Latest news with #CharlesRiverLaboratoriesInternational
Yahoo
02-06-2025
- Business
- Yahoo
Charles River Laboratories to Present at William Blair and Jefferies Conferences
WILMINGTON, Mass., June 02, 2025--(BUSINESS WIRE)--Charles River Laboratories International, Inc. (NYSE: CRL) announced today that it will present at the William Blair 45th Annual Growth Stock Conference on Tuesday, June 3rd, at 10:00 a.m. CT (11:00 a.m. ET), and at the Jefferies Global Healthcare Conference on Wednesday, June 4th, at 10:30 a.m. ET. Management will present an overview of Charles River's strategic focus, business developments, and recent trends. A live webcast of each presentation will be available through a link that will be posted on the Investor Relations section of the Charles River website at A webcast replay will be accessible through the same website after each presentation and will remain available for approximately two weeks. About Charles River 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. To learn more about our unique portfolio and breadth of services, visit View source version on Contacts Investor Relations Contact:Todd SpencerCorporate Vice President, Investor
Business Wire
02-06-2025
- Business
- Business Wire
Charles River Laboratories to Present at William Blair and Jefferies Conferences
WILMINGTON, Mass.--(BUSINESS WIRE)--Charles River Laboratories International, Inc. (NYSE: CRL) announced today that it will present at the William Blair 45 th Annual Growth Stock Conference on Tuesday, June 3 rd, at 10:00 a.m. CT (11:00 a.m. ET), and at the Jefferies Global Healthcare Conference on Wednesday, June 4 th, at 10:30 a.m. ET. Management will present an overview of Charles River's strategic focus, business developments, and recent trends. A live webcast of each presentation will be available through a link that will be posted on the Investor Relations section of the Charles River website at A webcast replay will be accessible through the same website after each presentation and will remain available for approximately two weeks. About Charles River 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. To learn more about our unique portfolio and breadth of services, visit
Yahoo
30-05-2025
- Business
- Yahoo
Charles River Laboratories International, Inc. (CRL): A Bull Case Theory
We came across a bullish thesis on Charles River Laboratories International, Inc. (CRL) on scuttleblurb's Substack. In this article, we will summarize the bulls' thesis on CRL. Charles River Laboratories International, Inc. (CRL)'s share was trading at $136.25 as of 28th May. CRL's trailing and forward P/E were 25.07 and 14.41 respectively according to Yahoo Finance. A technician in a lab inspecting an ELISA test kit for use in biopharmaceutical diagnostics. Life sciences companies produce tangible tools like assays, bioreactors, and chromatography columns used across three key drug development phases: preclinical, clinical, and manufacturing. The preclinical phase, often split into discovery and regulatory safety testing, involves identifying and optimizing drug candidates through high-throughput screening and ADME-Tox tests, assessing absorption, distribution, metabolism, excretion, and toxicity. Charles River plays a significant role here by supplying cells and animals for testing, running screenings, and conducting ADME evaluations, although early discovery is mostly handled in-house due to its exploratory nature. As drug candidates progress, testing becomes more regulated, and outsourcing rises, particularly for Safety Assessment, which focuses on toxicity testing using larger mammals under strict Good Laboratory Practices (GLP). Charles River excels at these structured studies, which form about 60% of tox testing and require rigorous documentation and quality assurance. After successful safety testing, drugs enter clinical trials where clinical CROs lead, but Charles River remains involved through its Microbial Solutions and Biologics Testing divisions, ensuring drugs are free from microbial contamination and validating biologics' purity, potency, and safety. Despite initial attempts to enter drug manufacturing (CDMO) through acquisitions, Charles River exited a crowded small molecule space but reentered more strategically with acquisitions in cell and gene therapy manufacturing, aligning better with its biologics testing expertise. This focused approach positions Charles River as a critical and growing player in supporting biopharma through complex preclinical safety testing and manufacturing for cutting-edge therapies. For a comprehensive analysis of another standout stock in the healthcare industry, be sure to check out our article on Danaher Corporation (DHR), wherein we summarized a bullish thesis by Best Anchor Stocks on Substack. Charles River Laboratories International, Inc. (CRL) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held CRL at the end of the first quarter which was 45 in the previous quarter. While we acknowledge the risk and potential of CRL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CRL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Business Wire
07-05-2025
- Business
- Business Wire
Charles River Laboratories Announces First-Quarter 2025 Results
WILMINGTON, Mass.--(BUSINESS WIRE)--Charles River Laboratories International, Inc. (NYSE: CRL) today reported its results for the first quarter of 2025. For the quarter, revenue was $984.2 million, a decrease of 2.7% from $1,011.6 million in the first quarter of 2024. The impact of foreign currency translation reduced reported revenue by 0.9%. Excluding this impact, revenue decreased 1.8% on an organic basis driven by declines in all three business segments. In the first quarter of 2025, the GAAP operating margin decreased to 7.6% from 12.5% in the first quarter of 2024. The GAAP decrease was primarily driven by lower revenue and higher amortization expense related to accelerated amortization of certain CDMO client relationships. On a non-GAAP basis, the first-quarter operating margin increased to 19.1% from 18.5%, driven primarily by the benefit of cost savings resulting from restructuring initiatives, partially offset by lower revenue. On a GAAP basis, the net income available to common shareholders for the first quarter of 2025 was $25.5 million, or $0.50 per share, a decrease from net earnings of $67.3 million, or $1.30 per diluted share, for the same period in 2024. The GAAP decreases were primarily driven by lower revenue and operating income, including the accelerated amortization of certain CDMO client relationships. The GAAP net income and earnings per share declines were also driven by a loss from certain venture capital and other strategic investments of $0.15 per share in the first quarter of 2025, compared to a gain of $0.08 per share for the same period in 2024. On a non-GAAP basis, net income was $119.1 million for the first quarter of 2025, an increase of 1.3% from $117.6 million for the same period in 2024. First-quarter diluted earnings per share on a non-GAAP basis were $2.34, an increase of 3.1% from $2.27 per share for the first quarter of 2024. The increases in non-GAAP net income and earnings per share were primarily driven by favorable below-the-line items, including reductions in the tax rate, interest expense, and diluted shares outstanding. The GAAP and non-GAAP net income and earnings per share also included an increase of $3.4 million, or $0.07 per share, in the first quarter of 2025 from the reduction in depreciation expense related to a change in certain estimates of the useful lives of property, plant, and equipment, effective for fiscal year 2025. The impact of this change was included in the Company's initial 2025 financial guidance provided in February. James C. Foster, Chair, President and Chief Executive Officer, said, 'The first quarter demonstrated continued signs of demand stabilization, highlighted by a notable improvement in DSA booking activity to the highest level in two years. This positive development was tempered by the general undertone of uncertainty in the broader market environment, which has led us to a balanced yet cautious view of the remainder of the year. Taking these factors into account, we are modestly increasing our financial guidance for 2025.' "Beyond this year, and in light of the evolving regulatory landscape, we believe our long-standing hallmarks of advancing scientific innovation and driving greater efficiency in our clients' drug development programs will continue to lead to a long runway of future growth opportunities,' Mr. Foster concluded. First-Quarter Segment Results Research Models and Services (RMS) Revenue for the RMS segment was $213.1 million in the first quarter of 2025, a decrease of 3.5% from $220.9 million in the first quarter of 2024. The impact of foreign currency translation reduced revenue by 1.0%. Organic revenue decreased by 2.5%, due primarily to the timing of NHP shipments in China and lower revenue for the Cell Solutions business. The decline was partially offset by higher sales of small research models across all geographic areas, principally driven by higher pricing. In the first quarter of 2025, the RMS segment's GAAP operating margin increased to 20.5% from 19.5% in the first quarter of 2024. The GAAP operating margin increase was primarily driven by lower costs associated with the Company's restructuring initiatives, including site consolidations costs. On a non-GAAP basis, the operating margin decreased to 27.1% from 27.6%, primarily driven by lower NHP revenue, partially offset by the benefit of cost savings associated with restructuring initiatives. Discovery and Safety Assessment (DSA) Revenue for the DSA segment was $592.6 million in the first quarter of 2025, a decrease of 2.1% from $605.5 million in the first quarter of 2024. The impact of foreign currency translation reduced DSA revenue by 0.6% and the divestiture of a small DSA site reduced reported revenue by 0.1%. Organic revenue decreased by 1.4%, driven primarily by lower revenue for discovery services. In the first quarter of 2025, the DSA segment's GAAP operating margin decreased to 15.9% from 19.0% in the first quarter of 2024. The GAAP operating margin decline was primarily driven by lower revenue, higher costs associated with the Company's restructuring initiatives, as well as higher third-party legal costs related to U.S. government investigations into the Company's NHP supply chain. On a non-GAAP basis, the operating margin increased to 23.9% from 23.5% in the first quarter of 2024. The non-GAAP operating margin increase was primarily driven by the benefit of cost savings resulting from the Company's restructuring initiatives, partially offset by lower revenue. Manufacturing Solutions (Manufacturing) Revenue for the Manufacturing segment was $178.5 million in the first quarter of 2025, a decrease of 3.6% from $185.2 million in the first quarter of 2024. The impact of foreign currency translation reduced Manufacturing revenue by 1.4%. Organic revenue decreased 2.2%, primarily driven by the CDMO and Biologics Testing businesses. This was partially offset by higher revenue in the Microbial Solutions business. The Manufacturing segment's GAAP operating margin decreased to (4.8)% from 18.2% in the first quarter of 2024 as a result of lower revenue and higher amortization expense related to accelerated amortization of certain CDMO client relationships. On a non-GAAP basis, the operating margin decreased to 23.1% from 25.3% in the first quarter of 2024, driven primarily by the CDMO business. Stock Repurchase Update During the first quarter of 2025, the Company repurchased 2.1 million shares for a total of $350.0 million. Under its $1.0 billion stock repurchase authorization that was approved on August 2, 2024, Charles River has repurchased a total of 2.6 million shares, and had $549.3 million remaining on the program through March 29, 2025. Increases 2025 Guidance The Company is increasing its 2025 financial guidance, which was originally provided on February 19, 2025. The outlook is being increased to primarily reflect improved net bookings in the DSA segment during the first quarter, which are expected to result in incremental DSA revenue this year, particularly during the first half. The Company's 2025 guidance for revenue and earnings per share is as follows: Footnotes to Guidance Table: (1) Organic revenue growth is defined as reported revenue growth adjusted for completed acquisitions and divestitures, as well as foreign currency translation. (2) These adjustments include amortization related to intangible assets, inclusive of the acceleration of amortization expense related to certain CDMO client relationships, as well as the purchase accounting step-up on inventory and certain long-term biological assets. In addition, these adjustments include some costs related to the evaluation and integration of acquisitions and divestitures. (3) These adjustments primarily include site consolidation (including site transition costs), severance, impairment, and other costs related to the Company's restructuring actions. (4) Certain venture capital and other strategic investment performance only includes recognized gains or losses on certain investments. The Company does not forecast the future performance of these investments. (5) These items primarily relate to certain third-party legal costs related to investigations by the U.S. government into the NHP supply chain related to our DSA segment. Expand Webcast Charles River has scheduled a live webcast on Wednesday, May 7 th, at 9:00 a.m. ET to discuss matters relating to this press release. To participate, please go to and select the webcast link. You can also find the associated slide presentation and reconciliations of GAAP financial measures to non-GAAP financial measures on the website. Non-GAAP Reconciliations The Company reports non-GAAP results in this press release, which exclude often-one-time charges and other items that are outside of normal operations. A reconciliation of GAAP to non-GAAP results is provided in the schedules at the end of this press release. Use of Non-GAAP Financial Measures This press release contains non-GAAP financial measures, such as non-GAAP earnings per diluted share, non-GAAP operating income, non-GAAP operating margin, and non-GAAP net income. Non-GAAP financial measures exclude, but are not limited to, the amortization of intangible assets and the purchase accounting step-up adjustment on inventory and certain long term biological assets, and other charges and adjustments related to our acquisitions and divestitures, including incremental dividends attributable to Noveprim noncontrolling interest holders; expenses associated with evaluating and integrating acquisitions and divestitures, including advisory fees and certain other transaction-related costs, as well as fair value adjustments associated with contingent consideration; charges, gains, and losses attributable to businesses or properties we plan to close, consolidate, or divest; severance and other costs associated with our restructuring initiatives; the write-off of deferred financing costs and fees related to debt financing; investment gains or losses associated with our venture capital and certain other strategic equity investments; certain legal costs in our Microbial Solutions business related to environmental litigation and in our DSA segment related to U.S. government investigations into the NHP supply chain; tax effect of all of the aforementioned matters; and adjustments related to the recognition of deferred tax assets expected to be utilized as a result of changes to the our international financing structure and the revaluation of deferred tax liabilities as a result of foreign tax legislation. This press release also refers to our revenue on both a GAAP and non-GAAP basis: on a non-GAAP basis, we define 'organic revenue growth' as reported revenue growth adjusted for foreign currency translation, acquisitions, and divestitures. We exclude these items from the non-GAAP financial measures because they are outside our normal operations. There are limitations in using non-GAAP financial measures, as they are not presented in accordance with generally accepted accounting principles, and may be different than non-GAAP financial measures used by other companies. In particular, we believe that the inclusion of supplementary 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 these often-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. We believe that the financial impact of our acquisitions and divestitures (and in certain cases, the evaluation of such acquisitions and divestitures, whether or not ultimately consummated) is often large relative to our overall financial performance, which can adversely affect the comparability of our results on a period-to-period basis. In addition, certain activities and their underlying associated costs, such as business acquisitions, generally occur periodically but on an unpredictable basis. We calculate non-GAAP integration costs to include third-party integration costs incurred post-acquisition. Presenting revenue on an organic basis allows investors to measure our revenue growth exclusive of acquisitions, divestitures, and foreign currency exchange fluctuations more clearly. 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 presented 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 this press release, and can also be found on the Company's website at Caution Concerning Forward-Looking Statements This press 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,' 'intend,' 'will,' 'would,' '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 Charles River's expectations regarding the availability of Cambodia-sourced NHPs; the impact of the investigations by the U.S. government into the Cambodia NHP supply chain, including but not limited to Charles River's ability to cooperate fully with the U.S. government; Charles River's ability to effectively manage any Cambodia NHP supply impact; the projected future financial performance of Charles River and our specific businesses, including our expectations with respect to the impact of NHP supply constraints and our ability to gain market share; earnings per share; operating margin; client demand, particularly the future demand for drug discovery and development products and services, including our expectations for future revenue trends; our expectations with respect to pricing of our products and services; our expectations with respect to future tax rates and the impact of such tax rates on our business; our expectations with respect to the impact of acquisitions and divestitures, including the Noveprim acquisition, on the Company, our service offerings, client perception, strategic relationships, revenue, revenue growth rates, revenue growth drivers, and earnings; the development and performance of our services and products, including our investments in our portfolio; market and industry conditions including the outsourcing of services and identification of spending trends by our clients and funding available to them; ability to gain market share and capitalize on business opportunities; the impact of our restructuring initiatives, including annualized savings; the impact of our stock repurchase authorization; and Charles River's future performance, including as delineated in our forward-looking guidance, and particularly our expectations with respect to revenue, the impact of foreign exchange, interest rates, enhanced efficiency initiatives. 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: NHP supply constraints and the investigations by the U.S. Department of Justice, including the impact on our projected future financial performance, the timing of the resumption of Cambodia NHP imports into the U.S., our ability to manage supply impact, and potential study delays in our DSA segment attributable to NHP supply constraints; changes and uncertainties in the global economy and financial markets; the ability to successfully integrate businesses we acquire, including Noveprim; the timing and magnitude of our share repurchases; negative trends in research and development spending, negative trends in the level of outsourced services, or other cost reduction actions by our clients; the ability to convert backlog to revenue; 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; disruptions in the global economy caused by geopolitical conflicts; 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 February 19, 2025, 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 press release except as required by law. About Charles River 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. To learn more about our unique portfolio and breadth of services, visit CHARLES RIVER LABORATORIES INTERNATIONAL, INC. SCHEDULE 2 CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except per share amounts) December 28, 2024 Assets Current assets: Cash and cash equivalents $ 229,356 $ 194,606 Trade receivables and contract assets, net of allowances for credit losses of $16,258 and $18,301, respectively 756,629 720,915 Inventories 290,156 278,544 Prepaid assets 129,987 103,210 Other current assets 100,230 105,796 Total current assets 1,506,358 1,403,071 Property, plant and equipment, net 1,587,069 1,604,014 Venture capital and strategic equity investments 214,026 218,350 Operating lease right-of-use assets, net 402,908 412,490 Goodwill 2,873,402 2,846,608 Intangible assets, net 655,705 723,400 Deferred tax assets 48,794 42,179 Other assets 294,104 278,233 Total assets $ 7,582,366 $ 7,528,345 Liabilities, Redeemable Noncontrolling Interests and Equity Current liabilities: Accounts payable $ 149,334 $ 140,337 Accrued compensation 197,325 179,418 Deferred revenue 250,462 248,322 Accrued liabilities 242,467 232,010 Other current liabilities 211,467 194,014 Total current liabilities 1,051,055 994,101 Long-term debt, net and finance leases 2,510,754 2,240,205 Operating lease right-of-use liabilities 475,111 483,789 Deferred tax liabilities 107,268 106,960 Other long-term liabilities 196,396 195,212 Total liabilities 4,340,584 4,020,267 Redeemable noncontrolling interests 41,663 41,126 Equity: Preferred stock, $0.01 par value; 20,000 shares authorized; no shares issued and outstanding — — Common stock, $0.01 par value; 120,000 shares authorized; 51,201 shares issued and 49,115 shares outstanding as of March 29, 2025, and 51,141 shares issued and outstanding as of December 28, 2024 512 511 Additional paid-in capital 1,978,052 1,966,237 Retained earnings 1,837,569 1,812,100 Treasury stock, at cost, 2,086 and zero shares, as of March 29, 2025 and December 28, 2024, respectively (356,551 ) — Accumulated other comprehensive loss (265,246 ) (317,345 ) Total Charles River Laboratories International, Inc. equity 3,194,336 3,461,503 Nonredeemable noncontrolling interest 5,783 5,449 Total equity 3,200,119 3,466,952 Total liabilities, redeemable noncontrolling interests and equity $ 7,582,366 $ 7,528,345 Expand CHARLES RIVER LABORATORIES INTERNATIONAL, INC. SCHEDULE 3 (in thousands) Three Months Ended March 29, 2025 March 30, 2024 Cash flows relating to operating activities Net income $ 25,878 $ 74,482 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 120,364 85,357 Long-lived asset impairments 10,576 5,432 Stock-based compensation 13,135 16,738 Deferred income taxes (19,041 ) (987 ) Write down of inventories 6,762 1,790 (Gain) loss on venture capital and strategic equity investments, net 10,374 (5,880 ) Provision for credit losses 2,007 839 (Gain) loss on divestitures, net (3,376 ) 659 Other, net 3,731 (450 ) Changes in assets and liabilities: Trade receivables and contract assets, net (29,353 ) (17,281 ) Inventories (21,882 ) 5,600 Accounts payable 25,251 (8,541 ) Accrued compensation 15,263 (20,945 ) Deferred revenue (1,213 ) 19,957 Customer contract deposits 9,167 6,140 Other assets and liabilities, net 4,054 (33,022 ) Net cash provided by operating activities 171,697 129,888 Cash flows relating to investing activities Capital expenditures (59,324 ) (79,144 ) Purchases of investments and contributions to venture capital investments (5,302 ) (13,867 ) Proceeds from sale of investments 1,602 7,502 Proceeds from sale of businesses and assets, net 17,441 — Other, net 104 (283 ) Net cash used in investing activities (45,479 ) (85,792 ) Cash flows relating to financing activities Proceeds from long-term debt and revolving credit facility 416,341 300,882 Payments on long-term debt, revolving credit facility, and finance lease obligations (149,394 ) (292,482 ) Proceeds from exercises of stock options — 21,505 Purchase of treasury stock (353,132 ) (9,351 ) Purchases of remaining equity interest of other redeemable noncontrolling interest (19,140 ) — Other, net — (2,208 ) Net cash (used in) provided by financing activities (105,325 ) 18,346 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 5,265 (8,387 ) Net change in cash, cash equivalents, and restricted cash 26,158 54,055 Cash, cash equivalents, and restricted cash, beginning of period 205,570 284,480 Cash, cash equivalents, and restricted cash, end of period $ 231,728 $ 338,535 Expand CHARLES RIVER LABORATORIES INTERNATIONAL, INC. SCHEDULE 4 (in thousands, except percentages) Three Months Ended March 29, 2025 March 30, 2024 Research Models and Services Revenue $ 213,073 $ 220,907 Operating income 43,605 43,149 Operating income as a % of revenue 20.5 % 19.5 % Add back: Amortization related to acquisitions (2) 12,687 10,288 Acquisition, integration, and divestiture-related adjustments (3) 14 163 Severance 229 540 Asset impairment 319 5,225 Site consolidation charges 876 1,621 Total non-GAAP adjustments to operating income $ 14,125 $ 17,837 Operating income, excluding non-GAAP adjustments $ 57,730 $ 60,986 Non-GAAP operating income as a % of revenue 27.1 % 27.6 % Depreciation and amortization $ 21,761 $ 18,123 Capital expenditures $ 7,286 $ 20,044 Discovery and Safety Assessment Revenue $ 592,609 $ 605,452 Operating income 93,952 114,839 Operating income as a % of revenue 15.9 % 19.0 % Add back: Amortization related to acquisitions (2) 18,171 18,596 Acquisition, integration, and divestiture-related adjustments (3) 1,061 192 Severance 4,979 5,484 Asset impairment 9,786 25 Site consolidation charges 2,777 982 Third-party legal costs and certain related items (4) 10,970 2,191 Total non-GAAP adjustments to operating income $ 47,744 $ 27,470 Operating income, excluding non-GAAP adjustments $ 141,696 $ 142,309 Non-GAAP operating income as a % of revenue 23.9 % 23.5 % Depreciation and amortization $ 42,084 $ 45,789 Capital expenditures $ 34,521 $ 48,959 Manufacturing Solutions Revenue $ 178,486 $ 185,201 Operating income (loss) (8,620 ) 33,681 Operating income (loss) as a % of revenue (4.8 )% 18.2 % Add back: Amortization related to acquisitions (2) 46,077 10,793 Acquisition, integration, and divestiture-related adjustments (3) — 699 Severance 2,204 1,523 Asset impairment 201 — Site consolidation charges 1,306 100 Total non-GAAP adjustments to operating income $ 49,788 $ 13,115 Operating income, excluding non-GAAP adjustments $ 41,168 $ 46,796 Non-GAAP operating income as a % of revenue 23.1 % 25.3 % Depreciation and amortization $ 54,623 $ 19,805 Capital expenditures $ 17,279 $ 8,862 Unallocated Corporate Overhead $ (54,268 ) $ (65,692 ) Add back: Acquisition, integration, and divestiture-related adjustments (3) 730 1,529 Severance 1,002 1,490 Site consolidation charges 166 — Total non-GAAP adjustments to operating expense $ 1,898 $ 3,019 Unallocated corporate overhead, excluding non-GAAP adjustments $ (52,370 ) $ (62,673 ) Total Revenue $ 984,168 $ 1,011,560 Operating income 74,669 125,977 Operating income as a % of revenue 7.6 % 12.5 % Add back: Amortization related to acquisitions (2) 76,935 39,677 Acquisition, integration, and divestiture-related adjustments (3) 1,805 2,583 Severance 8,414 9,037 Asset impairment 10,306 5,250 Site consolidation charges 5,125 2,703 Third-party legal costs and certain related items (4) 10,970 2,191 Total non-GAAP adjustments to operating income $ 113,555 $ 61,441 Operating income, excluding non-GAAP adjustments $ 188,224 $ 187,418 Non-GAAP operating income as a % of revenue 19.1 % 18.5 % Depreciation and amortization $ 120,364 $ 85,357 Capital expenditures $ 59,324 $ 79,144 Expand (1) Charles River management believes that supplementary 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 often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company's performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with U.S. GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance. (2) Amortization related to acquisitions includes $35.5 million of accelerated amortization of certain client relationships in the Biologics Solutions reporting unit within the Manufacturing Solutions segment. The remaining value of this client relationship is $38.0 million and will be amortized over the remaining useful life of approximately 3 months in fiscal year 2025. (3) These adjustments are related to the evaluation and integration of acquisitions and divestitures, and primarily include transaction, advisory, certain third-party integration, certain compensation costs, and related costs; as well as fair value adjustments associated with contingent consideration arrangements. (4) Third-party legal costs are related to investigations by the U.S. government into the NHP supply chain applicable to our DSA business. Expand CHARLES RIVER LABORATORIES INTERNATIONAL, INC. SCHEDULE 5 (in thousands, except per share data) Three Months Ended March 29, 2025 March 30, 2024 Net income available to Charles River Laboratories International, Inc. common shareholders $ 25,469 $ 67,329 Add back: Adjustment of redeemable noncontrolling interest (2) — 401 Incremental dividends attributable to noncontrolling interest holders (3) — 5,230 Non-GAAP adjustments to operating income (4) 112,393 61,441 Venture capital and strategic equity investment (gains) losses, net 9,969 (5,762 ) (Gain) loss on divestitures (5) (3,376 ) 658 Tax effect of non-GAAP adjustments: Non-cash tax provision related to international financing structure (6) — 341 Tax effect of the remaining non-GAAP adjustments (25,345 ) (12,028 ) Net income available to Charles River Laboratories International, Inc. common shareholders, excluding non-GAAP adjustments $ 119,110 $ 117,610 Weighted average shares outstanding - Basic 50,677 51,437 Effect of dilutive securities: Stock options, restricted stock units and performance share units 176 405 Weighted average shares outstanding - Diluted 50,853 51,842 Earnings per share attributable to common shareholders: Basic $ 0.50 $ 1.31 Diluted $ 0.50 $ 1.30 Basic, excluding non-GAAP adjustments $ 2.35 $ 2.29 Diluted, excluding non-GAAP adjustments $ 2.34 $ 2.27 Expand (1) Charles River management believes that supplementary 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 often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company's performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with U.S. GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance. (2) This amount represents accretion adjustments of the Noveprim redeemable noncontrolling interest. (3) This amount represents incremental declared and undeclared dividends attributable to Noveprim noncontrolling interest holders who receive preferential dividends for fiscal year 2024. (4) This amount excludes non-GAAP adjustments attributable to noncontrolling interest holders. (5) The amount included in 2025 relates to a gain on the sale of a DSA site while the amount included in 2024 relates to a loss on the sale of a DSA site. (6) This amount relates to the recognition of deferred tax assets expected to be utilized as a result of changes to the Company's international financing structure. Expand CHARLES RIVER LABORATORIES INTERNATIONAL, INC. SCHEDULE 6 TO NON-GAAP REVENUE GROWTH, ORGANIC (UNAUDITED) (1) Three Months Ended March 29, 2025 Total CRL RMS Segment DSA Segment MS Segment Revenue growth, reported (2.7 )% (3.5 )% (2.1 )% (3.6 )% (Increase) decrease due to foreign exchange 0.9 % 1.0 % 0.6 % 1.4 % Impact of divestitures (2) — % — % 0.1 % — % Non-GAAP revenue growth, organic (3) (1.8 )% (2.5 )% (1.4 )% (2.2 )% Expand (1) Charles River management believes that supplementary 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 often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company's performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with U.S. GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance. (2) Impact of divestitures relates to the sale of a site within DSA. (3) Organic revenue growth is defined as reported revenue growth adjusted for acquisitions, divestitures, and foreign exchange. Expand
Yahoo
02-05-2025
- Business
- Yahoo
Charles River Laboratories International, Inc. (CRL): Among the Worst Performing Stocks in S&P 500 So Far in 2025
We recently published a list of the 11 Worst Performing Stocks in S&P 500 So Far in 2025. In this article, we will take a look at where Charles River Laboratories International, Inc. (NYSE:CRL) stands against other worst performing stocks this year. After a two-year surge of 53%, marking the best performance for the broad market index since the 1997-98 rally, stocks have been taken for a wild ride in 2025 due to uncertainties around recent tariffs, resulting in a year-to-date decline of nearly 6%. READ ALSO: 11 Most Promising Stocks According to Analysts and 15 Best Dividend Stocks to Buy for Long-Term Passive Income. Trends over the past century have shown that sustained high returns are uncommon. Following the strong back-to-back performance in the 1920s, markets fell sharply in 1929, which marked the beginning of the Great Depression. Then, after recovering in 1935 and 1936, it took a giant step back again a year later. A recent report by a leading investment banking company also pointed out how, historically, bull markets produce mediocre returns in the third year. Although they are usually not negative. The New York-based firm has projected positive but muted returns for 2025, while also noting that the continued adoption of artificial intelligence has the potential to lead to a productivity boom and a stronger market rally. The broad market index ended 0.74% higher on April 24, gaining 4.6% for the week, driven by a rebound in tech shares. The US Dollar also had its first weekly rise since March, as investors looked for signs that the ongoing trade war may be easing. Washington also appears to have softened its stance on trade relations with Beijing. In an interview with Time magazine on April 22, Trump stated his administration was engaged with China on striking a tariff deal. The US president also expects announcements on many other trade deals to be made over the next three to four weeks. While talking to CNBC, Jay Hatfield, founder and chief investment officer of InfraCap, expressed optimism that the worst of the uncertainty around tariffs is over: 'The confusion about whether there's really talks going on with China or not took some steam out of the market. Our view is that we've reached peak tariff tantrum and so it's likely to be more positive than negative.' Chip Rewey, CIO of Rewey Asset Management, said the following on the situation by Reuters: 'This week you've seen kind of relief that maybe some of the worst case of the Trump tariff actions won't come true. While we've recovered from some of the lows, we haven't pushed back to highs. And I think somewhere in that range is where we'll stay for a while.' With that said, let's now head over to discuss the worst performing stocks this year. A laboratory scientist surrounded by drug-discovery equipment and resources. For this article, we went through screeners to identify stocks listed on the S&P index. From there, we picked the top 11 stocks with the worst year-to-date negative returns in share price, as of the close of business on Friday, April 25, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). YTD Decline in Share Price: -37.22% Charles River Laboratories International, Inc. (NYSE:CRL) is a drug development company that provides essential products and services to help pharmaceutical and biotech companies, academic institutions, and government agencies worldwide accelerate their R&D efforts. It is among the worst performing stocks this year. The company's shares have slumped this month after the FDA announced plans to replace animal testing for monoclonal antibody therapies and other drugs with more effective methods, such as AI-based models. The decision has come as a huge blow to Charles River Laboratories International, Inc. (NYSE:CRL), which is heavily reliant on animal-based preclinical research. Shortly after the announcement, analysts adjusted their positions on Charles River Laboratories International, Inc. (NYSE:CRL). This included Mizuho, which lowered its price target to $155 per share from $175, and Barclays, which revised the target to $145 from $160. The consensus analyst rating for CRL is now Hold, reflecting the growing uncertainty around the company. Upslope Capital Management stated the following regarding Charles River Laboratories International, Inc. (NYSE:CRL) in its Q1 2025 investor letter: 'Charles River Laboratories International, Inc. (NYSE:CRL) (CRL, testing, discovery, and safety for biopharma) – sold due to a thesis break when the FDA announced the phase-out of animal testing requirements for certain drugs. This was a risk I'd worried about, and given an already-challenging environment for the company I decided the thesis (cyclical bottom) had been broken.' Charles River Laboratories International, Inc. (NYSE:CRL) is scheduled to announce financial results for the first quarter of fiscal 2025 on May 7. Based on the forecast of 8 analysts, the company is expected to report EPS of $2.06, down from $2.27 during the same period last year. Overall, CRL ranks 3rd among the 11 Worst Performing Stocks in S&P 500 So Far in 2025. While we acknowledge the potential of CRL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CRL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
