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Charles River Laboratories International, Inc. (NYSE: CRL) today reported its results for the fourth-quarter and full-year 2011. For the quarter, net sales from continuing operations were $291.0 million, an increase of 3.3% from $281.7 million in the fourth quarter of 2010. On a segment basis, sales increased in the Research Models and Services (RMS) segment, but declined in the Preclinical Services (PCS) segment.
The addition of a 53
rd week at the end of 2011, which is periodically required to true up to a December 31
st fiscal year end, contributed approximately 4.5% to reported fourth-quarter sales. At a 0.2% benefit, the impact of foreign currency translation on reported fourth-quarter sales was negligible.
On a GAAP basis, net income from continuing operations for the fourth quarter of 2011 was $27.1 million, or $0.55 per diluted share, compared to a net loss of $342.4 million, or $5.94 per diluted share, for the fourth quarter of 2010. In the fourth quarter of 2010, GAAP results included non-cash goodwill and asset impairments of $395.0 million, or $6.28 per share.
On a non-GAAP basis, net income from continuing operations was $33.6 million for the fourth quarter of 2011, a decline of 2.8% from $34.5 million for the same period in 2010. A higher tax rate and lower other income were the primary drivers of the change. Fourth-quarter diluted earnings per share on a non-GAAP basis were $0.69, an increase of 15.0% compared to $0.60 per share in the fourth quarter of 2010. Non-GAAP earnings per share benefited primarily from the net accretion of stock repurchases.
James C. Foster, Chairman, President and Chief Executive Officer, said, “Our clients are increasingly viewing our broad portfolio of essential products and services and our scientific expertise as tools they can use to further their goal to bring more drugs to market sooner, and at a lower cost. We believe that our fourth-quarter results demonstrate a modestly improving environment on a number of levels: stable large biopharma demand, increasing demand for non-regulated services, better funding for mid-tier biopharma companies, and consistent growth in the academic and government sector. The fourth-quarter results and our expectation for relative stability in our end markets confirm our outlook for 2012. Therefore, we are reaffirming our sales and earnings per share guidance for the year.”