Exhibit 99.1
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands, except for per share data)
Twelve Months Three Months Three Months Three Months Three Months
------------- ------------ ------------ ------------ ------------
Ended Ended Ended Ended Ended
----- ----- ----- ----- -----
December 31, December 31, September 24, June 25, March 26,
2005 2005 2005 2005 2005
Total net sales $ 993,328 $ 258,199 $ 242,829 $ 250,890 $ 241,410
Cost of products sold and services provided 603,624 162,244 146,752 149,286 145,342
------------- ------------- ------------- ------------- -------------
Gross margin 389,704 95,955 96,077 101,604 96,068
Selling, general and administrative 157,999 40,485 37,407 41,070 39,037
Amortization of intangibles 47,011 12,428 11,503 11,476 11,604
------------- ------------- ------------- ------------- -------------
Operating income (loss) 184,694 43,042 47,167 49,058 45,427
Interest income (expense) (20,629) (5,665) (3,868) (4,806) (6,290)
Other, net (177) 597 (522) (598) 346
------------- ------------- ------------- ------------- -------------
Income before income taxes and minority interests 163,888 37,974 42,777 43,654 39,483
Provision for income taxes 16,261 (18,965) 12,349 12,223 10,654
------------- ------------- ------------- ------------- -------------
Income before minority interests 147,627 56,939 30,428 31,431 28,829
Minority interests (1,838) (392) (539) (422) (485)
------------- ------------- ------------- ------------- -------------
Income from continuing operations 145,789 56,547 29,889 31,009 28,344
Income (loss) from discontinued businesses, net
of tax (3,790) (6,129) 2,184 851 (696)
------------- ------------- ------------- ------------- -------------
Net income (loss) $ 141,999 $ 50,418 $ 32,073 $ 31,860 $ 27,648
============= ============= ============= ============= =============
Earnings (loss) per common share
Basic:
Continuing operations $ 2.09 $ 0.79 $ 0.42 $ 0.44 $ 0.43
Discontinued operations $ (0.05) $ (0.09) $ 0.03 $ 0.01 $ (0.01)
Net income $ 2.04 $ 0.70 $ 0.45 $ 0.46 $ 0.42
Diluted:
Continuing operations $ 2.02 $ 0.77 $ 0.41 $ 0.43 $ 0.41
Discontinued operations $ (0.05) $ (0.08) $ 0.03 $ 0.01 $ (0.01)
Net income $ 1.96 $ 0.69 $ 0.44 $ 0.44 $ 0.40
Weighted average number of common shares
outstanding
Basic 69,730,056 71,775,081 71,373,628 69,738,107 65,876,099
Diluted 72,902,385 73,161,997 73,372,960 72,916,234 72,526,888
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED)
(dollars in thousands)
Twelve Months Three Months Three Months Three Months Three Months
------------- ------------ ------------ ------------ ------------
Ended Ended Ended Ended Ended
----- ----- ----- ----- -----
December 31, December 31, September 24, June 25, March 26,
2005 2005 2005 2005 2005
Research Models and Services
Net sales $ 503,167 $ 125,602 $ 118,882 $ 130,771 $ 127,912
Gross margin 215,534 51,254 49,984 57,729 56,567
Gross margin as a % of net sales 42.8% 40.8% 42.0% 44.1% 44.2%
Operating income 159,756 37,685 36,713 43,050 42,308
Operating income as a % of net sales 31.8% 30.0% 30.9% 32.9% 33.1%
Depreciation and amortization 20,015 5,215 5,024 4,903 4,873
Capital expenditures 24,558 7,183 5,583 6,478 5,314
Preclinical Services
Net sales $ 490,161 $ 132,597 $ 123,947 $ 120,119 $ 113,498
Gross margin 174,170 44,701 46,093 43,875 39,501
Gross margin as a % of net sales 35.5% 33.7% 37.2% 36.5% 34.8%
Operating income 67,918 16,205 19,947 18,596 13,170
Operating income as a % of net sales 13.9% 12.2% 16.1% 15.5% 11.6%
Depreciation and amortization 67,920 17,689 16,510 16,472 17,249
Capital expenditures 69,885 18,087 39,831 5,115 6,852
Unallocated Corporate Overhead $ (42,980) $ (10,848) $ (9,493) $ (12,588) $ (10,051)
Total
Net sales $ 993,328 $ 258,199 $ 242,829 $ 250,890 $ 241,410
Gross margin 389,704 95,955 96,077 101,604 96,068
Gross margin as a % of net sales 39.2% 37.2% 39.6% 40.5% 39.8%
Operating income (loss) 184,694 43,042 47,167 49,058 45,427
Operating income as a % of net sales 18.6% 16.7% 19.4% 19.6% 18.8%
Depreciation and amortization 87,935 22,904 21,534 21,375 22,122
Capital expenditures 94,443 25,270 45,414 11,593 12,166
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
RECONCILIATION OF GAAP TO NON-GAAP
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED)
(dollars in thousands)
Twelve Months Three Months Three Months Three Months Three Months
------------- ------------ ------------ ------------ ------------
Ended Ended Ended Ended Ended
----- ----- ----- ----- -----
December 31, December 31, September 24, June 25, March 26,
2005 2005 2005 2005 2005
Research Models and Services
Net sales $ 503,167 $ 125,602 $ 118,882 $ 130,771 $ 127,912
Operating income 159,756 37,685 36,713 43,050 42,308
Operating income as a % of net sales 31.8% 30.0% 30.9% 32.9% 33.1%
Add back:
Severance 365 365 -
- - - - -
------------- ------------- ------------- ------------- -------------
Operating income, excluding specified charges
(Non-GAAP) 160,121 38,050 36,713 43,050 42,308
Non-GAAP operating income as a % of net sales 31.8% 30.3% 30.9% 32.9% 33.1%
Preclinical Services
Net sales $ 490,161 $ 132,597 $ 123,947 $ 120,119 $ 113,498
Operating income 67,918 16,205 19,947 18,596 13,170
Operating income as a % of net sales 13.9% 12.2% 16.1% 15.5% 11.6%
Add back:
Amortization related to acquisition 43,665 11,599 10,673 10,610 10,783
- - - - -
------------- ------------- ------------- ------------- -------------
Operating income, excluding specified charges
(Non-GAAP) 111,583 27,804 30,620 29,206 23,953
Non-GAAP operating income as a % of net sales 22.8% 21.0% 24.7% 24.3% 21.1%
Unallocated Corporate Overhead $ (42,980) $ (10,848) $ (9,493) $ (12,588) $ (10,051)
Add back:
Stock-based compensation related to
acquisition 6,369 608 1,085 2,285 2,391
Acceleration of stock options 1,556 1,556
Repatriation 1,305 1,305 - - -
------------- ------------- ------------- ------------- -------------
Unallocated corporate overhead, excluding
specified charges (Non-GAAP) (33,750) (7,379) (8,408) (10,303) (7,660)
Total
Net sales $ 993,328 $ 258,199 $ 242,829 $ 250,890 $ 241,410
Operating income 184,694 43,042 47,167 49,058 45,427
Operating income as a % of net sales 18.6% 16.7% 19.4% 19.6% 18.8%
Add back:
Amortization related to acquisition 43,665 11,599 10,673 10,610 10,783
Stock-based compensation related to
acquisition 6,369 608 1,085 2,285 2,391
Acceleration of stock options 1,556 1,556
Repatriation 1,305 1,305
Severance 365 365 - - -
------------- ------------- ------------- ------------- -------------
Operating income, excluding specified charges
(Non-GAAP) 237,954 58,475 58,925 61,953 58,601
Non-GAAP operating income as a % of net sales 24.0% 22.6% 24.3% 24.7% 24.3%
Charles River management believes that non-GAAP financial measures provide
useful information to allow investors to gain a meaningful understanding of
our core operating results and future prospects, without the effect of
one-time charges, consistent with the manner in which management measures
and forecasts the Company's performance. The non-GAAP financial measures
included are not meant to be considered superior to, or a substitute for
results of operations prepared in accordance with GAAP. The Company intends
to continue to assess the potential value of reporting non-GAAP results
consistent with applicable rules and regulations.
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
RECONCILIATION OF GAAP EARNINGS TO NON-GAAP EARNINGS
(dollars in thousands, except for per share data)
Twelve Months Three Months Three Months Three Months Three Months
------------- ------------ ------------ ------------ ------------
Ended Ended Ended Ended Ended
----- ----- ----- ----- -----
December 31, December 31, September 24, June 25, March 26,
2005 2005 2005 2005 2005
Net income (loss) $ 141,999 $ 50,418 $ 32,073 $ 31,860 $ 27,648
Less: Discontinued operations 3,790 6,129 (2,184) (851) 696
------------- ------------- ------------- ------------- -------------
Net income from continuing operations 145,789 56,547 29,889 31,009 28,344
Add back:
Amortization related to acquisition 43,665 11,599 10,673 10,610 10,783
Stock-based compensation related to acquisition 6,369 608 1,085 2,285 2,391
Acceleration of stock options 1,556 1,556 -
Repatriation 1,305 1,305 -
Severance 365 365 -
Deferred financing cost 2,155 2,155
Deferred tax reversal (28,271) (28,271)
Tax effect (17,603) (5,912) (3,627) (3,988) (4,076)
------------- ------------- ------------- ------------- -------------
Net income from continuing operations, excluding
specified charges (Non-GAAP) $ 155,330 $ 39,952 $ 38,020 $ 39,916 $ 37,442
============= ============= ============= ============= =============
Calculation of earnings per common share, excluding
specified charges (Non-GAAP):
Net income for purposes of calculating earnings per
share, excluding specified charges (Non-GAAP) $ 155,330 $ 39,952 $ 38,020 $ 39,916 $ 37,442
After-tax equivalent interest expense on 3.5%
senior convertible debentures 1,208 - - 295 1,168
------------- ------------- ------------- ------------- -------------
Income for purposes of calculating diluted earnings
per share, excluding specified charges (Non-GAAP) $ 156,538 $ 39,952 $ 38,020 $ 40,211 $ 38,610
============= ============= ============= ============= =============
Weighted average shares outstanding - Basic 69,730,056 71,775,081 71,373,628 69,738,107 65,876,099
Effect of dilutive securities:
3.5% senior convertible debentures 1,462,474 - - 1,202,939 4,759,455
Stock options and contingently issued restricted
stock 1,424,740 1,241,411 1,677,113 1,633,092 1,550,175
Warrants 285,115 145,505 322,219 342,096 341,159
------------- ------------- ------------- ------------- -------------
Weighted average shares outstanding - Diluted 72,902,385 73,161,997 73,372,960 72,916,234 72,526,888
============= ============= ============= ============= =============
Basic earnings (loss) per share $ 2.04 $ 0.70 $ 0.45 $ 0.46 $ 0.42
Diluted earnings (loss) per share $ 1.96 $ 0.69 $ 0.44 $ 0.44 $ 0.40
Basic earnings per share, excluding specified
charges (Non-GAAP) $ 2.23 $ 0.56 $ 0.53 $ 0.57 $ 0.57
Diluted earnings per share, excluding specified
charges (Non-GAAP) $ 2.15 $ 0.55 $ 0.52 $ 0.55 $ 0.53
Charles River management believes that non-GAAP financial measures provide
useful information to allow investors to gain a meaningful understanding of
our core operating results and future prospects, without the effect of
one-time charges, consistent with the manner in which management measures
and forecasts the Company's performance. The non-GAAP financial measures
included are not meant to be considered superior to, or a substitute for
results of operations prepared in accordance with GAAP. The Company intends
to continue to assess the potential value of reporting non-GAAP results
consistent with applicable rules and regulations.