Charles River Laboratories Announces Third-Quarter 2016 Results From Continuing Operations

Charles River Laboratories International, Inc. (NYSE: CRL) today reported its results for the third quarter of 2016. For the quarter, revenue from continuing operations was $425.7 million, an increase of 21.8% from $349.5 million in the third quarter of 2015. Foreign currency translation reduced reported revenue growth by 1.5%. Revenue growth was driven primarily by the Discovery and Safety Assessment and Manufacturing Support segments. Research Models and Services revenue also increased. The acquisitions of WIL Research, Blue Stream Laboratories, Celsis, and Oncotest contributed 18.0% to consolidated third-quarter revenue growth, both on a reported basis and in constant currency.

On a GAAP basis, net income from continuing operations attributable to common shareholders was $37.4 million for the third quarter of 2016, unchanged from the same period in 2015. Third-quarter diluted earnings per share on a GAAP basis were $0.78, a decrease of 1.3% from $0.79 for the third quarter of 2015. Higher revenue was offset by an increase in acquisition and efficiency-related costs.

On a non-GAAP basis, net income from continuing operations was $56.7 million for the third quarter of 2016, an increase of 16.5% from $48.7 million for the same period in 2015. Third-quarter diluted earnings per share on a non-GAAP basis were $1.18, an increase of 14.6% compared to $1.03 per share in the third quarter of 2015. The increase was driven primarily by the acquisition of new businesses, notably WIL Research, as well as higher revenue for legacy operations.

A gain from the Company's venture capital investments contributed $0.01 per share in the third quarter of 2016, compared to a gain of $0.04 per share for the same period in 2015.

James C. Foster, Chairman, President and Chief Executive Officer, said, "We believe that the trends that drove revenue growth in the first half of the year continued in the third quarter, and will continue in the fourth quarter. As a result, we expect that reported revenue growth in 2016 will be in a range of 21% to 22%, and that growth for the legacy businesses will be between 7% to 8%, approximately 100 basis points higher at the midpoint than in 2015."

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