Charles River Laboratories International, Inc. (NYSE: CRL) today reported its results for the first quarter of 2014. For the quarter, net sales from continuing operations were $299.4 million, an increase of 2.8% from $291.2 million in the first quarter of 2013. Foreign currency translation benefited sales by 0.4%. On a segment basis, sales increased in both the Preclinical Services (PCS) and Research Models and Services (RMS) segments.
On a GAAP basis, net income from continuing operations for the first quarter of 2014 was $32.6 million, or $0.67 per diluted share, compared to $25.9 million, or $0.53 per diluted share, for the first quarter of 2013.
On a non-GAAP basis, net income from continuing operations was $39.3 million for the first quarter of 2014, an increase of 18.2% from $33.2 million for the same period in 2013. First-quarter diluted earnings per share on a non-GAAP basis were $0.82, an increase of 18.8% compared to $0.69 per share in the first quarter of 2013. Higher sales contributed to the earnings per share increase, as did an $0.08 gain on the Company’s limited partnership investments.
James C. Foster, Chairman, President and Chief Executive Officer, said, “The first quarter operating results were in line with our expectations. Demand from our mid-tier biotechnology clients continued to increase, as improved access to funding and our targeted sales strategies combined to drive growth. After a slow start, demand from our global key accounts improved sharply in March, providing early indications of a stronger second quarter. We continued to make progress in the first quarter on our efficiency initiatives, as well as our strategy to expand our unique, early-stage portfolio through acquisitions.As a result of the acquisition of Argenta and BioFocus, we are raising our 2014 sales guidance to 9-11%. Non-GAAP earnings per share increase to a range of $3.15 to $3.25, which reflects earnings accretion from the acquisition and the first-quarter gain from our limited partnership investments. We are confident that successful execution of our sales strategies and integration of Argenta and BioFocus will enable us to achieve this guidance.”