Charles River(US:CRL)2025-05-07 11:08Financial Performance - First-quarter revenue for Charles River Laboratories was $984.2 million, a decrease of 2.7% from $1,011.6 million in Q1 2024[2]. - GAAP earnings per share (EPS) for Q1 2025 was $0.50, down from $1.30 in Q1 2024, while non-GAAP EPS increased to $2.34, up 3.1% from $2.27[4][5]. - The GAAP operating margin decreased to 7.6% from 12.5% in Q1 2024, while the non-GAAP operating margin increased to 19.1% from 18.5%[3]. - Total revenue for the three months ended March 29, 2025, was $984.168 million, a decrease of 2.5% compared to $1,011.560 million for the same period in 2024[30]. - Service revenue decreased to $797.923 million, down 2.3% from $816.862 million year-over-year[30]. - Net income attributable to Charles River Laboratories was $25.469 million, a significant decline of 65.1% from $72.960 million in the prior year[30]. - Earnings per share (EPS) for the quarter was $0.50, down from $1.31 in the same quarter last year[30]. - Operating income fell to $74.669 million, a decrease of 40.7% compared to $125.977 million in the previous year[30]. - Net income available to common shareholders was $25,469 thousand, down 62.1% from $67,329 thousand in the same quarter last year[38]. - Basic earnings per share attributable to common shareholders decreased to $0.50 from $1.31 year-over-year[38]. Segment Performance - The Research Models and Services (RMS) segment reported revenue of $213.1 million, a decrease of 3.5% from $220.9 million in Q1 2024[8]. - The Discovery and Safety Assessment (DSA) segment revenue was $592.6 million, down 2.1% from $605.5 million in Q1 2024[10]. - The Manufacturing segment revenue decreased to $178.5 million, a decline of 3.6% from $185.2 million in Q1 2024[13]. - Revenue for the Research Models and Services segment decreased to $213,073 thousand, down 3.8% from $220,907 thousand in the prior year[33]. - Non-GAAP operating income for the Discovery and Safety Assessment segment was $141,696 thousand, representing a 23.9% margin, compared to 23.5% in the previous year[33]. - Operating income for the Manufacturing Solutions segment was a loss of $(8,620) thousand, compared to a profit of $33,681 thousand in the prior year[33]. Guidance and Future Outlook - The company is increasing its 2025 guidance, now expecting revenue growth to be between -5.5% and -3.5%, improved from the previous guidance of -7.0% to -4.5%[16][17]. - Non-GAAP EPS guidance for 2025 is now projected to be between $9.30 and $9.80, up from the previous range of $9.10 to $9.60[17]. - The company noted a notable improvement in DSA booking activity, indicating demand stabilization despite broader market uncertainties[7]. - Non-GAAP revenue growth, organic, was reported at (1.8)%, with the Research Models and Services segment showing a decline of (2.5)%[40]. Cash Flow and Capital Expenditures - Cash and cash equivalents increased to $229.356 million from $194.606 million at the end of the previous quarter[31]. - Total assets rose to $7,582.366 million, up from $7,528.345 million at the end of December 2024[31]. - Long-term debt increased to $2,510.754 million from $2,240.205 million, indicating a rise in leverage[31]. - The company reported net cash provided by operating activities of $171.697 million, an increase from $129.888 million in the prior year[32]. - Capital expenditures for the quarter were $59.324 million, down from $79.144 million year-over-year[32]. - Capital expenditures for the Discovery and Safety Assessment segment were $34,521 thousand, down from $48,959 thousand in the previous year[33]. Other Financial Metrics - The company reported a total of $113,555 thousand in non-GAAP adjustments to operating income, compared to $61,441 thousand in the previous year[38]. - The company experienced a foreign exchange impact of 0.9% on reported revenue growth[40].