Charles River Laboratories International, Inc. (CRL) Bundle
A Brief History of Charles River Laboratories International, Inc.
Charles River Laboratories International, Inc. (CRL) has established itself as a prominent player in the biopharmaceutical services sector, providing essential support to the global pharmaceutical and biotechnology industries. As of 2024, the company continues to grow and adapt to market demands.
Financial Performance Overview
In the three months ended September 28, 2024, CRL reported total revenue of $1,009.8 million, reflecting a decrease of 1.6% compared to $1,026.6 million for the same period in 2023. For the nine months ended September 28, 2024, total revenue was $3,047.4 million, down 2.2% from $3,115.9 million in the corresponding period in 2023.
| Period | Revenue (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $1,009.8 | -1.6% |
| 9M 2024 | $3,047.4 | -2.2% |
Operating Income
The operating income for the three months ended September 28, 2024, was $117.4 million, representing an operating margin of 11.6%. In comparison, the operating income for the corresponding period in 2023 was $151.5 million with a margin of 14.8%. For the nine months ended September 28, 2024, operating income was $395.0 million, down from $484.3 million in 2023.
| Period | Operating Income (in millions) | Operating Margin (%) |
|---|---|---|
| Q3 2024 | $117.4 | 11.6% |
| 9M 2024 | $395.0 | 12.9% |
Net Income and Earnings Per Share
For the three months ended September 28, 2024, CRL reported a net income of $70.3 million, translating to earnings per share (EPS) of $1.36. This compares to a net income of $88.0 million and EPS of $1.71 for the same quarter in 2023. For the nine months ended September 28, 2024, the company achieved a net income of $239.0 million, equating to an EPS of $4.55, down from $291.4 million and $5.67 in 2023.
| Period | Net Income (in millions) | EPS |
|---|---|---|
| Q3 2024 | $70.3 | $1.36 |
| 9M 2024 | $239.0 | $4.55 |
Segment Performance
CRL operates through three main segments: Research Models and Services (RMS), Discovery Services and Assays (DSA), and Manufacturing. For the three months ended September 28, 2024, the revenue breakdown by segment was:
| Segment | Revenue (in millions) |
|---|---|
| RMS | $197.8 |
| DSA | $615.1 |
| Manufacturing | $196.9 |
Debt and Financial Position
As of September 28, 2024, CRL's total debt was approximately $2.3 billion, with a weighted average interest rate of 4.59%. The company continues to manage its debt effectively while pursuing growth opportunities. It reported cash and cash equivalents of $210.2 million at the end of the quarter.
| Financial Metric | Value |
|---|---|
| Total Debt (in billions) | $2.3 |
| Cash and Cash Equivalents (in millions) | $210.2 |
Market Trends and Strategic Initiatives
CRL is actively engaging in restructuring initiatives aimed at optimizing its operations and driving efficiency across its global footprint. The company anticipates annualized cost savings of approximately $200 million, with around $100 million expected to impact fiscal year 2024. These initiatives are crucial as CRL navigates a competitive and evolving market landscape.
As of September 28, 2024, CRL remains committed to its strategy of enhancing service offerings and expanding its market presence through acquisitions and organic growth.
A Who Owns Charles River Laboratories International, Inc. (CRL)
Major Shareholders
As of 2024, the ownership structure of Charles River Laboratories International, Inc. (CRL) is characterized by a mix of institutional and individual investors. The following table outlines the major shareholders along with their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | Institutional |
| BlackRock, Inc. | 9.8% | Institutional |
| State Street Corporation | 6.7% | Institutional |
| FMR LLC (Fidelity) | 5.4% | Institutional |
| Wellington Management Co. LLP | 4.1% | Institutional |
| Other Institutional Investors | 40.0% | Institutional |
| Individual Shareholders | 23.5% | Individual |
Stock Performance
As of September 28, 2024, Charles River Laboratories' stock performance has shown fluctuations influenced by market conditions. The stock price was recorded at $132.50, reflecting a year-to-date change of -15.3%. The market capitalization stood at approximately $6.85 billion.
Recent Financial Highlights
The financial performance of Charles River Laboratories for the three months ended September 28, 2024, is summarized as follows:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $1,009.8 million | $1,026.6 million | -1.6% |
| Operating Income | $117.4 million | $151.5 million | -22.5% |
| Net Income | $70.3 million | $88.0 million | -20.1% |
| Net Income per Share | $1.34 | $1.70 | -21.2% |
Debt and Financing
As of September 28, 2024, Charles River Laboratories had a total debt of approximately $2.34 billion. The company’s weighted average interest rate on its debt was reported at 4.59%. The breakdown of the debt is as follows:
| Debt Type | Amount (in millions) |
|---|---|
| Revolving Facility | $794.3 |
| Senior Notes due 2031 | $500.0 |
| Other Debt | $16.1 |
| Finance Leases | $31.1 |
Ownership of Subsidiaries
Charles River Laboratories also owns significant stakes in various subsidiaries, which contribute to its overall portfolio:
| Subsidiary | Ownership Percentage | Type of Business |
|---|---|---|
| Noveprim | 90% | Research Models |
| Vital River | 100% | Research Models in China |
| Other Subsidiaries | Various | Multiple Services |
Charles River Laboratories International, Inc. (CRL) Mission Statement
Overview of Mission Statement
Charles River Laboratories International, Inc. (CRL) focuses on enhancing the success of its clients through innovative solutions in the pharmaceutical and biotechnology sectors. The company emphasizes its commitment to accelerating drug development and improving patient outcomes.
Core Values
- Integrity: Adhering to the highest ethical standards in all operations.
- Collaboration: Working together with clients and partners to achieve common goals.
- Innovation: Continuously seeking new ways to improve processes and outcomes.
- Excellence: Striving for superior performance in service delivery.
Financial Performance Indicators
For the three months ended September 28, 2024, CRL reported total revenue of $1,009.8 million, a decrease of 1.6% from $1,026.6 million in the same period of 2023. The nine-month revenue for the same period in 2024 was $3,047.4 million, compared to $3,115.9 million in 2023, reflecting a decrease of 2.2%.
Revenue Breakdown
| Revenue Type | Three Months Ended September 28, 2024 | Three Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Service Revenue | $832,463 | $869,759 | -4.3% |
| Product Revenue | $177,300 | $156,864 | +13.0% |
| Total Revenue | $1,009,763 | $1,026,623 | -1.6% |
Operating Income
The operating income for the three months ended September 28, 2024, was $117.4 million, representing an operating income margin of 11.6%. This is a decline from $151.5 million and a margin of 14.8% in the previous year.
Net Income Analysis
Net income available to common shareholders for the three months ended September 28, 2024, decreased to $68.7 million from $87.4 million in the corresponding period of 2023. For the nine months ended September 28, 2024, net income was $226.0 million, down from $287.5 million in 2023.
Cash Flow and Operational Efficiency
During the nine months ended September 28, 2024, cash flows from operations were $575.2 million, compared to $463.0 million for the same period in 2023. This improvement was attributed to better performance in accounts receivable collections and inventory management.
Strategic Objectives
CRL aims to achieve approximately $200 million in annualized cost savings through restructuring efforts, which include workforce optimization and facility consolidation.
Capital Expenditures
| Segment | Three Months Ended September 28, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| RMS | $7,186 | $9,192 |
| DSA | $22,773 | $41,967 |
| Manufacturing | $8,735 | $14,349 |
| Total Capital Expenditures | $38,721 | $65,947 |
Long-term Financial Position
As of September 28, 2024, total assets were reported at $8,003.8 million, while total liabilities stood at $4,176.1 million, indicating a solid asset base relative to liabilities.
Stock Repurchase Program
On August 2, 2024, CRL's Board of Directors approved a new stock repurchase program of $1 billion. As of September 28, 2024, the company had repurchased 0.5 million shares for $100.7 million, with $899.3 million remaining under the program.
How Charles River Laboratories International, Inc. (CRL) Works
Business Segments
Charles River Laboratories operates through three primary segments:
- Research Models and Services (RMS)
- Discovery Services and Safety Assessment (DSA)
- Manufacturing
Financial Performance
For the three months ended September 28, 2024, the financial data is as follows:
| Category | September 28, 2024 | September 30, 2023 | $ Change | % Change |
|---|---|---|---|---|
| Service Revenue | $832,463 | $869,759 | $(37,296) | (4.3)% |
| Product Revenue | $177,300 | $156,864 | $20,436 | 13.0% |
| Total Revenue | $1,009,763 | $1,026,623 | $(16,860) | (1.6)% |
For the nine months ended September 28, 2024, the financial results are summarized below:
| Category | September 28, 2024 | September 30, 2023 | $ Change | % Change |
|---|---|---|---|---|
| Service Revenue | $2,492,225 | $2,602,016 | $(109,791) | (4.2)% |
| Product Revenue | $555,215 | $513,917 | $41,298 | 8.0% |
| Total Revenue | $3,047,440 | $3,115,933 | $(68,493) | (2.2)% |
Operating Income
The operating income for the three months and nine months ended September 28, 2024 is detailed below:
| Segment | Operating Income (3 Months) | Operating Income (9 Months) |
|---|---|---|
| RMS | $27,544 | $100,641 |
| DSA | $126,436 | $379,651 |
| Manufacturing | $40,188 | $111,099 |
| Total Operating Income | $117,405 | $395,034 |
Net Income
Net income available to common shareholders decreased in both periods:
| Period | Net Income |
|---|---|
| 3 Months Ended September 28, 2024 | $68,679 |
| 9 Months Ended September 28, 2024 | $226,996 |
Cash Flow
Cash flows from operations for the nine months ended September 28, 2024 were $575.2 million, up from $463.0 million for the same period in 2023.
Geographic Revenue Breakdown
Revenue by geographic area for the three months ended September 28, 2024:
| Region | Revenue |
|---|---|
| U.S. | $559,277 |
| Europe | $267,123 |
| Canada | $127,088 |
| Asia Pacific | $45,009 |
| Other | $11,266 |
Restructuring Activities
Restructuring charges incurred during the three and nine months ended September 28, 2024 were approximately $30.6 million and $65.6 million, respectively.
Debt and Financing
As of September 28, 2024, the company reported long-term debt, net, including:
| Debt Type | Amount |
|---|---|
| Revolving Facility | $794,290 |
Intangible Assets
The net intangible assets as of September 28, 2024 are as follows:
| Asset Type | Gross | Accumulated Amortization | Net |
|---|---|---|---|
| Client Relationships | $1,541,032 | $(808,507) | $732,525 |
| Technology | $144,241 | $(118,793) | $25,448 |
| Trademarks and Trade Names | $12,091 | $(5,505) | $6,586 |
| Backlog | $3,100 | $(3,100) | $0 |
| Other | $43,185 | $(29,283) | $13,902 |
| Total Intangible Assets | $1,743,649 | $(965,188) | $778,461 |
How Charles River Laboratories International, Inc. (CRL) Makes Money
Revenue Segmentation
Charles River Laboratories operates through three primary segments: Research Models and Services (RMS), Discovery Services and Analytics (DSA), and Manufacturing. For the three months ended September 28, 2024, the revenue breakdown was as follows:
| Segment | Revenue (in thousands) | Change from Previous Year | Percentage Change |
|---|---|---|---|
| RMS | $197,824 | $10,976 | 5.9% |
| DSA | $615,060 | $(48,968) | (7.4%) |
| Manufacturing | $196,879 | $21,132 | 12.0% |
| Total Revenue | $1,009,763 | $(16,860) | (1.6%) |
Service and Product Revenue
In the same quarter, Charles River reported service revenue of $832,463,000 and product revenue of $177,300,000. This reflects a decrease in service revenue by 4.3% from the previous year and an increase in product revenue by 13.0%.
| Revenue Type | Amount (in thousands) | Change from Previous Year | Percentage Change |
|---|---|---|---|
| Service Revenue | $832,463 | $(37,296) | (4.3%) |
| Product Revenue | $177,300 | $20,436 | 13.0% |
| Total Revenue | $1,009,763 | $(16,860) | (1.6%) |
Geographic Revenue Distribution
The geographic distribution of revenue for the three months ended September 28, 2024, shows significant contributions from various regions:
| Region | Revenue (in thousands) |
|---|---|
| U.S. | $559,277 |
| Europe | $267,123 |
| Canada | $127,088 |
| Asia Pacific | $45,009 |
| Other | $11,266 |
| Total | $1,009,763 |
Operating Income and Expenses
For the three months ending September 28, 2024, the operating income was reported at $117,405,000, a decrease of 22.5% from the previous year. Key expenses included:
| Expense Type | Amount (in thousands) |
|---|---|
| Cost of Services Provided | $568,699 |
| Cost of Products Sold | $92,043 |
| Selling, General and Administrative | $199,213 |
| Amortization of Intangible Assets | $32,403 |
| Total Operating Expenses | $892,358 |
Net Income
Net income for the three months ended September 28, 2024, was $70,295,000, compared to $88,021,000 for the same period in 2023, representing a decrease of 20.1%.
Cash Flow and Liquidity
During the nine months ended September 28, 2024, cash flows from operations were $575,200,000, an increase compared to $463,000,000 for the same period in 2023. This increase was attributed to improved collections and lower inventory levels.
| Cash Flow Item | Amount (in thousands) |
|---|---|
| Net Income | $239,038 |
| Cash Flows from Operations | $575,200 |
| Cash Paid for Income Taxes | $94,609 |
| Cash Paid for Interest | $98,572 |
Future Projections and Strategic Actions
Charles River Laboratories has initiated restructuring actions with a projected annualized cost savings of approximately $200 million, which is expected to significantly impact future profitability and operational efficiency.
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Resources:
- Charles River Laboratories International, Inc. (CRL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Charles River Laboratories International, Inc. (CRL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Charles River Laboratories International, Inc. (CRL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.