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Charles River Laboratories Announces Fourth-Quarter and Full-Year 2013 Results from Continuing Operations and Provides 2014 Guidance
- Fourth-Quarter Sales of
$289.2 Million and Full-Year 2013 Sales of$1.17 Billion - Fourth-Quarter GAAP Earnings per Share of
$0.40 and Non-GAAP Earnings per Share of$0.73 - Full-Year GAAP Earnings per Share of
$2.15 and Non-GAAP Earnings per Share of$2.93 - 2014 Guidance Includes Sales Growth of 3%-5%, Non-GAAP EPS of
$3.00-$3.10 , and GAAP EPS of$2.68-$2.78
On a GAAP basis, net income from continuing operations for the fourth quarter of 2013 was
On a non-GAAP basis, net income from continuing operations was
We view 2014 as a year of continuing progress, with sales growth in a range of 3% to 5%, operating margin improvement, and non-GAAP earnings per share in a range of
Fourth-Quarter Segment Results
Research Models and Services (RMS)
Net sales for the RMS segment were
In the fourth quarter of 2013, the RMS segment’s GAAP operating margin was 21.0% compared to 25.6% for the fourth quarter of 2012. On a non-GAAP basis, the operating margin decreased slightly to 27.1% from 27.3% in the fourth quarter of 2012. The non-GAAP operating margin reflected lower sales and profitability for legacy research models, partially offset by sales and margin improvement in the EMD business and a strong performance by Vital River.
Preclinical Services (PCS)
Fourth-quarter 2013 net sales from continuing operations for the PCS segment were
In the fourth quarter of 2013, the PCS segment’s GAAP operating margin decreased to 5.5% from 8.0% in the fourth quarter of 2012. On a non-GAAP basis, the operating margin increased to 15.3% from 12.1% in the fourth quarter of 2012. The non-GAAP operating margin improvement was due primarily to increased study volume, favorable study mix and improved operating efficiency. In addition, the PCS non-GAAP operating margin benefited from a 2013 tax law change in the
Stock Repurchase Update
During the fourth quarter of 2013, the Company repurchased approximately 1.5 million shares for
Full-Year Results
For 2013, net sales from continuing operations increased by 3.2% to
On a GAAP basis, net income from continuing operations for 2013 was
On a non-GAAP basis, net income from continuing operations for 2013 was
Research Models and Services (RMS)
For 2013, RMS net sales were
Preclinical Services (PCS)
For 2013, PCS net sales were
2014 Guidance
The Company is providing the following financial guidance for 2014. This guidance assumes that net sales growth for both the RMS and PCS segments will be within the consolidated range in 2014. Based on current rates, foreign currency translation is expected to provide only a small benefit to reported net sales. Earnings per share in 2014 are expected to benefit from higher sales and enhanced efficiency initiatives.
2014 GUIDANCE (from continuing operations) | |||||
Net sales growth, reported | 3.0% – 5.0% | ||||
Impact of foreign exchange | N/M | ||||
Net sales growth, constant currency | 3.0% - 5.0% | ||||
GAAP EPS estimate | $2.68 - $2.78 | ||||
Amortization of intangible assets | $0.22 | ||||
Operating losses (1) | $0.04 | ||||
Charges related to global efficiency initiative (2) | $0.05-$0.07 | ||||
Non-GAAP EPS estimate | $3.00 - $3.10 |
(1) These costs relate primarily to the Company’s PCS facility in
(2) These charges are related to the consolidation of a research model production operation in
Webcast
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 and other charges related to our acquisitions; expenses associated with evaluating acquisitions; charges, gains and losses attributable to businesses or properties we plan to close, consolidate or divest; severance costs associated with our efficiency initiatives; accelerated depreciation charges related to the consolidation of research model production operations 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,” “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 sales, operating margins, earnings per share, and the expected impact of foreign exchange rates; the future demand for drug discovery and development products and services, including our expectations for future revenue trends; the development and performance of our services and products, including the impact this can have on our clients’ drug development models; market and industry conditions including the outsourcing of these services and spending trends by our clients; the potential outcome of and impact to our business and financial operations due to litigation and legal proceedings, including with respect to our ongoing investigation of inaccurate billing with respect to certain government contracts; and Charles River’s future performance as delineated in our forward-looking guidance, and particularly our expectations with respect to sales, the impact of foreign exchange, and enhanced efficiency initiatives. 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 businesses we acquire; the ability to execute our efficiency initiatives on an effective and timely basis (including divestitures and site closures); 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 sales; special interest groups; contaminations; industry trends; new displacement technologies; USDA and
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 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) | |||||||||||||||||
(dollars in thousands, except for per share data) | |||||||||||||||||
Three Months Ended |
Twelve Months Ended | ||||||||||||||||
December 28, |
December 29, |
December 28, |
December 29, | ||||||||||||||
Total net sales | $ | 289,228 | $ | 280,140 | $ | 1,165,528 | $ | 1,129,530 | |||||||||
Cost of products sold and services provided | 201,033 | 189,115 | 770,626 | 737,449 | |||||||||||||
Gross margin | 88,195 | 91,025 | 394,902 | 392,081 | |||||||||||||
Selling, general and administrative | 58,674 | 51,324 | 225,695 | 208,248 | |||||||||||||
Amortization of intangibles | 4,914 | 4,632 | 17,806 | 18,068 | |||||||||||||
Operating income | 24,607 | 35,069 | 151,401 | 165,765 | |||||||||||||
Interest income (expense) | (2,572 | ) | (8,180 | ) | (20,239 | ) | (32,753 | ) | |||||||||
Other income (expense) | 1,071 | (684 | ) | 7,165 | (3,266 | ) | |||||||||||
Income from continuing operations before income taxes | 23,106 | 26,205 | 138,327 | 129,746 | |||||||||||||
Provision for income taxes | 3,580 | 3,488 | 32,911 | 27,628 | |||||||||||||
Income from continuing operations, net of tax | 19,526 | 22,717 | 105,416 | 102,118 | |||||||||||||
(Loss) income from discontinued operations, net of tax | (82 | ) | (4,189 | ) | (1,265 | ) | (4,252 | ) | |||||||||
Net income | 19,444 | 18,528 | 104,151 | 97,866 | |||||||||||||
Net loss (income) from noncontrolling interests | (345 | ) | (112 | ) | (1,323 | ) | (571 | ) | |||||||||
Net income attributable to common shareowners | $ | 19,099 | $ | 18,416 | $ | 102,828 | $ | 97,295 | |||||||||
Earnings per common share | |||||||||||||||||
Basic: | |||||||||||||||||
Continuing operations | $ | 0.41 | $ | 0.48 | $ | 2.18 | $ | 2.12 | |||||||||
Discontinued operations | $ | - | $ | (0.09 | ) | $ | (0.03 | ) | $ | (0.09 | ) | ||||||
Net | $ | 0.41 | $ | 0.39 | $ | 2.15 | $ | 2.03 | |||||||||
Diluted: | |||||||||||||||||
Continuing operations | $ | 0.40 | $ | 0.47 | $ | 2.15 | $ | 2.10 | |||||||||
Discontinued operations | $ | - | $ | (0.09 | ) | $ | (0.03 | ) | $ | (0.09 | ) | ||||||
Net | $ | 0.40 | $ | 0.38 | $ | 2.12 | $ | 2.01 | |||||||||
Weighted average number of common shares outstanding | |||||||||||||||||
Basic | 47,150,688 | 47,562,614 | 47,740,167 | 47,912,135 | |||||||||||||
Diluted | 48,134,992 | 48,257,197 | 48,489,322 | 48,406,320 | |||||||||||||
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
(dollars in thousands) | |||||||
December 28, |
December 29, | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 155,927 | $ | 109,685 | |||
Trade receivables, net | 220,630 | 203,001 | |||||
Inventories | 89,396 | 88,470 | |||||
Other current assets | 85,847 | 83,601 | |||||
Current assets of discontinued businesses | 750 | 495 | |||||
Total current assets | 552,550 | 485,252 | |||||
Property, plant and equipment, net | 676,182 | 717,020 | |||||
Goodwill, net | 230,701 | 208,609 | |||||
Other intangibles, net | 84,537 | 84,922 | |||||
Deferred tax asset | 35,536 | 38,554 | |||||
Other assets | 61,964 | 48,659 | |||||
Long-term assets of discontinued businesses | 3,151 | 3,328 | |||||
Total assets | $ | 1,644,621 | $ | 1,586,344 | |||
Liabilities and Equity | |||||||
Current liabilities | |||||||
Current portion of long-term debt & capital leases | $ | 21,437 | $ | 139,384 | |||
Accounts payable | 31,770 | 31,218 | |||||
Accrued compensation | 58,461 | 46,951 | |||||
Deferred revenue | 54,177 | 56,422 | |||||
Accrued liabilities | 56,711 | 45,208 | |||||
Other current liabilities | 22,547 | 21,262 | |||||
Current liabilities of discontinued businesses | 1,931 | 1,802 | |||||
Total current liabilities | 247,034 | 342,247 | |||||
Long-term debt & capital leases | 642,352 | 527,136 | |||||
Other long-term liabilities | 82,497 | 104,966 | |||||
Long-term liabilities of discontinued businesses | 8,080 | 8,795 | |||||
Total liabilities | 979,963 | 983,144 | |||||
Non-controlling interests | 23,674 | 2,395 | |||||
Total equity | 640,984 | 600,805 | |||||
Total liabilities and equity | $ | 1,644,621 | $ | 1,586,344 | |||
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | ||||||||||||||||||
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED) | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Three Months Ended |
Twelve Months Ended | |||||||||||||||||
December 28, |
December 29, |
December 28, |
December 29, | |||||||||||||||
Research Models and Services | ||||||||||||||||||
Net sales | $ | 172,259 | $ | 171,836 | $ | 707,126 | $ | 695,083 | ||||||||||
Gross margin | 62,892 | 65,386 | 284,808 | 289,750 | ||||||||||||||
Gross margin as a % of net sales | 36.5 | % | 38.1 | % | 40.3 | % | 41.7 | % | ||||||||||
Operating income | 36,128 | 43,964 | 181,321 | 202,362 | ||||||||||||||
Operating income as a % of net sales | 21.0 | % | 25.6 | % | 25.6 | % | 29.1 | % | ||||||||||
Depreciation and amortization | 17,444 | 9,844 | 54,822 | 37,541 | ||||||||||||||
Capital expenditures | 7,920 | 8,964 | 24,384 | 36,856 | ||||||||||||||
Preclinical Services | ||||||||||||||||||
Net sales | $ | 116,969 | $ | 108,304 | $ | 458,402 | $ | 434,447 | ||||||||||
Gross margin | 25,302 | 25,638 | 110,093 | 102,331 | ||||||||||||||
Gross margin as a % of net sales | 21.6 | % | 23.7 | % | 24.0 | % | 23.6 | % | ||||||||||
Operating income | 6,425 | 8,670 | 44,056 | 34,628 | ||||||||||||||
Operating income as a % of net sales | 5.5 | % | 8.0 | % | 9.6 | % | 8.0 | % | ||||||||||
Depreciation and amortization | 11,857 | 10,814 | 41,814 | 43,734 | ||||||||||||||
Capital expenditures | 5,915 | 4,775 | 14,770 | 10,678 | ||||||||||||||
Unallocated Corporate Overhead | $ | (17,946 | ) | $ | (17,565 | ) | $ | (73,976 | ) | $ | (71,225 | ) | ||||||
Total | ||||||||||||||||||
Net sales | $ | 289,228 | $ | 280,140 | $ | 1,165,528 | $ | 1,129,530 | ||||||||||
Gross margin | 88,194 | 91,024 | 394,901 | 392,081 | ||||||||||||||
Gross margin as a % of net sales | 30.5 | % | 32.5 | % | 33.9 | % | 34.7 | % | ||||||||||
Operating income | 24,607 | 35,069 | 151,401 | 165,765 | ||||||||||||||
Operating income as a % of net sales | 8.5 | % | 12.5 | % | 13.0 | % | 14.7 | % | ||||||||||
Depreciation and amortization | 29,301 | 20,658 | 96,636 | 81,275 | ||||||||||||||
Capital expenditures | 13,835 | 13,739 | 39,154 | 47,534 | ||||||||||||||
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP | |||||||||||||||||
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED) (1) | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Three Months Ended |
Twelve Months Ended | ||||||||||||||||
December 28, |
December 29, |
December 28, |
December 29, | ||||||||||||||
Research Models and Services | |||||||||||||||||
Net sales | $ | 172,259 | $ | 171,836 | $ | 707,126 | $ | 695,083 | |||||||||
Add back government billing adjustment | - | - | 1,495 | - | |||||||||||||
Non-GAAP net sales | $ | 172,259 | $ | 171,836 | $ | 708,621 | $ | 695,083 | |||||||||
Operating income | 36,128 | 43,964 | 181,321 | 202,362 | |||||||||||||
Operating income as a % of net sales | 21.0 | % | 25.6 | % | 25.6 | % | 29.1 | % | |||||||||
Add back: | |||||||||||||||||
Amortization of intangible assets related to acquisitions | 2,660 | 1,870 | 8,824 | 6,412 | |||||||||||||
Severance related to cost-savings actions | 1,244 | 138 | 2,054 | 1,072 | |||||||||||||
Government billing adjustment and related expenses | 226 | - | 2,402 | - | |||||||||||||
Impairment and other items (2) | 6,445 | 883 | 13,683 | 3,810 | |||||||||||||
Operating losses (3) | 15 | - | 270 | - | |||||||||||||
Operating income, excluding specified items (Non-GAAP) | $ | 46,718 | $ | 46,855 | $ | 208,554 | $ | 213,656 | |||||||||
Non-GAAP operating income as a % of net sales | 27.1 | % | 27.3 | % | 29.5 | % | 30.7 | % | |||||||||
Preclinical Services | |||||||||||||||||
Net sales | $ | 116,969 | $ | 108,304 | $ | 458,402 | $ | 434,447 | |||||||||
Operating income | 6,425 | 8,670 | 44,056 | 34,628 | |||||||||||||
Operating income as a % of net sales | 5.5 | % | 8.0 | % | 9.6 | % | 8.0 | % | |||||||||
Add back: | |||||||||||||||||
Amortization of intangible assets related to acquisitions | 2,255 | 2,763 | 8,982 | 11,655 | |||||||||||||
Severance related to cost-savings actions | 917 | 560 | 1,164 | 1,508 | |||||||||||||
Impairment and other items (2) | 7,698 | 199 | 7,698 | (34 | ) | ||||||||||||
Operating losses (3) | 628 | 941 | 3,101 | 3,641 | |||||||||||||
Operating income, excluding specified items (Non-GAAP) | $ | 17,923 | $ | 13,133 | $ | 65,001 | $ | 51,398 | |||||||||
Non-GAAP operating income as a % of net sales | 15.3 | % | 12.1 | % | 14.2 | % | 11.8 | % | |||||||||
Unallocated Corporate Overhead | $ | (17,946 | ) | $ | (17,565 | ) | $ | (73,976 | ) | $ | (71,225 | ) | |||||
Add back: | |||||||||||||||||
Costs associated with the evaluation of acquisitions | 766 | 2,140 | 1,752 | 3,774 | |||||||||||||
Convertible debt accounting | - | 53 | 107 | 213 | |||||||||||||
Unallocated corp. costs, excluding specified items (Non-GAAP) | $ | (17,180 | ) | $ | (15,372 | ) | $ | (72,117 | ) | $ | (67,238 | ) | |||||
Total | |||||||||||||||||
Net sales | $ | 289,228 | $ | 280,140 | $ | 1,165,528 | $ | 1,129,530 | |||||||||
Add back government billing adjustment | - | - | 1,495 | - | |||||||||||||
Non-GAAP net sales | $ | 289,228 | $ | 280,140 | $ | 1,167,023 | $ | 1,129,530 | |||||||||
Operating income | 24,607 | 35,069 | 151,401 | 165,765 | |||||||||||||
Operating income as a % of net sales | 8.5 | % | 12.5 | % | 13.0 | % | 14.7 | % | |||||||||
Add back: | |||||||||||||||||
Amortization of intangible assets related to acquisitions | 4,915 | 4,633 | 17,806 | 18,067 | |||||||||||||
Severance related to cost-savings actions | 2,161 | 698 | 3,218 | 2,580 | |||||||||||||
Government billing adjustment and related expenses | 226 | - | 2,402 | - | |||||||||||||
Impairment and other items (2) | 14,143 | 1,082 | 21,381 | 3,776 | |||||||||||||
Operating losses (3) | 643 | 941 | 3,371 | 3,641 | |||||||||||||
Costs associated with the evaluation of acquisitions | 766 | 2,140 | 1,752 | 3,774 | |||||||||||||
Convertible debt accounting | - | 53 | 107 | 213 | |||||||||||||
Operating income, excluding specified items (Non-GAAP) | $ | 47,461 | $ | 44,616 | $ | 201,438 | $ | 197,816 | |||||||||
Non-GAAP operating income as a % of net sales | 16.4 | % | 15.9 | % | 17.3 | % | 17.5 | % | |||||||||
(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) For the year ended
(3) Includes operating losses related primarily to the Company's PCS-Massachusetts facility.
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 |
Twelve Months Ended | ||||||||||||||||
December 28, |
December 29, |
December 28, |
December 29, | ||||||||||||||
Net income attributable to common shareholders | $ | 19,099 | $ | 18,416 | $ | 102,828 | $ | 97,295 | |||||||||
Less: Discontinued operations | 82 | 4,189 | 1,265 | 4,252 | |||||||||||||
Net income from continuing operations | 19,181 | 22,605 | 104,093 | 101,547 | |||||||||||||
Add back: | |||||||||||||||||
Amortization of intangible assets related to acquisitions | 4,915 | 4,633 | 17,806 | 18,067 | |||||||||||||
Severance related to cost-savings actions | 2,161 | 698 | 3,218 | 2,580 | |||||||||||||
Impairment and other items (2) | 14,143 | 1,075 | 21,381 | 3,963 | |||||||||||||
Operating losses (3) | 643 | 694 | 3,371 | 3,738 | |||||||||||||
Costs associated with the evaluation of acquisitions | 766 | 2,140 | 1,752 | 3,774 | |||||||||||||
Government billing adjustment and related expenses | 226 | - | 2,402 | - | |||||||||||||
Writeoff of deferred financing costs and fees related to debt refinancing | - | - | 645 | - | |||||||||||||
Loss on sale of auction rate securities | - | - | - | 712 | |||||||||||||
Convertible debt accounting, net (4) | - | 3,813 | 6,710 | 14,741 | |||||||||||||
Tax effect of items above | (6,919 | ) | (4,618 | ) | (19,126 | ) | (16,604 | ) | |||||||||
Net income, excluding specified charges (Non-GAAP) | $ | 35,116 | $ | 31,040 | $ | 142,252 | $ | 132,518 | |||||||||
Weighted average shares outstanding - Basic | 47,150,688 | 47,562,614 | 47,740,167 | 47,912,135 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options and contingently issued restricted stock | 984,304 | 694,583 | 749,155 | 494,185 | |||||||||||||
Weighted average shares outstanding - Diluted | 48,134,992 | 48,257,197 | 48,489,322 | 48,406,320 | |||||||||||||
Basic earnings per share | $ | 0.41 | $ | 0.39 | $ | 2.15 | $ | 2.03 | |||||||||
Diluted earnings per share | $ | 0.40 | $ | 0.38 | $ | 2.12 | $ | 2.01 | |||||||||
Basic earnings per share, excluding specified charges (Non-GAAP) | $ | 0.74 | $ | 0.65 | $ | 2.98 | $ | 2.77 | |||||||||
Diluted earnings per share, excluding specified charges (Non-GAAP) | $ | 0.73 | $ | 0.64 | $ | 2.93 | $ | 2.74 | |||||||||
(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) For the year ended
(3) Includes operating losses related primarily to the Company's PCS-Massachusetts facility.
(4) The year ended
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |||||||||
RECONCILIATION OF GAAP TO NON-GAAP NET SALES GROWTH (YEAR-OVER-YEAR) | |||||||||
EXCLUDING THE IMPACT OF FOREIGN EXCHANGE AND GOVERNMENT BILLING ADJUSTMENT | |||||||||
For the Three and Twelve Months Ended December 28, 2013 | |||||||||
For the three months ended December 28, 2013: |
Total CRL |
RMS Segment |
PCS Segment | ||||||
Net sales growth, reported | 3.2 | % | 0.2 | % | 8.0 | % | |||
Impact of foreign exchange | (0.5 | %) | (0.8 | %) | (0.2 | %) | |||
Non-GAAP net sales growth, constant currency | 3.7 | % | 1.0 | % | 8.2 | % | |||
For the twelve months ended December 28, 2013: |
Total CRL |
RMS Segment |
PCS Segment | ||||||
Net sales growth, reported | 3.2 | % | 1.7 | % | 5.5 | % | |||
Impact of foreign exchange | (0.8 | %) | (1.2 | %) | (0.4 | %) | |||
Impact of government billing adjustment | (0.2 | %) | (0.2 | %) | 0.0 | % | |||
Non-GAAP net sales growth, constant currency | 4.2 | % | 3.1 | % | 5.9 | % | |||
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.
Source:
Charles River Laboratories International, Inc.
Investor Contact:
Susan E. Hardy, 781-222-6190
Corporate Vice President, Investor Relations
susan.hardy@crl.com
or
Media Contact:
Amy Cianciaruso, 781-222-6168
Executive Director, Public Relations
amy.cianciaruso@crl.com