Charles River Labs Files Q2 2024 10-Q

TL;DR

**CRL Q2 10-Q filed. Financials and operations updated.**

AI Summary

Charles River Laboratories International, Inc. filed its 10-Q for the period ending June 29, 2024. The filing details financial performance and operational updates for the second quarter. Key financial figures and segment performance are presented, reflecting the company's ongoing business activities in the research and development services sector.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of Charles River Laboratories, crucial for understanding its market position and future prospects.

Risk Assessment

Risk Level: medium — 10-Q filings are routine financial reports, but the specific details within can reveal risks related to market conditions, competition, or company performance.

Key Players & Entities

• CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (company) — Filer
• 20240629 (date) — Reporting Period End Date
• 20240807 (date) — Filing Date
• 781-222-6000 (phone_number) — Business Phone

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value CRL New York Stock Exchange

Filing Documents

• crl-20240629.htm (10-Q) — 1798KB
• crl6292024ex311.htm (EX-31.1) — 9KB
• crl6292024ex312.htm (EX-31.2) — 9KB
• crl6292024ex321.htm (EX-32.1) — 7KB
• crl-20240629_g1.jpg (GRAPHIC) — 9KB
• 0001100682-24-000027.txt ( ) — 9631KB
• crl-20240629.xsd (EX-101.SCH) — 57KB
• crl-20240629_cal.xml (EX-101.CAL) — 90KB
• crl-20240629_def.xml (EX-101.DEF) — 289KB
• crl-20240629_lab.xml (EX-101.LAB) — 719KB
• crl-20240629_pre.xml (EX-101.PRE) — 515KB
• crl-20240629_htm.xml (XML) — 1652KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1 Financial Statements Condensed Consolidated Statements of Income (Unaudited) for the three and six months ended June 29, 2024 and July 1, 2023 3 Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and six months ended June 29, 2024 and July 1, 2023 4 Condensed Consolidated Balance Sheets (Unaudited) as of June 29, 2024 and December 30, 2023 5 Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 29, 2024 and July 1, 2023 6 Condensed Consolidated Statements of Changes in Equity and Redeemable Noncontrolling Interests (Unaudited) for the three and six months ended June 29, 2024 and July 1, 2023 7 Notes to Unaudited Condensed Consolidated Financial Statements 9 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Overview 27 Results of Operations 29 Liquidity and Capital Resources 35 Critical Accounting Policies and Estimates 38 Recent Accounting Pronouncements 38 3 Quantitative and Qualitative Disclosure About Market Risk 38 4 Controls and Procedures 38

- OTHER INFORMATION

PART II - OTHER INFORMATION 1 Legal Proceedings 39 1A Risk Factors 40 2 Unregistered Sales of Equity Securities and Use of Proceeds 40 5 Other Information 40 6 Exhibits 41 Signatures 42 1 Special Note on Factors Affecting Future Results This Quarterly Report on Form 10-Q contains forward-looking statements regarding future events and the future results of Charles River Laboratories International, Inc. that are based on our current expectations, estimates, forecasts and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as "expect," "anticipate," "target," "goal," "project," "intend," "plan," "believe," "seek," "estimate," "will," "likely," "may," "designed," "would," "future," "can," "could," and other similar expressions which are predictions of, indicate future events and trends or which do not relate to historical matters, are intended to identify such forward-looking statements. These statements are based on our current expectations and beliefs and involve a number of risks, uncertainties and assumptions that are difficult to predict. For example, we may use forward-looking statements when addressing topics such as: our expectations regarding the availability of non-human primates and our ability to diversify our non-human primate (NHP) supply chain; the outcome of (1) the U.S. government investigations and inquiries related to the NHP supply chain (including shipments of non-human primates from Cambodia received by the Company, (2) the putative securities class action lawsuit filed against us and certain current/former officers on May 19, 2023, (3) the derivative lawsuit filed against members of the Board of Directors and certain current/former officers on November 8, 2023, and (4) the derivative lawsuit filed against certain current/former members of the Board of Directors and certain current/former officers on August 2, 2024; the timing and impact of the development and implement

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CHARLES RIVER LABORATORIES INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per share amounts) Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Service revenue $ 842,900 $ 874,891 $ 1,659,762 $ 1,732,257 Product revenue 183,217 185,046 377,915 357,053 Total revenue 1,026,117 1,059,937 2,037,677 2,089,310 Costs and expenses: Cost of services provided (excluding amortization of intangible assets) 577,383 578,099 1,155,547 1,143,576 Cost of products sold (excluding amortization of intangible assets) 95,021 82,861 183,574 169,103 Selling, general and administrative 169,791 199,758 356,082 374,604 Amortization of intangible assets 32,270 34,274 64,845 69,190 Operating income 151,652 164,945 277,629 332,837 Other income (expense): Interest income 3,010 1,426 5,212 2,232 Interest expense ( 32,769 ) ( 35,044 ) ( 67,770 ) ( 69,424 ) Other income (expense), net ( 2,240 ) ( 2,663 ) 3,593 ( 5,940 ) Income before income taxes 119,653 128,664 218,664 259,705 Provision for income taxes 25,392 29,221 49,921 56,308 Net income 94,261 99,443 168,743 203,397 Less: Net income attributable to noncontrolling interests 180 2,423 1,702 3,246 Net income available to Charles River Laboratories International, Inc. $ 94,081 $ 97,020 $ 167,041 $ 200,151 Calculation of net income per share attributable to common shareholders of Charles River Laboratories International, Inc. Net income available to Charles River Laboratories International, Inc. $ 94,081 $ 97,020 $ 167,041 $ 200,151 Less: Adjustment of redeemable noncontrolling interest 301 — 702 — Less: Incremental dividends attributable to noncontrolling interest holders 3,792 — 9,022 — Net income available to Charles River Laboratories International, Inc. common shareholders $ 89,988 $ 97,020 $ 157,317 $ 200,151 Earnings per common share Net income attributable to common shareholders: Basic

View Full Filing

View this 10-Q filing on SEC EDGAR