Charles River Laboratories International, Inc. Appoints Craig B. Thompson as Board of Director
Dec 3 13
Charles River Laboratories International, Inc. announced the appointment of Craig B. Thompson, M.D., President and Chief Executive Officer, Memorial Sloan-Kettering Cancer Center, to its Board of Directors. Dr. Thompson's extensive experience with both global pharmaceutical companies and leading academic institutions in the fields of cancer biology and immunology will provide the company with a unique combination of expertise. In addition to Dr. Thompson, who will serve as the chairman, the Science and Technology Committee includes current directors Mr. Stephen D. Chubb, Dr. Deborah T. Kochevar and Dr. George M. Milne, Jr.
Charles River Laboratories International, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 28, 2013; Reports Unaudited Consolidated Impairment Charges for the Third Quarter Ended September 28, 2013; Revised Earnings Guidance for 2013; Provides Earnings Guidance for the Fourth Quarter of 2013
Oct 29 13
Charles River Laboratories International, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 28, 2013. For the quarter, the company reported total net sales of $292,129,000 against $278,686,000 a year ago. Operating income was $40,843,000 compared to $37,682,000 a year ago. Income from continuing operations before income taxes was $42,726,000 against $28,395,000 a year ago. Net income attributable to common shareowners was $30,867,000 or $0.64 per basic and diluted share against $21,972,000 or $0.46 per basic and diluted share a year ago. Non-GAAP net sales were $173,405,000 against $166,484,000 a year ago. Net income, excluding specified charges non-GAAP was $38,242,000 or $0.79 per diluted share against $31,198,000 or $0.65 per diluted share a year ago. Excluding the negative impact of foreign exchange, sales increased by 5.6%, with both the RMS and PCS segments reporting mid-single-digit growth for the first time since 2008. Several tax-related items and a limited partnership investment gain were the contributors to the year-over-year improvement in EPS. These items contributed $0.07 to earnings per share in the third quarter. Free cash flow was robust in the third quarter, largely driven by strong operating performance. In the third quarter, the company generated $58.5 million of free cash flow, an increase of nearly $8 million from last year. CapEx was $9.1 million in the third quarter.
For the nine months, the company reported total sales of $876,300,000 against $849,390,000 a year ago. Operating income was $126,794,000 compared to $130,696,000 a year ago. Income from continuing operations before income taxes was $115,221,000 against $103,541,000 a year ago. Net income attributable to common shareowners was $83,729,000 or $1.72 per basic and diluted share against $78,879,000 or $1.63 per diluted share a year ago. Non-GAAP net sales were $536,362,000 against $523,247,000 a year ago. Net income, excluding specified charges non-GAAP was $107,136,000 or $2.20 per diluted share against $101,478,000 or $2.09 per diluted share a year ago. CapEx was $25.3 million.
For the quarter, the company's impairment and other items were $7,238,000 against $2,927,000 a year ago.
The company revised earnings guidance for the year 2013. The company expects net sales growth, reported to 3.0% to 3.5% compared with previous guidance of 3% to 5%. The company expects GAAP EPS in the range of $2.23 to $2.28 against $2.40 to $2.50 previous guidance. Amortization of intangible assets to be $0.23, operating losses to be $0.04 compared with previous guidance of $0.05 and non-GAAP EPS to be $2.85 - $2.90 compared with previous guidance of $2.80 to $2.90. GAAP earnings per share are expected to be lower than the prior range, due primarily to charges associated with the consolidation of research model production operations in California. The company is narrowing sales growth guidance for 2013 to the low end of prior ranges or between 4% and 4.5% in constant currency. This is consistent with year-to-date growth of 4.3%. The company now expects 2013 net interest expense to be approximately $13 million to $13.5 million, which is below prior outlook of $15 million to $17 million. The company now expects non-GAAP tax rate to be in the range of 27% to 28% for 2013, including the third quarter items, which are expected to have a 180 basis point impact on a full year basis. This compares to previous range of 25.5% to 26.5%. The company now expects free cash flow to be $170 million to $175 million in 2013, which is at the high end of previous range. Despite the lower year-to-date run rate, the company continues to expect CapEx of approximately $50 million in 2013 based on anticipated timing of capital projects. Earlier the company announced the planned closure of 3 production rooms at California research model facility. As a result of this action, the company recorded an accelerated depreciation charge of $6.8 million in the third quarter and expects to record a similar charge of approximately $7 million in the fourth quarter. These charges equate to approximately $0.16 per share for the full year and are the primary drivers behind the reduction in GAAP EPS guidance range to $2.23 to $2.28.
For the fourth quarter, the company expects a modest sequential decline in both sales and EPS, primarily reflecting seasonal trends in both business segments. RMS sales are expected to be slightly lower than the third quarter as demand for small models normally declines in the fourth quarter due to lighter holiday ordering patterns. In the PCS segment, sales are expected to be moderately lower on a sequential basis due to fewer study starts during the holidays, which has become a more significant factor in recent years due to the shorter-term nature of preclinical work. Given the volume sensitivity of the RMS and PCS businesses, the company expects that there will be some pressure on the operating margin in the fourth quarter. EPS is expected to be lower than the third quarter level even after excluding the $0.07 of tax-related items and the investment gain.
Charles River Laboratories International, Inc. Presents at 2013 Credit Suisse Annual Healthcare Conference, Nov-13-2013 11:00 AM
Oct 8 13
Charles River Laboratories International, Inc. Presents at 2013 Credit Suisse Annual Healthcare Conference, Nov-13-2013 11:00 AM. Venue: The Phoenician, Scottsdale, Arizona, United States. Speakers: Thomas F. Ackerman, Chief Financial Officer and Corporate Executive Vice President.