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Charles River Laboratories Announces Third-Quarter 2016 Results from Continuing Operations
– Third-Quarter Revenue of
– Third-Quarter GAAP Earnings per Share of
and Non-GAAP Earnings per Share of
– Updates 2016 Guidance –
On a GAAP basis, net income from continuing operations attributable to
common shareholders was
On a non-GAAP basis, net income from continuing operations was
A gain from the Company’s venture capital investments contributed
“The strength of our unique portfolio, the success of our strategic acquisitions and targeted sales strategies, and our initiatives to increase operating effectiveness and efficiency, are the foundation for our growth in 2016 and in the future,” Mr. Foster concluded.
Third-Quarter Segment Results
Research Models and Services (RMS)
Revenue for the RMS segment was
In the third quarter of 2016, the RMS segment’s GAAP operating margin declined to 25.8% from 26.7% in the third quarter of 2015. On a non-GAAP basis, the operating margin declined slightly to 27.3% from 27.5% in the third quarter of 2015. In both cases, the margin decline was due primarily to the mix of products and services.
Discovery and Safety Assessment (DSA)
Revenue from continuing operations for the DSA segment was
In the third quarter of 2016, the DSA segment’s GAAP operating margin
declined to 14.5% from 21.0% in the third quarter of 2015. The margin
decline was due primarily to costs associated with the evaluation and
integration of acquisitions, including amortization of intangible
assets. On a non-GAAP basis, the operating margin decreased to 22.7%
from 24.2% in the third quarter of 2015 due primarily to the acquisition
of
Manufacturing Support (Manufacturing)
Revenue for the Manufacturing segment was
In the third quarter of 2016, the Manufacturing segment’s GAAP operating margin increased to 30.0% from 25.2% in the third quarter of 2015. The GAAP operating margin increase was primarily driven by lower acquisition costs related to Celsis, as well as leverage from higher revenue in the Microbial Solutions business. On a non-GAAP basis, the operating margin increased to 33.8% from 33.2% in the third quarter of 2015, driven by operating margin improvement in the Microbial Solutions business as a result of higher revenue and the benefit of efficiency initiatives.
Updates 2016 Guidance
The Company is updating its forward-looking guidance for 2016. For the full year, reported revenue growth is expected to be at approximately the midpoint of the prior range. Reported revenue growth includes approximately a 14.5%-15.5% benefit from acquisitions and approximately a 1% reduction due to foreign exchange. The constant-currency growth rate for legacy operations in 2016 is expected to be 7%-8%.
The Company is narrowing the guidance range for GAAP earnings per share towards the low end of the previous range, reflecting higher charges related to our global efficiency initiatives, and narrowing the non-GAAP earnings per share guidance towards the higher end of the previous range, reflecting the year-to-date performance.
The Company’s guidance includes the addition of a 53rd week
this year, which is necessary to true up to a
Charles River’s revenue growth and earnings per share guidance is as follows:
2016 GUIDANCE (from continuing operations) | REVISED | PRIOR | ||||
Revenue growth, reported | 21% - 22% | 20% - 23.5% | ||||
Negative impact of foreign exchange | (~1%) | (~1%) | ||||
Revenue growth, constant currency | 22% - 23% | 21% - 24.5% | ||||
GAAP EPS estimate (1) | $3.13-$3.18 | $3.15-$3.25 | ||||
Amortization of intangible assets (2) | $0.60 | $0.60 | ||||
Charges related to global efficiency initiatives (3) | $0.25-$0.30 | $0.20 | ||||
Acquisition-related adjustments (4) | $0.45 | $0.45 | ||||
Non-GAAP EPS estimate | $4.44 - $4.49 | $4.40 - $4.50 | ||||
(1) GAAP EPS includes an estimate of approximately
(2)
Amortization of intangible assets includes an estimate of approximately
(3) 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.
(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. These
adjustments also include the write-off of deferred financing costs and
associated fees related to debt financing.
Webcast
Charles River has scheduled a live webcast on
Charles River will present at the
A live webcast of the presentation will be available through a link that will be posted on the Investor Relations section of the Charles River website at ir.criver.com. A webcast replay will be accessible through the same website approximately three hours after the presentation and will remain available for approximately two weeks.
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 related to
modifications of purchase options on remaining non-controlled equity
interests, and re-measurement of previously held equity interests;
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; executive transition costs;
a reversal of indemnification assets associated with acquisitions and
corresponding interest; write-off of and adjustments to deferred
financing costs and fees related to debt financing; gain on bargain
purchase; and costs related to a U.S. government billing adjustment and
related expenses. We exclude these items from the non-GAAP financial
measures because they are outside our normal operations. This press
release also refers to our revenue in both a GAAP and non-GAAP (constant
currency) basis. There are limitations in using non-GAAP financial
measures, as they are not prepared in accordance with generally accepted
accounting principles, and may be different than non-GAAP financial
measures used by other companies. In particular, we believe that the
inclusion of supplementary non-GAAP financial measures in this press
release helps investors to gain a meaningful understanding of our core
operating results and future prospects without the effect of these
often-one-time charges, and is consistent with how management measures
and forecasts the Company's performance, especially when comparing such
results to prior periods or forecasts. We believe that the financial
impact of our acquisitions (and in certain cases, the evaluation of such
acquisitions, whether or not ultimately consummated) is often large
relative to our overall financial performance, which can adversely
affect the comparability of our results on a period-to-period basis. In
addition, certain activities and their underlying associated costs, such
as business acquisitions, generally occur periodically but on an
unpredictable basis. Commencing in the third quarter of 2015, following
the acquisition of Celsis, we revised our approach to calculating
non-GAAP integration costs to include third-party integration costs
incurred post-acquisition. Presenting revenue on a constant-currency
basis allows investors to measure our revenue growth exclusive of
foreign currency exchange fluctuations more clearly. Non-GAAP results
also allow investors to compare the Company’s operations against the
financial results of other companies in the industry who similarly
provide non-GAAP results. The non-GAAP financial measures included in
this press release are not meant to be considered superior to or a
substitute for results of operations prepared in accordance with GAAP.
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 life science venture capital investments;
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 on the Company
(including
About Charles River
Charles River provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts. Our dedicated employees are focused on providing clients with exactly what they need to improve and expedite the discovery, early-stage development and safe manufacture of new therapies for the patients who need them. To learn more about our unique portfolio and breadth of services, visit www.criver.com.
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | ||||||||||||||||||||
SCHEDULE 1 | ||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||
(in thousands, except for per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 24, |
September 26, |
September 24, |
September 26, |
|||||||||||||||||
Total revenue | $ | 425,720 | $ | 349,465 | $ | 1,214,643 | $ | 1,009,452 | ||||||||||||
Cost of revenue (excluding amortization of intangible assets) | 269,450 | 211,390 | 747,858 | 618,934 | ||||||||||||||||
Selling, general and administrative | 85,650 | 76,225 | 269,067 | 218,953 | ||||||||||||||||
Amortization of intangible assets | 11,825 | 6,410 | 29,390 | 17,385 | ||||||||||||||||
Operating income | 58,795 | 55,440 | 168,328 | 154,180 | ||||||||||||||||
Interest income | 523 | 177 | 1,008 | 758 | ||||||||||||||||
Interest expense | (7,079 | ) | (3,851 | ) | (20,199 | ) | (11,251 | ) | ||||||||||||
Other income (expense), net | 1,017 | 1,390 | 10,059 | 1,749 | ||||||||||||||||
Income from continuing operations before income taxes | 53,256 | 53,156 | 159,196 | 145,436 | ||||||||||||||||
Provision for income taxes | 15,565 | 15,255 | 48,385 | 26,662 | ||||||||||||||||
Income from continuing operations, net of income taxes | 37,691 | 37,901 | 110,811 | 118,774 | ||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | 342 | (34 | ) | 328 | (48 | ) | ||||||||||||||
Net income | 38,033 | 37,867 | 111,139 | 118,726 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests | 298 | 488 | 1,054 | 1,297 | ||||||||||||||||
Net income attributable to common shareholders | $ | 37,735 | $ | 37,379 | $ | 110,085 | $ | 117,429 | ||||||||||||
Earnings (loss) per common share | ||||||||||||||||||||
Basic: | ||||||||||||||||||||
Continuing operations attributable to common shareholders | $ | 0.79 | $ | 0.81 | $ | 2.34 | $ | 2.52 | ||||||||||||
Discontinued operations | $ | 0.01 | $ | - | $ | - | $ | - | ||||||||||||
Net income attributable to common shareholders | $ | 0.80 | $ | 0.81 | $ | 2.34 | $ | 2.52 | ||||||||||||
Diluted: | ||||||||||||||||||||
Continuing operations attributable to common shareholders | $ | 0.78 | $ | 0.79 | $ | 2.29 | $ | 2.47 | ||||||||||||
Discontinued operations | $ | 0.01 | $ | - | $ | 0.01 | $ | - | ||||||||||||
Net income attributable to common shareholders | $ | 0.79 | $ | 0.79 | $ | 2.30 | $ | 2.47 | ||||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||||||
Basic | 47,160 | 46,290 | 46,954 | 46,572 | ||||||||||||||||
Diluted | 48,034 | 47,245 | 47,838 | 47,584 | ||||||||||||||||
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | ||||||||
SCHEDULE 2 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
(in thousands) | ||||||||
September 24, 2016 | December 26, 2015 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 105,722 | $ | 117,947 | ||||
Trade receivables, net | 359,734 | 270,068 | ||||||
Inventories | 99,374 | 93,735 | ||||||
Prepaid assets | 36,827 | 30,198 | ||||||
Other current assets | 52,921 | 47,286 | ||||||
Total current assets | 654,578 | 559,234 | ||||||
Property, plant and equipment, net | 767,177 | 677,959 | ||||||
Goodwill | 763,576 | 438,829 | ||||||
Client relationships, net | 318,751 | 213,374 | ||||||
Other intangible assets, net | 77,701 | 67,430 | ||||||
Deferred tax asset | 22,078 | 40,028 | ||||||
Other assets | 86,329 | 71,643 | ||||||
Total assets | $ | 2,690,190 | $ | 2,068,497 | ||||
Liabilities, Redeemable Noncontrolling Interest and Equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt and capital leases | $ | 25,970 | $ | 17,033 | ||||
Accounts payable | 65,809 | 36,675 | ||||||
Accrued compensation | 93,558 | 72,832 | ||||||
Deferred revenue | 119,298 | 81,343 | ||||||
Accrued liabilities | 80,524 | 89,494 | ||||||
Other current liabilities | 25,131 | 12,544 | ||||||
Current liabilities of discontinued operations | 1,757 | 1,840 | ||||||
Total current liabilities | 412,047 | 311,761 | ||||||
Long-term debt, net and capital leases | 1,233,189 | 845,997 | ||||||
Deferred tax liabilities | 54,068 | 48,223 | ||||||
Other long-term liabilities | 96,771 | 89,062 | ||||||
Long-term liabilities of discontinued operations | 6,213 | 7,890 | ||||||
Total liabilities | 1,802,288 | 1,302,933 | ||||||
Redeemable noncontrolling interest | 15,040 | 28,008 | ||||||
Total equity attributable to common shareholders | 867,969 | 733,067 | ||||||
Noncontrolling interests | 4,893 | 4,489 | ||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 2,690,190 | $ | 2,068,497 | ||||
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |||||||||||||||||||||
SCHEDULE 3 | |||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP | |||||||||||||||||||||
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED) (1) | |||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 24, 2016 | September 26, 2015 | September 24, 2016 | September 26, 2015 | ||||||||||||||||||
Research Models and Services | |||||||||||||||||||||
Revenue | $ | 120,928 | $ | 117,894 | $ | 369,325 | $ | 356,570 | |||||||||||||
Operating income | 31,224 | 31,427 | 103,055 | 93,581 | |||||||||||||||||
Operating income as a % of revenue | 25.8 | % | 26.7 | % | 27.9 | % | 26.2 | % | |||||||||||||
Add back: | |||||||||||||||||||||
Amortization of intangible assets related to acquisitions | 592 | 757 | 1,776 | 2,291 | |||||||||||||||||
Severance | 618 | 167 | 618 | 1,166 | |||||||||||||||||
Government billing adjustment and related expenses | 505 | 45 | 634 | 336 | |||||||||||||||||
Site consolidation costs, impairments and other items | 69 | 57 | 207 | 1,415 | |||||||||||||||||
Total non-GAAP adjustments to operating income | $ | 1,784 | $ | 1,026 | $ | 3,235 | $ | 5,208 | |||||||||||||
Operating income, excluding non-GAAP adjustments | $ | 33,008 | $ | 32,453 | $ | 106,290 | $ | 98,789 | |||||||||||||
Non-GAAP operating income as a % of revenue | 27.3 | % | 27.5 | % | 28.8 | % | 27.7 | % | |||||||||||||
Depreciation and amortization | $ | 5,245 | $ | 5,279 | $ | 15,613 | $ | 16,590 | |||||||||||||
Capital expenditures | $ | 2,532 | $ | 3,022 | $ | 5,966 | $ | 12,111 | |||||||||||||
Discovery and Safety Assessment | |||||||||||||||||||||
Revenue | $ | 215,817 | $ | 158,272 | $ | 594,859 | $ | 451,659 | |||||||||||||
Operating income | 31,303 | 33,191 | 94,514 | 84,856 | |||||||||||||||||
Operating income as a % of revenue | 14.5 | % | 21.0 | % | 15.9 | % | 18.8 | % | |||||||||||||
Add back: | |||||||||||||||||||||
Amortization of intangible assets related to acquisitions | 8,583 | 3,412 | 19,068 | 10,632 | |||||||||||||||||
Severance | 3,367 | 239 | 7,487 | 714 | |||||||||||||||||
Operating losses (2) | - | 1,319 | - | 2,863 | |||||||||||||||||
Acquisition related adjustments (3) | 677 | 135 | 4,317 | 160 | |||||||||||||||||
Site consolidation costs, impairments and other items | 5,125 | - | 7,279 | - | |||||||||||||||||
Total non-GAAP adjustments to operating income | $ | 17,752 | $ | 5,105 | $ | 38,151 | $ | 14,369 | |||||||||||||
Operating income, excluding non-GAAP adjustments | $ | 49,055 | $ | 38,296 | $ | 132,665 | $ | 99,225 | |||||||||||||
Non-GAAP operating income as a % of revenue | 22.7 | % | 24.2 | % | 22.3 | % | 22.0 | % | |||||||||||||
Depreciation and amortization | $ | 20,671 | $ | 11,509 | $ | 51,228 | $ | 35,060 | |||||||||||||
Capital expenditures | $ | 4,509 | $ | 4,277 | $ | 13,860 | $ | 13,756 | |||||||||||||
Manufacturing Support | |||||||||||||||||||||
Revenue | $ | 88,975 | $ | 73,299 | $ | 250,459 | $ | 201,223 | |||||||||||||
Operating income | 26,711 | 18,491 | 73,447 | 55,872 | |||||||||||||||||
Operating income as a % of revenue | 30.0 | % | 25.2 | % | 29.3 | % | 27.8 | % | |||||||||||||
Add back: | |||||||||||||||||||||
Amortization of intangible assets and inventory step-up related to acquisitions | 2,888 | 4,429 | 9,367 | 6,650 | |||||||||||||||||
Severance | 30 | 961 | 30 | 1,256 | |||||||||||||||||
Acquisition related adjustments (3) | 469 | 483 | 1,146 | 1,011 | |||||||||||||||||
Site consolidation costs, impairments and other items | - | - | 301 | - | |||||||||||||||||
Total non-GAAP adjustments to operating income | $ | 3,387 | $ | 5,873 | $ | 10,844 | $ | 8,917 | |||||||||||||
Operating income, excluding non-GAAP adjustments | $ | 30,098 | $ | 24,364 | $ | 84,291 | $ | 64,789 | |||||||||||||
Non-GAAP operating income as a % of revenue | 33.8 | % | 33.2 | % | 33.7 | % | 32.2 | % | |||||||||||||
Depreciation and amortization | $ | 6,181 | $ | 5,179 | $ | 18,682 | 12,156 | ||||||||||||||
Capital expenditures | $ | 1,862 | $ | 2,139 | $ | 8,247 | 5,475 | ||||||||||||||
Unallocated Corporate Overhead | $ | (30,443 | ) | $ | (27,669 | ) | $ | (102,688 | ) | (80,129 | ) | ||||||||||
Add back: | |||||||||||||||||||||
Severance and executive transition costs | - | 1,054 | - | 2,031 | |||||||||||||||||
Acquisition related adjustments (3) | 2,033 | 3,055 | 13,056 | 6,649 | |||||||||||||||||
Total non-GAAP adjustments to operating expense | $ | 2,033 | $ | 4,109 | $ | 13,056 | $ | 8,680 | |||||||||||||
Unallocated corporate overhead, excluding non-GAAP adjustments | $ | (28,410 | ) | $ | (23,560 | ) | $ | (89,632 | ) | $ | (71,449 | ) | |||||||||
Total | |||||||||||||||||||||
Revenue | $ | 425,720 | $ | 349,465 | $ | 1,214,643 | $ | 1,009,452 | |||||||||||||
Operating income | 58,795 | 55,440 | 168,328 | 154,180 | |||||||||||||||||
Operating income as a % of revenue | 13.8 | % | 15.9 | % | 13.9 | % | 15.3 | % | |||||||||||||
Add back: | |||||||||||||||||||||
Amortization of intangible assets and inventory step-up related to acquisitions | 12,063 | 8,598 | 30,211 | 19,573 | |||||||||||||||||
Severance and executive transition costs | 4,015 | 2,421 | 8,135 | 5,167 | |||||||||||||||||
Operating losses (2) | - | 1,319 | - | 2,863 | |||||||||||||||||
Acquisition related adjustments (3) | 3,179 | 3,673 | 18,519 | 7,820 | |||||||||||||||||
Government billing adjustment and related expenses | 505 | 45 | 634 | 336 | |||||||||||||||||
Site consolidation costs, impairments and other items | 5,194 | 57 | 7,787 | 1,415 | |||||||||||||||||
Total non-GAAP adjustments to operating income | $ | 24,956 | $ | 16,113 | $ | 65,286 | $ | 37,174 | |||||||||||||
Operating income, excluding non-GAAP adjustments | $ | 83,751 | $ | 71,553 | $ | 233,614 | $ | 191,354 | |||||||||||||
Non-GAAP operating income as a % of revenue | 19.7 | % | 20.5 | % | 19.2 | % | 19.0 | % | |||||||||||||
Depreciation and amortization | $ | 34,108 | $ | 23,814 | $ | 91,116 | $ | 69,330 | |||||||||||||
Capital expenditures | $ | 9,568 | $ | 10,452 | $ | 29,609 | $ | 35,008 | |||||||||||||
- | - | - | - | ||||||||||||||||||
|
(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 U.S. 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
(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. | ||||||||||||||||||||
SCHEDULE 4 | ||||||||||||||||||||
RECONCILIATION OF GAAP EARNINGS TO NON-GAAP EARNINGS (UNAUDITED)(1) | ||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 24, 2016 | September 26, 2015 | September 24, 2016 | September 26, 2015 | |||||||||||||||||
Net income attributable to common shareholders | $ | 37,735 | $ | 37,379 | $ | 110,085 | $ | 117,429 | ||||||||||||
Less: Income (loss) from discontinued operations, net of income taxes | (342 | ) | 34 | (328 | ) | 48 | ||||||||||||||
Net income from continuing operations attributable to common shareholders | 37,393 | 37,413 | 109,757 | 117,477 | ||||||||||||||||
Add back: | ||||||||||||||||||||
Non-GAAP adjustments to operating income (Refer to Schedule 3) | 24,956 | 16,113 | 65,286 | 37,174 | ||||||||||||||||
Reversal of an indemnification asset associated with acquisition and corresponding interest (2) | 54 | - | 54 | 10,411 | ||||||||||||||||
Write-off (adjustments) of deferred financing costs and fees related to debt financing | (462 | ) | (12 | ) | 987 | 721 | ||||||||||||||
Gain on bargain purchase (3) | - | (55 | ) | - | (9,933 | ) | ||||||||||||||
Acquisition related adjustments (4) | 815 | - | 815 | - | ||||||||||||||||
Tax effect of non-GAAP adjustments: | ||||||||||||||||||||
Reversal of uncertain tax position associated with acquisition and corresponding interest (2) | - | - | - | (10,411 | ) | |||||||||||||||
Tax effect of the remaining non-GAAP adjustments | (6,057 | ) | (4,804 | ) | (16,306 | ) | (13,422 | ) | ||||||||||||
Net income from continuing operations attributable to common shareholders, excluding non-GAAP adjustments | $ | 56,699 | $ | 48,655 | $ | 160,593 | $ | 132,017 | ||||||||||||
Weighted average shares outstanding - Basic | 47,160 | 46,290 | 46,954 | 46,572 | ||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||
Stock options, restricted stock units, performance share units and restricted stock | 874 | 955 | 884 | 1,012 | ||||||||||||||||
Weighted average shares outstanding - Diluted | 48,034 | 47,245 | 47,838 | 47,584 | ||||||||||||||||
Earnings per share from continuing operations attributable to common shareholders |
||||||||||||||||||||
Basic | $ | 0.79 | $ | 0.81 | $ | 2.34 | $ | 2.52 | ||||||||||||
Diluted | $ | 0.78 | $ | 0.79 | $ | 2.29 | $ | 2.47 | ||||||||||||
Basic, excluding non-GAAP adjustments | $ | 1.20 | $ | 1.05 | $ | 3.42 | $ | 2.83 | ||||||||||||
Diluted, excluding non-GAAP adjustments | $ | 1.18 | $ | 1.03 | $ | 3.36 | $ | 2.77 | ||||||||||||
(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 U.S. GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance.
(2) These amounts represent the reversal of an uncertain tax
position and an offsetting indemnification asset primarily related to
the acquisition of BioFocus.
(3) The amounts relate to the
acquisition of
(4)
The amount represents a
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | ||||||||||||||||
SCHEDULE 5 | ||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP REVENUE GROWTH (UNAUDITED) | ||||||||||||||||
EXCLUDING THE IMPACT OF FOREIGN EXCHANGE | ||||||||||||||||
For the three months ended September 24, 2016 | Total CRL | RMS Segment | DSA Segment | MS Segment | ||||||||||||
Revenue growth, reported | 21.8 | % | 2.6 | % | 36.4 | % | 21.4 | % | ||||||||
Impact of foreign exchange | (1.5 | %) | 0.5 | % | (3.4 | %) | (0.4 | %) | ||||||||
Non-GAAP revenue growth, constant currency | 23.3 | % | 2.1 | % | 39.8 | % | 21.8 | % | ||||||||
For the nine months ended September 24, 2016 | Total CRL | RMS Segment | DSA Segment | MS Segment | ||||||||||||
Revenue growth, reported | 20.3 | % | 3.6 | % | 31.7 | % | 24.5 | % | ||||||||
Impact of foreign exchange | (1.2 | %) | 0.0 | % | (2.3 | %) | (0.6 | %) | ||||||||
Non-GAAP revenue growth, constant currency | 21.5 | % | 3.6 | % | 34.0 | % | 25.1 | % | ||||||||
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 U.S. 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. | ||||||||||
SCHEDULE 6 | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||||
(in thousands) | ||||||||||
Nine Months Ended | ||||||||||
September 24, 2016 | September 26, 2015 | |||||||||
Cash flows relating to operating activities | $ | 186,123 | $ | 185,895 | ||||||
Cash flows relating to investing activities | (615,430 | ) | (248,979 | ) | ||||||
Cash flows relating to financing activities | 414,191 | (11,440 | ) | |||||||
Cash flows used in discontinued operations | (1,434 | ) | (1,265 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 4,325 | (10,202 | ) | |||||||
Net change in cash and cash equivalents | (12,225 | ) | (85,991 | ) | ||||||
Cash and cash equivalents, beginning of period | 117,947 | 160,023 | ||||||||
Cash and cash equivalents, end of period | $ | 105,722 | $ | 74,032 | ||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20161102005442/en/
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
Corporate Vice
President, Public Relations
amy.cianciaruso@crl.com