acquisitions reflects only those acquisitions that have been completed. |
(2) Organic revenue growth is defined as reported revenue growth adjusted for acquisitions and foreign currency translation. |
(3) Acquisition-related amortization includes an estimate of |
(4) These adjustments are related to the evaluation and integration of acquisitions, and primarily include transaction, advisory, and certain third-party integration costs, as well as certain costs associated with acquisition-related efficiency initiatives. |
(5) These items primarily relate to charges of a) approximately |
(6) Venture capital and other strategic investment performance only includes recognized gains or losses. The Company does not forecast the future performance of these investments. |
(7) Reconciliation of the current 2021 free cash flow guidance is as follows: Cash flow from operating activities of approximately |
Webcast
Charles River has scheduled a live webcast on
Charles River will virtually present at the
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.
Investor Day
Charles River will host a virtual Meeting with Management on
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, which exclude the amortization of intangible assets, and other charges related to our acquisitions; expenses associated with evaluating and integrating acquisitions and divestitures, 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 efficiency initiatives; the write-off of deferred financing costs and fees related to debt financing; third-party costs associated with the remediation of unauthorized access into our information systems detected in
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 the impact of the COVID-19 pandemic; the projected future financial performance of Charles River and our specific businesses; the future demand for drug discovery and development products and services, including our expectations for future revenue trends; our expectations with respect to the impact of acquisitions completed in 2020 and 2021 on the Company, our service offerings, client perception, strategic relationships, revenue, revenue growth rates, and earnings; the development and performance of our services and products, including our investments in our portfolio; market and industry conditions including the outsourcing of services and spending trends by our clients; and Charles River’s future performance as delineated in our revised forward-looking guidance, and particularly our expectations with respect to revenue, the impact of foreign exchange, enhanced efficiency initiatives, and the assumptions surrounding the COVID-19 pandemic that form the basis for our revised annual guidance. 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 COVID-19 pandemic, its duration, its impact on our business, results of operations, financial condition, liquidity, business practices, operations, suppliers, third party service providers, clients, employees, industry, ability to meet future performance obligations, ability to efficiently implement advisable safety precautions, and internal controls over financial reporting; the COVID-19 pandemic’s impact on client demand, the global economy and financial markets; the ability to successfully integrate businesses we acquire (including Cognate BioServices and risks and uncertainties associated with Cognate BioServices products and services, which are in areas that the Company did not previously operate); the timing and magnitude of our share repurchases; negative trends in research and development spending, negative trends in the level of outsourced services, or other cost reduction actions by our clients; the ability to convert backlog to revenue; special interest groups; contaminations; industry trends; new displacement technologies;
Estimates of COVID-19 Impact in 2020
In this press release, the Company has provided its estimates for the impact from the COVID-19 pandemic in 2020, including on the Company's revenue. These estimates were determined using methodologies and assumptions that vary depending on the specific reporting segment and situation. For the Research Models and Services segment, estimates were primarily based on comparisons to daily historical research model sales volumes prior to the COVID-19 pandemic and the subsequent reduction in research model order activity associated with our clients’ COVID-19 pandemic-related site closures and/or their reduced on-site activity, as well as our discussions with clients, particularly of our research model services and
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.
SCHEDULE 1 | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||
(in thousands, except for per share data) | |||||||||
Three Months Ended | |||||||||
Service revenue |
$ |
626,581 |
|
$ |
546,592 |
|
|||
Product revenue |
|
197,985 |
|
|
160,467 |
|
|||
Total revenue |
|
824,566 |
|
|
707,059 |
|
|||
Costs and expenses: | |||||||||
Cost of services provided (excluding amortization of intangible assets) |
|
423,975 |
|
|
372,824 |
|
|||
Cost of products sold (excluding amortization of intangible assets) |
|
92,313 |
|
|
82,174 |
|
|||
Selling, general and administrative |
|
155,733 |
|
|
129,901 |
|
|||
Amortization of intangible assets |
|
28,842 |
|
|
27,879 |
|
|||
Operating income |
|
123,703 |
|
|
94,281 |
|
|||
Other income (expense): | |||||||||
Interest income |
|
35 |
|
|
316 |
|
|||
Interest expense |
|
(29,719 |
) |
|
(15,067 |
) |
|||
Other expense, net |
|
(27,717 |
) |
|
(24,071 |
) |
|||
Income from operations, before income taxes |
|
66,302 |
|
|
55,459 |
|
|||
Provision for income taxes |
|
2,367 |
|
|
4,622 |
|
|||
Net income |
|
63,935 |
|
|
50,837 |
|
|||
Less: Net income attributable to noncontrolling interests |
|
2,405 |
|
|
68 |
|
|||
Net income attributable to common shareholders |
$ |
61,530 |
|
$ |
50,769 |
|
|||
Earnings per common share | |||||||||
Net income attributable to common shareholders: | |||||||||
Basic |
$ |
1.23 |
|
$ |
1.03 |
|
|||
Diluted |
$ |
1.20 |
|
$ |
1.02 |
|
|||
Weighted-average number of common shares outstanding; | |||||||||
Basic |
|
49,980 |
|
|
49,189 |
|
|||
Diluted |
|
51,075 |
|
|
49,966 |
|
SCHEDULE 2 | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
(in thousands, except per share amounts) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents |
$ |
465,411 |
|
$ |
228,424 |
|
|
Trade receivables, net of allowances for doubtful accounts of |
|
610,566 |
|
|
617,740 |
|
|
Inventories |
|
193,584 |
|
|
185,695 |
|
|
Prepaid assets |
|
81,726 |
|
|
96,712 |
|
|
Other current assets |
|
71,922 |
|
|
72,560 |
|
|
Total current assets |
|
1,423,209 |
|
|
1,201,131 |
|
|
Property, plant and equipment, net |
|
1,117,003 |
|
|
1,124,358 |
|
|
Operating lease right-of-use assets, net |
|
197,668 |
|
|
178,220 |
|
|
|
1,890,630 |
|
|
1,809,168 |
|
||
Client relationships, net |
|
712,384 |
|
|
721,505 |
|
|
Other intangible assets, net |
|
83,181 |
|
|
66,094 |
|
|
Deferred tax assets |
|
35,457 |
|
|
37,729 |
|
|
Other assets |
|
349,431 |
|
|
352,626 |
|
|
Total assets |
$ |
5,808,963 |
|
$ |
5,490,831 |
|
|
Liabilities, Redeemable Noncontrolling Interests and Equity | |||||||
Current liabilities: | |||||||
Current portion of long-term debt and finance leases |
$ |
2,932 |
|
$ |
50,214 |
|
|
Accounts payable |
|
127,129 |
|
|
122,475 |
|
|
Accrued compensation |
|
164,748 |
|
|
206,823 |
|
|
Deferred revenue |
|
213,032 |
|
|
207,942 |
|
|
Accrued liabilities |
|
198,188 |
|
|
149,820 |
|
|
Other current liabilities |
|
97,347 |
|
|
102,477 |
|
|
Total current liabilities |
|
803,376 |
|
|
839,751 |
|
|
Long-term debt, net and finance leases |
|
2,202,334 |
|
|
1,929,571 |
|
|
Operating lease right-of-use liabilities |
|
173,015 |
|
|
155,595 |
|
|
Deferred tax liabilities |
|
207,011 |
|
|
217,031 |
|
|
Other long-term liabilities |
|
207,008 |
|
|
205,215 |
|
|
Total liabilities |
|
3,592,744 |
|
|
3,347,163 |
|
|
Redeemable noncontrolling interests |
|
28,035 |
|
|
25,499 |
|
|
Equity: | |||||||
Preferred stock, |
|
- |
|
|
- |
|
|
Common stock, |
|
504 |
|
|
498 |
|
|
Additional paid-in capital |
|
1,659,524 |
|
|
1,627,564 |
|
|
Retained earnings |
|
686,944 |
|
|
625,414 |
|
|
|
(36,028 |
) |
|
- |
|
||
Accumulated other comprehensive loss |
|
(127,017 |
) |
|
(138,874 |
) |
|
Total equity attributable to common shareholders |
|
2,183,927 |
|
|
2,114,602 |
|
|
Noncontrolling interest |
|
4,257 |
|
|
3,567 |
|
|
Total equity |
|
2,188,184 |
|
|
2,118,169 |
|
|
Total liabilities, redeemable noncontrolling interests and equity |
$ |
5,808,963 |
|
$ |
5,490,831 |
|
SCHEDULE 3 | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
Cash flows relating to operating activities | |||||||
Net income |
$ |
63,935 |
|
$ |
50,837 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization |
|
61,508 |
|
|
57,260 |
|
|
Stock-based compensation |
|
13,189 |
|
|
10,960 |
|
|
Debt extinguishment and financing costs |
|
26,907 |
|
|
- |
|
|
Deferred income taxes |
|
(9,125 |
) |
|
(2,973 |
) |
|
Loss on venture capital and strategic equity investments, net |
|
16,719 |
|
|
12,035 |
|
|
Other, net |
|
496 |
|
|
10,495 |
|
|
Changes in assets and liabilities: | |||||||
Trade receivables, net |
|
5,598 |
|
|
(32,136 |
) |
|
Inventories |
|
(11,404 |
) |
|
4,076 |
|
|
Accounts payable |
|
9,622 |
|
|
(10,003 |
) |
|
Accrued compensation |
|
(37,360 |
) |
|
(45,245 |
) |
|
Deferred revenue |
|
5,006 |
|
|
6,065 |
|
|
Customer contract deposits |
|
(5,446 |
) |
|
4,454 |
|
|
Other assets and liabilities, net |
|
30,584 |
|
|
2,765 |
|
|
Net cash provided by operating activities |
|
170,229 |
|
|
68,590 |
|
|
Cash flows relating to investing activities | |||||||
Acquisition of businesses and assets, net of cash acquired |
|
(94,197 |
) |
|
(382,250 |
) |
|
Capital expenditures |
|
(28,030 |
) |
|
(25,721 |
) |
|
Purchases of investments and contributions to venture capital investments |
|
(16,550 |
) |
|
(7,121 |
) |
|
Proceeds from sale of investments |
|
- |
|
|
2,504 |
|
|
Other, net |
|
781 |
|
|
(1,097 |
) |
|
Net cash used in investing activities |
|
(137,996 |
) |
|
(413,685 |
) |
|
Cash flows relating to financing activities | |||||||
Proceeds from long-term debt and revolving credit facility |
|
1,954,011 |
|
|
1,409,793 |
|
|
Proceeds from exercises of stock options |
|
19,612 |
|
|
22,608 |
|
|
Payments on long-term debt, revolving credit facility, and finance lease obligations |
|
(1,714,195 |
) |
|
(925,109 |
) |
|
Purchase of treasury stock |
|
(36,028 |
) |
|
(23,675 |
) |
|
Payment of debt extinguishment and financing costs |
|
(28,680 |
) |
|
- |
|
|
Other, net |
|
- |
|
|
(4,405 |
) |
|
Net cash provided by financing activities |
|
194,720 |
|
|
479,212 |
|
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
10,953 |
|
|
290 |
|
|
Net change in cash, cash equivalents, and restricted cash |
|
237,906 |
|
|
134,407 |
|
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
233,119 |
|
|
240,046 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
471,025 |
|
$ |
374,453 |
|
|
Supplemental cash flow information: | |||||||
Cash and cash equivalents |
$ |
465,411 |
|
$ |
372,433 |
|
|
Restricted cash included in Other current assets |
|
4,012 |
|
|
444 |
|
|
Restricted cash included in Other assets |
|
1,602 |
|
|
1,576 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
471,025 |
|
$ |
374,453 |
|
SCHEDULE 4 | ||||||||
RECONCILIATION OF GAAP TO NON-GAAP | ||||||||
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED)(1) | ||||||||
(in thousands, except percentages) | ||||||||
Three Months Ended | ||||||||
Research Models and Services | ||||||||
Revenue |
$ |
176,910 |
|
$ |
145,996 |
|
||
Operating income |
|
44,935 |
|
|
27,373 |
|
||
Operating income as a % of revenue |
|
25.4 |
% |
|
18.7 |
% |
||
Add back: | ||||||||
Amortization related to acquisitions |
|
5,339 |
|
|
5,652 |
|
||
Severance |
|
7 |
|
|
(9 |
) |
||
Acquisition related adjustments (2) |
|
456 |
|
|
285 |
|
||
Site consolidation costs, impairments and other items |
|
- |
|
|
229 |
|
||
Total non-GAAP adjustments to operating income |
$ |
5,802 |
|
$ |
6,157 |
|
||
Operating income, excluding non-GAAP adjustments |
$ |
50,737 |
|
$ |
33,530 |
|
||
Non-GAAP operating income as a % of revenue |
|
28.7 |
% |
|
23.0 |
% |
||
Depreciation and amortization |
$ |
9,679 |
|
$ |
8,752 |
|
||
Capital expenditures |
$ |
2,983 |
|
$ |
5,412 |
|
||
Discovery and Safety Assessment | ||||||||
Revenue |
$ |
501,178 |
|
$ |
438,683 |
|
||
Operating income |
|
90,949 |
|
|
72,283 |
|
||
Operating income as a % of revenue |
|
18.1 |
% |
|
16.5 |
% |
||
Add back: | ||||||||
Amortization related to acquisitions |
|
22,648 |
|
|
23,007 |
|
||
Severance |
|
412 |
|
|
83 |
|
||
Acquisition related adjustments (2) |
|
5,270 |
|
|
1,289 |
|
||
Site consolidation costs, impairments and other items |
|
147 |
|
|
- |
|
||
Total non-GAAP adjustments to operating income |
$ |
28,477 |
|
$ |
24,379 |
|
||
Operating income, excluding non-GAAP adjustments |
$ |
119,426 |
|
$ |
96,662 |
|
||
Non-GAAP operating income as a % of revenue |
|
23.8 |
% |
|
22.0 |
% |
||
Depreciation and amortization |
$ |
44,608 |
|
$ |
41,330 |
|
||
Capital expenditures |
$ |
17,040 |
|
$ |
14,729 |
|
||
Manufacturing Support | ||||||||
Revenue |
$ |
146,478 |
|
$ |
122,380 |
|
||
Operating income |
|
49,437 |
|
|
41,112 |
|
||
Operating income as a % of revenue |
|
33.8 |
% |
|
33.6 |
% |
||
Add back: | ||||||||
Amortization related to acquisitions |
|
2,214 |
|
|
2,247 |
|
||
Severance |
|
294 |
|
|
256 |
|
||
Acquisition related adjustments (2) |
|
42 |
|
|
2 |
|
||
Site consolidation costs, impairments and other items |
|
40 |
|
|
- |
|
||
Total non-GAAP adjustments to operating income |
$ |
2,590 |
|
$ |
2,505 |
|
||
Operating income, excluding non-GAAP adjustments |
$ |
52,027 |
|
$ |
43,617 |
|
||
Non-GAAP operating income as a % of revenue |
|
35.5 |
% |
|
35.6 |
% |
||
Depreciation and amortization |
$ |
6,569 |
|
$ |
6,366 |
|
||
Capital expenditures |
$ |
7,110 |
|
$ |
5,161 |
|
||
Unallocated Corporate Overhead |
$ |
(61,618 |
) |
$ |
(46,487 |
) |
||
Add back: | ||||||||
Severance |
|
(151 |
) |
|
- |
|
||
Acquisition related adjustments (2) |
|
10,560 |
|
|
6,983 |
|
||
Other items (3) |
|
- |
|
|
(287 |
) |
||
Total non-GAAP adjustments to operating expense |
$ |
10,409 |
|
$ |
6,696 |
|
||
Unallocated corporate overhead, excluding non-GAAP adjustments |
$ |
(51,209 |
) |
$ |
(39,791 |
) |
||
Total | ||||||||
Revenue |
$ |
824,566 |
|
$ |
707,059 |
|
||
Operating income |
|
123,703 |
|
|
94,281 |
|
||
Operating income as a % of revenue |
|
15.0 |
% |
|
13.3 |
% |
||
Add back: | ||||||||
Amortization related to acquisitions |
|
30,201 |
|
|
30,906 |
|
||
Severance |
|
562 |
|
|
330 |
|
||
Acquisition related adjustments (2) |
|
16,328 |
|
|
8,559 |
|
||
Site consolidation costs, impairments and other items (3) |
|
187 |
|
|
(58 |
) |
||
Total non-GAAP adjustments to operating income |
$ |
47,278 |
|
$ |
39,737 |
|
||
Operating income, excluding non-GAAP adjustments |
$ |
170,981 |
|
$ |
134,018 |
|
||
Non-GAAP operating income as a % of revenue |
|
20.7 |
% |
|
19.0 |
% |
||
Depreciation and amortization |
$ |
61,508 |
|
$ |
57,260 |
|
||
Capital expenditures |
$ |
28,030 |
|
$ |
25,721 |
|
(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. | |||||
(3) |
Other items relate to third-party costs, net of insurance reimbursements, incurred during the three months ended |
SCHEDULE 5 | |||||||
RECONCILIATION OF GAAP EARNINGS TO NON-GAAP EARNINGS (UNAUDITED)(1) | |||||||
(in thousands, except per share data) | |||||||
Three Months Ended | |||||||
Net income attributable to common shareholders |
$ |
61,530 |
|
$ |
50,769 |
|
|
Add back: | |||||||
Non-GAAP adjustments to operating income (Refer to previous schedule) |
|
47,278 |
|
|
39,737 |
|
|
Write-off of deferred financing costs and fees related to debt financing |
|
25,979 |
|
|
- |
|
|
Venture capital and strategic equity investment losses, net |
|
16,719 |
|
|
12,035 |
|
|
Other (2) |
|
(2,370 |
) |
|
- |
|
|
Tax effect of non-GAAP adjustments: | |||||||
Non-cash tax provision related to international financing structure (3) |
|
1,035 |
|
|
1,073 |
|
|
Tax effect of the remaining non-GAAP adjustments |
|
(21,013 |
) |
|
(11,804 |
) |
|
Net income attributable to common shareholders, excluding non-GAAP adjustments |
$ |
129,158 |
|
$ |
91,810 |
|
|
Weighted average shares outstanding - Basic |
|
49,980 |
|
|
49,189 |
|
|
Effect of dilutive securities: | |||||||
Stock options, restricted stock units and performance share units |
|
1,095 |
|
|
777 |
|
|
Weighted average shares outstanding - Diluted |
|
51,075 |
|
|
49,966 |
|
|
Earnings per share attributable to common shareholders: | |||||||
Basic |
$ |
1.23 |
|
$ |
1.03 |
|
|
Diluted |
$ |
1.20 |
|
$ |
1.02 |
|
|
Basic, excluding non-GAAP adjustments |
$ |
2.58 |
|
$ |
1.87 |
|
|
Diluted, excluding non-GAAP adjustments |
$ |
2.53 |
|
$ |
1.84 |
|
(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 adjustment relates to the gain on an immaterial divestiture which occurred in the three months ended |
|||
(3) |
This adjustment relates to the recognition of deferred tax assets expected to be utilized as a result of changes to the Company's international financing structure. |
RECONCILIATION OF GAAP REVENUE GROWTH | ||||||||
TO NON-GAAP REVENUE GROWTH, ORGANIC (UNAUDITED) (1) |
||||||||
Three Months Ended |
Total CRL | RMS Segment | DSA Segment | MS Segment | ||||
Revenue growth, reported |
16.6 % |
21.2 % |
14.2 % |
19.7 % |
||||
Increase due to foreign exchange |
(2.9)% |
(4.2)% |
(2.3)% |
(4.1)% |
||||
Contribution from acquisitions (2) |
(0.7)% |
(2.2)% |
(0.3)% |
- % |
||||
Non-GAAP revenue growth, organic (3) |
13.0 % |
14.8 % |
11.6 % |
15.6 % |
(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 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) |
Organic revenue growth is defined as reported revenue growth adjusted for acquisitions and foreign exchange. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005173/en/
Investor Contacts:
Corporate Vice President,
Investor Relations
781.222.6455
todd.spencer@crl.com
Media Contact:
Corporate Vice President,
Public Relations
781.222.6168
amy.cianciaruso@crl.com
Source: