Charles River Laboratories International, Inc. (CRL) is scheduled to report fourth-quarter and full-year 2023 results on Feb 14, before market open.In the last reported quarter, the company’s adjusted earnings per share of $2.72 surpassed the Zacks Consensus Estimate by 15.7%. Earnings surpassed estimates in each of the trailing four quarters, the average beat being 8.43%.Let’s take a look at how things have shaped up prior to this announcement.Factors at PlayThe Research Models and Services (RMS) segment i ...

Charles River International Laboratories, Inc. (CRL) recently launched Endosafe Trillium rCR cartridges, which combine its hallmark Endosafe cartridge technology with recombinant cascade reagent (rCR). The latest launch expanded the company’s robust bacterial endotoxin testing (BET) portfolio with a new animal-free testing solution.The recent development will bolster the Charles River Microbial Solutions business.More on the LaunchThe latest launch, which expands Charles River's existing Trillium rCR vial p ...

WILMINGTON, Mass.--(BUSINESS WIRE)--Charles River Laboratories International, Inc. (NYSE: CRL) will release fourth-quarter and full-year 2023 financial results and provide 2024 guidance on Wednesday, February 14th, before the market opens. A conference call has been scheduled to discuss this information on Wednesday, February 14th, at 8:30 a.m. ET. Investors will have the opportunity to listen to a live webcast of the conference call through the Investor Relations section of the Company's website at ir.cri ...

Charles River Laboratories International, Inc. (NYSE:CRL) Q3 2023 Earnings Conference Call November 8, 2023 8:30 AM ET Company Participants Todd Spencer - Vice President, Investor Relations Jim Foster - Chairman, President & Chief Executive Officer Flavia Pease - Executive Vice President & Chief Financial Officer Conference Call Participants Eric Coldwell - Baird Elizabeth Anderson - Evercore Derik De Bruin - Bank of America Casey Woodring - JPMorgan Patrick Donnelly - Citi Dave Windley - Jefferies Justin B ...

| --- | --- | --- | --- | |----------------------|--------|-------|--------------| | ($ in millions) | 3Q23 | 3Q22 | 2023 Outlook | | Free cash flow (FCF) | $139.5 | $60.4 | $340-$360 | | Capex | $65.9 | $72.4 | $330-$340 | | Depreciation | $44.6 | $39.1 | ~$180 | | Amortization (1) | $34.2 | $35.5 | $135-$140 | ─ Continue to take a disciplined approach to managing capital deployment and are committed to aligning capacity and capital investments with current demand trends | --- | --- | --- | |-------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File No. 001-15943 CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jur ...

Financial Data and Key Metrics Changes - The company reported revenue of $1.06 billion in Q2 2023, an 8.9% increase year-over-year, with organic revenue growth of 11.2% driven by strong performance in RMS and DSA segments [120][147] - Non-GAAP earnings per share were $2.69, a decrease of 2.9% from the previous year, impacted by increased interest expense and tax rates [150] - The operating margin was 20.4%, down 140 basis points year-over-year, primarily due to margin pressure in the manufacturing segment and higher corporate costs [150] Business Line Data and Key Metrics Changes - DSA revenue in Q2 was $663.5 million, reflecting an 11.7% organic growth, driven by base pricing and study volume [151] - RMS revenue reached $209.9 million, a 13.9% organic increase, benefiting from broad-based growth across regions and strong performance in end sourcing solutions [153] - Manufacturing Solutions segment revenue was $186.5 million, a 6.6% organic increase, driven by CDMO and Microbial Solutions, though demand for biologics testing remained soft [19][131] Market Data and Key Metrics Changes - Demand from global biopharmaceutical clients outpaced small and mid-sized biotech clients for the second consecutive quarter [120] - The DSA backlog decreased to $2.8 billion from $3 billion sequentially, indicating a modest decline in demand [121] - Biotech funding showed the first year-over-year increase in seven quarters, suggesting a stabilization in the market [152] Company Strategy and Development Direction - The company aims to leverage its global safety assessment infrastructure to mitigate NHP supply constraints and enhance operational efficiency [124][125] - A focus on continuous improvement, speed, and efficiency through digital transformation is emphasized to better manage costs and investments [7] - The company plans to share updated long-term financial targets at the upcoming Virtual Investor Day [22] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious biopharma spending environment, with clients prioritizing efficiency and speed to market [3] - The company expects revenue growth rates in the mid-single digits for DSA, reflecting a normalization from previous high growth rates [148] - Despite some demand trends moderating, management remains confident in the fundamental drivers of the business and its financial position [21][26] Other Important Information - The company narrowed its organic revenue growth guidance to 5.5% to 7.5% and non-GAAP earnings per share guidance to $10.30 to $10.90 for 2023 [125] - Free cash flow was $80.7 million in Q2, up from $66.6 million the previous year, with guidance for the year remaining unchanged at $330 million to $380 million [134] Q&A Session Summary Question: Is there a noticeable split in demand between large pharma, mid-size pharma, and emerging biotech? - Management indicated that careful spending is observed across all client types, with small and mid-sized biotech clients being particularly cautious [28] Question: How is the demand environment affecting the RMS segment? - Management noted that while clients are prioritizing later-stage programs, the RMS segment continues to perform well due to its exposure to large, well-funded clients [47] Question: What is the outlook for the biologics testing business? - Management anticipates improvement in the biologics testing business in the latter half of the year, despite current softness [33] Question: How are NHP pricing and margins being managed? - Management stated that NHP pricing has been primarily a pass-through, and they expect to maintain margins as costs normalize [143] Question: What is the impact of cancellations on bookings? - Management explained that cancellations have increased as clients rationalize their pipelines, but they expect this trend to stabilize as clients book studies closer to when they are needed [126][127]

Financial Performance - Q2 2023 - Reported revenue for Q2 2023 was $1,059.9 million, an increase of 8.9% year-over-year[37, 63] - Organic revenue growth was 11.2%[37, 44, 63] - GAAP EPS was $1.89, a decrease of 11.3% year-over-year[37, 79] - Non-GAAP EPS was $2.69, a decrease of 2.9% year-over-year[37, 79] Segment Results - Q2 2023 - RMS (Research Models and Services) revenue increased by 12.6% to $209.9 million[2, 53] - RMS organic revenue growth was 13.9%[2] - DSA (Discovery and Safety Assessment) revenue increased by 12.1% to $663.5 million[53] - DSA organic revenue growth was 11.7%[53] - Manufacturing revenue decreased by 4.2% to $186.5 million[19] - Manufacturing organic revenue growth was 6.6%[19] Updated 2023 Guidance - Revenue growth is projected to be between 2.5% and 4.5%[81, 97] - Organic revenue growth is projected to be between 5.5% and 7.5%[52, 81, 97] - GAAP EPS is estimated to be between $7.60 and $8.20[81, 97] - Non-GAAP EPS is estimated to be between $10.30 and $10.90[81, 83, 97]

Financial Performance Highlights - Charles River achieved strong organic revenue growth of 15.4% in Q1 2023[103, 117] - The company's Q1 2023 GAAP EPS was $2.01, an 11.0% increase year-over-year[170, 127] - Non-GAAP EPS for Q1 2023 reached $2.78, a 1.1% increase year-over-year[170, 127] - Q1 2023 reported revenue was $1.0294 billion, a 12.6% increase compared to $913.9 million in Q1 2022[170, 117] Segment Performance - DSA (Discovery and Safety Assessment) segment revenue grew organically by 23.6% in Q1 2023[130] - RMS (Research Models and Services) segment revenue increased by 13.2% to $199.8 million in Q1 2023[137] - Manufacturing segment revenue decreased by 13.4% to $167.3 million in Q1 2023[181] Guidance and Outlook - Charles River narrowed its 2023 revenue growth guidance to 2.0%-4.5% reported and 5.0%-7.5% organic[122, 190] - The company updated its 2023 Non-GAAP EPS guidance to $9.90-$10.90[122, 129] - Charles River anticipates a high-single-digit revenue growth for Q2 2023, with organic revenue growth of approximately 10% or better[201] Financial Position - The company expects net interest expense of $133 million to $137 million for 2023[218, 222] - Charles River projects free cash flow (FCF) for 2023 to be in the range of $330 million to $380 million[38, 222]

Company Participants Conference Call Participants Operator I would now like to turn the conference over to our host, Todd Spencer, Vice President of Investor Relations. Please go ahead. Good morning, and welcome to Charles River Laboratories first quarter 2023 earnings conference call and webcast. This morning, I am joined by Jim Foster, Chairman, President and Chief Executive Officer; and Flavia Pease, Executive Vice President and Chief Financial Officer. They will comment on our results for the first quar ...