Exhibit 99.1
Charles River Laboratories Announces Third-Quarter 2006
Results from Continuing Operations
Net Sales Increase 9.0%
GAAP EPS of $0.47 and Non-GAAP EPS of $0.56
Company on Target to Achieve Previously Announced Sales and
Earnings Guidance for 2006
WILMINGTON, Mass.--(BUSINESS WIRE)--Nov. 6, 2006--Charles River
Laboratories International, Inc. (NYSE: CRL) today reported third-quarter and
year-to-date 2006 financial results. Net sales from continuing operations
increased 9.0% in the third quarter of 2006, to $264.7 million from $242.8
million in the third quarter of 2005. The sales increase was driven by both
business segments, with Research Models & Services (RMS) sales increasing 7.3%
and Preclinical Services sales increasing 10.6%. Foreign exchange contributed
1.2% to the net sales growth.
On a GAAP basis, net income from continuing operations for the third
quarter of 2006 was $32.1 million, or $0.47 per diluted share, compared to $29.9
million, or $0.41 per diluted share, for the third quarter of 2005. Results for
the third-quarter of 2006 also included $2.4 million, or $0.02 per share, of
stock option expense as a result of the Company's adoption on January 1, 2006,
of Statement of Financial Accounting Standards No. 123R (SFAS 123R),
"Share-Based Payment."
On a non-GAAP basis, net income from continuing operations was $38.1
million for the third quarter of 2006, compared to $38.0 million for the same
period in 2005. Third-quarter diluted earnings per share on a non-GAAP basis
were $0.56, compared to $0.52 per share in the third quarter of 2005. Non-GAAP
net income and earnings per share for the third quarter of 2006 excluded $8.8
million, or $0.09 per diluted share, of amortization and stock-based
compensation costs associated with the acquisition of Inveresk. Non-GAAP results
for the third quarter of 2005 excluded $11.8 million, or $0.11 per diluted
share, of Inveresk-related amortization and compensation costs.
"We are pleased with our overall performance in the third quarter, which
puts us on track to achieve our previously announced sales and earnings guidance
for the full year. The quarter was highlighted by improved Research Models and
Services sales and continuing demand for outsourced preclinical services," said
James C. Foster, Chairman, President and Chief Executive Officer. "While it is
apparent that certain large pharmaceutical clients continued to limit their
spending on research models and services, a broad range of pharmaceutical and
biotechnology clients increased their purchases. In addition, we gained market
share in our Research Model business, In Vitro reported another strong quarter,
and stable U.S. Transgenic Services sales, while still below last year, declined
at a slower rate. Preclinical Services sales also increased, as most of our
facilities continued to report strong growth. A slightly less robust mix than in
the second quarter moderated the third-quarter growth rate, however, we continue
to experience strong demand for the preclinical services we provide."
The Company reports results from continuing operations, which exclude
results of the Clinical Phase II - IV business (sold on August 16, 2006) and
closure of the Interventional and Surgical Services (ISS) business (announced on
May 9, 2006). Those businesses are now reported as discontinued operations, and
the Company has reclassified historical comparisons accordingly. Including $45.3
million of income tax expense related to the sale of the Clinical Phase II - IV
business, the loss from discontinued operations was $48.7 million in the third
quarter of 2006. Primarily as a result of the tax expense, the Company reported
a consolidated net loss for the third quarter of 2006 of $16.6 million, or $0.24
per diluted share, compared to consolidated net income of $32.1 million, or
$0.44 per diluted share, in the third quarter of 2005.
Research Models and Services (RMS)
Sales for the RMS segment were $127.6 million in the third quarter of 2006,
an increase of 7.3% from $118.9 million in the third quarter of 2005. Production
sales increased in all geographic locations, with the strongest growth in North
America and Europe. A broad range of pharmaceutical and biotechnology customers
increased their purchases in the quarter, which more than offset lower sales to
certain large pharmaceutical customers who have been moderating purchases in an
effort to reduce their costs. Market share gains in both the commercial and
academic sectors also contributed to the sales increase. Sales of In Vitro
products increased in the quarter, while Transgenic Services in the United
States continued to decline, but as expected, at a slower rate.
In the third quarter of 2006, the RMS segment's gross and operating margins
were lower than in the third quarter of last year, primarily reflecting $0.9
million associated with the adoption of SFAS 123R and continuing softness in
Transgenic Services. On both a GAAP and non-GAAP basis, the segment's gross
margin was 41.1%, compared to 42.0% for the third quarter of 2005, and the
operating margin was 28.8%, compared to 30.9% for the same period last year.
Costs of SFAS 123R reduced the third-quarter 2006 GAAP and non-GAAP operating
margins by 0.7%.
Preclinical Services
Results for the Preclinical Services segment now include the Phase I
Clinical business, and historical results have been restated accordingly.
Third-quarter net sales for the Preclinical Services segment were $137.1
million, an increase of 10.6% from the $123.9 million in the third quarter of
2005. Sales were driven by continuing strong demand from pharmaceutical and
biotechnology customers.
On a GAAP basis, the Preclinical segment's gross margin was 36.4%, compared
to 37.2% for the third quarter of 2005. The operating margin improved to 16.8%
from 16.1%, as higher sales and improved operating efficiencies offset the $2.0
million cost associated with adoption of SFAS 123R. On a non-GAAP basis, which
excludes $8.6 million of amortization related to the Inveresk acquisition, the
third-quarter operating margin was 23.0% compared to 24.6% for the third quarter
of 2005, with 123R costs accounting for the decline. Non-GAAP operating income
for the third quarter of 2005 excluded amortization related to Inveresk of $10.5
million.
Nine-Month Results
For the first nine months of 2006, net sales from continuing operations
increased by 7.0% to $786.7 million, compared to $735.1 million in the same
period in 2005. The negative effect of foreign exchange reduced the nine-month
growth rate by approximately 0.7%.
On a GAAP basis, net income from continuing operations was $93.4 million,
or $1.32 per diluted share, for the first nine months of 2006 compared to $89.2
million, or $1.24 per diluted share, for the same period in 2005. In accordance
with SFAS 123R, results for the first nine months of 2006 included $9.2 million,
or $0.08 per share, of stock option expense.
On a non-GAAP basis, net income from continuing operations was $113.3
million, or $1.60 per diluted share, for the first nine months of 2006 compared
to $115.4 million, or $1.60 per diluted share, for the same period in 2005. For
the first nine months of 2006, non-GAAP net income excluded the following
charges:
-- $5.3 million, or $0.05 per diluted share, for cost-saving initiatives
implemented in the second quarter of 2006.
-- $25.9 million, or $0.23 per share, of amortization and stock-based
compensation costs associated with the acquisition of Inveresk.
Non-GAAP net income for the first nine months of 2005 excluded
Inveresk-related charges of $37.8 million, or $0.36 per diluted share.
Including a loss of $184.4 million from discontinued operations, of which
$129.2 million resulted from the goodwill impairment recorded in the first
quarter of 2006 and $45.3 million was the income tax expense associated with the
sale of the Clinical Phase II - IV business, the consolidated net loss for the
first nine months of 2006 was $91.0 million, or $1.28 per diluted share,
compared to net income of $91.6 million, or $1.28 per diluted share, for the
same period in 2005.
Research Models and Services (RMS)
For the first nine months of 2006, RMS net sales were $387.3 million, a
2.6% increase over $377.6 million for the first nine months of 2005, including a
1.3% negative effect of foreign exchange. On a GAAP basis, the RMS segment gross
margin was 42.3% in the first nine months of 2006, compared to 43.5% for the
same period last year, and the operating margin was 29.7% compared to 32.3%. On
a non-GAAP basis, which excluded the $2.3 million charge associated with the
second quarter cost-saving initiatives, the operating margin was 30.3%, compared
to 32.3% in the first nine months of 2005. Costs of $3.6 million related to SFAS
123R reduced the GAAP and non-GAAP operating margins for the first nine months
of 2006 by approximately 1.0%.
Preclinical Services
For the first nine months of 2006, Preclinical net sales were $399.3
million, an increase of 11.7% from $357.6 million for the first nine months of
2005. On a GAAP basis, the Preclinical segment gross margin was 35.3% in the
first nine months of 2006, compared to 36.2% in the year-ago period, and the
operating margin was 14.8% compared to 14.5%. On a non-GAAP basis, the operating
margin was 21.9% in the first nine months of 2006 compared to 23.4% in the
year-ago period. On a year-to-date basis, the cost of SFAS 123R was $5.5
million, which reduced the GAAP and non-GAAP operating margins by 1.4%.
Stock Repurchase Program
Charles River presently has a stock repurchase authorization in place from
its Board of Directors which provides for the purchase of up to $300.0 million
of its common stock. On August 23, 2006, the Company implemented an accelerated
stock repurchase (ASR) program under which it repurchased approximately 1.8
million shares of common stock for $75.0 million. Combined with previous
purchases made under the existing stock repurchase authorization, the Company
has repurchased a total of approximately 6.4 million shares at a cost of $261.4
million. There is currently a balance of approximately $38.6 million available
for repurchases under the current authorization.
As of September 30, 2006, Charles River had approximately 66.9 million
shares of common stock outstanding.
Guidance
The Company continues to maintain its forward-looking non-GAAP guidance
based on continuing operations for 2006, which was originally provided with the
first-quarter financial results on May 9, 2006.
2006 GUIDANCE (from continuing operations)
- ----------------------------------------------------------------------
Net sales growth (in %) 6% - 8%
Sales ($ in millions) $1,050 - $1,075
GAAP EPS estimate $1.73 - $1.79
Q2 cost-saving initiatives $0.05
Inveresk amortization and compensation charges $0.34
----------------
Non-GAAP EPS estimate $2.12 - $2.18
- ----------------------------------------------------------------------
Webcast
Charles River Laboratories has scheduled a live webcast on Tuesday,
November 7, at 8:30 a.m. ET to discuss matters relating to this press release.
To participate, please go to ir.criver.com and select the webcast link. You can
also find the associated slide presentation and reconciliations to comparable
GAAP measures on the website. The webcast will be available until 5:00 p.m. ET
on November 21, 2006.
Use of Non-GAAP Financial Measures
This press release contains non-GAAP financial measures which exclude,
among other items, amortization of intangible assets and other charges related
to the Inveresk acquisition. We exclude these items from the non-GAAP financial
measures because they are outside our normal operations. We believe that the
inclusion of non-GAAP financial measures in this press release helps investors
to gain a meaningful understanding of our core operating results and future
prospects without the effect of one-time charges, and is consistent with how
management measures and forecasts the Company's performance, especially when
comparing such results to prior periods or forecasts. Non-GAAP results also
allow investors to compare the Company's operations against the financial
results of other companies in the industry who similarly provide non-GAAP
results. The non-GAAP financial measures included in this press release 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. Reconciliations of the non-GAAP financial measures used in this
press release to the most directly comparable GAAP financial measures are set
forth in the text of, and the accompanying exhibits to, this press release, and
can also be found on the Company's website at ir.criver.com.
Caution Concerning Forward-Looking Statements
This news release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements
may be identified by the use of words such as "anticipate," "believe," "expect,"
"will," "may," "estimate," "plan," "outlook," and "project" and other similar
expressions that predict or indicate future events or trends or that are not
statements of historical matters. These statements also include statements
regarding the future demand for drug discovery and development products and
services, including the outsourcing of these services; the impact of specific
actions intended to improve overall operating efficiencies and profitability;
expectations regarding stock repurchases; the timing of the opening of new and
expanded facilities; future cost reduction activities by our customers; and
Charles River's future performance as delineated in our forward-looking
guidance, and particularly our expectations with respect to sales growth,
efficiency improvements and operating synergies. Forward-looking statements are
based on Charles River's current expectations and beliefs, and involve a number
of risks and uncertainties that are difficult to predict and that could cause
actual results to differ materially from those stated or implied by the
forward-looking statements. Those risks and uncertainties include, but are not
limited to: a decrease in research and development spending, a decrease in the
level of outsourced services, or other cost reduction actions by our customers;
the ability to convert backlog to sales; special interest groups;
contaminations; industry trends; new displacement technologies; USDA and FDA
regulations; changes in law; continued availability of products and supplies;
loss of key personnel; interest rate and foreign currency exchange rate
fluctuations; changes in tax regulation and laws; changes in generally accepted
accounting principles; and any changes in business, political, or economic
conditions due to the threat of future terrorist activity in the U.S. and other
parts of the world, and related U.S. military action overseas. A further
description of these risks, uncertainties, and other matters can be found in the
Risk Factors detailed in Charles River's Annual Report on Form 10-K as filed on
March 14, 2006, as well as other filings we make with the Securities and
Exchange Commission. Because forward-looking statements involve risks and
uncertainties, actual results and events may differ materially from results and
events currently expected by Charles River, and Charles River assumes no
obligation and expressly disclaims any duty to update information contained in
this news release except as required by law.
About Charles River Laboratories
Charles River Laboratories based in Wilmington, Massachusetts, partners
with global pharmaceutical and biotechnology companies, government agencies and
leading academic institutions to advance the drug discovery and development
process, bringing drugs to market faster and more efficiently. Charles River's
7,500 employees serve clients worldwide. For more information on Charles River,
visit our website at www.criver.com.
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
------------------------- -------------------------
September September September September
30, 24, 30, 24,
2006 2005 2006 2005
Total net sales $ 264,660 $ 242,829 $ 786,660 $ 735,129
Cost of products
sold and services
provided 162,398 146,752 481,783 441,380
------------ ------------ ------------ ------------
Gross margin 102,262 96,077 304,877 293,749
Selling, general
and
administrative 41,211 37,407 133,976 117,514
Amortization of
intangibles 9,430 11,503 27,882 34,583
------------ ------------ ------------ ------------
Operating income 51,621 47,167 143,019 141,652
Interest income
(expense) (3,604) (3,868) (10,281) (14,964)
Other, net 45 (522) (643) (774)
------------ ------------ ------------ ------------
Income before
income taxes and
minority
interests 48,062 42,777 132,095 125,914
Provision for
income taxes 15,489 12,349 37,170 35,226
------------ ------------ ------------ ------------
Income before
minority
interests 32,573 30,428 94,925 90,688
Minority interests (440) (539) (1,496) (1,446)
------------ ------------ ------------ ------------
Income from
continuing
operations 32,133 29,889 93,429 89,242
Income (loss) from
discontinued
businesses, net
of tax (48,739) 2,184 (184,401) 2,339
------------ ------------ ------------ ------------
Net income (loss) $ (16,606) $ 32,073 $ (90,972) $ 91,581
============ ============ ============ ============
Earnings (loss)
per common share
Basic:
Continuing
operations $ 0.48 $ 0.42 $ 1.34 $ 1.29
Discontinued
operations $ (0.73) $ 0.03 $ (2.64) $ 0.03
Net income $ (0.25) $ 0.45 $ (1.30) $ 1.33
Diluted:
Continuing
operations $ 0.47 $ 0.41 $ 1.32 $ 1.24
Discontinued
operations $ (0.72) $ 0.03 $ (2.60) $ 0.03
Net income $ (0.24) $ 0.44 $ (1.28) $ 1.28
Weighted average
number of common
shares
outstanding
Basic 67,171,270 71,373,628 69,841,647 68,995,945
Diluted 68,053,872 73,372,960 70,829,692 72,942,571
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
September 30, December 31,
2006 2005
Assets
Current assets
Cash and cash equivalents $ 253,504 $ 114,821
Trade receivables, net 185,275 171,259
Inventories 71,821 65,128
Other current assets 46,389 26,858
Current assets of discontinued
businesses 2,741 41,256
------------- ------------
Total current assets 559,730 419,322
Property, plant and equipment, net 460,856 387,501
Goodwill, net 1,097,449 1,097,590
Other intangibles, net 155,279 175,021
Deferred tax asset 97,162 68,046
Other assets 131,911 34,709
Long-term assets of discontinued businesses 828 356,020
------------- ------------
Total assets $ 2,503,215 $ 2,538,209
============= ============
Liabilities and Shareholders' Equity
Current liabilities
Current portion of long-term debt $ 24,116 $ 36,263
Accounts payable 23,681 28,727
Accrued compensation 34,152 38,238
Deferred income 78,941 95,564
Accrued liabilities 36,133 38,625
Other current liabilities 36,318 43,581
Current liabilites of discontinued
businesses 20,240 30,414
------------- ------------
Total current liabilities 253,581 311,412
Long-term debt 576,542 259,902
Other long-term liabilities 110,421 116,503
Long-term liabilities of discontinued
businesses - 13,661
------------- ------------
Total liabilities 940,544 701,478
------------- ------------
Minority interests 9,149 9,718
Total shareholders' equity 1,553,522 1,827,013
------------- ------------
Total liabilities and shareholders' equity $ 2,503,215 $ 2,538,209
============= ============
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED)
(dollars in thousands)
Three Months Ended Nine Months Ended
------------------- -------------------
September September September September
30, 24, 30, 24,
2006 2005 2006 2005
Research Models and Services
Net sales $127,560 $118,882 $387,348 $377,565
Gross margin 52,423 49,984 163,767 164,280
Gross margin as a % of net
sales 41.1% 42.0% 42.3% 43.5%
Operating income 36,691 36,713 115,170 122,071
Operating income as a % of
net sales 28.8% 30.9% 29.7% 32.3%
Depreciation and amortization 5,185 5,024 15,457 14,800
Capital expenditures 3,932 5,583 12,281 17,375
Preclinical Services
Net sales $137,100 $123,947 $399,312 $357,564
Gross margin 49,839 46,093 141,110 129,469
Gross margin as a % of net
sales 36.4% 37.2% 35.3% 36.2%
Operating income 22,971 19,947 59,289 51,713
Operating income as a % of
net sales 16.8% 16.1% 14.8% 14.5%
Depreciation and amortization 15,389 16,510 45,302 50,231
Capital expenditures 39,038 39,831 87,479 51,798
Unallocated Corporate Overhead $ (8,041) $ (9,493) $(31,440) $(32,132)
Total
Net sales $264,660 $242,829 $786,660 $735,129
Gross margin 102,262 96,077 304,877 293,749
Gross margin as a % of net
sales 38.6% 39.6% 38.8% 40.0%
Operating income (loss) 51,621 47,167 143,019 141,652
Operating income as a % of
net sales 19.5% 19.4% 18.2% 19.3%
Depreciation and amortization 20,574 21,534 60,759 65,031
Capital expenditures 42,970 45,414 99,760 69,173
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
RECONCILIATION OF GAAP TO NON-GAAP
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED)
(dollars in thousands)
Three Months Ended Nine Months Ended
------------------- -------------------
September September September September
30, 24, 30, 24,
2006 2005 2006 2005
Research Models and Services
Net sales $127,560 $118,882 $387,348 $377,565
Operating income 36,691 36,713 115,170 122,071
Operating income as a % of
net sales 28.8% 30.9% 29.7% 32.3%
Add back:
Second-quarter actions - - 2,334 -
--------- --------- --------- ---------
Operating income, excluding
specified charges (Non-GAAP) $ 36,691 $ 36,713 $117,504 $122,071
Non-GAAP operating income as
a % of net sales 28.8% 30.9% 30.3% 32.3%
Preclinical Services
Net sales $137,100 $123,947 $399,312 $357,564
Operating income 22,971 19,947 59,289 51,713
Operating income as a % of
net sales 16.8% 16.1% 14.8% 14.5%
Add back:
Amortization related to
acquisition 8,592 10,673 25,381 32,066
Second-quarter actions - - 2,966 -
--------- --------- --------- ---------
Operating income, excluding
specified charges (Non-GAAP) $ 31,563 $ 30,620 $ 87,636 $ 83,779
Non-GAAP operating income as
a % of net sales 23.0% 24.7% 21.9% 23.4%
Unallocated Corporate Overhead $ (8,041) $ (9,493) $(31,440) $(32,132)
Add back:
Stock-based compensation
related to acquisition 162 1,085 564 5,761
--------- --------- --------- ---------
Unallocated corporate
overhead, excluding
specified charges (Non-GAAP) $ (7,879) $ (8,408) $(30,876) $(26,371)
Total
Net sales $264,660 $242,829 $786,660 $735,129
Operating income 51,621 47,167 143,019 141,652
Operating income as a % of
net sales 19.5% 19.4% 18.2% 19.3%
Add back:
Amortization related to
acquisition 8,592 10,673 25,381 32,066
Stock-based compensation
related to acquisition 162 1,085 564 5,761
Second-quarter actions - - 5,300 -
--------- --------- --------- ---------
Operating income, excluding
specified charges (Non-GAAP) $ 60,375 $ 58,925 $174,264 $179,479
Non-GAAP operating income as
a % of net sales 22.8% 24.3% 22.2% 24.4%
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)
Three Months Ended Nine Months Ended
------------------------- -------------------------
September September September September
30, 24, 30, 24,
2006 2005 2006 2005
Net income (loss) $ (16,606) $ 32,073 $ (90,972) $ 91,581
Less: Discontinued
operations 48,739 (2,184) 184,401 (2,339)
------------ ------------ ------------ ------------
Net income from
continuing
operations 32,133 29,889 93,429 89,242
Add back:
Amortization
related to
acquisition 8,592 10,673 25,381 32,066
Stock-based
compensation
related to
acquisition 162 1,085 564 5,761
Second-quarter
actions:
Severance - 2,556 -
Impairment - 2,644 -
Other - 100 -
Tax effect (2,755) (3,627) (11,350) (11,691)
------------ ------------ ------------ ------------
Net income from
continuing
operations,
excluding
specified charges
(Non-GAAP) $ 38,132 $ 38,020 $ 113,324 $ 115,378
============ ============ ============ ============
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) $ 38,132 $ 38,020 $ 113,324 $ 115,378
After-tax
equivalent
interest expense
on 3.5% senior
convertible
debentures - - - 1,463
------------ ------------ ------------ ------------
Income for
purposes of
calculating
diluted earnings
per share,
excluding
specified charges
(Non-GAAP) $ 38,132 $ 38,020 $ 113,324 $ 116,841
============ ============ ============ ============
Weighted average
shares
outstanding -
Basic 67,171,270 71,373,628 69,841,647 68,995,945
Effect of dilutive
securities:
3.5% senior
convertible
debentures - - - 1,987,465
Stock options
and
contingently
issued
restricted
stock 752,838 1,677,113 851,755 1,623,966
Warrants 129,764 322,219 136,290 335,195
------------ ------------ ------------ ------------
Weighted average
shares
outstanding -
Diluted 68,053,872 73,372,960 70,829,692 72,942,571
============ ============ ============ ============
Basic earnings
(loss) per share $ (0.25) $ 0.45 $ (1.30) $ 1.33
Diluted earnings
(loss) per share $ (0.24) $ 0.44 $ (1.28) $ 1.28
Basic earnings per
share, excluding
specified charges
(Non-GAAP) $ 0.57 $ 0.53 $ 1.62 $ 1.67
Diluted earnings
per share,
excluding
specified charges
(Non-GAAP) $ 0.56 $ 0.52 $ 1.60 $ 1.60
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.
CONTACT: Charles River Laboratories International, Inc.
Susan E. Hardy, 781-262-7616
Corporate Vice President, Investor Relations