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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.

CR-000172

News Release

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Third Quarter Sales Surge at Charles River Laboratories

WILMINGTON, Mass.--(BW HealthWire)--Nov. 1, 2000--Charles River Laboratories International, Inc.'s (NYSE:CRL) sales increased 37% in the third quarter over the prior year, driven by strong growth in customer demand for its drug discovery and development products and services.

Sales for the third quarter 2000 were $72.4 million, or a $19.5 million increase over third quarter 1999 sales of $52.9 million. Net income before an extraordinary loss for the quarter was $4.8 million, or $0.12 per diluted share, exceeding the consensus First Call estimate of $0.08 earnings per share.

This compares to net income of $5.6 million, or $0.28 per diluted share, in the third quarter of 1999. The Company's net loss after the extraordinary charge in the quarter was $24.3 million, or $0.61 per diluted share. The extraordinary loss was the result of one-time costs associated with early retirement of debt.

Earnings per share results were impacted by the increase in shares outstanding following the IPO of 16.1 million newly issued shares.

For the first nine months of fiscal 2000, the Company's sales increased 34% to $215.8 million, an increase of $54.7 million over $161.1 million for the same period in 1999. Net income before the extraordinary loss was $13.4 million, or $0.47 per diluted share, compared to $20.0 million, or $1.01 per diluted share in 1999.

Net loss after the extraordinary loss was $15.7 million, or $0.54 per diluted share.

The Company's sales increase over the prior year was impacted favorably by strategic acquisitions and investments, which complemented solid growth in the Company's core research models segment and continued rapid growth in its biomedical products and services segment.

Excluding the strategic transactions, pro forma sales increased 9% in the first nine months of this year, and 10% excluding the impact of foreign currencies.

According to James C. Foster, CEO, "We're very pleased with the strong performance of the business in the third quarter, our first since our IPO. Our results reflect continued strong customer demand for our products and services in the pre-clinical enabling technology or 'tools' space. Demand for our core research models business was very solid from both large pharmaceutical and biotech customers. Our biomedical products and services segment continued its higher growth trajectory. Steady drug discovery and development activity within big pharma, and accelerating biotech and genomics research initiatives, have together translated into strong growth and profitability in our businesses. We believe we are the leader in providing the value-added solutions that the dynamic pre-clinical market requires.

"Our long-term strategic goal is to grow this business 15% or more annually, by complementing the solid and steady growth in our existing portfolio with platform acquisitions and technology partnerships. We believe we can achieve this level of long-term sales growth while continuing to maintain strong profitability. Despite the weakness in the Euro, we're comfortable with the current range of analysts estimates for fourth quarter sales, as well as the range of First Call estimates for fourth quarter EPS of $0.07-$0.08."

Charles River Laboratories, 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 53 facilities in 15 countries worldwide.

Charles River Laboratories International, Inc. is listed on the New York Stock Exchange under the symbol CRL. The Company's listing application contains additional information, available to the public on request, upon which the NYSE relied in authorized the listing.

This document may contain "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 contaminations, industry trends, new displacement technologies, outsourcing trends, USDA and FDA regulation, changes in law, acquisition integration risks, special interests groups, 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-1, as filed on June 23, 2000, and as may be updated from time to time in the Company's periodic SEC filings.

The Company disclaims an 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 2, at 11:00 a.m. Eastern Standard Time and will be available for replay through December 2, 2000.

       CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
           (dollars in thousands except for per share data)


                       Three Months Ended        Nine Months Ended
                       ------------------        -----------------
                     Sept. 25,    Sept. 23,    Sept. 25,    Sep. 23,
                        1999        2000         1999         2000
                        ----        ----         ----         ----

Total net sales    $    52,930  $    72,373  $   161,096  $   215,772
Cost of products
 sold and
 services
 provided               32,908       42,467       97,230      126,379
                   -----------  -----------  -----------  -----------
Gross margin            20,022       29,906       63,866       89,393

Selling, general
 and
 administrative          9,503       11,126       29,414       35,366

Amortization of
 goodwill and
 intangibles               350          932        1,114        2,734
                   -----------  -----------  -----------  -----------
Operating income        10,169       17,848       33,338       51,293
Interest income
 (expense)                 101       (7,092)         289      (32,623)
Other income
 (expense)               1,451         (406)       1,298         (176)
                   -----------  -----------  -----------  -----------
Income before
 income taxes,
 minority
 interests,
 earnings from
 equity
 investments and
 extraordinary
 item                   11,721       10,350       34,925       18,495
Provision for
 income taxes            6,892        5,193       16,903        4,797
                   -----------  -----------  -----------  -----------
Income before
 minority
 interests
 earnings from
 equity
 investments
 and
 extraordinary
 item                    4,829        5,157       18,022       13,698
Minority
 interests                  (8)        (451)         (10)      (1,130)
 Earnings from
  equity
  investments              823          133        1,940          881
                   -----------  -----------  -----------  -----------
Net Income
 before
 extraordinary
 item              $     5,644  $     4,839  $    19,952  $    13,449
                   -----------  -----------  -----------  -----------
Extraordinary
 loss on debt
 paydown, net of
 tax benefit of
 $15,670                   -        (29,101)         -        (29,101)
                   -----------  -----------  -----------  -----------
Net Income
 (loss)            $     5,644 ($    24,262) $    19,952 ($    15,652)
Earnings per
 common share
 before the
 extraordinary
 item
 Basic             $      0.28  $      0.14  $      1.01  $      0.54
 Diluted           $      0.28  $      0.12  $      1.01  $      0.47
Earnings per
 common share
 after the
 extraordinary
 item
 Basic             $      0.28 ($      0.69) $      1.01 ($      0.63)
 Diluted           $      0.28 ($      0.61) $      1.01 ($      0.54)
Weighted average
 number of
 common shares
 outstanding
 Basic              19,820,369   35,389,600   19,820,369   25,010,113
 Diluted            19,820,369   39,699,771   19,820,369   28,880,979



           CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

                        (dollars in thousands)

                                  Dec. 25,     Sept. 23,
                                    1999          2000
                                 ---------    ---------
Assets
Current assets
   Cash and cash equivalents     $  15,010    $  28,008
   Trade receivables                36,293       48,294
   Inventories                      30,534       31,544
   Other current assets              7,158        6,429
                                 ---------    ---------
     Total current assets           88,995      114,275
Property, plant and equipment,
 net                                85,413      114,684
Goodwill and other
 intangibles                        36,958       40,508
Deferred tax asset                 101,560      113,877
Other assets                        50,130       25,778
                                 ---------    ---------
     Total assets                $ 363,056    $ 409,122
                                 =========    =========
Liabilities and Shareholder's
 Equity
Current liabilities
   Current portion of
    long-term debt               $   3,290    $     130
   Accounts payable                  9,291        7,968
   Accrued compensation             10,792       13,818
   Other current liabilities        38,048       38,635
                                 ---------    ---------
     Total current
      liabilities                   61,421       60,551
Long-term debt                     381,706      202,222
Other long-term liabilities         16,569       19,635
                                 ---------    ---------
     Total liabilities             459,696      282,408
                                 ---------    ---------
Minority interests                     304       13,620
Redeemable common stock             13,198            -
Total shareholder's equity        (110,142)     113,094
                                 ---------    ---------
Total liabilities and
 shareholder's equity            $ 363,056    $ 409,122
                                 =========    =========

--30--RV/ph*

CONTACT: Charles River Laboratories International, Inc.
Dennis Shaughnessy
Marcia Gookin
978/658-6000 Ext. 1329


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