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WILMINGTON, Mass.--(BW HealthWire)--May 3, 2001--Charles River Laboratories International, Inc. (NYSE: CRL), reported today that sales increased 37% in the first quarter of 2001 over the prior year. Sales for the first quarter were $99.0 million, a $26.5 million increase over first quarter 2000 sales of $72.5 million. Net income before extraordinary items for the quarter was $7.2 million, or $0.18 per diluted share, exceeding the consensus First Call estimate of $0.16 per share. Excluding a special charge for capacity adjustments in Europe, earnings per share for the first quarter was $0.19.
The Company's strong revenue growth over the prior year was driven by strategic acquisitions in the drug discovery and development outsourcing area. The Company also experienced steady growth in the research models segment, and continued strong growth in several of its other biomedical products and services businesses. On a pro forma basis (adjusted to give effect to completed acquisitions), before unfavorable currency effects, sales increased 12% in the first quarter.
Commenting on these results, James C. Foster, Chairman and CEO, said "We're extremely pleased with our results for the first quarter. This is the third consecutive quarter since our IPO that we have delivered very strong revenue growth, while maintaining our commitment to a strong operating margin. We were delighted to complete in March, in the face of very challenging market conditions, a $153 million follow-on equity offering. The offering generated net proceeds to the Company of $62 million, which we are using to retire debt. We continued to experience strong demand in the quarter across all of our products and services. We filled many of the gaps in our pre-clinical outsourcing services area by acquiring Pathology Associates International and Primedica. These new additions greatly strengthened our scientific capabilities, and expanded our outsourcing services reach within the pharmaceutical and biotech industries. Our acquisition integration programs for PAI and Primedica are proceeding very well, and both businesses are off to strong starts. We're optimistic about the many global market opportunities before us, and with our significantly enhanced ability to meet the challenges they present. "
The following forward-looking guidance is subject to the qualifications set forth below. For the second quarter of 2001, Charles River expects sales in the range of $110 million to $114 million, and fully diluted earnings per share before extraordinary items in the range of $0.18 to $0.20, at current exchange rates. For fiscal 2001, the Company projects earnings per share in the range of $0.72 to $0.76. For 2001, with the benefit of acquisitions completed in the first quarter, Charles River estimates revenue growth will exceed 40%.
Charles River Laboratories International, Inc. is a holding company for Charles River Laboratories, Inc. Both companies are publicly registered, and each files separate financial statements and reports with the SEC. The income statement and balance sheet information provided below reflect the financial results for Charles River Laboratories International, Inc., which differ from those of Charles River Laboratories, Inc. as to certain balance sheet items.
Charles River Laboratories, Inc., based in Wilmington, Massachusetts, is a leading provider of critical research tools and integrated support services that enable innovative and efficient drug discovery and development. The Company is the global leader in providing the animal research models required in research and development for new drugs, devices and therapies. The Company also offers a broad and growing portfolio of biomedical products and services that enable customers to reduce cost, increase speed, and enhance productivity and effectiveness in drug discovery and development. Charles River's customer base spans over 50 countries, and includes all of the major pharmaceutical and biotechnology companies, as well as many leading hospitals and academic institutions. The Company operates more than 76 facilities in 15 countries worldwide.
This document contains "forward looking statements." Such statements involve a number of risks and uncertainties that could cause actual results to differ materially from those stated or implied by the forward looking statements, including acquisition integration risks, special interest groups, foreign exchange, contaminations, industry trends, new displacement technologies, outsourcing trends, USDA and FDA regulation, changes in law, continued availability of products and supplies, personnel and control, and others that are described in the Risk Factors contained in Company's Registration Statement of Form S-3, as filed on March 15, 2001, and as may be updated from time to time in the Company's periodic SEC filings. The Company disclaims any intent or obligation to update forward looking statements, and otherwise claims the "safe harbor" protections for forward looking statements afforded under The Private Securities Litigation Reform Act of 1995.
As previously announced, investors can access a live webcast of the first quarter earnings conference call through a link that will be posted on the investor page of the Charles River Laboratories website, http://www.criver.com. The conference call begins on Friday, May 4, at 8:30 a.m. Eastern Standard Time and will be available thereafter for replay.
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (dollars in thousands except for per share date) Three Months Ended March 31, March 25, 2001 2000 Total net sales $ 99,031 $ 72,502 Cost of products sold and services provided 62,369 44,592 Gross margin 36,662 27,910 Selling, general and administrative 15,460 11,813 Amortization of goodwill and intangibles 1,828 865 Operating income 19,374 15,232 Interest income (expense) (6,705) (12,522) Other income (expense) 555 (30) Income before income taxes, minority interests, earnings from equity investments and extraordinary item 13,224 2,680 Provision for income taxes 5,555 2,468 Income before minority interests, earnings from equity investments and extraordinary item 7,669 212 Minority interests (564) (217) Earnings from equity investments 83 641 Net Income before extraordinary item $ 7,188 $ 636 Extraordinary loss, net of tax benefit of $128 (237) -- Net Income $ 6,951 $ 636 Earnings per common share before extraordinary item Basic $ .20 $ .03 Diluted $ .18 $ .03 Earnings per common share after extraordinary item Basic $ .19 $ .03 Diluted $ .17 $ .03 Weighted average number of common shares outstanding Basic 36,582,532 19,820,369 Diluted 40,287,045 23,571,555 CHARLES RIVER LABORATORIES INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (dollars in thousands) March 31, December 30, 2001 2000 Assets Current assets Cash and cash equivalents $ 72,399 $ 33,129 Trade receivables 78,295 45,949 Inventories 34,287 33,890 Other current assets 10,221 6,769 Total current assets 195,202 119,737 Property, plant and equipment, net 139,694 117,001 Goodwill and other intangibles 91,529 41,893 Deferred tax asset 101,078 105,027 Other assets 27,882 26,950 Total assets $555,385 $410,608 Liabilities and Shareholders' Equity Current liabilities Current portion of long-term debt $ 16,153 $ 231 Accounts payable 10,814 10,767 Accrued compensation 16,300 16,997 Other current liabilities 56,033 36,325 Total current liabilities 99,300 64,320 Long-term debt 228,302 201,957 Other long-term liabilities 16,680 14,074 Total liabilities 344,282 280,351 Minority interests 11,962 13,330 Total shareholder's equity 199,141 116,927 Total liabilities and shareholder's equity $555,385 $410,608
|Contact:||Charles River Laboratories International, Inc.|
|Dennis R. Shaughnessy|
|978-658-6000 ext. 1329|