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WILMINGTON, Mass.--(BW HealthWire)--Aug. 2, 2001--Charles River Laboratories International, Inc. (NYSE:CRL), reported today that sales increased 51% in the second quarter of 2001 compared to the second quarter of 2000. Sales for this year's second quarter were $116.8 million, a $39.4 million increase over second quarter 2000 sales of $77.4 million. Net income before extraordinary items was $10.6 million for the second quarter, or $0.24 per diluted share, an increase of 70% compared to $0.14 per diluted share in the second quarter of 2000 (excluding a one-time, non-cash favorable tax adjustment of $0.20). Fully-diluted earnings per share (EPS) for the second quarter will exceed by $0.03 the consensus First Call estimate of $0.21 per share.
The Company experienced strong revenue and earnings growth in the second quarter of this year, in both its biomedical products and services and research model segments. While strategic acquisitions continued to contribute significantly to results, the Company also experienced solid organic growth. On a pro forma basis (adjusted to give effect to acquisitions completed earlier this year), and before unfavorable currency effects, sales increased 17% in the second quarter.
Commenting on these results, James C. Foster, Chairman and CEO, said, "We're very pleased with our results for the second quarter. This is the fourth consecutive quarter since our June 2000 IPO in which we've experienced excellent revenue growth, while maintaining our commitment to strong profitability. Our two strategic acquisitions completed in the first quarter (Primedica and PAI) performed exceptionally well, both in terms of growth and profitability. This performance reflects a successful integration process, driven by multiple synergies. Our other drug discovery and development services also evidenced continued solid growth, as the demand from the biomedical research community for high quality outsourcing services remained strong. Our biomedical products and services segment now comprises nearly 60% of our revenues, reflecting a great deal of progress in adding and expanding value-added services that leverage our core research model capabilities."
Mr. Foster continued: "While our biomedical products and services segment continues to grow dynamically, we've also seen very good organic growth in our research models segment, particularly in the US. Our longstanding leadership position in this unique market continues to advance steadily. Our commitment to being the technology leader is evidenced by our investment in R&D collaborations in animal cloning and transgenics, as well as our acquisition of new disease models used in diabetes and cardiovascular research. We've also recently entered into a strategic alliance with The Jackson Laboratory to breed and distribute its genetically unique mouse models in Europe and Asia. We expect that these new technology platforms, products and strategic relationships will allow us to continue to grow and expand our very profitable research models business."
Continuing his remarks, Mr. Foster indicated: "We were delighted to complete in July our second follow-on equity offering this year, a $250 million transaction that raised $55 million in net proceeds for the Company. These proceeds will be used for debt repayment and for general corporate purposes. We continue to be optimistic about the strength of our markets, and the long-term trends in pre-clinical drug discovery and development, including outsourcing. We believe we have and will continue to gain share in the markets for products or "tools" as well as services that support global biomedical research activities. At the same time, we plan to expand our presence in these markets through new technology platforms and targeted strategic acquisitions."
The following forward-looking guidance is subject to the qualifications set forth below, and is based on current exchange rates. For the third quarter of 2001, Charles River expects sales in the range of $114 million to $117 million, an increase of more than 50% over the prior year. The Company expects fully diluted earnings per share before extraordinary items in the range of $0.21 to $0.22, an increase of more than 75% over the prior year. For fiscal 2001, the Company projects earnings per share in the range of $0.85 to $0.87, compared to the First Call consensus for 2001 EPS of $0.77, or $0.80 when adjusting for actual second quarter results. For 2001, with the benefit of acquisitions completed in the first quarter, Charles River estimates revenues will exceed $445 million, or more than 45% growth on a reported basis compared to 2000 revenues.
Mr. Foster is scheduled to appear on the cable television network CNBC on Friday morning, August 3, at approx. 7:50 a.m. (EDT), to discuss the performance of the Company in the second quarter.
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, R&D 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 July 19, 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 second 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, August 3, at 8:30 a.m. Eastern Standard Time and will be available thereafter for one week for replay.
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (dollars in thousands except for per share data) Three Months Ended Six Months Ended June 30, June 24, June 30, June 24, 2001 2000 2001 2000 Total Net Sales $116,820 $77,430 $215,851 $149,934 Cost of products sold and services provided 73,050 45,853 135,419 90,445 Gross margin 43,770 31,577 80,432 59,489 Selling, general and administrative 17,285 12,427 32,745 24,242 Amortization of goodwill and intangibles 1,993 937 3,821 1,802 Operating income 24,492 18,213 43,866 33,445 Interest income (expense) (5,594) (13,008) (12,299) (25,530) Other income (expense) (122) 260 433 230 Income before taxes, minority interests, earnings from equity investments and extraordinary item 18,776 5,465 32,000 8,145 Provision for income taxes 7,659 (2,864) 13,214 (396) Income before minority interests, earnings from equity investments and extraordinary item 11,117 8,329 18,786 8,541 Minority interests (652) (462) (1,216) (679) Earnings from equity investments 136 107 219 748 Net income before extraordinary item $10,601 $7,974 $17,789 $8,610 Extraordinary loss, net of tax benefit of $852 and $980 (1,583) -- (1,820) -- Net income $9,018 $7,974 $15,969 $8,610 Earnings per common share before extraordinary item Basic $0.26 $0.40 $0.46 $0.43 Diluted $0.24 $0.34 $0.42 $0.37 Earnings per common share after extraordinary item Basic $0.22 $0.40 $0.42 $0.43 Diluted $0.21 $0.34 $0.38 $0.37 Weighted average number of common shares outstanding Basic 40,175,630 19,820,369 38,403,244 19,820,369 Diluted 44,052,166 23,571,555 42,231,654 23,571,555 CHARLES RIVER LABORATORIES INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (dollars in thousands) June 30, December 30, 2001 2000 Assets Current assets Cash and cash equivalents $ 28,416 $ 33,129 Trade receivables 87,271 45,949 Inventories 36,607 34,510 Other current assets 9,361 6,149 Total current assets 161,655 119,737 Property, plant and equipment, net 141,807 117,001 Goodwill and other intangibles 89,480 41,893 Deferred tax asset 96,323 105,027 Other assets 27,530 26,950 Total assets $516,795 $410,608 Liabilities and Shareholders' Equity Current liabilities Current portion of long-term debt $ 685 $ 231 Accounts payable 9,501 10,767 Accrued compensation 20,789 16,997 Other current liabilities 49,488 36,325 Total current liabilities 80,463 64,320 Long-term debt 201,280 201,957 Other long-term liabilities 14,381 14,074 Total liabilities 296,124 280,351 Minority interests 12,453 13,330 Total shareholders' equity 208,218 116,927 Total liabilities and shareholders' equity $516,795 $410,608
|CONTACT:||Charles River Laboratories, Inc.|
|Dennis R. Shaughnessy|
|978-658-6000 ext. 1329|