Wed, May 7, 1:11 PM (6 days ago)
**Charles River Laboratories International, Inc. (CRL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $984.2 million, a 2.7% decrease from Q1 2024 ($1,011.6 million). - **Operating Income:** $74.7 million, down from $126.0 million in Q1 2024. - **Net Income:** $25.5 million, compared to $67.3 million in Q1 2024. - **Earnings per Share (EPS):** Basic $0.50, Diluted $0.50, down from $1.31 and $1.30 respectively in Q1 2024. **Segment Performance:** - **Research Models and Services (RMS):** Revenue decreased by 3.5% to $213.1 million. Operating income increased slightly by 1.1% to $43.6 million. - **Discovery and Safety Assessment (DSA):** Revenue decreased by 2.1% to $592.6 million. Operating income decreased by 18.2% to $93.9 million. - **Manufacturing Solutions:** Revenue decreased by 3.6% to $178.5 million. Operating income turned negative, reporting a loss of $8.6 million. **Cash Flow:** - **Operating Activities:** $171.7 million, up from $129.9 million in Q1 2024. - **Investing Activities:** Net cash used was $45.5 million, compared to $85.8 million in Q1 2024. - **Financing Activities:** Net cash used was $105.3 million, compared to net cash provided of $18.3 million in Q1 2024. **Trends and Uncertainties:** - **Global Market Environment:** Cautious spending from clients, particularly in the DSA segment. - **Restructuring:** Ongoing actions to optimize global footprint, aiming for $225 million in annual cost savings. - **Legal and Regulatory:** Ongoing investigations and lawsuits related to non-human primate supply chain. - **Tariffs and Trade:** Uncertainty due to recent and potential tariffs affecting supply and demand. **Future Operations Impact:** - **Cost Savings:** Expected to impact fiscal year 2025 significantly. - **Stock Repurchase:** $350 million spent on repurchasing 2.1 million shares, with $549.3 million remaining. - **Investments:** Continued focus on venture capital and strategic equity investments. **Management's Outlook:** - **Revenue Growth:** Focus on cost savings and operational efficiencies. - **Operational Synergies:** Aiming to improve overall operating efficiencies and profitability. - **Market Conditions:** Continued vigilance on global economic trends and regulatory changes.