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Charles River Laboratories Provides 2013 Financial Guidance
“As a result, we are confident that sales growth will accelerate in
2013, to a range of 3% to 5% on a constant currency basis, and that
non-GAAP earnings per share will increase at a slightly higher rate, to
a range of
2013 Guidance
Sales and earnings per share guidance for 2013 excludes the impact of
acquisitions until the transaction has been completed. The Company
continues to expect that the acquisition of
2013 SALES GUIDANCE (from continuing operations) | |||||
Net sales growth, reported | 2.5% – 4.5% | ||||
Impact of foreign exchange | Approx. 0.5% | ||||
Net sales growth, constant currency | 3.0% - 5.0% | ||||
A reconciliation of GAAP to non-GAAP earnings per share is as follows:
2013 EPS GUIDANCE (from continuing operations) | ||||
GAAP EPS estimate | $2.45 - $2.55 | |||
Amortization of intangible assets | $0.21 | |||
Operating losses (1) | $0.04 | |||
Convertible debt accounting | $0.10 | |||
Non-GAAP EPS estimate | $2.80 - $2.90 |
(1) These costs relate primarily to the Company’s PCS facility in
2012 Guidance
The Company is reaffirming its forward-looking sales and earnings per
share guidance for 2012, which was previously provided on
2012 GUIDANCE (from continuing operations) | ||||
Net sales growth, reported | Approx. (1%) | |||
Impact of foreign exchange | Approx. 2% | |||
Net sales growth, constant currency | Approx. 1% | |||
GAAP EPS estimate | $2.08 - $2.13 | |||
Amortization of intangible assets | $0.25 | |||
Operating losses (1) | $0.05 | |||
Severance costs, impairment and other items (2) | $0.10 | |||
Convertible debt accounting | $0.20 | |||
Non-GAAP EPS estimate | $2.68 - $2.73 |
(1) These costs relate primarily to the Company’s PCS facility in
(2) Other items primarily include: costs associated with the evaluation of acquisitions; a loss on the sale of auction rate securities; and a gain on the sale of real estate related to RMS Canada.
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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 and operating losses attributable to our businesses we close or divest (or plan to), severance costs associated with our cost-savings actions, a loss on the sale of auction rate securities; a gain on the sale of real estate related to RMS Canada, and the additional interest recorded as a result of the adoption in 2009 of an accounting standard related to our convertible debt accounting which increased interest and depreciation expense. We exclude these items from the non-GAAP financial measures because they are outside our normal operations. 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, such as business acquisitions, happen infrequently and the underlying costs associated with such activities do not recur on a regular basis. 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. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules and regulations. Reconciliations of the non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures are set forth in the text of this press release, and can also be found on the Company’s website at ir.criver.com.
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 2012 and 2013 financial performance including sales,
operating income, and earnings per share; the future demand for drug
discovery and development products and services; the development and
performance of our services and products; market and industry conditions
including the outsourcing of these services and spending trends by our
customers; our ability to be awarded future strategic partnerships; and
Charles River’s future performance as otherwise delineated in our
forward-looking guidance, and particularly our expectations with respect
to sales and foreign exchange impact. 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 cost-savings actions
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
customers; 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.
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
Director, Public
Relations
amy.cianciaruso@crl.com