Charles River Laboratories International, Inc. (NYSE:CRL) Q3 2022 Earnings Conference Call November 2, 2022 9:00 AM ET | --- | |---------------------------------------------------------------------------------------------------| | | | Company Participants | | Todd Spencer - VP, IR James Foster - Chairman, President & CEO Flavia Pease - Corporate EVP & CFO | | Conference Call Participants | | Eric Coldwell - Baird | | Derik De Bruin - Bank of America | | Sandy Draper - Guggenheim | | David Windley - Jefferie ...

3Q 2022 Results November 2, 2022 Charles River Laboratories EVERY STEP OF THE WAY © 2022 Charles River Laboratories International, Inc. charles river Safe Harbor Statement 2 Caution Concerning Forward-Looking Statements. This presentation 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," "may," "estimate," "plan," "outlook ...

Charles River Laboratories International, Inc. (NYSE:CRL) Q2 2022 Earnings Conference Call August 3, 2022 9:30 AM ET Company Participants Todd Spencer – Vice President-Investor Relations Jim Foster – Chairman, President and Chief Executive Officer Flavia Pease – Corporate Executive Vice President and Chief Financial Officer Conference Call Participants Derik De Bruin – Bank of America Eric Coldwell – Baird Dave Windley – Jefferies Sandy Draper – Guggenheim Elizabeth Anderson – Evercore Christine Rains – Wil ...

2Q 2022 Results August 3, 2022 Charles River Laboratories EVERY STEP OF THE WAY © 2022 Charles River Laboratories International, Inc. Safe Harbor Statement 2 Caution Concerning Forward-Looking Statements. This presentation 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," "may," "estimate," "plan," "outlook," and "project" ...

1Q 2022 Results May 4, 2022 Charles River Laboratories EVERY STEP OF THE WAY © 2022 Charles River Laboratories International, Inc. charles river Safe Harbor Statement 2 Caution Concerning Forward-Looking Statements. This presentation 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," "may," "estimate," "plan," "outlook," an ...

Charles River Laboratories International, Inc. (NYSE:CRL) Q1 2022 Earnings Conference Call May 4, 2022 9:30 AM ET | --- | |--------------------------------------------| | | | Company Participants | | Todd Spencer - VP, IR | | James Foster - Chairman, President and CEO | | Flavia Pease - Interim CFO and EVP | | David Smith - EVP and CFO | | Conference Call Participants | | Eric Coldwell - Baird | | Jacob Johnson - Stephens | | Elizabeth Anderson - Evercore ISI | | Dave Windley - Jefferies | | Casey Woodring ...

Charles River Laboratories International, Inc. (NYSE:CRL) Q4 2021 Earnings Conference Call February 16, 2022 8:30 AM ET Company Participants Todd Spencer - Corporate Vice President, Investor Relations James Foster - Chairman, President and Chief Executive Officer David Smith - Corporate Executive Vice President and Chief Financial Officer Conference Call Participants Derik de Bruin - Bank of America Merrill Lynch John Kreger - William Blair Tycho Peterson - J.P. Morgan David Windley - Jefferies Patrick Donn ...

Regulatory and Compliance Challenges - Regulatory approval for products manufactured for CDMO customers is critical; delays or failures in approval could materially affect revenue and profitability [109]. - Compliance with evolving regulations, such as the FDA's SEND standards, is critical and may result in additional operating and capital expenses [128]. - The company faces legal and regulatory risks that could harm its reputation and operating results, including potential penalties for non-compliance with data privacy laws like GDPR and CCPA [131]. - The company is subject to extensive regulations regarding the handling and disposal of medical specimens and hazardous waste, with non-compliance potentially leading to significant penalties [134]. - Changes in government regulations could significantly impact the company's operations and business opportunities in both domestic and international markets [131]. - The company is subject to various regulatory environments, including compliance with the Animal Welfare Act and Good Laboratory Practice (GLP) regulations, ensuring adherence to safety and quality standards in research [63]. - The company has established a formal program to manage regulatory and client expectations regarding data integrity, emphasizing the importance of generating reliable data [63]. - Capital expenditures are expected to be necessary to ensure compliance with government regulations, although no significant changes from historical expenditures are anticipated [66]. - The company has a dedicated group managing global regulatory compliance programs, including quality management systems and internal audit programs [66]. Financial Performance and Risks - As of December 25, 2021, Charles River Laboratories had $2.7 billion in debt and finance leases, which could limit its ability to obtain additional financing and make it more vulnerable to rising interest rates [146]. - The company had $3.8 billion in goodwill and other intangible assets, $1.3 billion in property, plant, and equipment, and $293 million in operating lease right-of-use assets as of December 25, 2021 [149]. - Changes in U.S. and international tax laws could adversely impact the company's effective tax rate and profitability, particularly with proposed minimum tax rates of 15% for multinational enterprises [137]. - The company has received substantial tax credits and incentives from various governments, and any reduction in these could negatively affect profits and cash flows [137]. - The backlog for RMS, DSA, and Manufacturing segments was approximately $266 million, $2.4 billion, and $136 million, respectively, as of December 25, 2021, compared to $168 million, $1.4 billion, and $79 million as of December 26, 2020, indicating significant growth in backlog across all segments [59]. Market and Competitive Landscape - Revenue from the RMS segment is partially dependent on government funding, particularly from the U.S. National Institutes of Health (NIH), which is subject to political uncertainties [110]. - The competitive landscape includes pressures from larger pharmaceutical companies and emerging competitors in lower-cost jurisdictions, which may affect pricing and market position [122]. - The outsourcing trend in non-clinical research may decrease, which could impair growth and affect financial results [118]. - The company is exploring new technologies to reduce the use of animal models and animal-derived products as new in vitro and in silico methods become available [123]. - The market for regulated safety assessment services is estimated to be over 60% outsourced, indicating significant growth potential for Charles River Laboratories [13]. Operational Challenges - The company relies on a limited international supply for certain products, with disruptions potentially leading to increased costs and reduced sales [111]. - The company’s CDMO operations require timely supply of raw materials from third-party suppliers, and delays could adversely impact manufacturing and financial results [114]. - Contaminations in animal populations can damage inventory and harm the company's reputation, potentially leading to decreased sales and increased costs [116]. - Increased competition and fixed-price contracts may limit the company's ability to maintain existing operating margins [127]. - The company faces risks related to potential liabilities from contract research services, including errors in reporting study details and product liabilities [137]. Workforce and Management - The company hired over 5,300 people in fiscal 2021, with a voluntary turnover rate of approximately 13% [52]. - The company maintains a workforce of approximately 20,000 employees, with 63% located in North America [52]. - The company is highly dependent on key personnel, and the loss of senior management could adversely impact its business [144]. - Nine of the eleven members of the Board of Directors are independent, ensuring strong corporate governance and accountability [68]. - The executive team includes experienced leaders with extensive backgrounds in various roles, contributing to the company's strategic planning and corporate development [71]. Strategic Initiatives and Acquisitions - The company continues to seek opportunities to develop and market new services and products to meet client needs, but faces challenges in identifying and commercializing new technologies [124]. - The company has made strategic acquisitions, including Distributed Bio and Retrogenix, to enhance its capabilities in antibody discovery and bioanalytical services [17]. - The company has made several acquisitions since 2019, including Citoxlab, HemaCare, and Distributed Bio, to enhance its portfolio and geographic footprint [41]. - Recent acquisitions, including Cognate and Vigene, have solidified the company as a premier partner for cell and gene therapy development, testing, and manufacturing [41]. - The company emphasizes a disciplined approach to acquisitions, targeting businesses that enhance shareholder value and meet strategic fit criteria [41]. Innovation and Technology - The company emphasizes innovation and quality in its research models, which are bred in controlled environments to ensure high standards [18]. - The proprietary Internet Colony Management (ICM™) system supports real-time data exchange for research model services, enhancing operational efficiency [21]. - The company aims to drive increased adoption of quality control testing solutions across both sterile and non-sterile applications through its global network of laboratories [28]. - The Microbial Solutions business has seen growth driven by the FDA-approved next-generation endotoxin testing products, including the Endosafe®-PTS™ and Endosafe®-Nexus systems, which enhance sample throughput and data integrity [31]. - The Celsis® product line enables rapid microbial contamination detection, with results available in as fast as 24 hours, and the new sterility testing protocol reduces contamination detection time from 14 days to 6 days [31]. Commitment to Diversity and Inclusion - As of December 25, 2021, women comprised approximately 60% of the global workforce, 59% of the U.S. workforce, and 36% of global leadership positions, highlighting the company's commitment to diversity and inclusion [58]. - The company has set goals to increase engagement in diversity, equity, and inclusion initiatives, aiming to enhance participation in employee resource groups and maintain strong engagement scores [58].

| --- | --- | --- | --- | --- | |-------|-------|-------|---------------------|-------| | | | | | | | | | | | | | | | | 4Q 2021 Results and | | | | | | | | | | | | 2022 Guidance | | | | | | February 16, 2022 | | Charles River Laboratories EVERY STEP OF THE WAY © 2022 Charles River Laboratories International, Inc. charles river Safe Harbor Statement 2 Caution Concerning Forward-Looking Statements. This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Re ...

3Q 2021 Results November 3, 2021 Charles River Laboratories EVERY STEP OF THE WAY © 2021 Charles River Laboratories International, Inc. charles river Safe Harbor Statement 2 Caution Concerning Forward-Looking Statements. This presentation 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," "may," "estimate," "plan," "outlook ...