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The Company experienced strong sales and earnings growth in the third quarter of this year, in both its biomedical products and services and research models segments. While strategic acquisitions continued to contribute significantly to results, the Company also experienced solid organic growth across the board. On a pro forma basis (adjusted to give effect to acquisitions completed earlier this year), and before unfavorable currency effects, sales increased 22% in the third quarter compared to the third quarter of last year.
Commenting on these results, James C. Foster, Chairman and CEO, said, "I'm delighted to report today on our strongest quarter in the past decade. Despite the slowing economy, and disruptions in many markets resulting from the tragic events of September 11, our business continued to show strength across all segments and geographic locales. This is now the fifth consecutive quarter since our June 2000 IPO in which we've experienced strong sales growth, while achieving our desired level of profitability. Our two strategic acquisitions completed earlier this year continue to perform ahead of our internal acquisition plans. The integration process will soon be complete, once we finalize the consolidation of one of our strategic services capabilities. Our other drug discovery and development services also continued to evidence excellent organic growth, as the demand from the biomedical research community for high quality outsourced services remained strong. The research models segment, our historical core business, remains very profitable, and continues to grow along with the increasing demand for more highly predictive special disease models."
Mr. Foster added: "We've added another technology partnership to our growing portfolio, working with a leading academic research institution to develop a series of unique genetically altered rat models that will enable researchers to better understand common diseases of the heart, lung and blood. We've also secured a major contract with the National Cancer Institute to manage their research model colonies that are used to better understand cancer and to develop innovative therapies. We remain very enthused about the strength of our product and services portfolio, the technology deals we've signed, the opportunities for significant organic growth, and the long-term future of our unique enterprise. We remain committed to being a leading supplier of a wide range of high quality, high margin, non-capital products and services utilized in drug discovery and development."
The following forward-looking guidance is subject to the qualifications set forth below, and is based on current exchange rates. For the fourth quarter of 2001, when we typically experience slightly lower sales and earnings compared to the third quarter due to industry seasonality, Charles River expects sales in the range of $117 million to $120 million, an increase of nearly 50% over the prior year, and slightly higher than earlier guidance and First Call estimates. The Company expects fully diluted earnings per share before extraordinary items in the fourth quarter in the range of $0.23 to $0.24, an increase of more than 100% over the prior year, excluding approximately a $0.01 charge for a consolidation of services capabilities related to our acquisitions. For fiscal 2001, the Company projects earnings per share in the range of $0.91 to $0.92 (excluding the $0.01 charge), compared to the First Call consensus for 2001 EPS of $0.89. For 2001, with the benefit of acquisitions completed in the first quarter, Charles River estimates sales will exceed $455 million, or nearly 50% growth on a reported basis compared to 2000 sales. The Company expects to provide guidance on 2002 later this year, or early next year.
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 third 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 Thursday, November 1, 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 Nine Months Ended Sept. 29, Sept. 23, Sept. 29, Sept. 23, 2001 2000 2001 2000 Total Net Sales $ 123,685 $ 75,593 $ 339,536 $ 225,527 Cost of products sold and services provided 80,474 45,689 215,893 136,134 Gross margin 43,211 29,904 123,643 89,393 Selling, general and administrative 17,016 11,124 49,761 35,366 Amortization of goodwill and intangibles 2,183 932 6,004 2,734 Operating income 24,012 17,848 67,878 51,293 Interest income (expense) (5,096) (7,092) (17,395) (32,622) Other income (expense) 83 (406) 516 (176) Income before taxes, minority interests, earnings from equity investments and extraordinary item 18,999 10,350 50,999 18,495 Provision for income taxes 6,677 5,193 19,891 4,797 Income before minority interests, earnings from equity investments and extraordinary item 12,332 5,157 31,108 13,698 Minority interests (643) (451) (1,859) (1,130) Earnings from equity investments 126 133 345 881 Net income before extraordinary item 11,805 4,839 29,594 13,449 Extraordinary loss, net of tax benefit (1,284) (29,101) (3,104) (29,101) Net income (loss) $ 10,521 $ (24,262)$ 26,490 $ (15,652) Earnings per common share before extraordinary item Basic $ 0.27 $ 0.14 $ 0.74 $ 0.54 Diluted $ 0.26 $ 0.12 $ 0.68 $ 0.47 Earnings (loss) per common share after extraordinary item Basic $ 0.24 $ (0.69)$ 0.66 $ (0.63) Diluted $ 0.23 $ (0.61)$ 0.61 $ (0.54) Weighted average number of common shares outstanding Basic 43,054,478 35,389,600 39,953,655 25,010,113 Diluted 45,679,127 39,699,771 43,429,162 28,880,979 CHARLES RIVER LABORATORIES INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (dollars in thousands) Sept. 29, Dec. 30, 2001 2000 Assets Current assets Cash and cash equivalents $ 78,303 $ 33,129 Trade receivables 97,938 45,949 Inventories 39,206 34,510 Other current assets 9,135 6,149 Total current assets 224,582 119,737 Property, plant and equipment, net 149,249 117,001 Goodwill and other intangibles 90,984 41,893 Deferred tax asset 93,288 105,027 Other assets 27,967 26,950 Total assets $586,070 $410,608 Liabilities and Shareholders' Equity Current liabilities Current portion of long-term debt $ 811 $ 231 Accounts payable 9,408 10,767 Accrued compensation 25,603 16,997 Other current liabilities 50,803 36,325 Total current liabilities 86,625 64,320 Long-term debt 193,240 201,957 Other long-term liabilities 14,545 14,074 Total liabilities 294,410 280,351 Minority interests 13,993 13,330 Total shareholders' equity 277,667 116,927 Total liabilities and shareholders' equity $586,070 $410,608
CONTACT: Charles River Laboratories, Inc. Investor Relations Dennis R. Shaughnessy Marcia Gookin 978-658-6000 ext. 1329 firstname.lastname@example.org or Media Relations Christopher DiFrancesco 978-658-6000 ext. 1508 email@example.com URL: http://www.businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page.
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