Investor Relations

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.


News Release

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Charles River Laboratories Reaffirms Guidance for 2007 and Provides Guidance for 2008

WILMINGTON, Mass.--(BUSINESS WIRE)--Dec. 12, 2007--Charles River Laboratories International, Inc. (NYSE:CRL) today reaffirmed its previously announced guidance for 2007 and provided guidance for 2008.

2007 Guidance Reaffirmed

For 2007, Charles River is maintaining its previously announced sales growth guidance in a range of 14-16%, which includes approximately 5% related to the acquisition of Northwest Kinetics in October 2006 and foreign exchange. GAAP earnings per diluted share from continuing operations are expected to be in a range of $2.22 to $2.25, and non-GAAP earnings per diluted share from continuing operations in a range of $2.56 to $2.59. A reconciliation of 2007 GAAP to non-GAAP earnings per diluted share is as follows:

2007 EPS GUIDANCE (from continuing operations)
GAAP EPS estimates                                       $2.22 - $2.25
Amortization of intangible assets                            $0.32
Charge to exit Worcester facility, gain on sale of real
 estate and other items, net                              $0.01-$0.03
Non-GAAP EPS estimates                                   $2.56 - $2.59

2008 Guidance

The Company expects 2008 revenue growth to be in a range of 10-13%, including an approximate 1% increase from foreign exchange. The Preclinical Services segment is expected to grow at a low- to mid-teens rate, benefiting from the strong demand for outsourced development services and the addition of new capacity. The Research Models and Services segment is expected to grow at a high-single-digit rate, driven by broad-based segment growth, especially in the North America research models, research model services and In Vitro businesses.

GAAP earnings per diluted share for 2008 are expected to be in a range of $2.59 to $2.69. Non-GAAP earnings per diluted share from continuing operations, which exclude approximately $0.28 per diluted share of amortization of intangible assets related to acquisitions, are expected to be in a range of $2.87 to $2.97, a growth rate of approximately 11-15% over expected 2007 results. A reconciliation of GAAP to non-GAAP earnings per diluted share is as follows:

GAAP EPS estimates                                       $2.59 - $2.69
Amortization of intangible assets                            $0.28
Non-GAAP estimates                                       $2.87 - $2.97


Charles River Laboratories has scheduled a live webcast on Thursday, December 13, at 8:30 a.m. ET to discuss matters relating to this press release. To participate, please go to and select the webcast link. You can also find the associated slide presentation and reconciliations to comparable GAAP measures on the website. The webcast will be available until 5:00 p.m. ET on December 28, 2007.

Use of Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, such as non-GAAP earnings per diluted share from continuing operations, which exclude amortization of intangible assets and other charges related to our acquisitions. 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 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 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. 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

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 2007 and 2008 revenue growth and earnings; the future demand for drug discovery and development products and services, including the outsourcing of these services; the timing of the opening of new and expanded facilities; 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 growth, efficiency improvements and operating synergies. 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: a decrease in research and development spending, a decrease 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 FDA regulations; changes in law; continued availability of products and supplies; loss of key personnel; interest rate and foreign currency exchange rate fluctuations; changes in tax regulation and laws; changes in generally accepted accounting principles; and any changes in business, political, or economic conditions due to the threat of future terrorist activity in the U.S. and other parts of the world, and related U.S. military action overseas. A further description of these risks, uncertainties, and other matters can be found in the Risk Factors detailed in Charles River's Annual Report on Form 10-K as filed on February 27, 2007, as well as other filings we make with the Securities and Exchange Commission. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by Charles River, and Charles River assumes no obligation and expressly disclaims any duty to update information contained in this news release except as required by law.

About Charles River Laboratories

Charles River Laboratories based in Wilmington, Massachusetts, partners with global pharmaceutical and biotechnology companies, government agencies and leading academic institutions to advance the drug discovery and development process, bringing drugs to market faster and more efficiently. Charles River's 8,300 employees serve clients worldwide. For more information on Charles River, visit our website at

CONTACT: Charles River Laboratories International, Inc.
Investor Contact:
Susan E. Hardy, 781-222-6190
Corporate Vice President, Investor Relations
Media Contact:
Amy Cianciaruso, 781-222-6168
Associate Director, Public Relations

SOURCE: Charles River Laboratories International, Inc.

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