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 Reports Strong First Quarter Sales and Earnings

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, The conference call begins on Friday, May 4, at 8:30 a.m. Eastern Standard Time and will be available thereafter for replay.


           (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


                        (dollars in thousands)

                                      March 31,  December 30,
                                        2001        2000

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
Marcia Gookin
Investor Relations
978-658-6000 ext. 1329

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