Charles River Reports Strong First Quarter Sales and Earnings.Business Editors & Health/Medical Writers BIOWIRE2K WILMINGTON, Mass.--(BW HealthWire)--May 3, 2001 Charles River Charles River River, eastern Massachusetts, U.S. The longest river wholly in the state, it flows into Boston Bay after a course of about 80 mi (130 km). Navigable for about 7 mi (11 km), its estuary separates the cities of Boston and Cambridge. Laboratories International, Inc. (NYSE NYSE See: New York Stock Exchange : CRL CRL - Carnegie Representation Language. Carnegie Group, Inc. Frame language derived from SRL. Written in Common LISP. Used in the product Knowledge Craft. ), 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 di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. 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 bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. products and services businesses. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase 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 James Clifford Foster is the chairman and chief executive officer of Charles River Laboratories, Inc., an international company that works on the drug discovery and development process. , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said "We're extremely pleased with our results for the first quarter. This is the third consecutive quarter since our IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. that we have delivered very strong revenue growth, while maintaining our commitment to a strong operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . 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 Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). 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 bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. industries. Our acquisition integration programs for PAI PAI plasminogen activator inhibitor. PAI Plasminogen activator inhibitor, see there and Primedica are proceeding very well, and both businesses are off to strong starts. We're optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op 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 diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of 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 For other towns and places named Wilmington, see Wilmington. Wilmington is a town in Middlesex County, Massachusetts, United States. The population was 21,363 at the 2000 census. , is a leading provider of critical research tools and integrated support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other 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 Top 100 Biotechnology Companies The following is a list of the top 100 biotechnology companies ranked by revenue. The first nine companies qualify for the list of the top 50 pharmaceutical 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 USDA, n.pr See United States Department of Agriculture. and FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " protections for forward looking statements afforded under The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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, December 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 25,
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
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